SPAC Spat

Kenneth Ivins, commissioner of finance in Saratoga Springs, N.Y., recently saw elevated opposition to his proposal to tack $2 on to tickets to Live Nation concerts at the Saratoga Performing Arts Center.

Ivins faced resistance from SPAC and Live Nation officials, who told councilors during a meeting that if passed, the surcharge would mean the city could see fewer shows and subsequently, less ancillary income from those events, the Saratogian reported.

Live Nation Sr. VP John Huff explained the proposal could affect the acts that choose to play the venue.

“This will affect attendance, and we could lose some shows,” he said.

But the way Ivins sees it, the city’s flagging fund could use a boost and the proposed surcharge would help Saratoga Springs pay for some of the services the city provides in support of the shows.

“The city incurs a lot of expenses whenever concerts come to town, with traffic, police and more,” Ivins told the Times Union last month. “It’s a way to recoup some of those costs.”

SPAC executive director Marcia White disagreed with Ivins’ assertion.

White told Pollstar that maintenance and security services for the state-owned venue are covered by the state and Live Nation – not the city.

On top of that, White said that while the SPAC’s classical arts program generates roughly $30 million in ancillary revenues for the city, Live Nation concerts generate double that in the community and offset any expenses.

“Long run, a proposal like this will decrease the amount of revenue coming into your city through cultural tourism,” she said.

Ivins’ proposal faces legal scrutiny from the state comptroller’s office, and would require the approval of the city council and state legislators. If passed, the surcharge could reportedly generate about $400,000 in revenue annually.

White, who plans to continue making the venue’s case to state officials, the bureau of tourism and chamber of commerce, doubts the proposal will get that far.

“I feel right now the state legislature would not support putting an onerous tax on the public when they can least afford it,” she said.