In Oregon, Pricey But Worth It

EUGENE, Ore. -- The Hult Center for the Performing Arts remains a community treasure despite ongoing financial concerns during its 25-year history.

Ed Ragozzino, a former drama teacher and community theater director who helped raise money for the striking six-story building, didn't hesitate when asked whether it was worth the considerable effort and expense. He called the arts center "a mark of a grown-up city."

"A city needs to take care of emotional needs as well as physical needs," he said.

Like Modesto's new Gallo Center for the Arts, the Hult center is downtown. Situated less than two miles from the University of Oregon but unrelated to the college, the Eugene venue has three theaters plus a gallery and serves as home for eight resident companies.

It sells about 150,0000 to 175,000 tickets a year and is home to high school graduations, parties and other events.

"It is definitely the community living room," said Laura Niles, the city's interim cultural services director.

As with the Modesto center, which is opening $14 million in debt, the Hult center needed to take out bonds to complete construction. The Hult finally retired its $18.5 million in bonds 16 years after it opened, celebrating with a public "bond burning" party.

While the center began like Gallo as a major presenter, staging 30 to 50 shows a season, it switched several years ago to serving primarily as a rental facility. This means that outside promoters, rather than the arts center, book and pay for the majority of the acts.

Of the 400 to 500 events held every year at the Hult, only a small portion are sponsored by the arts center.

"We only present and take a risk on about 12 shows a year now, and those are eclectic things that are important to do," operations manager Mark Loig-man said.

Gallo presenting more events

By comparison, the Gallo center is presenting about 65 of the 105 events scheduled in its first season. It is renting its theaters to its four resident companies and is willing to rent it to anyone else able to afford its fees. Like the Hult, the Gallo is available for parties, corporate events and other private functions.

In an interview with The Register-Guard newspaper a couple of years ago, Eugene's former cultural services director, Robb Hankins, said the Hult center took a major financial blow in 1998 when it lost $800,000 after a property tax measure passed.

At one point, there was discussion of mothballing the facility, but it was decided that it would be more costly for the city to keep it inactive than active, Niles added.

The center operates on a $4 million budget, with $1.5 million coming from the hotel-motel room tax revenues and the general fund. The rest comes from tickets, fees and rentals.

The Hult has been in the red for years because costs have risen faster than revenues, particularly in regard to employee salaries, Niles said. The center is required to have a minimum of two months' operating expenses in reserve but is below that now, Niles said.

Interestingly, the center might be the only performing arts venue in the country prohibited from fund-raising. The city made the arrangement years ago out of deference to local performing groups worried about competition for funds. Recently, the city decided to look into establishing a private-public trust to secure its future.

Lisa Lawton, community relations director for the Convention and Visitors Association of Lane County, said the center is a huge draw for visitors. One of the top 10 items requested of her organization is information about arts events, entertainment and festivals.