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ARIZONA STATE LEGISLATURE
Forty-seventh Legislature – Second Regular Session
SENATE GOVERNMENT AND HOUSE GOVERNMENT REFORM AND
GOVERNMENT FINANCE ACCOUNTABILITY
COMMITTEE OF REFERENCE SUNSET OF THE ARIZONA EXPOSITION
AND STATE FAIR BOARD
Minutes of Meeting
House Hearing Room 3 -- 9:35 a.m.
Chairman Konopnicki called the meeting to order at 10:19 a.m. and attendance was noted by the secretary.
Members Present
Senator Ableser Representative Downing
Senator Brotherton Representative Kirk Adams
Senator Flake Representative Konopnicki, Cochair
Senator Gray
Senator Waring, Cochair
Members Absent
Representative Lopes
Representative McComish
Speakers Present
Don B. West, Executive Director, Arizona Exposition and State Fair Board
Alberto Gutier, Lobbyist, Gutier Group/RCS
PRESENTATION BY EXECUTIVE DIRECTOR, DON B. WEST
Don B. West, Executive
Director, Arizona Exposition and State Fair Board, gave a slide
presentation on the agency. He indicated that the agency’s two primary
statutory purposes are to conduct state fairs and other types of entertainment
and defray expenses so it is not a financial burden on the state. The
fairgrounds consists of 96 acres and is located at 19th Avenue &
McDowell. The state fair this past year was the most successful in Arizona history with
1.3 million people attending. The Arizona fair is now ranked fifth in the
country by attendance.
He said 80 cents of every dollar the fairgrounds earns is earned by the state fair. When the state fair ends, there is a very aggressive non-fair event schedule with just under 240 events, which brings in about 20 percent of the agency’s revenue. No money is received from the general fund; in fact, the last request received from the general fund was in the late 1980s to refurbish the coliseum. The state fair contributed $9 million to the general fund over the past 12 years and $10 million to the general fund over the past 16 years.
Mr. West related that in 2003, the Arizona State University (ASU) Center for Business Research conducted an economic impact study and found that the state fair has a $50 million economic impact on the state’s gross product, $6 million was generated from various taxes (including sales and income), and during the state fair alone, about 1,800 jobs were created. At that time, the state fair was 18 days. It now runs 21 days, so the economic impact has probably grown to some degree.
He conveyed that one of the aims of the state fair is to educate, so a Read and Ride program was created where children read three books to receive three carnival rides. The program began three years ago and over 17,000 books were read this past year. Thousands of students enter competitions at the state fair, and thousands and thousands of children attend the fair free of charge as part of school field trips to learn about livestock and agriculture. An animal auction is held every fair, and this past year, $50,000 was raised in auction proceeds that benefit youth scholarships. There were almost 15,000 different entries across the state; 11,000 competitive and almost 4,000 in livestock, and half of the livestock entries were from outside Maricopa County. New to the fair this year is a 20,000 square foot interactive farm in which 300,000 guests walked through and participated. The fairgrounds is also the home of the Arizona National Livestock show and the Maricopa County fair, which have substantive and major impacts on the livestock and agriculture industries.
Mr. West related that recently the fairgrounds became an emergency resource center. On Labor Day weekend in September 2005, he received a call late Friday night, and by Sunday the coliseum was completely mobilized and staff was ready to begin receiving evacuees from Hurricane Katrina. Over 1,000 evacuees stayed in the facilities for over three weeks, and shortly thereafter, a very successful state fair was conducted. This past year, over 80 training exercises were held free of charge by police and fire service people. He will also shortly be meeting with the Department of Emergency Management to discuss the fairgrounds’ further role as a disaster staging area. Additionally, the fairgrounds is a government resource. The Department of Economic Security, the Arizona Department of Administration and the Arizona Department of Transportation use the facilities. Staff take equipment, personnel and expertise off-site, contributed to the 9/11 Memorial and helped with the Governor’s Appreciation event.
He indicated that 97 percent of fairgoers in the most recent survey rated the experience as good or excellent. It is the nation’s smallest fairgrounds. Seventy-five percent of the space is committed to livestock, agriculture, education and youth activities. Over 30 percent of the people that attend the fair are from Scottsdale and other East Valley communities, and that trend has been increasing in the last two or three years. Over the decade, the fairgrounds won just under 100 industry awards.
Mr. West advised Senator Gray that this is the first year the 20,000 square foot farm was set up. It is patterned after similar farm programs across the country and was very successful. He related to Senator Ableser that during the non-fair period a series of events are held, including home and garden shows and gun shows, which are very lucrative for the fairgrounds. The remainder of the calendar is filled out with “mom and pop” events like antique markets, the Junior League rummage sale and the volunteer nurses’ book sale. Occasionally events are held in the coliseum, such as cheerleading, but the grounds primarily generate the revenue.
When Senator Waring asked how
many people attend the state fair from outside Maricopa County, Mr. West
replied that according to the latest survey, 30 percent were from Scottsdale,
30 percent from the West Valley, 20 percent from the North Valley, and about 10 percent from outside Maricopa County (including people from out of state).
Senator Waring speculated that people in Yuma attend the Yuma fair. Mr. West agreed, noting that there is a very strong network of county fairs across the state. Senator Waring commented that people in the outlying counties have something to go to that is comparable, and therefore, are not being cheated, which is always a bone of contention with Legislators.
Senator Brotherton remarked that livestock and agriculture people in outlying counties, such as 4-H participants, look forward to going to the state fair, as was the case with Senator Flake years ago when he played in the band at the state fair.
Senator Flake stated that he played the trombone in the marching band when he was a freshman in high school. The band was invited, along with many other high school bands, to march the midway, and he had never seen anything like it before. He was so enthralled with the carnival that he never saw the agriculture exhibits. He has a grandson who raised exotic chickens when he was about eight years old and entered a few in the state fair. One of the chickens won a prize. He never saw a boy so excited when he showed up at the state fair and his grandson showed him around. It is a very worthwhile organization. About three years ago, there was talk about selling the fairgrounds when the state was going through economic difficulties, but he is glad that never happened.
Mr. West advised Senator Waring that the first event was held in the stadium in 1964. There was a full concert schedule this year during the state fair, so the building was checked from stem to stern prior to opening. It is in relatively good shape, as good as a building 40 years old can be, but its condition is continuously and carefully monitored.
Senator Brotherton said he worked with Mr. West before he was Executive Director. Mr. West is from Yuma, so he is aware of the concerns of people in rural areas. Senator Brotherton said he also believes the state fair is a very worthwhile organization. In his household, the state fair is perceived as the beginning of the holiday season. It is a great event that he and his family attend about three times during the run of the state fair.
Senator Flake asked if every county has a booth at the state fair. Mr. West replied that each county was represented by booths in the past, but in relation to Senator Waring’s question about interfacing with outlying counties, a program was implemented over the last few years called County Outreach where staff drive to the counties to pick up competitive entries, judge the entries, and return the entries to increase interaction with people outside Maricopa County.
Mr. West related to Senator Ableser that Maricopa County has a fair. It is a nonprofit event that is not regulated by the county. The fairgrounds has been home to that fair for many years and provides as much support as possible.
Chairman Konopnicki asked if efforts have been made to find a location with additional space. Mr. West answered that he would love to find a site that would more adequately showcase what the agency has to offer. Other fairs with more attendance generally range from 300 to 400 acres. If a location could be found not too far outside the main part of Maricopa County, relocation would be considered. Several locations have been looked at, but at this point, trying to find the appropriate location appears to be problematic, and there is a funding issue.
Senator Brotherton indicated that he and his family found the fair environment to be safe and secure, but unfortunately, people have gotten the wrong impression about it at times. His district runs along 19th Avenue, which includes the west side of the fairgrounds. The agency tries to work with the neighborhoods, and the wall that was built around the fairgrounds made the property look much better. A study was conducted that showed an East Valley location as #1, North Phoenix #2, leave the fairgrounds as is #3 and the West side #4; however, people in North Phoenix and the East Valley were not in favor of having the fair in those areas. Where it is presently located is working well with the neighborhoods, and it is going to be difficult to find a location and relocate as the cost years ago was about $50 million. The fair could not provide that much money, so an appropriation would be needed from the Legislature.
Mr. West clarified that the price tag three years ago was $50 million for the land and $50 million for infrastructure.
Chairman Konopnicki said the only way the funds could be generated is if the fairgrounds could be sold for enough to be able to purchase a less expensive property, which is a tough assignment.
Mr. Downing thanked Mr. West for the presentation. He remarked that everything he learned about life he learned at the county fair. When he was about 10 years old, he entered a chocolate pie-eating contest. He did not have to pay for it and he ate one pie after another. He won the contest for his age class only to find the prize was another pie.
PUBLIC TESTIMONY
Alberto Gutier, Lobbyist, Gutier Group/RCS, advised that RCS is a Phoenix company that conducts state fairs in Texas, California and other states. The state fair is a great operation. He, Senator Flake and others have been talking for years about keeping the state fair in the present location. It is an asset for families that cannot afford to go to Hawaii or Disneyland whose children can raise $100 over a period of six months to go to the state fair and eat fry bread and fried Twinkies. It is something to look forward to. He asked the Members to maintain the state fair as it is.
Senator Flake said he has many great memories from the state fair. When his granddaughter was only about eight he asked her parents if he could take her on a date to the fair. Her parents said yes, but she needed to be home about 8:00 or 9:00 p.m. He bought a block of tickets for the rides, but at 9:00 p.m., he still had several tickets. Her parents were worried, but he and his granddaughter had the greatest time.
RECOMMENDATIONS
Senator Waring
moved that the Committee of Reference recommend a
10-year continuation for the Arizona Exposition and State Fair Board. The
motion carried.
Without objection, the meeting adjourned at 10:55 a.m.
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Linda Taylor, Committee Secretary
December 4, 2006
(Original minutes and tape are on file in the Office of the Chief Clerk.)
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SENATE GOV & HOUSE GRGFA COR
SUNSET HEARING OF THE
AZ EXPOSITION & STATE FAIR BD
2
November 29, 2006
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