HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 05/07/2020
Unless other noted, the Lodging Tax Advisory Committee meets in April and
September to review grant requests. Unless otherwise noted, meetings are held in
the Centennial North and South Conference Rooms, 400 West Gowe Street, Kent,
WA 98032.
For additional information please contact City Clerk at 253-856-5725 or via email at
CityClerk@kentwa.gov.
Any person requiring a disability accommodation should contact the City Clerk’s
Office at 253-856-5725 in advance. For TDD relay service all Washington
Telecommunications Relay Service at 7-1-1.
Lodging Tax Advisory Committee
Special MeetingAgenda
Committee Members: Bill Boyce, Chair
John Casey - Gaila Gutierrez – Tim Higgins – Andrew Hutchison -
David Kwok - Erin McCallum - Bryan Powell
City Staff: Bill Ellis – Rhonda Bylin – Michelle Wimot
Thursday, May 7, 2020
4:00 p.m.
You can listen to the meeting or attend remotely by calling
1-888-475-4499 or 1-877-853-5257
and enter Meeting ID 911 8896 9102, Password 930882
Item Description Action Speaker Time
1. Call to Order Chair 01 MIN.
2. Roll Call Chair 01 MIN.
3. Changes to the Agenda Chair 01 MIN.
4. Approval of the Minutes - March
5, 2020
Chair 01 MIN.
1. Approval of March 5, 2020
Minutes
YES Chair 05 MIN.
5. Budget Update - Shane Sorenson Chair 01 MIN.
6. Administrative Allocation from
LTAC funds to 2020 ECD Budget
YES Michelle Wilmot 10 MIN.
7. Re-allocation of LTAC Funds for
Business Recovery Efforts
YES Michelle Wilmot 15 MIN.
8. Cancellation of Award Cycle(s) YES Bill Ellis 15 MIN.
9. Reduce Jay Ray Award for
Tourism Marketing
YES Michelle Wilmot 05 MIN.
Lodging Tax Advisory Committee Lodging Tax
Advisory Committee-Special Meeting
May 7, 2020
10. Reduce Seattle Thunderbirds
Marketing Assistance Grant
YES Michelle Wilmot 06 MIN.
11. Reduce Grant Award to Kent
Chamber of Commerce
YES Michelle Wilmot 05 MIN.
12. Adjournment Chair 01 MIN.
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Pending Approval
Lodging Tax Advisory
Committee
Lodging Tax Advisory
Committee-Special Meeting
Minutes
March 5, 2020
Date: March 5, 2020
Time: 4:00 p.m.
Place: Centennial Center ECD Large Conf.
Room
Attending: Bill Boyce, Chair
John Casey,
Gaila Gutierrez,
Tim Higgins,
Andrew Hutchison,
David Kwok,
Erin McCallum
Agenda:
1. Call to Order 4:00 p.m.
2. Roll Call
Attendee Name Title Status Arrived
Bill Boyce Chair Remote
John Casey Remote
Gaila Gutierrez Present
Tim Higgins Absent
Andrew Hutchison Remote
David Kwok Remote
Erin McCallum Remote
Bryan Powell Absent
Zenovia Harris Absent
3. Changes to the Agenda
An updated 2020 project scope based on a $15,200 increase in the grant
award was provided by email to Committee Members just prior to the
meeting. I will attach it to the legislative item so it will appear in the
minutes.
4. Approve JayRay's Final Budget
Michelle Wilmot recapped the purpose of the meeting and revisited the
results report provided by JayRay at the previous meeting held February
13th, for the benefit of the committee members.
1. Updated Strategy and Funding for VisitKent.com
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Lodging Tax Advisory Committee Lodging Tax
Advisory Committee-Special Meeting
Minutes
March 5, 2020
Kent, Washington
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Discussion resulted in two motions made:
Motion 1, Mover Gaila Gutierrez: Move to Award JayRay additional LTAC
funds in the amount of $46,745.00 for a total 2020 Budget of $136,444.
2nded by Bill Boyce
This vote resulted in. Yea by Gaila Gutierrez and Erin McCallum. and Nays
from Andrew Hutchison, John Casey, and David Kwok. Bill Abstained based
on the vote result and moved tas noted below. with the vote result recorded
above.
Motion 2, Mover Bill Boyce - Recommend to council the approval of an
additdional 15,200 in LTAC grant monies for a total budget of 105,000 for
2020. Gaila Gutierrez seconded the motion.
MOTION: Discuss and determine final budget recommendation for
VisitKent.com 2020 Updated Scope of Work.
RESULT: RECOMMENDED TO COUNCIL [5 TO 0] Next: 3/24/2020 4:00 PM
MOVER: Bill Boyce, Chair
SECONDER: Gaila Gutierrez, Executive Director
AYES: Boyce, Casey, Gutierrez, Hutchison, McCallum
ABSTAIN: Kwok
ABSENT: Higgins, Powell
5. Adjournment 4:36 p.m.
Committee Secretary
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ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE
Kurt Hanson, Economic and Community Development Director
220 Fourth Avenue S,
Kent, WA 98032
253-856-5454
DATE: May 7, 2020
TO: Lodging Tax Advisory Committee
FROM: Economic & Community Development
SUBJECT: Administrative Allocation from LTAC funds to 2020 ECD
Budget
MOTION: Recommend to Council the transfer of 6% of lodging tax
revenues annually to the budget of the Economic Development division in
consideration of its costs associated with supporting the Lodging Tax
Advisory Committee.
1. SUMMARY: We seek your approval to use 6% of 2019 Lodging Tax funds to
cover City administrative costs. State law allows the use of LTAC funds for
this purpose given the staff time needed to manage the contracting and
accounting process with grant recipients. In 2014, the committee approved a
10K allocation for this purpose, and it has continued in subsequent years.
While this is a long-time practice, like previous automatic allocations we’ve
reversed, it is more transparent for you as members, and for the public, to
approve an allocation annually rather than it being an automatic transfer.
BUDGET IMPACT: $18,363 or 6% of previous year LTAC revenues added to
the Economic Development Division Budget for 2020.
SUPPORTS STRATEGIC PLAN GOAL:
Innovative Government - Delivering outstanding customer service, developing leaders, and
fostering innovation.
Sustainable Services - Providing quality services through responsible financial management,
economic growth, and partnerships.
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LODGING TAX ADVISORY COMMITTEE
220 Fourth Ave S
Kent, WA 98032
DATE: May 7, 2020
TO: Lodging Tax Advisory Committee
FROM: Economic & Community Development
SUBJECT: Re-allocation of LTAC Funds for Business Recovery Efforts
MOTION: Recommend the Council award $50,000 from funds previously
awarded for outside consulting to the Economic Development team to
support new business recovery initiatives, in light of the economic crisis
brought about by Covid-19.
SUMMARY: There is an emergent need to revisit our lodging tax account balance
and adjust our spending as we are anticipating a dramatic drop in revenues.
While many of our Kent Valley business marketing initiatives continue with our
partner cities, we have terminated our $100K contract with Barokas
Communications. Our priority for economic development staff has pivoted to
mitigate the impact of this crisis and support business recovery efforts.
Therefore, we seek your approval to use $50K of the returned Lodging Tax funds to
support the City’s economic recovery activities, while also supporting the
committee’s objectives to promote leisure and business travel. These activities,
supported by economic development employees, will focus on the following:
a. Marketing industry economic activity and storylines to news media
b. Promoting overnight stays in Kent
c. Helping businesses navigate and access the various loans and grant
programs available to retain employees and stay in business
d. Provide oversight and management of JayRay ads and PR activities to
support and promote Kent’s hospitality industry
e. Support local restaurateurs and restaurant employees by directing
them to new grants/programs aimed to help the industry recover. i.e.
Kent Restaurant Week, The Plate Fund, industry-support websites
BUDGET IMPACT: $50,000 grant transferred to Economic Development Marketing
budget.
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ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE
Kurt Hanson, Economic and Community Development Director
220 Fourth Avenue S,
Kent, WA 98032
253-856-5454
DATE: May 7, 2020
TO: Lodging Tax Advisory Committee
FROM: Economic & Community Development
SUBJECT: Cancellation of Award Cycle(s)
MOTION: Recommend to Council the cancellation of sponsorship awards
from Lodging Tax Funds for the Spring 2020 cycle, in light of anticipated
reduced revenues due to Covid-19 and the many restrictions on public
events in the near term.
SUMMARY: In light of the economic impacts of the Covid-19 pandemic on Lodging
Tax revenues and the restrictions on travel and public gatherings we propose to
cancel the grant application funding cycle which closed on March 31, 2020.
Until this crisis subsides, and business activity has stabilized, it is impossible to
establish a grant award budget.
While we request approval to cancel the Spring 2020 award cycle, we also seek the
Committee’s guidance on the Fall 2020 cycle.
Exhibit: Spring 2020 Lodging Tax Grant Applicants and Events
BUDGET IMPACT: n/a
SUPPORTS STRATEGIC PLAN GOAL:
Sustainable Services - Providing quality services through responsible financial management,
economic growth, and partnerships.
ATTACHMENTS:
1. March 2020 Applicants (PDF)
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Org Name Event
Amount
requested
Event/Project
Budget Dates Event Location
Est.
attendance
AJAC
Washington State
Youth Apprentice
Signing Day 25,000.00 35,000.00 Sept. 30, 2020 ShoWare 400+
RESPECT USSSA LLC
Easton Derby
Conference Dual
Softball Event 7,500.00 18,000.00 June 20-25, 2020
Hogan Park
Fields 900+
First Washington
FTC & FLL State
Championships 15,000.00 31,600.00
January or
February 2021 ShoWare 2500-3000
Washington State
Wrestling
Foundation
Gut Check wrestling
Tournament 30,000.00 63,900.00 January 1, 2021 ShoWare 1900-2200
KD Hall Foundation Girls on the Rise Day 10,000.00 10,000.00 August 1, 2020 Highliine??
100 with 30-
40
overnight
KDP Kent Restaurant Week 2,600.00 2,600.00
Sept. 14-23rd
2020 n/a 3500-5000
Kent International
Festival
Kent International
Festival 10,000.00 53,580.00 June 5, 2021 ShoWare 6000-7000
City of Kent
Kent Marketing
Campaign 35,900.00 40,900.00 Ongoing n/a n/a
NW Entertainment
Alliance KingCon NW 10,000.00 80,000.00
October 3-4,
2020 Renton (RTC)3000+
Space Frontier
Foundation
NewSpace Conference
2020 30,000.00 300,000.00
June 23-25, 2020
OR July August if
COVD 19 forces a
delay Renton 500+
Space Frontier
Foundation
NewSpace Conference
2020 Kent Networking
event 15,000.00 20,000.00
coicidental with
above dates
TBD but
Bar/Restauaran
t in Kent 300
Project Feast
Project Feast Culinary
Training Program 15,000.00 125,000.00 Ongoing Program Ubuntu Café 5000
Seatte Metro JO
Girls Fast Pitch
Softball Tournaments 7,500.00 250,000.00
April - October
Tourneys
Kent Service
Club and Hogan
Park Fields 40000+
accesso ShoWare
AccessoShoWare
Marketing support 60,000.00 60,000.00 Ongoing Program n/a n/a
NW Athletic
Conference
NWAC Championship
& Friendlies 10,000.00 41,815.00 August 1, 2020
Starfire Soccer
Arena Tukwila,
Wa 7000
PNW Section, PGA
of America
Washington Open
Invitational Golf
Tourney 12,800.00 300,000.00 May 15-21, 2020
Meridian Valley
Golf Club 500
296,300.00
Spring 2020 Lodging Tax Grant Applicants and Events
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ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE
Kurt Hanson, Economic and Community Development Director
220 Fourth Avenue S,
Kent, WA 98032
253-856-5454
DATE: May 7, 2020
TO: Lodging Tax Advisory Committee
FROM: Economic & Community Development
SUBJECT: Reduce Jay Ray Award for Tourism Marketing
MOTION: Recommend to Council to Reduce the Lodging Tax funds
previously awarded by an amount of $45,000.00.
SUMMARY: The COVID-19 pandemic and Washington’s stay home/stay healthy
order, has created an economic emergency for the regions’ hotels which will greatly
reduce the funds available to this committee to distribute. An across the board
reduction in the Jay Ray scope of work for leisure tourism marketing will ensure our
fund balance does not fall below the minimum Lodging Tax Fund administrators are
required to maintain.
BUDGET IMPACT: $45,000 of Lodging Tax funds retained
SUPPORTS STRATEGIC PLAN GOAL:
Sustainable Services - Providing quality services through responsible financial management,
economic growth, and partnerships.
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ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE
Kurt Hanson, Economic and Community Development Director
220 Fourth Avenue S,
Kent, WA 98032
253-856-5454
DATE: May 7, 2020
TO: Lodging Tax Advisory Committee
FROM: Economic & Community Development
SUBJECT: Reduce Seattle Thunderbirds Marketing Assistance Grant
MOTION: Recommend to Council the reduction of the previously awarded
$66,780 grant to $21,780.
SUMMARY: The COVID-19 pandemic and Washington’s stay home/stay healthy
order, has created an economic emergency for the regions’ hotels which will greatly
reduce the funds available to this committee to distribute. The ability to play sports
and host spectators for the upcoming season is not a certainty during this unusual
time; but if there is a season, reducing the grant award to the Thunderbirds will not
impact their ability to play, but can help ensure our fund balance does not fall
below the minimum Lodging Tax Fund administrators are required to maintain.
BUDGET IMPACT: $45,000 of Lodging Tax funds retained
SUPPORTS STRATEGIC PLAN GOAL:
Sustainable Services - Providing quality services through responsible financial management,
economic growth, and partnerships.
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ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE
Kurt Hanson, Economic and Community Development Director
220 Fourth Avenue S,
Kent, WA 98032
253-856-5454
DATE: May 7, 2020
TO: Lodging Tax Advisory Committee
FROM: Economic & Community Development
SUBJECT: Reduce Grant Award to Kent Chamber of Commerce
MOTION: Recommend to Council the reduction of the previously awarded
$25,000 grant to $18,750.
SUMMARY: The COVID-19 pandemic and Washington’s stay home/stay healthy
order, has created an economic emergency for the regions’ hotels which will greatly
reduce the funds available to this committee to distribute. Reducing the grant
award to the Kent Chamber of Commerce will help ensure our fund balance does
not fall below the minimum Lodging Tax Fund administrators are required to
maintain.
BUDGET IMPACT: $6,250 of Lodging Tax funds retained
SUPPORTS STRATEGIC PLAN GOAL:
Sustainable Services - Providing quality services through responsible financial management,
economic growth, and partnerships.
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