Industry insiders and downtown Austin stakeholders say a proposed program to extend the outdoor music curfew in the Red River Cultural District would catalyze a much-needed revolution for the city's music industry.

Speaking to the Austin City Council’s Economic Opportunity Committee on Monday afternoon, various local music industry insiders said the Red River Extended Hours Program, a pilot program that council will consider in 2017, would allow music venues in the Red River Cultural District to play live music outdoors until 2 a.m.

“It could be the biggest thing that we do for music in Austin in a long time,” said Steve Sternshine, president of the Red River Cultural District Merchant’s Association. “It’s the most exciting thing we’ve seen.”

The curfew curtails revenue

The issue, according to the club executives who spoke Monday: downtown Austin’s rising rents are having a harsh effect on the local music industry. Whereas music venues once were located in the more affordable sections of downtown, development has squeezed those affordable pockets to the outskirts and left the venues stranded and forced to continue paying a higher percentage of their revenues to rent each year.
“It’s the most exciting thing we’ve seen.” — Steve Sternshine, President of Red River Cultural District Merchant's Association

Cody Cowan, general manager of The Mohawk, a music venue located at 912 Red River St., and vice president of the Red River Cultural District Merchants Association, said venues in the Red River District consider themselves to be “incubator venues” that focus on growing local artists. However, the industry finds itself in a cost crisis, he said, and the money used to pay these local artists is growing tighter as rents continue to increase.

But the city’s Music Commission and club executives believe a tweak in the city’s specific live outdoor music curfew for the district could provide some relief.

Venues rely on two income streams: at-the-door cover charges and bar sales. Peak hours for alcohol sales at bars are between 10 p.m. and 2 a.m., according to the owners. However, Red River music must be shut off 10:30 p.m. Sunday to Wednesday; 11 p.m. Thursday and midnight Friday and Saturday. On the other hand, the outdoor music curfew for venues in the Warehouse and Sixth Street districts is 2 a.m.

 

Revenue could increase by 10 percent if clubs were allowed to play music even one hour later, according to members of the Music Commission. Currently, bars in the Red River District lose some late night sales because people tend to clear out once the live music is over—even though the clubs are technically allowed to sell alcohol until 2 a.m.

 

Club owners believe the curfew extension would provide the extra primetime hours and revenue to get more of these artists on stage. But the extension of the curfew would also have a positive effect on attracting more national touring acts, which brings revenue bursts to the venues, according to Ryan Garrett, general manager of Stubb’s BBQ.
“The issue at hand is balancing the interest of these business owners with the complaints that we can still be receiving from residents.” Alejandra Lopez, Deputy Director of Economic Development Department

“I don’t know if I’ve ever seen a proposal like the sound extension program that could have as much positive impact, both economically, in the creation of jobs, and bringing in more diversity in talent and drawing more patrons to the Red River Cultural District,” said Ryan Garrett, who has worked in the district for 16 years. Garrett said the curfew extension, by his promoter’s estimates, could attract 15 more national touring artists to the district per year, which he said equals roughly 35,000 more patrons. “You’re looking at over a $1 million in ticket revenue just by extending [the curfew].”

Garrett said if the district is able to bring in more national talent and more patrons would provide lasting local benefits.

“What it does for the neighborhood, in general, is that it improves the scope of business,” Garrett said. “You have 35,000 people passing local storefronts. We want to see Red River remain local. We want to see it remain authentic Austin.”

The other piece to the study

The program is only a pilot and will be used as a case study on whether or not the curfew extension should be enacted permanently. Alejandra Lopez, the deputy director of Austin’s Economic Development Department, said the study will also have to analyze the effect the curfew extension has on residential quality of life.

“The issue at hand is balancing the interest of these business owners with the complaints that we can still be receiving from residents,” Lopez said.

According to Lopez, complaints from residents near the Red River Cultural District have shot up since 2015. In 2015 the city received 55 complaints, and in 2016 it received 183 complaints. Lopez said this spike could be attributed to the new 311 app that streamlines the complaint submission process, but these are all factors that will be considered in the study. recommendation to council will be heard at the Jan. 26. If the study is approved, Lopez said it will likely start later in the year, to allow for the venues time to begin booking later acts.

Council will consider the recommendation Jan. 26. If the study is approved, Lopez said it will likely start later in 2017 to allow time for venues to begin booking later acts.