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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 07/19/2012 4 Lodging Tax Advisory Committee July 19, 2012 Start Time 4:00 pm Centennial Conference Room 402 1. Introductions Committee Members Present: Jamie Perry, Kent City Council; Beth Sylves. ShoWare Center; John Casey, Curran Law Firm; Barbara Smith, Executive Director Kent Downtown Partnership (KDP); Blane Webber, General Manager Marriott Towne Place Suites; Andrew Hutchison, Manager Best Western Plaza by the Green; Others Present: Kurt Hanson, Kent Economic Development Manager; Pamela Mottram, Admin Secretary, Kent Economic & Community Development; Robert Nachlinger, Kent Finance Director. Guests: Lori Hogan, Recreational and Cultural Superintendant, Kent Parks and Community Services; Doug Siegert, Kent Parks Dept, Recreation Manager, Kent Commons; David Heldt, Kent Parks Dept, Program Coordinator, Kent Commons; Andrea Keikkala, Executive Director, Kent Chamber of Commerce. Chair Jamie Perry called the meeting to order at 4:00 pm. Committee Member Smith MOVED and Committee Member Sylves SECONDED a Motion to APPROVE the minutes of May 23, 2012. Motion PASSED. 2. Reports Seattle Southside: Katherine Kertzman was not in attendance. KDP: Smith submitted a report that listed the efforts KDP has been working towards to promote tourism and draw people to downtown. Some of those efforts included the placement of 5 new black benches, ceramic planters and 72 hanging baskets; the production of a new website to better sell the downtown and businesses; the sponsoring of festivals and events in conjunction with Kent Lions and local businesses; placing banners throughout downtown; placing a brochure rack at the Sounder train station for dining and shopping guides to Downtown; and researching funding options for continued efforts to light up' downtown. Kent Chamber of Commerce: Keikkala reported that from January through April 2012 staff handed out 28 relocation guides averaging 7 per month, dropped off 500 guides to local hotels and restaurants, received 250 tourism inquiries averaging 62 per month, had 72 walk-ins averaging 18 per month, received 160 phone calls averaging 40 per month, received 18 email inquiries averaging 5 per month and received 30 hotel inquiries averaging 6 per month. She noted that inquiries have increased 50% since the announcement of Skate America. Keikkala stated that the Chambers has partnered with Skate America to promote a landing page for the Chamber's website that includes a Welcome Skate America feature guiding to information on Kent and highlighting businesses, restaurants and hotels; and is working collaboratively to distribute welcome packages to Kent businesses. Keikkala stated that the 2013 directory is expanded from 12 to 16 editorial pages with a newly designed cover. ShoWare Center: Sylves stated that Kent has partnered with ShoWare to bring the Tacoma Legislative Coalition South Sound Team to ShoWare to hold their debate on October 4t" Staff is targeting the governor's race and hope to get the State Auditor, Secretary of State, and Attorney General to hold state level debates there. ShoWare is launching a business expo October 3rd with 90 vendor booths and 10-12 restaurants. She noted that 2500 people have previously attended this event. ShoWare is looking at reshaping the Find It In Kent Campaign' evaluating how best to market it. Sylves stated that she has been working with Perry and events people to launch a Sports Commission and communicating with businesses about the importance of advertising Skate 5 Lodging Tax Advisory Committee Minutes of July 19, 2012 America by using window decals, distributing welcome packages, and offering special promotions. Sylves stated that ShoWare hosted two classic R&B concerts which drew nearly 8,000 guests generating room nights from the new edition shows. In June ShoWare welcomed 41,544 guests to 13 graduation ceremonies. A graduation ceremony is scheduled August 2"d for Renton Technical College. Sylves stated that Council President Dennis Higgins was featured July 2"d on Comcast Newsmakers talking about Skate America's impact on Kent & South King County. This telecast was aired in the western region of the US and in Canada. Sylves stated that staff set up basketball hoops at 1st & Gowe in front of KDP for a 3-on-3 demonstration which generated lots of interest; and staff distributed 1,500 Skate America hand-clappers during Cornucopia Days and at the Riverbend 5K run. Sylves stated that staff facilitated an economic impact study and conducted intercept surveys at graduations & concerts. Survey questionnaires were emailed to various groups with over 2000 responses received. The Northwest Basketball Association Seattle Storm will hold a 3-on-3 tournament Saturday and Sunday July 28th and 29th,They will conduct clinics. July 315t ShoWare will conduct a Job Fair that could generate job search based tourism. Sylves announced that on August loth at the conclusion of the Summer Olympics, NBC's Today Show will broadcast information on the Winter Olympics that will include Kent. Sylves submitted a data report that captures a percentage of ticketed event sales based on geographic location and specific events (not including cash sales) citing that the highest percentage of sales were generated from South King County. Seattle Southside (continued): Hutchison stated that he would contact the Kent Hoteliers and Seattle Southside to schedule a meeting regarding the Tourism Promote Area (TPA) as a meeting has not been held yet. He noted that Kent has 11 hotels with 61 rooms or more. Perry opined whether or not this committee should continue to fund this group with Hanson stating that the hoteliers should be gauged before the Board takes further action. Hanson stated that Economic Development will set up the meeting with the hoteliers and Seattle Southside. Webber stated that Tukwila and Sea Tac seem ready to move forward with the TPA although they may not have petitions signed yet. Hanson stated that the Committee has the authority to give 30-day notice terminating the City's contract with Seattle Southside. Webber stated that it would benefit Kent to retain that relationship as Kent's location on the Kent/Tukwila border would allow opportunities to be grouped in with South Center and Tukwila. Hutchison stated that our group feels that some of the funding now in the hands of the hotels should be shared with the State Tourism Promotion Department. Hanson stated that the hoteliers will be invited to the September 20th meeting to discuss how Kent will benefit through the TPA. 3. Old Business Update on the Economic Impact Study: Hanson stated that he spoke with the Community Attributes Consultant Chris and that a draft report will be distributed to this Committee the week of August 6th, Hanson stated that 21 business interviews (including historic downtown) have been completed with the anticipation to five to ten more interviews. Two intercept surveys (taken at graduations and new edition concerts) were completed reaching more than 400 people. Hanson stated that he has personally received over 1000 email responses with the number reaching over 2000 to date as responses continue to come in daily. Hanson acknowledged the Committee's $5,000 donation and stating that the cost of this study is $36,000. 6 Lodging Tax Advisory Committee Minutes of July 19, 2012 Update on the Parks Fence: Heldt stated that Kent has held many tournaments over the years with the Parks Department continually receiving requests for information on area restaurants and hotels to accommodate tournament teams and promoters for events held in the Kent Commons Community Center or within Kent. Heldt submitted a report which accurately portrays all tournament events, trade shows and special events held in Kent with the exception of national tournaments. Seattle Southside has benefited promoters over the years by providing them with funding to market their programs. Heldt stated that a Men's double Softball tournament was held in June (24 teams) requiring 577 room nights booked with a high percentage of those rooms booked in Kent over a four day swing. Hotels around Russell Road were booked for those tournaments. Heldt stated that Kent hosted the Northwest Regional Babe Ruth Tournament July 12th — 16th at Cartwright field consisting of 10 boy's teams, with 81 rooms booked for that tournament for people from Oregon, Idaho, Montana and Canada. Heldt stated that the Committee's $10,000 donation paid for the majority of the cost of the portable fencing at the service club ball fields and Russell Road Park fields. Heldt stated that the Parks Department has recouped a portion of the cost of by charging for setup and breakdown of the fields. Heldt stated that the youth program promoter Jim Donner is working to bring a national sports team to Kent in 2014 for ages 14 and under. Hogan thanked the Committee for supporting the fencing which has been integral in terms of enticing event sports organizers to Kent. She stated that Dave has developed a strong relationship with various sanctioning bodies and event organizers, bringing tournaments to Kent whether they're soft ball, slow pitch, fast pitch, or soccer. Hogan stated that she believes this group can play a key role in bringing those teams to town. Sports participation in Kent has a significant economic impact on the region and we want to continue to build those partnerships and relationships. Perry asked what the Sports Commission Committee could do to better support the Parks Department in their ability to do what they are already doing. 4. New Business Draft Funding Request Forms: Nachlinger stated that the funding budget deadline is December 315t of each year. Hanson distributed a first draft copy of the funding request form. He stated that this form includes (1) questions on how their request meshes with their organization, (2) includes the vision, mission and objectives (tourism and hotel stays, strategic partnerships, branding, and the sports commission) of the Committee. The form includes a minimum grant amount of $250.00 with Kurt questioning whether or not minimum or maximum grant amounts should be included on the form. Discussion ensued on the issues of whether or not to include language stipulating funding limits or to establish deadline dates for submittal. Perry and Sylves voiced support to implement deadline dates with Sylves recommending language that would allow for `exceptions to the rule' submittals. Hanson suggested language to indicate "you will have a better chance of receiving your funding if you submit your application by this date" with Perry suggesting that "an exception will be accepted only in extraordinary circumstances". Hanson stated that this form will be housed on the City's website and staff will be able to dispense it to tournament organizers and other events we see through ShoWare. Hanson stated that he will return with a final draft at the September 201h meeting for the Committee to consider. Sports Commission: Sylves reported that an Ad Hoc Committee has been formed and has held two meetings with Andrea Keikkala, Dawn Colston and Jeff Watling in attendance to discuss starting a Sports Commission. The Committee has drafted a mission statement. 7 Lodging Tax Advisory Committee Minutes of July 19, 2012 Sylves stated that the Ad Hoc Committee will use the Parks Facilities Master List of Tournaments and Special Events to compile information for event producers of businesses in town that would benefit from their presence. This committee wants to look for opportunities to bring new events to Kent and to fill in any down time in the parks or school district facilities with those events that occur locally or regionally. The Committee has discussed hosting a reception; inviting tournament directors and perhaps potential corporate partners from within the community. Sylves stated that if the Committee implements a sports commission we would want to attend trade shows nationally in an attempt to attract national and regional events to the area. She stated that all of that has a cost associated and a nice way to help cover some of those costs is corporate partnerships. Sylves recommended putting together a list of businesses and avid community supporters, including a section inviting corporate, tournament directors and people involved with Skate America that would benefit from the increased foot traffic and visitors; as this will be a very high profile event. Perry stated that the National Association of Sports Commission holds a yearly event where you can go to learn what it means to be a sports commission, how to set up a sports commission, where you set up a booth to promote and invite teams to your city. Communications: Perry opened the floor for input from the Committee on what they should be doing next with respect to strategic goals and establishing new partnerships. Keikkala stated that Michelle Wilmot is actively working on Kent's website and development of the community calendar. Branding: Perry stated that she would like the Committee to move toward 'Branding' Kent. Smith stated that it is difficult to develop marketing materials for downtown Kent as the city is still not known for anything specific. In response to Perry, Smith stated that she believes the capacity is there to proceed with 'branding'. She stated that she has two board members who currently contribute money and that KDP could possibly use the B & O program as a resource for revitalizing downtown and branding Kent. As long as the KDP is trying to revitalize downtown through the main street program, the KDP can get businesses involved where they can get 75% back on their tax credit for next year and be able to get a write-off for the full amount on their 2012 income tax. Perry stated that she would like the Committee to forge a plan, to evaluate how the lodging tax is used, determine what KDP can contribute; then bring in folks to give proposals on what they can do, what it would cost to brand Kent. Smith stated that the KDP's executive board will hold a meeting on Monday where she will see if she can get a commitment from two or three of the board members to take this on and will report back to the Committee. Perry stated that this Committee could hold a mini-summit with potential partners to determine what they can commit to, how much they can fund and go from there. Nachlinger suggested looking at the Service Clubs. Hanson stated that he along with Julie would commit to organizing a mini-summit meeting with Perry agreeing that the meeting would be held separately from the September 20th committee meeting towards the end of August after the 25tn Skate America: Beth Sylves distributed a couple reports that showed levels of sales for the Skate America event. She reported that 1300 all session passes have been sold, with purchases made from Japan, Canada and numerous states. This was accomplished with zero marketing or money spent on advertising for this event. All marketing has occurred through US Figure Skating announcements with regular updates to skating clubs. Advertising and marketing efforts will begin in Kent, Vancouver BC, nationally and internationally on August 10th. Sylves stated that Skate America approached Kent in January. At that time they were struggling to find a venue for their event. Kent was receptive. ShoWare Center was a good normal two year bid location to host this event and Kent was not required to undergo the y 8 Lodging Tax Advisory Committee Minutes of July 19, 2012 process with a commitment of funding from the corporate community to host this event. She stated that normally the organizer has one to two years to secure the corporate support to fund everything associated with this event. It is going to be a challenge to reach the financial goals for this even, however it will not jeopardize the event in any way. What could impact Kent, is the ongoing impression that US Figuring Skating has on our community. Sylves stated that as of now figure skating does not have an entity in South King County or this community supporting them financially. Sylves stated that there are benefits associated with the $2,500 or $5,000 sponsorships and felt that if the member organizations budgets would allow them to offer support, it would send a powerful message to Skate America. Sylves stated that at the Sports Commission meeting there was discussion about holding a hospitality event, inviting tournament and corporate directors with US Figure Skating's approval. If Kent supports the event with a financial contribution that makes that hospitality event more likely and Kent would have ownership in the event and more control over the marketing and advertising. She stated that a workshop may be held early August to consider how to deploy information out on this event. She stated that a plan is in place to involve the school districts, to have different schools adopt a county, support the different athletes and cultures. Perry questioned the committee about what level of sponsorship the Committee should consider with Hanson stating that the Committee's end of year fund balance will be $118,000. Nachlinger stated that incoming revenues will increase about $10,000 over budget. After deliberating on how much the Committee should support Committee member Hutchinson Moved to support a donation amount of $10,000 with Committee member Casey Seconding the Motion. Motion Carried. 5. Budget Nachlinger stated that he has not put together a 2013-2014 budget report as he was seeking input from the committee before doing so. He stated that he could easily put together Seattle Southside, tourism unallocated and tourism chamber again, but did not know if the committee wanted to take a different route. Perry stated that the Committee needs to discuss this at their next meeting with Seattle Southside in attendance. The numbers will not change but allocations might. Nachlinger stated that he anticipates the revenue budget to increase about $10,000 with incoming revenue at about $200,000. 6. For the Good Of the Order Kurt stated that the Operations Committee cleared David Kwok, John Casey and Beth Sylves for reappointment to the Lodging Tax Advisory Committee on July 18t" and is scheduled to go to City Council on August 7tn on the Consent Calendar. 7. Assignments for the Next Meeting Perry stated that the major focus for the next meeting will be to evaluate what is going on with Seattle Southside, to review what the budget is going to look like for next year, assess where we are with branding and communications. 8. Next Meeting Date: September 20, 2012 The meeting was adjourned at 5:40 pm.