By Monica Chen

mchen@heraldsun.com; 419-6636

DURHAM -- The Durham Performing Arts Center earned $401,706 for the city in its first eight months, more than four times the expected amount for the first full year, the city announced Thursday.

The 2,800-seat theater, which opened last November, raked in $6.5 million in ticket sales and $1.5 million in other revenues as of June 30, including $219,548 in concessions.

The city released a draft audited financial statement for DPAC, which is owned by the city, on Thursday. Most of the expenses involving stage show costs amounting to more than $5.6 million. Net income was about $1.0 million.

After making a one-time payment to $100,000 to Nederlander and Professional Facilities Management Inc., the operators of DPAC, to cover pre-opening and marketing expenses, the city should recoup $301,706 from ownership of DPAC for the first fiscal year.

Under the five-year agreement with Nederlander and PFM, the city would receive payments of 40 percent of the net income every year from DPAC.

"That's truly great news for Durham, especially in light of today's economy," said Durham Mayor Bill Bell, in a released statement. "Our first season has been undeniably successful."

The city is still making debt payments on the $44 million theater. The first year's debt service is $2.4 million. The second year's will be $2.5 million.

Reginald Johnson, senior assistant to the city manager, said the debt service is paid out of a separate fund composed of the hotel occupancy tax, naming rights revenue and an internal transfer from the downtown fund.

The net income, which goes to the general fund for the city, is not used for paying the debt service, Johnson emphasized.

Original estimates put the payment to the city at $99,000 for the first year and $144,592 for the second year.

The DPAC is the largest theater venue in the Carolinas, and in its first six months of opening, sold out 25 shows, including concerts by Willie Nelson and Harry Connick Jr., comedian Bill Cosby and the entire week of "The Color Purple."

"The Durham Performing Arts Center is an asset to the city and the region, and thanks to the support of citizens, visitors, patrons and sponsors, the facility is something that we all should be proud of. With the great line up of shows, including 'Phantom of the Opera' and 'Wicked' for the coming season, it looks like DPAC is well on its way to continuing its success in 2010," Bell said.