HomeMy WebLinkAboutCOW 2013-03-25 Item 4B - Powerpoint Presentation Shown at Meeting - Tourism Promotion Area (TPA)Tourism Promotion Area
Tukwila City Council
March 25, 2013
Tonight's Objectives
• Background on TPAs in Washington
• Outline next steps
• Discussion
Next week:
• Motion of support from the City Council
Hoteliers' Request
• Cities of SeaTac and Tukwila and others form a
tourism promotion area
• Impose up to $2 per room night charge if over a
certain number of rooms
— Could generate up to $2.5 million /year
• Form a public development authority (PDA)
• Hotelier autonomy and oversight
• Redirect current SSVS lodging tax to PDA
What is A TPA?
• Geographic region in which a legislative
authority charges a per room night fee on
the furnishing of lodging by either a hotel
or motel.
• Separate from the lodging tax charge.
• Funds must be used to promote tourism in
the geographic region.
TPAs in Washington
• Snohomish County
• Spokane County
• Pierce County
• Vancouver -Clark
County
• City of Selah
• City of Yakima
• City of Wenatchee
• Tri- Cities
• Walla Walla
• Thurston County
(Proposed)
• Kitsap County
(Proposed)
TPA Formation Process
• Cities designate a legislative authority
[Note: In King County TPA must include two local governments]
• Hotel ratepayers submit petition to the legislative
authority
• Legislative authority holds public hearing and adopts an
ordinance forming TPA and imposing lodging charge
• Legislative authority uses funds for tourism promotion or
contracts with third party
• Legislative authority provides ongoing oversight
Organizational Options
The City of Sea Tac has offered to
serve as the legislative authority
and also sponsor the PDA
Either city council or a
combination or subset
Could be a business, city
department, 501(c)(6),
or public development
authority (PDA)
Summary of Key Questions
• Council role in legislative authority
• City or council role in tourism organization
• Form of tourism organization
• Rate structure
• Termination provisions
• Role of City of Tukwila tourism staff
• Dedication of current SSVS lodging tax
Next Steps
• Motion in expressing support to participate
in a TPA set for April 1St.
• Staff will then start working with
stakeholders in the formation process.