03-07-12 TBID MinutesBoard of Directors Meeting
Kalispell Tourism Business Improvement District
Kalispell Chamber of Commerce
March 7, 2012
Minutes
Board Members Present: Gib Bissell, Janet Clark, Lisa Brown, Chris Walters, Lori Fisher, Arlinna Wolfe, Dan Moderie
Staff Present: Joe Unterreiner, Diane Medler, Rob Brisendine
Guests Present: Rachel Starr, Alison Keene, Melissa Buck, Angie Bowman, Winnie Storli, Jon Fetveit, Theresa — intern
from FVCC
Meeting was called to order by Gib Bissell, Chairman of the Board at 3:00 PM.
1. Hear from the public — None
2. City of Kalispell Planning Department gave a presentation on the update of the city's growth policy and
requested comments and input from the TBID.
3. Board Action
a. Approve Minutes from the February 1, 2011 Meeting: Discussion: Arlinna felt there was not a vote
made to approve the increase of the TBID fee. Other board members disagreed and confirmed that a
motion was made in two parts: 1) to approve the fee increase and 2) to instruct staff to meet with all
TBID members, get a signed ballot of support or non-support and report back at the March meeting.
Action: Motion was made by Janet Clark to correct the minutes of the February 1, 2012 meeting to
reflect Arlinna's nay vote on the motion to approve the TBID fee increase. Motion seconded by Lisa
Brown. Board approved unanimously.
b. TBID financial statements: Discussion - None
Action: Motion was made by Chris Walters to approve the financial statements. Motion seconded by
Lori Fisher. Board approved unanimously.
c. Approval to increase TBID fee: Discussion — Diane reported that staff met with all TBID members and 15
of the 16 ballots have been returned showing 13 in support and 2 non-support. Janet pointed out that it
is redundant to ask for a vote on the fee increase as that motion was put forth and approved by the
majority in the February meeting. Gib asked those present to express their thoughts and questions
regarding the increase. Allison asked what was the rate currently charged around Yellowstone, why do
we feel we need to be different? The rate that all TBID's are charging across the state is $1. Chris
explained that we charge a higher rate to raise our budget to more closely compare to our competitive
markets. $500,000 was the budget amount agreed upon when the TBID was being formed. This
increase brings us close to that amount. Rachel stated that the larger the budget, ultimately the more
revenue to all our properties. Winnie expressed concerns that this is being done in a hasty fashion. The
tax is unfair because the lower end properties pay a higher percentage. We can't continue to gouge the
public, we should proceed with more caution. Arlinna stated that her owner is against the increase. He
wants to know how we get out of the TBID? Why can't we make more revenue? Lori: Rob is providing
opportunities to each of the TBID hotels, you need to follow up on his information. To make money you
have to spend money. The increase is a small amount to get more business into the area. Gib: this has
not been a hasty decision, we've been discussing for several months. The efforts of Diane and Rob are
already paying off, going to Calgary has had an effect and I'm doing better this winter. Melissa: Comfort,
Blue & White and Travelodge all feed from the same market, she agreed that you have to spend money
to make money. Lori: when the larger properties sell out the smaller properties get overflow. Alison:
why 75 cents, could it be split into 2 increases? Lisa: there will be a lag time in receiving the increased
fee. Melissa: changing the fee will require lots of work, wouldn't want to do it twice in a short amount
of time. Too many changes in one year will cost more than we gain. Dan: our original fee we wanted
was $2, then we cut it back to $1.25. Every time there's an event I see more room nights. I've done
better this year. Chris: it's about compression, we bring more room nights into the market everyone
benefits. If we have more dollars, everyone gets more room nights. Jon: I'm in favor of economic
development, the problem is that we can't charge a percentage, realize that isn't allowed by State
statute. In winter we rely on weeklies, and many of those are locals. It is an unintended consequence
that we are penalizing local residents. Can we look at changing it for certain situations? Can a local
resident staying for 3 or more nights be exempt? Or look at a different rate during summer vs. winter?
Melissa: too hard to do with 3rd party booking agencies. Arlinna: everyone's saying we don't have
enough money is that because we didn't make our projected revenue? Diane: our projected revenue
for FY'11 was $275,000, we came in at $275,500. Chris: we always felt we'd need to have $500,000 to
be effective and competitive. Rob: our competitive set has 4 to 5 times what we have to spend. We
use our resources very efficiently. Our combined budget (bed tax and TBID) will be just over $500,000.
Billing's combined budget is over 1 million, Bozeman and Missoula are over $500,000. Angie: should we
set a cap on the amount of the fee? Melissa: we're still a young board, too soon to set a cap. Chris: this
will be a sustainable increase, something we'll be able to work off for quite a few years.
The board agreed to move forward with the fee increase which will take effect July 1, 2012. TBID
properties should notify any third party booking agencies and make changes in their reservation systems
immediately.
d. Approval on FY13 projected revenue for budgeting purposes: Discussion — Lisa asked if the projected
revenue will work considering the lag time with the fee increase? Melissa thought the increase
shouldn't come in the middle of summer. It was explained that we work on a fiscal year that begins July
15t
Action: Motion was made by Lisa Brown to approve the projected revenue and fund allocation. Janet
Clark seconded the motion. Board approved unanimously.
4. Board Discussion
a. FY'13 Draft Marketing Plan goals, objectives and strategies: Lisa, unique hits on website seem like a
conservative amount. Gib asked for clarification on the CRM group marketing line item. Rob clarified
that it is a database system so manage our inventory of customers effectively. Lisa asked for
clarification on what is considered a group under the group marketing goals and objectives. Rob
clarified that a group is considered 100+ room nights. Chris stated that he's like to see the M&C
business tracked separately from events and leisure.
b. Q2 TBID collections: Collections came in about $2,000 over the same quarter last year, which equates to
approximately 1,600 room nights.
c. Board nominations: Diane will send a letter to all TBID members requesting nominations for a large and
medium hotel category representative to fill the seats being vacated by Lori and Arlinna whose terms
end April 30, 2012.
d. TBID officer meetings: Diane asked for clarification from the board as to whether minutes need to be
posted from the monthly officer meetings. The officers meet one week prior to the board meeting to
review the proposed agenda. This has been helpful so that we use our board meeting time as effectively
as possible. TBID members are always welcome to submit items for the agenda. No action is taken by
the officers during that meeting. The group agreed that since no action was taken minutes do not need
to be posted.
5. KCVB Updates
a. Diane reported on the state office of tourism Get Lost campaign which since going regional has
increased visitations to the website by 40%. Top markets are Calgary, Spokane and Denver. A Canadian
Survey was emailed to all TBID members, please ask your Canadian guests to complete at check in. Rob
reported that the Dragon Boat press release was picked up by a couple online publications in the bay
area. Teams that register for the festival make their own reservations. He sends them to the lodging
page on Discover Kalispell when they register. If they request an RFP he'll submit to TBID members.
Individual hotels can access names of incoming teams on the dragon boat website. Also, Kalispell is one
of seven communities being considered to host the 501h Anniversary of the Wilderness Act. The
Huckleberry 100 is scheduled for September 151h, the weekend after Dragon Boat Festival.
Meeting was adjourned by Gib Bissell at 4:55 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
PebFUaFy _ Marc--h :7 April 4 May 2 June 6
July 11 August 8 September 5 October 3 November 7 December 5
Kalispell Tourism Business Improvement District
BALLOT
Dear TBID Members,
On February 1, 2012 the TBID board of directors took action to approve an increase to the TBID fee.
The board instructed staff to meet with each TBID property representative and gather signatures in
response to this resolution.
"Action: Motion was made by Chris Walters to increase the TBID room night fee from $1.25 to
$2.00 effective July 1, 2012. Motion seconded by Lori Fisher. Approved unanimously."
Approved:
Chris Walters
Lisa Brown
Lori Fisher
Arlinna Wolfe
Janet Clark
Gib Bissell
Dan Moderie
Not Approved:
None
BALLOT RESULTS
Support = 13 Neutral = 0
Motel 6
Travelodge
Americas Best Value
Glacier Ridge Suites
Super 8
Outlaw Inn
Aero Inn
Econo Lodge
Kalispell Grand
Holiday Inn Express
Hampton Inn
Hilton Garden Inn
Red Lion
Non Support = 2
Comfort Inn
Blue & White
Hilltop Inn
15 Depot Park, Kalispell, MT 59901