Title
Symphony Hall Resident Company Agreements (Ordinance S-43723)
Description
Request to authorize the City Manager, or his designee, to enter into three separate amended and restated agreements for each of Symphony Hall's resident companies: The Phoenix Symphony, Arizona Opera Company, and Ballet Arizona. Each contract will be a five-year use agreement for renting Symphony Hall and reflects stabilized rental rates, modified contractual language and additional provisions. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
The City of Phoenix, through the Phoenix Convention Center Department (PCCD), supports the performing arts through the Symphony Hall resident companies.
On Sept. 1, 2005, the City entered into a five-year agreement with the three resident companies for the use of Symphony Hall. In this agreement, the resident companies received a number of exclusive concessions including, but not limited to, early access to the booking calendar, parking availability, and the waiver of facility rental fees for student performances. This agreement was extended one year.
On Sept. 1, 2011, following City Council approval, an amended agreement went into effect for an additional five years. Provisions included, but were not limited to, a rate increase plan, additional performance weeks and changes to payment dates. The five-year phased rate increase concluded with resident companies receiving 40 percent off of the daily Symphony Hall commercial rental rate. In 2016, this agreement was extended one year.
Beginning in January 2017, PCCD convened joint meetings with the three resident companies. All parties have since agreed on key business terms for new agreements. The proposed agreements cover rental rates and conditions governing the use of Symphony Hall and grant protected dates for each resident company over the term of the agreements. The agreements provide for stabilized rental rates for the five-year period. The current daily commercial rental rate of $3,600 will be reduced by more than 42 percent to $2,082 for resident companies, and this rate will be retained for the life of the agreement. Other provisions include stabilized production coordinator costs at Symphony Hall and alternate parking availability when resident companies present at the Orpheum Theatre. Also included is a stepped increase in facility fees, adding $1 per ticket in years four and five of the contract, and negotiated conditions for backstage catering options for the resident companies.
Contract Term
Each of the agreements has a term of five years, commencing Sept. 1, 2017, and concluding Aug. 31, 2022, with an option for an additional five years at mutual agreement of both parties for each contract. The potential 10-year duration of the contracts further demonstrates the City's long-term commitment to and support of vital cultural organizations that present the majority of their work in downtown Phoenix. Their presence results in positive economic impact to the City and local businesses.
Financial Impact
The three agreements are revenue contracts.
Location
Symphony Hall, 75 N. 2nd St.; and Orpheum Theatre, 203 W. Adams St.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Phoenix Convention Center Department.