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    'West Side Story' Will Return $10 Million Federal Aid

    The Broadway revival received federal aid through the Shuttered Venue Operators Grant program. But the show decided not to reopen, and said it would return the money.Earlier this summer “West Side Story,” the ambitious, avant-garde-tinged revival of the classic musical, got some significant relief: $10 million in federal funding. It was the maximum amount allowed under the new Shuttered Venue Operators Grant initiative, which devoted $16 billion in federal aid to help music clubs, theaters and other live-event businesses recover from the pandemic.But even with that aid in its war chest, the show announced this week that it would not return to Broadway. Asked about the grant on Tuesday, the show said it would give back the money.“‘West Side Story’ will be returning the entirety of the S.V.O.G. grant with the hope that another production will be able to use the funds,” a spokesman for the show, Rick Miramontez, said in a statement.The revival — which was reimagined by the director Ivo van Hove and the choreographer Anne Teresa De Keersmaeker — opened to mixed reviews in February 2020, less than a month before the coronavirus outbreak shut down Broadway. While it was closed, its lead producer, Scott Rudin, announced in April 2021 that he would step back from active roles in his Broadway productions after he came under fire for a long history of abusive behavior; he said that he hoped the show would reopen without him.Federal records showed that Danish San Juan Limited Liability Company, which court records said had been formed by Rudin to operate “West Side Story,” had been approved to receive $10 million under the Shuttered Venue Operators Grant initiative. Documents posted by the Small Business Administration, which runs the grant program, say that the federal funding is intended for “entities that are currently operating or intend to resume full operations.”“West Side Story” had grossed $1.5 million in ticket sales the week before the pandemic closed it down. Miramontez did not respond when asked to elaborate on why the show had decided to close, despite the federal aid.During the long shutdown, and with the prospects for rebounding uncertain, Broadway shows, nightclubs and arts institutions across the city jumped at the prospect of federal relief. This spring, after a long wait and many hiccups, more than 10,000 music clubs, theaters and other live-event businesses across the country got a share of a $16 billion federal grant, records show.The records also show that many of New York’s best known cultural institutions got millions of dollars in funding, as did Broadway musicals like “Hamilton” and “Hadestown,” which plan to open next month.Stacy Cowley contributed reporting. More

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    Some Venue Owners Get a Federal Lifeline. Others Are Told They’re Dead.

    The first applications for the Shuttered Venue Operators Grant program, offering $16 billion in federal aid, were approved.As the emails finally started arriving late last week, some business owners got the good news they had been long awaiting: They would be awarded a piece of a $16 billion federal grant fund intended to preserve music clubs, theaters and other live-event businesses devastated by the pandemic.But other applicants ran into fresh obstacles — including the discovery that the government thinks they’re dead. It was the latest bureaucratic mishap for the Shuttered Venue Operators Grant initiative, an aid program created by Congress late last year that has struggled at nearly every turn to disburse badly needed relief funds.Derek Sitter, the owner of the Volcanic Theater Pub, a 250-capacity music and performance venue in Bend, Ore., was at home on Saturday watching a British soccer game when an alert popped up on his phone: “Congratulations,” ran the subject line of an email from the Small Business Administration, which manages the grant program.Mr. Sitter ran outside to tell his wife and daughter the news, with tears swelling in his eyes. “My heart rate increased,” he recalled in an interview. “But it was a good increase.”The Volcanic was awarded about $140,000, Mr. Sitter said, though the funds have not yet arrived. (The size of the grant is pegged at 45 percent of a venue’s gross revenue from 2019.) Just how many venues have learned that their applications have been approved is unclear, but members of the network of small venues — which became a tightly connected hive during the pandemic — say they have heard of only a few so far. The Small Business Administration has not released details on how many claims it has approved.Bobby McKey’s, a piano bar near Washington, is stuck in bureaucratic limbo. Bob Hansan, the venue’s managing partner, said that his application was stalled because the government thinks he is dead. Charles King/C King MediaOther applicants got grimmer news. Bob Hansan, the managing partner of Bobby McKey’s, a piano bar near Washington, received a cryptic email Tuesday afternoon that began: “Your name appears on the Do Not Pay list with the Match Source DMF.”A few minutes of frantic Googling revealed that was a reference to the government’s Death Master File, a record of more than 83 million people whose deaths have been reported to the Social Security Administration.Mr. Hansan immediately called Social Security’s headquarters, which referred him to his local office, which told Mr. Hansan that they could find no record of his name anywhere on the death list. The office agreed to send him a form affirming that he’s alive, but the document can only be sent by mail, he was told — a process he worries will be slow.“It’s this continual drip-drop of delays,” he said.Michael Swier, the founder of the Bowery Ballroom and the Mercury Lounge in New York — and a prominent figure in the independent music world — also received notification early Wednesday that he was considered dead, and said that he was beside himself trying to understand how to correct the error.“What do I do? What kind of proof do they need?” Mr. Swier said. “Can I say over the phone, ‘It’s me’?”Representatives of the Small Business Administration did not answer questions about the erroneous death data.Michael Swier, the founder of the Bowery Ballroom and the Mercury Lounge in New York, was told he was considered dead. (He is alive.) “What do I do?” he asked. “What kind of proof do they need?”Michal Czerwonka for The New York TimesThe glitches were the latest to bedevil the program, which has suffered many delays, including a complete failure of its online system on the day it tried to start taking applications. (The application system finally opened in late April.)Some 13,000 people applied, seeking a total of $11 billion. The Small Business Administration has not yet released details on how many it has approved.In Facebook groups and on Twitter, frantic business owners have been swapping tips and trying to glean where in the application process their own claim might be.Some venues are beginning to get good news.Hugh Hallinan, the executive producer of Downtown Cabaret Theater, a nonprofit venue in Bridgeport, Conn., spent weeks checking the S.B.A.’s grant portal each day, and last Thursday learned that his theater had been approved for a $541,000 grant.On Tuesday the theater held a news conference with Senator Richard Blumenthal of Connecticut.“We’ve been in Bridgeport for 41 years, and we’ve never gotten recognition like this,” Mr. Hallinan said in an interview. “I just thought, ‘We’re going to soak it all up right now. We’re going to bask in it.’”Downtown Cabaret came close to shutting down last year. Downtown Cabaret Theater, in Bridgeport, Conn., which came close to shutting down, learned that it had been approved for a $541,000 grant. Richard Pettibone“If all patrons who had tickets called in and said, ‘I need a refund,’ it was game-over time,” Mr. Hallinan said. Instead, many opted for a credit on their account, and about a third of donated the cost of their tickets back to the venue, Mr. Hallinan said.The funding has not yet started flowing to Broadway. A spokeswoman for the Broadway League, a trade organization representing producers and theater owners, said that none of its members had notified the group about receiving application approvals. Charlotte St. Martin, the group’s president, had said last month that officials had told the group that money would start coming in by the end of May, but that deadline has now passed.And several major performing arts organizations in New York City that are planning summer or fall reopenings are also still waiting. Carnegie Hall, the New York Philharmonic, New York City Ballet, American Ballet Theater, the Public Theater and the Metropolitan Opera have not yet heard. Many will not be eligible until a later round of awards.Mr. Sitter, in Oregon, said he had no idea why the Volcanic got its award so early. Like many applicants, it had lost at least 90 percent of its revenue during the pandemic, which qualified the Volcanic for the first round of grants. Others who lost less will be eligible for awards in mid- to late June.The Volcanic received some federal money last year from an earlier round of federal pandemic relief. That got it through 2020, Mr. Sitter said. But by last month, the Volcanic was down to its last few thousand dollars, not enough to cover its rent and monthly bills for June, Mr. Sitter said. He was considering whether to sell or shut it down.With the shuttered venue grant, the Volcanic can stay open until next year, when Mr. Sitter expects its pipeline of shows to be back to normal. This weekend, it is planning to put on its first shows since last summer, at 50 percent capacity.“There’s certainly not a lot of profit going to be made here,” Mr. Sitter said. “This is simply to lift the spirits of people, to say, ‘We can kind of do this, we’re doing good, and there is a way out.’” More

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    Cultural Institutions Still Waiting for $16 Billion in Federal Aid

    The Shuttered Venue Operators Grant program has been marred by delays, but officials say some applicants could learn next week if they have been approved for aid.Five months after Congress approved a $16 billion federal aid program to help live performance venues and cultural institutions survive the pandemic, more than 12,000 applicants have sought help but no money has been disbursed yet.But some venue owners, theater producers and museum officials — eager, and in cases desperate, for financial help after more than a year of steep pandemic losses — could soon learn if help is on the way. The Small Business Administration, which runs the program, said in a statement Friday that the highest-priority applicants — those that lost 90 percent of their revenue compared to the prior year — are tentatively scheduled to receive notices about the fate of their applications beginning next week.But some business owners are wary of the promise after weeks of delay and confusion over the initiative, the Shuttered Venue Operators Grant, which many had cheered as a lifeline. Each day applicants vent their frustrations on an online forum, regularly polling one another on whether any applications have yet been officially approved or rejected.“They’re hanging on by a thread right now,” said Meredith Lynsey Schade, a theater producer and nonprofit leader who helps answer questions from grant applicants on the forum. “They’re on life support, and every day they’re told, ‘just a little bit longer.’”At a news conference on Friday in Times Square, not far from the TKTS booth that sells discounted Broadway tickets, Senator Chuck Schumer and Broadway industry leaders celebrated the program as a savior for the hard-hit performing arts sector.“Right now $16 billion is on the way to the theater district, our theater industry, our live venues and our cultural institutions in New York and across the country,” Senator Schumer said. He did not address the delays that have hampered the application process or the frustrations of those awaiting relief.In response to a question about the program’s persistent delays, a spokesman for Senator Schumer, Angelo Roefaro, said “We are urging an ASAP release of these federal dollars.”Senator Chuck Schumer spoke about the promised aid at a news conference on Friday with Broadway officials and performers.Sara Krulwich/The New York TimesNow that more theaters, concert halls and nightclubs are getting the green light to reopen across the country, new expenses are starting to mount, even as organizations try to figure out how to handle the losses of the past year.Forty Broadway shows are expected to open during the 2021-22 season, Mr. Schumer said at the news conference, some of them as early as September. In recent days, tickets have gone on sale for 19 shows, he said.Grant applications from live venue operators or promoters make up more than 40 percent of the 12,213 funding applications that were submitted as of earlier this week, according to data from the Small Business Association; theatrical producers make up about 7 percent of that total. The program offers grants worth 45 percent of applicants’ prepandemic gross earned annual revenue, up to $10 million.As Broadway shows prepare for reopenings beginning in September, producers and theater owners are among the applicants waiting anxiously for funding. Broadway applicants will most likely be considered in the highest priority window to receive the grant funds because they generally lost the vast majority of their revenue when theaters shut down, said Ms. Schade, who was a producer on two Broadway shows that were running at the start of the shutdown, “Hadestown” and “The Inheritance.”Charlotte St. Martin, the president of the Broadway League, a trade organization representing producers and theater owners, said in an interview that the Small Business Administration had told the group that money would start coming in by the end of the month, and that the industry understands “how government works.” Ms. St. Martin said that the agency had to take some time to familiarize itself with the Broadway industry.“If we don’t get some money soon I may have different things to say,” she said, “but I think they’re being extremely cooperative and supportive of our industry and trying to learn it while also handing out money.”The application process for the grant money has been chaotic from the start: On what was supposed to have been day one for people to submit applications, the online system broke down and the agency’s inspector general sent out an alert warning of “serious concerns” with the program’s waste and fraud controls.In its statement on Friday, the Small Business Administration acknowledged that there continues to be “some fine-tuning of technical components of the program” but said the agency is “committed to quickly and efficiently” disbursing funds to venues and organizations in need. More

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    Cultural Venues’ Quest for Billions in Federal Aid Is Halted by Glitch

    On the first day nightclubs, movie theaters and other arts organizations hurt by the pandemic could apply for $16 billion in federal aid, the system malfunctioned. No applications got through. As the government prepared on Thursday to start taking applications for a $16 billion relief fund for music clubs, theaters and other live event businesses, thousands of desperate applicants waited eagerly to submit their paperwork right at noon, when the system was scheduled to open.And then they waited. And waited. Nearly four hours later, the system was still not working at all, sending applicants into spasms of anxiety.“This is an absolute disaster,” Eric Sosa, the owner of C’mon Everybody, a club in Brooklyn, tweeted at the agency. Shortly after 4 p.m., the Small Business Administration — which runs the initiative, the Shuttered Venue Operators Grant program — abandoned its effort to salvage the broken system and shut down it down for the day. No applications were processed. “Technical issues arose despite multiple successful tests of the application process,” Andrea Roebker, an agency spokeswoman, said in a written statement. After discussions with the vendors that built the system, the agency decided “to shut down the portal to ensure fair and equal access once reopened, since this is first-come, first-serve,” Ms. Roebker said. “This decision was not made lightly as we understand the need to get relief quickly to this hard-hit industry.”In social media forums and Zoom calls, frustrated applicants vented and shared their anger. “It’s hard to keep hearing ‘help is on the way’ and then not be able to apply,” said Tom Weyman, the director of programing at the Columbus Theater in Providence, R.I. “I don’t think any of us thought the application process would be totally smooth, but this is life and death for our venues.” The meltdown echoed problems the agency had last year in taking applications for the Paycheck Protection Program, which it also oversees. When that program opened, the agency’s overwhelmed systems seized up — and the same thing happened again, weeks later, when a new round of funding became available. Applicants for the grant program were incredulous that the agency was not better prepared — especially because the funds are to be distributed based on the order in which people apply. Those who get their applications in early have the best chance of getting aid before the money runs out. “It pits venues against each other because we’re all mad-dashing for this,” Mr. Sosa, the Brooklyn club owner, said in an interview. “And it shouldn’t be that way. We’re all a community.” For businesses like Crowbar, a music club in Tampa, Fla., getting a grant is a matter of survival. Tom DeGeorge, Crowbar’s primary owner, took out more than $200,000 in personal loans to keep the business afloat after it shut down last year, including one using its liquor license as collateral.More than a year later, the club has reopened with a smattering of events at reduced capacities, but the business still operates in the red, Mr. DeGeorge said.“We lost an entire year of concerts in the blink of an eye, which was close to $1 million in revenue,” Mr. DeGeorge said. “That’s why we need this grant so badly.”The aid was authorized by Congress late last year after months of lobbying by an ad hoc coalition of music venues and other groups that warned of the loss of an entire sector of the arts economy.For music venues in particular, the last year has been a scramble to remain afloat, with the proprietors of local clubs running crowdfunding campaigns, selling T-shirts and racking their brains for any creative way to raise funds. For the holidays, the Subterranean club in Chicago, for example, agreed to place the names of patrons on its marquee for donations of $250 or more.“It’s been the busiest year,” Robert Gomez, the primary owner of Subterranean, said in an interview. “But it’s all been about, ‘Where am I going to get funding from?’”As it struggled to make ends meet, the Chicago club Subterranean decided to place the names of patrons on the club’s marquee for donations of $250 or more. Robert Gomez, its primary owner, said, the year has “all been about, ‘Where am I going to get funding from?’”Lyndon French for The New York TimesEven before Thursday’s fiasco, the opening of the shuttered venue program was riddled with complexity and confusion.The Small Business Administration posted a 58-page guide for applicants late Wednesday night, then quickly took it offline. A revised version of the guide was posted just minutes before the portal opened on Thursday. (An agency spokeswoman said the guide had to be updated to reflect “some last-minute system changes.”)And less than two hours before the agency was supposed to start accepting applications, its inspector general sent out an alert warning of “serious concerns” with the program’s waste and fraud controls. The Small Business Administration’s current audit plan “exposes billions of dollars to potential misuse of funds,” the inspector general wrote in a report. Successful applicants will receive a grant equal to 45 percent of their gross earned revenue from 2019, up to $10 million. Those who lost 90 percent of their revenue (compared to the prior year) after the coronavirus pandemic took hold will have a 14-day priority window for receiving the money, followed by another 14-day period for those who lost 70 percent or more. If any funds remain after that, they will then go to applicants who had a 25 percent sales loss in at least one quarter of 2020. Venues owned by large corporations, like Live Nation or AEG, are not eligible.The application process is extensive, with detailed questions about venues’ budgets, staff and equipment.“They want to make sure you’re not just setting up a piano in the corner of an Italian restaurant and calling yourself a music venue,” said Blayne Tucker, a lawyer for several music spaces in Texas.Technical glitches marred the beginning of the first day of submitting applications for the grant program. Empty chairs were seen in Crowbar.Zack Wittman for The New York TimesEven with the grants, music venues may be facing many dry months before touring and live events return at anything like prepandemic levels. The grant program also offers help for Broadway theaters, performing arts centers and even zoos, which share many of the same economic struggles.The Pablo Center at the Confluence, in Eau Claire, Wis., for example, was able to raise about $1 million from donations and grants during the pandemic, yet is still $1.2 million short on its annual fixed operating expenses, said Jason Jon Anderson, its executive director.“By the time we open again, October 2021 at the earliest, we will have been shuttered longer than we had been open,” he added. (The center opened in 2018, at a cost of $60 million.)The thousands of small clubs that dot the national concert map lack access to major donors and, in many cases, have been surviving on fumes for months.Stephen Chilton, the owner of the 300-capacity Rebel Lounge in Phoenix, said he had taken out “a few hundred thousand” in loans to keep the club afloat. In October, it reopened with a pop-up coffee shop inside, and the club hosts some events, like trivia contests and open mic shows.“We’re losing a lot less than we were losing when we were completely closed,” Mr. Chilton said, “but it’s not making up for the lost revenue from doing events.”The Rebel Lounge hopes that a grant will help it survive until it can bring back a full complement of concerts. And if its application is not successful?“There is no Plan B,” Mr. Chilton said. More