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City Audit Finds HoB Owes On Lease Payments

DALLAS (CelebrityAccess MediaWire) — A city audit of the Smirnoff Music Centre has found that the House of Blues, the company which formerly operated the Centre on behalf of the city, owes nearly $850,000 in back lease payments.

The audit covers the payments made by HoB during the period of 2001-2006 and it asserts that the company did not properly calculate and report payments in accordance with their lease with the city.

According to the Dallas Morning News, city auditors concluded that HoB failed to fully account for ticket sales, income from sponsorship, parking, concessions and other income assessments.

"We recommend the city attorney continue with the negotiation process with Live Nation for a settlement" city auditor Craig Kinton commented in the audit "[and] take the necessary steps to collect the money due to the city."

The audit covers HoB's operation of the Centre but ends in 2006, during the same month in which Live Nation acquired HoB. Live Nation's John Vlautin noted that "Since soon after the acquisition, Live Nation has been in negotiations with the city of Dallas for a resolution of the interpretation of their audit, and we are hopeful that this will finally be resolved in the near future."

The audit also states that the House of Blues failed to properly report comp tickets that had been given to city officials and employees for events at the Centre. The audit noted that such practice may well be illegal as State law prohibits public servants accepting gifts of more than $50 from those who may be subject to said officials purview.

Live Nation continues to operate the facility for the city, under the name Center. – CelebrityAccess Staff Writers