LITTLE ROCK — Little Rock's tourism agency wants to take control of one of the capital city's most popular destinations.
City directors are considering a proposal to turn over River Market operations to the Little Rock Convention and Visitors Bureau. The one-year experiment, with an option to continue beyond 2011, would save the city nearly $250,000 a year and give the bureau control over yet another tourism venue.
The proposal is on the Board of Director's agenda tonight for discussion with a vote slated for Oct. 6. Advertising and Promotion Commission, which oversees the visitors bureau, has the item on its Wednesday meeting agenda.
"When we step back a little and look at it, it's not really a new relationship for the Advertising and Promotion Commission and the city to enter into because it's the kind of relationship we already have with the city," said Dan O'Byrne, chief executive officer of the Convention and Visitors Bureau.
The agency already operates the city's downtown parking garages, the Statehouse Convention Center and the Robinson Center. The idea of the commission taking over the River Market has been floated before - Mayor Mark Stodola asked commissioners in 2007 to consider the idea. It's only in recent months that the commission has seriously moved forward with the suggestion.
"From a marketing standpoint, it just makes some sense to have that in our quiver as well," O'Byrne said.
Since 2007, the Advertising and Promotion Commission has used part of its revenue from taxes on prepared foodand hotel rooms to provide the city $250,000 to help offset River Market marketing costs. But the commission had no say in the operation of the venue.
The commission kicked in the financial aid at the request of Stodola, who was looking for help in balancing the city's budgets. Stodola did not return a message for comment Monday.
The River Market, with its pavilions, amphitheater and vendor hall, is not a moneymaker for the city.
The city has propped up the River Market out of its general fund, paying $537,939 in 2007 and $256,580 last year to cover expenses of nearly $1 million annually.
Home to the farmers market, the River Market collected $268,593 in revenue last year - excluding contributions from the bureau and the city's general fund.
By using their staff and organizational know-how to cut costs, bureau officials say, they can run the operation for less than the city does and stay within the budget.
This year the venue has a reduced budget of $884,269. By summer, the River Market had to cut four part-time positions from its staff of 16 to stay in line with the trimmed budget.
Commissioners haven't guaranteed that it will continue its voluntary financial aid for next year. Without the proposed agreement, Little Rock could be on the hook again in 2010 for all the venue's expenses.
The Advertising and Promotion Commission would use $120,000, about half the city's $250,000 contribution, to pay for the use of commission's accounting, human resources and marketing departments at the River Market, according to the agreement. The bureau would set aside $30,000 of the $120,000 for future repairs and maintenance costs, according to the draft memorandum of understanding.
The commission would add its $250,00 to the city's, O'Byrne said. The remainder of River Market expenses would be covered by any revenue it makes.
Little Rock's two city directors who also serve on the Advertising and Promotion Commission said they support the arrangement.
City Director Gene Fortson said having control of the pavilions and amphitheater could help the tourism agency better market Little Rock to conventions. City Director Ken Richardson agreed.
"I think it's a perfect fit," Richardson said on Friday. The bureau has taken its time this year to review the situation, and any potential pros and cons, he said.
In December 2007, Stodola asked commissioners to take over operations, but they rejected the idea at the time, saying it came too late in their budget cycle to be considered. Commissioners considered the idea again last year, saying that they were interested because of the amount of money they were giving to the city, but said the arrangement needed more study.
Fortson said he thinks the idea will have the support of city directors and commissioners. He hasn't heard any negative feedback yet, although the proposal is just starting to reach the public.
In the River Market's Ottenheimer Hall on Friday, vendor Kent Berry of Kent's Downtown said he hasn't heard too many of the details but that "I presume the city would make the decision they think best on how to manage the River Market."
"It seems like they'd be able to promote the River Market to the conventions out there," Berry said about the bureau.
One farmer who sells at the farmers market said he is concerned about city employees losing jobs and any changes the new leadership could bring.
"They might not close the River Market but they can up the rent until the vendors can't afford it," said Jerry Markham, who pays $42 for a space and a half each Saturday he comes to sell produce.
The agreement calls for the farmers market to have exclusive rights to the pavilions on Tuesdays and Saturdays during the morning and early afternoons from April to October but says they could be displaced for another event if the bureau and city manager agree on the case-by-case scenario.
There is nothing in the agreement about River Market rents.
The draft agreement also says that the 12 River Market city employees could be retained. However, it also notes that any employees not kept would be allowed to reapply for commission jobs.
O'Byrne said he hopes the change in management, if approved, would be smooth and seamless for the public. If the partnership doesn't go well, either can back out.
It wouldn't be the first time the city has had another agency run the River Market. When the building first opened in 1996, the city paid the Downtown Partnership $75,000 to run the organization while another group was responsible for concertsat the amphitheater. The arrangement ended by 1997 and the Parks and Recreation Department took over control of the building, pavilions and amphitheater.
Northwest Arkansas, Pages 9 on 09/29/2009