ORPHEUM THEATER Transition of Management Services PROPOSAL OVERVIEW - - PowerPoint PPT Presentation

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Sep 23, 2022 7 likes •151 views

ORPHEUM THEATER Transition of Management Services PROPOSAL OVERVIEW Transition management of Orpheum Theater o from SMG / Spectra o to Washington Pavilion Management, Inc. (WPMI) Effective July 1, 2019 Requires amending the existing

SLIDE 1

ORPHEUM THEATER

Transition of Management Services

SLIDE 2

PROPOSAL OVERVIEW

Transition management of Orpheum Theater
from SMG / Spectra
to Washington Pavilion Management, Inc. (WPMI)
Effective July 1, 2019
Requires amending the existing WPMI management agreement to incorporate the

Orpheum Theater

Requires termination and assignment of the Orpheum Theater management

responsibilities in the existing SMG and Spectra management agreements

SLIDE 3

ORPHEUM THEATER HISTORY AND OVERVIEW

Opened 1913, presently owned by City of Sioux Falls
Historically showcased Vaudeville, repertory theater, movies and other entertainment
Currently hosts plays, concerts, dances, banquets, weddings and other events
Historic theater with 686 seats
Anne Zabel Studio Theater seating up to 450
Classroom space
CityLink co-located in Orpheum complex
Last renovated in 2007

SLIDE 4

ORPHEUM THEATER HISTORY AND OVERVIEW

Primary User Groups:
Sioux Empire Community Theater

(SECT)

Sioux Falls Jazz & Blues Society
Sioux Falls Municipal Band
Total Attendance averages

approximately 30,000 people annually

Average of 110 to 144 event days

annually

SLIDE 5

ORPHEUM THEATER HISTORY OF CITY INVESTMENTS

Major Renovations (2007)

$1.8MM

Seat Replacement (2009)

$275K

HVAC Upgrade (2011)

$118K

Rigging / Stage Lighting (2017)

$407K

Courtyard Improvements (2018)

$12K

Next up: Boiler Replacement

SLIDE 6

ORPHEUM THEATER TRANSITION OBJECTIVES

Preserve the Orpheum Theater as a community asset downtown, maximizing utilization and access to the arts for Sioux Falls residents in the most cost effective way for the City.

SLIDE 7

ORPHEUM THEATER TRANSITION OBJECTIVES

Aligns management of city-owned performing arts venues downtown
Create efficiencies in terms of events booking, ticket sales, promotion
Performing Arts Program continues to grow at Washington Pavilion
Synergies in booking across the spectrum of three seating capacities
1881 seats

Mary Sommervold Hall

686 seats

Orpheum Theater

450 seating capacity

Anne Zabel Studio Theater

400 seating capacity

Pavilion Stage Seating

300 seats

Belbas Theater

SLIDE 8

ORPHEUM THEATER TRANSITION OBJECTIVES

Continue to build momentum in development of downtown as an arts district
Washington Pavilion, Orpheum, Levitt, State Theater, Sculpture Walk, Museums
Non Profit Management
Opportunity to raise charitable funding to support the Orpheum
Facilitates collaboration of arts organizations
WPMI now better positioned to take over management of Orpheum
Aligns SMG / Spectra management focus on the Premier Center Campus

SLIDE 9

ORPHEUM THEATER FINANCIAL PERFORMANCE

2014 2015 2016 2017 2018

Total Revenue $156.6 $165.2 $188.8 $151.1 $154.5 Total Cost of Events $23.4 $47.6 $67.3 $41.6 $36.3 Net Events Revenue $133.2 $117.6 $121.5 $109.5 $118.2 Operating Expenditures $440.6 $527.4 $616.1 $623.1 $632.9 Net Operating Income (Loss) ($307.4) ($409.8) ($494.6) ($513.6) ($514.7)

SLIDE 10

WPMI MANAGEMENT AGREEMENT AMENDMENT

No Change in Term: Originally effective Jan 1, 2018 through December 31, 2022.

Option for five year extension.

Adds Orpheum Theater as facility under management
Orpheum Theater management subject to same terms and conditions as the

Washington Pavilion management

Exhibit A: Termination, Assignment and Assumption Agreement
Assumes contracts and obligations for Orpheum Theater as assigned; and simultaneously

terminates management of the Orpheum for SMG / Spectra.

SLIDE 11

WPMI MANAGEMENT AGREEMENT AMENDMENT

Requires submission of separate budgets for each facility
Requires supplemental reporting in audit showing each facility
Moves Audit submission date from July 31 to November 30
Align to new WPMI fiscal year
Eliminates Article 16 related to compliance with requirements due to bonding (bond

compliance language)

Outdated article to when bonds were outstanding

SLIDE 12

MANAGEMENT STRUCTURE COMPARISON

SMG / SPECTRA
For profit third-party management agents
Receive management compensation (fee and/or portion of sales/revenues)
Responsible for promoting, operating, and managing facilities
All revenue and expenses (combined facilities) run through single operating account in

SMG’s name but ultimately owned by City, managed by SMG

Orpheum losses absorbed by other managed entities (i.e. Denny Sanford Premier Center)
Net equity position of combined facilities reported as part of the Entertainment Tax Fund
City provides funding to support the maintenance, preservation, capital improvements,

and operation of the facility.

SLIDE 13

MANAGEMENT STRUCTURE COMPARISON

Washington Pavilion Management, Inc.
Non profit entity
City provides funding to support the maintenance, preservation, capital improvements,

and operation of the facility

Subject to City annual appropriation from entertainment tax fund
Washington Pavilion responsible for operations
No management fee or direct compensation

SLIDE 14

ORPHEUM MANAGEMENT TRANSITION TIMELINE

Completed

SMG and Spectra have accepted and signed the Termination and Assignment Agreements
Washington Pavilion Board of Directors approved the Amended Management Agreement and have

executed the amended agreement

Washington Pavilion presentation to Orpheum Theater Advisory Board
Transition coordination meetings between WPMI, SMG, and Spectra continuing

Next Steps

Informational Presentation to City Council – May 14
Request approval resolution of Amended WPMI Management Agreement – May 21
Coordinate final transition of management responsibilities to WPMI effective July 1