Saying it has found the formula for artistic and financial success, the Napa Valley Opera House will be asking the public to wipe out the last of its construction debt.

The theater's board of trustees recently pledged $3.7 million, leaving $1.3 million to be raised from the community, board president Elsa Vare said Friday.

The Opera House has struggled financially since its 2003 reopening, but for the first time last year made a profit on concerts.

"We've turned a corner," said Bill Hart, the trustee who is leading the "Ensuring Our Future" campaign.

With the Opera House now on a "winning track," it should be easier to appeal to the public for financial support, he said.

Trustees praised Executive Director Evy Warshawski for cutting expenses and booking popular acts that have boosted revenues, making 2006 the first year with positive cash flow from bookings.

Revenues per show were $9,093 last year, up 34 percent from the year before. The Opera House presented 94 performances, selling 57 percent of seats on average, while also renting the facility out to others.

If the campaign is successful, the Opera House will eliminate its construction debt and raise another $300,000 for capital improvements, including an exterior paint job, and $200,000 for capital reserves.

Anyone who has ever bought a ticket to a show is likely to get a solicitation letter over the coming year, Hart said. The business community will also be pitched.

The Opera House has proved its value to Napa, serving as a cultural centerpiece for downtown and a generator of business for restaurants, hotels and stores, Hart said.

Some 35,000 people attended Opera House events last year, Hart said. Assuming the average concert-goer spent an additional $30 as part of their night out, that's $1 million in related spending, he said.

The Opera House is expected to do even better once additional hotels open downtown, Vare said. "We're buying time until the hotels open," she said.

A long time dark

The Opera House, which dates to 1889, reopened in the summer of 2003 after being closed for nearly a century. The historic venue underwent a $15 million renovation, culminating nearly two decades of community preservation efforts.

Backers borrowed $3 million to complete the restoration, resulting in the debt that trustees are now working the wipe out.

The decision to borrow so much money was a "leap of faith," Vare said. Supporters feared that if the restoration were halted for lack of funds, the project would lose "credibility" with the community, she said.

Assuming debt was a smart move, Hart said. Given how construction costs have escalated, attempting the restoration today would cost twice as much, he said.

In addition to the $3.7 pledged by current trustees, the project has received $6.7 million over the years from board members, representing 40 percent of total capital funding, Hart said.

The "Ensuring Our Future" campaign does not address the substantial amount that the board must raise annually to cover day-to-day operating expenses apart from concert costs.

Trustees raised $1.4 million last year to cover the cost of staffing and building maintenance. This subsidy is expected in the arts where the price of a ticket typically covers only half the cost of a seat, Hart said.

In future years, trustees will need to raise about $1.2 million annually. Revenues from memberships, sponsorships, galas and the like contribute to this total.

As the Opera House becomes a more established part of the community, businesses will become more willing to sponsor events, Vare said.

Five months ago, Copia, downtown's other major cultural attraction, announced a severe reduction of staff and reorganization of programs as part of a plan to trim costs and boost revenues.

Copia also said it would try to sell off its acreage south of First Street for a possible hotel development.

Copia's critical numbers were substantially worse than the Opera House's. Copia operations racked up $10 million in red ink last year, with outstanding debts totaling $68 million.

Copia has plans for a capital campaign over the next couple of years, but nothing that can be announced now, Kurt Nystrom, Copia's financial chief, said Friday.

Plans to sell off Copia's south parking lot have been put on hold due to the slow progress of the flood control project. Flood work is needed to protect the site, Kathleen Iudice, a Copia spokesman said Friday.

Copia continues to look at development options for this acreage, but there is no urgency to do anything now, Iudice said.

Both Copia and the Opera House are pioneers, bringing cultural offerings to a part of the Napa Valley that is only beginning to see significant number of tourists.

For both institutions, it's been a painful process to find out what kinds of attractions and what ticket prices will work in today's emerging tourist market.