Key Takeaways
- The Portland City Council has approved a new fee targeting large entertainment venues with over 2,000 seats.
- The fee requires venues to pay between 1% and 2% of ticket sales into the Entertainment Sector Trust Fund.
- The trust fund aims to support Portland’s arts and entertainment community through improvements to performance and rehearsal spaces, equipment, services, and education.
- City-owned venues are exempt from the fee, and existing venues will not be required to comply until their annual licenses are renewed.
- The ordinance is a result of the heated public debate over a proposed Live Nation concert hall, which sparked concerns about the impact on local artists and smaller venues.
Introduction to the Ordinance
The Portland City Council has unanimously approved a new ordinance that creates a licensing category for large entertainment venues with over 2,000 seats. This move comes after months of public backlash over a proposed Live Nation concert hall, which raised concerns about the potential negative impact on local artists and smaller venues. The new ordinance requires these large venues to pay a fee, ranging from 1% to 2% of ticket sales, into the newly established Entertainment Sector Trust Fund. This trust fund is intended to support Portland’s arts and entertainment community, and city officials are still discussing how the funds will be allocated.
The Fee Structure
The fee structure is tiered, with privately operated venues holding 2,000 to 2,499 seats required to pay 1% of base ticket sales. Venues with 2,500 to 2,999 seats will pay 1.5%, and those with 3,000 or more seats will pay 2%. The fees are calculated from the base ticket price, before taxes and third-party service charges are added. This means that the fee will be based on the initial ticket price, without any additional costs or charges. City-owned venues, on the other hand, are exempt from the fee, which is a significant exemption given the number of city-owned venues in Portland.
Background and Context
The ordinance is a direct result of the heated public debate over the proposed Live Nation concert hall. The project, which would have created a 3,300-seat downtown concert venue, sparked concerns among local artists and smaller venues about the potential negative impact on their businesses. Critics argued that the large venue would draw audiences away from smaller venues and local artists, ultimately harming the local arts and entertainment community. In response to these concerns, the city council revisited the city’s law governing large performance halls, leading to the creation of this new ordinance. The developers behind the Live Nation proposal had initially agreed to a $1-per-ticket contribution as part of the approval process, with half of the money going towards Greater Portland Metro bus improvements and the remainder directed to arts organizations.
Implementation and Next Steps
The new ordinance will take effect on February 4, and existing venues will not be required to comply until their annual licenses are renewed. This means that there will be a phased implementation of the fee, with existing venues having some time to adjust to the new requirements. The planning board has postponed consideration of the Live Nation project until March, when it is expected to resume business following the expiration of the moratorium. This delay will give the city council and other stakeholders time to review the project and consider the potential impact on the local arts and entertainment community. In the meantime, city officials will continue to discuss how the trust fund will operate, including how the money will be allocated to support local artists and entertainment businesses.
Supporting Local Arts and Entertainment
The Entertainment Sector Trust Fund is intended to support Portland’s arts and entertainment community through improvements to performance and rehearsal spaces, equipment, services, and education and training initiatives. The city council has not yet finalized how the trust fund will operate, but discussions have included using the money to support local artists and entertainment businesses. This could include initiatives such as providing funding for local arts organizations, improving performance and rehearsal spaces, and offering education and training programs for local artists and entertainment professionals. By supporting local arts and entertainment, the city aims to create a more vibrant and diverse cultural scene, which will ultimately benefit the community as a whole.
Conclusion
The approval of the new ordinance is a significant step towards supporting Portland’s arts and entertainment community. The fee structure and trust fund are designed to ensure that large entertainment venues contribute to the local community, rather than simply profiting from it. While there are still details to be worked out, the city council’s unanimous approval of the ordinance is a positive sign for local artists and smaller venues. As the city continues to grow and develop, it is essential that the arts and entertainment community is supported and nurtured, and this ordinance is an important step in that direction.
