HomeMy WebLinkAboutCOW 2020-11-09 Item 4F.1 - Funding - Tourism Funding Allocation PrinciplesITEM INFORMATION
STAFF SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 11/9/20
AGENDA ITEM TITLE Tourism Funding Allocation Principles
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 11/9/20 Mtg Date 11/23/20 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor HR DCD Finance Fire TS P&R Police PW
SPONSOR’S
SUMMARY
Discussion and motion on guiding principles for the allocation of tourism funds
(Lodging Tax and Tourism Promotion Fee).
REVIEWED BY Trans&Infrastructure CommunitySvs/Safety Finance Com Planning/Economic Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: 11/2/20 COMMITTEE CHAIR: McLeod
RECOMMENDATIONS:
SPONSOR/ADMIN. Mayor’s Office, Economic Development
COMMITTEE Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$N/A $N/A $ N/A
Fund Source: N/A
Comments: N/A
MTG. DATE RECORD OF COUNCIL ACTION
11/9/20
11/23/20
MTG. DATE ATTACHMENTS
11/9/20 Informational Memorandum, dated 10/27/20
Informational Memorandum, “Permitted Uses of Lodging Tax Funds,” dated 9/23/16
Informational Memorandum, “Tourism Funding Discussion,” dated 5/20/20 (Updated
7/27/20).
Tourism Funding at a Glance One Pager
Staff PowerPoint Presentation
PED Minutes, November 2, 2020
11/23/20
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
11/9/20 BJM
11/23/20 BJM 4F.1
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Economic Development Committee
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: October 27, 2020
SUBJECT: Tourism Funding Allocation Principles
ISSUE
Discussion of guiding principles for the allocation of tourism funds (lodging tax and Tourism
Promotion Area fee).
BACKGROUND
Over the last 20 years the City Council has authorized the collection of two separate revenue
sources for tourism funding. These revenue sources include the City’s lodging tax and Tourism
Promotion Area (TPA) fee. In 2019, in total just over $1.5 million of combined funds were
collected through the lodging tax and TPA fee.
Lodging Tax Fund
Pursuant to Revised Code of Washington (RCW) 67.28 and Tukwila Municipal Code (TMC)
3.40 the City charges a lodging tax1 of one percent on eligible stays in lodging businesses
(hotels, extended stays, motels, bed and breakfasts, and Airbnbs).
Allowable Uses
RCW 67.28.1818 limits the use of lodging tax funds as follows:
“All revenue from taxes imposed under this chapter shall be credited to a special fund in the
treasury of the municipality imposing such tax and used solely for the purpose of paying all or
any part of the cost of tourism2 promotion3, acquisition4 of tourism related facilities, or operation
of tourism related-facilities.”
RCW 67.28.1816 goes into further detail about permitted expenditures of lodging tax funds,
specifying:
“Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly
through a convention and visitors bureau or destination marketing organization for:
1 The lodging tax is separate and should not be confused with the Tourism Promotion Area (TPA) Fee. The TPA fee
was authorized by the City of Tukwila as a result of an Interlocal Agreement with the Cities of SeaTac and Des
Moines. The TPA fee is remitted directly to Seattle Southside Regional Tourism Authority.
2 RCW 67.28.080 defines ‘Tourism’ as “economic activity resulting from tourists, which may include sales of
overnight lodging, meals, tours, gifts, or souvenirs.”
3 RCW 67.28.080 (6) defines ‘Tourism Promotion’ as “…activities, operations, and expenditures designed to
increase tourism, including but not limited to advertisings, publicizing, or otherwise distributing information for the
purpose of attracting and welcoming tourists; developing strategies to expand tourism; operation tourism promotion
agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists.”
4 RCW 67.28.080 (1) provides the following definition of “Acquisition”: “…siting, acquisition, design, construction,
refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of
general obligation bonds, leases, revenue bonds, or other obligations issued or incurred for such purposes…” 99
INFORMATIONAL MEMO
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(a) Tourism marketing;
(b) The marketing and operations of special events and festivals designed to attract tourists;
(c) Supporting the operations and capital expenditures of tourism related facilities owned or
operated by a municipality or public facilities district created under chapters 35.57 and
36.100 RCW; or
(d) Supporting the operations of tourism related facilities owned or operated by nonprofit
organizations described under 26 U.S.C Sec. 501(c)(3) and 26 U.S.C Sec. 501 (c)(6) of
the internal revenue code of 1986, as amended.
It is important to point out that RCW 67.28 provides no definition of “tourist.” Historically, the City
of Tukwila has defined as a “tourist” as someone who lives outside of Tukwila and visits the
City, either for a day or to spend the night. Additionally, there is a common misconception that
lodging tax funds can only be used to support activities that create “heads in beds” or travel
more than 50 miles. Again, this is not a requirement of State law. While the City must report
metrics, such as hotel stays and visitors, when using lodging tax funds. The funds do not have
to be awarded to activities that solely generate hotel room nights.
Under current state law, lodging tax funds cannot be used to support general city operations or
activities. Attached is a memo presented to the City Council in 2016, which provides more
details on allowable uses of lodging tax funds.
Status of Fund
As of May 7, 2020, there was $1.985 million in the City’s lodging tax fund. In 2019, annual
revenues for lodging tax collection were just over $800,000. With the sharp drop off in travel, the
City is forecasting a significant drop off in lodging tax collection for 2020 and possibly for 2021.
The City is contractually obligated through 2020 to provide Seattle Southside Regional Tourism
Authority (SSRTA) $202,500 in lodging tax funds. Additionally, the City has two approved
applications to the City’s Parks and Recreation Department of $40,000 for art along Baker Blvd
and $125,000 to help fund a master plan for Tukwila Pond5.
There is no requirement that the lodging tax fund be spent down annually. Unspent funds will
remain in the 101 fund and can be used in future years, subject to the use limitations outlined
above.
Historical Use of Funds
The largest single recipient of lodging tax funds from the City over the last 18 years has been
Seattle Southside Regional Tourism Authority (SSRTA). Until 2015, SSRTA was operated by
the City of Tukwila as Seattle Southside Visitor Service (SSVS). The Museum of Flight, City of
Tukwila, Starfire Sports, Renton Chamber of Commerce, Seattle Southside Chamber of
Commerce, and others have also received funding in the past. Any entity, including for-profit
organizations, is eligible to receive lodging tax funds, provided it is engaged in activities eligible
to be funded with lodging tax funds.
Tourism Promotion Area
Tourism Promotion Areas (TPA) are authorized under RCW 35.101. Outside King County
individual cities, towns, and counties can form their own TPAs. For most municipalities in King
County, a TPA must include at least two municipalities (this requirement does not apply to the
City of Federal Way).
5 The City also had an approved application and contract with the Seattle Seawolves, but this contract was canceled
due to the COVID-19 pandemic. Virtual Sports also had an approved application and staff has not yet entered into a
contract due to the scope of work being impacted by Stay Home, Stay Healthy Order.
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INFORMATIONAL MEMO
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In 2014 the Cities of Tukwila, Des Moines, and SeaTac executed an interlocal agreement (“TPA
ILA)” to form a TPA to cover the combined boundaries of the three cities. Through the TPA ILA
the cities agreed that the City of SeaTac would serve as the legislative authority for the
combined city area for purposes of forming the TPA and overseeing the TPA on behalf of the
three cities. Any city can terminate its relationship under the TPA ILA Agreement by providing
one-year notice to the other city partners. The ILA with the three cities can be updated at any
time, subject to the approval of the three cities. SSRTA is not a party to the TPA ILA.
In 2014, after receiving a petition from hoteliers from within the three cities, the City of SeaTac
formally adopted a resolution forming the TPA and setting a TPA fee in the three-city area. The
fee was $2 per night per eligible hotel stay in a hotel or motel with at least 90 rooms 6. The $2
rate was the maximum permitted under the State law in effect at that time. State law was
recently been amended to allow the rate to go up to $5 per night, if 60% of the businesses that
would pay the increase petition for the increase and if it is approved by the legislative authority.
Allowable Uses7
RCW 35.101.130 states that the Legislative Authority, “…shall have sole discretion as to how
the revenue derived from this charge is to be used to promote tourism promotion that increases
the number of tourists to the area.”
‘Tourism Promotion’ is defined as, “…activities and expenditures designed to increase tourism
and convention businesses, including but not limited to advertising, publicizing, or otherwise
distributing information for the purpose of attracting tourists, and operating tourism designation
marketing organizations.”
Unlike the lodging tax RCW, the TPA RCW provides a definition of tourist8.
A ‘tourist’ means a person who travels for business or pleasure on a trip:
(a) Away from the person’s place of residence or business and stays overnight in paid
accommodations;
(b) To a place at least fifty miles away one way by driving distance from the person’s place
of residence or business for the day or stays overnight. However, island communities
without land access are exempt from the mileage requirement under this subsection
(5)(b); or
(c) To another country or state outside of the person’s place of residence or business .
6 The TPA fee is a flat fee, while the lodging tax is a percentage. This allows the TPA to collect higher revenue than
the lodging tax when rates are low. For example, a room at a hotel going for $100 a night would only provide $1 in
lodging tax funds, while the TPA gets the full $2.
7 RCW 35.101 was amended by the last legislative session. These changes went into effect on July 1, 2020.
8 This definition went into effect on July 1, 2020.
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Historical Use of Funds
Per the TPA ILA, the City of Tukwila does not receive the funds and 100% of the funds (less a
1% administration charged by the Department of Revenue) generated for the TPA go directly to
SSRTA. SSRTA is a destination marketing organization and uses these funds, as well as the
TPA fee generated in the Cities of SeaTac and Des Moines, for tourism promotion activities and
administration costs.
Tukwila Tourism Spending in 2019
The use of the City’s tourism funds (lodging and TPA funds) can be categorized into four distinct
categories:
Category Description Geographical
Target
Entity(es)
Performing
Services
2019 Funding
from Tukwila
Lodging Tax
2019 Tukwila
TPA Funds
2019 Total
Seattle
Southside
Brand
Specifically
focused on
tourism
marketing and
sales under
the “Seattle
Southside”
name.
Outside 50
miles of the
City.
Seattle
Southside
Regional
Tourism
Authority
(SSRTA)
$202,500 100% of all
funds
collected,
minus 1%
administration
charge by the
Department of
Revenue for
the
collection),
estimated at
$1 million.
$1,202,500
Seattle and
other brands
Promoting the
City of Tukwila
under different
brand names,
such as
“Seattle” in
partnership
with Visit
Seattle or the
“Kent Valley
WA”
aerospace
brand with the
cities of Kent,
Renton, and
Auburn.
Outside 50
miles of the
City
Visit Seattle
Kent Valley
Wa
None. None. $0.00
Destination
Development
Focused on
investments in
the City’s
tourism
infrastructure,
events, and
festivals.
Sponsorships
of small and
large events
falls into this
category.
Outside and
within 50 miles
of the City.
Starfire Sports
Museum of
Flight
City of Tukwila
(Tukwila Pond)
City of Tukwila
(Southcenter
Art)
$180,000
(approximately).
Tukwila Pond
and Southcenter
Art are 2020 and
2021 projects.
None. $180,000
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INFORMATIONAL MEMO
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Tukwila Brand Marketing
under the
“Tukwila”
name withing
the greater
Seattle area
such as
through
Experience
Tukwila
Within 50 miles
of the City
City of Tukwila None None $0.00
Seattle Southside Regional Tourism Authority
SSRTA is the City’s primary destination marketing organization9. SSRTA’s mission is to help
promote the Seattle Southside region (cities of Des Moines, Tukwila, and SeaTac) for tourism.
In 2019, SSRTA had total operating expenditures of $4.297 million (See below).
SSRTA is the successor to Seattle Southside Visitor Service (SSVS), which until 2015 was run
as a division of Tukwila’s Economic Development Office. The Cities of Des Moines and SeaTac
were serviced by SSVS via interlocal agreements with the City of Tukwila. At one time the City
of Kent was also served by SSVS but left in 2014.
In 2012 the Cities of Tukwila, SeaTac, and Des Moines began to have conversations about
forming a TPA, with the goal of providing additional funds for tourism promotion activities. These
conversations were the result of requests by area hoteliers for the cities to consider creating a
TPA. As discussed above, the cities entered an interlocal agreement in 2014 for the creation of
a TPA. A TPA fee began to officially be collected in the spring of 2015.
Through the TPA ILA, the cities of Tukwila, SeaTac, and Des Moines also provided a
recommended amount of lodging tax funds each city would provide to SSRTA annually. The
lodging tax contribution is a “recommended amount” and no City is contractually obligated to
provide the amount listed in the TPA ILA. The table below shows the suggested lodging tax
contributions to SSRTA from the three TPA cities.
Year SeaTac10 Tukwila Des Moines11
2014 $835,000 $712,000 100% of
lodging tax
funds.
2015 $460,000 $405,000
2016 $383,333 $337,500
2017 $306,666 $270,000
2018 and
beyond
$230,000 $202,500
The TPA creation provided addition funds available for tourism promotion activities in the
Seattle Southside region. The table below shows the total expenditures for SSVS and SSRTA
since 2010. In 2016 the total expenditures for tourism promotion by SSRTA increased over
180% from the prior year. In 2019, through the City’s participation in the TPA ILA, SSRTA
received over $1 million in funds from the City for tourism promotion activities.
10 The City of SeaTac has chosen to provide more funds to SSRTA than what was outlined in the TPA ILA.
11 The City of Des Moines no longer provides 100% of its lodging tax funds collected to SSRTA.
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Year Total Expenditures
(SSVS and SSRTA)
% Change in
SSVS and
SSRTA
Expenditures
from previous
year.
Total Lodging
Revenue in the
Cities of Des
Moines, Tukwila,
and SeaTac.
% Change in
lodging
revenue from
previous year.
2010 $1,321,879 N/A $190,337,838 N/A
2011 $1,525,988 15.44% $201,068,568 5.64%
2012 $1,470,058
(3.67%) $217,520,038 8.18%
2013 $1,428,043 (2.86%) $230,190,887 5.83%
2014 $1,462,123 2.39% $259,819,652 12.87%
201512 $1,504,207 2.88% $292,605,392 12.62%
2016 $4,248,883 182.47% $302,062,920 3.23%
2017 $4,533,770 6.70% $318,864,960 5.56%
2018 $4,634,628 2.22% $330,574,999 3.67%
2019 $4,297,657 (7.27%) $333,565,806 .904%
12 SSRTA did not take over the functions of SSVS until the end January 1, 2016. The expenditures provided for
2015 are Tukwila’s expenditures for SSVS.
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This table was provided to PED in the summer is being shown to provide budget context for
SSRTA. SSRTA is still working on its 2021 budget and an amendment to its 2020 budget.
DISCUSSION
In a memo dated May 2020 (updated July 27, 2020) staff outlined several issues with the City’s
tourism funding. A copy of the May 2020 memo is attached with this memo. The issues raised
were:
1. Need for strategic focus for lodging tax funds and TPA funds.
2. Lack of marketing efforts for Tukwila in the Greater Seattle Area.
3. Tourism Promotion versus Destination Development.
4. Lack of other organizations doing tourism promotion and tourism development activities,
such as downtown associations and neighborhood groups.
5. Leveraging Lodging Tax Funds to Obtain Grants.
6. The Need for More Varied Use of Lodging Tax Funds.
7. Using Lodging Tax Funds for Business Attraction.
8. Lack of Metrics to Track Success.
To address these issues staff is suggesting that the City adopt guiding principles for the City’s
tourism funds. The overall goal with these principles is to help develop the City’s tourism
economy, both in the short and long term. More importantly, staff is suggesting the City be
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strategic in how tourism funds are used. These principles deal both with the lodging tax fund
and the TPA fee.
Draft Tourism Principles
1. The TPA revenues should be used to attract overnight visitors from outside the 50-mile
radius using the Seattle Southside brand and focusing on state, national, and global
marketing.
2. Lodging tax funds should be used for the following:
a. Marketing efforts to attract visitors under other brands (such as Seattle and Kent
Valley WA ).
b. Marketing to attract day visitors from within the greater Seattle region using the
“Tukwila” brand.
c. Destination Development
i. Tourism infrastructure
ii. Events and Festivals
1. Operations
2. Marketing
3. Development
3. The City of Tukwila should control how its brand is used within the region.
Applying these guiding principles to 2019 funding allocations would have resulted in
approximately $1 million in TPA funds going to SSRTA for state, national, and global
marketing efforts, while approximately $800,000 in lodging tax would have remained for
the other efforts identified above. The difference would have been $202,500.
The principles do no supersede State law requirements for the use of TPA fees and
lodging tax funds. In addition, these principles should be viewed as providing guidance,
and flexibility should remain in the event of a good activity or event that would generate
significant economic activity, but which does not fall easily into the categories listed
above. Furthermore, the principles do not preclude any organization (including the
SSRTA) from requesting lodging tax funds; however, how well the application fulfills the
guiding principles would be a consideration during the approval process.
City staff supports attracting overnight visitors to our three-city area under the Seattle
Southside brand and contracting with the SSRTA for those destination marketing
services. That work is very important to supporting and growing our tourism economy,
but the City also needs to make investments in other tourism related activities and
initiatives, such as festivals and events, better tourist destination experiences (e.g. in
Southcenter and Tukwila International Boulevard) and strengthening the Tukwila brand
within the region.
FINANCIAL IMPACT
None at this time.
RECOMMENDATION
Forward to November 9 Committee of the Whole for discussion and the consent agenda on the
November 23 Special meeting.
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ATTACHMENTS
Informational Memorandum, “Permitted Uses of Lodging Tax Funds,” dated September
23, 2016.
Informational Memorandum, “Tourism Funding Discussion,” dated May 20, 2020 (Updated
July 27, 2020).
Tourism Funding at a Glance One Pager
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Safety Committee
FROM: Brandon J. Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: September 23, 2016
SUBJECT: Permitted Uses of Lodging Tax Funds.
ISSUE
The City charges a 1% special excise tax on the sale of or charge made for overnight lodging
stays. State law limits how these funds can be used. This memo outlines the limits on the use of
lodging tax and discusses permitted and prohibited use of the funds1.
BACKGROUND
Revised Code of Washington (RCW) 67.28.1815 limits the use of lodging tax funds as follows:
[A]ll revenue from taxes imposed under this chapter shall be credited to a special fund in
the treasury of the municipality imposing such tax and used solely for the purpose of
paying all or any part of the cost of tourism2 promotion3, acquisition4 of tourism-related
facilities, or operation of tourism-related facilities.
RCW 67.28.1816 goes into further detail about permitted expenditures of lodging tax funds,
specifying:
Lodging tax revenues under this chapter may be used, directly by any municipality or
indirectly through a convention and visitors bureau or destination marketing organization
for:
(a) Tourism marketing;
1 RCW 67.28 places strict limits on the type of entities eligible to receive lodging tax funds. Additionally,
approving expenditures of lodging tax funds is a two-step process, requiring review by the City’s Lodging
Tax Advisory Committee and City Council. State Law gives considerable authority to the City’s Lodging
Tax Advisory Committee in reviewing and approving funding requests. For more information on entities
eligible to receive funding and the process for awarding funds, see the memo dated September 22, 2016,
entitled, “Lodging Tax Approval Process.”
2 RCW 67.28.080 defines “Tourism” as “economic activity resulting from tourists, which may include sales
of overnight lodging, meals, tours, gifts, or souvenirs.”
3 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.”
4 RCW 67.28.080 (1) provides the following definition of "Acquisition" …”includes, but is not limited to,
siting, acquisition, design, construction, refurbishing, expansion, repair, and improvement, including
paying or securing the payment of all or any portion of general obligation bonds, leases, revenue bonds,
or other obligations issued or incurred for such purpose or purposes under this chapter.”
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(b) The marketing and operations of special events and festivals designed to attract
tourists;
(c) Supporting the operations and capital expenditures of tourism-related facilities5
owned or operated by a municipality or a public facilities district created under
chapters 35.57 and 36.100 RCW; or
(d) Supporting the operations of tourism-related facilities owned or operated by nonprofit
organizations described under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec.
501(c)(6) of the internal revenue code of 1986, as amended.
DISCUSSION
Several Councilmembers have inquired about permissible uses of lodging tax funds. Based
upon the limitations outlined above, staff would like to provide some guidance on the future use
of lodging tax funds.
A simple question that can be asked to help determine if lodging tax funds can be used is:
“Is the activity, operation or expenditure designed to increase tourism or welcome tourists to the
City?”
If the answer is yes, then lodging tax might be able to be used after further analysis of the
specific funding request.
Tourism could include people who travel and stay overnight in the City (overnight visitors) or
those who travel to the Tukwila for the day (day visitors). Economic activity from Tukwila
residents would not be considered tourism.
The following lists examples of activities, operations and expenditures that would likely be
eligible for lodging tax funding. This is not intended to be an exhaustive list.
• Marketing and advertising intended to bring overnight visitors to the City.
• Marketing and advertising intended to bring day visitors to the City.
• Installation of new “way finding” signs for tourists and installation of City identification
signs.
• Sponsoring, operating, and marketing of special events or festivals, either by the City or
third parties, if designed to bring tourists to the City.
• Installation of banners on street poles or across city streets if either welcoming tourists to
the City or promoting upcoming events.
• Capital improvements, such as park improvements or trail improvements, designed to be
used primarily by tourists.
• Maintenance of parks primarily used by tourists, such as Fort Dent Park or the Green
River trail.
5 RCW 67.28.080 (7) defines "Tourism-related facility" as, “...real or tangible personal property with a
usable life of three or more years, or constructed with volunteer labor that is: (a)(i) Owned by a public
entity; (ii) owned by a nonprofit organization described under section 501(c)(3) of the federal inter nal
revenue code of 1986, as amended; or (iii) owned by a nonprofit organization described under section
501(c)(6) of the federal internal revenue code of 1986, as amended, a business organization, destination
marketing organization, main street organization, lodging association, or chamber of commerce and (b)
used to support tourism, performing arts, or to accommodate tourist activities.”
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• Supporting marketing and operations of government entities (City of Tukwila and SSRTA)
or nonprofit organizations, when activities performed are designed to attract tourists to
the City or welcome tourists to the City.
The following lists examples of activities, operations and expenditures that would likely NOT be
eligible for lodging tax funding. This list is not intended to be exhaustive.
• Funding basic general governmental operations of the City6
• Marketing and advertising directed at residents.
• Way finding signs in residential areas intended for residents.
• Sponsoring of special events or festivals intended for residents.
• Capital improvements, such as park improvements, intended for residents (such as at
parks used primarily by residents).
• Maintenance of parks primarily used by residents, such as Hazelnut Park.
• Capital expenditures for tourism related facilities owned or operated by a non-profit.
Reporting Requirements
RCW 67.28.1816 requires that entities receiving lodging tax fund report metrics back to the
municipality. Per State Law, the following is required to be submitted to the City in the project
close out for a specific funding request:
1. Actual number of people traveling for business or pleasure on a trip.
2. Number of people traveling for business and pleasure and staying in paid
accommodations in the City.
3. Visitors who traveled more than 50 miles or more from their place of residence of
businesses for the day or staying overnight.
4. Visitors who traveled from another county or state.
It is important to note that the City’s Lodging Tax Advisory Committee is granted significant
authority by RCW 67.28.1816 when reviewing lodging tax requests. The City Council cannot
reverse a decision of the Committee if the Committee chooses not to approve a specific funding
application. Traditionally, the Committee has considered the metrics outlined above very
strongly when considering funding requests.
RECOMMENDATION
Information and discussion only. Forward to the October 10, 2016 Committee of the Whole
meeting for discussion by the full Council.
ATTACHMENTS
• None.
6 The City is permitted to charge special funds, like the lodging fund, for costs incurred by the general
fund to support the special funds.
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Economic Development
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: May 20, 2020, Updated July 27, 2020
SUBJECT: Tourism Funding Discussion
ISSUE
In light of the COVID-19 pandemic’s impact on the economy and role of tourism in business
recovery, staff would like to provide an overview and background on how the City’s uses the
lodging tax and TPA funds.
This item was originally discussed at the June 1, 2020 PED meeting. Staff would like to continue
the discussion and has included a new attachment.
BACKGROUND
Over the last 20 years the City Council has authorized the collection of two separate revenue
sources for tourism funding. These revenue sources include the City’s lodging lax and Tourism
Promotion Area (TPA) fee. In 2019, in total just over $1.5 million of combined funds were
collected through the lodging tax and TPA fee. In light of COVID-19 pandemic’s impact on the
overall economy and role of tourism in business recovery, staff would like to provide an
overview and background on how the City’s uses the lodging tax and TPA funds. Each of the
two revenue sources is authorized under a separate RCW and each have specific limitations on
how the funds can be used.
Lodging Tax
Statutory Authority
Lodging tax (City’s 101 Fund) is collected pursuant to RCW 67.28 and TMC 3.40. State law
allows the City to collect 1% on eligible stays in lodging businesses (hotels, extended stays,
motels, bread and breakfasts, and Airbnbs). Certain stays for emergency housing and for any
stay in a lodging business that exceeds 30-days are exempt from the tax. Like retail sales tax,
the lodging tax is remitted by the lodging businesses to the Department of Revenue and the
remitted back to the city two months after collection.
Allowable Uses
RCW 67.28.1818 limits the use of lodging tax funds as follows:
“All revenue from taxes imposed under this chapter shall be credited to a special fund in the
treasury of the municipality imposing such tax and used solely for the purpose of paying all or
any part of the cost of tourism1 promotion2, acquisition3 of tourism relations facilities, or
operation of tourism related-facilities.”
1 RCW 67.28.080 defines ‘Tourism’ as “economic activity resulting from tourists, which m ay includes sales of
overnight lodging, meals, tours, gifts, or souvenirs.”
2 RCW 67.28.080 (6) defines ‘Tourism Promotion’ as “…activities, operations, and expenditures designed to
increase tourism, including but not limited to advertisings, publicizing, or otherwise distributing information for the 113
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RCW 67.28.1816 goes into further detail about permitted expenditures of lodging tax funds,
specifying:
“Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly
through a convention and visitors bureau or destination marketing organization for:
(a) Tourism marketing;
(b) The marketing and operations of special events and festivals designed to attract tourists;
(c) Supporting the operations and capital expenditures of tourism related facilities owned or
operated by a municipality or public facilities district created under chapters 35.57 and
36.100 RCW; or
(d) Supporting the operations of tourism related facilities owned or operated by nonprofit
organizations described under 26 U.S.C Sec. 501(c)(3) and 26 U.S.C Sec. 501 (c)(6) of
the internal revenue code of 1986, as amended.
It is important to point out that RCW 67.28 provides no definition of “tourist.” Historically, the City
of Tukwila has defined as a “tourist” as someone who lives outside of Tukwila and visits the
City, either for a day or to spend the night. Additionally, there is a common misconception that
lodging tax funds can only be used to support activities that create “heads in beds” or travel
more than 50 miles. Again, this is not a requirement of State law. While the City must report
metrics, such as hotel stays and visitors, when using lodging tax funds. The funds do not have
to be awarded to activities that solely generate hotel room nights.
Under current state law, lodging tax funds cannot be used to support general city operations or
activities. Attached is a memo presented to the City Council in 2016, which provides more
details on allowable uses of lodging tax funds.
Status of Fund
As of May 7, 2020, there was $1.985 million in the City’s lodging tax fund. In 2019, annual
revenues for lodging tax collection was just over $800,000. With the sharp drop off in travel, the
City is forecasting a significant drop off in lodging tax collection for 2020 and possibly for 2021.
The City is contractually obligated through 2020 to provide Seattle Southside Regional Tourism
Authority (SSRTA) $202,500 in lodging tax funds. Additionally, the City has two approved
applications to the City’s Parks and Recreation Department of $40,000 for art along Baker Blvd
and $125,000 to help fund a master plan for Tukwila Pond4.
There is no requirement that the lodging tax fund be spent down annually. Unspent funds will
remain in the 101 fund and can be used in future years, subject to the use limitations outlined
above.
Historical Use of Funds
The largest single recipient of lodging tax funds from the City over the last 18 years has been
SSRTA. Until 2015, SSRTA was operated as Seattle Southside Visitor Service (SSVS) by the
purpose of attracting and welcoming tourists; developing strategies to expand tourism; operation tourism promotion
agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourist.”
3 RCW 67.28.080 (1) provides the following definition of ‘Acquisition’ “…siting, acquisition, design, construction,
refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of
general obligation bonds, leases, revenue bonds, or other obligations issued or incurred for such purposes…”
4 The City also had an approved application and contract with the Seattle Seawolves, but this contract was canceled
due to the COVID-19 pandemic. Virtual Sports also had an approved application and staff has not yet entered into a
contract due to the scope of work being impacted by Stay Home, Stay Healthy Order.
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City of Tukwila. The Museum of Flight, City of Tukwila, Starfire Sports, Renton Chamber of
Commerce, and Seattle Southside Chamber of Commerce, and others have also received
funding in the past. Any entity, including for-profit organizations, is eligible to receive lodging tax
funds, provided it is engaged in activities eligible to be funded with lodging tax funds.
State Law requires that any proposed use of lodging tax funds be review by a Lodging Tax
Advisory Committee (LTAC). The City’s LTAC comprises four lodging businesses; four entities
eligible to receive lodging tax funds; and one City elected official, who serves as the Chair of
LTAC. LTAC makes a recommendation to the City Council on whether an application should
receive funding. The City Council has final authority in approving a request for lodging tax funds;
however, the City Council cannot override a “no” from LTAC. The City Council can choose not
to fund an entity that LTAC recommend be provided funding. The City Council can also change
the amount of the funding, provided it provides the LTAC 30-days’ notice of its intent to modify
the amount.
TPA Fee
Statutory Authority
Tourism Promotion Areas (TPA) are authorized under RCW 35.101. There is no corresponding
City TMC for TPAs. Outside King County individual cities, towns, and counties can form their
own TPAs. For most municipalities in King County, a TPA must include at least two
municipalities (this requirement does not apply to the City of Federal Way).
In 2014 the Cities of Tukwila, Des Moines, and SeaTac executed an interlocal agreement (“TPA
ILA)” to form a TPA to cover the combined boundaries of the three cities. Through the TPA ILA
the cities agreed that the City of SeaTac would serve as the legislative authority for the
combined city area. The City of SeaTac is responsible for overseeing the TPA on behalf of the
three cities. Any city can terminate its relationship under the TPA ILA Agreement by providing
one-year notice to the other city partners.
In 2014, after receiving a petition from hoteliers, the City of SeaTac formally adopted a
resolution setting out a TPA fee in the three-city area. The total fee was $2 per night per eligible
hotel stay in a hotel or motel with at least 90 rooms5. The $2 rate was the maximum permitted
under the current State law. State law was recently amended to allow the rate to go up to $5 per
night, provided 60% of the businesses that would pay the increase petition for the increase and
it is approved by the legislative authority.
Allowable Uses6
RCW 35.101.130 states that the Legislative Authority, “…shall have sole discretion as to how
the revenue derived from this charge is to be used to promote tourism promotion that increases
the number of tourists to the area.”
‘Tourism Promotion’ is defined as, “…activities and expenditures designed to increase tourism
and convention businesses, including but not limited to advertising, publicizing, or otherwise
distributing information for the purpose of attracting tourists, and operating tourism designation
marketing organizations.”
5 The TPA fee is a flat fee, while the lodging tax is a percentage. This allows the TPA to collect higher revenue than
the lodging tax when rates are low. For example, a room at a hotel going for $100 a night would only provide $1 in
lodging tax funds, while the TPA gets the full $2.
6 RCW 35.101 was amended by the last legislative session. These changes go into effect on July 1, 2020. Staff is
discussing the RCW as it will be amended in July.
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Unlike the lodging tax RCW, the TPA RCW provides a definition of tourist7.
A ‘tourist’ means a person who travels for business or pleasure on a trip:
(a) Away from the person’s place of residence or business and stays overnight in paid
accommodations;
(b) To a place at least fifty miles away one way by driving distance from the person’s place
of residence or business for the day or stays overnight. However, island communities
without land access are exempt from the mileage requirement under this subsection
(5)(b); or
(c) To another country or state outside of the person’s place of residence or business .
Status of Funds
Following provisions in the Interlocal Agreement, all TPA funds remitted for the TPA go directly
to SSRTA. In 2019, SSRTA received $3.96 million in TPA funds. Assuming that the TPA funds
are generated proportional to the number of hotel rooms in each of the three TPA cities,
Tukwila’s portion of the TPA funds generated for SSRTA was just over $1.13 million, or 29%.
In early 2020, SSRTA budgeted ending 2019 (unaudited) with an ending fund balance of $4.45
million. This includes both TPA funds it received, lodging tax funds received from the three
cities, and misc. revenue.
Historical Use of Funds
As outlined above, 100% of the funds remitted for the TPA go directly to SSRTA. The City of
Tukwila does not receive the funds. SSRTA uses these funds for tourism promotion activities
and administration costs.
Seattle Southside Regional Tourism Authority
SSRTA is the City’s primary destination marketing organization8. SSRTA mission is to help
promote the Seattle Southside region (cities of Des Moines, Tukwila, and SeaTac) for tourism.
In 2019, SSRTA had total operating expenditures of $4.297 million (See below).
SSRTA is the successor to Seattle Southside Visitor Service (SSVS), which until 2015 was run
as a division of Tukwila’s Economic Development Office. The Cities of Des Moines and SeaTac
were serviced by SSVS via interlocal agreements with the City of Tukwila. At one time the City
of Kent was also served by SSVS but left in 2014.
In 2012 the Cities of Tukwila, SeaTac, and Des Moines began to have conversations about
forming a TPA, with the goal of providing additional funds for tourism promotion activities. These
conversations were the result of requests by area hoteliers for the cities to consider creating a
TPA. As discussed above, the cities entered an interlocal agreement in 2014 for the creation of
a TPA. A TPA fee began to officially be collected in the spring of 2015.
Through the TPA ILA, the cities of Tukwila, SeaTac, and Des Moines also provided a
recommended amount of lodging tax funds each city would provide to SSRTA annually. The
lodging tax contribution is a “recommended amount” and no City is contractually obligated to
7 This definition goes into effect on July 1, 2020.
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provide the amount listed in the TPA ILA. The table below shows the suggested lodging tax
contributions to SSRTA from the three TPA cities.
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Year SeaTac9 Tukwila Des Moines10
2014 $835,000 $712,000 100% of
lodging tax
funds.
2015 $460,000 $405,000
2016 $383,333 $337,500
2017 $306,666 $270,000
2018 and
beyond
$230,000 $202,500
The TPA creation provided addition funds available for tourism promotion activities in the
Seattle Southside region. The table below shows the total expenditures for SSVS and SSRTA
since 2010. In 2016 the total expenditures for tourism promotion by SSRTA increased over
180% from the prior year.
Year Total Expenditures
(SSVS and SSRTA)
% Change in
SSVS and
SSRTA
Expenditures
from previous
year.
Total Lodging
Revenue in the
Cities of Des
Moines, Tukwila,
and SeaTac.
% Change in
lodging
revenue from
previous year.
2010 $1,321,879 N/A $190,337,838 N/A
2011 $1,525,988 15.44% $201,068,568 5.64%
2012 $1,470,058
(3.67%) $217,520,038 8.18%
2013 $1,428,043 (2.86%) $230,190,887 5.83%
2014 $1,462,123 2.39% $259,819,652 12.87%
201511 $1,504,207 2.88% $292,605,392 12.62%
2016 $4,248,883 182.47% $302,062,920 3.23%
2017 $4,533,770 6.70% $318,864,960 5.56%
2018 $4,634,628 2.22% $330,574,999 3.67%
2019 $4,297,657 (7.27%) Data not yet
available.
N/A
In March, SSRTA began projecting a significant revenue reduction of TPA fees because of the
COVID-19 pandemic (see below).
9 The City of SeaTac has chosen to provide more funds to SSRTA than what was outlined in the TPA ILA.
10 The City of Des Moines no longer provides 100% of its lodging tax funds collected to SSRTA.
11 SSRTA did not take over the functions of SSVS until the end January 1, 2016. The expenditures provided for
2015 are Tukwila’s expenditures for SSVS.
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DISCUSSION
Staff would like to start having discussions with the City Council and the hospitality community
regarding some policy issues with tourism funding for the City of Tukwila. Staff has identified
several issues, which are discussed below. Staff envisions that additional issues/questions
could come as we move through this process. The goal is to get direction from the City Council
on 2020 expenditure plans and the development of the 2021/2022 City budget.
1. Need for Strategic Focus for Lodging Tax and TPA Funds.
In 2019, the City started to prepare a Six Year Financial Model for lodging tax (See
Attached). While non-binding, the Financial Model is the City’s first effort to strategically
examine how lodging tax could be used to advance overall strategic initiatives. Given
the changes due to the COVID-19 pandemic, staff seeks Council’s direction on whether
any of the potential projects in the Financial Model are no longer of interest or if other
projects should be added.
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2. Lack of Marketing Efforts for Tukwila in the Greater Seattle Area.
In 2017, the City of Tukwila engaged Bill Baker, a renowned destination brand consultant to
guide the City in the development of a City brand12. Mr. Baker’s work also included a
significant discussion and survey on how people view the City within the Seattle region. This
work included telephone surveys, online surveys, and focus groups. There was considerable
discussion on the name the City should use to market itself. Name suggestions included,
Southcenter, Tukwila, and Seattle Southside. Through Mr. Baker’s work the City determined
that the “Tukwila” name had strong brand identification within the Seattle area. Mr. Baker’s
work completed work including the development of a brand strategy, brand blueprint, and
brand style guide. The City Council formally adopted Mr. Baker’s brand recommendations in
2018.
Since 2018 staff has been working on efforts to market Tukwila within the Greater Seattle
area, generally within 50 miles of the City. These efforts have primarily included sponsoring
events, such as the Rave Green Run and Food Truck Rodeo at Westfield Southcenter. As
part of the COVID-19 response, the City quickly launched social media channels to help
promote businesses open and to help highlight resources available to businesses.
The City should consider other opportunities to promote itself, specifically the City should
consider the development of a website focused on visitors and business attraction; limited
ad buys; and ongoing public relations outreach.
3. Tourism Promotion versus Destination Development
Historically the City has provided lodging tax funds for initiatives and activities that are
focused more on tourism promotion and have not provided lodging tax funds for destination
development. Examples of tourism promotion activities include funding for marketing and
sales. Destination development includes capital projects and developing/sponsoring
festivals and events to be held in the City. In 2019, the City began to take steps to begin to
develop the destination by awarding funds complete a master plan for Tukwila Pond and to
install art along Baker Blvd. Other possible examples of destination development including
the creation of a Riverwalk along the Green River and installation of wayfinding signage.
The City also launched the Tukwila International Food Truck Rally last year in partnership
with Westfield Southcenter.
Given the differences between the allowable uses between lodging tax funds and TPA
funds, the City may want to consider creating distinction between how the funds can be
used with regards to tourism promotion and destination development. Tourism promotional
activities, such as what SSRTA is providing, generally are for tourism promotion and
marketing activities. Given that well over $3.5 million of funds are being provided for tourism
promotion to SSRTA via the TPA funds, the City should consider how lodging tax funds can
be used for destination development. As a reminder, lodging tax funds can be used for
capital projects and the City can also bond against the future lodging tax funds.
12 This “brand” is for tourism and economic development use only and is not a City brand.
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4. Lack of other organizations doing tourism promotion and tourism development activities,
such as downtown associations and neighborhood groups.
One of the biggest tourism limitations in the City of Tukwila is the lack of our organizations
that are directly or indirectly involved in tourism promotion and destination development in
the region. Take for example Pioneer Square, which has Visit Seattle, the Downtown
Association, Seattle Chamber, and the Pioneer Square Association all engaged in some
tourists related activities. Having a variety of organizations working on tourism development
issues would strengthen the City’s overall tourism appeal. For example, the Pioneer Square
Association works on developing art in the Pioneer Square District (destination
development), which Visit Seattle uses as content for its tourism promotion activities.
When other organizations do destination development and tourism promotion they directly
and indirectly market the City. For example, Destination Des Moines promotes Des Moines
via videos and events as does Discover Burien. The City of Tukwila lacks these types of
organizations; thus the City has tried to fill the void.
5. Leveraging Lodging Tax Funds to Obtain Grants.
Another option the City should consider is using lodging tax funds as match to obtain federal
and state grants for infrastructure projects that support tourism.
6. The Need for More Varied Use of Lodging Tax Funds.
Many cities award a large number of smaller lodging tax grant applications for activities
occurring in their cities. For example, the City of Renton, which historically collects less
lodging tax funds than Tukwila, regularly has upwards of 20 applications per year for lodging
tax funds. These applications are often for small amounts to support small events, festivals,
and activities. Smaller activities help to develop a destination and help to create a distinct
and unique visitor experience. Economic Development staff has been working to attract
other groups to the City and to help existing groups explore securing lodging tax funds for
eligible activities.
7. Using Lodging Tax Funds for Business Attraction
The City’s Economic Division is funded primarily from the City’s general funds. Starting in
2019, some labor costs in Economic Development were funded by lodging tax funds. Some
cities use lodging tax funds to help marketing the City for business attraction. Given that
many guests in Tukwila hotels are business travelers there is a strong argument that
increased economic activity from business attraction woudl bring more overnight guests
(business travelers) to the City. Note, staff has not engaged legal on the question of whether
lodging tax funds could be used for business attraction.
Additionally, the City could also provide funds to the Chamber of Commerce in order to help
it with its mission of supporting area businesses and attracting businesses to the City.
8. Lack of Metrics to Track Success
The City lacks metrics to follow to track success of the lodging tax program and TPA.
FINANCIAL IMPACT
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None.
RECOMMENDATION
This is for discussion only. Staff would like to have ongoing discussions with the Committee and
create recommendations to take the full Council for policies on the use of lodging tax and TPA
funds.
ATTACHMENTS
Memo dated September 23, 2016, “Permitted Uses of Lodging Tax Funds.”
Lodging Tax Six Year Financial Model, updated July 14, 2020.
Tourism Funding at a Glance.
122
LODGING TAX TPA FEE
Statutory Authority:Tukwila Municipal Code 3.40 Interlocal Agreement (ILA) between
Tukwila, SeaTac, and Des Moines
How charges are calculated:
1% of eligible stay in all city hotels,
motels, and Airbnb’s
Ex. $100 room rate=$1 charge
$2 per night per room of eligible stays only
in motels and hotels with 90 or more rooms
Ex: $100 room rate=$2 charge
Total funds collected from Tukwila
properties in 2019:$819,000 $1,149,000 (estimate)
Where do the funds go?The City’s 101 fund for tourism-related
expenditures
The Seattle Southside Regional Tourism
Authority (SSRTA) which promotes tourism
in Tukwila, Seatac, and Des Moines
Does the City Council control the funds? Yes (Subject to the City’s Lodging Tax
Advisory Committee approval)
No (Modification of Interlocal Agreement
(ILA) required)
Can the tax and fee be repealed? Yes. The standard process for modifying
the Tukwila Municipal Code applies
Yes. The City can opt out of the Interlocal
Agreement (ILA) with one year’s notice
LODGING TAX TPA FEE
TOURISM PROMOTION AND MARKETING
Promotion and marketing to bring tourists
that live greater than 50 miles away?Yes Yes
Promotion and marketing to bring tourists that
live within 50 miles of the City?Yes No (Effective July 1, 2020)
Marketing special events? Yes Yes (provided the funds are used to bring in
tourist from greater than 50 miles)
DESTINATION DEVELOPMENT
Operations and expenditures related to facilities
owned or operated by a municipality or public
facilities district?
Yes No
Supporting the operations of tourism-related
facilities owned or operated by a
nonprofit organization?
Yes No
Examples of how we use the funds:
SavingLocalKC, Experience Tukwila, Starfire
Sports, Museum of Flight, Seattle Southside
Regional Tourism Authority, Seattle Seawolves,
Tukwila International Food Truck Rally
Support the Seattle Southside Regional
Tourism Authority (SSRTA) which promotes
tourism in Tukwila, SeaTac, and Des Moines
Tourism Funding at a Glance
Tukwila’s tourism is funded by two separate revenue sources — the City’s lodging tax and the Tourism Promotion Area (TPA) fee.
Jointly, these funds promote our many attractions and help welcome tourists to the City.
Lodging Tax vs. TPA Fee
How Funds Can Be Used
123
Per ILA, TPA funds go directly
to SSRTA, $3,963M for 2019
Tukwila’s Relationship with the Tourism Promotion Area (TPA)
and Regional Tourism Authority (RTA)
Tourism Funding at a Glance
TukwilaWA.gov
SSRTA Revenue Source for 2019
City of Tukwila City of Des Moines
Seattle Southside Regional
Tourism Authority (SSRTA)
City of SeaTac is responsible for
overseeing the Tourism promotion
area through ILA
City of SeaTac
Tourism
Promotion
Area
City has agreement
for lodging tax funds,
$202,500 for 2020
$1 ,1 4 9 ,3 4 5 T u k w i l a $2,774,282 S
e
a
T
a
c
Estimated TPA Fee
Lodging Tax Funds
(Actuals)
$830,000
SeaTac
$202,500
Tukwila
$52,497
Des Moines
Other
Revenue
L
o
d
g
i
n
g
T
a
x
F
u
n
ds (Actuals)
E s ti m a t ed TPA Fee
$39,632
Des Moines
124
Committee of the Whole
November 9, 2020
1
2
5
•Tourism Funding Allocation
Principles
•Six-Year Financial Plan
1
2
6
1
2
7
1
2
8
Category Description Geographical Target Entity(es) Performing
Services
2019 Funding from
Tukwila Lodging Tax
2019 Tukwila TPA
Funds
2019 Total
Seattle Southside
Brand
Specifically focused on
tourism marketing and
sales under the
“Seattle Southside”
name.
Outside 50 miles of the
City.
Seattle Southside
Regional Tourism
Authority (SSRTA)
$202,500 100% of all funds
collected, minus 1%
administration charge
by the Department of
Revenue for the
collection), estimated
at $1 million.
$1,202,500
Seattle and other
brands
Promoting the City of
Tukwila under different
brand names, such as
“Seattle” in
partnership with Visit
Seattle or the “Kent
Valley WA” aerospace
brand with the cities of
Kent, Renton, and
Auburn.
Outside 50 miles of the
City
Visit Seattle
Kent Valley Wa
None.None.$0.00
Destination
Development
Focused on
investments in the
City’s tourism
infrastructure, events,
and festivals.
Sponsorships of small
and large events falls
into this category.
Outside and within 50
miles of the City.
Starfire Sports
Museum of Flight
City of Tukwila (Tukwila
Pond)
City of Tukwila (Southcenter
Art)
$180,000 (approximately).
Tukwila Pond and
Southcenter Art are 2020
and 2021 projects.
None.$180,000
Tukwila Brand Marketing under the
“Tukwila” name
withing the greater
Seattle area such as
through Experience
Tukwila
Within 50 miles of the
City
City of Tukwila None None $0.00
1
2
9
1. Need for strategic focus for lodging tax funds and TPA
funds.
2. Lack of marketing efforts for Tukwila in the Greater Seattle
Area.
3. Tourism Promotion versus Destination Development.
4. Lack of other organizations doing tourism promotion and
tourism development activities, such as downtown
associations and neighborhood groups.
5. Leveraging Lodging Tax Funds to Obtain Grants.
6. The Need for More Varied Use of Lodging Tax Funds.
7. Using Lodging Tax Funds for Business Attraction.
8. Lack of Metrics to Track Success.
1
3
0
1. The TPA revenues should be used to attract overnight visitors
from outside the 50-mile radius using the Seattle Southside
brand and focusing on state, national, and global marketing.
2. Lodging tax funds should be used for the following:
a. Marketing efforts to attract visitors under other brands (such
as Seattle and Kent Valley WA ).
b. Marketing to attract day visitors from within the greater
Seattle region using the “Tukwila” brand.
c. Destination Development
i. Tourism infrastructure
ii. Events and Festivals
1.Operations
2.Marketing
3.Development
3. The City of Tukwila should control how its brand is used within
the region.
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3
1
•Six-Year Financial Plan
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3
2
City of Tukwila
City Council Planning & Economic Development Committee
Meeting Minutes
November 2, 2020 – 5:30 p.m. – Electronic Meeting due to COVID-19 Emergency
Councilmembers Present: Thomas McLeod, Chair; Kathy Hougardy, Zak Idan
Staff Present: David Cline, Rachel Bianchi, Derek Speck, Brandon Miles, Joseph
Todd, Laurel Humphrey
Chair McLeod called the meeting to order at 5:30 p.m.
I.BUSINESS AGENDA
A.Tourism Funding Principles
Staff is seeking Council approval of a set of guiding principles for the allocation of tourism
funds, including both lodging tax and Tourism Promotion Area fees.
Committee Recommendation
Unanimous approval. Forward to November 9, 2020 Committee of the Whole.
B.Tourism Funding Six-Year Financial Plan
Staff is seeking Council approval of a Tourism Funding Six-Year Financial Plan that includes
both lodging tax and Tourism Promotion Area fees.
Committee Recommendation
Unanimous approval. Forward to November 9, 2020 Committee of the Whole.
C.Technology and Economic Development
Councilmembers and staff discussed the intersection of technology and economic
development, including franchise negotiations, affordability, attracting technology hubs, and
tech education.
Item(s) requiring follow-up:
•Provide residential neighborhood connectivity map.
Committee Recommendation
Discussion only. Chair McLeod will ask if there is Council consensus to bring this discussion to
the November 9, 2020 Committee of the Whole.
II.MISCELLANEOUS
Staff presented an overview of the Halloween events that took place over the weekend, some
of which were supported by the City of Tukwila.
The meeting adjourned at 6:40 p.m.
Committee Chair Approval
Minutes by LH
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