Napa's BottleRock music festival will return this spring under new management, even as its former producers this week declared in court filings that they owe creditors $4.5 million.
Given the financial meltdown of an event that last year drew an estimated 100,000 people from around the world, both the city of Napa and the state-owned Napa Valley Exposition said Friday they are taking a pay-to-play approach with the new producers. This year both entities are demanding payment for estimated costs up front.
The festival, which last year featured such major bands as Alabama Shakes, Kings of Leon and The Black Keys, will return May 30 for three days, two fewer days than in 2013.
The new producers say BottleRock this year will feature 40-plus artists. Its lineup and the entrance prices are scheduled to be announced early next month when tickets go on sale.
Both government officials and a tourism leader voiced optimism Friday that the four Napa Valley businessmen who have taken over BottleRock can put on a financially viable event that once more draws throngs of music lovers.
"The incredible excitement around BottleRock was just phenomenal," said Clay Gregory, president of the tourism group Visit Napa Valley.
For festival-goers and area hotels, last year's BottleRock couldn't have gone any better, Gregory said, Besides the 60 bands, the event introduced Napa wines and restaurants on site to many who normally wouldn't visit the region.
"Unfortunately," he said, "it had great financial problems as well."
The problems were detailed in bankruptcy reorganization filings this week by the former producers, BR Festivals LLC. The company listed assets of $610,000 and liabilities of $4.5 million.
Among the creditors is the International Alliance of Theatrical Stage Employees Local 16, whose stagehand technicians were the first last June to publicly demand payment for work done at BottleRock. The bankruptcy filings reported that $300,000 is owed in wages to the union.
The city of Napa also is listed among the 20 largest unsecured creditors, in the amount of $106,729.
Police Capt. Steve Potter said the city has made clear it still seeks to be paid in full for last year's services. And it has told the new producers that it must have a different arrangement on payments.
"This year they're going to have to pay the estimated costs up front," he said.
The new production company, Latitude 38 Entertainment, and the city already have held one meeting to begin planning for this year's festival. The city has asked the company to reach out to neighbors near the Napa Valley Expo and hear their concerns and suggestions.
The festival-goers seemed to have a good experience overall, Potter explained, but "many of the neighbors weren't happy."
At Napa Valley Expo, CEO Joseph Anderson said the new producers already have paid the venue $310,983 from the debt owed from last year's BottleRock. As well, all the payments for this year's festival will be due 30 days before the first band takes the stage.
BottleRock is still seen as a great boon to the local economy.
"It brings a lot of people into the valley," said Anderson.
Gregory agreed and said that hotel revenues last April and May increased roughly 20 percent over the same period in 2012. Even in April, hotels benefitted from technicians coming into town to build the stages, he said.
One of the new producers said in a statement Friday that the partners understand "the city's need to be vigilant with its funds."
"We are prepared to pay the city the fees within a schedule that is mutually agreed upon," said David Graham, Latitude 38's managing partner.
He added that the producers intend to work with the city to address impacts on the neighborhood and other issues while keeping what they consider the best aspects of last year's event.
"The talent line-up combined with the food and beverage offerings were world-class and festival-goers made it very clear that experience was second to none," Graham said.
The producers also announced the hiring of a festival director, Steve Macfadyen, most recently director of entertainment and general manager of the 2,000-seat concert theatre at the Agua Caliente Casino Resort Spa in Rancho Mirage.
(You can reach Staff Writer Robert Digitale at 521-5285 or robert.digitale@pressdemocrat.com.)
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