Wave gets Naftzger Park entertainment, booze contract; competitors say bid process unfair
City Hall turned over control of events and alcohol sales at the new Naftzger Park to the Wave venue on Tuesday, despite complaints from competing vendors who questioned the process and called it a “sweet deal” for the popular downtown venue operators.
The plan passed unanimously after a lengthy discussion with owners of two companies that also do event planning and promotion who complained that Wave, the operator of an Old Town venue, will have control over any alcohol sales at events at that park.
The new contract also gives Wave the right to control access to the newly renovated multi-million-dollar park and sell admission to events there.
Park management analyst Gentry Thiesen, who pitched the deal to the City Council, said there will still be significant city-run events in the park.
“If you watched the Super Bowl on Sunday and saw clips of the Power and Light District in Kansas City, packed with people, that’s what we hope for and intend to have with tailgating watch parties on the video screen in our own Naftzger Park,” she said.
City Parks staff recommended that Wave get the one-year renewable contract after a Request for Proposal process that drew expressions of interest from only five potential vendors and only one official bid.
Cody Lathrop and Crystal McDonald of Xclusive Events said they didn’t bid for the park because the original RFP bore little resemblance to the final deal City Hall negotiated with Wave.
“We read this (RFP) and we thought well, this would be a management company that would allow all events to come in, not a private individual with a kickback to the city or a risk-share,” Lathrop said. “If the RFP said (the city) will share your risk, you probably would have gotten more than five people” expressing interest.
“This is a sweet deal to only have one person apply,” he added. “There’s something going on, whether it’s the developers or whoever’s behind it, to have one person apply and then give that one vendor a risk share? . . . And a 10 percent kickback after (the first $150,000 profit) is kind of a joke for the city.”
Owners of Wave, Adam and Jessie Hartke, said most of their events will be free to attend, although they do plan to segment off areas near the stage for VIP tickets and alcohol sales.
“If you know anything about Wave or work we’ve done in the past beyond Wave, you know we’re all about bringing the community together, getting people together and doing things that create common bonds,” Adam Hartke said. “It’s not our intent to keep Music Theatre Wichita from doing a play or keep anybody out of the park.
“If anybody has worries about that, I can only give my word to say we’re going to work our best to work with everybody.”
Financial projections attached to Wave’s application projected the company would do about 20 events. On Tuesday, the Hartkes said they’re planning for considerably more than that.
“Our first event is planned for March 11, followed by the 12th and the 13th, so we have three events planned in a row,” he said. “And then we have holds, probably almost two dozen holds on the calendar for other events.”
Parks Director Troy Houtman said the city needs a private partner to “activate” the park with the expertise to negotiate with the acts and handle alcohol sales.
“They’re providing us with the service that we’re not very good at,” Houtman said.
Alcohol was the big sticking point for the vendors opposing the contract.
McDonald said Xclusive specializes in free events, but won’t use Naftzger Park because Wave’s first right of refusal blocks others from being able to bring in their own alcohol.
“For us to be able to make money off an event, we have to be able to have our booze trucks there,” she said. “Why would Wave hand over the liquor (concession)? That’s the only thing that makes money.”
She said the city is “pigeonholing that park to just Wave now and I just think that’s unfair to other small businesses.”
Pat Pelkowski, owner of the Magic Maker events company, said he’s also not planning to try any Naftzger events “because it would be crazy” for Wave to allow anyone else to sell alcohol in the park.
“I want to just be able to be given the same fair chance to come in there, on city property, in order to sell my wares that you’re giving the Wave opportunity to do,” he said. “You can’t do it in any other city park. I’ve tried.”
Houtman said while Pelkowski may have been rejected from selling alcohol in the parks before, the city loosened those restrictions last year.
Under the Naftzger Park contract, Wave will receive all profits from the park events up to $50,000.
If profits exceed $50,000, the city will get a 5% share of any profits between $50,000 and $150,000 and 10% of anything above $150,000.
If the contract loses money, Wave and the city would split the loss.
▪ Losses up to $10,000 would be split 85% to Wave, 15% to the city.
▪ Losses between $10,000 and $25,000 would be split 75% Wave and 25% city.
▪ Losses from $25,000 to $50,000 would be split evenly and Wave would bear exclusive responsibility for any losses exceeding $50,000.
The city is nearing completion of a $3.9 million renovation project in Naftzger Park, which was rebuilt primarily to serve the needs of the Spaghetti Works District, an apartment and business project abutting the park.
The park rebuild is being financed with $2.5 million in city funds, including $1 million borrowed through general obligation bonds and $1.5 million borrowed against future property tax revenues from new businesses adjacent to the park.
The remaining $1.4 million comes from a sponsorship agreement with Evergy, the electric utility formed by last year’s merger of Westar Energy and Kansas City Power & Light. The stage in the revamped park will be called Evergy Plaza.
This story was originally published February 4, 2020 at 3:36 PM.
