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HomeMy WebLinkAboutCommittee of the Whole - 16 Jul 2018 - Agenda - Pdf AGENDA Committee of the Whole Meeting 6:30 PM - Monday, July 16, 2018 Conferencing Center, 7th Floor, City Hall – 1055 S. Grady Way 1. Lodging Tax Advisory Committee Report and Funding a) Issue Paper b) Ironman Backgeound Info M E M O R A N D U M DATE:July 16, 2018 TO:Ed Prince, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:Cliff Long, Economic Development Director (x6591) SUBJECT:Allocation of Lodging Tax Funding ISSUE Should money from Lodging Tax funds be allocated to support the bid to host an Ironman Triathlon by the City of Maple Valley as recommended by Renton’s Lodging Tax Advisory Committee (LTAC)? RECOMMENDATION Support the recommendation of the Lodging Tax Advisory Committee to allocate $50,000 in lodging tax funding detailed in the attached matrix and summarized below. Additionally, staff recommends that the Mayor and City Clerk be allowed to execute contracts with the funded applicant to expend budgeted funds on the proposed additional marketing initiatives outlined below. BACKGROUND SUMMARY In accordance with RCW 67.28.1817, the City of Renton has established a Lodging Tax Advisory Committee to recommend the allocation of lodging tax funds to Renton City Council. The Committee was chaired by Council President Pavone and members include: Brent Camann, Renton Chamber of Commerce Preeti Shridhar, City of Renton Angela Mose, Red Lion Hotel & Conference Center Seattle-Renton Rusty Middleton, Hyatt Regency Lake Washington On May 17th, the LTAC committee met to entertain requests from the Renton Chamber of Commerce for reconsideration of funding two events not recommended to City Council by LTAC in the regular 2018 funding cycle, as well as to hear a proposal from the City of Maple Valley for an opportunity with timing that falls outside the committee’s regular application process. The committee voted unanimously to recommend the request of the City of Maple Valley to City Council for funding. The committee believes that while the event will be held in Maple Valley, the arrangement for exclusive lodging in Renton will ensure a positive economic benefit for Renton hotels, restaurants and related businesses. AGENDA ITEM #1. a) Further, the committee voted unanimously not to reconsider recommendation for the Chamber events at this time. The Lodging Tax Advisory Committee recommends Renton City Council approve 2018 expenditures from the Lodging Tax Fund as follows: City of Maple Valley, Ironman Triathlon Bid $50,000 Total Recommendation: $50,000 Council "may only choose recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee." However, Council does not have to fund the full list as recommended by the LTAC and can choose to make awards in the recommended amounts to all, some, or none of the candidates on this list. The selected recipients must be awarded the amounts recommended by the LTAC. Staff appreciates the thorough review given to each application by the Committee and finds their recommendations are consistent with the goals of the City’s Business Plan and Economic Development Strategic Plan. cc: Bob Harrison, Chief Administrative Officer Jan Hawn, ASD Administrator Chip Vincent, Community & Economic Development Administrator AGENDA ITEM #1. a) CITY OF BOULDER CITY COUNCIL AGENDA ITEM MEETING DATE: April 21, 2015 AGENDA TITLE: Consideration of a potential Application as a Host City for the 2017 IRONMAN ® 70.3® World Championships. PRESENTER/S Jane S. Brautigam, City Manager Maureen Rait, Executive Director, Public Works Michael Eubank, Project Manager, City-wide Special Events EXECUTIVE SUMMARY IRONMAN® is seeking a Host City in North America for the 2017 IRONMAN® 70.3® World Championships. Boulder is one of a small number of pre-selected Host City Candidates invited to submit a bid proposal . This invitation speaks to the city’s strong brand with athletes, and its high quality of staff and services. While it is an honor to be recognized as a potential international destination, (immediately after our inaugural Ironman Event last year) it is recommended that the city not pursue an application at this time and identify its interest in being considered as a host for this event after 2017. STAFF RECOMMENDATION Given the time needed to prepare a proposal with community partners and the on-going implementation of the improvements to the Civic Area funded by the successful Community, Culture and Safety tax initiative in November 2014, it is recommended that the City of Boulder not pur sue an application at this time. Instead, it is recommended that the city identify its interest in being considered as a host for this event after 2017 COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS Boulder has won several lifestyle awards including healthiest, most Educated and most bicycle-friendly city. Special events are part of the Boulder brand. Hosting quality Agenda Item 6A Page 1 AGENDA ITEM #1. b) special events are a great fit for the active lifestyle that reflects this community’s passion for healthy recreation as well as its vibrant outdoor business and organic food companies that proudly call Boulder home. • Economic - In 2014, the Boulder Ironman Triathlon included approximately 2,700 athletes traveling with an average of 3.3 family members. The total length of stay was five nights with an average spending for each athlete party of $1,785 or $4.8 million in the Boulder area. Expectations for the 2017 70.3 World Championships would include 15,000 athletes, spectators and media (almost double the Boulder Ironman) with an average stay of five nights creating an estimated $10-15 million in local spending. • Environmental – As with all city events, Boulder incorporates ongoing city-wide initiatives within the event plans that meet or exceed local environmental goals. All events include Zero Waste prot ocols in addition to promoting multi-modal transportation options including event shuttles, bike parking and B-Cycle options for participants and spectators before, during and after the events. • Social - As a Host City, Boulder will always incorporate community benefits and opportunities to encourage, engage and reach out to individuals, neighborhoods, businesses and local groups. Social, recreational and educational options will include free or low cost participation for the community, especially youth and families involved in city services and programs. OTHER IMPACTS • Fiscal - The estimated city budget to provide all staff, services and event requirements would be a minimum of $600,000 for an international event of this scope. Expected revenues, in-kind support, partnerships and sponsorships would reduce the overall exposure to an estimated $300,000 • Staff time - City departments and staff would track and record staff costs and expenses for reimbursements from the City event budget. BACKGROUND Ironman Boulder Boulder hosted its first full Ironman event on Aug . 3, 2014. The event began at the Boulder Reservoir with a 2.4 mile swim, included a 112 mile bike ride on Boulder county and city r oads, and a 26.2 mile run on the Bould er Creek Path before finishing in Downtown Boulder. With more than 2,700 participants, it was one of the largest Ironman events held world-wide. The local Ironman office and crew worked closely with city staff and associated departments to ensure that this one of the most successful first - time events. The city collaborated with the Convention and Visitors Bureau, Downtown Boulder, Inc. and Boulder Valley School District to fulfill various hosting requirements including lodging, meals, registration and expo facilities. T he event attracted a large number of visitors to Boulder including 40 percent of Ironman athletes visiting prior to the event to train at altitude. Of all pre-race visits, approximately 3,000 room nights were booked generating an estimated $658,000 in direct spending Agenda Item 6A Page 2 AGENDA ITEM #1. b) before the August event. During the event week, the average length of stay was five days with a per -person, per -day spending of $198 that included lodging, dining, shopping and entertainment spending in and around Boulder totaling an estimated $4.8 million. Due to the overwhelming success of the 2014 event the city has renewed the agreement for 2015 and 2016 with an annual limit of $60,000 of in-kind and financial support. A proposed ‘one-time’ Ironman Event for Boulder The 70.3 World Championship began in 2007 and is fast becoming one of the largest international events for triathletes, second only to the Ironman World Championship hosted annually in Kona, Hawaii during October. The specific, future dates for this two-day event are flexible, but it is expected to occur prior to the Kona Championships during the months of August or September. This international event will consist of the women’s 70.3® World Championship on the first day for approximately 2,500 athletes, followed by the men’s 70.3® World Championship for approximately 3,000 athletes on the following day. The potential economic impacts to a host community are significant, but recognizing that there are also substantial costs associated with being a host as defined below. Currently, more than 130,000 athletes from 156 countries are racing in 86 IRONMAN 70.3 triathlons worldwide. By 2017, the series is expected to expand to 100 races around the world. In 2014, Ironman began rotating the host cities to accommodate the global perspective of the event, athletes and spectators. The most recent and planned championship locations include: • Mont -Tremblant, QC Canada Sunday (Sept ember 2014) • Zell Am See -Kaprun, Salzburg Austria (August 2015) • Sunshine Coast, QLD Australia (Sept ember 2016) The schedule for the 2017 event proposal is as follows: March 27, 2015 Host City initial Statement of Interest Due April 30, 2015 Host City Proposal Due to Ironman May 2015 Candidate City site visits June 2015 Award letter to Host City / Agreement drafted July 2015 Host City Announced The City Manager notified City Council on March 13, 2015 regarding the submittal of an initial Statement of Interest to Ironman that allowed city and its potential partners additional time to evaluate aspects of hosting the event in Boulder prior to the April 30, 2015 bid deadline. AN ALYSIS City as the Event Producer It is important to note the role the City would potentially perform as a Host City for the 2017 IRONMAN® 70.3® World Championships. As a Host City, Boulder would take Agenda Item 6A Page 3 AGENDA ITEM #1. b) on the responsibility as the Event Producer, which includes, but is not limited to, managing and implementing all aspects of event operations and related costs. The most recent example of the city performing these duties was during the 2014 CycloCross Nationals held at Valmont Bike Park. The City of Boulder submitted a bid to host nationals and was awarded the role of Host City and Event Producer. Partnering with USA Cycling, the city produced a five -day Championship Event for approximately 2,500 athletes with an overall budget of approximately $200,000. In contrast, the current Ironman Boulder Event, scheduled for Aug. 2, 2015, is produced by Ironman and Ironman staff, with additional support provided by City of Boulder that is limited to a $60,000 budget cap, primarily for venue space and “in-kind” services. The chart below is a partial list of Event Services provided by an Event Producer during event planning and production. (* limited to $60,000 aggregate) EVENT SERVICES 70.3 Championships Ironman Boulder Event CX Nationals Event Venues X X* X Course Design / Staffing X X Event Staff and Volunteers X X Law Enforcement X X* X Medical Services X X Event EXPO (typically expenses and income) X X Media, PR, Partnerships, Sponsorships X X Community / Athlete Events and Banquets X X Waste Management / PortoLets X X Estimated Budget $600,000 $60,000 $200,000 Acknowledging the required city role and related expenses as a Host City for this event warrants additional time for planning and budgeting. Pre-Event Planning and Confirming Partners Hosting an international event and compiling a competitive bid can be an expensive and time consuming undertaking. The limited timeline for this proposal has made it difficult for the city to properly research and quantify the full impacts, opportunities and most Agenda Item 6A Page 4 AGENDA ITEM #1. b) importantly, related partnerships. A successful event of this size requires substantial partners at the local and state-wide level. Event partnerships will not only provide financial and “in-kind” support, but also create a cohesive event team for all aspects of the event and beyond. Broad feasibility, planning and budgeting with potential partners requires sufficient time. As a comparison, the Cyclocross Nationals Bid took approximately six months to develop before submitting in an open bid process. As the Valmont Bike Park neared completion, city staff was aware of the opportunity and timeline for hosting nationals. Most of the venue sites, course maps, budgets, in-kind partnerships, event logos, merchandise and even social media were prepared in advance of the initial site visit and prior to the award announcement. City staff recognizes Boulder ’s strong potential to host an International Championship Event. However, due to time constraints the city recommends that a bid proposal be considered in the future when additional preparation, including the need to identify event staff resources, partnership expectations, sponsorship benefits and overall community -shared event goals can be undertaken. Event Venue to include Downtown / Civic Area Boulder currently hosts an annual 70.3 Ironman Event at the Boulder Reservoir, which provides an excellent opportunity to utilize successful practices, procedures and race routes. This annual June event starts and ends at the reservoir with most aspects of the swim, bike and run portions of the course and spectator areas within the facility. Hosting a “Championship” event would require significant modifications and improvements to the course to offer a broader variety of Boulder venues that will challenge and inspire these world-class athletes. The ideal venue for ending the run course would be in the Civic Area near Downtown Boulder and convenient to lodging, shopping and restaurants. With the passage of the Community, Culture and Safety tax initiative in November 2014, the first phase of improvements in the Civic Area is moving forward and implementation is expected to occur over several years. Acknowledging the required space necessary for a Downtown Boulder finish warrants additional time for completing planned improvements of the Civic Area. . NEXT STEPS • Communication to Ironman – Staff will contact Ironman to relay the determination of the city and identify future event dates after 2017. • Site and Venu e Improvements – Staff will continue efforts associated with Civic Area implementation as part of the voter approved Community, Culture and Safety tax. Agenda Item 6A Page 5 AGENDA ITEM #1. b)