Tulare Utilizes Reserves for Adventist Health Amphitheater Growth

The City of Tulare is implementing a plan to temporarily use general fund reserves to support the operational costs of the newly opened Adventist Health Amphitheater at Zumwalt Park. This initiative, announced in July 2023, aims to stabilize the venue’s finances as it seeks to attract visitors and become self-sustaining over the next few years.

Opened in May, the amphitheater has already drawn crowds from outside the region, with Marc Mondell, Tulare’s city manager, reporting that attendees have come from 18 different states and over 200 cities. “Our goal is to balance our costs with the revenues from the concert series,” Mondell stated, acknowledging that initial financial challenges are expected.

The venue is currently operating at approximately half of the anticipated ticket sales. Mondell noted that only about 6% of attendees are local residents. To address this, the city is monitoring attendance and making adjustments to its marketing strategy. “We want to continue to show this to people and attract more sponsors,” he added.

Todd Speelman, owner and lead producer for Spade Entertainment, the amphitheater’s promoter, expressed understanding of the slow start. He emphasized the commitment to increasing attendance through enhanced marketing efforts. “We’re investing significantly in marketing and utilizing our sponsors’ databases to create special offers,” Speelman stated.

Despite the challenges, Mondell remains optimistic. He believes that with ongoing adjustments, ticket sales will improve, potentially reaching targets by the end of next year or within three years. “We’re tracking financial and economic metrics closely,” he said. The city aims to attract between 35,000 to 50,000 visitors annually through the venue, enhancing local revenue through hotel, sales, and gas taxes.

To diversify programming and generate revenue, the amphitheater plans events beyond concerts, including a four-day Christmas festival and partnerships with other promoters on the West Coast. “We want to bring a variety of events to Tulare,” Speelman noted.

In a strategic move, the City Council approved the use of up to $400,000 from general fund reserves to support operations, which will be replenished by naming rights payments from Adventist Health. Mondell clarified, “We hadn’t initially discussed what the funds should be used for, but I recommended covering these expenses.”

Community engagement has also been a focus, with the amphitheater hosting diverse activities such as free concerts, yoga classes, and nonprofit events. “We’ve seen everything from movie nights to upcoming car shows and holiday celebrations,” Mondell remarked.

With a seating capacity of 5,500 and artist fees ranging from $25,000 to $150,000 per show, the amphitheater’s programming decisions are carefully crafted to ensure sustainability. Mondell emphasized the importance of strategic growth and patience. “Starting a new business typically isn’t profitable from the outset,” he explained. “Our goal is to cover our costs, and it will take time to achieve that.”

The City of Tulare is committed to supporting the Adventist Health Amphitheater as it navigates its early years, with an eye on long-term success and community benefit.