The other two are Sydney’s Playbill and the current operator Palais Theatre Management. The three will now have to put forward proposals on their strategies to operate and grow the business.
When it called for Expressions of Interest last year, Council asked applicants “to share their vision for the Palais with Council within the context of the (St. Kilda) Triangle, the future of which is being collaboratively explored with the community.” For further information on the Triangle collaborative design process, go to stkildatriangle.com.
But the decision will be – do you maintain the venue as something part of the “St. Kilda community experience” or do you opt for a high-end running venue that just happens to be in St. Kilda?
The Melbourne-based Live Nation has already expanded into venue management in Western Australia. Earlier this year, it was part of a new company called Perth Stadium Management, in partnership with Ticketmaster, US stadium hospitality and catering company Delaware North and the West Australian Football Commission, among others. It already operates the Domain Stadium and bidding for the new 60,000 seat stadium being built in Burswood.
The idea is that Live Nation can use its considerable global muscle to get major acts into the Perth stadiums – which presumably would be the case if the promoter gets the green-light for the Palais.
But as The Age reported this morning, lobby group I Love My Palais is worried about what would happen if Live Nation took over. It has sent a letter to Council requesting that the three listed have the best interest of St. Kilda. It expressed worry that Live Nation would not run it as a “community” serving venue and allow the use of outside booking agents. It quotes one of the group’s members, Peter Holland, as saying “Live Nation is a big conglomerate. They might have plenty of money but also [need to] spell out how the Palais would be made available to groups outside their stable.”
However some of the live music sector has different ideas. A rival venue operator told Beat, “It’s not a case of community sensibilities and preserving the St. Kilda feel. It’s about getting the best people in to run the place as a top live music venue, who have the money to do it up, and introduce the latest technology. Do you want the venue to keep struggling in a commercial sense? Do you want to go for longevity or for a band-aid solution? That should be the basis of the decision, in a strictly commercial perspective.”
The incumbent Palais Theatre Management has run the venue since 2007, headed by internationally known promoter Neil Croker, with a strong local community stress. Under his reign, the Palais has got international kudos. The international live music bible Pollstar ranked it as Australia’s #1 theatre venue and placed it at #25 internationally alongside venues as New Yortk’s Radio City Music Hall, London’s Royal Albert Hall and New York’s Beacon Theatre.
Sydney’s family-run Playbill runs that city’s heritage listed Hordern Pavilion and Royal Hall of Industries, also with a strong stress on community involvement and activities. They see the Palais as “a natural fit” with their other venues.
The tender should be completed by November. Meanwhile the process has delayed renovation work, estimated to cost $43.4 million, on the crumbling 1927 art deco building. How much the State Government provides for the renovation will be unveiled in the May budget. The Council is hoping to receive $25 million (the Government promised $13.5 million last year before the election) while it has itself committed $7.5 million.
The Council has told the three finalists not to put in their proposals until the funding is secure. But Albert Park MP Martin Foley says the decision on the operator be made quickly, so they too can contribute to “what they can bring to the table.” Current manager Neil Croker last year promised to chip in $5 million if his company secures the long-term lease.
The Council is meeting tomorrow to consider a revised urgent works program.
