THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, September 4, 1996 TAG: 9609040404
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY ALEX MARSHALL, STAFF WRITER
DATELINE: NORFOLK LENGTH: 54 lines
For what is believed to be the first time since they were built, Scope, Chrysler Hall and the city's other downtown cultural facilities turned a profit last fiscal year, their director said Tuesday.
Even without counting the spinoff dollars generated by visitors who also ate or shopped downtown, the facilities earned the city $825,000 last year, said William H. Luther, director of civic facilities.
He said he knew of no other year in their history when they had turned a profit.
The bulk of the profits camefrom the successful run of the Broadway hit ``The Phantom of the Opera,'' which packed Chrysler Hall for 54 shows last fall and winter.
With a top ticket price of nearly $70, ``Phantom'' generated nearly $1 million in revenue for Norfolk, Luther said.
That helped cover the cost of operating Scope, Chrysler Hall, Wells Theater and the Harrison Opera House.
The total income from civic facilities last fiscal year - from July 1, 1995, to June 30, 1996 - came to about $3.8 million, up almost a million dollars from the previous year. After subtracting the city's $3 million in expenses, the city had a profit of $825,000.
These figures do not include money the city makes from taxes on meals or hotels and other spending by those drawn downtown to the facilities, so total city revenues were almost certainly higher.
The figures only include rental fees, taxes and other direct revenue from Scope and other downtown facilities.
Scope and Chrysler Hall opened largely debt-free at the start of the 1970s after being built with federal money. Still, they have struggled financially.
With competition from nearby Hampton Coliseum, Scope in particular has had difficulty securing major concert acts and other moneymakers.
Ten years ago, operating deficits on the city's downtown cultural facilities were as high as $1 million a year, Luther said. In the past four years, the deficits have ranged from $122,000 to $219,000, he said.
Even without ``Phantom,'' Chrysler Hall and Scope did well last fiscal year, Luther said. A steady stream of high-dollar shows at Chrysler, ranging from Patti LaBelle to national comic Jerry Seinfeld, helped the facilities make money.
The total revenue from ticket sales at all downtown facilities was $10.8 million, up from $6.9 million the previous year.
Luther said he expects the city to turn another profit this fiscal year, even though no large Broadway shows have been scheduled.
But the success of ``Phantom'' has proven the area's potential as a venue for top shows, Luther said, so more will be scheduled in coming years.
One on the horizon is the musical ``Miss Saigon,'' he said. ILLUSTRATION: Photo
Scope and Chrysler Hall by CNB