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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 04/01/2003 (2) OFFICE OF THE MAYOR Jim White, Mayor Phone:253-856-5700 Fax: 253-856-6700 KENT Address: 220 Fourth Avenue S. WASH I N G T O N Kent,WA. 98032-5895 FINAL AGENDA LODGING TAX ADVISORY BOARD MEETING Tuesday, April 1, 2003 2:30pm 4"' Floor Centennial Building Mayor's Conference Room 1. Call to order— Councilmember Rico Yingling 2. Welcome new board member Jacquie Alexander 3. Approval of minutes of February 18, 2003 meeting 4. Financial Report and Latest 2003 projections—Cliff Craig or John Hillman, Finance 5. Update on Kent Lodging Association Budget Proposal for July-December 2003—Nathan Torgelson 6. Review/confirm community grant process request of$5,000 7. Softball tournament issues—Raul Vaca and Nathan Torgelson 8. Dragon Boat races—Nathan Torgel'son 9. Other business 10. Next meeting 11. Adjourn LODGING TAX ADVISORY COMMITTEE MEETING MINUTES for February 18 2003 The regular meeting of the Lodging Tax Advisory Committee was called to order at 2:30 p.m. by chair, Rico Yingling. Committee Members Present: Kathy Madison, Andy Wangstad, Rico Yingling and Denise Gray Committee Members Absent: Vickie Molzer and Diana Albertson Staff Present: Nathan Torgelson, Economic Development Manager, May Miller, Finance Director, Pete Peterson, Riverbend Golf Operations Superintendent, Brett Wilkinson, PGA Professional and Cheryl Viseth temporarily replacing Brenda Jacober, City Clerk Guests: Raul Vaca, Kent Chamber of Commerce and Jacqui Alexander, Kent Downtown Partnership Welcome New Board Member: The committee introduced themselves to Denise Gray, General Manager of the Town Place Suites, Seattle/SouthCenter. Denise is representing the Hotel side of the committee and is replacing Rene Husby. Denise has lived in the area for seven months and feels that serving on the board would be a great opportunity to find out what is going on in the community. Rico briefly explained the committee's purpose and goals. Approval of Meetinq Minutes for November 5, 2002: Minutes for the November 5, 2002 meeting were approved as read. Kent Lodging Association Update: Raul Vaca, Chamber of Commerce (Copies attached) Raul handed out copies of the "Kent Lodging Association Report to Lodging Tax Advisory Committee dated 2-18-03." The first handout reflects a snapshot of the room revenues for four hotels from 2001 to 2002. Bottom line is that revenues are down overall, year to date. The second handout (see attached copies) reflects the number of hits and number of page views to the Kent Chamber's Web Site, from December 2001 to December 2002. He noted that on February 19, the online reservation system would be up and running. Raul had a copy of the Washington State Visitors Guide for everyone to look at. Upon closing, Raul asked when an appropriate time would be to submit for their July through December estimated budget. Rico suggested that Raul and Nathan put together a preliminary evaluation and bring that back in May with a possible recommendation. Nathan noted that the City's website now included a link to the Kent Chamber of Commerce. Pete will work with Raul to link the Golf Course as well. Rico asked that someone from the golf course attend some of the monthly Kent Lodging Association meetings (2"d Wednesday of each month) as they had particular interest in partnering with the golf course. State Experience Washington Website and Kent Information; Nathan Torgelson, Econ. Dev. Mgr. The State of Washington has a tourism web site, and every city has an opportunity to submit information. Nathan will be the editor of the information submitted for the City. He also noted that you can only link to other existing web sites that are public or non profit sites not, businesses. If you are interested, go to www.experiencewashington.org. (See attached handout). 1 Recommendation on New Member (Jacqui Alexander); Nathan had nominated Jacqui Alexander as a new member of the Board and she graciously accepted the nomination. Ms. Alexander formerly worked for the Chamber of Commerce at the cities of Shelton, Olympia, Lacey and Vancouver. She had also worked as sales director at a hotel and served on the Lodging Tax Board for the City of Shelton, a panel very similar to this board. Ms. Alexander is currently the Director of Kent Downtown Partnership. The Partnership works closely with a number of downtown businesses much like the Chamber of Commerce, working on issues that impact the business community. The Downtown Partnership is currently moving toward a membership program. Jacqui was recommended to serve on the committee because of her vast experience. Her appointment was unanimously approved. Financial Report and Latest 2003 Projections; May Miller, Finance Director See attached report Update on Softball Tournament Bids; Nathan Torgelson In late winter Raul and Nathan exchanged emails regarding the funding of the Senior Men's Western World Qualifier to take place July 18-23. $12,500 would pay for the bid with 60-80 teams playing at Russell Road Park. Two other softball tournaments came to Nathan and Raul and it was decided not to submit bids for them due to the shorter duration (more bang for the buck with the Senior Men's Tournament). Review/Confirm Community Grant Process Request of$5,000: Nathan noted that at the last meeting the committee reviewed a grant application. The Kent Downtown Partnership had submitted two requests for marketing dollars for two separate events. It was recommended that we not provide funding for the Winter Fest event, but provide preliminary approval for the Canterbury Crier. It was determined that the Canterbury event would potentially draw more hotel stays than the Winter Fest event. Jacquie shared that the money would be used for marketing and entertainment. Jacqui will go back to her committee and see if they can reduce the amount of their request and bring it back to the committee in April. Other Business; Pete and Brett, Riverbend Golf Complex handed out the 2003 Golf Tournament Schedule (see highlighted areas) for out of town visitors. Various questions followed about how the golf course advertises and when asked, what places/businesses they recommended. Next Meeting; April 1, 2003 at 2:30 p.m., Temporary Mayor's Conference Room located on the Fourth Floor of the Centennial Building in Suite 400. Action Item: May Mill will find out when the debt service will be paid in full. Adjourn: The meeting was adjourned at 3:30 p.m. 2 Q rq, 0 3 "j CITY OF KENT X CITY CLER DOWNTOWN PARTNERSHIP Kent Downtown Partnership Name of Applicant: Kent Downtown Partnership Address of Applicant: 202 West Gowe Street,Suite K,PO Box 557, Kent,WA 98035 Business Phone: (253) 813-6976 Contact: Jacquie Alexander,Executive Director Non-Profit Status: Yes Identification Number. 91-1573465 Project: "Canterbury Canter August 16-17,2003 Amount of funding requested. $5,000.00 Description of the project: run, sprint; dash,rush, plunge headlong or race, scurry, scamper, scud, scuttle, spurt, burst, burst of speed, canter,gallop, lope, trot, dogtrot,jogtrot, amble, pace, prance. Can-ter/kant-er/(the supposed gait of pilgrims riding to Canterbury) 1: to move at, or as if at, a canter:LOPE 2: to ride a horse at a canter: vt:to cause to go at a canter. Description: Canterbury Canter in Kent Downtown will join the Canterbury Faire activities to promote a gallery, antique and collectible walk(Canter) through our"faire" city. Merchants will prepare special events and displays. A"Canterbury Faire Express" will provide complimentary transportation to link together the weekend events. A diverse group of musicians and performers will provide entertainment in the Downtown area. Local restaurants,pubs, coffee shops and bakeries will welcome visitors along the Canter. Lodging Tax Grant Page Two 1. How does this project meet the guidelines identified above,or otherwise advance the goal promoting tourism and encourage overnight stays in Kent? Canterbury Faire is an existing event coordinated by the City of Kent Parks Department. The event, located at Mill Creek Park, has successfully attracted guests and tourists for several years. The promotions committee for the KDP believes we can greatly increase the popularity of this event and attract more tourists,by offering opportunities of specialty shopping, fine food and entertainment in historic Kent Downtown. We will encourage travel packages on our (near-future)website and in promotional materials. We will distribute promotional materials to recreational vehicle parks, hotels and the Sounder Train riders. 2. Quantify the benefit to tourism caused by this project(estimated number of over night stays). This weekend event will draw approximately 5,000 additional guests and visitors to Kent. Our estimate for overnight stays would be approximately 10%. 3 Is this project currently funded by some other revenue source? The Promotions Committee for the KDP is expecting local businesses to partially support this event financially through individual and group promotions. 4. Have you received funding in the past from the Lodging Tax? No. 5. How and when will you spend the funds requested in this cycle? Planning for this new event will begin in November, 2002. The funds will be spent on marketing and.promotion of this event through regional newspapers, direct mail, radio, posters,banners, press releases, and cable television. Advertising and promotions will begin almost immediately by placing this event in festival listings, web pages, goings on for the 2003 and increase the exposure as the event draws near. 6. Who in your organization is responsible for spending the funds? The Canterbury Canter committee will be selected to determine the appropriate advertising and promotion mediums;present their request to the KDP Promotions committee, and ultimately, to the Kent Downtown Partnership's Board of Directors ) Lodging Tax Grant Page Three Respectfully submitted, S' ne Dated r T tle Kent Downtown Partnership P.O. Box 557 Kent,WA 98032 Phone: (253) 813-6976 E-maik downtown@wizards.net Kent Cornucopia Days "Dragon Boat Races" March 31,2003 To:Rico Yingling Chair of the Lodging Tax Advisory Board City Committee Lodging Tax Advisory Board Members Nathan Torgelsen Economic Development Manager for the City of Kent From: Cheryl Corbin Kent Lion's Cornucopia Festival Dragon Boat Race&Festival-Director Subject: Proposal to the Lodging Tax Funds Advisory Board for the use of funds collected to create business for Kent motels and hotels.The vehicle for this would be the Kent Lion's Cornucopia Days Dragon Boat Race Festival(held July 11 & 12th) The Kent Lion's Dragon Boat Races are in their 3rd year of races and are growing toward hosting the Pacific Dragon Boat Associations regional races in July of 2004. There will be an influx of up to 70 teams. This would attract teams from California,Oregon,Washington,possibly Arizona and Nevada. Each team has 20-24 members to it. That could draw 1400+team members. Family and friends accompany the teams as well. We also draw some from Canada and if we remain the only July dragon boat race at this moment in the region,we will draw more Canadians and other teams.That influx could increase this year. This year I am hoping to draw between 30-40 teams. We are busy developing our local teams as well.We have added a friendly competitive race between local city governments and have named it"Battle For The Paddle"This is a wonderful community bridging,people friendly,fun,colorful event that creates visibility, is a great recreational and competitive sport,and provides an opportunity for tourism as well. Dragon Boat Festivals are colorful,entertaining,and unique. The combination of the races with the festival interests both the community and the racing teams. This year J.P.Patches and other entertainment,including T.V.'s channel 11 will be present to film and interview politicians in the"Battle For The Paddle". We are developing a ceremony to kick off the event at the Great Wall Mall. The Kent Lion's were just loaned a dragon boat to exhibit at the Great Wall Mall to promote the event. There will be much media attention, VIP's and festive activities to bring awareness to the dragon boat festival,as well as Cornucopia Days. Dragon boat racing is rooted in Chinese tradition and stems from folklore. The boats have dragon heads and tails on them. There are many designs. The festival is a colorful assortment of food,vendors, entertainment,and the races begin with the traditional"Opening of the Dragon's Eye". Colorful,energetic Lion dancers and drum beats start off the ceremonies. Each team of up to 24 people tries to paddle in unison to the finish line in record time. So far there are no dragon boat race festival's taking place in Eastern Washington. The funds collected from the lodging taxes could be invested in developing brochures and promotions to attract people over from that part of the state to see the dragon boat festival in Kent. This would be as much of a treat to that region as when we visit Leavenworth and enjoy the uniqueness it has to offer.Attending the races,the festival,attending Cornucopia Days with a visit to the Great Wall Mall,and finishing with dinner at the Imperial Gardens then an over night stay in a Kent motel/hotel could be a tourist package all by itself! There is a market from Lake Chelan to Spokane to the Tri-Cities for this annual event. Other ways the funds from the Lodging Taxes could enhance the attraction of business to the motel and hotels in Kent,through the Kent Dragon Boat Festival,is to form a"Hospitality Committee"from interested members in the Lodging Association.They would sponsor and present in part or whole the medals awarded to the teams at an awards ceremony. By catering to the dragon boat teams with special rates,and using the lodging tax funds to provide a Kent traditional"goodbye"barbecue dinner,a great lasting memory of the Kent venue will be instilled.The teams and tourists'will look forward to the Kent Lion's Dragon Boat Festival annually.The Kent hotels and motels will continue to prosper over and over. mom or �� gory Bout Race=s�, • Your company's banner will be posted at the finish line before a crowd of 1,000+team members and spectators or in our entertainment/vendor area. • Your company's logo will appear in the race program. • Your company's name will be listed or named in other media coverage. • Individual's name instead of company name is accepted. • By reserving your company's advertising spot today, you are insuring your advertising spot at the 2004 Pacific Dragon Boat Association regional races in Kent. 4• Race event is for July I 1 and July 12, 2003 on beautiful Lake Meridian in Kent. • Support the Kent Lions Cornucopia Dragon Boat Races. All proceeds go to numerous Kent Lions charitable programs. • This is a wonderful community connecting and team building sport. Donation: $500.00 finish line signage or $300,00 for entertainment bowl signage. For vendor opportunities please call: Julie Holbrook-Vendor Chair, 253-631-9392 For advertising spot please contact: Cheryl Corbin, Kent Lion's Dragon Boat Race Director at: 253-735-6368, fax: 253-735-4452,E-mail: dandcl@juno.com Visit us at www.kcdays.com for more information DONATED BY YOUR KENT OFFICE DEPOT CITY OF KENT PRELIMINARY BUDGET ANALYSIS AND FORECAST LODGING TAX OPERATING FUND as of February 28,2003 2002 2003 2003 2003 Actual Adj Budget YTD Est Actual REVENUES Lodging Tax 127,390 131,411 17,509 131,053 Interest Income 521 1,115 0 1,115 TOTAL REVENUES 127,911 132,526 17,509 132,168 EXPENDITURES Strong Local Economy Transfer Out-Tourism Destination 85,000 85,000 - 85,000 Transfers Out-Tourism-Related Projects 66,530 66,530 23,598 66,530 TOTAL EXPENDITURES(TRANSFERS) 151,530 151,530 23,598 151,530 INCREASE(DECREASE)IN FUND BALANCE (23,619) (19,004) (6,089) (19,362) BEGINNING FUND BALANCE 43,205 22,050 19,586 19,586 ENDING FUND BALANCE 19,586 3,046 13,497 224 PRELIMINARY BUDGET ANALYSIS AND FORECAST OURISM-RELATED PROJECT ACCOUNT as of February 28,2003 2002 2003 2003 2003 Actual Adj Budget YTD Est Actual REVENUES Transfers in- Lodging Tax Fund 66,530 66,530 23,598 66,530 EXPENDITURES Tourism-Marketing (1223) 14,303 12,500 5,000 12,500 Tourism Chamber 2000 (1263) - - - - Tourism Chamber 2001 (1271) 6,465 - - - Tourism Chamber 2002 (1272) 57,530 - - - Tourism Chamber 2003-Jan-Jun 39,790 35,000 39,790 Tourism Grants/July-Dec Chamber 14,240 14,240 TOTAL EXPENDITURES 78,298 66,530 40,000 66,530 INCREASE(DECREASE)IN BALANCE (11,768) - (16,402) - BEGINNING PROJECT BAIrANCE 23,170 3,518 11,402 11,402 ENDING PROJECT BALANCE 11,402 3,518 (5,000) 11,402 13002.x1s 4/1/2003 EXHIBIT "A" `l Kent Lodging Association 2003 Budget NOTES: Total hotel occupancy for 2002 is expected to generate $107,681 in tax revenue Jan. -Jun. Jul. -Dec. 2003 Total Service Budget Web site Hosting $ 300 $ 300 $ 600 Consulting $ - $ - $ Content administration $ 5,400 $ - $ 5,400 Content management system $ 1,500 $ - $ 1,500 Search engine marketing $ 2,500 $ - $ 2,500 Subtotal $ 9,700 $ 300 $ 10,000 Individual Traveler Collateral Lure brochure print 10,000 copies $ 3,600 $ - $ 3,600 Postage: $100/mo.) $ 100 $ 50 $ 150 Certified Folder distribution $ 2,500 $ - $ 2,500 t btotal $ 6,200 $ 50 $ 6,250 1 Meeting Planner Print $ 100 $ 100 $ 200 Postage $ 100 $ - $ 100 Eastern Washington Trade Show $ - $ - $ - Subtotal $ 200 $ 100 $ 300 Advertising Sponsorships (tournaments, etc.) $ 2,750 $ - $ 2,750 WA State Visitors Guide $ - $ 2,500 $ 2,500 Eastern Washington Newspapers $ - $ $ - Toll free number: @ $0.10/min. $ 250 $ 50 $ 300 Subtotal $ 3,000 $ 2,550 $ 5,550 Marketing Representative Salary: PT $ 11,000 $ 11,000 $ 22,000 Payroll $ 990 $ 990 $ 1,980 Benefits $ 2,700 $ 2,700 $ 5,400 Training/contractor $ - $ - $ _ Travel $ $ Admin. O/H (Office supplies, utilities, office space, etc.) $ 6,000 $ 6,000 $ 12,000 Subtotal $ 20,690 $ 20,690 $ 41,380 Total $ 39,790 1 $ 23,690 1 $ 63,480 IJ