Key Takeaways
- The Portland City Council has voted to amend the city code to direct a percentage of ticket prices from large venues to support the local arts community.
- Large venues with a capacity of over 2,000 will be required to contribute 1% to 2% of ticket sales to an entertainment sector trust fund.
- The new licensing change will affect venues such as the Cross Insurance Arena and a proposed Live Nation venue, but will not apply to city-owned properties or smaller venues with a capacity under 2,000.
- The fund will be used to support the local arts community, but details of how it will be operated are still under discussion.
- The amendment is set to take effect on February 4, but will not affect existing venues immediately.
Introduction to the Licensing Change
The Portland City Council has recently voted to amend the city code to direct a percentage of ticket prices from large venues to support the local arts community. This decision was made in response to public concerns over the impact of larger music venues on smaller operations in Portland. The city council voted unanimously, 7-0, to create a new category of entertainment license for venues with a capacity of more than 2,000. This new licensing change will require large venues to contribute a percentage of their ticket sales to an entertainment sector trust fund, which will be used to support the local arts community.
Affected Venues and Exemptions
The new licensing change will affect several large venues in Portland, including the Cross Insurance Arena, which has a capacity of 6,200 seats, and two venues at Thompson’s Point. Additionally, a proposed Live Nation venue, the Portland Music Hall, which is currently under discussion, will also be subject to the new licensing change. However, city-owned properties such as Merrill Auditorium, Portland Expo, and the Portland Ice Arena, as well as the State Theater, which has a capacity under 2,000, will be exempt from the new licensing change. This exemption is likely due to the fact that these venues are already supported by the city or are smaller in size and therefore less likely to have a significant impact on the local arts community.
Details of the Licensing Change
The new licensing change will require large venues to contribute 1% to 2% of the price for each ticket sold to the entertainment sector trust fund. The exact details of how the fund will be operated are still under discussion by the city council, and there is no estimate yet of anticipated revenue from the new requirement. However, the council’s Housing and Economic Development Committee recommended the licensing change as a way to address concerns from the public over the potential impact of larger music venues on smaller operations in Portland. According to Ben Grant, an at-large council member, the new licensing change is "a pretty elegant way to get some money into the entertainment sector without having to go to direct taxation."
Implementation and Timeline
The amendment is set to take effect on February 4, but will not affect existing venues immediately. Instead, existing large capacity venues will be required to enter into an Entertainment Sector Benefit Agreement prior to the second termination date of their current license that occurs after February 4. This means that venues will have some time to adjust to the new requirements before they are required to start contributing to the entertainment sector trust fund. For example, if a large venue’s current license expires on May 1, 2026, they will need to enter into an agreement on or before May 1, 2027. This phased implementation will allow venues to plan and prepare for the new requirements, and will give the city council time to finalize the details of how the fund will be operated.
Conclusion and Future Implications
The new licensing change is a significant development for the local arts community in Portland, and has the potential to provide much-needed support to smaller venues and artists. While the details of how the fund will be operated are still under discussion, the city council’s decision to amend the city code is a positive step towards addressing the concerns of the public and supporting the local arts community. As the implementation of the new licensing change moves forward, it will be important to monitor its impact and make any necessary adjustments to ensure that it is achieving its intended goals. Overall, the new licensing change has the potential to be a win-win for both large venues and the local arts community, and could help to promote a thriving and vibrant arts scene in Portland.
