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Resolution 22-017 TPA Intent to Establish CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON RESOLUTION NO.22-017 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, OF INTENTION TO ESTABLISH A TOURISM PROMOTION AREA; SETTING THE PUBLIC HEARING DATE TO CONSIDER THE SAME;DESCRIBING THE PROPOSED BOUNDARIES; DESCRIBING THE PROPOSED USES AND PROJECTS WITH THE FUNDS; IDENTIFYING THE ESTIMATED RATE OF THE CHARGE; AND OTHER MATTERS RELATED THERETO. WHEREAS,the City is currently part of the Spokane regional tourism promotion area established and operating pursuant to chapter 35.I01 RCW; and WHEREAS, the City Council terminated its participation in the Spokane regional tourism promotion area via Resolution 2I-008 on October 26, 2021,with an effective date of December 31, 2022; and WHEREAS,the City has been contacted by Spokane Valley hoteliers,who have expressed a desire to form a new tourism promotion area within the corporate limits of the City of Spokane Valley; and WHEREAS, pursuant to RCW 35.101.030,"[a] legislative authority shall, after receiving a valid initiation petition under RCW 35.101.020,adopt aresolution of intention to establish an area.The resolution must state: (1) The time and place of a hearing to be held by the legislative authority to consider the establishment of an area; (2)A description of boundaries in the proposed area; (3) The proposed area uses and projects to which the proposed revenues from the charge shall be dedicated and the total estimated cost of projects; and (4) The estimated rate or rates of the charge with a proposed breakdown of classifications as described in RCW 35.101.050. and; WHEREAS,the City has received an initiation petition for the formation of a Spokane Valley-only tourism promotion area meeting all of the requirements of RCW 35.101.020. NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington,as follows: Section 1. City Council Acceptance of Tourism Promotion Area Initiation Petition. The City Council hereby accepts as valid the Initiation Petition from the persons who operate lodging businesses in the proposed area that would pay 60% or snore of the proposed charges. The Initiation Petition is attached as Exhibit 1 to this Resolution. Section 2. Description of the Tourism Promotion Area Boundaries. The proposed area of the Spokane Valley Tourism Promotion Area is comprised of the entire area of the City of Spokane Valley as it is currently comprised or expanded in the future through annexation. Section 3. Proposed Uses and Projects. A. The revenue from the lodging charges collected from the operators of lodging businesses within the Spokane Valley Tourism Promotion Area shall be dedicated to the following uses and projects: 1. The general promotion of tourism within Spokane Valley and the Spokane metropolitan area as specified in a Spokane Valley Tourism Promotion Area business plan,to be adopted or updated annually. Resolution No.22-017-Intention to Establish TPA,set Public Hearing Page 1 of 2 2. The marketing of convention and trade shows that benefit local tourism and lodging businesses in Spokane Valley and the Spokane metropolitan area; 3. The marketing of Spokane Valley and the Spokane metropolitan area to the travel industry to benefit local tourism and the lodging businesses in Spokane Valley as well as the broader Spokane region; and 4. The marketing of Spokane Valley and the Spokane metropolitan area to recruit sporting events to benefit local tourism and the lodging businesses in Spokane Valley and the Spokane region. B. The total estimated costs of such uses and projects are as follows: The City estimates that the annual revenue from the lodging charges collected from the operators of lodging businesses within the Spokane Valley Tourism Promotion Area is expected to be $800,000. This estimated amount is based on a daily lodging charge of$4.00 and will vary from year-to-year depending upon fluctuating occupancy rates of lodging businesses in the Spokane Valley Tourism Promotion Area, and based upon program review. Section 4. Establishment of Public Hearing Date and Time. The required public hearing for establishment of the proposed Spokane Valley Tourism Promotion Area shall be conducted before the Spokane Valley City Council September 13,2022 beginning at 6:00 p.m. in the City Council Chambers at the City Hall of the City of Spokane Valley, 10210 East Sprague Avenue, Spokane Valley, Washington 99206. Section S. Effective Date. This Resolution shall be in full force and effect upon adoption. Adopted this 23`d day of August,2022. CITY OF SPOKANE VALLEY ATTES Q"N\--- 7 1 // Y Pam Hale My - a May hristine Bainbridge, City Clerk Approved s t aisi, - Office the C ttorney Resolution No.20-017-Intention to Establish TPA,set Public hearing Page 2 of 2 E'hi i' PETITION TO ESTABLISH CITY OF SPOKANE VALLEY TOURISM PROMOTION AREA WHEREAS, pursuant to chapter 35.101 RCW, a tourism promotion area (TPA) may be formed within a defined area for the purpose of tourism promotion, and would have authority to levy special assessments to fund tourism promotion as defined in RCW 35.101.010(4); and WHEREAS, the qualifying lodging businesses(40 or more lodging units)within the City of Spokane Valley desire now to present an initiation petition seeking to have the City Council establish a Spokane Valley TPA pursuant to chapter 35.101 RCW; and WHEREAS,petitions must be signed and submitted by the operators of qualifying lodging businesses who would pay at least 60% of the special assessment as determined by the revenue from qualifying lodging businesses in the previous quarter; and WHEREAS, pursuant to RCW 35.101.020, the initiating petition submitted to the City Council shall contain the following: I. A description of the boundaries of the proposed tourism promotion area; 2. The proposed uses and projects to which the proposed revenue from the special assessment shall be put and the total estimated costs; 3. The estimated rate for the special assessment with a proposed breakdown by class of lodging business if such classification is to be used; and 4. The signatures of the persons who operate lodging businesses in the proposed area who would pay sixty percent or more of the proposed special assessment. NOW THEREFORE, the lodging businesses located within the City of Spokane Valley do hereby petition the City Council as follows: I. The boundaries of the Spokane Valley TPA shall be the city limits of the City of Spokane Valley without any further breakdown into separate classifications. 2. The revenue from the special assessments collected from the operators of lodging businesses within the Spokane Valley TPA shall be dedicated to the following uses and projects: a. The general promotion of tourism within Spokane Valley and the Spokane metropolitan area as specified in the Spokane Valley TPA business plan, to be adopted or updated annually; Petition to Establish City of Spokane Valley Tourism Promotion Area- 1 b. The marketing of conventions, meetings, special events, and trade shows that benefit local tourism and the lodging business in Spokane Valley; c. The marketing of Spokane Valley and the Spokane metropolitan area to the travel industry to benefit local tourism and the lodging businesses in Spokane Valley; d. The marketing of Spokane Valley and the Spokane metropolitan area to recruit sporting events in order to benefit local tourism and the lodging businesses in Spokane Valley. 3. The total estimated costs of such uses and projects are as follows: The City of Spokane Valley estimates that the annual revenue from the special assessments collected from the operators of lodging businesses within the Spokane Valley TPA is expected to be$800,000. This estimated amount is based on a daily special assessment of$4.00, and will vary from year-to-year depending upon fluctuating occupancy rates of lodging businesses in the Spokane Valley TPA. 4. Pursuant to RCW 35.101.130(1), the petitioners recommend that the City Council create a five-person commission, to be called the Spokane Valley Hotel/Motel Commission (the Commission) comprised of voting representatives from the following hotel chain scales, as defined by Smith Travel Research (STR). If no representative from a hotel in the corresponding chain scale is willing or able to serve on the Commission, that position may be made available to any hotel within the boundaries of the Spokane Valley TPA: a. one economy hotel; b. one midscale hotel; c. one upper midscale hotel; d. one upscale hotel; e. one full-service hotel with over 200 rooms. In addition to the above voting commission members, there should be one non-voting ex officio member as assigned by the City Manager, who is expected to act as a liaison between the City Council and the Commission. Petitioners further recommend that a Commission member may only represent one type of property identified in(4)(a-e)above,and an ownership group may only represent one such property on the Commission at any given time. Petition to Establish City of Spokane Valley Tourism Promotion Area-2 The purpose of the Commission would be to develop a recommended annual budget for use of Spokane Valley TPA revenues, including recommended activities and programs for funding from the TPA assessment. Pursuant to RCW 35.101.130(2), the petitioners recommend that the City contract with a tourism destination marketing organization or other similar organization to administer the operation of the tourism promotion area. The petitioners recommend that upon creation, the initial annual budget would provide for the expenditure of approximately 85% of all revenues received for the stated uses and projects as set forth in Section 2 above. The remaining percentage of revenues would be held in a special reserve account and will either roll over into the next calendar year or will be utilized for contingency or unanticipated tourism promotion purposes. 5. The rate of the special assessment to be imposed in the Spokane Valley TPA shall be$4.00. 5. The additional assessment above $2.00 shall automatically expire at midnight on June 30, 2027 unless that deadline is statutorily extended by the Washington State Legislature for the longest period allowed by law. Upon expiration of the authority to impose an assessment above $2.00, the special assessment shall be reduced to the highest amount allowed by law without requiring further authorization from lodging businesses subject to this special assessment. This Petition is hereby presented by the following persons who operate lodging businesses in the proposed Spokane Valley TPA and which will pay sixty percent or more of the proposed special assessments. By signing below, each signor represents and acknowledges that they are authorized to sign this petition and that they are a"person(s)who operate lodging business(es) in the proposed area" as provided in RCW 35.101.020(4). Name of Lodging Business: LA. kJ }-�-.1 L-tZ3tJ , kA.,� Viku eAt Printed Name of Operator:AkA 6—r i;hr{.l Title: b Signature: _ Date: "t) � Name of Lodging Business: l`-*61 u Ct thAti. " S X attz- 11 a1 l Printed Name of Operator: 0., 1Q` } Y lSsl Title: 0._. -41eitGG.l 1 1O Petition to Establish City of Spokane Valley Tourism Promotion Area-3 ,- Signature: Date: c� L c Name of Lodging Business: f f)i -1 Rr-r r t' / /2I► , /o! ,G-- Printed Name of Operator;---4F_T I. ( /1, i=,?vn--' Title: i77 6:/M ' I r � Date: 7 0'�_ Signature: L��t r »�- "Z , Name of Lodging Business: 1`7wi, t'Yl Il l Vi 4 S f k;c sp-iptfu ktite j Printed Name of Operator: l-�-e,Yli a,4U`;l .P. �lf`-(U Vt Title: �y 0 J Signature: V\ k A Date: -111-1017-2 Name of Lodging Business: < ''6) -ir— r-/- Le"n S Uc Printed Name of Operator: V '4 C A- °'/ Title: C(' . t J ina-nccic Signature: Date: Name of Lodging Business: )c a....,-,1-e.S Printed Na o 1`�'Ct 3ti f O er r: s� t_ "Lc7 Title: Signa re: Date: i lv I ' za Name of Lodging Business: 0 cl'e kAv-ct� - h 1 Y\ cl'vtd c 1 -I c S_ Printed Name of Operator: E-c- ' q L / V icii �.4 L J. Title: O ASS V.e 1--- Signature uh - Date: g/Q/ 12 Z Name of Lodging Business: 1`1 o ►"n e- 1 O Om S'`v a�o 11‘i IL ti kc P —I �. Printed Name f Operator: Ilk . ��d tt y cS.kh,.�.v-/ Title: ID�L;..1 R +U,,.w I MA,I1 L y v Signature: i e, I Date: /f I 2.72_- Petition to Establish City of Spokane Valley Tourism Promotion Area-4 Name of Lodging Business: Rd\rn c , :n n Sp I` s.n \` /(e j- Printed Name of I�Operator: li� Ly' kw-AY Title: lSl Signature: rok: Date: S—9—22 Name of Lodging Business: Printed Name of Operator: Title: Signature: Date: Name of Lodging Business: Printed Name of Operator: Title:_ Signature: Date: Name of Lodging Business: Printed Name of Operator: Title: Signature: Date: Name of Lodging Business: Printed Name of Operator: Title: Signature: Date: Name of Lodging Business: Printed Name of Operator: Title: Signature: Date: Petition to Establish City of Spokane Valley Tourism Promotion Area-5 r t` Name of Lodgtnb. Business: 1 Y_� I� d Na of Ope 1 J }-H r c1.4(e.l M Lt` Title;{�lctkv wt d t Signat re: ,/ i � �� , Datc: ' / a ' �b Name of Lodging Business: Printed Name of Operator: Title: _ Signature: Dale: Name of Lodging Business: Printed Name of Operator: Title: Signature: Date: Name of Lodging Business: Printed Name of Operator: Title: Signature: Date: Name of Lodging Business: Printed Name of Operator: Title: Signature: Dale: Name of Lodging Business: Printed Name of Operator: Title: Signature: Date: Petition to Establish City of Spokane Valley Tourism Promotion Area-5 • The purpose of the Commission would be to develop a recommended annual budget for use of Spokane Valley TPA revenues, including recommended activities and programs for funding from the TPA assessment. Pursuant to RCW 35.101.130(2), the petitioners recommend that the City contract with a tourism destination marketing organization or other similar organization to administer the operation of the tourism promotion area. The petitioners recommend that upon creation, the initial annual budget would provide for the expenditure of approximately 85% of all revenues received for the stated uses and projects as set forth in Section 2 above. The remaining percentage of revenues would be held in a special reserve account and will either roll over into the next calendar year or will be utilized for contingency or unanticipated tourism promotion purposes. 5. The rate of the special assessment to be imposed in the Spokane Valley TPA shall be$4.00. 6. The additional assessment above $2.00 shall automatically expire at midnight on June 30, 2027 unless that deadline is statutorily extended by the Washington State Legislature for the longest period allowed by law. Upon expiration of the authority to impose an assessment above$2.00,the special assessment shall be reduced to the highest amount allowed by law without requiring further authorization from lodging businesses subject to this special assessment. This Petition is hereby presented by the following persons who operate lodging businesses in the proposed Spokane Valley TPA and which will pay sixty percent or more of the proposed special assessments. By signing below,each signor represents and acknowledges that they are authorized to sign this petition and that they are a"person(s) who operate lodging business(es) in the proposed area" as provided in RCW 35.101.020(4). Name of Lodging Business: \r.. \ f, , 1. 5 Printed Name of p • tor: 'l I'r C 11 i� � r Title: 611 Signature: 3 .l Date: ? l t 1 1 z Name of Lodging Business: Printed Name of Operator: Title: Petition to Establish City of Spokane Valley Tourism Promotion Area-3