Biloxi council approves management agreement with Encore Sanger to operate Sanger Theatre after extended debate

Biloxi — The Biloxi City Council voted to approve a management agreement with Encore Sanger to operate the historic Sanger Theatre, following a lengthy policy discussion about revenue splits, oversight and facility responsibilities.

The agreement gives Encore Sanger (a local nonprofit) operational control of theater programming and most event services while the city retains responsibility for building utilities and structural maintenance. Under terms described to the council, Encore will keep roughly 70% of operational revenues and remit 30% of eligible gross receipts to the city; sponsorship proceeds and certain fundraising revenue would be managed by the Encore nonprofit and used for restoration and equipment. Encore representatives said sponsorships would be restricted for capital improvements to the Sanger.

"We're comfortable with that," an Encore representative told the council, adding the nonprofit already has several local companies committed to future productions and expects to open with at least one qualifying event by the contract date. Mayor (speaker 5) and city staff characterized the deal as a way to accelerate restoration and increase usage of the venue while protecting state funding conditions that required third-party management.

Council members pressed Encore and staff on specific points: what counts as "gross receipts," how concessions and merchandise revenue will be handled, whether sponsorship funds will be ring-fenced for the venue, how ticketing will be administered and whether the city should have direct oversight or a voice on the nonprofit's board. Councilman Marshall (speaker 11) asked that the council have representation on the nonprofit board; Encore said it was willing to discuss bylaw amendments to provide city input.

Encore representatives explained the mechanics: ticket revenue that Encore controls will be part of the 70% share; in instances where outside groups rent the facility and sell their own tickets, Encore's commission will apply to rentals and concessions the nonprofit operates. The management group also proposed a modest $3 'restoration fee' added to tickets to build a restricted restoration fund. Staff said the city's 30% share is intended in part to repay an earlier $361,000 economic development draw for interior work.

Council members voiced two main risks: (1) that the city would carry utilities and structural maintenance costs while receiving a fluctuating 30% share and (2) that nonprofit-controlled sponsorship revenue could be spent without sufficient council oversight. Encore and staff responded that sponsorships would be restricted for Sanger improvements and that accounting transparency — including monthly reports — would be provided. The contract also includes termination provisions allowing either party to end the agreement with notice (90 days was discussed).

"We have a commitment to make this work," Councilman Creel (speaker 2) said in support of the partnership, noting the nonprofit's local ties and early event commitments. Councilman Shoemaker (speaker 16) and others urged caution, seeking guarantees about restricted accounts, insurance language and processes for resolving disputes.

The council approved the item as part of the consent/policy votes after receiving assurances that staff and the nonprofit would continue negotiating details such as board representation, restricted sponsorship accounts and insurance language.

What happens next: The management agreement moves into effect under the contract schedule; staff and Encore indicated they will provide monthly financial reports to the city and continue to refine bylaws and contract language to address council concerns. The city and the nonprofit said they expect events to begin in short order and will use restored revenue streams and sponsorships to pay for additional theater improvements.