City says Aloft festival owes thousands of dollars
Every Memorial Day Weekend hot air balloons fill the skies over Simpsonville, South Carolina, United States. But WYFF News 4 has learned that the hot air balloon festival, Aloft, is in hot water, financially speaking, with the city of Simpsonville.
Some city leaders are starting to question whether keeping the festival is worth it.
“It’s a wait and see from here,” said Councilman Taylor Graham.
Through the Freedom Of Information Act, WYFF obtained the payment plan reached with the city. Aloft currently owes the city of Simpsonville more than $20,000 in back rent.
Every year, Aloft signs a $30,000 lease with the city in order to gain the use of portions of Heritage Park, and the amphitheater. According to tax records, the festival generated more than $3.5 million between 2007-2012. Tax records for 2013 will not be available until 2015, according to the Secretary of State’s office. According to 2012 tax records, the festival generated $718,540 and showed a loss of $28,094.
Aloft organizers blame bad weather for the financial downturn.
“Since we did not have an event in 2010 and had to pay for it, we are still playing catch-up,” said Aloft Board of Directors President, Chuck Morton.
Morton said Aloft revamped and restructured from the top down in 2013 to turn things around.
“We are not in the business of making money. We are in the business of breaking even,” said Morton.
Morton said the festival will make good on its payment to the city of Simpsonville.
City leaders worked out a payment plan and they confirm that Aloft has made three payments, plus interest, on time. The final payment of $12,500 plus interest is due in July. The full $30,000 festival payment for 2014 is due in August.
WYFF News Four has learned city leaders are questioning whether the city spends more on police protection and trash pick-up for Aloft than the $30,000 it charges in rent.
“We shouldn’t lose money on things, but there are a lot of intangibles to be taken into account here,” said Councilman Matthew Gooch.
Gooch said the festival brings thousands to the city each Memorial Day. He claims Aloft pumps hundreds of thousands into local restaurants and hotels leading to an 8 percent increase in hospitality and accommodations tax collections in 2013.
“I think it’s worth waiting to see how it works out. Nobody in the area has an event like this. Nobody else can put on an event like this. Aloft brings a lot to our city and our community. They give us national exposure,” said Gooch.
via – WYFF.