THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Sunday, December 18, 1994 TAG: 9412160275
SECTION: VIRGINIA BEACH BEACON PAGE: 10 EDITION: FINAL
TYPE: Cover Story
SOURCE: BY BILL REED, STAFF WRITER
LENGTH: Long : 230 lines
Cold-eyed practicality overrode old political ties Tuesday and altered - briefly, anyway - the way the city does business.
The change didn't come easily.
After a week of intense behind the scenes lobbying and an equally intense four-hour hearing, City Council members voted 7-4 to award the city's multimillion-dollar entertainment and events contract to the new kid on the block.
The beneficiary was Cellar Door Productions, an arm of the nation's largest concert promotions company, which has its regional headquarters in Virginia Beach.
It is the same company tapped by the city in April to build and operate a 15,000- to 20,000-seat amphitheater, which has yet to be built on a site yet to be determined.
Losing out in the process was Virginia Beach Events Unlimited (VBEU), a local non-profit organization that has handled Beach entertainment programs for the past 21 years and is headed by some of the city's most prominent movers and shakers.
They include former Councilwoman Nancy Creech, organizer of the Neptune Festival and salaried president of VBEU; Michael J. Barrett, chairman of the Hampton Roads Chamber of Commerce and a member of the VBEU board of directors; and former Mayor Harold Heischober, a VBEU supporter and former King Neptune.
Council's vote came after much soul searching and coincided with the recommendation of a six-member committee comprised of city staff members, who considered four bidders vying for the contract.
Besides Cellar Door and VBEU, competing companies were B-D Imaginings and Ocean Breeze Fun Park, an amusement operation on General Booth Boulevard, headed by developers Edward S. Garcia and Michael F. Gelardi. Principals in B-D Imaginings, city records show, are William Dean, a Virginia Beach resident who is part of the William and Mary Actors Project, and Michael Parker, a Chesapeake resident.
Going into the Tuesday council session, Cellar Door was the top choice of city staff members to take over a variety of programs, including the American Music Festival, the North American Fireworks Competition and a bevy of other Oceanfront events designed to enhance the city's tourism industry.
But a fierce lobbying campaign aimed at council members and even Bill Reid, president of Cellar Door Productions, apparently swayed a council majority to VBEU's cause.
On Tuesday an obviously agitated Reid strode to the podium to question council's apparent ambivalence to the bidding process.
In opening remarks, Reid said he had received telephone calls, apparently from VBEU backers, advising him to withdraw from consideration in the events bidding.
``If that (process) is superseded because of politics. . . then I think it sends a message that if you're qualified, if you do your job right, you will still not get the contract,'' he said.
``If you go against the procurement act here, then you're sending a message, not only to me. . . but to all future businesses that want to come into Virginia Beach. This is not a popularity contest, this is not about who you know . . . because . . . that's why you went through the RFP (request for proposals). If this is about who knows who, then I should not have gone through the RFP in the first place.''
After hearing Reid, Barrett and VBEU events director Chris Casey present their cases, several council members, including a teary-eyed Mayor Meyera E. Oberndorf, announced that they had changed their minds about who should handle the Beach events program.
Councilman John D. Moss conceded he had a change of heart and later explained why.
``I was persuaded on the merits,'' he said Thursday, adding that he had opted for Cellar Door ``because they're willing to take risks. If their financial risks fail, they pick up the tab, not us.''
Oberndorf and Councilman Louis Jones said they concurred with Moss's reasoning. Oberndorf, however, held out the olive branch to VBEU officials. She said she regretted any ill effects the council vote would have on thousands of city volunteers who annually participate in the Neptune Festival. She said she would consider giving VBEU more public funding to ensure the festival's continued existence.
Councilwoman Louisa M. Strayhorn said volunteers should not be considered in the bidding process. ``We must consider the best value for the dollar,'' she said. ``It's unfair to look at Cellar Door (and Virginia Beach Events Unlimited) as David versus Goliath.''
Councilman Robert K. Dean, one of four voting against the Cellar Door selection, offered his perspective of the bidding process. ``This is a political thing,'' he said. ``I don't like the process or the way the RFP came about. I don't have all the facts and figures.''
Once the council voted, a few of the players in the drama assessed the implications.
Barrett, who had made his pitch for VBEU before the council, said Wednesday that he was disappointed in the end results.
``Council had a very difficult choice to make,'' he said. ``Nonetheless, I was very disappointed. I regret the process did not allow the economic benefits that VBEU had created from the management of event programs to come forward.
``I think council was placed in a position where they did not have the information to make an intelligent decision. I regret that. I think that would have made the difference.''
Henry Richardson, president of the Virginia Beach Hotel and Motel Association, applauded the council decision. ``Generally these RFPs never come up for a vote,'' he said. ``We recognize that on a pure business decision, we thought Cellar Door was the best vendor for the Beach Events and Boardwalk programs.
``I think for VBEU to have framed the issue that it would hurt the Neptune Festival was erroneous. I don't think anybody in the city, especially us, wants to hurt the Neptune Festival.''
Insurance executive Daniel J. Arris, a member of the VBEU board, said VBEU backers should accept the council decision with equanimity.
``My recommendation would be that we hold our heads high and we go ahead and make the 1995 Neptune Festival the best ever,'' he said. ``We should not ask for money. We're going to have more difficulty raising money because our image was somewhat tarnished from this. But our reputation is exemplary. We'll get lean and mean and make 1995 the best ever. We should not look for a handout.''
As to the future of the Neptune Festival, Arris said it was in everyone's best interests to move forward.
``It would look childish and retaliatory and it would make all the good work we've done pale,'' he said. ``It would be a stupid decision. That group (VBEU board members) would not make that decision.''
The controversy over the events issue arose a year ago when VBEU came under fire for alleged mismanagement and slipshod bookkeeping practices.
VBEU gets more than $1 million a year from the city in the form of hotel room taxes and grants to develop Boardwalk entertainment and major events.
The major events portion of the program ran afoul of a group of innkeepers who criticized lavish spending during the 1993 Memorial Day weekend to produce a national fireworks competition.
At the time the city's contract with VBEU had expired and the organization was operating on a handshake.
Last March the council agreed to place VBEU under a tougher contract that would require stricter financial accounting procedures.
At the same time the council agreed to open the events contract to all comers, and directed City Manager James K. Spore to get the bidding process under way. Spore selected a six-member committee to review the bids and recommend a top candidate. Cellar Door became their top choice. ILLUSTRATION: Photo
Bill Reid, president of Cellar Door Productions, initially
questioned council's apparent ambivalence to the bidding process.
Photo
WHAT WAS AT STAKE? The multimillion-dollar contract to plan and
operate annual entertainment programs at the Oceanfront.
WHO WANTED IT? Of the four bidders, the top two were Cellar Door
Productions, which agreed to manage the city's events program for an
administration fee of $255,000, plus 33 percent of the cash
sponsorships and net concession revenues over the levels produced in
1994; and Virginia Beach Events Unlimited, which agreed to continue
managing the events program for a $353,329 administration fee.
HOW DID COUNCIL VOTE? Cellar Door won the contract by a 7-4 vote.
Council members supporting Cellar Door: Mayor Meyera E. Oberndorf,
Vice Mayor William D. Sessoms Jr., Louis R. Jones, Linwood O. Branch
III, John D. Moss, W.W. Harrison Jr. and Louisa M. Strayhorn.
Council members voting against Cellar Door: John A. Baum, Robert K.
Dean, Barbara M. Henley and Nancy K. Parker.
Cellar Door's Plan
The following Oceanfront entertainment events are included in the
proposal submitted by Cellar Door Productions, which was awarded the
contract last Tuesday by the City Council. This schedule is subject
to change and requires final approval by the city.
MAJOR EVENTS
May Music Festival - A stage will be set up on the beach like it
was for the American Music Festival. Artists such as The Spinners,
Four Tops, The Embers will be booked. (May 19 to 21)
American Music Festival - A continuation of the same '94
festival. Organizers will attempt to get even more significant
headliners. (Sept. 1 to 4)
Lighting of Virginia Beach - A 10-block area of Atlantic Avenue
will be decorated and lighted with holiday scenes and characters.
(Dec. 20 to 31)
North American Fireworks Competition - This event, previously
held on Memorial Day weekend, will be moved to another weekend when
the resort area needs to attract more business. (June 10 to 12)
Weekly national show series - Acts like America, Marshall Tucker
Band and Three Dog Night will play weekly on the 24th Street Stage.
(Thursdays, April 13 to Sept. 14)
Wine Festival - Along with the wine, samples of gourmet foods
will be provided and sold by local businesses. Light jazz or
nationally known acoustic artists will play. (July 29 and 30)
Chili Festival - Prizes and awards will be given for the best
chili in various categories. Nationally known artists will be
booked. (April 22 and 23)
Kite Festival - Kite flying and building competitions will be
held with different kite experts set up along the Boardwalk. (April
29 and 30)
Pirate Festival (children's event) - Ships, boats and pirate
paraphernalia will be set up along the Boardwalk. A children's play
like ``Peter Pan'' will be held. (June 24 and 25)
Jazz Festival - A weekend event at the 24th Street Park. (Aug. 5
and 6)
Country Festival - A weekend event at the 24th Street Park
featuring new up and coming artists. (July 12 ad 13)
Canadian Music Festival - Canadian music and cultural
entertainers will be booked. (July 15 and 16)
Balloon Festival - Hot air balloons will be displayed along the
Boardwalk by enthusiasts. (Oct. 21 and 22)
Boardwalk Art Festival - The annual art show will be expanded to
include various indoor events to include dance, theater and national
music events. (June 15 to 18)
Surf Fishing Tournament - A fall event on the beach designed to
attract anglers from outside the area. (Oct. 7 and 8)
Craft Show - Weekend shows will be held in the fall along the
Boardwalk. (Aug. 19 and 20)
Cinco De Mayo - A celebration of the Mexican New Year along the
Boardwalk that includes the sale of Mexican food and clothes and
featuring a nationally known band such as the Parrothead Party Band.
(May 5)
GENERAL ENTERTAINMENT
Local bands - Top 40 bands would play at 24th or 17th Street
stages. (Tuesdays, May 2 to Oct. 3)
Plays - A casual theater held once a week at the 24th Street
stage. (Fridays, June 2 to Aug. 18)
Children's mimes/puppets - These will perform along the
Boardwalk.
Fourth of July - Top 40 bands would play at 24th or 17th Street
stages.
Children's stories - A professional storyteller would read
stories at the 24th or 17th Street stage once a week. (Mondays, May
1 to Aug. 28)
Convention entertainment - Top 40 bands, swing bands or other
appropriate entertainment would be booked to appeal to specific
convention groups that are in town.
by CNB