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03-23-22 Tourism Business Improvement District MinutesBoard of Directors Meeting Kalispell Tourism Business Improvement District Wednesday, March 23, 2022 3:00 – 5:00 pm Location: Kalispell Chamber or Zoom Board Members Present: Robert Hall, Britta Joy, Zac Ford Via Zoom: Noelle Barr, Bryce Baker, Dawn Hendrickson Board Members Absent: None. Staff Present: Lorraine Clarno, Diane Medler, Dawn Jackson, Marisa Mikonis Guests: Corbin Bedard (Red Lion Hotel), Jamie Reeder (Kalispell Job Service). Via Zoom: None. MINUTES The meeting was called to order at 3:02 pm by Robert Hall. 1. Hear from the Public – Jamie Reeder provided updates on employee retention strategies and programs. Britta commented on hotels always need extra help. Labor expenses are rising but hotel revenues are not keeping pace so it’s difficult. The NW Montana Job & Opportunity Fair on April 14 was identified as a way for hotels to recruit employees. 2. Corbin Bedard – Red Lion Hotel - Sonesta has purchased the Red Lion Hotel. The general Manager, Corbin Bedard gave updates on the company. Sonesta will not be changing the name from Red Lion, they plan to buy more chains world-wide. Their FY2021 had over $2 billion in hotel revenue The Red Lion has been in the process of transitioning and training the new Sonesta standards, SOP, culture, along with company raises for all employees. The renovations are still in progress. There are new elevators, the HVAC system in the conference area was repaired and all rooms are fully available for use. The convention area will be scheduled for renovation, dates unknown. 3. Board Action a) Approval of minutes from February 23, 2022 Motion was made by Zac Ford to approve the minutes. Motion was seconded by Britta Joy. Discussion: none. Board approved unanimously. b) Approval of TBID financial statements for February 2022 Motion was made by Britta Joy to approve the financials. Motion was seconded by Zac Ford. Discussion: none. Board approved unanimously. c) Approval of FY23 TBID budget, and DMO plan strategy • Motion was made by Noelle Barr to approve the FY23 budget. Motion was seconded by Britta Joy. Discussion: Diane reviewed the budgets for both TBID and the combined budget (bed tax and TBID). Both budgets support one marketing plan. Total budget for TBID is $700,000 ($625,000 approved projected revenue plus FY22 rollover). The budget methods/tactics have not varied much from previous years but are listed differently to fit the requirements from the Tourism Advisory Council. On the TBID budget destination marketing accounts for 26% of budget, destination development at 9% of budget (that segment includes Discover Kalispell destination events such as Spartan Race), and destination stewardship/management at 2% of budget. Board approved unanimously. • Motion was made by Zac Ford to approve the DMO Plan Strategy for FY23. Motion was seconded by Noelle Barr. Discussion: Updates on the bed tax rules procedures allow for spending on destination stewardship projects, managing visitors, increasing community acceptance of tourism and community partnerships. Diane discussed the strategy behind the FY23 DMO plan which includes destination marketing, as well as destination stewardship/management, and destination development (events). The strategy outlines who we want to attract to our destination, data we use, and goals for FY23. Board approved unanimously. 4. Board Discussion a) TBID bylaws • Diane provided an overview of the TBID bylaws. Per public meeting rules all meetings must have a 72-hour notice and be held in person. Other edits on the Bylaws included updating and clarifying the language in some sections. The TBID Payment policy changes effective July 1. The board discussed and did not have additional edits to what was already recommended. The revised Bylaws will be submitted to the City for approval. b) FY21 rollover funds available for allocation • Pending projects that staff is researching include assisting to provide a shuttle stop in Kalispell for the Under the Big Sky Music Festival, trail maintenance projects for local trail such as Foys to Blacktail, Rails to Trails, Lone Pine, etc., and an informational kiosk for travel information. • Indoor sports facility update: Diane continues to reach out to various sports groups and developers that have shown interest in an indoor sports facility. There are a few concepts in the works related to youth sports and youth development. Diane recommended commissioning a feasibility study that is narrower in focus than a broad economic feasibility study. A study that looks more closely at sports tourism – how to attract and what are the facility needs for our area. Staff spoke with the Huddle Up group. They are a sports tourism industry consulting company and work with DMO’s to provide a sports tourism facility planning proposal. This type of study is more within the TBID approved price range than a broad feasibility study. Since funding is coming from TBID we are required to follow the City of Kalispell procurement policies which include issuing an RFP or RFQ. The board agreed to move forward with this concept for a study and to issue an RFP to solicit proposals. o Motion was made by Britta Joy to go forward with receive other RFPs for sports tourism facility studies. The motion was seconded by Zac Ford. Board approved unanimously. c) Discussion of Group sales/M&C incentive program • PEO, a conference coming to Kalispell in 2024, has come back with a reduced room count as they want the conference to be at only one location. 425 rooms will be used during the groups time in Kalispell verses the original quote of 740 rooms. PEO has requested funding assistance for bus transportation and church service ($4250). It was suggested that we do a room rebate based on actualized rooms versus a flat fee incentive. o Britta Joy made a motion for a $12 rebate for each actualized room night. The motion was seconded by Zac Ford. Board approved unanimously. • At the February meeting the board took action on the approval procedure for M&C incentive requests. Board approved using an email voting process to approve individual incentive funding requests. Based on changes to the TBID Bylaws, that motion was rescinded. Robert made the original motion and Britta seconded, both agreed to rescind the motion made at the February meeting. o Britta made a motion to revise the M&C incentive program approval process to include approval by the executive board if the incentive is under $5,000. Any incentive over $5,000 will need approval from the full board at the next scheduled board meeting or if time sensitive, a special board meeting will be convened. The motion was seconded by Zac Ford. Board approved unanimously. d) Event Updates • Road Runner Magazine was in Kalispell to gather film and photo assets on snow biking. The article will be published in the Fall. DK will run an ad in that issue and will receive the images captured from snow biking and their time in Kalispell. • Highlander event is being pushed to 2023, still working on identifying the appropriate course and approval by the Forest Service. • There is a potential bid in for an outdoor soccer tournament that will be held throughout the Flathead utilizing all soccer fields in June of 2023, approximately 4,000 participants. This is a one-time event if approved for by the USYSA. e) Staff reports • Marisa updated on Spartan race planning with food vendors, downtown promotions, and volunteers. • Diane announced that the new 2022 visitor guide will be delivered next week. Also showed the sneak peak of the new homepage design for the DK website. • Dawn provided updates on conference losses due to lack of resort style lodging, time of year availability/cost. She is working on the meeting planner FAM in June with Glacier County, the June POMA conference welcome reception, and a proposal for the outdoor writers association conference in 2024. Dawn attended the MSAE monthly meeting and did sales calls to solicit business for Kalispell. Meeting was adjourned at 5:09 pm. Respectfully submitted: Diane Medler For further information, please contact: diane@discoverkalispell.com or 406-758-2808