HomeMy WebLinkAboutReg 2019-01-07 Item 7C - Funding - $30,000 Lodging Tax Funding for 2019 Americas Rugby Championship PromotionCOUNCIL AGENDA SY1VORSIS
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01/07/19
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ITEM INFORMATION
ITEM No.
7 .0 .
STAFF SPONSOR: BRANDON MILES
ORIGINAL AGENDA DATE: 1/07/19
AGENDA ITEm TITLE Approve Lodging Tax Funding Request: City of Tukwila ($30,000), International
Rugby Promotion
CATEGORY Discussion
Mtg Date 01/07/19
Z Motion
ANDate 01/07/19
E Resolution
AltDate
E Ordinance
ANDate
[j] Bid Award
AltgDate
El Public' Heariny
At Date
E Other
MtgDate
SPONSOR Council EMayor EHR EDCD 'inane Fire ETS E P -,R Police PW LCourt
Si) oNS0W S In March of 2019 the United States Rugby team will be playing two international matches
SUNINIARY at Starfire Sports in Tukwila. The first match on March 2 is against Uruguay and on March 8
the United States will play Canada . Given Washington State's proximity to Canada, it is
expected that a large number of Canadian fans will travel for the game. Staff is requesting
lodging tax funds in order to support sales and marketing efforts directed at Canadian fans.
The goal will be to drive business to area hotels, restaurants, and retailers.
RI WII N,(,'I 1) BY El C.O.W. Mtg. El CDN Comm E Finance Comm. [1] Public Safety Comm.
El Trans &Infrastructure E Arts Comm. [1] Parks Comm. E Planning Comm.
DATE: BRIEFING 12/11/18 COMMITTEE CHAIR: KRULLER
RECOMMENDATIONS:
SPoNsoR/ADmIN.
CommlynT
Mayor's Office, Economic Development
Permission received to go straight to regular City Council.
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$30,000 $113,586 $N/A
Fund Source: 101 FUND (LODGING TAX)
Comments: Per State Law, Lodging Tax funds can only be used for tourism promotion activities,
MTG. DATE
RECORD OF COUNCIL ACTION
01/07/19
MTG. DATE
ATTACHMENTS
01/07/19
Informational Memorandum dated 12/28/18
Lodging Tax Application
Minutes from the Community Development and Neighborhoods meeting of 12/11/18
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Tukwila City Council
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: December 28, 2018
SUBJECT: Lodging Tax Request, City of Tukwila
International Rugby Promotion
ISSUE
The City of Tukwila (the "City") is requesting $30,000 in lodging tax funds to promote the City and
bring in visitors as part of an international rugby campaign.
BACKGROUND
In March of 2019 the United States Rugby team will be playing two international matches at Starfire
Sports in Tukwila. The first match on March 2 is against Uruguay and on March 8 the United States will
play Canada'. Given Washington State's proximity to Canada, it is expected that a large number of
Canadian fans will travel for the game. Staff is requesting lodging tax funds in order to support sales
and marketing efforts directed at Canadian fans. The goal will be to drive business to area hotels,
restaurants, and retailers.
The City will partner with the Seattle Seawolves, Westfield Southcenter, Seattle Southside Regional
Tourism Authority, and others as part of this promotion.
About Lodging Tax Funds
The City collects a 1% lodging tax on certain qualifying overnight stays in paid accommodations
(hotel/motels/Airbnb) in the City. State law limits the use of these funds to tourism promotion'. The
City's Lodging Tax Advisory Committee (LTAC) reviews all requests, even by the City, for use of lodging
tax funds. LTAC then forwards the applications to the City Council for its review and consideration. If
LTAC does not recommend an application be funded, that application is not forwarded to the City
Council. The City Council may approve or deny any of the applications sent to it by the LTAC. The City
Council may also approve an application and increase or decrease the dollar amount awarded'.
1 Note, this game was originally scheduled to be played in British Columbia but had to be moved due to issues
with the stadium. The Canadian team will actually be the home game on March 8.
2 RCW 67.280 (6) defines "tourism promotion" as "...activities, operations, and expenditures designed to
increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for
the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism
promotion agencies; and funding the marketing of or the operation of special events and festivals designed to
attract tourists."
3 See Informal Opinion issued by the Washington State Attorney General's Office on August 17, 2016.
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INFORMATIONAL MEMO
Page 2
DISCUSSION
Staff is hoping that the promotion will generate between 2,000 and 3,000 room nights, plus additional
financial impacts at restaurants, entertainment establishments, and other retailers.
Besides the promotion to Canadians, the City also wants to help create a great fan experience for all
fans when they are here for the rugby matches. Last year the Seattle Seawolves had an amazing first
season and won the inaugural Major League Rugby Cup. These two international matches will help
build off the success of the Seawolves and help the City position itself as the epicenter of ruby in the
Pacific Northwest, as already are for soccer.
FINANCIAL IMPACT
The request is for $30,000 in lodging tax funds. There are sufficient funds in the account to cover the
requested amount and to fund other activities throughout the year.
RECOMMENDATION
Staff recommends approval of the funding request at the January 7, 2019 Regular Meeting. The LTAC
met on December 27, 2018 and recommends approval of the application.
Note, due to timing of this request and the holidays it was not possible to bring this application to
Community Development and Neighborhoods (CDN) or the Committee of the Whole. Staff did provide
a brief overview of the proposal and timing issues at the December 11, 2018 CDN meeting. CDN
expressed support for this moving forward without bringing the application to CDN.
ATTACHMENTS
• Lodging Tax Application
• Minutes from December 11 Community Development and Neighborhoods Committee
72 W:12019 Info MemosILTACRugby,doc
Application to the City of Tukwila for Use of 2019 Lodging Tax Funds
Event or Activity Name (if applicable):
International Rugby Promotion
Amount of Lodging Tax Requested:
$30,000 (NOT TO EXCEED)
Applicant Organization:
City of Tukwila
Federal Tax ID Number:
91-6001519
Mailing Address:
6200-Southcenter Blvd
Tukwila, WA 98188
Primary Contact Name:
Brandon 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:
o Tourism promotion or marketing.
o 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)
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 re ,uired-ts-submit a report documenting economic impact results in a
forma d d by the City.
Signature: Date:
December 26, 2018
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1) Describe your tourism -related activity or event.
In March Starfire Sports in Tukwila will host two international rugby matches, with the United
States playing Uruguay and Canada. Given Washington State's close proximity to Canada it is likely
Canadian fans will travel for the match versus Canada, scheduled for March 8. The City would like
to create a promotion campaign to promote the City to rugby fans, specifically Canadian fans. The
primary goal would be to generate room nights on both March 7 and March 8. Secondary benefits
will be to support restaurants, entertainment establishments, and retailers.
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:
The rugby promotion builds on all three pillars. The City of Tukwila is the home to the Seattle
Seawolves. Last year, there sold out games, attracted families from across the Puget Sound.
3) If an event, list the event name, date(s), and projected overall attendance.
The two rugby matches will likely bring in about 8,000 fans. The primary focus will on Canadian
fans. Canadian fans travel well for games involving Canadian teams, such as the Toronto Blue Jays.
The promotion hopes to bring in between 2,000 and 3,000 Canadian overnight fans. This not
include branding impressions created on people who see the ads but are unable to attend games.
4) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both?
The primary focus is on overnight visitors from Canada. Secondary promotion will also be directed
towards people in the Puget Sound.
5) Describe why visitors will travel to Tukwila to attend your event/activity/facility.
Inaugural season of the Seattle Seawolves, who play at Starfire Sports, was extremely successful
with all home games sold out. Canadian fans are know for traveling to support their teams,
especially in border states along the Canadian border.
6) Describe the geographic target of the visitors you hope to attract (locally, regionally,
nationally, and/or internationally).
Primary market are Canadians in BC and Alberta. Secondary markets will be residents in the Puget
Sound region.
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7) Describe the prior success of your event/activity/facility in attracting tourists.
The City has regularly hosted and sponsored events to attract tourists. Additionally, the City will
work with various partners on the promotion.
8) If this your first time holding the event/activity/facility provide background on why you think
it will be successful.
Yes. Because of the success of the Seawolves we are confident the promotion will attract visitors.
9) Describe how you will promote lodging establishments, restaurants, retailers, and
entertainment establishments in the City of Tukwila.
Promotion of area businesses will be done in a variety of ways:
1. Promotional video.
2. Digital media ads leading up to the matches.
3. Activation within the Southcenter area.
4. Earned Media
5. Direct Promotion by Teams Canada and USA.
6. Other.
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
b) If you are proposing a new activity, festival, or event will it be described as occurring in
"Tukwila?"
YES
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.
The "Tukwila" name will be used throughout the campaign.
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.)
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As a direct result of your proposed tourism -related service, provide an estimate of:
a.
Overall attendance at your proposed event/activity/facility.
8,000
b.
Number of people who will travel fewer than 50 miles for your
event/activity.
5,000
c.
Number of people who will travel more than 50 miles for your
event/activity.
3,000
d.
Of the people who travel more than 50 miles, the number of people
2,000-
who will travel from another country or state.
3,000
e.
Of the people who travel more than 50 miles, the number of people
2,000-
who will stay overnight in Tukwila.
3,000
f.
Of the people staying overnight, the number of people who will stay in
2,000-
PAID accommodations (hotel/motel/bed-breakfast) in Tukwila.
3,000
g.
Number of paid lodging room nights resulting from your proposed
1,500-
event/ activity/facility (for example: 25 paid rooms on Friday and 50
paid rooms on Saturday = 75 paid lodging room nights)
2,500
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 hotel stays partner hotels will be asked to track bookings. For actual attendance at the games
actual admission will be tracked through the City's admission tax reimbursement.
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?
The total budget is $4. 000 for the campaign. Reduced funds would involve reduce scope of services.
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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.
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Community Development & Neighborhoods Minutes December 11, 2018
C. Interlocal Agreement: South King County Housing & Homelessness Partnership
Staff is seeking Council approval of an interlocal agreement to form a South King County Housing
and Homelessness Partnership to cooperatively address affordable housing and homelessness.
Tukwila's share is estimated to be $10,500 per year, but the final amount will depend on the
number of participating agencies. The other jurisdictions proposing participation are Auburn,
Burien, Covington, Kent, Normandy Park, Renton, King County, and King County Housing
Authority. Des Moines, Federal Way, and Maple Valley are still considering participation. Staff will
continue to work collaboratively to create a final version of the interlocal agreement, which
should be ready for Committee of the Whole review. Staff supports a 2-year commitment to be
in alignment with the budget cycle. Councilmembers discussed the proposal and expressed
general support for the partnership. The Committee requested that the City's comments on the
draft include City Council representation on governance. FORWARD TO JANUARY 14, 2019
COMMITTEE OF THE WHOLE.
D. Sound Transit Policy Options
Staff briefed the Committee on several issues related to Sound Transit facilities and related
service in the City, including the Development Agreement for the Link Light Rail, parking, 1-405
Bus Rapid Transit (BRT), and transit -oriented development near the Tukwila International
Boulevard station. If Sound Transit decides to locate the BRT station at the TIB station, Tukwila
could enforce the Settlement Agreement for more parking or redesign the site to facilitate more
transit -oriented development. Increasing parking may not provide a direct benefit to Tukwila
residents since it is a regional parking facility. The City could also advocate for advancing the
opening of the Boeing Access Road infill station, ask for more parking at the Sounder station,
partner on the Strander Boulevard extension project, or other alternatives. Staff is seeking
Council direction on what solutions should be prioritized when working with Sound Transit.
Staff will continue to engage the Council on this in 2019 and Chair Kruller suggested working
with the incoming Council President on the best approach. DISCUSSION ONLY.
III. MISCELLANEOUS
Chair Kruller referenced a proposed Renton to Seattle water taxi and mentioned that the
developer is also interested in a Southcenter area circulator. She passed on the City's economic
development staff and Seattle Southside Chamber of Commerce contacts.
Staff mentioned that Starfire Sports is hosting Rugby Canada in March as part of the 2019
Americas Rugby Championship and the City could create a marketing plan targeted at the
visiting Canadian fans. The City will be submitting an application for lodging tax funds and is
seeking support to go directly to the full Council in January due to timing issues. The
Committee agreed.
Staff noted that the Economic Development Plan will be coming through Committee in 2019,
starting with a draft outreach plan. The ED intern is currently doing background work to
prepare.
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