Republic of Texas Biker Rally: Deal reached, it's a go

Austin, Texas  (October 4, 2018) BSB — The Republic of Texas biker rally and the Texas Heat Wave car show will return to the Travis County Expo Center next summer, forcing the Travis Central Appraisal District to find another location for its property tax hearings. A 3-2 vote at the Travis County Commissioners Court on Tuesday rejected TCAD's request to rent the Eastside facility and directed county staff to negotiate contracts with the motorcycle and car events.

 Related | Future of Republic of Texas Biker Rally in question 

TCAD was set to rent the venue from May to August of 2019, when it expects to hear from more than 140,000 county residents protesting their property tax bills. After success at the Expo Center last year, TCAD Chief Appraiser Marya Crigler said she and her staff were looking forward to returning in 2019. They submitted a signed contract to the county and only needed approval from county commissioners, but ROT and Heat Wave, which have both been held in the county for over two decades, objected; TCAD's three-month occupancy would interfere with their 2019 event dates. The ROT rally is set for June and Texas Heat Wave for July.

The motorcycles will be back next year. Photo by: John Anderson

Last week, commissioners briefly took up the rental issue, but punted it a week so they could try to sort through the situation. The vote followed a tense debate in which commissioners offered a glimpse into how they each expect staff to work with business partners in renting out the Expo Center. On one side, Commissioners Brigid Shea and Gerald Daugherty argued that the county should work to maintain relationships with "longstanding partners," as Daugherty put it. On the other end, County Judge Sarah Eckhardt and Commissioner Margaret Gómez suggested that staff should rent out the 128-acre site on a first-come, first-served basis. In the middle was Jeff Travillion, commissioner in Precinct 1, where the Expo Center is located. He hoped for a compromise in which all three entities would be able to use the facility. Eckhardt and Gómez were the two votes against continuing negotiations with ROT and Heat Wave.

Increased facility rental fees and miscommunication between county staff and the event organizers were at the heart of the dispute. Texas Heat Wave Promotions Director Chris Schneider said rental fees for his event rose from around $27,000 in previous agreements to over $40,000 in the new contract offered by the county. Schneider said Heat Wave was prepared to cut the check, but that he and the event's accounting team needed more time to consider "such a big decision." ROT President Jerry Bragg, however, was less comfortable with the price; it would have been a bigger stretch for his event to afford the increased rental fees. Meanwhile, TCAD was ready to sign a contract for its three-month rental, which would net the county nearly $150,000.

In addition to the increased rental fees, Bragg and Schneid­er expressed frustration with how county staff communicated with them about contract negotiations. Bragg said it was unclear whom he was supposed to work with to negotiate a contract, and Schneider said he was misled on how long his event would have to make a decision on agreeing to the raised rent. Travis County Director of Facilities Manage­ment Roger A. El Khoury refuted ROT's characterization at the Tuesday hearing. "I talked to ROT," he said. "I did everything I can. ... I'm not trying to dump them completely, but ROT did not come to the table and [another] opportunity came."

Now, that opportunity is lost. Crigler said TCAD will likely have to find an alternative venue, which could prove difficult for the appraisal district. "Time is a considerable obstacle for us at this time," Crigler said. "There were competing needs and desires from all parties, we're not going to pass judgment on anybody. ... We're going to respect the decision of the Commissioners Court."

SOURCE: The Austin Chronicle

Harley: Too many used bikes hurting new sales

Milwaukee, WI (October 1, 2018) BSB — Harley-Davidson Inc. is facing a particularly tough competitor for new riders: its own used motorcycles.

Three used Harley's are sold in the U.S. for every new one. A decade ago, it was the other way around. New motorcycle sales in the U.S. are down by half from a 2006 peak, while used sales are up 13%.

Harley wants to reverse it's sales slump by drawing new riders with 16 new middleweight bikes set to roll out by 2022 PHOTO: David Paul Morris/Bloomberg News

Milwaukee-based Harley in 2018 is heading for its fourth straight year of declining sales as the company’s core older customers scale back purchases while younger riders fail to pick up the slack. A glut of used Harley-Davidsons has emerged after years of strong sales growth and production volumes, and offers a variety of choices for those unwilling to splurge on pricey new models.

“It comes down to price, always,” said Jim McMahan, co-owner of a Harley dealership in Greensburg, Pa. “There are people who just don’t want to spend $18,000 to $25,000 on a new motorcycle.” Used Harley's in good condition can cost less than $15,000, dealers say.

Harley wants to reverse its sales slump by drawing new riders with 16 middleweight bikes it plans to roll out by 2022. Among them will be the company’s first electric model, debuting next year.

Harley hasn’t released prices for the new bikes, but dealers expect many of the models will be cheaper than the big bikes that make up the core of the current lineup. Offering more motorcycle choices at lower prices could lure younger riders to the Harley brand for the first time and help offset slumping sales of traditional models.

Heather Malenshek, Harley’s vice president of marketing, said used Hogs aren’t the company’s biggest problem. “The greatest challenge is to bring younger people into the sport,” she said. “Our used motorcycle base is a great way to get them in.”

But some Harley fans—including one Harley salesman—say the price of a new Harley deterred them from buying one. John Call, 31 years old, has sold Harleys at a dealership outside of Cleveland since 2016. In buying his first Hog last year, he chose a used 2009 Dyna Fat Bob for just under $10,000.

“A new Harley isn’t really practical for me,” he said. “I’ve got a growing family.”

Harley-Davidson motorcycles tend to have long lives. They don’t wear out easily or go out of style quickly and owners tend to take care of them, making the bikes appealing in the used-motorcycle market.

A prototype model of Harley's electric motorcycle, live wire. Harley plans to roll it out next year. PHOTO: Harley-Davidson

Harley has struggled to lessen its reliance on baby boomers, whose growing discretionary income and passion for hobbies including motorcycle riding brought the company back from the brink of bankruptcy in the early 1980s. Now, those riders are aging and buying motorcycles less frequently. But younger riders often can’t afford as many bikes as their parents or don’t see themselves living the Harley free-spirit lifestyle.

In response, the company is pursuing younger people who don’t fit the profile of a typical Harley fan: male and clad in a black T-shirt and leather vest. On Monday, Harley said it would start selling its popular branded apparel through Amazon.com Inc. Currently, Harley apparel is sold through the company’s website or at dealerships.

Two of Harley’s new models will be dual-purpose bikes for riding on both paved and unpaved roads, a motorcycle category that is growing in popularity in the U.S. Nine will be sports bikes with racing-style body features and seating to reduce wind drag. Harley doesn’t currently compete in either of these categories.

Some dealers said they doubt customers for those kinds of bikes will one day trade up for a new, expensive Hog. Ms. Malenshek acknowledged some might not, but said Harley also needs to accommodate riders who aren’t interested in its traditional models.

“The point of all of this is bringing new customers into the brand that weren’t there before,” she said. “They don’t all want to be in the lifestyle. You can have Harley on your terms.”

The new models are also designed to attract riders overseas, where Harley wants to generate half its sales a decade from now, up from about 39% currently. Harley in June said it would shift production of motorcycles bound for Europe out of the U.S., after the European Union imposed what would have amounted to a roughly $2,200 tariff on each Hog imported from the U.S.

President Trump and unions representing Harley workers said Harley was using the trade fight to justify existing plans to move production overseas. Harley said that assertion was false.

Many foreign markets are dominated by Harley’s competitors. Japan’s Kawasaki Heavy Industries , Suzuki Motor Co. and Honda Motor Co. make popular utilitarian bikes, while Germany’s BMW AG and Italy’s Ducati, owned by Volkswagen AG , make higher-priced models.

Harley faces those same competitors in the U.S., too, along with a resurgent U.S-based competitor in Indian Motorcycles, owned by Polaris Industries Inc.

Harley still accounts for about half of sales of U.S. motorcycles built for riding on highways. That share has held steady in recent years even as its own sales stalled because the market for new motorcycles overall has shrunk since the 2008-2009 recession.

And some riders of used Harley's do eventually buy a new one. Sarah Pellatiro of New Kensington, Pa., bought a new Harley Sportster this year for just under $12,000 after riding a used version for three years. Ms. Pellatiro said she chose the middleweight bike over a larger, more expensive model because she was confident she could handle it in traffic after gaining experience with a used Sportster.

“I got that bike right when I was still learning how to ride,” said the 32-year-old photographer and silversmith. “I don’t think I’ll ever ride any brand other than Harley from here on.”

SOURCE: Wall Street Journal

American Dresser: A new film about the passion of two wheels

Pacific Northwest, USA (September 28, 2018) BSB — Carmine Cangialosi didn't set out to make a motorcycle film when he began writing the script for American Dresser. The actor-turned-screenwriter/director and lifelong motorcyclist said he set out to make a, "modern western," and chose to incorporate his familiarity with the motorcycling lifestyle into the project.

Poster of the new film called American Dresser staring Tom Berenger

"You can't write a western movie about the horses," he said.

The film's story line focuses on lead actor Tom Berenger's character, John Moore, as he embarks on a cross-country motorcycle trip to cope with the recent death of his wife, as well as confront a decades-old family secret.

Official Movie Trailer of American Dresser

Cangialosi hopes his first film project featuring motorcycles will resonate with riders and non-riders, alike. His father is a veteran and a motorcycle rider, much like the main character in the film. While he rode dirt bikes in his youth, the younger Cangialosi's acting schedule did not allow him to have much time to ride.

He chose to diversify his film career by branching into writing and directing. After his first film project was released in 2002, Cangialosi began writing the script for American Dresser. It was his first time featuring motorcycles in a film.

He used motorcycles to attract motorcycling's "built-in audience." He said motorcycles spearhead a multi-billion dollar industry, and he hopes using them in the film will help make it more attractive to audiences.

"Motorcycles are very iconic," Cangialosi said. "People either ride or want to ride."

While he has a lot of respect for other motorcycle-themed moviesAmerican Dresser, Cangialosi said he drew more influence from western films like Dances with Wolves, The Unforgiven and There Will Be Blood. He was also grateful for the major contributions that actors Berenger and Keith David made to the film.

Some of the stars talking about the making of American Dresser

"I was beyond fortunate to get them onboard this project." Cangialosi said.

One of the challenges he faced was teaching the film's two main stars how to ride.

"Tom [Berenger]'s wife rides, and Tom rode dirt bikes as a kid," Cangialosi said. He said David did not have previous riding experience. David's busy schedule forced Cangialosi to give David a crash course on how to ride a motorcycle shortly before filming began.

The Harley-Davidson motorcycle ridden in the film by Berenger's character is owned by Cangialosi's father. Cangialosi also wanted to get an Indian motorcycle into the film, so that is what David's character, Charlie Wylde, rides. "I did not want to make a brand movie," he said. "I wanted to make the film as timeless as possible."

Cangialosi said he doesn't have plans to make another film featuring motorcycles, but would not rule out using them again. "Making this film was the hardest thing I have ever done," he said. "Whatever I do next, I will let [the project] come together organically …. Like a comedian, I don't want to become too topical."

American Dresser was released on video on demand Sept. 21 and received a limited theatrical release Sept. 23. More information about the film can be found on its website at: AmericanDresser.com 

SOURCE: Biker News Online

Future of Republic of Texas Biker Rally in question

Austin, Texas (September 24, 2018) BSB — The future of the largest motorcycle rally in Texas is up in the air after some of the terms under discussion for a new contract with the Travis County Exposition Center, where the event is typically held each year, have organizers unhappy. A major sticking point, Republic of Texas Biker Rally President Jerry Bragg said, is that it’s possible the event won’t have access to the Expo Center’s banquet hall next summer.

Travis County commissioners on Tuesday postponed a vote until next week on whether to lease the banquet hall for the Travis Central Appraisal District to host meetings instead. The $150,420 lease would be from May to August, making the banquet hall unavailable for the Republic of Texas Biker Rally, which is scheduled for June. The lease also would overlap with the Heat Wave car show, which would be in July.

Thousands of bikers enjoy the ROT Biker Rally every year.

Bragg said that not having access to the banquet hall could be a deal-breaker. “If you had an aerial view of our event, you’d see there’s absolutely no room,” Bragg said. “We can’t eliminate any of the buildings and still put on a reasonable event. ... We’re squeezed for space as it is.” County Judge Sarah Eckhardt made it clear Tuesday at the Commissioners Court meeting that she does not think the biker rally and Heat Wave deserve preferential treatment.

"I don't think it's the business of county government to make sure that things like the ROT rally's pole dancing contest and the Heat Wave's bikini contest get a better deal than anyone else who's going to rent the Exposition Center," she said. Travis County spokesman Hector Nieto said he could not talk about the status of the county’s negotiations with Heat Wave, but he said negotiations with the biker rally have stalled because organizers no longer want to work with the county staff and are now only communicating with county commissioners.

“In order for us to negotiate a contract with them, we need them at the table. ... We still have options available to them,” Nieto said.

A staff-written summary of the commissioners’ agenda item says that they have not heard from the rally organizers since they got the proposed license agreement, because “ROT did not like the rates.” County officials proposed that the rally pay about $50,000 to rent the Expo Center next year. The contract previously had been just under $30,000 a year.

“The proposal they sent was ridiculous,” Bragg said, adding that Expo Center officials are now charging them as much for setup days as they do for event days, which leads to a substantial price increase. However, Bragg said he would dedicate the rest of the week to pursuing a solution. Heat Wave owner David MacDonald also said he would "find a way to make it work," though he said Monday that Heat Wave organizers have considered moving the show to Circuit of the Americas as an alternative to the Expo Center.

Randle Jackson, the Expo Center's division manager, said the venue did offer the biker rally a reduced price because it is a longtime customer that has held its event there for multiple years. "If we charged the ROT rally as we would a normal event, it would be well over $100,000," Jackson said.

Rates have gone up to reflect the market, Nieto said. “Like everything else in Travis County, market value is going up, and we have a responsibility to the taxpayers to operate the facility in the black,” Nieto said. The Austin Convention and Visitors Bureau estimated in 2011 that the annual biker rally brings an estimated $36 million into the Austin economy.

"There are a lot of people that enjoy the ROT, and I know the city enjoys them," Commissioner Gerald Daugherty said Tuesday. "We've benefited from them because it's one of the largest events we get revenue out of." Bragg said the rally organizers don't have time to find another location to host their event next year.

SOURCE: My Statesman