Far from being a taxpayer burden, Fresno’s purchase of Tower Theatre makes economic sense
Diane Pearce claims that the city of Fresno’s purchase of the Tower Theatre is “foolish spending” in her May 7 op-ed “Fresno council’s deal to buy Tower Theatre the latest property mistake put on taxpayers.” But Pearce couldn’t be more wrong. Buying the Tower Theatre is a wise and actually quite modest investment in the well-being of all of Fresno.
I’m not saying this just for sentimental reasons — saving the Tower Theatre makes cold, hard economic sense. This is an investment that will pay off in improved economic development and can even make the city a profit.
First off, the $6.5 million the city is paying for the Tower Theatre is microscopic compared to the total city budget. In Fresno’s budget for fiscal year 2021-22, the city’s total expenditures add up to $1.45 billion dollars. Buying the Tower Theatre would be just 0.4% of the annual city expenditures.
The price of the Tower Theatre is dwarfed by what the city spends annually on police ($207 million), city planning ($95 million) and even parks and recreation ($58 million). According to the agenda for the May 12 city council meeting, the city will pay $6.5 million for 14 months of animal control services. I don’t know about you, but I think saving one of the city’s most historic landmarks is worth the equivalent of 14 months of dog-catching.
But the city’s purchase of the Tower Theatre isn’t just about saving one building — it’s about preserving the economy of one of the most vibrant neighborhoods in the city. The Tower Theatre is the keystone of the Tower District’s business community of live music venues, theaters, restaurants, nightclubs and bars.
Many people aren’t used to thinking of arts and entertainment as economic engines, but when you look at the actual dollars and cents, live entertainment creates a huge stimulus in local economies. According to the National Independent Venue Association, every dollar consumers spend on live entertainment generates $12 in economic activity within the local community. Ticket prices at the Tower Theatre range from $40 to $70, so each audience member at a Tower Theatre is creating $480 to $840 worth of economic value for the city. Even a half-full house at the 700-seat Tower Theatre can produce $175,000 of economic stimulus in one night.
Live entertainment is not a frivolity. It is an essential component of our local economy. The Tower Theatre and the live music venues and nightclubs that the theater nurtures aren’t just pleasant amenities, but serious businesses that annually generate millions of dollars of economic activity, not to mention millions of dollars in city tax revenue.
Maintaining the Tower Theatre as a working theater is key to keeping the Tower District economy humming. The Tower Theatre attracts a wide variety of audiences from throughout the Central Valley, who in turn patronize local clubs, music venues, restaurants and bars. A church cannot re-create the economic function of a working theater. Churches do not promote nightlife or foot traffic.
The Tower Theatre can also create a direct revenue source for the city. The Tower Theatre is not a useless boondoggle, but a working business. Under competent management, the Tower Theatre can expand its offerings, increase bookings and make a profit that will cover the city’s initial investment and generate additional income.
By purchasing the Tower Theatre, the city has acquired a profit-making business and preserved a vital sector of the local economy, all for an outlay of just 0.4% of the city’s annual expenditures. This is one of the smartest investments the city of Fresno has ever done.
This story was originally published May 13, 2022 at 5:00 AM.