CDN 2017-06-12 Item 2 - LTAC - Contracts for Lodging Tax Funds Recipients

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TO: FROW CC: DATE: SUBJECT: -V . .. C* I-Okwila I!Y- Allao Ekberg, Mayor Community Development and Neighborhoods Brandon J. Miles, Business Relations Manager Mayor Ekberg June 6, 2'017 Lodging Tax Award Contracts ISSUE Authorizing the Mayor to execute agreements with Seattle Southside Regional Tourisr-ri Authority (SSRTA), Museum of Flight, and Starfire Sports for award of lodging tax fund BACKGROUND On June 5, 2017, the Tukwila City Council approved lodging tax applications for the following third party entities: I�Wvwflwf MEMO . I • WA61*1111i SSRTA is a key partner in the City's efforts to draw overnight guests to the City. SSRTA is the City's lead in marketing the region to out of area guests. A I The Museum of Flight is one of the premier aviation museums in the United States. The City's lodging tax funds, will be used to sponsor several events at the Museum and to support general marketing efforts. Starfire Sports is the epicenter of soccer in the Pacific Northwest. It is estimated that 1.3 million people will visit Starfire this year to play soccer, view soccer, and to participate in other family friendly activities. The City's lodging tax funds wilil be used to support marketing activities by Starfire and to assist the City's in its branding and marketing efforts. DISCUSSION The draft Gontracts implement the scope of works of the lodging tax applications approved by the City Council at its June 5, 2017 Regular Council meeting. All third party recipients of lodging tax funds are required to enter into municipal service contracts with the City, Besides outlining the scope of work to be performed, the contracts also provide indemnification language, require the contractors to maintain insurance, and outline require deliverables to be provided to the City, FINANCIAL IMPACT The total value of the three contracts is $564,500 ($362,000 in 2017 and $202,500 in 2018,), These funds are included in 2017/18 City Budget out of the 101 fund, which is the Ci�ty's Lodging Tax fund, Lodging tax funds are collected at area hotels, motels, and Airbnibs, Under e used for tourism -grornotion activities. No general fund dollars will be used for these three contracts.