WILMINGTON — Citing an “abundance of caution” from the city’s attorney, staff are requesting that City Council postpone a vote on the Live Nation management contract for Hugh Morton Amphitheater (a.k.a. Greenfield Lake Amphitheater) until October.
During Monday morning’s agenda review meeting, Amy Beatty, the city’s director of community services, told council that the city’s legal staff were recommending postponing the Live Nation vote until the October 6 meeting. The issue was previously continued earlier this month to allow staff time to tackle questions from council members.
According to Beatty, concerns stemmed from state law requiring a 30-day public notice for rental agreements. Beatty noted that while the Live Nation contract was a management agreement, and not technically a rental agreement, the word “rent” appears numerous times in the legal contract. To be safe, the city will consider the initial meeting announcement the public notice, making it more than 30 days when council takes the issue up again next month,
The postponement will also presumably give staff additional time to workshop questions that councilmembers had during the August 31 agenda review meeting, as well as questions from the general public. Those questions prompted council to continue to issue during its September 1 meeting.
According to city emails, those questions include:
- Concerns about the variety of artists who will perform at Greenfield Lake, and whether non-Live Nation managed acts and other promoters will have access to the amphitheater
- Whether there are any drawbacks to having Live Nation manage two concert venues in Wilmington (e.g. Greenfield Lake and the North Waterfront Park venue, currently under construction)
- Whether the likely increase in food and beverage retail costs will be excessive
- Whether food trucks, a popular feature under the city’s management, will continue to be allowed
- Will the city have any sway over how staff (who are currently city employees) be compensated once Live Nation takes over
Staff were also directed to look into allegations about possible ABC violations made by Wilmington business owner and radio host Hunter Ford.
The proposed deal
If approved, the deal to turn management of Greenfield Lake Amphitheater to Live Nation 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.
Related: A side-by-side look at Greenfield Lake amphitheater proposals from AEG and Live Nation
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.]
