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HomeMy WebLinkAbout2017.09.26 LTAC MinutesLODGING TAX ADVISORY COMMITTEE September 26, 2017 MINUTES CALL TO ORDER: The meeting was called to order at 4:00 pm, by Matt Watkins, in conference room #9 at Pasco City Hall. ROLL CALL: Board Members Present: Matt Watkins (Council); Colin Hastings (Chamber); Monica Hammerberg (Hampton Inn); and Hector Cruz (Visit Tri -Cities). Excused: Allison White (Sleep Inn). Also Present: Stan Strebel, Deputy City Manager; and Brent Miles and Derrel Ebert, Tri -City Dust Devils. BUSINESS: Matt Watkins presented the September 19, 2016 minutes of the Lodging Tax Advisory Committee. Motion was made by Colin Hastings and seconded by Monica Hammerberg to approve the September 19, 2016 minutes as submitted. Motion passed unanimously_ Stan briefly reviewed the following: historical allocation of lodging tax receipts; current contractual commitments; 2016 JLARC reporting; 2014-2017 document combining JLARC reporting as well as 2018 tax allocation requests; and possible 2019 requests. Committee discussed the requests for use of the 2018 Lodging Tax receipts, estimated to total $596,797. Stan noted that it is proposed to pay the balance of stadium debt ($127,000) in 2018 to retire that debt. All requests are similar to those approved for 2017, except for: an increase in the TRAC request, due to uncertainty; the DPDA request of an additional $2,000; and a proposed new expenditure, HVAC in visitor's clubhouse at GESA Stadium, in the amount of $35,000. Brent and Derrel spoke briefly to the HVAC needs. Monica asked if DPDA had been able to track lodging stays associated with their events. Stan noted that while some effort had been made, the fact that tickets were not required for the main DPDA events, made tracking challenging. Monica would like to. see some DPDA advertising directed toward out-of-town visitors. Stan will make this request to DPDA. Stan explained that while the 2018 requests slightly exceed expected revenue for the coming year, estimated fund balance in the Stadium/Convention Center fund will cover the projected shortfall, if needed. Motion was made by Monica Hammerberg and seconded by Colin Hastings to recommend the 2018 allocation estimate as outlined below. Motion carried unanimousl • TRAC, 50% of actual operating costs ............... $275,000 (est) VCB Promotion Services (50% of 2%) ............. $132,609 (est) • Pasco Chamber Ag Show .................................... $20,000 • Baseball Stadium Debt ....................................... $127,188 (will retire debt) • Baseball Stadium HVAC.......................................35,000 • DPDA Event Marketing ......................................... $7,000 TOTAL .............................. $596,797 Stan reviewed possible 2019 allocations, noting that the City and Dust Devils had been conferring regarding replacement and upgrade needs at the stadium. A bond, similar to the one structured for original construction (22 years ago), was being considered in the amount of $2 million, with possible debt service over 20 years of approximately $160,000 per year. Brent and Derrel reviewed possible improvements including seating replacements, lighting and sound system upgrades as well as concession and clubhouse improvements. Some improvements are needed to meet professional baseball standards. Monica asked if stadium improvements were prioritized (not yet); Hector and Colin both noted the value of the facility and the need for improvements. Matt expressed appreciation for each sharing their thoughts. Stan indicated that the committee's recommendation for 2018, as well as a brief discussion on the possible 2019 allocations, and beyond, will be presented to the City Council at their meeting of October 9, with action expected at their October 16 meeting. UoZl17 14 00101019 Committee meeting adjourned at 4:45 pm. Respectfully submitted. Stan Strebel, Deputy City Manager LTAC Minutes 9/26/17 Page 2 of 2