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2018, 10-18 minutes MINUTES LODGING TAX ADVISORY COMMITTEE MEETING October 18, 2018 8:30 a.m. Spokane Valley City Hall Council Chambers 10210 East Sprague Avenue _____________________________________________________________________________________ Attendance: Lodging Tax Advisory Committee Members: Staff: Chair: Councilmember Sam Wood Chelsie Taylor, Finance Director Lee Cameron, Mirabeau Park Hotel Sarah Farr, Accounting Technician Colleen Heinselman, Hampton Inn Suites Cary Driskell, City Attorney Scott Peterson, Spokane County Fair Board Mike Stone, Parks & Rec Director Gregory Repetti, The Hub Tina Gregerson, Recreation Coordinator Chaz Bates, Economic Dev. Specialist Christine Bainbridge, City Clerk ------------------------------------------------------------------------------------------------------------------------------ Lodging Tax Advisory Committee (LTAC) Chair Wood called the meeting to order at 8:30 a.m. and welcomed everyone to the meeting. Finance Director Taylor then gave an overview of the materials included in the 2019 Lodging Tax Grant Funding Requests binder, which include a page for each committee member to provide their award recommendationding the lodging tax and which includes the City Council Goals and Priorities for use of lodging tax revenues; several financial sheets; 2018 Process leading to tentative 2019 awards calendar; minutes from the October 19, 2017, December 19, 2017, and August 21, 2018 committee meetings, and the Lodging Tax 2019 process leading to 2020 awards calendar; followed by eleven applications and supporting materials from agencies requesting funding. Ms. Taylor remarked that the revenues for 2018 are tracking to about $600,000, which amount is slightly higher than the previous year, and that it looks like the beginning of 2019 shows about $201,000; she mentioned we keep about 25% of that figure, or about $150,000 for 2018, to use for cash flow purposes. Director Taylor then asked the committee members to introduce themselves; which they did. It was noted all committee members were present. Chair Wood asked if there are any motions by the board at this time. It was moved by Mr. Cameron, seconded and unanimously agreed that $275,000 be deducted from the available LTAC funds in 2019, and moved into the 1.3% lodging tax fund account dedicated for a large sporting venue. Director Taylor noted that based on that motion, the new balance will be $350,000; and said that when the committee is ready, she will have the spreadsheet up on the screen with that updated figure. Presentations were then made as follows: 1. HUB Sports Center - $55,100: recruiting events to the facility; includes marketing and operations. Via his PowerPoint presentation, HUB Executive Director Mr. Phil Champlin explained a little about his 66,650 square foot facility, complete with five basketball courts and three studios; he mentioned some of the events that generate overnight stays including martial arts, basketball and volleyball; and included a graph showing the percentage of travel guests who travel to his facility within fifty miles in state, within fifty miles out of state, and greater than fifty miles in and out of state. As a point of interest, Mr. Cameron said he also serves on that board, but there is no conflict; said the hotel industry tracks uses of hotels and the HUB always generates a good deal of business for the valley, and Ms. Heinselman agreed. Mr. Repetti LTAC Minutes October 18, 2018 Page 1 of 6 asked about the matching funds mentioned in the materials, and Mr. Champlin explained that they are also applying for funds from Liberty Lake, and will use some of the HUB funds to support his proposal as well. 2. JAKT - $60,000 to continue to build the Crave three-day event. 4,000; said many people were not aware how wonderful CenterPlace is and he quoted some positive comments received from members of the public after attending this event. Mr. Cameron asked how much this came from, but the City provided $50,000 originally, and then $20,000 in City funds and $30,000 in lodging tax revenues; and said he is asking for $10,000 more this year. To clarify, Finance Director Taylor said the funding came out of the Economic Development Department Professional Services Fund. There was discussion about paid and unpaid accommodations and mention from Mr. Cameron that his hotel can track Crave attendance in his hotel. Mr. Stebbins noted the figures are speculative based on past attendance, and said it is difficult to get exact figures as not every hotel tracks with other major events in the area; that the first year the event was held in June which ended up being hampered by rain; adding that decisions need to be made now for next July; he said also not having shuttles added to making it a challenging event. Mr. Stebbins noted getting chefs here was expensive as is social media; and said he worked with a third party to assist in the production of videos. 3. JAKT- $15,000 new event Farmers Market to the one held in Liberty Lake and Kendall Yards; said he admits people would likely not come specifically market, but there is no other market in the area held on Friday nights; said he sees this as a community service, that getting the first one going s setting up and tearing down with Mr. Stebbins stating that the people who participate are apt at that as that is what they do; said there projection. The suggestion of having it perhaps in the field across from City Hall was mentioned but Mr. Stebbins said people like CenterPlace, they like the beauty of it and the waterfall; that the facility meets the spot. 4. JAKT- $20,000 Oktoberfest Mr. Stebbins said these funds will help in the infrastructure cost; that this event was held downtown two years ago, but was held at CenterPlace last year; said people who attended wanted an outside venue. The question came up about Mr. Stebbins compensation for these events and he said he is not being compensated; that this is an investment in Spokane Valley; that there needs to be events to fill out the calendar in Spokane Valley, and that he is in it for the long haul. 5. Spokane County Fair & Expo Center - $60,000 for Interim Events Fair Coordinator Ms. Jessie Lehman said working for the County Fair& Expo Center is like planning all year for a ten-year party for 200,000 of your closest friends; said their establishment includes 97 acres located in Spokane Valley and they have been at their current location since 1952; she mentioned they are an enterprise fund which means they have to work hard to keep the doors open as they are not tax supported; she mentioned the success they have seen in the past with the Fair as well as stand-alone events such as the RV Show, Good Guys, and the antique show. LTAC Minutes October 18, 2018 Page 2 of 6 6. Spokane County Parks, Recreation and Golf - $75,000 Plantes Ferry Sports Complex Renovation. Park Planner and Landscape Architect Mr. Kristopher Krohn introduced himself and noted that Mr. Joel Blockman is also in the audience should there be questions for him; he mentioned the project would convert two existing grass soccer fields into synthetic turf fields, add LED lighting, pursue parking improvements and irrigation system enhancements, and add safety netting where needed; said this project would be done in phases, and he showed some figures concerning the estimated economic impacts. Mr. Cameron asked about the total cost to complete the renovation and Mr. Krohn said the estimate is $10 million over five to ten years to finish all phases, but the requested funding would cover the 30% completion and put them in a position to be very competitive for grants; he said they have not set aside any money yet from the County. At 10:00 a.m. Chair Wood called for a ten-minute recess. The meeting reconvened at 10:12 a.m. 7. Spokane Sports Commission - $200,000 Support their sports development/marketing program. Spokane Sports Commission President Mr. Eric Sawyer explained that this is a request for continued funding to maximize competitiveness in the regional sports scene; said a minimum of ten tournament quality softball fields are needed which would put us into the national tournament category, especially if the fields have artificial turf and lights; said he encourages the City to partner with the County to make that a reality, and not do it in phases, but rather get it done now and all at once; said his organization is a 501c3; and mentioned that 27% of all travel today is sports related, and it was only the travel segment that grew even during the great recession. Mr. Sawyer said you build it and they will come happen without being promoted, marketed or maintained. He mentioned several venues that he said are specific to valley impacts, like the golf courses at Liberty Lake, the sports at Mt. Spokane, and Plantes Ferry Park; said this year they had 30,000 hotel stays in the valley, which he said they can track which resulted in about $26 million in direct spending; and that there are already 20,000 hotel stays set for 2019; said his organization does 65-70 events a year with a staff of nine; they work closely with all sports groups; and said our region is on its way to becoming an amateur sports venue; that people come here for the incentives and are looking for sports commissions to generate the service they need in order for those events to be successful. Mr. Repetti asked about his budget on page 8 and why Spokane Valley is so much larger than the City of Spokane, and Valley Does as those funds in Spokane are transferred to the PFD (Public Facilities District). 8. Spokane Valley Heritage Museum - $28,500 Two New Exhibits and Museum Brochures Museum Director Jayne Singleton mentioned the two new exhibits referred to are (1) A Heritage of Sports: th Baseball & Basketball; and (2) Man on the Moon, the 50 Anniversary of Apollo 11; said there has been significant growth of the museum over the years; and that cultural heritage tourism is the fastest growing segment of the tourism industry; said they are drawing tourists into Spokane Valley and that people want to come and see what the museum has; mentioned their sign-in sheet which clearly documents why people come to the museum; and said aside from these two exhibits, they are also working on a genealogy tourism segment; and she introduced Mr. Don Gorman, Museum Board Member. Mr. Gorham said he has been giving museum tours for fourteen years and has seen a lot of people from almost every state as well as other countries like Canada, Germany, Japan, and Russia; said people also want to see where their ancestor farm was and the museum directs them to that and has a map of the area; said at the end of the tour people usually want to know where there is a good place to eat that is close; and when they get people in who are staying at a hotel for a convention or other business, they generally ask what else is there to see and do here; and he mentioned that their Smithsonian display was particularly popular. Ms. Singleton stated that the museum has recently been mentioned in a noted travel publication as a place to visit; and said she looks forward to the committee members coming in to see the museum. 9. Valleyfest- $150,000 to Market and advertise throughout the Inland NW Region. Valleyfest Executive Director Ms. Peggy Doering, and Board Member Ms. Stephanie Hughes, thanked the committee for their support; said Valleyfest is funded through sponsorships, auctions, and grants like this; LTAC Minutes October 18, 2018 Page 3 of 6 that they are seeking funds to do marketing and advertising to a 500-mile radius, to include the west side of the state and elsewhere; said last year their $18,000 grant was used to market events through social Comprehensive Plan that states the City supports the arts, community events and relevant facilities; said they continue their growth and are part of the cultural identity of Spokane Valley; said over 10,000 people attend the parade and over 35,000 were at the event at CenterPlace including the events at Plantes Ferry Park; said the event included multiple booths and activities, and is free and open to the public and has a positive impact on our region. Ms. Hughes mentioned a new event this year was partnering with LiteFeet to bring a country swing dance competition; said they brought back the boat/bike/run triathlon; and she added that she and Ms. Doering are volunteers and they do this because of the love of the valley; adding all sponsors. Mr. Cameron asked about tracking room nights this year and Ms. Doering said those numbers in the materials reflect 2017 numbers and the 2018 numbers are not completely compiled. Mr. Cameron also remarked that all the hotels are sensitive to and aware of the need to track room nights, and others have his festival, and Ms. Heinselman added that her hotel does not get any draw for Valleyfest. Ms. Doering said they conducted an exit survey in order include all purposes of their visit as some come under corporate accounts. Mr. Cameron said Valleyfest is ideal for the community but not for tourism; and the dates could be a problem since many people are just coming back from summer trips and schools are just starting. Chair Wood said that tourism is very important but hotel nights are not the only thing he looks at; said we want to develop local events as they feed the local economy, and said Council supports those things as well; said this is a fantastic function, is well run, that his family attends several days each year, and the event warrants some support. Ms. Heinselman asked if Ms. Doering has applied elsewhere for grants and Ms. Doering said they have applied through the Washington State Arts Commission, and the Economic Development Department of the City; said that grants for marketing are more difficult to achieve but they usually get perhaps $40,000 a year, which includes this and the City, and which she said is included in the budget line items in the material. 10. Valleyfest Cycle Celebration - $25,000 for Marketing Spokane Valley as a destination to cyclists Ms. Doering went over the project summary and history of the event, and in responding to comments about generated room nights, said in 2017 they had about 25-30 hotel nights from out of the area; said they advertised in a state-wide publication, and the goal is to attract a regional audience to stay the weekend of the event; and with the help of local bike shops, advertising will be distributed through the bike trade shows and the bike swap, as well as local advertising. Chair Wood asked about the competition in the race and Ms. Doering explained that this is a ride, and not a race; they try to make it like a big party, with beer and pizza a nice to see it partner with other events; that he imagines it would be challenging for people to travel just for a bike ride. Ms. Doering said they also give their information to Silverwood as people travel on the I90, and she places flyers with other events as well. 11. Visit Spokane - $200,000 Tourism Marketing Program for the City of Spokane Valley. Visit Spokane Interim President and CEO Mr. T.J. Hake, Director of Sales Ms. Ruth Fitzgerald, and Director of Marketing Mr. Jamie Rand went over their projects and promotions which included among others, new City of Spokane Valley brochure and map, and new video; said they are a regional organization and they market the entire county; said the funds they seek are specific to Spokane Valley and most if not all align with the strategies developed by CAI (Community Attributes, Inc.) and which are incorporated in Spokane VallMr. Hake said they support Crave, Valleyfest, and many other events and they send people to hotels, which has resulted in over 90,000 room nights for approximately 40 groups, which also generated over $43 million in shopping, retail, restaurants, golf, etc.; he said that LTAC Minutes October 18, 2018 Page 4 of 6 course, golfers like to stay in Spokane Valley because it is a and mentioned the Liberty Lake map included in the packet materials. After some brief discussion about room generations, Mr. Repetti disclosed that he is a Visit Spokane Board Member, but that he does not see that as a conflict; and he asked why are these other organizations seeking funding when Visit Spokane is supposed to be the organization that does that. Mr. Hake explained that each organization needs a marketing plan, and that Visit Spokane partners with them and will continue to do so. At 11:30 a.m., Ms. Taylor asked each committee member to complete their allocation form, to place their name on the form, that the figures should add up to $350,000; and once complete, to hand those back to her; and she asked that there please be no discussion until the meeting is reconvened. Chair Wood called for a ten-minute break. The meeting reconvened at 11:41 a.m. at which time Mr. Cameron made a last minute change in his recommended allocation. Ms. Taylor said she will enter the figures on the spreadsheet, and committee members may make changes if they desire. Each committee member then gave a brief explanation of their allocations. Mr. Cameron explained that in light of the presentation regarding Spokane County parks allocation, that he wanted to preface his comment that because they indicated the funds would barely cover the topography, map and some of the other pieces, said another source to make up the difference; said he feels we can meet at the pleasure of the Council as often be just once a year; he said he has served on three or four tax advisory committees and Mason County and others have met based on need; s wondering Clerk Bainbridge politely interrupted with a question for City Attorney Driskell. She explained that it is her understanding that since this committee does not have a regular meeting schedule, when it meets it is motion on the agenda, is it permissible to make such a motion. City Attorney Driskell said that for a motion of that nature which is completely different from anything advertised, that he would be concerned that such motion would be beyond the scope of what was advertised; but if this committee wanted to consider that in the future, or Council wanted to consider that in the future, that could be a topic of discussion; and that the motion earlier in the meeting related to the allocations, but this would be a separate issue, about coming up with an alternative schedule, and that this should be a discussion for another day, with proper notice. Mr. Cameron said he would make his recommendation to the Council as it would probably be more appropriate that it come from the Council; and said he would recommend to the Council, and hopefully the other committee members would agree, that if its determined with further study that $35,000 will be given hate to see the City of Spokane V a motion to withhold the $35,000 and put it back in the bank, if they c $35,000 as they have no additional money to complete the project, assuming that is the final award the Council would determine, that once awards are finalized, staff goes through with the applicants and get spend it, we would never give it to them. Mr. Cameron said his concern is that they could spend the $35,000, but it get what Taylor said if they were to say that, and she mentioned we have had applicants in the past turn down contracts after the awards have been made, for the reason that LTAC Minutes October 18, 2018 Page 5 of 6 project as noted in their application, and they declined the contract and the money stayed in our fund which then goes into those reserve fund balances that would be considered for allocation in the next award cycle. It was then moved by Lee Cameron and seconded to accept the funding averages as shown in the amounts recommended column. Mr. Repetti said he shares Mr. ne County Parks, said this committee is allocating funds that he would strongly suggest need to be matched to get to the required amount, by other this committee to have that conversation with Council, and acknowledged legally, but said no one on this committee is comfortable with just throwing that $35,000 to getting something half way; said he is strongly in favor of moving forward on the design, he just wants others to be part of the funding source; and said he e Parks Commission not accepting the contract, but part of the contract needs to be that they have attained enough funding to get to the point where they described in their submission; and said he is unsure how to vote on this without that caveat on the money amount. City Attorney Driskell said that is something that would be communicated from staff to Council; and perhaps given this commitment by the LTAC, that Spokane County would look at that and recognize that if Spokane Valley is making an investment, they can come up with the rest of the money, which he said is of course, unknown at this point, and hopefully we will get more clarity on that and hopefully that will be part of the consideration of Spokane County as to whether they accept. Ms. Taylor also noted that the minutes from this meeting will be provided to Council when she gives her presentation to them on this of the funds, then would that $35,000 come back to this committee; and Ms. Taylor said unless we have another award cycle where we open the process again to applicants, those funds would go back to the fund Vote by a show of hands on the motion to accept the funding averages as shown in the amounts recommended column: In favor: Unanimous. Opposed: None. Motion carried. \[Those amounts recommended include: (1) The Hub $52,000; (2) JAKT-Crave $21,500; (3) JAKT Farmers Market $7,000; (4) JAKT Oktoberfest $5,000; (5) Spokane County Fair & Expo Center $55,000; (6) Spokane County Parks, Rec & Golf $35,000; (7) Spokane Sports Commission $108,000; (8) Spokane Valley Heritage Museum $5,500; (9) Valleyfest $12,000; (10) Valleyfest Cycle Celebration $1,000; and (11) Visit Spokane $48,000. Grand Total: $350,000\] It was moved by Mr. Repetti, seconded and unanimously agreed to adjourn. The meeting adjourned at 12:14 p.m. Respectfully submitted, Chris Bainbridge, City Clerk LTAC Minutes October 18, 2018 Page 6 of 6