Denver Rebate Program Pays

The city’s Commercial Concert Event Commission Program has paid out that amount since its 2007 inception.

The program rebates a portion of rent from city-owned venues, including Red Rocks Amphithea, if they meet certain targets, according to the Denver Post.

Both AEG Live Rocky Mountains and Live Nation Entertainment promote at Red Rocks, which saw flat business during the first four years of the program, according to records requested by the Post.

But AEG bookings – which have increased while Live Nation has booked fewer shows – have spiked over the last two years with the improved economy and a tweaking of the incentive formula. Incentive plans are not that unusual.

But because Denver’s is run by a public agency, otherwise confidential records must be public.

Kent Rice, executive director of the city’s Arts & Venues department, told the paper that the program has been successful in helping promoters bring more shows to the venues, and thus more revenue for city coffers.

“People may not believe it. They may think it’s easy to get people to play at Red Rocks, but it does take a little bit of work,” Rice told the Post. “I think the program we have with the promoters is mutually beneficial for the city, the promoters, the fans and the musicians that perform there.”

Denver offers promoters rebates of between 40 percent and 60 percent of their rents.

The more shows produced, the bigger the rebate. Participating promoters must enter contracts each year approved by the Denver City Council and the mayor’s office.

The rebate can be substantial. Between 2007 and 2013, the paper reports, AEG Live paid $8.4 million in rentals at Red Rocks and received about $4 million in rebates.

At the same time, the city brought in $38.4 million in fees from rent, food and beverage, parking and admissions taxes from AEG-promoted events.

The commission program is also in effect at Denver Coliseum and Denver Center for the Performing Arts, but most rebates to AEG Live and Live Nation involve Red Rocks. The historic hillside amphitheatre faces stiff competition in the region from non-city-owned venues like the Pepsi Center, FirstBank Center, Dick’s Sporting Goods Park, Sports Authority Field at Mile High, and Fiddler’s Green Amphitheatre.