VenuWorks dealings spark debate [The Hawk Eye, Burlington, Iowa]

Oct. 29--Mike Johnstone admitted volunteers on the Burlington Steamboat Days board are passionate about their music festival.

That passion showed Monday during a meeting with the Burlington City Council when he defended deliberations his organization has had regarding a proposed management agreement with VenuWorks of Ames to operate Memorial Auditorium, deliberations City Manager Jim Ferneau said threaten to scotch a deal.

Ferneau read a six-page letter outlining his frustrations with negotiations, which he said started in July.

"There were multiple changes that were requested from BSD," he said. "In a nine-page document covering four recitals (parts of a contract or deed that explain background facts), 11 topics and 46 subpoints, BSD was asking for contract wording changes or complete elimination of two of four recitals, all 11 of the topics and 32 of the 46 subpoints."

Ferneau said the changes are unacceptable to VenuWorks.

"If there were one or two areas of concern, then no big deal," Ferneau said. "But the sheer number and types of requests put too much liability on the city and not enough accountability on BSD."

The agreement is important because the city wants VenuWorks to book additional events at the auditorium, which would generate additional revenue and offset a $330,000 deficit the facility incurs each year.

But Johnstone, the outgoing Steamboat Days president, disagreed with Ferneau's characterization. He said his organization didn't see a version of the contract until Sept. 9. Given the document's complexity, the 31-member board determined it needed formal legal advice.

Introducing attorneys into the process has lengthened and complicated the process, Johnstone said.

"The proposed contract was one-sided, and we needed to come back and make certain we're covering ourselves, too," he said, adding later the organization's attorney told the board 'There's no way in the world we can sign that.' "

Johnstone said the items VenuWorks said were sticking points -- insurance, training of beer servers and fees -- were not sticking points at all.

"I thought we were on the right track," he said. "I thought we were negotiating. I reject the fact we have not been cooperative."

Johnstone said even though VenuWorks is an Ames company, the attorneys involved in the negotiations, including the city's lawyer, are in New York, Des Moines, Atlanta and Cedar Rapids. Consequently, email and telephone communications have been difficult.

"Now we find VenuWorks is ready to pull back, I'm puzzled if this is a negotiation."

"Everyone of those issues Jim (Ferneau) brought up we're not opposed to," he said, noting for instance Steamboat Days has never required its beer-serving volunteers to go through training before.

From the beginning, Steamboat Days understood the rationale for giving up its exclusive liquor license for Memorial Auditorium -- which contributes about $20,000 to the organizations coffers, Johnstone said.

But BSD wants to continue serving events at the Port of Burlington, explaining it offers continuity training for the organization.

"We can't do one event a year," he said. "We need these events at the port to stay healthy.

"We want to protect our event and protect our identity. Portraying us as throwing caution to the wind is incorrect."

McCampbell wondered how an agreement whereby VenuWorks would manage the auditorium and Steamboat Days take care of family reunions and other events at the port got derailed.

Councilwoman Becky Anderson suggested protecting Steamboat Days' interests has been confusing and unnecessarily slowed the process.

"We should have been negotiating with VenuWorks, not BSD," she said, "You should be negotiating with us. We own that property."

Johnstone reminded Anderson that Steamboat Days has a 52-year history of cooperating with the city. He also noted the raised parking lot and the port stage were paid for by BSD.

He added, Steamboat Days is not without options, including disbanding or moving the event to another venue, even out of town.

In the end there were more sparks than actual fire. Mayor Jim Davidson directed Ferneau to contact VenuWorks and restart negotiations.

"Get 'er done," he said.

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