MUNCIE -- Downtown development lost $47,500 on this month's End of Summer Jam concert, but that won't stop plans for the downtown Masquerade Madness celebration on Oct. 28.
"No one likes to lose money, " said Dan Allen, president of the Muncie Downtown Development/Urban Enterprise Association Board. "We will recover from this."
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Ken Hughes, interim downtown development director, gave the board the bad news Tuesday. Only 2,600 people attended the Sept. 9 concert, which was moved to the afternoon so it wouldn't conflict with that evening's Ball State-Indiana football game at BSU.
The game, the nearby Matthews Covered Bridge Festival and other concerts in Indianapolis were all reasons cited by Hughes for low attendance at the End of Summer Jam, which featured '80s rock bands Cheap Trick and .38 Special. Cheryl Crowder, event coordinator, also blamed the low attendance on the afternoon concert time.
"Do we plan to do two concerts again?" asked Lewis Coulter, another board member and restaurant and bar owner. Lynyrd Skynyrd was the featured act at a more successful downtown concert in early June.
Hughes said only one summer concert was likely in the future, although other standing downtown events -- such as Mardi Gras and Rib Fest -- will continue.
Board member Phyllis Amburn, also deputy mayor, said the board -- which made the decision to go with an afternoon concert -- always ran a risk of losing money at events. The board made that decision after consulting with staff and sponsors.
A new downtown amphitheater, expected to be built next year, will reduce the cost of temporary stage, lights and other operating costs, she said.
And the downtown board has talked in recent months about leasing or selling its office at 407 S. Walnut St. The property is appraised at $180,000 and carries a $95,000 debt.
A financial review of downtown events illustrated that Mardi Gras is still the big moneymaker, earning $46,000 this year. The Beginning of Summer Jam made only $3,275.
Downtown events this year have made a net income of $12,975, Hughes reported, but adding other expenses, downtown development could be in the hole more than $10,000 next month.
Allen, also president of the Muncie-Delaware Chamber of Commerce, said downtown development had other sources of revenue from developers of Howard Square public housing, which the UEA secured tax credits to fund. Mayor Dan Canan said he wouldn't bail out the concert debt, although the city provides $125,000 yearly in economic development income tax revenue to downtown development.
Downtown development is considering establishment of a downtown business improvement district that would assess property owners and fund events and concerts. Events have paid the way for downtown development in recent years. A financial statement for nine months ending June 30 reported event revenue at $375,365; expenses were $268,729.
Hughes recommended plans for Masquerade Madness --the annual Halloween party -- continue, although it lost money in 2004 and nearly broke even last year.
"It still is a low cost with a high return on the investment," Hughes said.
That event on Oct. 28 will feature bands and other live music in downtown bars. Admission will be $5 in advance and $10 at the gate, and will cover all shows.
Downtown development also is promoting Artswalk 2006, at 5-9 p.m. Oct. 5. It will feature music, food and art galleries downtown and at Ball State and Minnetrista Cultural Center.
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