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HomeMy WebLinkAboutPED 2020-01-13 COMPLETE AGENDA PACKETCity of Tukwila Planning & Economic Development Committee O Thomas McLeod, Chair O Kathy Hougardy O Zak Idan AGENDA MONDAY, JANUARY 13, 2020 — 5:30 PM HAZELNUT CONFERENCE ROOM (At east entrance of City Hall) Distribution: T. McLeod Mayor Ekberg K. Hougardy D. Cline Z. Idan R. Bianchi D. Quinn C. O'Flaherty A. Youn L. Humphrey Item Recommended Action Page 1. BUSINESS AGENDA a. Applications for lodging tax funds. a. Forward to 1/13 Special Pg.1 (1) City of Tukwila for $133,000: Meeting Consent Agenda. General operations (2) City of Tukwila for $39,000: Seattle Seawolves partnership Brandon Miles, Business Relations Manager b. Economic development update. b. Discussion only. Pg.37 Derek Speck, Economic Development Administrator 2. ANNOUNCEMENTS 3. MISCELLANEOUS Next Scheduled Meeting: February 3, 2020 SThe City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800(TukwilaCityClerk(�TukwilaWA.gov) for assistance. City of Tukwila _ Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: December 30, 2019 SUBJECT: 2020 Lodging Tax Funding Requests ISSUE Review of two lodging tax funding requests from the City of Tukwila (the "City") related to general operations and a partnership with the Seattle Seawolves. 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." z 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 December 19, 2019 meeting, LTAC has forward the following two applications from the City to the City Council for final action. LTAC recommends the applications be funded. 1. City of Tukwila, General Operations, ($133,000) The City is requesting funding for administrative, basic marketing, small event support, indirect cost allocation and other costs associated with the lodging tax fund and tourism promotion. The City uses these funds to support the lodging tax mission of bringing people to the City and marketing the City to visitors. The majority of funds being requested under this application are to support an existing .5 FTE in the Mayor's office. This is not a new position but is the existing Business Relations Manager position. Starting in 2019, this existing position funding was split between the lodging tax fund and general fund. In the past the position was funding 100% from the general fund. LTAC is continuing its support for the small grant program, which staff is working to promote in the community. 2. City of Tukwila, Seawolves Partnership ($39,000) The City is requesting funding to partner with the Seattle Seawolves in 2020. The partnership will focus on creating a better fan experience, bringing fans to the City, and branding the City as the center of rugby in the Pacific NW. Additional items of interest in the partnership include: • Location of all home matches will say "Tukwila" and will not reference Seattle as the geographical location. This will also apply to press releases issued by the team. This is the same practice Seattle Sounders FC follows regarding the team training at Starfire Sports. This helps the City's overall digital footprint. • Ten one -hour player appearance are included in the contract. The City has paid for player appearance in the past and did individual contracts for each appearance. This streamlines administration for both the City and the Seawolves. • Promotional billboard on Root Sports TV. • Two away match viewing parties at a location in Tukwila (location and dates TBD). • A Seawolves fan day in Tukwila (date TBD). FINANCIAL IMPACT The total amount of funding requested from the lodging tax fund is $172,000. There are sufficient funds available in the lodging tax fund to pay the expenditures. RECOMMENDATION Staff recommends that the City Council approve the funding request, as recommended by LTAC. Staff suggests that the application be placed on the January 13 Special City Council meeting. ATTACHMENTS A. City of Tukwila LTAC Application, General Operations B. City of Tukwila LTAC Application, Seawolves Partnership 2 Tip wily D Staff Memorandum Lodging Tax Advisory Committee Funding Request Name of Applicant: City of Tukwila, Office of Economic Development Address: 6200 Southcenter Blvd, Tukwila, WA 98188 Total Funds Requested: $133, 000 About the Applicant: The City of Tukwila is a non -charter City organized under the laws of the State of Washington. Founded in 1908, Tukwila is one of the oldest cities in King County. Since its founding, Tukwila has always been a community at the "crossroads." Tukwila lies at one of the busiest freeway interchanges in Washington State. The City has a small bedtime population of just under 20,000. During the day the City's population swells to over 150,000 people, with people coming to the City to work, shop, dine, stay in hotels, and to visit once in a life time experiences, such as the Museum of Flight or iFly. The City is one of the most diverse cities in the country. Over 70 languages are spoken in the Tukwila School District. Many well-known businesses are based in Tukwila, such as BECU, Westfield Southcenter, Seattle Seawolves, Seattle Sounders FC, Top Pot Donuts, Pop Gourmet, and the Sabey Corporation. The City has over 2,000 hotel rooms and over 100 restaurants. Funds Previously Awarded: Last year the City was awarded $127,135 for its general administration costs. Funding Request Narrative: The requested funds are to provide funding for certain administrative costs incurred for operations related to operations and administration of the lodging tax fund. Funds will be used for office supplies, .5 FTE (wages and benefits) professional services, training and education, memberships, indirect costs, other incidental costs and to support small events within the City. City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 3 ��Ti�kwifa Staff Comments: These funds help the City administrator the lodging tax funds, including managing and overseeing contracts with third parties. Development of a website consistent the adopted City brand is overdue. There does not exist a website or social media platforms promoting the Tukwila brand. This will provide that opportunity. Consistency with Six Year Financial Model: The Six Year Financial Model reviewed by LTAC had shown a total, estimated cost for this application of just over $124,000. This application is higher than expected largely because of the reclassification of the business relations manager. Additionally, staff had initially suggested only have $30,000 of discretionary spending in 2020 in the Six Year Model, but is now proposing to maintain the 2019 level of $35,000 City of Tukwila Staff Recommendation to LTAC: Approval Notes: None. City of Tukwila 6200 Southcenter Blvd. 11 Tukwila, WA 98188 Application to the City of Tukwila for Use of 2020 Lodging Tax Funds Event or Activity Name (if applicable): General Administration, Small Marketing, Small Event Support, Indirect Cost Reimbursement, and labor. Amount of Lodging Tax Requested: $133,000 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 2020. 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. • 14 ency *11 a required to submit a report documenting economic impact results in a forI 1 0 If rmined by the City. r° Signature: Datb: Brandon J. Miles 5 9 1) Describe your tourism -related activity or event. The City of Tukwila requests funding for 2020 for administration of the City's lodging tax fund, basic small marketing activities, office supplies, limited travel, professional services, small event support, reimbursement of the City's indirect charge, and labor (half time FTE). Funds for this application are used for general administration, staff time (half of an FTE), and related costs incurred by the City in managing its lodging tax program. In the past the funds for this application were used for the following activities intended to support the entire tourism program. • Office Supplies; • Professional Services; • Small Marketing Activities; • Small event support; • Training and Education; • Membership, Registration, and Subscriptions; • Parking, Travel, and Meals; and • Indirect Cost Allocation. • Small Event Support Last year LTAC approved $127,135 for the City's Administration application. Most of the increase for 2019 is related to cost increases in salary and benefits for the business relations manager position, which was reclassified by the City. The business relations manager is funded half by lodging tax and half by the City's general fund. This split is proposed to remain in 2020. The City is also requesting a charge for the City's indirect cost allocation. The lodging tax fund is one of several special revenue funds managed by the City of Tukwila. Under State Law, the City is permitted to charge special revenue funds for the indirect costs that are incurred by the general fund to support and maintain these special revenue funds. These costs include, but are not limited to, legal support, accounting, insurance, technology services, human services, and office administration. Activities that are needed to support the lodging fund. The City is also requesting small amount $8,000 for small sponsorship opportunities throughout the year that could help build the Tukwila brand and help enhance the tourist destination. For 2019, the City had success in using these funds to support marketing of an e-gaming event at Virtual Sports and supporting the food truck rallies at the Mall. In 2019, the City of Tukwila, Mayor's Office oversaw nearly $400,000 in lodging tax funds awarded to outside groups. Each award requires a contract and ongoing oversight by City staff. 2) If an event, list the event name, date(s), and projected overall attendance. 7 This request is not for a specific event. However, the application helps support the City's ability to use funds to support third parties and for the City to use lodging tax for possible events. Limited funds are also providing to help support small scale events and activities in the City. 3) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? Both, the City uses its lodging tax funds to support marketing activities for both day and overnight visitors. These are for activities either done by the City or by third parties. In the past the City has used its lodging tax funds to support Seattle Southside Regional Tourism Authority; events such as the Rock'N' Roll Marathon; the Backyard Wildlife Fair; and marketing activities at the Museum of Flight and Starfire Sports. Providing funding for outside organizations requires administrative support from several departments, including Finance, City Attorney, Technology Services, City Clerk, and Economic Development. Additionally, there are tourism related trainings, events, and memberships that the City would like to be part of. These activities help support the City's ongoing tourism efforts. 4) Describe why visitors will travel to Tukwila to attend your event/activity/facility. N/A The request is for funding to help support City's costs incurred by the City to administer the lodging tax fund and for expenses that are related to tourism. As discussed above, the lodging tax fund is used to support a variety of activities in the region, which bring both day and overnight visitors to the City. Costs associated, such as offices supplies, travel, parking, and education related to tourism and marketing should be charged to lodging tax and not the City's general fund. Having access to funds for small events allows the City to grow its "tourist infrastructure." 5) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). N/A. 6) Describe the prior success of your event/activity/facility in attracting tourists The City has a long history of success in using lodging tax funds to support a wide range of activities, including Seattle Southside Regional Tourism Authority, the Museum of Flight, Starfire Sports, and the Southwest King County Chamber of Commerce (now known as Seattle Southside Chamber of Commerce). 7) If this your first time holding the event/activity/facility provide background on why you think it will be successful. N/A 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. N/A 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? N/A 11) Describe how you will use the name, "Tukwila" in publications, promotions, and for your event? N/A 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. 0 b. Number of people who will travel fewer than 50 miles for your 0 event/activity. c. Number of people who will travel more than 50 miles for your 0 event/activity. d. Of the people who travel more than 50 miles, the number of people 0 who will travel from another country or state. e. Of the people who travel more than 50 miles, the number of people 0 who will stay overnight in Tukwila. f. Of the people staying overnight, the number of people who will stay in 0 PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 9 g. Number of paid lodging room nights resulting from your proposed 0 event/ activity/facility (for example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights) Special Note: The numbers provided above are direct estimates for this application. This application helps supports the City's efforts in funding activities by third parties. Combined, these third parties marketed the City to nearly 2 million people. For example, in 2018 Starfire Sports received $42,000 in lodging tax funds and nearly 1.2 million people visited the Starfire Sports campus. The ability to provide funding to these third parties could not occur without the City's ability to process contracts and provide payment, which is supported by this application. 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? As discussed above, the City uses its lodging tax funds to support a wide range of activities. In 2020, the City anticipates funding the City of Tukwila, SSRTA, the Museum of Flight, Starfire Sports, and other smaller activities. These funded activities have metrics, which the City will use for reporting purposes for this funding request. However, for reporting purposes the City report the metrics for these third party applications separately. Additionally, the City's efforts are intended to create a better tourist economy and encourage more organic visits to the City. These organic visitors are difficult to attract directly, but ultimately success can be tracked by increase sales at area businesses and increase revenue from hotels. No No 14) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? 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 requested funding is $133,000 The following is the proposed budget for the campaign (note funds in rows 1-11 might be moved between budget rows, but won't exceed the total amount requested). Column Budget Item 2019 2020 Notes Approved Budget 10 Proposed Budget 1. Office Supplies $750 $750 This is for general offices supplies and for domain names holds the City has purchased. 2. Professional $11,000 $11,000 These funds are used Services to assist with tourism promotion activities that might arise during the year. For example, in 2019 funds were used for the creation of a quick guide on the City's brand, additional collateral for the tourism brand, and marketing materials the City created for the food truck rodeo. 3. Training and $6,000 $6,000 These funds are Education intended for staff and elected officials who might desire or need education or training for tourism related activities. 4. Memberships, $8,000 $8,000 Memberships could Registrations, and include: subscriptions. . Seattle Chamber of Commerce • Seattle Sports Commission 11 • Washington Tourism Alliance • WFEA • Others 5. LTAC Meetings $250 $0.00 Staff tries to minimize expenses for LTAC meetings; however, in some cases we need to rent a room and/or provide food for meetings. 6. Parking, Travel $1,000 $1,000 This is for staff, City and Meals Councilmembers, and LTAC members who might want to attend tourism related meetings in the region. Last year this expense was charged to the general fund. 7. Small Event $8,000 $8,000 These funds are used Sponsorship to support small events and activities in the City. Some examples of use of the these funds in the past include supporting an e- gaming event at Virtual Sports, Seawolves player appearances, hosting a quarterly meeting of the Seattle Sports Commission in Seattle, 8. Sub -Total: $35,000 $34,750 12 9. Labor (wages) $55,547 $59,547 This is not a new position. Funding for 10. Labor (benefits) $17,847 $19,287 the Business Relations Manager will be split 50/50 between the general fund and lodging tax fund. The increase for 2020 is associated with a reclassification of the business relations manager and a cost living adjustment provided to all non - represented employees. 11. Sub -Total: $73,394 $78,834 12. Operations Total: $127,135 $133,000 All activities. It may be necessary to move funds between rows 1-11; however, the total expenditure will not exceed the total listed in row 12. 17) What will you cut from your proposal or do differently if full funding for your request is not available or recommended? Without funding it would jeopardize the City's ability to process third party requests for lodging tax funding. Additionally, the City might choose to require the lodging tax fund to "pay as it goes" for support provided by the City. This could result in higher charges being imposed to the lodging fund. 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, 13 Brandon.Miles@Tukwilawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 431-3684 Brandon.Miles@Tukwilawa.gov. Updated: December 17, 2019 14 DRAFT City of Tukwila General Administration 2020 Scope of Services As outlined the budget above, funds will be used for the following activities intended to support the operations of the lodging tax fund: 1. Purchase of office supplies; 2. Hiring of professional services, as needed (not project specific); 3. Training and Education for City staff, City elected officials, and LTAC members; 4. Membership, Registrations, and Subscriptions for the City; 5. Parking, Travel, and Meals 6. Indirect Cost Allocation 7. Staff costs (wages and labor) 8. Small Event Support and Sponsorship Note, funds may be moved between the categories, but the total expenditure will not exceed $133,000. 15 16 TL4kWi)A Staff Memorandum Lodging Tax Advisory Committee Fundingg Request Name of Applicant: City of Tukwila, Office of Economic Development Address: 6200 Southcenter Blvd, Tukwila, WA 98188 Total Funds Requested: $39,000 About the Applicant: The City of Tukwila is a non -charter City organized under the laws of the State of Washington. Founded in 1908, Tukwila is one of the oldest cities in King County. Since its founding, Tukwila has always been a community at the "crossroads." Tukwila lies at one of the busiest freeway interchanges in Washington State. The City has a small bedtime population of just under 20,000. During the day the City's population swells to over 150,000 people, with people coming to the City to work, shop, dine, stay in hotels, and to visit once in a life time experiences, such as the Museum of Flight or iFly. The City is one of the most diverse cities in the country. Over 70 languages are spoken in the Tukwila School District. Many well-known businesses are based in Tukwila, such as BECU, Westfield Southcenter, Seattle Seawolves, Seattle Sounders FC, Top Pot Donuts, Pop Gourmet, and the Sabey Corporation. The City has over 2,000 hotel rooms and over 100 restaurants. Funds Previously Awarded: This is a new application, for a new initiative. Funding Request Narrative: The City is requesting funding to partner with the Seattle Seawolves in 2020. The partnership will focus on creating a better fan experience, bringing fans to the City, and branding the City as the center of rugby in the Pacific NW. Specific work items are found in Exhibit "A" of the application. City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 I TKkwila Staff Comments: This application helps build Tukwila's brand as the epicenter of rugby in the Pacific NW. The Seawolves have a strong brand, that is consistent with the City's brand, both in its goal and target audience. Consistency with Six Year Financial Model: For 2020, the Six Year Financial Model shows the City spending $150,000 for major sponsorship, such as this. There will be sufficient funds remaining in the budget for other 2020 sponsorships. Additionally, there are sufficient funds in the lodging tax fund to support the City's request. City of Tukwila Staff Recommendation to LTAC: Approval Notes: None. City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 in Application to the City of Tukwila for Use of 2020 Lodging Tax Funds Event or Activity Name (if applicable): Seattle Seawolves Partnership Amount of Lodging Tax Requested: $39,000 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: I 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 2020. 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. • y a en _will be required to submit a report documenting economic impact results in a determined by the City. 'j f 1- 117 SignAture: Date: Brandon J. Miles 19 20 1) Describe your tourism -related activity or event. The City of Tukwila (the "City") is requesting lodging tax funds to partner with the Seattle Seawolves for the team's 2020 season. The Seattle Seawolves are a professional rugby team in Major League Rugby (MLR). The team trains and plays all of their home games at Starfire Sports in Tukwila. The Seawolves are the most successful and dominate team in MLR. The team has won the last two MLR Championships. MLR is growing, with three new teams coming online in 2020 and another new team coming online in 2021. Rugby as a whole is growing in popularity in the United States. Over the last two years, every MLR home game hosted by the Seawolves has sold out, with nearly 4,000 people attending each match. The Seawolves also have a very strong digital following and a growing brand identity in the Seattle metro region. For 2020, the City would like to partner with the Seawolves on initiatives that focus on three distinct areas: 1. Drive Heads in Beds. Tukwila hotels will be the official hotel for away teams for the 2020 season. Additionally, the City will work to drive hotel stay for fans visiting from out of town. 2. Drive More Traffic to Area Businesses. With nearly 4,000 people coming to every home games the City wants to work with the Seawolves to drive visitors to area restaurants and retail establishments. Additionally, the City wants to bring fans down to the City on non -home games for events. 3. Building the Tukwila Brand. The Seawolves have a strong and growing brand in the Seattle region. Additionally, the Seawolves have a very strong brand following by millennials and families, part of the City's overall target audience for branding. The City's internal brand essence is "Accessible Fun." The Seawolves games are easily "accessible fun." The game are reasonably priced, fun, and safe for families. The City also has an opportunity to build a rugby brand for the City. Like we have done for soccer, Tukwila could be known as the epicenter of soccer in the Pacific NW. Supporting the Seawolves can help attract more rugby matches to the City. Pages 9-10 of Exhibit "A" of the proposal outlines specifics of the partnership. 2) If an event, list the event name, date(s), and projected overall attendance. Multiple dates. The Seawolves have multiple home games at Starfire Stadium in Tukwila. Additionally, the City is going to work with the Seawolves to create several "fan days" in Tukwila. These would be days where fans can wear their Seawolves clothes and get deals and specials at Tukwila stores. The City is also going to work on creating viewing parties for away games. All of the events are intended to bring fans into the City. 21 3) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? Both, both directly and indirectly by building a rugby brand. 4) Describe why visitors will travel to Tukwila to attend your event/activity/facility. The Seawolves have been playing in Tukwila for the last two seasons. Each game is sold out, with nearly 4,000 rugby fans attending the games. Last year the City partnered with the Seawolves on two international matches. As part of these matches the City and Westfield Southcenter hosted a fan event before one of the games. This fan event was well attended. The Seawolves team has a loyal fan following. 5) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Regionally. Most fans are located within the Greater Seattle region. Home games may also produce a small number of traveling fans from throughout the United States. These homes games would also generate hotel stays by the away team. The Seawolves are also bringing in two exhibition games with a team from Canadian and one from New Zealand. Besides attendance at games, the City is also hoping to get branding exposure with the Seawolves. 6) Describe the prior success of your event/activity/facility in attracting tourists The Seawolves have shown the ability to bring fans to the City. Last year the City partnered with the Seawolves on two international matches. Both games were well attended. 7) If this your first time holding the event/activity/facility provide background on why you think it will be successful. N/A S) 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. The City will utilize the Seawolves digital and social media for promotion. The City will bring in additional partners and these partners would be required to also promote various events, such as the fan day event or viewing parties. 9) Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. Various ways, through digital media and by hosting specific events. 22 Yes. 10) Is the City able to use your digital and print media for collaborative marketing? 11) Describe how you will use the name, "Tukwila" in publications, promotions, and for your event? Yes. In fact, as part of this agreement the Seawolves will convert to most of their marketing utilizing the "Tukwila" name in lieu of saying "Seattle." 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. 40,000 b. Number of people who will travel fewer than 50 miles for your 32,000 event/activity. c. Number of people who will travel more than 50 miles for your 8,000 event/activity. d. Of the people who travel more than 50 miles, the number of people 2,000 who will travel from another country or state. e. Of the people who travel more than 50 miles, the number of people 400 who will stay overnight in Tukwila. f. Of the people staying overnight, the number of people who will stay in 400 PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. g. Number of paid lodging room nights resulting from your proposed 200 event/ activity/facility (for example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights) 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 upon a variety of factors, including fan attendance at games, fan attendance at special events, overnight stays by the away teams, etc. The numbers provided are for actual, estimated attendance and do not include media exposure. 14) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? 23 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? The total request is $39,000 for a variety of items. See page @ of the attached exhibit "A". 17) What will you cut from your proposal or do differently if full funding for your request is not available or recommended? If on funding is occurred the games would still occur in the City. However, the special events, such as the fan day likely would not. The City would also not get social media exposure. 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: December 17, 2019 24 Scope of Services See Exhibit "A" for DRAFT Services. The City and Seawolves will negotiate final agreement. 25 26 me a mom I . - F P4 T t la, :1fs •i _Ri• +.' rIAA"t • rt t I b �f }� fj. ,� y �9..' Y n i'� �� i ��• _J' , `Y �* ?• �'1 •�Clr�� j•!•r�Il ..y�.� a y7 o"*4r�, o fly• �J ,t. 1 1 r r�; • . a��►l v � •�� � 1 1- ••iil,��+ P =/ �". .•'.���' , � � '1 Crj,��: � �' ,,% f 1 y • r � r r 'r�. e� _ ire r `Y IT • ��P 1 C1 / 1 v �'' 6 {. �•. 1 7 'v� - , �• ? ! , q'+ 1 ;p•4. _ �/ ,_ •1 1 -��� "t G 1`� �i '! 4 � r .. n, t+�, �^ i,'1-t4 s�_ 1• �� . (fit 11r, i�� _ t � .�. ', .. t � Mr+� .l.i'�;Iiry,�j,Qti,1, �..,,. I ,�,r• iy ! ' ,` • "f'.r,r.,,,M,.d 4 SEAT I&E SEANlALVES 2019 - Defended the shield - 2018 & 2019 Major League Rugby Champions - Sold out every home game in our history - Lead MLR in all key partnership metrics At PROFESSIONAL RUGBY IN SEATrLE The Seattle Seawolves are one of seven (7) teams that launched the inaugural season of a brand-new professional rugby league in the U.S. — Major League Rugby — in 2018. The league expanded to nine (9) teams for the 2019 season and is expanding to twelve (12) teams for the 2020 season. Major League Rugby is an initiative driven by existing USA Rugby-mernber teams, in partnership with private investors who believe that American rugby can thrive at the highest levels: as a commercial enterprise; as an influential player on the international rugby scene; and as a participation sport at the youth and senior levels. Rugby's international appeal is saturating U.S. markets. Rugby's return to the Olympics drew 16.8 million new fans to the sport worldwide, and in the fall of 2019, Japan hosted the Rugby World Cup. PAGE 3 N MAJOR LEAGUE RUGBY TEAMS m S 45 6 SERYES 4D RU RUGBYATL W N Ll OUR MISSION The Seattle Seawolves strive to be a top tier team that supports the community and advances the growth of rugby both on and off the pitch. OUR PILLARS FAMILY TRADITION RESPECT INCLUSION � _r ARFIRE ST'ADMI MSEL�YIVIULV/ Fs 1 ' / - STATE-OF-THE-ARTDURASPINEPRO TIA FIELDTURFO / , 'RESS BOXWITH WI-FI AND SATELLITEACCESS - FULL SCOREBOARD WITH VIDEO CAPABILITIES r - 3,100 SEATS / 4, 0 0 0 SPECTATOR CAPACITY - TUKWILA, WA w w r �W4 W TUKIMLA PARTNERSHIP PROPOSAL Seawolves to provide: • Promotional use of Seawolves marks / images • Presenting Match Partner of 1/26/20 exhibition match vs. the Tasman Mako and one (1) Seawolves home regular season match at Starfire Stadium in Tukwila • Includes "presented by" logo exposure & tag on all match day communications as well as the opportunity to communicate "Stay and Play" messaging / coupon • Presenting partner of halftime activity (Think "Drop Kick Challenge brought to you by the City of Tukwila") at match • Seawolves will work with Tukwila on preferred date and match theme (i.e. Pride Match) for regular season match • Location of all home 2020 matches to reference "Tukwila" • All press releases and social media posts will say "Tukwila" and/or be tagged with Tukwila's official social media handle(s) as the location of 2020 home matches • All 2020 visiting teams will stay at a TBD Hotel in Tukwila • One (1) 15-second PA announcement w/ Tukwila logo on videoboard at each 2020 home match • Ten (10) one -hour Seawolves Player appearances in 2020 • Dates and times of player appearances to be mutually agreed upon • Seawolves Players to appear / participate in a Tukwila promotional video • Tukwila to provide production of promotional video • One (1) ROOT Sports TV billboard per home ROOT Sports broadcast • Includes 8 seconds of copy and logo exposure • Four (4) tickets to each 2020 home match • One (1) parking pass for each 2020 home match • Four (4) post -match VIP party passes to all 2020 home matches • Post -match VIP party includes meet and greet of Seawolves and visiting teams at Starfire Stadium TUKWILA PARTNERSHIP PROPOSAL (continued) Seawolves to provide (continued). - Two (2) 2020 away match viewing parties @ Tukwila bar or restaurant locations Tukwila location(s) to air Seawolves away match on multiple TVs with audio Seawolves to promote viewing party location(s) to fans via email and social and will provide: • Minimum of one (1) Seawolves Player • Seawolves Mascot (Rucky) • Seawolves gear for giveaways • MLR Championship Shield Seawolves fan day or days in Tukwila. Tukwila will line up mutually agreed upon businesses to offer discounts to fans wearing Seawolves gear. • Seawolves will promote fan day(s) via social and email on 1-2 occasions in 2020. City of Tukwila to provide: • $39,000 net cash (to be paid in two equal installments — 3/1/20 & 6/1/20) • Promotion of partnership (when available throughout the 2020 season) on digital billboard located @ South 180'h Street & West Valley Highway • Seawolves are happy to provide approved creative & copy • Opportunity for 1-2 Seawolves pop-up retail opportunities @ Southcenter Mall in 2020 • Seawolves to operate and provide all necessary staffing, gear, etc. • Introduction to Airmark Apartments contact for potential Seawolves Player lodging W W THANK YOU SHANE SKINNER Co -Founder & Director Shane SeattleSeawolves.com Chief Commercial Officer Iin(MeattleSeawolves.com Director of Partnerships Dillon(cDSeattleSeawolves.com City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning & Economic Development Committee FROM: Derek Speck, Economic Development Administrator CC: Mayor Ekberg DATE: January 8, 2020 SUBJECT: Economic Development Workplan for 2020 ISSUE Staff seeks the Committee's feedback on the City's economic development workplan for 2020. BACKGROUND The City's Economic Development Division of the Mayor's Office leads the City's business retention, attraction and marketing efforts, facilitates commercial real estate development, and serves as a general liaison to the business community. For 2020, the Economic Development Division's general fund budget is $319,082 which includes one and a half full-time positions, part-time staff/interns, and $42,000 for supplies and services. It is likely the City will also receive a $20,000 grant from the Port of Seattle. The Economic Development Division also manages the City's lodging tax program. The City uses the 1 % tax on certain qualifying overnight stays to promote tourism. For 2020, the lodging tax fund is budgeted to receive $803,000 in revenue and incur $695,498 in expenditures and conclude the year with a fund balance of $1,562,673. In addition to funding a regional tourism organization, local tourism organizations, and special events and marketing, lodging tax also pays for half of a full-time position. The City's current draft of the economic development division's workplan for 2020 is attached. DISCUSSION The City's current draft of the economic development division's workplan for 2020 is attached. FINANCIAL IMPACT This item is not requesting Council action and has no financial or budget impact. RECOMMENDATION Information and discussion only. ATTACHMENTS Draft Economic Development Workplan for 2020 37 w MAYORS OFFICE ® City of Tukwila ECONOMIC DEVELOPMENT DIVISION 2020 WORKPLAN - DRAFT 1-8-20 Tukwila Village 1 Support Tukwila Village Community Development Associates (non-profit) 2 Approve developer parking management plan 3 Approve estopple certificate of completion for Phase 2 Land Sales 1 Coordinate sale of city property to HealthPoint for health and wellness center 2 Coordinate sale of Longacres parcel 3 Coordinate sale of Newporter parcel Public Safety Plan 1 Coordinate sale of Traveler's Choice property to affected businesses 2 Support project management team with design and permit review Economic Development Plan 1 Create an economic development plan for Tukwila Lodging Tax 1 Coordinate committee including applications, contracts, and reporting Advisory 2 Monitor legislative issues Committee 3 Build upon business relationships Branding and 1 Lead development of branding and wayfinding plan Tourism 2 Build partnerships with strategic organizations (e.g. Sounders and Seawolves) Marketing 3 Facilitate and sponsor special events such as Rave Green Run, etc. 4 Facilitate art in Southcenter District 5 Facilitate Baker Boulevard for festivals and events 6 Facilitate improvement of Tukwila Pond Park 7 Develop strategy to grow entertainment attractions 8 Develop digital media strategy for visiting and living in the Southcenter District Policy 1 Manage City's regional transportation policy and advocacy 2 Participate in zoning and on street parking policy for Tukwila Int'I Boulevard Business Retention, 1 Marketing to attract business and development Expansion and 2 Networking to attract business and development Attraction 3 Respond to business inquiries 4 Support development ofTIB with branding, business development, etc. 5 Support maintenance of KentValleyWA.com and SoundsideAlliance.com 6 Provide permitting assistance for priority projects Page 1 of 2 39 �a yi City of Tukwila MAYORS OFFICE ECONOMIC DEVELOPMENT DIVISION 2020 WORKPLAN - DRAFT 1-8-20 Regional ED 1 Participate in Greater Seattle Partners, Chambers of Commerce, Organizations Seattle Sports Commission, Int'I Council of Shopping Centers, etc. Other 1 Coordinate development agreements (when ED is the lead) 2 Manage multi -family property tax exemption program 3 Coordinate Port of Seattle economic development grant Administrative 1 2 3 4 5 Participate on Administrative Team Staff Highline Forum Staff Soundside Alliance for Economic Development Staff Port of Seattle Roundtable (START) Staff Airport Budget Provisio Working Group Potential Projects 1 Adapt to economic development plan 2 Coordinate way to leverage business community relationships 3 Evaluate ZIP code effect on city tax revenue and image 4 Support analysis of sales tax 5 Participate in Green and Duwamish River related policies (e.g. levee) 6 Support analysis of affordable housing economics and policy 7 Expand branding related to business retention, expansion, and attraction 8 Support special event permit process to attract strategic festivals and events 9 Participate in regional economic development policy such as PSRC Note: The numbers are included for reference only and do not indicate priority or rank. 40 Page 2 of 2