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HomeMy WebLinkAboutReg 2025-11-03 Item 7A - LTAC - Application Funding - World Cup Activations & Destination Development for $2,199,053COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/03/25 BJM ITEM INFORMATION ITEM No. 7.A. STAFF SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 11/03/25 AGENDA ITEM TITLE Review of lodging tax funding request from the City of Tukwila for the 2026 World Cup. CATEGORY ® Discussion Mtg Date 11/03/25 ® Motion Mtg Date 11/03/25 ❑ 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 The City of Tukwila is requesting $2,199,053 in lodging tax funding to support the City's efforts during next year's World Cup. Funds will be used for events, destination development, marketing, economic development and small business support. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ® Planning & Community Dev. ® LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/24/25 COMMITTEE CHAIR: SHARP RECOMMENDATIONS: SPONSOR/ADMIN. Approve. COMMIIIEE N/A COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $2,199,053 AMOUNT BUDGETED $750,000 APPROPRIATION REQUIRED $1,449,053 Fund Source: LODGING TAX FUNDS (101). THESE FUNDS ARE RESTRICTED UNDER STATE LAW TO TOURISM ACTIVITIES. Comments: No general funds will be used. MTG. DATE RECORD OF COUNCIL ACTION 11/3/25 MTG. DATE ATTACHMENTS 11/3/25 Informational Memorandum, dated October 27, 2025 City of Tukwila Funding Lodging Tax Funding Application Memo to Lodging Tax Advisory Committee, dated October 19, 2025 Lodging Tax Six Year Financial Look Ahead PowerPoint 101 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Brandon Miles, Director, Strategic Initiatives CC: Thomas McLeod, Mayor DATE: October 27, 2025 SUBJECT: Lodging Tax Funding Requests ISSUE Review of lodging tax funding request from City of Tukwila to support the City's World Cup promotion and planning efforts. 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." 102 INFORMATIONAL MEMO Page 2 Pending Applications 1. City of Tukwila, World Cup ($2,199,053) The City of Tukwila is requesting just over $2.1 million in lodging tax funding to support the City's efforts during next year's World Cup. Please see the attached memo, dated October 19, 2025, that went to LTAC that outlined the proposed use of the funds. LTAC Recommendation on Application: Approval (3-1 vote) Staff Recommendation on Application: Approval. FINANCIAL IMPACT Over the last number of years the City has been building up a healthy reserve in the lodging tax funds in anticipation of the World Cup. The adopted 2025/26 budget had a projected ending fund balance of $3.2 million at the end of 2025. The LTAC also maintains a six -year look ahead to monitor expenditures and to make sure the City has sufficient funds for future opportunities. Even with the increased expenditures in lodging tax funds for the World Cup, the City is projecting a large ending fund balance of just over $2.0 million in 2030. RECOMMENDATION The Council is being asked to approve the lodging tax request in the amount of $2,199,053 th World Cup. The funds will be used in both 2025 and 2026. ATTACHMENTS 1. City of Tukwila Funding Lodging Tax Funding Application. 2. Memo to Lodging Tax Advisory Committee, dated October 19, 2025. 3. Lodging Tax Six Year Financial Look Ahead (Reviewed at October 24, 2025 LTAC meeting). 4. PowerPoint 103 Application to the City of Tukwila for Use of 2025 Lodging Tax Funds Event or Activity Name (if applicable): City of Tukwila World Cup Activations and Destination Development Amount of Lodging Tax Requested: $2,199,053 Applicant Organization: City of Tukwila Federal Tax ID Number: N/A Mailing Address: 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: Brandon Miles Date: October 21, 2025 104 1. Describe your tourism -related activity or event. The City of Tukwila proposes a comprehensive 2026 World Cup Visitor Campaign, including City - hosted events, promotional activations, marketing initiatives, physical improvements, and economic development efforts to attract visitors to Tukwila during the World Cup. 2. If an event, list the event name, date(s), and projected overall attendance. The campaign includes Southcenter Viewing Lounge, TIB Watch Parties, Southcenter Block Party, mini -pitch activations, Holiday Kickoff, 100-Day Countdown Event, and an eSports FIFA tournament. Additionally, the City would like to make specific investments in the destination to accommodate and show off the City to the influx of tourists. Projected overall attendance is estimated at 50,000+ participants over all events. The events will occur starting in December of 2025 and run through July of 2026. The exact dates still need to be confirmed. 3. Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? Both overnight and day tourists will be targeted, with a focus on attracting visitors from outside the Seattle region to increase hotel stays and local spending. 4. Describe why visitors will travel to Tukwila to attend your event/activity/facility. Visitors will travel to Tukwila due to its proximity to the airport, its hotel capacity, diverse dining options, and unique event experiences tied to the World Cup, including family -friendly activities and international culture celebrations. We already expect tourists from outside the state and country to come to Seattle and Tukwila for the World Cup. The specifics of who and where they will come from will be determined by the World Cup draw in December. 5. Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Targeted visitors include local residents, regional audiences across King and surrounding counties, national tourists attending World Cup matches in Seattle, and international visitors following the tournament. The specifics of who and where they will come from will be determined by the World Cup draw in December. Some national team fans travel better than others. 6. Describe the prior success of your event/activity/facility in attracting tourists. The City has put together a team ready to implement the World Cup initiatives. The team includes Experience Tukwila, Tukwila Parks, Swift (event producer), Westfield Southcenter, Tukwila Economic Development, and Tukwila Public Works. The City has extensive experience putting on events and activities of all sizes. 7. If this your first time holding the event/activity/facility provide background on why you think it will be successful. Page 2 of 5 105 This is the first time we have conduced this specific event. Given that this is tied to a specific global sporting event, several of the events will be one and done; however, the City hopes to continue some of the events and destination development investments long term. 8. Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. The City will promote the events through a variety a way, including dedicated ads, social media, a microsite, influencers, and other means to promote the activities and the City as a whole. The City will also partner with Explore Seattle Southside, Visit Seattle, local Chambers, and the local World Cup organizing committee. 9. Describe how you will use the name, "Tukwila" in publications, promotions, and for your event? This event will be 100% promoted as being in Tukwila and will utilize the Tukwila name, including Experience Tukwila in promoting the events and activities. 10. 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. 25,000 overall of direct attendance and a significant undermined number who will in the area for the World Cup. b. Number of people who will travel fewer than 50 miles for your event/activity. 5,000 c. Number of people who will travel more than 50 miles for your event/activity. 15,000 overall direct. A significant undermined number who will in Page 3 of 5 106 the area for the World Cup. d. Of the people who travel more than 50 miles, the number of people who will travel from another country or state. 5,000 e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. 4,000 f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 3,500 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) 5,000 It's important to remember that people will be coming from around the world and nation for the largest sport event in the world. Our goal is to create a great experience for them and to enhance their tourist spend versus simply drawing them to our community. Our lodging businesses and short-term rentals will likely be at peak capacity during the period when Seattle is hosting the games. 11. 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? These are estimates. We will track number of attendees at the event and digital engagement. 12. What is the overall budget for your event/activity/facility? What percent of the budget are you requesting from the City of Tukwila? The City's overall budget for the World Cup is difficult to determine since the City will redirect some existing staff to respond to the significant influx of visitors we expect from the games in Seattle. Our overall budget being required here is: The overall budget includes City -Produced Events, Destination Development, Marketing, and Economic Development initiatives as detailed below: See attached memo. Page 4 of 5 107 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, Brandon.Miles@Tukwilawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 731-9071 Brandon.Miles@Tukwilawa.gov. Updated: December 29, 2024 Page 5 of 5 108 TO: Lodging Tax Advisory Committee FROM: Brandon Miles, Director, Strategic Initiatives DATE: October 19, 2025 RE: World Cup Funding Request Issue Staff is requesting $2,199,053 in lodging tax funding to support the City's 2026 World Cup campaign. Background Over the summer, City staff has provided briefings to the Lodging Tax Advisory Committee (LTAC) regarding next year's World Cup. Seattle is one of the host cities for the 2026 World Cup and will host a total of six matches, including hosting at least one game for team USA and two knock around rounds. Given Tukwila's location to the airport, large capacity of hotel rooms, and proximity to one of the likely home training facility (Sounder's Longacres Facility) for a team, Tukwila will likely see a significant number of tourists, both day and overnight, for the event. The City has an opportunity to use the World Cup as a catalyst for several long-lasting initiatives and developments. City staff have identified several focus areas that we would like to focus our efforts. These focus areas complement other initiatives for the City, such as the Southcenter Plan, Arts Plan, and PROs Plan. The City has initially forecasted a total combined spend of $750,000 for the World Cup in 2025 and 2025. However, additional funds that could be used for the World Cup were in additional buckets within the six year financial plan. The requested funds have been placed in various pots. It's possible that the City will need to move funds from one pot to another, based on receiving revised cost estimates. Additionally, some of the artistic light displays have been deferred so that staff has more time to work on obtaining better cost estimates. WORLD CUP PLAN City Produced Events A variety of events are being planned to take advantage of the World Cup. The goal is to cater to those visiting Seattle for the games and residents within the greater Puget Sound 1 109 region. It's important to remember that most people will not have tickets to the game, so our goal is to create a memorable experience for those that cannot attend. Southcenter Viewing Lounge Partnering with Westfield Southcenter, a viewing lounge will be set up in the old Forever 21 space. The viewing lounge will provide active and passive viewing options. This viewing experience differs from many that tend to take place for specific times and are outdoors. The proposed viewing lounge will allow people to come and go as they like. It would serve as opportunity for family members to view a match, while others enjoy other activities at the mall. Note, the City is still exploring the viewing license options and cost for the matches. It's possible the viewing lounge will be considered a non-commercial activity and the City will not have to pay for a viewing license. Tukwila International Blvd Watch Parties The Tukwila International Blvd (TIB) corridor is one of the most diverse areas of all of King County. It's likely that this area can draw visitors looking for unique dining options and also looking for a differing viewing option than what will occur in the Southcenter District. The City is proposing to host seven World Cup watch parties in TIB. The watch parties done in conjunction with other activities, such as food trucks and family friendly events. Note, the City is still exploring the viewing license options and cost for the matches. It's possible the viewing lounge will be considered a non-commercial activity and the City will not have to pay for a viewing license. Southcenter Block Party On date(s) yet to be determined during the World Cup, the City will host a block party adjacent to Southcenter Mall. The block party, which would be one or two days, will feature music, dance performances, dance lessons, food, and other family friendly activities. On the last night of the block party, the City is exploring hosting the World Dance Party. A dance party featuring dances from throughout the world. The City is exploring partnering with Century Ballr000m, LLC to manage the dance party and dance events leading into the larger party. Promotional Events • Mini -Pitches Activations at Westfield Southcenter The Rave Foundation, the non-profit arm of the Seattle Sounders, has committed to installing several outdoor mini -soccer pitches at Westfield Southcenter and covering the 2 110 costs of installation. The pitches will be available to people at all hours of the day. To further activate the pitches, the City will activate select days to include a variety of activities for people to engage with to celebrate soccer and bring fans together. • Holiday World Cup Kick Off Party Host an event in December to build excitement for the World Cup and to bring media attention to the City's efforts. • 100-Day World Cup Promotion Kick Off Event In March host an event, including launching a countdown clock to celebrate the World Cup and events the City will host. • eSports Event A small esports FIFA event will be held leading up to the World Cup to bring additional attention to the City's World Cup activations. • Extra Labor To produce some of the evens, the City will need extra help, including an event producer to help us organize and arrange the block party and Southcenter viewing party. Additionally, City's recreation staff will also need extra bodies to staff the events, which can be done with seasonal, extra labor. The City is also proposing to create a paid ambassador program to help people, specifically people out of the area navigate around the region. The ambassadors would be placed at key hubs, such as the large events, Westfield Southcenter, and transit stations. City Produced Event Southcenter Viewing Lounge: $225,000 TIB Watch Parties: $15,500 Southcenter Block Party: $100,000 Promotional Events: $75,000 Smaller Community Event: $5,000 Extra Labor (Recreation Staff): $95,666 Extra Labor (Ambassador Program): $43,000 Senior Event Manager (Contracted): $180,000 Event Producer (Contracted): $135,000 Logistics Manager (Contracted): $324,000 City Produced Event Total: $1,198,166 3 111 Destination Development Destination development will focus on creating a physical environment that is safe, clean, and visually interesting to visitors. Physical Improvements The City would like to make physical improvements throughout the Southcenter District and TIB neighborhood to prepare for the World Cup. Improvements would include hanging baskets, planters, banners, amenities (benches, trees grates), improving landscaping plantings and areas, flags, and art. Many of the physical improvements will extend past the World Cup. Physical Improvements Hanging Baskets: $35,175 Planters: $80,700 Light pole banners: $100,283 Benches, tree grates, etc.: $25,000 Encampment Clean Up: $10,000 Flags: $11,000 Public Art: $52,500 Public Works Allowance: $79,000 Subtotal: $371,935 Contingency (10%): $37,193 Total: $409,129 West Valley Hwy Ped Bridge Clean Up and Repair: Deferred Destination Development, Extra Labor Because we are expecting a surge of visitors during the World Cup, the City's Parks and Public Works Departments would like to bring on additional staff during leading up to and through the World Cup. The staff will be focused on the Southcenter District, Tukwila International Blvd, and transportation corridors with the goal being to keep the City clean and addressing issues that might come up. The staff will also work to install and implement the items listed for physical improvements. With the large number of hotels, restaurants, and retailers, the City is expecting a surge in visitors to the Southcenter District and Tukwila International Blvd. Destination Development, Extra Labor Parks Temporary Labor: $167,835 Public works Temporary Labor $98, 923 4 112 Total: $266,758 Interactive Art Economic Development has been working on some interesting artistic light displays the City could consider installing as part of the World Cup. The lighting displays will remain after the World Cup has concluded. Staff is still working on the final costs and at this time we are not request funding. Staff may come back prior to the World Cup and request funds. Destination Development, Artistic Lights Green River: Deferred Westfield Southcenter: Deferred Other: Deferred Total: Deferred Marketing The City would develop an aggressive marketing campaign to promote the City to visitors, both local and overnight, for the World Cup. The marketing campaign would focus on both the City's events, things to do overall in the City, and events that might be being hosted by third parties, such as Starfire Sports. The City's marketing efforts will focus around the Experience Tukwila digital tools, specifically with the development of a 2-3 page microsite with all the information regarding things to do in Tukwila. We will also work to partner with other digital initiatives taking place in the region, such as Explore Seattle Southside, Visit Seattle, and the local organizing committee. Tactic Description Cost Website Partner Toolkit Design and development of 2-3 page microsite, includes interactive map feature. Updates to existing ExperienceTukwfa.org. Including new blog features. Design of Decals, stickers, buttons, table tents, coaster, flyers, maps, trifolds, etc. Social media toolkit with sample post content and graphics Estimated printing/production fees for partner toolkit. $40,000 Retainer $20,000 $5,000 $7,500 5 113 Outdoor Signage Paid media campaign Owned Channel Engagement Design of outdoor street banners and event signage, outdoor artwork Ad creative production of social media ads, google search, display banner ads, and outdoor billboards Paid media placement costs Development of made -for social video content Regular Experience Tukwila social channel and email content management. $15,000 $20,000 $55,000 $37,500 Retainer GRAND TOTAL: $200,000 In addition the marketing efforts outlined above, staff also would like to do a partnership with the University of Washington to highlight the City's history with soccer and players who have gone through Starfire Sports and are now playing at the UW and beyond. Staff would like additional funds to do additional paid media in local publications and to do promotions specifically for the World Dance Party event, leading into the World Cup. Marketing Experience Tukwila World Cup Initiative: $200,000 UW Partnership: $50,000 Paid Media: $25,000 World Dance Party Collaborations and Promotions: $25,000 Total: $300,000 Economic Development As part of the City's World Cup preparations, Economic Development will conduct additional outreach to help our businesses be "World Cup" ready. This will build and augment with the work being done by the Seattle Chamber, Seattle Southside Chamber, Visit Seattle, and Explore Seatle Southside. The City has received a small grant from the Port of Seatle for some of this work, which is reflected in the overall budget. Economic Development Design promotional materials: N/A, included in the marketing budget. Promotion via email, web, social media: Social media ad buys: Door to door contacts: $10,000 Technical assistance for social media: $15,000 Photos for social media: $5,000 6 114 Less Port of Seattle Grant: ($5,000) Total: $25,000 Metrics and Tracking Success For tracking success for the World Cup Initiative, staff is proposing the following metrics: 1. Attendance at the various events. 2. Digital engagement. 3. Digital Marketing Metrics (engagement, likes, etc.). 4. Earned media engagement. 5. Public sentiment. 6. Sustainability of events (year over year). In 2018 as part of the brand development process the City completed a public perception survey regarding the city and people's feelings about it. It's overdue for the City to update that survey and staff was anticipating during the survey after the World Cup and will include relevant questions regarding the World Cup Budget and Six Year Financial Plan Attached with this memo is the adopted six -year financial plan the LTAC reviewed. For the World Cup the financial plan projected spending a total of $750,000 total in 2025 and 2026 for the World Cup. This projection was too low and additionally some other forecasted expenses for the World Cup, such as art and way finding were included in separate line items, versus within the total budget for the World Cup. Staff is proposing revisions to the six -year financial plan to accommodate the proposed spend for the World Cup (see attached revision sheet). 2025 Projected Spend The suggested revisions are as follows: Item Adopted Six Year Financial Plan Amount Proposed Revised Six Year Financial Plan Amount Staff Notes Lodging Tax Revenue $900,000 $800,000 Reflects reduction in revenue seen by hotels and in actual lodging tax collection through June. 7 115 Interest and Other Earnings $20,000 $50,000 Initial amount was forecasted to be too low. The revised number reflects likely actuals for 2025. Business Attraction and Promotion $30,000 $8,000 Reflects actual approved amount for Explore Seattle Southside meeting request. Showare Sponsorship $15,000 $0 Reflects actual spend. Wayfinding Plan Development and Installation $100,000 $0 Portions of these funds can be merged into the World Cup request. Art Investments $75,000 $0 Portions of these funds can be merged into the World Cup request. Change in Ending Fund Balance $3,339,707 $3,481,707 The changes outlined above increase the ending fund balance by an additional $142,000 2026 Projected Spend The suggested revisions are as follows: Item Adopted Six Year Financial Plan Amount Proposed Revised Six Year Financial Plan Amount Staff Notes Interest and Other Earnings $20,000 $50,000 Initial amount was forecasted too low. The revised number reflects anticipated collections for 2025. World Cup Planning and Activation $500,000 $1,949,053 Reflects proposed request for funds that will be used in 2026. The total 8 116 request is $2M, with some funds being used in 2025. Business Attraction and Promotion $30,000 $60,000 Reflects actual approved amount for Explore Seattle Southside meeting request. Showare Sponsorship $15,000 $0 Reflects likely spend. Station Domination $0 $119,275 Reflect approved application from Explore Seattle Southside Wayfinding Plan Development and Installation $100,000 $0 Portions of these funds can be merged into the World Cup request. Art Investments $40,000 $0 Portions of these funds can be merged into the World Cup request. Total Expenditure: $1,314,159 $2,657,487 Total expenditures are increased by $1,343,328. Change in Ending Fund Balance $3,481,707 (from revised 2025 table above) $2,293,273 If the City funds the added World Cup investments, the City ending funding balance will be reduced by over $1 million from 2025 to 2026. However, the City has been building up the lodging tax funds in anticipation of the World Cup. In future out years, staff is proposing to reduce the contribution to Tukwila Pond since this project currently does not have any other identified funding. The Showare contribution was also eliminated since this project never moved forward. The City's lodging tax fund ending fund balance remains strong through 2030, with projected ending fund balance in 2030 being over $2 million. The revenue and spend forecasts are conservative, with the City traditionally bringing in more revenue than forecasted and underspending the proposed expenditures. Staff is pursuing possible third -party funding for some of the smaller events outlined above. 9 117 With the Women's Soccer World Cup scheduled for 2031 in the United States, the Men's Rugby World Cup in 2031, and Women's Rugby World Cup in 2033, the City will have sufficient reserve funds to activate for these events as well. 118 Tourism Funding, Six Year Financial Plan DRAFT - Updated October 22, 2025 Working Draft Update 2023 Actuals 2024 Budget 2024 Projected (Unaudited) % Difference 2025 2026 2027 2028 2029 2030 Totals,'24-'30 Tourism Revenue Lodging Tax $ Federal Indirect Grants: $ Local Grants & Other Payments: $ Interest and Other Earnings: $ Total Revenues: Tourism Expenses Marketing, Sales, and Sponsorships Sponsorships Small Events ?Hence Tukwila, Branding and Marketing, Visitors World Cup Planning and Activation Business Attraction and Promotion Sub Total: Special Projects (Previosuly COVID Response) Showare Sponsorship Station Domination (SSRTA) Sub Total: Destination Development Wayfinding Plan Development and Installation Art lnvestments Tukwila Pond Sub Total: General Administration Salary and Benefits City Overhead Charge Administrative Sub Total: Total Expenditures: Beginning Fund Balance: Ending Fund Balance: Notes 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 75/25 between general fund and lodging tax and is estimated to increase 3%annually after 2026. 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. The totals include the budgeted 20252030 and the projected actuals for 2024. 971,162 $ 750,000 44,000 $ 20,000 122,651 $ 20,000 785,000 4.67% 125,000 525.00% $ 800,000 $ 1,000,000 $ 900,000 $ 900,000 $ 950,000 $ 1,000,000 $ 50,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 1,137,813 $ 790,000 $ 910,000 15.19% $ 850,000 $ 1,020,000 $ 920,000 $ 920,000 $ 970,000 $ 1,020,000 $ 130,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 190,000 $ 200,000 $ 200,000 $ 200,000 $ 210,000 $ 210,000 $ 210,000 $ 50,000 $ 250,000 $ 1,949,053 $ - $ - $ - $ - $ 30,000 $ 8,000 $ 60,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 280,180 $ 415,000 $ 412,000 -0.72% $ 648,000 $ 2,399,053 $ 420,000 $ 430,000 $ 430,000 $ 430,000 $ 15,000 $ - $ - $ - $ - $ - $ - $ 119,275 $ 15,000 $ - -100.00% $ - $ 119,275 $ - $ - $ - $ - $ 100,000 $ - $ - $ - $ 100,000 $ 150,000 $ 150,000 $ 150,000 $ 75,000 $ - $ - $ - $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ - $ - $ - $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 175,000 $ - -100.00% $ - $ - $ 240,000 $ 290,000 $ 290,000 $ 290,000 $ 93,001 $ 101,850 $ 115,917 13.81% $ 71,954 $ 78,490 $ 80,845 $ 83,270 $ 85,768 $ 88,341 $ 26,493 $ 27,818 $ 27,818 0.00% $ 29,209 $ 30,669 $ 31,000 $ 32,000 $ 33,000 $ 34,000 $ 11,203 $ 30,000 $ 12,750 -57.50% $ 30,000 $ 30,000 $ 30,000 $ 31,000 $ 32,000 $ 33,000 $ 130,697 $ 159,668 $ 156,485 -1.99% $ 131,163 $ 139,159 $ 141,845 $ 146,270 $ 150,768 $ 155,341 $ 410,877 $ 764,668 $ 568,485 -25.66% $ 779,163 $ 2,657,487 $ 801,845 $ 866,270 $ 870,768 $ 875,341 $ 2,342,419 N/A $ 3,069,355 $ 3,410,870 $ 3,481,707 $ 1,844,220 $ 1,962,375 $ 2,016,105 $ 2,115,337 $ 3,069,355 N/A $ 3,410,870 $ 3,481,707 $ 1,844,220 $ 1,962,375 $ 2,016,105 $ 2,115,337 $ 2,259,996 $ 6,335,000 $ 275,000 $ 6,610,000 1,050,000 90,000 1,230,000 2,199,053 188,000 5,169,053 $ 119,275 $ 550,000 $ 160,000 $ 400,000 $ 1,110,000 $ 604,585 $ 217,696 $ 198,750 $ 1,021,031 $ 7,419,359 TRbsltk World Cup Plan City Council Presentation November 3, 2025 -,S011%.,046 FIFA WORLD CUP IN PNW JUNE 1JULY 7 2026 Practice fields: University of WA Seattle University Proposed WA Base camps: Renton (Sounders Clubhouse) & Spokane (Gonzaga University) Official Fan activations: Seattle Center & 9 cities across WA Regionally, we estimate 4 billion+ global viewers Up to 1.6 million visitors N N Explore Seattle Southside ETCH ICHEDOLE 6/15/26 GROUP STAGE 6/26/26 GROUP STAGE 6/19/26 USA GAWP STAGE 7/01/26 ROUND Of 32 6724/26 GOMM STAGE 7/06/26 ROUND Or i& © Seattle Southside, All Rights Reserved Explore Seattle Southside Fan Zones: Bellingham, Bremerton, Everett, Olympia/Lacey, Pasco/Richland/Kennewick (Tri-Cities), Spokane, Tacoma, Vancouver and Yakima Funding for Fan Zones: Current WA Legislative session to consider funding for 2026. Seattle Metropolitan Chamber of Commerce has been selected by the SEATTLEFWC26 committee to administer the funds (if allocated) © Seattle Southside, An Rights Reserved Internal Brand Position: Tukwila, 2027 • Use the World Cup to launch investments (both capital and events) that last into future years. • Put our best foot forward to people visiting from throughout the region, nation and world. • Show the potential of our community. • Create pride for our community members. • Remind Puget Sound that the epicenter of soccer in the PNW is Tukwila. ANVISSIR Key Focus Areas • Events • Destination Development • Economic Development • Marketing and Business Readiness TRbsltk Events filt NI ANVISSIR Key Focus Areas • Events • Destination Development • Economic Development • Marketing N CO Overview� Community Events (20-mile drive from the City) In anticipation of the 2026 FIFA World Cup and building on Tukwila's identity as a hub of international culture and soccer passion, the T kw3=a nit d initiative is a program designed to celebrate soccer, culture, and community. =anned activities 3n = de: . Youth soccer clinics and equipment giveaway . "Tuk Cup" youth soccer tournament FIFA e-sports tournaments for youth, teens, and adults City -hosted kickoff City hosted watch parties Together, these events foster meaningful engagement for Tukwila residents, ensuring every child and family have a chance to connect with the World Cup experience. Co Evert Act' ▪ Soccer Skills and Drills ▪ Bubble Ball I▪ nflatable Foosball I▪ nflatable Soccer Billiards ▪ Soccer Skills Obstacle Course ▪ DIY Team Flags ▪ Scarf Decorating Stations ▪ Soccer Equipment Giveaways Ambassador Program A successful Tukwila United World Cup experience requires more than world -class events — it requires world -class people. The Ambassador Program equips seasonal team members with the knowledge, skills, and heart to represent Tukwila with pride, safety, and service excellence. Training Focus Areas • History & Identity of Tukwila • Customer Experience & Service Excellence • Transit Knowledge • Soccer Skills & Drills • Event Management & Equipment Operations • De-escalation & Conflict Resolution • Health & Safety Preparedness Includes First Aid, CPR, Narcan, and Bloodborne Pathogen training to respond to incidents quickly and effectively. • High -Traffic Area Activation Ambassadors will be strategically deployed across key event zones to serve as visible, proactive, and informed "concierge" representatives — assisting guests, managing flow, and supporting public safety. "Tukwila United Ambassadors: Local pride. Global stage. One team." Regional Events • Baker Blvd Block Party, with world Dance Party • Turf fest (mini -pitches at the mall), during key matches and days. • Viewing set up inside (viewing lounge) TRbsltk Southcenter Viewing Lounge: $225,000 TIB Watch Parties: $15,500 Southcenter Block Party: $100,000 Promotional Events: $75,000 Smaller Community Event: $5,000 Extra Labor (Recreation Staff): $95,666 Extra Labor (Ambassador Program): $43,000 Senior Event Manager (Contracted): $180,000 Event Producer (Contracted): $135,000 Logistics Manager (Contracted): $324,000 City Produced Event Total: t 1 98, 166 O TRbsltk Destination Development jj- NI W • Provide a safe, clean and green place for fans to experience the largest ever soccer tournament • Showcase Tukwila as an international community with unique multi- cultural opportunities and feature accessible parks, shops, restaurants and entertainment attractions • Generate positive economic impact for the Tukwila community while supporting the people who make Tukwila their home • Leverage the global excitement surrounding the tournament by making modest local investments to achieve long-term benefits • Create a catalyst for cultural exchange, economic growth and strengthened civic identity CETi�kwila W 0) Showcasing Our Assets tionaI land hcenter Distric TIB S. 152nd St. to S. 139 St. SOUTHCENTER DISTRICT Tukwila Parkway/Andover Park W to Minkler Blvd. Baker Boulevard — Christiansen Rd.— Green River Trail — Tukwila Station — Longacres Way Tukwila Pond and vicinity "►Tukwila Tukwila Internationa1 Boulevard TB m»\ intik W co Assets & Opportunities nternationaL Southcenter District esEgetS 1 Assets & Opportunities er Distil Assets & Opportunities er Distil Visual Appeal and Beautification Opportunities wily Utility Boxes- vinyl wraps Murals Thermal plastic roadway treatments Streetscape & Furnishings CP Streetscape & Furnishings Bench: _he It Trailside Amenities Bike repair and water bottle fill station Pedestrian and Bicycle Counters Water bottle fill station and drinking fountain Hanging Baskets Artist: Artist: Khoi Nguyen Phan Tukwila International Boulevard Artist: Richard Penttila Conceptual only Waste Reduction & Recycling • Extra labor to support Tukwila Southcenter District and Tukwila International Boulevard • 7-days/week • 12-16 hours of daily coverage • Rapid response crews- litter, garbage, graffiti abatement • Encampment response, support and mitigation • Streetscape, sidewalks, trails, bridge maintenance and repairs • Street sweeping and sidewalk pressure washing • Traffic control devices and signage • Roadway shoulder maintenance- mowing, edging, blowing • Installation & maintenance of floral displays and plantings • Street Tree and Hanging Basket care TRbsltk DINTMI Hanging Baskets: $35,175 Planters: $80,700 Light pole banners: $100,283 Benches, tree grates, etc.: $25,000 Encampment Clean Up: $10,000 Flags: $11,000 Public Art: $52,500 Public Works Allowance: $79,000 Subtotal: $371,935 Contingency (10%): $37,193 114NOVe1 Total: $409,129 Southcenter Ped Bridge Clean Up and Repair: Deferred O Southcenter Ped Bridge (Deferred) • Clean Bridge • Fix and Restore Lights • Around $300,000 TRbsltk Green River: Deferred Westfield Southcenter: Deferred Other: Deferred -otL: Deferred O _' 63.E /-LIP TRbsltk Public Works Temporary Labor $98,923 Total® 266358 TKkwila Marketing -,S011%.,046 wry' vat TRbsltk Website Partner Toolkit Outdoor Signage Paid media campaign _Owned Channel Engagement Design and development of 2-3 page microsite, includes interactive map $40,000 feature. Updates toexisting _xo r o k . e.orq.lncludingnew blogfeatures. Retainer Design of Decals, stickers, buttons, table tents, coaster, flyers, maps, trifolds, etc. Social media toolkitwith sample post content and graphics Estimated printing/production fees for partner toolkit. $20,000 $5,000 $7,500 Design of outdoor street banners and event signage, outdoor artwork $15,000 Ad creative production of social media ads, google search, display banner ads, and outdoor billboards $20,000 Paid media placement costs $55,000 Development of made -for social video content $37,500 Regular ExperienceTukwila social channel and email content Retainer management. OR _ _D TOTAL $200,000 O TRbsltk Experience Tukwila World Cup Initiative: $200,000 UW Partnership: $50,000 Paid Media: $25,000 World Dance Party Collaborations and $25,000 Promotions: Total: $00 000 TKkwila Economic Development frit 41 Supporting Businesses • Informing businesses how they can participate: o Host watch parties o Host special activities and events o Build on other events and watch parties • Training on how to promote their business to visitors • Business Outreach Methods o City website, Experience Tukwila, email o Partners (e.g. chamber, Somali Independent Business Alliance, etc.) o Focused door to door o Extra focus along Tukwila International Boulevard TRbsltk Design promotional materials: N/A, included in the marketing budget. Promotion via email, web, social media: Social media ad buys: Door to door contacts: $10,000 Technical assistance for social $15,000 media: Photos for social media: $5,000 Less Port of Seattle Grant: ($5,000) -otaL: $25,000 O TRbsltk City Produced Events: $1,198,166 Destination Dev. - Infrastructure: $409,129 Destination Dev. - Labor: $266,758 Marketing: $300,000 Economic Development: $25,000 btal: S29 999053 41161.11""'iwi TRbsltk Questions/Discussion