Pirate Fest plunders city of Las Vegas’ bottom line

Two years ago at a council meeting, Mayor Carolyn Goodman and I were wondering the same thing: Why was the city giving a for-profit event in Councilman Ricki Barlow’s ward a break on park fees worth thousands of dollars?

I understand waiving park fees for a nonprofit event.

But Pirate Fest is a private business. It’s put on by R&J Productions, which created a Halloween event at Meadows mall.

Goodman asked the right questions, creating obvious panic for Barlow.

“The fee waiver policy only applies to nonprofits,” she said. “I’m wondering how we favor this one for-profit over another. It’s a beautiful event, but how can we go forward with a for-profit?”

Barlow defended the loss of cash to the city. “These are cultural events the city can’t do for itself.”

The council approved the waiver for the family-friendly event because it was less than two weeks away. But Goodman asked City Manager Betsy Fretwell to create a written policy to guide future councils.

City records show the city waived a total of $49,400 in park fees for Pirate Fest over three years, in 2013, 2014 and 2015. The event returned $1 a ticket to the city, but the city was still out out $31,580.

Shiver me timbers!

In March 2015, the policy and procedure governing fee waivers involving for-profits was approved.

“Per policy we can waive fees to help events get a foothold in the first few years of operation,” city spokesman David Riggleman said.

It grants fee waivers for up to three years — and claims there is no fiscal impact.

Personally, if I don’t get money I am due, I count that as a fiscal impact. But I’m not a government.

The fourth Pirate Fest runs Friday through Sunday at Lorenzi Park. Once again, park fees have been waived. The rationale for preserving the fee waiver is that the policy didn’t take effect until 2015.

Ahoy, me hearties!

Does it make sense that the city of Las Vegas is sponsoring for-profit events? Even if the city gets publicity in exchange?

So far, fees have been waived for just two businesses: Pirate Fest, which drew nearly 9,000 people last year, and the Life Is Beautiful festival, which drew more than 100,000 people last year, yet has lost more than $10 million in its first three years.

About $200,000 in city fees have been waived over four years between the two events.

If Pirate Fest stays afloat, the city will continue to get $1 per ticket. So the city could get back the $31,580 it waived in the past three years. The event’s highlight is the Zappos Cardboard Regatta. The event includes live entertainment, music, food, strolling characters, games, activities, a beer garden and around 40 vendors.

Admission costs between $10 and $15.

The city waives about $40,000 in fees each year for Life is Beautiful, the music and food festival celebrating its fourth year this September.

“We also allow the festival to use city-owned property near the old City Hall. In exchange for these things the city is listed as a Gold Sponsor, which means the city logo is shown on all signs, printed materials, news releases, etc.,” Riggleman explained.

The city receives no payments from Life is Beautiful, but an economic study predicted out-of-town visitors would inject more than $20 million into the local economy.

Do other start-up events know they can ask for these breaks if they meet the city’s criteria? To do so, an event must be a benefit to residents or visitors; support any of the City Council’s priorities; provide a financial incentive and benefit for the city; demonstrate an economic benefit through a credible economic impact study; and the organizer must outline how the event will become self-sustaining.

Clark County’s parks department runs a tighter ship. No fee waivers for parks, buildings or theaters, except for other local government agencies providing mutual agreements. The county charges less for community events than it does for commercial events.

I’m fine with the city of Las Vegas helping nonprofits with waivers. But subsidizing two businesses for four years through waivers is enough to make any taxpayer impersonate a pirate: “Arrr!”

It seems odd that this sweet deal has benefitted just two businesses. The city has opened a door that’s going to be difficult to shut.

Jane Ann Morrison’s column runs Thursdays. Leave messages for her at 702-383-0275 or email jmorrison@reviewjournal.com. Find her on Twitter: @janeannmorrison