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2015, 10-13 minutes MINUTES Spokane Valley Lodging Tax Advisory Committee Tuesday, October 13, 2015, 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 Chelsie Taylor, Interim Finance Dir. Member Lee Cameron, Mirabeau Park Hotel Sarah Farr, Accounting Technician Member Peggy Doering, Valleyfest Chris Bainbridge, City Clerk Member Jeff Fiman, Sterling Hospitality/Quality Inn Member Chuck Stocker, HUB I. Call to Order Chair Wick called the meeting to order at 8:30 a.m. and explained the process for the meeting; said that each applicant will have ten minutes for their presentation, and after all presentations, committee members would work on individual scoring sheets, which will then be handed to Ms. Taylor and Ms. Farr, who will show the results up on the screen for discussion purposes, and to come to a consensus for Council consideration. Chair Wick also highlighted the Council Goals and Priorities for use of Lodging Tax Revenues. allocation, and explained about the proposed budget amendment; she also talked about the effects of HB 1253 and how it amended the application and selection process, as well as reporting requirements. Ms. Taylor explained that Council is now limited to either accept the recommended amounts of this committee, or reject the recommendations and decline to award specific proposals; that they could also accept some but not all proposals. Ms. Taylor mentioned that revenues are coming in higher than expected, but said that does not affect the dollar amount for these $560,000 funds. II. Applicant Presentations: 1. HUB Sports Center Mr. Phil Champlin, HUB Executive Director said that attendance has grown as have overnight stays; said he estimated that from 2010 to 2015, the HUB has had an economic impact from $1.5 to $6 million; he mentioned upcoming events and what they are planning for 2016; said their budget has increased but the 2. Spokane Valley Heritage Museum Museum Director Jayne Singleton, and Board Member and volunteer Carol Anderson explained that the Museum has been in existence now for eleven years; said they are one of the few year-round tourist attractions; mentioned that museums are one of the fastest growing segments of tourism; said the Museum was featured in the Alaska Air Magazine; that part of their process to increase tourism includes becoming a Smithsonian Affiliate Museum, which would permit borrowing actual artifacts; said they are producing a new rack card and plan to re-Anderson said they ask all visit 3. Spokane Valley Parks and Recreation Parks and Recreation Director Mike Stone, Recreation Coordinator Jennifer Papich, and Evergreen Volleyball Association Operations Manager/Regional Championship Director Lindsay Callaghan presented their information to the committee; they extended thanks for support in helping construct new courts, and said that today they seek funds for four new sand volleyball courts; said more LTAC Meeting Minutes October 13, 2015 Page 1 of 4 courts constructed at once allows for economy of scale; they gave some history of the park and how it became the vibrant park it is today; also mentioned the splash pad component which the City is supporting; said the usage of the courts is increasing with over 3,000 people; and from just observation it is clear the courts are highly used. Ms. Callaghan mentioned some of the upcoming events in 2016, and Mr. Stone stated that this has been a benchmark year and he is excited as what he sees encourages him that this will grow; and said the City is committed to complete this complex in as short a time as possible. 4. Spokane Sports Commission Spokane Sports Commission President Eric Sawyer explained that the Commission is a 501(C)(3) nonprofit economic and community development agency; that they are identifying events that they know are a match for our region and community; said sports tourism is growing extensively; mentioned places such as Plantes Ferry and the golf courses in Liberty Lake; said tennis events are also growing as well as lacrosse. In response to a question about how much space is needed for lacrosse, Mr. Sawyer said approximately 70 acres. Also in response to a question about the sportsplex, Mr. Sawyer said the consultants will give a presentation on their findings and current concept on October 22, then the Public Facilities District (PFD) will try to identify a funding mechanism; said they have identified a contractor for the design-built process so this is moving forward; and said they have an agreement with the Parks Department for the land. 5. Spokane County Interstate Fair and Expo Center Director Rich Hartzell and Marketing Sales Manager Erin Gurtel expressed thanks and said the exotic animal display was very successful; said this year they seek $100,000 for marketing the fair; said they have been able to divert some funds they use on their own budget, from marketing to entertainment to pursue better and different types of entertainment by about 5,000; said the carnival proceeds were up about 9% as was food, which grossed over $1.6 million for the ten-day period; said more people are coming and spending money. Ms. Gurtel said they have to enhance their marketing to re-direct funds to bring in more unique entertainment. Ms. Hartzell mentioned that their event generated over one-thousand room nights in the ten-day period; said people come from California, Idaho, Montana and Oregon; said the carnival has 160 employees, most of whom travel with them, and that they spent at least $85,000 in fuel, food, and supplies while they were here. Chair Wick called for a ten-minute break; the meeting reconvened at 10:05 a.m. 6. Valleyfest Board Members Stephanie Hughes and Ed Clark explained that Valleyfest includes over 200 volunteers as well as scores of sponsors, and they estimate over 35,000 will attend next year, and while here those people will eat, buy gasoline, and shop; said this annual free event includes over 200 booths from the region; and represents $2 million in annual economic impact; said they are requesting $40,000 for marketing to promote Valleyfest as a tourism destination. Lee Cameron said he agrees with everything about this festival except for the return on the investment, and said there is no generation of room nights; said he has been tracking Valleyfest at his hotel for fifteen years and ended up with only one room night at their property. Ms. Hughes mentioned that they are looking into having more events on Sunday, which she said should increase hotel stays; said they are volunteers and not high-paid executives and are asking for support; that the local businesses support them, and festival; said this City wants smaller government and they get it because the nonprofit puts on this festival; said money from their sponsors pays for such things as the port-a-potties, insurance and for building the entertainment stage. 7. Valleyfest Cycle Celebration Ms. Hughes and Mr. Clark explained how the cycle celebration started as part of the ten-year anniversary; said they seek $10,000 to market to the region; that next yeand all riders will start at the north Centennial trailhead; said they are contemplating a 100-mile ride as this event has LTAC Meeting Minutes October 13, 2015 Page 2 of 4 o the smoke in the area from all the fires; said that the entrance fee of $20.00 covers a tee-shirt, helps with insurance, security, and barricades. In response to a question about increasing the fee, Ms. Hughes said as they want to keep it inexpensive. 8. Spokane Valley Community and Economic Development Planners Mike Basinger and Gloria Mantz discussed the goal of making Spokane Valley a tourism destination; said the bottom line is that we have very few facilities that bring in tourism; that they are hearing from the citizens and business owners that there are not enough activities that bring in visitors or for locals; said they are working with Visit Spokane to develop a tourism brochure; said Spokane Valley does well for retail sales, but not tourism; and feels the community would support growth to meet the demand for more things such as accommodations, restaurants, performing arts, and spectator sports; said our City lags behind about 35% for tourism spending per capital as compared with Spokane County and Spokane City; she also explained the trade analysis and of the project to identify and invest in facilities or strategies to turn our city into a tourism destination; said their project has three phases: phase one will be funded by the City; and they are asking for funding for phase two, which is an evaluation of strategies that were developed in phase one, and performing an economic sensibility study to look at the market potential. 9. Visit Spokane President and CEO Cheryl Kilday explained that they are a regional organization; and they will promote tourism and visitor spending; said Visit Spokane to our area for the recreation and retail; said they support all the other applicants through the Visit Spokane bsite would be better; she also mentioned the maps and brochures and distributed copies to committee members. There were no further presentations. III and IV. LTAC Members Develop and Discuss Funding Recommendations Chair Wick reminded everyone that we have about $560,000 that can be awarded, as compared with the $946,327 requested. After sheets with the recommended allocations were handed to Ms. Taylor, Committee discussion included comments from Mr. Fiman that he looked at what would give a return on investment; said the City needs something to attract people and feels some of these proposals id there is nothing here of significance to bring people in; said he gets several rooms nights associated with the HUB activities, that he highly recommends the Sports Commission, and has no complaints about the Fair. Ms. Doering reminded everyone that the City is looking forward to having some kind of facility as per the additional tax; said that facility has not been determined and a study is a good strategy; said she wants to support entities within Spokane Valley, such as Parks and Recreation and Economic Development. Mr. Stocker said with his allocations, he tried to help agencies that were supported in the past, and said it would help if the City would match his support of Parks and Recreation; said he feels Valleyfest Cycle could be expanded and become a money maker; said he has wants to crank up their own tourism department, and he sees this as overlapping with Visit Spokane. Mr. Cameron stated t said these are difficult choices and his zero-dollar amounts for some entities have nothing to do with the rather new hotels; that it used to be about compression and getting the overflow from downtown Spokane, but and he would like to see opportunities for the HUB to expand; the Museum is largely available for visitors LTAC Meeting Minutes October 13, 2015 Page 3 of 4 who are here for family or other activities; that City Council has approved the volleyball court project but the funding is disappointing and he is not opposed to the splash pads, but would rather see the funds go to the courts; he stressed the importance of the Sports Commission; said he appreciates Ms. Doering and Valleyfest but it is not an economic driver for hotel rooms; that the cycle event participants are almost all re already significant future marketing benefits; and agreed our City has nothing of significance to generate room nights; he also mentioned that he hopes that CenterPlace would put in for their funding instead of just being handed $30,000. Chair Wick said there has been a lot of discussion about destinations, investments, and what to do moving forward, and said he feels the study will provide the data so we can determine how best to move forward; mentioned the positive aspects of Browns Park and the investments so far for the volleyball courts, as well rst courts. Mr. Cameron mentioned the idea of bringing in a part-time manager for Valleyfest, said many such festivals are self-funded whether by vendors, sponsorships, or otherwise; said this Committee has been granting seed As deliberations began t some agencies, and moving it to other agencies. After Committee members continued their discussion about the various possible allocation amounts, it was ultimately moved by Mr. Cameron, seconded and unanimously agreed, to recommend the following funding distribution to Council: The HUB: $40,000 Heritage Museum: $17,200 City of Spokane Valley Parks and Recreation: $60,650 Sports Commission: $121,600 Fair and Expo Center: $45,000 Valleyfest: $28,900 Valleyfest Cycle Celebration: $3,000 Spokane Valley Economic Development: $80,000 Visit Spokane: $163,650 TOTAL: $560,000 Chair Wick mentioned upcoming Council dates for this for next year. It was moved by Mr. Fiman, seconded and unanimously agreed to adjourn. The meeting adjourned at 12:30 p.m. Respectfully submitted, Chris Bainbridge, Spokane Valley City Clerk LTAC Meeting Minutes October 13, 2015 Page 4 of 4