New London — Officials don't track how much the city spends in support of Sailfest, the city’s signature event that draws several hundred thousand people over three days every summer.

The city does not budget for the event and has not a single record or report itemizing the costs associated with the outpouring of manpower hours and overtime needed to support Sailfest, according to the results of a Freedom of Information request from The Day.

The Day requested a list of out-of-pocket expenses and any reimbursements related to Sailfest, which features vendors who sell food and merchandise, as well as carnival rides, live music and a major fireworks display.

City Attorney Jeffrey Londregan pointed out that the city is under no obligation to create reports or perform an analysis that has not already been done, and one had not.

The city's finance department instead provided, as a courtesy, a spreadsheet outlining what the overall cost of Sailfest might be "if someone were to put it on as a private event," according to Londregan.

The theoretical costs listed in the spreadsheet provided to The Day total $202,745.60, which includes estimated costs of the salaries and benefits for fire, police and public works employees over a three-day period.

The estimates on personnel overtime for the three departments is $128,742 with miscellaneous costs — food, vehicle rentals, fuel and other items — totaling $49,173.

Mayor Michel Passero, who took office in January, said the practice of absorbing Sailfest costs into the city budget predates his administration but perhaps needs a second look.

“I guess I inherited it, before me (former Mayor Daryl Justin Finizio) inherited it. It’s gone on for decades. I don’t know that there has ever been a public debate over real costs and whether it’s worth it,” Passero said.

Because of the potential hardships for event organizers and civic groups alike, he said, he has no plans to follow Finizio’s executive order requiring groups planning any special events or parades to pay up front the cost of estimated city services, “unless there is some extraordinary costs to put on an event that is making money.”

“If it is an event organized by a civic organization that is benefitting the city, I’m not sure that’s not just the cost of doing business,” he said.

Passero did say that it was conceivable, especially during a particularly tough budget year, that the city would take a hard look at costs associated with Sailfest.

“I’m not going to be opposed to a public debate. After all of these years, it may be good to have a public debate to see if there is a benefit,” Passero said.

“I support Sailfest. It’s a tradition that’s been a part of New London’s identity for so long," he said. "I’m assuming it’s something the citizens support every year and will continue to support.”

Big business for bars

Downtown business owners appear to be split in their opinions about the benefits.

The anecdotal evidence is that bars and some restaurants reap huge profits while retail establishments don't.

The influx of people and closing of the streets downtown simply doesn’t work for Charlotte Hennegan, owner of Thames River Greenery on State Street.

Hennegan, who has been downtown since the start of the festival 40 years ago, closes up shop for the weekend.

“It doesn’t improve my business and in fact it’s a detriment because of the situation of vendors in front of my store and the logistics of it,” she said. “We can’t get our customers here."

“Am I opposed to it? No. If it enhances other businesses that are downtown, then of course I’m a proponent of it," she added. "Because it keeps us all going. I’m glad some businesses do well ... that’s something that’s good for the community.”

Hennegan said she did think it might be time to review the event and find out just how beneficial it really is.

“I would think at this point, after 40 years, maybe we need to look at how much we’re bringing in, how much it costs and do the homework to decide if this is something we should still be doing or doing differently,” she said.

Barry Neistat, co-owner of Muddy Waters Café on Bank Street and president of the Downtown New London Association, which runs Sailfest, shares Hennegan’s ambivalence.

“We have a very big regular following at Muddy Waters, and they basically can’t get here,” Neistat said. “There are so many people that come to Sailfest. I’ve kind of learned to suck it up because there are so many people that enjoy the weekend. Let them have the weekend in New London."

"From a business point of view — we get all the people that run the booths. All of those people eat here all weekend," he said. "It’s not a windfall for us by any stretch. Again, it’s one weekend a year."

“The bars benefit because it’s a big bar night. I think it's split. There are businesses that do well. I guess the overall picture for the city is, it's good,” he said.

Hotels fill up

Barbara Neff, executive director of the Downtown New London Association and owner of Neff Productions, has run the annual event on behalf of the association since 1996. She said the event is far from a windfall for the organization, so support from the city and other sponsors is appreciated.

The Downtown New London Association took over the event from the city’s former Marine Commerce and Development Committee, which began and ran the event in 1976.

She said the association will clear about $10,000 from this year’s event.

While she did not provide any figures for total revenues, she said the event is less about the take and more about carrying on a tradition that delights crowds, draws visitors to the city and provides a major boost to businesses.

“This is Christmas for many of the downtown businesses,” Neff said. “It’s an economic driver for the city for that weekend.”

While acknowledging there are some detractors, Neff said there are some businesses who make more in three days than they would in a normal month.

She said hotels across the region fill up as groups come in and even plan their weddings or family reunions around the event.

Despite the city’s failure to provide The Day with information on any reimbursements, Neff said the Downtown New London Association annually provides a check to the city — $30,000 last year and an estimated $25,000 this year — to help cover costs.

Passero said he anticipated a check for $25,000, though the city did not provide a written contract or any documentation that a check had been received or expected.

Neff said the association has talked about commissioning an economic impact study to get a better handle of the festival's benefits to the city.

Neff, who also has a $24,000 contract with the city to be the events coordinator, said she is paid a modest yearly salary to run the offices of the Downtown New London Association year round. She declined to make her salary public.

Sailfest preparation takes up most of her time in her role as executive director, she said, and planning meetings with city officials start in January.

She already is brainstorming ideas for next year’s 40th anniversary event.

The bulk of the work at the festival, she said, is completed by more than 40 volunteers.

“I do it because I love the city,” Neff said. “The Downtown New London Association is not making a lot.”

Vendor fees vary

The association supports the event with vendors' fees and sponsorships, not the least of which is the Mashantucket Pequot Tribal Nation, which pays for the fireworks display each year.

Vendors pay a range of fees, depending on where they are situated. For example, the cost to vendors on City Pier, one of the prized spots, is $1,200 for three days. Local businesses get a discount, paying about a third of the fee that out-of-town businesses do for booth space, Neff said.

Expenses include entertainment — three stages of musical acts — tents, sound systems, advertising, insurance, lighting and portable toilets.

Neff said the association pays about $25,000 for insurance, another $25,000 for entertainment.

She said she understands the outpouring of city resources used and said she stays in close contact with city officials about what may or may not be feasible from year to year.

“We are willing to work with the city to make it successful for the city and the businesses,” Neff said.

Former Republican City Councilor Martin Olsen said the question of whether Sailfest is considered a boon to the city has been an on-and-off debate for years.

“From time to time, there have been questions raised,” Olsen said. “I would say the majority of the community supports it. There’s never been a big outcry. Over the course of time, there’s been different folks who have said that we don’t get a lot of value out of it. The way I see it, that’s more of a minority opinion. It’s a big, big community event."

Olsen was puzzled, however, by the lack of information available from the city on things like overtime costs.

If the subject does become part of the public discourse, it wouldn’t be the first time.

In 2009 the City Council, upon hearing news that the city was contributing more than $100,000 to the event, had discussed the idea of charging an entrance fee.

The idea appears to never have gained any traction.

g.smith@theday.com