Why clubs and theaters in Richmond fail

STYLE Weekly’s new Back Page,”The City That Fun Forgot,” takes a look at some of the peculiar obstacles those in the nightlife business face in Richmond. It was written by Don Harrison, publisher of Save Richmond, who has written extensively on the crazy crossroads in Richmond, where politics and entertainment meet.

When nightspots aren’t riffing with the city, they have state alcohol officials to jam with. The local office of Alcoholic Beverage Control has shown itself to be both aggressive in its policing and slow in issuing licenses to qualified city applicants. The agency’s fines — for lights being too dim and corners being too dark — are often authoritarian, and the ABC board’s Prohibition-era alcohol laws that mandate 45 percent in food sales are a big reason many music venues go under. Clubs forced to serve food in R-Town also are hit with a hefty meals tax to go along with the city’s admissions tax.

Click here to read the entire article.

The “admissions tax” Harrison mentions has played a significant role in closing down some of Richmond’s favorite entertainment venues over the years. It keeps shows from coming to Richmond.

Seven percent of the price of all tickets sold for any show in Richmond comes off the top, even when the show loses money. That’s in addition to all other taxes and so forth.

Ask anybody who has ever been in show business in this city what that means.

More will follow on this topic soon.

Posted in Business, Hub's Blurbs

2 Comments.

  1. Will Center Stage be exempt from admissions tax?

    How about lowering the meals tax increase that paid so much for Center Stage?

    Scott Burger @ April 15th, 2009 at 11:31 am

  2. Scott,

    About 20 years ago I wrote a piece about how Friday Cheers, staged in Festival Park, was hurting happy hour business in the Fan’s bars. At that time its promoter, Downtown Presents, was competing with tax-paying restaurants on an uneven playing field. It didn’t have to sell food, etc.

    The City didn’t want to pay Downtown Presents much money to run/promote events and to manage Festival Park, so the organization then headed up by Nina Abady was allowed to make it up by pocketing the money from beer sales.

    It’s a long story, but the bottom line was that Richmond was willing to play unfair then, to support what amounted to under-the-table payments for services it couldn’t afford. Another motive was to cozy a crowd up to the already failing, four-year-old 6th St. Marketplace.

    Now I don’t know if Center Stage will be treated like other ticket-sellers in town, with regard to taxes. But it won’t surprise me if an exception is made.

    FTRea @ April 15th, 2009 at 12:40 pm

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