City Council Minutes 2015 10 13 SP

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City Council Meeting Minutes October 13, 2015 Page 8 of 18 Economic Development Direction DeJong reported Jim Tienken and Mayor Pro Tem Dalton have been working on discussion points for a proposal for the City and the Downtown Business Association (DBA) to work on the Street Faire for 2016 and beyond. Street Faire in the 2016 proposed budget — Current proposed 2016 budget includes $25,000 to match a similar amount from the DBA for flowers and lights. Discussions with the DBA on the financial structure and costs for 2016 have resulted in the following proposed outline: o Flowers and Holiday Lights become sole City responsibility. Cost $50,000 total with $25,000 for flowers and $25,000 for lights. City to take over these operations, likely contractual, not City staff. o Street Faire (SF) Concept: • The new SF concept is a 50/50 split of all SF expenses. This will include splitting the cost of a new paid SF Coordinator. • A Committee composed of DBA and City representatives will share the SF financials and make necessary decisions conceming the Faire — 2015 revenue including beer sales, sponsorships, fees and annual membership fees for the DBA and the $20,000 City contribution; total revenues $409,000; costs $379,000; for a net positive of $30,000. • If after the season, the SF is revenue negative, the City will absorb any losses. • If after the season, the SF is net revenue positive, the net will be split between the City and the DBA on a basis yet to be determined, with the understanding that the DBA needs capital going into the first six months or so of the year to pay band deposits and related expenses. • The City and DBA will work together to hire someone for the position of SF coordinator /director /supervisor, possibly using the City's request for proposals process. • DBA to retain artistic autonomy concerning musical palette, genre, band size and budget. Number of concerts still under discussion. • DBA to maintain creative control over marketing materials. • Based on previous performance of nine evenings /bands, staff projects the City's net cost will be in the $110,000 range assuming a 50/50 split of net revenue. Mayor Pro Tem Dalton noted the Street Faire made enough money to make back the costs plus the $50,000 the lights and flowers. All revenues go to pay expenses and any surplus would be divided on some formula between the City and the DBA. The City would pick up expenses if greater. COUNCIL COMMENT