During the meeting, the City Council took on an item under executive session pursuant to Texas Government Code, Chapter 551, Section 551.071 discussion regarding Attorney General Opinion and expenditure report for the 57 South Event, and possible action in open session.
Once back in open session, the council informed that the City administration had a cost report and that it would be disclosed in open session to be transparent over the expenditures incurred related to the 57 South Music Festival that took place in the month of April as part of the Eclipse festivities.
Assistant City Manager Ivan Morua addressed the City Council and informed that total costs for the music festival was around $2,497,494 for Just 1 Management services including a breakdown as follows: management fee, $146,195; talent (bands) $1,228,860; marketing, $121,800; other services, $1,000,549.
Other expenses incurred from purchasing or renting equipment included overtime hours for employees at $82,597; fuel $4,726; equipment rental $78,416; material $1,598; shuttles $2,500; for a total of $169,837.
The total expenses for the entire music festival were $2,667,121.
Revenues made from the festival were $209,090 (less than 2,000 tickets were sold), beer sales were $63,899; non alcoholic sales were $3,033; merchandise sales were $2,335 and sponsorships were $35,000 for a revenue total of $313,357.
In all, the city had an operational loss of $2,353,764 dollars.
During the report, Mayor Salinas and the City Council - taken aback over the unsettling situation - asked if the city would be pursuing any reimbursement avenues due to the change of venue when the State of Texas overtook the Shelby Park and blocked it off from it being used.
City Manager Homero Balderas stated that the original venue (Shelby Park) was basically taken away by the State, thus potentially negatively affecting the outcome.
Balderas informed that the City is having discussions with the State, including the Texas Military Department, over this issue.
The City Tax payer has taken a massive loss on a music event that interestingly had the promoter get paid more for their service than what was actually used for marketing the event when millions of dollars had been invested into music and, according to the city report, $1,000,549 in "other services", whatever that means.