It appears the City of The Dalles is picking winners and losers in its underwriting of events with a methodology that is just plain baffling.
A prime example of this inconsistency played out on Monday, July 25, when concert promoters Nolan Hare and Randy Haines reported the loss of almost $5,000 of city money that had been invested in a July 3 show.
In May the city agreed to pay up to $96,500 to help Hare and Haines hire musicians and market three concerts on July 3, Aug. 13 and Sept. 10.
In return, the city receives 100 percent of the revenue from ticket sales, but takes a loss if sales come in lower than expected, as recently happened.
Hare and Haines keep revenue from vendors and sponsorships.
The deficit for their first concert, which headlined rising country star Dallas Smith, would have been nearly $9,400 if Hare and Haines had not donated $4,500 of their own profits from vendors and sponsorships.
Now let’s compare this situation with how the city treated the Fort Dalles Fourth Committee in 2015.
In both cases, the concerts were part of The Dalles’ Independence Day celebration, but the Fort Dalles Fourth, run entirely by volunteers, had a broader mission of providing a fireworks display and a full slate of activities as well.
Doug Kirchhofer, then president of the Fort Dalles Fourth, approached the council in July 2015 with a request for $5,000 to cover a deficit in ticket sales for country singer James Otto’s concert. About 1,500 people braved the July 3 show in 113-degree heat.
Instead of being showered with support, as was done with Hare and Haines this week, city officials only agreed to cover the deficit if the Fort Dalles Fourth partnered with the The Dalles Area Chamber of Commerce to create a “sustainable business model.”
It should be noted that the city had already provided the Fort Dalles Fourth with $25,000 for the 2015 fireworks display.
Mayor Steve Lawrence told Kirchhofer last summer that it was normally promoters who took the risk and shouldered the loss if things didn’t go well.
“Because the temperatures were high and they didn’t have adequate sales, I don’t think we should give them the $5,000, but I don’t have a vote. So there you go,” said Lawrence to the council.
Fast forward to the treatment of Haines and Hare in 2016 when the stakes are much higher because more taxpayer money is on the line.
Weather was not a factor in their loss because the concert took place under ideal conditions. Yet only 942 tickets were sold.
After hearing that the city had lost money, Lawrence was nothing but supportive of Haines and Hare’s efforts.
“I know there is an argument that this is something government should not do,” he said. “But I think the government should look at the overall community. If this stimulates the economy and brings enjoyment and a better quality of life, you should do it. That’s why I support it 100 percent.”
The council didn’t seem to feel it was their place to find out how much Hare and Haines had profited from the joint venture.
Lawrence noted that entertainment was their business, and that they shouldered risk too and put in plenty of hours.
Conspicuously absent from Monday’s meeting was any discussion of changing the funding formula so that the city could also get a share of vendor sales and sponsorships from concerts, at least enough to recoup taxpayer dollars.
Councilor Timothy McGlothlin told a reporter that he voted against the concert series funding in May because he felt a better deal should have been negotiated. We agree.
The Fort Dalles Fourth was warned that the city could not be counted upon indefinitely to provide $25,000 for fireworks, an event expected to draw visitors to town.
Meanwhile, Hare and Haines have been assured that the city has no qualms about fronting almost four times that amount for their concert series, in large part because they are drawing visitors to town.
This situation is sort of like the city council, in its role as the Columbia Gateway Urban Renewal board, agreeing to buy and then give away some downtown buildings to promote growth, while other developers are asked to pay full price.
Credit needs to be given to Hare and Haines for coming in well under their admittedly conservative $40,000 budget for the July 3 concert.
They had hoped to sell 2,700 tickets, and needed to sell about 1,500 to break even, so the city was spared even more loss due to the fact that the bill for the concert came to only $26,531. However, having the promoters and city paint the loss as a success, as happened this week, is not a responsible way to do business, especially with public money.
Councilor Russ Brown objected in May to the city funding a private venture that was a “want” when there were clear “needs,” such as road work, that he said should be addressed with any extra money in the budget.
A couple of years ago, the city identified 60 percent of its streets as being in poor shape. While work to chip seal and pave stepped up last year, plenty of roads still need repair.
We editorialized in May against the city underwriting the concerts, in part, because of Brown’s point, which underscores the true role of government. We also felt it was troubling to have Hare and Haine’s request for money fall outside the regular budget cycle, where it could have been properly vetted.
In this deal, two private businessmen are making money at the taxpayer’s expense. Wouldn’t every business like that opportunity?
No matter how you spin it, the citizens of The Dalles are going to be the losers in this deal if every dime spent by the city on entertainment is not repaid so it can be used for essential services, like public health and safety, or street repairs.
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