Wharton is not responsible for the opera house’s revenue during the transition period, but will be responsible after the takeover.

“If the performances that we’re presenting aren’t making any more and there’s some type of deficit, then that’s our responsibility,” Love said.

Wharton will be paid $75,000 each year for its services and receive 25 percent of each year’s profit from the opera house. It also is required to create a budget and programming plan by May 1, including an operations budget, costs, rental dates and list of possible events for the coming year.

The deal first came about a year ago, when a consultant in Traverse City mentioned Wharton might be interested in partnering with the opera house, which had been searching for an operations manager, said Jeffry Corbin, vice chairman of the City Opera House Heritage Association Board of Directors.

“Wharton has the knowledge of a lot more different types of artists that are greater in diversity and programs than we do and how to make them happen,” he said.

The opera house is operating in a deficit and needs to raise about $1.25 million to complete renovations that have taken about 30 years. Wharton will not be responsible for paying either cost, Love said, but operators hope Wharton-managed shows will increase revenue to help close the deficit. He said the center plans to hold about 30 performances at the opera house each year.

The deal raised tension in the community when it was first presented because city commissioners were not notified of initial meetings between opera house and Wharton officials.

Traverse City Commissioner Jody Bergman said the negative community response stemmed from a misunderstanding of how the process works. Since the city owns the opera house and leases it to a private corporation, the corporation, City Opera House LLC, does not have to publicly disclose its proceedings, she said.

“There is a clause in our lease that the city commission has to approve any change,” she said. “But my vote is only to decide whether or not I feel Wharton is a legitimate, viable manager for that property.”

Public controversy also rests in whether Wharton will restrict community groups’ use of the opera house and other unclear parts of the contract, Traverse city resident Rick Buckhalter said. The contract stipulates Wharton must allow use of the facility in a manner “consistent with the historic practices of (the City Opera House) and its previous managing agents.”

Buckhalter said although he is not opposed to the plans, the contract should more clearly define community use.

“I don’t mind Wharton doing it,” he said. “But I would like some things spelled out protecting some of the other interests.”