Item 5 Tourism & Events Department 7447 E Indian School Rd Scottsdale, AZ 85251 480.312.7177 To: Linda Dillenbeck, Chairperson Tourism Development Commission From: Steve Geiogamah, Tourism Development Manager Date: June 16, 2020 Subject: Scottsdale Car Drive-In Concert Series New Event Funding Request The Scottsdale Car Drive-In Concert Series new event funding worksheet is attached for commission consideration. The event series will be held at WestWorld in Scottsdale. The event features musical and comedic performances on weekends over a 12-week period and may include various popular artists. R Entertainment and Culinary Concepts has requested $75,000 in support of a one-year event funding agreement. Potential funds in support of the agreement can be allocated from tourism event development and operating contingency funds. Analysis & Assessment The first year Scottsdale Car Drive-In Concert Series takes place July through early September. Anticipated concert series attendance is 2000 attendees per show. Estimated concert promotion is schedule to begin June 30. As this is a first-year event, anticipated room nights generated from the concert series will need to be evaluated. Direct advertising expenditures is estimated to be $90,000 with a total event budget of $928,890. To enhance the city’s event sponsorship evaluation process, the city has retained a qualified special event and marketing consultant, Artigue Advisors, to measure, analyze, and report the economic and media impact as well as overall value and benefits associated with a proposed event sponsorship. Attached is the Artigue report. Funding Availability & Potential Options There are currently event development support funds in the amount of $31,767 available in the tourism development budget for event development. There is also currently $2.5 million available in the tourism operational contingency funds available for use. Pending TDC discussion, the following are options for consideration: 1) Recommend event development or tourism operating contingency funds for all or part of the requested amount of $75,000. 2) Take no action or additional event evaluation. 3) Alternatively, if there are additional questions or information needed for further consideration, staff will proceed accordingly. Introduction Thank you for giving us an opportunity to bring you this unique economic development tourism strategy during these unprecedented times. We are not prepared to write off the entire balance of the 2020 year and with your support we believe we have a compelling narrative for patrons to visit Scottsdale this summer. Indeed, the current environment presents a distinct opportunity to draw visitors to Scottsdale over the next three months. A few weeks ago, it was impossible to imagine that the Coronavirus lockdown in California would deliver Scottsdale a way to generate hotel stays and restaurant dining, foot traffic in shopping malls, rounds of golf and a pathway for small business to get through this summer of shutdown. Los Angeles, for all intents and purposes is closed. No concerts, no bars, no special events are scheduled, and there is, basically, nowhere to go. Concerts will not return until 2021 and Southern California residents remain in a shelter-in-place mode until at least August. In fact, the mayor of Los Angeles proclaimed that any "non-essential" business that are found opening will have its electricity, gas and water shut off! For the older baby boomers who are most vulnerable, this makes sense. However, for 18 to 45- year-olds, this is tantamount to a prison sentence. This group is one of the least effected by the virus and the most effected by the lockdown. Two weeks ago, Orange County opened its beaches and 40,000 members of the targeted 18 to 45-year-old demographic descended upon Newport Beach causing California’s governor to close the beaches again. There is major pent-up demand among this group and we propose to be their escape valve this summer. By producing a compelling series of popular music, comedy and podcaster events, we can target market and draw these fans from California to Scottsdale all summer long. It would be a reverse of what normally happens when "Zonies" flock to California in the summer. San Diego annually generates $100 million in bed taxes from visitors, but probably not this year. The following pages outline our plan and rationale on how to capture hotel stays, and fill our restaurants, golf courses and shopping malls with tourists this summer. Four of the top talent agencies in the world have contacted R Entertainment: William Morris Endeavor, Creative Artists Agency, United Talent Agency and Paradigm Talent Agency. They’ve requested that R come up with a solution for their roster of artists. Collectively, these artist agencies represent 90 percent of the entire entertainment industry. Many artists like Taylor Swift, U2 and Paul McCartney have announced plans not to tour or have canceled their tours in 2020. However, there are thousands of touring artists, comedians and podcasters that must tour to sustain their livelihood. The reason we have been on speed dial with these top agencies is, for one, they know us because we spend millions of dollars with their agencies booking their clients each year. Secondly, they have heard of our success in pioneering a very safe way for patrons to consume entertainment in their cars with Pop-Up Drive in Movies. Coupled with the fact that we have great technology that allows patrons to hear the concert in their cars via FM transmitters that run right through a vehicle's speakers and this checks all the boxes for a new way to deliver quality entertainment while social distancing in the comfort of your own car! As a result, our goal is to bring 15 shows from a variety of genres to Scottsdale this summer. Steps to Success 1. Create a Drive-in Concert Venue at WestWorld of Scottsdale. Activate WestWorld mid-June through end of September. 2. Create a Summer Series of Concert Entertainment. Feature major artists from California such as musicians/bands, comedians and podcasters. 3. Promote through Talent Fan Bases. Market and promote tickets and packages in Scottsdale utilizing the powerful fan bases of featured artists with a call to action for Californians to Experience Scottsdale. 4. Feature Resorts & Restaurants & Shops. Inherent to key marketing messages will be the fact that Scottsdale restaurants, world-class resorts and shopping are all open for business…and a bargain. 5. Summer Fun Packages. Bundle tickets with hotel packages just as the Super Bowl and other major events do. 6. Target Market. Target the 18 to 45-year-old demographic for "Summer Road Trip" weekends. The following list is just a sampling of artists and their fan following; these artists are actively in discussion to finalize their appearances this summer on a stage at WestWorld of Scottsdale. In fact, for the list of artists, the sky is the limit. We enjoy the trust of these major agents and have presented them with a solution for their roster of talent, many of whom R Entertainment has actually booked and promoted for years. 2 Sublime with Rome (routinely sells out) Tiger Lily • Instagram 128K Followers • Instagram 601K Followers • Facebook 366K Total Follows • Facebook 679K Total Followers • Twitter 65.9K Followers • Twitter 55.4K Followers • YouTube 43K Subscribers • YouTube 37.1K Subscribers • Spotify 673K Listeners • SoundCloud 83K Followers Bill Burr – Comedian (sells out Mad. Sq. Grdn.) Chainsmokers – DJs • Instagram 1.1M Followers • Instagram 7.8M Followers • Facebook 757K Total Follows • Facebook 9.9M Total Follows • Twitter 1.4M Followers • Twitter 3.5M Followers • YouTube 622K Subscribers • SoundCloud 1.1M Followers • SoundCloud 143K Followers • Spotify 34.7M Listeners Rebelution – Reggae Bad Friends - https://www.badfriendspod.com • Instagram 372K Followers • Instagram 44K Followers • Facebook 913 Total Follows • Twitter 5.6K Followers • Twitter 100.3K Followers • Facebook 1.1K Private Group • YouTube 373 K Subscribers • YouTube 128K Subscribers Joe Rogan – Podcaster Bobby Lee & Andrew Santino Podcast • Instagram 9.5M Followers • Instagram 568K Followers • Facebook 2.7M Total Follows • Facebook 127K Total Follows • Twitter 6.1M Followers • Twitter 188.7K Followers • YouTube 276K Subscribers • YouTube 187K Subscribers Andrew Santino Bella Twins – Girls Night Out • Instagram 302K Followers Nikki Bella • Facebook 1.2K Total Follows • Instagram 9.2M Followers • Twitter 100.6K Followers • Facebook 8.6M Total Follows • YouTube 122K Subscribers • Twitter 3.6M Followers • YouTube 2.87M Subscribers Grateful Festival -- Grateful Dead Festival Brie Bella • Facebook 911 Total Follows • Instagram 7.6M Followers • Facebook 5.2M Total Follows • Twitter 3.6M Followers • YouTube 2.87M Subscribers 3 CAA Comedy Series Cheech & Chong Carlos Mencia • Instagram 2.4M Followers • Instagram 37.1K Followers • Facebook 11M Total Follows • Facebook 456K Followers • Twitter 143.1K Followers • Twitter 43.1K Followers • YouTube 14.5K Subscribers Michael Carbonaro • SoundCloud 576 Followers • Instagram 78K Followers • Facebook 128K Total Follows JP Sears • Twitter 55.6K Followers • Instagram 305K Followers • Facebook 2.4M Total Follows Colin Jost • Twitter 22.2K Followers • Instagram 496K Followers • Twitter 280K Followers Mallory Brothers Podcast • YouTube 276K Subscribers Lavell Crawford • Instagram 119K Followers Brendan Schaub • Facebook 13.8K Followers • Instagram 1.1M Followers • Twitter 41.5K Followers • Twitter 801.2K Follower WME