Hollister Motorcycle Rally promoter Seth Doulton revealed to the
Free Lance this week how he lost $100,000 on this year’s event and
said he will stand firm over his requirement that the city
– set to lose about $125,000 on the 2008 rally – underwrite a
prospective sequel before he gets involved.
HOLLISTER
Hollister Motorcycle Rally promoter Seth Doulton revealed to the Free Lance this week how he lost $100,000 on this year’s event and said he will stand firm over his requirement that the city – set to lose about $125,000 on the 2008 rally – underwrite a prospective sequel before he gets involved.
Hollister Mayor Doug Emerson, meanwhile, expressed his commitment to mandating that all city costs be paid up-front if he’s to support another rally and he acknowledged that a non-sanctioning by council members in 2009 is “certainly a strong possibility.”
“We’re five different council members,” said Emerson, who in December will be joined by two new council members, Ray Friend and Victor Gomez, on the five-member panel likely to decide in the coming months over a potential sanctioning.
It’s a line in the sand that might kill the official rally in 2009 and could lead to a repeat of 2006 – when thousands of bikers, regardless of the event’s cancellation, showed up.
For council members, it’s not only a monumental crossroad for the city’s signature event, but it’s also a political Catch 22. At this point, unless another financial player gets involved, officials either commit thousands of tax dollars to underwrite a sanctioned event after losing money in 2008, or they cancel the rally and damage a vital revenue stream for some area businesses while shunning a segment of San Benito County’s cultural landscape.
“The city council’s between a rock and a hard place,” said Doulton, owner of Horse Power Promotions, which promoted the 2007 and 2008 events.
Doulton contended in a phone interview that there must be more pressure from local businesses toward convincing city officials to assume financial responsibility for a 2009 rally.
“The city’s got to underwrite the rally is the bottom line,” Doulton said. “The money’s got to come from somewhere. The city’s got to become a willing partner in the rally. They can’t keep throwing $385,000 law enforcement bills at it and not recognize there’s sales tax generated.”
Asked to elaborate on his stance toward Hollister’s rally policing – which came to about $360,000 in 2008 – Doulton likened it to expensive cancer treatment and said “they can charge whatever they want for chemo-therapy.”
At times in the interview he talked as if prospects look grim: “It has to be just right. I’ve enjoyed my two years. In a nutshell, it’s just frustrating … The overall package I’ve delivered is what they’ve asked for.”
At others, however, he spoke as if he’s ready to reignite the engine – if, of course, the city backs off on the up-front requirement.
“I’m there in a heartbeat,” said Doulton, who noted how he and city officials are “$100,000 apart” on a deal. “I personally lost $100,000 this year. I just want to be able to pay my bills, be whole.”
Doulton acknowledged that he lost $40,000 the first year as well. The biggest problem in 2008, he said, was an unfavorable food contract. Doulton said he made $125,000 from the contract in 2007, but just $23,000 this year because it was commission based. He noted how the number of vendors and sponsors this year were up, with slightly less revenue – about $7,000 – than in 2007.
“You and I could have run a beer stand there and made more than $25,000,” Doulton said.
Hollister was involved with the retail side of the 2008 rally as well and took what stands as a $160,000 or so hit. That’s until Doulton pays back the $37,000 he still owes, and he reiterated today that he’s committed to repayment.
“Clint (Quilter) knows I’m paying it back,” Doulton said. “I’m doing any kind of work I can do to make money, as far as to stay above water. The day they make a decision on the rally, I can start generating funds.”
The city also continues its attempt to liquidate remaining merchandise to further lessen the financial blow from 2008, said Quilter, Hollister’s city manager. Last year’s mistake, in the meantime, could leave council members even more restrained when it comes to any level of risk they take on future events.
“Somebody or some organization or someone’s going to have to come to the council with a proposal,” Emerson said. “I can’t see us sitting down and looking at alternatives. Somebody’s got to bring that.”
Councilman Brad Pike, who didn’t run for reelection and likely won’t be in on an ultimate decision over the rally, also expressed some doubt about next year.
“The reality of today is that people have less discretionary funds,” Pike said. “They’re more apt to keep money close to them rather than just go out and spend Willy nilly.”
Continued Pike: “Especially if the economy stays in the direction it’s going today, I don’t think the people are going to want their tax dollars used to sanction anything.”
If the rally is canceled, Doulton said, it may come back to a lack of resounding support from local businesses, aside from Johnny’s Bar & Grill, Corbin Motors and others regularly behind it.
“The other people just shouldn’t have stayed quiet,” he said. “They just don’t want to keep it that bad.”
