RACINE — Downtown Racine business owners hope to see a resolution as the company managing Festival Park says it has been operating without a contract for months.
Festival Park is a City-owned lakefront property currently managed by 5K Events, a local business owned by Patrick Flynn.
Watch: Why Festival Park is still waiting for a contract with the City of Racine and how this impacts its operations.
The company began managing the site in 2024 and has since brought back historic community events such as Salmon-a-rama, Harborfest and the Festival of Trees. 5K Events has also brought a weekly farmers market to the site.
5K Events submitted a contract renewal request in June of that year, giving the City 180 days to renew or terminate.
Flynn said the company heard nothing back.
"Crickets. We didn't hear anything," Flynn said. "So nothing happened."
The contract then expired in December.
Flynn said 5K Events and the City were able to sit down five weeks ago, but he was shocked by proposed changes to a new agreement.
"Blindsided. We never saw the new contract, we never saw any changes, until that moment," Flynn said.
Flynn said the proposed contract contains several changes that significantly impact the company's ability to manage the site with financial certainty, including a provision that would hold his company responsible for any financial losses, despite the property being City-owned.
"I would be held personally liable for any overruns," Flynn said.
The City said Friday its contracts "require fiscal accountability."
"To remain responsible stewards of taxpayer dollars, the City has an obligation to ensure that all contractors operate within established budgetary parameters," City Clerk Tara McMenamin said.
McMenamin added that the Common Council allocated $200,000 to reimburse operating expenses if the "contractor could demonstrate that expenses exceeded generated revenue. This allocation was in addition to the $150,000 annual management fee established under the contract."
In his June 2025 renewal proposal, Flynn requested a separate line item for the cost of utilities. Flynn estimated utilities alone cost the campus about $240,000 a year.
"If there's any losses, we would be liable for that. Now I can control that for the most part, but what I can't control is the utilities it takes to run this campus," Flynn said.
The City's proposed contract did not address this request.
The proposed contract would also require all sponsorship banners to receive approval from the Common Council.
Flynn said limiting their ability to hang sponsorship banners "just took six-figures away from us."
"How am I going to recoup that?" Flynn said.
Flynn said this comes as his company does not profit from running the site.
"We don't get any of the profits. All the money that we earn goes into what's managed by the City and by us," Flynn said.
The uncertainty has created questions for 5K Events staff and the people booking events at the site.
Downtown business owners say they want to see Festival Park succeed and are urging both sides to reach an agreement.
"Since they don't have a contract, are they going to be gone? Or are they staying? What's going on?" downtown business owner Lorna Revere said.
Revere said the company's work at the site speaks for itself.
"If they're here, and you see progress in the way of the grounds or the building or events starting to happen, then don't they deserve a contract?" Revere said.
Fellow business owner Emerson Holliday said the stakes extend beyond the park itself.
"The more traffic, the more opportunity. The more opportunity, the more money. More money, more success," Holliday said.
Both Revere and Holliday said they saw increased foot traffic as a result of the farmers market that kicked off at Festival Park in early May.
"We need the foot traffic. We need the business," Revere said.
Holliday said he simply wants to see good management of the site and hopes both sides can find common ground.
"We need something going on down there," Holliday said.
On Friday, the City said negotiations are still active and that two parties "have approached the City regarding potential management" should an agreement not be reached. One of those parties is Hotel Verdant.
The City said any proposed contract for management services would to be approved by the Common Council.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
It’s about time to watch on your time. Stream local news and weather 24/7 by searching for “TMJ4” on your device.
Available for download on Roku, Apple TV, Amazon Fire TV, and more.
