Economic impact of Wakarusa debated

story by Connie Las Schneider

The economic impact of Wakarusa 2010 came under close scrutiny by Franklin County officials in recent months. The four day mega-music and camping Festival brought 15,000 concert goers to Ozark in 2009 and 18,000 in 2010.

Figures released by Franklin County Treasurer Shelly Wilson showed July 2009 tax revenue at $85,276 for the 1% tax and $76,214 for the half-percent county sales tax for general use. July 2010 show a 1% amount of $74,949 and $66,966 for the half-percent tax. This translates to a 12% decrease in tax revenue for July 2010.

Wakarusa is a June event, but tax revenues collected in one month are credited to the next month’s income.

Did more than the recession figure into the 2010 tax revenue decline?

In tracking Franklin County tax revenue, Wilson noted a declining trend in the last two years despite the big spike in July 2009 tax revenue and lesser increase in July 2010. Overall, tax revenues for 2009 and 2010 stayed basically flat for the year, she added.

Wakarusa 2011 is scheduled for June 2-5.

COUNTY IMPACT
County administrators are perplexed, and for good reason. Tracking the economic impact of Wakarusa is not easy, said Wilson. Small local businesses, those most likely impacted by an event like Wakarusa, don’t file state tax revenue at the same time. Some file reports weekly, others monthly, quarterly, or once a year. And it’s uncertain when or if the small vendors that work the crowd submit tax collections.

Despite the extra tax revenue Wakarusa 2010 cost the county money, said Franklin County Judge Joe Powell. The road department paid for gravel and employee hours for road work at the State Highway Mobile Headquarters along Arkansas 23 — work that otherwise would not have been done.

Several off-duty police and emergency medical personnel were paid individually by Wakarusa organizers but the county was not compensated for use of county emergency vehicles such as ambulances and the local hospital incurred losses due to no-pay.

On the other hand, the County got tax revenues it would not have otherwise received. Additional revenue also went into the County Sheriff’s budget on bail forfeitures from offenders arrested during Wakarusa, according for former Franklin County Sheriff Reed Haynes.

OZARK IMPACT
Whatever the tax revenue numbers show for 2010, Ozark area business seemed ecstatic with the temporary upsurge in business, More than 20 local businesses interviewed after the 2010 event gave it rave reviews, according to a survey taken just weeks after the 2010 event by Chairman of the Advertising and Promotion Committee for the Ozark Area Chamber of Commerce, Royce Gattis.

According to Gattis’ research, all businesses were happy to have the extra business and some businesses said the event jump-started their business profits after disappointing recessionary spending caused slowdowns earlier in the year.

A few claimed profits from the event put their businesses back “in the black” for the year. Employment also went temporarily up as a few businesses reported hiring extra help during the event. The Cass job Corps reported 50-60 students from the school were paid to work during the event, and estimated the event brought in $15,000 revenue to these students, most spent locally during supervised shopping trips to Ozark.

Franklin County Emergency Medical Services (EMS) Coordinator Randy Boren also worked the event. Boren said off-duty municipal and county police officers and EMS personnel were probably paid a total of $5,000 to $6,000 by Wakarusa organizer, Pipeline Productions of Lawrence, Kan.

‘PIPELINE’ SUPPORT
During the 2010 calendar year, Pipeline reported spending more than $745,000 within the State of Arkansas, with $388,000 of that amount spent with Franklin County businesses and individuals. Waka’s share of that spend was $564,335 in Arkansas, with $272,484 of that spent with Franklin County businesses and individuals, said Pipeline executive and Wakarusa coordinator Nathan Prenger.

To support the local economy, Pipeline is focused on buying from local distributors whenever possible, Prenger said.

"Regarding the revenue impact of the festival to the region, we know from speaking with local businesses that our patrons had a direct and positive impact on the region. In producing the two events (Wakarusa and the Harvest Festival) we make a very conscious effort to spend locally whenever possible and economical,” Prenger added.

Wakarusa/Pipeline also plans to make a number of charitable donations to area agencies in 2011 and to continue their policy of purchasing as much local material and supplies as the area can provide. The Festival is also very eco-friendly, recycling more than 2 tons of garbage last year during the four-day event, Prenger said.

Wakarusa organizers want Mulberry Mountain to be their permanent site and are working hard to verify Wakarusa’s benefit to the county, said Dewey Patton, event director of Mulberry Mountain. From 2004 to 2008, Wakarusa was held at Clinton Lake Reservoir State Park near Lawrence, but that didn’t work out. According to Prenger, tight restrictions imposed by State Park officials caused them to look elsewhere and privately owned Mulberry Mountain was the perfect place.

Mulberry Mountain Lodging and Events leases their facilities to Pipeline, with Patton’s company receiving about $13,500 in revenue from lodging, food and beverages during Wakarusa 2010. That revenue is charged the statewide 2% tourism tax, plus the 1% and half-percent county taxes. Also, Patton said the facility continues to invest in improvements to its infrastructure and expand its offerings.

GROWTH CONTROL
According to the latest numbers on ticket sales for Wakarusa 2011, tickets are selling at a record pace. Early bird Full Event passes at $139 are sold out and the price has increased to $154, plus fees. Reserved campsites sold out in November 2010 and main venue camping is also sold out. Other camping options are still open. All tickets sold out last year, and with this year’s stellar line-up and current rate of sales, Wakarusa 2011 will be a sell-out, too.

To ensure Wakarusa never gets too big for its “permanent” venue on Mulberry Mountain, Prenger said the event will be capped at a maximum of 25,000 tickets to allow for adequate accommodations and a consistent concert experience.

Last week, Mulberry Mountain and Pipeline announced it would host the Zack Brown Band on April 15, 2011, and ticket sales are going well and could reach 10,000 or more.

Another big event promoted by Pipeline at Mulberry Mountain is the fall Yonder Mountain String Band Harvest Music Festival. Last year the three-day event featuring bluegrass and Americana music brought in 4,000, nearly doubling attendance from the 2009 Harvest Festival.