The Landmark Theater Gets A Bar!...But There Is A Catch
An "emergency paper" presented by the Mayor will come before - and be approved by - Council tonight that will essentially turn over the Landmark Theater operations to the Richmond Performing Arts Committee (RPAC).
For those of you keeping score at home, that means the Carpenter Center and Landmark will be run together. This is a good thing because a competent theater operator can use both theaters to book various shows and maximize the offerings to the public that pays to support those theaters.
It also means that the city, which currently runs the Landmark Theater and loses anywhere from $750,000 to $1million + annually, will cap its loss at $500,000.
Probably the best part of this deal is it means that since a private entity runs the Landmark that you will finally be able to enjoy a glass of wine at the Opera or a cold beer at a Widespread Panic show (antiquated state ABC law forbids a municipality from serving booze at a theater it operates).
So on these points it is a positive.
But SMG is traditionally an arena and convention center operator and does not have extensive experience or a great track record in proactively running theaters. I have been told that RPAC reviewed several theater operators but also know for a fact they did not even call or talk to the largest and arguably the most successful theater promoter and operator in the country.
A representative of Live Nation said they were never even contacted and he promoted two shows at the Landmark in 2007. He never even got a phone call. Live Nation won the bid for a new season in Norfolk and the city shopped around for bids and in Richmond we let a group select "from a list" that does not include one of the best but one group we already have ties with.
It remains to be seen which city gets more aggressive programming and better Broadway shows, and SMG can't hold a candle to Live Nation's track record. SMG won't be booking the shows anyway - they will handle the renting but we still need a promoter to bring the shows.
It is doubtful we will get anything worse than the now bankrupt and corrupt BACI group that did the Broadway Under the Stars series which brought good, if dated, shows to River City. But we could do better.
If we have a management group that is best at running arenas and just picks up the phone for second tier promoters who want to bring a Broadway show, do we really gain and make our scene better or will it be more of the same?
SMG might be better than the city at managing it (and as mentioned we now have a bar and a cap on losses), but we still need a promoter to bring in shows.
If you have a group that can promote and operate like Live Nation (there are others too) they can book an entire top flight Broadway Series as well as work with local arts groups to accommodate their needs and book other shows and performances. An operator and promoter combo will result in better control and management and eliminates a middleman and helps the bottom line.
As Don Harrison at SaveRichmond pointed out in his must read piece Friday, SMG was awarded the bid to operate the Coliseum under dubious circumstances that help define unethical and that the fees for their management increased even as performance and numbers decreased. It is a must read look back at the history of SMG's performance at the Coliseum in the 1990's (which has since improved) but the lessons should remain in our conscience.
The aiming for middle of the road expectations is one thing, but the real big problem in the ordinance is in Section 4.1 on page 6 of the document. It states only authorized city officials will be allowed to view RPAC's records, even though the city is paying $25 million to rebuild the Carpenter Center, $3 million for Landmark improvements, as well as provide a $500,000 annual operating subsidy.
If you are a member of the public, forget about even filing a Freedom of Information Act request to see if everything is on the up and up. Section 4.1b discusses public disclosure - or should I say the lack thereof. It says:
"procurement records shall not be interpreted to include...(ii)financial records including balance sheets or financial statements of a private entity that are not generally available to the public through regulatory disclosure. For purposes of this subdivision, the term private entity means RPAC.
So the entity known as RPAC established by the city and the Performing Arts Foundation to take advantage of the tax credits and hire operators for the facilities will not have to tell you one iota of how they are spending their money or what they spend it on. They could hire high priced consultants for $10,000 a month and no one outside for a few select city officials can ask "what are we getting for that?"
It reiterates the clampdown in Section 4.2b: "Pursuant to VA Code 56.575.17(D) and Section 4.1(B)(2) of this Agreement, financial statements submitted as required by this subsection will not be subject to public disclosure."
So under no circumstances are you to know how the Landmark Theater is being run, how much money it makes or loses, or review anything financial about a "private entity" that receives so much public largesse.
RPAC is supposed to receive $500,000 from Richmond Center Stage before the city ponies up it's $500,000 but how will we be able to discern that for ourselves? We can't.
And if you say there is nothing to worry about, take a look at the agreement the city made with the CDA in which we agreed to pay $250,000 annually but this year will cost us $1 million and up to $3 million total because some supposed experts miscalculated finances and the number of parking spaced and knew ultimately that the city would bail it out because it was too important a project.
We heard the same thing about the subsidy for 6th St. Marketplace and that the city would only have to pay so much but in reality it was a bottomless pit because the "symbol" was too important to let go.
So, in this case, we get to watch Council and the Mayor yet again give it up to the business elite that operate RPAC and the Center Stage Foundation because everyone is running for Mayor and bruised toes lead to empty coffers.
It's not the worst deal we could get, but it could be better. Once again we are told it is urgent and we must just trust the deal and move now before it is too late. We know how all the other deals turned out that get plowed through with little debate and virtually no public input and it is possible, just based on past experiences, this might turn out the same.
I of course hope it does not, but if it does crash and burn we won't know until well after it happens because no one is allowed to see how the private entity that receives so much public money operates.
If Richmond history is any guide, we will need that bar at the Landmark to be fully stocked.
~
UPDATE: The 804blog has an interesting comment on the SMG deal and the fact that they run venues in Cville:
Sure, the JPJ is a much nicer venue, but it really makes me wonder whether SMG is actually “steering” productions to them over Richmond. If another firm was competing for these concerts, would Richmond book more shows?
Good question. Competition does wonders.
~~
For those of you keeping score at home, that means the Carpenter Center and Landmark will be run together. This is a good thing because a competent theater operator can use both theaters to book various shows and maximize the offerings to the public that pays to support those theaters.
It also means that the city, which currently runs the Landmark Theater and loses anywhere from $750,000 to $1million + annually, will cap its loss at $500,000.
Probably the best part of this deal is it means that since a private entity runs the Landmark that you will finally be able to enjoy a glass of wine at the Opera or a cold beer at a Widespread Panic show (antiquated state ABC law forbids a municipality from serving booze at a theater it operates).
So on these points it is a positive.
But SMG is traditionally an arena and convention center operator and does not have extensive experience or a great track record in proactively running theaters. I have been told that RPAC reviewed several theater operators but also know for a fact they did not even call or talk to the largest and arguably the most successful theater promoter and operator in the country.
A representative of Live Nation said they were never even contacted and he promoted two shows at the Landmark in 2007. He never even got a phone call. Live Nation won the bid for a new season in Norfolk and the city shopped around for bids and in Richmond we let a group select "from a list" that does not include one of the best but one group we already have ties with.
It remains to be seen which city gets more aggressive programming and better Broadway shows, and SMG can't hold a candle to Live Nation's track record. SMG won't be booking the shows anyway - they will handle the renting but we still need a promoter to bring the shows.
It is doubtful we will get anything worse than the now bankrupt and corrupt BACI group that did the Broadway Under the Stars series which brought good, if dated, shows to River City. But we could do better.
If we have a management group that is best at running arenas and just picks up the phone for second tier promoters who want to bring a Broadway show, do we really gain and make our scene better or will it be more of the same?
SMG might be better than the city at managing it (and as mentioned we now have a bar and a cap on losses), but we still need a promoter to bring in shows.
If you have a group that can promote and operate like Live Nation (there are others too) they can book an entire top flight Broadway Series as well as work with local arts groups to accommodate their needs and book other shows and performances. An operator and promoter combo will result in better control and management and eliminates a middleman and helps the bottom line.
As Don Harrison at SaveRichmond pointed out in his must read piece Friday, SMG was awarded the bid to operate the Coliseum under dubious circumstances that help define unethical and that the fees for their management increased even as performance and numbers decreased. It is a must read look back at the history of SMG's performance at the Coliseum in the 1990's (which has since improved) but the lessons should remain in our conscience.
The aiming for middle of the road expectations is one thing, but the real big problem in the ordinance is in Section 4.1 on page 6 of the document. It states only authorized city officials will be allowed to view RPAC's records, even though the city is paying $25 million to rebuild the Carpenter Center, $3 million for Landmark improvements, as well as provide a $500,000 annual operating subsidy.
If you are a member of the public, forget about even filing a Freedom of Information Act request to see if everything is on the up and up. Section 4.1b discusses public disclosure - or should I say the lack thereof. It says:
"procurement records shall not be interpreted to include...(ii)financial records including balance sheets or financial statements of a private entity that are not generally available to the public through regulatory disclosure. For purposes of this subdivision, the term private entity means RPAC.
So the entity known as RPAC established by the city and the Performing Arts Foundation to take advantage of the tax credits and hire operators for the facilities will not have to tell you one iota of how they are spending their money or what they spend it on. They could hire high priced consultants for $10,000 a month and no one outside for a few select city officials can ask "what are we getting for that?"
It reiterates the clampdown in Section 4.2b: "Pursuant to VA Code 56.575.17(D) and Section 4.1(B)(2) of this Agreement, financial statements submitted as required by this subsection will not be subject to public disclosure."
So under no circumstances are you to know how the Landmark Theater is being run, how much money it makes or loses, or review anything financial about a "private entity" that receives so much public largesse.
RPAC is supposed to receive $500,000 from Richmond Center Stage before the city ponies up it's $500,000 but how will we be able to discern that for ourselves? We can't.
And if you say there is nothing to worry about, take a look at the agreement the city made with the CDA in which we agreed to pay $250,000 annually but this year will cost us $1 million and up to $3 million total because some supposed experts miscalculated finances and the number of parking spaced and knew ultimately that the city would bail it out because it was too important a project.
We heard the same thing about the subsidy for 6th St. Marketplace and that the city would only have to pay so much but in reality it was a bottomless pit because the "symbol" was too important to let go.
So, in this case, we get to watch Council and the Mayor yet again give it up to the business elite that operate RPAC and the Center Stage Foundation because everyone is running for Mayor and bruised toes lead to empty coffers.
It's not the worst deal we could get, but it could be better. Once again we are told it is urgent and we must just trust the deal and move now before it is too late. We know how all the other deals turned out that get plowed through with little debate and virtually no public input and it is possible, just based on past experiences, this might turn out the same.
I of course hope it does not, but if it does crash and burn we won't know until well after it happens because no one is allowed to see how the private entity that receives so much public money operates.
If Richmond history is any guide, we will need that bar at the Landmark to be fully stocked.
~
UPDATE: The 804blog has an interesting comment on the SMG deal and the fact that they run venues in Cville:
Sure, the JPJ is a much nicer venue, but it really makes me wonder whether SMG is actually “steering” productions to them over Richmond. If another firm was competing for these concerts, would Richmond book more shows?
Good question. Competition does wonders.
~~
posted by Jon Baliles | 8:42 AM
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