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Sausalito s Famed Labor Day Art Festival Getting Canceled Over Homeless Encampment An impasse over a homeless encampment in a downtown Sausalito park has led organizers of the city s annual art festival over Labor Day Weekend to say the festival is being canceled for the second year in a row. COVID-19 restrictions aren t to blame for the fact that the Sausalito Art Festival isn t happening this year. But between a disagreement among residents and city leaders over the use of one waterfront park for the festival, and a delay in a decision by a federal judge over the possible relocation of a homeless encampment from one park to another, festival organizers say they have run out of time to make the event happen in September. ....