RTP-area local music and culture

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Open up theater planning process 
 
The Herald-Sun (editorial)
Jun 3, 2004

It was good to hear the City of Durham is at least four months away from
hearing the full financial details of a plan to build a $42-million,
4,000-seat theater downtown near the Durham Bulls Athletic Park. 

There are too many unanswered questions to rush headlong into such a large,
potentially risky investment. We're uncomfortable with the project in a
number of areas: The lack of openness in the process so far, the exclusive
involvement of Clear Channel Entertainment and the city's potential
liability if things don't work out. 

The reason the theater situation appears murky is that not enough of the
planning has been conducted in the open. If it is ever to garner support,
the theater needs to have the public -- the future ticket-buyers -- solidly
behind it. 

And part of the public's reticence is due to the presence of media giant
Clear Channel, the 800-pound gorilla in the room. At a public meeting
Tuesday, citizens criticized Clear Channel as "the Wal-Mart of
entertainment" because of its huge size and preference for
middle-of-the-road entertainment fare. 

We don't have a problem with a company making profits and growing large.
That's the American way. And we know Clear Channel has plenty of expertise
running event centers all over the country, including the Alltell Pavilion
at Walnut Creek. 

What does bother us is that Clear Channel has been involved from the
beginning with no other proposals on the table. Recently, Alliance Theater
Construction Consulting of Connecticut submitted an unsolicited proposal for
$32 million -- $10 million less than Clear Channel. But city officials were
unimpressed. They weren't sure if the proposal met specifications and said
they needed to focus on the current proposal. 

What? Someone offers a $10 million savings and we're too busy to look at it?
We need to take a hard look -- and actively seek other proposals. 

We're also concerned because Clear Channel stands to reap the benefits if
things go well, but doesn't share the risk if they don't. Under the rosy
scenario presented by a development team, operating revenues should top
$1.25 million a year the first year and go up from there. But most of the
profit would go to pay Clear Channel's management fee. If revenues fall
short, Clear Channel's pay would be reduced, a fate the company would likely
survive. But it would be worse for Durham taxpayers, who would be forced to
make good on any shortfalls. 

In general, a new theater downtown is an exciting idea. But we would rather
say thanks, but no thanks, if it turns out to be a better deal for Clear
Channel than for Durham taxpayers.