WARREN - Packard Music Hall director Christopher Stephenson said Thursday that he is not opposed to partnering with a national company to promote shows and increase revenue.
But he cautioned city council members at a Packard Music Hall committee meeting against allowing an outside company to come in and take over the hall's operations. He said such a move would jeopardize community events currently held at the facility and would not necessarily give the city the revenue boost it expects.
Mayor Michael J. O'Brien said last week he wanted council's permission to seek a "Request for Qualifications" for a consultant who would help the city put together a profile of Packard Music Hall and a management agreement for which companies would submit bids. He said his intent was to eliminate the city's subsidy of the hall, which this year is $250,000.
Deputy Law Director James Ries said the city legally could hire a management firm because the facility is owned by the city and is operated with city employees with a city subsidy.
O'Brien said his proposal has three goals: preserving Packard Music Hall for the community and satisfying the Packard Trust, maximizing the hall's assets, and increasing the tourism dollars that flow through the facility. He also said the improvements being done this summer, including a new stage and lighting system, will enhance the hall's offerings and make it more attractive to potential bidders.
Councilwoman Sue Hartman, D-7th Ward, said she agreed with O'Brien's proposal in theory and also favored eliminating the hall's subsidy, but she said she disagreed with hiring a consultant. She said putting together a management agreement could be done in-house with Stephenson, human resources and the law department, who could use Youngstown's contract for the Covelli Centre as a guide.
However, O'Brien said a consultant is needed because management of entertainment venues is a special area of law that requires expertise on the subject. The mayor said he and other city administrators have considered at least 20 different ideas to increase revenue and decrease expenses, and his proposal for the music hall was among them.
"Manufacturing job losses have left a huge hole in the city's budget and we're not even left with enough fingers to plug the dike," O'Brien said.
Councilman Doc Pugh, D-6th Ward, said he thinks hiring a management company is the wrong way to go in this economy.
"There is no money here to be spent on entertainment. I think we should tighten our belts as much as possible and tread water until things get better. Hopefully, we can ride the wave when the economy starts to turn around and Chris (Stephenson) can use some of his ideas then," Pugh said.
Stephenson said he understood the city's need to look at a management agreement, but asked council to consider all options, including a cooperative agreement involving him and a national promotions company that would allow management of the facility to remain local while he could take advantage of national exposure for shows and bookings.
Ries said public money cannot be used to promote shows, but a management company could promote shows and the city could write an agreement that would ensure its subsidy is paid before the private company makes a profit. He said such an arrangement would enable the music hall to boost profits by changing the business model from a rental-only facility while maintaining a local connection.
"Just like Youngstown does with the Covelli Centre. A local guy runs the day-to-day operations, but a national company helps him book and promote events," Safety-Service Director Doug Franklin said. "Chris has done an excellent job managing Packard Music Hall. We just need to find a proper marriage between local control and national exposure to make it profitable."
No legislation to allow O'Brien to seek an RFQ has been prepared yet, according to committee chairman Vince Flask, D-5th Ward.