In Thursday’s (5/5) Philadelphia Inquirer, Peter Dobrin writes, “In its bankruptcy petition last month, the Philadelphia Orchestra Association took aim at the Kimmel Center, its landlord for Verizon Hall, and the complex lease agreement between the two organizations. The orchestra’s cry for relief from the lease, though so far lacking in specifics, has prompted some board members and others to advocate the orchestra’s return to the Academy of Music. The orchestra pays rent in Verizon Hall, and if it returned to the Academy, which it still owns, it could shave expenses, the argument goes. But a return to the Academy would not be likely to save the orchestra much—if any—money, an examination of tax records and other documents suggests. … The amount it cost the orchestra to occupy the Academy in 1998-99—including rent and personnel costs—was $1.6 million. The orchestra currently pays the Kimmel $2.3 million a year—which is, adjusted for inflation, just over that 1998-99 amount. As part of the deal, the Kimmel rents the Academy for $1 per year, books it, and is able to keep the revenue generated by Broadway shows and other productions.”
Posted May 5, 2011
