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HomeMy WebLinkAboutReg 2019-09-03 Item 3C - Funding - Lodging Tax Funding: $5,000 for Seattle Sports Commission 2020 Regional Ready Conference / $10,000 for International Food Truck Roundup 2.0COUNCIL AGENDA SYNOPSIS Ixilicrl ;llcctinDate Prepw el b N irlor'o rePL')P Council rePieur 09/03/19 BJM ., r._c/.., Ki iL ITEM INFORMATION ITEMNo. S.r \I T Si'( )NS{ )Iz: B. MILES i OltiGIN \1..1C;I•:\'I).\ DATE: 9/3/19 •1( il:Nl) 1 III :NI TM ,L Review of Lodging Tax Funding Requests. Aloliorr Date 2/4/19 ❑ Resolzriioi lltg Dade ❑ Bid,-1avcn-ri Allg Dirk ❑ Ptib/c11ecnini All, Dale ❑ O16er ,l fig Date C.vI•l,(;O11Y Discussion Or Ordinance dltg Dale .,' 11:g Altg Dak Sh()NSOR ❑Council ❑1TR ❑DCD 0ll/h1rie ❑Fire ❑TV ❑P&R ❑Police DPir Court I�Alr)or SI'ONSU)tt's Review of two lodging tax funding requests from the City of Tukwila. Application #1 for, SuMMM-\RY $5,000, is to sponsor the "Region Ready Conference" hosted by the Seattle Sports Commission in 2020. Application #2, for $10,000, is to sponsor and support another "Food Truck Rally" with Westfield Southcenter before the end of 2019. The City's Lodging Tax Advisory Committee considered both request and recommends approval. R1i1 iiA i n 13Y ❑ C.O.W. N.ttg. ❑ Trans &Infrast.ructure DATE 8/27/19 ' CDN Comm ❑ Finance Comm. ❑ Public Safety- Comm. ❑ Parks Comm. ❑ Planning Comm. COMMT•1"[E CHATR: QUINN ❑ Arts Comm. RECOMMENDATIONS: S1'(.)NS()1t/.-ADMIN. COMNIi Mayor's Office/Economic Development vi lcl: Unanimous Approval; Forward to Consent Agenda COST IMPACT/ FUND SOURCE FxI'I:NICIrliltl? RI;C}U1I 1m AMOUNT BUDGETED APPROPRIATION REQUIRED $15,000 $840,000 $N/A Fund Source: 101 FUND, LODGING TAX Comments: State Law limits the use of these funds for tourism promotion. MTG. DATE RECORD OF COUNCIL ACTION 09/03/19 MTG. DATE i ATTACHMENTS 09/03/19 Informational Memorandum dated August 20, 2019 Lodging Tax Application, SSC Region Ready Conference Lodging Tax Application, International Food Truck Rally 2.0 Minutes from the 8/27 CDN Committee Meeting City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: August 20, 2019 SUBJECT: 2019 Lodging Tax Funding Request SSC Region Ready Conference and International Food Truck Rally 2.0 ISSUE Review of a lodging tax funding request from the City of Tukwila (the "City") to sponsor the 2020 Seattle Sports Commission Region Ready Conference and a request by the City to sponsor a Food Truck Rally in September. 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 promotion'. 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 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." INFORMATIONAL MEMO Page 2 Pending Applications Following its July 23 and August 27 meetings, LTAC has forward the following two applications from the City of Tukwila to the City Council. LTAC recommends the applications be funded. 1. City of Tukwila, Seattle Sports Commission (SSC) 2020 Regional Ready Conference ($5, 000) In January 2020 the Seattle Sports Commission, which is part of Visit Seattle, is hoping to bring the annual "Region Ready" Conference to the Hyatt in Renton. The Conference brings together leaders in the sports, hospitality, and government leaders to discuss issues with bringing in large events, such as a Super Bowl, World Cup, and/or Major League All -Star Game to the Puget Sound region. This is the 2nd year the event has been held. The 2019, event was held at the Hyatt Regency in Downtown Seattle. The conference brings in civic and business leaders to discuss how the region could host large sporting events, such as a Super Bowl, World Cup, or MLB All -Star Game. While this conference is not in Tukwila, it provides the City with a great branding and business development opportunity. The City is seen as a jurisdiction welcoming large events. 2. City of Tukwila, International Food Truck Rally 2.0 ($10,000) Note, LTAC is considering the funding request in the afternoon on August 27, prior to the CDN meeting. Should LTAC not recommend approval this application will be pulled from the evenings CDN agenda. In July, with LTAC funds, the City sponsored its first food truck rally in partnership with Westfield Southcenter and Culinex. Westfield Southcenter has expressed a desire to do one more event before Fall. There were many positive remarks from the July event and the July event was great proof of concept for the City, Westfield and Culinex. Lessons were learned from the event and the City and Westfield have ideas on how to make the next event even better. The date is tentatively scheduled for September 22 (subject to change), which would be the same day as the Rave Green Run. These two events occurring at the same time would provide great visitor experience for people in the Southcenter District. The funds will be allocated to a sponsorship agreement ($7,500) with Westfield Southcenter to support the operations and marketing of the event and additional funds for the City ($2,500) for marketing and the creation of banners for the event. The banners would not be date specific so that they could be used at future events. FINANCIAL IMPACT The total amount of funding requested from the lodging tax fund is $15,000. RECOMMENDATION Staff recommends that the City Council approve the funding request, as recommended by LTAC. Staff suggests that the application be placed on September 3 consent agenda. ATTACHMENTS A. City of Tukwila LTAC Application, SSC Region Ready Conference B. City of Tukwila LTAC Application, Food Truck Rally 2.0 Application to the City of Tukwila for Use of 2019 Lodging Tax Funds Updated after LTAC meeting to correct some incorrect information. The updated information was verbally communicated to LTAC at the July 23 meeting. Event or Activity Name (if applicable): City of Tukwila, 2020 Region Ready Conference 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 I am an authorized agent of the organization/agency applying for funding. I understand that: • I am proposing a tourism -related service for 2019. 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: 1) Describe your tourism -related activity or event. In January 2020 the Seattle Sports Commission (SSC), which is part of Visit Seattle, is hoping to bring the annual "Region Ready" Conference to the Hyatt in Renton. The Conference brings together leaders in the sports, hospitality, and government leaders to discuss issues with bringing in large events, such as a Super Bowl, World Cup, and/or Major League All -Star Game to the Puget Sound region. This is the 2nd year the event has been held. The 2019, event was held at the Hyatt Regency in Downtown Seattle. 2) If an event, list the event name, date(s), and projected overall attendance. January 2020, with an estimated attendance of 200 2,000. 3) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? Both. 4) Describe why visitors will travel to Tukwila to attend your event/activity/facility. This particular event is about helping Visit Seattle host a regional event in the south end. It's unlikely that this particular event will draw a considerable number of visitors to Tukwila. However, the overall goal of this conference is to build regional capacity for hosting large events, such as a Super Bowl or World Cup games. These events would have a considerable impact on Tukwila should the eventually be held in Seattle. 5) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Regional conference. 6) Describe the prior success of your event/activity/facility in attracting tourists 2020 will be the 2nd holding of the event. The first year was 2019, with about 1,500 people attending the event in Seattle. The 2019 event includes executive suite representatives from each of the major sports franchisees in Seattle and a keynote speech from Bob Stanton, majority owners of the Mariners. Visit Seattle has extensive experience hosting events. This will event will be a draw for people within Seattle and Bellevue. 7) If this your first time holding the event/activity/facility provide background on why you think it will be successful. No, SSC hosted the event last year and it was well received. 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. Visit Seattle and SSC has an extensive background in hosting events. Visit Seattle and SSC uses social media and direct emails to promote the 2019 event. 9) Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. N/A 10) Is the City able to use your digital and print media for collaborative marketing? The City will be considered as sponsor for the 2020 event and will be promoted on such by SSC for the event. 11) Describe how you will use the name, "Tukwila" in publications, promotions, and for your event? Tukwila will be considered a sponsor of the event. Again, this will event will be held in Renton, but Tukwila will be a main sponsor. 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. 2000 b. Number of people who will travel fewer than 50 miles for your event/activity. 1800 c. Number of people who will travel more than 50 miles for your event/activity. 209 d. Of the people who travel more than 50 miles, the number of people who will travel from another country or state. 0 e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. 0 f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 0 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 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. This event is not likely to generate hotel stays. This event is about supporting create the framework for the area to be able to host large sporting events. This large sporting events would have a considerable impact on generating heads in beds and feet on the streets. 14) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? Tukwila is not. SSC and Visit Seattle may apply for funds from the City of Renton. 15) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in what amount? This would be up to Visit Seattle. 16) What is the overall budget for your event/activity/facility? What percent of the budget are you requesting from the City of Tukwila? N/A. Tukwila is only being asked to be a sponsor for the event. 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 be moved elsewhere of Tukwila does not host. This event is a great opportunity for the Tukwila to promote itself to industry leaders in the sporting field. 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 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 Rally 2.0 Amount of Lodging Tax Requested: $10,000 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 I am an authorized agent of the organization/agency applying for funding. 1 understand that: • I am proposing a tourism -related service for 2019. 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: 1) Describe your tourism -related activity or event. International Food Truck Rally 2.0, tentatively scheduled for September of 2019. This event will celebrate the City's diversity and cultural with food trucks with foods and goodies from around the world. In July, in partnership with Westfield Southcenter and Culinex, the City sponsored its first food truck rally. Everyone agrees the initial food truck rally in July was a huge success. The City and Westfield Southcenter would like to do one more event in 2019 to build off the momentum. The City and Westfield are working to have Food Truck Rally 2.0 on the same day as the Sounder 5K race. This would provide a great day of events and activities focused in the Southcenter District. 2) If an event, list the event name, date(s), and projected overall attendance. Several hundred people attended the first event, with total food truck sales of about $30,000. Unfortunately, there was no counter at the gate to be able to track attendance. Weather permitting, we are hoping for 1,500 attendees and $50,000 in food truck sales. Combining the event with the Rave Green Run should help drive attendance. 3) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? The event is about building the overall tourism destination of Tukwila. The event will be marketed at people within 20 miles of the City and existing hotel guest in the City. The event is consistent with the adopted brand guidelines and recommendations prepared by Bill Baker. One of the recommendations was for the City to create events and activities that promote the City's multi -ethnic and diverse population. 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 every day to work, play, and stay. This event will cater to the people in South King County. At the July event the City did hear from several people who traveled more than 50 miles just to attend the event. Additionally, the event will be at Westfield Southcenter, the largest mall in the Pacific NW. Having the event at the mall will help draw more people to the activities. 5) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Within 20 miles of the City and people staying at area hotels. Additionally, the event may occur on the same day as the Rave Green run, which will help draw more people to the event. 6) Describe the prior success of your event/activity/facility in attracting tourists The City sponsored this same event in July, and it was well received by all involved. The City and Westfield learned from the event and will take the lessons learned to put on an improved event. Some things we are looking at for the September event: 1. Music. 2. Beer Garden (City funds will not be used for a beer garden). 3. Tents 4. Expanded games and activities. 7) If this your first time holding the event/activity/facility provide background on why you think it will be successful. No, this will the 2nd time the City has sponsored the food truck rally. The first event, held in July, was successful, despite limited promotion of the event. 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. • Digital promotion by the City's partners. • Cross promotion by the Sounders and Westfield Southcenter • Digital Displays in the Mall. • Paid Social Media Posts 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 marked 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. 1,500 b. Number of people who will travel fewer than 50 miles for your event/activity. 1,400 (does not include people staying at area hotels that might attend). c. Number of people who will travel more than 50 miles for your event/activity. 100 d. Of the people who travel more than 50 miles, the number of people who will travel from another country or state. 0 e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. 0 f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 0 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 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? Based upon the estimated attendances at the July Food Truck Rally 14) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? No. No. 15) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in what amount? 16) 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 $10,000. Budget is $7,500 to sponsor the event and would be paid to Westfield. This would cover actual marketing and operational costs for the event. The City would retain $2,500 to help promote the event and to purchase banners for the event. The banners would not be date a specific and could be used for other food truck events. 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 occur if the City does not sponsor the event. 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 DRAFT City of Tukwila International Food Truck Roundup 2.0 2019 Scope of Services As outlined the budget above, funds will be used for an 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. 4. Design and production of banners for the event. Note, the expectation is that other third parties will provide in -kind and/or cash support for the event and the event's marketing. City of Tukwila City Council Community Development & Neighborhoods Committee COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE Meeting Minutes August 27, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: De'Sean Quinn, Chair; Kathy Hougardy, Verna Seal Staff: David Cline, Minnie Dhaliwal, Jack Pace, Derek Speck, Craig Zellerhoff, Rick Still, Warren Orr, Laurel Humphrey, Meredith Sampson Guest: Patience Malaba, Housing Development Consortium CALL TO ORDER: Chair Quinn called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA Consensus existed to postpone item C, Board and Commission Appointment Process, until the next meeting. A. Lodging Tax Applications Staff is seeking Council approval of two applications from the City of Tukwila for lodging tax funds: $5,000 for the Seattle Sports Commission's 2020 Region Ready Conference and $10,000 for an International Food Truck Rally 2.0. Funds will be sued for sponsorship of these events and received approval of the Lodging Tax Advisory Committee. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 3, 2019 REGULAR CONSENT AGENDA. B. Ordinance & Resolution: House Bill 1406 Staff is seeking Council approval of legislation that will authorize retention of a portion of sales tax revenue to be used toward local investments in affordable housing, pursuant to House Bill 1406 approved in the 2019 legislative session. HB 1406 provides local governments a mechanism to address affordable housing serving those at or below 60% of area median income, with revenue available for: acquiring, rehabilitating or constructing affordable housing, operations and maintenance of new or supportive housing, or rental assistance for tenants. To begin collecting the revenue, the City Council must pass a resolution of intent, adopt an ordinance, and notify the Department of Revenue. Tukwila's expected revenue without a qualifying tax is $162,046, and approximately $324,093 with a qualifying tax (i.e. affordable housing levy, sales and use tax for housing and related services, sales tax for chemical dependency and mental health). The legislation prepared by staff will allow the City to move forward with the process and does not presume any decisions about the use of the funds. Councilmember Seal noted that she serves on the South King Housing & Homelessness Partners Executive Board, and discussions there are focused on the member cities pooling their HB 1406 revenues toward collective solutions.