Council opens path to explore city role in preserving Orpheum Theatre; staff to appraise building and study acquisition models

Flagstaff City Council at its June 24 work session heard hours of testimony and a staff briefing about options for preserving the Orpheum Theatre as a community asset. The owners, operators and numerous community speakers urged the city to help keep the downtown venue locally owned and available as performance and event space.

Deputy City Manager Joanne Keene introduced the staff briefing and turned the presentation over to Lauren Clementino, the city’s historic preservation officer, and Dave McIntyre, community investment director. Staff outlined three scenarios for the Orpheum should the current owners choose to exit: (1) city acquisition with public management through a competitive manager selection, (2) city acquisition with creation of a special district (an arts district or community facilities district) that could oversee multiple venues and eventually transition management to nonprofit partners, and (3) no city acquisition, allowing the owners to sell on the open market.

Owners Charles Smith and Chris Scully attended and addressed the council. Scully and Smith described the theater’s local history and operations and told council they are open to exploring options. Members of the public — including musicians, longtime Flagstaff residents and arts advocates — urged council to preserve the venue, citing the Orpheum’s role in downtown life, tourism and local arts development.

Key staff points and constraints included:

- Financing and legal limits: Keene and McIntyre reminded council that if a city purchase price exceeded $3 million, Arizona charter rules would likely require voter approval; staff said larger capital or bonding decisions would likely involve the voters. McIntyre also noted past development agreements and incentives tied to the theater, including a government property lease excise tax incentive used earlier to maintain the venue.

- Due diligence: Staff said next steps — should council want to continue exploring a city role — would include a commercial appraisal, a facility condition assessment and drafting possible governance/management models. City staff estimated an appraisal could be completed in roughly 60–90 days and asked for direction to proceed with that due diligence.

- Management models: Staff described precedents where cities or counties own venues while nonprofits or private managers program them (examples cited: Theatricos, Creative Flagstaff at the Center for the Arts, Pepsi Amphitheater). The district model (scenario 2) would allow multiple venues and organizations to operate under a single governance umbrella and could include the Indigenous Community Cultural Center (ICCC) in a coordinated strategy.

Council discussion: Vice Mayor Sweet, who had helped initiate staff conversations, argued for protecting the Orpheum and tying preservation efforts to other community priorities, particularly the Indigenous Community Cultural Center. Multiple council members expressed support for exploring a model that packages the Orpheum and the ICCC together, while noting the need for clear financial plans and likely voter involvement for significant purchases. Council member Matthews said the ICCC must be included if the city pursues acquisition: "The ICCC has to be included in this," he said, adding concern about timeline and total costs.

Public comment was extensive: musicians, long-term residents and local business leaders spoke in favor of city involvement; owners and operators thanked council for engaging and said they would work with staff. After discussion, Council directed staff to proceed with due diligence (appraisal and facility assessment), to prepare governance/management options (including a PUD/PAD or an arts-district governance model), and to return with the findings and recommended next steps. Staff estimated an appraisal would take approximately 60–90 days.

What’s next: Staff will order a commercial appraisal and facility assessment, prepare potential management/governance options (including an arts-district approach), and report back to council. Staff warned that a voter measure would likely be required if purchase or bonding needs exceed charter thresholds; council members said they want the Indigenous Community Cultural Center considered in any package.

(Reporting note: direct quotations in this article are attributable to Vice Mayor Sweet and City staff; full transcript excerpts are included in provenance.)