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INTERVIEW: RBTL's dramatic pitch

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See a related column by Mary Anna Towler.

When Renaissance Square died in late July, the drama surrounding plans for a performing-arts theater had just begun. Almost immediately, leaders of the Rochester Broadway Theatre League began looking for a new site, and they're now being courted by officials and developers in five suburbs - and by the City of Rochester.

The suburbanites are eager suitors. For at least two of the sites - Anthony Costello's development in Brighton and LakeRidge Centre (formerly known as Medley Centre and, originally, as Irondequoit Mall) - a big theater drawing thousands of people for every show could be a godsend, virtually guaranteeing demand for restaurants and other amenities.

It's by no means certain that RBTL will be able to build a new theater. RBTL is quoting a cost estimate of $40 million to $50 million, and it had raised very little toward construction of the Ren Square theater.

RBTL officials continue to insist that they can raise the money they need, in part through selling naming rights and "inventive bonding." But RBTL will likely need substantial public funding, and some critics have objected to spending any public money on a theater. If RBTL leaders think Rochester can support a new theater, those critics say, let them raise the money privately.

Critics have insisted that RBTL should stay at the architecturally valuable Auditorium Theatre. RBTL leaders insist that to do so will threaten their ability to attract quality touring shows. There's no air conditioning, there are no elevators, backstage space is cramped, and so are the dressing rooms. Parking space is limited and the lobby isn't big enough. The pit band area is so small that last year for "Jersey Boys," many of the musicians had to perform in a basement room under the stage, their music piped into the theater.

A big, particularly controversial issue: RBTL leaders insist that the theater itself is too small. They want a theater with 3,000 seats, and it's impossible to expand the Aud. Critics - some of them researching the size of theaters across the country - say the Aud's 2,400 seats are plenty.

Until mid-November, Mayor Bob Duffy was siding with the critics. RBTL ought to be able to find a way to renovate the Auditorium Theatre and stay put, he said. But after a study commissioned by the city said that renovating the Aud would be too expensive, Duffy jumped into the new-theater site competition and asked RBTL to consider the Midtown site. He added a qualifier, though: if RBTL can raise enough money to build a new home.

The RBTL's site-selection committee will begin reviewing the proposals early next month - it may bring some of the presenters back to answer questions.

Despite Duffy's change of heart about the Aud, critics' skepticism and criticism are likely to continue, particularly if the city wins the site competition. And yet public apathy is one of the things that killed Ren Square. RBTL will need to create enthusiasm and public support if it is to get public and private funding for a new building.

In a recent interview, RBTL board chair Arnold Rothschild and Albert Nocciolino, the producer who books the touring Broadway shows into Rochester, talked about the Auditorium Theatre, funding, and Rochester's position in the competition for shows.

Rothschild has been pushing for a new theater for RBTL for a dozen years, long before Ren Square was conceived. More than anyone, he is the public face of RBTL. Nocciolino has his own company, and he works with RBTL to program, package, and market each season of shows at the Aud. Nocciolino also raises funds for and produces Broadway shows - he won a couple of Tonys and is a Tony voter -so he has those relationships, which help with booking road shows.

"Albert is our competitive advantage," Rothschild says.

The following is an edited version of the interview with Rothschild and Nocciolino.

CITY: What are the limitations of the Auditorium Theatre?

Nocciolino: Let's start with the capacity, which seems to be something everybody's focused on. We don't have to go very far from Rochester to look at what is the norm: Buffalo - 3,000 seats; Schenectady - 2,800 and change; Landmark in Syracuse - 2,900 seats. These are the three theaters in New York State that do full-week engagements or more.

So let's take this theater. You have 500 seats less than the average size here in New York State. The legit week, as we call it, is Tuesday through Sunday: eight performances. If you multiply eight times 400 or 500 - the difference between the other capacities - you're talking about two extra performances in all of those other theaters. We're paying the same price for the show here as we do there. The same number of trucks show up there as show up here. So what does that mean? It means that we don't have the ability to generate the grosses that the other theaters do.

When you're looking at big shows - by big shows, I mean the blockbusters, the shows that come in for multiple-week engagements - normally they go where the grosses are potentially the highest. So, for instance, "Mary Poppins" next season is in Buffalo for three weeks. I won't have "Mary Poppins" here until 18 months later. They're going to play the markets where they can generate the higher grosses. They're spending millions and millions of dollars producing these shows. They want the opportunity to, what we call in our business, "reach overages." After all the expenses are paid, money's left over that can go toward the amortization of the capitalization. It is the business of show business we are in.

Part of the experience that's absent here is coming to the theater just to come to the theater, not necessarily just for the show: embracing the theater. If I take you to Shea's next week in Buffalo, you'll see a lobby that's a city block long. You'll see six restaurants, all full. You can park your car, you can go to a restaurant, you can go to a bar. You can't do that here.

That's part of the experience that you can generate with the proper facility, with the kind of amenities that exist both within the theater and surrounding the theater.

Which is more important: the number of seats or a new theater?

Nocciolino: They go hand in hand. You wouldn't build a new theater today without more seats. It makes no sense to build a new theater where you can't provide the economics necessary to stay competitive in the industry.

Rothschild: The other part of it is, Rochester's a great theater town, better than other towns he's talked about. But absent more capacity, with the cost of staging shows going up, the ticket price would continue to go up disproportionately. And that excludes people that we're trying to include.

Nocciolino: At the moment, my prices are somewhere between $3 to $5 more per ticket here than in Buffalo because I don't have the seats.

Shea's has 600 more seats than the Auditorium. But we had "Jersey Boys" last year and they've got it this year. If we're not as competitive as Buffalo....

Nocciolino: There's a lot of different parts to that. One is geography. One is availability of theater. When you start trying to find a three-week window in one theater versus another, and one is closer to Toronto - sometimes producers have a little more sensitivity to when they want to play Buffalo. They'll play Rochester if a show's in Toronto.

Basically, if you look at a two-year window you'll see the same shows in each market. We both have "Chicago." We both have "Cirque Dreams." We both have "Grease." And "Wicked." This year they've got "In the Heights"; next year we'll have "In the Heights."

Are you sure you can fill 3,000 seats here?

Nocciolino: I'm positive we can. There are two equations. One is they come to the show, the other is they come to the theater and the show. We sold out "Wicked." We sold out "Jersey Boys." They came to the show. When you have "Chicago" and "Spring Awakenings" and those shows, you need the rest of the equation.

Why can't RBTL renovate and expand the Auditorium and get 3,000 seats into it?

Nocciolino: I'm not an architect, I'm not an engineer. I've been told that it's almost impossible, and I know one thing that doesn't work: if adding seats means adding another balcony, you might as well just not do it, because nobody's going to sit up there.

Rothschild: [LeChase Construction's analysis says that] the only way to add that capacity was to raise the roof of this venue 20 feet and build another balcony. There's no way to do it in width, and there's no way to do it in depth. One of the real problems with the lobby is depth.

One of the problems with this venue is that as our core gets older, it's difficult for them to walk to the theater. We have no ramp parking, we have no parking access - especially in the winter. It's very common with big shows that the lobby fills up and we can't let more people in, and they stand outside because we can't seat them because they're still testing the show. And you'll see senior citizens standing outside. There were just some inherent difficulties with an older venue.

The business has changed and people's expectations of what happens when they go out for the evening has changed. That really is underscored with seniors. Walking from behind that Armory is dangerous for them with ice and snow. And we don't control that; we don't control any of the parking.

Nocciolino: There are some realities here, and no differently than any other business, you work with what you have. You try to make the best of it, and we have. This is a Mason's theater; this was not built as a performing arts center. Syracuse and Schenectady were built as performing arts centers. They have the space, they have the lobbies, they have the amenities.

What have we lost say in the past two years, that we're not going to get at all, because of capacity?

Nocciolino: We haven't lost anything. We're getting them later, and with that come the potential risks: that a show's not as hot, or the show's no longer on Broadway. For instance, "In the Heights" is in Buffalo in February. We'll have it here the following year. By the time we get it here, it'll have closed on Broadway. It's still playing on Broadway while it's playing in Buffalo.

Rothschild: You brought "Phantom" here before anyplace else. Almost a third of the tickets were sold outside of the five-county metropolitan area. People came from the Southern Tier, they came from Buffalo, they came from Syracuse. Actually, the Pantages Theater[in Toronto], wasn't even operating at capacity in that period of time because we were taking a lot of the market.

If you waited two extra years, and it went to Buffalo and it went to Syracuse, what would the overall market have been? So you don't necessarily lose the product, you lose the impact. We wouldn't have six weeks and we wouldn't have a third of people coming into the town. What we want to try to be is the first town that someone wants to go to. We don't want to lose product east or west.

Nocciolino: By the way, it's not just theater. I was in Syracuse yesterday morning, Landmark Theatre, 2,900 seats, they have Robin Williams. Buffalo has Robin Williams. He's not playing here. They have 500 to 600 more seats. He's going to go where he can generate - he can pick any city in America.

That's why - it's strictly the capacity?

Nocciolino: Absolutely. It's got nothing to do with me or my business.

Well, we've got Bill Cosby coming.

Nocciolino: Well Cosby, that doesn't cost anywhere near as much as Robin Williams.

This is where we were gentle and careful. The month of December is wonderful here: Mannheim, Jim Brickman, Cosby, Kenny Rogers. But there are certain shows that just will only go where there's capacity.

Some critics say we shouldn't spend public money on something that takes money away from the area. When the RPO plays here, the musicians live here and so the money we pay them stays here. But when a Broadway show leaves, a good part of what people pay for tickets is leaving with it. How do you answer that, because it gets then to the idea of public expenditure for a new theater?

Rothschild: The model you just mentioned, you'd never bring in any entertainment to town. Entertainers don't all live in Rochester. You'd never bring professional baseball to town, because those players don't live here. These are economic engines.

What we bring to the party, and the reason it's a good use of public dollars, is the economic impact. For every $1 in tickets sales, there's about $4 in economic impact in the community. People go out to dinner and they buy clothes because they're going to the theater and they go out for dessert after. When Nocciolino brings a lot of his product in, you can't get into a restaurant until after people have left to go to the theater.

Nocciolino: We will spend, between stagehands, wardrobe, and musicians [during "Chicago"] $80,000 to $90,000, all local people. They [the "Chicago" cast and crew] will use 600 or 700 hotel room nights, and that's a small company. They'll all have breakfast, lunch, and dinner somewhere.

What's going to happen with the Auditorium Theatre?

Rothschild: There's always going to be a place for this theater. In every community that builds a new performing arts center, there's an old theater. And the way it works well is for an entity to be charged with the responsibility of booking both. That way you're constantly focused on things that fit. With the exception of the fact that the building's not air-conditioned, so it eliminates our ability to use it through the summer, I think that when you free up the dates that we currently occupy here with Broadway, there's a ton of other events - less-produced kinds of things that sell 1,500 in capacity - that this will get used for. It's a great 1,500-seat theater, and it relieves the parking issue and the lobby problems.

You'd have to do some renovations and downsize substantially.

Rothschild: There are 1,500 seats on the ground floor. A lot of our problems in the venue deal with the fact that there's no elevator. If you're handicapped, trying to go upstairs... there are no restrooms on the main floor.

The $40 million to $50 million cost you're giving for a new theater is much lower than the estimates for the Ren Square theater. Why?

Rothschild: When you have to demolish and prepare a site in the middle of downtown, construction is decidedly more expensive. When you start getting into excavation, you have no idea what you're going to run into. I think that a lot of that expense that you were hearing specific to that site presupposed a big asbestos problem. There was an unknown in terms of what was underneath the site. Everybody that's come to the table [for a new theater] has come without any site acquisition costs, with all of the infrastructure built out.

The other part of it is you don't need to build the same kind of structure. What you have to do in a downtown has to fit it into the design of whatever is the downtown, where with some standalone structure someplace, you might not build as grand an exterior.

Why does the city have to come forward and propose something? Why can't RBTL say "You know, we really would love to have a piece of, say, the Midtown plot?" Why can't you propose to the city?

Rothschild: We said we're going to open the process to people that wanted the performing arts center. I think we have been really transparent in our process. This was not a stalking horse for the city site. All of these developers have spent a significant amount of money and time to develop plans and we have to be very above-board.

One thing we need to know is that everybody's going to be pulling on the oars to get this done. This can't be one of those "O.K., we give you the site, you raise the money." Everybody's going to have to work collaboratively, which was the downfall of the other project: too many different agenda items.

How are you going to pay for a new theater?

Rothschild: A lot of that depends on where. I can't get into specifics of what we've been told so far, but I can tell you that the developer involvement has been substantial. A lot of the math will be specific to the site. You sell naming rights. You do perhaps some inventive bonding process. It's going to be a mix-and-match kind of thing, depending on the site. When we had the presentation from Finger Lakes, for example, they brought in the economic development folks from the Finger Lakes region who felt they could get New York State tourism dollars and do some other things.

If you build it in the city, where you wouldn't have a big-name developer with a large-scale project, you would have to come up with the money yourself, one way or another. Are you thinking about government funding when the state of New York is in such wonderful shape?

Rothschild: If I read Assemblyman Morelle's quote correctly, he said there would not be any state money unless it was built downtown. So I assume that meant that if we did build downtown, there might be some state money.

I want to come back to the tax credit. The state has created some programs where if, for example, you give $1 million to a project you get $1.5 million in New York State tax credits. So big companies acquire these things to cut down their corporate liability. The sale of tax credits is very common. The reason that becomes important is all the jurisdictions have to agree. So the city, the county, everybody would have to be pulling on the oars.

There are a lot of very inventive kinds of approaches to this to fund it. The key is we're not going to get anything done unless everybody involved this time is really focused on getting it done.

Comments for "INTERVIEW: RBTL's dramatic pitch " (11)

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Broadway Joe said on Nov. 25, 2009 at 3:44pm

Finally, the RBTL is putting the issues on the table, most of which make sense. Let's face it, the Auditorium is a dump.

Unfortunately that made a big mistake during the RenSquare process as they followed the Brooks/Aesch script and walked in lockstep with Her Majesty and the Duke of Transit until the final nail was hammered in RenSquare's coffin.

Now that Brooks and Aesch are no longer part of this (well at least publicly), the RBTL finally comes forward with a rational and well thought out argument in favor of a new theatre. Well, they should have spoken much earlier - maybe funding for the theatre would have come through for RenSquare. If their numbers of $1 in ticket sales = $4 in other spending, along with ADA compliance issues and other deficiencies of the current theatre are true and correct - it may justify some taxpayer expense in the form of loans or other borrowing that will ensure we get a solid return on our investment.


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rickv14623 said on Nov. 27, 2009 at 11:41am

"It's by no means certain that RBTL will be able to build a new theater. RBTL is quoting a cost estimate of $40 million to $50 million, and it had raised very little toward construction of the Ren Square theater. RBTL officials continue to insist that they can raise the money they need, in part through selling naming rights and "inventive bonding." But RBTL will likely need substantial public funding," "Rothschild has been pushing for a new theater for RBTL for a dozen years, long before Ren Square was conceived."

The crowd of private investors waiting to open the floodgates of their personal fortunes is where? If RBTL were to announce an extra $5 or so a ticket on curent shows to raise capital would the seats at the Aud be filled?

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arnie rothschild said on Nov. 27, 2009 at 5:12pm

rivkv,
RBTL has never tried to raise money for construction for any site. The reason is that until a site (including the Main and Clinton corner in the previous project) is agreed to be the site, it is impossible to do that. We could not and would not ask for donor money until the project was moving forward.
I can tell you, however, that the fund raising committee and it's chairman were confident that we could have raised in excess of the 15.5 million for that site (they believed that 35 million was possible), but announced far in advance that they would not begin their effort until the site was appproved. That sequence of events is common, by the way!
Even in the sale of naming rights, you need to determine the site first. When the baseball stadium location was debated, Frontier sat on the sidelines until the site was determined...so, though conversations go on with donors and corporations, no solicitation occurs till the project moves forward.
In fact...if the sale of tax credits is involved, the site determination is critical to the local government's approval of the plan. I believe that you will find that once we find the right site, the fundraising plan will be announced quickly thereafter...and, in all the presentations made to us at this time, significant developer investment and funding help have already been proposed...so we are moving quietly and rapidly towards a full funding model after the site is determined! We never said this would not be a lot of work...it will be...but we believe we will accomplish it and that the community will be proud of the outcome!

Respectfully, arnie rothschild

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Will P. Condo said on Nov. 27, 2009 at 5:33pm

Excuse me for being blunt; but what is it about Rochester, and especially the media, that so much public discussion is made about essentially smoke and mirrors development projects. Instead of interviews with individuals who seem to know nothing about real estate development but have "wants'", where are the more meaningful commnets from experienced developers and investors who understand the reality of bringing projects to fruition? So now that "tax credits" have entered the promotion terminology of the RBTL, they will still nedd plenty of real dollars to build their theater. And if more public dollars are needed, why does anyone think the RBTL deservesthem. Has the RBTL ever demonstrated that it can generate enough income to maintain and improve the Auditorium theater, much less a new theater ? And if a real "performing arts " center is needed and feasible in Rochester that requires a sizable taxpayer investment, why should RBTL be even considered as the operating entity? There are other theatrical booking agents and arts organizations that surely would fully utilize a new facility. And what about the potential of including the entire Auditorium complex to generate an income stream from other avilable space there to subsidize the theater? There are far too many unanswered questions regarding a new theater to waste more time and scarce resources on without having a complete, detailed and believable development and marketing strategy from RBTL.

the writer is former senior staff of the Theater District revitalization program for the City of Boston.

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Harry Burch said on Nov. 27, 2009 at 6:49pm

While I enjoy RBTL on occasion, the venue is a definite detractor. While I have no idea how others may feel, I would certainly go more often than I do now if RBTL relocated. I think a near-city locale such as Lake Ridge Center offers the most attractive options with a greater possibility of good access (e.g. expressway or four lane artery) and ample parking, while still serving the current clientele and drawing in new viewers from the population.
Certainly any new theater would have ADA access and, hopefully, abundant restroom facilities; a requirement for our situation and likely many others. I enjoy live theater and look forward to the possibility of a convenient, accessible place to enjoy offerings in Rochester more than once or twice a year.

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arnie rothschild said on Nov. 28, 2009 at 7:56am

Mr. Condo,
RBTL bought the Auditorium Theatre, which was in disrepair from a construction company 8 or so years ago. RBTL then borrowed 1.6 million to renovate it. Our total investment approaching 3 million (including the purchase, renovations, and improvements). We have maintained it and improved it while generating a cash surplus 6 of 7 years since completion, funding education programs for our student population with the surplus.
We have done so without the traditional revenue streams of buildings that show popular entertainment...we do not control parking nor do we realize any parking revenue...we do not have very much concession revenue since the lobby area is so small that people cannot readily get to the concessions. We do not have any food service for corporate entertainment. In other words...this is a going and cash profitable operation, despite your view that we have not exhibited the ability to operate and improve the Aud...the opposite is well known to our community!
One of the venues we studied in making our recommendations was, at the time, known as the Wang Center in Boston. In that period of time, I consulted WCRB FM, then a classical music station in Boston. Interesting is that much of the same entertainment that exists in the Citi PAC in Boston also shows here !
We have worked very hard to own, operate, renovate, and make due with the Aud. I invite you, as I have other readers to tour it and review it's viability for renovation.

respectfully, arnie rothschild

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Robert Nassau said on Nov. 28, 2009 at 2:03pm

My house is a lot like the Auditorium Theater. It's not perfect, though it works pretty well. That said, it would be great if I could get a newer, bigger, nicer house with someone else's money. In the meantime, however, I'll be happy with what I have.

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rochester99 said on Nov. 28, 2009 at 9:38pm

The issue of RBTL’s plans for a new Theater is still basically an issue of “wants” and “needs”....and there has yet to be a unbiased professional analysis to separate needs vs. wants. As Robert Nassau articulated…it would be nice to have a new theater just as it would nice to have a new house but one must be realistic and pragmatic amidst the worst economic/financial crisis since the great depression.
Yes there are several larger theaters in New York State but what must be noted is that every theater is a historic theater just like the Auditorium and each venue has issues…either its community demographics, the passion for Broadway shows, the physical limitations of a historic building….etc. There is no one center that has all of what it “wants”. It is interesting that there are NO “new” performing arts center in the Northeast U.S.. No community has constructed a new gold plated theater. And this is true with the majority of theaters that show Broadway shows in America. Even when they do, cities like Salt Lake City (twice the size of our metro region)…decided to build a quality theater to attract the best of Broadway and their theater will be 2,400 seats…just like the Auditorium Theater!

But if the city and county and private sector donors are willing and able to build a new theater ….it must be built in downtown Rochester (midtown). Going off on their own and building in a suburban town will not get the support of New York State legislatures/Governor. I hope the meeting between the city and RBTL is constructive. There must be a consensus either way…rehabbing the Auditorium Theater or building a new Theater at Midtown. Without consensus…nothing will be accomplished! Our community cannot go meandering towards a fantasy talk about a new theater for another 10-15 years!

Regarding private sector support, it is absolutely critical that the any new theater get significant financial support from the private sector…the sooner the better. And this does not mean any accounting scheme that uses tax credits or Tax incremental financing. It must be private donors who are willing to present million dollar donations for the theater and its naming rights…or corporate suite commitments. Without substantial private sector support, the public sector should not consider a new theater. And there is no reason why such support cannot be contracted NOW. This proposal desperately needs at least one donor who is willing to announce a major commitment and create community momentum. Right now we only have shallow promises/hope.

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Berig Vintrange said on Nov. 29, 2009 at 4:29pm

Across from Spot Coffee lies a big parking lot full of satellite dishes owned by Channel 10. That space would be perfect for the theater. It's right off the Inner Loop, has a big ramp garage (corner Broad and Union), and it's in the cultural district - adjacent to many successful downtown restaurants and bars. A beautiful facade / marquee would do much to enhance East Avenue (did I mention it's across from the Little Theater?). That space runs from East Avenue back to Broad Street, it's huge (sorry, no Fuccillo puns)! I couldn't think of a better location for the theater that would better complement and enhance its surroundings, in everyway! Oh, Broad St. is two way from the parking ramp exit to the inner loop, conducive for good traffic flow.

The other consideration is, people would feel safe on this block, we who frequent the theaters and restaurants already do, night or day. Please consider this idea.
Berig Vintrange, Rochester

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Berig Vintrange said on Nov. 29, 2009 at 4:35pm

I know I'm spouting here but, please don't put this in one of the suburbs. How cultural would that feel, pulling up to something that looks like Marketplace Mall, surrounded by acres of asphalt, no heritage buildings in sight, just hundreds of SUVS. Our city is anemic enough, it's pulse is getting fainter and fainter at a rapid pace.
Berig Vintrange, Rochester

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Will P. Condo said on Nov. 30, 2009 at 10:07am

Since Mr. Rothchild has seemingly taken on the mission of responding to all comments made to the media regarding this matter, I would simply add that in my experience, the fundraising for the (then) Wang Center for the Performing Arts, the Wilbur Theater, the Boston Opera, the Paramount Theater, the Majestic, etc. in Boston ALL represent rehabilitation of historic theater structures and involved heavy fundraising and a dedicated income stream from a predictable source, such as corporations or academic institutions. If there is a local model, just look a Shea's Theater in Buffalo, which involved the (continuing) rebilitation of the historic downtown Theater and development of a smaller, 200 seat facility for other theatrical uses. And the group books Broadway shows. GeVa Theater here in Rochester is also a good model for a sustainable performing arts center. Again, IF ( a very big question) it can be determined that the Rochester area market needs and can support a true performing arts center and financing and operation of such facility is feasible,especially now that the RBTL has acknowledged their desire for serious taxpayer involvement, then there can be a serious public discussion of the subject, not the what if's,what for's and maybe's that are passing for news now. Where is the arts community on this ? Where are the private investors?

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