Nate Rau

USA TODAY NETWORK - Tennessee

Bonnaroo representatives are in early talks with government officials in Coffee County, as the music festival looks to renew its deal and pave the way for more events on the rural locale's famous farm.

The current agreement between the Bonnaroo Music and Arts Festival and Coffee County's government expires after the 2017 event. In advance of negotiations, a Bonnaroo executive this week delivered a scene-setting speech to the Manchester Chamber of Commerce . The speech, by AC Entertainment’s vice president for community relations Jeff Cuellar, laid out an ambitious vision for Great Stage Park to become a year-round, multi-purpose festival and special events site.

Cuellar’s speech earned a standing ovation and early reactions indicate a hopeful tone from Manchester and Coffee County leaders.

But, there will be a cost.

Bonnaroo’s owners, including Live Nation which last year purchased a controlling stake in the festival and the 750-acre farm, have recently spent several million dollars on infrastructure upgrades. In order to make the additions they want to make, the infrastructure — particularly the water and sewer work — must be improved, Bonnaroo officials contend.

And in order to make that happen, the festival's owners will be looking to rework their agreement with Coffee County. Under the current terms of the deal, Bonnaroo pays a flat $30,000 payment each year in addition to $3 on each ticket sold, which has pumped around $280,000 annually into Coffee County’s coffers. Bonnaroo also covers the cost of overtime pay for Coffee County and Manchester law enforcement and public safety officers.

The festival’s owners will be looking to change the deal so that in the future some of that money is used to pay for infrastructure upgrades.

In return, the festival’s executives and local officials hope, Manchester — with a population of about 10,000 — will become home to the world’s preeminent festival grounds.

“Our grand vision for Great Stage Park is not yet complete, and there is still plenty of work to do to the site in order to create the kind of infrastructure overhaul to allow for a diversity of events to take place on the site,” Cuellar told the chamber crowd at a luncheon Tuesday. “That’s right — Bonnaroo is just one of a series of annual events that we’d like to host at Great Stage Park.

“It is not unreasonable to think that we could be hosting two, three, four events (at the Bonnaroo site) annually by 2020.”

When Bonnaroo first arrived on the farm, the traffic and transportation logistics rankled nearby residents. As the festival grew, the hosts and the local government partners got better at running the event that typically attracts around 80,000 people.

In addition to the money that Bonnaroo pays to Coffee County, the festival maintains a nonprofit foundation that has contributed $5 million in charitable donations since it was launched 10 years ago.

Bonnaroo also works with local civic groups, which operate food booths during the festival and keep a portion of their profits.

“I know the first year or two the traffic jams were horrendous,” Coffee County Mayor Gary Cordell said. “That gave a negative perception early on. But it’s so fine-tuned now. Some of the residents right around the farm it may cause them more traffic, but a lot of people in the county, you hardly even know it’s here.”

Cordell said Bonnaroo has been embraced by the local business community, and said that the details of a new agreement still need to be worked out.

But, he acknowledged that he is intrigued by the concept of the site hosting multiple events.

Bonnaroo’s Great Stage Park is located in the city of Manchester just off Interstate 24. Manchester Vice Mayor Ryan French, who chairs the city’s tourism commission, said that a generation of young people have grown up with Bonnaroo as a part of their lives.

French, who is 30, said sometimes it’s hard to believe that the bucolic community hosts world-renowned artists.

“As surreal as it is to think Paul McCartney has played on Bushy Branch Road, at the same time I can’t imagine it not being there,” French said.

He said that while Manchester is a tightly knit, laid-back town, many business owners understand the potential revenue to be had if the farm hosts more music festivals and other events each year.

“I think the next 15 years is something the region can be excited about," he said. "With the infrastructure investments they’ve made, they’re putting their money where their mouth is.”

Cuellar said the festival market in the United States has heated up since Bonnaroo emerged onto the scene 15 years ago, leaving organizers to compete with well-run events throughout the summer months. This year’s festival will see a dip in attendance.

But Cuellar said the sales pitch to local officials is that even by giving up a portion of the $3-per-ticket they now receive, the potential is there to bring in more tax dollars with more events. The most recent economic impact study for Bonnaroo in 2012 found that the festival generated $51 million in economic impact and $36 million in direct spending.

This year, Bonnaroo added bathrooms. But more water and sewer work is in order to add even more shower and bathroom facilities, in addition to paving and other infrastructure.

“For us, things have changed,” Cuellar said. “The landscape has changed. In 2002 we didn’t really have any competition.

“I think as we look to the next 15 years, how are we going to improve that Bonnaroo experience and maintain our leadership within the industry? And how are we going to build up Great Stage Park so it truly is a driving industry within Coffee County, Manchester city and Tennessee?”

Cuellar said it was premature to speculate how the new agreement should be structured.

“We can take steps on our own as a private entity, but we have to have that public support and government support to be able to do it,” Cuellar said. “And we all have to recognize that we will have to spend a little money to get to where we want to go. But in the end, the rising tide will raise all ships.”

Reach Nate Rau at 615-259-8094 and on Twitter @tnnaterau.

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