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HomeMy WebLinkAboutCOW 2021-01-25 Item 5B - LTAC - Lodging Tax Funding Applications from Spice Bridge International Food Hall for $5,000ITEM INFORMATION STAFF SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 1/25/21 AGENDA ITEM TITLE Approval of Lodging Tax Funding Request for Global to Local (Spice Bridge) in the amount of $5,000.00. CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 1/25/21 Mtg Date 2/1/21 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW SPONSOR’S SUMMARY Global to Local has requested funding to support the development of digital marketing assets for the Spice Bridge International Food Hall, located at Tukwila Village. Global to Local would like to use the City’s funds to build out digital assets for Spice Bridge, including a website and to enhance its social media presence. The Lodging Tax Advisory Committee reveiwed and recommending approval of the request at its January 8, 2021 meeting. REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev. LTAC Arts Comm. Parks Comm. Planning Comm. DATE: LTAC, 1/8/21 COMMITTEE CHAIR: KRULLER RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office COMMITTEE N/A, straight to full council. COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $5,000 $150,000 $N/A Fund Source: LODGING TAX (101 FUND) Comments: No general fund dollar will be used for this funding application. MTG. DATE RECORD OF COUNCIL ACTION 1/25/21 2/1/21 MTG. DATE ATTACHMENTS 1/25/21 Informational Memorandum dated 1/13/21. Global to Local Lodging Tax Application. City Staff Report to Lodging Tax Advisory Committee. 2/1/21 COUNCIL AGENDA SYNOPSIS ----------------------------------Initials --------------------------------- ITEM NO. Meeting Date Prepared by Mayor’s review Council review 1/25/21 BJM 2/1/21 BJM 5.B. 25 26 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Community Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: January 13, 2021 SUBJECT: Lodging Tax Funding Requests ISSUE Review of a lodging tax funding request for Global to Local (Spice Bridge) in the amount of $5,000.00. BACKGROUND The City collects a 1% lodging tax on certain qualifying overnight stays in paid accommodations (hotels/motels/Airbnb) in the City. State law limits the use of these funds to tourism promotion1. There is currently just over $1 million in lodging tax funds available for use. The City’s Lodging Tax Advisory Committee (LTAC) reviews all requests for use of lodging tax funds. LTAC then forwards a list of recommended applications to the City Council for its review and consideration. If LTAC does not recommend an application be funded, that application is not forwarded to the City Council. The City Council may approve or deny any of the applications recommended by the LTAC. The City Council may also approve an application and increase or decrease the dollar amount awarded2. The City accepts applications on a rolling basis, with the LTAC reviewing requests monthly. Pending Applications Following its January 8, 2021 meeting, LTAC recommended approval of a lodging tax request from Global to Local in the amount of $5,000.00 to support digital marketing for Spice Bridge. 1 RCW 67.28.080 (6) defines “tourism promotion” as “…activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists.” 2 On August 17, 2016, the Washington State Attorney General’s Office issued an informal opinion regarding whether a municipality could change the dollar amounts recommended by the local lodging tax advisory committee. Specifically, the informal opinion states: “When awarding lodging tax revenues pursuant to RCW 67.28.1816(2)(b)(ii), a municipality may award amounts different from the local lodging tax advisory committee’s recommended amounts, but only after satisfying the procedural requirements of RCW 67.28.1817(2), according to which the municipality must submit its proposed change to the advisory committee for review and comment at least forty-five days before final action on the proposal.” 27 INFORMATIONAL MEMO Page 2 1. Global to Local ($5,000.00) Overview Global to Local has requested funding to support the development of digital marketing assets for the Spice Bridge International Food Hall, located at Tukwila Village. Spice Bridge is a one-of-a- kind dining experience in the Greater Seattle region. Since it opened in the fall of 2020 Spice Bridge has received significant media coverage. As a non-profit, Global to Local has limited funds available to be used for marketing activities. Global to Local would like to use the City’s funds to build out digital assets for Spice Bridge, including a website and to enhance its social media presence. Global to Local is hoping to use the City’s lodging tax funds as a match to secure additional funds from the Port of Seattle. Staff Analysis Spice Bridge has provided a great dining option in Tukwila. While Tukwila has many unique, ethnic dining options, the City is often viewed as having dining experiences dominated by national chain restaurants. Spice Bridge helps to change the conversion about dining in Tukwila. It has received significant positive media attention, including being featured by the Seattle Times Food section, since it opened. Staff believes that Spice Bridge could serve as a major destination to help draw more people to the City and to help improve the City’s overall brand within the region. LTAC Recommendation on Application: Do Fund Staff Recommendation on Application: Do Fund FINANCIAL IMPACT The total request for lodging tax funds is $5,000.00. No general fund dollars will be used. The six-year Tourism Financial Plan approved by the City Council in December of 2020 allocated a total of $150,000 in lodging tax funding for sponsorships in 2020. 2020 Tourism Financial Plan Allocation Sponsorships: $150,000.00 Global to Local Request: ($5,000.00) Remaining Sponsorship Funds: $145,000.00 RECOMMENDATION Staff recommends that the City Council approve the funding request and forward the request to the February 1, 2021 consent agenda. ATTACHMENTS 1. Global to Local Lodging Tax Application. 2. City Staff Report to Lodging Tax Advisory Committee. 28 Application to the City of Tukwila for Use of 2021 Lodging Tax Funds Event or Activity Name (if applicable): Spice Bridge Amount of Lodging Tax Requested: $5,000 Applicant Organization: Global to Local Federal Tax ID Number: 27-3133200 Mailing Address: 2800 S 192nd St, Seattle, WA 98188 Primary Contact Name: Kara Martin Primary Contact Phone: 206-850-2877 Primary Contact Email Address: kara@foodinnovationnetwork.org Check all the service categories that apply to this application: Tourism promotion or marketing. Operation of a special event or festival designed to attract tourists. Operation of a tourism-related facility owned or operated by a non-profit organization. Operation and/or capital costs of a tourism-related facility owned by a municipality or a public facilities district. Check which one of the following applies to your agency: Non-Profit (Note: Attach a copy of your current non-profit corporate registration from the Washington Secretary of State Office) Municipality For Profit Corporation I am an authorized agent of the organization/agency applying for funding. I understand that:  I am proposing a tourism-related service for 2021. If awarded, my organization intends to enter into a services contract with the City; provide liability insurance for the duration of the contract naming the City as additional insured and in an amount determined by the City; and file for a permit for use of City property, if applicable.  My agency will be required to submit a report documenting economic impact results in a format determined by the City. Signature: Date: 1/7/21 29 Page 2 of 6 1) Describe your tourism-related activity or event. Spice Bridge is a global food hall that opened in Tukwila Village fall 2020. Spice Bridge features eight rotating vendors cooking and selling food from around the world. The vendors at Spice Bridge offer cultural dishes not available elsewhere in the region. Spice Bridge has received significant earned media and high customer ratings on the food and overall experience at Spice Bridge. To enhance and attract more visitors, we are requesting funds to build out a Spice Bridge website and launch a social media campaign. The website will share the Spice Bridge story, including meeting all the vendors, how to visit and order food, tasting guides, along with suggestions to have a Tukwila experience with other activities. In addition, targeted social media ads will help drive visitors to the website and Spice Bridge. 1) If an event, list the event name, date(s), and projected overall attendance. N/A 2) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? Attracting day tourists and encouraging hotel guests in the Greater Seattle area to visit. 3) Describe why visitors will travel to Tukwila to attend your event/activity/facility. Spice Bridge offers foods from around the world all in one place and a new dining experience daily. Visitors can taste, learn about, and celebrate cultural food traditions from Cambodian to Zanzibari. Due to COVID restrictions, Spice Bridge vendors are open for takeout, delivery and outdoor dining with indoor dining to open post-COVID. Visitors will also enjoy cultural art and music. We are working with local artist, Hoa Hong, for a permanent installation and have rotating art and poetry on display by Foster High School students from the Stories of Arrival project. 4) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Our goal is to reach local and regional visitors. The earned media has drawn visitors from Everett to Portland. We have received some earned media in national outlets as well and there is potential for a draw among visitors interested in food destinations. The vendors at Spice Bridge offer cultural dishes not available elsewhere in the region. 5) Describe the prior success of your event/activity/facility in attracting tourists. 30 Page 3 of 6 Spice Bridge and the vendors have received a lot of buzz in the media (full round-up here), including stories from the Seattle Times, Seattle Refined, and KIRO 97.3. We saw a significant spike in visits when features came out in regional newspapers, TV and radio stations. 6) If this your first time holding the event/activity/facility provide background on why you think it will be successful. While Spice Bridge is newly opened, our program operates the Tukwila Village Farmers Market and hosts Community Kitchen Dinners (80-100 people per dinner) which have been well attended with positive feedback. 7) Describe the media strategy you employ to promote your event/activity/facility to attract overnight and/or day tourists? Please list any digital or print media (newsletters, e-blasts, social media, etc.) your agency uses or intends to use to promote your event/activity/facility. Our earned media strategy has garnered stories in dozens of local media outlets, including KIRO 7, KING 5 Evening, Seattle Refined, KUOW, Seattle Eater, and a major feature in the Seattle Times. Spice Bridge has also been highlighted in national outlets including Zagat and Fodor's, and we are currently developing a story with Forbes." We promote Spice Bridge through Facebook, Instagram and regular e-blasts. We currently have a webpage on Spice Bridge on our program website, however, it is challenging to navigate and can provide a confusing experience in understanding and visiting Spice Bridge. A website dedicated to Spice Bridge will significantly attract visitors and enhance their overall experience. Facebook @spicebridge Instagram @spicebridgefoodhall Webpage – www.foodinnovationnetwork.org/food-hall 8) Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. We would like to include itineraries or “day-trip” experiences for visitors. We would highlight other experiences one could have in the area. We would collaborate with Experience Tukwila and Southside RTA to highlight these experiences. 9) Is the City able to use your digital and print media for collaborative marketing? Yes 10) Describe how you will use the name, “Tukwila” in publications, promotions, and for your event? 31 Page 4 of 6 Tukwila (including Experience Tukwila) will be listed as a partner and directly linked to in our promotions. 11) Measurements and Metrics (Note: You will be required to report these metrics as part of the close out of the agreement between your organization and the City.) These estimates are based on current visitor traffic at Spice Bridge since opening in September 2020. Since we opened during COVID and have not been able to accommodate indoor dining, we anticipate these numbers will increase as restrictions are removed. As a direct result of your proposed tourism-related service, provide an estimate of: a. Overall attendance at your proposed event/activity/facility. 12,000 annually b. Number of people who will travel fewer than 50 miles for your event/activity. 8,000 annually c. Number of people who will travel more than 50 miles for your event/activity. 4,000 annually d. Of the people who travel more than 50 miles, the number of people who will travel from another country or state. 10% e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. 5% f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 3% g. Number of paid lodging room nights resulting from your proposed event/ activity/facility (for example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights) NA 32 Page 5 of 6 12) What methodologies did you use to calculate the estimates and what methodologies will you use to track outcomes, such as total participants, estimated visitor spending, etc.? We are working with vendors to track where visitors come from (by zip code) through their sales reports. We will also use social media and website analytics to track where there is interest. 13) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? We have received two 4Culture grants funded through lodging tax funds. An Art Project grant is supporting the installation of the “Faces of the Community” exhibit by Hoa Hong, a Tukwila- resident. A Capacity Building grant is supporting the closing of our capital campaign. 14) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in what amount? No, though we have been collaborating with SSRTA on tourist campaigns including #DoSomethingNearby. 15) What is the overall budget for your event/activity/facility? What percent of the budget are you requesting from the City of Tukwila? Our total budget is $15,000. We are applying to Port of Seattle’s Tourism Marketing Support Program that requires a 2-to-1 match. We are requesting a $5,000 award from City of Tukwila that could leverage a $10,000 award from the Port. 16) What will you cut from your proposal or do differently if full funding for your request is not available or recommended? We will scale down the costs toward the website design, which may reduce some of the features/add-ins. Applications are considered on a rolling basis. Please contact staff to discuss the process for having the application reviewed by the City’s Lodging Tax Advisory Committee. Completed applications should be submitted to: Lodging Tax Advisory Committee 33 Page 6 of 6 c/o Brandon Miles City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 Or, Brandon.Miles@Tukwilawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 431-3684 Brandon.Miles@Tukwilawa.gov. Updated: January 5, 2021 34 City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Staff Memorandum Lodging Tax Advisory Committee Funding Request Name of Applicant: Global to Local (Spice Bridge) Address: 2800 S. 292nd St, Seattle, WA 98188 (Global to Local) 14200 Tukwila International Blvd (Spice Bridge) Total Funds Requested: $5,000 About the Applicant: Spice Bridge is a global food hall that opened in Tukwila Village fall 2020. Spice Bridge features eight rotating vendors cooking and selling food from around the world. The vendors at Spice Bridge offer cultural dishes not available elsewhere in the region. Spice Bridge is operated by Global to Local, those mission: “Is to advance health equity and improve health in U.S. communities through application of best practices from around the world. We develop programs and interventions to improve health, lower the cost of care, and empower underserved communities across the country. Communities affected by health disparities are diverse and include women, people of color, people experiencing poverty, immigrants, and refugees. Disparities exist both in rural and urban spaces. Our objective is to adapt programs on a local level, share our learnings, and replicate our work across organizations and clinics nationwide.” Funds Previously Awarded: None, first time applicant. Funding Request Narrative: Spice Bridge has received significant earned media and high customer ratings on the food and overall experience at Spice Bridge. To enhance and attract more visitors, we are requesting funds to build out a Spice Bridge website and launch a social media campaign. The website will share the Spice Bridge story, including meeting all the vendors, how to visit and order food, tasting guides, along with 35 City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 suggestions to have a Tukwila experience with other activities. In addition, targeted social media ads will help drive visitors to the website and Spice Bridge. Spice Bridge is request a total of $5,000 in funds from the City of Tukwila and is hoping to use the funds as a match to secure additional funds from the Port of Seattle. The final scope of work will be scaled based upon the final allocation of funds. Staff Comments: Spice Bridge is a one of kind dining destination in the City’s Tukwila International Blvd Neighborhood. Since it opened in the fall, Spice Bridge has received significant positive media attention about it’s unique dining experience. The small amount of funds requested by Spice Bridge will help them amplify their marketing and bring more people to the City to visit. In addition, Spice Bridge helps with the City’s overall goals of branding the City as a great place to visit. Consistency with Six Year Financial Model: For 2021, the Six Year Financial Plan shows the City spending $150,000 for sponsorship, such as this. There will be sufficient funds remaining in the budget for other 2021 sponsorships. Sponsorship Funds Provided in Six Year Financial Plan: $150,000 Spice Bridge Request ($5,000) Remaining Funds: $145,000 City of Tukwila Staff Recommendation to LTAC: Approval Notes: None. 36