Public Expresses Support, Concern Over Opera House Plan

Leone, before you pack your bags and head down to Lansing, you should probably get the facts straight. You are correct that the Wharton Center contract contains a $75,000 management fee. That represents the going rate for a world class executive director. However, the fee will only be paid if a NET PROFIT is generated. It should not come as a surprise to you that in only its second year of operations, the Opera House has yet to generate a profit. As with most new businesses, especially in the entertainment industry, it takes a few years to begin generating a profit. The Wharton Center proposal fast-forwards the entire business plan of the Opera House. The Wharton Center will assume all financial liability, further insulating the community and the tax payers from any financial liabilities. The contract also calls for Wharton Center to have access to 25% of the NET PROFIT generated from operations (not revenues as you had incorrectly insinuated.) That 25% will go to this state-wide, non-profit organization with a mission of serving the entire state. Right now, the Opera House, with tenants like Porterhouse Productions, generates a net annual loss of about $100,000. The other 75% of profit generated would stay with the Opera House. If the Wharton Center is successful in turning around the fledgling operations of the Opera House, the lion's share stays with the city owned property. So to review; charge a market rate fee, only take it if you make money, guarantee break even operations (or else inject cash into the operations), and kick out 75% of all profits to the house. Good deal? If you don't think so, maybe you should head down to Lansing and get some schooling. Regarding jobs; Wharton Center will not only retain existing Traverse City positions, if the operations are successful, there is a likliehood that there would be additional positions added. Stick around, there may be a role for you yet. Regarding programming, the community based non-profit that raised over $9 million to restore the Opera House on behalf of the city and its residents will maintain control over the programming schedule. Community members will continue to have not only a voice, but control over the content at the Opera House. Regarding the family owned, Porterhouse Productions; it is privately owned, for-profit entity, and its primary purpose, as with all for-profit businesses, is to generate income for its owners. Porterhouse's primary concern is not to maintain the Opera House. Rather, it is generating income for its shareholders. As it should be. That is what they are supposed to be doing. Unfortunately for the Opera House, the practices of Porterhouse Productions have generated losses for the Opera House, as staffing and security that had been required of Portehouse as renters was consistently not supplied, and was therefore supplied by the Opera House, at its expense. Security and safety issues that were pointed out to Porterhouse after its New Year's event were repeatedly ignored, culminating in thousands of dollars in damages, fire code and safety regulations violated, and THREE visits from the TC Police at Porterhouse's Umphries McGhee event. It is fantastic to have a wide variety of events at the Opera House, but not at the expense of the building, or the safety of the patrons. Porterhouse is one of dozens of Michigan promoters who are capabale, along with Wharton Center, to bring a vast array of programming for young and old. It will be the challenge for the managers, as well as the community to make sure that programming needs are met, and that the users of the Opera House work to sustain the Opera House for near tearm and long term success. You suggest that, "every dollar the Opera house and Porterhouse Productions earn off of a show there it's a dollar they spend back into the Traverse City community." Actually, Porterhouse has cost the Opera House, and ultimately, the Community thousands of dollars. Just so we're on the same page here, that's not a sustainable business model. As for Porterhouse's spending habits, I doubt the owners would be willing to submit their financial information to the public for your scrutiny (unlike MSU and the Opera House.)