Balancing Ball Drops in Ludington and Grand Rapids

[XLFD]

A couple of weeks ago, Grand Rapids made known that it was not going to have its annual New Year's Eve ball drop this year.  Mlive reported that the event had declining attendance over the last few years, and the expense was getting prohibitive.  Cumulous Media, the host of the last seven GR ball drops, mentioned some factors in the article that made them break the tradition. 

The event grew up at Rosa Parks Circle and Monroe Center (Cobra Starship played this venue as seen in the above picture), until large attendance made them pursue bigger venues.  In 2014, the event was held at Calder Plaza, and last year a beer tent was added and the event moved to Grandville Avenue between Cherry and Oakes Street.  The frequent moves appear to have dropped their attendance significantly, last year's event only attracting about 10,000 people, whereas 15,000 were at Calder Plaza the previous year, while the event drew upwards of 20,000 the prior year when it was deemed too overcrowded for its original venue.

The GR event takes over $100,000 to put everything together even when pennies are pitched according to its organizers, and its success is predicated on having reasonably nice weather on the night of the event.  It's always a gamble, and the private investors who put on the effectively free event have to decide whether their money is better spent on other events and promotions, particularly since they depend on the goodwill and whims of the local government for where, when, how, and what they can do.

"It really became an expensive endeavor with minimal return," said Cumulous Marketing and Promotion Director Marcus Bradman, noting it was challenging to find advertisers as well.  The city wanted it to return the ball drop to Calder Plaza this year and we didn't want to go back. 

"Yes, it's downtown, but it feels like it's 10 miles away -- especially when you're doing an event," Bradman said of Calder Plaza. "When there's nothing else around there it really hurts the attendance. Space-wise it was the best space but it just didn't feel right."  The ball drop may return next year, but the organization needed a year off.

This can be viewed as potentially great news for Ludington, since it becomes the only other city in West Michigan (other than Grand Haven hosting its second) to host a ball drop on New Year's Eve, and that fact has been related through several media outlets. 

WZZM TV out of GR reports:  "We would welcome Grand Rapids residents especially those who are used to going to the local ball drop, Ludington is a great alternative," Ludington CVB spokesperson Kim Skeltis said. "The street will be blocked off to car traffic so people can just stand right in the middle of Ludington Avenue and get their best spot and be ready to watch the ball drop right above.  It's a very charming, beautiful ball drop, it's very family friendly and it really just brings everybody right in the heart of downtown, it's very festive."

Mlive reports that:  "It's one big street party, with downtown businesses staying open late, our main street blocked off to vehicle traffic, and area restaurants and bars offering great menus and warm-up spots," said Jen Tooman, communications and marketing manager of Downtown Ludington. "And with Grand Rapids' ball drop canceled this year, we hope our friends south of us make the trip to Ludington."   Downtown Ludington pays about $15,000 to put on the free event, she said. 

What seems to be absent from local media in the county, is letting us know about the potential influx of people from GR and beyond to check out Ludington's festivities on December 31st, as neither the COLDNews or MCP have noted the loss of GR's ball drop and its local consequences.  Chances are that may have some avoiding the event because of the fear of overcrowding.  Whatever the reason, Tooman's comment about the cost of the event had me checking out several records.

Back in 2010, I broke a dirty little secret about the then-fledgling Ludington Ball Drop in Dropping the Ball, part three of my investigation into Ludington's DDA (also known as Downtown Ludington (Board)).  As noted in the article and later, several members of the DDA made financial gains with the event:  City funds brought supplies from three board members' businesses without noting this in the record, including:  Amanda St. Hillaire's special commemorative glasses, Les Johnson's liquor, wine, and champagne, and Nick Tykoski's banners, electrical supplies and lettering.  These three would have other very real conflict of interest issues over the years after this was pointed out.

But perhaps even more importantly it was noted that the event had cost around $15,000 to the DDA, but it had provided zero revenue on the balance sheet.  This meant that the money the city took in for selling the commemorative glasses, alcoholic beverages, and event packages were unaccounted for.  The 2012 Budget continued to verify that for even the next year, but oddly enough on page 53-54 you will note that the future three years had the city planning to spend $20,000 on the event, however, they planned on getting $21,000 in revenues. 

The oddest thing about this change in the books is that there was not any change in the event that would justify how they could go from making $0 to $21,000.  The over-priced packages and glasses were still selling for the same.  Looking at the 2016 Budget, we find in retrospect that the DDA had actually realized a tidy profit over the last two years of 2014 and 2015. 

These records show that Jen Tooman, who serves the DDA much like John Shay serves the city council, is basically correct in saying that the event takes around $15,000 to put on, but then she leaves out the fact that the money spent by 'Downtown Ludington' came back with $4657 in profits in 2014 and $6311 in 2015-- at least on paper.  Subtract expenses from revenues each year to get those results. 

Which begs the questions: 

Will GR city leaders be more willing to work with their event organizers next year, rather than impede them?

How is a public entity from Ludington able to make tidy and increasing profits from their free ball drop, while a private entity in the much bigger market of Grand Rapids runs deficits from theirs?   

Why does Tooman say the DDA spends $15,000 without revealing that they have brought in about 40% more than that in revenue for Ludington's free event?

How can the city bring in over $22,000 of revenues for an event that is effectively taking place for only a little over an hour during the off-season? 

We make a resolution to find answers to these questions in 2017.

[stump]

Would you drive 100 miles for a 10 minute or less event when it is colder than heck, or even 80 degrees. It wouldn't even be on my thought wave. These people are dreaming if they think there going to get thousands of out of towers to show up. I don't and only live a few blocks away.

[XLFD]

But let me make my first "New Year's" forecast in predicting that the local newspaper will catch a couple of people from the GR area absolutely giddy over what happens in Ludington tonight and comparing it very favorably over GR's efforts.  This will be a great year for Ludington propaganda right from the start.  As for me, I have went down to the ball drop area to do research, but I'm always in my comfy home at midnight celebrating the New Year with my family, some of whom must have the TV tuned to the Times Square ball drop.

Still, I would like to know whether the event costs taxpayers $15,000 or whether the DDA invests this tax money to get 140% on their return.  If the latter, which recent public records support, why isn't the event privatized?

[stump]

Dam, missed it again. Happy new year to everyone.

[Willy]

I think the "ball drop" no matter where it takes place is a stupid idea but there are plenty of people who like it. As long as no tax dollars are used to pay for it then I have no problem with it.