WILMINGTON — On Tuesday, Wilmington City Council postponed voting on a management deal with Live Nation to operate the Hugh Morton Amphitheater, giving staff time to get written responses to questions from council members.
These questions arose during the agenda review meeting on Monday, August 31, when council members reviewed the details of the contract with Live Nation to operate Hugh Morton, better known as Greenfield Lake Amphitheater (GLA). Council members had questions about why staff chose Live Nation over AEG Presents, as well as about what control the city would have over concession pricing and employee compensation.
Related: A side-by-side look at Greenfield Lake amphitheater proposals from AEG and Live Nation
Other questions were raised during the question by downtown business owner and radio host Hunter Ford, who spoke during Tuesday’s regular council meeting.
After a brief discussion, council agreed to delay a vote until September 15.
Council members ask questions
On Monday, city council reviewed the contract — first drafted in the spring — with Live Nation.
Amy Beatty, the city’s director of community services, told Councilman Neil Anderson that staff had chosen Live Nation because the company’s proposal was more profitable for the city but, more importantly, because Live Nation had more experience with outdoor venues. Beatty noted that while AEG did not visit Greenfield Lake prior to making its pitch, Live Nation had already been producing shows there for several years and was therefore familiar with the venue.
Beatty also clarified that Live Nation would manage the facility but would not have exclusive booking rights.
[You can find Monday’s full agenda briefing video here.]
Anderson also expressed concerns that handing over the operation of GLA would impact it’s “local flavor” and “Wilmington personality.” Anderson expressed concern that GLA would become like other major venues, where — in Anderson’s example — a beer can run up to $12. “Is that how we’re going to make money? Because if so…I just don’t want to ruin it, and I’m really worried we are,” Anderson said.
Beatty confirmed that Wilmington would have no control over concession prices, with the exception of civic events. However, Beatty said Live Nation took into account the local relationships between GLA and non-profit groups and neighbors, as well as the general atmosphere.
Councilman Kevin Spears expressed his own concerns for how GLA staff would fare once Live Nation took over. Spears acknowledged that the city would no longer be employing them, but asked if the city could use its influence in the deal to assure those employees were decently compensated.
Ford’s allegations
Hunter Ford, who spoke during the beginning on Tuesday night’s meeting, reiterated criticisms he has voiced at past meeting, alleging that the potential deal with Live Nation — in addition to the company’s management of the larger venue at the North Riverfront Park — would create a monopoly on live music. It’s worth noting that around half of recent shows at GLA have been produced by Live Nation with multiple other promoters also operating shows. Ford’s comments didn’t seem to include smaller venues or the CFCC Wilson Center.
Ford also suggested it would be illegal for Live Nation, which is already booking shows at GLA, to continue its current alcohol sales practices under the city’s ABC permit. Ford suggested a monopolistic quid-quo-pro agreement was in place. However, currently, several distributors, as well as local breweries, sell beer and wine at GLA.
[Note: It’s not clear if Live Nation will be required to acquire its own private permit or if it will operate under the city’s license. Port City Daily has asked the city for clarification.]
Ford has previously been critical of the booking and marketing practices at GLA. While the proposed contract with Live Nation would be non-exclusive, Ford claimed the company has in the past used the impression that it has exclusive contracts with its venues to discourage competition.
Councilman Kevin O’Grady asked staff to look into whether there was any ‘meat’ to Ford’s allegations, in particular potential ABC/ALE violations.
Deputy City Manager Thom Moton made a point of noting that staff’s recommendation to delay the vote had been made prior to Ford’s comments.
The proposed deal
In exchange for turning management of the amphitheater over to Live Nation, the deal will net the city over $400,000 in rent over ten years, along with revenue from additional shows and per-ticket fees. With the exception of city-run ‘civic events,’ Live Nation will retain proceeds from concessions.
Live Nation will manage booking event and scheduling services, venue consulting, facility management, and most food and beverage concessions.
The deal includes the following financials:
- $437,987 in rent over ten years ($10,000 per quarter, increasing 2% each year) for up to 30 shows per year
- $1,500 per show over 30 (up to 10 additional shows per year), increasing 2% each year, reaching $1,790-per-show over 30 in the tenth year
- $2-per-ticket fee paid to the city
- 50% of net concessions revenue from civic events
- $250,000 in maintenance expenses paid by Live Nation over 10 years
- $500,000 for equipment, fixtures, and furnishings, with half of the improvements being completed within 18 months of the first 2021 concert event and the remaining balance of the improvements completed by the end of 2026
Because Covid-19 has effectively derailed the concert business, a temporary agreement for the remainder of 2020 will only require Live Nation to pay to the city are a $700 per event fee and $2 per ticket sold.
[Disclosure notice: Live Nation has produced shows with and is a sponsor of 98.3 The Penguin, which is owned by Port City Daily’s parent company Local Daily Media. Neither The Penguin or Live Nation is involved in Port City Daily’s editorial decisions.]
