6. EDSR 05-14-2012REQUEST FOR ACTION
TO ITEM NUMBER
Economic Develo ment Authori 6.
AGENDA SECTION MEETING DATE PREPARED BY
May 14, 2012 Annie Deckert, Director of Economic
Develo ment
ITEM DESCRIPTION REVIEWED B~/
Elk River Arts Alliance donation request for ArtSoup 2012. Cal Portner, Ci Administrator
REVIEWED BY
ACTION REQUESTED
Consider donation request from Elk River Arts Alliance for their event ArtSoup 2012..
BACKGROUND/DISCUSSION
The Elk River Arts Alliance (ERAAA) has submitted a request for an EDA donation of $2,000- to
support their annual downtown arts event, ArtSoup 2012. The event has taken place for the past 14
years, is free to the public and is a significant downtown-Elk River promotion.
Last year at the June 13,-2011, meeting, the EDA approved the $2,000 donation. request. Commissioners
expressed concerns about donation requests and discussed exploring a donation policy. At their July.
meeting, the EDA discussed the creation of a written donation policy but did not move forward with a
policy. Commissioners indicated their desire to review requests on a case-by-case basis, provided the
donation resulted in an economic benefit.
Per the attached summary of the event provided by the ERAAA, they anticipate roughly 2,800 attendees
at this year's event. A survey was distributed to downtown business owners and festival goers from last
year's event. A representative from the ERAAA will be at the meeting to provide a verbal update and
discuss the economic impact
Along with the monetary contribution, the city has provided the following in-kind donations for past
events:
• Elk River Municipal Utilities places approxunately 6-8 banners on light poles along the
highway. Estimated staff time for two staff members is 2-3 hours, at $75/hour each, for a
total of $300 - $450/hour.
• Parks and Recreation waives the River's Edge Commons park usage fee; cost of $450.
• The Police Department sets up barricades and provides police reserve services as required.
Estimated staff time is 8 hours, at a cost of $28/hour, for approximately $224.
• The City Council recently set parking lot use fees at $825 for an event of this type. The
Council may elect to waive the fees when they consider the special event permit. If the fees
are waived, total in-kind donations for this event are $1,749- $1,949.
N:\Departments\Community Development\Economic Development\EDA to move\Agenda\Year 2012\5-14-12 EDA Agenda\5-14-12 ArtSoup
donation final.doc
FINANCIAL IMPACT
The requested expense was not approved in the 2012 budget. If approved, a reallocation from an
approved line item is required.
Staff recommends discussing this annual request during budget discussions. If the EDA desires to
donate annually, the budget should reflect the annual donation.
ATTACHMENTS
^ Request letter from Elk River Area Arts Alliance dated 4-13-12
^ ArtSoup 2012 Summary
^ ArtSoup 2012 Budget
^ EDA Minutes dated 6-13-11
^ Email from David Raymond dated May 9, 2012
Action Motion by Second by Vote
FOIIOW Up
N:\Departments\Community Development\Economic Development\EDA to move\Agenda\Year 2012\5-14-12 EDA Agenda\5-14-12 ArtSoup
donation final.doc
~ •
~~ ~• . ~• ~
Ilz~n~
P.O. Box 737 716 Main Street Elk River, MN 55330 763-441-4725 info@elkriverart.org www.elkriverart.org
Request to the Elk River EDA
From the Elk River Arts Alliance
April 13, 2012
The Elk Rrver Arts Alliance is requesting a grant o€ $2,000 from EDA in support of the
June 15th downtown Arts Festival. This festival has been a biennial event for 14 years.
However, due to a number of requests from local businesses, the Chamber, City
officials, our local artists, and members of the community, the Alliance's Board has this
year made it an annual event. It is the only festival held in the downtown.
We believe this festival is especially important during this economic downturn which has
adversely effected a1i of our constituencies; downtown businesses, artists, and our
clients who are staying closer to home. This is the Alliance's largest of 20 annual
events and over 100 art classes that bring approximately 9,500 people into the
downtown area. We believe our programs and services help keep our community
strong and vibrant.
For your information I have attached both a budget for the festival and a summary of
festival events. You will note that the cost of the festival is close to $20,000, most of
which is distributed in Elk River. Since the festival is free to the public, we rely on the
support of people and local businesses who agree with us tha# events like #his one are
financially beneficial for the downtown as well as for its image. We have included as
many local organiza#ions as possible; local restaurants rather than outside food
vendors, local arts and cultural organizations, as well as local artists and performance
groups.
The Arts Alliance appreciates the support EDA has given the festival in the past, and the
opportunity to request continued support.
Sincerely Yours
~~~.~~~
David Raymond
Elk River Arts Alliance Board Chairman
c/c ArtSoup 2012 budget
Summary of Events
Art Classes Arts in Harmony •ArtSoup Gallery & Gift Shop Performance Series Strings for Youth
ArtSoup 2012 summary of events
This is the first year that ArtSoup, traditionally a biennial event, will be an annual one. This change was
requested by a number of local businesses, the Chamber, some city officials, our artists, and members of
the community. We expect about 2800 attendees.
Artists' booths
We expect 40 to 45 artists will display and sell their artwork in 10' x 10' tents along Main Street and
Jackson Avenue. In addition, there will be blacksmith, potters wheel and painting demonstrations
interspersed with the booths.
Great River Energy Stage Performances
Despite a light drizzle all day, the nine performances on the main performance stage were well attended in
2011. This year's performance groups will include: Z Puppets Rosenschnoz, Land of Lakes Choirs, Elk
River German Band, Rhonda Laurie and Paul Christian's band.
Community Tent Activities
The 35'x90' Community tent is partitioned into three areas to accommodate the three activities listed
below, The Performance area had a small stage.
1. Children's activities
The Alliance and Community Education teachers offer art projects for the children. The children's art
activities have consistently been a big hit with families.
2. Art and other cultural organizations' display tables
The collective marketing of local programs is an eye opener for the public and well received.
3. Performance and Demonstration Stage area
A number of the arcs organizations put on demonstrations and story telling sessions. Those that attended
and completed the survey felt it was a good addition and should be kept in the festival. AlI were surprised
at the number of art programs there are in our region.
Strolling Entertainment
Paul Imholte will again provide music on the streets; we expect to have chalk artists showing their skills,
and a face painting booth. Other performers will be strolling through the event all day.
Button Business Promotion
The button sale is a way of advertising the event and increase business sales with discounts in their stores
for those participants who buy and wear their buttons. This is a win-win situation for all concerned.
Food Service
Using local restaurants rather than outside food vendors has been very successful for the downtown
restaurants. The six participating restaurants made sure they provided different festival food; hamburger,
hot dog, finger food, wild rice soup, sandwiches, corn dogs, wings, etc. All surveys from festival goers
and the business community rated this change highly successful. Interspersing them between the artists'
booth was welcomed by the artists.
Three Art Exhibits
A Juried Art Exhibit in an adjacent store front, the Schroeder Studio student show in a tent, and the
Gallery's June exhibition will highlight regional artists.
Pro al Bud et
'Expenses such as travel, airfare, mileage, lodging and food .are no longer accepted expenses
~'"' Applicants who are redpients of Minnesota State Arts Board or CMAB operating funds (community support) I
I cannot include or prorate regular administrative costs in any project grant proposal budget I
""* Round dollar 5 urea to the nearest dollar
P I B 1 Descri Planned E
A. Contract PersonnellArtist's Fees, HonorarialStipends
List each name/title method of calculation i.e. hours rates etc.
A. Awards for the 'uried show $500.00
Jurors $50.00
S#a a and Street Pertormers $6 400A0
Staff 8~ Volunteer hours not included $0.00
$0.00
o.oo
$0.00
Total A Ex sea s8 950.00
B. Su ies $ Materials ex ndable items onl
Su ies $500.00
Posts 100.00
Evaluation Surve s 50.00
Printin 2000.00
0.00
0.00
0.00
0.00
Total B Ex Haas 2 650.00
C. Public Printin Ads romotbnal items
ECM ne r ads 7 800.00
Sun Press news r ads 800.00
Button costs 200.00
$0.00
Total C Ex uses 2 800.00
D. Other evaluation of ro act rental of s ce or ui meM
E ui ment rental tents si ns tables chairs 950.00
C of Elk River rentals 8~ utilities 00.00
Sound and li hts 2000.00
$0.00
Total D Ex Haas $7 350.00
TOTAL PROJECT EXPENSE
;19,75.00
PROPOSAL REVENUE / Descri Planned Revenue
A. Cash on hand bud eted for this ro I
$800.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total A Revenue 800.00
B. Contributions rants 8 revenues for this ro sal on AntlCi ed
List name of raptor and assodated rant amount.
Received
In-kind contributions are not acre ted as revenue Funds not received
Great River Ene Foundation $0.00
Central MN Arts Board $0.00
Lions Club $1,000.00
Ci of Elk River $2 000.00
Individual Contributions $450.00
Brochure ads from businesses $1 500.00
First National Bank $2 0.00
$0.00
Total B Anticl ted S Received Revenue $14 950.00
C. Ean~ed Income
List sources, ticket price (if applicable), number of tickets you anticipate seAing, fees charged, advertising, fundraising, etc.
In-kind contributions are not acce ted as revenue
Art Sales $500.00
Ent Fees $2 000.00
Button Sales $1 500.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total C Revenue 000.00
TOTAL PROJECT REVENUE
Funds Received
$3 000.00
$5 000.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
s~s,~sa.oo
MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE 13, 201 I
Members Present: President Touchette, Commissioners Dwyer, Gumphrey, Motin, Tveite,
VG'estgaard, and Zerwas
Members Absent: None
Staff Present: Economic Development Manager Annie Deckert, Planning Manager
Jeremy Barnhart, and Senior Administrative Assistant Jennifer Johnson
2. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Economic Development
Authority was called to order at 5:30 p.m. by President Touchette.
2. Consider Agenda
MOVED BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER TVEITE TO APPROVE THE JUNE 13, 2011 EDA
AGENDA. MOTION CARRIED 7-0. _.
3. Co sider Consent Agenda
MOVED BY COMMISSIONER ZERWAS AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE CONSENT AGENDA AS
FOLLO~PS:
3.1. MAY 9, 2011 REGULAR MEETING MINUTES
3.2. CHECK REGISTERS
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 7-0.
4. Gpen Mike
No one was present
5. ~ec~uest by Elk River Area Arts Alliance - 2011 Art Soup
Ms. Deckert presented the staff report.
Wendy Simenson and Deb Opticius, Arts Alliance members representing the ArtSoup
festival, explained the Alliance's plans for the 2011 ArtSoup. They requested the EDA
contribute $2,000, consistent with previous year's contribution.
Economic Development Authority Minutes
Page 2
June 13, 2011
Commissioner Motin expressed concerns with the Alliance's decision to only allow local Elk
River food vendors to sell food and felt that more revenue could be received if they allowed
outside vendors.
Ms. Simenson explained the decision to keep the food vendors local and explained the costs
being charged for advertising in a brochure that would be distributed the day of the event.
Commissioner Tveite questioned why the City Council requested the EDA to review and
approve a donation.
Commissioner Zerwas stated he felt it was more a decision the EDA should approve since
the event would be held downtown and by donating, the EDA shows support to the
downtown businesses.
Commissioner Dwyer wasn't comfortable with the donation and felt in the future, a
donation policy should be put in place for future requests.
Commissioner Tviete asked Ms. Simenson if the event would still take place if the EDA did
not donate any funds.
Ms. Simonson said the event would happen but the budget for the rest of the pear would be
affected with this donation.
Commissioner Motin indicated he would be okay with the donation, as long as it was
understood this would not be a reoccurring donation from the EDA.
MOVED BY COMMISSIONER DV~VYER AND SECONDED BY
COMMISSIONER ZERWAS TO APPROVE A DONATION TO THE ELK
RIVER AREA ARTS ALLIANCE FOR THE ARTSOUP EVENT IN THE
AMOUNT OF $2,000. MOTION CARRIED 7-0.
6. Discvs~ion and Appointment of Executive Director
Ms. Deckert presented the staff report.
Commissioners discussed the hiring process and felt that although they feel Ms. Deckert is
highly qualified to be economic development director and support the City Council's
decision, the City Council should have consulted the EDA before filling the position. It was
agreed in the future the City Council would consult with its boards and commissions before
approving a new hire.
They also discussed the title of manager versus director, and members decided the title
should be changed to director to not only remain consistent, but also to reflect the role of
the position as one of director.
MOVED BY COMMISSIONER TVEITE AND SECONDED BY
COMMISSIONER GUMPHREY TO APPOINT ANNIE DECKERT AS
EXECUTIVE DIRECTOR OF THE ECONOMIC DEVELOPMENT
AUTHORITY. MOTION CARRIED 7-0.
•
Huebner, Debbie
To: Deckert, Annie
Subject: RE: ArtSoup- economic benefit
Subject: Re: ArtSoup- economic benefit
On May 9,-2012, at 5:00 PM, "David Raymond" <raymond.d~C~~mail.com> wrote:
> Hi Annie,
> I am happy to have seen you today! As we said at the meeting, our survey in the past has been less formal than would
be desirable however we do know the following.
> Economic impact of ArtSoup:
> Arts Alliance budget for ArtSoup is approximately $20,000.
> This comes in part from donations by local businesses and individuals. Other income is earned through Ad sales and
promotions and fees paid by the participating artists. Some of the funding come in the form of grants from the Central
MN Arts Board. A large part (about two-thirds) of this budget goes right back to the local community to cover needs for
the festival. Only about a third of the budget ends up going to concerns that are outside our area.
> An estimated $6,000 in total is earned by participating artists who sell their art during the festival. Almost all of these
artists live in or near our community.
> Restaurants participate by offering food outside their shops during the festival instead of having outside vendors come
into town.
> The other downtown businesses benefit by having a large number of people (estimated at about 2200) coming into
town where they have a chance to see what is available.
The Arts Alliance has heard from several (McCoy's Pub, Sweet P's Ice Cream, Antiques Downtown) that business during
ArtSoup is increased significantly.
> The other intangible is the sense of community ArtSoup helps build by bringing the public downtown.
> If there is any other way I can help, let me know!
> David