Live theaters will soon find it easier to do business in Chicago, if legislation is passed as expected by Chicago City Council at today's meeting. The new legislation, introduced by Ald. Helen Shiller (46th), authorizes establishment of a brand new Performing Arts Venue (PAV) license specifically for live theaters. The legislation cuts much of the red tape that accompanied application for the current Public Place of Amusement (PPA) license and expands the areas where theater venues may locate within the city. If it passes, it becomes effective in 30 days.
The PAV task force was formed in November 2003 at the request of the League, after several smaller theaters in Chicago were temporarily shut down following surprise inspections by the Department of Revenue. The task force first cooperatively resolved compliance problems and reopened the affected theaters, then tackled larger issues such as refining the license application process and clarifying zoning code issues specific to theaters, while still maintaining life safety.
The PAV license carries a shorter application form, being approximately six pages. The PPA application was more than 20 pages when discussions first began.
In addition, the new license brings theaters into more neighborhoods, by allowing any theater up to 500 seats (in aggregate) to locate within 125 feet of a residential zone; currently, only non-profits with 300 seats or less can locate in these zones.
The PAV license cuts red tape, as only limited back-up documents are required to apply for a PAV. Extensive police background checks, complicated financial documents and other cumbersome supplemental materials will no longer be required. PAVs will be required to report management changes to the city within 60 days instead of the current 10 days.
Also, the new license saves applicants time. The applications will be available on the members-only section of the League of Chicago Theatres' Web site, chicagoplays.com, and on the Department of Business Affairs' Web site, cityofchicago.org. Previously, applications were available in person only at the Department of Revenue and Department of Business Affairs and Licensing. Theaters will also benefit from a new online application and renewal process
The PAV lowers fees. New legislation calls for a flat fee structure of $55 for all theaters up to 500 seats. Under the existing PPA, fees are $1 multiplied by the total number of seats. Non-profit theaters still retain the option to request Aldermanic waiver of fees.
The proposed licensing arrangement doesn't sweat the small stuff. Theaters under 100 seats that don't have a mandatory admission charge won't need to obtain a PAV, although they still require an occupancy card. Theaters in this category will be allowed to collect voluntary
donations.
All PAV applications will be handled by the city's new Department of Business Affairs and Licensing, not the Department of Revenue. Business Affairs will be the sole contact for PAV information, and will assign dedicated caseworkers to usher through theaters' initial PAV applications. Moreover, the Chicago Department of Buildings has agreed to offer "pre-inspections" of venues—to determine the extent and potential cost of rectifying building code violations—before a company signs a lease.
The PAV is a new type of Public Place of Amusement license, and venues are still subject to general safety and building code provisions as they pertain to this category. Theaters with 500 seats or more were not the focus of this legislation and will continue to apply for the standard PPA license.
Further, theaters of all sizes must still pass a rigorous city inspection after applying for their license, whether it is a PAV or a PPA, and theaters that require a liquor license will be subject to all current regulations and requirements, regardless of whether they qualify as a PAV.
According to the League of Chicago Theatres, Chicago's live theater industry is a powerful and growing economic force, with an estimated total economic impact of $347 million in 2002, more than double its economic impact in 1996 (the last years for which such figures are available). The League estimates Chicago's live theater industry boasts more than 200 theater companies at any one time, which present more than 500 total productions annually. |