Written by John Boyle, Asheville Watchdog.
After three decades of studies, false starts and continued deterioration of the aging Thomas Wolfe Auditorium, the City of Asheville has announced that it will pursue a new 2,500-seat downtown performing arts center in partnership with a private company.
In a press release, the city said it’s “closer than ever to realizing a new large-scale arts and entertainment facility.” On June 24, the city signed a Memorandum of Understanding with ATG Entertainment, based in the United Kingdom, “for predevelopment work to create a public-private partnership development in the central business district,” according to the release.
A new auditorium would be able to accommodate touring Broadway productions, according to a Frequently Asked Questions document attached to the press release. The Thomas Wolfe Auditorium currently cannot accommodate touring Broadway productions.
The Thomas Wolfe Auditorium was built in 1940 to host basketball games and wrestling matches. With a capacity of 2,400, the auditorium was last renovated in 1975 and has continued to show signs of its age, ranging from roof leaks and falling interior bricks to peeling paint and seats giving patrons mild electric shocks because of faulty floor lighting.
Before Tropical Storm Helene devastated the region last September, momentum had been building toward backing a new facility, in part because of the projected expense of renovations to the Thomas Wolfe. Two years ago, the city released an assessment estimating those costs at $42 million for a basic fix to nearly $200 million for an overhaul.
In the release, Mayor Esther Manheimer noted that large entertainment events bring the community together, drawing visitors and residents alike, and helping propel Asheville’s recovery.
“A new performing arts and entertainment space has the potential to support our vibrant creative culture, uplift local businesses, and create good jobs for people across the region,” Manheimer said in the release. “This partnership gives the city an opportunity to thoughtfully explore a public-private project that could honor Asheville’s unique character while helping shape a more inclusive and resilient future for all.”
ATG could manage a new facility — and pay for part of it
As far as potential cost, the city said construction and operating costs would be determined during the predevelopment phase. The city also has not nailed down a potential location, although city-owned property next to City Hall has been in discussions for years.
“The proposed facility would be located on city-owned or to-be-acquired property and would serve as a vital cultural and economic asset for the city and surrounding region,” the FAQ document states. “Final site selection will be determined throughout the process of the feasibility study. The city is concentrating on sites located throughout the central business district.”
The Central Business District is the city’s designation for downtown, although it includes much of the popular South Slope area just south of the traditional downtown.
The city acknowledged that the City Council previously approved acquisition of various parcels of land along Marjorie Street near City Hall, “specifically for the development of an entertainment facility. This location will certainly be explored,” the FAQ page states.
The Memorandum of Understanding states, the “New Arts Facility would be designed to accommodate a wide range of programming, including concerts, touring Broadway productions, community events, and other live performances, among other community focused programs. It is intended to serve as an opportunity to generate long term economic and cultural impact to the region.”
ATG states in the memorandum that it will “assist in development of a long-term financial sustainability model and explore potential public/private funding strategies” for a center.
“As the potential operator of the New Arts Facility, ATG would be interested in making a significant financial contribution to its construction, at an amount to be mutually agreed upon before a definitive agreement is in place,” the memorandum states. “The foregoing statement regarding a financial contribution represents a statement of ATG’s preliminary intent and is not binding.”
Additional due diligence would be needed before such a commitment, ATG notes in the memorandum, “the results of which would need to be satisfactory to ATG in its sole discretion, and the execution of mutually agreeable development agreements and lease agreements.”
ATG will split evenly the predevelopment consulting costs, not to exceed $120,000, meaning it and the city will pay $60,000 each during this phase of predevelopment, according to the memorandum. The MOU also guarantees ATG an “exclusive negotiating period of up to 24 months,” during which the city agrees not to work with any other party on the project.
“The Exclusivity Period is intended to provide both parties the time and certainty necessary to evaluate the feasibility of the project, complete financial analysis, engage in community outreach, and, if mutually agreed, negotiate the terms of a Definitive Agreement,” the MOU states, noting the period may be extended by mutual agreement, or terminated earlier by written notice from either party.
The MOU “does not obligate either party to proceed with the New Arts Facility.” It also calls for confidentiality, other than with involved parties.
Previously, a nonprofit called the Asheville Area Center for the Performing Arts had pushed for a new performing arts center and for nearly two decades sought a site, to no avail. It worked with UNC-Asheville on a possible location there, at a site once slated for a children’s museum, but that plan stalled at the end of 2022 when previous Chancellor Nancy Cable left this position.
The city said that unlike past exploratory efforts, the agreement with ATG “commits both partners to working hand-in-hand toward a definitive long-term agreement to create a transformational cultural and economic investment.” During this “predevelopment phase,” which could last up to two years, ATG and the city will both fund the partnership, the city’s maximum contribution set at $60,000.
“If both the city and ATG determine the project is viable and should move forward, next steps would require final determination of funding avenues, full design, bid documentation and construction,” the city states in the FAQ document that accompanied the press release. “A typical project of this size may take five years or more from the beginning of the predevelopment phase to completed construction.”
ATG, multiple local partners involved
The release states that the city is working on the project with community partners including the Buncombe County Tourism Development Authority, ArtsAVL and Asheville Symphony “to make this community vision a reality.” The Asheville Symphony Orchestra which left the Thomas Wolfe in favor of holding its concerts at First Baptist Church downtown, said it would perform at the new facility.
“The Asheville Symphony is thrilled to support the city’s exploration of a new, large-scale arts and entertainment facility,” Daniel Crupi, executive director of the Symphony said in the release. “A privately managed venue of this kind would be a transformative asset for our entire community, welcoming residents and visitors alike, and providing a stage for a wide range of artistic voices and cultural experiences.”
Plans call for ATG and the city to complete an initial draft of an economic and cultural impact study by the end of year, as that will “inform business plans and potential upcoming grant application cycles,” according to the release.
According to its website, ATG Entertainment owns and operates “72 venues across Britain, the USA, Germany, Austria and Spain. That number keeps growing.” Its operations include “historic theatres, studio theatres, cinemas, conference spaces and modern live music arenas.”
“Our impact on these venues takes significant investment,” ATG states, noting that in some cities it has restored “closed and forgotten theatres,” including The Colonial Theatre in Boston and the Hudson Theatre in New York.
ATG has offices in the United States, including in New York City and San Antonio, Texas.
“We invest for the long-term future of our venues; improving seating, washrooms, heating, air conditioning, bars and lounges and accessibility of our spaces to everyone,” the website states. “For the productions and shows we also ensure our venues are equipped with the latest in lighting, sound and other production technologies, together with regularly refurbished dressing rooms.”
Lori Hotz, CEO of ATG Entertainment North America, states in the press release, “We are delighted for the opportunity to better explore the Asheville market in conjunction with the City of Asheville, ArtsAVL, and the Buncombe County Tourism Development Authority to determine if Asheville will be added to our international portfolio.”
The city’s FAQ notes that ATG, through its in-house production companies an third-party producers, presents over 15,000 live performances every year. The company also operates ATGtickets.com, which draws more than 55 million unique visitors annually.
As far as why the city is going with a company based in the United Kingdom, Chris Corl, general manager of the Harrah’s Cherokee Center-Asheville, said over the years the city has “engaged numerous Broadway presenters, facility management companies and developers to discuss the possibility of an arts and entertainment facility.
“Very few companies offer a ‘turn key’ option, in that the company is willing to assist with upfront capital investment, longer term operations management and manage the booking, ticketing, production and culinary aspects required of a full service event facility,” Corl said. “Ultimately, ATG’s experience and reputation throughout the industry and their willingness to discuss a significant capital investment towards the project were the catalysts behind the decision to move forward with the memorandum of understanding.”
“The City and ATG are formally moving this project from a long-desired vision to a plan of action,” the release says. “This agreement marks the start of planning, economic and cultural impact analysis, business modeling, workforce assessment, and venue configuration studies, laying the groundwork for a financially sustainable facility with a proven, internationally respected events partner that will serve our community for decades,” the release states.
Funding will be determined down the line, but the city noted in the press release that Tropical Storm Helene may allow the city to explore U.S. Economic Development Association grants under their disaster recovery program. The program offers grants to support the restoration of economic activity and long-term economic growth in disaster-impacted communities and regions.
“City staff are currently exploring these grant programs, with the intent to apply if the final project meets federal grant requirements,” the release states.
As the predevelopment work continues, Explore Asheville (a subsidiary of the Tourism Development Authority), ArtsAVL, and the Asheville Symphony will assist the city and ATG “with data collection and stakeholder engagement to gather information relevant to any city grant applications.”
The TDA, which derives its funding from a state-sanctioned occupancy tax on hotels, bed and breakfast inns, and short-term vacation rentals, could also be a key player in funding any performing arts center project. By law, the TDA has to spend two-thirds of its revenues on marketing efforts aimed at driving overnight stays, while the other one-third goes toward two different community capital project funds that can benefit both locals and tourists.
The TDA has committed nearly $100 million to more than 50 community capital projects through those two funds.
“Recently, the Tourism Development Authority identified several types of projects to be prioritized in future grant cycles based on both community benefit and return on investment, including a new large entertainment and arts facility, indoor and outdoor sports facilities, and family-friendly experiences,” Vic Isley, President and CEO of Explore Asheville and the BCTDA, said in the FAQ document, “Our commitment is to invest in projects that serve residents and visitors alike, strengthening Buncombe County’s quality of life while supporting the long-term vitality of our local economy.”
The most recent conversation about a new auditorium started in October 2023, when ArtsAVL, the local arts council, convened stakeholders to meet periodically.
“The group has brought in numerous third-party advisors throughout the process, all at no cost to the city,” the release states. “In each case, it was recommended to examine a new build project rather than a renovation of the auditorium. Throughout this timeframe, staff reignited a previous conversation with ATG, which led to a discussion of a predevelopment agreement and the execution of the MOU announced today.”
What will happen to the Thomas Wolfe?
The Wolfe Auditorium, which has remained a busy venue despite its maintenance and appearance issues, will remain downtown, according to the city. Once a freestanding building, the auditorium became part of the Harrah’s Cherokee Center-Asheville when that facility opened as the Asheville Civic Center in 1975.
Current plans call for keeping the Wolfe Auditorium in operation. The FAQ said city staff will work on a “long-term vision and plan for the Harrah’s Cherokee Center-Asheville Complex,” which includes the auditorium.
The Wolfe Auditorium, like much of Asheville, essentially shut down in the months following Helene, but it has been busy this year, according to Corl. From January through Aug. 28, the auditorium has been in use 54 days, with a total attendance of 101,509.
In 2024, from January through August, it was in use 37 days, with total attendance of 63,280.
During the predevelopment phase, the city said Explore Asheville, ArtsAVL, and the Asheville Symphony “will assist the city and ATG with data collection and stakeholder engagement” to gather relevant information for any grant applications.
“As Asheville considers the future of its arts and entertainment infrastructure, ArtsAVL is committed to ensuring that decisions are informed by the needs of our creative community and the lessons we are gathering through the Arts Recovery Plan,” Katie Cornell, executive director of ArtsAVL, said in the release. “We look forward to engaging stakeholders in these important conversations.”
The city said it and ATG “expect to receive the initial draft of the economic and cultural impact study to inform business plans and potential upcoming grant application cycles in 2025.”
Asheville Watchdog is a nonprofit news team producing stories that matter to Asheville and Buncombe County. John Boyle has been covering Asheville and surrounding communities since the 20th century. You can reach him at (828) 337-0941, or via email at [email protected]. The Watchdog’s local reporting is made possible by donations from the community. To show your support for this vital public service go to avlwatchdog.org/support-our-publication/.