Duluth ponders what to do with Red Clay Theatre

Now there is little to identify the property as a theater: no grand marquee, no box office, no red carpet. Just a blue tarp stretching across its brick façade and some metal tubing jutting out from a port-o-potty inside.

Facing thousands  in quick-fixes and a longer-term decision, some in this Gwinnett city of 26,000 are beginning to reassess the theater's value and their role in its operation.

“As far as the arts are concerned,” said longtime resident Wallace Lail, 71, “I have no problem with it. I think it's a vital part of the community. That being said, I'm not so sure it's government's prerogative or necessity to provide. I don't think the taxpayers of the city ought to subsidize it."

Yet officials, who raised property taxes this year to meet a projected $2.1 million budget shortfall, have no plan to give up on the Red Clay Theatre, noting its cultural and economic value -- and its potential -- for the historic district.

"We have a lot of money put into the theater," said Downtown Development Authority member Kathryn Willis. "It would be crazy to throw that all away. I do think it could succeed."

Immediate plans include spending $15,000 to replace bathrooms lost in recent demolition and an undetermined amount to replace some theater seats with poor views of the stage.

Beyond those fixes, the DDA is even considering a plan to spend up to $450,000 more to add up to 3,000 square feet to the 16,000-square-foot space to be used for an art gallery, welcome center and reception area.

What it needs, and means

Since April, the city has spent $52,000 to tear down two sections of what was the 20,000-square-foot theater after finding mold growth following last September's historic rains, as well as rotting wood and a deteriorating roof. The building's phone system, box office and bathrooms were lost in the demolition.

What's left is the 1994 stage-and-seating area. Recently, its air-conditioning units were stolen, and in May an overflowing detention pond flooded the basement with 2 inches of mud and water. Until the city builds new restrooms, patrons will have to trek to the basement to share facilities with professional actors. A port-o-potty for handicapped individuals sits off to the side of the stage.

"She's a girl with a bad reputation, but she's not so far gone," said Jeffrey Scott Bailey, artistic director of the Red Phoenix Theatre Co., currently producing shows at the venue. "The space is filled with amazing sound and decent lighting ... and the bones of the building are strong. It just needs leadership."

From 2006 through 2010, the city leased the facility to theater troupes and collected the rent. But in February, the city assumed a strong landlord role, controlling the calendar and approving bookings.

This is the first year a budget was created for the operations of Red Clay, City Clerk Teresa Lynn said. Early 2011 budget projections show that Duluth will spend $46,000 to operate the venue, but it expects to collect only about $40,000 in rental revenue and ticket fees.

"You've got a turtle there," said longtime business owner Wayne Shirey, whose United Tool Rental shop sits 220 feet away from Red Clay. "They should just tear down the thing and turn it into a parking lot. The town needs parking."

But theater supporters believe the venue is important to the community's vibrancy and health beyond the monetary payback. The City Council noted that its mission isn't to generate a profit but to provide a cultural outlet while energizing the downtown with foot traffic and commerce.

Councilwoman Marsha Anderson Bomar said despite its problems, the theater is an asset, and the city never intended to recoup the capital investment.

"No theater is ever established for that purpose," Bomar said. "The theater is part of an economic development engine. It stimulates activity."

A study released in 2007 by Americans for the Arts showed that nationally the nonprofit arts and culture industry generates $166.2 billion in economic activity every year. The total includes $63.1 billion in spending by organizations and an additional $103.1 billion in event-related spending by their audiences.

Chris McGahee, the city's economic development manager, said Red Clay is an attraction that has some drawing power.

"People coming to an event want to do something before the event," McGahee said. "They'll ... get some eats, do some shopping, tour the Town Green. They'll do the same thing after the event."

Henry Harrington, manager of Steverino's pizzeria across from the theater, said he sees a 20 percent jump in business each time there's a production.

"It pumps it up, no doubt," Harrington said. "I always welcome keeping a full house over there. That has not always been the case."

Crowd conundrum

Indeed, opponents argue the theater has had trouble drawing consistent crowds since the city bought the former church on Main Street.

City Councilman Billy Jones said he would support the theater if it had a steady following.

As an example, he pointed to a recent production of Ken Ludwig's comedy "Moon Over Buffalo." From June 10 to 26, the production had 10 showings, according to a ticketing report. The average attendance was 16 (the theater seats 267). Its peak night was June 26, when it had 96 patrons, the report said.

But McGahee said that ticket report is incomplete and does not include door sales. While he could not say how many tickets were sold, he noted the new theater company had little time to market the show while dealing with the building's physical shortcomings.

"The challenge to any privately owned theater company is that your facility has been rocked like Noah's Ark," McGahee said. "It's had the plague thrown at it."

Whatever the reasons behind the low attendance, Jones argues the city would be better off selling the property to be converted into a restaurant or nightclub to attract 30-somethings. Duluth has a median age of 34.8.

"I don't think [a theater is] geared to a young enough crowd," Jones said. "The theater business may not be the place to go."

Supporters disagree, pointing to the success of such Broadway musicals as "Wicked" and "Legally Blonde."

"It's preposterous that you have to get old to like theater," said Bailey, of the Red Phoenix Theater. "It's theater, it's not lawn bowling."

The loss of Aurora

Some locals contend the Red Clay Theatre never had a chance – not after the Aurora Theatre troupe left Duluth's cultural scene in 2006.

For 10 years, Aurora had been an institution in Duluth. Regarded as an economic gem with a fanatical following, it operated out of former hardware store in the historic district.

Duluth bought the building housing Calvary Christian Church, speculating in the hope that Aurora would occupy the space. Then Lawrenceville came along and courted the company for a starring role in its downtown revitalization. A tug-of-war ensued and the county seat won.

"When we lost Aurora, we lost the people and the name recognition," Bomar said. "Had they stayed, there would have been continuity. There would have been experienced individuals running it. We ... have not had the right people managing it."

In 2006, Duluth picked Shelly Howard and partner Mark Pitt to lease and manage the theater. A year later, Pitt backed out when attendance dropped and the venue struggled to make ends meet.

"People couldn't afford gas or food, so they certainly couldn’t afford a theater ticket," Howard said recently.

Because Howard had opted to run the theater as a for-profit venture, the city could do little to market the venue. But the city failed to support the theater in other ways, including delaying repairs to the leaking roof, Howard said.

In addition, in the beginning all members of the City Council had season tickets. In 2008, only two did, she said.

Howard announced she was leaving Oct. 14, 2008. The city handed the reins to McGahee. It was his first day on the job as economic development manager.

At the time, the city had planned to raze a sliver of the building closest to Ga. 120 to widen the road. Instead of hiring another in-residence troupe, the city tapped Button Theater as the interim management company while officials stabilized the building.

Then came last fall's floods and partial demolition in the spring.

Meanwhile, the shows went on, and the city was back in charge of day-to-day operations.

Local architect and DDA member Rob Ponder acknowledges that Red Clay hasn't lived up to expectations, but he maintains it was handicapped from the get-go.

"Nobody has denied … that Red Clay hasn't brought in the foot traffic people were hoping for downtown," Ponder said. "The building is structurally sound and safe. My vote, and the DDA's vote, is not to give up on it yet."

History of a building

1905-’10: First section of the Main Street building is constructed. It houses, among other businesses, a cotton exchange.

Early 1950s: Second section is built, which houses a grocery store.

1988: Calvary Christian Fellowship rents the building and converts it into a church. Calvary buys the building in the early '90s.

1997: The church breaks ground on a sanctuary and a basement family life center addition . It is later finished with a brick facade. Total square footage is now 20,000.

2004: Church outgrows site. Duluth buys the property for $1.8 million. The city hopes the Aurora Theatre troupe will move in.

2006: After 10 years in Duluth, the Aurora Theater is lured away after a months-long bidding war between Lawrenceville and Duluth.

May to October 2006: The theater is converted from a church into a theater for $800,000.

Oct. 11, 2006: Red Clay Productions, under the management of actor Mark Pitt and businesswoman Shelly Howard, holds its first production in the new Red Clay Theatre.

December 2007: Pitt decides to leave as the theater struggles financially. Howard announces she’s pulling out in October. In 2008, Button Theatre is hired to manage the theater.

September 2009: Historic deluge floods two sections of the building. In October, plans to demolish a portion of the Red Clay Theatre — in the works for years as part of a plan to widen Ga. 120 — are put on hold after the building’s innards are discovered covered in mold.

February 2010: City takes over management to deal with future demolition and structural issues.

March 2010: Red Phoenix Theater Co. starts producing shows out of Red Clay, but is not the resident theater company. City is running the show.

April 2010: Duluth knocks down the 1950s-era portion of the theater and then the early 1900s section after determining it can’t be salvaged. In May, an overflowing detention pond floods the basement of the remaining section.

June 2010: Downtown Development Authority begins process to determine redevelopment of site cleared by demolition.

August 2010: DDA will hold a public hearing to get input on a possible proposal to build onto the structure.

December 2010: Duluth to pay off the building.

Source: City of Duluth, Duluth Historical Society