The City of Saratoga Springs is considering turning to attendees of rock concerts at the Saratoga Performing Arts Center for some fiscal assistance by placing a $2 fee on every ticket purchased.
Though the proposal is not finalized, it is clear that the surcharge would apply only to Live Nation events and would exclude other SPAC programming, including the classical season. Representatives of the venue and Live Nation expressed opposition to the idea.
Finance Commissioner Ken Ivins had planned to set a public hearing on the proposal at the Tuesday, July 21, meeting of the City Council, but pulled the item from his agenda to take more time to polish it.
We’re still tidying up some loose ends, said Ivins. `It took us a while to get some answers from the state Department of Taxation and Finance.`
Leveling fees on SPAC or race course admissions have been two frequently discussed revenue possibilities at the City Council table in past months as the city leadership debates ways to solve an unprecedented budget crisis.
Earlier this month, the body voted 3-2 to close a budget gap with $2.8 million worth of cuts and money from the city’s reserve fund.
On Tuesday, Ivins asked Public Safety Commissioner Ron Kim to prepare an outline of how rock concerts at SPAC impact the city’s spending, particularly with police overtime.
`I look at this as a way to bring additional revenue from people outside the city who are using our facilities,` said Ivins.
SPAC President and Executive Director Marcia White disagreed with that reasoning, saying that the venue is on state parkland and is covered by park police.
`I don’t see that there is a tremendous burden on the city,` she said. `I think that the revenue generated by people coming from different areas to Saratoga for a Live Nation event and the money they spend here far outweighs the services they may use.`
White said that 250,000 people usually attend Live Nation events each year, meaning the city could stand to realize $500,000 in revenue.
SPAC’s classical season draws smaller crowds on the order of 100,000 to 150,000, said White, and as Accounts Commissioner John Franck noted, there are rarely high profile crime situations that require extra security in the venue or city during those events.
`People who tend to listen to Mozart or listen to Swan Lake don’t tend to get in fist fights,` said Franck.
Earlier this summer, at a Dave Matthews Band concert, a concertgoer was charged with felony assault after allegedly pummeling another fan, sending him to the hospital.
Live Nation events are what enable SPAC to operate in the black, however. The entirety of its classical programming operates at a loss, with ticket sales generally covering only 40 percent of costs.
`There could also be the decision down to the road to tax the classical performances as well,` said White. `I think it’s a very dangerous precedent.`
Tickets for Live Nation events are already subject to extra fees. One lawn ticket for a ‘Lil Wayne concert on Wednesday, July 29, for example, is $35.75, but turns into $48.25 after Live Nation’s ticket fees are added.
Frank argued that with such surcharges already existing, the city’s charge shouldn’t discourage fans from attending concerts.
`A dollar or two I don’t think is going to make that big of a difference,` he said.
John Huff, general manager at Live Nation, disagreed, saying that the charge will have a negative effect on the promoter’s ability to bring big acts to SPAC.
`I think it’s a significant increase to go from zero to $2, and it will have an impact,` he said. `It’s a tax, there’s no other word for it, and unfortunately it will be passed on to the ticket buyers.`
Since the venue is located on state property, the proposal would require the approval not only of the City Council, but also of the state legislature. City officials blame the budget crisis largely on the state’s decision to remove $3.8 million in VLT aid to the Spa City, when a shortfall of only half that amount had been expected.
In May, Live Nation reported nearly $500 million in first quarter revenues, a 6 percent decline from the same period in 2008.
Ivins said that he will place discussion of the fee on the agenda for the Aug. 4 meeting of the City Council, at which time a public hearing will likely be scheduled for Aug. 18.“