Are you talking about Art on the Green?
Art on the Green | Coeur d'Alene, Idaho | Summer Arts Festival
The website says dogs are not allowed. It really is just to busy and crowded to bring even small dogs. They would be welcome for a hike on Tubbs Hill or a walk along the Centennial Trail.
The outlet mall in Post Falls is practically dead. There are a few stores still open but not much happening there. I have no idea about pet friendly accomodations.
Your ethnicity should not be a problem at all. As someone said in this forum in another thread, North Idaho is not very racially diverse but we are on the whole very accepting.
I hope you have a good time!