Sundance Considers Seeking State Aid

The Sundance Film Festival might seek financial aid from the state to keep the festival growing during an economic downturn.

Festival officials say it's been harder to secure corporate sponsorships this year than in the past. "Instead of signing multiple-year sponsorship deals with a minimum of three years, some of the newer sponsors are signing for one-year contracts," said Sarah West, director of Utah Community Development for the Sundance Institute. "We'll probably see some decrease in funding but at the same time, we're very hopeful that our sponsors will continue to support us."

Sundance officials have met with the Governor's Office of Economic Development to explore the possibility of receiving state aid, although no formal application has been made.

In a meeting with the Governor's Office of Economic Development, festival officials cited consistent growth in tourism spending at the festival to persuade state officials that investing in the film festival would help boost state tax revenues. But Jason Perry, executive director of the Governor's Office of Economic Development, says the economic downturn is making it difficult for anyone to get aid because there is more competition.

"Because of budget cuts and lower state revenues, the Legislature has to re-prioritize where they put their dollars this year," he said.

Sundance had asked for $1.5 million in funding from the state Legislature last year, but its efforts weren't successful.

Brooks Addicott, associate director of media relations with the festival, said it is a good time to reevaluate what its options are in light of the economic downturn.

"As the costs of lodging, meals, transportation, venue rentals increase, the margins we've been able to use to reinvest in the festival are narrowing, " West said. "If we were to minimize the festival, there could be economic repercussions for the state in terms of decreased tourism and economic activity."

Even though competition for state funding has intensified with the downturn, Steve Densley, president of the Provo-Orem Chamber of Commerce, believes state investment in the festival is a good idea. will yield "great dividends" for the state. "The people who come to the festival are well-heeled. The festival brings tremendous money through the visitors who ski, eat, stay at the hotels and visit local stores. This will help the state build more revenue," he said.

The 2009 festival runs from Jan. 15 to Jan. 25.