Festival-goers could pump $3.5M into local economy
The Common Ground festival rolls into Lansing's Riverfront Park on Tuesday, and it's expected to boost the local economy by an estimated $3.5 million.
The city and private managing partnership hopes the third annual extravaganza, which begins Tuesday, will draw more than 63,000 people downtown for six days of music, food and family entertainment.
And with them, more than $3.5 million spin-off economic benefits to the community.
And even though the festival lost money in its first two years, the event is doing as expected, said Steve Schmader, president of the world's largest professional organization for special events.
"They're doing great. I wouldn't be surprised if they break even this year," said Schmader, of the International Festivals & Events Association, which is based in Boise, Idaho.
Common Ground lost more than $98,000 in 2000 - its first year - when 48,174 people attended. Of those attending, 26,000 paid for tickets; the rest had sponsor tickets or were children younger than 10 who got in free.
Last year, Common Ground attracted 58,000 festival-goers - up nearly 20 percent - and reduced its losses to $33,190.
The festival replaced the Michigan Festival, a music and arts event that went bankrupt in 1998 after 11 years in East Lansing.
Although Common Ground organizers predict it will take three to five years to turn a profit, there's no standard formula, Schmader said.
"The goal is to provide a high-quality entertainment source, more to be used for economic development, a tourism draw and a source of pride for the community.
"It's a rarity to find events making big money. Breaking even is the goal of most," he said.
Estimating the economic impact a festival can have on a city is difficult, said Don Holecek, a parks, recreating and tourism resources professor at Michigan State University.
"You can't generalize the impact," he said. "The variables include timing, weather and a big issue: overhead costs.
"But almost breaking even and $3 million to local businesses that benefits the city - that sounds like a pretty successful festival to me."
It's wise to involve professional management in a new festival, as Common Ground has done, Holecek said.
The festival was co-founded by Kevin Meyer of Meridian Entertainment Group and Peter Sullivan, president of the city's Lansing Entertainment & Public Facilities Authority.
"We remain cautiously optimistic," Meyer said about this week. "Now it's up to Mother Nature."
Sullivan said accurate turnout predictions are tough, but the trend is in the right direction.
"We said last year we were hoping to increase by 10 percent to 15 percent. And last year, we were up 20 percent," he said.
General Motors Corp. is the festival's prime sponsor, contributing $100,000 to its $1,2 million budget, Sullivan said. And the city of Lansing adds about $100,000 in in-kind services, including police and fire department overtime, and park fencing.
City Finance Director Bob Swanson said the support, which isn't considered a subsidy, will continue "as long as it's viewed as a successful and growing event."
"It's something we want to support, to bring to people downtown."
Some of the money is used for permanent improvements at Adado Riverfront Park, Swanson said.
"In the first year, we put down planking on the old train bridge to make it a real walkway," he said. "We're also improving electric hookups."
A team of 300 festival volunteers and staffers work to bring music for most tasted to Common Ground - from classic rock and heavy metal to country and Motown.
There are more daytime activities for kids - those younger than 10 get free admission - including games, stage shows, rock climbing and in-line skating.
A new Crafter's Crossroads - with a craft show and an entertainment stage - is free to all, including those without a $25 daily festival ticket or $60 weeklong Common Card.
"I would expect an increase in attendance this year, if the weather cooperates, because of the added events," said Ken Love, spokesman for the Greater Lansing Convention and Visitors Bureau. "People spending more time at the festival translates into spending more money."
"I think they're doing a really good job of pacing it and not trying to grow the festival too big," he said.
But some say the festival holds little appeal for younger people. Stacy Drake, 26, walked by work crews setting up at Riverfront Park on Friday without interest. She said she went the first year, but isn't likely to return.
"It's probably something my mom and my aunt would like to go to," she said. |