PROVIDENCE — The state appears to be moving closer to transferring the underperforming Veterans Memorial Auditorium from the private foundation that now runs it to the state’s Convention Center Authority, adding it to a stable of properties that includes the Dunkin’ Donuts Center and the convention center.

With the facility not meeting expectations under private control, the legislature has directed the authority to develop a basic business plan for the auditorium, and return, probably next week, before the House Finance Committee to outline its best guess on the facility’s financial future under state control.

The next step after that, said Rep. Steven M. Costantino, D-Providence, would be to ask the Convention Center Authority to vote on taking the building over. The authority is an independent state agency that oversees the convention center and the adjacent Dunkin’ Donuts Center, although it subcontracts management of both facilities to a Philadelphia company.

The push to give the authority control of the building is a direct reversal from an earlier plan that would have bestowed the state-owned building on the private, nonprofit Veterans Memorial Auditorium Foundation, which has leased it from the state since 1992. The state pays the utility and maintenance bills through subsidies to the foundation.

Under an agreement brokered in 2004, the foundation was to take over ownership of the property July 1. But last May, Governor Carcieri indicated that he wanted to call that deal off, and grant the Convention Center Authority control of the building. The governor said he was concerned about the foundation’s fundraising capacity. The legislature has also raised criticisms that the facility is underutilized, and could be better managed and marketed.

Since that time, the state and the private foundation have tried to hammer out the specifics of a transfer, and it seems likely that the General Assembly will direct the Convention Center Authority to vote on taking over the facility in the near future. The authority could then subcontract its management to a private company, as it does with its other properties.

The auditorium is host to the Festival Ballet and the Rhode Island Philharmonic orchestra, plus touring acts, high school graduations and civic events.

But even including practice sessions for those groups, the auditorium is infrequently used.

“In an average week, you’re dark six out of seven nights. You’re dark six nights a week,” said a surprised Rep. Peter L. Lewiss, D-Westerly, on hearing estimates of usage from foundation officials.

With that in mind, state leaders are counting on the Convention Center Authority to pack the storied hall, introducing new marketing and booking strategies. If the facility can be improved, new opportunities, such as naming rights, could follow — although they acknowledge that the auditorium will always need some state support.

“We need to make the VMA a real shining star, that people want their name attached to it,” said authority director James McCarvill

The biggest stakeholders in the transfer are all in favor. The ballet and the orchestra are both in favor of the move, according to Deming Sherman, a board member of both organizations.

“It would be a boon to everybody involved,” Sherman said.

The city of Providence has registered its support as well.

Left out may be the nonprofit foundation — they say they support the transfer, but recognize the reality that they may be sidelined by the move.

“It would provide for ongoing security for years to come. So we are standing behind that,” foundation executive director Tereann Greenwood said. “It would be wonderful if we all could do this with as much goodwill as possible.”

At the same time, the foundation is unclear on what its role would be, post-transfer.

“This is a tenuous time for the VMAF. … Would it be problematic [for VMAF] to stand down and conclude its role with the theater? Yes.” Greenwood said.

But the state legislators said they don’t feel that the foundation has been completely cooperative.

During two separate hearings in the past month, legislators have questioned foundation officials and tried to determine the fiscal impact of a transfer.

The legislators said they have been repeatedly frustrated as the foundation has consistently failed to meet requests for information on the auditorium’s finances.

“I’m getting a little impatient with this,” Costantino told Greenwood when she again told him she did not have the documents he requested.

“I was looking for a pro forma, a business plan on the operations of the VMA, and quite frankly I’m disappointed that we do not have that,” Costantino scolded her.

Greenwood said after the meeting that the foundation has been providing what documents it has, but was not clear on what the legislators wanted.

“We are getting the committee what they asked for. We are seeking clarity on what they are asking for at any given time,” she said.

dbarbari@projo.com