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City reviews proposed Sunrise Theater management deal; VenueWorks pitches programming and revenue plan
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Summary
City staff and VenueWorks described a proposed five‑year management agreement for the Sunrise Theater that would keep city ownership but outsource day‑to‑day operations. VenueWorks proposed a $7,000 monthly base fee (year 1), 10% of gross food & beverage, a $50,000 concession equipment investment and monthly financial reporting; commissioners pressed for KPIs and tight financial oversight.
City staff and VenueWorks representatives outlined a draft management agreement for the Sunrise Theater during the March 9 Fort Pierce commission meeting, describing a structure that would keep the city as owner while outsourcing operations, programming, marketing and ticketing to the private operator.
City staff said the RFP awarded management to VenueWorks and summarized key contract terms: an initial five‑year term with an optional five‑year extension, a 120‑day termination notice, city ownership retained, and the operator managing day‑to‑day staffing and bookings. VenueWorks would operate under the city’s existing operating budget and submit an annual operating budget for the commission’s approval.
Mike Silva, VenueWorks chief operating officer, described the company’s background and said the firm is employee‑owned and manages venues similar in size to the Sunrise. In its proposal VenueWorks offered a $7,000 per month base management fee in year one (adjusted by CPI in later years), 10% of gross food and beverage revenue, and a $50,000 investment in concession equipment. Silva said VenueWorks would issue monthly financial reports and maintain general liability insurance for events. "We will issue financial reporting every month, to the city, for review and questions," Silva said.
Staff and commissioners sought assurances about oversight and fiscal risk. Commissioners asked who would monitor KPIs and how the city would manage cash flow and any operating deficits. City staff said the operating budget (about $4.6 million cited in discussion as the theater’s operating line) would still be budgeted by the city; VenueWorks would manage operations using that budget and receive the stated management fees. VenueWorks proposed a clawback: if net operating income had a shortfall at year‑end, 50% of earned commissions would be returned to help cover the deficit.
No final contract vote occurred; the presentation was informational and staff said they will return with a recommended agreement and contract language. Commissioners requested that performance indicators, monthly management reports, and a clear city point of contact be included in the final contract and signaled the need for close financial monitoring before final approval.
