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HomeMy WebLinkAboutStep requirementsLodging Tax Grant Program for Tourism -Related, Large- ital Projects Background Kittitas County imposes a lodging tax assessed on the sale or charge made for furnishings of lodging according to RCW 67.28.180 and RCW 67.28.181. In accordance with the tax and Washington State law, a Lodging Tax Advisory Committee (LTAC) has also been established. The committees' purpose is to advise and recommend to the Board of County Commissioners how excise taxes on lodging should be allocated to support tourism which in turn generates revenue. Uses According to Law: RCW 67.28.1816 states the following: Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly through a convention and visitor bureau or destination marketing organization for: ...(c) Supporting the operations and capital expenditures of tourism -related facilities owned or operated by a municipality... Definitions included in state law which should be considered in any application requesting funding include: 1. Tourism means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. 2. Tourism promotion means activities, operations, 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 or the operation of special events and festivals designated to attract tourists. 3. Tourism -related facility means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor that is: (a) (i) owned by a public entity; ...and (b) used to support tourism, performing arts, or to accommodate tourist activities. Grant Program Description This grant program is one component of an overall strategy to enhance the economic value of tourism in Kittitas County. The intent of the program is to develop and implement a Capital Improvement Plan (CIP) for developing tourism -related, large-scale municipality -owned projects throughout the County which contribute to that strategy. Kittitas County Tourism Infrastructure Plan: As the basis for developing this grant program and the CIP, the Board of County Commissioners (BOCC) adopted the Kittitas County Tourism Infrastructure Plan. The plan includes, among other things, an inventory of tourism -related facilities across the County, an evaluation of potential tourism opportunities, goals for guiding tourism development, and a list of prioritized actions for implementation. The plan was created with the assistance and input of various tourism -related interest groups from across the County through a process of open meetings, tourism surveys, open house events, focus group meetings and data research. Municipality Ownership: In order to be eligible for funding under this program, projects must be owned by a municipality in Kittitas County. Projects may be privately developed, but must be transferred to municipality ownership at completion. Proof of ownership and/or transfer agreements may be a requirement of any funding award and reimbursement request. Application Process: Projects seeking funding assistance within this grant program must complete each step of a four -step grant process. Figure A: i i:i f;,•;} Application H for CIP List _-L.-- A Feasibility rf: Analysis .Design • Permitting tea: i Construction The intent of the process is to create the CIP with potential projects which are eligible under state law for receiving lodging tax funds. The list will be prioritized based on criteria derived from the Kittitas County Tourism Infrastructure Plan. Projects must successfully navigate through each step of the process to remain in the CIP. The CIP will be updated through this application process at least once every five (5) years. The CIP is managed by the County's LTAC, with assistance from County staff and a Technical Review Team (TRT) and as approved by the BOCC, through the four -step process described above in Figure A. The TRT is an advisory body made up of 5 to 7 members to include volunteers with industry experience and technical knowledge in planning, design, and development of projects. Although the TRT may also include County staff, it is not intended to duplicate other county or city permitting, planning, or project compliance processes. Its scope is to assure that the CIP strategic intent is met, that information provided in the project application remains current and is accurate, and to advise the LTAC of the applicant's completion of each project requirement at each step. All members of the TRT are appointed by the BOCC. Steps 1 and 2 determine a project's eligibility for funding consideration. Projects are eligible for funding consideration in Steps 3 and 4 of the process. However, it should be noted that completion of Steps 1, 2, and/or 3 is not a guarantee of future funding. Projects which become eligible for funding consideration must compete with all other eligible projects as funds become available. All funding decisions are subject to recommendation of the LTAC and approval by the Board of County Commissioners. Awards may be authorized for projects which have completed Steps 1 and 2 annually as funding allows, and may include consideration of how a project ranks in priority with regard to all other eligible projects, project readiness, and other factors as determined by the LTAC. All eligible projects which have completed Steps 1 and 2 of this process will be notified each year when funding is available, the amount of funding, and the process for funding decisions. It is the intent of this process that project funding will be considered annually. It is not the intent of this process to be the sole funding source for any non -county owned project and some county -owned projects. Strict minimum matching fund commitments will be required from all non -county owned projects as well as from some county -owned projects (see page 7 "Matching Funds Requirements". Each step of the process is illustrated in figure 2 and further described as follows: Step 1 —Application for CIP Project List Applicants must first apply and be approved to be included in the program's CIP. In order to generate the program's CIP, the County will request project proposals at least once every five years. To facilitate this process, the County's LTAC will create an application form to use in evaluating proposals. Applicants must fill out the form and submit it to the LTAC. The LTAC will review the proposals and make recommendations for creating the list of projects for the program's CIP to the Board of County Commissioners. All applications will be rated and ranked according to the rating sheet included in this packet. The Board of County Commissioners will make the final decision to approve or reject the list. Step 2 — Feasibility Analysis Applicants whose projects are included in the program's capital improvement plan shall propose a scope of work to determine overall project feasibility. The scope of work will be included in a Step 2 agreement between the applicant and the County. The LTAC shall manage all agreements and will submit the proposed Step 2 agreement to the TRT for recommendation. The LTAC and the TRT may recommend modifications to the scope of work for project feasibility requirements as necessary. Feasibility requirement may include, but are not limited to, long term operations and management plan, site evaluations, funding mechanisms, market analysis, business plan development, etc. The LTAC's and TRT's recommendations shall be submitted to the Board of County Commissioners for final approval. No funding will be included in Step 2 agreements. Step 2 agreements will be reviewed at least annually by the LTAC and the TRT to assess progress and review compliance. The LTAC and the TRT may meet more frequently if needed and/or requested by the applicant. Applicants who do not meet Step 2 agreement requirements within the timeframe outlined in the agreement will not continue in this program or remain on the CIP. Step 2 agreement amendments, including the addition of requirements, modifications of existing requirements, or time extensions shall be reviewed by the LTAC and the TRT. Recommendations from the LTAC and the TRT shall be submitted to the Board of County Commissioners for final decision. Applicants must complete all Step 2 agreement requirements prior moving to Step 3 in this process. To be considered complete, an applicant must request a review for completeness from the LTAC and the TRT. The LTAC and the TRT shall review the Step 2 agreement requirements and submit a written recommendation to the Board of County Commissioners for approval. If a project is accepted as part of the County's CIP and at the time of acceptance it has completed feasibility analysis and requirements, a Step 2 agreement may not be required. Applicants may be granted a waiver from the Step 2 agreement requirement by making request to the LTAC and the TRT for review of complete feasibility work and requirements. The LTAC and the TRT shall review the waiver request and supporting documentation and submit a recommendation to the BOCC. The BOCC shall have the final authority to accept or reject the recommendation. Step 3 — Design and Permitting Applicants whose projects meet all the requirements of their Step 2 agreement shall propose a scope of work for final project planning, design and permitting to the LTAC for approval. The scope of work will be included in a Step 3 agreement between the applicant and the County. The LTAC will submit the Step 3 agreement to the TRT for recommendation. The LTAC and the TRT may recommend modifications to the proposed scope of work for final project planning, design and permitting requirements necessary. The TRT shall limit its review to assuring completion of project design, planning and permitting requirements; its function is considered non -duplicative of other county and city permitting, planning, and project completion requirements and it shall have no authority to make recommendations or decisions with regard to funding. The LTAC shall consult annually with county financial staff as directed by the County Auditor and shall consider all eligible Step 3 and Step 4 agreements along with available funding resources. The LTAC shall provide a written recommendation for funding eligible Step 3 and Step 4 agreements to the Board of County Commissioners for consideration. The recommendation shall include which agreements to fund, the funding amount for each, and a written explanation for the recommendation. The recommendation shall also include a listing of the currently eligible projects requesting funding which are not included in the recommendation. Applicants will only be held to the timeframe requirements included in Step 3 and Step 4 agreements if adequate funding is awarded. The Board of County Commissioners shall either accept or reject the recommendation from the LTAC. Step 3 agreements will be reviewed at least annually by the LTAC and the TRT to assess progress and review compliance. The LTAC and the TRT may meet more frequently if needed and/or requested by the applicant. Applicants who do not meet Step 3 agreement requirements within the timeframe outlined in the agreement will not continue in this program or remain on the CIP. However, projects may reapply to be placed on the CIP during the next project application cycle. Step 3 agreement amendments shall be reviewed by the LTAC and the TRT Recommendations from the LTAC and the TRT for amendments shall be submitted to the Board of County Commissioners for final decision. Applicants must complete all Step 3 agreement requirements prior moving to Step 4 in this process. To be considered complete, an applicant must request a review for completeness from the LTAC and TRT. The LTAC and the TRT shall review the Step 3 agreement requirements and submit a written recommendation to the Board of County Commissioners for approval. If a project is accepted as part of the County's CIP and at the time of acceptance it has has completed design and permitting, a Step 3 agreement may not be required. Applicants may be granted a waiver from the Step 3 agreement requirement by making request to the LTAC and TRT for review of design and permitting work and requirements. The LTAC and TRT shall review the request and supporting documentation received and submit a recommendation to the BOCC. The BOCC shall have the final authority to accept or reject the recommendation. Step 4 — Project Construction and Closeout Reporting Applicants whose projects meet all the requirements of the Step 3 agreement shall propose a scope of work for a Step 4 agreement for project construction and closeout to the LTAC and TRT for approval. The LTAC will submit the step 4 agreement to the TRT for recommendation. The LTAC and the TRT may recommend modifications to the proposed agreement as necessary. The TRT shall limit its review to assuring completion of project construction and closeout; its function is considered non -duplicative of other county and city permitting, planning, and project completion requirements and it shall have no authority to make recommendations or decisions with regard to funding. The LTAC shall consult annually with county financial staff as directed by the County Auditor and shall consider all eligible Step 3 and Step 4 agreements along with available funding resources. The LTAC shall provide a written recommendation for funding eligible Step 3 and Step 4 agreements to the Board of County Commissioners for consideration. The recommendation shall include which agreements to fund, the funding amount for each, and a written explanation for the recommendation. The recommendation shall also include a listing of the currently eligible projects requesting funding which are not included in the recommendation. The Board of County Commissioners shall either accept or reject the recommendation from the LTAC. Step 4 agreements will be reviewed at least annually by the LTAC and the TRT to assess progress and review compliance. The LTAC and the TRT may meet more frequently if needed and/or requested by the applicant. Step 4 agreement amendments shall be reviewed by the LTAC and the TRT. Recommendations from the LTAC and the TRT shall be submitted to the Board of County Commissioners for final decision.. Recommendations from the LTAC shall be submitted to the Board of County Commissioners for final decision. Upon project completion, all step 4 agreements must be submitted to the LTAC and TRT for a review of completeness. The LTAC and TRT shall meet as needed to review project completeness for Step 4 agreements. The LTAC and TRT shall submit a written recommendation regarding their finding of project completeness to the Board of County Commissioners for acceptance and final project closeout. Matching Funds Requirements: All non -county owned projects require matching funds of at least 50% of total projects costs. Matching funds may be in the form of cash or verifiable in-kind contributions. At the time of funding considerations (Step 3 and 4), applicants will be required to provide proof of matching funds. County -owned projects which are located within another municipality or are located on publicly -owned property which is owned by an entity other than Kittitas County shall also be subject to the same 50% matching funds requirements as described above. County -owned projects which are located in unincorporated lands and which are not located on land which is publicly -owned by an entity other than Kittitas County are not subject to any matching requirements. Figure 2 Tourism Capital Large -Scale Projects Grant Process Conforms with Kittitas County Tourism Infrastnictum Plan Application for CIP List • Project can be completed within g years Rima among top ten Pro)ect proposals submltted AOL APPROVEDQifM1E� I ` Agreement proposed by the applicant and approved by the TRT & BOCC I.: Agreement proposed by the applicant and i+pproved by the LTAC, TRT & BOCC =--aslbilrity Matching funds secured, Y project budget approved Other requirements is determined =&Permitting is Project design completed Permits secured & site ecqulmd Project budget & timellne appro+#d Other requirements as determ)"d AANL- IPP E occ B I ' Agreement proposed by-Projectconstruction the applicant and approved • Ribbon-cutting/grand opening by they LTA C, TRT & BOCC . Final reporting & grant closeout Other requirements as determined Application Definitions: Below is a list of terms and phrases which have a specific meaning within this application. It may be helpful for you to review these as you prepare responses so that a better understanding of the reviewer's expectations may be obtained. Capital Asset is any type of property that has a useful life longer than one year and is valued at over $5,000. Construction or "Hard" Costs are the direct contractor costs for labor, material, equipment and services; contractor's overhead and profit, and other direct construction costs. These costs do not include the compensation paid to architects, engineers, or consultants, the cost of land, rights-of-way, or other similar costs. Large-scale, as it relates to projects which may be eligible for being listed on the County's CIP for tourism infrastructure as well as potential funding through this grant process, are projects requesting funding of $50,000 or more. Matching Funds is the amount of funding your organization has secured and is contributing to the project. This includes both direct and indirect support. Direct funds can be in the form of cash funding from your organization or funding secured elsewhere but dedicated to the project such as other grants, loans, donations, etc. Indirect funding support includes in-kind support like labor, volunteer support, supplies, and services which directly relate to the project, including those supplied by your organization and others. A combination of direct and indirect support may be utilized as matching funds. Municipality is a city, county, or town. Real Property is fixed property, principally land and buildings. Soft Costs are cost items in addition to the direct construction cost. These generally include architectural and engineering, permits and fees, financing fees, construction interest and operating expenses, leasing and real estate commissions, advertising and promotion, and supervision. A Tourist is defined as a person traveling away from their place of residence or business and staying overnight in paid accommodations; to a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or from another country or state outside of their place of residence or their business.