Fairgrounds takes $535,000 hit due to COVID

Low turnout at the Northwest Montana Fair and Rodeo and other effects of COVID-19 have cost Flathead County roughly $535,000 in revenue, nearly twice what the fairgrounds department has saved in reserves, according to Fairgrounds Manager Mark Campbell.

About 32,200 people attended the fair, which took place over five days in August. County leaders were criticized for hosting the event amid the pandemic; large numbers of attendees were seen without masks or face coverings.

Yet total attendance was down about 60% from last year's record high, resulting in a big hit to the fairgrounds' operating budget. In a normal year, about 75% of that budget comes from the annual fair, while the rest comes from facility rentals.

During a recent presentation, Campbell told the county commissioners his department was being "extremely frugal" to help offset the lost revenue. In an interview, he said the department has requested about $72,000 in reimbursements from the Coronavirus Aid, Relief and Economic Recovery Act that Congress passed in March, but those would cover only specific COVID-19-related expenses, such as signage, hand-sanitizing stations and additional staff and equipment for increased cleaning regimens.

A recovery plan is still in the works, but Campbell said breaking even will probably require some combination of tax revenue, spending from the county's general fund and spending from the fairgrounds' reserve account, which currently has about $281,000. After moving about $100,000 into reserves last year, the department is left with a shortfall of about $435,000, he said.

The fairgrounds also might have to postpone some capital improvement projects slated for the current fiscal year, such as replacing the north bleachers and an old boiler in one of the exhibition buildings. Campbell said the fairgrounds' operating budget is about $1.2 million, while the capital budget, which consists of tax revenue, is about $282,000.

"Our model of what we do here has really been changed and disrupted," he said.

Aside from the fair, Campbell said about 80 events at the fairgrounds have been changed or canceled due to COVID-19, resulting in a roughly $30,000 hit to the department's rental revenue.

The Up In Arms Gun Show scheduled for this weekend has been canceled because the promoter did not submit a plan to the Flathead City-County Health Department before Nov. 23, when the department announced it would not approve any new plans for events larger than 25 people, Campbell said. That's close to $1,900 the fairgrounds won't receive.

A gun show representative didn't respond to messages seeking comment Wednesday; the Up In Arms website said the event was canceled "due to COVID-19."

Tamalee Robinson, the county's interim health officer, confirmed Thursday the gun show organizers did not submit a plan to the health department. Robinson added she met with the organizers and advised them not to host the event.

Campbell said last weekend's Christmas event at the fairgrounds, hosted by Artists and Craftsmen of the Flathead, was allowed to happen because the group submitted a plan to the health department and received approval in early November. The plan involved social distancing, sanitization measures and restrictions on shoppers' movements within the Trade Center building.

Robinson said that plan was initially approved with a caveat about rising COVID-19 case numbers in the county, and she later contacted the organizers and advised them not to host the fundraiser, but the event moved forward anyway.

Lindsay Mena, president of Artists and Craftsmen of the Flathead, said her group received an email from the health department “encouraging us to consider canceling” but believed the previously approved safety protocols would be sufficient.

"We re-reviewed our event plan and agreed that it allowed for more-than-adequate social distancing measures and we decided to proceed," Mena said in an email.

The last event scheduled for the year, a fundraiser this Saturday hosted by The Christmas Shoppe, will have fewer than 25 people, Campbell said.

Campbell said he's working to finalize the event schedule for 2021. First on the lineup are two events scheduled for Jan. 9 – a wedding exposition and a 4-H gathering.

Campbell said it's too early to say what next year's fair will look like, but he hopes to keep the popular rodeo and bring back the carnival.

"Obviously we're going into that a little more cautious," he said, "and maybe our expectations won't be quite so high."

Reporter Chad Sokol can be reached at 758-4434 or csokol@dailyinterlake.com

This story has been updated to clarify what feedback the health department gave to organizers of the gun show and Christmas events.