SR-802-007 (2)
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Santa. Monica, C~15t"ornia JUne 30, 1981
TO:
Mayor and City Council
FROM:
Ci ty Staff
SUBJECT: Santa Monica Pier Festival of' Foods promotion.
,Introduction.
This concerns a proposal by the Pier Lessee's Association and the Festival
of lo'oods, Inc. to sponsor a food f'estival in October, 1981 a.t the Santa.
Monica. Pier.
Back~oun~.
The food festival concept has been presented by the Festival of Foods,
Inc. of La Jolla., CaJ.ifornia. T.ais firm has recently concluded a similar
promotion at the Del Mar Fairgrounds. The proposal for the Pier includes
the following concept:
1. Foods and food rclateo. products are featured. Exhibitors
include restaurants, gourmet shops, confectioners, appliance dealers and
other industry representation.
2. Each exhibitor pays a booth rental :fee. A minimum of 150
exhibitors is anticipated.
3. The exhibition area to be contained in a circus type tent on
the Pier parking lot; the arm to be self-contained, including security
and electricity by generators.
4. Revenue is gained three ways:
a. Booth rental fees
b. Admission charge
c. Beverage sales (1nc~uding alcoholic beverages)
5. ExpenditUl"es include tent rental, electrica.l generation,
labor, insurance, cost of goods, advertising, security and miscellWleous
overhead costs.
6. Festival of Foods, Inc. proposes a 50% nplit of net profits
to the City or to the Lessee's Association or a combination of profit
sharLng to City or Lessee's Association. A preli~nary projection sheet,
by Festival of Foods, Ine., is attached. It ShOiIS an estimated net of
$183,400; 50% .. $9~,700. staff considers this projection somewhat B..-nbitious
but recognizes the potential for high revenue production from this type
promotion.
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Alternatives.
The apparent alternatives are:
1. Approve the concept.
2. Disapprove the concept.
Recommendation.
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staff recommends the concept be approved subject to 50% net proceeds
paid to C1 ty' s Pier revenue fund.
Prepared by: David L. Sh~1"ey
Attachments:
Preliminary Cost/Profit Sheet by Festival of Foods1Inc.
Recormnendation by P1er Lessee's Association.
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SANTA MONICA FESTIVAL OF FOOD
PRELIMINARY PROJECTION SHEET
A. Booth Revenue based on 150 booths at average
$415 per booth $62,500.00
B. 75,000 Pald A~~lssions at $2.00 each ISD,QOO.OO
c. Beverage sales 52,400.00
Total Gross Sales
$264,900.00
D. Comm~sslons on booth sales at $75 per
1.1 ,250.00
31,000.00
3,000..00
18,750.00
E. Tent rental, booth set ups, electrical
F. Insurance, fees, I1sences, etc.
G. Beverage costs ~ncludlng serv1ng needs
H. Labor
4,500.00
I. Operatlng costs
10,000.00
J. M1scellaneous
3,000.00
Estimated Costs
al,SOO.OO
Est1mated Net
183,400.00
*ThlS does not ~nclude advertlsing costs. If we can get public service
status, th15 wl11 certalnly affect our net.
Again, this is based only on preliminary research and is to be used
anly as a guide.
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MEMBERS OF THE LEASSORS ASSO~LATION,OF THE ,S&~TA MONICA PIER
To Whom It May Concern:
We, thel..undersigned, hereby approve and support the stag1ng
of a Food and Home Fest1va1 on the Santa Monica Pier to be
held October 15 through October 18, 1981.
We be11eve that this event will encourage new visitors to the
P1er and create a feel~ng of ambiance and good will among
Santa Monica res~dents as well as those 1n surrounding commun1ties.
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