Arts Crisis Averted
posted by August 9 at 17:40 PMon
This is a difficult email to write, but we owe it to our members to be transparent about our situation. Simply put, McLeod Residence is in big trouble, as in financial trouble. The short story is, we’re running out of money. Our initial personal and angel investments are dwindling, and due to circumstances that have not allowed us to fully implement our business plan, our revenue hasn’t yet caught up to costs. McLeod Residence will have to close its doors unless we are able to raise a hefty amount of cash on the order of $40-$50,000 and quick.
The problem, according to the letter, has been the discovery that McLeod Residence needs to do serious work on its 100-year-old building in order to bring it up to code to get a liquor license—at which point, the sales of drinks are intended to support the art.
I called Lele and Buster McLeod immediately, and talked to Lele, who informed me that the notice was old news—and that everything was going to be fine with McLeod Residence.
“We have some very nice friends,” she said. “We raised the money, yes.”
The McLeods sent another notice to members this afternoon, updating them as well. It was a little less emphatic about having raised the money, but indicated that things were looking up.
Yesterday we sent an email to our members to alert them of a financial crisis caused by unforeseen (and therefore unbudgeted) building construction expenses. We wanted to search for investors from within our base before we widened the net. We received a tremendous response from our members and are currently in talks to secure new business partners. We are feeling very positive about the future of McLeod Residence and incredibly grateful to our generous members who answered our call. McLeod Residence is committed to its mission to be a home for art, technology and collaboration. We will follow up with everyone who responded with offers to help within the next couple days.