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HomeMy WebLinkAboutReg 2019-05-20 Item 4I - Funding - $5,000 Lodging Tax Funding for International Food Truck RoundupCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mc2ior's review Coattail 05/20/19 BIM rAvo Mi 1 ITEM INFORMATION ITEM No. 4.1. STAFF SFoNsoR: B. MILES ORIGINAL A(31,;N1);\ DATF: 05/20/19 AGENDA ITEM TITLE Review of a lodging tax funding request from the City of Tukwila for $5,000 to support an International Food Truck Roundup. c,\TEGoRy E Discussion MtgDate FI Motion 5/20/19 ("Resolution bug Date Ei Ordinance Ally Date Bid Award A/1,g Date E Public t fearing Alij; Date jII Other 11.1gDale ANDate SPONSOR Council ZMayor I IR E DCD Finance Fire E TS ER&E. Police PIV Court SPONSOR'S The LTAC has forwarded applications from the City of Tukwila for 2019 LTAC funding. The SUMMARY total funds requested are $5,000. The funds will be used to support the operations and marketing of an international food truck event in the city. RkvilAVI1) HY El C.O.W. Mtg. Trans &Infrastructure DATE: 05/14/2019 i4 CDN Comm El Finance Comm. 0 Public Safety Comm. 0 Parks Comm. 111 Planning Comm. COMMITTEE CHAIR: QUINN Arts Comm. RECOMMENDATIONS: SPoNsoR/ADNtIN. COMMITFEE Mayor's Office/Economic Development Unanimous Approval; Forward to Consent Agenda COST IMPACT / FUND SOURCE EXPENDITURE, REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $5,000 $840,000 $N/A Fund Source: 101 FUND, LODGING TAX Comments: State Law limits the use of these funds for tourism promotion. SSRTA is a two year request. MTG. DATE RECORD OF COUNCIL ACTION 05/20/19 MTG. DATE ATTACHMENTS 05/20/19 Informational Memorandum dated 5/7/2019 City of Tukwila Application for Lodging Tax Funds Minutes from the CDN Committee meeting of 05/14/19 137 138 ILA IA, ViA\ City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: May 7, 2019 SUBJECT: 2019 Lodging Tax Funding Request International Food Truck Roundup1 ISSUE Review of a lodging tax funding request from the City of Tukwila (the "City") for $5,000 to support an International Food Truck Roundup. BACKGROUND 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 promotion2. There is currently just over $1 million in lodging tax funds available for use. 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 awarded'. The City accepts applications on a rolling basis, with the LTAC reviewing requests monthly. 1 This is a working name only. 2 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." 3 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." 139 INFORMATIONAL MEMO Page 2 Pending Applications Following its April 23, 2019 meeting, LTAC has forward an application from City of Tukwila's Office of Economic Development. 1. City of Tukwila, International Food Truck Roundup ($5,000) In 2017 the City Council adopted the "Tukwila Brand Guidelines and Strategy (Guidelines)" to help the City focus its marketing and branding strategies to help with tourism development in the City. As part of the development of the Guidelines the City conducted a destination audit to determine the City's strengths and weaknesses for attracting tourist to the City. One of the biggest weakness found in the audit was a lack of event and activities targeted at tourists. Tentatively scheduled for July 214, the International Food Truck Roundup will feature food trucks with food and goodies from throughout the world. The City has partnered with Westfield Southcenter and Culinex, a local Tukwila business to develop and host the event. This will not be an event put on by the City; however, the City will be a sponsor and help with marketing and operations. Hopefully, this event will be the inaugural event, and this will become an annual event. The event also provides an opportunity for the City to engage food truck operators and work with them to bring their trucks into the City on a more regular basis, outside of just doing events. FINANCIAL IMPACT The total amount of funding requested from the lodging tax fund is $5,000. RECOMMENDATION Staff recommends that the City Council approve the funding request, as recommended by LTAC. Staff suggests that the application be placed on May 20, 2019 consent agenda. ATTACHMENTS A. City of Tukwila LTAC Application, International Food Truck Roundup 140 4 The date is subject to change. Application to the City of Tukwila for Use of 2019 Lodging Tax Funds Event or Activity Name (if applicable): City of Tukwila, International Food Truck Roundup Amount of Lodging Tax Requested: $5,000 Applicant Organization: City of Tukwila, Mayor's Office Federal Tax ID Number: 91-6001519 Mailing Address: 6200 Southcenter Blvd Tukwila, WA 98188 Primary Contact Name: Brandon J. Miles Primary Contact Phone: (206) 431-3684 Primary Contact Email Address: Brandon.Miles@Tukwilawa.gov Check all the service categories that apply to this application: ✓ Tourism promotion or marketing. ✓ Operation of a special event or festival designed to attract tourists. Operation of a tourism -related facility owned or operated by a non-profit organization. Operation and/or capital costs of a tourism -related facility owned by a municipality or a public facilities district. Check which one of the following applies to your agency: Non -Profit (Note: Attach a copy of your current non-profit corporate registration from the Washington Secretary of State Office) ✓ Municipality Note: January 26, 2018: Application updated following Lodging Tax Advisory Committee meeting on January 23, 2018. Changes are shown and reflect the approved request from the Committee. 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. Signature: Printed Name Date: 141 1) Describe your tourism -related activity or event. Tukwila Food Truck Roundup (working name) will be a celebration of the city's diversity and cultural. This event will occur in summer or early fall on a Friday or Saturday evening. The exact date is still being explored and researched. Initial discussions are for the rodeo to be at Westfield Southcenter. However, if this venue is not able to be secured other venues in the City will be examined, which could include Baker Blvd or Tukwila Village. Secondary activities may include a stage for music. 2) If an event, list the event name, date(s), and projected overall attendance. A Friday or Saturday evening in the summer or early fall. Total attendance, 500-1000 people. It is hoped that this will be the first of many future food truck events in the City. With other possible events being evening events or small daytime evens. 3) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? This event is about building the overall tourism destination of Tukwila. This event will be marketed at people within 20 miles of the City and existing hotels guests in the City. The event is consistent with he adopted brand guidelines and recommendations prepare by Bill Baker. One of the recommendations was for the City create events and activities that promote the City's multi -ethnic and diversity population. This event will hopefully do just that. 4) Describe why visitors will travel to Tukwila to attend your event/activity/facility. Tukwila is conveniently located at the intersections of 1-405 and 1-5. Over 150,000 people come to the City everyday to work, play, and stay. This event will cater to the people in the south King County area. Food truck gathering, such as this, are extremely popular. 5) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). With 20 miles of the City and people staying at Southcenter District hotels. 6) Describe the prior success of your event/activity/facility in attracting tourists The City has partnered with Cullinex for this event. Cullinex operates a large commercial kitchen operation in the Southcenter and has access to food trucks. It's the City intention to have Cullinex manage securing food trucks for the event. The City has experience operating large events. However, the City will not be directly putting on this event. 7) If this your first time holding the event/activity/facility provide background on why you think it will be successful. 142 For the City yes, Cullinex has experience managing food truck events. 8) Describe the media strategy you employ to promote your event/activity/facility to attract overnight and/or day tourists? Please list any digital or print media (newsletters, e-blasts, social media, etc.) your agency uses or intends to use to promote your event/activity/facility. If the event is at the Mall, the City intends to have Westfield take the lead in marketing the event. Local media will be used to market the event. The City will also work with area hotels and SSRTA to ensure that hotel guests are aware of the event. 9) Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. This event will cater to food trucks that work within and near Tukwila. 10) Is the City able to use your digital and print media for collaborative marketing? N/A 11) Describe how you will use the name, "Tukwila" in publications, promotions, and for your event? Tukwila will be in the name of the event and the location will be marketed as being in "Tukwila." 12) Measurements and Metrics (Note: You will be required to report these metrics as part of the close out of the agreement between your organization and the City.) As a direct result of your proposed tourism -related service, provide an estimate of: a. Overall attendance at your proposed event/activity/facility. 500- 1000 b. Number of people who will travel fewer than 50 miles for your event/activity. 800 c. Number of people who will travel more than 50 miles for your event/activity. 200 (existing hotel guests in the area). d. Of the people who travel more than 50 miles, the number of people who will travel from another country or state. 25 (existing 143 hotel guests in the area). e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. 200 f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 200 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) 0 (no direct hotel bookings as a result of the event. The event will cater to hotel guess in the area. 13) What methodologies did you use to calculate the estimates and what methodologies will you use to track outcomes, such as total participants, estimated visitor spending, etc? These are estimates based on similar type events in the area. 14) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? No. 15) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in what amount? No. 16) What is the overall budget for your event/activity/facility? What percent of the budget are you requesting from the City of Tukwila? 144 Total requested funding is $5,000 for the City to help support marketing and operations at the event. It is envisioned that other third parties will help provide in -kind operations. 17) What will you cut from your proposal or do differently if full funding for your request is not available or recommended? The event will not likely occur. Applications are considered on a rolling basis. Please contact staff to discuss the process for having the application reviewed by the City's Lodging Tax Advisory Committee. Completed applications should be submitted to: Lodging Tax Advisory Committee c/o Brandon Miles City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 Or, Brandon.Miles@Tukwilawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 431-3684 Brandon.Miles@Tukwilawa.gov. Updated: March 21, 2017 145 146 DRAFT City of Tukwila International Food Truck Roundup 2019 Scope of Services As outlined the budget above, funds will be used for a International Food Truck Roundup. Funds will be used as followed: 1. Support marketing and advertising for the event; 2. Support for event's operation; and 3. Other costs needed for the event to occur. Note, the expectation is that other third parties will provide in -kind and/or cash support for the event and the event's marketing. 147 148 City of Tukwila City Council Community Development & Neighborhoods Committee COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE Meeting Minutes May 14, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Verna Seal Staff: David Cline, Jack Pace, Stacy Hansen, Nora Gierloff, Derek Speck, Brandon Miles, Laurel Humphrey CALL TO ORDER: Chair Quinn called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Community Development Block Grant Application: Minor Home Repair Program Staff is seeking Council approval to apply to King County requesting $100,000 in Community Development Block Grant funds for the 2020 Minor Home Repair Program. The City of Tukwila Human Services Department will continue to serve as fiscal administrator for the cities of Tukwila, SeaTac, Des Moines and Covington. If granted, each City will be designated $24,000 in construction dollars. In 2018, contractors served 15 unduplicated households in Tukwila. Between serving as the fiscal agent and administering the Tukwila program, the Human Services Coordinator spends 30% total time on the Minor Home Repair Program. UNANIMOUS APPROVAL. FORWARD TO MAY 20, 2018 REGULAR CONSENT AGENDA. B. Ordinance: Renewing a Moratorium in the Tukwila International Boulevard Study Area Staff is seeking Council approval of an ordinance that would extend the moratorium on auto -oriented uses and hotels and motels in the Tukwila International Boulevard Study Area for an additional six months. This extension will allow for discussion on options, mitigation, budget, and timeline for coordinating street improvements and zoning updates. Chair Quinn asked that the memo be expanded with greater detail about past actions as well as the outcomes that staff intends to develop during the moratorium period. UNANIMOUS APPROVAL. FORWARD TO MAY 28, 2019 COMMITTEE OF THE WHOLE. C. Lodging Tax Application: International Food Truck Roundup Staff is seeking Council approval of a lodging tax funding request from the City of Tukwila for $5,000 to support an International Food Truck Roundup that is tentatively scheduled for July 21. This event will be cosponsored by Westfield Southcenter and Culinex and will feature food trucks offering a variety of international cuisines. While not a City event, lodging tax 149 Community Development & Neighborhoods Minutes May14, 2019 funds will be used to help with marketing and operations. Chair Quinn asked that other areas of the city more accessible to residents be considered for future food truck events. UNANIMOUS APPROVAL. FORWARD TO MAY 20, 2019 REGULAR CONSENT AGENDA. D. Housing Issues Staff provided an overview of the status of housing issues, including recent housing developments, future actions, and completed actions. The main options for increasing the supply of affordable housing include regional policy action, direct and indirect funding, lowering development costs, inclusionary/incentive zoning, and direct housing development and preservation. The City is hosting the Department of Commerce on May 29 for its "Short Course on Affordable Housing," which will provide additional context and information for the Council to consider as it moves forward with policy decisions. Councilmember Robertson noted that the required 400 sf of recreation space may be prohibitive to developers but important for low income children. Chair Quinn pointed out that conversation futures tax dollars can be leveraged to purchase open space and developers should be included in that approach. Councilmember Robertson would like the committee to discuss boarding houses and short-term rentals. Staff noted that these would be part of the residential definitions code update that is with the Planning Commission, but the item has been postponed due to the shoreline and critical areas updates and has not been rescheduled yet. Chair Quinn stated that the Committee would review these issues with a comprehensive focus and with a goal of surfacing intended and unintended consequences of policy decisions. Councilmember Seal agreed. Chair Quinn also noted the importance of educating the community about the true definition of housing affordability as well as the link between housing density and climate change. Staff will provide the Committee with a briefing of the residential definitions item including information on the concepts that were challenging for the Planning Commission to resolve. DISCUSSION ONLY. E. Grant Application: Economic Development Work Staff is planning to apply for a Port of Seattle grant for economic development work. Tukwila is eligible to receive up to $19,800 and must provide a 50% match, half of which can be met with in -kind resources. Staff will apply for the full amount, $7,000 of which would be used for a business recruitment website and the remainder toward the economic development plan. If the application is successful, a future budget adjustment will be necessary to reflect the new revenue. The City's matching funds are already included in the Economic Development Division's budget and there be no impact to the General Fund. DISCUSSION ONLY. 150