Merriweather Post Pavilion

Citizen Advisory Panel on Merriweather Post Pavilion Final Report Introduction On August 12, 2004, County Executive Jim Robey signed Executive Order No. 2004-03 (attached as Appendix 1), which appointed 16 leaders of the business and arts communities in Howard County to serve on the Merriweather Citizens Advisory Panel (the Panel). He asked the Panel to advise him on whether Howard County (the County) should purchase Merriweather Post Pavilion from The Rouse Company (now General Growth Properties (GGP)), which had announced that Merriweather was for sale provided that the purchaser agrees to meet certain provisions. He asked the Panel to answer five questions: 1. Is there a public service purpose for Howard County to purchase Merriweather Post Pavilion? 2. If there is a public service purpose for the County to purchase Merriweather, what should be the primary purpose of the facility (e.g., a concert venue, an all-purpose arts facility, etc.), what other activities should be permitted and what organizations should have access? 3. Does Merriweather need to be renovated, and if so what type and scope of renovation would be necessary for it to most successfully and effectively achieve the determined primary purpose? 4. What type of management and control structure should be put into place for the operation of this facility? 5. What level of public oversight should exist? In addition, the County solicited proposals for consultant services for a “Feasibility study associated with the possible purchase and renovation of Merriweather Post Pavilion.” The County received five proposals it deemed to be acceptable. Following interviews with the firms that submitted those proposals, the County hired the team of Ziger/Snead LLP Architects, Webb Management Services, Inc. and Theatre Consultants Collaborative LLC (the Ziger/Snead team) to perform the following tasks: 1) Conduct an industry review; 2) Perform a review of the current operations at Merriweather; 3) Review the physical condition of the venue; 4) Determine whether there are any unmet facility needs in the Howard County arts community; and 5) Prepare a business plan for Merriweather. 1 Rouse’s (General Growth Properties) Conditions Representatives of Rouse (GGP) indicated in mid 2004 to County Executive Robey that they would consider selling Merriweather to the County, provided certain conditions were met. These conditions included: 1. Venue – Merriweather would need to be converted into an indoor venue. 2. Price – a purchase price was given, but was not disclosed for public dissemination. 3. Timing – a decision would need to be given to GGP before the end of 2004. 4. Parking – the “Crescent” property (an undeveloped parcel of approximately 51 acres located south and west of the Merriweather property) would not be available for concert parking in the future. 5. Access – once the Crescent property was developed, GGP would ensure that new easements were established to permit continued access to the Merriweather property. 2 Executive Summary Following its appointment, the Panel met six times between August of 2004 and February of 2005. At the October meeting, the Panel provided an opportunity for the public to speak, and almost all who testified urged the Panel to keep Merriweather as an outdoor concert venue. The Panel heard two presentations from the Ziger/Snead team, who advised that: 1. Based upon the 2004 season results reported by the current operator, I.M.P., Merriweather is profitable and is expected to remain profitable in the future. 2. Merriweather should not be converted into a smaller, enclosed venue because there would be too much competition from similar venues in the region and because the Ziger/Snead team’s survey of demand in the region does not indicate a market for such a facility. 3. The County should put a long-term operator in place in order to provide operational, financial and management stability. A number of such public/private partnerships already exist in other parts of the country. 4. The venue needs to be renovated in order to remain functional. These renovations are estimated to cost $19.5 million, could be constructed in phases over a five-year period, and probably could be financed by Merriweather’s projected rental income and operating profits. 5. The renovations will help to substantially increase the facility’s profits beginning with completion of the second phase of renovations. From discussions at these meetings, the Panel came to envision Merriweather as the key component in the County’s long-term ability to meet future requirements of the arts community in Howard County. It anticipates that a series of smaller enclosed venues could be constructed, and potentially privately financed, on the eastern portion of the property. These facilities would not deter from the overall open-air operating capability, but would position Merriweather as a center for the arts, education and culture on a very diverse operating platform. It would be an important cultural force with a regional impact. Also, the importance of the physical improvements recommended by the Ziger/Snead team should be emphasized, because they would preserve the ambiance of Merriweather, enhance its long-term functionality, and help keep it economically viable. However, The Panel does not recommend that the County accept GGP’s condition that the operating venue be an enclosed, smaller facility because the regional competition for an enclosed facility would be significant and Merriweather would not be sustainable financially. For that reason the County should proceed with negotiations with GGP only if the company is willing to accept the current open-air venue at its current size. While the current maximum capacity of Merriweather is approximately 19,000, this capacity is seldom utilized. The average attendance, on a successful basis, would be approximately 10,000. However, the ability to provide larger capacity in a unique open-air operating venue is a critical factor in the ongoing future competitive success of Merriweather. In accordance with the Ziger/Snead team’s recommendations, the facility needs to be renovated in order to remain functional. The Ziger/Snead team estimates that the renovations would cost $19.5 million. While this amount is substantially less than building a new building, it does concern the Panel that the County, in purchasing the property, would be committing itself to 3 this significant financial burden. The Panel believes that the majority of this expense may be covered/financed through entering into a long-term contract with an operator; however, the amount that the operator can afford would not be formalized until such time as the contracts were bid out. A major concern of the Panel is the expected loss of approximately 4,600 on-site parking spaces when GGP develops the adjacent “Crescent” property on which most of that parking is located. The panel recommends that the County replace those spaces by formalizing the use of existing spaces at the GGP office buildings along the north side of Little Patuxent Parkway and the southern portion of the Mall parking near Merriweather; by constructing a parking garage on nearby property owned by the Columbia Association; or by constructing a parking garage jointly with GGP at the Columbia Mall. Another possible solution could be presented if the Crescent parcel is developed as a mixed-use project such that up to 2,000 vehicles could be accommodated for evening events as part of the eventual build-out of the property. The Panel believes that the increased activity that would come from a mixed use on the Crescent property would help the vitality of the area and of Merriweather. Failure to formalize the available parking agreement with GGP would jeopardize the County’s ability to lease out Merriweather to an operator and would severely limit the long-term viability. Without solving the parking capacity issue, the County should not proceed with the purchase of Merriweather. The Panel believes that Merriweather Post Pavilion plays a vital role in the community, that this role should continue, and that in the future the venue’s community role could be expanded through the addition of small arts venues on the existing property. These venues would help meet future requirements of the arts community in Howard County by positioning Merriweather as a center for the arts, education and culture and making it an important regional and cultural force. Information provided by the Ziger/Snead team indicates that Merriweather is profitable, that needed renovations to the facility will increase profitability, and that this increased profitability combined with the rent paid by the operator should be sufficient to pay those costs. The Panel recommends that the County consider purchasing Merriweather, but only if it can make suitable arrangements for parking and only if the venue would not constitute a financial burden on the County. Finally, the Panel wants to point out that there is more than one solution to the goal of retaining Merriweather as an important part of the community. County acquisition of the facility is one method, but other possible methods include a public/private partnership in which the County would purchase Merriweather jointly with a private entity, acquisition by a private entity, or even the retention of ownership by GGP. These last two possibilities should be accompanied by an appropriate commitment that eliminates the possibility of Merriweather closing in the future. Regardless of the method used, the Panel feels that it is important to ensure that Merriweather remains an important part of Columbia and Howard County. 4 Panel Process The Panel held 6 meetings between August of 2004 and February of 2005, including an October 20 session in Ellicott City where members of the public were invited to address the panel. The Panel began its work on August 31 by hearing from a representative of Merriweather’s current owner, The Rouse Company (now General Growth Properties), who provided the conditions of sale previously outlined above.

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