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Leesburg to seek outside alcohol vendor for Bike Fest; city to fund Chamber at $50,000
Summary
Leesburg will solicit an outside vendor to sell alcohol at Bike Fest and will provide the Leesburg Chamber $50,000 to replace prior revenues, after staff said the city absorbed losses running the event the past two years.
City staff told commissioners Aug. 11 that Bike Fest generated strong visitation and hotel occupancy in 2025 but produced operational losses over the last two years and that staff recommends contracting alcohol sales to an experienced concessionaire.
Travis (Special Events/finance lead) summarized financials showing total alcohol and non‑alcohol revenues of roughly $190,000 and tip revenue near $30,000; combined revenues and costs left the city with a net loss (Travis reported about $69,000 loss for 2024 and again in 2025). The partnership that previously ran Bike Fest left the city a transfer fund of approximately $257,000; staff said transfers of $72,000 (2024) and $69,000 (2025) were used and the remaining balance can cover roughly one more year of operating losses under current procedures.
Why it matters: Bike Fest attracts out‑of‑market visitors (staff cited a Placer AI estimate of 156,000 out‑of‑market visitors over the weekend) and an estimated $43 million countywide economic impact reported by the county tourism director; but the event's alcohol operations, which historically supported civic organizations, have not produced sustainable net revenue under the city's current model.
Recommendation and commission action: Staff proposed three options and recommended Option 2—procure an outside concessionaire to handle alcohol sales and use event profits to fund civic organizations. The commission approved pursuing the outside vendor (Option 2) and directed staff to procure via RFP and to "keep the chamber whole" by providing $50,000 to the Chamber of Commerce (the chamber's board must still consider the arrangement). In staff's modeling, contracting alcohol sales to a concessionaire could yield $50,000–$100,000 net to the city, depending on contract terms and the negotiated revenue split.
Operational notes: Staff emphasized the need for contract language that ensures the concessionaire's reported sales and sets beverage pricing guardrails to avoid undercutting downtown businesses. The city also noted that public safety staffing (police, fire) and city event staff time are not currently recovered from event alcohol revenues and remain a city cost.
Outcome: The commission voted to proceed with an RFP for a contracted alcohol vendor and to fund the chamber at $50,000; staff will return with procurement documents and a proposed agreement with the chamber for how the chamber's funding will be handled.
