110 acts per year advised

Deirdre Newman

Enclosing the Pacific Amphitheatre and holding 110 events each year

would be the most profitable option, bringing in about $28 million

per year, according to a study released Thursday.

The fair board on Thursday received a market and financial

feasibility study for the Pacific Amphitheatre that will be one of

the pieces used to decide how the venue will be operated in the

future and how often it will be used.

Fair management commissioned the study by independent consultants

to provide information about the general Southern California concert

market and the specific Orange County market, Fair Manager Becky

Bailey-Findley said. The board and fair staff will work together to

develop a business plan, operating plan and program plan for the

amphitheater for 2004, Bailey-Findley said.

The consultants studied four usage options and three management

choices. The ultimate decision will be driven by the mission of the

fair, which includes preserving the agricultural history of the

county and giving back to the community, fair board member Reuben

Smith said.

“We need to take it slow, and let’s make sure that we open it and

use it in a way that’s friendly and neighborly so that the

surrounding neighbors embrace it and don’t feel they have to suffer

from the fact it’s there,” Smith said.

The Pacific Amphitheatre roared to life this summer after lawsuits

over noise silenced it for the past eight years.

The study, by JB Research Company, found Pacific Amphitheatre

could draw on an underserved market that includes areas of Riverside,

San Bernardino and North San Diego counties.

The four options the study analyzed are: only staging 21 concerts

during the fair, as occurred this summer; stage 21 events during the

fair and rent the venue the rest of the year; stage 21 events during

the fair and 29 others from June through September; or stage 21

events during the fair and offer a total of 110 events annually in an

enclosed amphitheater.

It also examined three types of management: the fair being

responsible for operations, maintenance, staffing and programming;

hiring a third party; or using a combination of both.

The study found that the option of only staging 21 concerts during

the fair is not financially viable and did not recommend it for the

future.

The study projects that keeping the amphitheater outdoor-only and

hosting 50 events a year would result in gross revenue of about $13

million a year if $8 million is spent on renovations and upgrades,

including a roof being installed over the seating area. If the venue

is enclosed, at an estimated cost of $20 million, it would result in

about $28 million in gross revenue per year.

The enclosed option meshes more with industry trends and is

preferred by many of the top promoters in the industry, the study

said. The Pacific Amphitheatre will also differentiate itself from

the nearby Verizon Amphitheater, which is open-air and therefore,

would only compete with Verizon during the summer season.

Rhonda Heintz, who lives on nearby Francis Lane, suggested the

fair put a retractable lid on the amphitheater so it can be open-air

during warm weather and closed during inclement weather.

“Then we can enjoy it year-round, rain or shine,” Heintz said.

“Then we can have more concerts.”

The study cautioned the fair board about operating the venue alone

in a full season of 50 to 110 events.

But Smith said he personally believes retaining sole control is

best in the short-term.

“I think it would be a mistake to get this out to a third party

until we know how it can be used,” Smith said. “To the degree we

control it, we’ll have a better opportunity to make sure it serves

the community interest.”

* DEIRDRE NEWMAN covers Costa Mesa and may be reached at (949)

574-4221 or by e-mail at deirdre.newman@latimes.com.