Ordinance 22-016 TPA CITY OF SPOKANE VALLEY
SPOKANE COUNTY,WASHINGTON
ORDINANCE NO.22-016
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY,
WASHINGTON,ADOPTING CHAPTER 3.21 OF THE SPOKANE VALLEY MUNICIPAL
CODE TO ESTABLISH A TOURISM PROMOTION AREA, AND OTHER MATTERS
RELATING THERETO.
WHEREAS, the City of Spokane Valley desires to create a Spokane Valley Tourism Promotion
Area(TPA)comprised entirely of the corporate limits of the City as they currently exist, or as they may be
amended in the future as a result of annexation; and
WHEREAS,RCW 35.101.020 permits the City Council to establish a TPA within the City limits
following submission and acceptance of a petition requesting the same from at least 60% of the qualifying
hoteliers in the proposed TPA; and
WHEREAS, the City Council has received a petition which contains a description of the
boundaries of the proposed area; contains the proposed uses and projects to which the proposed revenue
from the charge shall be put;the estimated rate for the charge which does not include a proposed breakdown
by class of lodging business since there would only be one class in the TPA; and the signatures of the
persons who operate lodging businesses in the proposed area who pay 60%or more of the proposed charges
which is based upon the revenues of the previous quarter as identified by the Department of Revenue; and
WHEREAS,on August 23,2022,City Council adopted Resolution 22-017,entitled"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." Resolution 22-017 accepted the petition and set a public hearing for
September 13, 2022 to take public testimony regarding the establishment of the Spokane Valley TPA.
Notice of the public hearing was published in The Valley News Herald and mailed to hoteliers in Spokane
Valley pursuant to RCW 35.101.060(2); and
WHEREAS, the City Council conducted the public hearing on September 13, 2022 at Spokane
Valley City Hall, 10210 East Sprague, Spokane Valley, WA; and
WHEREAS, the money generated by the charge authorized pursuant to Ordinance 22-016 may
only be used for tourism promotion defined in RCW 35.101.010(4)as"activities and expenditures designed
to increase tourism and convention business, including but not limited to advertising, publicizing, or
otherwise distributing information for the purpose of attracting and welcoming tourists, and operating
tourism destination marketing organizations"; and
WHEREAS, the petition to establish the Spokane Valley TPA seeks to impose a $2.00 charge
pursuant to RCW 35.101.050, and an additional $2.00 pursuant to RCW 35.101.057 for a total charge of
$4.00 per night on qualifying lodging businesses; and
WHEREAS, the City Council desires to establish the Hotel/Motel Tourism Promotion Area
Commission. The intent of the Hotel/Motel Tourism Promotion Area Commission is to appoint individuals
who represent a cross-section of City hotels in terms of size and services offered to the traveling public.
City Council would seek to rely on these hoteliers' expertise in proposing an annual work plan/budget for
Ordinance 22-016 Establishing Tourism Promotion Area Page 1 of 6
expenditure of the funds generated from the TPA charges, which would guide Council in allocating TPA
funds for tourism promotion; and
WHEREAS, pursuant to RCW 35.101.090, the City will contract with the Washington State
Department of Revenue for the collection of applicable charges from affected businesses,with the funds to
be deposited in the Spokane Valley tourism promotion account to be created by the Washington State
Treasurer; and
WHEREAS, a new fund must be established within the City's annual budget for deposit and use
of the funds sent to the City; and
WHEREAS, creation of a Spokane Valley Tourism Promotion Area is in the best interest of the
City, its businesses, and citizens for the purpose of expanding tourism promotion.
NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington ordains as
follows:
Section 1. New Code Section. Spokane Valley Municipal Code section 3.21.010 is hereby
established as follows:
SVMC 3.21.010 —Tourism Promotion Area Established. There is hereby established pursuant to
RCW 35.101.080 a tourism promotion area to be known as the Spokane Valley Tourism Promotion
Area, the boundaries of which shall be the jurisdictional boundaries of the City as they currently
exist or as they may be expanded in the future through annexation.
Section 2. New Code Section. Spokane Valley Municipal Code section 3.21.020 is hereby
established as follows:
SVMC 3.21.020 —Definitions, Other than definitions specifically set forth herein, the definitions
for chapter 3.21 SVMC shall be the same as those used in chapter 35.101 RCW, which are
incorporated herein by reference.
Section 3. New Code Section. Spokane Valley Municipal Code section 3.21.030 is hereby
established as follows:
SVMC 3.21.030--Imposition of Lodging Charge, There shall be one classification upon which a
charge can be imposed,to be uniformly applied as follows:
(A)There is imposed,pursuant to RCW 35.101.050,a lodging charge on the furnishing of lodging
by lodging businesses located within the Tourism Promotion Arca established by chapter 3.21
SVMC in the amount of$2.00 per night.
(B) There is imposed, pursuant to RCW 35.101.057, an additional lodging tax of$2.00 on the
furnishing of lodging by lodging businesses located within the Tourism Promotion Area established
by chapter 3.21 SVMC in the amount of$2.00 per night. This subsection SVMC 3.21.030(B) and
the additional charges authorized by it shall expire July 1, 2027 unless prior to that date the
Washington State Legislature extends the expiration date found in RCW 35.101.057(2), in which
case the expiration date in this section SVMC 3.21.030 shall be extended to the new expiration
date, if any, set forth in RCW 35.101.057.
Ordinance 22-016 Establishing Tourism Promotion Area Page 2 of 6
Section 4. New Code Section. Spokane Valley Municipal Code section 3.21.040 is hereby
established as follows:
SVMC 3.21.040 — Exemption for Lodging Charge. Pursuant to RCW 35.101.055, the lodging
charge imposed by SVMC 3.21.030 shall not apply to temporary medical housing exempt pursuant
to RCW 82.08.997.
Section S. New Code Section. Spokane Valley Municipal Code section 3.21.050 is hereby
established as follows:
SVMC 3.21.050—Uses of Lodging Charge Revenue.
(A) The uses described in SVMC 3.21.050 are limited to tourism promotion pursuant to RCW
35.101.010(4) and may include payment of administrative costs associated with operation of the
Tourism Promotion Area as determined by the City Council,
(B)Revenue from lodging charges collected from the charges under chapter 3.21 SVMC shall only
be used for the following purposes:
1. The general promotion of tourism within Spokane Valley and the Spokane metropolitan
area as specified in the annual Tourism Promotion Area work plan/budget,to be adopted
annually;
2. The marketing of convention and trade shows that benefit local tourism and the lodging
business in Spokane Valley;
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; and
4. 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.
(C)Pursuant to RCW 35.101.130,the City Council shall have sole discretion as to how the revenue
derived from the lodging charge imposed pursuant to chapter 3.21 SVMC is to be used for tourism
promotion. In exercising its discretion on use of these funds, City Council shall consider the
recommendation(s) of the Spokane Valley Hotel/Motel Tourism Promotion Area Commission
established pursuant to SVMC 3.21.070.
Section 6. New Code Section. Spokane Valley Municipal Code section 3.21.060 is hereby
established as follows:
SVMC 3.21.060 — Collection and Administration. The lodging charge shall be collected and
administered by the Washington State Department of Revenue and State Treasurer pursuant to
chapter 35.101 RCW. The City Manager is authorized to execute any contracts with the state that
are necessary to provide for the collection or administration of the lodging charge. All funds
disbursed by the state to the City shall be deposited into a City tourism promotion area fund.
Section 7. New Code Section. Spokane Valley Municipal Code section 3.21.070 is hereby
established as follows:
SVMC 3.21.070—Hotel/Motel Tourism Promotion Area Commission.
Ordinance 22-016 Establishing Tourism Promotion Area Page 3 of 6
(A)The Hotel/Motel Tourism Promotion Area Commission is created as an advisory body to make
recommendations to the City Council for use of the revenue derived from the charge.
Appointments to or removals from the Hotel/Motel Tourism Promotion Area Commission shall be
made by the Mayor, with confirmation by a majority of Council pursuant to the then-currently
adopted Governance Manual.
(B) The Hotel/Motel Tourism Promotion Area Commission shall be composed of five 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
Hotel/Motel Tourism Promotion Area Commission, that position may be made available to a
representative of any lodging business within the boundaries of the Tourism Promotion Area:
(1) one economy hotel;
(2) one midscale hotel;
(3) one upper midscale hotel;
(4) one upscale hotel;
(5) one full-service hotel over 200 rooms.
A Commission member may only represent one type of property identified in SVMC
3.21.070(B)(1-5) above at any given time, and an ownership group may only represent one such
property on the Commission at any given time.
(C) In addition to the above voting Commission members,there shall be one non-voting ex officio
member as assigned by the City Manager, who will function as a liaison between the City Council
and the Hotel/Motel Tourism Promotion Area Commission.
(D) For appointment of the initial Hotel/Motel Tourism Promotion Area Commission, three
members shall have a three-year term, and two members shall have a two-year term. Upon the
expiration of the initial three-year term, the term for those three positions shall thereafter convert
to a two-year term.
(E) Members of the Hotel/Motel Tourism Promotion Area Commission shall serve without
compensation.
(F) All meetings of the Hotel/Motel Tourism Promotion Area Commission are subject to
Washington's Open Public Meetings Act, chapter 42.30 RCW, and Washington's Public Record
Act, chapter 42.56 RCW.
Section 8, New Code Section. Spokane Valley Municipal Code section 3.21.080 is hereby
established as follows:
SVMC 3.21.080—Spokane Valley Tourism Promotion Area Annual Work Plan/Budget.
(A) The Hotel/Motel Tourism Promotion Area Commission shall develop a recommended annual
work plan/budget for use of Spokane Valley TPA revenues,including recommended activities and
programs for funding from the charge authorized by chapter 3.21 SVMC,and including a complete
list of projects for which application was made for funding for that year. The recommended work
plan/budget shall be submitted to the City Council in written form no later than September 30 of
each calendar year for inclusion in the City's annual budget adoption process.
Ordinance 22-016 Establishing Tourism Promotion Area Page 4 of 6
(B)The City Council may by motion approve the proposed work plan/budget, or instead return the
proposed work plan/budget to the Hotel/Motel Tourism Promotion Area Commission for further
recommendations.
(C)The City Council may not add a project to the annual work plan/budget that was not previously
considered by the Hotel/Motel Tourism Promotion Area Commission. If such action is proposed
by City Council, the proposed work plan/budget shall be returned to the Hotel/Motel Tourism
Promotion Area Commission for further discussion and recommendation,providing at least 20 days
for comment unless the comment period is waived by the Hotel/Motel Tourism Promotion Area
Commission. After the comment period, the City Council may exercise its sole discretion as to
how the revenue derived from the charge is to be used to promote tourism, pursuant to RCW
35.101.130(1).
(D)After the annual work plan/budget is adopted by City Council,it shall govern the use of revenue
derived from the charges during the calendar year in which annual work plan/budget was approved.
The City Council may make amendments to the annual work plan/budget by motion, subject to
compliance with the requirements of SVMC 3.21.080(3)regarding review and comment period by
the Hotel/Motel Tourism Promotion Area Commission.
(E) The Hotel/Motel Tourism Promotion Area Commission shall provide a written report to the
City Council at least 45 days prior to when the annual work plan/budget is due to the City Council.
The report shall include information on the previous year's operations of the Tourism Promotion
Area such as (but not limited to):
(1)The number of hoteliers paying the Tourism Promotion Area fee;
(2) A summary of key factors influencing Spokane Valley's visitor industry in the past
year;
(3) An outline of major initiatives including visitor marketing and promotion, recruitment
of group meetings or sporting events occurring in the past year;
(4)The level of hotel occupancy and associated room demand contrasted to previous year;
(5) The level of TPA per-room night proceeds contrasted to previous year;
(6) The number of group meetings or sporting events that were booked, or in which
significant support services were provided by the booking organization.This would include
the number of participants and estimated economic impacts;
(7)Other relevant efforts and impacts of the TPA activities.
Section 9. New Code Section. Spokane Valley Municipal Code section 3.21.090 is hereby
established as follows:
SVMC 3.21.090 — Contracts Authorized for Operation of Tourism Promotion Area. Pursuant to
RCW 35.101.130(2), the City may contract with a tourism destination marketing organization or
other similar organization to administer the operation of the tourism promotion area.
Section 10. Severability. If any section, sentence, clause or phrase of this Ordinance should be
held to be invalid or unconstitutional by a court of competent jurisdiction,such invalidity or unconstitutionality
shall not affect the validity or constitutionality of any other section,sentence,clause or phrase of this Ordinance.
Section 11. Effective Date. This Ordinance shall be in full force and effect on January 1,2023 so
long as publication of the Ordinance Summary has occurred at least 30 days prior to that date.
Ordinance 22-016 Establishing Tourism Promotion Area Page 5 of 6
Passed this 20th day of September, 2022.
q)S 049
Pam Haley, Mayor
ATTES
hristine Bainbridge, City Clerk
Approved As To Form: ✓✓✓
14.1 '
Office of tl City tt ney
Date of Publication: 09 ',Se) ' 0 ,,2--
Effective Date: f — ,� " dQ 3
Ordinance 22-016 Establishing Tourism Promotion Area Page 6 of 6