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HomeMy WebLinkAboutMinutes 01/07/2000 CALL TO ORDER- REGULAR MEETING: ROLL CALL: Approval of Minutes Presentation by Troy Woody, Red Lion Hotel Marketing Plan Progress Report LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington January 7, 2000 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 2:00 p.m. Members Present: Councilman Wiggins, Councilman Campbell, Carol Griffith, Jim Haguewood, Patty Hannah, Bob Harbick, John McCullough, David Morris, and Steve Oliver. Members Absent: Zoe Bayton and Clay Oakes. Staff Present: Manager Quinn, Economic Development Director Smith, and Clerk Upton. Others Present: C. McKeown, T. Griffith, B. Stepp, F. Gabriel, J. Beckham, T. Woody, K. Agren, D. Vogel, Erl Hansen, Rick Hert, A. Tucker, and Karen Hanan. Approval of Minutes: John McCullough moved to approve the minutes of the Lodging Tax Advisory Committee meeting of December 3,1999. The motion was seconded by Patly Hannah and carried unanimously. Presentation by Troy Woo4Y, Red Lion Hotel: Troy Woody made a brief presentation in the interest of furthering the Red Lion commitment to growing tourism in Port Angeles. Mr. Woody urged the committee members to continue in the direction of promoting tourism. He submitted certain recommendations for consideration: that the lodging tax be considered one, that guidelines for funding scenarios be established, that consideration be given to the long-term ramification of decisions, and that event funding be limited to 3 - 5 years. Mr. Woody discussed the current marketing program and recommended that the marketing plan be continued for a second year. He felt progress reports should be mandatory, perhaps on a quarterly basis. Additionally, Mr. Woody distributed his recommendations for the Year 2000 funding levels. Port Angeles Marketing Plan Progress Report: Rick Hert; Erl Hansen; and Ann Tucker, Wendt Advertising, were present to submit an eighteen-month progress report on the tourism marketing plan. Mr. Hert reviewed the tax revenues during this IS-month period, noting that all areas on the Peninsula were down with the exception of Port Angeles, which showed an increase of 2.54%. Lengthy discussion followed with no specific explanation being offered as to why this increase occurred. Mr. Hansen referenced a handout showing the number of inquiries directed to the Visitor's Center, which Mr. Hansen felt was due to the marketing plan. Ms. Tucker distributed informational handouts and chronologically reviewed the marketing plan since its inception. She summarized the objectives of the Spring 1999 campaign, the target audience, media placement, and conversion study results. Ms. - 1 - LODGING TAX ADVISORY COMMITTEE January 7, 2000 Marketing Plan Progress Report (Cont'd) Break Proposal by Councilmen Wiggins & Campbell Next Meetings ADJOURNMENT: Tucker further reviewed the Fall 1999 - Spring 2000 campaign, as well as inquiries to the web site. Because the issue of accountabilily had been raised, Ms. Tucker offered to provide monthly status reports so the City would know how the campaign is proceeding. Lengthy discussion and debate followed with respect to the success of the marketing program, the return on investment, and the need for more frequent status reports. Councilman Wiggins recessed the meeting for a break at 3 :25 p.m. The meeting reconvened at 3:35 p.m. Proposal by Councilmen Wiggins & Campbell: Councilmembers Wiggins and Campbell submitted a proposal to the members of the Lodging Tax Advisory Committee recommending that revenue be equally split between hard dollars for capital improvements and related support, and soft dollars for activities and marketing; that hard dollar support include capital projects for tourism facilities, responsibility for the debt service on the Vern Burton Center, and the proposed funding of the Feiro Marine Life Center. Further, the proposal recommended soft dollar support for tourism marketing and related activities, with performance goals and measurement criteria associated with the program to assess program success and impact upon lodging excise tax generation; that a reserve allocation be dedicated toward future capital improvement; and that the Lodging Tax Advisory Committee develop an accurate database reporting the number of room stays in the community. The proposal stimulated discussion and debate on such issues as funding the Marine Life Center with lodging tax revenues, the lack of specificity as relates to capital investment, the emphasis placed on increasing tourism in the shoulder season, the need to make the downtown area attractive, the desire to make Port Angeles a destination, the scenario of public versus private investment, the acceptable level of allocations to different entities, potential support for the Estuary project, and the intended purpose of the additional 2% tax. Bob Harbick moved to: I) Continue with the three-year marketing plan at $150,000 per year; 2) Retain the 1999 level of event/activity funding at $130,000; 3) Dedicate $50,000 toward the Vern Burton Bond payment; and 4) Add the $20,000 remainder to the $99,000 reserve, to be discussed at a later date. The motion was seconded by Carol Griffith which, after further discussion and clarification, carried by a majority vote, with committee members Campbell, Oliver, and Wiggins voting in opposition. It was agreed the next meeting will be held on Friday, January 21, 2000, at 2:00 p.m., to discuss capital improvements and the reserve fund. At that time, further information will be forthcoming on the Marine Life Center, as well as the Estuary project. The committee agreed to meet again on Friday, March 24, 2000, at 2:00 p.m., to receive the first quarter report on the tourism marketing plan. The meeting adjourned at 4:50 p.m. ~_. h(!~ JJptw. Becky J. U " Clerk - 2-