Tuesday, May 13, 2008

No more parties in Chicago? Promoters ordinance

In 2007 a friend who is a partner in a marketing group told me about new “laws” that may take place against club/party promoters requiring insurance and licenses. It seems that now this will happen. The E-Biz reports that tomorrow “ the Chicago City Council will vote to approve an ordinance that requires ANY event promoter to have a license from the city of Chicago and liability insurance of $300,000 --- even when working with an established venue that has already fulfilled all of these obligations”

Reading these guidelines I thought it was for music acts only but now it seems that it is for ALL promoters. Grant it I am not a BIG fan of the club scene here in Chicago but I do have friends in the industry who host parties and events which are calm and non-threatening BUT there are other promoters I know who do not have a clean background record and with this ordinance they will be required to have a background check….which they will not pass.

Interview from Jim DeRogatis (Sun-Times) with Efrat Dallal Stein, the spokeswoman for the Department of Business Affairs & Licensing

Q. But to run a concert venue in the city of Chicago, you’re already subjected
to a dozen licenses and hundreds of regulations

A. The definition of an
event promoter, though, you need to be very clear in who is exempt for this. It
is not all cases of events that will need a license. There are exemptions to
this, and if you are an event promoter who makes a living from marketing events
and bringing people in to these events, in order for this industry to thrive and
continue to grow,
these are some very basic common-sense responsible business
practices. The range of fees goes from $500 to $2,000 for a two-year license.
The insurance requirement is that you have general liability insurance up to
$300,000 per occurrence
, which is very low, and it’s basically the same
requirement for many other types of business in the city.

Q. But the
question remains: What is the goal of this ordinance?

A. It’s to place a
level of responsibility into the hands of event promoters.
There have been many
examples and incidents where promoters operate with little public safety
concerns, and hopefully this ordinance will help to prevent cases of
overcrowding and put some sort of responsibility in the hands of promoters to
ensure that events run smoothly and safely. Of course, many events already do

Q. Well, it is when it comes with requirements for insurance
and a license fee. And I have to get fingerprinted, and you’re going to do a
criminal background check on me, and I have to be over 21 years old. Some of the
top promoters in this city were 18 or 19 when they started their businesses
A. But when they started, the drinking age may not have been 21. The
drinking age is 21, and that’s why they made it that way. But not every event is
going to require the same things. Not every event requires security. Just
because the contract requires that they assign the responsibilities of security,
that doesn’t necessarily mean that it requires security. We’re not requiring
security; all that we’re requiring is that the event promoter and the venue have
guidelines and an agreement, that they’re in understanding of who is responsible
for what.
You take into consideration capacity, safety, security if needed, any
electronic special effects that may come into play, and the fact that they will
have insurance. Those are very basic things, and what we’re asking are very
basic, common-sense responsible business practices that many of these businesses
are already doing. Many of them already operate within a contract.

The City sounds confused, this ish is not clear at all.........
The City Council meets in the Council Chamber located on the Second Floor of City Hall, 121 North La Salle St., starting at 10 a.m. on May 14

1 comment:

The E-Biz said...

I can't wait for this to PASS! HA!

Now maybe we can get some REAL parties and some real artists/ promoters in Chicago with insurance!