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2014, 10-27 minutes MINUTES Spokane ValleyLodging Tax Advisory Committee Monday, October 27, 2014, 8:30 a.m. Spokane Valley Council Chambers 11707 E. Sprague Avenue, Spokane Valley, Wa. 99206 _____________________________________________________________________ __ Attendance: Lodging Tax Advisory Committee Members: Staff: Chair: Councilmember Ben Wick Mark Calhoun, Deputy City Manager Member Herman Meier, Spokane Valley Heritage Museum Erik Lamb, Deputy City Attorney Member Keith Backsen, Visit Spokane Sarah Farr, Accounting Technician Member Jeff Fiman, Sterling Hospitality/Quality Inn Carrie Koudelka, Deputy City Clerk Member Lee Cameron, Mirabeau Park Hotel Chris Bainbridge, City Clerk ------------------------------------------------------------------------------------------------------------------------------- \[Prior to the meeting, Deputy City Attorney Erik Lamb gave the committee members a training session on the Open Public Meeting Act.\] At 8:30 a.m., the meeting was called to order by Lodging Tax Advisory Committee Chair and City Councilmember Ben Wick who then welcomed everyone to the meeting. Chair Wick explained the He also made note of the new spreadsheets containing blank areas for the committee recommendations. Chair Wick went over the City Council goals, which he explained remain much the same as the previous year, with the added goal to dedicate 5% of the awards toward funding new projects, activities and/or events. Chair Wick also noted as in previous years, Council chose to set aside $30,000 for CenterPlace Marketing. Deputy City Manager Calhoun briefly went over the financial aspects of the lodging tax resources and ; and said he anticipates total awards of $600,000, which includes the $30,000 to CenterPlace; and that once completed, approximately $100,000 will remain which will be needed for cash flow purposes. Mr. Monday, November 17 Council meeting, followed by an actual motion for award scheduled for the tentative date for Applicant Presentations 1. Visit Spokane: City of Spokane Valley Tourism Promotion; Tourism Marketing Visit Spokane CEO Cheryl Kilday and Chief Marketing Officer Jeanna Hofmeister gave their presentation on their tourism marketing project. Ms. Kilday explained that Visit Spokane directly contacted and/or influenced people to stay and visit the City of Spokane Valley, and based on research, they estimated there were 220,681 overnight stay with over $155,000,000 in visitor spending; she mentioned the specific Valley map, online advertising for events, advertising in the , and mobile app. After her presentation, there were a few questions from committee members about the project budget, and how they arrived at the 220,000 overnight stays. Ms. Kilday responded that some of the budget includes personnel for the visitor kiosk at the Valley mall, which she said in only staffed from Memorial Day to Labor Day. Concerning the overnight stay estimate, Ms. Kilday said they used a formula which included research from the Randall Report, and from Smith-Travels research about room demand; she said the formula was tested with Judy Randall to make sure it was credible and not over-estimating. Ms. Kilday said there is a possibility that -counting. LTAC Meeting Minutes of October 27, 2014 Page 1 of 6 2. Visit Spokane: New Visitor Information Center, Operated by Visit Spokane Ms. Kilday explained that this proposal is to establish a visitor information center in Spokane Valley; said she has been working with a private company for a space; said the idea is to be open 360+ days a year, with a goal of getting people off the freeway and into our area; said they found a location where businesses are not yet built; said the area they have in mind has ample parking, space for good signage, and could connect with the services of the Valley Mall as well as the Argonne area. She also mentioned they plan to keep the kiosk at the Valley Mall. understand why someone would leave the freeway to go t freeway about food, attractions, etc., and Smart Phones with numerous capabilities. Ms. Kilday responded that that concept has been a topic of debate since the Internet became more mobile; but it appears that "Generation X" and "Generation Y/Millennium" actually frequent visitor centers more so than previous older generations; she said it gives people the opportunity to get off the freeway as the center introduces people to what is nearby, which increases overnight. In response to a question about funding, Ms. Kilday replied that this request is only for a portion of a year. 3. Spokane Valley Parks and Recreation Browns Park Spokane Valley Parks and Recreation Director Mike Stone and Recreation Coordinator Jennifer Papich, and Mr. Kyle Twohig of the Evergreen Volleyball Association discussed the Browns Park volleyball courts project. Ms. Papich explained that their $120,000 request is for the construction of three volleyball sand courts, she gave some history of how this proposal came about, of their desire to breathe some life back into the facility and make it more of a destination, of their partnering with Evergreen Regional Volleyball Association, and of how quickly it became apparent that the sport is extremely popular and gaining in popularity. Ms. Papich spoke about the Master Plan and some of the key issues which came up as a result of that plan, such as an overall goal to increase the facilities as well as community pride and identity; she explained that the City has funding to construct five courts, and the more courts that could be constructed at one time means the less the overall time and construction cost; she said this should be able to be completed in 2015; adding that the closest other outdoor sand volleyball court is about 300 miles away; and said their goal is to make this a premier volleyball court. Mr. Twohig said that he has been amazed at the growth seen in the volleyball participation; said they held some tournaments which were filled within a week, so they increased the offerings for the following season; said there were over 3500 junior volleyball players in this region compared with about twelve in 2013; said they have invested about $20,000 and will continue to show their commitment by providing equipment and handling the operations; said they have a wonderful partnership and relationship with the City and the community. infrastructure is included in this proposal. Mr. Stone explained that the courts will be tournament ready, but some aspects of the infrastructure such as the picnic shelter and restroom will not be ready when the courts are, as the focus is the courts; said the cost this fall of just the courts was in excess of $60,000, and that he feels $40,000 is an accurate figure; and said the City and Council are committed to this project, but it will take several years to build this with all the improvements; that if this project moves forward, he expects the community will support it as well and that we will see some sponsorships; said this will be a quality facility to attract out of state visitors. 4. Spokane Valley Parks and Recreation CenterPlace Customer Relations/Facility Coordinator Carol Carter said they seek funding to target regional meetings to be held in Spokane Valley; said they are partnering with Visit Spokane to market to the two leading meeting planner associations in the region, i.e. Meeting Planners International, and the Certified Meeting Planner Association; said they would co-sponsor a booth at six regional conferences and advertise in meeting planner publications with a goal to increase CenterPlace's presence as well as other Spokane Valley tourism related facilities; she said in their meeting with Visit Spokane, they found five conferences in the Inland Northwest that they think are beneficial for Spokane; said they are targeting the two to three- LTAC Meeting Minutes of October 27, 2014 Page 2 of 6 day conferences, they'll work with the Valley hotels and Visit Spokane to find ways to sell the Valley; said they need to work harder to market the Valley especially with the expansion of the new hotel downtown; said their goal is five conferences, but explained that these would not come in until 2016 because it takes a year to plan a conference. Mr. Stone added that this partnership with Visit Spokane is the two entities working to market the valley. Chair Wick asked if this is more for the Spokane Valley than a CenterPlace request, and Ms. Carter confirmed it is; and confirmed that the funds are intended to attend the events with Visit Spokane, and to have shared booth and promotional items for Spokane Valley, which includes trade booths. 5. Spokane County Fair and Expo Center 2015 Spokane County Interstate Fair Marketing Campaign Fair Director Rich Hartzell and Marketing Sales Manager Erin Gurtel explained they are presenting three requests: the first request is for $30,000 to market and advertise to an audience outside of the Spokane area in order to increase attendees that will reserve over-night stays in conjunction with fair attendance. 6. Spokane County Fair and Expo Center Interim Events Marketing 2015 Ms. Gurtel said that the Fair's second request is for $8,000 to market and advertise to an audience outside the Spokane area, for rentals and annual events held at the fair facility. 7. Spokane County Fair and Expo Center Exotic Animal Display, 2015 Interstate Fair Ms. Gurtel explained that the Fair's third request is for $6,000 for marketing and operations of a special event, the Exotic Animal Display. Concerning the $30,000 for advertising and marketing, it was noted that from the previous year, Fair attendance, food purchases, and carnival all increased about 1%, 10%, and 12% respectively; said they are confident they could sell 1,000 room nights over the week with visitors generally coming in from Canada, Seattle, and thirteen states. In response to Chair Wick's question about how the numbers were calculated, Ms. Gurtel explained that the figures are difficult to calculate, and they are working to get a better process, but still feels the numbers are conservative; she explained that people come to the fair for more than just the shows, that many people shop while here and said the fair is located in a central hub for shopping; she said activities at the fairgrounds include Custer's, and an RV and Boat Show, and she mentioned that the Farm Chicks brought in 1,000 room nights for people attending that two-day event. Mr. Hartzell added that the Quilt Show is also one of their largest attended events. A question arose about advertising, and it was explained that the vendors pay for their own advertising; and Ms. Gurtel said that this funding is for promotion aside from what the vendors do; with Mr. Hartzell adding that the vendors can see an increase, however, when they advertise and promote. Concerning the $6,000 for the Exotic Animal Display, it was explained that funding would be for all ten days of the fair, and would be included with the fair admission as an enhancement. Mr. Fiman asked of the total $44,000 requested funding, how much tourism do they expect from people out of town; and the response was that they anticipate 50,000 people from out of town; stating that the amount requested is for the year and not just one event; and that the hope is that the exotic animals could be expanded later and further promoted. 8. Valleyfest Valleyfest 2015 Executive Director Peggy Doering, Board President Rick Wilhite, and Board Member Stephanie Hughes gave a presentation concerning next year's Valleyfest celebration. Ms. Doering reported that they used the $20,000 allocated in 2014 for the webpage and made the advertising sized for tablets, iPad, and that they used the funds for design purposes as well; said her understanding is they can apply for funding for operations, and that this year they are applying for $14,000 for office expenses in addition to $50,000 for marketing; said they are a non-profit organization; said their rental agreement for the rented space they use with Spokane Valley Partners has changed, and they are in the process of looking for office space; so part of that request is for outside office space in addition to paying outside vendors that they need to run their recreational events; and she reiterated that the $50,000 is for marketing the premier event in Spokane Valley, which she added, they have been doing for twenty-five years; and said since they have added the cycle celebration in July, that funding would be used for year-round marketing. LTAC Meeting Minutes of October 27, 2014 Page 3 of 6 Ms. Doering mentioned they have26 committees for partnerships for Valleyfest, some of which include the Balloons Over the Valley, the Down Syndrome Walk, the Car Show, and they are now working with the River Keepers. She said the cycle celebration includes a family bike ride, triathlon, and other recreational activities. Concerning economic development, she mentioned the study of three years of data conducted by Eastern Washington University students, which shows an approximate $2 million impact in 2013. Mr. Wilhite added that the studies of the last two years indicate that the overall economic impact is $1.8 million in the Valley for their three-day event. They indicated marketing plans are contingent upon receiving funds, that they would like to have more of a year-round presence to draw interest groups to specific events, with Ms. Hughes mentioning that the sponsors are a big part of the event, and many are leaders in the community including banks, hospitals, the Inlander, and other businesses. They also noted they want to change how they promote the event by using the assets of the City such as the River, their Parade, trails, and hotels and are examining the use of social media in addition to television advertising. In response to several questions about marketing, Ms. Doering said the data shown on page 6 of 20 of their packet materials is as a result of Eastern Washington University's School of Business students' calculations, by interviewing people during the event, and using the formula noted. Ms. Doering also mentioned that they pay outside vendor fees to develop the events, and then those companies continue to market at trade shows and will eventually become self-sufficient. 9. Spokane Regional Sports Commission- Promotion and Marketing Activities Sports Commission President Eric Sawyer went over some of the trends in sports travel; said that there has been an increase in the number of participants 13 years old and younger; and that over 50% of youth participate in sports as a team or an individual; said the projection of sports related travel spending is up 12 to 15%; that they tried to identify projects which have had an impact on Valley room nights, and said approximately 12,000 room nights are due to a major recent tennis event; he mentioned next year's US Tennis Association's regionals, and other sports such as mountain skiing and biking, golf, and middle school basketball and volleyball. In response to a question about the Sports Commission investing in sand volleyball, Mr. Sawyer said they are working with Evergreen Regional Volleyball and that organization has seen significant growth; said that a one-time capital investment will hopefully last for generations; and he mentioned the participation as well from Eastern Washington University students; and regarding tennis, said that Spokane Valley has more than half of those qualifying needed courts because some of Spokane's courts do not qualify. The meeting briefly recessed at 10:05 a.m., and reconvened at 10:15 a.m. 10. Spokane River Forum Spokane River Water Trail Project Mr. Andy Dunau explained that the Spokane River Forum was founded in 2008, and in 2009 they decided to develop the Spokane River Water Trail; and that this project will build on that highly successful website by providing links for tourists and to aid in their overnight stays; said they developed a new Stateline site in 2014 which has resulted in the restoration of Mirabeau and Barker Road; said the Barker Bridge is very popular and in 2016, the Valley will develop a new Sullivan Park access site as part of the City's rebuilding Sullivan Bridge, and they expect access under the Bridge for kayakers; he said outdoor monthly advertising is another component of their marketing and that they also use Visit Spokane; said they seek $1,000 to get this project started, which will be matched by three to four times that with other sponsors they already have; he said the plan is to have the kick-off event in May or June. In response to questions about sponsors, Mr. Dunau said they generally get $500 from each sponsor, and that they have approximately six to eight benefactors, as well as larger sponsors. 11. Spokane Valley Heritage Museum- Tourism Marketing Museum Director Jayne Singleton and Board Member Bill Crawford stated that the museum has served tourists for ten years; that their advertising and promotion of the museum's 2015 features includes the "Earth from Space" travelling Smithsonian Exhibit; said they provide education to the community LTAC Meeting Minutes of October 27, 2014 Page 4 of 6 through group and school tours. In response to a question about visitor data, Ms. Singleton said that the 2013 figures are actual numbers; while the 2015 is of course a projection. 12. HUB Sports Center Mr. Phil Champlin, HUB Executive Director said that their events have demonstrated a positive impact on the community; he said that 75 to 80 % of the events are youth travelling with parents, siblings, and family members so the draw is larger than if it were simply adult events; he said they have partnered with AAU, YMCA, and Evergreen Regional Volleyball to bring in events; that they hosted their first middle school basketball event in 2014 with over 250 teams, and plan to expand that in 2015 to two weekends, one for girls, and one for boys. Mr. Backsen asked about the estimated overnights stays out of the 21,000 visitor count, and Mr. Champlin said they estimated 5,000 overnight stays. Chair Wick noted that most of the money they are asking for is the marketing, but the material includes information for operations, and Mr. Champlin explained that he would give discounts to groups to start their event and use operation funding for that purpose. There were no further presentations. Mr. Cameron gave an update from the Hotel/Motel meeting last Friday; said a majority of the Valley hotels were concerned; said that the Valley has traditionally benefitted from an overflow from downtown Spokane and Coeur d'Alene; but additional rooms in the Coeur d'Alene hotel and Airway Heights brings challenges to hotel stays in the Valley; said the Convention Center expansion will bring even more stays to downtown Spokane; said the recommendations were unanimous regarding funding requests and that not every request will be funded; said the intent is to hold back some funding and examine what can drive new business to Spokane Valley and how the hotel/motel tax funds will be used; said there was concern about the downturn next year and they are thinking of meeting with Council to expand venues in the Valley that draw tourism. Mr. Fiman added that it appears there was little or no increase in revenues and the question is, what can be created to bring in large revenues to benefit the community. Mr. Meier noted that there is a new hotel in the Valley which would not have come if they didn't think they would be profitable; said not everyone who comes in does so in connection with an event; said he feels 2014 will be one of the biggest growth years and doesn't think funds should be held back while they contemplate a long-term vision. Mr. Cameron said the data shows an increase but that it is primarily due to room rate increases and not an increase in occupancy; he said the hotels are looking for development potential. Mr. Fiman mentioned that they need to look at what types of events will bring revenue to Spokane Valley, and that the HUB Sports Center's events bring tourism, but we keep doing the same thing and that isn't generating new revenue, but if it weren't for the HUB events, he feels Valley hotels would not be financially stable. Mr. Calhoun reminded the committee that today's meeting is informational, and based on that information, the Committee needs to forward a motion and a vote. Visit Spokane said it would withdraw their second item because it can't operate for that amount so those funds could be reallocated. Mr. Cameron noted that funds going to Visit Spokane are also for marketing other events, so it might be seen as a "double-dip;" said he thinks Visit Spokane promotes the Valley, and that sports events bring in tourism and funding, and Mr. Fiman concurred. Mr. Meier also agreed Visit Spokane does a good job; and said he supports Valleyfest as part of the City's mission to fund festivals. Chair Wick noted the need and demand for the volleyball courts; said the CenterPlace request was for marketing the Valley at events, not CenterPlace; that Valleyfest isn't just funding for that event, but they now have the triathlon and other recreational events that can grow and perhaps start something new; he said improvements are being made along the River with road projects, but they need to be marketed. Discussion moved to the individual funding requests. Mr. Cameron said he understands that the City approves the funding of the Parks & Recreation Master Plan; that the $30,000 CenterPlace already receives is for marketing CenterPlace, and now they are asking for another $30,000 for the same purpose; but said this is what we pay Visit Spokane to do and that's what they are doing. Further, Mr. Cameron LTAC Meeting Minutes of October 27, 2014 Page 5 of 6 said seating will be needed for the volleyball tournament games , as well as restrooms, locker rooms, and office space. Mr. Backsen stated that he thinks putting in courts to hold tournaments is more for the local community rather than bringing in people from out of town, and Mr. Cameron said the hoteliers agree. Mr. Cameron said the hoteliers proposed not to fund the museum, but he would go up to $15,000 and said his concern is it puts his return on investment at over $100 per night so it costs more than there is to gain. Concerning Valleyfest, Chair Wick said he sees opportunities with the bicycle celebration and triathlon; while Mr. Meier said the committee needs to keep in mind that Council doesn't want money to be used solely for room nights, but to include festivals and Valleyfest. Mr. Cameron stated that the hoteliers are against funding Valleyfest because they think it should be self-sufficient; and Mr. Fiman said the event does not bring in room nights yet they are funded each year; and both Mr. Cameron and Mr. Fiman said based on their meetings with hoteliers, they will not support funding Valleyfest. Chair Wick said that he doesn't think Council would accept not funding Valleyfest and that he would like to fund it at $20,000. After Committee members continued their discussion about the various amounts for the various entities, it was moved by Mr. Cameron, seconded and unanimously agreed, to recommend the following funding distribution to Council: 1. Visit Spokane $256,000 2. Visit Spokane Visitor Center $0 3. City Parks & Recreation Browns Park $0 4. City Parks & Recreation CenterPlace $15,000 5. Fair & Expo Marketing $28,000 6. Fair & Expo Interim Marketing $8,000 7. Fair & Expo Exotic Animals $2,000 8. Valleyfest marketing $10,000 Valleyfest bike celebration $10,000 9. Sports Commission $185,000 10. River Forum $1,000 11. Heritage Museum $15,000 12. HUB Sports Center $40,000 TOTAL RECOMMENDED FUNDING $570,000 Mr. Calhoun noted that this topic will be presented to Council as an administrative report at the November 17 meeting, and then come back to Council for a motion consideration at the December 16 meeting, at which time the public will be permitted to make comment. There being no further business, it was moved by Mr. Cameron, seconded and unanimously agreed to adjourn. The meeting adjourned at 1:12 p.m. Respectfully submitted, Carrie Koudelka, Deputy City Clerk Chris Bainbridge, City Clerk LTAC Meeting Minutes of October 27, 2014 Page 6 of 6