MAGNOLIA THEATER MEETS FINANCIAL GOALS IN THIRD YEAR OF OPERATION DESPITE COVID SHUTDOWNS

By Miriam Raftery

September 27, 2022 (El Cajon) – El Cajon’s City Council received some upbeat news in a report on the financial performance of The Magnolia (formerly known as the East County Performing Arts Center).  In a presentation during today’s Council hearing, representatives of the city and the Magnolia confirmed that the theater has exceeded projections and attained profitability in its third year – despite mandated shutdowns in 2020 and part of 2021 due to the COVID-19 pandemic.

Assistant City Manager David Richards and the Magnolia's General Manager Paris Landen presented the upbeat update to the City Council.

The theater had been closed from 2009 until 2019, when it reopened under management of Live Nation. The management company had projected negative financial performance for the first five years, but instead, operated at a $287,299 profit in 2021.

Live Nation has brought in some headliners including Pearl Jam and Fleetwood Mac, as well as in Iraqi comedian who performed to a sold-out crowd. The theater has also been leased for private events ranging from dance competitions to summer camp to a benefit concert for the homeless headlined by Mayor Bill Wells. 

Ticket sales indicate patrons are coming from beyond East County, including Los Angeles and Tijuana as well as the greater San Diego region.  The Magnolia has attained a 4.7-star rating on Google and a guest survey found 86% of patrons satisfied with the venue and 92% satisfied with the staff.

The city invested about $287,00 n the theater this year, substantially less than $600,000 it was pouring into the facility back when Christian Youth Theater was operating the theater before it shut down due to losing money when costly repairs were needed.  Those repairs have been made – along with many upgrades, as shown in a slide show presentation. 

Ultimately, Live Nation predicts the theater will meet the next goal of profit sharing 70/30 with the city, though City Manager Graham Mitchell said the city may extend the original five-year agreement since COVID disrupted operations.

Councilman Steve Goble praised the theater’s success under Live Nation’s leadership, noting, “It’s also a big generator of sales tax downtown” by bringing in theater patrons to shop and dine in the city’s stores and restaurants.