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HomeMy WebLinkAboutReg 2018-06-04 Item 5E - Funding - Lodging Tax Funding: $44,500 for Starfire Sports / $10,000 for Renton Chamber of CommerceCOUNCIL AGENDA SYNOPSIS Prepared /0//CU' 06/04/18 BJM Lrl ITEM INFORMATION ITEM No. 5.E. STAIT sp( R: B. MILES ORIGINAL AGiADAID,VIE: 06/04/18 .1(;1.\ t) \ I'l 1M TITLE; Lodging Tax Funding Requests from Stat -fire Sports and the Renton Chamber of Commerce. CAA] ( )10' — Diu/H/0n \1i/ Di,' 1/otion .111,g Date 6/4/18 El Resolution AltDate Ordinance .1.11ADate 131 d ,fivard Altg Date Public' Heal* .1Itg Dale 0/her ANDille Sp )N( tk Counci/ Mayor EHR _DOT) I'711t111Ce firs 71s' PR Police P Pr cowi SP )NS( Starfire Sports is requesting $44,500 in lodging tax funds to support is annual SlIMMARY tournaments and the Renton Chamber of Commerce is request $10,000 to host Renton Comic Con in the City of Tukwila in September. Both requests were reviewed by the City's Lodging Tax Advisory Committee (LTAC) at its May 22, 2018 meeting and LTAC recommends approval of the funding requests. Lodging funds are generated by hotel/motel stays and the funds can only be used for tourism promotion. ZIVIE;WI A) BY 7 c.o.w, Mtg. Trans &Infrastructure DATE: 5/29/18 II CDN Comm Finance Comm. I I Public Safety Comm. r Parks Comm. Planning Comm. COMNIITIEF. CI IAIR: KRULLER fl Arts Comm. RECOMMENDATIONS: SpoNsoR/ADmiN. ( NINIITTIT Mayor Office/Economic Development Unanimous Approval; Forward to Consent Agenda COST IMPACT / FUND SOURCE Lixpi.:NI)imul RF(,?L'IRKI) AMOUNT BUDGETED APPROPRIATION REQUIRED $45,500 $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 06/04/18 MTG. DATE ATTACHMENTS 06/04/18 Informational Memorandum dated 5/23/18 Starfire Sports LTAC documents, including application. Renton Chamber of Commerce LTAC documents, including application. Minutes from CDN meeting of 5/29/18 --e7 38 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: May 23, 2018 SUBJECT: Lodging Tax Application Funding Requests ISSUE Approval of lodging tax funding requests from Starfire Sports ($44,500) and the Renton Chamber of Commerce ($10,000). BACKGROUND Starfire Sports is requesting $44,500 in lodging tax funds to support is annual tournaments and the Renton Chamber of Commerce is request $10,000 to host Renton Comic Con in the City of Tukwila in September. Both requests were reviewed by the City's Lodging Tax Advisory Committee (LTAC) at its May 22, 2018 meeting and LTAC recommends approval of the funding requests. Available Lodaina 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." 39 40 INFORMATIONAL MEMO Page 2 Pending Applications As outlined above, there are currently two pending applications, both applications have been reviewed by the LTAC and LTAC recommends approval. 1. Starfire Sports, Starfire Sports Tournament Season ($44,500) Starfire Sports is one of the premier soccer facilities in the United States. Since its opening in 2003, Starfire Sports has made Tukwila the epicenter of soccer in the Pacific Northwest. Annually, over 1 million people will visit the facility. Besides soccer, Starfire also hosts rugby, lacrosse, and other sporting events, as well as being a unique meetings space for private and corporate functions. Starfire Sports is requesting 2018 lodging tax funds to assist in the promotion and facilitation of leagues, events, and tournaments. The goal is to attract visitors to create 10,000 hotel room nights and bring 1.3 million annual visitors (not unique) to the complex and Tukwila. Starfire will promote its events through email and online marketing, with regional soccer organizations and social media. The 10,000 room nights is from Starfire's own tournaments and does not include room nights generated by third parties that rent fields for their own tournaments. A draft scope of work is attached. It is generally the same scope of work from last year's contract. Renton Chamber of Commerce. Renton City Comicon ($10.000) The Renton Chamber of Commerce is requesting $10,000 from the City's lodging tax funds to support Renton City Comicon in the City of Tukwila on September 15 and September 16. RenCon is a regional convention that focuses on the nerd and geek culture of comic books, super heroes, science, cosplace, movies, celebrities and other related areas. RenCon will be held at the new Hotel Interurban and Westfield Southcenter. This will be the third year of RenCon (first year in Tukwila), which has continued to grow year over year in attendance. Forecast for this year 4,000 attendees, including 550 estimated room nights. There is a significant amount of media and promotion of the event leading up to the actual weekend. This media and promotion will provide the City an opportunity to promote and grow our brand in the region. The City will be considered a presenting sponsor for the event. A draft scope of work is attached FINANCIAL IMPACT The total amount of funding requested from the lodging tax fund is $54,500. 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) Expenditures Committed Funds Notes $1,167,394 $755,000 This was the budgeted estimated in the adopted City budget. INFORMATIONAL MEMO Page 3 Seattle Southside Regional Tourism Authority ($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. City of Tukwila, Genemmral Administration ($59,064) Approved by City Council on February 19, 2018. City of Tukwila Southcenter 50 Celebration ($90,500) Approved by City Council on MaL21, 2018. Pendin. Applications Starfire Sports ($44,500) Reviewed by LTAC on May 22, 2018. LTAC recommends approval. Renton Chamber of Commerce r ($10,000) Reviewed by LTAC on May 22, 2018. LTAC recommends approval. Total A.'roved and Pending ing expenditures: ($496,564 Estimated Additional Funds Available for Activities: $1,425,830 RECOMMENDATION Staff recommends that the City Council approve the funding request, as recommended by LTAC. Staff suggests that the applications be placed on the June 4 consent agenda. Since the awarded funds to Starfire Sports exceeds $40,000, staff is also requesting authorization to enter into a contract with Starfire Sports to award the funds. ATTACHMENTS A. Starfire Sports LTAC documents, including application. B. Renton Chamber of Commerce LTAC documents, including application. 41 42 Tukwila City of Mayor's Office - David Cline, City Administra Staff Memorandum Lodging Tax Advisory Committee Funding Request Name of Applicant: Starfire Sports Address: 14800 Starfire Way, Tukwila, WA 98188 Total Funds Requested: $44,500 Allan Ekberg, Mayor About the Applicant: Starfire Sports, a non-profit entity, has grown into one of the premier soccer complexes in the United States. Over 1.3 million people visit the complex annually to take part in soccer tournaments; play in indoor and outdoor soccer leagues; to engage in sport specific training, soccer viewing, and attending professional soccer matches. Starfire is also the training home of the Seattle Sounders FC, which play in the Western Conference of Major League Soccer. Opening in 2003, Starfire Sports complex has 12 outdoor fields and two indoor fields. The complex is located at Fort Dent Park, which is owned by the City of Tukwila. Also located at the Park is a small children's play area and regional trail system. The City has maintenance reasonability for the play area, trails, and parking area. Starfire Sports regularly hosts multiday, weekend soccer tournaments, which brings in soccer teams from throughout North America. Teams stay in hotels throughout the Seattle Southside region, with a 70/30 split between Tukwila and SeaTac hotels. Players and their families can also be seen throughout Tukwila, at Westfield Southcenter, the Family Fun Center, and area restaurants. Besides soccer, Starfire Sports has been used to host a variety of other sports and activities, including rugby, lacrosse, and quidditch. Starfire is now also home to the Seattle Seawolves, Seattle's professional rugby team. All home games this year have been soldout. Funds Previously Awarded: Last year Starfire Sports received $42,000 in lodging tax funds from the City. Tukwila City Hall • 8200 Southee titer Boulevard • Tukwila, WA 98188 • 206.4 1800 • Website: 'TukwilaWA.gov 43 Starfire Sports May, 2018 Page 2 Funding Request Narrative: Starfire Sports is requesting 2018 lodging tax funds to assist in the promotion and facilitation of leagues, events, and tournaments. The goal is to attract visitors to create 10,000 hotel room nights and bring 1.3 million annual visitors (not unique) to the complex and Tukwila. Starfire will promote its events through email and online marketing, with regional soccer organizations and social media. The 10,000 room nights is from Starfire's own tournaments and does not include room nights generated by third parties that rent fields for their own tournaments. A draft scope of work is attached. It is the same scope of work from last years contract. Staff Comments: After Westfield Southcenter, Starfire Sports is the largest draw of visitors in the City and perhaps the largest draw of overnight guests in the City. Additionally, the tournaments and leagues at Starfire bring in people throughout the Puget Sound region on day visits to the City. Participants at tournaments and leagues at Starfire can easily be identified, while at restaurants and retailers throughout the City. National demographic data indicates that while most soccer participants are under the age of 18. While most participants might be kids, the sport reaches well beyond the kids, with parents being spectators, referees, coaches and/or administrators. These parents tend to be influential, educated, and technically savvy. Over half of households with youth soccer parents in them have a household income about $75,000, with 35% of household having an income above $100,000. Starfire brings these high income households the City everyday with their soccer tournaments and leagues. One of the goals of staff is to work with Starfire to identify ways to encourage visitors of Starfire to come back to the City, even when they are not visiting for a soccer related activity. Since its opening in 2013, Starfire has also help created positive branding for the "Tukwila" name. Starfire and its tenants, including Seattle Sounders FC, identify their physical location as being "Tukwila." Each visitor who comes to the facility leaves with a positive experience in Tukwila. Starfire has put Tukwila on the map for soccer. Many soccer fans in the northwest know of Tukwila because of attending soccer matches and playing at Starfire. Starfire Sports has also helped the City with event production, including the Seattle Sounders FC MLS Cup send offs (2016 and 2017). City of Tukwila Staff Recommendation to LTAC: Approval. Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 44 Starfire Sports May, 2018 Page 3 Notes: Should LTAC and the City Council approve the request, a final scope of work, consistent with the approved application, will be finalized by the City and the applicant. Additionally, the applicant will need to enter a services contract with the City. Since this contract will be over $40,000, the City Council must authorize the Mayor to sign the contract. Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 45 46 Exhibit "A" Starfire 2018 Scope of Services General: Contractor shall organize, promote and facilitate tournaments, leagues and events at Starfire Sports Complex with the goal of attracting over 10,000overnight hotel/motel room nights and 1.3 million annual visitors (not unique visitors) in a collaborative working relationship with the City of Tukwila. The purpose of this agreement is for the tracking of hotel bookings, promotions and marketing. 1. As needed, contractor shall refer teams and event directors directly. to .Seattle Southside Regional Tourism Authority (SSRTA), a destination marketing organization for the City, for assistance with lodging, restaurants, attractions, transportation companies, etc. or directly to the City. 2. Contractor will encourage and, where possible, require other 3rd party organizers holding tournaments and events at Starfire to utilize Seattle Southside (Tukwila, SeaTac, and Des Moines) lodging businesses. Contractor will provide 3rd party organizers a one page promotional flyer as an attachment (to be provided by the City) to its rental agreements. 3 Contractor shall provide a prominently placed City of Tukwila logo to the sponsor section of the landing page of www.starfiresports.com website. 4. Contractor will promote City of Tukwila attractions and activities through its marketing department, league information, and tournament relations via links in email signatures and information in event documents. Information may be regarding non -city activities. Attractions and events promoted by the City, with the contractor, cannot be in conflict with the business interests of Starfire Sports. 5. Contractor and City shall work in conjunction to provide content in the regular e - newsletters from Starfire Sports about Tukwila attractions and activities. Attractions and events promoted by the City, with the contractor, cannot be in conflict with the business interests of Starfire Sports. 6. In all collateral, press releases, medias, etc. where a location is mentioned, contractor shall always identify the location of Starfire as being located in "Tukwila." Contractor shall encourage third parties operating at or hosting events at Starfire to also list the location as "Tukwila." 47 7. Provide a minimum of two social media post per month promoting activitiesdining, shopping, and/or hotels in the City. Content to be provided by the City and approved by Contractor. 8. Asdeennednnostappnophate6»[ontnactor,usethe#Tukvv|aorthenarne"Tukvv|a"in social media posts on Facebook, Twitter, Google+ and/or lnstagram. 9. Contractor shall make available free meetiduring lar operating hours by the Contractor, for the Cityprovided City evendo nflict with paid meeting reservations. 10. Contractor shall work with the City to promote events in City, including but not limited to City sponsored events, events sponsored by third parties, and grand openings of businesses within the City. Eve ts promoted by the City, with the contractor, cannot be in conflict with the business interests of Starfire Sports and its tenants. 11. The City of Tukwila shall also be considered a tourname.nt partner for 2018. As a tournament partner the City shall be receive the following benefits: a. City included as part of the Tournanaming/logo (e.g. The Starfire AstroTurf® Cup, Tukwila, WA). b. Visibility on www.starfiresports.com homepage, youth tournaments landing page, tournament event page, and drop-down navigation menu c. 300px by 300px placement on the tournament event page and tournament landing page of starfiresports.corn d. 300px by 300px placement in all registration and announcement emails related to the tournaments e. (6) Banners displayed during each day of the tournaments; banners to be provided by City f. (1) 10' x 10' booth during each day of the sponsored tournaments g. (1) PA Announcement mention every 4 hours during each day of the tournaments h. (1) 8.5" x 11" promotional flyer in all sponsored tournament(s) coach's packets i. (1) 10OpXby75p% placement in two Starfire newsletters j. (1) Marketing email sent to all tournament participants k. (1) Rotating placement in the Starfire Media Center during the tournament season I. Mentions via Starfire's social media platforms m. Opportunities for City officials to participate in Tournament award presentations 48 Application to the City of Tukwila for Use of 2018 Lodging Tax Funds Event or Activity Name (if applicable): Starfire Sports Tournament Season Amount of Lodging Tax Requested: $44,500 Applicant Organization: Starfire Sports Federal Tax ID Number: 47-0887811 Mailing Address: 14800 Starfire Way, Tukwila WA 98188 Primary Contact Name: Ben Oliver (206) 267-7417 Primary Contact Phone: Primary Contact Email Address: beno@starfiresports.com 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. 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. ✓ 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) o 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 eterm.ped by the City. Signature: _05/14/2018 Date: 49 1) Describe your tourism -related activity or event. Starfire directly manages 13 soccer tournaments up from 11 in 2017 and over 30 third party events. These events draw people from all over the county, Canada and further aboard. Starfire Sports projected 2018 total attendance is over 1,300,000 visits. 2) Tukwila's brand signature experience is built on the following themes: * Family Entertainment • Shopping • Fun with Friends Describe how your event, activity, or festival builds on one or all the themes listed above: Starfire Sports soccer tournaments embody everything that is the Tukwila signature experience. Nothing bring friends and family together like team sports, and Starfire Sports is the epicenter of soccer in the Pacific Northwest. Each year, Starfire tournaments draw tens of thousands of players and spectators to the area. Players bond with their friends and teammates as they celebrate the big wins and support each other through the tough losses --all while their family members cheer them on. Many of our attendees are attracted to our events due to our convenient location close to a variety of restaurants and shopping --especially at Southcenter Mall, where a lot of time is spent enjoying the area between matches! 3) If an event, list the event name, date(s), and projected overall attendance. 2018 Starfire Tournaments and third party events. Projected to be in excess of 1,300,000 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. Starfire Sports is the epicenter of soccer not only here in the Pacific Northwest but nationwide. As not only the home of our Seattle Sounders FC and the Seattle Seawolves we are host to over 42 annual events ranging from the recreational youth players to professional players. Starfire's own tournaments bring over 110 teams in annually from Canada alone while our leagues and youth programs bring hundreds of day visitors to Tukwila every day of the week. 6) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Starfire offers programs and events for people from all geographical areas with teams traveling from Germany to participate in our youth tournaments, the local community kids who just want to come down and kick a ball to the professional athletes from National Teams, Major League Soccer and Mayor League Rugby who are here for trainings and games, to the players who participate in any one of our youth or adult programs. 2018 will see an increase in marketing to Canadian, California and Hawaiian team for our tournaments. 2 50 7) Describe the prior success of your event/activity/facility in attracting tourists. Starfire Sports generates over 115,000 unique visitors and 1,250,000 visits annually. Of these visitors, roughly 7% travel more than 50 miles and stay in the area approximately 2-4 nights at a time. An average Starfire ran tournament will use between 350 and 500 room nights over one weekend. 8) If this your first time holding the event/activity/facility provide background on why you think it will be successful. No we have been running these event with increased growth due to marketing efforts for over 14 years. 9) Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. Starfire will promote our events through email and online marketing/advertising/social media and new partners being formed with surrounding States. Our events will be listed on regional soccer organization websites, including Washington Youth Soccer, BC Soccer, and Washington State Adult Soccer Association. We will also promote through email marketing to the Starfire database and those of local and regional soccer organizations, including statewide organizations and local soccer clubs. Events such as the US Open Cup, Seattle Seawolves matches, Seattle Sounders Women matches and Starfire's own 13 tournaments attracts visitors from all over Washington State as well as Alaska, Oregon, Idaho, Montana, California, Nevada and Canada to name a few. Most visitors, if not all, lodge and shop within approximately a 5 mile radius of Starfire Sports. Starfire works with local business' to help promote their products and services' ensuring the visiting dollar stays within the nearby community. 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"). Yes we are very proud to call Tukwila home. b) If you are proposing a new activity, festival, or event will it be described as occurring in "Tukwila?" N/A 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 not only be integrated into publications, promotions and the appropriate use of "Tukwila" #hashtags when using social media but also on all tournament branded materials including clothing. 3 51 In the past this integration has seen the media talk more about Tukwila with regards to soccer, Starfire, the Sounders and now the Seawolves also. 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 estimate of: a. Overall attendance at your proposed event/activity/facility. 1,300,000 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. 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) 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.? Team surveys and SSRTA Event Impact Calculator 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 agreement has been met at this time but in the past, we received a room rebate 4 52 15) What is the overall budget for your event/activity/facility? What percent of the budget are you requesting from the City of Tukwila? Our annual marketing budget is just under $24,000 without the support of LTAC funding that allows us to market to out of State teams any abroad. Please see attached the Event Impact Calculator information for a couple of our tournaments last year. 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 Tukwilawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 431-3684 Brandon.Mule,'aleil'w.gov. 5 53 54 SETTLE ►, J SOUTHSIDE u1 Event Impact Calculator Detail - Starfire Spring Classic 2017 - 08/02/2017 Event Name: Organization: Event Type: Start Date: End Date: Overnight Attendees: Day Attendees: i 111111 1111 0 mmar Key Parameters Starfire Spring Classic 2017 Starfire Sports Sports: Youth Amateur 06/15/2017 06/19/2017 1225 3885 Key Metrics Business Sales (Direct): Business Sales (Indirect): Business Sales (Total): Jobs Supported (Direct): Jobs Supported (Indirect): Jobs Supported (Total): Local Tax: Net Direct Local Tax ROI: Est. Room Nights Demand: $1,114,656 $638,434 $1,753,089 317 40 357 $43,938 $37,598 1,663 11111111111011011001101 i '440.101085 Attendees Spending. Organizer Spending: Industry Lodging Transportation Food & Beverage Retail Recreation Space Rental Business Services Totals $$i Sales by Source $1,004,061 $110,289 Exhibitor Spending: Total Event Spending: Business Sales by Sector Attendees Organizer Exhibitor $249, 390 $125,850 $318,965 $205,026 $104,830 $0 $0 $1,004,061 $0* $3,550* $48,371* $0 $0 $24,729* $33,640* $110,289 * indicates that the calculator's model defaults were used Business Sales Personal Income Jobs Supported Persons Annual FTEs Taxes And Assessments Federal Total State Total I do Orri $0 $195 $0 $0 $0 $0 $110 $305 $305 $1,114,656 Total $249,390 $129,595 $367,336 $205,026 $104,830 $24,729 $33,750 $1,114,656 Direct $1,114,656 $397,340 317 12 $103 593 $68.521 Indirect/Induced $638,434 $201,352 Total $1,753,089 $598,693 40 357 2 13 $56,344 $13.547 $ I59,938 $82,067 55 Sales Income Bed Other Local Total Sales Income Bed Per Room Charge Tourism District Restaurant Other Property Tax ..��1e Direct Direct Tax Receipts DMO Hosting Costs Direct ROI Net Present Value Direct ROI (%) Total Total Local Tax Receipts Total ROI Net Present Value Total ROI (%) Room Nights Sold: Room Pickup (block only): Peak Room Nights: Total Visitor Days: 56 Ir+ ;111,11111 $62,982 $0 $0 $5,538 $37,598 $29,069 $0 $2,494 $3,325 $0 $0 $2,710 $12,772 $10,375 $73,357 $0 $0 $0 $3,172 $8,711 $6340 S43,938 $4,788 $33,857 $0 $0 $2,494 $3,325 $0 $0 $4,262 $17,855 $0 $1,552 $5,083 4 ,i044 44 1,663 400 454 7,403 $37,598 $0 $37,598 $37,598 0 $43,938 $43,938 $43,938 0 lrolVL r SEP FT SOUTHSII Event Impact Calculator Detail - Xtreme Cup - 10/17/2017 N 1111 11111HIYIA14:410S,Idfmm11111111,, MpmNos II Event Name: Organization: Event Type: Start Date: End Date: Overnight Attendees: Day Attendees: Key Parameters Key Metrics Xtreme Cup Business Sales (Direct): Starfire Sports Business Sales (Indirect): Sports: Youth Amateur Business Sales (Total): 08/17/2017 Jobs Supported (Direct): 08/21/2017 Jobs Supported (Indirect): 810 Jobs Supported (Total): 7390 Local Tax: Net Direct Local Tax ROI: Est. Room Nights Demand: $1,160,557 $674,607 $1,835,164 337 41 378 $43,734 $37,034 1,099 nalmrs,Cp Attendees Spending. Organizer Spending: Industry Lodging Transportation Food & Beverage Retail Recreation Space Rental Business Services Totals Business Sales Personal Income Jobs Supported Persons Annual FTEs Taxes And Assessments Federal Total State Total Sales by Source $1,031,913 $128,296 Exhibitor Spending: Total Event Spending: Business Sales by Sector Attendees Organizer Exhibitor $207,778 $144,075 $344,313 $216,661 $119,087 $0 $0 $1,031,913 $0* $5,697* $55,281* $0 $0 $28,261* $39,056* $128,296 * indicates that the calculator's model defaults were used Direct $1,160,557 $417,918 337 13 $108,340 $70,629 $0 $223 $0 $0 $0 $0 $126 $349 Indirect/Induced $674,607 $210,366 41 2 $59,264 $14,314 $349 $1,160,557 Total $207,778 $149,995 $399,594 $216,661 $119,087 $28,261 $39,182 $1,160,557 6 Total $1,835,164 $628,284 378 14 $167,604 $84,943 57 Sales Income Bed Other Local Totat Sa les Income Bed Per Room Charge Tourism District Restaurant Other Property Tax 11 y1 ,1111 rod III fIlvulll„0 Direct Direct Tax Receipts DMO Hosting Costs Direct ROI Net Present Value Direct ROI (%) Total Total Local Tax Receipts Total ROI Net Present Value Total ROI (%) ■ Room Nights Sold: Room Pickup (block only): Peak Room Nights: Total Visitor Days: 58 $64,862 $0 $0 $5,766 $37,034 $29,936 $0 $2,078 $2,199 $0 $0 $2,821 $13,298 11111„,1 „„11,,O: / $10,962 $75,825 $0 $0 $0 $3,352 $9,118 $6,700 $43,734 $5,060 $34,996 $0 $0 $2,078 $2,199 $0 $0 $4,462 $18,691 $0 $1,640 $5,393 '11,1 1111111111 $37,034 $0 $ 37,034 $37,034 0 $43,734 $43,734 $43,734 0 1,099 907 300 8,511 a' SEAT ► J sousiDE.. Event Impact Calculator Detail - Labor Day Cup - 10/17/2017 Event Name: Organization: Event Type: Start Date: End Date: Overnight Attendees: Day Attendees: Attendees Spending: Organizer Spending: Industry Lodging Transportation Food & Beverage Retail Recreation Space Rental Business Services Totals Key Parameters Key Metrics Labor Day Cup Business Sales (Direct): Starfire Sports Business Sales (Indirect): Sports: Youth Amateur Business Sales (Total): 08/31/2017 Jobs Supported (Direct): 09/05/2017 Jobs Supported (Indirect): 1575 Jobs Supported (Total): 7925 Local Tax: Net Direct Local Tax ROI: Est. Room Nights Demand: Sales by Source $1,834,610 Exhibitor Spending: $193,849 Total Event Spending: Business Sales by Sector Attendees Organizer Exhibitor $506,320 $223,801 $560,022 $358,365 $186,103 $0 $0 $1,834,610 $0* $7,920* $83,960* $0 $0 $42,923* $59,045* $193,849 * indicates that the calculator's model defaults were used $0 $339 $0 $0 $0 $0 $191 $530 $2,028,990 $1,152,511 $3,181,501 513 67 580 $79,882 $68,436 2,679 $530 $2,028,990 Total $506,320 $232,060 $643,983 $358,365 $186,103 $42,923 $59,237 $2,028,990 Iimr tJ i 1H1 IgPf hoi Business Sales Personal Income Jobs Supported Persons Annual FTEs Taxes And Assessments Federal Total State Total Direct $2,028,990 $719,550 513 21 $188,145 $125,094 Indirect/Induced $1,152,511 $366,549 Total $3,181,501 $1,086,099 67 580 3 24 $102,063 $24,455 $290,208 $149,548 59 Sales Income Bed Other _Local Total Sales Income Bed Per Room Charge Tourism District Restaurant Other Property Tax $115,012 $0 $0 $10,081 $68.436 $53,083 $0 $5,063 $5,358 $0 $0 $4,933 $23,249 $18,728 $133,741 $0 $0 $0 $5,726 $15,808 $11.446 $79.882 $8,644 $61,726 $0 $0 $5,063 $5,358 $0 $0 $7,735 $32,404 $0 $2,802 $9,155 Direct Direct Tax Receipts DMO Hosting Costs Direct ROI Net Present Value Direct ROI (%) Total Total Local Tax Receipts Total ROI Net Present Value Total ROI (%) PN r y Room Nights Sold: Room Pickup (block only): Peak Room Nights: Total Visitor Days: 60 111 1111 ,111 WIlpr,,1044 Ofallr,1161111K 11011 2,679 1,133 583 13,177 $68,436 $0 $68,436 $68,436 0 $79,882 $79,882 $79,882 0 SEATTLE ► J SOUTHSIDE 120 Event Impact Calculator Detail - Sounders FC Cup 2017 - 08/02/2017 JIM !r iu T 11111011111111111 11111111111111'I i n, l l Key Parameters Event Name: Sounders FC Cup 2017 Organization: Starfire Sports Event Type: Sports: Youth Amateur Start Date: 07/20/2017 End Date: 07/24/2017 Overnight Attendees: 1500 Day Attendees: 1500 Key Metrics Business Sales (Direct): Business Sales (Indirect): Business Sales (Total): Jobs Supported (Direct): Jobs Supported (Indirect): Jobs Supported (Total): Local Tax: Net Direct Local Tax ROI: Est. Room Nights Demand: $1,166,762 $650,155 $1,816,917 318 45 362 $47,872 $41,416 2,036 K riiiiirrIkoor" 1111111 11111 Attendees Spending: Organizer Spending: Industry Lodging Transportation Food & Beverage Retail Recreation Space Rental Business Services Totals 11 1111111 Business Sales Personal Income _lobs Supported Persons Annual FTEs Taxes And Assessments Federal Total State Total Sales by Source $1,068,847 $97,641 Exhibitor Spending: Total Event Spending: Business Sales by Sector Attendees Organizer Exhibitor $364,415 $112,985 $300,441 $196, 266 $94,739 $0 $0 $1,068,847 $0* $2,084* $43,490* $0 $0 $22,234* $29,832* $97,641 * indicates that the calculator's model defaults were used Direct $1,166,762 $408,113 318 12 $107.547 $72,668 $0 $176 $0 $0 $0 $0 $99 $275 Indirect/Induced $650,155 $210,270 45 2 $57,974 $13,795 $275 $1,166,762 Total $364,415 $115,245 $343,932 $196,266 $94,739 $22,234 $29,931 $1,166,762 Total $1,816,917 $618,383 362 14 5165.520 $86,463 61 Sales Income Bed Other Local Total Sa les Income Bed Per Room Charge Tourism District Restaurant Other Property Tax literte Mill Direct Direct Tax Receipts DMO Hosting Costs Direct ROI Net Present Value Direct ROI (%) Total Total Local Tax Receipts Total ROI Net Present Value Total ROI (%) nod momenta Room Nights Sold: Room Pickup (block only): Peak Room Nights: Total Visitor Days: 62 $66,870 $0 $0 $5,797 $41,416 $30,863 $0 $3,644 $4,072 $0 $0 $2,837 $13,369 : $10,565 $77,435 $0 $0 $0 $3,230 $9,028 $6.457 $47 872 $4,876 $35,739 $0 $0 $3,644 $4,072 $0 $0 $4,417 $18,506 $0 $1,581 $5,137 1111'"'ll'''11111111Pli11111001110001iiirior` 1511 $41,416 $0 $41,416 $41,416 0 $47,872 $47,872 $47,872 0 2,036 192 556 6,622 new City of Tukwi a Mayor's Office - David Cline, City Administrator Staff Memorandum Lodging Tax Advisory Committee Funding Request Name of Applicant: Renton Chamber of Commerce Address: 625 S. 4th St; Renton, WA; 98507 Total Funds Requested: $10,000 Allan Ekberg, Mayor About the Applicant: The Renton Chamber of Commerce serves businesses primarily within the City of Renton; however, many Tukwila businesses are also members of the Renton Chamber. Two years ago, the Renton of Chamber of Commerce launched the Renton Comic Con (RenCon) and has be growing the event for the last two years. For 2018, RenCon will be calling the Southcenter District of the Tukwila home, utilizing event space at the new Hotel Interurban and Westfield Southcenter. Funds Previously Awarded: None. First year requesting funding. Funding Request Narrative: The Renton Chamber of Commerce is requesting $10,000 from the City's lodging tax funds to support RenCon in the City of Tukwila on September 15 and September 16. RenCon is a regional convention that focuses on the nerd and geek culture of comic books, super heroes, science, cosplace, movies, celebrities and other related areas. RenCon will be held at the new Hotel Interurban and Wesfield Southcenter. This will be the third year of RenCon, which has continued to grow year over year in attendance. Forecast for this year 4,000 attendees, including 550 estimated room nights. The City will be considered a presenting sponsor for the event. A draft scope of work is attached. Staff Comments: Bringing RenCon to Tukwila allows the City to help develop and support a growing regional event. In its first two years of existence RenCon attendance has continued to grow. Besides the event weekend itself, Rencon has an existing and robust digital presence that the City can use to promote the City and build our overall brand. The event is consistent with the brand Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 63 Renton Chamber of Commerce May, 2018 Page 2 pillars established in our adopted brand from last year, specifically "family entertainment and "fun with friends." City of Tukwila Staff Recommendation to LTAC: Approval. Notes: Should LTAC and the City Council approve the request, a final scope of work, consistent with the approved application, will be finalized by the City and the applicant. Additionally, the applicant will need to enter a services contract with the City. 64 Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov DRAFT Rencon 2018 Scope of Services General: Rencon is a third -year event with a 2018 goal of bringing 5,000 attendees and creating 400+ hotel room nights for the weekend of its convention. This event will work in collaboration with Seattle Southside Chamber of Commerce, Seattle Southside Regional Tourism Authority, and the City of Tukwila. This scope of works lays out tracking, promotion, and marketing plans of the applying contractor. 1. Contractor will co -brand City of Tukwila as a presenting sponsor and will be included on all marketing and event promotion. 2. Contractor will use #Tukwila or equivalent name or tagging on all social media platforms no less than 6 times a month, leading up to event. 3. Contractor shall provide largest co -branded footprint of all sponsors on website, press kits, and posters/flyers. 4. Contractor will promote City of Tukwila in all community events leading up to event. This currently includes Renton River Days, Renton River Days Parade, Auburn City Parade, Stormtroopers Clean Up, Lake City Days Parade. 5. Contractor agrees to work with City of Tukwila and provide resources for any geek themed community events or publicity stunts. This could include police dance offs, cleanups, or any original promotion the city comes up with. 6. Contractor shall include City of Tukwila's brand in all Rencon related eblast and newsletters. This will include Renton Chamber of Commerce, Seattle South Side Chamber of Commerce, and any other Chambers that join this regional project. 7. In all collateral, press releases, medias (including tv and radio), etc. where a location is mentioned, contractor shall identify Rencon as being in "Tukwila." 8. Contractor shall provide the City of Tukwila a booth (if desired) at both event footprints. This would include the inline store at the mall and Hotel Interurban. 9. Contractor shall provide the City of Tukwila (if desired) 2 minute `spot' before the premiere of Rencon's film at AMC theatre screening. 10. Contractor shall provide 'a sponsored by' panel to the City of Tukwila. This panel will be of the cities choice. 11. If any VIP bags or bags for RenCon attendees Contractor shall allow the City of Tukwila to place an item in the bags. 12. No later than December 31, 2018 Contractor shall deliver to the City a report outlining the following metrics for the event: a. Total Number of Attendees. b. Total Number of Paid Attendees 65 c. Social Media Engagement d. Number of press mentions and articles for the event. e. The information outlined the table below, which is required to be collected under Washington State Law: As a direct result of your proposed tourism -related service, provide the actuals of: a. b. c. Overall attendance at your proposed event/activity/facility. Number of people who traveled fewer than 50 miles for your event/activity. Number of people who traveled more than 50 miles for your event/activity. d. Of the people who traveled more than 50 miles, the number of people who traveled from another country or state. e. Of the people who traveled more than 50 miles, the number of people who stayed overnight in Tukwila. f. g. Of the people staying overnight, the number of people who stayed in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. Number of paid lodging room nights resulting from your event/ activity/facility (for example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights) *Methodology (Descriptions below from the Lodging Tax Expenditure Reporting System Website): Direct Count: Actual count of visitors using methods such as paid admissions or registrations, clicker counts at entry points, vehicle counts or number of chairs filled. A direct count may also include information collected directly from businesses, such as hotels, restaurants or tour guides, likely to be affected by an event. Indirect Count: Estimate based on information related to the number of visitors such as raffle tickets sold, redeemed discount certificates, brochures handed out, police requirements for crowd control or visual estimates. Representative Survey: Information collected directly from individual visitors/participants. A representative survey is a highly structured data collection tool, based on a defined random sample of participants, and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Survey: Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants. Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate: Estimate produced by computing known information related to the event or location. For example, on jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). 66 Application to the City of Tukwila for Use of 2018 Lodging Tax Funds Event or Activity Name (if applicable): Renton City Comicon Amount of Lodging Tax Requested: $10,000 Applicant Organization: Federal Tax ID Number: Mailing Address: Renton Chamber of Commerce 91-0495211 625 S. 4t" St. Renton, WA, 98057 Primary Contact Name: Ben Andrews Primary Contact Phone: 253-861-7755 Primary Contact Email Address: bandrews@gorenton.com 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. 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) o 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 de ermw ed by the -944. 67 1) Describe your tourism -related activity or event. RenCon is a regional convention that focuses on the Nerd and Geek culture of comic books, super heroes, science, cosplay, movies, celebrities and related areas. 2) Tukwila's brand signature experience is built on the following themes: ❑ Family Entertainment ❑ Shopping ❑ Fun with Friends Describe how your event, activity, or festival builds on one or all the themes listed above: RenCon is a family centric event that has activities and events for the family no matter the age, size or ethnicity. There are activities and events for both kids as well as adults such as starters themes booths and activities for the kids and panels on science for the adults. As far as shopping, RenCon hosts over 50 vendors and artists who cater to the needs and wants of those looking to purchase their favorite comic book, geek tee shirt, drawing from the best artists and many more. A weekend filled with fun for friends and family is the foundational element of the event. Our cosplay events and community brings friends together from all parts of the region, state and across the country. 3) If an event, list the event name, date(s), and projected overall attendance. RenCon is slated to happen September 15th - 16th, 2018. 2016 Attendance: 1,500 2017 Attendance: 2,800 2018 Projected : 4,000 4) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? We have both attendees and tourists that attend for just one day and for the entire weekend. Many of the guest and attendees come for the two-day event. But we also get occupied room nights for the VIP party the night before on the 14tH 5) Describe why visitors will travel to Tukwila to attend your event/activity/facility. The event has been held in Renton for the last two years. We've found there is a hold subsection of this culture that find ECCC (Emerald City Comicon) too large and expensive. The geographic location of our attendees from 2017 is located below. Renton 37.22% Seattle 28.29% Tukwila 18.44% Kent 3.09% Tacoma 2.06% 68 Federal Way 1.60% Issaquah 1.48% Covington 1.37% Bellevue 1.14% Maple Valley 1.14% Auburn 0.91% Olympia 0.91% Fife 0.68% Everett 0.45% Marysville 0.45% Bremerton 0.34% Edmonds 0.34% 6) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Our target attendees are mostly between the ages of 16 - 45 but also extend outside those age brackets. They are those involved with the Geek and nerd Culture of science fiction, comic books, movies and the like. 7) Describe the prior success of your event/activity/facility in attracting tourists. This is our third year running Rencon and in the last two years we have doubled our attendance. Our first year we had 1,500 attendees. Last year we had over 3,000. We are hoping to hit between 5,000 to 6,000 attendees this year. 8) If this your first time holding the event/activity/facility provide background on why you think it will be successful. See above. 9) Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. Part of the fun of RenCon is the natural partnerships with local businesses. Our marketing team will reach out and procure hotel deals from Tukwila partners and post these on our website for registrants. The same will be done with partnering restaurants and retailers. Our program will have a list of partners and their discounts. Attendees will have the opportunity to take advantage of these deals outside of convention hours. 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 4 69 "Seattle"). RenCon's physical "office' location is located in the city of Renton. RenCon was developed in Renton and our roots are in Renton. We are investigating this year of surrounding areas such as Tukwila to expand our reach, find the best venues and engage a larger audience. b) If you are proposing a new activity, festival, or event will it be described as occurring in "Tukwila?" Yes it will be advertised as being held in Tukwila and hold to all branding requirements that the city may request. 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. 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 estimate 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. 6,000 4,000 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. 200 800 700 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) 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.? 5 70 13) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? We are also applying to Renton and the SSRTA for $10,000 apiece. 14) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in what amount? $10,000 15) What is the overall budget for your event/activity/facility? What percent of the budget are you requesting from the City of Tukwila? The over-all estimated budget will be $100,000. Out of that we are requesting $10,000 or 10% 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. 6 71 72 Community Development & Neighborhoods Minutes May 29, 2018 C. Lodging Tax Applications: Starfire Sports and Renton Chamber of Commerce Staff is seeking Council approval of two applications for lodging tax funds as recommended by *the Lodging Tax Advisory Committee on May 22, 2018. Starfire Sports is requesting $44,500 in lodging tax to support its leagues, events and tournaments with a goal of attracting visitors to the complex and the City of Tukwila. The scope of work is generally the same as last year's contract. The Renton Chamber of Commerce is requesting $10,000 in lodging tax to support the Renton City Comicon, which is located at the Hotel Interurban in Tukwila on September 15 and 16th, 2018. RenCon has continued to grow in attendance and attendance is forecasted to be 4,000 including 550 room nights. If funding is approved by the Council, the City will be a presenting sponsor for this event. UNANIMOUS APPROVAL. FORWARD TO JUNE 4, 2018 REGULAR CONSENT AGENDA. Adjourned 7:06 p.m. Committee Chair Approval Minutes by LH 73