Revised Leach Group Article

A controversial ordinance to enact a surcharge to tickets for the Leach Amphitheater will be decided with a vote during the Common Council meeting on Nov. 14.

Council member Paul Esslinger sponsored the resolution that would add a $1 facility charge to events with an admission of $5 or greater. However, David C. Leach II, whose family foundation donated several million dollars and continues to contribute money to the theatre, oppose the measure that 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 a month to have the amphitheater 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 amphitheater.”

Esslinger said that many of the people who use the amphitheater are from outside of Oshkosh and they can cover the principle and interest payments for the amphitheater. He does not see much opposition coming from anybody.

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.”

Leach was contacted and said: “I feel that this surcharge is inappropriate at this point in time. 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.”

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.

Council member Dennis McHugh said the audit is necessary and won’t scare away future entities.

McHugh, who said he will probably vote for the ordinance, said the surcharge is reasonable because the city never intended for tax payers to pay for the amphitheater.

“I think maybe it (the ordinance) will perhaps lessen the burden on tax payers in other areas such as instituting new fees,” McHugh said.

“Fees go up every year people are sick and tired of it.” McHugh said. “One of the reasons we have fees is because we have high maintenance costs in our parks and Leach Amphitheater is one of them. It makes sense to me that the people that use it should contribute.”

The ordinance was proposed in 2005 when the amphitheater opened, but the council dismissed it.

Council member Shirley Mattox, who agreed with the ordinance last year, said the city doesn’t currently have enough information on the impact of a surcharge.

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.

“I prefer that the money would go into maintenance and doing things on the theater itself instead of debt payments,” Tower said.