Carefree Truth
                 Issue #730, March 15, 2019


Mayor Les Peterson called this a Council workshop to discuss the terms of the operational agreement with Villafane Studios, the event layout, and the possibility of charging admission fees for the 2019 Enchanted Garden Pumpkin Festival. No final decisions have been made yet.  2019 will be the 5th year of the Festival. The event has grown dramatically, becoming successful beyond what could have been projected.  This success has created some issues.  The downtown area has a relatively small footprint.  The 2018 event footprint was expanded beyond the Gardens, into the merchants' areas.  Charging admission for the 2019 Pumpkin Festival is being strongly considered as one way to be more selective on the target demographics and to recoup some of the costs.



The vast majority of the residents look forward to the Pumpkin Festival and say, "Keep it up.  Don't let it go away".  Even those residents and merchants expressing some concerns don't want to let it to get away; they just have some ideas about how to fix the issues.  Everyone wants to work together.  The Mayor noted that this is a very positive quandary to have.
https://vimeo.com/322526096
 



Marketing Director Beth Renfro thanked those individual Council members who took the time to chat with her the previous week to review the 2018 Pumpkin Festival and to give their feedback.  She said this was very helpful in preparing her presentation.  She also wanted to mention "Sights and Sounds in the Gardens", which will take place on March 30th from 10 AM-3 PM.  It will include plein air painters from the Sonoran Arts League (SAL), musicians, and the Prima Dance AZ troupe.  It is very informal.  She encouraged people to come to eat, to shop, and to enjoy the artists.
https://vimeo.com/322525228


Ms. Renfro noted that the overwhelming success of the Pumpkin Festival is straining the Town's ability to ensure sustained success.  The goal is to grow any event to keep it successful, but Carefree's size is a challenge to that growth.  A critical component is interaction with the town's businesses, and Carefree wants the residents to look on events with a sense of pride in their community.


Ray Villafane approached the Town about partnering with Villafane Studios.  Beginning in 2019, the event would transition into an admission fee, revenue based attraction.  Ownership and production rights would transfer to Villafane Studios after the  2021 Festival.  Carefree would continue to cover all the logistics and event production through 2021, recouping those costs through admission fees and cost recovery methods.


The Town recommended that Villafane Studios form a non profit 501(c)3 corporation in order to facilitate event production and sponsorships.  Carefree would transition to an event sponsor relationship with the new entity in 2022.  The Town would no longer be involved in the decision making process, but would retain all the types of control currently enforced for any event that requires a permit, such as the Thunderbird Artists shows.  After the Town is reimbursed, including any prior year loss provision recovery, the revenue share of any remaining profits would be: the 2019 event (Fiscal Year 2020)-50/50 split between Villafane Studios and the Town of Carefree; the 2020 event (FY21)-75/25 split between Villafane Studios and the Town of Carefree; and the 2021 event (FY22)-100% to Villafane Studios to roll over into production of the 2022 event.  This operational agreement will be presented to the Council for final approval at the April 2nd meeting.


The 2018 Pumpkin Festival cost recovery model included $5 per libation at the Beer/Wine Garden, $5 wristbands for the Kids' Zone, and various pricing of event merchandise, for a total revenue of $121,170.  In 2019, the proposal is for an admission which will include access to the Kids' Zone, continued partnership with the SAL for the Beer/Wine Garden with an increased charge for libations, and continued sales of event merchandise.  In 2018 there was an estimated attendance of 100,000 visitors over the 10 day period.  The projected revenue for 2019 takes into account a reduction in attendance due to the admission fee.  The 2019 potential revenue/proposed admission fee is as follows:

50,000 visitors @ $10 each, $500,000
75,000 visitors @ $10 each, $750,000
50,000 visitors @ $15 each, $750,000
75,000 visitors @ $15 each, $1,125,000
50,000 visitors @ $20 each, $1,000,000
75,000 visitors @ $20 each, $1,500,000
Family packages or discounts for locals may also be considered.  The addition of admission fees will require additional logistics, including event gates, perimeter fencing, and increased security and staffing.


In 2018, Ho Road, Hum Road, and Ho Hum Road both north and south of Easy Street were closed during the 2 weekends of the Pumpkin Festival.

When considering layouts for the 2019 event, they were mindful of the construction areas for the Hampton Inn project, so access would be maintained.


The red banding would be the fenced area and the green sections are the street and lot closures.



The positives  for Layout # 1 include the retention of the town business-friendly event layout, maximized parking along Easy Street and in most of the surface lots, and a slightly larger footprint that provides expansion for the food trucks and the Beer Garden.  In 2018, many businesses in Spanish Village and along Easy Street experienced increased patronage due to  the natural traffic flows created by the event.



Negatives include security challenges at Easy Street crossings and additional access points, the event would be fenced for 10 days which would impact many businesses, and the larger size would increase the fencing and admission staff costs.  It was estimated that 4-6 entry gates would be required.  If the area around Spanish Village were not fenced, allowing a freer traffic flow, it would still require additional security to check wrist bands.



Estimated costs would include $12,000 for 3' high white picket fencing like that seen at the Thunderbird shows and a few areas of higher fencing where it was located last year, $45,000 for admission booths and staffing; and $110,000 for security, which assumes additional costs due to the opening at Easy Street, for a total of $167,000.  Changes in cost recovery if some of the attractions are only available on the 2 weekends, resulting in decreased admission fees Monday-Thursday, is yet to be determined.

The street and lot closures in Layout #2 include Ho Hum Road where it bisects the Gardens and, ideally, the lots on the west and north sides of 100 Easy Street.  The positives include a more compact area all of which is adjacent to the Gardens, maximized parking along Easy Street and in most of the surface lots, and more controlled access for admissions and security with at most 3 access gates.



The negatives include impacts on Carefree Consignment, Corrado's, and Elysian Desert Distillery due to the lot closures on the west and north sides of 100 Easy Street.  The layout is smaller and would require elements to be spread strategically throughout the Gardens, which will mostly impact vendors and potentially some of the vignette locations.  A preliminary study shows that all the elements would fit within this footprint.  However, the fully fenced Garden may negatively impact access to the businesses along Easy Street and in Spanish Village, integration that would occur more organically from Layout #1.



Estimated costs would include $10,000 for fencing; $25,000 for admission booths and staffing; and $55,000 for security,  for a total of $90,000.  Less security would be needed with the reduction in open areas.  The 100 Easy Street lot space rentals would be an additional cost for Layouts 1 & 2.  This would need to be negotiated with the owner, who was unavailable before the meeting.  The Town paid $1,500 for the use of 1 lot during the 3 days of the Christmas Festival.


This was the best information available at this early date.

Ms. Renfro produced comparison slides of the 2 layouts to help the Council make a decision as to the preferred layout.

Lyn Hitchon


Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com  If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me.  Feel free to share Carefree Truth with others on your list.
Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree.  Please support our merchants.