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HomeMy WebLinkAbout05-30-2025 Special Agenda Lodging Tax Advisory Committee * Special Meeting CITY OF May 30, 2025 - 10:00 AM A-I- JJ31JJ:& N:4- 1 East Main Street Suite 200, Conference Room 2 WASHINGTON AGENDA CALL TO ORDER PUBLIC PARTICIPATION A. The Special Lodging Tax Advisory Committee Meeting scheduled for Friday, May 30th, 2025 at 10:00 a.m. will be held in person and virtually. Virtual Participation Link: To listen to the meeting by phone or Zoom, please call the number below or click the link: Join Zoom Meeting httos://us06web.zoom.us/i/89241474411?Dwd=KbAlmNafkVKcIDZYNbCu8wZwKfW4oa.1 Meeting ID: 892 4147 4411 Passcode: 924941 One tap mobile +12532158782„89241474411# US (Tacoma) +12532050468„89241474411# US ROLL CALL AUDIENCE PARTICIPATION This is the place on the agenda where the public is invited to speak to the Board on any issue. A. The public can participate in-person or submit written comments in advance. Participants can submit written comments via mail, fax, or email. All written comments must be received prior to 5:00 p.m. on the day before the scheduled meeting and must be 350 words or less. Please mail written comments to: City of Auburn Attn: Jenn Francis, Economic Development Manager 25 W Main St Auburn, WA 98001 Please fax written comments to: Attn: Jenn Francis, Economic Development Manager Fax number: 253-804-3114 Email written comments to: jfrancis@auburnwa.gov If an individual requires accommodation to allow for remote oral comment because of a difficulty attending a meeting of the governing body, the City requests notice of the need for accommodation by 5:00 p.m. on the day before the scheduled meeting. Participants can request accommodation to be able Page 1 of 36 to provide a remote oral comment by contacting the Community Development Department in person, by phone (253) 215-8744, or by email (jfrancis@auburnwa.gov). ACTION ITEMS A. Grant Application Funding Requests Review and Vote on Grant Applications to recommend to City Council SCHEDULE FOR UPCOMING MEETINGS A. 2025 Upcoming Meeting Schedule Acknowledgment of upcoming LTAC meetings for the remainder of 2025 ADJOURNMENT Agendas and minutes are available to the public at the City Clerk's Office and on the City website (http://www.auburnwa.gov). Page 2 of 36 * CITY OF J\I.JBU1R.ts4 AGENDA BILL APPROVAL FORM WASHINGGTTON Agenda Subject: Meeting Date: Grant Application Funding Requests May 30, 2025 Review and Vote on Grant Applications to recommend to City Council Department: Attachments: Budget Impact: Community Development Pacific Raceways LTAC 2025 $115,000.00 Application for FY2025 LTAC Grant Application, TRex Race Sponsorship Administrative Recommendation: Background for Motion: Background Summary: At the Special Meeting on May 30, 2025, LTAC will discuss the Pacific Raceways and TRex Race Sponsorship applications, and will vote on which applications to recommend to City Council, and, if so, at what amount. Once LTAC reaches its decision, the recommendation will be given to City Council to decide to fund the grant applications as recommended. The Council may either approve or reject your recommendation. They may not alter it. If Council disagrees with your recommendation for funding, the matter will return to the LTAC Committee for review and comment, and after a mandatory 45-day period, the matter will return to Council for final action. Councilmember: Staff: Jason Krum Page 3 of 36 CITY OF -* 2025 Lodging Tax Grant Fund Application WASHINGTON See application due dates in Section 3 for 2025 submittal deadlines Complete application materials may be submitted: By email to ifrancis(aauburnwa.aov -OR- By mail to: City of Auburn, Attn:Jenn Francis, 25 West Main Street, Auburn, WA 98001 Lodging Tax Advisory Committee Mayor Nancy Backus, Chair Represent Business Authorized to Collect Represent Business Authorized to Receive Andy Cho, Garner Hotel Auburn Susan Roberts, Gosanko Chocolate Aman Ghag, Holiday Inn Express, Auburn Bob Fraser, Emerald Downs Vacant Elizabeth Butchko, Outlet Collection City Staff Support Jenn Francis, Economic Development Manager ifrancis(aauburnwa.aov (253) 215-8774 1 2025 LTAC Grant Application Page 4 of 36 TABLE OF CONTENTS 1. Lodging Tax Funding Guidelines Page 3 2. Information on Lodging Tax Funds and Who May Apply Page 4 3. Schedule Page 5 4. Reporting Requirements Page 6 5. Submittal Checklist Page 7 6. Insurance Requirements if Funded Page 8 7. Application Page 9 2 2025 LTAC Grant Application Page 5 of 36 1. LODING TAX FUNDING GUIDELINES Background The objective of the City of Auburn Lodging Tax Advisory Committee process is to support projects, which encourage eligible tourism and cultural activities and support tourism facilities in Auburn. The process is reviewed annually and the guidelines are updated in accordance with reported success of existing programs, potential for new programs, and changes in state law.A calendar for the application process will be established but will allow for emerging opportunities as they arise. Objectives for Hotel/Motel Tax Funds: • Generate increased tourism in Auburn resulting in overnight stays at local hotels. • Generate maximum economic benefit through overnight lodging, sale of meals and goods, and construction of tourism-related facilities. • Increase recognition of Auburn throughout the region as a destination for tourism. • Increase opportunities for tourism by developing new visitor activities. Allocation Guidelines: • The City, on an annual basis, shall seek funding proposals from organizations seeking to use Hotel/Motel Tax funds for promoting tourism. • Organizations seeking funding must complete an application form. • The Lodging Tax Advisory Committee shall review the proposals and make recommendations to City Council as to which applications should receive funding. • The final funding decision will be made by the City Council in the form of approval or denial of the recommendations - no amendments to recommendations will be made by the City Council. • Once approved for funding an organization must enter into a contract with the City and funding will be provided on a reimbursable basis. • Organizations receiving funding must submit a report at the end of the calendar year. 3 2025 LTAC Grant Application Page 6 of 36 2. INFORMATION ON LODGING TAX FUNDS & WHO MAY APPLY WHAT ARE "LODGING TAX FUNDS?" Lodging taxes are paid when people purchase lodging, such as renting a room at a hotel. HOW CAN THOSE FUNDS BE USED? Washington State law (RCW 67.28.1815) requires that funds be expended "...solely for the purpose of paying all or part of the cost of tourism promotion,acquisition of tourism-related facilities, or operation of tourism-related facilities..." Tourism promotion is defined as "...activities and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding marketing of special events and festivals designed to attract tourists." WHERE CAN THE FUNDS BE USED? The funds are to be used to draw tourists to stay in Auburn lodging overnight. WHO CAN APPLY FOR FUNDS? Any organization, including private businesses,can use the funds to advertise and promote tourism through the media.The promotion must be designed to attract tourists to Auburn with the goal of increasing the number of overnight stays in the City's lodging facilities. WHO DECIDES WHICH APPLICATIONS GET FUNDED? All complete application packets are reviewed by the Lodging Tax Advisory Committee (LTAC), which is charged with making recommendations for funding to the Auburn City Council who will make the final funding approval. 4 2025 LTAC Grant Application Page 7 of 36 3. SCHEDULE Below are the anticipated important dates for the 2025 grant application process. • Applications are due no later than 5:00PM on the dates identified below to allow a minimum of 10-days for LTAC review preparation. • Applications will be included with the regular LTAC agenda packet emailed to the committee and available online at least one week prior to the LTAC meeting. • LTAC will meet to discuss applications and to make funding recommendations at the next regularly scheduled meeting. • Any LTAC recommended funding requests will be scheduled for City Council final decision at the first scheduled meeting approximately two weeks after the LTAC recommendation. 1st Application Cycle 2nd Application 3rd Application Cycle Cycle Applications due 5:00PM, Friday, 5:00PM, Friday, 5:00PM, Friday, no later than: March 7, 2025 June 13, 2025 October 31, 2025 Public LTAC 10:00AM, Wednesday, 10:00AM, Wednesday, 10:00AM, Wednesday, meeting: March 19, 2025 July 9, 2025 November 12, 2025 City Council 7:00PM, Monday, 7:00PM, Monday, 7:00PM, Monday, decision: April 21, 2025 July 21, 2025 December 1, 2025 5 2025 LTAC Grant Application Page 8 of 36 4. REPORTING REQUIREMENTS Entities who receive lodging tax grant funds must report a significant amount of information to the city. This information includes: • Overall Attendance - the total number of people predicted to attend this activity, the actual number of people who attended this activity, and the method used to determine the attendance. • Attendance, 50+ miles - the number of people who travelled greater than 50 miles predicted to attend this activity,the actual number of people who travelled greater than 50 miles to attend the activity, and the method used to determine the attendance. • Attendance, Out of State, Out of Country-the number of people from outside the state and country predicted to attend this activity, the actual number of people from outside the state and country who attended this activity, and the method used to determine the attendance. • Attendance, Paid for Overnight Lodging - the number of people predicted to attend this activity and pay for overnight lodging, the actual number of people who attended this activity and paid for overnight lodging, and the method used to determine the attendance. • Attendance, Did Not Pay for Overnight Lodging - the number of people predicted to attend this activity without paying for overnight lodging, the actual number of people who attended this activity without paying for overnight lodging, and the method used to determine the attendance. • Paid Lodging Nights-the total projected and estimated actual number of paid lodging nights. One lodging night = one or more persons occupying one room for one night. 6 2025 LTAC Grant Application Page 9 of 36 5. SUBMITTAL CHECKLIST Place a check mark by each item to indicate your review & inclusion in your submittal packet. 1. ❑✓ Submit complete application packet by 5:00pm, of the associated due date. o Email application to ifrancis( auburnwa.aov or mail to City Hall (Attention: Jenn Francis), 25 West Main Street, Auburn, WA 98001. o Be sure to use application for FY2025 grant awards (template with preset font and margins) o Late applications will not be accepted 2.❑✓ All questions on application have been answered in a detailed,yet concise manner. 3.❑✓ Application has been reviewed and includes: a. ❑✓ Signature by a person authorized to bind the agency to a contract b.❑✓ Attachments that are no larger than 11" x 17" c. ❑ For Non-Profits, a copy of 501(c)3 or 501(c)6 tax exemption determination letter ✓❑ N/A d.❑✓ Marketing plan for the proposed project e. ❑✓ Operating budget for the proposed project f. ❑ Your organization's most recent Balance Sheet g.❑ Your organization's Articles of Incorporation and/or Bylaws h.❑ Documentation showing your governing body's authorization to submit the grant request Documentation consists of meetina minutes in which the governing body's resolution, motion or other official action is recorded. Examples include: "The board approves for (individual's name) to submit an Auburn lodging tax funding request, or (Individual's name) has the governing body's authorization to make funding requests for(name of the agency"or"I am the person organizing this event and am submitting this funding request for (name of event)). i. ❑ List of your current Board of Directors or other governing body of your organization The list must include names, phone numbers, addresses, and identify the principal officers of your governing body. j. ❑ Signed letter from your governing body Chairperson that provides the name, title, address and telephone number for the person authorized to sign this application. 7 2025 LTAC Grant Application Page 10 of 36 6. INSURANCE REQUIREMENTS (IF FUNDED) Unless otherwise waived by the Auburn Legal Department in writing, a Certificate of Insurance listing Auburn as additionally insured and including these minimum requirements will be required for all recipients (if funded): 1. Throughout the life of this Agreement the Contractor and its Subcontractors shall, at their own expense, maintain general liability insurance with an insurance carrier licensed to do business in the State of Washington, and with minimum coverage as follows: Bodily Injury Liability and Property Damage Liability Insurance,$1,000,000 each occurrence and $2,000,000 aggregate, with a deductible of not greater than $5,000. 2. Where automobiles are used in conjunction with the performance of this Agreement throughout the life of this Agreement the Contractor and its Subcontractors shall, at their own expense, maintain automobile liability insurance with an insurance carrier licensed to do business in the State of Washington and with minimum coverage as follows: Bodily Injury Liability and Property Damage Liability Insurance, $1,000,000 each occurrence or combined single limit coverage of$1,000,000. 3. General liability insurance and, if applicable, automobile liability insurance coverage shall be provided under a comprehensive general and automobile liability form of insurance, such as is usual to the practice of the insurance industry, including, but not limited to all usual coverage referred to as Personal Injury--including coverage A, B and C. If applicable, automobile liability insurance shall include coverage for owned, non- owned, leased or hired vehicles. 4. Auburn shall be named as an additional insured on all required policies, except automobile insurance, and all such insurance as is carried by the Contractor shall be primary over any insurance carried by Auburn. The Contractor shall provide a certificate of insurance to be approved by Auburn's Economic Development Manager prior to contract execution. 5. Auburn shall have no obligation to report occurrences unless a claim is filed with the Auburn City Clerk's office; nor shall Auburn have an obligation to pay premiums. 6. In the event of nonrenewal or cancellation of or material change in the coverage required, thirty (30) days written notice will be furnished to Auburn's Economic Development Manager prior to the date of cancellation, change or nonrenewal. Such notice to be sent to the City of Auburn - Economic Development Manager,25 West Main St., Auburn, WA 98001 or ifrancis(aauburnwa.gov. 7. It is further provided that no liability shall attach to the City of Auburn by reason of entering into a contract with the City,except as expressly provided within the terms and conditions of that contract. 8 2025 LTAC Grant Application Page 11 of 36 7.APPLICATION FOR LTAC GRANT FUNDING 1. Project Information a. Project Project Name: Pacific Raceways racing season featuring the NHRA Northwest Nationals Amount of Lodging Tax Funding Requested: $ 100,000.00 (Amount Requested must match Project Budget column a "Lodging Tax Funding Requested") Total Project Cost: $ 1,697,500.00 (Total Project Amount must match Project Budget column c "Total Project Cost") b. Applicant Organization Name of Applicant Organization: Pacific Raceways Track LLC Mailing Address: 31001 144th Ave SE Kent, WA 98042 Tax ID Number: 87-3045065 Organization Unified Business Identifier (UBI): 604814296 UBI Expiration Date: 10/31/2025 Type of Organization: Auto Race Track (Non-profit, For-profit, Municipality, Private business, etc.) c. Contact: Name: John Ramsey Title: General Manager Telephone: 2536395927 Email: johnr@pacificraceways.com Signature: The signatory declares that he/she is an authorized official of the applicant organization, is authorized to make this application, is authorized to commit the organization in financial matters, and will assure that any funds received as a result of this application are used only for the purposes set forth herein, and verifies that all the information contained in this application is valid and true to the best of his/her knowledge. 9 2025 LTAC Grant Application Page 12 of 36 2. Project Description a. Event Date(s): July 1, 2025 - June 30, 2026 b. Event Location: Pacific Raceways c. If there is a charge or fee for this activity, please describe how much and why. Racers pay a fee to compete depending on the event. Spectators pay a few that ranges from $85 for a premium seat at the NW Nationals to $10 for a road race. Most events have a spectator admission price of$20. d. Please provide a detailed,yet concise scope of work (mandatory). and/or proposed project/activity. Include information on the area the project will serve, its expected impact and list the responsible party(s). Pacific Raceways operates 12 months a year with 156 road course races and track days, 48 drag races, the motocross track on raceway property operates April - October and the regional karting track runs year-round. The largest event of the season, the NHRA NW Nationals has a 3-day attendance of more than 25,000 with spectators and racers from 40 states and 5 Canadian provinces. Nearly 60 percent of the fans who attend the NHRA race come from more than 50 miles away. Prnraertc from the nrant will ha i iced to hnIcter arlvertisinn and nrmmntinns to fans whn 3. Beneficiaries Please list and provide specific information regarding all individuals, businesses, areas, or organizations that will directly benefit from the project/activity. Last year, the City of Auburn received over$400,000 in media value from signage, mentions, and scenic shots on the FOX Television Network, which broadcast the NHRA race live. The City also received innumerable in-venue exposure from signage, booth space, sponsorship locations, and pre-race ceremony presence. The signage, newsletters, and webpages promoting Auburn are viewed year around as are replays of the NHRA race both on YouTube and the NHRA's own OTT channel. 4. Tourism Benefit a. Estimate how the funds will increase the amount of people traveling to Auburn to stay overnight in paid accommodations. As the only fully comprehensive and professional racetrack in the state, Pacific Raceways is a magnet for fans and competitors in the northwest. With over 200 race events a year, competitors and fans travel from throughout the state and beyond to attend races bringing tourists to the City throughout the year. As one of only 20 NHRA national races in the b. Estimate how the funds will increase the amount of people traveling to Auburn from more than 50 miles from their residences. Pacific Raceways has been in operation since 1960 and the NW Nationals is now in its 36th year and is a draw throughout the state with digital advertising, social media and traditional advertising used to attract fans from southwest, northern and eastern Washington counties and locations. c. Estimate how the funds will increase the amount of people traveling to Auburn from outside their state or country. Last year's NW Nationals drew fans and competitors from 40 states and 5 Canadian provinces. Over 2,000 fans came from Oregon and over 300 fans from states as far away as Florida. Last year, nearly 1,000 fans came from British Columbia, Canada. And that was for just one weekend. Other drag races as well as events on the road course draw nennle from western states and (anarda nn almnst every weekend The addvertisinn and 10 2025 LTAC Grant Application Page 13 of 36 5. Goals/Monitoring Describe the goals of the project. Will the project result in an increase in overnight stays by visitors in Auburn? If so. how will this increase be tracked and monitored? How will an increase in the sale of goods and services as a result of the proiect be measured? What other short or long-term economic benefits will occur and how will that be tracked? Why do you believe those project/activity outcomes are feasible? Note -Applicants will be required to submit a post-funding report providing pertinent data evaluating tourism benefits resulting from the use of lodging tax funds as compared with the estimates contained in this application. 1. Increase national, regional and local exposure to the City of Auburn as measured by Nielsen 360 Sports on television value from the FOX Television Network and cable's FS1 Network. 2. Increase the number of social media posts, newsletter stories, and other public relations efforts to promote Auburn hotels and businesses. 3. Build Friday night of the NW Nationals as a must-attend night by having Nitro cars qualify at night adding to spectator need to stay overnight. 4. Grow the Thursday night pre-race party at The Outlet Collection by adding more participants, super fans, and professional race teams. Measured by the number of participants and fans who attend and increase the number of City stops and visibility of Thursday's pre-face parade of hotrods and classic cars that winds its way through Auburn. Int-maca tha ni imhar of fanc whn attanrl tha avant ac maaci Irarl by Parinlan tirkatinn 6. Funding Requirements Due to funding constraints, partial funding may be recommended by the LTAC. If partial funding is received, how will that impact the project/activity? Please describe: The NHRA NW Nationals will happen in 2025 with this grant fully or partially funded. Future large events like the Nationals need the support of the City to remain economically viable. Pacific Raceways is committed to providing the City of Auburn with measurable value from the NHRA Northwest Nationals in 2025, but the race is in jeopardy in future years without the support of the Auburn and other local cities. Out-of-market advertising will be less without the grant in 2025. Other events will continue. 7. Use of Funds Provide detail on how the funds will be used. For example, $20,000 of the funds will be used for marketing, $5,000 for administration, $10,000 for Consultants, etc. $60,000 will be used for digital and traditional advertising for the NHRA Nationals $20,000 will be used for on-site promotion including Musco lighting for Friday night nitro qualifying to increase hotel stays Friday to Saturday $15,000 will be used for social media messaging and newsletter support throughout the race season promoting Auburn as a key lodging, shopping, and restaurant location. $5,000 will be used for on-location network scenic B-roll video and for measuring television value 11 2025 LTAC Grant Application Page 14 of 36 8. Project Budget (for non-capital projects). Do not include in-kind contributions. Income: A diversified funding base is important to the success of any project. Please list all other sources of funding for the project, both anticipated and confirmed and when that funding will be available to the project. Include your own funding, sponsorships, other grants, etc. Funding Source: List all revenue sources anticipated Amount Confirmed Date Available for 2025. Yes/No Do not include requested Lodging Tax Funds Spectator Admission $ 1,400,000.00 No 08/30/2025 Food & Beverage Sales $ 110,000.00 No 08/30/2025 Parking $ 105,000.00 No 08/30/2025 Royalties $75,000.00 No 08/30/2025 Credentials $ 15,000.00 No 08/30/2025 Expenses: Based on full funding, please list project costs. Note: Certain expenses may not be reimbursable, at the sole discretion of the City of Auburn. You will only be reimbursed at the authorized rates. Insurance is not an eligible cost. Lodging Tax Other Funds (Do Total Project Funds not include "in- Cost ** Requested * kind" dollars) Personnel (salaries & benefits) $ $ $ Administration (rent, utilities, postage, supplies,janitorial $ $ $ services, etc.) Marketing/Promotion $ 60,000.00 $ 75,000.00 $ 135,000.00 Direct Sales Activities $ $ $ Minor Equipment $ 20,000.00 $ 170,000.00 $ 190,000.00 Travel $ $ $ Contract Services $ 15,000.00 $ 10,000.00 $ 25,000.00 Other Describe below $ 5,000.00 $ 10,000.00 $ 15,000.00 TOTAL COST $ 100,000.00 $ 260,000.00 $ 365,000.00 12 2025 LTAC Grant Application Page 15 of 36 Description for Direct *Marketing and Promotion includes digital and traditional advertising Sales Activities, for race weekend Contract Services, * Minor Equipment includes Musco Lighting for Friday night qualifying Travel and Others * Contract Services includes public relations/social media contracted help for yar around effort to promote the Raceway and its partnership with Auburn * Other includes television valuation report from vendor and scenic video support from FOX Television NOTE: Since Pacific Raceways has its largest share of race In-Kind Contributions *Amount in column a"Lodging Tax Funds Requested"must match "Amount of Lodging Tax Funding Requested"under la of application. **Amount in column c "Total Project Cost"must match "Total Project Cost" under la of application. 9. Funding History a. Was this project funded with Auburn lodging tax funds in a prior fiscal year? Yes b. If you answered yes to 9a, provide prior years and how much funding was granted. In 2024 we received $50,000 from Lodging Tax Funds 10. Indicate what efforts have been made to access funding from additional sources? A request to the cities of Kent and Federal Way for LTAC funding has been made, but not yet funded. 11. Coordination and Collaboration Please provide information about any other organizations or agencies involved in this project/activity. Describe their level of involvement. Describe how this project coordinates with other tourism promotion efforts or services in the area, including Chambers of Commerce, local festivals, local lodging and restaurants.You may attach up to three letters of support from these organizations. Pacific Raceways enjoys the support of other local cities such as Kent and Federal Way and the NHRA NW Nationals in particular has the support of the city Mayors from Auburn, Kent, and Federal Way. The Seattle Sports Commission endorses the on-going effort to increase out-of-market competitors and fans who attend races and events as does King County government agencies and the Metropolitan King County Council. Local businesses exist throughout Auburn and the Puget Sound region to support racing and events at Pacific Raceways. 13 2025 LTAC Grant Application Page 16 of 36 12. Certification The applicant hereby certifies and confirms: 1. That it does not now nor will it during the performance of any contract resulting from this proposal unlawfully discriminate against any employee, applicant for employment, client, customer, or other person(s) by reason of race, ethnicity, color, religion, age, gender, national origin, or disability; 2. That it will abide by all relevant local, state, and federal laws and regulations; 3. That it has read and understands the information contained in this application for funding and is in compliance with the provisions thereof, and; 4. That the individual signing below has the authority to certify to these provisions for the applicant organization, and declares that he/she is an authorized official of the applicant organization, is authorized to make this application, is authorized to commit the organization in financial matters, and will assure that any funds received as a result of this application are used for the purposes set forth herein. 04/29/2025 Signature: Date John Ramsey, General Manager Printed Name &Title of Chief Administrator/Authorizing Official 14 2025 LTAC Grant Application Page 17 of 36 r , AU BURN 2025 Lodging Tax Grant Fund Application WASh INGTON See application due dates in Section 3 for 2025 submittal deadlines Complete application materials may be submitted: By email to ifrancisc auburnwa day -OR- By mail to: City of Auburn, Attn: Jenn Francis, 25 West Main Street, Auburn, WA 98001 Lodcinci Tax Advisory Committee Mayor Nancy Backus, Chair Represent Business Authorized to Collect Represent Business Authorized to Receive Andy Cho, Garner Hotel Auburn Susan Roberts, Gosanko Chocolate Aman Ghag, Holiday Inn Express, Auburn Bob Fraser, Emerald Downs Vacant Elizabeth Butchko, Outlet Collection City Staff Support Jenn Francis, Economic Development Manager ifra nci s(aaa u btu rnwa.aov (253) 215-8774 1 2025 LTAC Grant Application Page 18 of 36 TABLE OF CONTENTS 1. Lodging Tax Funding Guidelines Page 3 2. Information on Lodging Tax Funds and Who May Apply Page 4 3. Schedule Page 5 4. Reporting Requirements Page 6 5. Submittal Checklist Page 7 6. Insurance Requirements if Funded Page 8 7. Application Page 9 2 2025 LTAC Grant Application Page 19 of 36 1. LODING TAX FUNDING GUIDELINES Background The objective of the City of Auburn Lodging Tax Advisory Committee process is to support projects, which encourage eligible tourism and cultural activities and support tourism facilities in Auburn. The process is reviewed annually and the guidelines are updated in accordance with reported success of existing programs, potential for new programs, and changes in state law.A calendar for the application process will be established but will allow for emerging opportunities as they arise. Objectives for Hotel/Motel Tax Funds: O Generate increased tourism in Auburn resulting in overnight stays at local hotels. P Generate maximum economic benefit through overnight lodging, sale of meals and goods, and construction of tourism-related facilities. • Increase recognition of Auburn throughout the region as a destination for tourism. • Increase opportunities for tourism by developing new visitor activities. Allocation Guidelines: • The City, on an annual basis, shall seek funding proposals from organizations seeking to use Hotel/Motel Tax funds for promoting tourism. • Organizations seeking funding must complete an application form. • The Lodging Tax Advisory Committee shall review the proposals and make recommendations to City Council as to which applications should receive funding. • The final funding decision will be made by the City Council in the form of approval or denial of the recommendations — no amendments to recommendations will be made by the City Council. • Once approved for funding an organization must enter into a contract with the City and funding will be provided on a reimbursable basis. • Organizations receiving funding must submit a report at the end of the calendar year. 3 2025 LTAC Grant Application Page 20 of 36 2. INFORMATION ON LODGING TAX FUNDS & WHO MAY APPLY WHAT ARE "LODGING TAX FUNDS?" Lodging taxes are paid when people purchase lodging, such as renting a room at a hotel. HOW CAN THOSE FUNDS BE USED? Washington State law (RCW 67.28.1815) requires that funds be expended "...solely for the purpose of paying all or part of the cost of tourism promotion,acquisition of tourism-related facilities, or operation of tourism-related facilities..." Tourism promotion is defined as ...activities and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding marketing of special events and festivals designed to attract tourists." WHERE CAN THE FUNDS BE USED? The funds are to be used to draw tourists to stay in Auburn lodging overnight. WHO CAN APPLY FOR FUNDS? Any organization, including private businesses, can use the funds to advertise and promote tourism through the media.The promotion must be designed to attract tourists to Auburn with the goal of increasing the number of overnight stays in the City's lodging facilities. WHO DECIDES WHICH APPLICATIONS GET FUNDED? All complete application packets are reviewed by the Lodging Tax Advisory Committee (LTAC), which is charged with making recommendations for funding to the Auburn City Council who will make the final funding approval. 4 2025 LTAC Grant Application Page 21 of 36 3. SCHEDULE Below are the anticipated important dates for the 2025 grant application process. • Applications will typically be due no later than 5:00pm the Friday • Applications will be included with the regular LTAC agenda packet emailed to the committee and available online at least one week prior to the LTAC meeting. • LTAC will meet to discuss applications and to make funding recommendations at the next regularly scheduled meeting. • Any LTAC recommended funding requests will be scheduled for City Council final decision at the first scheduled meeting approximately two weeks after the LTAC recommendation. . 2025 Grant Application Process Timelines 1st Application Cycle _ 2nd Application 3rd Application Cycle Cycle Applications due 5:00PM, Friday, 5:00PM, Friday, 5:00PM, Friday, no later than: March 7, 2025 June 13, 2025 October 31, 2025 Public LTAC 10:00AM, Wednesday, 10:00AM, Wednesday, 10:00AM, Wednesday, meeting: March 19, 2025 July 9, 2025 November 12, 2025 City Council 7:00PM, Monday, 7:00PM, Monday, 7:00PM, Monday, decision: April 21, 2025 July 21, 2025 December 1, 2025 5 2025 LTAC Grant Application Page 22 of 36 4. REPORTING REQUIREMENTS Entities who receive lodging tax grant funds must report a significant amount of information to the city. This information includes: • Overall Attendance - the total number of people predicted to attend this activity, the actual number of people who attended this activity, and the method used to determine the attendance. • Attendance, 50+ miles - the number of people who travelled greater than 50 miles predicted to attend this activity,the actual number of people who travelled greater than 50 miles to attend the activity, and the method used to determine the attendance. • Attendance, Out of State, Out of Country-the number of people from outside the state and country predicted to attend this activity, the actual number of people from outside the state and country who attended this activity, and the method used to determine the attendance. • Attendance, Paid for Overnight Lodging - the number of people predicted to attend this activity and pay for overnight lodging, the actual number of people who attended this activity and paid for overnight lodging, and the method used to determine the attendance. • Attendance, Did Not Pay for Overnight Lodging - the number of people predicted to attend this activity without paying for overnight lodging, the actual number of people who attended this activity without paying for overnight lodging, and the method used to determine the attendance. • Paid Lodging Nights-the total projected and estimated actual number of paid lodging nights. One lodging night = one or more persons occupying one room for one night. 6 2025 LTAC Grant Application Page 23 of 36 5. SUBMITTAL CHECKLIST Place a check mark by each item to indicate your review & inclusion in your submittal packet. 1. ❑✓ Submit complete application packet by 5:00pm, of the associated due date. o Email application to ifranciscaauburnwa.clov or mail to City Hall (Attention: Jenn Francis), 25 West Main Street, Auburn, WA 98001. o Be sure to use application for FY2025 grant awards (template with preset font and margins) o Late applications will not be accepted 2.❑✓ All questions on application have been answered in a detailed,yet concise manner. 3.❑✓ Application has been reviewed and includes: a. ❑✓ Signature by a person authorized to bind the agency to a contract b.❑✓ Attachments that are no larger than 11" x17" c. ❑ For Non-Profits, a copy of 501(c)3 or 501(c)6 tax exemption determination letter ❑✓ N/A d.❑✓ Marketing plan for the proposed project e. ✓❑ Operating budget for the proposed project f. ❑ Your organization's most recent Balance Sheet g.❑ Your organization's Articles of Incorporation and/or Bylaws h.❑ Documentation showing your governing body's authorization to submit the grant request Documentation consists of meeting minutes in which the governing body's resolution, motion or other official action is recorded. Examples include: "The board approves for (individual's name) to submit an Auburn lodging tax funding request, or (Individual's name) has the governing body's authorization to make funding requests for(name of the agency"or"I am the person organizing this event and am submitting this funding request for (name of event)). i. ❑ List of your current Board of Directors or other governing body of your organization The list must include names, phone numbers, addresses, and identify the principal officers of your governing body. j. ❑ Signed letter from your governing body Chairperson that provides the name, title, address and telephone number for the person authorized to sign this application. 7 2025 LTAC Grant Application Page 24 of 36 6. INSURANCE REQUIREMENTS (IF FUNDED) Unless otherwise waived by the Auburn Legal Department in writing, a Certificate of Insurance listing Auburn as additionally insured and including these minimum requirements will be required for all recipients (if funded): 1. Throughout the life of this Agreement the Contractor and its Subcontractors shall, at their own expense, maintain general liability insurance with an insurance carrier licensed to do business in the State of Washington, and with minimum coverage as follows: Bodily Injury Liability and Property Damage Liability Insurance, $1,000,000 each occurrence and $2,000,000 aggregate, with a deductible of not greater than $5,000. 2. Where automobiles are used in conjunction with the performance of this Agreement throughout the life of this Agreement the Contractor and its Subcontractors shall, at their own expense, maintain automobile liability insurance with an insurance carrier licensed to do business in the State of Washington and with minimum coverage as follows: Bodily Injury Liability and Property Damage Liability Insurance, $1,000,000 each occurrence or combined single limit coverage of$1,000,000. 3. General liability insurance and, if applicable, automobile liability insurance coverage shall be provided under a comprehensive general and automobile liability form of insurance, such as is usual to the practice of the insurance industry, including, but not limited to all usual coverage referred to as Personal Injury--including coverage A, B and C. If applicable, automobile liability insurance shall include coverage for owned, non- owned, leased or hired vehicles. 4. Auburn shall be named as an additional insured on all required policies, except automobile insurance, and all such insurance as is carried by the Contractor shall be primary over any insurance carried by Auburn. The Contractor shall provide a certificate of insurance to be approved by Auburn's Economic Development Manager prior to contract execution. 5. Auburn shall have no obligation to report occurrences unless a claim is filed with the Auburn City Clerk's office; nor shall Auburn have an obligation to pay premiums. 6. In the event of nonrenewal or cancellation of or material change in the coverage required, thirty (30) days written notice will be furnished to Auburn's Economic Development Manager prior to the date of cancellation, change or nonrenewal. Such notice to be sent to the City of Auburn - Economic Development Manager,25 West Main St., Auburn, WA 98001 or ifrancisfa auburnwa.aov. 7. It is further provided that no liability shall attach to the City of Auburn by reason of entering into a contract with the City, except as expressly provided within the terms and conditions of that contract. 8 2025 LTAC Grant Application Page 25 of 36 7. APPLICATION FOR LTAC GRANT FUNDING 1. Project Information a. Project Project Name: T-Rex World Championship Amount of Lodging Tax Funding Requested: $ 15,000.00 (Amount Requested must match Project Budget column a "Lodging Tax Funding Requested") Total Project Cost: $ 15,000.00 (Total Project Amount must match Project Budget column c "Total Project Cost") b. Applicant Organization Name of Applicant Organization: Emerald Downs Racing LLC Mailing Address: 2300 Ron Crockett Dr Auburn WA 98001 Tax ID Number: 47-2966969 Organization Unified Business Identifier (UBI): 603453-904 UBI Expiration Date: Type of Organization: LLC (Non-profit, For-profit, Municipality, Private business, etc.) c. Contact: Name: Philip Ziegler Title: President Telephone: 253-288-7004 Email: philz@emeralddowns.com Signature: f L. The signatory declares that he/she is an authorized official of the applicant organization, is authorized to make this application, is authorized to commit the organization in financial matters, and will assure that any funds received as a result of this application are used only for the purposes set forth herein, and verifies that all the information contained in this application is valid and true to the best of his/her knowledge. 9 2025 LTAC Grant Application Page 26 of 36 2. Project Description a. Event Date(s): June 29 (Broadcast date on ESPN2 in Late July/Early Aug b. Event Location: Emerald Downs Racetrack c. If there is a charge or fee for this activity, please describe how much and why. $10 for adults, $5 ages 5-17, under 4 free. Military & Tribal members also free. This is our regular admission charge. d. Please provide a detailed,yet concise scone of work (mandatory] and/or proposed project/activity. Include information on the area the project will serve, its expected impact and list the responsible party(s). The T-Rex Race originated in 2017 and has grown into a worldwide social media phenomenon. Hundreds of millions of views on Facebook plus other social media. People now travel from other states and other countries to participate. 3. Beneficiaries Please list and provide specific information regarding all individuals, businesses, areas, or organizations that will directly benefit from the project/activity. This will benfit Auburn tourism by being a presenting sponsor plus area hotels and businesses. The event inslf draws a large crown and hundreds of thousands of people will see the event worldwide on ESPN2. 4. Tourism Benefit a. Estimate how the funds will increase the amount of people traveling to Auburn to stay overnight in paid accommodations. Participants will be coming from out of state and out of country to participate. Auburn Tourism will also be featured on a national ESPN2 broadcast of the event which will air in late July/early August b. Estimate how the funds will increase the amount of people traveling to Auburn from more than 50 miles from their residences. We will have about 300 participants of which half will be coming from more than 50 miles. c. Estimate how the funds will increase the amount of people traveling to Auburn from outside their state or country. The exposure for Auburn via social media and ESPN will be significant. 10 2025 LTAC Grant Application Page 27 of 36 5. Goals/Monitoring Describe the goals of the project. Will the project result in an increase in overnight stays by visitors in Auburn? If so, how will this increase be tracked and monitored?, How will an increase in the sale of aoods and services as a result of the oroiect be measured? What other short or long-term economic benefits will occur and how will that be tracked? Why do you believe those project/activity outcomes are feasible? Note -Applicants will be required to submit a post-funding report providing pertinent data evaluating tourism benefits resulting from the use of lodging tax funds as compared with the estimates contained in this application. By sponsoring the event Auburn will receive exposure as the Presenting Sponsor. The package also includes 750 tickets which are good for any rce day and can be used by hotels as incentive to stay in Auburn, 6. Funding Requirements Due to funding constraints, partial funding may be recommended by the LTAC. If partial funding is received, how will that impact the project/activity? Please describe: No impact. 7. Use of Funds Provide detail on how the funds will be used. For example, $20,000 of the funds will be used for marketing, $5,000 for administration, $10,000 for Consultants, etc. The entire amount will be used for production costs for the ESPN program which will promote Auburn as the presenting sponsor. 11 2025 LTAC Grant Application Page 28 of 36 8. Project Budget (for non-capital projects). Do not include in-kind contributions. Income: A diversified funding base is important to the success of any project. Please list all other sources of funding for the project, both anticipated and confirmed and when that funding will be available to the project. Include your own funding, sponsorships, other grants, etc. Funding Source: List all revenue sources anticipated Amount Confirmed Date Available for 2025. Yes/No Do not include requested Lodging Tax Funds none $ $ Expenses: Based on full funding, please list project costs. Note: Certain expenses may not be reimbursable, at the sole discretion of the City of Auburn. You will only be reimbursed at the authorized rates. Insurance is not an eligible cost. Lodging Tax Other Funds (Do Total Project Funds not include "in- Cost ** Requested * kind" dollars) Personnel (salaries & benefits) $ $ $ Administration (rent, utilities, postage, supplies,janitorial $ $ $ services, etc.) Marketing/Promotion $ 15,000.00 $ 10,000.00 $ 25,000.00 Direct Sales Activities $ $ $ Minor Equipment $ $ $ Travel $ $ $ Contract Services $ $ $ Other Describe below $ $ $ TOTAL COST $ 15,000.00 $ 10,000.00 $ 25,000.00 12 2025 LTAC Grant Application Page 29 of 36 Description for Direct Production costs for 30 minute program on ESPN2 Sales Activities, Contract Services, Travel and Others In-Kind Contributions none *Amount in column a"Lodging Tax Funds Requested"must match "Amount of Lodging Tax Funding Requested" under la of application. **Amount in column c "Total Project Cost"must match "Total Project Cost" under la of application. 9. Funding History a. Was this project funded with Auburn lodging tax funds in a prior fiscal year? No b. If you answered yes to 9a, provide prior years and how much funding was granted. 10. Indicate what efforts have been made to access funding from additional sources? We sell sponsorships for this and other events. 11. Coordination and Collaboration Please provide information about any other organizations or agencies involved in this project/activity. Describe their level of involvement. Describe how this project coordinates with other tourism promotion efforts or services in the area, including Chambers of Commerce, local festivals, local lodging and restaurants.You may attach up to three letters of support from these organizations. none 13 2025 LTAC Grant Application Page 30 of 36 12. Certification The applicant hereby certifies and confirms: 1. That it does not now nor will it during the performance of any contract resulting from this proposal unlawfully discriminate against any employee, applicant for employment, client, customer, or other person(s) by reason of race, ethnicity, color, religion, age, gender, national origin, or disability; 2. That it will abide by all relevant local, state, and federal laws and regulations; 3. That it has read and understands the information contained in this application for funding and is in compliance with the provisions thereof, and; 4. That the individual signing below has the authority to certify to these provisions for the applicant organization, and declares that he/she is an authorized official of the applicant organization, is authorized to make this application, is authorized to commit the organization in financial matters, and will assure that any funds received as a result of this application are used for the purposes set forth herein. /r"));,_ Signature: 05/23/2025 Date Philip Ziegler Printed Name &Title of Chief Administrator/Authorizing Official 14 2025 LTAC Grant Application Page 31 of 36 Gold Sponsorship — 4 Available Premium Sponsorship Social Media • Name added to event title as presenting sponsor • Posting on Facebook,Instagram and X • Name&logo included in event press releases • One(1)email blast that features our partnership • Logo included on all marketing material for event • Logo included on emeralddowns.com homepage • Four(4) :30 second television commercials during broadcast day Hospitality • Four track announcements throughout the day a 750 general admission tickets for event($7,500 value) • One(1)fully hosted VIP private party for up to 20 guests Print 2025 Available Lift„„. • Full page program advertisement for entire 2025 season • One Rail Sign for entire 2025 season All Family Fun Weekends May 24-26, June 21-22, & Race Day Activation (sold) August 9-10 • One(1)naming rights—thoroughbred feature race*Induding Four(4)winner'sdrdephotographs All Fab Friday Nights June 6 — Sept 5 • On-site activation table Indian Relay/Father's Day Friday June 13 —Sunday June 15 T-Rex Races Sunday, June 29 INVESTMENT $15,000 7 Page 32 of 36 Top Events T-Rex World Championship Races Date:June 29 Event Info:Get ready for prehistoric fun and excitement as Emerald Downs 6th running of the T-Rex's takes over the track.This is a roar-some race that you don't want to miss! Media Links: 2024 Races CNN FACEBOOK USA TODAY DAILY MAIL UNILAD SPORTbible UPI ABC WORLD NEWS T'�00•e ,,•rr.�,w www•..,•..i.sa, T,.•.wYY lww•r a ;;;Ii7 1—REX -� 0 ----1 4, • r ► .. ilk. 1 El1 4 • 1: 0/I ., ; - ' -r4, I. :t• • t Y'.I--�. �• ,g}/ - Hothinq says"good time ilk',t so it...... m..• ,••,~ f 1Ff - people In T.ra.suits. I ■U L6 U N A ill F I U M S li i P 5 mmehtpti 1it,, ' `� r 150 runners wear inflatable T-rex ^°^� I suits for dinosaur race at Emerald 29 JUNE 2025 Ai 1 PM �_ Downs race track f ism run In Aub .I%aahm w n n•gtun took to the Emerald Oewee ck for• - _ 5 me uo dittouurren•Rrr It waspoetpned due to the pandrmtr Asa CFO,sec how = l i _ : you can olive your company s future More Videos _ -.'L w, i Diver wknwws breathtaking rim.,fever of J ^ 4.1S EMERALD DOWNS Zo Page 33 of 36 PROGRAM ADVERTISING . _ . Official Program Race Entitlements Distribution:130,000 per Season A Race Named in Your Honor S Advertising Types: weight��r.c - IQ or Small,Ws Ham'IL AM eld Includes: Color Full Page jaw • Recognition in Official Program B&W 1/3 Page Logo ��- • Track Announcement before Race Tror•1111 SWIM.POI* • Personal Escort to the Winner's Circle , *^,ram��_= . .,._. • Brand Recognition on Big Screen ~r • Commemorative 8 x 10" Photo r..__ ...r� as 1 41uolf EIJOCn9PFON _ ..,.�.....r.r. '� w ••••FLAT OUT RNE L 119I•••• ••`oLosNin... au 1 r� Q m E L?` .1 . .1 ti......, SPECIALIZING!N SAME Z — w _ 5 NIIIHAHHAHLYW II I L 1191= DAY SERVICE THROUGHOUT L 1� �' n s — WA 9 NORTHERN OREGON ^ — �,,, •�.. err `2m•I••1••,•••••••� 1� n LOLinF11'1[YFJ1 L! tt� .y. 6 EOSEL89960LD''-1 r L_ 123°:..W." �.......vr� 7 5.+r a — ta "` ""''""A6... #1 1N SAME DAY ,-, I al. 4444 � � L 123 SERVICE .............i '_ • ins,}Li r% r .. •DISCOUNTS oN 1AULTIPLE SHIPMENTS 5 fW1 l EnsOC1f LI '8 EML1EME -� L as .-04 •INTEFIUNING m� .rr.....y . . • .. ' '~: uweir •FLAT BED SERVICE WfTH TARPS 6 9C9 HAawlr�•••+••�• 'r f -�.I til rryy rw.•...�w r.s. •TRUCK AND DRIVER RENTAL Let ge .4"NATESTARel L 123 N•, �• 1►l.r.r�..�. N t '�?.� .. ..... ;.r. r .LIFT GATE SERVICE _ tAlir" .� l -^'; ;� w •AIRPORT PICK-UP&DELIVERIES 7 CPRTT f �+• 10 MAIfASPMeliE1.... 119� �•L ut •• ' ~r An •TFWLEFi SPOTS WI OFFER: 2 MINX IA L Tig w l LllSel 28'8 53'VAN TRAILERS 28'6 48'FLATBEDS ■ �� 1201R I h.TYmnw WAGb121 Ri 263 672.1178 TOLL Ff4a:863.E08341e FAIL 203- -38B0 EMERALD DOWNS 17 Page 34 of 36 TV/MEDIA , _ ., _ : , _ _ - TV Broadcast Y3 i i.i..u.i.Sidi i{ ,:AN:11. 1,100 sq Ft Big Screen and over 1,200 TVs National/International Satellite Network - _ Opportunities � _ ••. - - - -:--: " r,=-- • :30 Second Commercial _ j:. • Standalone Advertising - " ' - ' 1 rnTlpHi MARK r HORSE RACING NW - " 3 i{ 5 WITH JOE WITHEE &VINCE BRUUN Podcast / Spots - LAl'(:`17 ir,.,0r$,I•{f•NDI'.:PPf6!G P,M)F.',UI.I! ...1., I;i:'I' i I,i-.'!:,14GS Weekly Podcast on(Tunes&Google Play Opportunity STARTS: as;_ 15T: 109 Live mentions 3Rd: 75 TON 3* 55'S:, Link: Horse Racine NW BOWEN IiOTAi. -.. .. -� i F1.s65,B''33 •wl N'J'r 11.pf+.1, I i 11 111d Ili Lir Rocca Boot.Wti 1 O•Win Mpelltlltt Track Announcement From Track Announcer Tom Harris r,_ -7-----(77,1ISQ..‹. '• FAIr Sr. EMERALD DOWNS 18 Page 35 of 36 CITY OF J\I.JBU1R.ts4 AGENDA BILL APPROVAL FORM WASHINGGTTON Agenda Subject: Meeting Date: 2025 Upcoming Meeting Schedule May 30, 2025 Acknowledgment of upcoming LTAC meetings for the remainder of 2025 Department: Attachments: Budget Impact: Community Development None Administrative Recommendation: Background for Motion: Background Summary: Upcoming LTAC meetings scheduled: July 9, 2025 at 10:00 a.m. November 12, 2025 at 10:00 a.m. Councilmember: Staff: Jason Krum Page 36 of 36