Key Takeaways
- Entertainment venues with a capacity of 2,000 or more people in Portland are now required to contribute a portion of ticket sales to the local arts trust fund.
- The contribution will be between 1 and 2 percent of base ticket prices and will support entertainers and entertainment businesses.
- The change was approved unanimously by the city council and applies to venues not operated by the city.
- The new rule comes after Live Nation proposed a 3,300-seat downtown concert venue, which sparked outcry from some claiming it will hurt other venues.
- A moratorium is in place preventing new entertainment venues with over 2,000 seats from being built, but Live Nation’s proposal is still set to go before the planning board for approval.
Introduction to the New Rule
The city council of Portland has approved a new rule that requires entertainment venues with a capacity of 2,000 or more people to contribute a portion of their ticket sales to the local arts trust fund. This change was made unanimously on Monday night and applies to all venues that are not operated by the city. The contribution will be between 1 and 2 percent of the base ticket prices and will be used to support entertainers and entertainment businesses in the area. This new rule is a significant development for the entertainment industry in Portland and has sparked both support and criticism from various stakeholders.
Background and Context
The new rule comes on the heels of a proposal by Live Nation to build a 3,300-seat downtown concert venue. This proposal was met with outcry from some who claimed that it would hurt other existing venues in the area. Live Nation, however, argues that their proposed venue, the Portland Music Hall, will bring significant economic benefits to the city. According to a study by Oxford Economics, the Portland Music Hall is expected to bring in $44 million a year in positive economic impact. Despite this, some are concerned that the new venue will cannibalize business from other existing venues, such as the Cross Insurance Arena and Thompson’s Point.
Impact on Existing Venues
The new rule will have a significant impact on existing venues in Portland, particularly those with a capacity of 2,000 or more people. Venues like the Cross Insurance Arena and Thompson’s Point will be required to contribute a portion of their ticket sales to the local arts trust fund. However, venues with a capacity under 2,000, such as the State Theater and Merrill Auditorium, will not be affected by the new rule. This has raised concerns that the new rule will unfairly burden larger venues and give smaller venues an unfair advantage.
Moratorium on New Venues
In addition to the new rule, the city of Portland has also implemented a moratorium on new entertainment venues with over 2,000 seats. This moratorium, which started in August, prevents new venues from being built for a period of six months. Despite this moratorium, Live Nation’s proposal for the Portland Music Hall is still set to go before the planning board for approval. This has raised questions about the effectiveness of the moratorium and whether it will have any impact on the development of new venues in the area.
Conclusion and Next Steps
The new rule requiring entertainment venues to contribute to the local arts trust fund is a significant development for the entertainment industry in Portland. While it is intended to support entertainers and entertainment businesses, it has also raised concerns about the impact on existing venues and the potential for unfair competition. As the proposal for the Portland Music Hall moves forward, it will be important to monitor the impact of the new rule and the moratorium on new venues. The city council will need to balance the needs of existing venues with the potential benefits of new developments, all while ensuring that the local arts trust fund is supported and thriving. Ultimately, the success of the new rule will depend on its ability to strike a balance between these competing interests and promote a vibrant and sustainable entertainment industry in Portland.
