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HomeMy WebLinkAboutReg 2025-05-19 Item 4E - LTAC - Lodging Tax Funding for Promotion & Facilitation of Leagues, Events & Tournaments for Starfire Sports for $160,000 (2 Years)COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 5/19/25 BJM ITEM INFORMATION ITEM No. 4.E. STAFF SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 5/19/25 AGENDA ITEM TITLE Lodging Tax Funding Requests CATEGORY ❑ Discussion Mtg Date ® Motion Mtg Date 5/19/25 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ® Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PJF SPONSOR'S SUILMARY Review of lodging tax funding request from Starfire Sports to support its marketing and promotional activities for Starfire Sports. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ® Planning & Community Dev. ® LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 4/18/25, 5/12/25 COMMITTEE CHAIR: SHARP, HEDRICK RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office COMMIIIEE Unanimous Approval; Forward to 5/19/2025 Regular Consent Agenda. COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $160,000 AMOUNT BUDGETED $N/A APPROPRIATION REQUIRED $N/A Fund Source: 101 FUND Comments: Toursim funds. No general funds will be used MTG. DATE RECORD OF COUNCIL ACTION 5/19/25 MTG. DATE ATTACHMENTS 5/19/25 Staff Informational Memoradum, dated May 5, 2025 Starfire Funding Request Application City Staff Report to LTAC 5/12/25 Planning & Community Devleopment Committee Meeting Minutes 9 City 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." 10 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 11 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 12 A��U^��t^������h�K~^�����iUa for KUsem������d�^��F�s 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: Omte:4/16/35 13 "L•#'1°1p�'rRF41 I, P,r;V "t1(f)iS 100J7,",V1C1: %,. 6,. , OX 25 e 1NK4OVAM O1J 4001 D.tte; AUG 15 2000 STA tFTR,Z SPORTS A r oNPROFTi CORPORATION 100a STARL%`,IW WAY TAW1t.A, WA 98188 bear Ap Meant: btiP RTMF.`'NT' O ° 'L'F'R `r41,AS(JF* briplQy'r °rcJ rrtif,iwr:ation,. 47-0887811 DUl 170532.157000188 Contact Person: CARLY D YOUNG Contact Telephone Nurnk)E:r : (877) 829-5500 Public Charity Status: 509(a) (2) iurnber Iri# 31494 die-X ;letter Slated December 23, 2003, stated you would be exempt from Federal income Eax ''urlcler se`deion 501 (c) (3) of the Internal P.evenue Code, and you would bz„treated as,,,a-„public charity,,;rat,.er than as a private foundation, during 0000 �IIIIIIIIIIIII U41� IIIIIII�kIiA ding;period 100 000 1111111111111111111111111111111111111FW 11111111111111111111111111 m mhl C...II ',d, you are classified as a public charity se" heading of this letter. Since your (ration, you continue to be classified as ome tax under section 501(c) (3) ,oaf the Ir�ur Organization, provides detailed nsibilities'as an exempt organization, o1,1-free °number for forms, bailable on our Internet Web Site at i za t i-on,s Call our Form (Rev, October 2018) Derrartment 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 lino, do not leave this Iine blank Staritre Sports 2 Business name/disregarded entoty 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. o. 0 0. L. z 12 c p 'c u g 3 Other (see InalruCtionS) (,) 5 Address (number, street, and apt. or suite no.) See insta =Irons, cn 14800 Starfire Way 6—City, state, and ZIP cede Tukwila, WA 9E1108 7 List account number(s) hero (optional) C Corporation Lil S Corporation E Partnership LITrust/estate Taxpayer Identification Number (TIN LJ Individual/sole proprietor or single -member LLC El Limited liability company. Enter the tax classification )CC corporation, S=S corporation, P=Partnership) 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) Note: Check the appropriate box in the line above for the tax classification of the single -member owner, Do not check Exemption from FATCA reporting LLC if the LLC is classified as a single -member LLC that is 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 code (if any) (Applfos lo asSor.inh's mairialre.1 ouside Ow US ) Requesters name and address (optional) 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. Part II Certification Social security number or Hill 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 for I am wailing for a number to be issued to rna); and 2. 1 am 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 4. 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 have been notified by the IRS that you are currently subject to backup withholding because you have tailed to report all interest and dividends on your fax return. For real estate transactions, tern 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 ID sign the certification, but you must provide your correct TIN. See the YnsCruclrons for Part 111, later. • Sign Here Signature of U.S. person 110/ 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 ilrOivlquall or entity ((lorin W-9 requester) who is required to tile 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 (ITIIN), adoption taxpayer identification number (A11N), 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 in, the following. • Form 1099-INT (interest earned or paid) ()a Lte • Form 1099-DIV (dividends, including those from stocks or mutual funds) • Porm 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--€ (student loan interest), 1098-T (tuition) • Form 1099-C (canceled debt) • Form 1099-A (acquisition or abandonment of secured property) Use Form )1V-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) 15 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 16 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 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 17 e. Of the people who travel more than 50 miles, the number of people 7,000+/- who will stay overnight in Tukwila. . Of the people staying overnight, the number of people who will stay in 6,500+/- PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 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) 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 55RTA 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 18 Brandon.Miles Tukwilawa. ov Questions? LTAC Contact: Brandon J. Miles (206) 431-3684 BrandomMiles@Tukwiawa.gov. Updated: December 29, 2022 Page 5 of 5 19 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 20 Jei 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 21 City of Tukwila City Council Planning & Community Development Committee Meeting Minutes May 12, 2025, 5:30 p.m. - Hybrid Meeting; City Council Conference Room & MS Teams Councilmembers Present: Hannah Hedrick, Chair; Verna Seal Staff Present: Nora Gierloff, Neil Tabor, Max Baker, Laurel Humphrey, Marty Wine, Isaac Gloor, Brandon Miles Chair Hedrick called the meeting to order at 5:30 p.m. BUSINESS AGENDA A. Lodging Tax Request - Starfire Sports The Lodging Tax Advisory Committee has recommended funding Starfire Sports' request for $160,000 through 2026 for continued support of marketing and promotional activities. * Committee Recommendation Majority approval. Forward to May 19, 2025 Regular Meeting Consent Agenda. B. Ordinance: Critical Area Designation Permit and Pre -Application Process Staff is seeking approval of an ordinance amending the Zoning Code to create a Critical Area Designation Permit and formalize the pre -application conference process. Committee Recommendation Majority Approval. Forward to May 12, 2025 Committee of the Whole. C. Middle Housing, Accessory Dwelling Unit and Objective Design Standards Legislation Staff provided an overview of upcoming ordinances that will amend the Municipal Code to comply with the state's new "Middle Housing" requirements. Committee Recommendation Majority Approval. Forward to May 12, 2025 Planning & Community Development Committee and Committee of the Whole. MISCELLANEOUS The meeting adjourned at 6:12 p.m. HH Committee Chair Approval 22