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HomeMy WebLinkAboutLTAC 2025-04-18 Agenda Packet1i1kwikt AGENDA Lodging Tax Advisory Committee 11:30 A.M., Friday, April 18, 2025 Hybrid Meeting The public can view and listen to the meeting with the information below or attend the meeting in person at Tukwila City Hall (6200 Southcenter Blvd.), Hazelnut conference room. CALL IN INSTRUCTIONS: 253-292-9750 PHONE ID: 859 286 134# Join on your computer or mobile app: Join the meeting now For assistance during the meeting, please call (206) 731-9071. 1. Welcome and Introductions 2. Review of Agenda 3. Approval of Minutes a. February 14, 2025 4. Special Presentations 5. General Business 6. Pending Funding Requests a. 2025/2026 Starfire Sports ($160,000, $80,000 per year) 7. Announcements 8. Roundtable 9. Adjourn Next Scheduled Meeting: When: TBD Location: Hybrid City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 �Ti�kwila DRAFT Lodging Tax Advisory Committee Minutes 11:30 AM I February 14, 2025 Hybrid Meeting (Via Teams and at Hazelnut Conference Room at Tukwila City Hall) Members Present: Members Absent: City Staff Present: Others Present: Chair Tosh Sharp, Miesa Berry, Jim Davis, Brian Jones Jean Thompson Laurel Humphrey, Brandon Miles, Derek Speck Mark Everton, Seattle Southside Regional Tourism Authority Agenda Item Action Follow -Up Welcome and Introductions Chair Sharp called the meeting to order at 11:37 AM. Committee members introduced themselves. None Review of Agenda Reviewed None Approval of Minutes of December 20, 2024 Jim moved approval. Miesa seconded. Motion passed. None Special Presentations • 2026 World Cup Mark Everton presented an update on the 2025 Club World Cup and the 2026 FIFA World Cup. None City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Ti.41(14ila General Business • None None None Pending Funding Requests • 2025 Juneteenth Brandon presented an application for $10,000 for the City's 2025 Juneteenth event. Jim moved approval. Tosh seconded. Motion passed. None Announcements Brandon mentioned that LTAC has two open positions and encouraged members to suggest potential members who could apply. Mayor's State of the City Speech 4/2/25 6:00 PM at the Performing Arts Center at Foster High School. None Roundtable Chair Sharp mentioned the City is considering a holiday lighting program. None Adjourn The meeting adjourned at 12:05 PM. City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Application to the City of Tukwila for Use of 2025 Lodging Tax Funds Event or Activity Name (if applicable): Starfire Sports Tournament and Event Season Amount of Lodging Tax Requested: $160,000 for 2025 and 2026 ($80,000 per year). Applicant Organization: Starfire Sports Federal Tax ID Number: 47-0887811 Mailing Address: 14800 Starfire Way, Tukwila WA 98188 Primary Contact Name: Eric Olmstead Primary Contact Phone: 206-267-7417 Primary Contact Email Address: eric@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 2025. 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: 4/16/25 LNTI'%RhIf r REVENUE JERVI:CE P. O. BOX 2.508 CINCINNATI, 0fl 45201 Dater AUG 15 2000 STARFCRE SPORTS A NONPROFIT CORPORATION 14800 ,STARFIR1! WAY TUKW I:LA, WA 98188 Dear Applicant: DEPARTMENT OF 1'FIC TftEA SORy Employer, Tdentifi_cati-Or, Number: 47-0887811 DLN 1705::1215700018 Contact Person: CARLY D YOUNG Contact Telephone Number: (877) 829-5500 Public Charity Status: 509(a)(2) IUi# 31494 Our letter dated December 23, 2003, stated you would be exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code, and you would be treated as a public charity, rather than as a private foundation, during an advance ruling period. Based on the information you submitted, you are classified as a public charity under the Code section listed in the heading of this letter. Since your exempt status was not under consideration, you continue to be classified as an organization exempt from Federal income tax under section 501(c) (3) of the Code. Publication 557, Tax -Exempt Status for Your Organization, provides detailed information about your rights and responsibilities as an exempt organization. You may request a copy by calling the toll -free number for forms, (800) 829-3676. Information is also available on our Internet Web Site at www.irs.gov. If you have general questigps about exempt organizations, please call our toll -tree number shown in the heading. Please keep this letter in your permanent records. Sincerely yours, • Robert Choi Director, Exempt Organizations Rulings and Agreements Form w-9 (Rev, October 2018) Department of the Treasury interne! Revenue Service al a 5 m Request for Taxpayer Identification Number and Certification ► Go to www.irs.gov/FormW9 for instructions and the latest information. f Name (as shown on your Income tax return). Name is required on ells fine; do not leave this ilne blank. Starfire Sports 2 Businessname/dlsregarded entity name, if different from above Give Form to the requester. Do not send to the IRS. 3 Check appropriate box for federal tax classification of the person whose name is entered on line 1 Check only one of the following seven boxes. ❑ Individual/sole proprietor or C Corporation ❑ S Corporation ❑ Partnership ❑ Trust/estate single -member LLC ❑ Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=Partnership) ► Note: Check the appropriate box In the line above for the tax classification of the single -member owner, Do not check LLC if the LLC is classified as a single -member LLC that Is disregarded from the owner unless the owner of the LLC is another LLC that Is not disregarded from the owner for U.S. federal tax purposes. Otherwise, a single -member LLC treat is disregarded from the owner should check the appropriate box for the tax classification of its owner _❑ Other (see Inalructions) ► 5 Address (number, street, and apt. or site no.) See Instructions. 148Ut} Starfire Way 5 City, state, and ZIP coda Tukwila, WA 98188 7 List account numbar(s) here (optional) 4 Exemptions (codes apply only to certain entities, not individuals; see instructions on page 3): Exempt payee code (if any) Exemption from FATCA reporting code (if any) (Appl6 s to accounts meinlsfled outside Me US) Requester's name and address (optional) raltrajpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid backup withholding. For individuals, this is generally your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the instructions tor Part I, later. For other entities. It is your employer identification number (EIN). If you do not have a number, see How to get a TIN, later. Note: If the account is in more than one name, see the instructions for line 1. Also see What Name and Number To Give the Requester for guidelines on whose number to enter. Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2. ! am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding: and 3. I am a U.S. citizen or other U.S. person (defined below); and 4. The FATCA code(s) entered an this form (if any) indicating that I am exempt from FATCA reporting is correct. Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your lax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part II, later. Sign Here Social security number or Employer Identification number 4 7 V_.ILQ General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future developments. For the latest information about developments related to Form W-9 and its instructions, such as legislation enacted after they were published, go to www.rrs.govfFormW9. Purpose of Form Signature of U.S. person ► An individual or entityjj91rW9 requester) who.s.required.to.flle.an. information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATM), or employer identification number (E1N), to report on an information return the amount paid to you, or other amount reportable on an information return. Examples of information returns include, but are not limited to, the following. • Form 1099-INT (interest earned or paid) Data ■ L(ralaoay • Form 1099-DIV (dividends, including those from stocks or mutual funds) • Form 1099-MISC (various types of income, prizes, awards, or gross proceeds) • Form 1099-8 (stock or mutual fund sales and certain other transactions by brokers) • Form 1099-S (proceeds from real estate transactions) • Form 1099-K (merchant card and third party network transactions) • i:•orm 1088.(home-mortgage interest)( 109E-E (student loan interest), 1098-T (tuition) • Form 1099-C (canceled debt) • Form 1099-A (acquisition or abandonment of secured property) Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN. /I you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding, later. Cat, No, 10231X Form W-9 (Rev. 10-2018) 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 hosts over 11 soccer tournaments, 32- third party events and over 30- stadium events for professional soccer and rugby including US Open Cup, Seawolves and Tacoma Defiance games. These events draw people from all over the county, Canada and further aboard. Placier.ai reported that Starfire Sports had 1,300,000 visits in 2024. Our projected 2025 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 Reign FC and the Seattle Seawolves we are host to over 71 annual events ranging from the recreational youth players to professional players. Starfire's own tournaments bring over 951 teams in annually totaling over 53,256 people (15,216 players and 38,040 spectators), while our leagues and youth programs bring 1,000-1,200 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 walks of life and geographic regions. Whether it's local kids dropping by to kick a ball, players from around WA State, the US and or World competing in our youth tournaments, or professional athletes from National Teams, Major League Soccer, the National Women's Soccer League, and Major League Rugby training and competing here — Starfire is a home for everyone who loves the game. Our fields also host countless youth and adult participants year-round in our regular programs and leagues. 5) Describe the prior success of your event/activity/facility in attracting tourists. Starfire Sports generated over 229,000 unique visitors and about 1,300,000 visits in 2024. 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. Page 2 of 5 6) If this your first time holding the event/activity/facility provide background on why you think it will be successful. N/A 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. Page 3 of 5 23% e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 7,000+/- 6,500+/- 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, Page 4 of 5 Brandon.Miles@Tukwilawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 431-3684 Bran don. M i l es @Tu kwi l awagov. Updated: December 29, 2022 Page 5 of 5 (T41(wila Staff Memorandum Lodqinq Tax Advisory Committee Fundinq Request Name of Applicant: Starfire Sports Address: 14800 Starfire Wy Tukwila, WA 98188 Total Funds Requested: $160,000 two-year funding request ($80,000 in 2025 and $55,000 in 2026) About the Applicant: Starfire Sports, a non-profit entity, has grown into one of the premier sports facilities in the United States. Over 1.3 million people visited the facility in 2024 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 the OL Reign and 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: $110,000 in 2023-2025. Funding Request Narrative: Starfire is requesting lodging tax funds in 2025/2026 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 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 City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Ti.41(14ila 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 2025 and 2026, the Six Year Financial Plan shows the City spending $175,000 for sponsorship, such as this in both years. 2025 Tourism Six -Year Financial Plan Allocation Sponsorships: $175,000 Experience Tukwila (Approved) Funding Request: ($15,000) PacNW (Approved) Request: ($20,000) General Operations Sponsorship Approved Request: ($15,000) Starfire (Pending) Request: ($80,000) Remaining Sponsorship Funds: $80,000 2026 Tourism Six -Year Financial Plan Allocation Sponsorships: $175,000 Experience Tukwila (Approved) Funding Request: ($15,000) General Operations Sponsorship Approved Request: ($15,000) Starfire (Pending) Request: ($80,000) Remaining Sponsorship Funds: $80,000 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