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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 04/18/2011 Lodging Tax Advisory Committee April 18, 2011 Start Time 2:00 pm Centennial North & South Conference Rooms Committee Members Present: Les Thomas, Chair, Barbara Smith, Andrew Hutchinson, David Kwok, Beth Sylves, John Casey, Aaron Watne Others present: Kurt Hanson, Renee Cameron, on behalf of Julie Pulliam Guest: Katherine Kertzman (SSVS), Mike Raven (Seattle/Tacoma-ASA), Glenn Hull (Seattle/Tacoma-ASA), Steve Turcotte (ShoWare Shootout), John Boesche - Operations Manager (Seattle Sports Commission) Les Thomas called the meeting to order at 2:10 pm and introductions were made. Approval of minutes — Smith moved to approve the minutes of the February 15, 2011 meeting, Sylves seconded, Motion carries. Chamber of Commerce No report KDP — Barbara Smith Barbara Smith provided an update regarding the Kent Downtown Partnership and upcoming events. KDP is working on an upcoming car show scheduled for August 27t" at Railroad Avenue; Dinner Auction is on June 18t" at the Kent Senior Activity Center with the continued sports them; and the Kent Downtown Breakfast Hour on May 6t" at the ShoWare Center, which includes a free breakfast. Broke an attendance record at the last one in February. Use it as an opportunity to share what is going on in Kent and highlights economic development occurring in the City of Kent. Just completed a workshop called Free Marketing & Branding with Roger Brooks. Advised that it was a great workshop if you get an opportunity to attend one and provided lots of enthusiasm and it's exciting and helps communities in becoming a destination. Also, Smith advised that Kent is becoming known for dragonflies in downtown Kent. Dragonfly is now the State of Washington's insect. KDP has taken ownership of it as it was originated in Kent. They now have an artist who is creating some artistic dragonflies for the KPD and they will begin to appear around downtown Kent. Some are large pieces made by donations and from a variety of different artist. They are very affordable at $50 and can be bought and placed on businesses throughout Kent. 2011 Budget Update No report Seattle Southside-Katherine Kertzman Katherine Kertzman provided a brief budget update and handout and overview for the first quarter of 2011. Completed their tourism networking meeting with 154 attendees. Most successful to date. Significant increases in amount of people Lodging Tax Advisory Committee Minutes of April 18, 2011 Page: 2 participating with the social media efforts. Staff is working with the Seattle Sports Commission to host a booth at the 2012 Olympic Time Trials. Also hosting a booth at the DesMoines Farmers Market on opening day. Would also be happy to host at booth at Kent's Farmer's Market, it requested. Have developed new trade show banners. Implemented an intern volunteer program. Visitors Center opens Memorial Day weekend. Have been able to secure additional airport directional signage with 8 different kiosks in baggage claim area, as well as directional signage on roadway as well as process of signage for new car rental facility. Significant increase in walk-in traffic to the visitors center, which has been exciting. Focus for last six months had significant increase in web visits as SSVC launched new website late last year. Going to host another military reunions. Significant increase for request for FamTour. Another big push is the Shop Like a Rockstar contest. Process of developing a new map and working with KDP which highlighting tourism venues. It will be an illustration, not a road map. Printing and designing a new meeting planner's facility list. Working for the third year of the Rock and Roll Marathon. Year to date have distributed 6 press releases, 26 articles written due to the press releases and really focusing on PR. Katherine's primary focus in the past six months has been on the closure of the Washington State Tourism Office and trying to make sure they transition the marketing assets the State currently owns to a private 501(c)(6). Softball Request Glenn Hull, an umpire with the Amatuer Softball Association ("ASA"), and Mike Raven, ASA, addressed the Committee regarding applying for a grant from City of Kent Lodging Tax Committee from the tourism enhancement funds in the amount of $4,500-$5,000, to assist as Acers Fastpitch Organization for the ASA Girls 16A Western National Softball Tournament to be held August 1st-7th. There was some concern from the Kent Hotels as during this time is when they don't have concerns about filling their hotels, and is actually one of their busiest weekends due to SeaFair and on this request as they are going to get any stays from it? ASA hired an agency to book the rooms for the, hotels have been contracted in Seattle. The numbers should be good about 1000 people plus family members. The ASA has a hold on ShoWare for an opening ceremony. Want to create an atmosphere that entices ASA specifically to Kent and our region. One way is to make the opening ceremony and the fields top notch. One way is to work with ShoWare to bring in a national recording artist. It's a little complicated however. Top recording artist fees are right at $8,500 mark. One artist holds #1 spot on the Billboards Country music. Probably won't get for $8,500 any more, but that is the type of talent they are seeking. Hull believes that the $4,500-$5,000 range could help them tremendously. Hull advised that they have seen a 20-30% reduction in the amount of teams coming to this area. Result of competing organizations in California that are attracting teams closer to home, reducing it down to 70 teams basically In turn, what ASA has done is eliminated the hotels that are outside of Kent, so the 20-30% are the hotels that are not in the area, they really want to focus on hotels in Kent and bring the lodging tax dollars to Kent. Mike Raven, ASA, advised that in 2006 they Lodging Tax Advisory Committee Minutes of April 18, 2011 Page: 3 brought 138 teams, it was huge. This was the largest national tournament. This is now a smaller event, however, what they have learned when they bring these tournaments to Kent, they know that the Parks Department for the City of Kent is the best and they will be able to bring Kent now a smaller event. It is important to them to develop a relationship developed with the Parks Department. The money gained from this will all be put back into bringing national tournaments. Committee wanted to clarify their numbers. The flow would peek on Sunday/Monday. The economic impact in this area in 2006 was probably $2-3 million dollars. The Seattle Sports Commission and Seattle Southside were involved in that effort as well. Committee inquired about what the funds would be used for. Hull advised that in essence, any funds received from the Lodging Tax would be used for the Opening Ceremonies which is critical. They hope to use French Field for the opening ceremony. Another option would be to enhance the fields if the Parks do not have the resources for fencing. Using two fields in Kent, and a possible third one in Federal Way. Thomas inquired if they were interested in using the Service Club Ballfields, however, Hull advised that they are already committed. Volunteers are very important and the service clubs would definitely help there. Would really like to work and coordinate with the vendors this year. In the Federal Way complex they have approached the US Army to partner with the Wounded Warrior as a fundraising for their ceremony. Thomas advised the Services Clubs, such as Kiwanis. assist with French Fields. Hanson inquired that in 2006 you had an upward of 140 teams, and the guesstimate for these year would be 70 teams. The difference being that was a national tournament. This will be a much smaller venue. The unallocated amount in 2011 is a $20,000 budget. So committee understands, we have a full budget to use at your discretion. Kertzman inquired about whether there would be room rebate and how can we be sure that teams won't make reservations outside of the block. ASA advised they can't. Been told they are guaranteeing the lowest prices. Kertzman wanted to know if there was ever a way that the association could figure out to prove that you stayed at a hotel that would penalize that team. Yes, they have that the Stay and Play. We haven't tried that yet, but they do have options that they would like to try sometime. Once the tournament is complete they plan to submit a spreadsheet to show what all happened this year, and to show if they come back with the request for next year to see how successful things went. Dates for the tournament are August 1-71h. The hotels are concerned because it is a busy weekend. Future tournaments they want to provide flexibility in dates. Thomas further inquired, what is Federal Way putting into it. Hull advised that they have not yet put in a request to Federal Way as they haven't focused on any hotels in Federal Way. Russell Road Park is the main field and with Best Western right there. Please let Jeff Watling know the nice compliment paid to the Parks Department. Smith inquired as to how much they were asking for. Hull advised $4,500-$5,000. Hutchinson stated that his hotel is contracted for every night to rebate $5.00 to the association, not sure what the contracts are with the other hotels, so we know it's a valuable effect and want to support it and bring it to Kent, however, since there is already a level of support there, but we should all know that there is already something on the table. The applicants were dismissed for discussion of the request. Kwok asked that they drop all other city hotels not in Kent. Hull advised that yes, Lodging Tax Advisory Committee Minutes of April 18, 2011 Page: 4 they have already advised HVC to reduce the 700 rooms nights by 30% and specifically instructed to go distance from Russell Field. Specifically in Auburn by Emerald Down and Tacoma. Thomas stated, so basically, it is Kent only is what he is saying. Hull advised that he will provide full disclosure of his lists. He understands the challenges of this committee and he respects that. Discussion by the Committee: Do we want to do something? Watne felt that $4,500- $5,000 for an opening ceremony outdoors at French Field with an entertainer is going to cost twice that much. Smith commented that otherwise it would provide for additional fencing, it all is coming out of the same pot. Hanson reviewed old notes that consensus from the hotels was that they are all ready good and busy during that time. Is there a time when there is nexus in the market. Last year provide $5,000 with 142 teams. Smith, maybe it is helpful this year as it SeaFair and a racing weekend but it is an investment in bringing the other teams in. If we could change the dates in the future and not duplicate the efforts. It is more than just hotel rooms bringing money back into the lodging tax as it puts money back into restaurants. Hanson, are the hoteliers satisfied with the request to change dates? That's a decision. Hutchinson feels like the hotels are supporting the rebate makes him feel they are double dipping. Kertzman, when it causes you to arrange your rates so that you are less competitive during a time when you can get your maximum rate. Kwok, but instead, now if they are asking for the best available rate, then you limit yourself, when you only have 3-4 months to survive the rest of the year. The positive though, is that they would be dropping the block with the rest of the cities that that is a positive thing, cause otherwise it doesn't make sense to support it as a whole. Hutchinson inquired of Watne if he has a contract with them. Watne advised yes, with HVC who wants 10% on top of that. Kwok they are asking everyone to sign off on a rebate plus 10% commission. That's why we didn't sign off. Kwok, I can sell my room for $204.00 so why should I sell for $100.00? From a business standpoint it doesn't make sense. Hutchinson, I signed the contract at the low rate. I think it's important to support at bringing a western national event to our community. That's the plus side to his . This year might be at a high demand time, however, if they come a week later next year, then he'll be dancing. Smith, can't we say next year that we want you to work through SSVS. That is something they can do that they have control over. Previously they had such a fiasco getting their rebate back from the hotels and they lost a lot of money. Kertzman, but that is their responsibility to make sure that they stay within the group block to get that rebate. Kwok, we cannot prevent a team from going on Expedia or Hotels.com from booking. Chair Thomas asked if there was a motion on the table. Hutchinson moved to offer $2,500. Watne seconded, Motion carried. Lodging Tax Advisory Committee Minutes of April 18, 2011 Page: 5 ShoWare Shoot-out Request Steve Turcotte of the ShoWare Shootout and John Boesche, Operations Manager for Seattle Sports Commission addressed the Committee regarding applying for a grant from City of Kent Lodging Tax Committee in the amount of $5,000, to assist with purchasing at least four more top-of-the-line hoops/baskets for the ShoWare Shootout South King County's Premier 3 on 3 event to be held July 30-31, 2011. Allied Waste is their main supporter, as well as Subway, who will be promoting the event throughout the State of Washington. Boesche advised that, yes, this is intended to be a statewide event. They want to provide 30 of the best run sporting events around the state. With a staff of 3 we need to find the tournament directors that allow us to do that. If Seattle Sports Commission can help market and promote Steve's tournament to a broader audience he'll have more teams here in the area and hopefully a lot better for you folks too. Turcotte, if we can put more in the hotels too, then make it a better event. Smith, so the amount of room nights would be Friday and Saturday nights, July 30t" and 315t. Hanson, again these are the dates that weren't realistic on the HVC calendar. The committee inquired as to how much they were asking for. Turcotte is requesting $5,000.00. Watne, what were your revenues last year? Turcotte advise that they about $3,000-3,500.00. Registration per team is $75.00 this year. Thomas stated that that if this develops, like it did in Spokane, it will be a major major event. Kertzman advised that as a matter of full disclosure SSVS already contributes $10,000 to Seattle Sports Commission, which is a 501(3)(c). Turcotte, there is no other 3 on 3 event in Western Washington. Smith, wants to know what the hoteliers feel. Kwok, knowing the event in Spokane, he thinks it is a very good event if we get to that point. Thomas we put in $5,000 last year, which we feel was a good commitment. Smith, but we also had a lot more money then. Again, there was some concern from the hoteliers about the group blocks being property utilized for the event. Want to make sure that it is easy and accessible. Kwok would like to have the data of each team where they are from. Turcotte advised that is not a problem. Thomas would like to see a balance sheet of what they have taken in and expenses to help any committee see the hard facts. Sylves inquired about the registration date as to once the teams have committed b by the entry deadline of July 20t", that local hoteliers could message to those teams via email to offer special rates and/or incentives. Boesche said there were a couple of different ways to provide this information. Kertzman advised that they will only list the Kent hotels. Hutchinson advised that they would like to find a weekend that they are not crying for business. Possibly the weekend after Labor Day. Turcotte advised that many of the coaches have advised this is a perfect time to host it. Thomas stated that we have always had nice weather during the 2nd week in July for Cornucopia. Sylves, are there are incentives we could offer the teams, like food and beverage, an incentive package we could work on to encourage people to stay. Kwok, most of the hotels are already offering complimentary breakfast. Sylves, something to offer that doesn't hurt your rates. Turcotte, knock on wood, but it keeps growing and just think of the Spokane level one of these days. Hanson, so as to the dates themselves, is there some shock if we keep moving the dates left and Lodging Tax Advisory Committee Minutes of April 18, 2011 Page: 6 right. Turcotte advised we can't for this year, but possibly looking toward next year. Thomas, work with Barbara Smith about using some of the courts downtown to close some streets. Have more visibility than just ShoWare Center parking lot. Thomas was open to a motion to see what type of support the Committee would like to provide. Smith stated that she would be willing to throw out $2,500, only because we don't have the budget they had last year. Smith was open for that to be changed. Thomas inquired if anyone wanted to do the same as last year. Sylves advised that the $5,000 was beneficial for the last year to purchase equipment, and they don't have the need for as much of the equipment last year. Thomas said he didn't hear that. He heard they needed more hoops, referees. Thomas would like to know when Turcotte needs to know by. Turcotte advised 2-3 weeks would be fine. Thomas called for the motion. Hutchinson stated that it would be more comfortable without the recipient in the room. Boesche provided information on the production and distribution of the Subway information brochures. Smith advised Turcotte that he should contact the Service Clubs to see if they would be willing to donate basketball hoops. Thomas excused the recipients. Kwok said he believes it is a good long term investment, however for the amount of money collected by receiving $50 per registration fee last year plus our contribution, he is receiving quite a profit. Smith, commented though that he also had to pay a lot out of pocket for food and other items. Smith and Kwok stated that in the long term, it is going to be great investment. Sylves, stated that Spokane is Spokane because they presented a consistent event year after year, even when small, and produced a quality events, good prizes, smooth, with good officiating, those are the reasons people and other teams will come back. Hutchinson inquired at what level are we responsible to hold up to certain deliverables to make sure they run a good event. Ultimately, there will have to be stipulations and conditions. Smith stated that when they register they should be able to ask where are you staying and for how long. Smith moved to offer $2,500 for the ShoWare Shootout. Sylves seconded, Motion carried. Next Meeting Date — June 20, 2011, @ 2 p.m., Centennial North & South Conference Rooms. Adjournment - The meeting was adjourned at 3:33 p.m. Renee Cameron, Substituting Lodging Tax Secretary