HomeMy WebLinkAboutFIN 2024-06-24 Item 1A - LTAC - Lodging Tax Funding: Explore Seattle Southside for $119,275City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance
FROM: Brandon Miles, Director
CC: Mayor McLeod
DATE: June 17, 2024
SUBJECT: Lodging Tax Funding Request
World Cup Station Domination
ISSUE
Review of lodging tax funding request from Seattle Southside Regional Tourism Authority (dba:
Explore Seattle Southside) in amount of $119,275 for advertising at select light rail stations
during the 2026 World Cup.
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 $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 June 14, 2024 meeting, the LTAC recommended approval of one funding request for
Explore Seattle Southside.
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. Explore Seattle Southside, World Cup Station Domination, ($119,275)
Seattle has been selected to host five matches for the 2026 World Cup. It’s expected that fans
from around the globe will be descending on the region. What makes the World Cup unique is
that the games are spread out and fans may have downtime between matches. This downtime
presents an opportunity to bring people to the City and to invite those already staying our hotels
to get out and enjoy the City. City staff is started to look at opportunities to promote the City and
to make use “World Cup Ready.”
Explore Seattle Southside presented the City with an opportunity to partner with it and the City
of SeaTac for advertising inside the Angle Lake, SeaTac Airport, and TIBs light rail stations.
Explore Seattle Southside and the cities will activate the stations with advertising leading up and
through World Cup. The City of Tukwila will pay 1/3 the costs for the advertising at SeaTac
Airport Station and all the costs for the TIBs station. Explore Seattle Southside will design the
ads, with input from the cities. The City of SeaTac will pay for the costs at Angle Lake station.
Average annual boardings at SeaTac Airport al 1.91 million and TIBs has annual boardings of
816,000. Ridership will likely be significantly higher during the World Cup.
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 $119,275. 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.
2024 Tourism Six-Year Financial Plan Allocation
World Cup, 2024-2026: $200,000
Experience Tukwila
(Pending):
($119,275)
Remaining Funds:
$80,725
RECOMMENDATION
Staff recommends that the Committee approve pending funding requests and forward to the
July 1, 2024 consent agenda. Note, a contract over the Mayor’s signature authority is also
required. Staff would like to request that the contract be allowed to go on a future consent
agenda for approval, with the need for a committee briefing.
ATTACHMENTS
1. Lodging Tax Application, Seattle Southside, World Cup Station Domination
2. Lodging Tax Six Year Financial Plan
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