Tourism: Negotiated
Contract Reflects Entrance
Policy Compromise
Local business owners are upbeat about the new five-year contract negotiated between the city of San Diego and Street Scene promoter Rob Hagey Productions.
In the agreement, the city will receive $317,724 in flat fees over the course of the contract, plus additional “success fee” funds if the number of event tickets sold exceeds pre-established figures.
Although permits will be needed each year, the annual Downtown music festival will operate with several new provisions.
Among them are options for attendees to leave and re-enter and fewer set-up days allowed. Also, Hagey and the city have discussed the event gradually moving east.
Many of the changes have been sought for years by Gaslamp merchants, who have often asserted the Street Scene event and set-up hinders their ability to make a profit.
Because the business owners had been consistent about their concerns, Deputy City Manager Bruce Herring was able to address the issues when he negotiated the contract with Hagey, said Carolyn Wormser, director of special events for the city.
Rob Hagey, president of his La Jolla-based concert promotions company, said he’s pleased about the new contract.
“We rose to the occasion to address concerns,” Hagey said.
Concessions
One of the major concessions was allowing in-and-out privileges for the thousands who attend the three-day event.
It will increase his costs for infrastructure and security, said Hagey, who didn’t give details.
The new entrance policy will also amplify the possibilities for people to counterfeit the attendees’ identification, which has used wristbands, he said.
Another concern is the liability of letting in people who could be inebriated, or simply having people sneak in, he said.
As a result of the complicated nature of the arrangements, Hagey said he will hire two security companies for Street Scene.
He also thinks it will be the best way to get the two companies’ best employees, rather than having one contract out additional work.
Overall, the event will be a “win-win” for everyone, Hagey said.
David Cohn, who owns and operates the Cohn Restaurant Group, used the same phrase. Cohn said a committee from the Gaslamp Quarter Association has asked for the in-and-out entrance for at least five years.
“It took a little time, but Rob realized that it would enhance the event and keep everyone happy,” Cohn said.
Compromises
Katherine Stuart Faulconer, current president of the Gaslamp Quarter Association, said despite Hagey’s concern about liability issues for people coming in and out of the event, he has complied with all of the merchants’ concerns, particularly the in-out entrance.
“It was such a hot button this year, so he finally decided to give it a shot and see what happens,” Faulconer said.
“We’re happy that he’s willing to do it,” said Cohn, who owns six restaurants and a nightclub in town. Two of the restaurants have usually been in the Street Scene area and two have been outside of it.
Estimating from other businesses and his own, he said the loss in profit during Street Scene can be “substantial.”
“Very painful” was how Eric Van den Haute, general manager of operations for Caf & #233; Sevilla, described it.
Van den Haute was pleased the event won’t involve Fourth Avenue, one of Caf & #233; Sevilla’s three Spanish restaurant, bar and club locations.
Van den Haute said the new contract has a lot of compromise for the local businesses.
“Let’s face it, it’s more palatable,” he said. “It’s something which we can better live with.”
