TRAVERSE CITY -- A potential operating agreement for the City Opera House in downtown Traverse City brought dozens out to voice support and concerns, including issues with secretive deal-making with a downstate group.
The Traverse City Commission met Monday to discuss a proposed three-year contract between the opera house board and the Wharton Center for Performing Arts at Michigan State University, but did not take any action. Many city residents spoke favorably about the organizational abilities and experiences Wharton could bring to the city-owned opera house, but others voiced worries about how the public was left out on decision-making.
"I think the public will always crash the party when they're not invited," said Beth Milligan, a Traverse City resident who also noted there's a "long history in Traverse City of back-room deals."
Wharton stands to receive $75,000 annually to manage the opera house and would guarantee any losses be absorbed by the organization, should the facility fail to turn a profit. Wharton would not cover the opera house's current $250,000 debt.
Residents questioned why Wharton is the sole organization pitched to run the opera house and why a local manager wasn't pursued.
"It feels like the decision has all but been made," said Ansel Bowden, of Traverse City. "I think there needs to be more time for discussion and input from residents."
Mayor Chris Bzdok described the situation as "being painted into a corner" with Wharton as the only option.
"It's been determined without our input and without our knowledge. I don't want that to happen again," Bzdok said.
Michael Moore, founder of the Traverse City Film Festival, said festival officials were never consulted about a deal with Wharton, despite being among the most frequent facility renters.
"You don't make the best decisions when you make them this way," Moore said. "The best decisions get made when everyone is involved in the decision."
It's not so much a concern about how well Wharton would run the venue, he said, but how contract details for a publicly owned building were negotiated behind closed doors.
Sam Porter, of event presenter Porterhouse Productions, another frequent venue renter, said he opposes exclusive management at the opera house, preferring a partnership among stakeholders.
"I hope that after this talk we have the chance to collaborate," Porter said.
Bob Spence, co-chairman of the opera house board, said the deal required a confidentiality agreement at the outset, but opera house officials are "not trying to hide anything." He spoke about local access being maintained for groups like the Traverse Symphony Orchestra, the film festival and Porterhouse, and how the board turned to Wharton because it can protect the opera house's financial and programming interests.
Wharton Executive Director Mike Brand said there are no pre-conceived ideas about what acts will be booked. He guaranteed local access will continue and agreed to insert language to that effect in the proposed contract.
"I think we'll try to make a business out of what's already there and then grow it," Brand said.
Commissioner Mike Gillman said he's not sure another offer to manage the facility without a financial risk -- beyond the annual fee to Wharton -- will surface.
"That's an offer I don't think we can turn down," he said.
The facility on Front Street went through a multimillion-dollar renovation paid for by a long-running community fundraising campaign. The venue is now available for private rentals as a performance house directed by the City Opera House Heritage Association, the nonprofit that raised money for restoration.
The opera house is entirely funded through donations and venue rental rates, paying both taxes and rent to the city. No city tax dollars go to the opera house and Wharton's fee will be paid from the facility's operational fund, should the deal be approved by city commissioners.
Wharton will take over operations, bookings and financial responsibility for the opera house on July 1, 2010. Wharton and the opera house will split any earned profits, with the downstate organization taking a 25-percent cut, according to contract details.
City Manager R. Ben Bifoss will work out local access issues in the proposed contract and will bring the matter back before commissioners, perhaps as early as next month.
