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Budget committee approves Outside Lands permit extension with higher fees and new community requirements

Budget and Finance Committee · December 5, 2012
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Summary

Supervisors approved an amended Recreation and Parks permit extension for Outside Lands, extending the contract through 2021, raising per-ticket and percentage rents, increasing daily capacity to 75,000, and adding neighborhood-focused community benefits including a jobs fair, a small community fund and an endowed gardener.

Supervisor John Marr introduced amendments to the Recreation and Park Department's permit for the Outside Lands festival at the Budget and Finance Committee on Dec. 11, proposing to extend the permit through Feb. 2021, raise the event's authorized daily capacity to 75,000 and increase the department's rent and fee revenue.

"I'm sponsoring this legislation to approve and authorize the amendment for the permit with Another Planet Entertainment," Supervisor Marr said, outlining community-focused amendments negotiated with neighbors and the promoter.

Rec and Park Director of Property Management Nick Kinsey described the financial and operational terms: a cap on minimum rent of $1.4 million in the final contract years and an increase in percentage rent and per-ticket fees (the per-ticket payment would rise to $1.25). Kinsey said the agreement also requires additional measures to reduce community impacts, including expanded sound mitigation and an endowed gardener and a regeneration fund to repair the polo fields.

Another Planet Entertainment emphasized local hiring and vendor participation during the public comment period. Alan Scott of Another Planet recounted the company's long-standing outreach and vendor program: many of the festival concessions are San Francisco-based restaurants and businesses. An economic study presented by Professor Patrick Tourney of San Francisco State found estimated direct spending by nonresident attendees of about $27 million and a total economic impact (direct plus indirect/induced) of roughly $60 million.

Supervisor Marr secured three specific new commitments in the amended permit: an annual jobs fair with vendor participation aimed at hiring locally for beverage and security staffing; creation of a community benefit fund (a modest annual payment to support neighborhood park improvements and services); and a transportation analysis to further reduce event impacts on surrounding corridors.

The meeting included extensive public comment from vendors, labor representatives and neighborhood residents. Supporters highlighted local business opportunities and year-round benefits to Rec and Park; some residents reiterated concerns about the timing and extent of construction fencing and occasional noise impacts. Rec and Park staff said they would refine fencing timing, signage and access procedures to minimize disruption.

Committee members accepted the amendments and moved the item forward with recommendation.