PORTLAND, Maine — The Portland City Council unanimously approved a new fee Monday targeting large entertainment venues, a policy born directly out of the heated public fight over a proposed Live Nation concert hall.
The ordinance creates a new licensing category for venues holding more than 2,000 people and requires them to pay between 1% and 2% of ticket sales into a newly established Entertainment Sector Trust Fund, which city officials say is intended to support Portland’s arts and entertainment community.
The measure emerged after months of backlash over a proposed 3,300-seat downtown concert venue tied to Live Nation. Critics warned the project could hurt local artists and smaller venues, prompting the council to revisit city law governing large performance halls.
Under the new structure, privately operated venues with 2,000 to 2,499 seats will pay 1% of base ticket sales, venues with 2,500 to 2,999 seats will pay 1.5%, and venues with 3,000 or more seats will pay 2%. The fees are calculated from the base ticket price, before taxes and third-party service charges are added.
City-owned venues are exempt.
Councilors have not finalized how the trust fund will operate, but discussions have included using the money to support local artists and entertainment businesses through improvements to performance and rehearsal spaces, equipment and services, and education and training initiatives.
Before the city imposed a moratorium on new large performance halls, developers behind the Live Nation proposal had agreed to a $1-per-ticket contribution as part of the approval process. Half of that money was slated for Greater Portland Metro bus improvements, with the remainder directed to arts organizations.
Existing venues will not be required to comply until their annual licenses are renewed after the ordinance takes effect on Feb. 4.
The planning board has postponed consideration of the Live Nation project until March, when it is expected to resume business following the expiration of the moratorium.
