02-01-12 TBID MinutesBoard of Directors Meeting
Kalispell Tourism Business Improvement District
Kalispell Chamber of Commerce
February 1, 2012
Minutes
Board Members Present: Gib Bissell, Janet Clark, Lisa Brown, Chris Walters, Lori Fisher, Arlinna Wolfe
Board Members Absent: Dan Moderie
Staff Present: Joe Unterreiner, Diane Medler, Rob Brisendine
Guests Present: Rachel Starr - Outlaw Hotel
Meeting was called to order by Gib Bissell, Chairman of the Board at 3:00 PM.
1. Hear from the public - None
2. Board Action
a. Approve Minutes from the December 7, 2011 Meeting: Discussion: None
Action: Motion was made by Lori Fisher to approve the minutes as written. Motion seconded by Janet
Clark. Board approved unanimously.
b. TBID financial statements: Discussion - None
Action: Motion was made by Janet Clark to approve the financial statements. Motion seconded by Lisa
Brown. Board approved unanimously.
c. Approval to begin process to increase TBID fee: Discussion — Staff provided a document outlining their
recommendations as to why the board should consider an increase in the fee and how those additional
funds would be allocated. Gib opened the discussion by stating that he feels the time is right to initiate
an increase in the fee as tourism is currently the driving force of the local economy. When the TBID was
being formed the group originally wanted to be at a budget of $500,000 per year, once it was
determined that we had to use a set fee vs. a percentage amount that lowered or projected revenue
amount significantly, by increasing the fee that gets us closer to the original goal. Chris Walters stated
that he recognizes that there is a chance that this would trigger negativity by those hotels in the group
that were leery of initiating the TBID in the first place. He didn't have issues with Kalispell TBID having
the highest fee in the state. Lori Fisher stated that the business traveler would probably be the only
guest segment that would make issue with the increase, that she didn't see an impact for leisure or
meeting/conventions. Arlinna questioned Kalispell felt we were better than the rest of the state and
could charge more? Janet answered that we are looked at as a highest cost region of the state, always
have been. Budgets for billings, Bozeman and Missoula for instance are must higher because they have
more properties/guest rooms within their city limits (TBID), if we're going to be competitive we need
more money. Others may end up following; we need to be a step ahead. Lisa felt it was important that
the rest of the TBID members were on board with the change and we need to be prepared to not pursue
if there was disagreement.
The group discussed the process which would include one-on-one meetings with each TBID member to
provide a recap on the TBID initiatives during the past year and the return we are seeing on that
investment, allowing each member to log a vote of support or no support. That information will be
brought back to the TBID board of directors at the March meeting for a final vote of support or
nonsupport to raise the fee.
Action #1: Motion was made by Chris Walters to increase the fee from $1.25 to $2.00 effective July 1,
2012. Motion seconded by Lori Fisher. Approved unanimously.
Action #2: Motion was made by Lisa Brown directing the KCVB staff to meet with individual TBID
members providing a recap of the marketing initiatives put forth during the past year, projected budget
with the increase in TBID fee and how those funds would be allocated, acquiring a signature of support
or non-support from each member. Findings of those surveys will be reported to the TBID board at the
March meeting at which time the board will make a final decision whether to increase the fee. Motion
seconded by Lori Fisher. Approved unanimously.
d. Approval on FY13 projected revenue for budgeting purposes: Discussion — the board was provided with
a spreadsheet identifying a) the current fiscal year which has a budgeted revenue amount of $267,000,
b) projected revenue for FY13 based on no increase in TBID fee, and c) projected FY13 revenue based on
increased fee. Option B — staff recommended $275,500 as a projected revenue which was the total
collections in FY'11) along with a $10,000 rollover from FY'12 for a total of $285,500. The board
discussed adding an increase based on the 7.2% increased occupancy in calendar 2011 as compared to
2010 (STR) and the addition sales efforts in place in the KCVB.
Action: Recommendation was put forth by the board to use $300,000 as a projected revenue amount
(not including FY12 rollover) if the TBID fee is not increased. A formal motion was not made, that will be
delayed until the March meeting with the decision of the fee increase is finalized.
3. Board Discussion
a. Recap of FY12 marketing plan to begin planning FY13 — the board was provided a summary of the goals,
objectives and marketing initiatives included in the current marketing plan. The board agreed to
continue to allocate funds through consumer marketing, events, meetings/groups and public relations.
b. LaQuinta, possible interest in joining TBID — the Kalispell LaQuinta had expressed interest in possibly
joining the TBID on a voluntary basis. Their ownership is familiar with TBID as they have properties in
other markets. The board voiced support/acceptance of the possibility of LaQuinta joining the TBID. If
their ownership does agree to pursue joining then it will be brought to the board as an action item.
c. MLHA tourism PR Initiatives — Diane provided the board with an update on this initiative. The board had
approved a sponsorship of $2500 with the agreement to revisit an additional installment early in 2012.
Although the initiative is taking shape and appearing to be well organized and worth -while effort, the
board agreed to wait until after receiving the next TBID payment and a decision on the fee increase.
d. Visitor guide update — the guide is on track to be completed early March. Diane is working closely with
the Daily Inter Lake on design, copy and photos. 22,000 copies will be printed as we have exhausted our
supply of 18,000 and have additional trade shows planned for next year.
e. Tourism initiative through Chamber government Affairs Committee —Joe shared the Chamber
Government Affairs committee's discussions to look at opportunities for a tourism initiative that would
provide funding for Montana communities to solicit airline service. In conversations with local
legislators there is support for the potential to put forth a bill to redirect some of the 3% bed tax back to
tourism promotion. Airline service is a topic that would be better accepted throughout the state and
the business community.
4. KCVB Updates
a. Rob updated the board on the Dragon Boat and Spartan Race initiatives, RFP's sent out and confirmed.
Diane provided updates on marketing initiatives and stats from the website, social media, banner ads
and Wayfinding efforts. KCVB update document included in board packet for full information.
Meeting was adjourned by Gib Bissell at 5:00 PM
Respectfully Submitted: Diane Medler
For Further Information, Please Contact
Gib Bissell, Board Chairman, gib@aeroinn.com or 406-755-3798
Diane Medler, CVB Director, dianem@kalispellchamber.com or 406-758-2808
2012 Board Meeting Schedule - Kalispell Chamber Conference Room at 3:00 Pm
March 7 April 4 May 2 June 6
July 11 August 8 September 5 October 3 November 7 December 5