HomeMy WebLinkAboutCOW 2020-07-13 Item 3D - LTAC - Lodging Tax Funding Applications: Seattle Southside Chamber of Commerce, Seattle Southside Regional Tourism Authority and City of TukwilaCOUNCIL AGENDA SYNOPSIS
Meeting Date
Prepared by
Mayors review
Council revien'
7/13/20
BJM
7/20/20
BJM
ITEM INFORMATION
ITEM NO.
3.D.
STAFF SPONSOR: B. MILES
ORIGINAL AGENDA DATE: 7/13/20
AGENDA ITEM TITLE Lodging Tax Funding Requests
CATEGORY ® Discussion
Mtg Date 07/13/20
® Motion
Mtg Date 7/20/20
❑ Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
SPONSOR ❑ Council ® Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ TV ❑ P&R ❑ Police ❑ PTA
SPONSOR'S Review of a lodging tax funding request from Seattle Southside Chamber of Commerce,
SUMMARY Seattle Southside Regional Tourism Authority, and Office of Economic Development for the
City of Tukwila.
REVIEWED BY ❑ Trans&infrastructure ❑ CommunitySvs/Safety ❑ l'inance Com ® Planning/Economic Dev.
® LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 6/12/20 LTAC, 7/6/20 PED COMN11TTEE CHAIR: MCLEOD
RECOMMENDATIONS:
SPONSOR/ADbIIN. Mayor's Office, Economic Development
COMMITTEE Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$213,375 $N/A N/A
Fund Source: LODGING TAX FUND, 101 FUND, TOURISM FUNDING
Comments: There are sufficient funds; however, a budget amendment may be needed and staff is working with Finance.
MTG. DATE
RECORD OF COUNCIL ACTION
07/13/20
MTG. DATE
ATTACHMENTS
07/13/20
Informational Memorandum, dated June 30, 2020.
LTAC Application, Seattle Southside Chamber of Commerce, "Southside Promise."
LTAC Application, SSRTA, "Emergency Funding Request for Meeting Campaign"
LTAC Application, City of Tukwila, Office of Economic Development, "Experience
Lodging Tax Six -Year Financial Model
2019/2020 Agreement between the City of Tukwila and Seattle Southside Tourism
Tourism Promotion Agreement
SSRTA's Revised Budget
Minutes from the 7/6 PED Committee meeting
07/20/20
29
30
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Economic Development
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: June 30, 2020
SUBJECT: Lodging Tax Funding Requests
ISSUE
Review of a lodging tax funding request from Seattle Southside Chamber of Commerce, Seattle
Southside Regional Tourism Authority, and Office of Economic Development for the City of
Tukwila.
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.
Pending Applications
Following its June 12, 2020 meeting, LTAC recommended approval of Seattle Southside
Chamber of Commerce, Seattle Southside Regional Tourism Authority, and the City of Tukwila,
Office of Economic Development.
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."
31
INFORMATIONAL MEMO
Page 2
1. Seattle Southside Chamber of Commerce. "Southside Promise." ($50.000
Overview
Seattle Southside Chamber of Commerce (the "Chamber") is requesting $50,000 in lodging tax
funds to support its Southside Promise initiative. The Southside Promise is directly related to the
COVID-19 pandemic and its associated economic impact. The Southside Promise will provide
tools and resources to help businesses reopen successfully after weathering the human and
economic impacts of COVID-19. Many of Tukwila's hospitality businesses, such as retailers,
restaurants, and hotels have been severely hit by the pandemic and the Stay Home, Stay
Healthy Order.
The Chamber will provide business toolkits, signs, marketing materials, and robust marketing
and promotion. The overall goal is to help to get visitors to come back to businesses, the City
and the region, while remaining committed to the goals of reducing COVID-19 transmission.
Staff Analysis
When the COVID-19 pandemic hit, the Chamber immediately launched its Southside Mitigation
and Recovery Taskforce (SMART). SMART is helping to identify a path forward for businesses
impacted by COVID-19. SMART has held over a dozen webinars for businesses impacted by
COVID-19. The Chamber's work on SMART has provided invaluable resources to south King
County businesses.
The Chamber is primarily funded by businesses sponsorships and entry admission into events.
As a result of COVID-19 many businesses, which are facing disruption, have chosen not to
provide sponsorship to the Chamber. In addition, the Chamber has had to cancel many in
person events which reduced revenue to the Chamber. All of this is occurring at the same time
more businesses are turning the Chamber for assistance.
Tukwila depends on visitors to support it retail and admission tax base. Prior to COVID-19 an
estimated 150,000 people visited the City to work, shop, dine, play, and stay. With the
Governor's Stay Home, Stay Health Order the City's visitor economy has been drastically
impacted. The Chamber's Southside Promise is one of many steps the City can take to hep
bring visitors back to the City. Communities throughout the nation are launching similar efforts to
help businesses reopen safely3.
LTAC Recommendation on Application: Do Fund
Staff Recommendation on Application: Do Fund
2. Seattle Southside Regional Tourism Authority, Emergency Funding for Meetings
Marketing, ($195,000).
Seattle Southside Regional Tourism Authority (SSRTA) is requesting $195,000 in lodging tax
funds to deploy a meeting marketing recovery strategy immediately following relaxation of the
Stay Home, Stay Healthy order in order to rebuild business and economic vitality as soon as
possible in the Seattle Southside region. SSRTA notes that this is a "vital component to the
RTA's two -pronged tourism recover plan for a hyper -targeted, audience -central approach, with
the other being a focus on the region -wide leisure audience. The total campaign cost is
32 1 A great example is the City of Everett, (everettforeverett.com/safeopening).
INFORMATIONAL MEMO
Page 3
$650,000 and is split 70/30 between SeaTac (70%) and Tukwila (30%). The City of Des Moines
has not been asked to contribute to the campaign. A review of hotel meeting space in Seattle
Southside shows that 73.60% of hotel meeting space is located in the City of SeaTac; 21.58% is
located in the City of Tukwila; and 4.84% is located in the City of Des Moines. Additional
meeting space, outside of hotels, can be found in all three cities.
Of the $650,000 requested between the Cities of SeaTac and Tukwila, $250,000 will be used for
a sponsorship/rebate fund to help encourage meetings to come back to the region. The
remaining funds will be used for a promotional campaign4.
Staff Analysis
Due to COVID-19, many area hotels and meeting venues have reported the cancelation or
rescheduling of several meetings for 2020. This is an industry wide trend and meetings are
being canceled regionally and nationwide. The Washington State Convention Center has
reported cancelations through the summer and fall. Staff supports the concept of working to
bring meetings back to the area. The funds allocated through this funding request will go to a
marketing campaign to engage and attract businesses; to fund the administrative costs of
SSRTA; and to fund a rebate (sponsorship) program to help close deals for meeting
businesses.
SSRTA is the City's primary destination marketing organization, providing tourism promotion
and meeting sales activities for the Cities of Tukwila, SeaTac, and Des Moines. SSRTA is
funded primarily through lodging tax provided by the three cities and on the remittance of
tourism promotion assessment. After the LTAC meeting on June 12, staff conducted additional
review of the application submitted and examined existing agreements in place with SSRTA and
with the cities of SeaTac and Des Moines. Staff recommends approving the application but at a
reduced amount of $75,000 based on two main reasons: First, staff believes $125,000 of the
application would be used for administrative and marketing services already covered under
existing funding agreements. Second, staff believes SSRTA has sufficient funds to cover those
administrative and marketing services.
A. Staff is concerned that the funds provided for the marketing campaign and to
fund the administrative cost of SSRTA are duplicate of existing tourism
agreements.
i. SSRTA is contractually obligated to market and promote Tukwila to
meeting groups.
In 2019 the City entered into a two-year lodging tax funding agreement with SSRTA (see
attached). The agreement was entered into after the LTAC and City Council reviewed a funding
request from SSRTA. The agreement provides $405,000 in funds through 2020. Under this
agreement, SSRTA is required to provide services related to promoting Tukwila for meetings.
Specifically, SSRTA will:
• Maintain a destination marketing website and social media accounts to attract inquire from
leisure and business travelers and meeting planners, primary outside the 50- mile radius
(emphasis added).
• Provide meeting planning assistance to planners looking [at] hosting events in the Tukwila
area.
4 Following the LTAC meeting on June 12 staff provided follow up questions to SSRTA regarding the proposed
application and how the funds would be used. SSRTA informed the City that it would retain 15% of the funds
provided for administration and operations costs. 33
INFORMATIONAL MEMO
Page 4
ii. SSRTA is required to provide meeting and convention services for the City
under the Tourism Promotion Agreement.
In 2014 the Cities of Tukwila, SeaTac, and Des Moines entered into an interlocal agreement to
create a Tourism Promotion Area to serve the three cities (see attached). The interlocal
agreement authorized the collection of an additional $2 per room per night from eligible
hotel/motel stays in the City. It is estimated that in 2019 that Tukwila hotels paid just over $1.1
million in the TPA fee. The TPA fee is remitted by the Department of Revenue directly to
SSRTA5.
The interlocal agreement outlines specific uses with how the TPA fee is to be used. Section 5(b)
states one of the ways the funds will be used for "The marketing of convention and trade shows
that benefit local tourism and lodging businesses in the Seattle Southside TPA." Additionally,
Section 5(e) states that the TPA funds will be used for the direct administration and operation of
SSRTA.
Based upon these existing agreements staff believes that SSRTA is already contractually
required to provide marketing and meeting sales services to the City of Tukwila. Except for the
sponsorship/rebate program, staff does not believe that the application is providing any new
services to the City.
B. SSRTA also has sufficient funds to conduct marketing, sales, and promotion
activities without requesting additional funds from the City.
SSRTA ended 2019 with a total of $4.5M in cash on hand (this does not include allocations to
SSRTA's reserve funds). With the reduction of TPA fees associated with low hotel occupancy
rates, SSRTA is forecasting a significant budget shortfall for 2020 and has made budget cuts to
address the budget impact. However, SSRTA is forecasted to end 2020 with $3.156M in total
cash, of which $2.241 M will be unassigned. For 2021 SSRTA is forecasting an ending fund
balance of $2.029M, of which $1.065M will be unassigned6. It is unclear why these funds
cannot be used for the campaign proposed in the lodging tax application.
Note, in addition to the funding described above, SSRTA will also receive $2M in CARES Act
funds from King County. These funds will be used to promote tourist, including locals, returning
to hospitality businesses. It is unclear if these funds would supplant other funds in SSRTA's
budget, thus allowing SSRTA to retain budgeted funds. Additionally, it is likely that SSRTA will
take an administrative fee from the County funds.
Staff does believe that the sponsorship program proposed in the application is an innovative tool
to help bring meetings back to the City. This tool is used in other parts of the country and can be
useful in helping to close groups.
LTAC Recommendation on Application: Do Fund
Staff Recommendation on Application: Reduce funding request. Provide $75,000 for
rebate/sponsorship program for groups booked within Tukwila. In the initial request from SSRTA
it was unclear if the funds provided by Tukwila would be used to book meetings in other cities,
for example Des Moines. Staff believe that any funds allocated for the rebate/sponsorship
s The total TPA fee collected in 2019 within the Cities of Tukwila, SeaTac, and Des Moines was just over
6 Historically, SSRTA has underestimated its ending fund balance. For example, for 2019 SSRTA's budgeted
ending fund balance was $3.582M; however, the actual ending fund balance was $3.942M. While part of the ending
fund balance can be attributed to higher than expected TPA fees, most of the increase was due to a significant
34 underspend in its budget.
INFORMATIONAL MEMO
Page 5
should be city specific. Tukwila funds should only be used for groups booked to come to
Tukwila. None of the funds can be used for SSRTA's operation or administrative costs.
3. City of Tukwila, Office of Economic Development, "Experience Tukwila" ($88,375).
The City is requesting lodging tax funds to develop, launch, and maintain digital assets to
promote the City to visitors, businesses, and future residents. Currently, the City has limited
digital assets available.
The digital assets would contain the following:
Dedicated website focused on the Tukwila community, which may include:
o Photos and videos promoting the City.
o Community Calendar
o Google map of City
o Newsletter sign up
o Info about visiting, living, and investing in the City.
o Other key attributes promoting the City.
• Maintenance of Social Media Accounts.
o As part of the SavingLocalKC campaign it was determined that Tukwila social
media accounts were needed in order to highlight Tukwila businesses. The
City created social media accounts on Twitter, Facebook, and Instagram,
which are updated regularly with content.
Creation and maintenance of a Linkedln page for the City.
o Linkedln is a vital asset the City could be using to promote itself, specifically
for business attraction.
Email Marketing and Maintenance
o Creation of a newsletter to be sent out on a regular basis. The newsletter
would focus on things to do in the City, info about the City, and feature area
businesses.
Staff Analysis
The need for these digital assets was identified as part of the branding process for tourism and
economic development completed by Bill Baker in 2017. The COVID-19 pandemic and
economic impacts have magnified the need for these assets as a way for the City to better
communicate with leisure travelers in the area about Tukwila's businesses. Many other cities
and neighborhoods in the area already have these types of digital assets.
LTAC Recommendation on Application: Do Fund
Staff Recommendation on Application: Do Fund.
FINANCIAL IMPACT
The three applications, as submitted by the applicants, would require a total expenditure of
$333,375 in lodging tax funds. If the Council accepts staff proposal to reduce the fund allocation
to SSRTA, the total expenditure would be reduced to $213,375. Attached with this memo is the
current six -year financial model for the lodging tax funds. COVID-19 is having significant
impacts on the revenue for the funds. The six -year financial model shows the financial request
as submitted by the requestor. Due to a significant reduction in lodging tax collected by the end
of 2021 the City is forecasted to have just over $525,000 in the ending fund balance.
35
INFORMATIONAL MEMO
Page 6
RECOMMENDATION
Staff recommends that the City Council:
(1) Approve the Seattle Southside Chamber of Commerce request for the Southside
Promise program in the amount of $50,000;
(2) Approve, as amended) the Seattle Southside Regional Tourism Authority request for
Emergency Funding for Meeting Marketing in the amount of $75,000 and designate it
specifically for rebates.
(3) Approve the funding request from the City of Tukwila to develop and manage digital
marketing assets for "Experience Tukwila" in the amount of $88,375.
(4) Forward all items to the City Council Committee of the Whole meeting on July 13.
ATTACHMENTS
1. Lodging tax applications materials:
a. Seattle Southside Chamber of Commerce, "Southside Promise."
b. Seattle Southside Regional Tourism Authority, "Emergency Funding Request for
Meeting Campaign."
c. City of Tukwila, Office of Economic Development, "Experience Tukwila."
2. Lodging Tax Six -Year Financial Model.
3. 2019/2020 Agreement between the City of Tukwila and Seattle Southside Tourism
Authority (relevant pages only),
4. Tourism Promotion Agreement between Cities of Tukwila, Des Moines, and SeaTac
(relevant pages only).
5. SSRTA's Revised Budget
36
(?Tinkwila
Cover Sheet
Lodging Tax Advisory Committee Funding Request
Name of Applicant:
Southwest King County Chamber of Commerce (dba Seattle Southside Chamber of Commerce).
Address:
4800 S. 188t' St. Suite #250 SeaTac, WA 98188
Total Funds Requested:
$50,000
About the Applicant:
Seattle Southside Chamber of Commerce is a local chamber of commerce serving the communities of
Tukwila, SeaTac, Burien, Normandy Park, and Des Moines. The Chamber provides business assistance,
business promotion, and advocacy for businesses throughout southwest King County. In response to
COVID-19, the Chamber has been providing significant assistance to the business community
impacted by COVID-19.
Funds Previously
Awarded:
None for this initiative. The Chamber use to receive lodging tax funds, but has not requested funds in
a number of years.
Funding Request Narrative:
As discussed in the application:
"The event/activity/initiative we are proposing to be supported through LTAC Funds is S.M.A.R.T.'s
Southside Promise. The Southside Promise is an outreach initiative that will provide businesses with
tools and resources to reopen successfully after weathering the human and economic impacts of
COVID-19. These tools and resources include business toolkits, signs, marketing materials, and
inclusion in a robust marketing and promotion campaign that will include video, photography, an
influencer kick-off event, and much more. The goal of the campaign is to assist in the smooth re-
opening of Southside businesses and then to draw tourists and members of our community to those
newly re -opened businesses, all while remaining committed to public health."
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
37
Tukwila
Consistency with Six Year Financial Model:
This project was not identified as part of the City's six -year financial model and is response to the
economic impacts associated with COVID-19. Several of the items identified in the six -year financial
model, such as major sponsorships may not occur in 2020.
City of Tukwila Staff
Recommendation to LTAC: Approval
Notes:
If the application is approved by LTAC and the City Council, the applicant will need to enter into a
service agreement with the City. The final scope of work will be negotiated by City staff. Any
agreement over $40,000 requires approval by the Tukwila City Council.
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
38
Application to the City of Tukwila for
Use of 2020 Lodging Tax Funds
Event or Activity Name (if applicable):
Southside Promise
Amount of Lodging Tax Requested:
$50,000
Applicant Organization:
Southwest King County Chamber
DBA Seattle Southside Chamber of Commerce
Federal Tax ID Number:
91-0595611
Mailing Address:
4800 S. 188t' St, Suite #250 SeaTac, WA 98188
Primary Contact Name:
Andrea H. Reay
Primary Contact Phone:
206 575 3016
Primary Contact Email Address:
Andrea@SeattleSouthsideChamber.com
Check all the service categories that apply to this application:
J Tourism promotion or marketing.
J 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:
J Non -Profit
Note: Attach a copy of your current non-profit corporate registration from the Washington
Secretary of State Office
❑ Municipality
❑ For -Profit Corporation
I am an authorized agent of the organization/agency applying for funding. I understand that:
• 1 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.
• My agency will be required to submit a report documenting economic impact results in a format
determined by the City.
June 9, 2020
Date
39
1) Describe your tourism -related activity or event.
Now, more than ever, the importance of economic development cannot be overstated. The City
of Tukwila and the Seattle Southside Chamber have developed a relationship over the past 32 years to
help both new and established businesses succeed. This relationship and the efforts we put forth together
have become crucial in a time of uncertainty. Together, we strive to offer the utmost support as our
community suffers in the wake of the human and economic impacts of COVID-19.
In these uncertain times, it is important that citizens support the local businesses that are
struggling to ensure that the current revenue stream is maintained and that the local economy remains
as strong as possible. From an economic development perspective, it is always more effective to aid our
business during a time of crisis by providing retention and recovery assistance than it is to seek new
businesses after uncertainty has passed.
In order to maintain the health of our community, focus has shifted to retention and recovery in
the wake of the COVID-19 pandemic. The economy —which has not seen impacts such as this since the
1930's—has been shaken and businesses need a greater level of assistance now more than any other
time in recent history. Efforts must be made to ensure that our local businesses are provided the
assistance they need to survive the difficult time in which we are living.
To deliver initiatives and campaigns that encourage a quick recovery to the local business
community, the Southside Chamber of Commerce has created the Southside Mitigation and Recovery
Taskforce (S.M.A.R.T., https://www.seattlesouthsidechamber.com/smart). SMART is a public/private
taskforce that strives to find real solutions to the challenges our community faces as we confront
the human and economic impacts of COVID-19. It is focused on three main objectives:
• ADVOCACY — To ensure relief from local and federal funding sources reaches the pockets of the
small business owners and communities that are in most need of support
• SUPPORT — To share and provide resources that help businesses and individuals
• MARKETING AND PROMOTION — To create and support campaigns and efforts that support
local business
The event/activity/initiative we are proposing to be supported through LTAC Funds is S.M.A.R.T.'s
Southside Promise. The Southside Promise is an outreach initiative that will provide businesses with
tools and resources to reopen successfully after weathering the human and economic impacts of COVID-
19. These tools and resources include business toolkits, signs, marketing materials, and inclusion in a
robust marketing and promotion campaign that will include video, photography, an influencer kick-off
event, and much more. The goal of the campaign is to assist in the smooth re -opening of Southside
businesses and then to draw tourists and members of our community to those newly re -opened
businesses, all while remaining committed to public health.
2) If an event, list the event name, date(s), and projected overall attendance.
Name: Southside Promise
Dates: Launch fully during Phase 2, or approximately on June 14, 2020, and will continue
through all phases of the Governor's "Safe Start" Washington initiative
Overall Attendance: The goal is to have 100 Tukwila businesses participate with an anticipated
total attendance or participation of over 10,000 individuals from June 14, 2020 through
December 31, 2020
M
3) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or
both?
While direct participants of the Southside Promise are businesses, the robust marketing and
promotions campaign —which will include videos, photography, an influencer kick-off event, and much
more —focus on drawing day tourists and local residents within a 50-mile radius of Tukwila to take
advantage of the subsequent opportunities created and promoted by the Promise.
4) Describe why visitors will travel to Tukwila to attend your event/activity/facility.
Visitors will experience the Southside Promise as a consumer -faced campaign and strategy to
increase consumer confidence. Prior to the COVID-19 pandemic, nearly 150,000 people visited the City
of Tukwila daily to work, play, dine, and stay. Southside Promise's goal is to get these visitors back.
These visitors, and the businesses they support, are the backbone of the city's visitor economy and the
Southside Promise will act as the catalyst to return these visitors to Tukwila.
5) Describe the geographic target of the visitors you hope to attract (locally, regionally,
nationally, and/or internationally).
The geographic target of visitors will be local, focusing on residents that live within 50 miles of
Tukwila. We know that visitors from within that area will be the first to travel and we want to encourage
them to experience Tukwila.
6) Describe the prior success of your event/activity/facility in attracting tourists.
The Seattle Southside Chamber typically produces over 30 events annually that attract over
30,000 attendees from throughout the Greater Puget Sound region.
7) If this your first time holding the event/activity/facility, provide background on why you
think it will be successful.
As this is a new event, we believe it will be successful based on the success of other similar
post-COVID-19 economic recovery programs across the United States. Many other parts of our country
are further along in reopening their economies and we can adapt their successful findings to our
community in order to best serve our businesses.
A few examples of these campaigns can be found locally, including:
• Everett for Everett Campaign
o https://www.everettforeverett.com
• Snohomish County's COVID-19 Business Recovery
o https://snohomishcountywa.gov/5600/COVID-19-Business-Recovery
• Tri-Cities Chamber Open and Safe Program
o https://www.tricityregionalchamber.com/open-and-safe.htmI
41
8) Describe the media strategy you will 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
eve nt/activity/faci I ity.
The Seattle Southside Chamber has a media partnership with South King Media that amplifies
our digital engagement strategies and activities, the primary reach of which are hyperlocal: West
Seattle, Ballard, Downtown Seattle, Edmonds, Renton, Kent, Auburn, Burien, SeaTac, Tukwila,
Normandy Park, and Des Moines. When we look at our demographics for families and couples looking
for day visits and experiences, we will use targeted marketing and leverage our partnerships to ensure
robust coverage. In addition to utilizing the Chamber's existing marketing outlets, such as the website,
blog, newsletters, and social media, we will deploy press releases, videos, and specific social media
campaigns to tell the story that Tukwila is open for business.
9) Describe how you will promote lodging establishments, restaurants, retailers, and
entertainment establishments in the City of Tukwila.
We will use a combination of videos and social media campaigns to promote lodging,
restaurants, retailers, and entertainment establishments in the City of Tukwila by highlighting the
participating businesses.
Here is a sample video promoting S.M.A.R.T.'s Keep Calm Carry Out campaign, which has
been viewed over 4,000 times on YouTube alone as well as shared over 320 times on Facebook:
https://www.youtube.com/watch?v=4TXfl rQCewq
10) Is the City able to use your digital and print media for collaborative marketing?
Yes
11) Describe how you will use the name "Tukwila" in publications, promotions, and for your
event.
We will use the phrasing: "The Seattle Southside Promise is made possible by the City of
Tukwila" along with the City of Tukwila logo where applicable.
12) Measurements and Metrics (Note: You will be required to report these metrics as part of
the closeout 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.
10,000
b. Number of people who will travel fewer than 50 miles for your
7,000
event/activity.
42
c. Number of people who will travel more than 50 miles for your
3,000
eventlactivity.
d. Of the people who travel more than 50 miles, the number of people who
500
will travel from another country or state.
e. Of the people who travel more than 50 miles, the number of people who
500
will stay overnight in Tukwila.
f. Of the people staying overnight, the number of people who will stay in
500
PAID accommodations (hotel/motel/bed-breakfast) in Tukwila.
g. Number of paid lodging room nights resulting from your proposed event/
activity/facility (for example: 25 paid rooms on Friday and 50 paid rooms
250
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.?
To calculate these estimates, we used a formula based on an assumption that 50% of those
that travel from over 50 miles will seek overnight accommodations. Of that 50% or 1500 attendees,
some will seek accommodations in nearby communities and we will make an intentional effort through
marketing to encourage stays in Tukwila. We anticipate being able to secure 70% at a minimum of that
market share. We are also anticipating that the demographics of the attendees will be couples and
families, again based on our target demographic.
To track outcomes, we will use analytics on the webpages as well as on various social media
platforms.
14) Are you applying for lodging tax funds from another community? If so, which
communities and in what amounts?
M
15) Are you applying for 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?
The overall budget to execute the campaign is approximately $100,000. The $50,000 requested
will be focused on the marketing and promotion portion of the campaign.
43
17) What will you cut from your proposal or do differently if full funding for your request is
not available or recommended?
If we were not granted our optimal amount of funding, we would purchase fewer media and
advertising boosts, decreasing the reach of this campaign. No part of the campaign would be entirely
cut, simply reduced.
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
.91
Brandon. Miles(o)Tukwilawa.gov
Questions?
LTAC Contact:
Brandon J. Miles
(206) 431-3684
Brandon. Miles(a)Tukwilawa.gov
Updated: December 17, 2019
YTVKkwi)A
Cover sheet
Lodging Tax Advisory Committee Funding Request
Name of Applicant:
Seattle Southside Regional Tourism Authority
Address:
3100 S. 17611 St., SeaTac, WA 98188
Total Funds Requested:
$195,000
About the Applicant:
Seattle Southside Regional Tourism Authority (SSRTA) is the City's primary destination marketing
organization, providing tourism marketing for the cities of SeaTac, Tukwila, and Des Moines under the
"Seattle Southside" brand. In the past destination marketing services were provided by Seattle
Southside Visitor Services (SSVS), which administrated by the City of Tukwila. On January 1, 2016
services provided by SSVS transitioned to SSRTA.
Funds Previously
Awarded:
The City of Tukwila currently has a two-year lodging tax funding agreement with SSRTA. In 2019 the
City provided $202,500 and has a contract in place for 2020 to provide the same amount of funds.
The amount of funds provided is consistent with the Interlocal Agreement with the Cites of Tukwila,
SeaTac, and Des Moines.
Funding Request Narrative:
As discussed in the application:'
SSRTA is
"'[SSRTA] is requesting emergency funding to deploy a meetings marketing recovery strategy
immediately following relaxation of isolation bans in order to rebuild business and economic vitality as
soon as possible in Seattle Southside. This strategy is a vital component to the RTA's two -pronged
tourism recovery plan for a hyper -targeted, audience -centric approach; the other prong focused on a
region -wide leisure audience."
City of Tukwila
6200 Southcenter Blvd,
Tukwila, WA 98188
45
m
� Tt4kwila
Cover Sheet
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:
$88,375
About the Applicant:
City of Tukwila Office of Economic Development is responsible for overseeing the City's tourism
programs, which includes the City's direct marketing, destination development, and tourism
promotion activities, as well as overseeing contract with SSRTA, Starfire, and other organizations.
Funds Previously
Awarded:
None for this initiative. Under the SavingLocalKC campaign the City realized that social media handles
were needed to promote Tukwila businesses under the campaign, this resulted in the creation of
Experience Tukwila handles being created on Facebook, Instagram, and Twitter.
Funding Request Narrative:
The City of Tukwila is requesting lodging tax funds to develop, launch, and maintain digital assets to
promote the City to visitors, businesses, and future residents. Currently, the City has limited digital
assets available.
The digital assets would contain the following:
• Dedicated website focused on the Tukwila community, which may include:
o Photos and videos promoting the City.
o Community Calendar
o Google map of City
o Newsletter sign up
o Info about visiting, living, and investing in the City.
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
47
T14kIila
o Other key attributes promoting the City.
• Maintenance of Social Media Accounts.
o As part of the SavingLocalKC campaign it was determined that Tukwila social media
accounts were needed in order to highlight Tukwila businesses. The City created
social media accounts on Twitter, Facebook, and Instagram, which are updated
regularly with content.
• Creation and maintenance of a Linkedln page for the City.
o Linkedln is a vital asset the City could be using to promote itself, specifically for
business attraction.
• Email Marketing and Maintenance
o Creation of a newsletter to be sent out on a regular basis. The newsletter would
focus on things to do in the City, info about the City, and feature area businesses.
Consistency with Six Year Financial Model:
The need to create vanity digital assets was identified as part of the City's tourism and economic
development branding efforts in 2017. Digital Development and website management and creation is
listed in the six -year financial model. The requested amount is above the funds identified in the six -
year financial model.
City of Tukwila Staff
Recommendation to LTAC: Approval
Notes:
None.
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
Application to the City of Tukwila for Use of 2020 Lodging Tax Funds
Event or Activity Name (if applicable):
Experience Tukwila
Amount of Lodging Tax Requested:
$88,375
Applicant Organization:
City of Tukwila, Office of the Mayor
Federal Tax ID Number:
91-6001519
Mailing Address:
6200 Southcenter Blvd; Tukwila, WA, 98188
Primary Contact Name:
Brandon Miles
Primary Contact Phone:
(206) 431-3684
Primary Contact Email Address:
Brandon.Miles@Tukwilawa.gov
Check all the service categories that apply to this application:
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
For Profit Corporation
I am an authorized agent of the organization/agency applying for funding. I understand that:
• 1 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.
• My agency will be required to submit a report documenting economic impact results in a
format determined by the City.
(flit
Signature: Date: June 9, 2020
. •
1) Describe your tourism -related activity or event.
The City of Tukwila is requesting lodging tax funds to develop, launch, and maintain digital assets to
promote the City to visitors, businesses, and future residents. Currently, the City has limited digital
assets available.
The digital assets would contain the following:
• Dedicated website focused on the Tukwila community, which may include:
o Photos and videos promoting the City.
o Community Calendar
o Google map of City
o Newsletter sign up
o Info about visiting, living, and investing in the City.
o Other key attributes promoting the City.
• Maintenance of Social Media Accounts.
o As part of the SavingLocalKC campaign it was determined that Tukwila social media
accounts were needed in order to highlight Tukwila businesses. The City created
social media accounts on Twitter, Facebook, and Instagram, which are updated
regularly with content.
• Creation and maintenance of a Linked In page for the City.
o Linked In is a vital asset the City could be using to promote itself, specifically for
business attraction.
• Email Marketing and Maintenance
o Creation of a newsletter to be sent out on a regular basis. The newsletter would
focus on things to do in the City, info about the City, and feature area businesses.
2. If an event, list the event name, date(s), and projected overall attendance.
N/A
3. Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both?
Both. Seattle Southside Regional Tourism Authority (SSRTA) is the City's primary DMO for marketing
the City under the Seattle Southside brand. SSRTA's mission is to attract people from outside the 50-
mile radius. The City's website would serve in conjunction with SSRTA mission by providing more info
and promotion for Tukwila specific activities. For example, SSRTA would help to bring someone into
the Seattle Southside region and then the Tukwila information could be used for people staying at
Tukwila hotels. Other communities in the Seattle Southside region have website focused on specific
communities, such as Destination Des Moines and Discover Burien.
Page 2 of 7
50
Additionally, the City's digital assets will also focus on consumers within 50 miles of the City.
4. Describe why visitors will travel to Tukwila to attend your event/activity/facility.
Prior to the pandemic nearly 150,000 people came to Tukwila to work, play, stay shop, and dine.
Tukwila is centrally located and is home to the largest mall in the Pacific NW, 200 restaurants, nearly
2,000 hotel rooms, and nearly a dozen entertainment establishments.
5. Describe the geographic target of the visitors you hope to attract (locally, regionally,
nationally, and/or internationally).
Generally, within one -hour drive of King County. This will include people who live and work within
one -hour and those staying at area hotels. However, the website will also be designed to work in
conjunction with other visitor websites promoting the City, such as SSRTA and Visit Seattle.
6. Describe the prior success of your event/activity/facility in attracting tourists.
The City has had several successful marketing events and activities over the last few years. These
events and activities include:
a. SavingLocalKC.com
b. International Food Truck Rally
c. Two Rave Green Runs
d. Southcenter 50
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.
As described above, the City is proposing to launch a digital assets to promote the City to visitors. The
digital assets will include: The digital assets will include:
1. Website, including photos, videos, blog, etc.
2. Social Media, including Facebook, Instagram, Twitter, and Linked in. Goal will be to have 5-6
posts per week per platform.
3. Creation of three custom videos to promote the City.
4. Development of email marketing to be launched after website is up and running.
9. Describe how you will promote lodging establishments, restaurants, retailers, and
entertainment establishments in the City of Tukwila.
Page 3 of 7
51
The existing Experience Tukwila social media platforms promote Tukwila businesses and activities
weekly. The content varies based upon special events, weather etc. The website will likely be
developed more as a vanity website than an information website. We will likely pull from existing
sources for information on dining, hotels, etc. Listing every business on the site would clutter the
site. The goal of the website is to help promote the City and will be designed with this goal in mind.
Specific businesses will be identified based upon the time of year and events. For example, the
Rave Run could be identified, Seawolves games, etc. The goal will be to keep the content up to
date, fresh, and relevant.
Email marketing will also be relevant to current events and the season.
10. Is the City able to use your digital and print media for collaborative marketing?
Yes.
11. Describe how you will use the name, "Tukwila" in publications, promotions, and for your
event?
This is a Tukwila dedicated digital marketing initiative. Tukwila's name will be front and center on all
platforms.
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:
Metrics
a. Overall attendance at your proposed
100,000 web visits in the first 12 months.
event/activity/facility.
20,000 total visitors in the first 12 months.
b. Number of people who will travel fewer than 50
85%
miles for your event/activity.
c. Number of people who will travel more than 50
15%
miles for your event/activity.
d. Of the people who travel more than 50 miles, the
Less than 15%
number of people who will travel from another
country or state.
e. Of the people who travel more than 50 miles, the
Less than 3%
number of people who will stay overnight in
Tukwila.
Page 4 of 7
52
f. Of the people staying overnight, the number of
100
people who will stay in PAID accommodations
(hotel/motel/bed-breakfast) in Tukwila.
g. Number of paid lodging room nights resulting
200
from your proposed 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 rough estimates based on educated guesses by staff and our marketing agency. Staff will
use Google analytics and social media analytics to track progress of the initiative.
14. Are you applying for lodging tax funds from another community? If so, which communities
and in what amounts?
No. The City will allocate a small portion of a Port Economic Development grant to the website
development. This is being done in reflection that some aspects of the website will focus on living
in Tukwila, which may fall outside of the scope for lodging tax funds.
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?
Experience Tukwila, Costs from Mid -May through December
Ongoing Costs
Costs
Number of Months
Cost
Project Management
$1,000
7
$7,000
Social Media
$3,000
7.5
$22,500
Website Maint.
$1,000
3
.$3,000
Subtotal:
$321500
Email Marketing
Costs
Number of Emails
Email Creation
$750
3
$2,250
Subtotal:
$2,250
Page 5 of 7
53
Total Ongoing Costs
$34,750
One Time Costs
Website Development
$25,000
Video Creation
$20,000
Development of Email
Template
$1500
Total One -Time Costs
$46,500
Grand Total:
$81,250
Contingency (10%)
$8,125
Less Port Grant
Contribution:
$(1,000)
Total Lodging Tax Request:
$88,375
Note, funds may be moved between categories, but will not go above the total awarded. Additionally,
this is not intended to be the total campaign total. Additional funds may be added from the City's
approved General Operation's lodging tax budget or non-LTAC funds. Funds from a Port grant will also
be contributed to the campaign.
17. What will you cut from your proposal or do differently if full funding for your request is not
available or recommended?
We would reduce the accordingly. At a minimum we need to be able to keep the website update with
timely business information.
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,
Page 6 of 7
54
Brandon.Miles@Tukwilawa.gov
Questions?
LTAC Contact:
Brandon J. Miles
(206) 431-3684
Brandon.Miles@Tukwilawa.gov.
Updated: December 17, 2019
Page 7 of 7
55
56
f �Ttikwila
Funds will be used for a promotional campaign and to provide an incentive program to help close
meetings in the Seattle Southside.
The total campaign includes $455,000 request from the City of SeaTac and $195,000 from the City of
Tukwila, for a total of $650,000. No funds are being requested from the City of Des Moines. The split
between SeaTac and Tukwila is 70/30.
Once awarded, SSRTA will develop a media and marketing plan for the campaign.
As a result of the COVID-19 Pandemic, SSRTA and the City's lodging tax funds have been significantly
impacted by the drop off in hotel stays in the City. The table below outlines SSRTA's current financial
situation, including a budget adjustment related to COVID-19.
Seattle Southside Regional Tourism Authority (R!At Fnandal Pro Form.-,
2020 2 i_'2
2019
2019
2020
2020
2021
2022
Approved
Approved
Projection
Projection
Projection
Budget
year-end
ALWdIS
Budget
(Unaudited)
Revenues
1 TPA Soecial Assessments
5
3,674,825
5
3,963,260
S 3,900.000
5 1,252.474
5 3.170,608
S 3.368.771
2 LTC -Tukwila
202,500
202,500
202,500
202.500
-702,500
202,500
3 LTC-SeaTac
830,000
830,000
830,000
830,000
830,000
830.000
4 LTC -Des Moines
111,000
52,497
55,500
15,000
10,000
25,000
5 lntcre:t Rt'enue
48.500
71,S29
65,000
22,500
6,OCO
7,500
6 Misc Other Revenue
2,500
10,422
2,500
5,500
5,500
5,500
7 Advertising
75,000
40.480
30.000
7.500
7,500
7.500
Total Revenues
S
4,944,325
S
5,170,989
5 5,105,S00
5 2.335,474
S 4,232,108
5 4,446.771
Expenditures
B Salaries & Benefits
S
1.622,209
5
1,451,758
S 1,630,500
5 1,459,652
S 1.465,000
5 1,567,550
9 Supplies
31,000
14,197
15.000
MOW
13,500
14.000
10 Small Equipment
20.000
5,755
20.0w
11,000
7,000
7,000
11 Professional Services/Ads/Promotions
2.200,000
2,013,177
2.323.000
2.098.250
2,100,000
2,200,000
12 CornmunicaGons/Postage
S1,000
36,088
41.000
30.000
33,000
36.000
13 Travel
115.000
47,357
SO.000
13,000
47.500
60,000
14 Operating :eases
120,000
87,512
120.000
110,636
119,000
120.000
15 Insurance
12.000
10,611
12.000
11,000
12,000
13,000
16 Maintenance
6.000
3.654
6,000
3.800
3,900
4,000
17 Miscellaneous/Printing
861,000
589.609
751.000
530,000
600,000
675,000
18 Capital Digital 4nal;es
39,000
11,000
39.000
11,000
15,000
20,000
Total Operetinj; Expenditures
5,107,209
4,270,718
5.037,500
4,288,338
4.415,900
4,716.550
19 Capital Oullay
100,000
26.938
68,000
20.000
25.000
23.000
Total Expenditures and Capital Outlay
5,207,209
4,297,657
5,305,500
4,308.338
4.440,900
4,739.550
20 Excess of Revenues over(under)expenditures
(262,884)
873,333
(1.972,864)
208.792i
i292.779)
Beginning Fund Balance S
2,1S3,571
5
3,582,569
S 3.942.503
5 4,455,902
5 2,483,037
S 2,274.246
Ending; Fund Balance 5
1.890.687
$
4,4S5,902
5 3.942,503
5 2.483,037
5 2,274,246
S 1,981.467
Ccrtr-rtcy Reserve (2 months)
5
868.042
$
716,419
S 839,751
$ 714,866
S 736,131
S 786,249
Ec ::_ _ Dawnturn/Recassicn Reserve (11' ul SA1
5
404,231
5
435,959
$ 429,000
S 137,772
S 348.767
S 370,565
Cec, :,' ;,:, et Replacement Reserve
5
110,000
5
110.076
5 183.465
S 183,465
S 183,465
S 183.455
unas:.. as 2alance
S
508,414
S
3,193,448
5 2,490,286
S 1,446,934
5 1,005,883
S 641.188
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
57
w
Application to the City of Tukwila for Use of 2020 Lodging Tax Funds
Event or Activity Name (if applicable):
RTA 2020 Emergency Funding for Meetings
Marketing Recovery Strategy (COVID-19
Response) for an 18-month program
Amount of Lodging Tax Requested:
$195,000
Applicant Organization:
Seattle Southside Regional Tourism Authority
Federal Tax ID Number:
47-30311480
Mailing Address:
3100 S 176th St, SeaTac, WA 98188
Primary Contact Name:
Katherine Kertzman
Primary Contact Phone:
206-575-0547
Primary Contact Email Address: I
Katherine@SeattleSouthside.com
Check all the service categories that apply to this application:
Tourism promotion or marketing.
Operation of a special event or festival designed to attract tourists.
Operation of a tourism -related facility owned or operated by a non-profit organization.
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
For Profit Corporation
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.
• My agency will be required to submit a report documenting economic impact results in a
format determined by the City.
Signature:
Date: June 2, 2020
59
1) Describe your tourism -related activity or event.
The RTA is requesting emergency funding to deploy a meetings marketing recovery strategy
immediately following relaxation of isolation bans in order to rebuild business and economic vitality
as soon as possible in Seattle Southside. This strategy is a vital component to the RTA's two -pronged
tourism recovery plan for a hyper -targeted, audience -centric approach; the other prong focused on
a region -wide leisure audience.
Meetings and events are currently banned due to the State's COVID-19 response. This has
impacted many hotels in Seattle Southside. Group business is an important component of
occupancy mix for area hotels, accounting for an average of 10.4% of total occupancy in 2019 for all
Seattle Southside hotels, including hotels without meeting space. For some Tukwila hotels with
sizable meeting space, group occupancy represents 13-20%. Hotel revenue management strategy is
typically structured on a base of group business backfilling with transient business to maximize
revenue.
Group occupancy numbers do not account for local or regional attendees who drive into Tukwila
for the day to attend a meeting. One Tukwila hotel reports that 70% of meeting attendees at their
property do not stay overnight and another property reported 40% of attendees came for just the
day.
The economic value of meetings business extends beyond the hotel's room revenue, event space
rental, or food and beverage revenue. An Events Industry Council study conducted in 2017 involving
more than 1.5 billion participants found that U.S. business meeting attendees spent on average
$1,287 each per event in the destination. Business meeting attendees spend on average 54% on
lodging, 5% on recreation, 8% on retail, 10% on transportation, and 23% in restaurants (Tourism
Economics, 2015).
The meetings marketing recovery program will utilize a phased approach to drive interest and
engagement from targeted meeting planners. The approach will play up Seattle Southside's
convenient location, affordability, and assets to compete with other destinations who will be
looking to book group business post-COVID-19.
This strategy is based on discussions with Seattle Southside hotels and informed by hoteliers'
experiences with the meetings industry. The RTA will continue to work with hotels and other
businesses to ensure meeting planner and attendee experience meets expectations by
communicating partner cleanliness and safety standards, availability of digital technology for
hybrid events, innovative solutions to food and beverage, and other strategies that are emerging in
the meetings and events realm.
The total investment in the eighteen months meetings recovery program is $650,000 with
$250,000 of the funds dedicated to a grant program to help close business. The marketing will be
utilized to drive awareness, interest, and engagement with planners while the grant fund will be a
tool for the RTA and hotels sales teams to close business. The combination of the two approaches
will help Seattle Southside generate group business in the wake of COVID-19.
1) If an event, list the event name, date(s), and projected overall attendance.
NA
Page 2 of 8
Rented Email Lists
30K total
MPI WA State Dedicated Email 6K Total
Social Distribution
210K total
8) Describe how you will promote lodging establishments, restaurants, retailers, and
entertainment establishments in the City of Tukwila.
9) Is the City able to use your digital and print media for collaborative marketing?
'es
10) Describe how you will use the name, "Tukwila" in publications, promotions, and for your
event?
An important element to the meetings marketing campaign is content creation with an emphasis on
telling the stories of our partners' innovation, creativity, and uniqueness. Partners featured who are
in Tukwila will be identified as such. In addition, the City of Tukwila is included throughout Seattle
Southside's marketing materials. The Dining Guide identifies and lists all full -service Tukwila
restaurants and their addresses, and the Meeting Planners Guide lists all Tukwila hotels and their
addresses. Our website identifies Tukwila on all businesses with that address and features countless
attractions, retail, lodging properties and more all located in Tukwila.
11) Measurements and Metrics (Note: You will be required to report these metrics as part of the
close out of the agreement between your organization and the City.)
The intensive marketing outreach included in this strategy will extend beyond the immediate
COVID-19 recovery. Data is allusive when attempting to determine estimated attendance numbers
from a market -specific campaign. And although the campaign focus is to drive business for 2020
and 2021, group leaders and meeting planners often plan 2 to 3 years out.
Page 5 of 8
61
ONLY trackable room nights resulting from the meetings sponsorship fund are identified below.
Total campaign estimates are beyond what we can state here.
As a direct result of your proposed tourism -related service, provide an estimate of:
a.
Overall attendance at your proposed event/activity/facility.
52,500 people
A dedicated fund of $250,000 would support about 25,000 total
actualized rooms with additional payments to third party planners. Per
Dean Runyan average party size is 2.1 people
Phase 1 preliminary marketing plan anticipated total impressions are
over 3M. The number reported does not reflect the many encounters
(phone calls, emails, video conference calls, vertical FAM attendees,
etc.) made between RTA staff and planners.
b.
Number of people who will travel fewer than 50 miles for your
2,625
event/activity.
Historically, Dean Runyan Research > 95% of Seattle Southside visitors
travel more than 50 miles. However, Phase #1 marketing will be
regionally focused on a drive market. We anticipate a higher % will be
within 50 miles but it is difficult to know for certain. (5% X a.)
c.
Number of people who will travel more than 50 miles for your
49,875
event/activity.
Dean Runyan Research > 95% of Seattle Southside visitors travel more
than 50 miles therefore (95% X a.)
d.
Of the people who travel more than 50 miles, the number of people
zero
who will travel from another country or state.
We plan to address the fly market in Phase 2 and international travel
will not fully recover until a vaccine is developed
e.
Of the people who travel more than 50 miles, the number of people
14,962
who will stay overnight in Tukwila.
30% of SS meeting space is in Tukwila (30% x c.)
f.
Of the people staying overnight, the number of people who will stay in
14,962
PAID accommodations (hotel/motel/bed-breakfast) in Tukwila.
g.
Number of paid lodging room nights resulting from your proposed
7,500
event/ activity/facility (for example: 25 paid rooms on Friday and 50
paid rooms on Saturday = 75 paid lodging room nights)
30% of SS hotel meeting space is in Tukwila (30% x 25,000 room nights)
Page 6 of 8
62
12) What methodologies did you use to calculate the estimates and what methodologies will you
use to track outcomes, such as total participants, estimated visitor spending, etc?
Seattle Southside RTA utilizes 3rd party metrics obtained from H2R Research conversion studies,
and Dean Runyan Travel Impact research in addition. Estimated 25,000 rooms based on $250,000
sponsorship fund.
13) Are you applying for lodging tax funds from another community? If so, which communities
and in what amounts?
Sponsorship
14) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in
what amount?
15) What is the overall budget for your event/activity/facility? What percent of the budget are
you requesting from the City of Tukwila?
This program is not currently budgeted for 2020 as it is a new initiative. The RTA's newly revised
2020 projected TPA revenue is $1.2M that equates to $2.7M less in TPA revenue as compared to the
anticipated $3.9M budgeted. This investment will proactively bring group business back to Seattle
Southside.
16) What will you cut from your proposal or do differently if full funding for your request is not
available or recommended?
The RTA will consider a reduction in staffing, meetings marketing reach and sponsorship fund
availability.
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
Page 7 of 8
63
Or,
Brandon.Miles@Tukwilawa.gov
Questions?
LTAC Contact:
Brandon J. Miles
(206) 431-3684
Brandon.Miles@Tukwilawa.gov.
Updated: December 17, 2019
Page 8 of 8
z
Seattle Southside Regional Tourism Authority
Responses to the City's Supplemental Questions Regarding the RTA's Emergency Tourism Recovery Lodging Tax
Application
Promotional Funds
I would like to ensure that the proposed funds for the promotion are not duplicate of other agreements the City has
with the RTA nor are the funds being used to supplant existing funds.
1. The City's current agreement with SSRTA for lodging tax funds includes language requiring SSRTA to work with
meeting planners and to promote the region for meetings. How does the meeting promotions in the application
(not including the rebate program) differ from the scope of work in the City's current agreement?
The key thing to recognize is that meeting planners' buying habits are different than an average consumer. We
promote the region through one on one, personal interactions and premier placement when they are online
searching for venues with their industry associations or through their internal platforms. These methods don't
typically allow for the type of messaging we are proposing here, and it is quite different from a lead generation
campaign specific to the current conditions and is an aggressive marketing push that we have not done in the
past. The new marketing strategy is expensive and includes avenues not included in original budget and is
needed for an effective campaign in preparation for industry meetings market recovery.
Budget funds for meeting planner promotions is currently allocated (although now on a more limited bases) to
the following activities:
• Sales conventions: Brand awareness promotions, one on one meetings with planners (now virtual) to
promote Seattle Southside and prospect for business
• Industry associations: memberships, business development, prospecting, sponsorships, networking,
marketing benefits of partnerships including logo placement, directory listings, and membership e-
newsletters.
• Third Party Associations: marketing partnerships with third party planner associations and online
booking platforms for premier placement and other search results.
• Fam/Event Sponsorship: familiarization tours in destination, in -destination event sponsorship
• Asset development: new website content, industry specific newsletters, online course development for
planners
2. The ILA that created the TPA states that the TPA fees are to be used for... "marketing and convention and trade
shows that benefit local tourism..." What's the current allocation of TPA fees going for promoting the region for
meetings? This should include both direct sales activities and promotional related to bringing meetings to the
region.
Please see below for the original budget for marketing and promoting Seattle Southside to meetings and groups
vs. revised.
SALES & SERVICES - 2020 BUDGET
Original Budget
Second Revision
Supplies
$ 6,000
$ 2,500
Including: Office Supplies
Professional Services
$ 548,000
$ 275,000
Including: Marketing Packages, Ad Placement, FAM/Event Sponsorships, Mail Service Fulfillment etc.
Communication/Postage
$ 17,000
$ 6,000
Including: Postage, Communications
Travel
$ 47,000
1 $ 11,000
Including: Travel to Sales Conventions, Industry Events
65
Miscellaneous
1 $ 180,000
1 $ 86,000
Including: Industry Association Memberships, Marketing Partnerships, CRM License, Booking Platform License,
Printed Materials, Registration Fees to Sales Conventions/Industry Associations, etc. -
Salary & Benefits
1 $ 525,000
$ 470,000
TOTAL
1 $ 1,323,000
$ 850,500
3. The RTA revised budget is showing spending just over $4.2 million in 2020. How confident are you that all of
those funds will be spent (For 2019 the RTA underspent its budget to actuals by just over $930K)?
The RTA's revised 2020 operating budget of $4.2M is based on RTA's 2019 actual operating expenditures of
$4.3M.
Response below is related to the fund balance:
The Board, by resolution, adopted and approved to create a contingency fund equivalent to the economic impact
of 911 on the local hospitality industry. Once that contingency fund balance goal was achieved, the Board
intended to build the combined unassigned and contingency funds balances equivalent to one year's operating
and capital expenditures. The travel & tourism industry is impacted often the hardest during an economic crisis
caused by recession and now because of COVID. The U.S. may be in a recession currently, but travel and tourism
is in a state of depression. Had the RTA not built our unassigned and contingency funds to nearly $4.5M, the RTA
would not be able promote tourism in the Seattle Southside area as effective as in the normal course of business
and likely be out of business in a few short years. Significant cutbacks would be necessary, and those cutbacks
are so deep, that would make it difficult to deliver on RTA's partner cities'service agreements.
Please see the updated proforma dated June 25, 2020. The RTA is planning to use nearly $3.4M of its unassigned
funds this year and the following next 2 years combined.
Will the funds in this application supplant or replace any funds currently proposed to be spent in the
RTA's budget?
No. this is a new strategy focused on COVID-19 response.
b. Can the RTA reallocate existing budget funds for the promotional side of the campaign?
No. The marketing efforts listed above are baseline brand awareness and relationship building. There are
not enough funds to cover an effective lead generation advertising campaign.
c. Will any of the funds requested from either Tukwila or SeaTac be used to pay RTA staff or to cover any
administrative costs?
15% administrative cost. This is important due to the considerable amount of training and oversight for
use of public funds. The RTA staff will be training and administrating this project in partnership with the
hotel sales teams. This allocation is for the administrative & training costs not involved in the
development, production or implementation of this program and its services. It's basically the RTA's cost
to deliver this program, which includes RTA staff time & materials for the 18-month long program.
d. If you don't receive the additional funds for promotion, what work would not be done?
The campaign will be delayed several years until TPA revenues recoup. Unfortunately, that will not put us
on the forefront of market recovery.
4. Why not use part of the $2 million from the County for the promotional aspect of the meeting campaign?
The King County campaign dollars are specifically for a countywide leisure campaign, which is more immediate
and provides a quicker ROL See attached excerpt from the King County Tourism Emergency Funding legislation.
5. With the $2 million being provided by King County and the RTA's existing $2 million currently budgeted for
professional services/ads/promotions, will the RTA be spending the total $4 million?
Please see revised proforma (dated June 25, 2020). We anticipate spending the entire Professional Services
revised budgeted amount. The King County dollars are limited to a specific campaign that will be spent with input
from the Council. We are presenting a strategy to market to a different target audience with different
messaging.
6. Question 15 of the LTAC application says that this program is not budgeted for 2020. Can the RTA just amend its
budget and it include it? The RTA has very high-level budget and it does not seem like specific programs are
identified in the budget process.
The RTA cannot amend its 2020 budget to include the proposed program because both the RTA's fund balance
and RTA's existing revenues are not enough to cover the proposed program expenditures.
7. How will the marketing within the Greater Seattle (within 50 miles) area be conducted? Will the Tukwila and/or
Seattle Southside name be used?
The plan has not been fully developed. Initial concepts include email marketing and retargeting as well as
business development activities. The Seattle Southside name and the Tukwila name will be used.
Dedicated Sponsorship Fund
8. When will payment for the rebate occur for the sponsorship (after booking, after the stay?)
Payment for the rebate will occur after the meeting has taken place and the pickup numbers are available from
the hotel partner.
9. What year do the room nights need to be realized?
2021.
10. If the sponsorship funds are unused, would the City retain the unused funds?
Yes, any unused funds will be refunded to the City or we can amend the contract to have them roll over to the
following year, at your discretion.
11. How would groups already under contract be verified to ensure they do not get the rebate?
Groups will be required to apply for the funding. RTA staff will analyze each application and determine if the
group qualifies. This will be done in close connection with the hotel partner where the event is taking place. We
will offer training sessions for the hotel sales teams to prepare them for which groups to offer the sponsorship
program to ensure the use of these dollars is most beneficial to the community.
12. Would groups booked at the Des Moines Four Point be eligible for any rebate?
It was our hope that this campaign would be a collaborative effort by all cities involved, and that it would be
supported financially by the cities able to do so for the good of the region, much like the Saving Local website
that is inclusive of all of King County. However, if that is a contentious issue, we can explain the circumstances to
the sales team at Four Points in Des Moines and not have the funds be available for their use.
67
General Questions
13. What are the KPIs for the initiative? How will these be tracked and verified?
Of course, we will track room nights and lead generation regarding the sponsorship fund. Once the plan is
finalized, we will determine the additional KPIs. These could include, but are not limited to, website landing page
visits, form completions, social engagement, and information requests.
14. Why are funds not being requested from Des Moines? Since Des Moines is not contributing will sales activities
only be directed to Tukwila and SeaTac?
Des Moines is contributing 50% of their lodging taxes and they do not have available funds to participate. There
is only one hotel with meeting space in Des Moines.
DRAFT, DISCUSSION ONLY
Lodging Tax Six Year Financial Plan
Revenue
Approved Applications Actuals
Year 2019 1 2019
Orginal Estimated Amount
Forecasted
2020 2021 2022 2023 2024 Totals
$ 800,000 $ 840,000 $ 882,000 $ 926,100 $ 972,405
Lodging Tax Collection (Revised, 5/7/20)
775000
$ 819,095
$ 400,000 $
450,000
$ 600,000
$ 700,000
$ 800,000
$ 3,769,095
Expenses
Marketing, Sales, Major Sponsorships
Contracted DMO Services $
202,500
$ 202,500
- $
202,500
$ 202,500
$ 202,500
$ 202,500
$ 1,215,000
SSRTA Emergency Funding
$ 195,000
Major Sponsorships Funding Request $
144,000
$ 150,000
- $
150,000
$ 150,000
$ 150,000
$ 150,000
$ 900,000
Seattle Southside Chamber of Commerce
$ 50,000
Virtual Sports
Small Event Development and Support $
12,500
$ 10,OOOM
$
15,000
$ 15,000
$ 15,000
$ 15,000
$ 85,000
Digital Development and Website (Experience Tukwila)
$
$ 88,375 $
50,000
$ 50,000
$ 50,000
$ 50,000
$ 288,375
SavingLocalKC.com
Destination Development
Wayfinding Plan Development and Installation $
$
$
150,000
$ 100,000
$ 100,000
$ 100,000
$ 550,000
Southcenter Art Investements $
$ 600
$ $
75,000
$ 75,000
$ 75,000
$ 75,000
$ 340,000
Tukwila Pond $
$ -
.$ $
200,000
$ 200,000
$ 200,000
$ 200,000
$ 925,000
World Cup Planning and Activiation $
$ -
$ - $
40,000
$ 40,000
$ 50,000
$ 50,000
$ 180,000
Ad mi nstratio n/Operations
Salary $
55,457
$ 58,040
$
58,284
$ 60,032
$ 61,833
$ 63,688
$ 358,463
Benefits $
17,847
$ 18,124
$
18,963
$ 19,532
$ 20,118
$ 20,722
$ 115,870
City Overhead Charge $
18,741
$ 18,741
19 $
19,998
$ 20,598
$ 21,216
$ 21,853
$ 121,823
Adminstration Expenses $
35,000
$ 21,385
30 $
30,000
$ 30,000
$ 30,000
$ 30,000
$ 171,385
Salary Savings
Total Expenditures: $
486,045
$ 479,390
$ 1,271,142 $
1,009,745
$ 962,663
$ 975,668
$ 978,763
$ 5,250,916
Starting Year Balance:
$1,617,625
$ 1,957,330 $
1,086,188
$ 526,443
$ 163,780
$ (111,888)
Ending Fund Balance:
$ 1,957,330
$ 1,086,188 $
526,443
$ 163,780
$ (111,888)
$ (290,650)
Notes
Salary for Bus Manager is split 50/50 between general fund and lodging tax. Salary savings
reflects credit to lodging tax for 14 furlough days for 2020.
Revenue Increase(2021-2024) 0.05
Salary is assumed to rise 3% per year. 0.03
Benefits are assuemd to rise 3% per year. 0.03
Indirect Cost Allocation is assumed to increase 3% per year. 0.03
This document does not bind the City to provide funds nor does it authorize any funding. All use of lodging tax funds must be approved by LTAC and the City Council through an application process.
Overhead charge is charged to all special accounts and recoups the cost of the general fund to support the lodging tax fund. This include facilities, IT services, legal, and accounting.
Cells in yellow show pending applications.
Cells in green show approved applications.
Cells in red are budgeted items that have not been encumbered.
6/30/2020
BJ M
M.
70
City of TuWla OoMrtd.Numiber- 19-104
Council Approval 6/17/19
6200 Southaenter'B.oMevarOjukM(a WA 98188.
CONTRACTFOR LibliGING TAX PUNIAW
This Contract for Lodging. Tax: Funding, (this "';�Lgreomopf) is entered into by Ond between the City
of Tukwila, Woshi - Ogt0h, a non charter boli64al MUNicip'al code. city hefiflhaftf rifferrod W at the 4Cityy,"
and the Seattle Southsiido Regional T"duriarn Authority, hpatnafter referred to -as, the"Contractor," whose
principal office is located at 3100 S.- 1760S.tireet, Ste 200. SeaTaq, Washington, .gfori,I
hi 98188,
'WHEREAS, the City imposes- a- -.special d9dis6 tax Under Chapter 82,08 of -the ReVited Code. of
Washington { -RCV), known as -the. "lodging tgcjx,"-on furnishing of lodging in hqtqls, motels and simila
r
business; enterprises, as authorized under Chapter 67.28- ROW, and.
WHEREAS, the City- is authorized -to use the lodging -tax -revenue for tourism promotion, as
-defined by Chapter-67.28 RM and: -
WHEREAS, the. Ooptractpr -Wt % forrned pursuant to ROW Z.21.730 through: 35.21.7-55 and the
Interlocal Agreemprit. forlhe Joint Establishment of -a Tourism Promotloh Area dated 67 7014 among
the:City;the City of.8iaaTao arfdtho.-City of - Des. Mblines (the. "116terlocal.Agreemerfl: purpose. cf
providing. tweigni proffidtloh services: fe and to. serve as a destination"thatketing 6tganiz*6flori4dr the City;
the Ofty'.of &eaYac, the -City of -Des. Moines .and other contractin parties;
WHEREAS, the, Contraddr is able to. ReIg promote the City to both overnight. and day vis,it6rs,
driving bOsinest- to TukM16 restaurants, hotelt:, feitallorsi and entertainment iPstablithm'Onts;.and
WHEREAS, on November 20, 2018.1ho-Cityt Lodging Tax�-Advisory-'-Cofpmiftie aohgidered and
approved Cohfractbr's request to Obtain kedging talc revenue for *tbufl9tb gromotloh;. and
WHEREAS, -on February 4,-..2019, the Tukwila City Goo cif concurred with the Lodging Tax
Advisory Committee's recommendation to providelodging tax revenue to. the: Contractor for tourism.
promotion; and
WHEREAS, it is appropriate lior the City to compensate -the:. Confractor fdr- the costs of promoting'
tourism (both day and ovemight),in-thp City;
IN CONSIDERATION 01: the mutual benefits and conditions hereiriaMw contained, the pg&Lis
hereto agree -as fo.l!oVvs'
1. -Scope and Schedullo. Of'SetOcts. to- bb,.'Pe.rfbnn-6d by Coffleackin Gentractor'shall perform
those services Bbsdtibed oh EXhibit.A attached hefet6 and incorporated herein byllhis reference -
as if fully- set for.tfj. In performing -such .services, Contractor sb-.alf at all times comply with all
Federal:, State, and loo8ij. statutes, rules arid ordinances; applicable to the. performance of such
services and the handling of any'funds used -iih dMhedtfori thbrevVith. Cotittattor:911,911 request
and obtain prior written approval from the C;ftY N the scope or -s6hpOuip- is to be rriddified in any
way.
CA Revised 2012 X j
0� 0 JS
Page . I of9.
6.1.
71
Exhibit. "A"
Seattle Souths1de Regional Tourism Authority
201912020 Scope of Services
Maintain a destination marketing website and social media accounts to attract inquiries from
leisure and business travelers and meeting planners primarily outside a 50-mile radius. The
website will include information and business listings for tourism -related businesses located in
Tukwila that hold a Tukwila business license including those business that do not pay lodging
tax or tourism promotion area ('TPA") assessments; business listings are to be provided by the
City.
2. Produce and distribute a Destination Guide that includes information and business listings for
tourism -related businesses that hold a Tukwila business license (list of licensees to be provided
by City staff,, including those business that do not pay lodging tax or TPA assessments.
3. Provide meeting planning assistance to planners looking host events in the Tukwila area. Lisv
all meeting resources in guide and distribute to potential clients.
4. Work with tourism -related business to promote the area as a meeting- and event -friendly
( destination at trade shows and client meetings.
4--
5. Produce and distribute a Dining Guide at least every other year that includes information and
business listings for area full service restaurants, including those located in Tukwila.
6. Organize familiarization ("FAM") tours that highlight local tourism -related businesses to other
industry affiliates, planners and media.
7. Include a reciprocal link to the City on www.SeattleSouthside.com in the "About Us" section
under 'Our Cities" (or comparable section. on a successor website operated by the Contractor).
B. Use social media platforms such as Facebook, Twitter, blog.posts, press releases, and e-
newsletters as vehicles to promote. the City's relevant tourism activities, events and festivals
and tourism business happenings..
9. Support the City's efforts to .attract visitors to local events by acting as a sourcing partner to
help secure vendors as well as:social media and PR support.
10. Produce anannual report per the Contractor's organizational documents and present such
report to the City Lodging Tax Advisory Committee, City Council, or other meetings, if
requested by the City.
CA Revised 1-2013
Page 6 of 9
72
14-049
Council Approval 4/7/14
INTERLOCAL AGREEMENT
FOR THE JOINT ESTABLISHMENT OF A COP
Y
. TOURISM PROMOTION AREA
THIS INTERLOCAL AGREEMENT FOR THE JOINT ESTABLISHMENT OF A
TOURISM PROMOTION AREA (this "Agreement") dated this _ day of ,
2014, is made and entered into by and among the CITY OF SEATAC ("SeaTac"), the CITY OF
TUKWILA ("Tukwila"), and the CITY OF DES MOINES ("Des Moines"), each being a
municipal corporation organized under the laws and statues of the State of Washington, for the
purpose of establishing a joint tourism promotion area pursuant to chapter 35.101 of the Revised
Code of Washington ("RCW").
RECITALS:
WHEREAS, Tukwila currently administers Seattle Southside Visitors Services
("SSVS"), a tourism promotion program funded by lodging taxes imposed and collected within
Tukwila, SeaTac, and Des Moines, and remitted to SSVS in exchange for tourism promotion
services; and
WHEREAS, the tourism industry is a vital and substantial component of the region's
economy and tourism promotion increases the number of visitors to the region which in turn
increases regional sales supporting the local economy; and
WHEREAS, the Legislature of the State of Washington has recognized the importance of
tourism promotion in the State of Washington and in 2003 passed Engrossed Substitute Senate
Bill No. 6026, codified as chapter 35.101 RCW (the "TPA Act"), authorizing counties with a
population greater than forty thousand but less than one million, and any city or town within
such a county, to establish a tourism promotion area for the purpose of imposing special
assessments on the furnishing of lodging to be expended exclusively on tourism promotion; and
WHEREAS, in 2009 the Legislature amended the TPA Act to allow two or more cities
located in a county with a population of one million or more acting jointly under chapter 39.34
RCW (the "Interlocal Cooperation Act") to form a tourism promotion area for such purpose; and
WHEREAS, other Washington counties and cities, including Pierce County, the Tri-
Cities, Spokane County, and Clark County, have established tourism promotion areas and have
dedicated such funds for tourism promotion; and
WHEREAS, the operators of lodging businesses located in southwest King County are
preparing to initiate the formation of a tourism promotion area pursuant to the TPA Act within
the jurisdictional boundaries of Tukwila, SeaTac and Des Moines (the "Seattle Southside TPA");
and
73
WHEREAS, depending on the rates of the assessments, the proposed Seattle Southside
TPA is projected to provide approximately $2.5 million of additional revenue for tourism
promotion each year; and
WHEREAS, the additional revenue stream is expected to help the tourism promotion
program currently administered by SSVS remain competitive with other destination marketing
organizations in the State of Washington, bring more visitors to the area, bolster hotel
occupancy, protect current jobs, create new jobs, increase business at restaurants and retail
stores, and increase patronage at arts, cultural and sporting venues in an ever increasingly
competitive marketplace; and
WHEREAS, assessments received from the proposed Seattle Southside TPA will be
remitted to a public development authority chartered by SeaTac pursuant to chapter 35.21 RCW;
and
WHEREAS, if formed, the Seattle Southside TPA is expected to provide needed
resources to increase tourism, which will increase hotel occupancy among participating hotels
within the defined area; and
WHEREAS, the promotion of the region to increase tourism will also provide economic
benefit to retail, restaurant, entertainment and cultural industries that are closely connected to the
hotel industry and critical to the health of the local economy; and
WHEREAS, SeaTac, Tukwila, and Des Moines (referred to herein as the "Parties")
currently fund certain basic operations and media expenses of SSVS with lodging tax revenues
and desire to have that work continue. As set forth herein, the Parties intend to commit certain
lodging tax revenues to fund regional tourism marketing by contracting with the public
development authority, or successor entity, for such services; and
WHEREAS, it is paramount that SeaTac and Tukwila continue to operate SSVS in its
current form until such time that the public development authority can assume all duties and
obligations of SSVS; and
WHEREAS, to form a tourism promotion area an initiation petition satisfying the terms
of the TPA Act must first be presented to the legislative authority having jurisdiction of the area
in which the proposed tourism promotion area is to be located and a public hearing must be held
after providing proper notice; and
WHEREAS, the Parties now desire to enter into this Agreement for the purpose of
appointing a legislative authority to receive the initiation petition and otherwise carry out the
terms of the TPA Act in order to help facilitate the formation and operation of the Seattle
Southside TPA;
NOW THEREFORE, it is hereby agreed and covenanted among the undersigned as
follows:
74
guests without charge for promotional purposes, (3) available exclusively to members or guests
of members of a private member -owned clubs or its reciprocal clubs, or (4) contracted with
airline crews.
(b) The Legislative Authority shall contract with the State Department of Revenue for
the administration and collection of the Special Assessments pursuant to RCW 35.101.090.
Special Assessments shall. be deposited into the local tourism promotion account created in the
custody of the State Treasurer under RCW 35.101.100. It is understood and agreed that in
accordance with RCW 35.101.100, the State Treasurer has the authority to distribute the revenue
from the tourism promotion account allocable to the Seattle Southside TPA to the Legislative
Authority, or directly to the SSRTA, on a monthly basis. SeaTac shall act as fiscal agent to the
Seattle Southside TPA and shall be responsible for receiving Special Assessments from the State
Treasurer and holding such funds in a segregated account(s) until remitted to SSRTA pursuant to
Section 7 of this Agreement.
(c) Any change in the Special Assessment rates for any Zone as set in the resolution
of the Legislative Authority shall be made only by amendment of the resolution by the
Legislative Authority and only upon written request by the persons who Operate Lodging
Business in the proposed area who would pay sixty percent or more of the proposed charges and
with the approval and consent of the SSRTA Board of Directors. No increase in the Special
Assessment rates for any Zone or the boundaries of any Zone shall be made by the Legislative
Authority except after receipt of the written request of persons who Operating Lodging
Businesses as identified in the preceding sentence and upon the affirmative approval of the
SSRTA Board of Directors.
(d) It is understood and agreed by the Parties hereto that the Special Assessments
imposed in the Seattle Southside TPA are not a tax on the "sale of lodging" for the purposes of
chapter 82.14 RCW and are not applicable to temporary medical housing exempt under
chapter 82.08 RCW.
(e) It is understood and agreed by the Parties that the Special Assessments imposed
under this Agreement are in addition to the special assessments that may be levied under chapter
35.87A RCW.
Section 5. Use of Special Assessment Revenue. All of the revenues from Special
Assessments collected by the State Department of Revenue from Lodging Businesses within the
Seattle Southside TPA shall be remitted by the Legislative Authority to SSRTA and shall be
used exclusively for Tourism Promotion as defined herein, and for no other purpose, in
accordance with the Annual Budget. The revenue derived from the Special Assessments shall be
used only for the following purposes:
(a) The general promotion of tourism within the Seattle Southside TPA as specified
in the business plan of the SSRTA;
(b) The marketing of convention and trade shows that benefit local tourism and the
Lodging Businesses in the Seattle Southside TPA;
7
75
(c) The marketing of the Seattle Southside TPA region to the travel industry in order
to benefit local tourism and the lodging businesses in the Seattle Southside TPA;.
(d) The marketing of the Seattle Southside TPA region to recruit sporting events in
order to promote local tourism and to benefit the Lodging Businesses and tourism industry
within the Seattle Southside TPA; and
(e) Direct administration, operation, formation, and start-up costs associated with th
Seattle Southside TPA and the ongoing management and maintenance of the Seattle Souths' e
TPA program, including but not limited to staff costs, public notice advertising, legal costs,
accounting and auditing (including audits of the Parties and the SSRTA as they relate to this
Agreement), as approved by the SSRTA Board of Directors, provided no funds will be used for
costs not directly related to operation of the Seattle Southside TPA, this Agreement, or the
SSRTA.
Section 6. Lodging Taxes. The Parties intend to commit lodging tax revenues to
fund regional tourism marketing by contracting with the SSRTA, or successor entity. The
Parties intend the minimum annual funding levels to be set according to the following table:
Annual Commitment of Lodging Tax to the SSRTA*
Year
SeaTac
Tukwila
Des Moines
2014
$835,000
$712,000
100% of monthly lodging tax receipts
2015
$460,000
$405,000
100% of monthly lodging tax receipts
2016
$383,333
$337,500
100% of monthly lodging tax receipts
2017
$306,666
$270,000
100% of monthly lodging tax receipts
2018 and beyond
$230,000
$202,500
100% of monthly lodging tax receipts
* The exact amount of funding for 2014 will be pro -rated based upon the actual date of
establishment of the SSRTA.
Notwithstanding the foregoing, the Parties acknowledge and agree that the final
allocation, uses, and level of lodging tax revenue is subject to the provisions of chapter 67.28
RCW. Recognizing that RCW 67.28.1816 requires that the annual expenditures of the respective
City's lodging tax be approved by the respective city council (based on a recommendation from
its respective lodging tax advisory committee) this Agreement provides no guarantee that future
city councils will approve future funding.
The Parties further recognize that Tukwila has. financial obligations in place to operate
SSVS. Tukwila may, at its sole discretion and absolute authority, reduce the annual payment to
the SSRTA in order to meet obligations and liabilities associated with the operation of SSVS,
including, but not limited to, labor, lease costs, payment of utilities, and other contracts executed
in support of SSVS by Tukwila.
76
Seattle Southside Regional Tourism Authority (RTA) Financial Pro Forma
2020 - 2022
2019
2019
2019
2020
2020
2021
2022
Approved
Year-end
Year-end Actuals Approved Budget
Projection
Projection
Projection
Budget
Estimates :i
(Unaudited)
Revenues
1 TPA Special Assessments
$ 3,674,825 $
3,873,000
$
3,963,260 $
3,900,000
$ 1,272,459
$ 1,585,304
$ 1,823,100
2 LTC -Tukwila
202,500
202,500
202,500
202,500
202,500
202,500
202,500
3 LTC-SeaTac
830,000
830,000
830,000
830,000
830,000
830,000
830,000
4 LTC -Des Moines
111,000
55,500
52,497
55,500
15,000
7,500
10,000
6 Interest Revenue
48,500
68,181
71,829
65,000
22,500
6,000
7,500
7 Misc Other Revenue
2,500
4,136
10,422
2,500
5,500
5,500
5,500
8 Advertising
75,000
35,090
40,480
50,000
7,500
7,500
7,500
Total Revenues
$ 4,944,325 $
5,069,407
$
5,170,999 $
5,105,500
$ 2,355,459
$ 2,644,304
$ 2,896,100
Expenditures
8 Salaries & Benefits
$ 1,622,209 $
1,498,800
$
1,451,758 $
1,630,500
$ 1,393,902
$ 1,315,000
$ 1,350,542
9 Supplies
31,000
13,000
14,197
15,000
10,000
10,000
10,000
10 Small Equipment
20,000
6,500
5,755
20,000
11,000
7,000
7,000
11 Professional Services/Ads/Promotions
2,200,000
2,200,000
2,013,177
2,323,000
1,480,000
1,600,000
1,650,000
12 Communications/Postage
81,000
41,000
36,088
41,000
30,000
30,000
30,000
13 Travel
115,000
80,000
47,357 .
80,000
13,000
35,000
40,000
14 Operating Leases
120,000
113,500
87,512
120,000
111,000
119,000
120,000
15 Insurance
12,000
10,746
10,611
12,000
11,000
12,000
13,000
16 Maintenance
6,000
3,000
3,654
6,000
4,000
4,000
4,000
17 Miscellaneous/Printing
861,000
600,000
589,609
751,000
476,000
600,000
650,000
1S Capital -Digital Images
39,000
39,000
11,000
39,000
11,000
20,000
25,000
Total Operating Expenditures
5,107,209
4,605,546
4,270,718
5,037,500
3,550,902
3,752,000
3,899,542
19 Capital Outlay
100,000
102,927
26,938
68,000
20,000
20,000
20,000
Total Expenditures and Capital Outlay
5,207,209
4,708,473
4,297,657
5,105,500
3,570,902
3,772,000
3,919,542
20 Excess of Revenues over (under) expenditures
(262,884)
359,934
873,333
-
(1,215,443)
(1,127,696)
(1,033,442)
Beginning Fund Balance
$ 2,253,571 $
3,592,569
$
3,582,569 $
3,942,503
$ 4,372,162
$ 3,156,719
$ 2,029,023
Add: Changes in Financial Statement Non -Spendable
and Committed Balances from 2016
N/A
N/A
N/A
N/A
ADD: Unspent Discretionary Costs
-
Ending Fund Balance
$ 1,890,687 $
3,942,503
$
4,455,902 $
3,942,503
$ 3,156,719
$ 2,029,023
$ 995,581
Contingency Reserve (2 months)
$ 868,042 $
784,902
$
716,419 $
839,751
$ 591,935
$ 625,458
$ 650,054
Economic Downturn/Recession Reserve (11%of S
$ 404,231 $
426,030
$
435,959 $
429,000
$ 139,970
$ 174,383
$ 200,541
Capital Asset Replacement Reserve
$ 110,000 $
110,076
$
110,076 $
183,465
$ 183,465
$ 163,465
$ 143,465
Unassigned Balance
$ 508,414 $
2,621,495
$
3,193,448 $
2,490,286
$ 2,241,348
$ 1,065,716
$ 1,521
600
610
620
Total
Sales &
Marketing &
RTA Operating
Executive
Services
Comm
Budget
550,000
470,000
380,000
1,393,902
6,500
2,500
1,000
10,000
11,000
-
-
11,000
185,000
275,000
1,020,000
1,480,000
23,000
6,000
1,000
30,000
2,000
11,000
13,000
111,000
-
-
111,000
11,000
-
-
11,000
4,000
-
-
4,000
135,000
86,000
255,000
476,000
-
11,000
11,000
1,038,500
850,500
1,668,000
3,5 50,902
85,500
New Goal $3.5 M
m
m City of Tu I
City Council Planning & Economic Development Committee
Meeting Minutes
July 6, 2020 - 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency
Councilmembers Present: Thomas McLeod, Kathy Hougardy, Zak Idan
Staff Present: Rachel Bianchi, Vicky Carlsen, Derek Speck, Laurel Humphrey, Minnie
Dhaliwal, Brandon Miles
Guests: Andrea Reay, Seattle Southside Chamber of Commerce; Katherine
Kertzman, Seattle Southside Regional Tourism Authority
Chair McLeod called the meeting to order at 5:30 p.m.
I. BUSINESS AGENDA
A. Interim Policy: Outdoor Seating and Signage
Staff is seeking Council affirmation of an interim policy that allows businesses to offer outdoor
seating in parking areas and use temporary signs with greater flexibility in response to COVID-
19.
Committee Recommendation
Unanimous approval. Forward to July 13, 2020 Committee of the Whole.
B. Business Recovery Grants Update
Committee members and staff discussed various grant opportunities related to COVID-19 business
recovery.
Committee Recommendation
Discussion only. Return to Committee with report of survey responses and funding proposal.
C. Lodging Tax Funding Applications
Staff is seeking Council decision on funding requests from the Seattle Southside Chamber of
Commerce ($50,000), Seattle Southside Regional Tourism Authority ($195,000) and the City of
Tukwila ($88,375). The Lodging Tax Advisory Committee approved all three. Staff
recommends reducing the amount to the SSRTA to $75,000 due to duplication of services with
the existing interlocal agreement. Ms. Kertzman addressed the Committee and stated the
funding request is wholly for additional services and that if Tukwila does not approve the full
amount the SSRTA will remove Tukwila from the scope of the program.
Committee Recommendation
Unanimous approval of $50,000 to the Seattle Southside Chamber of Commerce, $75,000 to
the Seattle Southside Regional Tourism Authority, and $88,375 to the City of Tukwila. Forward
to July 13, 2020 Committee of the Whole.
79