The cost of performance

Pumphouse ups its rent, highlighting city's space crunch

David van Belle is not happy. Pumphouse Theatre’s recent announcement that it is significantly increasing its rental rates has the co-artistic director of Ghost River Theatre questioning how small theatre companies can survive in Calgary.

“A doubling in fees over two years, plus cleaning fees, plus increased surcharges, plus additional fees for two performance days. This is not going to help the space crisis we’re facing in Calgary theatre at all,” van Belle says. “I understand why they’re (Pumphouse) in that boat.... But it’s kind of crazy that it’s got to go on the backs of artists who don’t have a ton of dough.”

The Pumphouse sent a letter to companies that regularly rent its theatre space that the rising costs of doing business combined with a public funding decrease has forced it to move toward “a cost-recovery model in order to continue to operate the building.”

The increases come after the Pumphouse announced in December. 2011 that it was suspending its $13 million expansion plans, which would add an additional theatre, a restaurant, an art gallery, rehearsal spaces and a cultural business centre.

“I can understand David is upset that the rates are going up. It costs money to run these buildings,” says Scott McTavish, Pumphouse Theatre’s executive director.

McTavish and van Belle do agree that the problem isn’t really an increase in the Pumphouse’s rates, which are still the lowest among Calgary theatre houses. The problem is the cost of producing live theatre in a town with a chronic lack of performance space.

“Calgary’s always had a chronic lack of, I would say ‘appropriate’ cultural spaces,” says McTavish. “The biggest gap in this city isn’t in the 500-seat range. It’s in the 100, 200 kind of seat range.”

Calgary’s 16 small and mid-size live theatre spaces are booked solid through the season, but that doesn’t mean they’re getting rich. McTavish says the money Pumphouse earns by renting its space for performances falls short of covering its operating costs by $150,000 per year. It relies on government grants and private donations to survive.

Pumphouse’s Victor Mitchell Theatre, which seats a maximum of 315 people, costs approximately $6,900 for a two-week run, including technical support, according to a breakdown of costs sent out by Pumphouse. The same comparison sheet says Theatre Junction Grand, which has a capacity of 384 people, comes in at approximately $43,500. Tod Peterson, managing director of Theatre Junction says that figure is grossly inaccurate and that the actual cost to rent Theatre Junction Grand is approximately $14,576. 

Van Belle says these are costs that most performance groups can’t afford, but McTavish argues prices are already as low as possible.

“They charge what they charge because that’s what it costs to operate the building,” McTavish says.

“I don’t think that the fees are going to come down, it’s just a question of, what is that going to do to our community and our emerging artists,” says van Belle. “I’m not sure what the long-term solution is.” He suggests at least three more low-cost theatre spaces be created in the near future if existing companies are to survive.

Pumphouse’s two theatres host approximately 15 different performance companies annually, leading to some 400 shows a year with 50,000 attendees. Two to three of those productions are created by Ghost River Theatre.

Check out an update here.


Comments: 21

Droid wrote:

This wouldn't be a problem if the Pumphouse actually did something with the money that they are collecting from users for building maintenance. Electrical, plumbing, lighting all in need of repair, but if they do they will have to bring them up to code, so they do nothing but still collect the money. Not surprised to see that Scott misquoted Theatre Junction's prices by almost $30,000. Trying to play the victim and then screwing with the theatre companies who are his customer's has been his game for a long time.

on May 31st, 2012 at 11:04am Report Abuse

LovesMusicals wrote:

Do not believe the grossly misrepresented facts in this article. The Pumphouse is now among the most expensive per seat venues in town. Scott McTavish has openly said the Pumphouse's fundraising efforts should not be used to subsidize amateur theatre. Rates were raised without any consultation with the stakeholders, and little to no effort to find alternate sources of funding. Comparing the Pumphouse to the Grand is like comparing a Super 8 Motel to the Palliser. The Pumphouse is in financial trouble because of years of mismanagement and lack of good governance. Now they want to dump all that on the backs of the non-profit groups that have supported them for the last 40 years. Two years ago they were willing to throw the same groups out on the street when they thought their big renovation was going to happen. Now that they failed to secure their portion of the funding for it, they are punitively raising rates because they know they are the only space in town. The Pumphouse is in trouble entirely because of Scott McTavish's grossly inept management of the society and his board's lack of backbone to make a change. As a result many groups may find themselves without a venue this year, and could well close for good! It's a disgrace what they are doing at the Pumphouse Theatre Society!

on May 31st, 2012 at 1:46pm Report Abuse

smctavish wrote:

Suzy, Great article and as we discussed these are complicated issues and the conversations of the challenges funding Canada's cultural facilities has been ongoing for the last 25yrs and the solutions are not easy to find. I just wanted to clarify one piece of information and add some additional insight that you and I discussed on the phone which may be relevant/helpful to your readers.

Regarding the Theatre Junction (TJ) costs, I must apologize to Todd if our benchmarking document has it listed incorrectly, however we contacted TJ and received the rate quote directly from his staff as we were doing our research.

To put our rate increase into perspective for your readers it costs (excl. administrative and staffing expenses) the Society approx. $13-1400/dy to operate the facility which provides 13hrs of access to renters. That equals $107.69/hr of access:
1) The 2012/13 rate for the Joyce Doolittle Theatre (75 seats) which Ghost River Theatre utilizes is $200 per performance day and $100 per non-performance/rehearsal day (an increase of $50 & $25 respectively from 2011/12 NOT 50%) which equates to $15.38/hr & $7.69/hr of access. Or put another way: 2.66/seat & 1.33/seat respectively.
2) The rate for the Victor Mitchell Theatre (315 seats) is $750 per performance day and $450 per non-performance day. An increase of $150 respectively (again NOT 50%). This equals $57.69/hr & $34.61/hr of access. Or put another way: 2.38/seat & 1.42/seat respectively.

I fully have empathy for Ghost River and all our clients, the business of financing non-profits is a difficult juggling act of funding a three legged stool, each leg represented by a funder - government, the private sector, and earned revenues. If one(or more) falls short then the other two must make up the difference and the success of these companies is a testament to the quality and professionalism of our artists and executives who do this juggle each and every day. In our case, the onus is on the Pumphouse, and me as Executive Director, to run this company in a fiscally responsible manner and ensure that the Pumphouse continues to remain viable and serve the community for the next 40 years and beyond.

I'm not even going to validate the erroneous and misguided comments of Droid with a response other than to say he is a client who isn't happy that rates have increased for the first time since 2008 (5yrs).

on May 31st, 2012 at 2:41pm Report Abuse

Droid wrote:

Not a client Scott, just a person who has to put up with the working conditions and then hear that the companies that I volunteer for will be charged extra for work that won't be done (according to your staff). Also tired of you talking one way to the press and the board and then witnessing your condescension and ignorance when dealing with your clients.

on May 31st, 2012 at 3:06pm Report Abuse

Sathington Willoby wrote:

Paying more for the same old run down building and same old equipment and lighting system...brutal! Give yourself a big raise there, Scotty!

Groups have pulled out of the Victor Mitchell and the reality is that they can't fill those voids and therefore have lost that revenue. That revenue must be made up somehow...so they jack the rates.



on May 31st, 2012 at 3:12pm Report Abuse

LovesMusicals wrote:

I volunteer for several of the theatre companies that perform there, and I am privvy to how badly they are treated when they rent at the Pumphouse.

When putting his rates "into perspective", Scott McTavish conveniently leaves out the doubling (100% increase) of what he calls a "repair and renovation fee" (although nothing ever actually gets repaired or renovated). This used to be a $ 1 fee per patron which has doubled to $ 2 for the coming season.

He has also added a new surcharge if you have more than one show on a particular day ($ 450.00) and new "cleaning" fees of $25 per performance, although groups are required to clean all the space they utilize themselves.

Many groups run matinees and evening shows on weekends, and so this hits them hard.

If you look at a typical Saturday, for example, with a matinee and evening show, which Scott has just told you really isn't a 50% increase over last year, it now costs:

Day Rate - $ 750.00
2nd Show Surcharge - $ 450.00
Cleaning Fee - $ 25.00 x 2 shows = $ 50.00
R&R Fee (280 patrons) = $ 560 x 2 = $ 1220.00

The actual day rate for a Saturday is not $ 750 as Scott would have you believe, but in fact $ 2470.00. Although Scott likes to break that into 5 different fees, that's the true cost to rent the Victor Mitchell.

Scott, since you clearly don't have a calculator handy, let me compare that to last year's rate which would be $ 1160.00. The difference of $1310 is a little more than the $25/50 you are suggesting in your response Scott, shame on you.

Since you clearly don't have a calculator, it actually adds up to a 113% increase on the very same day.

However, if you average it over the week, with your increases to dark days (up $150/day when the theatre isn't even used), it settles down to a handy 75% increase on a weekly basis, for groups that perform two shows on weekends.

For those with just one show, it's a little over 50%.

Shall we now talk about the increased ticketing service fees and the concession revenue you get to factor into your day revenue as well? Or the fact you have a City lease for $ 10.00 a year rent, and only have to pay operating costs for the building?

Under the new rate structure, the Pumphouse Theatre is now demanding 50-60% of ticket revenue, leaving less than half to the non-profit to pay for marketing, sets, props, costumes, music, performance rights and more.

That means production values go down OR your ticket prices go up. Either way it's bad for the patron.

So readers, hopefully now you have a truthful and completely transparent perspective on what the Pumphouse is about to do to non-profit theatre groups in Calgary.

I'm sorry I felt compelled to comment this strongly but reading "The problem isn't really with the increased rates.." in the original article was inflaming! Are you kidding?

These rates are everything to do with the problem. If the non-profit group cannot afford the rate, then the programming ceases and everyone loses. Likewise if the theatre can't pay it's bills and closes, everyone loses.

However, it's far too simplistic to draw a line that concludes the full burden of the theatre's bills should fall on the non-profit groups.

The rates MUST be subsidized to a point where they continue to be accessible to the non-profit groups and the Pumphouse must be able to be sustainable, because there's precious few alternative venues.

What is really needed is some collaboration of groups to come up with some better answers here because the kicker is Scott's announced increases for next season as well.

Of course that assumes he has any customers left to pay them.

on May 31st, 2012 at 4:56pm Report Abuse

LovesMusicals wrote:

Whoops... need to correct that last comment where I said:

"Under the new rate structure, the Pumphouse Theatre is now demanding 50-60% of ticket revenue, leaving less than half to the non-profit to pay for marketing, sets, props, costumes, music, performance rights and more. "

That number is totally dependent on ticket sales, and is probably more like 20 -30% on average. Guess I need to check my own calculator more carefully as well. However, the new rates still need to change =)

on May 31st, 2012 at 10:20pm Report Abuse

LovesMusicals wrote:

Oh and found another typo in my example, the R&R is only 1120, not 1220... so $ 2370 total day rate instead of $ 2470... but still well over 100% increase from last season for that single day and still averaging to 50% - 75% increases to everyone.

on May 31st, 2012 at 10:23pm Report Abuse

inregards wrote:

Firstly, I understand that it can't be very easy being Scott McTavish. That being said, rumour has it that Mr. McTavish pulls in a hefty six-figure salary, so I can't feel that sorry that the majority of the theatre community in Calgary is against him.

Also, since Scott seems to be keeping an eye on this comment thread, can you clear up what happened with Workshop Theatre last season? From an outside perspective (and also thanks to the rumours spread by the community like warm butter on toast) it seems that they were unceremoniously ejected from their fourth and final spot at the Victor without so much as an if-you-please after years and years of loyal dedication. Accurate?

With first hand knowledge of how run-down and decrepit much of the Pumphouse has become (ie lobby bathrooms, greenroom furniture infested with bugs, etc etc), I can't believe the Pumphouse can charge such exorbitant rates with a straight face. There may be more of a story here, but then that story should be told.

Personally, facts aside, I feel the Pumphouse has had its heyday. It's time to start looking into funding for a brand new facility and hire the proper management team to help the fantastic amateur theatre community in Calgary instead of coming up with new ways to hinder them.

on Jun 1st, 2012 at 10:29am Report Abuse

LovesMusicals wrote:

Scott won't likely answer this because if the whole truth on this comes out, it'll show how badly he treats his customers. The short story is he screwed them over by waiting until May/June last season to tell them that they could not have one of their usual performance slots, but they had already announced their season, so they said screw that and went to another venue.

He did it because he decided to create some new programming of his own and so he had to displace someone. Everyone in the community knows this, but they are all scared he will take away their performance slots as well, so no one says anything.

Surprise, surprise... his new programming lost money (just like all his own programming according to his financials)... and so then he cries about how he can't balance his books and wants the remaining clients to pay for his bad choices.

I was told Scott tried to cover it up by saying it was a "mutual decision" wat his AGM, but the truth is he just kicked them out so he could do his own programming instead, and didn't have the decency to give them even a season's notice.

I believe Scott needs to be fired, or do the right thing and resign to make room for someone competent. But look at his record... he's utterly failed to do anything positive with that building since he's been there and his clients essentially hate him.

I mean this is a guy who locks the gate on the overflow parking to his space and makes all the patrons walk an extra block through the snow to get to the theatre, rather than get a volunteer to build a safe walk way.

So where can he go with that kind of history?

My vote is politics... it's the only other place you can do nothing to improve the situation, still make an exorbitant salary, and he's got the misinformation and lying to your face part down pat.

on Jun 1st, 2012 at 11:34am Report Abuse

Stargazer1962 wrote:

Interesting comments. I don't imagine any members of the non-profit community groups draw a salary. Just volunteers with no other agenda than to put on shows.

on Jun 1st, 2012 at 12:11pm Report Abuse

LovesMusicals wrote:

That's a good point actually. Most of the non-profits are run entirely or almost entirely by volunteers, who do stand nothing to gain but to keep their organizations available to people who want to participate in the community.

Paid positions are definitely few and far between.

It makes you wonder why the Pumphouse doesn't utilize any volunteers in their operations?

on Jun 1st, 2012 at 1:45pm Report Abuse

DK78 wrote:

This is certainly not a black and white situation in any regard. Rising costs do make it necessary for rate increases, such is the world we live in. The Pumphouse is an expensive building to run and a strategic change to the business plan is needed to ensure longterm sustainability.

Both sides raise valid points, and it seems that Scott McTavish has not been completely transparent with his clients, and is particularly arrogant when representing his side of the story. However, LovesMusicals, while I have sympathy for your situation, you are coming across as an entitled brat who has a personal vendetta against Mr. McTavish. You seem to have a very slanted and entitled view of the situation and what it will take to solve it. It is unfortunate that this has devolved into a pissing contest between Mr McTavish and some of his more vocal clients.

However, it is painfully obvious that this new rate structure is very unfair to the clients. I think a lot of this could have been prevented with strong management and clear leadership, both of which the Pumphouse have been lacking. The current situation is a knee jerk reaction to big hole that needed to be plugged after the failed Pumphouse expansion project. I think that Pumphouse management has not been transparent with its clients, and Mr. McTavish has the uncanny ability to spin the story in his favor when talking publicly. Futhermore, Pumphouse management has yet to publicly take any accountability for the failure of the expansion project, when it was painfully clear early on that the Pumphouse lacked the personnel and resources to successfully complete the project.

Ultimately, I think the Pumphouse could benefit from a reboot of its internal management structure (including board-of-directors), and a business plan that thinks outside the box.

I think the real question that this raises is where is the City of Calgary in all this? Why doesn't they City take a more vested interest in a cultural space that they own? The Pumphouse is falling apart, and the current management / business structure is simply not sustainable in the long-term. In a city that is sorely lacking viable cultural spaces, particularly performing arts spaces, I can't understand why the City doesn't intervene and give litte bit of attention and TLC to a building that has been a cornerstone of Calgary's culture for the past 40 years.

on Jun 1st, 2012 at 3:52pm Report Abuse

LovesMusicals wrote:

Ouch! Spoiled no, but entitled, I'll give you that one.

From my point of view, the relationship between the Pumphouse and it's clients has always been a symbiotic one, where each benefits through the other's success.

So I do feel entitled to be able to continue a legacy of great theatre experiences that we, the volunteers have built TOGETHER with the Pumphouse AND all the patrons in the COMMUNITY who come out to support the programming.

I don't have a personal vendetta against Scott, I just think he's done a terrible job, and it's evidenced in both the kinds of responses you are seeing here, and the cold hard facts on his balance sheet. Normally, when you do that bad of a job for that long, you get replaced.

The point is that with some thoughtful discourse this could be resolved by working with the City and other potential funders, but when the Pumphouse is unwilling to participate in such discussion, and is resolved to dump this crushing burden squarely on the shoulders of the non-profits, there's little to do but shine a light on it and hope someone, somewhere has the power and courage to force a change.

on Jun 1st, 2012 at 4:42pm Report Abuse

Kendogirl04 wrote:

This article and the comments after are really opening my eyes. For one- I have seen the Pumphouse team work hard with all three levels of government to secure funding for a renovation for the last ten years, only for the city to keep removing the funding agreements. I have seen Scott and the rest of the team and his supporters work long and hard with the city, filling in forms, going to meetings, and do the job he was hired to do. Am I a personal fan or love everyone on the board of the theatre including Scott? No. But tearing down people and adding in rumours of big payouts really does not help the difficult situation. If you're worried - go right to the Society itself and ask how you can help. Or ask for audits, or if you are better at managing money than they are, offer to assist.

What I see here in this article and the responses are people who forgot that this is community theatre- we try to talk and understand each other, and the Pumphouse is part of that team. I want a real solution: why is the Pumphouse society being changed rent on a City of Calgary building in the first place, when sport centres are not? I thought Calgary was the Cultural Capital of Canada this year? Why then is it one of the few venues available for community arts is in such disrepair?

I'm not waiting - as some of you hope that someone will shine a light on community theatre- it has to start with me. And with groups like Calgary ACTS. We need more theatre spaces in this town, we need the Pumphouse and others like it. Are you going to start writing and calling your city alderman? How about the mayor?

Stop trying to break the community spirit that we need right now - get some more info from the Pumphouse and other theatre companies in town, then let your local and provincial government know we need to continue to fund the arts in this province, and why. Then go to your own theatre companies and see what you can do as a group to lessen the rising costs, or put pressure on the government to give more funds, or at least honour the ones they agreed to. And if you've already done that - thank you and keep pushing.

on Jun 1st, 2012 at 5:58pm Report Abuse

Clairvoyant wrote:

A most interesting and enlightening set of exchanges.

"... let your local and provincial government know we need to continue to fund the arts in this province, and why. ..."
Okay, please let me in on the secret: "why"?

Bieber sold out in the blink of an eye ... is his entertainment that much better that what you provide? The Flames sell how many tickets to their fans each year? The Flames provide better entertainment to their fans than you provide to your fans? Oh yes, you have "patrons", not fans. Maybe that is part of the problem? If there are not enough fans, why not? And if there are not enough fans to support you, why are you doing it? Because you want to, & because you think it is important? Why don't most of the people in Calgary think it is important? Why are they willing to pay more for a ticket to Bieber or the Flames? And if most of the people won't pay their own money to see your plays, why should the government take their money and give it to you?

Theatre has a problem, and not just in Calgary. It is no longer relevant to most people. Your problem is not with the Pumphouse, your problem is not with getting more money from governments: your problem is to increase your number of fans, and to increase it dramatically. Otherwise, theatre is like horse riding, mostly of interest to the elite, to the moneyed, and irrelevant to the vast majority.

And if there is no market, maybe, just maybe, there are too many theatre companies? Maybe there are champagne tastes, and beer budgets? Maybe some of the companies should be working deals with the Boards of Education to use school auditoria?

Oh yes, I am not going to the Bieber concert, only twice have I gone to Flames games, and I have been to live theatre in four different venues in Calgary, though not more than once or twice a year.

on Jun 3rd, 2012 at 10:25pm Report Abuse

Suzy Thompson wrote:

Everyone here clearly feels very strongly. I'm writing a followup article this week, so if anyone wishes to speak with me directly, please don't hesitate to do so through my email: sthompson@ffwd.greatwest.ca or call the Fast Forward office at 403-244-2235 ext 233. Help us out guys!

on Jun 4th, 2012 at 11am Report Abuse

Rosmo wrote:

Seems like some of the people commenting have something to say... Why not use the contact page on this website and contact Ms. Thompson? why hide behind a screen name... you want to fix it? speak up.

on Jun 4th, 2012 at 11:03am Report Abuse

gsmith wrote:

When this article came out, Storybook Theatre was in the process of writing an open letter of concern to the Pumphouse Theatre Society. Rather than post in this thread, our response is here if anyone is interested in reading it. Simply put, we think everyone needs to work together on this one to come up with a better solution than massive rate increases.

Link: http://www.storybooktheatre.org/node/114

To Clairvoyant: I get where you are coming from, but the fact is we fund all levels of sport, recreation, art and education in this province and country in an effort to create diverse culture. The level of theatre being performed at the Pumphouse is equivalent funding wise to Bantam hockey, and not comparable to the Flames or Mr. Bieber. This is a facility that has fostered emerging artists, not ones who have reached a level in their career that they can command large ticket prices from huge followings of fans.

I agree to some extent with your idea that we should be responsible for as much fund raising as we can through developing a support base, but the fact is much art in this country would never get off the ground without funding, and enough people in this country and province feel that is important enough to publicly fund.

on Jun 4th, 2012 at 1:59pm Report Abuse

gsmith wrote:

Oh and by the way, you might not be aware, but there would be NO Saddledome for the Flames to play in or for Bieber to perform in if it wasn't built with public funding for the 88 Olympics. Nor would your children be able to go to a wave pool, public ice skate or walk in the park without public funding.

Culture is publicly funded not based on demand but based on the fact that it raises quality of life for all of us.

I'm not a Hockey Fan, but I go to the occasional game, I see a heck of a lot of theatre and my wife makes me walk in the park more than I would like to.

All of these things are made possible through public funding, regardless of "demand" because they are good for you. In your world of demand based support, there would be no hospitals, libraries, or public recreational facilities.

Also, you're fundamentally incorrect in your assertion that the arts are not relevant to most people. The actual fact is most people don't take the time to understand what a large impact the arts have on their lives, but when they do, they are very appreciative of it.


on Jun 4th, 2012 at 2:50pm Report Abuse

OrdinaryJoe wrote:

I'm a community theatre actor and have worked in the Pumphouse theatre for many (MANY) years. By day, I'm also a somewhat successful business person who knows that relationships are the key to success. There is no such thing as an operation that doesn't have problems and it is the relationships that the leadership forms that will ultimately determine how successfully, or not, an organization can navigate through the challenges. What stands out to me the most here isn't the dollars. Although they are shocking, it's clear that the bigger issue is the relationship between the leadership of Pumphouse and the user groups. Costs go up. It happens. But the change management around cost increases is critical. Were the user groups met with and walked through financials? Was the cost increase dealt with proactively and transparently? It doesn't sound that way.

I can tell you that I have been embarrassed to have my friends and family come and see me perform. The carpets are very badly stained and the washrooms barely function. When I read things about making decisions to close overflow parking and whatnot, it makes me wonder where the ultimate customer, the paying theatre goer, is factored into all of this? It's not like there's a stampede of people to see community theatre so it's really critical to the equation to make it as easy and comfortable for people to come. That means clean, safe, convenient, friendly, etc. I'm not sure that the Pumphouse Theatre today is hitting those marks.

on Jun 4th, 2012 at 11pm Report Abuse


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