Disney gives thought to new renovations at El Capitan.

Move comes as Century City gets 'Beauty and the Beast'

Walt Disney Co. is considering plans to further renovate the El Capitan theater, to allow for more stage shows at the historic Hollywood structure, the Business Journal has learned.

The news comes as Hollywood business people are still reeling from the announcement that Disney decided the Shubert Theatre in Century City -- not the Pantages in Hollywood -- will be the home of the L.A. production of the "Beauty and the Beast" stage musical, scheduled to open in April.

Disney has a special arrangement with Pacific Theatres to show its movies at the El Capitan, which Disney paid to renovate in 1990. Since then, Disney has been successful at pairing short, introductory live stage shows with hit movies during the summer and winter vacation seasons.

Several sources, who asked not to be identified, said Disney is looking to combine more live stage shows with movies at the El Capitan, which would entail renovating the theater's interior.

Chan Wood, executive vice president for Pacific Theatres, acknowledged there have been some discussions with Disney regarding further renovations of the theater.

"It's strictly in the beginning stages," Wood said. "Speaking for Pacific, nothing has been approved."

Ed Collins, director of operations for Disney subsidiary Buena Vista Pictures Distribution, said no timetable has been set for the work.

"We've thought about it but we are not going to do anything right now," he said.

Several sources, who asked not to be identified, said the Disney plan would make a sound wall behind the screen -- which is permanently attached to the stage -- retractable, thereby opening up more performance space on the stage itself. Dressing rooms would also be renovated, a source said.

If Disney goes ahead with the plans, it would spell good news for the fortunes of Hollywood, said Jack Kyser, chief economist for the Hollywood-based L.A. County Economic Development Corp.

"This would be a major event for the Hollywood community," Kyser said, "especially the west end. The live shows generate a huge amount of traffic for surrounding merchants."

But those same merchants and property owners -- hammered by earthquake damage, Metro Rail subway construction and related problems -- wonder if they will survive long enough to see the revived El Capitan, especially now that Disney's "Beauty and the Beast" show is headed to the Shubert.

Business people in Hollywood wrote to Disney Chairman Michael Eisner, urging him to choose the Pantages. In addition, the Hollywood Chamber of Commerce intervened, and the L.A. City Council sent a letter to Disney urging it to house the show in Hollywood -- but the letter went out too late, after the decision had been made.

"I don't understand this," said Los Angeles City Council-woman Jackie Goldberg, who represents the Hollywood area. "Disney made big money on Hollywood Boulevard with 'The Lion King' (at the El Capitan), and we helped them get the utility relocation (for Metro Rail) delayed. The Pantages offered them free parking and free retail sales space to sell souvenirs. We would have moved mountains for them."

Councilman Zev Yaroslavsky, who represents Century City, said he voted to send the letter because it didn't seem fair for Hollywood to lose out on the show because of Metro Rail problems.

"I'd like to think that if Avenue of the Stars was collapsing, they would stick with my constituent theater, the Shubert," he said.

Several business people and politicians said they had heard that Disney's decision regarding the Pantages was based on fears that Metro Rail construction and related problems would frighten away theatergoers.

Stan Seiden, who runs the Pantages for Nederlander Cos., said "absolutely" Metro Rail construction problems are affecting his ability to book shows.

Regardless of the reason for Disney's decision, business owners are afraid they may lose out on up to $100 million of ancillary retail business.

The Century City Chamber of Commerce estimates its businesses lost $100 million because "Sunset Boulevard" closed suddenly at the Shubert in June.

"Beauty and the Beast," which was nominated for nine 1994 Tony awards, has brought in $20 million in Broadway ticket sales in only six months.

Michael Kellerman, owner of Hollywood Fantasy Tours and director of the Hollywood Office of Tourism, estimates that ancillary business in Hollywood from a "Beauty and the Beast" run would have been the equivalent of 30 percent of ticket sales.

"If a couple spends $100 on (theater) tickets, you want to have dinner in the area. That's a given," said Kellerman. "That show would have been perfect for Hollywood. The theater kind of fits the piece. It's more ornate (than the Shubert)."

An employee at Musso & Frank's Grill said the restaurant has "wonderful business" when the Pantages is booked. "We had good business from 'The Lion King' -- families and parties of 10," she said.

Joseph Abramian, owner of Joseph's Cafe, said his weeknight business increases by about eight to 10 families when there is a show at the Pantages.

Jim Waldvogel, manager of the Holiday Inn in Hollywood, predicted that people will come to L.A. from out of town to see "Beauty and the Beast."

"'Beauty and the Beast' is one of the biggest draws on Broadway," Waldvogel said. "It would have been wonderful for Hollywood, an economic winner."