Entertaining economics

Charlottesville Daily Progress
Published: May 7, 2008

The university area looks to be losing another mid-sized concert hall, with the announced closure of Satellite Ballroom on the Corner.

Charlottesville has seen the rise and fall of several medium-sized, student-focused, concert-dance spaces.

And while it is not true that Satellite is the last mid-sized space of its kind in the city, as some University of Virginia students seem to believe, it is true that closure of the space will leave a gap for many students.

Outback Lodge, on Preston Avenue, can fill some of the gap, although it’s a smaller space. Meanwhile, it’s entirely possible that some new hall will open up to meet student demand for a somewhat larger space. History would suggest so.

For instance, Max and Trax closed, but Starr Hill Music Hall eventually opened not far away. Then Satellite Ballroom came along on the Corner.

But now Starr Hill has closed, too.

The entertainment culture has always been fluid, and performance spaces have changed in tune with fluctuating de-mand. There have been other losses — the venerable Prism Coffeehouse comes to mind — but also other additions.

Some of these spaces have been at least partially financed with public monies; others are privately built. Either way, economics has played a key role in their growth, and will continue to drive the development and success of new event spaces.

Other mid-sized spaces exist around town for concerts or dances — we’re thinking of something in size between, say, Rapture and the Jack. There’s the Pavilion, the Paramount, the Mac, the Martin Luther King Jr. Performing Arts Center, University Hall, to name a few.

The old Jefferson Theater is being re-envisioned as a nightclub/concert hall that could accommodate 700-750 people. But construction hasn’t even started yet on a project expected to take 12 to18 months. And, that site is on the Down-town Mall — not near the university.

One wonders just how strong the demand is, not just in the university area but also all around Charlottesville. Have we “overbuilt” our performance spaces? Are there enough patrons to keep them all running?

Supply accommodates demand, so in the past new entertainment spaces have arisen to cater to students — and others — when old ones have died.

But recent economic changes may weigh against creation of new concert space in the university area. As real estate becomes more expensive, pressure arises to redevelop existing sites more profitably, more efficiently. (The Satellite site is expected to be redeveloped as a pharmacy. Max and Trax were consumed by UVa Medical Center expansion).

Charlottesville boasts of being a cultural center, with numerous spaces for all kinds of performances. We want that liveliness to continue, with many venues for many audiences with different musical tastes and financial means.

If the supply is to thrive, the demand must be strong.

Students have shared their emotional demands for saving the Satellite and have supported the venue with their presence. No doubt that the ballroom is popular.

But is the building worth more as a pharmacy than a concert hall? Economic demand will be the deciding factor in the Satellite’s fate.