Lodging Tax Advisory Committee

City Hall Meeting Minutes 601 4th Avenue E Olympia, WA 98501 Lodging Tax Advisory Committee Contact: Kellie Purce Braseth 360.753.8361 Monday, October 5, 2015 2:00 PM Room 207 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. 3. APPROVAL OF MINUTES 3.A 15-0925 Approval of October 3, 2014 Lodging Tax Advisory Committee Meeting Minutes The minutes were approved. 4. PUBLIC COMMENT - None 5. ANNOUNCEMENTS Chair Hankins noted the Committee has difficult decisions to make this year because the requests received for 2016 funding far exceed the level of funds available. The projected amount of funds available for 2016 is $250,000 and applications total $337,640.86 in the requests. Chair Hankins said the Committee would have to eliminate nearly $88,000 from funding requests. 6. BUSINESS ITEMS 6.A 15-0939 2016 Lodging Tax Funded Tourism Services The Committee began reviewing applications. There were questions to Lacey's Regional Athletic Center (RAC) about the need for Council-level discussions taking place regarding the request for operational assistance at the RAC. The Lacey representative reported the Mayors of Olympia and Lacey have discussed the matter. Chair Hankins said she had not been notified of the discussion. Strategic Communications Director Kellie Purce Braseth will confirm for the Committee. Committee member Carstensen noted one proposal was late and the Committee should consider whether to accept it. The Olympia Film Society’s application arrived City of Olympia Page 1 Lodging Tax Advisory Committee Meeting Minutes October 5, 2015 49 minutes after the submission deadline. The Committee unanimously agreed to accept the Film Society’s late proposal. Arbutus Folk School $ 8,000.00 Chair Hankins noted this is a first-time submission for Arbutus Folk School. Arbutus Boardmembers Tom Iovani and Stacey Waterman-Hoey were present to represent the proposal. Committee member Taylor said the work looked “cool”, but also seems locally focused. Representatives were asked to align the concern about heads in beds with the apparent local nature of the School. Ms. Waterman-Hoey noted the School is a relatively new concept west of the Mississippi and folk schools across the country tend to be tourist destinations. She noted they are currently marketing to people in Olympia. Marketing dollars would allow them to reach out to people who can take time away and travel for a week-long class. Committee member Allan asked if the School would offer classes year round and mentioned that offering non-summer activity was something the Committee has been seeking for some time. Ms. Waterman-Hoey noted they will present classes that are not just in the summer, and Mr. Iovani said activity at the School slows down in summer and is not dependent on the Legislative session. Part of the funds would support the opening of a retail gallery of finished products at the School. Committee member Kiley asked why they didn’t ask Tumwater and Lacey for funds. Ms. Waterman-Hoey said they were aware of Olympia's process. She reiterated the School wants to put together packages that bring people into Olympia from out of town. Committee member Carstensen cautioned that the Committee must make tough decisions because there are more requests than funds. Capital City Pride Festival (Rainbow) $5,000.00 Committee member Taylor made note of the difference between the event's attendance numbers (13,000) and the number of lodging room nights resulting from the event (65). Pride Representative Anna Schlecht asked the record to reflect she was before the Committee while on personal vacation from her City of Olympia position. She said the Festival struggles with people not identifying themselves as being in town for the Pride Festival. They have grown the event to two days. This year the event suffered because it competed with the US Open. For 2016, they intend to be more streamlined. People are still reluctant to self-identify, but the organizers hope to find cost-effective ways to incentivize people to identify they are in town for the event. Last year the event attracted gun rights enthusiasts, which drove some people away. The Festival has moved locations to make it feel more open and have the Capitol dome as a backdrop. Ms. Schlecht noted the Festival will likely always remain conservative about the number of people who are attending. Committee member Kiley asked if the organizers approached the County or other cities for funds. Ms. Schlecht said they planned to, but they had a lot of activity around 2nd Amendment activists. They plan to contact Lacey and Tumwater for 2017. They’ve approached the Nisqually Tribe for funds, but have not received a response. They also approached other tribes, but it has not been very productive. City of Olympia Page 2 Lodging Tax Advisory Committee Meeting Minutes October 5, 2015 Committee member Carstensen noted their proposals have improved over time, but they continue to request at the $5,000 level. He asked if the organization was planning to grow or if that is where the request will stay. Ms. Schlecht said the Festival is trying to be good stewards of the funds. Their request will remain conservative with the understanding that other organizations also need the limited Lodging Tax funds, and they are focusing Lodging Tax funds on advertising out of county. Committee member Allan encouraged the Festival to ask for more if they want to grow the event. Capital Lakefair $5,000.00 The Committee had no questions on the proposal. Lakefair representative Dennis Williams noted Lakefair is a familiar event. The organizers want to reach out to some of the other Northwest event marketing venues. They haven’t gone to Tumwater because of the Kick in the Grass Tournament. Next year they will include Tumwater. Capital Recovery Center $30,000.00 Sharon Holley was present to represent the proposal and introduced the work of the Downtown Ambassadors and Clean Team. Much of their work has been on the street. They created the Welcome Center in partnership with the Visitor and Convention Bureau (VCB) and Parking and Business Improvement Area (PBIA) to attract people visiting the Legislature to downtown. The Welcome Center is getting visitors from all over the world, attracted by the “I” (universal information symbol) flag. Ms. Holley noted the Center is doing much to revitalize the block and is seeing an increase of families visiting on 4th Avenue. They would like to do more outreach with materials, involve themselves in more events, and bring more activities downtown in the fall and winter. They want to bring more music downtown. They want to do something like North-by-Northwest. Ms. Holley said the organization needed someone to work on marketing and partnership building to add more events downtown in the off season. Committee member Taylor said he would like to support something like North-by-Northwest, but funding a marketing position is not something he would like the Committee to support. Committee member Allen asked about training the Ambassadors receive for the work of guiding people in downtown. Ms. Holley said they need assistance with that. Committee member Carstensen asked whether cutting their funding request in half would be fatal. Ms. Holley responded it would not be fatal, but they need the money. She noted people visit from around the world because Olympia is noted for its musical history and we need to get back on the map. Commons at Fertile Ground $7,500.00 TedxOlympia Producer Meg O'leary was present to represent the proposal. Committee member Taylor noted TedxOlympia is only a one-day event, but he would like to see more paid lodging rooms used for the $7,500 request. He asked how they might make it a multi-day event. Ms. O’Leary indicated the Tedx license allows only a one-day event. They can do other events throughout the year, but she wasn't not sure it would really draw people from out of town. There is not a lot of data on this first City of Olympia Page 3 Lodging Tax Advisory Committee Meeting Minutes October 5, 2015 year yet; it's mostly anecdotal. She is working on a strategy to get better numbers next time around. This year, people came from as far away as Texas and Canada for the event, but they were mostly family and friends of the speakers. Committee member Kiley mentioned the request was 18 percent of their budget. Ms. O’Leary said the request is driven by the cost of the Washington Center for the Performing Arts. Committee member Kiley asked if they have approached Lacey, Tumwater and the Nisqually Tribe for funds. Ms. O’Leary noted her appreciation for the advice. Committee member Allan asked why the proposal was made under the Commons at Fertile Ground name. Ms. O’Leary explained they operate under the non-profit shelter of Commons at Fertile Ground and will be under their wing until the spring. Greater Olympia Dixieland Jazz Society $16,000.00 The Committee had no questions on the proposal. Dixieland Jazz Society representative Charlotte Dickison noted that, while the Committee is interested in “heads in beds,” the Dixieland Jazz Society is interested in “beds for our heads”. They are anxious to get new hotels in Olympia. She said other communities have added new hotels and Olympia has not. The Committee made mention of new hotels currently under construction in Olympia. Hands on Children's Museum $62,605.86 Development Director Amy Brockman and Grants Manager Marina Shaughnessy were present to represent the proposal. They pointed out the Museum is doing out-of-county marketing specifically focusing on spring break. They noted they have a world class exhibit coming in spring 2016, a Children in China exhibit. They expect it to bring people from out of state and anticipate numbers to grow dramatically. Committee member Allen noted the Museum always asks for a large sum of money and he would like the Committee to support some of the new proposals. The representatives noted the Museum has new initiatives and has exceeded initial numbers, but they want to maintain that. The $62,605.86 is a small part of the budget, and they partner to make the Lodging Tax money go far. They said the Museum brought $800,000 into the community last year. Committee member Taylor expressed a similar frustration that HOCM always has a good proposal, but a very large request. He noted the Museum has the most opportunity to fundraise in comparison to other organizations that request Lodging Tax money. Ms. Brockman asked the Committee to put that idea on its head: The Museum is helping put Olympia on the map in a very large way and doing so much more for the community and local businesses. She said the Museum will be growing its private events, like weddings, as well. She indicated each wedding puts about a dozen heads in beds. Ms. Shaughnessy recalled the Museum heard from a family who stayed an entire week in Olympia so their kids could take summer camps. Committee member Carstensen complimented the Museum’s proposal, but said it has “built a machine that requires feeding.” Committee member Kiley asked if the Museum was working on increasing its corporate sponsorship. Ms. Brockman and Ms. Shaughnessy noted that, while they have some corporate sponsorship associated with Sand in the City, most contributions come from local business donations. City of Olympia Page 4 Lodging Tax Advisory Committee Meeting Minutes October 5, 2015 Lacey Parks & Recreation - Regional Athletic Center $20,000.00 Facilities Manager Sue Falash was present to represent the proposal. Committee member Allan suggested they ask the City of Lacey for funding and expressed frustration that Lacey does not support the VCB at the same level as the City of Olympia does. Ms. Falash indicated the RAC works closely with hoteliers to encourage people coming to the Lacey RAC to also stay in Olympia hotels. They are working with the VCB to promote all the County’s facilities. Committee member Taylor expressed understanding for Committee member Allan’s perspective, but said his hotel hosts a lot of teams that play at the RAC. Ms. Falash emphasized the RAC specifically puts people in Olympia beds and noted there are many hotels on the border of Lacey that are actually in Olympia. Ms. Falash also pointed out the RAC is requesting $150,000 from Lacey and is awaiting Council approval. Olympia Downtown Association $8,535.00 Executive Director Vida Zvirdys-Farler was present to represent the proposal. Committee member Taylor asked why the ODA brochure is not an app and why they are still printing. Ms. Zvirdys-Farler noted an app is a good idea, but many people still ask for the printed piece. The map will include parking information including City and private lots and costs. Committee member Carstensen asked about the printing schedule. Ms. Zvirdys-Farler said they print every two years, but would like to print the brochure more often to keep it more accurate and current. Committee member Taylor asked if they ever went straight to the hoteliers for funding. Committee member Allan suggested the ODA create a responsive website and not do an app because users have to have the memory on their smartphone and connections for the app to work. Ms. Zvirdys-Farler said the ODA is partnering with the VCB to use its “Stqry” app. Olympia Film Society $9,000.00 Audrey Henley was present to represent the proposal. She pointed out the film festival will be in the fall. The Film Society has undergone structural challenges and has invested in a marketing coordinator. The lack of a marketing coordinator prevented them from building relationships with the VCB and other organizations. They want to broaden their marketing range beyond Olympia. They’ve touched Tacoma and Seattle, but want to go to Eastern Washington and Vancouver BC. They’ve talked to the VCB about producing some promo for the hotels. In the past they tended to focus on one hotel to support in their marketing material. They know people are coming from all over, but struggle to capture data on heads in beds. This year they will embrace all the hotels and create a strategy to track where their attendees are staying. The VCB had good ideas for using software and other activities that will create stronger relations with the hotels. Committee member Carstensen asked what they would do if they don’t get the money. Ms. Henley said they would just keep going and keep working toward expanding with what little they have. City of Olympia Page 5 Lodging Tax Advisory Committee Meeting Minutes October 5, 2015 Olympia-Lacey-Tumwater VCB $100,000.00 Committee member Allan noted the Committee could not change the Visitor and Convention Bureau (VCB) request anyway and said the VCB was doing a much better job. There is something good going on. Former VCB Interim Executive Director Craig Ottavelli introduced new Executive Director Shauna Stewart. October 5 was her first day on the job. Mr. Ottavelli noted the VCB business plan was in the packet. Olympia Symphony Orchestra $10,000.00 Board President Mike Ryherd was present to represent the proposal. He noted the Symphony opened its 63rd season and said this is its second application for Lodging Tax funds. They have grown the Summer Music Concert to 5,000 people sitting on the lawn, and Mr. Ryherd noted it is the only free concert in Western Washington presented on a yearly basis. It is a chance to experience classical music live. 2016 is the summer concert’s 10th anniversary, and they want to move to having a day-long festival and broaden partnerships with Youth Symphony, Ballet Northwest, and more. They hope to drive 10,000 people to the concert. They plan to have one main stage, minor stages and food trucks. Mr. Ryherd said they have found the Olympia Symphony has become a regional symphony between Tacoma and Portland. They draw musicians and audiences from Bellingham to Portland. Committee member Kiley noted the Symphony was asking for 40 percent of the total budget. Mr. Ryherd said the budget presented is last year’s budget and they hope to expand it. Olympic Flight Museum $6,000.00 The Committee had no questions on the proposal and moved to the next item. PARC Foundation/Olympia Adventure Race $15,000.00 Joe Hyer was present to represent the proposal. The event has been renamed and moved to the PARC Foundation, which has just gone through reorganization. PARC has put requests in to the other cities as well. They want to build an event year-after-year. They are looking ahead five and ten years from now and want a regional-based adventure race. They have learned how to reach adventure race people, so the organization is going to get certified. They can then attract people on a national level who do adventure race for credit and certification. They want to make a ski to sea event in Olympia. They said they have the infrastructure to make this possible and have partnered with Brewfest. They were unaware of how much work it would be to rebrand the event, but are moving through that now. They are concentrating on Olympia so people can drink and have hotels in walking distance and have shuttle service. Committee member Taylor asked if they went to the TPA (Tourism Promotion Area) Committee. Mr. Hyer said they weren’t aware of the TPA and will explore it. Committee member Allen asked if the event will always be held in August. Mr. Hyer said it would because of the weather. Mr. Hyer said the organization wants to create an umbrella of regional events. There is an option to City of Olympia Page 6 Lodging Tax Advisory Committee Meeting Minutes October 5, 2015 move it to September. They have it in August to partner with Brewfest. Parrot Heads of Puget Sound $5,000.00 Event Co-Chair Rob Hill was present to represent the proposal. He said they “stole” the Laid Back Attack from Seattle this year. The event drew more than 300 people, nearly all from out of town, within a 50-mile radius. They are a 501(c)(3) and benefited from the U.S. Open last year. It’s a non-profit that gives money to other non-profits. The event got a significant chunk of people from Seattle. The event was held at the Red Lion. There are three club members in Thurston County; everyone else is from outside Thurston County. The event includes music for three nights, and Corona is the sponsor. This year they did a pub crawl in downtown Olympia before the event started. Committee member Allan noted this is similar to the Dixieland Jazz event, and he suggested they partner with the Farmers Market. Committee member Carstensen asked what they would do if they don’t get money. Mr. Hill offered to clarify further. Committee member Carstensen described them as “Walking into a buzz saw whistling Dixie," and noted Mr. Hill did not describe what they would cut in the budget. St. Martin's / Dragon Boat Festival $5,000.00 The Committee had no questions on the proposal and moved to the next item Washington State Senior Games $15,000.00 The Committee had no questions on the proposal. Committee member Kiley presented a photograph taken on behalf of Olympia, Tumwater and Lacey. Wolf Haven International $10,000.00 Ms. Purce Braseth reported the representative from Wolf Haven was unable to attend the meeting and sent her apologies. The Committee had no questions on the proposal and moved on. Due to the length of the meeting, the Committee was left with approximately 15 minutes to make final funding decisions. The Committee chose to meet again to do so. Ms. Purce Braseth said she would send out a doodle poll to the Committee to find a workable day in the next week or two. She noted the recommendations are scheduled to be presented to the City Council on November 10. The decision was discussed and continued to the Lodging Tax Advisory Committee at the October 19, 2015 meeting. 7. REPORTS - None 8. OTHER TOPICS - None City of Olympia Page 7 Lodging Tax Advisory Committee Meeting Minutes October 5, 2015 9. ADJOURNMENT The meeting adjourned at 3:53 p.m. City of Olympia Page 8