SnowGlobe wants 10 year extension, say they contribute $14M to local economy annually

SnowGlobe, the annual outdoor music festival in South Lake Tahoe, has come to town over the New Year's Eve holiday since 2011, and now they want to add ten years to their contract that expires this year.

During Tuesday, August 15th's South Lake Tahoe City Council meeting, promoters will make a presentation to the City outlining their plans, showing how they think they can become the largest funding source of South Lake Tahoe projects and non-profits.

"We are making a preliminary proposal to the City of South Lake Tahoe for a ten year partnership deal (with two-five year extensions), which will enable us to be a more dedicated partner to the community, its non-profit partners and its residents for many more years to come," says SnowGlobe in a copy of their Tuesday agenda item.

Noise, public safety and drugs have been a major concern each year, but organizers say they were responsible for bringing in over $6 million in visitor spending to the South Shore in 2016, $403,465 in Tourist Occupancy Tax, and millions more in economic output.

After the 2016 festival, heavy snows began in South Lake Tahoe, leaving behind truckloads of mats, outhouses and temporary buildings that were removed months later after the snow melted.

SnowGlobe hired the company New Economics & Advisory to do an economic survey about the impacts of the winter festival on the community. In it they say SnowGlobe is responsible for 65,592 visitor nights on the South Shore during the December 29-31 event.

Their proposed terms to be presented on Tuesday:

1) We propose a 10 year venue lease agreement (in addition to 2017/2018 editions) with two five year extensions, of the Community Playfields & Bijou Park with flexibility to modify footprint and layout (subject to mutual agreement) over time, as new circumstances and opportunities present themselves;

2) Event exclusivity in favor of SnowGlobe in its music genres within the City of South Lake Tahoe;

3) Agree to work together to provide SnowGlobe the venue footprint to grow the event safely and steadily over time;

4) In return for the certainty of this long term agreement, SnowGlobe will make a very substantial long term dollar commitment to the City of SLT, the Community Playfields and Bijou Park;

5) Our economic goal is to align SnowGlobe and SLT interests through both short- and long-term economic incentives:

- SnowGlobe to make upfront partnership investment to SLT (to an entity of SLT's choice) of $25,000 upon signing of long term
agreement, allowing for an immediate positive impact to the SLT community
- to contribute an increasing amount of money per ticket sold to the City of South Lake Tahoe over 2017-2028
- SLT sponsorship and expense reimbursements eliminated beginning with the 2017 event
- Our belief is that SnowGlobe will likely be the largest private funding source of SLT community projects and non-profit organizations (if not the largest) over the next decade

6) Over the life of the first 12 years (including 2017 + 2018) of this agreement, we estimate that SnowGlobe would directly contribute approx. $300,000 to SLT and generate -$160,000,000 in net economic impact

7) When taking into consideration the contributions of SnowGlobe to the City of SLT and the elimination in costs to SLT the net overall economic benefit is approx. $900k over the life of the proposed agreement

Financially, promoters say they will give an upfront investment for playing fields to the City this year. Since the field they will be using is new it is unknown what effect the equipment and people on top of it will be.

In the past, the City had to pay SnowGlobe $25,000 plus cover the costs of police, fire, transportation and garbage. If the new ten-year contract is approved the concert promoters say they'll forego the payment for 2017 and 2018 and reimburse the City for expenses in the amount of $50,000.

They also say they'll start contributing more of the 3-day ticket revenue.

In their presentation, SnowGlobe promoters will say: The total projected direct cash contribution from SnowGlobe to SLT during the life of the agreement is $295,000 and total economic benefit to the City of SLT of $895k over the life of the contract.

During the seven years of the even there has been one death, several hospitalizations and arrests. During the last two festivals, South Lake Tahoe Fire Rescue responded 19 times for medical transport.

To make a comments on agenda items, visit the agenda website: http://www.cityofslt.us/index.aspx?NID=84