Wayne's Words: Time for some serious changes at the Rialto
Wayne Horne | 1/15/2015, 12:27 p.m.
Now that the disagreement over the Rialto Square Theater marquee renovation has resulted in the withdrawal of the $350,000 donation, questions are being raised about what to do next.
The Rialto governing board, the Will County Metropolitan Exposition Auditorium Authority, now has a larger financial problem because production of the marquee moved forward before public reaction was measured and required vetting was completed.
The announcement of the donation and the introduction of the marquee rendition followed the actual start of building the marquee. The whole process seemed so desperate. According to published reports, a compromise decision scheduled for a meeting last Thursday was not finalized until hours before the item was added to the agenda.
According to section 2.02(a) of the Open Meetings Act, the agenda is to be available at least 48 hours in advance of a meeting. The public was again not informed of a potential compromise in a timely fashion. Even the governing board did not feel comfortable reacting so quickly and tabled a vote on the compromise until a later date.
Perhaps the financial difficulties of the Rialto are much deeper than whether funding for the marquee renovation is obtainable. Mayor Tom Giarrante questioned the financial health of the Rialto several months ago at a city council meeting.
He said he had requested to “see the books” before any additional funding requests were made concerning the $600,000 subsidy provided to the Rialto each year. He backed off of that request because, he said, there were no additional funding requests made. A letter was sent to the council from the Rialto governing board but it did not arrive until after the city budget was passed for 2015.
The mayor should have followed up on his request. Why is the Rialto in such tight financial straits? Why is there no reserve fund to renovate the marquee or repair and renovate any aspect of the theater? The answer is not what anyone wants to hear.
Quite simply theater management does not put enough people in the seats. The theater is “dark” most days of the year. Unlike Silver Cross Field, which also lacks “fans in the stands,” the theater has heat and air conditioning, so it can be used year-round.
According to the Rialto website, salaries and benefits comprise more than $1.5 million of the $4 million 2014 WCMEAA budget. Rental of Rialto property brings in just over $1 million per year. Almost half of the rental revenue comes from the separate Two Rialto Square building. Sponsored events, including concessions, generate $2.2 million in revenue. Rialto management takes in approximately $3.5 million revenue. Expenses exceed revenue by over $600,000 according to the 2014 budget. The $125,000 spent on the yet to be completed marquee adds to that deficit.
What will the Rialto do with such a bleak financial future? The options in the short term are limited. It is clear the current marketing model to generate revenue is not working.
Just up the road a piece is the Paramount Theatre in Aurora. Four years ago the Paramount changed its management model from one similar to the Rialto’s current form to one that includes a production company that now offers a Broadway Series that is produced in-house. The results have been, to say the least, remarkable.