Monday, November 24, 2008

Not Done Yet


In a frigid November Saturday about 250 (and much more as the day wore on) scarf-wearing music lovers sought the warmth of the Congress Theatre to hear from the likes of HaHa Tonka, Blue Mother Tupelo, The David Grisman Quintet and The Avett Brothers. In a city where festivals often disappear at the end of August, the inaugural Chicago Bluegrass and Blues Festival added a respite from the monotony of the cold months.

Unlike Taste of Chicago, Jazz Fest, Lollapalooza and other festivals, CBGB did not come out of the Mayor’s Office of Special Events or the big promoters such as, Live Nation, Jam Productions and C3 presents. It is the baby of KingTello Presents, made up of independent promoters and producers Lucas King and Mike Raspatello.

“We’re nothing more than two guys approached by the Congress Theatre to come up with a concept for the winter months,” Raspatello explained. “We thought an indoor festival featuring truly independent music was exactly what we needed.”

More and more venues rely on independent promoters for their shows. “We offer greater flexibility than bigger promotion companies,” Raspatello said. “Artists also like working with us because we are less demanding.” The benefits of using independent promoters ultimately trickle down to music fans, resulting in cheaper tickets. According to Raspatello, the price of a concert ticket for one of the CBGB acts would cost $45, but the 12-hour access to 18 bands costs only $31.

The importance of the independent promoter in Chicago’s music community was best demonstrated by the reaction against the proposed Event Promoter’s Ordinance. The ordinance, first introduced in 2006, was a response to the 100 killed in a Great White concert in a Rhode Island nightclub, and locally, to the stampede at the E2 nightclub that injured 50 and killed 21. It requires promoters to be licensed (license fees range from $500 to $2000) and that they have to have an insurance policy that provides $300,000 in liability coverage per event (reduced from the original $1M). Additionally, the ordinance will not license anyone under the age of 21 and all are subject to a finger printing and criminal-background check.

Last year, in a show of solidarity, Chicago’s music community rallied against the ordinance for several reasons but mostly because it will hurt the independent promoters. Through demonstrations, letters to aldermen and public outrage, Chicago promoters, artists, record labels and fans were able to keep the ordinance from being voted on in May 2008. In addition, the city made several revisions to the original version that addressed the concerns of the music community. The changes include replacing the flat licensing fee with fees classified according to venue capacity ($500 for 0-100 and $2000 for 2000 and over), reducing the insurance requirement (as stated above), and excluding artists, fixed-seating venues and non-profits from the ordinance.

There have been no developments since the latest version was introduced in July. In September, the Chicago Music Commission, a nonprofit organization dedicated to the music scene of Chicago, posted on its website statement that the Department of Business Affairs (DBA) and Alderman Gene Schulter (47th ward) Chairman of the License and Consumer Protection Committee are meeting with various members of the music community to discuss further concerns about the ordinance. When recently asked about the latest ordinance developments, Efrat Stein, Director of Public Information for the Department of Business Affairs and Licensing, said, “The ordinance is still currently in full committee. But we don’t know when or if voting will happen.”

Although the tabling of the ordinance and the silence in the media and in the internet about the ordinance may signal a victory to the music industry, Henry H. Perritt, Jr., a professor at Chicago-Kent College of Law and the author of the white paper, “Why the Event Promoters Ordinance Should Be Rejected” warns that no one should be resting on their laurels. “We must remain vigilant,” Perritt said. “We should be ready to assemble 5,000 to 10,000 people in Daley plaza if it comes up again.”

Stein assures that the ordinance was not formed to harm independent promoters, but to regulate the promotion industry and legitimize it. “We’re not opposed to regulation,” said Paul Natkin, music photographer and the interim director of the Chicago Music Commission. “We just want to make sure that it is done responsibly, fairly and efficiently.”

One of the biggest hurdles is the insurance costs, which Natkin says will break all the young promoters in town. He also doesn’t think they are necessary because according to law, venues are already required to have liability insurance. “Venues don’t just hand the keys to the promoter. They are in full control,” said Natkin. “Promoters have nothing to do with carding at the door. They have nothing to do with handling the equipment on the stage.”

Robert Baker, Vice President of Gale Creek Insurance, a special events insurance provider in Portland Oregon, explains it a little differently. He said most events handled by promoters involve a contract between the venue (the “lessor”) and the promoter (the“lessee”). “In most contracts, the lessor will attempt to transfer as much ‘indemnity’ as they can to the lessee,” explains Baker. “Which means that venues will be responsible for structural damages, like if a chandelier falls or if the walls give in. But instances such as if someone gets molested during a concert, or if someone falls down the stairs, or if the band jumps in the audience, all that goes back to the promoter.” Baker adds that sometimes promoters sometimes skip the insurance and pay any damages out of pocket, but most opt to purchase it.

Some promoters purchase insurance coverage whether or not it is required. Former event promoter, Ron Simmons, said that reputable promoters already cover most of the requirements on the ordinance’s list. “Event promoters usually already have their own insurance and security in place, “said Simmons. “Depending on the event, most usually have everything needed to accommodate large volumes of patrons. Crowd control is extremely important.”
“I hope the City is doing it for the protection of the public instead of a money-making scheme. If it’s for the protection of the public, I can understand that,” said Simmons. “But you should be able to get your own insurance and your own security without having it mandated by the government. It’s just another thing that the city is making you pay for.”

Simmons founded the promotion company, Starship Enterprises, a fixture in the Chicago upscale club and event scene in the late 1970s and ‘80s. He left the promotion business to pursue a career in bodybuilding, but a broken leg prevented him from qualifying for the 1996 Olympics in Atlanta. Simmons now books gigs for high profile artists such as Sheena Easton, Patti LaBelle and Prince.

Perritt says the problem concerning the ordinance is that it is too broad. While established promoters can easily afford the city’s terms, there are many who can’t. “Most of Chicago’s music is made up of unknown bands booked by independent promoters who make $50 – $75 per show. There’s no way they can afford the licensing fees and cost of insurance,” said Perritt. The ordinance does not take these independent promoters into consideration. Quotes from Gale Creek Insurance show that event insurance for an indoor concert of 20 people cost the same as one with 200 attendees ($299).

The DBA asked an events insurance broker to come up with proposed insurance schedule which appear reasonably affordable (for venues of 100 capacity or less, $225 for five events) but requires promoters to buy coverage for multiple events. Natkin explains the complication, “Let’s say you’re just starting out and want to book a show for an unknown band that perhaps only 5 to 10 people will show up. You can’t just buy one event coverage; you have to buy five even if you don’t know if you are able to put together four more shows together.”

The biggest problem that Natkin and Perritt have with the ordinance is that it was written by people who are unfamiliar with the music business. “The people who are writing the laws have no idea how promoters run their business,” said Natkin. Perritt thinks that the ordinance didn’t need to be created at all, “There was no suggestion that the promoter had any involvement in the E2 tragedy. The fact is that the City didn’t enforce the rules that were in the books. Now they come up with this thing that essentially makes the way that independent music is made illegal.”

One positive aspect of the introduction of the ordinance is the awareness that it brings to Chicago’s music scene – specifically independent music. Natkin said that Chicago is currently third in the national music scene but may soon drop to fourth or fifth. Other states, such as Seattle, are making strides in promoting their music industry by offering health insurance to musicians and lowering taxes on entertainment tickets sold.

Perritt said that Chicago needs to promote its independent music more. He suggests including show information in hotel guides and airports. The Chicago Music Commission has already put in place the Terminal Tunes program, which features instrumental versions of songs by blues, jazz, country and classical artists who are either from the Chicago area or record for Chicago-based record labels.

“Mayor Daley is a wonderful mayor,” said Perritt. “I applaud his efforts n keeping the city clean and fun. But he should really pay more attention to our independent music. It is a great asset to this city, and has and continues to define Chicago to the rest of the world.”


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