Lodging Tax Advisory Committee

City Hall Meeting Minutes 601 4th Avenue E Olympia, WA 98501 Lodging Tax Advisory Committee Contact: Cathie Butler 360.753.8361 Friday, October 3, 2014 3:00 PM Room 207 1. CALL TO ORDER Chair Hankins called the meeting to order at 3:05 p.m. 1.A ROLL CALL Present: 5 - Chair Julie Hankins, Committee Member Nathan Allan, Committee Member Russell Carstensen, Committee Member Jack Kiley, and Committee Member Greg Taylor 2. APPROVAL OF AGENDA The agenda was approved as submitted. 3. APPROVAL OF MINUTES 3.A 14-0953 Approval of August 4, 2014 Lodging Tax Advisory Committee Meeting Minutes The minutes were approved unanimously. 4. PUBLIC COMMENT - None 5. ANNOUNCEMENTS Communications Manager Cathie Butler distributed a chart with 2014 lodging tax receipts through the month of September. She noted Olympia is beginning to see a rebound with some growth in the fund, potentially back to the 2009 level. She informed the Committee that $212,500 is the projected amount available for 2015 if the Committee wishes to recommend setting aside 20% for future opportunity money. If not, the maximum amount staff recommends is $255,000, an increase of about $25,000 from 2014. Ms. Butler said applications totaling $267,323 were received for 2015. She said each application contains estimates and quantification of tourism impact consistent with the information required by State law. She said that unless the Committee finds differently, the tourism impact noted in the applications will serve as the Committee’s report of findings. 6. BUSINESS ITEMS City of Olympia Page 1 Lodging Tax Advisory Committee Meeting Minutes October 3, 2014 6.A 14-0962 2015 Lodging Tax Funded Tourism Services Committee Member Carstensen declared he is a Harbor Days Boardmember, which is a vendor at the Lakefair event. Committee Member Kiley declared he is President of the Senior Games. Committee members reviewed and discussed applications in the following order: PARC Foundation/Olympia Adventure Race Joe Hyer, PARC Foundation President, and Heather Atlantis, Centro Mr. Hyer said that Recreation Northwest, the previous sponsor, is going to focus on Bellingham. The PARC Foundation in Olympia is picking up the event locally with the hope of putting on an event as a fundraiser for the Foundation. They are looking to expand the event into a 2-3 day activity. He said they will be offering cash prizes to help attract overnight participants. Packet participation will be on Friday; event on Saturday; the event will end with the Thurston County Brew Fest. He said they will need to rename the event. Committee Member Taylor suggested approaching the Tourism Promotion Area regarding prize money or operating assistance with the event. Committee Member Carstensen complimented the organizers on their fresh approach and wished them luck in the effort to expand the event. Ms. Butler commented that the City most likely could not assist with prize money, but could contract for other operating costs and marketing. Committee members agreed to recommend the requested $10,000 with the understanding that City staff will work with the PARC Foundation on a contract that meets City requirements. Committee Member Taylor stated his preference for marketing. Capital Lakefair George Sharp, President Mr. Sharp said the proposal is to market Lakefair outside the area. He said Red Lion is the host hotel and that Lakefair generates 60+ room nights booked by the groups and vendors who come from throughout the State to participate in Lakefair. He said Lakefair will survey attendees at next year’s event to gather attendance and marketing data. Committee members agreed they like the change in approach. Committee Member City of Olympia Page 2 Lodging Tax Advisory Committee Meeting Minutes October 3, 2014 Carstensen noted the request is a part of the mix of costs for Lakefair’s new marketing approach. Committee members agreed to recommend a $5,000 contract to be used for event marketing. Greater Olympia Dixieland Jazz Society Walt Bowen, Board Member Committee Member Taylor noted a 289 room growth over last year from the event. He commented that every year we help them, they grow. Committee Member Kiley asked about events in Olympia. Mr. Bowen said their “after festival” event is at Tug Boat Annie’s and they put on two performances at the Farmers Market. He said the event requires a space with a dance floor, performance venue, and dining area. The festival pays $17,000 for hotel rooms in Olympia for hosting services. Committee Member Kiley commented on the regional nature of the event. He expressed support for using Olympia lodging tax for regional activities. Mr. Bowen said they receive financial and in-kind support from the City of Lacey since the event is located at St. Martin’s University. Committee Member Taylor said this is just the kind of event the lodging tax fund should support as it fills area hotels with out of town guests. Committee members agreed to recommend a $16,000 contract with the understanding that staff will work with the Jazz Society on a contract for a combination of marketing and event expenses, such as the cost of bands. Hands on Children’s Museum Patty Belmonte, Executive Director Committee Member Carstensen complimented the Museum on the thoroughness of its proposal. Ms. Belmonte said the Museum is able to use the City funds to leverage free advertising on the web, in traditional media, and other sources. She noted that as long as they can continue to leverage funds, the Museum can keep the lodging tax proposal stable. They are beginning to realize that blogs and other informal communication are very effective, but those efforts take staff time. City of Olympia Page 3 Lodging Tax Advisory Committee Meeting Minutes October 3, 2014 Committee Member Allan asked about status of wifi throughout the Museum so that parents with children can take photos and post - which is free advertising for the Museum. Ms. Belmonte said the Museum has a deliberate strategy on wifi placement so as to encourage parents to spend time with their children. She said she will revisit the strategy with her staff. Committee Member Kiley asked about funding from other cities. Ms. Belmonte noted that Olympia, Lacey, Tumwater, and Thurston County funded construction of the Museum through the Public Facilities District (PFD). She said there are two regional PFD funded facilities: the Hands on Children’s Museum and the Regional Athletic Center in Lacey. She said it’s her understanding that at the time the PDF was formed, the jurisdictions informally agreed that they would not seek operating support from each other without first having a policy-level regional discussion. She said the Museum has tried to honor its understanding of the agreement. Committee members agreed to recommend the requested $60,023. Olympia, Lacey, Tumwater Visitor & Convention Bureau (VCB) George Sharp, Executive Director Committee Member Allan asked about the Tourism Promotion Area (TPA). Mr. Sharp said it is up and running; funds are being received, which has allowed them to hire marketing staff. He said the new staff has already generated ten RFPs in six weeks. Committee Member Taylor said that is the type of data he would like to see in future years. Mr. Sharp said the direction from hoteliers is to focus on marketing during October, November, and December. He commented that the TPA is setting aside some opportunity money. Mr. Sharp said the support from the lodging tax is for general administrative operation of the Visitor and Convention Bureau. Committee Member Carstensen commented that he believes there is an agreement among the jurisdictions to not cut funding for the VCB so the operations will be stable. Committee members agreed to recommend the requested $100,000 contract for VCB administration and general marketing. Olympia Flight Museum Teri Thorning, Executive Director Ms. Thorning said the application is the same as prior years for advertisement on City of Olympia Page 4 Lodging Tax Advisory Committee Meeting Minutes October 3, 2014 Northwest Cable News, which is a great promotional outlet for their event. She passed out a copy of their 2014 event program that included a tourism page. Mr. Allan thanked her for including the tourism page. Committee Member Kiley asked if the Museum applies to Lacey or Tumwater for lodging tax funding. Ms. Thorning said they traditionally receive funding from the Tumwater lodging tax fund, in addition to Olympia. She said they have requested funding from City of Lacey, too, but have not received any Lacey funding. Committee Member Carstensen suggested the Museum continue to apply to the City of Lacey and highlight the event’s connection with the military community. Ms. Thorning said air shows are still challenged due to military sequestration. They have applied for military aircraft and for Canadian military plane appearance, but have no commitments yet. She noted that Father’s Day in 2015 is the same weekend as the US Open. She commented that there may be an aircraft overflow issue. The Museum Board is gathering information to assess potential impacts - positive or negative. Ms. Thorning said they may consider moving to either the weekend before or after, depending on what they learn. Committee members agreed to recommend $6,000 for regional advertising and marketing. St. Martin’s University / Dragon Boat Festival Kathleen Thomas and Brenda Burns Committee Member Allan complimented the University and Festival on last year’s program. Ms. Burns said this is the 10th year of the Festival and they are working to have international teams. Committee Member Carstensen asked about the team fees. Ms. Burns said they have raised the fees in the past. If they raise the fees, it may cut into the number of teams who participate. Committee Member Allan noted there is no prize money. Ms. Burns said their target audience is the Puget Sound corridor plus outreach this year to international teams. Committee Member Taylor asked why the request is for operating expenses instead of marketing costs included in their budget. Ms. Burns said they stayed with the same proposal as last year, although they could put it toward marketing and promotion depending on the nature of funding from other jurisdictions. Committee members agreed to recommend $5,000 with specific services to be City of Olympia Page 5 Lodging Tax Advisory Committee Meeting Minutes October 3, 2014 determined by staff working with the University after all funding sources for the event are known. Washington State Senior Games Jack Kiley, President Mr. Kiley declared he is President of the Washington State Senior Games. He answered questions about the application, and did not participate in the Committee’s deliberation. He talked about the philosophy for determining the amount of the request and relationship to the Games budget. Committee Member Taylor said one of the reasons for the TPA is to help events grow. He suggested the Games also look at the TPA for funding. Mr. Kiley said his approach is to live within the means they could sustain even without lodging tax support. Committee Member Taylor suggested he identify one-time efforts to grow the event using TPA initial support and which would be sustained by future year participant fees. Mr. Kiley said they receive support from other jurisdictions. He complimented the Lacey Regional Athletic Center staff for their assistance with events at that facility. Committee members agreed to recommend $10,000. Wolf Haven International Ms. Butler said she was contacted by Pat Pointsett with Wolf Haven who had a personal emergency and was unable to attend the meeting. Committee Member Allan suggested approving the full request of $10,000 as Wolf Haven is a unique attraction that brings people to the area. Committee Member Taylor commented that Wolf Haven should be able to do a better job of tracking out of area attendees. He said that area of the application is weak. Committee members asked staff to relay that information to Ms. Pointsett. Committee Member Kiley said it appears they have not requested funding from the City of Lacey lodging tax. He wondered why since it is a regional attraction. Committee members agreed to recommend $10,000 for marketing and promotion as outlined in the proposal. City of Olympia Page 6 Lodging Tax Advisory Committee Meeting Minutes October 3, 2014 Lacey Parks & Recreation - Regional Athletic Center (RAC) Ms. Butler noted no representative from the City of Lacey was at the meeting. Committee Member Kiley mentioned, again, the great support his event receives from the RAC staff. Committee Member Taylor said the DoubleTree Hotel receives business from the RAC, which they appreciate. He wondered why the request was for operating dollars instead of marketing and promotion. He also wondered if the operating money would be used to directly support events such as the Senior Games that generate overnight stays. He asked if anyone knew their rental pricing and marketing strategy. He said it would be helpful to know which specific events they are targeting in 2015-16 that will bring overnight stays to the area. Chair Hankins commented there was no Council-level discussion about the City of Lacey’s request for operational assistance at the RAC. She said usually a request from one jurisdiction to another is first made at a Council level as a courtesy since an Interlocal Agreement may need to be approved by both jurisdictions for funding to occur. Committee Member Carstensen said he likes the regional nature of the facility and thinks it has great potential to host events that attract overnight stays, but would need additional information before funding the request. Committee Member Taylor agreed. Committee members agreed to come back to the RAC request after discussing the City of Olympia proposals. City of Olympia - Walking Map Michelle Swanson, Transportation Planner Committee Member Allan complimented the City on the map. He suggested more photos to feature some of downtown Olympia’s iconic attractions like the Capitol building, Percival Landing, and public art. Committee Member Taylor suggested looking into QR codes to compliment the map. Mr. Sharp, VCB Executive Director, noted the VCB would be willing to use $2,000 of its lodging tax money for an overrun since the map is heavily used by the VCB and local hoteliers. Ms. Butler said it may be easier to account for the map costs if the money is included City of Olympia Page 7 Lodging Tax Advisory Committee Meeting Minutes October 3, 2014 in one award. Committee members agreed to recommend $8,000 for the walking map, which includes an overrun specifically for the VCB and hoteliers. City of Olympia Pedestrian Wayfinding Cathie Butler, Communications Manager Ms. Butler explained this is a continuation of the downtown wayfinding project started in 2007-08 and put on hold when lodging tax revenues began to decline. She said the City waited until a year when there was some growth in the fund to submit the proposal so the Committee would not have to consider whether to reduce tourism funding for non-profit agencies to fund the wayfinding. She said the proposal is intended to build on a 2015 effort by the Parking & Business Improvement Area (PBIA) to place mylar wraps on utility boxes for graffiti abatement. With lodging tax funding, some of the wraps along highly traveled visitor routes will include maps that show the location and feature notable attractions. The PBIA project will focus on the downtown core. This funding will expand the area to possibly include the Capitol Campus area, Capitol Way, Farmer’s Market, and Percival Landing. Chair Hankins said the City Council has discussed the desire for downtown pedestrian wayfinding on several occasions, particularly as part of the Downtown Project being coordinated by the Council’s Land Use & Environment Committee. Committee members agreed to recommend $18,000 for pedestrian wayfinding. City of Lacey Regional Athletic Center Continued Discussion After considering all proposals, the Committee tentatively agreed to recommend projects totaling $248,023 from non-profit agencies and the City of Olympia. Committee Member Taylor suggested the Committee recommend that the Council could, at its discretion, use the remainder ($6,977) for the RAC, if the Council is satisfied with the request. He suggested the money, if awarded to the City of Lacey, be directed to support for an event or events with a proven record of drawing overnight stays to Olympia hotels or for marketing to attract tourists and regional/statewide events at the RAC. He stated his preference for marketing. Capital Lakefair: $5,000 Greater Olympia Dixieland Jazz Society: $16,000 Hands On Children's Museum: $60,023 Olympia-Lacey-Tumwater VCB: $100,000 City of Olympia Page 8 Lodging Tax Advisory Committee Meeting Minutes October 3, 2014 Olympic Flight Museum: $6,000 PARC Foundation/Traverse: $10,000 St. Martin's Univ/Dragon Boat Festival: $5,000 Washington State Senior Games: $10,000 Wolf Haven International: $10,000 City of Olympia - Walking Maps: $8,000 City of Olympia- Wayfinding: $18,000 Subtotal: $248,024 Council Discretion re City of Lacey/RAC: $6,977 Total Recommendation: $255,000 Committee Member Carstensen moved, seconded by Committee Member Taylor, to approve and forward to the City Council for approval, the recommendations as discussed by the Committee. Committee Member Kiley noted he was abstaining from any vote related to the Senior Games. No changes were made by the Committee to the tourism impact submitted by each agency in the applications. The motion carried by an unanimous vote, with the abstention requested by Committee Member Kily for the Senior Games recommendation. 7. REPORTS Ms. Butler distributed the Committee’s roster. She noted terms for Committee members Carstensen and Kiley will end March 31, 2015. She will notify them when applications are being accepted, in case they wish to be considered for another term. She reminded the Committee those two positions may only be held by persons representing agencies potentially eligible for lodging tax funding. Ms. Butler said Chair Hankins will present the Committee’s 2015 recommendations to the City Council on Monday, November 3 during the Council’s meeting that evening. She announced the Council’s public hearing on the 2015 City budget, including lodging tax recommendations, will be during the Council’s regular meeting on Tuesday, November 18. 8. OTHER TOPICS - None 9. ADJOURNMENT Chair Hankins thanked the Committee for its work and adjourned the meeting at 5:15 p.m. City of Olympia Page 9