An ordinance to enact a surcharge to tickets for the Leach Amphitheater was introduced again to the Oshkosh Common Council last night.
Council member Paul Esslinger sponsored the resolution that would add a $1 facility charge to events with an admission of $5 or greater. The measure would take effect in 2007, aiming to compensate for future budget cuts.
“It is absolutely needed,” Esslinger said. The taxpayers of Oshkosh are currently paying $20,000 dollars a month to have the amphitheatre operated and I do not see why they shouldn’t be compensated for that. I don’t think adding a dollar to a ticket is going to bankrupt anyone and I do not think it is going to deter anyone from coming to the amphitheatre.”
Esslinger said that many of the people who use the amphitheatre are from outside of Oshkosh and they can cover the principle and interest payments for the amphitheatre.
All proceeds from the charge will be first used only for payment of current and future debts for amphitheater improvements. Excess funds will be used for non-routine maintenance, upgrades and repairs, including renovating restroom facilities or concession buildings.
The ordinance also requires companies who charge an admission fee to consent to an inspection of their financial records to verify the accuracy of payments under the surcharge agreement. The city will retain the right to conduct an independent audit at its own cost, and if an underpayment is found, the entertainment entity must reimburse the city.
David C. Leach II, whose family foundation donated several million dollars to the amphitheatre, opposes the facility charge. In a letter Leach wrote to City Manager Richard Wollangk, he said, “This important downtown attraction does not need to impede possible users due to fees.”
“This site is bringing people from other (cities) to our downtown,” Leach wrote. “When they are downtown, they are eating at our restaurants, drinking at our taverns, and shopping at our stores. Let us see what revenue will come in after the site is being utilized 25 to 30 times per year before we start putting fees on it.”
"I feel that this surcharge is inappropriate at this point in time," Leach said. "Perhaps down the road, this may be an option. Esslinger needs to seek out other sources that would generate funds. I feel that we need to build a solid base of paying customers before tacking on an additional charge."
The ordinance was proposed in 2005 when the amphitheatre opened, but the council dismissed it.
“At that time it seemed that things like this would probably be 10 or 20 years off,” council member Shirley Mattox said. “Since the Leach was just getting started, most of us voted to forgo any kind of surcharge. Now that we’re going through the budget problems, (Esslinger) is probably looking at every avenue to find money.”
Mattox, who agreed with the ordinance last year, said the city doesn’t currently have enough information on the impact of a surcharge.
“If and when attendance increases then it might be a better time to talk about a surcharge,” she said.
Thursday evenings during the amphitheater event Waterfest, attendees get a discount if they come before 7 p.m. Waterfest promoters found that a majority of people came around 6 p.m., according to Mattox.
“Considering probably the average person that’s coming, that surcharge may hold back those numbers,”� Mattox said. “And I think at this point we want to increase attendance.”
Council member Burk Tower doesn’t know how he will vote on this ordinance yet, but says he would prefer the charge to be smaller for lower-priced tickets.
He added: “I prefer that the money would go into maintenance and doing things on the theater itself instead of debt payments.”
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