Item B: Cuthbert Amphitheater Update

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Cuthbert Amphitheater Update Meeting Date: May 8, 2006 Agenda Item Number: B Department: Library, Recreation and Cultural Services Department Staff Contact: Laura Niles www.eugene-or.gov Contact Telephone Number: 682-2697 ISSUE STATEMENT Members of the Eugene City Council requested an information session on Cuthbert Amphitheater services following the staff-initiated Request for Proposals to contract out management. Staff will provide background information on the status of the Cuthbert Amphitheater as a cultural arts venue in Eugene. BACKGROUND The oversight of managing and promoting Cuthbert Amphitheater was assigned to the Cultural Services Division in 1997, when the City Council agreed to accept ownership of Alton Baker Park from Lane County. The council appropriated $125,000 for facility improvements, which included the design and construction of the copper-toned stage roof; however, no appropriation was made for the venue’s operation and promotion. Over the years, these duties have been accomplished by Cultural Services staff as a special assignment through a combination of limited union-represented hours and substantial management overtime, and staff continues to look for a variety of inventive initiatives to stretch the division’s strained resources. Technological advances, increased partnerships, and consolidated efforts with other City divisions have been utilized and yet, costs continue to exceed revenues. Because of limited funding for promotion, the venue has been used only when it is convenient for promoters, putting the City at the mercy of their financial issues, which include those experienced by the industry as a whole. Small, regional promoters have been nudged out of the business in the last several years due to several significant changes in the popular touring entertainment industry: ?Popular entertainers are less willing to tour smaller venues because of lower profit margins and a higher risk for loss. ?Popular acts often require higher artist fees, as well as higher fees for travel, hotel, hospitality, and production, which lead to less profit for managers and promoters. ?Higher fees have led promoters to raise ticket prices, which have resulted in lower sales, because many patrons are thinking more frugally when making major entertainment purchases. ?Outdoor facilities have a greater risk of being affected by weather, which leads to erratic ticket buying patterns. All these factors often eliminate small venues such as the Cuthbert from major tours because capacity cannot generate adequate sales to cover predicted expenses. Artist agreements with managers and promoters provide them with up to 100% of the ticket price, leaving only ancillary revenue such as L:\CMO\2006 Council Agendas\M060508\S060508B.doc