Summerfest nears $10 million goal in private fundraising for American Family Insurance Amphitheater reconstruction

With the reconstruction of the American Family Insurance Amphitheater due to be completed by June, Summerfest officials are racing to reach their $10 million goal in private fundraising for the project.

"The finish line is within sight," Summerfest chief Don Smiley said Thursday during a board meeting of Milwaukee World Festival Inc., which oversees The Big Gig.

Smiley said private fundraising has reached $8.7 million.

"If a couple of things come through, we’d like to wrap this up by January 1st or so," he said.

The $10 million in private fundraising is a key piece for the project, which will cost up to $53 million. Other funding sources include the festival's cash reserves, a lead contribution from the venue's sponsor, American Family Insurance, and a $23 million loan.

The project is being completed in two phases.

During phase one, the roof was raised and backstage facilities were rebuilt in time for last year's event, enabling Summerfest to bring stadium-sized shows into the facility.

Phase two of the project includes new seating, expanded concourses and more food and beverage options.

The Milwaukee World Festival released its financial numbers Thursday as the board approved a 2020 operating and capital budget.

Despite four days of rain and the cancellation of one concert date at the amphitheater, Summerfest generated $16.3 million in net operating income in 2019. But the figure fell $1.3 million short of budget projections.

Net operating income for Summerfest is budgeted for $18 million in 2020, with officials counting on an extra $1.7 million. There will be 11 Summerfest shows at the amphitheater this year, compared to 10 in 2019.

Increased food and beverage sales are also anticipated. The organization will spend $400,000 on point of sale equipment, such as cash registers, to help speed sales in the amphitheater.

Amid what has been a more than decadelong building boom on the sprawling Maier Festival Park grounds — and accelerated depreciation — Milwaukee World Festival Inc. is projecting a $2.1 million loss in 2020.

Before depreciation, the 2020 operating budget shows net income of $9.2 million. The organization projects $11.3 million in depreciation, which is tied to the length of its lease at Maier Festival Park as opposed to the age of the assets, such as stages and buildings.

Milwaukee World Festival’s lease to operate at the site runs through 2030.

Summerfest will be held June 24-28 and June 30-July 5.