THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, May 17, 1996 TAG: 9605170235
SECTION: VIRGINIA BEACH BEACON PAGE: 16 EDITION: FINAL
TYPE: Cover Story
SOURCE: BY TOM HOLDEN AND KAREN WEINTRAUB, STAFF WRITERS
LENGTH: 138 lines
If the opening of the new Virginia Beach amphitheater proved one thing, it's this: given the right mix of talent and a perfect setting for outdoor music, people will come to a show, even on a rainy night.
The question now is will enough come to repay the taxpayers' investment and turn a profit for Cellar Door Productions of Virginia?
The answer is different for each partner in the deal. The city says it cannot lose because of the way the contract is written, and Cellar Door, the city's partner, says it has the know-how to ensure its own success.
``If the show bombs, it's not our nickel,'' said Mark R. Wawner, project development manager with the city's Economic Development Department. ``But if it succeeds, we get to share in that nickel.''
Bill Reid, president of Cellar Door, was equally blunt.
``The onus is on us to find and contract major entertainers,'' Reid said. ``We have a lot of money at stake here. We have to work hard to make sure we bring in good entertainment to make back our money and the city's.''
Cellar Door runs the amphitheater and must pay the city a minimum of $730,000 a year for 30 years. At that rate, the city's $10.5 million investment in the $18.5 million project will be returned in about 14 1/2 years.
But that's a bare minimum, because it doesn't include the taxes the city will collect on tickets, T-shirts, beer and everything else sold at the outdoor arena. The city also gets a 5 percent cut of all parking fees and sponsorship revenue.
City Council member and amphitheater champion William W. Harrison Jr. said he will be disappointed if the investment is not returned in about seven years.
``For it to be successful to me, I don't want to put an undo standard on the dag-gone thing, but . . . I think it has the opportunity to do substantially better than the minimums and I'm hoping we can look to a return somewhere in the $1.2 million to $1.5 million range per year,'' he said.
In addition to the financial return, the city also gets less tangible benefits from the amphitheater, Wawner and Harrison said.
Tourists who come to Virginia Beach or spend an extra night to see a concert will spend money throughout the city, Harrison said. Musical artists who mention Virginia Beach concerts in promotions around the country will increase the resort city's exposure.
And it helps the image of the city among residents and across the region, Harrison said.
``Clearly it brings fun,'' Harrison said Thursday. ``I had a great time last night. I think a lot of people did.
``It has raised Virginia Beach's perception in the rest of the region,'' he added. ``It's shown that we have matured as a city, that we are able to come to the table and produce. I think it's raised the perception of the city government.''
Harrison, who is serving in his first council term, said other council members passed him the project to escape the political heat.
``Here's a novice we'll give it to him, because we don't think it'll work,'' Harrison said. ``That's the thing I'm most proud of - there was a lot of political risk and it worked out.''
He took over at a bad time for the city. The Dixie Stampede had left town, the horse race track had been located somewhere else and the Lake Gaston pipeline seemed perpetually stuck.
Harrison said he used the council's negative reputation - as a group that studied more than it did and rejected more than it approved - to convince other council members to support the amphitheater.
``We had to succeed in this,'' Harrison said. ``By delay or further study or any of that stuff we would lose the opportunity to make this happen. In large respect, whether we invested $7 million or $10 million, it was important to prove that Virginia Beach can succeed.''
When Bruce Hornsby opened the inaugural concert Wednesday with a 2 1/2-hour show, the audience numbered 6,691, leaving 13,309 potential seats unused and raising a question of how success is measured.
``Wednesday night was the biggest paid audience that has seen Bruce Hornsby play in his career in Hampton Roads,'' Reid said. ``We had over 6,000 people and that exceeded our expectations.''
Reid and others said they wanted a relatively modest crowd on opening night so they could work the bugs out. There's plenty of time for sellout crowds later, he said.
``We built a 20,000-seat amphitheater so we could bring in Jimmy Buffett, Garth Brooks, Elton John, Paul McCartney and Janet Jackson, so that we could bring the superstar acts. But we don't anticipate but a few sellout shows. And that's good because everyone will have an opportunity to buy a ticket.''
Prices will range from $10 for a lawn seat to nearly $80 for a covered seat at next month's Eagles concert.
Jimmy Buffett tickets sold out in an hour. But a concert doesn't need to sell out to be profitable, Reid said.
``Everyone assumes that every act must sell 20,000 seats or it's not a success,'' Reid said. ``That's completely not true. If that were the case, then we'd all have to retire. But we have to negotiate good deals with clients. We can't just open the checkbooks and pay everyone what they think they are entitled to. No one would be in business if they did.''
Every artist charges differently, so the number of tickets Cellar Door needs to sell to turn a profit is different for every show, Reid said.
``Everyone wants to look at it show by show,'' Reid said. ``But you have to look at the season. Some artists will draw more than others. That's a fact of the business. Just as some movies draw more than others.''
Reid struck an analogy to Tides baseball at Harbor Park in Norfolk where nightly attendance is not so much the measure as the success of the entire season.
``The difference between us and Tides baseball is that they control the inventory; they own the team. They can guarantee a certain number of games per year. They can control that, while we cannot.''
Obviously, he said, weather is a factor. If it rained all summer or it turned unseasonably cold on each night of a concert, then turning a profit would be a problem.
Wawner said he's almost relieved it rained on opening night. That way, concert-goers who've never been to an amphitheater before will know what to do if the weather isn't perfect the night they have tickets.
``It rained, the show went on,'' Wawner said. ``They'll know to bring their windbreakers and parkas if they have lawn tickets.
``I'm going to buy a couple of ponchos and keep them in the trunk,'' said Wawner who watched Wednesday's concert from a well-covered VIP box. ``I like sitting on the lawn anyway.'' ILLUSTRATION: Color photo on cover by D. Kevin Elliott
Bruce Hornsby appears to serenade Mayor Meyera Oberndorf before the
concert debut of the new Virginia Beach Amphitheater.
Color photos by D. Kevin Elliott, The Virginian-Pilot
The performer: Bruce Hornsby plays the accordian during the opening
concert Wednesday night.
Political fans: Bill Reid, left, president of Cellar Door
Productions, speaks at the opening of the amphitheater while
Virginia Beach City Councilman William W. Harrison blows up the
ceremonial first beach ball thrown out at the new venue Wednesday.
Grown-up fans: Debbie Land, left, and Keene Black, both of
Chesapeake, watch the concert from the front row.
Color photo by Steve Earley, The Virginian-Pilot
The Amphitheater: Concert goers spread out their blankets on the
grass prior to the start of the Bruce Hornsby performance Wednesday
evening. Rain later drove many in the crowd to head for cover.
Color photo by Candice C. Cusic, The Virginian-Pilot
Kid fans: Whitney frazier, left, and her brother Kyle Frazier fend
off the rain at Wednesday's concert. by CNB