HomeMy WebLinkAboutPCD 2023-03-06 Item 1D - LTAC - Lodging Tax Funding: Starfire Sports for $110,000W
i City of Tukwila
Allan Ekberg, Mayor
19oa INFORMATIONAL MEMORANDUM
TO: Planning and Community Development
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: February 27, 2023
SUBJECT: Lodging Tax Funding Requests
ISSUE
Review of lodging tax funding requests from Starfire Sports for tourism promotion activities.
BACKGROUND
The City collects a 1% lodging tax on certain qualifying overnight stays in paid accommodations
(hotels/motels/Airbnb) in the City. State law limits the use of these funds to tourism promotion'.
There is currently just over $1 million in lodging tax funds available for use.
The City's Lodging Tax Advisory Committee (LTAC) reviews all requests 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
At its October February 10, 2023 meeting, the LTAC recommended approval of a funding
request from Starfire Sports, a non-profit entity, for lodging tax funds for 2023/2024.
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."
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INFORMATIONAL MEMO
Page 2
1. Starfire Sports ($110,000 total, $55,000 in 2023 and $55,000 in 2024)
Starfire is requesting lodging tax funds in 2023/2024 to assist in promotion and facilitation of
leagues, events, and tournaments. The goal is to have 1,300,000 (not unique) total attendance
for Starfire related events and to generate 10,000 room nights in area lodging businesses.
Starfire will promote its events through email and online marketing, with regional sports
organizations and social media.
After Westfield Southcenter, Starfire is the largest draw of visitors in the City and likely the
largest draw for overnight guests. Additionally, the tournaments and leagues at Starfire bring in
people from throughout the Puget Sound region on day visits to the City. Starfire visitor count
including in their application does not include all third -party events, thus the numbers may
actually be lower than the actual tourist impact on the City.
Since it's opening, Starfire has been a great partner for the City and has helped the City grow a
brand in the soccer and rugby community as being the epicenter of [soccer] or [rugby] in the
Pacific NW. Due to the pandemic, Starfire did not request any lodging tax funds in 2020, 2021,
and 2022.
LTAC Recommendation on Application: Do Fund
Staff Recommendation on Application: Do Fund.
FINANCIAL IMPACT
The total request for the two lodging tax applications will not exceed $110,000 over two years.
No general funds dollars will be used for these funding allocations.
Consistency with Six Year Financial Model:
For 2023 and 2024, the Six Year Financial Plan shows the City spending $150,000 for
sponsorship, such as this. The funds allocated for 2023 will be higher than the budget amount,
but revenues for 2022 came in higher and staff anticipated updating the six -financial plan to
account for the higher revenues.
2023 Tourism Six -Year Financial Plan Allocation
Large Sponsorships:
$150,000
City of Tukwila, Copa Surf
Cup (Approved)
($25,000)
Seattle Seawolves
(Approved)
($75,000)
Starfire Sports (Pending)
($55,000)
Remaining Sponsorship
Funds:
$(5,000)
2024 Tourism Six -Year Financial Plan Allocation
Sponsorships:
$150,000
Seattle Seawolves
(Approved)
($75,000)
Starfire Sports (Pending)
($55,000)
Remaining Sponsorship
Funds:
$20,000
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INFORMATIONAL MEMO
Page 3
RECOMMENDATION
Staff recommends that the Committee approve the pending funding requests and forward to the
March 20, 2023 consent agenda. The contract with Starfire Sports will be over $40,000 and will
require approval by the Council. Staff would like permission to bypass committee and place the
contract on a consent agenda once it's ready for review and approval
ATTACHMENTS
1. Lodging Tax Committee Staff Report, Starfire Sports
2. Lodging Tax Application, Starfire Sports
3. Lodging Tax Six Year Financial Plan
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28
OTt1(14 ila
Staff Memorandum
Lodging Tax Advisory Committee Funding Request
Name of Applicant:
Starfire Sports
Address:
14800 Starfire Wy
Tukwila, WA 98188
Total Funds Requested:
$110,000 two-year funding request ($55,000 in 2023 and $55,000 in 2024)
About the Applicant:
Starfire Sports, a non-profit entity, has grown into one of the premier sports facilities in the United
States. Over 1.4 million people visited the facility in 2019 (last full year prior to the COVID-19
pandemic) to take part in soccer, rugby, and lacrosse tournaments; to play in outdoor and indoor
soccer leagues; to engage in sport specific training; to review professional sporting events; and for
STEM educational courses. Starfire is home training ground for Seattle Sounder FC and the OL Reign
and the home field for the Seattle Seawolves.
Opening in 2003, Starfire Sports has 12 outdoor fields and two indoor fields. The facility is located at
Fort Dent Park, which is owned by the City of Tukwila. Also located at the Park is a small children's
play area and trails that connect to the regional trail system. The City has maintenance reasonability
for the play area, trails, and parking area.
Starfire regular hosts multiday, weekend soccer, rugby, and lacrosse tournaments, which brings in
teams from throughout North America. Teams stay in hotels throughout the Seattle Southside region,
with a typical split of 70/30 between Tukwila and SeaTac hotels. Players and their families can been
seen throughout Tukwila, at Westfield Southcenter, the Family Fun Center, and area restaurants.
Funds Previously Awarded:
$44,500 in 2019. Starfire did not request funds in 2020, 2021, or 2022 due to the COVID-19
pandemic.
Funding Request Narrative:
Starfire is requesting lodging tax funds in 2023/2024 to assist in promotion and facilitation of leagues,
events, and tournaments. The goal is to have 1,300,000 (not unique) total attendance for Starfire
related events and to generate 10,000 room nights in area lodging businesses. Starfire will promote
its events through email and online marketing, with regional sports organizations and social media
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
29
flii'tkyvik
Staff Comments:
After Westfield Southcenter, Starfire is the largest draw of visitors in the City and likely the largest
draw for overnight guests. Additionally, the tournaments and leagues at Starfire bring in people from
throughout the Puget Sound region on day visits to the City. Starfire visitor count including in their
application does not include all third -party events, thus the numbers may actually be lower than the
actual tourist impact on the City.
Since it's opening, Starfire has been a great partner for the City and has helped the City grow a brand
in the soccer and rugby community as being the epicenter of [soccer] or [rugby] in the Pacific NW.
Consistency with Six Year Financial Model:
For 2023 and 2024, the Six Year Financial Plan shows the City spending $150,000 for sponsorship,
such as this. The funds allocated for 2023 will be higher than the budget amount, but revenues for
2022 came in higher and staff anticipated updating the six -financial plan to account for the higher
revenues.
2023 Tourism Six -Year Financial Plan Allocation
Large Sponsorships:
$150,000
City of Tukwila, Copa Surf
Cup (Approved)
($25,000)
Seattle Seawolves
(Approved)
Seattle Seawolves
(Approved)
($75,000)
Starfire Sports (Pending)
Starfire Sports (Pending)
($55,000)
Remaining
Sponsorship
Funds:
$(5,000)
2024 Tourism Six -Year Financial Plan Allocation
Sponsorships:
$150,000
Seattle Seawolves
(Approved)
($75,000)
Starfire Sports (Pending)
($55,000)
Remaining Sponsorship
Funds:
$20,000
City of Tukwila Staff
Recommendation to LTAC: Approval
Notes:
Starfire will be required to execute a separate service agreement with the City.
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
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Application to the City of Tukwila for Use of 2023 Lodging Tax Funds
Event or Activity Name (if applicable):
Starfire Sports Tournament and Event Season
Amount of Lodging Tax Requested:
$110,000 for 2023 and 2024 ($55,000 per
year).
Applicant Organization:
Starfire Sports
Federal Tax ID Number:
47-0887811
Mailing Address:
14800 Starfire Way, Tukwila WA
98188
Primary Contact Name:
Ben Oliver
Primary Contact Phone:
(206) 267-7417
Primary Contact Email Address:
beno@starfiresports.com
Check all the service categories that apply to this application:
✓ Tourism promotion or marketing.
✓ Operation of a special event or festival designed to attract tourists.
✓ Operation of a tourism -related facility owned or operated by a non-profit organization.
✓ Operation and/or capital costs of a tourism -related facility owned by a municipality or a
public facilities district.
Check which one of the following applies to your agency:
✓ Non -Profit (Note: Attach a copy of your current non-profit corporate registration from
the Washington Secretary of State Office)
Municipality
For Profit Corporation
I am an authorized agent of the organization/agency applying for funding. I understand that:
• I am proposing a tourism -related service for 2023. 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: Benjamin T Oliver Date: 01/11/2023
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1) Describe your tourism -related activity or event.
Starfire Sports events and tournaments
1) If an event, list the event name, date(s), and projected overall attendance.
Starfire directly manages 11 soccer tournaments and over 30 third party events including
Seawolves and Tacoma Defiance games. These events draw people from all over the county,
Canada and further aboard. Starfire Sports projected 2023 total attendance is over 1,300,000 visits.
2) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both?
Both
3) Describe why visitors will travel to Tukwila to attend your event/activity/facility.
Starfire Sports is the epicenter of soccer not only here in the Pacific Northwest but nationwide. As
not only the home of our Seattle Sounders FC, OL Reign and the Seattle Seawolves we are host to
over 42 annual events ranging from the recreational youth players to professional players. Starfire's
own tournaments bring over 110 teams in annually from Canada alone while our leagues and youth
programs bring hundreds of day visitors to Tukwila every day of the week.
4) Describe the geographic target of the visitors you hope to attract (locally, regionally,
nationally, and/or internationally).
Starfire offers programs and events for people from all geographical areas with teams traveling
from around the world to participate in our youth tournaments, the local community of kids who
just want to come down and kick a ball to the professional athletes from National Teams, Major
League Soccer, National Women's Soccer League and Mayor League Rugby who are here for
trainings and to play games, to the players who participate in any one of our youth or adult
programs.
5) Describe the prior success of your event/activity/facility in attracting tourists.
Starfire Sports generates over 117,000 unique visitors and about 1,300,000 visits annually. Of these
visitors, roughly 7% travel more than 50 miles and stay in the area approximately 2-4 nights at a
time. Starfire run tournaments averaged 23% of participating teams traveled more than 50 miles.
6) If this your first time holding the event/activity/facility provide background on why you think
it will be successful.
N/A
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7) Describe how you will promote lodging establishments, restaurants, retailers, and
entertainment establishments in the City of Tukwila.
Starfire will promote our events through email and online marketing/advertising/social media. New
partners being formed with surrounding States. Our events will be listed on regional soccer. We are
also currently hiring a fulltime person in Public Relations and Communication.
8) Describe how you will use the name, "Tukwila" in publications, promotions, and for your
event?
Tukwila will not only be integrated into publications, promotions and the appropriate use of
"Tukwila" #hashtags when using social media but also on all tournament branded materials
including clothing.
In the past this integration has seen the media talk more about Tukwila with regards to soccer,
Starfire, the Sounders, Seawolves and now also the OL Reign.
9) Measurements and Metrics (Note: You will be required to report these metrics as part of the
close out of the agreement between your organization and the City.)
As a direct result of your proposed tourism -related service, provide an estimate of:
a.
Overall attendance at your proposed event/activity/facility.
1,300,000
b.
Number of people who will travel fewer than 50 miles for your
event/activity.
150,000
c.
Number of people who will travel more than 50 miles for your
event/activity.
10,000
d.
Of the people who travel more than 50 miles, the number of people
who will travel from another country or state.
23%
e.
Of the people who travel more than 50 miles, the number of people
who will stay overnight in Tukwila.
7,000+/ -
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33
f.
Of the people staying overnight, the number of people who will stay in
6,500+/ -
PAID accommodations (hotel/motel/bed-breakfast) in Tukwila.
g.
Number of paid lodging room nights resulting from your proposed
event/ activity/facility (for example: 25 paid rooms on Friday and 50
paid rooms on Saturday = 75 paid lodging room nights)
10,000+/ -
10) 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?
Team surveys and SSRTA Event Impact Calculator
11) What is the overall budget for your event/activity/facility? What percent of the budget are
you requesting from the City of Tukwila?
Our annual marketing budget is just under $24,000 without the support of LTAC funding that allows
us to market to traveling teams, attend team/marketing conferences for tournaments and event
recruiting.
Applications are considered on a rolling basis. Please contact staff to discuss the process for having the
application reviewed by the City's Lodging Tax Advisory Committee.
Completed applications should be submitted to:
Lodging Tax Advisory Committee
c/o Brandon Miles
City of Tukwila
6200 Southcenter Blvd
Tukwila, WA 98188
Or,
Brandon.Miles@Tukwilawa.gov
Questions?
Page 4 of 5
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LTAC Contact:
Brandon J. Miles
(206) 431-3684
Brandon.Miles@Tukwilawa.gov.
Updated: December 29, 2022
Page 5 of 5
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Tourism Funding, Six Year Financial Plan
DRAFT - Updated March 3, 2021
Tourism Revenue
Working Draft Update
Lodging Tax $
Total Revenues: $
Tourism Expenses
Marketing, Sales, and Sponsorships
Sponsorships
Small Events
lence Tukwila, Branding and Marketing, Visitors
World Cup Planning and Activation
Business Attraction and Promotion
COVID-19 Response
SavingLocalKC.com
SSRTA Emergency Funding
Showare Sponsorship
Seattle Southside Chamber of Commerce
Destination Development
Wayfinding Plan Development and Installation
Art Investments
Tukwila Pond
General Administration
2022 Budgeted 2022 Forecasted
450,000 $
450,000
884,745 $
2023
800,000 $
2024
2025
2026
2027
Totals, '22-'27
840,000 $ 882,000 $ 926,100 $ 972,405 $ 5,755,250
$ 884,745
$ 800,000
$ 840,000
$ 882,000 $ 926,100 $ 972,405 $ 5,755,250
Salary and Benefits $
City Overhead Charge $
Administrative $
Total Expenditures:
150,000 $ 100,000 $ 225,000 $ 225,000 $ 150,000 $ 150,000 $ 150,000 $ 700,000
15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 60,000
75,000 $ 140,000 $ 190,000 $ 190,000 $ 190,000 $ 190,000 $ 190,000 $ 710,000
50,000 $ - $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 150,000
$ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
15,000 $
150,000 $
75,000 $
200,000 $
79,978 $
25,231 $
28,750 $
1,000 $
15,000 $
$ 100,000 $
$ 75,000 $
$ 200,000 $
81,257 $
25,231 $
28,750 $
91,397 $
26,493 $
30,000 $
15,000 $ 15,000 $
100,000 $
75,000 $
200,000 $
95,830 $
27,818 $
30,000 $
100,000 $
75,000 $
200,000 $
98,705 $
28,653 $
30,000 $
863,959 391,238
$ 1,047,890
$ 1,053,648
982,357 $
Beginning Fund Balance:) $
Ending Fund Balance: $
Notes
This document does not bind the City to provide funds nor does it authorize any funding. All use of lodging tax funds must be approved by LTAC and the City Council through an application process.
The blue cells have been updated since the LTAC last looked at this document.
Salary/Benefits for Business Relations Manager is split 50/50 between general fund and lodging tax and is estimated to increase 3% annually after 2024.
1,742,366 I $
1,328,407 $
1,742,366 I $
2,235,873 $
2,235,873 I $
1,987,983 $
1,987,983 I $
1,774,335 $
1,774,335 I $
1,673,978 $
15,000 $
100,000 $
40,000 $
200,000 $
101,666 $
29,512 $
30,000 $
951,178 $
1,673,978 I $
1,648,899 $
15,000 $ 46,000
100,000 $ 300,000
40,000 $ 225,000
200,000 $ 600,000
104,716 $ 101,666
30,397 $ 29,512
30,000 $ 118,750
955,114 $ 5,381,425
1,648,899
1,666,191
The City overhead charge is charged to all special funds. It recoups the cost to the general fund to support the lodging tax fund. It includes facilities, technology, legal, accounting, and record keeping services and is estimated to increase 3% annually after 2024.
Updated: 1/11/2023
BJ M