09-139 Spokane County Tourism Promotion Area, Amendment 2 I PR ZOOS- 0 982
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AMENDMENT NO. 2 TO INTERLOCAL COOPERATION ACT AGREEMENT FOR
ESTABLISHMENT OF SPOKANE COUNTY TOURISM PROMOTION AREA
THIS AMENDMENT NO. 2 AGREEMENT, made and entered into among Spokane
County, a political subdivision of the State of Washington, having offices for the transaction of
business at 1116 West Broadway Avenue, Spokane, Washington 99260, hereinafter referred to as
the "County," the City of Spokane, a municipal corporation of the State of Washington having
offices for the transaction of business at 808 West Spokane Falls Blvd. Spokane, Washington
99201, hereinafter referred to as the "City", and the City of Spokane Valley, a municipal rporation
of the State of Washington, having offices for the transaction of business at the Redwood Plaza,
11707 East Sprague Avenue, Suite 106, Spokane Valley, Washington 99206, hereinafter referred
to at"Spokane Valley"jointly referred to as the"Parties."
WITNESSETH:
WHEREAS, pursuant to the provisions of RCW 36.32.120(6), Spokane County, through
the Board of County Commissioners of Spokane County, has the care of county property and the
management of county funds and business; and
WHEREAS, in 2003, the Washington State Legislature recognized the importance of
tourism promotion and passed Engrossed Substitute Senate Bill No. 6026, now codified as
chapter 35.101 RCW. That legislation authorized the establishment of a Tourism Promotion
Area by a county and the levy of special assessments on lodging businesses to fund tourism
promotion therein; and
•
WHEREAS, pursuant to the provisions of RCW 35.101.080, the Board of County
Commissioners of Spokane County adopted Ordinance No. 04-0211 which established a Tourism
Promotion Area having certain boundaries to include the unincorporated area of Spokane
County, the City of Spokane, and City of Spokane Valley. Ordinance No. 04-0211 also
established a Special Assessment on operators of Lodging Business within the Tourism
Promotion Area on the furnishing of lodging. Ordinance No. 04-0211 was amended to modify
the Special Assessments on operators of Lodging Business within the Tourism Promotion Area
on the furnishing of lodging as follows:
(Underlined language added, lined out language deleted.)
Zone A: $ A $2.00 per
room/day
Zone B: $1.25 $2.00 per
room/day
Zone C: $1.00 $2.00 per
room/day
Page 1 of 5
C-041— 31
WHEREAS, pursuant to the provisions of RCW 35.101.040(2), the Parties entered into
an interlocal agreement dated March 9, 2004 entitled "INTERLOCAL COOPERATION ACT
AGREEMENT FOR ESTABLISHMENT OF SPOKANE COUNTY TOURISM PROMOTION
AREA" (the "Agreement") wherein a Tourism Promotion Area was formed to include properties
within the boundaries of the unincorporated area of Spokane County, City of Spokane, and City
of Spokane Valley. Section No 3 (Rate) of Agreement established a Special Assessment on
operators of Lodging Business within the Tourism Promotion Area on the furnishing of lodging.
Consistent with Ordinance No. 04-0211, the Parties desire to modify the Agreement to recognize
the new rates approved under said Ordinance No.CM5iS.
NOW, THEREFORE, BE IT HEREBY AGREED among the Parties hereto that the
agreement entered into among the Parties dated March 9, 2004 and entitled "INTERLOCAL
COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF SPOKANE COUNTY
TOURISM PROMOTION AREA" as amended by that agreement entered into among the Parties
and entitled "AMENDMENT NO. 1 TO INTERLOCAL COOPERATION ACT AGREEMENT
FOR ESTABLISHMENT OF SPOKANE COUNTY TOURISM PROMOTION AREA" be and
is hereby modified as follows:
*************************
(Underlined and highlighted language added, Lined out and highlighted language deleted.)
3. Levy of Special Assessments on Lodging Businesses within the Spokane County Tourism
Promotion Area.
A. The Board of County Commissioners of Spokane County will levy Special
Assessments on the Operators of Lodging Businesses within the Spokane County Tourism
Promotion Area in accordance with the zones and levels of Special Assessments as set forth in
Resolution No. 04-0140.
B. It is understood and agreed by and between Spokane County, Spokane and
Spokane Valley that the Spokane County Tourism Promotion Area shall include the following
five (5) zones:
Zone A. Zone A encompasses those Lodging Businesses located within
the area of the incorporated city limits of the City of Spokane defined as follows:
Downtown core bordered by Interstate 90 to the south, Hamilton Street to the east,
Indiana Avenue to the north, and Monroe Street to the west.
Page 2 of 5
•
Zone B. Zone B encompasses those Lodging Businesses located within
the area of the incorporated city limits of Spokane and the City of Spokane Valley
except those Lodging Businesses located in Zone A.
Zone C. Zone C encompasses all Lodging Businesses located outside
Zones A and B, but within the unincorporated area of Spokane County.
Zone D. Zone D encompasses all Lodging Businesses with room revenue
under $500,000 per year, situated within the Spokane County Tourism Promotion
Area, regardless of their specific location.
Zone E. Zone E encompasses Lodging Businesses located within the
Tourism Promotion Area, as that term is addressed in WAC 458-20-166 as it
presently exists or may be hereinafter amended, other than hotels, motels, and bed
and breakfast facilities. Lodging Businesses within this zone, as addressed in
WAC 458-20-166, would include only (i) trailer camps and recreational vehicle
parks which charge for the rental of space to transients for locating or parking
house trailers, campers, recreational vehicles, mobile homes, and tents; (ii)
educational institutions which sell overnight lodging to person other than
students; (iii) private lodging houses, dormitories and bunkhouses operated by or
on behalf of businesses and industrial firms or schools soley for the
accommodation of employees of such firms or student which are not held out to
the public as a place where sleeping accommodations may be obtained; and (iv)
guest ranches or summer camps which, in addition to supplying meals and lodging
, offer special recreational facilities and instruction in sports boating, riding,
outdoor facilities and instruction in sports, boating, riding, and outdoor living.
The charge(s) imposed under this section are not a tax on the "sale of lodging" for the
purposes of RCW 82.14.410
C. It is understood and agreed by and between Spokane County, Spokane and
Spokane Valley that the Operators of Lodging Businesses within the Spokane County Tourism
Promotion Area operating in the above-described zones will be subject to Special Assessments to
be levied as follows:
Zone A: .cn $2.00,per room/day
Zone B: $:Th$2.00`per room/day
Zone C: 9 $2.00 per room/day
Zone D: $0.50 per room/day
Zone E: $0.00 per room or space/day
Page 3 of 5
i
i
D. Any change in the Special Assessment rates for any zone as set forth hereinabove
shall be made only by amendment of the resolution by the Board of County Commissioners,with
the approval of the City Council of the City of Spokane and the City Council of the City of
Spokane Valley. No increase in the Special Assessment rates for any zone or change in the
boundaries of any zone shall be made by the Board of County Commissioners of Spokane
County except upon the affirmative recommendation of the Spokane Hotel and Motel
Commission.
**********************
BE IT FURTHER RESOLVED among the Parties hereto, that but for that change to
Paragraph 3 as set forth herein above, all other terms and conditions within the agreement dated
March 9, 2004 and entitled "INTERLOCAL COOPERATION ACT AGREEMENT FOR
ESTABLISHMENT OF SPOKANE COUNTY TOURISM PROMOTION AREA" as amended
by that document entitled "AMENDMENT NO. 1 TO INTERLOCAL COOPERATION ACT
AGREEMENT FOR ESTABLISHMENT OF SPOKANE COUNTY TOURISM PROMOTION
AREA" shall remain in full force and effect without any change or modification whatsoever.
IN WITNESS WHEREOF the Parties have caused this Agreement No. 2 to be executed
on the date and year opposite their respective signature blocks. This Agreement No. 2 may be
executed in any number of counterparts, each of which, when so executed and delivered, shall be an
original, but such counterparts shall together constitute but one and the same. The effective date of
Agreement No. 2 shall be the last signature date.
ATTEST: BOARD OF COUNTY COMMISSIONERS
OF SPOKANE COUNTY, WASHINGTON
• . .,,rael,____, ?/' , ,/, __.,-------- \‘‘
.... TODD MIEL � •° -. Issf \,1,
By: 04■.. _ ./. . ��_ , / r �f o E co•;. °� h,/
IELA ERICKSON ; •° �'' �`�
DAN , o :y �'� N °iI
Clerk of the Board°l b � CO
i
�� •
MA' RICHARD,V. -Chair �/ i
•DATED (1� , O7c5— O/ - +� ,g-' ,SEAL. s'�'
lb , A A `i _
BONNIE MAGER, Commission r _
DATED: V - 24' 0 9 CITY OF SPOKANE
1'Mb3'V 0---7--•-____
_i'
== ----- ,v° \ Thomas E.Danek,Jr
I - ��o City Administrator
('�- ��� _-- Its• City of Spokane
0 1
\ v--.2 4, Le-..,_,,2-j,_:,-_,__- ---5--) i,Page 4 of 5 / A '
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2
Attest: Approved as to form:
i ��,72e. /fete
Acting lty C erk Assistant City Attorney
CITY OF SPOKANE VALLEY
By:
DATED: tR 1a7/GI 9
Title:CI Mastot.fret_
AT S Approved as to form:
I Aft, 4 I a i, .#7' ''ee eed4Pi` /
City Clerk City Attorney
Page 5 of 5
9Pez
o33z
NO. q—059)Co
BEFORE THE BOARD OF COUNTY COMMISSIONERS
OF SPOKANE COUNTY,WASHINGTON
IN THE MATTER OF EXECUTING )
AMENDMENT NO. 2 TO INTERLOCAL ) RESOLUTION
COOPERATION ACT AGREEMENT FOR )
ESTABLISHMENT OF SPOKANE )
COUNTY TOURISM PROMOTION AREA )
WHEREAS, pursuant to the provisions of RCW 36.32.120(6), Spokane County, through
the Board of County Commissioners of Spokane County, has the care of county property and the
management of county funds and business; and
WHEREAS, in 2003, the Washington State Legislature recognized the importance of
tourism promotion and passed Engrossed Substitute Senate Bill No. 6026, now codified as
chapter 35.101 RCW. That legislation authorized the establishment of a Tourism Promotion
Area by a county and the levy of special assessments on lodging businesses to fund tourism
promotion therein; and
WHEREAS, pursuant to the provisions of RCW 35.101.080, the Board of County
Commissioners of Spokane County adopted Ordinance No. 04-0211 which established a Tourism
Promotion Area having certain boundaries to include the unincorporated area of Spokane
County, the City of Spokane, and City of Spokane Valley. Ordinance No. 04-0211 also
established a Special Assessment on operators of Lodging Business within the Tourism
Promotion Area on the furnishing of lodging. Ordinance No. 04-0211 was amended to modify
the Special Assessments on operators of Lodging Business within the Tourism Promotion Area
on the furnishing of lodging as follows:
(Underlined language added,lined out language deleted.)
Zone A: $1.50$2.00 per room/day
Zone B: S-1-,2-5$2.00 per room/day
Zone C: $4,00$2.00 per room/day
Page 1 of 2
WHEREAS, pursuant to the provisions of RCW 35.101.040(2), the Parties entered into
an interlocal agreement dated March 9, 2004 entitled "INTERLOCAL COOPERATION ACT
AGREEMENT FOR ESTABLISHMENT OF SPOKANE COUNTY TOURISM PROMOTION
AREA" (the"Agreement") wherein a Tourism Promotion Area was formed to include properties
within the boundaries of the unincorporated area of Spokane County, City of Spokane, and City
of Spokane Valley. Section No 3 (Rate) of Agreement established a Special Assessment on
operators of Lodging Business within the Tourism Promotion Area on the furnishing of lodging.
Consistent with Ordinance No. 04-0211, the Parties desire to modify the Agreement to recognize
the new rates approved under said Ordinance No.c1 1)57
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Board of County
Commissioners of Spokane County, pursuant to the provisions of 35.101.040, that either the
Chairperson of the Board or a majority of the Board be and are hereby authorized to execute that
document entitled "AMENDMENT NO. 2 TO INTERLOCAL COOPERATION ACT
AGREEMENT FOR ESTABLISHMENT OF SPOKANE COUNTY TOURISM PROMOTION
AREA" wherein Spokane County, City of Spokane and City of Spokane Valley will amend
Section No. 3 (Rate) of that interlocal agreement dated March 9, 2004 entitled "INTERLOCAL
COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF SPOKANE COUNTY
TOURISM PROMOTION AREA so that it is consistent with the new rates approved under
Ordinance No. 09 — 1D
PASSED AND ADOPTED this CV301tfa.y of ,2009.
BOARD OF COUNTY COMMISSIONERS
OF SPOKANE, COUNTY,WASHINGTON
ATTEST:
.rg cart- °
A: TODD MIE +.
Daniels Erickson / r
Clerk of the Boar+ .— com: y MA 11 RICHA. ;Vice-Chair
:p ""• _
;' ONNIE MAGER, Commi.sinner
• : a f.
10 fit • SEAL••"A-t-, •
'I" 41V h: co
Page 2 of 2
1
J TICE OF THE CITY CLERK
J SPOKANE i W SPOKANE FALLS BLVD.
limp-a. 4 SPOKANE,WASHINGTON 99201-3342
211111k (509) 625-6350
∎ >> ll ) l
) l)► > > 1 \ 1
August 26, 2009
CITY CLERK FILE NO:
OPR 2003-0982
County RES 09-0586
CITY of SPOKANE VALLEY
Attn: Chris Bainbridge, City Clerk
11707 East Sprague Avenue
Spokane, WA 99206
RE: Amendment No. 2 to Interlocal Cooperation Act Agreement for Establishment of
Spokane County Tourism Promotion Area.
The above referenced interlocal agreement was approved at the August 24, 2009
Administrative Session of the Spokane City Council.
Enclosed you will find three original agreements, please prepare for consideration by your
Commissioners and upon their approval and signatures, please send one original to my
attention as well as one original to the attention of Spokane County Clerk, Daniela
Erickson for our files.
Thank you, I look forward to the successful completion of this document.
Yours very truly,
14.
Shirley M Pippenger
Spokane City Clerk's Office
Enclosures
C: Teresa Brum — Economic Development
q��- /1/
A•S ht04.25.2008
AGENDA SHEET FOR COUNCIL MEETING OF: August 24,2009 c,T, G :
SCE , ?0
Submitting Dept. Contact Person/Phone No Council Spoh' ices
Economic Development Teresa Brum 625-6987 President Joe Shoe WF/cfrC
ADMINISTRATIVE SESSION LEGISLATIVE SESSION CITY PRIORITY 2019,4A 22#
• Contract o Emergency Ord o Communications CLERK'S FILE
o Report o Resolution X Economic Development RENEWS
o Claims o Final Reading Ord o Growth Management CROSS REF
o First Reading Ord o Human Services ENG
STANDING COMMITTEES o Special Consideration o Neighborhoods BID
(Date of Notification) o Hearing o Public Safety REQUISITION
o Finance o Public Safety _ o Quality Service Delivery Neighborhood/Commission/Committee Notified:
o Neighborhoods o Public Works o Racial Equity/Cultural Diversity
o Plannin•/Communit &Econ Dev o Rebuild/Maintain Infrastructure Action Taken:
AGENDA •
WORDING: Amendment No. 2 to Interlocal Cooperation Act Agreement for Establishment of Spokane County
(If contract,include Tourism Promotion Area.
the term.)
BACKGROUND: In February of 2004, Spokane County, with the concurrence of both the cities of Spokane and
(Attach additional Spokane Valley, enacted an ordinance creating a Tourism Promotion Area (TPA) encompassing the
sheet if necessary) unincorporated area of Spokane County and the two cities pursuant to Chapter 35.101 RCW. The
creation of the TPA was brought on by the submission of an initiating petition by the operators of
lodging businesses in Spokane County. The County and the cities of Spokane and Spokane Valley
subsequent entered into an interlocal agreement in March of 2004 regarding the operation of the
TPA. Section 3 of the TPA ordinance enacted by the County sets the special assessment rates to be
levied to fund the TPA program. The Spokane Hotel and Motel Association and the Spokane Hotel
and Motel Commission have both requested that the assessment rates be increased in Zones A, B
and C from $1.00, $1.25 and $1.50 respectively to $2.00 for each zone. The County has taken the
required action to adjust their ordinance accordingly. Amendment No. 2 of the Interlocal Agreement
will provide the required approval from the City and amend the agreement to match the County's
Ordinance.
w i
RECOMMENDATION: Fiscal Impact o N/A Budget Account: o N/A
o Expenditure: $
o Revenue: $
o Bud•et Neutral
ATTACHMENTS: Include in Packets:
On file for Review in Office of City Clerk:
SIGNATURES:
�/
`d. ., SAT .�� ; %. ■
De.- ent Hea. / / r ••. a irector Fina/• /
e I
V
�
Legal • For the Mayor Co nc I Presider /
DISTRIBUTION: County Commissioners
Lodging Tax Advisory
Committee
COUNCteABitik D BY
SVOKANE CI fY COUNCIL:
..� ,9
` c.t Jn-gCi grERK
Spokane City Clerk
P tY
1_
. SUBMI ED TO
TOURISM PROMOTION AREA OU�VCIL
BY a ,/
Gh
'GROWING THE ECONOMY IN SPOKANE COUNTY'
` •
This Project Enhanced 0 Enhanced By TPA Dollars �
41-2111Mtreinri I
March 23, 2009 ITY CLERK
County Commissioner Mielke
County Commissioner Richard
County Commissioner Mager
C/O Spokane County
1116 West Broadway
Spokane, WA. 99260
Dear County Commissioners,
Please be advised that the Spokane County Tourism Promotion(TPA)board voted unanimously in their
most recent board meeting on February 4, 2009 to increase the currently imposed TPA assessment fee on
an occupied hotel room(per room,per night) within Spokane County in the following manner pursuant to
SCC Section 7.66.030:
Zone A - Current assessment is $1.50. Request this be changed to$2.00
Zone B - Current assessment is $1.25. Request this be changed to $2.00
Zone C- Current assessment is $1.00. Request this be changed to $2.00
Zone E—Current Assessment is $0 (zero). No change requested
In addition please note that special assessments to be imposed on operators of those lodging businesses
with room revenues during the preceding calendar year, which did not exceed five hundred thousand
dollars, are as follows:
Zone D—Current assessment is .50 cents. No change requested
Zone E—Current Assessment is $0 (zero). No change requested
Under the current legislation the TPA may be raised,but not in excess of$2.00 per night, per stay.
We are also requesting that the County modify the current Interlocal Agreements with the City of
Spokane and the City of Spokane Valley. Each of these cities will be sent a copy of this letter along with
a request for their cooperation with the County on this important issue.
Enclosed please find a letter of support from the Spokane County Hotel/Motel Association who also voted
unanimously at their last board meeting on February 24, 2009 to support this change in fees.
a.
•
The Tourism Promotion Area (TPA)has been one of the most successful endeavors undertaken in our
community. It is a model of how private business along with the leadership of our local officials can
create a funding solution without affecting each communities"general fund".
Since its inception in the summer of 2004 the TPA has provided critical marketing funds to over 30
different organizations including the Spokane Regional CVB,the Spokane Regional Sports Commission,
Bloomsday, Valleyfest, Spokane County Fair and Expo Center,West Plains Chamber, the 100 Years of
the Motorcycle event and the 2007/2010 US Figure Skating Championships just to name a few.
The TPA has been a tool to enhance the efforts of many organizations in Spokane County to market and
sell the region. One of the keys to this success is the fact that lodging taxes have continued to be directed
to "heads in beds"types of programs, a foundation for tourism efforts. The TPA was never intended to be
a sole source of funding, it was developed to supplement marketing strategies and build a stronger ROI to
lodging tax grants. It is critical we continue this commitment.
Assuming the Board of County Commissioners concur and approve our requested changes, a public
hearing is required on the matter(RCW 35.101.060). The TPA administrative manager(which is the
Spokane Regional CVB) would compile a complete mailing list of all lodging establishments within
Spokane County and provide such list to the BOCC clerk. The clerk would then need to schedule a
hearing and then send out the notice.
We look forward to working with you on this exciting change. In these challenging times, our industry
looks forward to increasing visitor spending in Spokane County, which by its very nature, then
contributes to jobs, spending and increased taxes to the various general funds throughout our community.
Thank you for your leadership, please let us know if we can provide any other information to help this
process move forward.
Sincerely,
C9)//:
Liz Beck
TPA Commission Board Chair
Vice-President/General Manger, Super 8 Spokane Valley
Cc: City of Spokane
City of Spokane Valley
Spokane Hotel & Motel Association
Spokane Regional CVB,TPA Manager
ii,/i
iiiii
SpokGC,uL*le. f4L`tet
r■,1 cT f. t A s s o—cr i.CU t i O lA.
February 26, 2009 Sent Via Email
To whom it may concern:
On Tuesday, February 24, 2009, the Spokane Hotel Motel Association discussed the topic of
raising the Tourism Promotion Area assessment in all four zones and flat rating the amount at
the maximum $2.00 per room, per night. The discussion included answering questions from
the membership and addressed the need to continue the positive momentum that the TPA
has gained. The membership formally endorsed the motion made in November by the
Tourism Promotion Area Commissioners to increase the assessment as noted above by a
unanimous vote. We look forward to continued partnerships and the opportunities that this
increase will provide.
Regards,
Toni Hansen
Executive Director
C: Louise Barnett, Spokane Regional Convention &Visitors Bureau
Harry Sladich, Spokane Regional Convention &Visitors Bureau
Eric Sawyer, Spokane Regional Sports Commission
Liz Beck, TPA Commission Chair & President of the Spokane Hotel Motel Association
926 N szw .e.41, Utoly 1.4t, WA 11011 (SO)124-4713°P (SO )124-4? %1441 14 .sHMA @„ .. .