Revamped theater to bring big shows to Baltimore

Daily Record, The (Baltimore), Jun 13, 2002 by Ezra Fieser

When "The Producers" hits the road, Baltimore arts promoters expect to land the show -- one of Broadway's most popular and the winner of a record 12 Tony Awards -- before Washington.

Big shows have usually avoided Baltimore because its theaters are too small to stage the big shows, while Washington is home to four Broadway-sized theaters. But Baltimore may beat its neighbor by building a bigger theater and making one of the show's stakeholders, Clear Channel Entertainment, a partner.

In a plan unveiled yesterday to the city Board of Estimates, Clear Channel will pay $8 million toward construction costs of the Hippodrome, which will reopen in January 2004 as a 2,250-seat regional venue.

Clear Channel, which bills itself as the world's leading promoter of live entertainment, will also operate the theater over a 20-year period. It will not pay rent or taxes, and will reap 90 percent of the profits until 2024. The Texas-based subsidiary of Clear Channel Communications Inc. has also agreed to cover any losses the venue may incur during that time.

"We're inoculated against any losses ... but we're cut into the profits," Mayor Martin O'Malley said.

Ten percent of the profits will go to Baltimore Center for the Performing Arts Inc. (BCPA), a nonprofit pledged to promoting arts in Baltimore.

"The real story here is that we started this deal with Jujamcyn [Theatres Corp.] and ended up with Clear Channel," Mark Sissman, president and chief executive of BCPA, said. "This is big stuff ... we expect to get 'The Producers' before Washington."

Under the payment in lieu of taxes approved by the Board of Estimates yesterday, Clear Channel will pay the city $1 per year over 20 years. Property taxes would have cost about $15 million for that period.

Clear Channel will control day-to-day operations of the theatre, including scheduling performances.

"Now instead of getting a show for one week, we can have a six- week run," Sissman said.

Clear Channel operates 14 other theatrical facilities in the United States. It is promoting dozens of major theatrical performances and hundreds of other performance acts around the country.

Meanwhile, the second part of transforming Baltimore into a major market for performing arts is 15 percent complete. Construction on the Hippodrome on North Eutaw Street is expected to conclude by January 2004, said Richard W. Slosson, executive director of the Maryland Stadium Authority.

When complete, the 2,250-seat theater will be flanked by a reception building to the north and a new box office to the south.

The Morris A. Mechanic Theatre, by contrast, seats 1,600. Although it does attract many popular performances, the facility is not large enough for the biggest traveling shows.

The facility failed to land "The Lion King," for instance, due to its size. One problem is the structure cannot physically accommodate some of the stage equipment needed for the productions, Sissman said.

There is some question as to whether the Mechanic can attract enough business to survive after the Hippodrome Theatre opens. During its last season, the Mechanic sold 90 percent of tickets but only broke even, Sissman said.

However, two or more theaters have survived, and thrived, in other cities. Washington, for example, has four such venues. The National Theatre, which seats 1,676; John F. Kennedy Center for the Performing Arts' Opera House (2,200 seats) and Eisenhower Theatre (1,100 seats); and the Warner Theatre (1,847 seats) all regularly host Broadway- level productions.

But the Mechanic may need substantial infrastructure improvements if it is to survive, Sissman said.

The $63 million renovation of the Hippodrome has been funded by a public-private partnership, including $33.9 million from the state, $6 million from the city, $8 million from Clear Channel and $14 million from the Bank of America.

The bank contributed roughly $9 million that will be returned in 2004 in the form of historic tax credits. About $1 million more comes via private donations. The University of Maryland donated the property.