While some know “Day of the Dead” as an American horror flick, it is also the English translation of “Día de los Muertos,” the festival that honors souls of the departed.
Compared to a normal Nov. 1-2 celebration in Mexico, Scottsdale often gets a jump on things – this year’s “Dia de los Muertos” events took place from Oct. 23-26. Festival producers described it as “an ancient ritual that both remembers the dead and mocks death.”
Two days before face painting tricks and sugar skull treats at the Civic Center, a fangs-out debate seemed to rise from the grave over too-sweet funding and not enough local make-up.
At stake: hundreds of thousands of “bed tax” dollars.
With tourists pouring money into Scottsdale, the city aims to keep a perpetual-motion engine revving: 1) pump a portion of hotel tax dollars into events; 2) more people come to Scottsdale, generating more tourism dollars; 3) repeat 1.
All fine and good, one group said, but don’t forget us locals. You’re bankrolling “one off” out-of-state producers, the Old Towners howled, so how about taking care of the businesses here 365 days per year?
The Scottsdale Gallery Association is behind the popular Thursday night “Art Walk” stroll through Old Town art venues.
Nine years ago, gallery leaders came up with the idea of an Art Walk “Gold Palette” series of events to spice things up in the tourist-friendly November-through-April period.
According to a pitch to the Tourism Development Commission, which doles out visitor-related funds to various events, the Gold Palette series “continues to draw tourists and residents and provide cultural and educational opportunities through art demonstrations and exhibitions.”
The Scottsdale Gallery Association asked the financial gatekeepers for $125,000 to help market the series.
Too much, the commission decided.
Instead, on Sept. 16, the Tourism Development Commission recommended City Council give the gallery folks $75,000 – 40% less than the request.
Normally, Council rubber stamps the TDC recommendations as part of “consent agenda” items, which are voted on in a clump without individual presentations or discussions.
Not so, this time around.
Bob Pejman, a longtime gallery owner and political activist, rallied his troops before the Oct. 21 council meeting.
After the Gold Palette item was pulled off the consent agenda to allow discussion and analysis, Pejman took the microphone.
“I found out they have no problem giving $150,000 to the Day of the Dead producer,” Pejman said of the tourism commission.
The funding he referred to was approved by Council Sept. 30.
Held in and around the Civic Center, “The Day of the Dead (Día de Los Muertos)” is a partnership between LORE Media and Arts and the City of Scottsdale.
According to the group’s Facebook page, “LORE Media and Arts is a Los Angeles-based cultural events specialty production company.” A city contract states LORE – founded by Robert Ramirez – also has an office near Old Town Scottsdale.
Pejman said he was distressed that “the iconic brand” of the Old Town gallery owners was treated as second fiddle, compared to a Los Angeles-based producer.
“SGA wants to be on even footing with other out-of-state producers who come here,” Pejman insisted.
Jinger Richardson, Legacy Gallery owner and president of the Scottsdale Gallery Association, told Council the arts group’s members spend $1.5 million in “national advertising to bring visitors to Scottsdale.”
Richardson, Pejman and others got what they wanted: Council voted unanimously to bump up the TDC recommendation back to the $125,000 the gallery group requested.
Rachel Smetana, the city’s tourism and events director, and the Tourism Development Commission can argue they support many local groups.
Indeed, earlier in October, Council followed a TDC recommendation to write a check for $178,750 to the Parada del Sol producers; the 72nd annual parade through Old Town is scheduled for Jan. 31.
$$$’s for zzz’s
In the fiscal year that ended June 30, the city received just over $35 million in bed tax revenue.
According to an Oct. 21 presentation at the Tourism Development Commission, in the first three months of the 2025-26 year, Scottsdale collected just under $4.5 million in bed tax – down slightly from just over $5 million for that period last year and just under $5 million in the same time period the year before.
The biggest bounty is still to come, in the months November through March; in March 2023, the city’s cut of bed tax collected was nearly $6.6 million, the high mark for the last three years.
Half of the bed tax collected is pegged for “destination marketing.”
A quarter of the remaining bed tax and other tourism revenue goes to the nebulous category “other commitments.”
The leader here by far is Canal Convergence, which has its extravagant laser shows lit up to the tune of $750,000 per year.
This year’s Canal Convergence is scheduled for Nov. 6-17 at the Scottsdale Waterfront.
Western Spirit: Scottsdale’s Museum of the West is close behind in this category, receiving $650,000 annually. (Council also approved $600,000 for the museum’s “supplemental management service fees” this year).
Receiving just over $200,000 per year, Tour de Scottsdale trails in a distant third of “other commitments.”
Down the handout line, 9% of bed tax is for “event retention and development.
One-year funding agreements jumped by 80% last year, from $272,500 in 2023-24 to $492,814 in 2024-25.
Under the “Arts and Culture” subcategory of the 9% split, the 2025-26 event total was listed as $462,250 – but that was with the Art Walk Gold Palette at $75,000.
This category includes the aforementioned $150,000 for Dio de los Muertos, as well as a pending $66,250 for the third Dreamy Draw music festival.
The TDC recommendation for Dreamy Draw support is to be presented to Council Monday, Nov. 3.
In June, the TDC made a “recommendation to City Council for bed tax fund expenditure up to $225,000 to be paid to the Arizona Major Events Host Committee to support the NCAA 2026 Women’s Final Four Tournament.”
On Aug. 19, according to Smetna’s presentation to the TDC, “On behalf of LORE Media and Arts and the city of Scottsdale, my department is bringing forward a funding request for financial support of Scottsdale’s Dia de Los Muertos Festival.”
Smetna asked for, and received, $150,000 for the festival.
On his portion of the application, Ramirez estimated 455 as the “number of room nights in Scottsdale bed tax paying hotels.”
He said his budget of $550,000 includes $60,000 for marketing.
According to the “post-event reporting” Ramirez filed in May, he spent $626,512 on the 2024 Dia de Los Muertos Festival, with $148,000 on marketing.
According to the Day of the Dead application, “For our ninth year, in addition to our Theatre Ballet Show at the Virginia Piper Theatre, we have strategically focused on expanding our festivities by enhancing the Art Installation Experience with more large-scale public art over four days at the Scottsdale Civic Center …
“This extended layout is designed and marketed to establish Scottsdale Día de Los Muertos as a signature destination event that encourages longer hotel and resort stays.”
On the contract dated Sept. 30, Ramirez provided LORE’s address as 3260 N Hayden Rd. Suite 210.
That office was vacant last week.
Ramirez told the Progress LORE’s new office is in North Scottsdale.
“We’re not out of state,” Ramirez said. “I’m here in the Valley four months a year.
“This idea we are out-of-state fly by night – it’s designed to mislead people.”
Pejman said he stands by his words, pointing the group’s Facebook page: “LORE Media and Arts is a Los Angeles-based cultural events production company.”
Ramirez said LORE has a warehouse in the Valley and produces the Phoenix Sun’s “Day of the Dead” halftime show.
Ramirez said he is proud of attracting people to Scottsdale:
“North of 11,000 made it to the (2025) festival – it was max, full …We are very proud that we have enriched the beauty of Scottsdale,” Ramirez said.
“We’re happy we were able to grow the event over nine years.”
Email howl
A week before Halloween, Pejman celebrated the Art Walk/Gold Palette funding victory in an email blast to dozens.
He said he was appreciative of Councilwoman Jan Dubauskas, who “pulled the item from the consent agenda so that the full funding could be re-evaluated.”
Several who responded sang variations of a similar tune.
“It’s sad the Gallery Association had their request denied by the Tourism Commission, while they gladly forked over $150,000 for an out-of-state event,” Emily Austin responded.
“The city should support local businesses in Old Town who are a tremendous tourism draw.”
Tom Kube added, “It is important that the city support the merchants and galleries in Old Town Scottsdale. City based businesses should be supported and this is a great example …Kudos to the SGA for their courage to bring this directly to the council.”
Christi Manuelito, of Bonner David Galleries, chimed in to say “I am grateful for the additional funding for the SGA, because we can really use it.”
She thanked Mayor Lisa Borowsky “and council members who understand the worth the galleries do have in the Arts District.”
Mark Pabst of the Signature Gallery noted his rollercoaster ride, after giving the presentation to the TDC and being rejected.
“It’s really unfortunate that this had to end up going all the way to the City Council to approve but I’m happy it’s finally done,” he said.
He emphasized drawing the locals to Old Town: “It is so important for the downtown to get people from North Scottsdale to come down here so a significant portion of the money being used should go towards that purpose.”
Local business owner French Thompson’s take:
“It is unfortunate that the SGA had to request this of the City Council. This should have been approved by the TDC and supported by city staff.”
And, he added, “this is not just about the art galleries as all of the businesses in the area benefit from the events.”