City OKs Extending Arts, Beats & Eats Agreement to 2017

By a 5-1 vote, the Royal Oak City Commission approved a new agreement with Arts, Beats & Eats, Inc. during its Monday night meeting.

The restated festival agreement extends the terms by two years to Dec. 31, 2017 (three years remain on the current agreement), sets admission and parking fees as well as hours of operation and establishes a sound check. (Read the agreement here.)  

The decision was a disappointment to long-time Royal Oak businesswoman, Anne Kuffler, president and artistic director at Ariana Gallery. Kuffler pleaded with commissioners during public comment to survey downtown retailers and restaurants before acting.

"I don't think any of you understand the ramifications of Arts, Beats & Eats on our retail businesses," she said. "It is severe. It is destructive."

Kuffler insisted some businesses lose as much as $5,000 for each day that Arts, Beats & Eats is in progress.

Michael Chetcuti, principal of Cloverleaf Fine Wine and Craft Beer, told Patch Tuesday his Main Street business goes down by 75 percent during the four-day festival.

"It's impossible for retailers and restaurants to do anything but close for Arts, Beats & Eats," Chetcuti said. "I would love to know the economic impact to downtown Royal Oak. I have not spoke to one business owner that Arts, Beats & Eats affects positively, so my question is who's benefiting?"

Commissioner Peggy Goodwin, the lone nay vote, wants the city to establish a stakeholders committee to remedy downtown business concerns and work with the organizers to better the event.

"l hope there will be some due diligence going forward," she said.

Commissioner Jim Rasor, who lives and owns a business near downtown, told commissioners he is personally affected by the festival and understands retailers' concerns. Still, the commissioner said he remembers Labor Days in downtown when there was not much happening.

"I mean there was no business anywhere," Rasor said. "This festival brings millions of dollars to this community, to business owners of this community and to charities of this community. It provides a great venue for residents to have a staycation — especially with $4 gas prices."

The agreement now goes back to the Downtown Development Authority (DDA) for review at its next meeting. At its last meeting, the DDA discussed the proposed agreement but did not actually approve it, according to City Attorney Dave Gillam. 

"The DDA approved the concept of the idea of an additional two years. But again, there was no formal agreement on the written document," Gillam said.

The DDA meets next at 4 p.m. June 19 at City Hall.