Loading...
HomeMy WebLinkAboutMinutes 12/12/2002 CALL TO ORDER: ROLL CALL: Approval of Minutes Chamber of Commerce Report 2003 Lodging Tax Committee LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington December 12, 2002 Councilman Campbell called the meeting of the Lodging Tax Advisory Committee to order at 3 :00 p.m. Members Present: Councilman Campbell, Councilmember Rogers, John Brewer, Carol Griffith, Bob Harbick, Jack Harmon, Steve Oliver, and Bill Rinehart. Members Absent: Zoe Bayton, Jim Haguewood, and Patty Hannah. Staff Present: Economic Development Director Smith, Clerk Upton, and Recreation Services Manager Cole. Others Present: Russ Veenema, Paul Lamoureux, John Platt, Dick Goodman, Tony Griffith, Brian Pettyjohn, Jan Harbick, Kristi Agren, and Brian Gawley. Approval of Minutes: Steve Oliver moved to approve the Lodging Tax Advisory Committee minutes of October 17 and October 31, 2002. The motion was seconded by Bill Rinehart. A vote was taken on the motion, which carried by a majority vote, with Bob Harbick abstaining due to absence from the October 17 meeting and Councilmember Rogers and Jack Harmon abstaining due to absence from the October 31 meeting. Chamber of Commerce Report: Economic Development Director Smith added to the agenda a report from Russ Veenema, Chamber of Commerce. Mr. Veenema distributed copies of the report to the cornmittee members, after which he reviewed a comparison of2002 room tax revenues and expenses to projected 2003 figures. He summarized the goals for the 2003 marketing campaign, as well as an itemization of the 2003 marketing allocations. Mr. Veenema reviewed the details of the 2003 media plan, directing attention to the various ads to be placed in newspapers and magazines. Print marketing will involve a full run in the Sunset magazine, as well as an overprint of the Visitor Guide map for the Olympic Peninsula. Mr. Veenema addressed the criteria to be used in determining which special events will receive funding. He then shared information relative to a new prograrn in the form of a Marketing Match Program, relating the criteria to detennine eligibility and the means by which the funds will be awarded. He shared copies of color ads to be used in 2003. In the ensuing discussion, Kristi Agren of the Visitor & Convention Bureau, announced the Peninsula will have four pages in the State lodging guide and, after significant effort, the Peninsula will be on the cover of the guide. Councilman Campbell noted the excellence of the Chamber's marketing efforts. Mr. Veenema, in responding to an inquiry, reviewed the joint marketing program and the active participants from Clallam and Jefferson Counties. Jack Harmon pointed out that this group is working on a mitigation project for the Hood Canal closure. 2003 Lodging Tax Committee: Councilman Campbell reported that Zoe Bay ton had resigned from the membership of the Lodging Tax Advisory Committee. In that one -1- LODGING TAX ADVISORY COMMITTEE December 12, 2002 2003 Lodging Tax Committee (Cont'd) vacancy has been created and, because the conuruttee needs to be reappointed in its entirety on an annual basis, he suggested it is timely to consider the current membership. The committee's recommendation concerning the membership will be forwarded to the City Council for action. In considering possible nominees to replace Ms. Bay ton's position as a representative of the lodging industry, the name of Michael Luehrs, Red Lion Hotel, was placed in nomination by Bob Harbick. Carol Griffith placed the name of John Platt, Best Western Olympic Lodge, in nomination. The committee expressed interest in making a recommendation by ballot, so Tim Smith departed the meeting to prepare the ballots. At this time, it was noted that John Brewer, Chamber of Commerce representative, is to be replaced by Dave Neupert. Pending Mr. Smith's return to the meeting, the committee moved forward on the agenda. Report on Cascadia Proj ect Report on Cascadia Project: Representing The Cascadia Center for the Perfonning and Literary Arts, Brian Pettyjohn advised the committee members that Rick Porter would no longer be serving as Legal Counsel. In addition, Elaine Grinnell from the Jamestown Klallam Tribe has been elected to the Cascadia Board. Mr. Pettyjohn was present to submit a lodging tax funding request in the amount of $88,400. He distributed information pertinent to the request, noting that the request is intended to be utilized for Rise Alaska in rewriting and articulating Cascadia's business plan, conference center advertising expenses, graphic design expenses, and staff and administrative support. He indicated that Cascadia expects to be open in the fall of 2006, and smaller to mid-size groups will be marketed. Mr. Pettyjohn indicated that one of the goals is to put heads in beds and, with the size of meetings they hope to attract, there will be a need for more hotel rooms in Port Angeles. Marketing expenses budgeted at this time will be applied to seek groups to utilize the facilities immediately upon opening in 2006. Because of the stakeholders involved, there will be several indoor activities scheduled exactly when they are needed to impact the economy in the area. Mr. Pettyjohn stated that Cascadia plans to partner with the Chamber and the VCB in this regard. Mr. Pettyjohn reviewed current efforts to work with students at the Choice School in concert with Peninsula College in terms of integrating technology into the arts. Citing the success of Cornell University with regard to education in the hospitality industry, Mr. Pettyjohn indicated that Peninsula College hopes to attract 30-45 students to the area for this type of education. Councilman Campbell expressed the committee's best wishes to Cascadia, and discussion followed concerning the business plan and whether financial connnitments have been made to Cascadia. Mr. Pettyjohn responded that fund-raising efforts will commence in earnest in March, 2003, and he indicated that he has been told that Cascadia could not expect financial support from others in the absence of City support. Nevertheless, Cascadia currently has approximately $40-45,000 in the form of commitments. Mr. Pettyjohn briefly summarized efforts underway in the area of property acquisition. Discussion followed. Return to 2003 Lodging Tax Committee Return to 2003 Lodging Tax Committee: Tim Smith distributed ballots to the members, after which it was announced that 6 ballots had been cast for Michael Luehrs, and 2 ballots had been cast for John Platt. The name of Michael Luehers will be forwarded to the City Council as the recommended replacement for Zoe Bayton. Oak Street Conference Center Project Oak Street Conference Center Project: Tim Smith reported that, as a follow-up to the last Lodging Tax meeting, the "ball had been left in the developer's court". There was an expressed need for the developer to come forward with full financing, and Mr. Ehm indicated this week that he is continuing to work on that particular issue. There has been an appeal filed by a number of parties to the Shoreline Conditional Use Pennit, and the process to be initiated will commence with a January 3 teleconference among the parties concerned. A hearing will then follow April 28 - 30, 2003. - 2- LODGING TAX ADVISORY COMMITTEE December 12, 2002 Oak Street Conference Center Project (Cont'd) Lengthy discussion ensued as to the impacts of the appeal on Mr. Ehm's time line for the Conference Center and whether the committee should keep giving the project more time. It was pointed out by Councilman Carnpbell that the appeal was not ofMr. Ehm's making, and the City has submitted a letter of intent for the project. Further discussion and debate followed, and Steve Oliver indicated that many developers understand an appeal such as this is part of the process and is typical in the present day. This led to discussion as to how long funds will be set aside as relates to the $100,000 per year funding commitment on the part of the City. Bob Harbick pointed out that it would appear there will be excess funds, particularly as this project is delayed. However, it was noted that the City should not lose sight of the need for a conference center and the process initiated to get the conference center. Further, any funds considered to be excess might well be applied to other conference center opportunities should the effort with Mr. Ehmnot come to fruition. Steve Oliver emphasized the fact that the issue and timing of payments by the City is still subjectto final lease negotiations with Mr. Ehm. Tim Smith reiterated there are other options for the City to pursue in building a conference center if the funds are set aside. Adjoururnent Adjournment: The meeting adjourned at 4:20 p.m. ~o (I ~~ L{r:J:DA Becky J. Up , . y Clerk - 3 -