HomeMy WebLinkAboutPCD 2025-05-12 Item 1A - LTAC - Lodging Tax Funding for Starfire SportsCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Community Development
FROM: Brandon Miles, Director, Strategic Initiatives
CC: Thomas McLeod, Mayor
DATE: May 5, 2025
SUBJECT: Lodging Tax Funding Requests
ISSUE
Review of lodging tax funding request from Starfire Sports to support its marketing and
promotional activities for Starfire Sports.
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 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.
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."
INFORMATIONAL MEMO
Page 2
Pending Applications
1. City of Tukwila, Starfire Sports ($160,000 over two years)
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 efforts.
LTAC reviewed the request at its April meeting and recommended approval of the funding
request. LTAC did have a lengthy discussion about ways that the City could leverage the
visitors that come to Starfire and how we can get attendees to other businesses in the area.
Staff is currently working on how to address this as part of the final agreement.
LTAC Recommendation on Application: Approval.
Staff Recommendation on Application: Approval.
FINANCIAL IMPACT
The total request for this application will not exceed $160,000 over two years and is consistent
with the six -year financial plan for the tourism funds.
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
2
INFORMATIONAL MEMO
Page 3
RECOMMENDATION
Staff recommends that the Committee approve the pending funding requests and forward to the
May 19, 2025, consent agenda. The contract with Starfire Sports will be over $160,000 and will
require approval by the Council. Staff would like permission to bypass PCD and place the
contract on a consent agenda once it's ready for review and approval
ATTACHMENTS
1. Starfire Funding Request Application
2. City Staff Report to LTAC
3
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Application . mTukwila
Event or Activity Name(if Sports Tournament and Event Season |
Amount of Lodging Tax Requested: $160,000 for 2025 and 2O2G($0O,000 per
Applicant Organization: tar ire Sports
Federal Tax ID Number: 147-0887811
Primary Contact Phone: � 206-267-7417
Primary Contact Email Address: I eric@starfiresports.com
Check all the service categories that apply tothis application:
� Tourism promotion mrmarketing.
� Operation ofospecia/event orfestiva/designed toattract tourists.
*^ Operation of tourism -related facility owned or operated by o 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 ofthe following applies toyour 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 organ ization/agency applying for funding. I understand that:
w 1 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 ofCity property, ifapplicable.
My agency will be required to submit a report documenting economic impact results in a
format determined by the City.
Signature:
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AUG 15 2000
STA tFTR,Z SPORTS A NOMPROFTi
CORRORA''rloN
100a STARF%`,IR,R WAY
TAW1t.A, WA 98188
Dear Ap
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Contact Person:
CARLY D YOUNG
Contact Telephone Nr rnk)e r :
(877) 829-5500
Public Charity Status:
509(a.) (2)
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die-X ;letter Slated December 23, 2003, stated you would be exempt from Federal
income Eax '°urlcler sedeion 501 (c) (3) of the Internal P.evenue Code, and you would
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Your Organization., provides detailed
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o1,1-free °number for forms,
bailable on our Internet Web Site at
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call our
Form
(Rev, October 2018)
Deortrnent of the Treasury
Internal Revenue Service
Request for Taxpayer
identification Number and Certification
b. Go to www.irs.gov/FormW9 for instructions and the latest information.
Name (as shown on your income fax return) Name is required on ells tno. do not leave this Iine blank
Starfire 5oorts
2 Business name/disregarded entity name, if different from above
a) 3 Check appropriate box for federal fax classification of the person whose name is entered on line 1. Check only one of the
following seven boxes.
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g D Other (see Instructions)
u, 5 Address (number, street, and apt. or suite no.) See instauctrons,
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14800 Starfire Way
6City, state, and ZIP code
Tukwila, WA 98108
7 Lis t account number(s) hero (optional)
C Corporation Lil S Corporation E Partnership El Trust/estate
Taxpayer Identification Number (TIN
Enter your TIN In the appropriate box, [he 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 V, 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.
LJ Individual/sole proprietor or
single -member LLC
El Limited liability company. Enter the tax classification )CC 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 ts disregarded from the owner unless the owner of the LLC
another LLC that is not disregarded from the owner for U.S„ federal tax purposes Otherwise, a single -member LLC that
is disregarded from the owner should check the appropriate box for the fax classification of its owner
Give Form to the
requester. Do not
send to the IRS.
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)
(ApplMs lo'acCaltinh's mairialre.1 ourside Ow )
Requesters name and address (optional)
Part II
Certification
Social security number
- -
or
player Identification number
47 01 8 8 7 8 1
Under penalties of perjury, I certify that:
1. The number shown on this form is my correct taxpayer identification number (or I am wailing for a number to be issued to rne); and
2. 1 arn not subject to backup withholding because: (a) I arn exempt from backup withholding., or (b) I have not been notified by the Internal Revenue
Service (IRS) that lam subject to backup withlioldtng 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 withhotding; and
3. I am a U.S. citizen or other U.S. person (defined below); and
,I. The FATCA code(s) entered on this form (If any) indicating that I am exempt from FATCA reporting is correct,
Certification instructions, You rnust cross out item 2 above if you nave been notified by the IRS that you are currently subject ro backup withholding because
you have tailed to report all interest and dividends on your fax return. For real estate transactiors, itern 2 does not apply. For mortgage interest paid,
acquisition or abandonment of secured properly, cancellation of debt, contributions to an individual retirement arrangement (HA), 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 YnsCruclrons for Part It, later.
•
Sign
Here
Signature of
U.S. person
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.hrsgov/FormW9,
Purpose of Form
An indtvidual or entity ((lorin W-9 requester) who, is required to lita.art
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 (ATIN), or employer identification number
(EIN), 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 io, the following.
• Form 1099-INT (interest earned or paid)
()a Lte
• 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)
• Form 1098 (home mortgage interest), 1098-€ tstudent 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.
you do not natum 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
Forrn W-9 (Rev. 10-2018)
6
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
7
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 fulltinne 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 150,000
event/activity.
c. Number of people who will travel more than 50 miles for your 10,000
event/activity.
d. Of the people who travel more than 50 miles, the number of people 23%
who will travel from another country or state.
Page 3 of 5
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e. Ofthe people who travel more than 5Omiles, the number nfpeople
who will stay overnight in Tukwila.
. Ofthe people staying overnight,thenunmberofpeop|exvhovviUstayin
PAID accommodations (hotel/motel/bed-breakfast) in Tukwila.
g. Number ofpaid lodging rmomnightsnesuhjngfronnyourpnoposed
event/ activity/facility (for example: 25paid rooms nnFriday and 50
paid rooms on Saturday = 75 paid lodging room nights)
10) What methodologies didyouwse tmcalculate 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 iathe overall budget for your event/activity/facility? What percent mfthe 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 onarolling basis. Please contact staff todiscuss 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
63OOSmuthcenterBlvd
Tukwila, VVA98lB#
Or,
Page 4 of 5
LTA[Contact:
Brandon ].Miles
(206)431'3684
Byamdon.K4Qes@TukvvIavwa.Aov
Updated: December 29, 2022
Page 5 of 5
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Staff Memorandum
Lodging Tax Advisory Committee Funding 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 $80,000 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 efforts.
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
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
11
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
12