Slumping attendance, rising hotel costs and restrictions on jamming at Hotel Murano have Wintergrass organizers considering a move to Regency Hyatt Bellevue in 2010.

But Tacoma power brokers Monday countered with incentives aimed at keeping the popular bluegrass festival in Tacoma, its home for 16 years.

“We had a very positive, constructive meeting,” said the City of Tacoma’s community and economic development director, Ryan Petty, alluding to a “concrete plan” that included offering Wintergrass a $10,000 sponsorship grant and other incentives.

Wintergrass directors Patrice O’Neill and Stephen Ruffo also met with Tacoma Mayor Bill Baarsma, Tacoma Arts administrator Amy McBride, Tacoma’s public assembly facilities director, Mike Combs, Tacoma Regional Convention & Visitor Bureau President Tammy Blount and other officials Monday.

Festival directors had not yet read the entire proposal they walked away with Monday and declined to elaborate on specific details. But they said offers of assistance with venue rental, grant writing, Web site design, parking and other operational costs were discussed at Monday’s meeting.

The Tacoma Regional Convention & Visitor Bureau requested that local hotels offer a special rate of $109 per night to Wintergrass patrons in 2010 with some proceeds benefiting the festival itself, according to Shilo Inn sales director Laurie Beck. She attended a Wintergrass rally at Tacoma’s Paddy Coyne’s pub Monday evening, but did not attend negotiations earlier in the day.

Petty said the city has not conducted an economic impact study of Wintergrass, which draws a few thousand bluegrass enthusiasts to Hotel Murano, Urban Grace Church, the Varsity Grill and other downtown venues each February.

“What we do know is that it fills up hotels from Tacoma to and including all of Fife,” Petty said.

Ticket sales dropped by about 25 percent this year, costing the festival about $42,000, according to O’Neill.

And based on responses to an online survey regarding whether the festival should move organizers feared a further drop in attendance from bluegrass fans angered by Hotel Murano’s increased restrictions on lobby jam sessions, an integral part of the festival since its inception in 1994.

“I think we’re very sensitive and sympathetic to the balance that they have to strike (with the) $20 million investment they made,” O’Neill said. “We really get that. And that’s the major question for us and them. Do we still fit? Is it still OK for us to be here?”

“This is our home and these are our friends,” Ruffo said. “But there’s a reality that can’t be ignored. And that’s (that) we lost money last year.”

O’Neill and Ruffo planned to study the written proposal before meeting with Wintergrass’ board of directors Wednesday.

“We are pretty committed to making a decision one way or another by the end of the week because we have to,” O’Neill said.

“Wherever we go, our assumption is that to some degree or another we’re going to re-create the festival. And we need time to do that. So we don’t want to drag this out.”

Ernest A. Jasmin: 253-274-7389

ernest.jasmin@thenewstribune.com

blogs.thenewstribune.com/rockcity