HomeMy WebLinkAboutKVEC Operations-Staffing and 100YR Bus Partnership (4)Lodging Tax for Tourism-Related, Small-Scale
Municipality-Owned Capital Projects and
Operations
Submission Deadline: June L,2023 at 4pm (Thursday)
Kittitas County Commissioners
205 W Sth Avenue, Suite 108, Ellensburg, WA 98926
509-962-7508
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Lodging Tax for Tourism-Related, Small-Scale Municipality-
Owned Capital Projects and Operations General
lnformation
Kittitas County imposes a lodging tax assessed on the sale or charge made for furnishings of
lodging according to RCW 67.28,L8O and RCW 67.28.L81. ln accordance with the tax and
Washington State law, a Lodging Tax Advisory Committee has also been established. The
committee's 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 anv application requesting
fundins include:
L Tourism means economic activity resulting from tourists, which may include sales of
overnight lodging, meals, tours, gifts, or souvenirs.
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; (ii) owned by a nonprofit organization described under section 501 (c)
(3) of the federal internal revenue code of 1986, as amended; or (iii) owned by a
nonprofit organization described under section 501 (c) (6) of the federal internal
revenue code of 1986, as amended; a business organization, destination marketing
organizations, main street organization, lodging association, or chamber of
commerce; and (b) used to support tourism, performing arts, or to accommodate
tourist activities.
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2
Review Process:
Kittitas County's Lodging Tax Advisory Committee (LTAC)will review all complete applications.
Qualifying applicants will be provided the opportunity to present their projects to the LTAC and
answer questions. Capital project applications will be scored based on the information
provided by the applicant, ranked, and funding recommendations with supporting information
will be submitted to the Kittitas County Board of Commissioners. The ranking will determine,
generally, the order in which the applications will be considered for funding from the highest
being considered first to the lowest receiving the last consideration. However, all municipalities
which submit at least one qualifying application in a given year must receive funding
consideration before a second application from a municipality which has been recommended
for a funding award is considered. The Board of County Commissioners (BOCC) has final
approval authority for the list of recommendations.
Prior to making a final decision, the BOCC will publicly deliberate on the recommendations
received from the LTAC. Applicants may also be requested to present their projects to the
BOCC and answer questions.
Scoring sheets utilized by the LTAC to rank applications for capital projects are included in this
packet for your reference and information. Applications which do not receive a minimum
score of at least 75 points, do not provide at least 10% matching funds, or do not follow the
submission instructions will not be considered for funding.
Application Definitions:
Below is a list of terms and phrases which have a specific meaning within this application. lt
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 55,000.00.
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, right-of-ways, or other similar costs.
Matching Funds is the amount of funding your organizations 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.
lndirect funding support includes in-kind support like labor, volunteer support, supplies,
and services which directly relate to the project or event, including those supplied by
your organization and others.
Municipality is an incorporated city, county, or town.
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Real Property is fixed property, principally land and buildings
Small Scale capital projects are defined as those which request funding support at or
less than 550,000.
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.
Tourist is a person traveling for business or pleasure on a trip:
A. Away from their place of residence or business and staying overnight in paid
accommodations;
B. To a place fifty miles or more one way from their place of residence or
business for the day or staying overnight; or
C. From another country or state outside of their place of residence or their
business.
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SU BM ITTAL I NSTRUCTIONS
Please return ONE COPY of the entire original application and answers to narrative questions to
Kittitas Cou nty Com missioners
Attn: Lodging Tax Grant Application
205 West 5th, Suite 108, Ellensburg, WA 98926
Applications must be received no later than 4:00 PM Thursdav, June 1, 2023 in person at the Kittitas
Countv Board of Commissioners Office or postmarked no later than June 1. 2023.
lncomplete and/or late applications will not be considered. Applications may not be changed or
amended by the applicant after the deadline for submission
Schedule:
. Application deadline
. Oral presentations of proposals to LTAC
' BOCC Deliberation and Decision
I Applicant Award Notification and fund availability
Proiect Management:
Successful applicants may be required, as a condition of the funding award, to enter into a contract. The
agreement may include, but not be limited to, the specific amount of the award and what it may be
used for, all reporting requirements associated with this funding, payment terms, and any and all other
appropriate terms of the funding. Kittitas County will be the contracting agent for all approved projects.
All funds awarded under this program will be available in the form of reimbursable grants. The funds for
capital projects will be available for reimbursement as of the date of the contract and for 24 (twenty-
four) months (or two years) thereafter. Capital projects must be completed within the two-year period.
All funds awarded for supporting the operations of county-owned tourism-related facilities will be
available for reimbursement as of the date of the award and for up to 12 (twelve) months (1 year)
thereafter. Any unexpended funds will be returned to the Lodging Tax account and made available for
re-appropriation. All requests for reimbursement shall be made to the Kittitas County Auditor's office at
the following address:
Kittitas County Auditor
Attn: Lodging Tax Grant Funds Reimbursement
205 w 5th, suite 105
Ellensburg, WA 98925
For specific information and requirements regarding the reimbursement process, please contact the
Auditor's office at 509-962-75O4.
6hl2023
6h4/2023
7ls/2023
8/3/2023 (Tentative)
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Proiect Reporting Requirements for Tourism-Related Facilities:
State law requires that all recipients of Lodging Tax revenues must submit a report to the municipality
describing the actual number of people traveling for business or pleasure on a trip:
A. Away from their place of residence or business and staying overnight in paid accommodations;
B. To a place fifty miles or more one way from their place of residence or business for the day or
staying overnight; or
C. From another country or state outside of their place of residence or their business.
A report form will be provided as part of the contract for receiving funds. We ask that you provide this
information within 60 days after your project is complete.
Applicant Cateeories and Elisibilitv:
Grants from lodging tax funds are provided for two types of applicants, Capital Projects and County
Operations. No more than one capital project is allowed per application. An organization may submit
no more than three capital project applications per funding cycle. The categories are defined as follows:
The Capital Project category is for applications from municipalities or public facilities districts
requesting support for capital expenditures of tourism-related facilities owned or operated by
the municipality for public facilities district.
lf applying for funding under the capital project category, an applicant need only answer the
questions listed under the Capital Budget Narrative and provide the Capital Project Budget as
well as include necessary attachments.
The Operations category is for applications from municipalities requesting support for the
operations of tourism-related facilities owned or operated by the municipality.
lf applying for funding under the Operations category, an applicant need only answer the
questions listed under the Operational Funding Narrative.
Other lnformation:
Insurance: As part of its contract for performance, a municipality may require contractors to maintain
liability insurance in the amount of 51,000,000 or more and name the municipality as an additional
insured on its liability insurance policy.
Application Form: This packet will be available on Kittitas County's website as a word document and as
a pdf. lt can also be obtained directly as a hard copy or in digital format by contacting the Kittitas
County Board of Commissioners office al509-962-7508. Kittitas County's website address is:
www.co. kittitas.wa. us.
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APPLICATION FOR LODGING TAX FOR TOURISM.RELATED,
SMALL-SCALE MUNICIPALITY-OWNED CAPITAL PROJECTS AND
OPERATIONS
Applicant lnformation - capital proiect rcle One or Both|
Name of Municipality:
Mailing Address:
Kittitas Valley Event Center
901 E 7th Ave, Suite 1
Ellensburg, WA 98926
ContaCt Person and Title: Kady Porterfield, CFE - Event Center Director
Phone 509-962-7675
Email:kady.porterfield@co. kittitas.wa. us
Project Title Staffing and 100th Year Bus Partnership
Project Location KVEC
Funding Request $206,500
Application Requirements
x 1. The project qualifies for lodging tax funds as a capital expenditure of a tourism-
related facility owned or operated by a municipality or is supporting the operations of
tourism-related facilities owned or operated by a municipality.
x 2. The municipality has submitted no more than three applications for capital project
funding in the current year.
3. The municipality's lodging tax advisory committee (or equivalent) has been informed
of the project and endorsed it (not required for Kittitas County). A letter from the
municipality is included.
4. Lodging tax capital project funds are not being substituted for other funds that are
already secured or applied for (if applicable).
5. Municipality has secured matching funds of at least LO% of the total project costs.
6. A completed project budget is included in the application (if applicable).
NA
x
X
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Operations (
NA
NA 7. A detailed 8%X 11 vicinity map that clearly shows the project is included (if
applicable).
Tourism-Related, Small-Scale Municipality-Owned Capital Project Narrative
1. Project Description: Please describe the project in detail. lndicate the major work to be
completed, any milestones that need to be overcome in order for the project to move forward,
and include a comparison of existing and proposed conditions.
2. Kittitas County Tourism lnfrastructure Plan: Please explain how the project meets the goals
and priorities in the Kittitas County Tourism lnfrastructure Plan as adopted. Also, describe the
specific county tourism infrastructure needs the project addresses and how the project directly
increases tourism. Explain how the improvements will promote tourism in Kittitas County and
indicate specifically how the improvements will directly increase economic activity resulting
from tourists (see the definition of tourist on page 3 of this application).
3. Use of Grant Funds: Please explain exactly how the requested funds will be used. lnclude an
itemized list.
4. Real Property: lf real property acquisition is a component of the project, please explain.
lnclude any information of property already secured or evidence of the ability to secure the real
property.
5. Capital Assets: lf capital asset acquisition is a component of the project, please explain.
lnclude any bids solicited and received from potential vendors willing to supply the asset. A//
capitol asset purchases require at leost three bids. lf you have already selected one of the bids,
please provide justifications in writing.
6. Coordination: Please explain how this project has been coordinated with other jurisdictions
as well as affected stakeholders. Please include letters of support from stakeholders.
7. Studies: Please attach any feasibility or other studies that demonstrate linkages between
the proposed project and the anticipated tourism impacts. Also please include your
operations/maintenance funding strategy and business plan for long-term project sustainability
(how the facility or facilities will be operated and maintained for at least three years following
completion).
8. Project Readiness: Please provide a detailed project schedule, including milestones
necessary for completion as mentioned in question 1 above. On the schedule, indicate items
completed and exactly where in the schedule the project is at this time. Be sure to include
expected completion date.
9. Applicant Certification: Please sign below in agreement with statement of certification.
Certification is hereby given that the information provided is accurate and the applicable
attachments are complete and included as part of the application package.
I further certify that the application thresholds are met at the time of application.
8
NA
Signature of Official Representative Title Date
Tourism-Related, Sma I l-Scale Municipal ity-Owned Ca pita I Project Budget
All applicants for capital project funding must supply a detailed and complete project budget
utilizing the following basic format:
Funding Sources
Lodging Tax Funds Request
*Other Grant Funds
List By Source (indicate if secured or applied)
*Other Local Government Funds
List By Source
*Private Funds
List By Source (may include in-kind)
Total Available Funding
Project Expenses
Real Property or "Right-of-Way" Acquisition Cost
Capital Asset Cost
Construction Cost or "Hard" Cost
lnclude an itemized list of general costs
For example: asset type and cost, site prep, building foundation and structure,
mechanicalwork, finish work, site restoration, electrical work, technology, etc.
Soft Cost
lnclude an itemized list of soft costs
For example: design fees, construction management fees, survey costs,
engineering fees, permitting costs, special inspections, cultural resource surveys,
etc.
Total Project Costs
*Verifying documentation must be provided and attached to this budget. This documentation
may include award letters, letters of commitment, or loan approval documentation. You must
include this in order to meet the matching funds requirement. lf the funding source includes
applicant funds, proof of available funding in the form of a letter of commitment from an
authorized body or representative of the applicant is adequate.
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Tourism-Related Facility Operational Funding Narrative
(Municipality Applications Only)
1. Operational Spending: Please explain your request for operational funding and how it is
directly related to supporting the operations of a tourism-related facility owned or operated by
a municipality or public facilities district.
2. Sustainability Strategy: Please describe your strategy for long-term operational
sustainability. lnclude any specific progress toward this goal.
3. Applicant Certification: Please sign below in agreement with statement of certification.
Certification is hereby given that the information provided is accurate and the applicable
attachments are complete and included as part of the application package.
I further certify that the application thresholds are met at the time of application.
5.rfi13
Sign of al resentative Title Date
(Please see attached for answers)
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Tourism-Related Facility Operational Funding Narrative
(Municipality Applications Only)
For the Year;2O23
L. Operational Spending: Please explain your request for operational funding and how it is
directly related to supporting the operations of a tourism-related facility owned or operated by
a municipality or public facilities district.
The Kittitas Valley Event Center is requesting operationalfunding in the sum of
$200,000 for part of its labor cost that continue to support facility maintenance as well
as serve the functionality of the operations including providing expected services
directly to customers who rent the facilities and visit Kittitas County.
KVEC management realizes the importance of the proper attention, upkeep, and
maintenance that this large and diverse facility needs, as well as providing excellent
customer service and support. Our 2023 event season has been well under way with
several customers and events returning again for the first time since the pandemic
shutdown. 100 years ago, the Kittitas County Fair moved permanently to where it is
today and we take great pride in the 100th anniversary of our grounds. lt's also the 100th
anniversary of the Ellensburg Rodeo, which our facility plays a key role in hosting the
World-Famous event each year.
With the 100th year celebrations bring an extra level of excitement and planning.
This year, the Rodeo Board has proposed hiring two tour buses to complete routes from
all the hotels to the Fair and Rodeo to help alleviate parking congestion with more
attendees expected due to the anniversary. The Kittitas County Fair would very much
love to partner with the Ellensburg Rodeo and the Chamber of Commerce on these
buses as it will be very beneficial to the events and our attendees. The cost we are
requesting is a total sum of $6,500 that we will pay to the Ellensburg Rodeo for our
share in the bus partnership. This funding addition is a special request only for 2023.
2. Sustainability Strategy: Please describe your strategy for long-term operational sustainability
lnclude any specific progress toward this goal.
With current staff structure, direction, and processes, l(/EC can better meet the
expectations and demand of events held on the grounds as well as continue to bring in
new business. Our 4th of July celebration, called Patriot Night Under the Lights, features
a top-notch country music concert and is growing each year, becoming an established
Ellensburg event. Last year, we saw a 14% growth in attendance. Hosting events like
these increases the economic impact on our community by bringing in more visitors and
generating tourism.
New event holders continue to inquire about booking at KVEC due to the
improvements they've witnessed as event attendees or by word of mouth. We are
excited to that we have CWU Horse Shows, a brand-new Car and Motorcycle Show, as
well as a professional woodsman competition that are all new on the books over the last
year. People widely value Ellensburg as they love the centralized location in Kittitas
County and are excited to look in to working with us.
Criteria
Lodging Tax Capital Project Rating Form
Points Possible lication Questions Points Awarded
Kittitas County
Tourism
lnfrastructure Plan
Yes = 15
No= 0 Question 2
Stakeholder Support
in the form of letters
with signatures up to 20 Question 6
Feasibility Analysis
and Business Plan
Completed
Yes = 15
No=0 Question 7
Promotes Tourism/
lncreases Economic
Activity Resulting
From Tourists
Up to 30 Question 2
Project Readiness Up to 20 Question 8
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