BURLINGAME — Downtown merchants are asking art and jazz lovers to drink up this weekend, saying it could save a popular holiday-themed parade.

The Downtown Burlingame Business Association will be selling beer, wine, margaritas and champagne at three booths during the 17th annual Burlingame Art & Jazz Festival this Saturday and Sunday.

Proceeds will go toward the group's early December bash, formerly called the "Holiday Open House," that draws upward of 20,000 attendees for a parade, tree lighting, carnival and other holiday-themed events. The city funds and operates a separate tree-lighting event.

The holiday event will likely be canceled this year if merchants cannot raise the $30,000 to $35,000 it costs to operate the shindig, said business association President Kevin Osborne, owner of Kevin Osborne Insurance Agency.

The businesses have historically funded the holiday event through sponsorships and proceeds raised during the festival. In fact, a former group of Burlingame Avenue area businesses originally launched the festival for the purpose of funding the holiday event, although the chamber of commerce now operates it.

But downtown businesses already had to skimp on the holiday event last year, spending half as much as they usually do, after a lack of sponsorships, and are expecting even less aid this year as the recession wears on.

"So we're trying to encourage the community to come down and buy a glass

of wine or beer or champagne," said Osborne, who said he would go out with "hat in hand" if they fail to raise enough cash during the art and jazz festival.

This year the chamber is requiring the merchants to contribute $5,000 toward the financially imperiled Burlingame Trolley in exchange for the three booths. As a result, the first $5,000 of alcoholic beverages sold at the event will go toward their commitment to the chamber, said business association Vice President Lorraine Haddock, an owner of RMC Real Estate Loans.

"I think the public really enjoys that whole (holiday) event, it's just really hard to fund it when we have an obligation to fill initially," Haddock said of the trolley money. "It's a big chunk."

Fortunately for the merchants, there will be plenty of reasons for Peninsula families to come out to this year's art and jazz festival. The event will feature 125 artists, plus musicians, food, a "home garden and green" area, and a place for children to play.

Chamber CEO Georgette Naylor said the hope is that visitors will come visit the stores around "The Avenue," and return later for more shopping.

"I think there's a lot to enjoy," Naylor said. "Especially nowadays when everybody's into this staycation mode (stay-near-home vacation), it's something great to do that is in your backyard."

Osborne said businesses have mixed feelings on the festival, as some shop owners complain their regular customers stay away during the weekend because it is too crowded.

Staff writer Mike Rosenberg covers San Mateo, Burlingame, Belmont and transportation issues. Reach him at 650-348-4324.