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HomeMy WebLinkAboutCSD-06-046 - Blues Brews & BBQS Funding Request ) ~ Community Services ~ Report To: Date of Meeting: Submitted By: Prepared By: Ward(s) Involved: Date of Report: Report No.: Subject: Community Services Committee April 10, 2006 Don Chapman, Facilitator, Special Events Don Chapman, Facilitator, Special Events (Ext. 2388) All April 5, 2006 CSD-06-046 BLUES BREWS & BBQS FUNDING REQUEST RECOMMENDATION: For information and discussion. BACKGROUND: This report is intended to provide updated information on the request for additional funding for the 2006 Blues Festival (Blues, Brews & BBQ's). In 2005, Council approved an operating grant for the 2005 Blues Festival in the amount of $10,200 (50% in kind) and an additional, one time only grant of $14,800, for a total 2005 contribution of $25,000. The 2006 Blues Festival annual grant request sought $30,000 funding. The request was not recommended by staff who sought to hold to the budget guidelines provided by the Finance Department, limiting grant increases to 0% unless a specific need was demonstrated by the organization. At the January 6, 2006 Finance and Corporate Services Committee meeting Council moved "That the 2006 grant to the Kitchener Blues Community in the amount of $10,200 as recommended by staff be approved." However, during the discussion Council provided the opportunity for the Festival to come back to Community Services Committee if they felt that they were unable to meet their funding needs. Subsequently, organizers met with staff and seek an additional $20,000 linked to identified benefits of growing the Festival in 2006. To grow the Festival requires consideration of a projected funding shortfall in advance of the Festival moving forward with booking acts and finalizing marketing material. This report identifies components of the Festival that are critical to its ongoing success and viability, outlines a strategic study in progress designed to address the long term operating plan for the Festival and summarizes options for providing additional support. CSD Report No: CSD-046 REPORT: Situational Assessment The Festival is entering its sixth year and has grown from a five-hour event at City Hall to a newly proposed (2006) three-day, multi venue, and signature Festival for the community. It is widely recognized as one of the major Blues Festivals in the country, however, additional resources - both financial and human are required to support the growth and future success of the Festival. The Festival has not for profit incorporated status and a mandate to: 1) keep the Festival free of charge to the public, 2) promote downtown and Kitchener, and 3) promote and use at least 50% local artistic talent at the Festival. The Festival also has developed two community wide outreach initiatives. Overall there are a number of successes: · Attendance at the Festival continues to grow with 2005 attendance in excess of 45,000 people over three days. · Hotel accommodations for the Festival have risen from 25 in 2002 to over 300 in the downtown alone. · Development of a successful "post performance program" which provides blues artists to downtown restaurants and clubs which in turn supports the economic viability of their operation. In 2006, the Festival is pursuing the following new/growth initiatives related to the Festival: · Growth of the Legacy program which identifies and provides opportunities for young emerging blues artists in the community · Introduction of a Blues in the Schools program, which exposes young audiences to the history and heritage of the Blues. · A developing partnership with Centre in the Square in bringing Blues artists to the community. · Support for the Kitchener Market with the continued development of the two-day, Matt Osborne stage. Strateaic Plannina and Lona Term Financial Develooment Through funding provided by the Trillium Foundation, the Festival Board of Directors has engaged the services of an industry consultant to provide a review of the management model, human and financial resource development and Board structure for the Festival. The intent of this study is to identify areas of improvement and opportunity and strategies, which will allow the Festival to meet the needs and challenges of its continued growth. Benefits of the Blues Brews & BBQ's Festival Staff has worked with this Festival for a number of years and is supportive of the development of the Blues, Brews & BBQ's Festival for the following reasons: 1. The Festival addresses councils endorsed strategic goals for the Special Events Unit with respect to: Enhancing Community Spirit and Pride, Bringing People Downtown and Supporting Event Development. 2. The Festival is developing alternative sources of funding as evidenced by the requested city contribution to the overall Festival budget decreasing on a percentage basis, as the festival operating budget continues to grow. 3. The Festival has taken the steps necessary to move towards a more self-sufficient model through Incorporating as a not for profit organization. They have also secured provincial (Trillium) funding to undergo a strategic review of the Festival operation. 4. Staff believes that this Festival has tremendous Tourism potential. CSD Report No: CSD-046 5. Consistent with a number of the recommendations in Culture Plan II, the Festival has developed outreach initiatives with respect to providing opportunities for local talent to be showcased as well as educational opportunities for youth. These initiatives include the mandated inclusion of local performers in the Festival, the workshop series as well as the Blues in the Schools program. 6. Festival organizers have developed post festival programming which directly benefits the businesses in the Downtown by placing Blues Artists in local clubs and restaurants. Financial Issues There are a number of issues that need to be addressed by the Blues Festival including: · Short term funding for the 2006 Festival. · Strategic plan for financial, human resource, Festival management and Board of Director development. This includes development of a presenting sponsor for the Festival, long- term sponsorship strategy and the continued evolvement of a management and board model to meet the growth needs of the Festival. While organizers have demonstrated a commitment to developing corporate partners and sponsors in order to make the Festival financially self sufficient, this process has not matched the growth and success of the event. Further, staff estimates that the impact of implementing the outcomes of their Strategic Planning will not be felt for a minimum of two fiscal years. Festival organizers advise that if the 2006 funding issue were not addressed, the following actions would result: · A two-day Festival instead of three with the elimination of the popular Sunday performances. · Cancellation of the Matt Osborne Stage at the Kitchener Market. · Cancel the workshops and outreach programs, which will also affect local musicians. Staff has identified the need to review how the City of Kitchener provides funding to support non-profit programs and services. The Community Investment Strategy was approved by Council for 2006 and is expected to take upwards of sixteen months to complete once approval is provided on the terms of reference. Included in this Strategy would be the prospect of examining how the City aligns financial investments in special events; an examination of the current budget for events, identification of specific tools and resources required to ensure their success, the impact of tourism and a review of opportunities for ongoing support for programs that enhance economic development through community sponsorship and marketing resources is seen to be a possible component in the terms of reference for this Strategy. Fundina Ootions Exolored: Staff of Special Events has a 2006 operating budget of $224,758.00. Staff of Community Service's Special Events unit explored the following five options: 1. Provisional Grant Current funding criteria preclude staff from recommending this option for two reasons: 1) organizations having received a grant through the annual grant budget process are not eligible for a general provisional grant, and 2) organizations can only request funding once, for one event. Further, while the General Provision 2006 budget currently has $65,853.00 in the account, Council direction to allocate almost 1/3 of this budget would greatly reduce support to other, yet unknown projects. CSD Report No: CSD-046 2. Pre-Commitment of Increased Annual Grant for 2007 There is precedent for this option, though it would not be recommended as it only serves as a short-term solution and the funding for future festivals (2007) would be compromised based on current funding guidelines. 3. Alternative Funding Sources Staff has engaged in discussion with Economic Development with respect to possible allocation of Economic Development Investment Funds to the festival. While the festival does have significant economic impact on the community, it is not within the current funding guidelines for the EDIF fund. Discussions were also held with Corporate Communications around the allocation of tourism funding. Currently, all funds have been directed to other projects. If it were possible to redirect alternative funding sources, tourism funding would make the most sense based on the tourism impact of the festival. 4. Re- Prioritization of Existing Special Events Operating Budget The Special Events unit has an operating budget of $224,758, which includes the annual funding for events provided by the Kitchener Downtown Business Association ($45,000). This funding currently is used to deliver a wide range of programming including Tapestry, Cruising on King, Tooney Tuesdays, Kidspark, Word on the Street, Oktoberfest in Your Downtown, Festival of the Night, BBQ Rib Cookoff, Festival de Velo Cycling, Firefighter Combat Challenge and One Book One Community. Staff has identified $5,000 from this operating budget that could be reallocated. This could result in reductions to other existing programming. 5. Over Expenditure of Operating Budget While approval of this option has been given in the past, it is not a recommended method of funding programming. Ootion Summarv However, after an exploration of the potential funding options, staff is unable to provide respond to the $20,000 request beyond a $5,000 increase from the existing operating budget of CSD's Special Events Unit. The Festival does not qualify for funds from the City's Provisional Grant. FINANCIAL IMPLICATIONS: The General Provision grant account currently has $65,853 as of March 30, 2006. Special Events Unit has an operating budget of $224,758.00. Funding within the current special events operating budget has been allocated to existing programming. Staff is prepared to redirect $5,000 of the operating budget with the understanding that it may require a reduction of programming in other areas. CONCLUSION: Staff is supportive of this Festival. Blues Brews and BBQ's is a signature Festival for this community. It meets the three strategic goals of the Special Events unit in terms of supporting economic development, bringing people downtown and developing community spirit and pride. The Festival Board has gone to great lengths to ensure that their mandate is consistent with and supportive of the broader goals of the city. Aside from the demonstrated economic impact, the Festival has developed an effective outreach program that provides additional value to the entire community aside from the entertainment value of the Festival itself. CSD Report No: CSD-046 However, after an exploration of the potential funding options, staff is unable to provide a positive recommendation to increase the Festival's 2006 funding due to the constraints of the existing budgets and criteria of the provisional grants. Don Chapman, Facilitator Special Events Enterprise Division, Community Services AP