What’s the economic toll on Happy Valley without the Blue-White Game? Experts, business owners explain
Dave Gerdes, the Happy Valley Adventure Bureau’s vice president of sales and marketing, was looking forward to this year’s Blue-White Game.
He enjoys the annual Penn State intrasquad scrimmage every year. It helps bring the community together, ushers in the warmth (usually) of spring — and provides a needed economic boost to the community. But, without the game this year, local businesses around the county are feeling the sting.
According to Gerdes, who works for the nonprofit visitors’ center, this weekend is economically one of the most important three-day stretches of the year for the area, routinely bringing in several million dollars to the local economy. Some downtown State College bars estimate they do about four times the business this weekend compared to “normal” days, and local hotels raked in an estimated $1.1 million for this weekend alone last year.
But, amid the global pandemic of COVID-19, many downtown bars and businesses are now shuttered. And about half the local hotels have shut their doors completely for now, turning an oasis of economic opportunity into a desert.
“Blue-White Weekend is probably the second-busiest time of the spring or early summer time frame, even busier than Arts Fest weekend,” said Gerdes, adding the bureau’s numbers show this weekend impacts the economy more than the Nittany Lions’ final football home game. “It’s a big weekend, one I think many people look forward to.”
Gerdes said downtown State College is the bull’s-eye when it comes to the impact of not having the annual scrimmage, but that doesn’t mean it’s only the college town that’s affected. The We Are Inn in Philipsburg, for example, has just one of its 18 rooms booked for Saturday. Families won’t pass Centre Hall’s Penns Cave & Wildlife Park, couples won’t participate in the Central PA Tasting Trail, and alumni won’t visit nearby Bellefonte to take a quick stroll along its waterfront.
In State College, the impact isn’t limited to businesses, either. Last year, according to parking manager Rick Ward, the borough brought in $84,500 in parking revenue during Blue-White Weekend. Now, with the borough indefinitely making such parking free, that revenue will flatline this weekend.
“It’s going to be more far-reaching than just the downtown businesses,” said James Tierney, Penn State assistant teaching professor of economics. “In economics, we talk a lot about multiplier effects — so the wages (for downtown workers) aren’t going to be given to individuals, so now they’re not spending their wages at other places either.
“There’s no good news out of it; that’s 100% sure. I wish I could give good news.”
Some businesses are more insulated than others. Bill McFadden — the owner of Faccia Luna, about a mile from downtown on South Atherton Street — said his restaurant doesn’t pull in additional revenue from the annual scrimmage because he can depend on locals on any given weekend. (During the pandemic, he said his restaurant is pulling in about 35% of its normal revenue while open.) Others, such as the downtown’s Hotel State College & Company, aren’t so fortunate.
According to operations director Curtis Schulman — who helps oversee The Corner Room, Spats at the Grill, Bill Pickle’s Tap Room, Zeno’s Pub, The Basement and Chumley’s — the loss of Blue-White Weekend serves as a “massive blow” financially.
“Our industry is a cash-flow business; we survive on cash flow,” he said. “We don’t have these big cash reserves. ... When students go, that’s a big hit to our business because our largest demographic is gone.”
None of those interviewed believed the Blue-White Game should have taken place, and all said they understood this was what’s best for the community. But knowing that still doesn’t change the harsh reality that one of the year’s most profitable weekends has turned into a net loss.
The far-reaching economic effects of the global pandemic still aren’t completely known, especially on the local level, but many businesses haven’t tried hiding the fact they need help. Mike’s Wood Grill and Bar closed last month, with McFadden calling the coronavirus the “proverbial nail in the coffin.” And small businesses — such as Paper Moon Tattoo, The Cakery and Saltwater State College — have teamed up to sell T-shirts with proceeds benefiting the local shops.
There is no one-size-fits-all solution to the economic realities of the pandemic, business owners said. But many said purchasing gift cards, buying takeout at restaurants and generously tipping delivery drivers would be a tremendous help.
The lack of the Blue-White Game only magnifies that.
“It’s tough for everyone,” Gerdes added. “But the more we can get out and support them the best we can, the more we can kind of circle the wagons and help those small businesses, the better off we’ll be over time. This is a time where they need our support, the most we can give them.”
This story was originally published April 18, 2020 at 9:37 AM.
