The future of the Greek Theatre’s management was still in question on Thursday after the city Recreation and Parks Commission failed to make a decision on who should be awarded the management contract.
City staff and a consultant firm handling the selection process recommended handing the reins of the venue to Live Nation Worldwide, which would put an end to Nederlander Concerts’ operation of the venue after 39 years.
The two companies are competing for the right to manage and book acts for the performance venue, and would be sharing some of the profits they get with the city.
The contract term would be for 10 years and twice could be extended for five years.
The Recreation and Parks Commission voted 2-1, which meant less than a necessary quorum of three commissioners supported giving the contract to Live Nation, and no decision could be made.
Commissioner Iris Zuniga voted against granting the contract to Live Nation, while the two other commissioners, Lynn Alvarez and Sylvia Patsouras, voted in favor.
Commission member Misty Sanford was absent from the meeting in which the vote was held.
The panel had already delayed the decision earlier this month, and is scheduled to meet again on the issue Oct. 23.
Nederlander representatives said the extra two weeks will allow commissioners to study what they contend are “flaws” in the selection process and how either proposals were scored.
“We are also forever grateful to all of the community members including the neighborhood and over 20,000 people who have signed a petition to see this decision made fairly and in the best interests of the city,” Nederlander CEO Alex Hodges said.
Live Nation issued a statement saying its proposal “earned the clear recommendation of city staff, as well as the unanimous approval of an independent panel of experts,”
“Despite the delay, we will stay the course and fully expect the results of the city’s bidding process to be upheld,” the statement said.
Both companies today detailed improvements they plan to make to the venue, including adding dining options and renovating the theater, which included repairs as well as raising the stage’s roof to accommodate more types of concerts.
Nederlander said they want to bring in food trucks and restaurants like Bestia and Republique to the venue, while Live Nation said they plan to work with sushi chef Nobu and the Patina Group, which handles dining at the Hollywood Bowl and Disney Hall.
Each side said they would pay the city more in rent, invest more into the venue and share more of their revenue, but disagreed on how the calculations were made.
Live Nation’s proposal includes bringing in Ticketmaster as a partner, while Nederlander is teaming up with AEG.
More than 500 people, mostly employees from the two companies, came out to support their respective employers, dividing the room into two colors, with Nederlander supporters wearing green shirts and Live Nation’s side dressed in red.
Nederlander representatives pointed to several areas in the scoring and selection process they felt deserve closer inspection, including a part of Live Nation’s proposed contract that they said may lead to reduced rent.
They also said their maintenance investment amount was undervalued because it did not include an amount they proposed for regular maintenance.
Rena Wasserman, the Greek Theatre’s general manager, said Nederlander has had a “wonderful 39-year partnership with the city through all the ups and downs of natural disasters and recessions.”
“Through our stewardship we have built the Greek to the first class venue it is known as today,” she told the commission. “We are not resting on our laurels. We have submitted an incredibly exciting vision.”
Wasserman said they plan to hire Brenda Levin, a historical building preservation expert who also worked on the Dodgers Stadium, Grand Central Market, the Bradbury building, Griffith Observatory and Los Angeles City Hall.
Meanwhile, Live Nation executive Matt Prieshoff said “there is no question Live Nation delivered the superior proposals” based on the independent panel’s scoring of their proposal.
Prieshoff said Live Nation plans to take an “aggressive approach” to maintaining the venue, saying “the lack of maintenance has been an ongoing, visible problem with this venue for quite some time.”
“We won’t let this building continue to deteriorate and will focus on bringing back much of the great landscaping that once surrounded this gem,” he said.
Joe Berchtold, COO of Live Nation, said the company is also in the position to guarantee at least 70 shows at the venue, saying they have been ranked as the top events promoter in the world by Pollstar Magazine every years since 2006.
Berchtold also said unlike their competitor, which is partnering with L.A. Live operator AEG, the Greek Theatre would be Live Nation’s largest venue of its kind in Los Angeles and “will receive our complete focus.”
Live Nation’s venues in Los Angeles include the Wiltern and the Hollywood Palladium. The company also ran the Made in America Festival at Grand Park.
Nederlander operates the Pantages Theatre and the City National Grove of Anaheim.
