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St. Paul's Palace Theatre catches promoter's attention [Pioneer Press, St. Paul, Minn.](Saint Paul Pioneer Press (MN) Via Acquire Media NewsEdge) Oct. 18--Not far from the Hard Rock Hotel and the Nike Forum, Billy O'Rourke's Coco Bongo nightclub has become one of Cancun's hottest attractions. On any given night, aerialists dressed as Spiderman perform tricks on overheard wires to pulsating lights and a techno beat; or Elvis, Beatles and Beyonce impersonators command a giant stage and screen. "It's like you're going to Cirque du Soleil," said O'Rourke, who grew up in St. Paul and now splits his time between Mexico and Las Vegas. O'Rourke -- dubbed "Cancun Billy" by his fans -- has set his sights home. He's looking to bring his flashy style of entertainment to downtown St. Paul's long-shuttered Palace Theatre, which is in line for some $13 million in public funding. Against pictures of laser lights and corporate viewing booths, his 28-page proposal talks up the possibility of VIP bottle service, a possible lift stage floor and a $950,000 LED screen. It also includes a few typos. So far, he's gotten no love at City Hall. St. Paul Mayor Chris Coleman has named the management group that runs First Avenue in Minneapolis and the Turf Club in St. Paul as the city's most likely partner. First Avenue would work with Chicago-based JAM Productions to book shows. "There is no state or local requirement to do a request for proposals for a project like this," said Joe Spencer, the mayor's director of arts and culture. "The best path, to get the best possible deal for the city, was to go to the best possible partners. I can't imagine a better scenario ... than the path we're on right now." Spencer said First Avenue is "the largest local promoter in the market" and JAM is the largest independent regional promoter. JAM, which is 40 years old, promotes shows at the Xcel Energy Center in St. Paul and throughout the Midwest. St. Paul City Council member Dave Thune also called the First Avenue partnership the most realistic proposal. "I think the only serious one is this one," he said. O'Rourke said the mayor's office no longer returns his calls, and the only ears he's been able to turn belong to officials critical of the mayor's plans to use public funds to reopen the Palace. O'Rourke's proposal to manage the Palace as a nightclub and music hall includes broadcasting concerts live on YouTube, and he wants a shot at the city contract. "If it's public money, it should be up for public bid," he said. He's not the only concert organizer feeling rebuffed. Others previously expressing interest in running the vacant Seventh Place theater include rock promoter Steve McClellan, a founder and former co-owner of the First Avenue concert venue in Minneapolis. After failing to get the mayor's ear in late 2013, McClellan said this month that he's no longer tracking the project. But even a blessing from the mayor's office would not guarantee O'Rourke's plans. Among the wrinkles is the fact the city does not own the Palace, which sits in a two-building development owned by the Kelly Bros. real estate firm. It's unclear if the company will sell the site without a say in its future management. A reporter's calls to the firm were not returned last week. In addition, St. Paul City Council President Kathy Lantry has been openly critical of the mayor's efforts to revive the theater. "I don't know that I think of a theater as a city function," she said. STARTS AND STOPS Over the years, efforts to revive the Palace have stumbled and failed. Opened in 1916, the theater stopped showing films in 1982. The Brave New Workshop staged comedic performances in the lobby from 2001 to 2005, but the building has sat unused since. In the mid-2000s, former St. Paul Mayor Randy Kelly tried to interest the Walt Disney Co., which had just restored historic theaters in New York City and Los Angeles, to take on St. Paul's Palace. Another proposal called for Penumbra Theatre to occupy the site. Neither worked. In October 2013, Mayor Coleman announced plans to tear out much of the seating and reopen the Palace, previously known as the Orpheum, as a midsized concert hall. It would have about twice the capacity of First Avenue. Flexible seating would accommodate roughly 3,000 people standing. During a media event at the time, Coleman presented the company that currently owns and manages First Avenue as a likely Palace partner. And the mayor introduced Jerry Mickelson of Chicago-based JAM Productions as a longtime acquaintance who also was likely to be involved in the $14 million revival. First Avenue last year bought a storied St. Paul small concert venue, the Turf Club at Snelling and University avenues, and recently added a kitchen and better bathrooms. The prospect of resurrecting the Palace was smiled upon by Gov. Mark Dayton's office and lawmakers, who in May awarded $5 million in state bond funds to the project as part of the state bonding bill. "Having a strong partner on board early was really critical for us to get it through the Legislature," Spencer said. Coleman's 2015 budget proposal -- which has yet to be approved by the St. Paul City Council -- would devote an additional $8 million next year. Spencer said he expected First Avenue and JAM Productions to put in another $1 million between them. The venue would reopen in 2016, in time for the building's 100th anniversary. Many preservationists and downtown boosters are pleased. "Anytime you're taking an abandoned building -- or in this case, an underutilized building -- and putting it to new use, that's a good thing," said Will O'Keefe, real estate program coordinator for the Preservation Alliance of Minnesota. On Tuesday, Spencer discussed the city's vision for the Palace with Wabasha Partners, a Wabasha Street business and residents association. Board chair Tony Bol said that in September, the group ranked the Palace as one of its highest priorities. They plan to write a letter backing its revival to the city council. AN OVER-THE-TOP PLAN O'Rourke, the Coco Bongo proprietor, said he toured the Palace in early May and met with Spencer in June. He submitted his 28-page proposal in July, but phone conversations with the mayor's office ended abruptly two months ago, he said. The proposal, officially submitted by "The St. Paul Generation Management Company," lists two business partners: former University of Minnesota professor Cyrus Mahmoodi, an investor, physiologist and molecular biologist who grew up in Mahtomedi; and Las Vegas restaurant manager Carl Halvorson, a former area general manager for the Kimpton Hotels and Restaurants in Washington, D.C. Mahmoodi, who described himself as a passive investor in the effort, said he grew up with O'Rourke and called him a "lifelong friend." He acknowledged that the written proposal had its share of typos, including a misspelling of his own name on the contact page, and "could have been more polished." Nevertheless, "it's kind of frustrating not to be able to get a platform or feedback from the city itself," Mahmoodi said. "The team that's assembled, it's a very good team that we have, and has expertise in these areas." Given the amount of public money going into the project, O'Rourke believes other potential management partners should be fully vetted. "We came in with a great offer, and nobody's talking to us," he said. O'Rourke said his company can invest $800,000 to $1 million "right away -- plus we had sponsors lined up. We were bringing in sponsors like MGM Resorts in Vegas. We trounced (the First Avenue proposal) in terms of the amount of money we were putting in." "We want to create an over-the-top theater where patrons want to go and musicians want to play," O'Rourke said. O'Rourke previously worked for the U.S. Tennis Association, taking tournaments to different regions before starting his own business connecting athletes to sponsors. He later moved to Mexico, where he started a telecom company before branching out as managing partner of the Coco Bongo nightclub about 10 years ago. He also became involved in a Texas tequila company, which he sold a year ago. PROJECT IN COUNCIL'S HANDS It's unclear whether a nightclub modeled after a spring break hot spot will succeed in downtown St. Paul, where the entertainment scene is dominated by hockey bars, sporting events and opera and symphony performances, or whether it will sit well with the neighbors. In addition to the Palace, the Kelly Bros.' two-building development is home to the former St. Francis Hotel, Candyland, Bruegger's Bagels, the Wild Tymes Sports and Music Bar and a small grocery. About half of the development's residential tenants are McNally College of Music students. The Palace's fate will be decided, in part, by the city council, which is expected to tweak and approve the mayor's 2015 budget proposal in December. Coleman's $8 million allocation for the theater faces some opposition on the council. "I have not been a big fan of this project," said Lantry, the city council president, who voted against the city's bonding bill priorities before they were submitted to the state. Nevertheless, if the city moves forward with reviving the Palace, she intends to see it succeed. "We got (the state) money," she said, "and now my job, as I see it, is how to make the project work financially." Frederick Melo can be reached at 651-228-2172. Follow him at twitter.com/FrederickMelo. ___ (c)2014 the Pioneer Press (St. Paul, Minn.) Visit the Pioneer Press (St. Paul, Minn.) at www.twincities.com Distributed by MCT Information Services |