Beacon Journal

By Carol Biliczky

Posted August 16th 2010

University of Akron committee searching for ideas to keep performing arts center afloat as revenue falls, subsidies rise!

In just eight performances of the rock musical Aida in 2003, E.J. Thomas Hall lost a blistering $335,000.

Since then, things have gotten worse.

Now a University of Akron committee is seeking ways to shore up revenue and pare expenses to keep the costly facility afloat as officials worry that subsidies from the state will become increasingly lean.

E.J. Thomas Hall was a smash hit when it was unveiled in 1973 at a cost of $13.7 million. The cavernous structure with outside fountain and underground parking was only the second performance hall in the country to have movable sound reflection panels in the ceiling.

But New York Times critic Ada Huxtable predicted on Oct. 21, 1973, that the ”spectacularly beautiful” hall would ”be no stranger to the economic problems that haunt the performing arts,” and she was right.

”E.J. Thomas is a revenue loser but a community pleaser and that’s why it’s important,” said Scott Borgemenke, UA’s acting chief financial officer. ”They are facing challenges.”

The hall originally catered to culture-conscious adults because the university was primarily a commuter college and students didn’t linger around campus.

Many community attractions — among them, the Tuesday Musical Club and the Akron Symphony Orchestra — signed on as tenants and continue to call E.J. home.

But the hall never broke even, and the entertainment industry has become even more challenging in recent years.

Fewer shows are touring because of the high cost of production, ticket prices can be steep and recession-weary patrons are less likely to shell out big bucks to see a ballet or opera.

As E.J.’s revenue plummeted and subsidies rose, then-UA Provost Beth Strobel Please see E.J., A10

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lobbed a warning shot over the performing hall’s bow three years ago that Executive Director Dan Dahl remembers vividly.

”She said I should be concerned if E.J. was not contributing to enrollment growth or student retention,” two key missions of the university, Dahl said.

He said he took that to heart and accelerated student programming, while wondering, ”How are we going to serve the community in this new reality?”

What next?

Dahl assembled an assessment team of UA staffers in April to answer that question and make recommendations to the UA board of trustees this fall.

The team has considered a range of possibilities, from closing the hall to fulfilling Dahl’s dream of building a $5 million addition with small club and catering kitchen so banquet food doesn’t have to be prepared elsewhere and ferried in warmers to the hall.

Perhaps not surprisingly, the assessment team picked a ”middle road,” Dahl said in a written update July 13: ”We are now determining what we deem the appropriate funding level is within the context of the institution’s current environment.”

Borgemenke, the university’s financial chief, suggested that officials might want to hold more classes and other events in E.J. so that it is better incorporated into the university community. He said he did not know what other options might be available.

Revenue shrinks

But this much is clear: E.J. requires ever-larger yearly investments from the university as the hall’s revenue has shrunk, according to numbers supplied by Borgemenke.

The university’s contributions to E.J. have risen from $800,000 a year in 2003-04 to $1.9 million in 2009-10.

At the same time, the hall is almost 40 years old and needs some tender loving care. About $2.3 million in projects — to fix leaks, add exit lights, replace lobby wall finishes and more — is under way. But Dahl says the hall needs $8 million more for carpeting, roofing, heating and air-conditioning and other projects for which he doesn’t have funding.

Dahl is looking into the possibility of historic state or federal tax credits to fund some repairs. He is confident that the massive E.J. could qualify as an historic building because of the way it’s used and its role in the community.

He has also considered afundraising campaign, but that does not seem likely, as donors usually don’t get enthusiastic about repairing concrete and roofs.

The university’s Development Foundation has money in its coffers, but Dahl said he doesn’t have the authority to divert those funds to support E.J.

While UA could chose to close E.J., knocking down the facility would cost $3 million to $4 million, Dahl said.

Borgemenke said he was unsure whether there was a market if the university even wanted to sell it and has heard no scuttlebutt that it does.

Greater caution

For the last several years, Dahl has been trying to steer a more conservative course running the hall.

He deep-sixed the industry formula of assuming all the financial risk for a play or concert, as the university did when it lost its shirt over Disney’s Aida and made a pitiful $664 with the Broadway musical Cats.

Today, UA pays a set amount to bring in a production, such as the Broadway musical series. If the event makes money, the outside producer makes the money. If the event loses money, the producer takes the hit and UA is protected while still offering name shows like A Chorus Line in October and Disney’s Beauty and the Beast next May.

Starting in 2006, the university also has tried to appeal to student tastes via the advice of a student programming board.

That has led to a wide variety of new events flavored for students — Halloween and Mardi Gras parties; Rock the Roo lunchtime pop, rock and salsa concerts on the E.J. Thomas Plaza; and a Week of Welcome events that include concerts and speakers.

”We have a combination of many new events and collaborative new events (with other UA departments ) that are morphing much bigger than one department could do on its own,” Dahl said by e-mail.

In 2008, E.J. converted its stage and backstage into the Stage Door, a smaller club seating 250 to 600 that offers special events targeted to students. This year’s free Roo Talk lecture series features speakers on trafficking and slavery, drunk driving, relationships, even ghost hunting, for example.

Most of Stage Door’s student-oriented events are free and events for the community charge modest prices of no more than $20, so these shows do not generate lots of revenue. Last year, Stage Door events brought in $192,000, down from $220,000 the year before.

Still, Dahl is confident E.J. will find a new identity and remain part of the university community. But being in the throes of change is a challenge. ”This business used to be a lot more fun,” he said.

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Carol Biliczky can be reached at 330-996-3729 or cbiliczky@thebeaconjournal.com.