Carefree Truth
Issue #802, December 20, 2019
Issue #802, December 20, 2019
Mayor Les Peterson noted that 2019 was the 5th year for the Carefree Enchanted Garden Pumpkin Festival, and the first year admission was charged. Entry to the Festival had been free for the first 4 years. Each year provided valuable lessons which strengthened the event in subsequent years. Many lessons were also learned in 2019. The Town and the Festival are now at a crossroads.
Admission charges were deliberated on for the 3rd and 4th year of the Festival but were rejected by the Town. Charging increases production costs by $250,000 to $300,000. It requires fencing, ticket booths, bonded people at the ticket booths, and logistical people to execute it.
Ray Villafane encouraged charging admission in 2019 after seeing other events around the Valley which charged fees. He felt he could make much more money than what he was paid for his artist fee. The focal point would still be the pumpkins. The pumpkin exhibits would be expanded and new shows and concerts added. The kids' zone would be expanded to include all of Hum Road.
Lessons learned this year included:
1. Lower attendance made it a better viewing experience. Those who came enjoyed it more than they did the previous year when it was 4 deep to see an exhibit.
2. There was considerable push back on parking issues from both residents and merchants, particularly some of the more successful merchants whose customers couldn't find parking spots.
3. Merchants were very upset by people wanting to use their rest rooms.
4. 10% of admission sales were through Groupon. General admission prices were lowered after disappointing attendance on the first weekend. Over the duration, and from all sources, the average admission price was $11.70.
Councilwoman Cheryl Kroyer added that, although there was a lot of negative push back on social media, those who came to the Festival and paid to get in enjoyed it. "The Villafanes really upped their game this year. There were more vignettes and more pumpkin carvers. Those who came both last year and this said it was well worth the money to attend." It was a shame that there was so much negativity about the admission charge on social media. She noted that even after the the Town responded to the negativity and the price was lowered, attendance did not increase significantly.
Mayor Peterson said attendance the second weekend was up, but he felt this was due more to the proximity of Halloween than to the price reduction. The admission charge seemed to be more of an issue for local residents. It seemed that about the same number of people still came from other parts of the Valley. Fencing was also an issue for local residents. The negative publicity on social media had a significant impact on attendance. "To Councilwoman Kroyer's point, there was resistance to coming, but those who came experienced a high level of satisfaction once inside."
Negative commentators said the Town was gouging people and trying to make a lot of money on this. The Town was simply trying to recoup the costs. The Villafanes said if admission were not charged this year, they would not participate. They suggested $35 per person after checking out prices for other events. The Town got them to agree to $15, a figure benchmarked with other local events. This was the lowest the Villafanes were willing to approve.
Without an admission charge, past attendance was difficult to ascertain. It was estimated at 75,000-100,000, with 20-30% repeat visitors over the course of the event because carvings were changing, keeping it fresh and exciting. Carefree has been going more towards a cost recovery model for events so there would not be so many out-of-pocket expenses. This year, the Town and the Villafanes put on a really great event, but the negative social media really impacted attendance and cost the Town and the Villafanes a lot.
The going-in estimate was for a 50-60% reduction in paying attendees, with a break-even point at approximately 39,000.
A contract was negotiated with Villafane Studios for a 50/50 split after all the Town's contracted production expenses were recovered. The final figure on attendance over the course of the event was 23,562, with somewhat higher attendance the second weekend. The revenue totaled
$354, 404, not including in-kind value.
Negative commentators said the Town was gouging people and trying to make a lot of money on this. The Town was simply trying to recoup the costs. The Villafanes said if admission were not charged this year, they would not participate. They suggested $35 per person after checking out prices for other events. The Town got them to agree to $15, a figure benchmarked with other local events. This was the lowest the Villafanes were willing to approve.
Without an admission charge, past attendance was difficult to ascertain. It was estimated at 75,000-100,000, with 20-30% repeat visitors over the course of the event because carvings were changing, keeping it fresh and exciting. Carefree has been going more towards a cost recovery model for events so there would not be so many out-of-pocket expenses. This year, the Town and the Villafanes put on a really great event, but the negative social media really impacted attendance and cost the Town and the Villafanes a lot.
The going-in estimate was for a 50-60% reduction in paying attendees, with a break-even point at approximately 39,000.
A contract was negotiated with Villafane Studios for a 50/50 split after all the Town's contracted production expenses were recovered. The final figure on attendance over the course of the event was 23,562, with somewhat higher attendance the second weekend. The revenue totaled
$354, 404, not including in-kind value.
Expenses totaled $519,655, excluding overtime, bringing the net cost to $165,301. The 2 years previous to this, the costs were $80,000-$100,000.
Reactions:
1. The Carefree Restaurant Association said there were more disgruntled customers than during any previous Pumpkin Festival. There was much negative PR on social media. Other issues noted were parking problems, charging admission, use of restrooms.
2. The merchants were very negative, citing parking and restroom usage issues, with little or no increase in business. "They said, 'Don't do this again' ".
3. Residents were negative to coming but expressed satisfaction when visiting the Festival. Complaints included the admission charge and lack of parking. There was a great deal of negative social media PR.
The Mayor noted that we almost lost Centerpoint Events, the event coordinator, half way through the Festival because the merchants and others were so rude to them. This would have been "disastrous".
Additional Factors:
1. People complained about lack of access to the restrooms and the playground equipment in the Gardens for those who were not attending the Festival. One man had his attorney contact the Town threatening an injunction because his grandchildren couldn't access the playground equipment. A Porto-John was placed outside of the Gardens to address the restroom issue. It was not used even once.
2. There is declining participation by business and property owners. The owner of Spanish Village no longer supports having the Kids' Zone on Hum Road due to lack of parking for his tenants.
3. With the development of the Hampton Inn and the townhouses, overflow parking will be eliminated.
Villafane Studios objective is to generate additional income beyond their Professional Services Fee. They strongly believe that their concept is capable of generating higher income for them. Villafane Studios believe they could better meet their future financial objectives in a larger venue with greater parking capacity, and located where there are both a greater concentration of people and where the residents are more receptive to paying a competitive admission price.
Vice Mayor John Crane noted there were intangible costs as well as the negative net cost of the event, such as lost business for the merchants. The Pumpkin Festival has grown and been fun, but this year was much more difficult due to charging admission. It was well thought out, not arbitrary, but it is a model that has proven not to be successful. "Maybe the program has run its course."
Ms. Kroyer said the marketing plan was presented 2 months ago. It was a year of transition. They didn't think they would get to this point this fast. It looks like it's time to get out of the event business and to rely on the businesses that are here. The Hampton Inn and the townhomes are coming, and there are more successful restaurants now. At this point, Carefree should be looking more at building economic development, which was being looked at in the 5 year plan that is in progress. Mayor Peterson agreed. Events were always looked at as in interim strategy to generate energy and confidence that people were willing to come to Carefree. The Town has gotten through that stage.
Councilman Gene Orrico said there is no way to tell how much sales tax revenue was lost. The Festival took all the parking at Spanish Village. All the residents he talked to were unhappy about paying admission when they weren't going to the Kids' Zone or the Haunted House.
Vice Mayor Crane said the Festival had been done to promote economic development and it had been a source of civic pride in years past. "What happened?" The event and how the Town was portrayed in social media was negative, as was the experience we had this year. If you look at economic development, we already have positive things going on in Carefree. There aren't many vacant lots left in the downtown. "We're on the right track." Social media showed that the civic pride in the event is gone. The Vice Mayor saw no reason to continue it.
Ms. Kroyer noted that initially they were doing it for the businesses, to get people up here so they would see Carefree and come back. This year the residents were not happy, the businesses were not happy, and the Villafanes were not happy, so why are we doing it?
Councilman Vince D'Aliesio said that a good community continues to evolve. The event was a success for the last few years, although granted no admission was charged then.
This was a big learning year for everyone that ended in a mutual parting of the ways. But there are lots of exciting things on the horizon in this town that will change the face of the community going forward and will make the downtown core self sustaining. Carefree is continuing to evolve and grow. Ms. Kroyer added that Carefree will be a great place to live for years to come.
Councilman Stephen Hatcher felt that future events should be smaller and focused on the community. Mr. Orrico said the event has outgrown the venue. He said he had pointed out months back, "You'll never make an artist a business person. Artists work from a different side of the brain than a business person. You can't train an artist in a couple of years to be a business person. Either you are or you aren't". Mr. Orrico added that Ray Villafane didn't have enough pull to even get to a break-even point. "It's over."
Mayor Peterson stated that the future event focus would be on the residents and the community. Ms. Kroyer agreed that everything should be looked at from a community perspective from now on, and not on trying to attract the world. Everyone on the Council echoed this sentiment.
Mr. D'Aliesio said that he is a resident, as well as a Councilman. He challenged people to come up with solutions rather than criticize. "It's easy to be an armchair quarterback. If you have solutions, share them rather than just attack." He thought that was fair.
https://vimeo.com/377693085
Lyn Hitchon
Prepared by Carefree Truth
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