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Home My WebLink AboutR47-Economic Development CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY I", f IJ FROM: Emil A. Marzullo lnterim Executive Director SUBJECT: Approval of Funding for additional national touring performances at the California Theatre (2008/2009 Enhanced Theatre Season California Theatre of the Performing Arts) D^ TE: September 10, 2008 Synopsis of Previous Commission/Council/Committee Action{s): Recommended Motion(s): (Communitv Develooment Commission) MOTION: That the Community Development Commission of the City of San Bernardino authorize the Interim Executive Director to enter into contracts for an expenditure not to exceed $2.4 million to facilitate four additional National Touring Broadway Productions and nine additional Musical Concerts at the California Theatre. Contact Person(s): Colin Strange Phone: (909) 663-1044 Project Area(s): Central City North Redevelopment Project Area Ward(s): Supporting Data Attached: '" Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) Not to exceed FUNDING REQUIREMENTS: Amount: $ 2.4 million Source: Ticket Revenues Budget Authority: Requested 1 Signature: Fiscal Review: ) /':L" . eCLltive Director Commission/Council Notes: I' ""'\S~lld,,,\C(lml1l Ikv (orlllni"ioll\,[lC 2IJOH\09-1 :i_OS CA The;\lre flmadway Sil,,,,,, & ~\i1LJ,i<;al., doc COMMISSION MEETING AGENDA Meeting Date: 09/15/2008 Agenda Item Nnmber: RI./7 1-1')-08 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT APPROVAL OF FUNDING FOR ADDITIONAL NATIONAL TOURING PERFORMANCES AT THE CALIFORNIA THEATRE (2008/2009 ENHANCED THEATRE SEASON- CALIFORNIA THEATRE OF THE PERFORMING ARTS) BACKGROUND: In 1996, after 50 years of producing top class musicals at the California Theatre, the San Bernardino Civic Light Opera ceased operations and liquidated the company, a tremendous blow to the community and the performing arts of the region. On February II, 1999, the Redevelopment Agency of the City of San Bernardino ("Agency") entered into an Agreement ("AgrccmcnC) with Theatrical A11s International ("TAl") for operation and management of the California Theatre of the Performing Arts (the "California Theatre"). The Agreement allowed TAl to book all events in the California Theatre, to maintain and operate the California Theatre within the guidelines of the Agency's adopted budget, to contract for all required operating staff, to arrange for usher services and for stagc hands for all pcrformances, to develop an operating budget, and to make recommendations for long-term improvements and capital repairs. The Agreement dictated that TAl would reserve the California Theatre for not less than 27 days for non-profit groups. In return for the California Theatre management and operating serviccs, TAl receives 20 rent Ji-ee performance days per year for the larger productions obtained by TAl. All hard costs associated with TAl's rcnt frec performances were to be borne by TAl. including, but not limited to, the cost of the production, security, ushers, stage hands and janitorial. All rental income associated with other Cali Cornia Theatre renters are considered to be Agency productions and arc collected on behalf of the Agency and remitted to thc Agency. Likewise, all costs of thesc Agcncy productions were to be reimbursed by the Agency from rental income or reimbursed directly from the California Theatrc rcnters. In accordance with the annual adopted budget, thc Agency was responsible for maintenance of the California Theatre, utilities and any other costs not considered hard costs of TArs productions. The Agency also paid the costs of direct California Theatre personnel (payroll and benefits of the box ottice manager and rclatcd personnel). Owing to the tremendously successful opcration that TAl have managed to put in place at the California Thcatre, they have increased their season tickct holder base from 3,000 to in excess of 11,000 patrons. In addition, the Agreement with TAl has been extended numerous times in the cnsuing years. In an eJTort to build the reputation of the California Theatre as the premier location of thc performing arts in the Inland Empire, TAl have expended in excess of $1.8 million bringing touring Broadway productions such as Mama Mia, Cats, Chicago, Ragtime, Rent, etc. (to name a few) to the City of San Bernardino, Moreover, TAl has spent approximately $1.4 million in marketing thesc productions. In an effort to create greatcr awareness of the California Theatre, TAl commenced a second season 2 years ago bringing national plays such as Driving Miss Dai.\y, Steel Magnolias and Dirty Rotten Scoundrels, opera, such as Die Fledermuis and dance such as the hit production Stomp and Cinderella the ballet, to the California Theatre All of these productions play to capacity audiences and patrons are drawn from as far as a 60-mile radius, as it is easier and less expensive to see the same Broadway productions in San Bernardino than in Los Angeles. l'Agcndas\Conllll Dc," Commi,sioll'(,DC :008\09-1 '-08 CA Thc~t[C Broadwa, Sil,,,,, & \'l\1Sicab SK,dllC COMMISSION MEETING AGENDA Meeting Date: 09/15/2008 Agenda Item Number: f!... 41 q~/'i -00 Economic Development Agency Staff Report Funding Approval - CA Theatre Broadway Shows & Musicals Page 2 CURRENT ISSUE: Thcrc is no doubt that for the last decade, the California Theatre has cnjoyed the reputation of being the premier performing arts location in the Inland Empire, enhanced by its beautiful, historical, Mission Style architecture as well as being homc to the San Bernardino Symphony Orchestra, with their charismatic conductor Carlo Ponti, the Inland Dancc and Sinfonia Mexicana. At this time, the City of Riverside is embarking upon a $20 million restoration project of their historical Fox Theater (the "Fox") in downtown Riverside, which has been vacant and derelict for decades. When completed, the Fox will be in direct competition with the California Theatre in San Bernardino, competing for the same audiences and thc same productions. Riverside has been very aggressive in thcir plans to maximize their investment and accordingly, have entered into an agreement with the Nederlandcr Corporation ("Nederlander") to program their theater. Nederlander is a very large organization owning and operating many theaters on Broadway and across the nation such as the Pantages in Los Angeles. Some of their current productions include Wicked, The Uon King and Legally Blonde. It is imperative that San Bernardino remains market competitive. Accordingly, TAl have proposed introducing a "third season" at the California Thcatre to be undertaken each year with the intent of: . Aggressively attracting the top Broadway Productions of the season, namely Rent, Moving (Jut. The Producers and The 25th Annual Putnam County Spelling Bee by booking these shows at the California Thcatre first thus eliminating the capability of any other organization from bringing theatre productions to the Fox. . Attracting anothcr 9 onc night musical concerts fcaturing renowncd artists such as Franki Valli. The Beach Boys, Los Lobos, Billy Idol and War. . Increasing the visibility of the California Theatre in the region with top Broadway shows. . Increasing the number of days the California Theatre is in use in Downtown San Bernardino, . Eroding the operating costs of the California Theatre through increased ticket sales and usage of thc California Thcatrc, While TAl have indicated a willingness to coordinate these productions, they are unwilling to front the financial burdcn of a "third season" at thc California Theatre. Expenditures will be reimbursed by the income these productions will generate with the break-even point ranging from 54% attcndance to 61 % attendance. Historically, through thc sophisticated marketing activities of TAl, attendance at their Broadway productions is in excess of 80%, In this case, an average 60% attendance will generate a small profit for the Agency of approximatcly $26,000, while the normal attcndance of 90% would generate a profit of $460,000 for the Agency, TAl will be undertaking the marketing of the productions utilizing the press such as the LA Times, radio, television and direct mail. ENVIRONMENT AL IMPACT: None. r \Agcl1ua,\Coml1l Dev Commi"ion\(DC ~()i)~\O')-1 ~-os C.A ThcalfC Ilroadway Show, & r..111,i~als SR.uoc COMMISSION MEETING AGENDA Meeting Date: 09/15/2008 Agenda Item Number: fZ..t{7 q-/~ ~oe Economic Development Agency Staff Report Funding Approval - CA Theatre Broadway Shows & Musicals Page 3 FISCAL IMPACT: None. RECOMMENDATION: That the Community Development Commission adopt the Motion. c-~- ;C~_.~--. Emil A. Marzullo, Interim Executive Director r \.A~c"das",Colllm Dc" COll1m;ssion\(D( 2008\09-15-08 ('A Th~alre Broadway Show, & r-.1tL,ilab SR.Juc COMMISSION MEETING AGENDA Meeting Date: 09/] 512008 Agenda Item Number: !<4 7 q-{~-oe