Lodging Tax Advisory Committee

City Hall City of Olympia 601 4th Avenue E Olympia, WA 98501 Contact: Cathie Butler Meeting Minutes 360.753.8361 Lodging Tax Advisory Committee Monday, October 21, 2013 2:00 PM Room 207 1. CALL TO ORDER Chair Hankins called the meeting to order at 2:00 p.m. 2. ROLL CALL Present: 5 - Chair Julie Hankins, Committee Member Nathan Allan, Committee Member Russell Carstensen, Committee Member Jack Kiley, and Committee Member Greg Taylor 3. BUSINESS ITEMS 3.A 13-0842 2014 Lodging Tax Funded Tourism Service Proposals and Information Mr. Kiley noted he is President of one of the applicant groups, the Washington State Senior Games. Communications Manager Cathie Butler reviewed the 2014 fund projection. She noted revenue was down earlier in the year and is beginning to pick up, although it’s not fully recovered. She said given the 2013 revenue trend and the state of flux of some hotels in Olympia, staff recommends a limit of $230,000 for 2014 lodging tax contracts, which is $20,000 less that the 2013 commitment. Ms. Butler reminded the Committee and applicants they will have to file an end-of-year report for 2014 designed by the State, consistent with reporting required in state law. She also reminded the Committee of the decision-making change in state law. The City Council still makes the final decision on use of the fund by accepting or not approving the Committee’s recommendations, but cannot add to or change the individual recommendations from the Lodging Tax Advisory Committee (LTAC). Applicants presented information for Committee consideration: Capital City Pride Festival, Anna Schlecht Mr. Taylor noted the Governor Hotel, which is the host hotel for the Pride Festival, may be closed for part of the year for renovation. He urged the Pride Festival to make immediate contact to line up rooms for next year. City of Olympia Page 1 Lodging Tax Advisory Committee Meeting Minutes October 21, 2013 Ms. Schlecht and Committee members discussed challenges in enumerating who comes to an event. She said the Pride Festival organizers are keen to increase “heads in beds.” She said in 2014 they are planning a full 2 day festival with the goal of providing a fun weekend. The Capital City Pride Festival is part of a national association of Pride Festivals. Greater Olympia Dixieland Jazz Society, Charlotte Dickison Ms. Dickison said most attendees are from out of the area. The Society is able to document attendees through ticket sales. She noted they have revenue from ticket sales which helps with event costs. Ms. Dickison highlighted the prime attraction is the quality of the bands. She said the quality of bands does as much if not more to promote the event. She thanked the Committee for past support. Committee members commented this is the type of event that is a natural fit for lodging tax funding because of its track record of attracting hundreds of individuals, which results in over 5,000 lodging nights during the event. Hands on Children’s Museum, Patti Belmonte Ms. Belmonte said with the new museum, staff is so busy they are not always able to visit with people about other visitor opportunities. They are planning to add a kiosk in the lobby with visitor information. Mr. Allan suggested working with the VCB on a kiosk. This year the museum will expand radio advertising into the Portland market and will still include the Seattle market like past years. Mr. Kiley commented on the comprehensive nature of attendance detail. Ms. Belmonte said the numbers in the application are the ones they are able to document. The Dean Runyon study formula was not used. She said one way they encourage people to say where they are from is with the request: “Please help us win grant money ….” She said the lodging tax money helps build out of town market. Olympia Downtown Association, Connie Lorenz Mr. Allan and Mr. Taylor said the brochure is used by local lodging establishments . Ms. Lorenz said the brochure is currently out of print. Distribution is through VCB, hotels, and downtown businesses. Mr. Taylor suggested the ODA look into a mobile app for the future. Olympia Film Society, Audrey Henley Ms. Henley noted the Society used three methods last year for tracking: survey as people came in door; tracking ticket sales with zip code; raffle entry coupon asked zip code. City of Olympia Page 2 Lodging Tax Advisory Committee Meeting Minutes October 21, 2013 For 2014, they are working with concerthotels.com to sell tickets and track links and bookings. Mr. Taylor noted the event is in November, a time of the year that benefits from activities that attract weekend and overnight stays. Olympia-Lacey-Tumwater Visitor & Convention Bureau, Patrick Knutsen Mr. Allen said he personally continues to advocate for additional off -hour visitor center hours, such as weekends and into the early evening. Mr. Knutsen noted the VCB revised website, which is smart phone enhanced. Mr. Taylor said for 2014 he would like to see specific numbers of VCB leads generated to hotels by actual sales, not a figure based on a formula. Mr. Kiley complimented George Sharp, VCB Executive Director, on his assistance to local groups. Olympic Flight Museum, Teri Thorning Ms. Thorning noted their numbers were down in 2013 due to lack of military presence because of sequestration and possibly the date change to August . She said the event will move back to its traditional June Father’s day weekend in 2014. She said the lodging tax funding is used for advertising on Northwest Cable News, and they do a time match for commercials. For 2014, the City of Tumwater LTAC is recommending $20,000 for the air show and museum. Recreation Northwest - Olympia Traverse, Todd Elsworth Mr. Elsworth said Recreation Northwest formed this year to manage Traverse events in Bellingham, Olympia, and Winthrop. He said they will be able to promote a series to hopefully attract overnight stays in each locale. He said they are asking for funding for series advertising that is out of area. He said it is a challenge to document out of area guests. He hopes participants will start by participating in Winthrop in June, then attend Olympia and Bellingham. There will be a discount on registration to do all three. No prize money is involved. Mr. Carstensen asked about the probability that the event would grow from 5 current overnight stays. Mr. Elsworth said there were 150 participants in Olympia last year, which he hopes to grow. His target is 25 overnight stays in two years. He said the event helps build brand outdoor recreation in Olympia, and it has other benefits to the local economy, such as people eating in local restaurants, etc. St. Martin’s University / Dragon Boat Festival, Josephine Yung Ms. Yung said there were 32 teams last year from throughout the region. It is City of Olympia Page 3 Lodging Tax Advisory Committee Meeting Minutes October 21, 2013 currently a one day event, and they are thinking about expanding to a 2-day event in the future; although it will be one day in 2014. Mr. Taylor said the Festival will need a stronger methodology for tracking number of overnight stays, perhaps as part of registration. Mr. Carstensen noted the request is primarily for operating costs. He asked the effect if not funded by the Committee. Ms. Yung said they would adjust the budget accordingly. Washington State Senior Games, Jack Kiley, President Mr. Kiley did not participate in Committee deliberation. He provided information and answered Committee questions. Mr. Kiley said that because it is a registration event, the organizers know where attendees are coming from; although not necessarily where staying and how long. He noted the quality of venues and officials attracts the competitors . He said the Games is asking for assistance this year with operating costs, in addition to printing the annual promotion/registration packet. Wolf Haven International, Pat Pointsett Ms. Pointsett said Wolf Haven is asking for less because of success of social media . She said they have downsized reliance of rack cards and print promotion. The map no longer has advertising, which will allow for a larger map of the area. Their new website will launch end of 2013 or early 2014. She said she likes the idea of a kiosk in the lobby, similar to what the Hands on Children’s Museum is planning. Mr. Carstensen commented that for 2014 metrics to document overnight stay results should be a top priority. Mr. Taylor asked that staff provide information on economic impact to the Committee at next year’s meeting based on the reports filed by each group and also a report on a status of the fund. He also asked for stronger numbers from the VCB on actual sales leads generated to hotels. Committee members agreed with the statements. Ms. Butler reminded the Committee and audience that the Committee’s recommendations will be presented to the City Council by Chair Hankins at the Council’s Monday, November 4 meeting. The Council’s public hearing on the budget, including lodging tax, will be Tuesday, November 12. Council is expected to approve lodging tax recommendations in December as part of its action on the overall 2014 City budget. Once approved, staff will issue contracts to each of the agencies. Chair Hankins thanked the Committee and applicants for their work. Committee Member Taylor moved, seconded by Committee Member Carstensen, to recommend the following 2014 contracts totaling $230,000: City of Olympia Page 4 Lodging Tax Advisory Committee Meeting Minutes October 21, 2013 · Capital City Pride Festival - $5,000 · Greater Olympia Dixieland Jazz Society - $14,000 · Hands on Children’s Museum - $60,000 · Olympia Downtown Association - $10,000 · Olympia Film Society - $5,000 · Olympia-Lacey-Tumwater Visitor & Convention Bureau - $100,000 · Olympic Flight Museum - $6,000 · Recreation Northwest / Olympia Traverse - $6,000 · St. Martin’s Dragon Boat Festival - $4,000 · Washington State Senior Games - $10,000 · Wolf Haven International - $10,000 . The motion carried by the following vote, with Mr. Kiley abstaining from vote on the Senior Games recommendation: Aye: 5 - Chair Hankins, Committee Member Allan, Committee Member Carstensen, Committee Member Kiley and Committee Member Taylor 4. ADJOURNMENT Chair Hankins adjourned the meeting at 4:45 p.m. City of Olympia Page 5