HomeMy WebLinkAboutPCD 2023-05-15 Item 1A - LTAC - Lodging Tax Funding: $28,170 for Pac NW January 2024 Soccer Tournament
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Community Development
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: May 9, 2023
SUBJECT: Lodging Tax Funding Requests
ISSUE
Review of lodging tax funding request from the City of Tukwila to support the PacNW January
2024 soccer tournament.
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
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.”
1
INFORMATIONAL MEMO
Page 2
1. City of Tukwila, Pac NW (not to exceed $28,170)
At a special meeting in April of 2023 the LTAC reviewed and recommended approval of a
lodging tax application from the City of Tukwila to support and sponsor the January, 2024 Pac
NW soccer tournament. The Pac NW tournament has been coming to Starfire Sports for a
number of years. In 2023 the tournament drew 500 teams from across the western United
States, generating 3,759 room nights, with 1,291 of those room nights in Tukwila. Analysis by
Seattle Southside RTA found that the City of Tukwila and Seattle Southside were losing a
significant number of room nights to Renton, Seattle, Bellevue, and Auburn. This funding
request will provide a room rebate to PacNW for every room night generated in Tukwila. The
total rebate will not exceed $28,170. PacNW will be required to use Seattle Southside’s Event
Connect program for room booking by teams and families.
LTAC Recommendation on Application: Do Fund
Staff Recommendation on Application: Do Fund.
FINANCIAL IMPACT
The total request for this application will not exceed $28,170.
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 and to apply the revenues to sponsorships.
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 (Approved) ($55,000)
City of Tukwila (PacNW) ($28,170)
Remaining Sponsorship
Funds:
$($33,170)
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
2
INFORMATIONAL MEMO
Page 3
RECOMMENDATION
Staff recommends that the Committee approve the pending funding request and forward to the
May 22, 2023 consent agenda for the Special Meeting.
ATTACHMENTS
1. Lodging Tax Committee Staff Report, PacNW
2. Lodging Tax Application, PacNW
3. Lodging Tax Six Year Financial Plan
3
4
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
Staff Memorandum
Lodging Tax Advisory Committee Funding Request
Name of Applicant:
City of Tukwila
PacNW Partnership
Address:
6200 Southcenter Blvd
Tukwila, WA 98188
Total Funds Requested:
Not to exceed $28,170
About the Applicant:
The City of Tukwila is a non‐charter City organized under the laws of the State of Washington.
Founded in 1908, Tukwila is one of the oldest cities in King County. Since its founding, Tukwila has
always been a community at the “crossroads.” Tukwila lies at one of the busiest freeway interchanges
in Washington State. The City has a small bedtime population of just under 20,000. During the day
the City’s population swells to over 150,000 people, with people coming to the City to work, shop,
dine, stay in hotels, and to visit once in a life time experiences, such as the Museum of Flight or iFly.
The City is one of the most diverse cities in the country. Over 70 languages are spoken in the Tukwila
School District. Many well‐known businesses are based in Tukwila, such as BECU, Westfield
Southcenter, Seattle Seawolves, Seattle Sounders FC, Top Pot Donuts, Pop Gourmet, and the Sabey
Corporation. The City has over 2,000 hotel rooms and over 100 restaurants
Funds Previously Awarded:
None for this activity.
Funding Request Narrative:
Seattle Southside Regional Tourism Authority (SSRTA) approached the City about a partnership
regarding PacNW, a youth premier soccer league. PacNW holds a large tournament at Starfire and
other King County facilities in January. In 2023 the event produced a total of 3,759 room nights, with
1,291 of those nights occurring in Tukwila. SSRTA found that a significant number of room nights
were being lost to Renton, Seattle, Bellevue, and Federal Way. The goal with this partnership it
capture lost room night and bring them to Tukwila. The City will offer a $10 per room night credit to
5
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
PacNW for total room nights generated in Tukwila for the January. The room nights must be booked
through EventConnect.
Staff Comments:
This program will hopefully allow the City to capture additional room nights from an events occurring
in a down month for the City for both overnight stays and retail activities.
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: $225,000
1
Seattle Seawolves
(Approved)
($75,000)
Starfire Sports (Approved) ($55,000)
Remaining Sponsorship
Funds:
$95,000
2024 Tourism Six-Year Financial Plan Allocation
Sponsorships: 225,000
Seattle Seawolves
(Approved)
($75,000)
Starfire Sports (Approved) ($55,000)
City of Tukwila, PacNW ($28,170)
Remaining Sponsorship
Funds:
$66,830
City of Tukwila Staff
Recommendation to LTAC: Approval
Notes:
PacNW will need to execute a contract with the City of Tukwila to receive the funds.
1 Additional funds added in 2023 and 2024 due to better than expected 2022 revenue.
6
Application to the City of Tukwila for Use of 2023 Lodging Tax Funds
Event or Activity Name (if applicable):Pac NW January Soccer Tournament
Amount of Lodging Tax Requested: $28,170
Applicant Organization: City of Tukwila, Office of Economic
Development
Federal Tax ID Number: 91‐6001519
Mailing Address: 100 Andover Parkway W, Suite 150, Tukwila
WA 98188
Primary Contact Name: Pacific Northwest Soccer, Todd Johnson, Ex
Dir
Primary Contact Phone:
Primary Contact Email Address: execdir@pacnwsc.org
Check all the service categories that apply to this application:
Tourism promotion or marketing.
X 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:
X 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: Brandon Miles Date: April 19, 2023
7
Page 2 of 4
1) Describe your tourism‐related activity or event.
PacNW Winter Classic soccer tournament held over two successive weekends in January 5‐7 & 12‐15,
2024 at Starfire Sports. The 2023 tournament drew 500 amateur teams and 793 matches from
throughout the Western US.
In 2023, 3,759 room nights were generated with Tukwila hotels capturing 1,291 or 34%.
The goal is to shift room nights from Renton, Seattle, Bellevue and Federal Way to Tukwila hotels.
1) If an event, list the event name, date(s), and projected overall attendance.
PacNW Winter Classic soccer tournament
2) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both?
Soccer tournament that generates overnight weekend stays from visiting teams
3) Describe why visitors will travel to Tukwila to attend your event/activity/facility.
Proximity to Starfire Sports. The event is already coming to Tukwila.
4) Describe the geographic target of the visitors you hope to attract (locally, regionally,
nationally, and/or internationally).
Teams from Eastern WA, BC, Idaho, Oregon, California and Alaska participate.
5) Describe the prior success of your event/activity/facility in attracting tourists.
See # 1 above.
6) If this your first time holding the event/activity/facility provide background on why you think
it will be successful.
This event has been held for many years at Starfire.
7) Describe how you will promote lodging establishments, restaurants, retailers, and
entertainment establishments in the City of Tukwila.
PacNW controls which hotels bid on providing housing. The organizer can select greater
numbers of Tukwila hotels, if the hotels have capacity.
8) Describe how you will use the name, “Tukwila” in publications, promotions, and for your
event?
Tukwila is prominently displayed on all correspondence as it is the ‘home’ field and the
organization’s home.
8
Page 3 of 4
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.
20,000
b. Number of people who will travel fewer than 50 miles for your
event/activity.
10,523
c. Number of people who will travel more than 50 miles for your
event/activity.
9,477
d. Of the people who travel more than 50 miles, the number of people
who will travel from another country or state.
7,100
e. Of the people who travel more than 50 miles, the number of people
who will stay overnight in Tukwila.
8,451
(2,817
room
nights at
3/rm occ)
f. Of the people staying overnight, the number of people who will stay in
PAID accommodations (hotel/motel/bed‐breakfast) in Tukwila.
8,451
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)
2,817 (up
from 1,291
in 2023)
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?
Historical (2023) data
11) What is the overall budget for your event/activity/facility? What percent of the budget are
you requesting from the City of Tukwila?
9
Page 4 of 4
The request is to commission PacNW for ‘generating’ additional Tukwila room nights. In 2023, 1,291
room nights were actualized. The proposal is for 2,817 room nights in 2024. The commission request is
for $10/room night actualized or $28,170 if all 2,817 room nights are actualized. All room nights must
be booked through Event Connect and all actualized room nights will be verified by Event Connect. No
commission will be paid on any room nights booked around the Event Connect platform.
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?
LTAC Contact:
Brandon J. Miles
(206) 431‐3684
Brandon.Miles@Tukwilawa.gov.
Updated: December 29, 2022
10
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BJ
M
11