Huntsville brings Orion concessions in-house for $12M
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The Food Village at Orion Amphitheater will now be city-owned as well. Photo: Derek Lacey/Axios
Huntsville will take greater control of the publicly owned Orion Amphitheater after the City Council voted 4-1 last week to purchase the venue's food and beverage assets for $12 million.
Zoom in: The deal with Huntsville Venue Group Food & Beverage, LLC includes buildings and other improvements at the amphitheater's Food Village area, as well as branding and contract rights.
- A separate company — Huntsville Venue Group Amphitheater, LLC (HVGA) — will continue operating the Orion day to day, but its compensation structure changes under the agreement.
- City administrator John Hamilton told the council the venue's food and beverage business generated about $1.7 million in operating revenue in fiscal year 2025, and the city spent $2 million to balance the Orion's budget, "so this is really about pulling that back."
What they're saying: "The goal is to get it to where this general fund is sending $0 out there to assist," Hamilton said.
How it works: The city will now pay HVGA a quarterly base management fee equal to 8% of gross revenues, per the contract.
- HVGA can earn incentive payments tied to the Orion's 18 best-selling events, which, if they exceed 75% of its capacity, will result in payments of 20% of the first $1 million and 30% of anything beyond that.
- An example in the contract explains that for a fiscal year with an operating income of $1,283,455, the total payment would be $200,000 as 20% of the $1 million, and $85,036.50 as 30% of the rest.
The other side: District 1 Council member Michelle Watkins voted against the deal, after a motion she made to table it until the next meeting failed and after asking about a potential audit of the deal.
Context: Huntsville's vision for the Orion from the outset was for it to host major concerts that would be profitable, as well as free or low-cost community events not expected to turn a profit, Hamilton said.