City officials have set the stage for another financial drama between Duke and Durham.
As Durham plans a new $42 million downtown cultural center, it is searching to find $10 million in support from Duke. Without the University's financial support, developers said the theater might not accommodate both concert and theatrical acts.
But Duke officials said they do not plan to pay the amount requested and have indicated that the University is only willing to fund upgrades to the theater that will allow the American Dance Festival, which holds its summer season at Duke, to use the space.
"Without that [funding], we'd really have to think about whether we want a performing arts venue or this multi-use facility," said Alan DeLisle, economic development director for the city of Durham.
The primary funding for the theater, $24 million, comes from a temporary hotel tax levied specifically to generate funds for a downtown cultural center. But the revenue comes with a ticking clock.
The city must break ground on the new building by October 2005 or it forfeits the tax money. A city agreement with the American Tobacco Project developer stipulates that if the city council does not give the theater approval by October 2004, the land reserved for the theater can be used for other projects.
Durham is counting on private donations to cover the remaining $18 million of the theater's cost.
When discussions began about the Durham theater several years ago, Duke indicated that it would be willing to pay the cost of upgrading the stage to accommodate ADF--a commitment of about $2-3 million. Senior Vice President for Public Affairs and Government Relations John Burness said the $10 million figure would "not happen."
Many of the aspects of the project attributed to ADF's requests, however, may represent the difference between a music hall and a theater. ADF, as the largest Durham-based cultural performance group in development discussions, has been a vocal advocate for making the space feel like a theater. "Lots of different things go into creating the knowledge that when you walk into a theater, you are in a cultural theater," ADF board member Carlton Midyette said, noting details such as seating and lobby finishes.
City planners noted that the planning process is only about half complete and the theater will continue to evolve with community input.
"There is a huge difference between a concert venue and what ADF needs, which is really more of a classical stage and a classical theater," Phil Szostak, a member of the project's development team, explained. A project without ADF's requirements has been discussed and would carry about a $30 million price tag, he said.
ADF and Duke have discussed the inadequacies of Page--with its small stage and lack of dressing room space--as a dance theater for almost a decade, and ADF has considered leaving Durham in search of larger pastures.
"Page is not a long-term answer to either Duke or ADF as a permanent theater," Midyette said. Duke will not likely find the budget to revamp its theater space for at least six years, administrators said--thus ADF's best hope for a new theater is in the downtown center.
"Our involvement in this project all along has been related to the special needs for a stage for ADF, and no more," Burness said.
Duke's willingness to fund the theater also depends on the resolution of several other financial disputes between Durham and the University.
For the past few months Duke and Durham have been wrangling over $1.2 million in disputed development fees the city says Duke owes. The two groups are also sparring over voluntary contributions and the formula used to calculate the cost of fire service to the city. Duke currently pays a $300,000 voluntary annual fee for fire service, but the city says the actual cost is $450,568.
University officials said they will not discuss the theater until these other fee disputes are resolved.
The University, then, could serve as the saving grace for many community members who have increasingly vocalized their concerns with the project as planning plows forward.
At an open meeting Tuesday night, Durham citizens, including representatives from several local arts organizations, voiced qualms about the theater. The raucous crowd continually interrupted Szostak's presentation explaining the theater's projected revenues with concerns that the theater would cost the community money and drain resources away from Durham's other struggling venues, such as the Carolina Theater. City residents also objected to the project's relationship with entertainment mega-power Clear Channel, the preferred candidate to manage the completed venue.
Although the theater itself will not generate any revenue for the city, projected development inspired by the cultural center's presence would bring in tax money to a cash-strapped Durham, city officials said.
"I'm worried that the stage has been set and we're trying to stop the momentum rather than just trying to stop this project," said Denise Van DeCruze, a member of the Arts Business Coalition of Downtown Durham.
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