City expenses exceed revenue on Motorcycle Week

LACONIA — The city’s expenses for staging this year’s Motorcycle Week exceeded its revenues from the yearly event by about $4,000, City Manager Scott Myers said Tuesday.

Expenses, including the cost of bringing police in from out of town, came to $137,738. Revenue, including permits and licensing fees, totaled $133,725.

“I think it is a concern,” Myers said. “We’d like to break even.”

He said the city may look at increasing some of the fees to ensure the event pays for the city services it requires, or perhaps generates some extra revenue for the city.

Overall, tourism officials say Motorcycle Week, which was held from June 9-17, is a winner, bringing thousands of people to the Lakes Region and generating business for restaurants, hotels and entertainment venues, while boosting rooms and meals tax revenues.

The city realized $75,505 from permits and licenses this year, compared to $90,190 last year. There were apparently fewer vendors, but Myers did not immediately have figures for that.

Charlie St. Clair, executive director of Motorcycle Week, said some smaller vendors no longer participate.

“A lot of the mom and pop vendors have been squeezed out by corporate vendors and high rents,” he said.

Vendors must pay Laconia a $450 licensing fee for the right to open a booth. It costs an additional $100 if they don’t pay in advance, and another $50 if they want to open the Friday before the rally begins.

A new category of revenue this year was for trademark fees, which brought in $13,700.

The city charged a fee for vendors who used one of six trademarks on their merchandise: “World's Oldest Motorcycle Rally,” “America's Original Riding Rally,” “In Laconia We Ride,” “Laconia Bike Week,” “Laconia Motorcycle Rally” and “Laconia Motorcycle Week.”

Six years ago, a Connecticut company called Good Sports Inc., which does business as Hot Leathers and sells items at motorcycle rallies and through retail outlets and online, registered the trademarks and gained exclusive rights to use those slogans on pins, patches and clothing. Those who wanted to sell items bearing these trademarks had to get permission from and pay a royalty fee to Good Sports.

Last summer, the City Council approved an agreement with Good Sports that assigned these trademarks to the city of Laconia.

Temporary vendors who wish to sell merchandise bearing these trademarks must submit an application to the city and pay an additional $500.

Myers said city expenses for Motorcycle Week centered on labor costs.

“The Police Department had challenges in filling shifts with out of town officers and had to rely on city employees, which added to the labor and retirement costs,” he said.

“Also, the excellent weather we had this year brought strong crowds and did not allow for as many shifts to be cut or for staff to be sent home early.”