PREVIOUS COVERAGE: Rose vs. Fraze
Kettering officials say the 26-year-old Fraze will soon face even more competition as a new outdoor stage, called the Levitt Pavilion, is slated to open next summer in downtown Dayton.
“Obviously there’s more competition now,” said Steve Bergstresser, Kettering assistant city manager. “We’re not going to hide the fact that there’s competition from the Rose. There’s upcoming competition from the Levitt.”
“What we want to do is position the Fraze so that it’s successful moving forward and continues to be the asset that not only Kettering, but the greater Dayton region comes to enjoy,” he said.
Losing Money
Both Fraze and Rose are comparable in size — Rose seats 4,200, Fraze has a capacity of 4,300 — and are about 15 miles apart. Rose is fully covered and primarily is fixed seating. Parking is included in the ticket price, delivering revenue in excess of $300,000 this season.
Fraze, an open-air amphitheater, has just under 2,000 fixed seats, a lawn area that holds 1,350 and bleachers that seat 1,000. Parking is limited, but free. In addition to national acts, Fraze offers several free and low-ticket price events throughout the season.
The new Levitt Pavilion is expected to bring similar free acts to downtown Dayton, while Rose has already booked a number of concerts that have traditionally drawn crowds to the Fraze, such as ’70s and ’80s acts.
WATCH: 7 things you should know about Fraze Pavilion
Fraze first turned a profit — $39,000 — in 2005 after 16 years of losses. Fraze essentially broke even the next few years before posting its first sizable profit in 2010, ending the year $251,000 in the black.
Profits crested in 2012 at $660,838. But the ensuing years saw three casinos and racinos open in the region and then Rose’s 2015 debut. Fraze’s profits plummeted.
Fraze’s gross sales dropped from $3.4 million in 2015 to $2.8 million in 2017, mirroring a steep decline in ticket sales. In 2015, more than 99,000 tickets were sold. By the 2017 season, the number fell to just more than 77,000.
The venue lost $312,000 in 2016. It is expected to lose $500,000 this year, which will be absorbed by reserves built during Fraze’s profitable seasons.
The city annually budgets a subsidy for Fraze, though it was last drawn upon in 2006, when Kettering transferred $148,000 to Fraze from the city’s general fund.
Three paths
Kettering officials are exploring three paths forward for the music center, according to city council minutes. The options are to maintain existing operations, turn over partial operations to a third-party, or hand over all operations to a third-party promoter.
City officials are more closely examining the middle path — a partial third-party operation — with two different options. The first option would see an outside company assist Fraze in securing six-to-eight shows per year. The second option would be to enter into a “block booking” agreement with similarly sized regional venues.
Kettering city documents outline the benefits and concerns of moving to a third-party operation. City officials recognize the appeal of a reduced operation cost for Fraze and the assistance the city would receive in booking acts, but fear higher ticket prices and relinquishing control over Fraze’s music selection, community programs and revenue streams.
The city recognizes it may need to pay more to land better national acts.
“We may have to spend more to do that,” Bergstresser said. “Council’s OK with doing that if it’s the right band, or the right group, or the right artist.”
Early success
Third-party management has delivered profitable seasons for Rose. After an initial loss in 2015, the center ended 2016 with just over $600,000. As of Oct. 31, this year’s net income is $1.1 million, a figure that could change with end-of-year expenses.
LOOK BACK: Rose Music Center’s second year finances
Huber Heights City Council approved a 10-year contract with Music and Event Management Inc. in 2014 to manage Rose and provide all marketing, booking and promoting services.
Huber Councilman Mark Campbell said the city’s relationship with MEMI has been worthwhile, and would recommend Kettering officials explore a similar agreement.
“I am ready, and I welcome, anything I can help do for the Rose Music Center and any of our neighbors in the region so we can all be successful,” Campbell said. “A MEMI, or a company like MEMI, that has the skill set and the experience to schedule performers and manage venues is something Kettering should probably look at.”
MEMI — a wholly-owned subsidiary of the Cincinnati Symphony Orchestra — manages Riverbend Music Center, the PNC Pavilion and the Taft Theatre. Rose is modeled after the PNC Pavilion.
MORE: Huber council votes on management contract for $18 million music center
Huber pays MEMI $225,000 annually to manage the center. The city receives the first $150,000 of the annual net profit, with any additional net profit divided between the city (60 percent) and MEMI (40 percent). The expense of the contract is paid using net profits.
“Therefore, the cost of the MEMI contract has not affected any other fund or operation of the city,” said Huber City Manager Rob Schommer.
Staff Writer Lauren Clark contributed reporting.
CONTINUING COVERAGE
The Dayton Daily News broke the news of Huber Height’s Rose Music Center proposal in 2012 and has covered developments at Kettering’s Fraze Pavilion for decades. Your subscription helps the newspaper keep an eye on your tax dollars and hold accountable those trusted with these public assets.
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