HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 04/27/2015 Special Meeting
Lodging Tax Advisory Committee
April 27, 2015
Start Time 4:05 pm
Centennial Center Conference Room South
Committee Members Present: Chair Bill Boyce, Andrew Hutchison, Josh Bang, Tim Higgins,
Barbara Smith, David Kwok, John Casey
Others present: Ben Wolters, Pamela Mottram for Julie Pulliam, Ryan Hart, Erin McCullum and
Hilary Waite with Washington First Robotics
Chair Boyce called the meeting to order at 4:05 pm. Introductions were made. Chair Boyce
asked for any additions to the agenda. Seeing none, he called for approval of the Minutes.
1. Approval of Minutes
Barbara Smith made a motion which was seconded to pass the minutes of February 25, 2015.
An amendment was made to correct the spelling of 'John Case' to 'John Casey' on page 5 of
the minutes. Motion PASSED.
2. Budget Update — Ben Wolters
Economic and Community Development Director Ben Wolters provided a spread sheet of
Lodging Tax balances to date, submitted by Finance Director Aaron BeMiller. Wolters stated
that staff is projecting total revenues of $208,145 for the 2015 budget, with expenditures of
$188,500 to date and heading towards a year end fund balance of $391,000 after all the funds
staff has already allocated.
Wolters stated that within that allocation, a one-time city fee is added in the amount of
$10,000 that supports staff support of the LTAC (adopted as part of the citywide budget).
Staff maintains a tourism unallocated budget amount of $80,000 budget, out of which
$9,337.00 has been expended; $5,000 supported the robotics event earlier this year; and
$4,500 is allocated towards the tourism website per the committee's earlier decisions. The
tourism chamber contract is for $18,500. ShoWare's marketing budget is $60,000 this year
and branding activity is $20,000. We have just begun to draw from those funds per the
contract that was agreed to with Genesis Marketing. All of these items are supported within
that $188,000 budget.
3. ShoWare Marketing Budget Update
Wolters stated that we have $60,000 unallocated for ShoWare marketing. Previous
conversations on the part of the committee in regard to an interest in ShoWare, is to take a
more aggressive marketing approach for ShoWare and of Kent. Tim Higgins and staff have
come together to present a proposal.
ShoWare Center General Manager Tim Higgins stated that $60,000 has been allocated to
ShoWare Center annually. We have been asked to consider pulling empty shows. However,
those shows are far and few between. We are considering a long term approach on how to
identify and create awareness for ShoWare Center in Kent. Higgins distributed a document
showing ShoWare Center's branding campaign. He stated that staff feels we can approach the
marketing of ShoWare more like what is done in Seattle, Tacoma, and Puyallup with the use of
billboards and digital display amongst other ideas. This campaign shows that we gained
$30,000 in assets out of $60,000 with this campaign.
ShoWare Center Marketing Director Ryan Hart described the layout approach for the campaign
and the tagline that tied into the marketing efforts of the LTAC, the Visit Kent approach and
the efforts underway with Genesis uses the tagline "If you come for the show, stay in Kent".
Hart stated that this is the approach we are going to try and use throughout all of our
collateral materials and our advertising, that can be interpreted in a couple different areas and
adapted as needed. In meeting with Barbara Smith, we considered opportunities where we
can focus on dining 'you come for the show, dine in Kent', primarily it will be 'Come for the
show, stay in Kent"'. This proposal will focus primarily on out of home advertising. Hart stated
Lodging Tax Advisory Committee
Minutes of April 27, 2015
Page: 2
that through my research and expertise, commutes for people in this area are not any longer
than surrounding areas. During the summer months people like to get out and go on different
day trips. We are focusing our efforts in Seattle and Tacoma with high traffic and high
visibility, digital billboards and static signage. If you are an hotelier hopefully you will see the
return on your investment from overviewing although you may not see the advertising itself.
Some of our objectives are to increase web traffic through ShoWare Center.com which is our
main call to action in all of our advertising to visit this website.
Hart stated that he hopes to see about a 25% increase in traffic to ShoWare Center.com. The
website currently receives about 30,000 visitors monthly. The campaign will startup around
the summer months and continue through 2015. The billboards would be up for a few months
and we could work with our partners to possibly extend the timeframe.
Ticket sales from outside of Seattle and Tacoma will be tracked. This information will be
included in a reciprocal report generated at the end of 2015, beginning of 2016 to see how
many new people we are getting from the areas we have targeted to buy tickets. The long
term goal of the campaign is to focus more effort on Seattle, Tacoma and beyond as those
folks are more likely to come to Kent to eat and stay the night; ultimately to create more
overnight stays in Kent in the long term.
Long term goals include digital advertising and embracing some grass roots elements; such as
enlisting a couple companies out of Seattle and Tacoma to distribute 150-200 posters on a
monthly basis to various coffee shops and other venues throughout the local region.
There has been talk about using the $60,000 for one specific event, however, those events
are not 'off the shelve' events. We believe that our current efforts will create heads and beds -
the ultimate goal of the committee and the funds that we use. It may not be quite as
quantifiable and tangible on the spot. Long term we believe that our marketing strategy will
generate more heads and beds and we think that it is important for the future of the building;
that we market ShoWare in a way that will get more people out for events, which in turn will
get more heads and beds.
Best Western Hotelier Andrew Hutchison stated that he would like to see Kent become more
successful. Hutchison stated that he recently realized that people aren't coming to a town for
the hotel but rather for an event, suggesting that funding would be best used to market and
draw people to events from surrounding areas such as Seattle and Tacoma, and not focus on
the venue.
Hart stated that we will draw more people to buy tickets by promoting events. We run into
people from Seattle and Tacoma that are not familiar with the venue. The event is important
and we are looking for more awareness in those areas. If we conducted an awareness and
branding campaign; and we were able to get more people out for shows, we would have more
successful shows, which generate more successful shows, we will get more calls to book more
acts here when we sell more tickets and promoters see that we are doing well to book the
event.
Higgins stated that recognition can create more events, stating that it is his belief that it is a
good use of funds to look for events. We are competing against 24 venues and need to build
awareness. This comes from a marketing perspective.
Success breeds success. We have seen it with our country shows. Because of our reputation,
things are snowballing. This is something where we believe that we can come back next year
and look at this, quantify it at some point, and receive a 25% return in our data base. We
believe this is a good use of the funds at this point in time. Getting that event right now is
what is going to get the heads and beds, such as the Skaters of America of the World, are the
events that draw people from out of town. Higgins stated that we will look at ways to market
this facility with an awareness campaign.
Lodging Tax Advisory Committee
Minutes of April 27, 2015
Page: 3
Higgins stated that we are competing against Key-Arena, Everett, Comcast, Tacoma Dome;
and the casinos, 24 vendors within a fifty mile radius. We are asked where ShoWare Center is.
It is disheartening, but has made us think about how we can create awareness. We have
looked at spending $25,000 out of our budget, because we believe in the importance of this.
Josh Bang suggested that graphics should be used, including shots from shows etc. that would
draw attention to ShoWare with Hart stating that they could create a mockup. Bang stated
that some posters have been created that could be used for the website.
Wolters stated that there are issues associated with licensing costs to include graphics.
John Casey stated that this is a good way to spend money and leans towards supporting using
funds to advertise through Pierce transit. He reinforced the use of pierce transit shuttle people
to events. Casey suggested including Snohomish County. The question is would transit be
used to get more people to events.
Kent Downtown Partnership Director Barbara Smith questioned if advertising would be specific
to events. Higgins stated that there is a campaign for every event, including a calendar of
events.
Hart stated that bus advertising could be broken into a couple separate campaigns; with one
focusing on specific events, and one with a broader perspective to promote ShoWare Center.
David Kwok concurred with Hutchison that people come to town for special events. He stated
that billboards are great if they draw people. However, when you are driving you are lucky if
you can read four letters. I chair a regional marketing committee and from a business
standpoint, we work to capture the attention of people from 250 miles out and beyond. We
should not be looking to target Olympia and Pierce County. We need to extend our search to
at least 100-250 miles away to draw people to stay in Kent.
Bang stated that Seattle has a website where they are able to place hotel images up on their
site. In response Hart stated that a button could be added to our website page to make the
hotel site more prominent.
Smith stated that since we no longer utilize Seattle Southside, Kent needs to promote free
parking and dining venues.
Boyce stated that we need to strike a balance. Heads and beds are crucial and ShoWare is
crucial. Boyce opined that advertising should be attacked through various avenues. There are
several ways we can validate and monitor the website.
Wolters addressed Smith's point, in that a conscious decision was made to move away from
Seattle South Side to market locally; to come back and to refine what we have proposed. Ben
acknowledged Kwok's remark about reaching out further with Kwok stating that perhaps
hoteliers could create getaway packages such as 'an event and stay package'.
Wolters stated that under State Law, ShoWare is a tourism facility and as such falls within the
statutes of state mandates. We are operating within those state allowed statutes.
Smith voiced support in getting the word out about ShoWare Center. We need to protect our
investment. Wolters stated that the city has and can advertise on the tail end of buses with
Kwok and Hutchison questioning the feasibility of billboard and rear-end bus advertising.
`-� Hart responded to questions from the committee stating that web marketing includes
Facebook. Boyce expressed interest in utilizing flashing billboards as they catch the eye.
Lodging Tax Advisory Committee
Minutes of April 27, 2015
Page: 4
Kwok stated that we need to place our efforts and funding into resources that will build Kent
and need to figure out how to put heads to beds. Don't support ShoWare as an anchor; but as
an event center.
Hutchison questioned if this committee could meet outside this venue. There is value in
stakeholder's input. Wolters said that he is open to holding another meeting stating that this
is an advisory committee. We should be talking amongst ourselves and if you have ideas on
marketing Kent; if a group wants to tackle this through an Ad Hoc workshop group; we could
bring any ideas back to the Committee of Whole.
The Committee voiced their support to hold a workshop to consider ideas to promote and
market Kent and how funding should be allocated. The workshop was set to be held on May
21st at 4 pm. Smith stated she would be unavailable to attend due to other commitments.
Wolters stated that a work group would be appropriate. Staff will take today's feedback and
return to the Committee with some new strategy. Wolters invited the committee to send an
email to either Boyce or himself with any ideas. Wolters stated that two strategies include:
Indirect'-promote business to generate new shows in turn building a case to get new shows;
and buying events/shows that would generate more heads and beds. Wolters stated that we
will refine our feedback and return to the committee with updates.
4. Washington FIRST Robotics- Report Back
Erin McCallum, President, Washington FIRST Robotics (WFR) stated that she has a PowerPoint
presentation that she will submit to staff following this meeting which represents ShoWare
Center.
McCallum stated that on Saturday, January 31st Kent ShoWare Center hosted WFR stated
championships for FIRST LEGO League and FIRST Tech Challenge. Mayor Cooke gave a
presentation to school board members. WFR focuses on science, technology, engineering, and
math for 6-18 year olds. Students learn about life skills.
McCallum stated that there are 1,052 teams across Washington State with Kent as the
epicenter geographically. There is state competition with 153 events per year, 2,500
volunteers across the state, with up to 14 mentors per team; On January 31st, 30 teams were
involved with the first Lego League and 32 teams (15 students per team) were involved with
the first technical challenge. Teams came from Surry and BC, Seattle, Bellevue, Olympia and
Mt Vernon creating stays for the local hoteliers.
WFR has been promoted through ShoWare who has been a great ambassador. We have
developed a message for the marquee and for marketing WFR, which will begin to build
awareness. The CAMPS Center worked with us to brand awareness within the South King
County area.
Six month competitions run from September through April of each year. In working with
Andrea Keikkala with the Chamber of Commerce through their website, we have conducted a
webinar explaining where teams can stay, eat, be entertained, and find recreational
opportunities. McCallum stated she is optimistic and recognizes that Kent has a lot going for
it; though we have to brand that fact. Shows make people want to come to Kent. We need
people to know there is a venue in Kent; such as the first Lego League and promote that
venue for next year through advertising, perhaps adding "explore first robotic..."
Historically these events have been held in High Schools or Colleges but those schools do not
have the funding available to host these events. It is our hope to find groups who would like
to support and fund these events by getting the word out about the benefits of these events.
McCullum stated that they could potentially draw teams from Spokane which is lead by
volunteers. She stated that Kent should be branded as a technology hub.
Lodging Tax Advisory Committee
Minutes of April 27, 2015
Page: 5
McCullum announced that a 'Geeks Gala' event is scheduled for May 29th that will include all
high school teams across Washington and Oregon. We will partner with hotels and will place a
blurb on the Visit Kent website that states "Need a place to stay"; that will draw people to the
hotels in Kent. Wolters stated that staff will look for another vision in response to Erin's
remarks.
McCullum stated that although ShoWare provides concessions, we have been allowed to bring
in food. Pacific Northwest Championships was held in Portland's Memorial Coliseum with
40,000 people in attendance. Wolters asked McCullum to provide an electronic copy of the
PowerPoint presentation to pass on to the Committee members.
Wolters announced that the committee will be given a copy of the WFR Web report marketing
recap document. Genesis is working and more reports will be forthcoming.
Wolters announced that the Holiday Inn Express is coming to Kent located west of the 167.
4. Steve Turcotte Republic Services Funding Request Application
Higgins presented Turcotte's submittal requesting funding in the amount of $5,000. Higgins
stated that the funds will support several basketball events held at the ShoWare Center.
Events include high school teams, '3 on 3' event (over 150 teams), ShoWare Shootout, King
Showcase and Les Schwab Kent Shootout. Funding supports the purchase of new baskets,
balls, staffing and food expenses, banners, signs, t-shirts and insurance costs. It is projected
that a minimum of six high school teams will stay in local hotels creating up to 45-50 room
nights. Stays will be tracked by working with the hotels on how many teams are staying, how
many players and how many room nights. Work is underway to potentially draw teams in
from as far away as Montana.
Boyce: supports this funding request. From here forward any submitters are to report to the
Committee in person with the committee members concurring.
With no further discussion, Andrew moved and John seconded a motion to approve
the funding request application in the amount of $5,000 in support of Steve
Turcotte, Republic Services, Game Time Events. Motion PASSED.
Boyce reminded everyone that a workshop will be held at 4 pm on May 21st to discuss on how
to better promote Kent and make ShoWare successful.
Good of the order — Nothing
Assignments for next meeting — Nothing
Special Workshop Meeting — May 21, 2015, 4 pm Centennial North & South
Next Regular Meeting Date — June 22, 2015 at 4 pm Centennial North & South
(Committee will meet every other month on the 4t" Monday of the month at 4 pm.)
Adiournment - The meeting was adjourned by Chair Bill Boyce, at 5:45 pm.
Submitted by Pamela Mottra
On behalf of Julie Pulliam,
Lodging Tax Secretary