HomeMy WebLinkAboutCSS 2024-03-11 Item 1A - LTAC - Lodging Tax Funding: $190,000 for Experience TukwilaCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Community Services and Safety Committee
FROM: Brandon Miles, Business Relations Manager
CC: Mayor McLeod
DATE: March 4, 2024
SUBJECT: Lodging Tax Funding Request
ISSUE
Review of lodging tax funding requests from the City of Tukwila, Office of Economic
Development for Experience Tukwila in the amount of $190,000.
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 $2.5 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 March 1, 2023 meeting, the LTAC recommended approval of one funding request by the
Office of Economic Development for the City of Tukwila.
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. City of Tukwila, Experience Tukwila, ($190,000)
In 2020 the City of Tukwila launched the Experience Tukwila digital initiative. The initiative
includes a dedicated website ExperienceTukwlia.com and social media. The goal is to promote
the City of Tukwila to consumers primarily within 50 miles of the City, including hotel guests who
are already in the area. The City is seeking funding to continue contractor services to run the
day-to-day operations of Experience Tukwila and to expand content development.
Experience Tukwila was in full operation by spring of 2021, with the website
ExperienceTukwila.com going live. Experience Tukwila has provided the City and the Tukwila
community a much needed marketing tool to promote the City. Through Experience Tukwila the
City has been able to:
1. Promote special events, such as Juneteenth, on a website dedicated to promoting
the City versus using the City's government website.
2. The ability to put positive social media stories out when people look up Tukwila.
3. Social media interactions with local media, specifically sports reporters.
The City contracts with a marketing agency to manage the day-to-day operations of Experience
Tukwila, maintain the website, strategy development, project management, and content
creation. The current firm is True Blue Strategies and they have provided great, timely work to
build out the Experience Tukwila brand.
The 2024 funding request will provide the following:
1. Monthly operations of Experience Tukwila, including social media content creation,
website maintenance, and project management.
2. One-time items, including website refresh, photo shoot, video creation, and a refresh of
the email template.
3. Funding to hire an intern in the summer to assist with social media production and
promotion.
LTAC Recommendation on Application: Do Fund
Staff Recommendation on Application: Do Fund.
FINANCIAL IMPACT
The total request for the lodging tax application will not exceed $190,000 for the 12-month
period. No general funds dollars will be used for these funding allocations. The funding
allocations are consistent with the six -year financial plan for the lodging tax fund.
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INFORMATIONAL MEMO
Page 3
2024 Tourism Six -Year Financial Plan Allocation
Experience Tukwila Budget:
$190,000
Experience Tukwila
(Pending):
($190,00)
Remaining Funds:
$0
RECOMMENDATION
Staff recommends that the Committee approve pending funding requests and forward to the
March 18, 2024 consent agenda.
ATTACHMENTS
1. Lodging Tax Application, City of Tukwila, Experience Tukwila
2. Lodging Tax Six Year Financial Plan (Draft)
3
4
Application to the City of Tukwila for Use of 2024 Lodging Tax Funds
Event or Activity Name (if applicable):
Experience Tukwila
Amount of Lodging Tax Requested:
$190,000
Applicant Organization:
City of Tukwila
Federal Tax ID Number:
91-600159
Mailing Address:
Office of the Mayor
6200 Southcenter Blvd
Tukwila, WA 98188
Primary Contact Name:
Brandon Miles
Primary Contact Phone:
(206) 731-9071
Primary Contact Email Address:
Brandon.Miles@Tukwilawa.gov
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: /s/ Date: 2/28/24
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1. Describe your tourism -related activity or event.
In 2020 the City of Tukwila launched the Experience Tukwila digital initiative. The initiative includes
a dedicated website, ExperienceTukwila.com and social media. The goal is to promote the City of
Tukwila to consumers, primarily within 50 miles of the City, including hotel guests who are already
in the area. The City is seeking funding to continue to contract with a third party to run the day-to-
day operations of Experience Tukwila and to expand content development.
Experience Tukwila was in full operation in spring of 2021, with the website,
ExperienceTukwila.com going live. Experience Tukwila has provided the City and the Tukwila
community a much needed marketing tool to promote the City. Through Experience Tukwila the
City has been able to:
1. Promote special events, such as the Juneteenth, on a website dedicated to promoting the City
versus using the City's government website.
2. The ability to push positive social media stories out to people about Tukwila, such as the news
that the OL Reign will move their training facility to Starfire Sports.
3. Social media interactions with local media, specifically sports reporters, sports teams and has
started to engage with local influencers.
4. Pushing out videos by the City and third parties to promote the City.
The City contracts with a marketing agency to manage the day-to-day operations of Experience
Tukwila, which includes maintaining the website, strategy development, project management,
special projects and content creation. The current firm is True Blue Strategies and they have
provided great, timely work to build out the Tukwila brand.
The 2024 funding request will provide the following:
1. Monthly operations of Experience Tukwila, including social media content creation, website
maintenance, and project management.
2. One-time items, including a website update, video photo shoot, and other special projects.
3. Creative ways to generate content with high school students and community members through
a paid partnership.
2. If an event, list the event name, date(s), and projected overall attendance.
N/A
3. Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both?
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6
This is a pure branding and marketing initiative. The geographic focus are consumers within 50
miles of the City. This could include household, employees, and overnight guests who are
already in the area. For outside the 50 miles radius the City partners with the cities of SeaTac
and Des Moines through Seattle Southside RTA. Experience Tukwila provides another source of
content for SSRTA, Visit Seattle, and other partners to share on their social media and digital
platforms.
4. Describe why visitors will travel to Tukwila to attend your event/activity/facility.
Tukwila's central location, its transportation connections, and mass transit makes Tukwila a
great and easily accessible destination to get away for a day or an overnight trip. The City is
home to nearly 200 restaurants, the largest mall in the Pacific NW, Starfire Sports, and the
Museum of Flight. The City has had success is bringing people to the City. The goal of
Experience Tukwila is to get people to come more often, stay longer, and realize they are in
Tukwila (versus other cities).
5. Describe the geographic target of the visitors you hope to attract (locally, regionally,
nationally, and/or internationally).
Primary within 50 miles of the City; however, hotel guests throughout the region are part of the
target audience.
6. Describe the prior success of your event/activity/facility in attracting tourists.
2021 Totals
2022 Actuals
(Through August
31, 2022)
2023 Targets
2023 Actuals
Website Visitors
5,193
4,915
10,000
11,200
Page Views
9,477
7,154
30,000
33,900
Total Social
Media Followers
2,533
2,946
10,000
3,400
Total Social
Media
Impressions
808,401
483,393,
1,000,000
500,000
The website continues to grow in usage. This is likely a reflection of the content on the page and that
we use it to set up event specific pages. One of our strongest performance has been in organic search
research, which is likely a reflection of the regular updates, including a blog that we post on the page.
The City has had success in social media posts regarding specific events, such as Juneteenth, the
Seattle Seawolves, and Seattle Chocolate Haunted Factory Tour.
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7. If this your first time holding the event/activity/facility provide background on why you think
it will be successful.
In 2020 and 2021 our goal for Experience Tukwila was to get the social media and website up and
running. In 2022/23 the goal was to improve the operations and get a year of operation on hopefully
the downside of the pandemic. One of goals was to create more authentic content for Experience
Tukwila, which we have done with blog posts about the Seawolves and Sounders and utilizing
influencers to promote Experience Tukwila on third party sites.
Our goals for 2024 include:
1. Building out more authentic content.
2. Creating more reels and videos for social media use.
3. Engaging with more third parties to help promote the City.
8. Describe how you will promote lodging establishments, restaurants, retailers, and
entertainment establishments in the City of Tukwila.
Experience Tukwila promotes the City's various lodging, restaurants, retailers, and entertainment
establishments. ExperienceTukwila.com features pages for each specific category mentioned
above.
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?
Experience Tukwila is all about Tukwila. The brand is focused on the Tukwila name.
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.)
As a direct result of your proposed tourism -related service, provide an estimate of:
a.
Overall attendance at your proposed event/activity/facility.
800,000 social
media
impressions.
b.
Number of people who will travel fewer than 50 miles for your
event/activity.
90%
However,
hotel guests
in the
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Greater
Seattle area
are also a
focus of
Experience
Tukwila.
c.
Number of people who will travel more than 50 miles for your
event/activity.
10%
(see note
above)
d.
Of the people who travel more than 50 miles, the number of people
who will travel from another country or state.
5%
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.
1,000
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)
3,000
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.?
The impressions outlined above are a forecasted amount for 2024. The forecast is built on
the limited historical data we currently have for 2020, 2021, 2022, and 2023.
It is important to remember that Experience Tukwila is a pure marketing and branding
effort. Tracking actual hotel stays and visitors spending through such efforts can be difficult
and at best can only show a caution, not causation.
For overall success of Experience Tukwila, we intend on tracking the following metrics.:
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9
2021 Totals
2022 Actuals
(Through
August 31,
2022)
2023
Targets
2023
Actuals
2024
Targets
Website Visitors
5,193
4,915
10,000
11,200
15,000
Page Views
9,477
7,154
30,000
33,900
40,000
Total Social
Media Followers
2,533
2,946
10,000
3,400
5,000
Total Social
Media
Impressions
808,401
483,393,
1,000,000
500,000
500,000
13. Are you applying for lodging tax funds from another community? If so, which communities
and in what amounts?
No.
14. Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in
what amount?
No.
15. What is the overall budget for your event/activity/facility? What percent of the budget are
you requesting from the City of Tukwila?
The following outlines the draft budgeted items for Experience Tukwila for 2022. The final numbers are
still subject to negotiation with the contractor.
2024 Experience Tukwila
DRAFT Budget
2024 Estimated Costs (Monthly)
2024 Estimated Costs
(Annually)
Project Management, Social
Media Content, and Creation,
Website Content Update
$10,000
$120,000
Email Marketing
$1,080
$12,960
Ad Buys
$415
$4,980
Subtotal Ongoing Expenses:
$137,940
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Special Projects
Video Creation
$15,000
Photoshoot
$15,000
Website refresh
$0
SEO
$5,000
Email Template Update
$1,500
Extra Labor, Influencer, and community member
social media production
$10,000
Subtotal:
$46,500
*Note: Funds may be moved between categories, but the total spend will not exceed $190,000
Annual Ongoing Costs:
$137,940
Onetime Items:
$46,500
Contingency and Ad Buys
$5,560
Total Costs:
$190,000
*Note: Funds may be moved between categories, but the total spend will not exceed $190,000
16. What will you cut from your proposal or do differently if full funding for your request is not
available or recommended?
We would likely eliminate the contract with the third party to manage the day-to-day activities of
Experience Tukwila. This would likely reduce our posts and updates of the pages impacting quality of
the media.
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?
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LTAC Contact:
Brandon J. Miles
(206) 431-3684
Brandon.Miles@Tukwilawa.gov.
Updated: January 5, 2021
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Tourism Funding, Six Year Financial Plan
DRAFT - Updated March 3, 2021
Working Draft Update 2023 Budgeted 2023 Actuals (Unaudited) % Difference 2024 2025 2026 2027 Totals,'23-'27
Tourism Revenue
Lodging Tax $ 720,000 $ 856,555 18.97% $ 850,000 $ 850,000 $ 1,000,000 $ 850,000 $ 4,406,555
Federal Indirect Grants: $ - $ 0.00% .
Local Grants & Other Payments: $ - $ 44,000 0.00% $ 20,000 $ 64,000
Interest and Other Earnings: $ 6,000 $ 122,651 1944.18% $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 202,651
Total Revenues: $ 726,000 $ 1,023,206 40.94% $ 890,000 $ 870,000 $ 1,020,000 $ 870,000 $ 4,673,206
$
Tourism Expenses $
Marketing, Sales, and Sponsorships $ -
Sponsorships $ 130,000 -100.00% $ 130,000 $ 130,000 $ 130,000 $ 130,000 $ 520,000
Small Events $ 15,000 -100.00% $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 60,000
rience Tukwila, Branding and Marketing, Visitors $ 175,000 -100.00% $ 190,000 $ 190,000 $ 200,000 $ 200,000 $ 780,000
World Cup Planning and Activation $ 50,000 -100.00% $ 50,000 $ 50,000 $ 200,000 $ $ 300,000
Business Attraction and Promotion $ 30,000 -100.00% $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 120,000
Sub Total: $ 400,000 $ 280,002 -30.00% $ 415,000 $ 415,000 $ 575,000 $ 375,000 $ 2,060,002
COVID-19 Response $
SavingLocalKC.com $ $ $
SSRTA Emcrgcncy Funding $ - $ $
Showare Sponsorship $ 15,000 -100.00% $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 60,000
S attic Southsidc Chambcr of Commcrcc $ $
Sub Total: $ 15,000 $-100.00% $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 60,000
Destination Development $
Wayfinding Plan Development and Installation $ 100,000 $-100.00% $ 100,000 $ - $ 200,000 $ 100,000 $ 400,000
Art Investments $ 75,000 $ - -100.00% $ 75,000 $ 75,000 $ 40,000 $ 40,000 $ 230,000
Tukwila Pond $ 200,000 $ - -100.00% $ - $ - $ - $ 600,000 $ 600,000
Sub Total: $ 375,000 $ - -100.00% $ 175,000 $ 75,000 $ 240,000 $ 740,000 $ 1,230,000
$
General Administration $
Salary and Benefits $ 97,397 $ 93,001 -4.51% $ 101,850 $ 104,906 $ 108,053 $ 111,294 $ 519,103
City Overhead Charge $ 26,493 $ 26,493 $ 27,818 $ 28,653 $ 29,512 $ 30,397 $ 142,873
Administrative $ 30,000 $ 11,203 -62.66% $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 131,203
Sub Total: $ 153,890 $ 130,697 -15.07% $ 159,668 $ 163,558 $ 167,565 $ 171,692 $ 793,180
Total Expenditures: $ 943,890 $ 410,699 -56.49% $ 764,668 $ 668,558 $ 997,565 $ 1,301,692 $ 4,143,182
Beginning Fund Balance:
Ending Fund Balance:
Notes
f
2,342,419
$2,342,419$2,954,926
$3,080,258
$3,281,700
$3,304,135
2,129,529
$
2,954,926
$
3,080,258
$
3,281,700
$
3,304,135
$
2,872,443
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 shaded cells indicate updates to what was intially approved.
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.
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: