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2019, 10-17 minutes MINUTES LODGING TAX ADVISORY COMMITTEE MEETING October 17, 2019 8:00 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 Erik Lamb, Deputy City Attorney Wayne Brokaw, Spokane County Fair Board Mike Stone, Parks & Recreation Director Gregory Repetti, The HUB Tina Gregerson, Recreation Coordinator Christine Bainbridge, City Clerk ------------------------------------------------------------------------------------------------------------------------------ Chair Wood called the meeting to order at 8:00 a.m. and welcomed everyone, after which there were self- introductions. Deputy City Attorney Lamb then went through his Open Public Government PowerPoint training for Committee members and he explained various portions of the Public Records Act, and the Open Public Meetings Act. At the conclusion of the training at 8:22 a.m., Chair Wood called for a recess. Chair Wood reconvened the meeting at 8:30 a.m. and as there were new people in the room, committee members went through re-introductions. The floor was then turned over to Finance Director Taylor. Ms. Taylor briefly explained the history and background of Lodging Tax, the materials in the agenda packet, and the process for allocating funds; she noted that for this session, we have more money available to award then what was requested by applicants, but stressed that no applicant shall receive more funds then they requested, although they can get less; she also noted there is a set aside amount of $30,000 for CenterPlace to partially offset advertising and this is historic and is permitted; said subtracting the $30,000 leaves $795,000 available for funding; and she went over the fund including the end balances and the calendar showing the process leading to the award allocation, currently scheduled for the December 10, 2019 Council meeting. Presentations were made as follows: 1. HUB Sports Center Mr. Phil Champlin Mr. Champlin seeks $55,100 for recruiting events to the facility. 2. JAKT, CRAVE Mr. Tom Stebbins Mr. Stebbins seeks $38,000 to assist infrastructure costs of conducting the event and a social media team effort that includes photography and video assets and PR outreach in Seattle, Washington and Bend, Oregon. Chair Wood asked Mr. Stebbins if he believes this event will become self-sufficient or will always need to be subsidized by LTAC funds. Mr. Stebbins replied that he would prefer not to be here seeking funds; said ticket sales are a huge part of this event and that he is heading into year four, and feels year six will be questionabledifficult to predict, adding that his numbers are transparent; said they are still running at a $20,000 deficit and hope to be able next year to pay staff a little; said it is good for Spokane Valley to have this committed group and that otherwise the event -sufficient for at least two to three more years. 3. JAKT, Farmers Market Mr. Tom Stebbins Mr. Stebbins seeks $18,000 to execute and follow their vision and mission statement by continuing the Farmers Market at CenterPlace. Mr. Cameron asked how attendance is tracked and Mr. Stebbins explained LTAC Minutes October 17, 2019 Page 1 of 3 that he walks the market every hour and does a clicker count. Mr. Cameron also asked about the status of those funds cannot be used for salary. Mr. Repetti thanked Mr. Stebbins for the positive experience and said he thinks the challenge is how to make the market better; how to get the local business community involved and said it is critical that the Chamber assists as increased exposure would be useful; he also said the HUB sponsored the event. Mr. Stebbins said he and the Chamber have been working together very closely to expand the exposure. 4. JAKT, Oktoberfest Mr. Tom Stebbins Mr. Stebbins seeks $20,000 to assist in the infrastructure costs of conducting the event and ensure the financial success and continuation of the event in Spokane Valley. 5. Northwest Winterfest Mr. Sam Song, Ms. Charity Doyl Mr. Song seeks $50,000 to create an annual premier winter festival at Mirabeau Meadows Parks starting with the winter of 2020. Mr. Cameron stated that is the chair of their steering committee. Mr. Repetti asked about parking and Mr. Song replied they can work with the businesses if needed to get a couple thousand parking stalls, and said he does not anticipate conflicts; that he will also work with the Spokane Valley Mall and STA for possible shuttle service. Mr. Cameron said this will dovetail on the shopping and hopefully they will be able to draw from a large area for this event, as there is not much competition of this magnitude. 6. Spokane County Fair and Expo Center Ms. Erin Gurtel and Rachelle Buchanan Ms. Gurtel seeks $75,000 to market and advertise the Spokane County interstate fair and interim events to an audience in the Spokane area and beyond. Chair Wood asked if the committee would like to take a break or continue, and the decision was to continue. 7. Spokane Sports Commission Jodi Kayler, Vice President of Marketing & Communications Ms. Kayler seeks $50,000 to support sports tourism efforts by the Spokane Sports Commission in 2020. Mr. Repetti said he represents the HUB and he asked what plans are there to include the HUB. Ms. Kayler replied that the HUB is very important to the community and that they will continue to fill the HUB with appropriate events that fit; said what they are looking at is national and international events, and said the pe of large venue. 8. Valleyfest Peggy Doering, Stephanie Hughes Ms. Doering seeks $150,000 to assist with marketing and advertising their event to the Inland Northwest Region which includes North Idaho, Western Montana, and Eastern Washington. There was some discussion between Mr. Cameron and Ms. Doering concerning Valleyfest generating room nights with Mr. Cameron stating that while he supports the event, he also feels they should be self-supporting. Ms. Doering said they do not track the hotels but they do conduct an exit survey and ask if people have travelled more than 50 miles; said she is aware that people stay with relatives, and/or stay in hotels downtown, as well as in Post Falls and other areas. 9. Cycle Celebration - Peggy Doering, Stephanie Hughes Ms. Doering seeks $25,000 to assist in attracting a regional audience to visit and stay in Spokane Valley the weekend of July 26, 2020 for the Cycle Celebration; including exploring the idea of having a bike ride map to increase cycling in the valley. Mr. Brokaw asked if this event were brought in with Valleyfest, would it make Valleyfest bigger. Ms. Hughes replied that she is not sure; said they have a committed cycle celebration volunteer core group and are here asking on their behalf; said the cycle celebration is a very successful event, a it if its not broken. Mr. Brokaw asked how many riders are from outside the area, and Ms. Hughes said about 20% are from out of town, with Ms. Doering adding LTAC Minutes October 17, 2019 Page 2 of 3 that the projected 20 room nights is a conservative estimate. Ms. Doering also noted that most riders participate in the 50-mile bike ride, and to add another large event, would require more volunteers; she said the cost to enter is $29 and includes lunch; and noted that it is a ride and not a race. Ms. Hughes said some of the ride is on the Centennial Trail, and that no races are allowed on that Trail. 10. Visit Spokane Meg Winchester, Jamie Rand Ms. Winchester seeks $50,000 to assist in their marketing program which will position the City as a distinctive community worthy of the trip; and that their promotions will generate visitor spending through the city at restaurants, stores, hotels, and events throughout the year. Mr. Cameron said he has attended some marketing sessions about Ms. Winchester he represents, they are very pleased with the focus and attention and detail in tracking the market. Mr. Repetti said he sits on the Visit Spokane board and their new tracking software is incredible, and said he encourages working closely with Visit Spokane. In anticipation of the LTAC members going into a short recess, Ms. Taylor reminded everyone not to discuss the allocations except at the dais during the open meeting. Chair Wood called for a recess at 10:25 a.m.; he reconvened the meeting at 10:35 a.m. and asked if there were any motions. Mr. Cameron said that based on goals to further review the studies currently being conducted by the City to identify a major capital project and operating expenditures to facilitate a major sports facility to be built in the City of Spokane Valley, targeted to increase overnight visitors in Spokane Valley, he moved that $495,000 be deducted from the available lodging tax funds in 2020 and moved into the 1.3% account fund dedicated for a large sporting venue that generates overnight guests; which leaves remaining $300,000; and to allocate any remaining funds not distributed or recommended at this meeting, to be held in the fund balance for LTAC to be distributed in the future, and recommend final approval by the City Council. The motion was seconded by Mr. Repetti who stated that he supports moving significant dollars into the fund; and that he would support what is being recommended today. Mr. Cameron called for the question, but there was no second and discussion continued. After further discussion about the $495,000; it was moved by Ms. Heinselman and seconded to amend the motion by changing the amount from $495,000 to $450,000. Vote by a show of hands was unanimous in favor of the amended motion. The fully amended motion was then voted upon by a show of hands with all members voting in favor. Members of the LTAC then took a few moments to complete their spreadsheets for their recommendations. Finance Director Taylor entered the recommended allocations into a master spreadsheet and the floor was open for discussion. There was general discussion about the recommended amounts, and Mr. Brokaw mentioned that he initially did not recommend any funds to the Sports Commission based on what occurred in the previous year. After it was explained that the amount was not from the LTAC but rather was the members then announced they were each comfortable with the allocation averages as presented. It was then moved by Mr. Cameron and seconded to accept the recommended allocations as presented; i.e. (1) HUB $55,020; (2) JAKT CRAVE $18,600; (3) JAKT Farmers Market $8,000; (4) JAKT Oktoberfest $8,400; (5) NW Winterfest $48,000; (6) Spokane County Fair and Expo Center $66,000; (7) Spokane Sports Commission $45,000; (8) Valleyfest $18,600; (9) Valleyfest Cycle Celebration $1,380; and (10) Visit Spokane $50,000; total recommended allocations $319,000. It was moved by Mr. Cameron, seconded and unanimously agreed to adjourn. The meeting adjourned at 11:05 a.m. Respectfully submitted, Christine Bainbridge, Spokane Valley City Clerk LTAC Minutes October 17, 2019 Page 3 of 3