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2011, 10-13 minutes CITY OF SPOKANE VALLEY, WA Lodging Tax Advisory Committee Minutes of Meeting held October 13, 2011 The meeting was called to order at 8:35 a.m. In attendance were Jeff Fiman, Peggy Doering, Doug Kelley, Lee Cameron, Brenda Grassel, Sarah Farr, Mark Calhoun, Phil Champlin (HUB), Eric Sawyer (Spokane Regional Sports Commission), Denise Paulings (Unlimited Marketing for Valleyfest), Jayne Singleton and Herman Meier (Spokane Valley Heritage Museum), Keith Backsen (Spokane Regional CVB). Mark Calhoun opened the meeting with an introductions and overview of the agenda and explained that the meeting was open to the public. He provided a brief description related to the financial information included in the Committee packet, and discussed the estimated lodging tax proceeds available for 2012. He noted that 2012 lodging tax receipts were estimated to be approximately $430,000 and that $30,000 had been budgeted to go towards CenterPlace advertising. He also noted that the estimated fund balance of the Hotel/Motel Tax at the end of 2011 would likely be approximately $220,000. The Committee then discussed whether CenterPlace should receive money without having to follow the application process. It was noted that in 2010 the Committee agreed that CenterPlace should follow the same process as the other applicants and that consequently they did not apply for 2011 money. The Committee went on to discuss their intentions of recommending the allocation of some funds now, holding back some of the money, and meeting again in a second round later in the year to distribute remaining funds. They also discussed spending down a portion of the Hotel/Motel Tax Fund reserves below the 2011 yearend estimate of $220,000. This is partially in response to the State of Washington eliminating all tourism funding from its fiscal year 2012 Budget that began July 1, 2011. Applicant Presentations: • 9:00 HUB - Phil Champlin • 9:30 Spokane Regional Sports Commission - Eric Sawyer • 10:00 Valleyfest - Peggy Doering and Denise Paulings • 10:55 Spokane Valley Heritage Museum - Jayne Singleton and Herman Meier • One applicant — SpoCon, who was scheduled to make a 9:30 presentation, did not show. Following the applicant presentations the Committee discussed the merits of providing funding to the organizations. It was agreed that SpoCon would receive nothing as they were not there to make a presentation and consequently were unable to clarify whether they were in fact a 501(c)(3) non-profit entity. Each committee member then expressed their rationale for making specific allocation recommendations and these were tracked on a whiteboard. P:IClerklAgendaPackets for Weblagendapacket 11-29-1111tem 4 LTAC meeting minutes.docx Final LTAC Organization Jeff Brenda Doug Lee Peggy Recom- Hi / Low Fiman Grassel Kelley Cameron Doering Average mendation HUB 40,000 35,000 50,000 45,000 43,000 42,600 42,600 50,000 / 43,000 SpoCon 0 0 0 0 0 0 0 70,131 / 50,773 Sports Commission 175,000 175,000 200,000 175,000 200,000 185,000 185,000 200,000 / 200,000 Museum 3,000 3,000 3,500 5,000 5,000 3,900 3,900 5,000 / 3,500 Valleyfest 0 5,000 5,000 0 40,000 10,000 0 50,000 / 40,000 + Round 2 + Round 2 + Round 2 + Round 2 CenterPlace 0 0 0 0 30,000 6,000 0 30,000 / 30,000 + Round 2 + Round 2 + Round 2 Through this exchange the Committee asked Mr. Backsen from the CVB what their request would have been had they submitted an application and he responded $250,000. The Committee also speculated the Fair and Expo's anticipated request would have been approximately $30,000 if they had submitted an application but noted the timing of the City's application process conflicted with the fair. The Committee again expressed their concern that the City's 2012 Budget has already included $30,000 of Lodging Tax to be applied to CenterPlace advertising and felt that this should not occur without CenterPlace Staff working though the application process expected of other organizations interested in receiving funding. It was again discussed that perhaps there should be a second round application process where CenterPlace Staff would have an opportunity to apply. It was also suggested that the Committee hold off on recommending any funding for Valleyfest until a second round while they gathered statistics related to attendance figures and hotel stays from the September 2011 festival. Brenda Grassel moved that the Committee accept the following funding levels and this was approved through a vote consisting of 4 members in favor and 1 opposed: HUB 42,600 Sports Commmission 185,000 Museum 3,900 231,500 The Committee further discussed holding a Round 2 in early January of 2012 and that this round would be open to all to apply and/or reapply. Brenda Grassel moved that the committee hold another round of the application process to distribute 2012 Lodging Tax money. This was approved through a vote consisting of 4 members in favor and 1 opposed. P:IClerklAgendaPackets for Weblagendapacket 11-29-1111tem 4 LTAC meeting minutes.docx Mark Calhoun noted that he would prepare an agenda report to present to the City Council on October 25, 2011, and that the Council was scheduled to take action on the Committee recommendation on November 15, 2011. There was some discussion from several committee members regarding the courtesy letter that is historically sent to potential applicants, and the intent to eliminate such letter. The meeting was adjourned at 12:20 p.m. Respectfully submitted, Sarah Farr and Mark Calhoun P:IClerklAgendaPackets for Weblagendapacket 11-29-1111tem 4 LTAC meeting minutes.docx