Historically, whenever Colonial Williamsburg has invested time and money into their true mission of studying and educating the public about history, they have made a profit, and when they have spent money outside of that mission, they have done poorly.
A good example of this are the taverns. The profitability of the taverns over time correlates directly with their attempt to maintain historical accuracy. People come to Colonial Williamsburg to experience history, and everything they experience needs to help them do that. They will pay money for a historical experience. They will not pay money to see something they could see at home.
The Foundation is now asking the city if it can create a large fairground. I see no reason for the city not to allow this because it's not the business of the city to protect CW from its own foolhardiness. But I suggest management actually think about why they want this and what they believe it will do to help them advance their mission.
Money would be far better spent fixing the disastrous and ruined presentation of “Story of a Patriot,” or on some other thing that actually benefits the Colonial Williamsburg mission.