Tulare Utilizes Reserves to Propel New Amphitheater’s Growth

The City of Tulare is actively implementing a strategy to support the recently opened Adventist Health Amphitheater at Zumwalt Park. This plan involves tapping into general fund reserves to cover operational costs as the venue works towards becoming financially self-sustaining over the next few years.

Tulare’s city manager, Marc Mondell, confirmed that since its opening in May, the amphitheater has drawn visitors from across the United States, representing over 200 cities in 18 states. “Our goal is to try to balance our costs with the revenues that we derive from the concert series,” Mondell noted, emphasizing the need for a sustainable financial model.

The initial years of operation are expected to present challenges. Mondell explained that the city is currently at only about half of its anticipated ticket sales. “I told the city council from the beginning, this is going to take us about three years to stabilize this facility,” he stated, acknowledging the difficulty in attracting local residents to the venue. Currently, only approximately 6% of attendees are from Tulare.

In response to the slow start, Todd Speelman, the owner and lead producer for Spade Entertainment, which promotes events at the amphitheater, mentioned that his team is investing significantly in marketing efforts. “We’re spending a lot more than we normally would spend,” Speelman remarked, adding that they are leveraging sponsor databases to generate interest and attendance.

Despite the slow ticket sales, Mondell remains optimistic. He believes that with strategic adjustments, attendance figures can improve substantially. “I don’t know if it’ll be by the end of this year, but I think there’s a very good chance of it by the end of next year, and certainly by year three,” he said. The city aims to attract between 35,000 and 50,000 visitors annually to the venue, which would also contribute to local revenue through hotel, sales, and gas taxes.

To diversify its offerings and enhance community engagement, the amphitheater is planning a variety of events beyond concerts. Speelman indicated that next year will feature exciting new programming, including a four-day Christmas event that coincides with Tulare’s annual parade, organized in partnership with the Downtown Partnership.

In a significant move, the City Council approved a resolution in July 2023 to utilize up to $400,000 from general fund reserves to support the amphitheater’s operational costs. Mondell clarified that this funding will be replenished through naming rights payments from Adventist Health. “My recommendation was to use that naming rights money to cover these expenses,” he said.

The amphitheater has already proven to be a versatile space, hosting a range of community activities, including free concerts, yoga classes, and film nights, which have drawn up to 500 attendees. Mondell highlighted the importance of adapting programming to fit the venue’s capabilities and the costs associated with attracting artists, whose fees range from $25,000 to $150,000 per show.

As the amphitheater seeks to establish itself, Mondell emphasized the need for patience and strategic planning. “When you start a new business, most typically it’s not profitable from year one,” he stated. The focus remains on covering operational costs and fostering long-term growth, with clearer financial viability expected in the coming years.