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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 04/01/2003 LODGING TAX ADVISORY COMMITTEE MEETING April I, 2003 Committee Members Present: Raul Vaca, Vickie Molzer, Diana Albertson, Kathy Madison, Andy Wangstad, and Jacquie Alexander. Others Present: Rico Yingling, Nathan Torgelson, John Hillman, and June McElheran The meeting was called to order by Yingling at 2:39 p.m., and introductions were made. Approval of Minutes. Torgelson noted some misspelled names in the minutes and Jacober agreed to correct the errors. Wangstad moved to approve the minutes of February 18, 2003, as corrected. Molzer seconded and the motion carried. Financial Report and Latest 2003 Projections. Hillman distributed the Preliminary Budget Analysis and Forecast as of February 28, 2003, and noted that the projected budget for the 2003 operating fund is $131,053, that no interest has been received this year, and that the fund balance at the end of February was $3,843. He noted the two transfers out of $85,000 for the golf course debt service and $66,530 for tourism related projects have not yet occurred. He stated that he expects the operating fund will end the year with $224. Hillman noted for Yingling that $40,000 has been spent on tourism related projects, resulting in a negative balance. Yingling summarized that there is $12,500 in the budget for softball and $55,000 for the Chamber of Commerce, and that the projected ending balance of $11,402 is optimistic. The members of the hotel industry noted that projections don't look promising because people are not traveling due to the war, layoffs and restricted budgets. Wangstad moved to approve the budget. Madison seconded and the motion carried. Update on Kent Lodging Association Budget Proposal for July-December 2003. Torgelson noted that the Kent Lodging Association has requested that this item be tabled until the next meeting. Review/Confirm Community Grant Process Request for $5000. Torgelson noted that in November two proposals from the Kent Downtown Partnership were reviewed. He explained that the request for Canterbury Canter was conditionally approved depending on the budget, and that the request for Winterfest was not approved. June McElheran of the Marketing Promotions Committee for the Kent Downtown Partnership said they have met with the City of Kent Cultural Arts Division Lodging Tax Advisory Committee April 1, 2003 PageTwo and discussed the issue of partnering with them in order to enhance the program. She noted that partnering would extend the KDP's ability to advertise in a more timely and cost efficient manner. She outlined some of her committee's ideas such as merchant displays, authors book signing, English teacup display, gallery exhibits, an antique show and poetry reading. She said they are also considering partnering with the Sister City Association to add ethnic dance, dress and so forth. She noted that they would also partner with the City for bus transportation. She concluded that they need the full $5000, and that it would in fact cost more than that. Upon a question from Wangstad, McElheran said she expects to add about 5,000 people to the 30,000 who attend the Canterbury Faire and that about 10% of those would stay in hotel rooms. Softball Tournament Issues. Torgelson noted that people from an upcoming softball tournament in Kent had been contacting other cities regarding hotel rooms, and he had therefore discussed with the Parks Department the possibility of having some kind of contract marketing only the hotels in Kent. Vaca added that he would like to have all rooms in Kent booked before going to surrounding cities. Madison noted that on busy weekends, they may not have rooms available. Vaca said when a tournament is being planned, he would determine how many rooms are available at all Kent hotels and give that information to the the Parks Department, so that the dollars that go out will come back in in lodging. Madison noted that the hotels get information regarding large events in surrounding cities, and Torgelson noted that more tourism may be generated by the improvements to Enchanted Village in Federal Way. Dragon Boat Races. Torgelson noted that he has been contacted by Cheryl Corbin, Director of the Kent Lion's Cornucopia Festival Dragon Boat Race and Festival. He explained that they want to expand the Dragon Boat Races for 2004 and are looking for funding. He said he told her funding is extremely unlikely for 2003, but that the Board would consider it for 2004. Madison said they've had three or four teams stay with them, that it is a good event, and that she would like to look at it for the future. Torgelson agreed to keep in touch with Corbin. Other Business - Major Marketing Initiatives 2003. Copies of Major Marketing Initiatives 2003 were presented to Yingling and Torgelson by Madison. Madison explained that SeaTac and Tukwila have joined together for a bigger hotel marketing budget. Yingling opined that this may not impact Kent in a negative way. Torgelson said he would make copies of the report for everyone for the next meeting. Lodging Tax Advisory Committee April 1, 2003 Page Three Other Business - Sounder Soccer Stadium. Torgelson noted for Madison that the Sounders are presently hiring a project management consultant, and that ground would be broken in late 2004 or early 2005. Canterbury Canter Grant. Alexander moved to approve the $5,000 grant to the Kent Downtown Partnership for the Canterbury Canter. Wangstad seconded. Alexander voiced concern about filling the hotel rooms and about the fact that there is only $11,000 available in the budget. A short discussion on the budget was then held. Vaca said whether or not the grant is given, the number of rooms could be tracked for future use, if the event takes place. The motion to approve the grant then failed with no one in favor. Next Meeting. It was determined that the next meeting will be held on Tuesday, June 3rd at 2:30 p.m. Adjournment. The meeting adjourned at 3:31 p.m. Brenda Jacober, C City Clerk