Reg 2019-01-07 Item 7C - Funding - $30,000 Lodging Tax Funding for 2019 Americas Rugby Championship Promotion

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: December 28, 2018 SUBJECT: Lodging Tax Request, City of Tukwila International Rugby Promotion ISSUE The City of Tukwila (the "City") is requesting $30,000 in lodging tax funds to promote the City and bring in visitors as part of an international rugby campaign. BACKGROUND In March of 2019 the United States Rugby team will be playing two international matches at Starfire Sports in Tukwila. The first match on March 2 is against Uruguay and on March 8 the United States will play Canada'. Given Washington State's proximity to Canada, it is expected that a large number of Canadian fans will travel for the game. Staff is requesting lodging tax funds in order to support sales and marketing efforts directed at Canadian fans. The goal will be to drive business to area hotels, restaurants, and retailers. The City will partner with the Seattle Seawolves, Westfield Southcenter, Seattle Southside Regional Tourism Authority, and others as part of this promotion. About Lodging Tax Funds The City collects a 1% lodging tax on certain qualifying overnight stays in paid accommodations (hotel/motels/Airbnb) in the City. State law limits the use of these funds to tourism promotion'. The City's Lodging Tax Advisory Committee (LTAC) reviews all requests, even by the City, for use of lodging tax funds. LTAC then forwards the applications to the City Council for its review and consideration. If LTAC does not recommend an application be funded, that application is not forwarded to the City Council. The City Council may approve or deny any of the applications sent to it by the LTAC. The City Council may also approve an application and increase or decrease the dollar amount awarded'. 1 Note, this game was originally scheduled to be played in British Columbia but had to be moved due to issues with the stadium. The Canadian team will actually be the home game on March 8. 2 RCW 67.280 (6) defines "tourism promotion" as "...activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists." 3 See Informal Opinion issued by the Washington State Attorney General's Office on August 17, 2016. 71