From a billboard perch along Interstate 57, a larger-than-life picture of Country Club Hills Mayor Dwight Welch invites passersby to visit his town’s theater — one he advertises as the “No. 1 R&B venue in Chicagoland.”
But the Country Club Hills Theater, which has become one of Welch’s pet projects, has cost his town and its taxpayers millions since its first major concert season in 2007, a SouthtownStar analysis of financial records shows. And some of the stars who perform at the theater have contributed to its financial woes by demanding costly perks while failing to draw the size crowds the city had counted on, records show.
“The city is not in the entertainment business,” city treasurer Rhonda Williams said. “The amphitheater was too big for the city to handle.”
Welch is proud of the theater, claiming it helps local businesses by luring thousands of people and well-known artists to his city each summer weekend. Its acts have ranged from Kenny Rogers to Morris Day and the Time, and this year’s scheduled slate includes Erykah Badu and Keith Sweat.
But, according to financial records the SouthtownStar obtained through a Freedom of Information Act request, the city has lost $6.6 million on the theater since its first major concert season in 2007. The theater suffered the bulk of its losses — $4.9 million — during its first two years of operation, records show.
Acts scheduled at the theater over the years have fallen short of their ticket goals by more than
$1 million combined. Not only has the city paid for the artists’ performances, but it has picked up the tab for their food, limousines and, in some cases, hotel bills and airline tickets.
The theater, which has about 2,500 seats, cost about $7 million to build. It is located on the city campus right next to city hall, at 183rd Street and Main Street.
The theater’s losses have become a source of political contention in recent months, as Welch has lost his grip on the city council. In June, the city council threatened to close the venue due to its financial losses but later backed down.
Records show the theater has lost money in several categories, from maintenance to performers. Musicians have cost the theater $165,000 more than expected, according to the reports. The city also spent about $1.2 million more than budgeted for “other professional services,” and $545,000 on maintenance, the statements show.
The theater started out with a yearly schedule that included 24 acts, but theater managers have since reduced that number to 12 each summer. Still, it has continued to lose money since it scaled back its annual acts — losing $1.5 million since making the change.
Despite the improvement, city officials such as Williams, say they’re dubious the theater can become profitable.
“The bottom line is we’re asking residents to pick up a bill of $500,000 or $600,000 every year,” Williams, the treasurer, said. “We’re asking residents to pick up the tab year after year and that’s not good.”
Interviewed at his city hall office, Welch disputed the losses tallied anywhere near $6.6 million.
“It’s a public amenity,” Welch said. “It’s like the (Buckingham) fountain in Chicago. How much money do you think they make with the fountain in Chicago?”
Welch claimed costs stemming from the farmers market, the city’s back-to-school parade, a Halloween event, senior activities and fireworks are hidden in the theater’s expenditures. These costs total anywhere between $400,000 and $500,000 a year, Welch said. The theater hosted the events so they were billed to its account.
But according to the city’s budget, these activities are funded through the city’s public relations account and cost less than $56,000 per year.
“I don’t have the exact figures so I’m operating from a position of ‘I don’t know,’ ” Welch said, when told about the budget figures.
He noted that the city’s finance director was laid off in June.
Welch also said the extra costs incurred for performances were due to artists’ requests for food, hotels, airline tickets, transportation and other demands listed in what are called “artist riders.” These are not included in contracts the city council approves each year. Theater management negotiates these demands with the performer’s management weeks after the initial contracts are approved.
The city paid for artists’ airfare and hotel accommodations for the first two years of the theater’s existence, Welch said. The added expense of such charges led the city council to end the practice.
While the theater is over budget, ticket sales haven’t helped bolster its finances. Overall ticket sales since 2007 have fallen $1.3 million short of expectations.
Welch blamed part of the sagging sales on early country western acts that “flopped” during the theater’s inaugural run.
“It was a learning process,” he said. “We tried all acts, country-western to soul to gospel to the blues. The blues gave me the blues because they kept losing money.”
The city lost $2.6 million in 2007 and $2.2 million in 2008. The next year, the city lost $822,000 and last year lost $656,000, records show.
Ald. Vincent Lockett (2nd), one of Welch’s chief political opponents, blamed the theater’s losses on mismanagement.
“The venue is not big enough and you must negotiate your acts and you must bring in the right acts and the right price,” said Lockett, whom Welch defeated in April’s mayoral election. “It’s mismanaged. That’s the bottom line.”
Lockett pointed to several factors contributing to the theater’s money woes — from the mayor’s allotment of complimentary seats to the price of the musicians managers book there.
Lockett said the city should hire a private company to run the venue and open it to different activities from boxing bouts to episodes of The Judge Mathis Show. Lockett also said he would stop giving away free tickets.
Welch receives between 10 to 50 complimentary tickets to each show, which he gives to people including Louis Farrakhan to R&B performer R. Kelly, the mayor said.
“Every theater in North America does that stuff,” Welch said. “If you have a celebrity or VIP come in, that’s what you do.”
Nonprofit organizations, including the Matt Welch Foundation, PADS and the United College Negro Fund also receive complimentary tickets.
Welch referred to the free tickets as “promotional seats.” He said he has never sat in those seats, nor have his dates.
Aldermen also each receive 10 tickets — two chair seats and eight lawn seats.
Welch said the theater’s financial hopes rest on corporate sponsorships, claiming a company would have to donate $500,000 to the theater every year for it to turn a profit.
“A major sponsor makes the theater golden,” Welch said.
