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The decision to give UGL Unicco 30-days notice came on a 3-1 vote and prompted longtime Councilman and Mayor Pro Tem Reggie Baird to resign.
The vote came after the council emerged from a long closed session.
Meeting in public, Councilman Jon Baker made the motion to give the company the city hired in November to run The Roanoke Rapids Theatre 30 days to leave.
Baker, E.C. Bobbitt Jr. and Carl Ferebee approved the measure. Baird voted against the firing and then said, “I'm not in favor of the way this is headed” and tendered his resignation from the council.
Mayor Drewery Beale asked Baird to reconsider and Ferebee told him there were other things besides the theater issue to deal with.
“My family has gone through this long enough,” Baird responded, followed by a plea from Bobbitt for him to stay.
“I sure hate this happened,” Beale stated.
Baird had no immediate comment as he left the Lloyd Andrews City Meeting Hall, but said this morning he was through.
The vote will end Unicco's involvement in the theater, which started in November after the city renegotiated its contract with Randy Parton, the headlining act at the theater that once bore his name.
In a press release issued this morning, city officials said council felt it was in its best interest to consider other options for management and operations of the theater.
According to a summary of theater operations from Dec. 24 to Jan. 20, revenue collected by Unicco was $82,465.71, while expenditures were $208,885.92, along with a management fee of $20,888.59 paid to the company.
That equates to $229,774.51 in total expenditures, leaving a loss of $147,308.80.
The statement notes there were no payments due to Moonlight Bandit Productions LLC and no lease payment was made to the debt service reserve account. If the debt service payment of $41,192.37 had been made, the loss would have been $188,501.17.
Unicco officials have stated things were running fine since they took over operation of the theater, saying morale is better and employees now have guidance and know what they are supposed to be doing.
In an interview last week, Unicco Senior Director for Business Development Jim Craig said attendance was up.
Under Parton, average attendance was about 174 patrons per show. An analysis of theater attendance from when Unicco took over operations on Nov. 26 through the Jan. 26 Blood, Sweat and Tears event shows the theater has been averaging about 380, Craig said last week, a 220 percent increase. He also told the paper expenses have decreased by approximately $100,000 a month.
The reason for the apparent differences in the revenue reports and the city's exact concerns about the projections for the theater's future finances were unavailable at presstime today. Tuesday night, Beale simply responded that in the closed session, a majority of the council felt it “would be in the best interest of the city (to) go and initiate a 30-day notice.”
Asked what the next step would be, Beale said, “We're going to move forward to the best of our ability and start a new process.”
The city planned to notify Unicco of the decision in the morning, the mayor said. Craig did not immediately return a phone call placed this morning.
Asked if the notice to Unicco also put theater General Manager Rick Reno, who came onboard in January, on notice, Beale would only say that city officials planned to talk with theater employees this morning.
This morning, Beale confirmed the statements he made following the meeting that the theater wasn't where the city thought it should be in terms of revenue and attendance.
The mayor said the city determined that it wanted to see if the same duties that Unicco was performing could be done with less expense.
He declined to discuss speculation the city's decision had anything to do with a bonus reportedly given Reno, who is considered a Unicco employee, that was not accurately reflected in the theater books. Baird said the bonus issue has not been confirmed.
Beale said shows booked during Unicco's tenure will continue and the theater will not close. “We just ask the people of the city to stay with us. This hasn't been a mistake. The new hotel and RV park are going to generate new tax values,” he said, adding, “Things have not developed the way we would like it to. It just takes time.”
City Attorney Gilbert Chichester confirmed this morning all shows booked will continue as planned. “And of course Unicco will remain on the job until the expiration of the 30-day notice. The city will bring onboard others properly qualified to perform (the same job as Unicco).”
Chichester said there was no contract between the city and Unicco, only a letter of intent which set out the manner in which the two would operate and that they would eventually reach a formal agreement.
“I believe both sides worked toward putting together a final agreement,” he said.
The attorney said the city prepared a proposed contract and submitted it to Unicco. “City council after reviewing the operation and expenses felt that they would not be able to reach an agreement that would be favorable to the city and the citizens.”
Asked about the $40,000 bonus said to be given to Reno, Chichester said, “The city looked at all of the expenses as well as all the income.”
Ferebee said the city will move forward with the theater project. “We have no choice at this point.”
He maintained the problems the city has had with the theater do not mean it was a bad idea from the start. “Not to me, not to anyone else who is connected with it.”
Ferebee said the theater has done some good for the community in terms of jobs and other economic development such as the Hilton Garden Inn Hotel and a restaurant and clothing boutique which will be built in the Carolina Crossroads Music & Entertainment District.
Bobbitt had no comment, saying what the other council members interviewed said was sufficient.
Baird, who has served on city council for 14 years, will be missed, Beale said. “I hate Mr. Baird saw fit to resign. He had a lot of years of service to the city.”
The ending of the Unicco agreement and Baird's resignation came on the same night council approved setting up the bylaws of a theater advisory committee and also added a $2 service fee to theater tickets sold online. Council opted to not charge a fee for walk-in ticket sales since the majority of those are purchased by local people.
City Manager Phyllis Lee said the revenue from the fee could be set aside for repairs or be used for debt service.
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