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HomeMy WebLinkAboutREG 2017-07-17 Item 4E - Funding - $25,000 Lodging Tax Funding for Family Fun Night at S2 GameCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared Gy Mayor's review Council review 07/17/17 BJM DL- ITEM INFORMATION ITEM No. 4.E. 41 STAFF SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 07/17/17 AGENDA ITEM TITLE Approval of Lodging Tax Application for "Family Fun Night at S2, presented City of Tukwila." by the CATEGORY ❑ Discussion Mtg Date / / Motion Date 7/17/17 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date I Other Mtg Mtg Date SPONSOR ❑Council HR ❑DCD ❑Finance ❑Fire ❑TS ❑P&R ❑Police ❑PW ❑Court ►1 Mayor SPONSOR'S The City's LTAC has forward to the City Council a funding request by the City of Tukwila for SUMMARY $25,000 to sponsor and market "Family Fun Night" at the September 9th S2 game at Starfire Sports. LTAC recommends approval of the request. The funding for the request will come from the City's lodging tax funds, which are limited to use for tourism promotion activities only. REVIEWED BY ❑ C.O.W. Mtg. ❑ Trans &Infrastructure DATE: 7/10/17 L CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: HOUGARDY ❑ Arts Comm. RECOMMENDATIONS: SPONSOR /ADMIN. COMMTI'tEE Mayor's Office, Economic Development Unanimous Approval; Forward to Consent Agenda. COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $25,000 $100,000 $0.00 Fund Source: 101 FUND (LODGING TAX) Comments: State Law limts the use of lodging tax funds to toursim promotion activities. MTG. DATE RECORD OF COUNCIL ACTION 7/17/17 MTG. DATE ATTACHMENTS 7/17/17 Informational Memorandum dated 6/30/17 Lodging Tax Application. Minutes from the Community Development and Neighborhoods meeting of 7/10/17 41 42 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: June 30, 2017 SUBJECT: City of Tukwila Lodging Tax Application Family Night at S2 ISSUE Review of Lodging Tax application forward to the City Council by the City's Lodging Tax Advisory Committee (LTAC) for "Family Night at S2." BACKGROUND The City's LTAC has forward to the City Council a funding request by the City of Tukwila for $25,000' to sponsor and market "Family Fun Night" at the September 9th S2 game at Starfire Sports. LTAC recommends approval of the request. Since 2015 the Seattle Sounders FC second team, S2 has played all its home games at the Starfire Sports in Tukwila. S2 plays in the United Soccer League (USL) and a is a developmental team for young soccer players hoping to play professional soccer. On Saturday, September 9th, the City and Sounders FC are proposing to hold a game entitled "family night at S2." The goal of the family night is to bring families, with young children to the game, to experience soccer and to engage in a variety of family friendly activities before, during, and after the game. The City of Tukwila will be the presenting sponsor for the game and the current working title for the game is, "Family Night at S2, presented by the City of Tukwila." The following are staff's goal with sponsoring the game: 1. Attendance. Increase the attendance at the game. Higher attendance means more revenue for area businesses. The City also wants to add a stay and play component to the game. Encourage people to make a night of it and stay in a Tukwila hotel. 2. Branding. Sponsorship of the branding is consistent with the family focused brand the City has been discussing. The branding would not just be for those individuals who attend the game, but also for those that view the advertising campaign for the game. 3. Return Visits. Attendees of the event will also be provided a grab bag with goodies and discounts at Tukwila businesses. The goal is to bring these soccer fans . back to the City on multiple occasions, including a holiday season "stay and shop" offer. 4. Partner Development. The game provides an opportunity for the City and businesses in the City, to build relationships with Seattle Sounders FC. ' The funds will come from the City's lodging tax funds, which under Washington State law, are limited to only being used for tourism promotion activities. 43 INFORMATIONAL MEMO Page 2 The City and Sounders FC are currently contemplating the following activities at the game: • Bouncy House • Face painting • Giant Jenga • Soccer Hexagon • Fire and Police equipment on site • Grab bag • Music The activities listed above will likely grow as we engage businesses and other partners during the planning stage. The City and Seattle Sounders will also work to market the game to families and soccer fans in the area. The City will run ads in Seattle area publications targeted to families. Sounder FC will use their own media platforms, including radio, to promote the game. To following are the outcomes the City will use to evaluate the sponsorship: 1. Total attendees at the match. The goal will be to have a significant higher attendance than the average attendance for S2 games this season. 2. Coupon redemption. Business that provide coupons and discounts will be asked to track redemption to we can estimate utilization. 3. Digital Metrics. Measure the success of our digital ads, including click through traffic. 4. Social Media. Track likes, shares, views, and comments of social media posts, both by the City and Sounders FC. DISCUSSION The game sponsorship provides the City with a great opportunity to help position the City in the region as a great place for families to visit. Seattle Sounders FC have a strong, well known brand that the City can piggyback on to promote the City. The game will bring people to the City to visit eat at restaurants, shop at stores, and experience some great family friendly entertainment. FINANCIAL IMPACT. Not to exceed $25,000, with the funds coming from lodging tax funds, which under State Law, can only be used for tourism promotion. These funds are budgeted in the 2017 expenditures for the 101 fund (lodging tax). RECOMMENDATION Forward to the July 17, 2017 consent agenda. ATTACHMENTS • City of Tukwila Lodging Tax Application for "Family Night at S2." 44 Z.ICouncil Agenda ItemsWayors Ofrce\Family Fun NightiInfoMemo. 2017.06.30.doc Application to the City of Tukwila for Use of 2017 Lodging Tax Funds Event or Activity Name (if applicable): City of Tukwila, "Family Night at 52" Amount of Lodging Tax Requested: $25,000 (not to exceed) Applicant Organization: City of Tukwila, Economic Development Federal Tax ID Number: 91- 6001519 Mailing Address: 6200 Southcenter Blvd Tukwila, WA 98188 Primary Contact Name: Brandon J. Miles Primary Contact Phone: (206) 431 -3684 Primary Contact Email Address: Brandon.Miles@Tukwilawa.gov Check all the service categories that apply to this application: ✓ Tourism promotion or marketing. ✓ Operation of a special event or festival designed to attract tourists. Operation of a tourism - related facility owned or operated by a non - profit organization. Operation and /or capital costs of a tourism - related facility owned by a municipality or a public facilities district. Check which one of the following applies to your agency: Non - Profit (501(c)(3) or 501 (c)(6)) (Note: Attach a copy of your current non - profit corporate registration from the Washington Secretary of State Office) ✓ Municipality (City, Town, or County of Washington State) I am an authorized agent of the organization /agency applying for funding. I understand that: • I am proposing a tourism - related service for 2017. If awarded, my organization intends to enter into a services contract with the City; provide liability insurance for the duration of the contract naming the City as additional insured and in an amount determined by the City; and file for a permit for use of City property, if applicable. • My agency will be required to submit a report documenting economic impact results in a format determined by the City. /s/ Signature: Date: June 16, 2017 Brandon J. Miles, Business Relations Manager 45 1) Describe your tourism - related activity or event. On September 9th, the Seattle Sounders 2nd team S2, will be playing a home game against Reno 1868 FC. The City is proposing to sponsor the game under the current working title, "Family Night at S2, presented by the City of Tukwila." This "Family Night" will be more than just a soccer game, but will be an entire evening of family entertainment. Currently, the City and the Seattle Sounders FC are considering the following activities before and during the game: 1. Bouncy House; 2. Face Painting; 3. Giant Jenga; 4. Tukwila Fire Truck and Equipment, with personal. S. City Police Equipment, with personal. 6. Soccer hexagon, presented by CHI Franciscan 7. Grab bag, with goodies. 8. Music The following are the goals of the sponsorship of the game: 1. Attendance. Increase the attendance at the game. Higher attendance means more revenue for area businesses. The City also wants to add a stay and play component to the game. Encourage people to make a night of it and stay in a Tukwila hotel. 2. Branding. Sponsorship of the branding is consistent with the family focused brand we have been discussing. The branding would not just be for those individuals who attend the game, but also for those that view the advertising campaign for the game. 3. Return Visits. Attendees of the event will also be provided a grab bag with goodies and discounts at Tukwila businesses. The goal is to bring these soccer fans back to the City on multiple occasions. • 4. Partner Development. The game provides an opportunity for the City and businesses in the City, to build relationships with Seattle Sounders FC. 2) If an event, list the event name, date(s), and projected overall attendance. Right now the average attendance for S2 games, is just under 1,000 fans. With this event, we hope to bring in an additional 1,000 fans, so the total estimated attendance would be around 2,000. Beside attendance, we also hope to get repeat visitors with people who redeem the vouchers at Tukwila businesses. Assuming a 10% redemption rate, we would see 200 of the fans returning to the City. 3) Is your event /activity /facility focusing on attracting overnight tourists, day tourists, or both? 2 46 S2 games are typically attended by fans within a one -hour drive of the City. As part of this game, we will establish a host hotel and promote staying and making a weekend out of it. 4) Describe why visitors will travel to Tukwila to attend your event /activity /facility. As discussed above, just under 1,000 fans have been attending S2 games this year. During its first year of play, S2 was averaging around 2,000 fans. Fan attendance has dropped over the last few years due to a variety of factors, such as the scheduling of games and conflict with MLS games on the same weekend. Adding a family focused game experience will help to drive up attendance and is consistent with what minor league baseball teams to drive attendance. We know S2 can draw fans and the proposed family friendly event will help to bring more fans to the games by providing a unique experience to soccer fans and non - soccer fans. Approximately 2 million people live within a 30- minute drive of the City of Tukwila. Starfire's convenient location will provide a great family getaway on a weekend. The game date is also deliberate to maximize participation. This will be the first week of school for most school districts in the area, including Seattle. Most families will be home during this week and the games provides an opportunity for' one last evening of summer fun. 5) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and /or internationally). The geographic target for the event are people within a one -hour drive of the Starfire Sports Campus. However, the reach of the advertising campaign will be regional. • Seattle Sounders FC will promote the game on their digital platforms. Seattle Sounders FC are geographically dispersed around the Puget Sound and Pacific NW. • The City will also do its own advertising campaign in local, family friendly publications. The reach for this advertising will be within a one -hour drive. 6) Describe the prior success of your event /activity /facility in attracting tourists. Starfire Sports, Seattle Sounders FC, and the City each have a history of organizing a putting on events catered to children and families. Last year the City of Tukwila and Seattle Sounders collaborated on a sendoff event for the first team heading to Toronto to win the MLS Cup. The event was organized on short notice, but received great media coverage, social media coverage and positive reactions from fans. 7) If this your first time holding the event /activity /facility provide background on why you think it will be successful. 3 47 This is the third year of S2 matches being played at Starfire Sports. Starfire and Seattle Sounders FC have the operations of the game well organized. This event will build off the standard S2 game and include more family friendly elements. It will be successful because the game will focus on a segmentation of the soccer community, families with children by offering a value and convenient activity. For a small nominal charge, a family can get an evening of family activities. Families will also be provided coupons for reasons to come back to Tukwila, such as a discount to iFly, Family Fun Center and /or other activities. A hotel voucher could also be tied into the grab bag to encourage people to stay and shop during the holiday season. 8) Describe the media strategy you employ to promote your event /activity /facility to attract overnight and /or day tourists? Please list any digital or print media (newsletters, e- blasts, social media, etc.) your agency uses or intends to use to promote your event /activity /facility. There will be a two prong media strategy to promote the game: Seattle Sounders The Seattle Sounders will promote the game, and the family friendly aspects of the game, through its digital media, including Facebook and an electronic newsletter. Additionally, the game will also be promoted in PA announcements at S2 games prior to the family friendly night. The Sounders will also promote the game in radio broadcasts of MIS games on 97.3 KIRO. The Sounder advertising will focus on soccer enthusiasts in the region. All advertising will note that the family friendly game is "...presented by the City of Tukwila." This is the current plan by Sounders FC and maybe refined as we move ahead. City of Tukwila The City will run a separate advertising campaign in family friendly medias, both print and digital in the region. These medias could include Parentmap, Red Tri, Seattle Child and /or South Sound Magazine. Additionally, the City will work to get earned media for the event and take advantage of free directories for things to do in the region. The City's campaign is broader than just soccer fans, and will focus on families in general. The goal is to have over 400,000 media impressions. Besides the family friendly publication, the City will also ask our partners to promote the game through cross promotion. A minor social media campaign will also be used to help promote the game, but more importantly to promote the City while attendees are at the game. 9) Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. The overall objective with this game sponsorship is to help position Tukwila as a family friendly destination. Besides the Seattle Sounders, other individual businesses may not be promoted in the ads. 4 48 Some ads might feature sponsors, business that contribute vouchers for giveaways. Tukwila businesses will be promoted in the grab bags handed out at the game. These businesses could include iFly, Family Fun Center, dining establishments, Acme Bowl, etc. The City is also hoping to establish a stay and play as part of the campaign. The City will work with a hotel to be the event hotel for families that might want to stay the night and not drive home. Hopefully people who have never been to a soccer game before will attend and make attending future soccer games in the City a regular occurrence. 10) Is the City able to use your digital and print media for collaborative marketing? N /A. This is a City event. 11) Describe how you will use the name, "Tukwila" in publications, promotions, and for your event? The current working title of the game is "Family Night, presented by the City of Tukwila." This is a Tukwila event and Tukwila's name will be used prominently in the advertising campaign. 12) Measurements and Metrics (Note: You will be required to report these metrics as part of the close out of the agreement between your organization and the City.) As a direct result of your proposed tourism - related service, provide an estimate of: a. Overall attendance at your proposed event /activity /facility. 2,000 direct attendees at the game. Another 200 repeat visitors to redeem vouchers, total, 2,200. b. Number of people who will travel fewer than 50 miles for your event /activity. 2,200 c. Number of people who will travel more than 50 miles for your event /activity. < 1% 5 49 d. Of the people who travel more than 50 miles, the number of people who will travel from another country or state. None. e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. 50 f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel /motel /bed - breakfast) in Tukwila. 50 g. Number of paid lodging room nights resulting from your proposed event/ activity /facility (for example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights) 20 The room nights include direct only an do not include any room nights that might generated with discounts to come back during the holiday season. 13) What methodologies did you use to calculate the estimates and what methodologies will you use to track outcomes, such as total participants, estimated visitor spending, etc.? These are best guess estimates. S2 is currently averaging under 1,000 per game. We are assuming that an additional 1,000 people will come to the Family Fun night game. Most of the attendees will be within a one -hour drive of the City. We are assuming a small number will choose to stay the night and not drive home. We will track fan attendance at the game and voucher redemption for the businesses in the grab bag to track success of the event. Besides the metrics listed above, the following will also be used to track the outcomes of the sponsorship: 1. Total attendees at the match. Our goal is to have a significant higher attendance than the average attendance for S2 games this season. 2. Coupon redemption. We will ask businesses that provide goodies and coupons for the event to track redemption so we can estimate the total redemption rate. 3. Digital Metrics. We will track the click through rate of our digital ads. 6 50 4. Social Media. We will also track likes, shares, views, and comments of social media posts. 14) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? No. 15) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in what amount? No. 16) What is the overall budget for your event /activity /facility? What percent of the budget are you requesting from the City of Tukwila? The budget below only includes the additional costs associated with "Family Night at S2." It should be noted that the Seattle Sounders have costs associated with putting on the S2 matches, those costs are not reflected in the budget below. Budget Item Amount Notes Seattle Sounders advertising and cost reimbursement for additional activities at the game. $10,000 The Sounders will assume the costs of the bouncy house, face painting, Jenga, and soccer hexagon. Ad designs (Digital and Print) $5,000 Ad (digital and print) placements. $5,000 Focus is on family friendly publications. Operations $4,000 Possible staff time for fire, parks, and police personal at the game. Subtotal: $24,000 Contingency Funds: $1,000 Total: $25,000 Note: Costs could be moved between the various categories. The City is only paying the actual costs. Any funds not used for this event will remain in the lodging tax fund for use by other activities in the future. 7 51 17) What will you cut from your proposal or do differently if full funding for your request is not available or recommended? If no funds were provided the game would still take place, but the additional activities would not take place. If reduced funds were provided the City would likely reduce or eliminate its own ad buy. Seattle Sounders FC has a very strong brand that the City can essentially piggyback on to build awareness about the City, bring people to the City, and to create a positive brand experience about the City. Staff has heard a desire from many in the community for the City to do more with the Sounders. This provides sponsorship provides an opportunity for the City to do a test run with the Sounders. After the game we can access if and how the City might want to provide forward with future sponsorship and advertising with Seattle Sounders FC. Additionally, the sponsorship provides an opportunity for the City to test running ads with a family focused publication and tracking impressions. Applications are considered on a rolling basis. Please contact staff to discuss the process for having the application reviewed by the City's Lodging Tax Advisory Committee. Completed applications should be submitted to: Lodging Tax Advisory Committee c/o Brandon Miles City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 Or, Brandon.Miles@Tukwilawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 431 -3684 Brandon.Miles @Tukwilawa.gov. 8 52 City of Tukwila. City Council Community Development & Neighborhoods Committee COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE Meeting Minutes July 10, 2017 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Kate Kruller, Acting Chair, Joe Duffie, Dennis Robertson Staff: David Cline, Brandon Miles, Rick Mitchell, Jack Pace, Nora Gierloff, Stacy Hansen, Laurel Humphrey Guests: Marty Hartman and Liz McDaniel, Mary's Place; Jamie Durkan; Jan Bolerjack CALL TO ORDER: Acting Chair Kruller called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Lodging Tax Application from the City of Tukwila for "Family Night at S2" Staff is seeking Council approval of an application from the City of Tukwila for lodging tax funds for "Family Fun. Night at S2" in an amount not to exceed $25,000. The Lodging Tax Advisory Committee recommends Council approval of the request. If approved, funds will be used to sponsor and market "Family Fun Night" at the September 9th S2 game at Starfire Sports. Family friendly activities will be available before, during and after the game. UNANIMOUS APPROVAL. FORWARD TO JULY 17, 2017 REGULAR CONSENT AGENDA. B. Ordinance: Development Agreement with Mary's Place for a Temporary Family Shelter Staff is seeking Council approval of an ordinance to enter into a development agreement with Mary's Place for a temporary family shelter located in the former Barnaby's /Chateau Event Center at the southwest corner of Strander Boulevard and West Valley Highway. The center would prioritize Tukwila families and accommodate up to 90 residents in one or two parent families that include at least one minor child. Upgrades to the building would include showers, laundry, kitchen refurbishment, and installation of two modular buildings. The draft agreement proposes a term of three years with a possible two -year extension. Mary's Place operates many other facilities in the area and have a proven model of moving families out of homelessness with intensive services and support. The average Mary's Place stay is 86 days, but there is no limit as long as the family is working toward housing. Mary's Place representatives addressed the Committee to describe the program in detail, and Councilmembers asked clarifying questions. Each Councilmember expressed support for having Mary's Place in Tukwila. UNANIMOUS APPROVAL. FORWARD TO JULY 24, 2017 COMMITTEE OF THE WHOLE. ( *Note, on 7/11 Mary's Place requested the City delay the public hearing until August) II. MISCELLANEOUS Adjourned 6:15 p.m. ,' Committee Chair Approval Minutes by LH 53