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HomeMy WebLinkAboutCOW 2020-11-23 Item 4J - Discussion - Tourism Promotion Area Interlocal AgreementCOUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meefin,q Date Prepared by Mayor's review Council review 11/23/20 BJM ITEM INFORMATION ITEMNO. 4.J. 259 STAFF SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 11/23/20 AGENDA ITEM TITLE Tourism Promotion Interlocal Agreement Review CATEGORY ® Discussion Mtg Date 11/23/20 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ BidAxard Mtg Date ❑ Pubhc Heating Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ® Mayor ❑ HR ❑ DCD ❑ Finance ❑ Five ❑ TS ❑ P&R ❑ Pohce ❑ PlV SPONSOR'S In 2014 the Cities of Tukwila, Des Moines, and SeaTac executed an interlocal agreement SUMMARY ("TPA ILA)" to form a Tourism Promotion Area (TPA) to cover the combined boundaries of the three cities. The TPA ILA allowed for a $2 per roomnight to be charged on area hotels with the funds being used for tourism promotion efforts in the combined city area. As a 2021 workplan item, staff is proposing to conduct a review of the TPA ILA. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Com ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ® Planning Comm. DATE: 11/16/20 COMMITTEE CHAIR: McLEOD RECOMMENDATIONS: SPONSOR/ADMIN. Department of Community 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 11/23/20 MTG. DATE ATTACHMENTS 11/23/20 Informational Memorandum dated 11/10/20 Tourism Promotion Interlocal Agreement Planning and Economic Development Committee Minutes, 11/16/20 259 260 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development Committee FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: November 10, 2020 SUBJECT: 2021 Tourism Promotion Area Interlocal Agreement Review ISSUE On October 5 Planning and Economic Development Committee asked staff to create a workplan item to conduct a review of the Tourism Promotion Area (TPA) Interlocal Agreement in 2021. Staff is following up on this request with additional detail and background. BACKGROUND Tourism Promotion Area Interlocal Aareement In 2014 the Cities of Tukwila, Des Moines, and SeaTac executed an interlocal agreement ("TPA ILA)" to form a Tourism Promotion Area (TPA) to cover the combined boundaries of the three cities. Under Washington State law most municipalities in King County cannot form their own TPAs and must partner with at least one other jurisdiction'. Through the TPA ILA the cities agreed that the City of SeaTac would serve as the legislative authority for the TPA area. 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 rooms2. 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. Per the TPA ILA, 100% of the TPA fee, less a one percent administrative charge by the Department of Revenue, goes to Seattle Southside Regional Tourism Authority (SSRTA) for tourism promotion efforts in the three city area under the "Seattle Southside" brand. In 2019, SSRTA received just over $3.96 million from the TPA fee. The agreement provides a 20 -year term; however, any member City can withdraw from the TPA ILA by providing one year's notice to the other members. In addition, like any agreement, the signatories to the TPA ILA can mutually agree to amend the agreement at any time. ' The City of Federal Way was able to carve an exemption to allow it to form its own TPA without the need to partner with another jurisdiction. 2 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. 261 INFORMATIONAL MEMO Page 2 Allowable Use of Tourism Promotion Area Fee Revised Code of Washington 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 lodging tax provisions of State Law, the TPA RCW provides a definition of tourist3 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) ccommodations,(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. In addition to the RCWs outlined above, the TPA ILA also provides requirements on how the TPA funds must be used, the following outlines those provisions. a. The general promotion of tourism within the Seattle Southside TPA as specified in the businesses 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; 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 Seattle Southside TPA and the ongoing management and maintenance of the Seattle Southside 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 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. s This definition goes into effect on July 1, 2020. 262 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/Info Memo, Tourism Promotion ILA Review.doc INFORMATIONAL MEMO Page 3 DISCUSSION From a good administrative and oversight standpoint, staff believes it is prudent to conduct regular reviews of agreements that the City is part of. The TPA ILA has now been in place for six years and staff would like to conduct a review of the agreement. The following are the key areas staff believes should be examined in the TPA ILA review: • Transparency and Accountability • Check in with Tukwila Hotels and other Stakeholders • Administration and Operation of the Tourism Promotion Area • Review of Changes in State Law Impacting Tourism Promotion Areas • Return on Investment for the Tourism Promotion Area Fee • Housekeeping of the Interlocal Agreement Staff anticipates that this review would take most of 2021. Ideally, this review would occur in partnership with the Cities of Des Moines and SeaTac and staff has already begun to have conversations with those cities staff about the review. However, should those cities not be able to participate, staff still believes it would be prudent for the City to conduct its own review. FINANCIAL IMPACT None RECOMMENDATION Forward to the November 23 Committee of the Whole meeting for discussion. ATTACHMENTS • Tourism Promotion Interlocal Agreement https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/Info Memo, Tourism Promotion ILA Review.doc 263 264 INTERLOCAL ACEI EEMENT FOR THE JOINT ESTABLISHMENT OF A TOURISM PROMOTION AREA. THIS INTERLOCAL AGREEMENT FOR THE JOINT ESTABLISHMENT OF A TOURISI PROMOTION AREA (this "Agreenient") dated this day of' 2014, is rnade and entered into by and among the CITY OF SEATAC ("SeaTac), the r `Y 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 tourisin promotion area pursuant to chapter 35.101 of the Revised Code of Washington ("RCW"). RECITALS: WIJEREAS, Tukwila currently administers Seattle Southside Visitors Services ("SSVS"), a tourism promotion prograrn funded by lodging taxes imposed and collected within Tukwila., SeaTac, and Des Moines, and remitted to SSVS in exchange for tourism prornotion services; and WHEREAS, the tourism industry is a vital and substantial component of the region's economy and tourisru 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 touris,m 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 IAC" W (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 prorriotion 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 forniation of a tourism prornotion areapursuant to the TPA Act within the jurisdictional boundaries of'Fukwila, SeaTac and Des Moines (the "Seattle SouthsideT.PA")-, arid 454 265 '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 inaiketing 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 econornic benefit to retail, restaurant, entertainment and cultural industries that are closely connected to the hotel industry and critical to the health of the local econorny; 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 cornmit 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 rnu.st 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 hell) facilitate the formation and operation of the Seattle Southside TPA; NOW THEREFORE, it is hereby agreed and covenanted among the undersigned as follows: I 266 Section 1. Definitions. In addition to the terms defined in the Recitals above, the following terms shall have the meanings set -forth below: "Agreement" means this Interlocal Agreement for the Joint Establ.ishment of a Tourism Promotion Area by and among Sea"'Fac, Tukwila and Des Moines, entered into pursuant to the TPA Act and the Interlocal Cooperation Act, as it may be amended from time to tirrie. "Annual Budget- means the budget approved pursuant to Section 7 of this Agreement. I "Des Moines" rneans the City of Des Moines, a municipal corporation organized under the laws and statutes of the State. Interlocal Cooperation Act" means chapter 39.34 RCW as the same may be amended from time to time. "Legislative Authority" means the legislative authority of' the Seattle Southside TPA appointed pursuant to Section 2 of this Agreement, as the same shall be duly and regularly constituted from time to time. "Lodging Business" means a business located within the Seattle Southside TPA that furnishes lodging taxable by the State under chapter 82.08 RCW that has 40 or mare lodging units. Lodging facilities with 'Fewer than 40 rooms are, not considered "Lodging Businesses" for the purpose of this Agreement and are exempt from any fees imposed under chapter 35,101 IAC'. "Operating Agreement" means the agreement(s) I or the operation and management of the Seattle Southside TPA. "Operator" or "Operator of a Lodging Business"' means an operator of a Lodging Business, whether in the capacity of owner, general manager, lessee, sublessee, mortgagee in possession, license or any other similar capacity. "Petition" means the initiation petition delivered to the Legislative Authority pursuant to theTPA Act, "SeaTac- means the City of SeaTac, a Municipal corporation organized under the laws and statutes of the State. "SeaTac City Council- means the City Council of SeaTac as the general legislative authority of ScaTac, as the same shall be duly and regularly constituted from bine to time, "Seattle Southside Tourism Promotion Area" means the geographic area identified in the Petition. "Seattle Southside 1"PA" means the Seattle Soulliside Tourism Promotion Area, I 267 "Special Assessment"" means the levy (charge) imposed by the Legislative Authority on the Operators of Lodging Businesses within the Seattle Southside: TPA and subsequently passed on to the guests of the Lodging Business, under the authority of the TPA Act, for the purpose of providing funding oftourisin promotion in the boundaries ofthe Seattle Southside TPA. "SSRT'A" or "Seattle Southside Regional Tourism Authority" means the Public developinent authority chartered by SeaTac pursuant to chapter 35.21 RCW. "SSRTA Board of Directors- means the Board of Directors of SSRTA, as the general legislative authority of SSRTA, as the same shall be duly and regularly constituted from tirne to time. '*SSVS" means Seattle Souttiside Visitors Services, a tourism promotion program currently administered by Tukwila. "State" means the State of Washington. "'I'murisin Promotion" means domestic and international tourism promotion, advertising, sales and marketing activities intended to encourage tourism in the Seattle Southside TPA in order to, increase area hotel occupancies. "Promotion, advertising, sales and marketing activities" include, but are not limited to, strategic planning, inarket research, creative development, media placement, sales activities,, hosting tourism industry events relating to prornotion and marketing, and administrative and management support for such services, and, creating and inaintaining a standing limited reserve, as such reserve jriay be specified in the Annual Budget, to fund any such activities, *"Transient Basis" means the rental of a room or rooms for dwelling, lodging, or sleeping purposes by the Operator of a Lodging Business for a period of 30 consecutive calendar days or less, counting a portion of day as a full calendar day, "Tukwila"" means the City of Tukwila, a municipal corporation organized under the laws and statutes of the State. "Zone" or "Zones" means the distinct geographic subarea or subareas within the Seattle Southside TPA as established by resolution of the Legislative Authority, Section 2. (a.) Purl)ose ofifty Agreement. The purpose of this Agreement is (1) to promote tourism in the boundaries of the Seattle Southside TPA by appointing a legislative authority for the PLII-I)Ose of accepting an initiation Petition -for the formation of the Seattle Southside TPA Pursuant to the TPA Act in the jurisdictional boundaries of SeaTac, Tukwila. and Des Moines, which when and if created, will peri -nit collection, of Special Assessments frorn Lodging Businesses to fund Tourism Promotion, and (2) to memorialize the agreement among the Parties hereto, relating to the Seattle Southside PA. M RM: The Petition must describe the boundaries of the proposed tourism promotion area, the proposed uses and protects to which the proposed revenue from the charges shall be used and the total estimated costs, the estimated rate for the charge with a proposed breakdown by class of Lodging Businesses (if such classification is to be used), and the signatures of the persons who Operate Lodging Business in the proposed area who would pay sixty pereent or more of the proposed charges. (b) Aly,)ointment qjLegislative Atahoriv. The SeaTac City Council is hereby appointed as the Legislative Authority of the Seattle Southside TPA for purposes of this Agreernent and the TPA Act. References to tile "Legislative Authority" herein shall mean the SeaTac City Council serving in its capacity as the Legislative Authority of flie Seattle Souttliside TPA, (c) Understanding oj'the Parties, It is hereby understood and agreed by the Patties that the SeaTac City Council, serving in its capacity as the Legislative Authority, shall, after receiving the Petition, , proceed with adopting a resolution of intent to establish the -Seattle Southside Tourism Promotion Area" designated to, include the jurisdictional boundaries of Sea"Fac, Tukwila and Des Moines, and field a public hearing after providing proper notice under the terms of tbeTPA Act. It is understood and agreed to by the Parties hereto that the purpose of I-Ionning the Seattle Southside TPA is to provide an additional source of revenue to be used exclusively to fund Tourism Promotion within the boundaries of the Seattle Southside TPA which will benefit the tourism industry and the Operators of Lodging Businesses, located in the boundaries of the Seattle Soutliside TPA and the Parties hereto. (d) Termination q 'Proceedingxs. Notwithstanding anything herein to the contrary, if the Seattle Southside TPA is not formed by March 31, 2015, this Agreement shall terminate and shall no longer be in force and effect. Section 3. Legislative Authority, N/1eet1qgjLk2AM. (a) Qfficers ofthe Legislative .4uthorit,,. The Chair of the Sea-rac Lodging Tax Advisory Committee, or his or her designee, shall serve as Chair of the Legislative Authority. On matters decided by the Legislative Authority, the signature of the Chair alone is sufficient to bind the Legislative Authority. (b) Meetings of the Legislative Aufhorit,Y. Regular meetings of the I...,egislative Authority shall be held at the times and locations set forth in a meeting schedule approved by the Legislative Body. There shall be at least one meeting of the Legislative Authority each year, and not less than fifteen days' notice shall be given to all members of the Legislative Authority and the Parties hereto prior to, any such nleeting. Other meetings (including special meetings) may be held upon request Of tile Chair or arly other inernbers. All meetings shall be open to the public to the extent required by chapter 42.30 RCW. Each member ofthe Legislative Authority shall have an equal vote and voice in all decisions of tile Legislative Authority. Untess otherwise provided, the City of Sea,'Fac City Council Adi-ninistrative Procedures and Robert's Revised rg ME Rules of Order (newly revised) shall govern all procedural matters relating to the business of the Legislative Authority. (c) Powers of"the Legislative Authority. The Parties hereto acknowledge and agree that the SeaTac City Council is being appointed solely to serve as the "legislative authority" for purposes of the TPA Act. The day to day operations of the Seattle Southside TPA, including but not limited to the management and expenditure of Special Assessments, shall be managed by SSRTA as manager and operator of the Seattle Southside TPA. The SeaTac City Council, when acting in its capacity as Legislative Authority, shall have the authority to: 1. Receive the Petition, adopt a resolution of intent to 17(,,)nll tile Seattle Southside TPA, hold a. public hearing as required by the TPA Act, and otherwise carry Out the terms of the TPA Act; 2. Form the Seattle Southside TPA, establish rates of Special Assessments and levy Special Assessments pursuant to the terms of this Agreement, the Petition, and the TPA Act; I Adoptan Annual Budget; 4, Conduct regular and special meetings as may be designated by the Legislative Authority-, 5. Enter into agreements with third parties as necessary to fully implement the purposes of this Agreement; 6. Enter into Operating Agreements with SSRJA for the operation of the Seattle Southside TPA, the management and expenditure of Special Assessments and other revenues, and other services as determined to be necessary from time to time; 7. Enter into agreements with and receive funds from any federal, state or, local agencies and to distribute such funds to SSRTA; M 8Receive and account for all funds allocated to the Seattle Southside TPA,-, 9Engage in any and all other acts necessary to further the goals of this Section 4. Levy of Assessments on Lodging Businesses within t4��__SA Southside TPA. (a) 'Tile Legislative Authority ",ill levy Special Assessments on the Operators of Lodging Businesses within the Seattle Southside TPA in. accordance with the Zones and levels of Special Assessments as set -forth in the Petition and resolution of the Legislative Authority. 'Tile Parties acknowledge that, unless otherwise provided for in the Petition, Special Assessments shall not be imposed on rooms (1) where the occupant has stayed 30 or more days and are not otherwise on a 'Transient Basis, (2) that are provided by an Operator of a Lodging Business to I 270 gUCStS Without charge for promotional purposes, (3) available exclusively to members or guests of members of a private niernber-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 35J11IMO. Special Assessments shall be deposited into the local tourism, promotion account created in the custody of the State I"reasurer under RCW 35.101.1K 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 [.,odging 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 I-egislative 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 "rPA 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 S. Use of pee al Assessment Revenue, All of the revenues from Special Assessments collected by the State Department of Revenue front 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 PUT -poses: (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; I 271 (e) '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 Soutliside'l"'PA; (d) The marketing of the Seattle Southside 'TPA region to recruit sporting events in order to promote localtourism and to benefit the Lodging Businesses and tourism industry within the Seattle Southside 'TPA; and (e) Direct administration, operation, formation, and start -LIP costs associated with the Seattle: Southside TPA and the ongoing manageineElt and maintenance of the Seattle Southside TPA. prograrn, including but not limited to staff costs, public notice advertising, legal costs, accounting and auditing (including audits of the Parties and the SSR7'A 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 Patties intend to commit lodging tax revenues to fund regional tourism marketing by contracting with the SSRTA, or successor entity. The Parties intend the rnininium annual funding levels to be set according to the following table: OXMIURIUMM1111,11 MMM 4 t I Lao IMM 1.11 -IMM JL I 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 — $337,500 1 00%, ofmonthly lodging tax receipts 2017 —$383,333 $306,666 $270,000 100% of monthly lodging Lax 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 SSR.T.A. 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 RCC. Recognizing that R.CW 67.2 .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 fature city councils will approve future funding. 'The Parties further recognize that TLikwila. has financial obligations in place to operate SSVS. Tukwila tnay, at its, sole discretion and absolute authority, reduce the annual payment to the SSR1"'A 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. M 272 Section 7.AM!AataiageltinietnEt-_oMf_Seattle Southside R MIt-lirelnents. (a) The Legislative Authority shall contract with the SSRTA pursuant to one or more Operating Agreements liar the management and operation of the Seattle Southside TPA, (b) The Parties hereto acknowledge and agree that SeaTac, is chartering the SSR'FA for the purpose of serving as a separate legal entity formed to advise and in ake recon-imendations, to the I-egislative Authority on all matters related to the Seattle Southside TPA and to carry out its purposes as set forth in its formation documents. The Parties agree to execute agreements with the SSRTA f'or tourism prornotion services and for the transfer of assets, equipment, and intellectual property (including the SSVS "brand") used by SSVS to accomplish the purposes of the SSRTA, as determined to be necessary by the SSRTA to accomplish its purposes, The Parties hereto agree to use best efforts to assist in the transition of such services, assets, equipment, and property at no cost to the SSRTA. (c) SSRTA shall be responsible for administering the activities and programs of the: Seattle Southside'TPA and preparing an Annual Budget for the Seattle Southside TPA. (d) The Legislative Authority shall. approve an Annual Budget for the use of Special Assessments and shall provide as copy of the Annual Budget to the Parties hereto. The Annual Budget shall consist of - I . A list of the Lodging Businesses subject to Special Assessments and an estimate of the revenue to be received from all such Lodging Businesses; and 2. A statement of the proposed budget for all Seattle Southside TPA activities and programs to be funded from Special Assessments during the ensuing fiscal year. (e) SSRTA, as manager of the Seattle Southside 'I I PA, shall agree to comply with all applicable provisions of state and federal law, including but not limited to, the TPA Act, and with all applicable county or city resolutions and ordinances, and with all regulations lawfully imposed by the State Auditor or other state agencies, and the applicable provisions of this Agreement. (0 All Special Assessments received by ScaTac, as fiscal agent for the Seattle Southside TPA, from the State Department of Revenue and any interest thereon shall be deposited by SeaTac in as special account and thereafter transferred to SSRTA within thirty days following receipt. Provided, however, no Special Assessment shall be transferred in any fiscal year until after the adoption of that year's fiscal Annual Budget, W Legislative Authority shall submit a statement Of actual reveiiiies and expenditures to the SSI FA Board of Directors and the Parties hereto, I 273 (h) The Parties acknowledge and agree that revenue derived from the Special Assessments is intended to enhance, supplerrient, and extend existing tourism marketing efforts of the Parties. Section 8. Igitial Duratiow Withdrawal and Termination. (a) Initial Term, The initial duration of this Agreement shall be for a period of twenty years from its effective date. (b) lVithch-awal fi-oni Agreement; I'erni ina lion by Me Pantic-.Y. Any Party to this Agreement may withdraw its participation in this Agreement and in the Seattle Southside TPA by providing written notice and serving that notice to the Legislative Authority as provided herein. No Party is permitted to withdraw until this Agreement has been in force at least -four years from the effective (late. Once this Agreement has been in force for four years, any Party may withdraw by providing at least one year notice of its intent to withdraw. The Party giving notice of intent to withdraw may revoke its notice by giving written notice of revocation to the Legislative Authority. Within 9�O days after receiving proper notice as provided in this section, the Legislative Authority shall adopt a resolution of intention (j) identifying the Party that has given. notice of withdrawal, (ii) stating that Seattle Southside TPA may be modified or terminated, as applicable, (iii) describing the change or changes proposed, or indicate that it is the intention to revise the boundaries or disestablish the Seattle Southside TPA, and (iv) providing the time and place of a public hearing to be held by the Legislative Authority on the proposed action; provided, the public heating shall be at least 15 days prior to consideration of the proposed action. The Legislative Authority may, by ordinance, revise the boundaries or disestablish the Seattle Southside TPA after conducting as hearing to receive public comment regarding the boundary revision or disestablishinent Of the Seattle Southside TPA. Unless the written notice of withdrawal. has been revoked by the withdrawing Party and accepted by the Legislative Authority, the revision or disestablishment shall become effective on the elate specified by the Legislative Authority. (c) For the sake of clarity, it is the intention of the Parties hereto, that this Section 8 provides for a method of withdrawal and/or termination of this Agreement that is initiated solely by a Party to this Agreement. This Section 8 is intended to be in addition to the method of modification and/or disestablishment of the Seattle Southside TPA as provided in Section 9 below. Section 9. Modification or Disestablishment of the Seattle Southside TPA, (a) The Legislative Authority may modify the provisions of the resolution or- ordinance rordinance establishing the Seattle Southside TPA, revise the boundaries of the Seattle Southside TPA, or provide for the discstablishment of the Seattle Southside TPA, after adol-tint; a resolution of intention to such effect. Such resolution of intention shall describe the change or- changes rchanges proposed, or indicate that it is the intention to revise the boundaries or disestablish the Seattle Southside TPA, and shall state the time and place of a public hearing to be held by the HIE 274 Legislative Authority to consider the proposed action; provided, the public hearing shall be at least 15 days prior to consideration of the proposed action. (b) Additionally, upon receipt of a petition indicating a desire to revise the boundaries or disestablish the Seattle Southside TPA, with the signatures of the persons who Operate Lodging Businesses in the Seattle Southside TPA who pay 50% or more of the total Special Assessments, the Legislative Authority shall adopt a resolution of intention to revise the boundaries or disestablish the Seattle Southside TPA, and shall state the time and place of a public hearing to be held. by the Legislative Authority to consider the proposed action; provided, the public hearing shall be at least 15 days prior to consideration of the proposed action. (c) After conducting the public hearing to take public comment on the Proposed action as required under Section 9(a) or (b), the Legislative Authority may, by ordinance, revise the boundaries or disestablish the Seattle Southside TPA. Notwithstanding the: foregoing, if at a. hearing held pursuant to Section 9 a) or (b) a petition objecting to the boundary revision or disestablishment is presented, with the signatures of the persons who Operate Lodging Businesses in the Seattle Southside TPA who pay 50% or more of the total Special Assessments, the Seattle Southside TPA shall not be altered or disestablisbed. If such petition Objecting to the boundary revision or disestablishment is not presented at the hearing, the Legislative Authority shall proceed to revise the boundaries or disestablish the Seattle Soutbside TPA. (d) Notwithstanding anything to the contrary in this Agreement, in no case shall the Parties hereto be obligated to satisfy the outstanding obligations of the Seattle Southside TPA or the S'SRTA from Such Party's moneys, funds, or other sources of revenue unless it otherwise agrees to in writing. Section 10. Miscellaneous Provisions. (a) Waiver. No officer, employee, or agent of Sea'Fac, Tukwila or Des Moines has the power, right, or authority to waive any of the conditions or provisions of this Agreement, No waiver of any breach of this Agreement by SeaTac, Tukwila or Des Moines shall be held to be a waiver of any other or subsequent breach. Failure of ScaTac, Tukwila or Des Moines to enforce any ny of the provisions of this Agreement or to require performance of any of the provisions herein, shall in DO way be construed to be a waiver of such conditions, nor, in any way effect the validity of this Agreement or any part hereof, or the light of SeaTac, Tukwila or Des Moines to hereafter enforce each and every such provision. (b) Records. All records Prepared, owned, used or retained by SSR.TA in conjunction with operating or administering the activities and programs of the Seattle Southside TPA as provided for under the terms of this Agreement shall be made available by the SSRTA upon request to SeaTa.c, Tukwila, or Des Moines. (c) Properl.Y a nd.1.-,,q ttipmenf, The SSRTA shall be the owner of all property and equipment purchased in furtherance of this Agreernent from Special Assessment revenue., Provided, however, in the event of the termination of the Operating Agreement with the SSRTA, the SSRTA shall agree to make the property and/or equil,'.)rnent available to the successor. 275 inanager for its use in conjunction with providing similar services. Provided further, in the event of disestablishment of the Seattle Southside TPA, all property and equipment purchased by the SSRTA fi-om Special Assessment revenue shall be retained. by Sea'Fac and used for any lawful purpose. (d) Integration. '11ris Agreement contains all of the terms and conditions agreed upon by SeaTac, Tukwila or Des Moines concerning the establishment of the Seattle Southside TPA and the collection of Special Assessments from Operators of l-odging Businesses. No other understandings, oral or, otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to, bindany of the Parties hereto, The parties have read and understand all of this Agreement, and now state that no representation, promise, or agreement not expressed in this Agreement has been made to induce the officials of SeaTac, Tukwila or Des Moines to execute this Agreement. (e) Severability. In the event any provision of this Agreement shall be declared by a Court of competent jurisdiction to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be effected or impaired thereby. SeaTac shall indemnify and bold harrnIessTukwila and Des Moines and their agents, employees, and/or officers, fi-on-i any and all costs, claims, judgments, or awards of damages arising out of the acts or omissions of SeaTac, its officers, employees or agents and shall process and defend at its own expense any and all claims, demands, suits, at law or equity, actions, penalties, losses, damages, or costs, of whatsoever kind or nature, brought against Tukwila or Des Moines arising out of, in connection with, or incident to this Agreement and/or Sea'Fac's performance or failure to perform any aspect of this Agreement. Tukwila shall indemnify and hold harmless SeaTac and Des Moines and their agents, employees, and/or officers, from any and all costs, clairns, judgments, or awards of damages arising out of the acts or ornissions of Tukwila, its officers, employees or agents and shall process and defend at its own expense any and all claims, demands, suits, at law or equity, actions, penalties, losses, damages, or costs, of whatsoever kind or nature, brought against Sea-rac or Des Moines arising out of, in connection with, or incident to this Agreement and/or `rukwila's performance or failure to perform any aspect of this Agreement, Des Moines shall indemnify and hold harn-iless Tukwila and SeaTac and their agents, employees, and/or officers, from any and all costs, claims, judgments, or awards of damages arising out of the acts or omissions of Des Moines, its officers, employees or agents and shall process and defend at its own expense any and all claims, demands, suits, at law or equity, actions, penalties, losses, damages, or costs, of whatsoever kind or nature, brought against Tukwila or SeaTac arising out of, in connection with, or incident to this Agreement and/or Des Moines' perfiorniance orfirilure to perform any aspect of this Agreement. The ssf.TA shall be an independent legal entity exclusively responsible for its own debts, obligations and liabilities. All liabilities incurred by the SSRTA shall be satisfied exclusively from the assets and credit ofthe SSR'l"A. No creditor or other person shall have any 12, 276 recourse to the assets, credit, or services of' the Parties hereto on account of any debts, obligations, liabilities, acts, or omissions of the SSRTA, unless otherwise agreed in writing by such Party. (g) Filing, qfAgn-twinent. This Agreement shall become effective irrimediately after it is duly adopted and executed by the City Council of SeaTac, the City Council of Tukwila, and the City Council of Des Moines and shall be filed and/or posted as required in the Interlocal Cooperation Act. (h) Notice, Any formal notice or coin in uni cation to be given among the Parties to this Agreement shalli be deenied properly given, if delivered either i,n physical or clectronic means, or if mailed postage prepaid and addressed to: City of ScaTac 4800 S. 188th. Street SeaTac, WA 98188 Phone: 206.973,4800 Attn: City Manager, City of Tukwfla 620O Soutlicenter Blvd. Tukwila, WA 98188 Phone: 206.433.1800 Attn: City Mayor City of Des Moines 21630 11th Ave. S., Suite A Des Moines, WA 98198 Phone: 206.878.4595 Attn: City Manager. (i) Amendment. This Agreement may be amended by the mutual consent of the Parties hereto. No additions to or alterations of the terms of this Agreement shall be valid unless made in writing, formally approved and executed by duly authorized agents of all Parties. (j) ()I)eration ol'SSRTA. Each Party hereto further authorizes SeaTac to operate the SSRTA within the corporate limits of such city to accomplish the purposes of and pursuant to the terins of this Agreement. (k) lounterptirts. This Ag reenient may be executed in any number of counterparts, each of whom shall be an original, but those counterparts will constitute one and the same instrUrnent. E 277 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first written above, City of Tukwila tO'N, Jim j Cify of Tukwila 6200 Southeenter Blvd Tukwila, WA 98188 City of Des Moines City of Des Moine:s 1630 11 "' Ave S, Ste 98198 Des Moines, WA 9,8198 278 M City of SeaTac ......... .. ..... . .. . . . . . . .. ............ . .................................. 11,) ,d Cutts' City M anager City of SeaTac 4,800 & 188"' St Sea'fac, WA 98188 kl'),")roved s to Forr-n- Planning& Economic Development Committee Minutes.......................................................................November16, 2020 D. Tourism Promotion Area Interlocal Agreement Review Staff provided an overview and a plan for 2021 review of the ILA. Chair McLeod emphasized the importance of hotelier input and the return on investment. Councilmember Hougardy mentioned checking in with other types of businesses. Committee Recommendation Discussion only. Forward to November 23, 2020 Committee of the Whole II. MISCELLANEOUS The meeting adjourned at 6.•44 p. m. Committee Chair Approval Minutes by LH 279