‘It’s never been about making money’

By applying to be an overnight host city for the Register’s Annual Great Bike Ride Across Iowa (RAGBRAI), the goal of Newton city leaders and volunteers was to showcase the community, the city’s progress, local businesses and nonprofit organizations, as well as the inviting townsfolk.

Making a profit was never a concern, Newton RAGBRAI Executive Committee Chair Danielle Rogers said.

“It’s never been about making money,” she said. “RAGBRAI does cost a lot of money though. We have to bring in extra law enforcement, we have to bring in entertainment, do publicity. All the money that we have been using has been through sponsorships and donations from local industries, business members and some individuals, as well. After the event is done, we are hoping to be able to pay all of our bills.”

Yet there seems to be a misunderstanding among a handful of Newton’s residents who believe the city is earning a profit when the estimated 25,000 people ride through town July 25. RAGBRAI subcommittee head Kelsey Terpstra, who handles the event’s vendors, said some people believe if they paid the vendor fee — $350 for nonprofits and $750 for for-profit groups — that money would be pocketed by the city.

“Well, that’s not true,” Terpstra said. “I think the misconception is the city is making money. The city actually has nothing to do with it. This is the RAGBRAI committee and the goal is to break even. So really nobody will be profiting.”

In a letter to the editor dated June 1, the Newton RAGBRAI Committee said “vendor fees help cover costs such as toilets, extra police, transportation, maps that include these vendors, etc.”

Local business and nonprofits are encouraged to operate as they normally do the day riders arrive, from the day’s starting point in Ames, without incurring any additional fees, the letter stated.

If a positive balance is netted after all the bills are paid by the RAGBRAI committee, Terpstra said, the plan is to distribute the funds evenly amongst the nonprofits involved with the overnight host. However, the amount given might not cover the cost of a nonprofit vendor fee if the income is not high enough.

“But it would be at least something so they can try to recoup that fee,” she said.

Unsure of where the misconception came from, Terpstra said the RAGBRAI committee hosted a townhall meeting that detailed its expectations.

“We’re not doing anything differently than any other town on this particular trip or years before,” she said. “This is pretty standard across the board. I have all of the information from 2006 (when RAGBRAI last appeared in Newton) and they paid vendor fees then.”

Katie Besch, a co-executive chair of the Algona RAGBRAI committee in 2017, said her town of more than 5,000 people broke even financially by the end of the host.

“There’s a lot that goes into it,” she said. “You have to pay for everything that goes on — the safety, the additional expenses for your public, your police department, your ambulance. All those things have to be taken into consideration. (RAGBRAI) can bring a lot to your community, but there are those expenses, too, that have to be covered.”

Algona’s RAGBRAI vendor fees, Besch added, were used to cover expenses and “everything that goes into hosting.” If the Algona RAGBRAI committee had made a profit, she said the positive expenses would have been given back to its nonprofits, as well.

“But the weather didn’t cooperate with us,” she said. “We didn’t have the influx that was expected, but that is what our intent was (to give back to local nonprofit organizations).”

Was it worth it? Besch said it was certainly a lot of work, but it was well worth it for the Algona community.

“We would do it again,” she said. “It was a good experience but it’s a lot of work, so it’s good that it doesn’t come through every year. But it’s a lot of work — if I said it once I’ve said it a million times.”

Rogers knows the feeling.

“It’s been almost a second full-time job for a lot of us on this committee,” Rogers said. “It’s going to be a great day and a great evening. (We) really hope the riders take away how much we love our community and how welcoming we are. We’ve got a great thing happening in Newton and we look forward to the future and inviting them back.”

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com