[Update: Council unanimously voted to amend the contract, without discussion, at its Dec. 6 meeting]
WILMINGTON — City council will consider a revised contract with the concert management company that oversees its two outdoor amphitheaters at Tuesday’s meeting.
READ MORE: Only 1 council member used controversial VIP box at Riverfront Park
The vote could permanently increase the number of shows held at Live Oak Bank Pavilion at Riverfront Park in a season. The 2023 agreement will raise the number of concerts a year from 20 to 30. Last year, the city approved Live Nation to book up to 30 shows but only 26 were scheduled, with four being canceled.
If the amendment is agreed upon, it also includes complimentary VIP tickets for the city. Live Nation will allot four free tickets for every show, valued at more than $15,000.
“The city wants the ability to utilize the park for economic development without the expense of city resources,” city spokesperson Jennifer Dandron told Port City Daily as to what prompted the contract amendment.
The city’s VIP tickets have raised concern in the past from the public that elected officials would be attending shows on taxpayer money. However, Mayor Bill Saffo introduced a resolution in July 2021 that revised use of the VIP tickets, purchased for $14,124 through venue revenues — not the city’s general fund.
City council members were mandated to pay full value for any ticket they were allocated. The box seats were restricted to use for courting economic development prospects that would help boost “job creation, retention, or expansion.”
The policy does not specify who can have the tickets, only that they must be used for economic development purposes. So in theory, city council or staff could take advantage of the opportunity, if approved.
City manager Tony Caudle has the sole discretion on whether any requested tickets would be deemed appropriate under the policy.
Last year’s amended contract also included any unused tickets to be sold back to Live Nation.
In 2021, the city paid $14,124 for four tickets to every show; however, only one show was attended, and none of the tickets were resold.
The city received $185,588 for 92,794 tickets sold last year.
Per the contract, Live Nation also pays the City of Wilmington $200,000 annually in fixed rent, in addition to $2 per ticket sold.
This year revenue increased 20% to $422,942 from Live Nation’s rent, plus a portion of 111,471 ticket sales.
Dandron told Port City Daily the VIP tickets purchased for the whole 2022 season cost about $14,000. The city only used tickets for three shows.
“Any unused tickets were posted online for the public to purchase,” Dandron said.
She explained the process works similarly to someone purchasing a ticket and re-selling it through Live Nation’s website. The city posted them online for the public to buy.
The city and Live Nation Worldwide Inc. entered into a 10-year venue management agreement on Oct. 17, 2017, three years before the $29-plus-million Live Oak Bank Pavilion opened its first show to the public. The inaugural season was compressed, as the venue didn’t open until mid-season, July 2021.
“Given the success of events held at LOBP, Live Nation has requested to increase the number of events allowed annually,” the agenda document noted ahead of Tuesday’s council meeting. “Increasing the number of allowable events at LOBP has a positive economic impact to the area.”
Any additional events to be added beyond the 30 pitched for next year would require council approval.
Due to the positive economic impact, the city fronted $79,790 in improvements to the park made over the last year to aid in the guest experience.
Council approved reimbursable funds from Live Nation at its Nov. 15 meeting to cover six rehab projects at the venue, including temporary portable restrooms and infrastructure, Wi-Fi access points, IT infrastructure, and it modified the height of the stage rigging.
Repairs at Cowan Street were also covered by Live Nation, needed after permeable pavers were destroyed by heavy trucks during construction.
The only repair being shared equally in cost between Live Nation and the city is paving at the Cowan Street roundabout median. Concrete was installed to replace the reinforced grid previously used, which did not sustain the weight and turning of tractor trailers.
The city paid $16,775 for the $33,550 roundabout and Live Nation doled out the remaining.
On top of managing the 6.6.-acre Live Oak Bank Pavilion, Live Nation entered into a 10-year management agreement with the Hugh Morton Amphitheater at Greenfield Lake in October 2020. Last year was the first full year of Live Nation managing the 1,200-capacity city-owned venue.
The deal brings in $40,000 annually in rent, increasing 2% each year for a decade. The city also receives $1,500 for each event over 30 but limited to 40, as well as $2 per ticket purchased for up to 30 shows March through November.
Live Nation retains all proceeds from concessions, except during civic events — public festivals, fundraisers or gatherings arranged by the city, such as Azalea Festival — where proceeds are split 50/50 with the city. The management company handles booking and scheduling services, venue consulting, and facility management.
The city will vote on the amended Live Nation contract Tuesday at 6:30 p.m. at city hall, 102 N. 3rd St.
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