HomeMy WebLinkAboutReg 2018-05-21 Item 4H - Funding - $90,500 Lodging Tax Funding for Southcenter's 50th AnniversaryCOUNCIL AGENDA SYNOPSIS
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Council review
05/21/18
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Si( )NS( )R ri Council illa);or iii DC7) 1 'inance 0 I 'ire [ 715 Pe -R. E Police rimy Ecoud
sBoNsoR's The City of Tukwila's Office of Economic Development is requesting $90,500 in lodging tax
Snim,\Ry funds to be used to mark the 50th anniversary of the opening of Southcenter Mall and to
celebrate 50 years of the Southcenter District being the premier shopping, dining, and
entertainment area in Puget Sound. The funds will be used for marketing, events,
promotions, and staffing to celebrate the milestone.
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El c.0,\x",
mtg. Z CDN Comm El Finance Comm. Z Public Safety Comm.
ri Arts Comm. [ Parks Comm. [ Planning Comm.
CONINIITTEE CI LAIR: KRULLER
• Trans &Infrastructure
DATI';: 5/15/18
RECOMMENDATIONS:
Si( )Nsolt/ADNIIN.
C" NINIITThr
Mayor Office/ Economic Development
ITEM INFORMATION
ITEM No.
4.H.
STAFF SPONSolt: BRANDON MILES
ORR;INAJ, A(LIN1),\ 1) \T11: 5/21/18
A(;KNI),\ 1mm TITIE Lodging Tax Funding Request for the City of Tukwila for Southcenter 50.
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.1N Date 5/21/18
7 Resolution
AN Dale
Ordinance
AN Dale
fl Bid Award
AN Dale
— Public 1 leafing
A NDate
T Other
:\Itg Date
Si( )NS( )R ri Council illa);or iii DC7) 1 'inance 0 I 'ire [ 715 Pe -R. E Police rimy Ecoud
sBoNsoR's The City of Tukwila's Office of Economic Development is requesting $90,500 in lodging tax
Snim,\Ry funds to be used to mark the 50th anniversary of the opening of Southcenter Mall and to
celebrate 50 years of the Southcenter District being the premier shopping, dining, and
entertainment area in Puget Sound. The funds will be used for marketing, events,
promotions, and staffing to celebrate the milestone.
T
Riwitwkt) By
El c.0,\x",
mtg. Z CDN Comm El Finance Comm. Z Public Safety Comm.
ri Arts Comm. [ Parks Comm. [ Planning Comm.
CONINIITTEE CI LAIR: KRULLER
• Trans &Infrastructure
DATI';: 5/15/18
RECOMMENDATIONS:
Si( )Nsolt/ADNIIN.
C" NINIITThr
Mayor Office/ Economic Development
Unanimous Approval; Forward to Consent Agenda
COST IMPACT / FUND SOURCE
EXPL\: DITURN RI (.,l 'IRI :D AMOUNT BUDGETED APPROPRIATION REQUIRED
$90,500 $400,000 $N/A
Fund Source: 101 FUND.
Comments: Lodging tax funds can only be used for tourism promotion activities.
MTG. DATE
RECORD OF COUNCIL ACTION
05/21/18
MTG. DATE
ATTACHMENTS
05/21/18
Informational Memorandum dated 5/8/18
2018 Lodging Tax Application
Minutes from the CDN meeting of 5/15/18
ri
96
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Community Development and Neighborhoods
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: May 8, 2018
SUBJECT: Lodging Tax Application Funding Request
City of Tukwila-Southcenter 50
ISSUE
Approval of funding a request by the City of Tukwila for lodging tax funds to be used for events,
marketing, staffing, promotion, and other cost related to the Southcenter 50th Celebration.
BACKGROUND
The City of Tukwila's Office of Economic Development is requesting $90,500 in lodging tax
funds to be used to mark the 50th anniversary of the opening of Southcenter Mall and to
celebrate 50 years of the Southcenter District being the premier shopping, dining, and
entertainment area in Puget Sound.
Available Lodging Tax Funds
The City collects a 1% lodging tax on certain qualifying overnight stays in paid accommodations
(hotels/motels/Airbnb) in the City. State law limits the use of these funds to tourism promotion'.
There is currently just over $1.1 million in lodging tax funds available for use. This does not
include revenue for the months April and May because of the two-month lag in receiving lodging
tax funds from the State. Additionally, the City has budgeted to collect $755,000 in funds in
2018.
Application Approval Process
The City's Lodging Tax Advisory Committee (LTAC) reviews all requests, even by the City, for
use of lodging tax funds. LTAC then forwards a list of recommended 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 recommended by the LTAC. The City Council may also approve an
application and increase or decrease the dollar amount awarded2.
The City accepts applications on a rolling basis, with the LTAC reviewing requests monthly.
1 RCW 67.28.080 (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."
2 On August 17, 2016, the Washington State Attorney General's Office issued an informal opinion regarding whether a
municipality could change the dollar amounts recommended by the local lodging tax advisory committee. Specifically, the
informal opinion states:
"When awarding lodging tax revenues pursuant to RCW 67.28.1816(2)(b)(ii), a municipality may award amounts different from
the local lodging tax advisory committee's recommended amounts, but only after satisfying the procedural requirements of
RCW 67.28.1817(2), according to which the municipality must submit its proposed change to the advisory committee for review
and comment at least forty-five days before final action on the proposal."
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INFORMATIONAL MEMO
Page 2
Pending Applications
There is currently one application from the City of Tukwila pending. The LTAC reviewed the
application at its May 1, 2018 meeting and recommends funding the application as submitted.
1. City of Tukwila, Southcenter 50 ($90.500).
The City of Tukwila is requesting $90,500 in funding as part of the Southcenter 50 celebration.
In May of 1968, Southcenter Mall, now known as Westfield Southcenter opened its doors to the
public. At the time of its opening it was the second largest, climate -controlled shopping center in
the country. Westfield Southcenter is known as one of the premier shopping destinations in the
Pacific Northwest.
The opening of Southcenter Mall was a catalyst for the huge growth of retail and commercial
activity in Tukwila's Southcenter Neighborhood, recognized by Puget Sound residents as
convenient place for shopping, dining, hotels, and family fun. And it all started with the Mall's
opening in 1968.
Working with Westfield, the Chamber, and other partners, the City would like to celebrate the
50th anniversary of the Southcenter Shopping District. The impetus of this celebration is this
year's 50th anniversary of the Mall; however, besides just celebrating the Mall's opening, we will
also celebrate 50 years of Southcenter being one of the premier shopping districts in the Puget
Sound, as well as the future.
Last year the City received $50,000 funding to begin the initial planning, promotion, and
development of the Southcenter 50th celebration. Approximately, $26,600 was spent and/or
committed for the Southcenter 5061. The City is requesting to roll the unspent/uncommitted
balance of $23,400 to this application and is also requesting an additional $67,100 in additional
funds ($23,400 + $67,100 = $90,500 (not to exceed).
The Southcenter 50 campaign includes, but is not limited to:
1. Activation with signage in and around the core shopping area.
2. 5k, in partnership with the Seattle Sounders.
3. Evening events.
4. Enhancing and marketing Touch a Truck as a "Southcenter 50th" event.
5. Two Promotional Videos.
6. History promotion
7. Creation of a video highlighting the early history of the area; building and opening
of the Mall; buildout of the area; and what the future holds.
8. PR and Advertising promotion.
9. Social Media, including hourly rate for an intern.
10. Symposium focused on the future of shopping, dining, and entertainment.
11. Engage the public to share their own stories about Southcenter.
12. Sponsorship of third party activities in the Southcenter area.
13. Other general marketing, branding, and promotional activities.
The funding requested will be used for the Southcenter 50th Celebration, which will commence
this summer. The City's funds are to celebrate the entire district. Only the actual costs will be
98 billed. Funds not used will remain in the lodging tax fund and are eligible to be used next year. A
INFORMATIONAL MEMO
Page 3
conceptual budget is attached with the application. Funds may be moved between the various
categories as the Southcenter 50 campaign progresses.
Westfield Southcenter will be providing a significant amount of in-kind contribution, including
allowing the City to have use advertising area at the Mall and allowing the Mall parking area to
be used to stage a 5K run. Additionally, Westfield will be hosting and paying for an evening
event on July 31St
FINANCIAL IMPACT
The total amount of funding requested from the lodging tax fund is $59,064. As discussed
above, the City has budgeted the collection of $755,000 in lodging tax revenue in 2018.
2018 Lodging Tax Overview
Revenue
Estimated Fund Balance
Projected Lodging Tax Revenue (Budgeted)
$1,167,394
$755,000
Notes
This was the budgeted
estimated in the adopted City
bud ems_
Expenditures
Committed Funds
Seattle Southside Regional Tourism Authority
City of Tukwila, General Administration
($292,500)
In 2017, the City approved a
two-year application and
contract with Seattle
Southside Regional Tourism
Authority. The number shown
reflects the funds committed
for 2018.
($59,064) Approved by City Council on
February 19, 2018.
Pending Applications
City of Tukwila Southcenter 50 Celebration
Total Approved and Pending expe nditures:
Estimated Additional Funds Available for Activities:
($90,500) Approved by LTAC on May 1,
2018.
($442,064)
$1,480,330
RECOMMENDATION
The LTAC considered the request at its May 1, 2018 meeting and recommended approval of the
request. Staff recommends that the City Council approve the funding request, as recommended
by LTAC. Staff suggests that the application be placed on the May 29 Committee of the Whole
meeting and June 4 consent agenda.
ATTACHMENTS
A. City of Tukwila Southcenter 50th Application.
99
100
Application to the City of Tukwila for Use of 2018 Lodging Tax Funds
Event or Activity Name (if applicable):
Amount of Lodging Tax Requested
Applicant Organization:
Federal Tax ID Number:
Southcenter 50th Anniversary
$90,500
City of Tukwila ....�
91-6001519
98188
MailingAddress: 6200 Southcenter Blvd, Tukwila, WA
Contact Name: Brandon Miles
n ct Phone: 206-431-3684
Primary
Primary Coto
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.
o Operation of a tourism -related facility owned or operated by a non-profit organization.
o 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:
o An entity engaged in tourist marketing or tourism promotion.
o Non -Profit (501(c)(3) or501 (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 2018. 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.
Js/
Signature:
April 30, 2018
Date:
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1) Describe your tourism -related activity or event.
In May of 1968, Southcenter Mall, now known as Westfield Southcenter opened its doors to the public.
At the time of its opening it was the largest, climate controlled shopping center in the country.
Westfield Southcenter is known as one of the premier shopping destinations in the Pacific Northwest.
The opening of Southcenter Mall was a catalyst for the huge growth of retail and commercial activity in
Tukwila's Southcenter Neighborhood, recognized by Puget Sound residents as convenient place for
shopping, dining, hotels, and family fun. And it all started with the Mall's opening in 1968.
Working with Westfield, the Chamber, and other partners, the City would like to celebrate the 50th
anniversary of the Southcenter Shopping District. The impetus of this celebration is next year's 50th
anniversary of the Mall; however, besides just celebrating the Mall's opening, we will also celebrate 50
years of Southcenter being one of the premier shopping districts in the Puget Sound, as well as the
future.
Last year the City received $50,000 funding to begin the initial planning, promotion, and development
of the Southcenter 50th celebration. Approximately, $26,560 was spent and/or committed for the
Southcenter 50th. The City is requesting to roll the unspent/uncommitted balance of $23,400 to this
application and is also requesting an additional $67,060 in additional funds.
The funding requested will be used for the Southcenter 50th Celebration, which will commence this
summer. The City's funds are to celebrate the entire district.
1. Activation with signage in and around the core shopping area.
2. 5k, in partnership with the Seattle Sounders.
3. Evening events.
4. Enhancing and marketing Touch a Truck as a "Southcenter 50th" event.
5. Two Promotional Videos.
6. History promotion
7. Creation of a video highlighting the early history of the area; building and opening of the
Mall; buildout of the area; and what the future holds.
8. PR and Advertising promotion.
9. Social Media, including hourly rate for an intern.
10. Symposium focused on the future of shopping, dining, and entertainment.
11. Engage the public to share their own stories about Southcenter.
12. Sponsorship of third party activities in the Southcenter area.
13. Other general marketing and promotional activities.
Overall, this is a marketing campaign to promote the Southcenter area as the premier shopping, dining,
and entertainment area in the Puget Sound.
2) Tukwila's brand signature experience is built on the following themes:
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102
• Family Entertainment
• Shopping
• Fun with Friends
Describe how your event, activity, or festival builds on one or all the themes listed above:
Southcenter 50 will be consistent around the entire Tukwila brand and the brand pillars described
above. The Southcenter District has a wide variety of shopping and family entertainment. Several of th
events, such as Touch a Truck and the Sounder 5K, are focused on family fun and fun with friends.
3) If an event, list the event name, date(s), and projected overall attendance.
Touch A Truck: 1,000
Sounder Run: 2,500
Evening Events: 300
Third Party Events: 1,000
The Southcenter 50 is primarily a marketing campaign for the entire district. Our overall media
impression target is 1 million.
4) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both?
Both.
5) Describe why visitors will travel to Tukwila to attend your event/activity/facility.
The Southcenter District is the premiere shopping district in the Puget Sounds. Over 100,000
people visit the district every day. The District is conveniently located at the intersection of 1-405
and 1-5. The events are unique, such as the Sounder 5K run and Southcenter 50 evening events.
6) Describe the geographic target of the visitors you hope to attract (locally, regionally,
nationally, and/or internationally).
Primarily people within a one-hour drive of the City. However, hotel guests in the Southcenter area
will also enjoy and benefit from the events.
7) Describe the prior success of your event/activity/facility in attracting tourists.
The Southcenter District generates just over $2 billion in taxable retail sales a year, with
approximately $388 million being attributed to tourists (Dean Runyan). The Touch a Truck event is
an existing event that continued to grow and the Seattle Sounders 5K was operating in Redmond
for the last few years and has had strong attendance.
Again, the Southcenter 50 is primarily a marketing and promotional initiative.
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103
The City has also brought in partners, including the Chamber, Westfield, and Seattle Sounders to
help with the events and promotions. These partners have a proven record of holding first rate
events.
8) If this your first time holding the event/activity/facility provide background on why you think
it will be successful.
No.
9) Describe how you will promote lodging establishments, restaurants, retailers, and
entertainment establishments in the City of Tukwila.
The Southcenter 50 campaign will promote all of the offering in the Southcenter District area
including, restaurants, shopping, hotels, etc.
10) As part of the City's branding process, the City committed to using the "Tukwila" name above
other names often used to describe the City (or parts of the City), such as "Southcenter" or
"Seattle."
a) If you are existing entity currently operating in the City does your entity list its physical
location as being in Tukwila? If not, why? (Note: This question is only with the city being
used to describe your location, it does not apply to out of area marketing, which may say
"Seattle" of "Seattle Southside.").
Yes. This campaign will use the "Tukwila" name very prominently.
b) If you are proposing a new activity, festival, or event will it be described as occurring in
"Tukwila?"
Yes, all new and existing events will say Tukwila. "Southcenter District" may be used, but
will be use in conjunction with the "Tukwila" name.
c) If you are proposing a marketing program please outline how the "Tukwila" name will be
used, promoted, used in promotional materials and used in social media.
Tukwila will be use prominently in all marketing and social media posts.
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104
11) 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 esti
mate of:
a. Overall attendance at your proposed event/activity/facility.
b. Number of people who will travel fewer than 50 miles for your
event/activity.
c. Number of people who will travel more than 50 miles for your
event/activity.
10,000
Plus, over 1
million of
media and
marketing
impressions.
d. Of the people who travel more than 50 miles, the number of people
who will travel from another country or state.
e. Of the people who travel more than 50 miles, the number of people
who will stay overnight in Tukwila.
f. Of the people staying overnight, the number of people who will stay in
PAID accommodations (hotel/motel/bed-breakfast) in Tukwila.
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)
5
9,000
1,000
Less than
200.
1,000
1,000
2,500
Again, this
primarily a
marketing and
promotional
campaign to
build overall
brand
awareness for
Tukwila and to
help build the
brand.
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12) 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.?
For the events, these are estimates based on experience. Media and marketing impressions will
be tracked throughout the campaign.
13) Are you applying for lodging tax funds from another community? If so, which communities
and in what amounts?
No.
14) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in
what amount?
No.
15) What is the overall budget for your event/activity/facility? What percent of the budget are
you requesting from the City of Tukwila?
Total Request is: $90,500 (Net new is $67,100, with $23,400 from Phase 1 being rolled over into
the final phase).
See attached. Westfield Southcenter and the Tukwila Historical Society will be putting on their
own events with their own funding.
Note:
Last year $50,000 was approved in lodging tax funding to help organize and do initial promotion
for the Southcenter 50 celebration.
Southcenter 50 Phase 1:
Funds Spent in Phase 1:
Unused Funds from Phase 1:
Funds Needed Final Phase:
Apply Unused Funds from Phase 1 (column C):
Net Additional Funds Needed (Column D -E):
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6
$50,000
($26,560)
$23,440
$90,500
($23,400)
$67,100
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�. ov.
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Southcenter 50
Goals:
1. Celebrate 50 years of Westfield Southcenter and the entire shopping district.
2. Get excited about the future of the entire shopping district (Pedestrian Bridge Opening and new
mixed use projects).
3. Remind the Seattle Metro area that the Southcenter District has and will remain the premier
shopping, dining, and entertainment district in the Puget Sound.
Events
events are existing, but would be brought up the "Southcenter 50" brand for this year
Some of these
only. .
Event
Date
Tukwila May 19
Historical
Society
City
Lodging Tax
Funds?
Touch a Truck July 28th
No
Yes, to
expand the
event and
include some
marketing
under the
Southcenter
50 brand.
Southcenter July 31'
Mall 50th
Celebration
Seattle
Sounders 5K
Seattle _..
Chocolates
Haunted
House
September
15th
Retail
osium
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October,
2018
November 9t
Possible, but
only a small
amount.
Westfield is
the lead on
organizing
this event.
Amount
N/A
$7,500
Notes
Confirmed
Confirmed
$5,000 Confirmed
Yes, event
logistics and
marketing.
Yes,
sponsorship
only.
Yes
Subtotal:
8
$15,000
$5,000
$7,500
$40,000
Probable Confirmation
Probable Confirmation
Confirmed.
General Marketing and P
The following generally outlines some of the marketing and public relations work we are going to do for
the Southcenter 50th
Platform
Facebook,
@Southcenter50
Instagram
Video
highlighting
future
development.
Seattle Times
Stories
Interviews with
key people and
video.
Promotional
Video
General
Promotion and
Marketing
Status
Launched
and running
very low key.
Not launched
Getting ready
to execute an
agreement
with firm.
Reached out,
tour
provided.
Researching
In
Development
Ongoing
Platform
Billboard on S.
180th and West
Valley Hwy.
Status
City Funds
Lod in' Tax
None Needed.
N/A
Yes, plus funds
$15,000 of Port
funds from grant.
N/A
Yes
Yes
Yes
Subtotal:
Amount
$1,000
$1,000
$1,000
Notes
Just got to 450
followers, but we
haven't been doing a
huge push.
Cost includes hourly
rate for intern.
Cost includes hourly
rate for intern.
N/A
$10,000
$10,000
$2,500
$25,500
District Activation
Not yet started.
City Funds
Lodgin ' Tax
Yes, for design
of ad only.
9
Amount
$500
Will focus from the
train station to the
Mall, along Baker
Blvd.
Several story ideas:
1. Focus on the
Mall.
2. Future vision
• Nordstrom
Family
Member.
• Costco CEO.
• Westfield
Outreach to promote
the district, tied to the
overall history and the
future.
Notes
City has rights to use
the billboard for free.
109
Parking Garage
Sys
Digital Signs in
Mall.
Three special signs
in Mall.
Not Started
Not Started
Not Started.
Static History
Boards
Not Started.
Other
Onnortunities
On -Going
Yes, for design $3,000
and . rintin • .
Yes, for design $500
onl
Yes, in part, for $3,000
design and
printing?
Yes $10,000
Yes _.... $1,000
In -Kind from Westfield
for S • ace.
In Kind from mall.
In kind from Mall.
Historylink
Historylink.
Platform
Brochure/Pamphlet
for events
Digitize Photos
Swag Bags for
Event
Subtotal:
$18,000
Swag/C ollateral/Other
Status City Funds
Lod in Tax
Not Started Yes
Amount
$2,500
$2,000
Not Started
Yes
Notes
Not Started
Yes
$2,000
Funds for design and
hoto ri ' ts.
May need to get
co . i ' ht Eermission.
Funds for buying and
or making bags and
collateral.
Other
On -Goin
Yes
Subtotal:
$500
$7,000
Total Request: $90,500
In 2017, Lodging Tax Advisory Committee and the City Council approved an application for $50,000 to
help with the initial planning and organizing of the Southcenter 50th celebration. The City has
used/committed $26,560 of these funds, thus $23,440 is unspent and uncommitted. An additional is
$67,100 is being request of lodging tax funds ($90,500-$23,440).
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City of Tukwila
City Council Community Development & Neighborhoods Committee
COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE
Meeting Minutes
May 15, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers:
Staff:
Guests:
Kate Kruller, Chair, Kathy Hougardy, Zak Idan
Mayor Ekberg, David Cline, Derek Speck, Nora
Shagena, Laurel Humphrey
Michelle Hankinson, Nexus Youth and Families
erloff, Stacy Hansen, Kia
CALL TO ORDER: Chair Kruller called the meeting to order at 5:30 p.m.
I. BUSINESS AGENDA
Motion was made, seconded and car
second order of business.
A.
o consider the Homeless Services Zoning item as the
2018 Lodging Tax Application: Southcenter 50th Anniversary
Staff is seeking Council approval of an application from the City of Tukwila for lodging tax
funds in the amount of $90,500 to be used for costs related to the Southcenter 50th
Celebration. The Lodging Tax Advisory Committee recommended approval of the funding
request at its meeting on May 1, 2018. Southcenter Mall, now known as Westfield
Southcenter, opened in 1968 and the City is partnering with other stakeholders to celebrate
the 50th anniversary of the Southcenter Shopping District. If approved, only the actual costs
will be bided and unused funds will remain in the lodging tax fund. UNANIMOUS APPROVAL.
FOR ARD TO MAY 21, 2018 REGULAR CONSENT AGENDA.
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