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Portland committee reviews draft amendment to charge large venues a per‑ticket entertainment contribution
Summary
The Housing & Economic Development Committee discussed a Chapter 4 amendment that would create a tiered per‑ticket contribution for venues of 2,000 seats or more, applyable to the proposed 3,300‑seat Portland Music Holdings project; staff will revise the draft and return it to committee.
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Councilor Sarah McNovich introduced a draft amendment to Chapter 4 that would create a tiered per‑ticket contribution attached to entertainment licenses for large‑capacity venues, defined in the draft as those with 2,000 seats or more.
"The applicant, Portland Music Holdings, had proposed a fee per ticket...a dollar per ticket sold that would have been split between Metro and a fund that would support the entertainment sector," McNovich said, describing how the draft aims to formalize that proposal and make funds available to performers and smaller venues through an ordinance process.
Committee members pressed staff on several details: whether temporary or one‑off outdoor events (for example, the Payson Park concert approved the prior night) would be covered (McNovich said they would not), how to define the venue capacity (options include tying the threshold to the certificate of occupancy), and whether promoters could avoid the fee by changing seating configurations.
Corporation counsel Michael Goldman suggested tying the threshold to an administrative capacity number (for example the certificate of occupancy) so the rule is not defeated by changing seating arrangements. He also said the city would put specific documentation and reporting requirements into the license agreement to verify compliance.
Councillors raised concerns that third‑party ticketing fees (service charges, convenience fees) can make up a substantial portion of a ticket’s final price and asked whether the proposed charge would be calculated on base ticket price or include those fees. McNovich said planning‑board conditions would direct at least 50¢ of an earlier proposed $1 per‑ticket contribution to Metro and preserve a $50,000 engineering study for loading‑dock work at the Merrill; she also noted other cities have used different models and the committee could adjust percentages or definitions.
Michael Goldman said he expects the ordinance would be implemented through individual license agreements and that staff can require documentation to confirm revenue calculations but may not be able to control how businesses itemize fees for customers. "I suspect in the end that the cost is gonna be passed on to the consumer," he said, adding the city can nonetheless set terms in licensing agreements to protect the program's intent.
No vote was held. Goldman and Councilor McNovich will revise draft language to incorporate committee feedback and return a revised ordinance to the committee for further discussion and a potential future vote.
What’s next: staff will prepare a revised draft of the Chapter 4 amendment that clarifies the capacity definition, the treatment of third‑party fees, and allocation details; the committee agreed to return the item for further review before any licensing or public‑comment vote.
