Resolution 5429 - Work Plan & Budget - Tourism BIDA RESOLUTION APPROVING THE WORK PLAN AND BUDGET FOR THE FISCAL YEAR
2010-2011 FOR THE KALISPELL TOURISM BUSINESS IMPROVEMENT DISTRICT AS
RECOMMENDED BY ITS BOARD OF DIRECTORS.
WHEREAS, pursuant to Section 7-12-1101, et seq., MCA, the City of Kalispell on May 3, 2010,
passed Resolution 5425 creating a Tourism Business Improvement District; and
WHEREAS, the City Council of the City of Kalispell thereafter appointed a board of directors for the
Tourism Business Improvement District, which board convened and has now
recommended to the City Council a work plan and budget for the Tourism Business
Improvement District for the next fiscal year; and
WHEREAS, pursuant to Section 7-12-1132 MCA, City Council issued a public notice that a work plan
and budget had been submitted and that the City Council would levy an assessment to
defray the cost of the work plan and budget; and
WHEREAS, on May 17, 2010, the City Council held a public hearing on objections to the work plan
and budget; and
WHEREAS, having given adequate consideration to the work plan and budget presented, as well as
the proposed method of assessment the City Council now finds that it is in the best
interests of the City as well as the District and the properties therein to accept the work
plan and budget, as well as the proposed assessment method.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
AS FOLLOWS:
SECTION I. The proposed work plan and budget of the Tourism Business Improvement
District, attached hereto Exhibit "A" and fully incorporated herein by this
reference, is hereby approved and adopted for the fiscal year 2010-2011.
SECTION II. The proposed assessment formula of the Tourism Business Improvement District
is hereby approved and adopted for the fiscal year 2010-2011. That assessment
formula to be applied against all properties within the Tourism Business
Improvement District shall be $1.25 per occupied room per night.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 17TH DAY OF MAY, 2010.
ty i
ammi Fisher
Mayor
ATTEST:
Theresa White
City Clerk
EXHIBIT "A"
Kalispell Tourism Marketing Plan and Budget:
Approved by the Kalispell TBID Board of Directors — May 10, 2010
Approved by Kalispell City Council -
Prepared by Dori Muehlhof
Purpose
The purpose of this marketing plan is to establish the framework of goals, strategies and measurable objectives to
increase room nights for the Kalispell hoteliers.
The mission will be to create a Kalispell brand for the recruitment of meetings and conventions, group and leisure
travelers, as well as sporting events for the purpose of economic and cultural growth for Kalispell and the Flathead
Valley.
The Kalispell Chamber/CVB and 16 lodging partners in the city of Kalispell are entering the inaugural year of the
development and implementation of a Tourism Business Improvement District (TBID). Securing incremental
tourism funding through the TBID will greatly enhance and accelerate the current marketing efforts of the CVB,
limited to date by minimal bed tax funding.
Collections for the TBID will permit the assessed hoteliers opportunities to participate in marketing programs, trade
shows and sales calls. And, will provide greater resources to increase online marketing and increase advertising and
social media.
Cities across Montana are employing this new funding strategy to more competitively sell in an increasingly more
aggressive marketplace.
Identity
Kalispell is known as the historical center of the Flathead Valley. The National Registry of Historical Places notes
Kalispell with 61 registered places and 4 registered historical districts. The historical charm shines brightest with
Kalispell's three premiere museums: Conrad Mansion Museum, Hockaday Museum of Art and Museum at Central
School.
Revised 5/11/2010
Kalispell is the gateway to the area's biggest attraction - Glacier National Park. It is also the hub to all the cultural,
historical and recreational experiences throughout the Flathead Valley.
Strengths
• Historic architecture
• Quality, diverse lodging
• Art galleries and three museums of exceptional quality
• Business center for the Flathead Valley
• Gateway to Glacier National Park
• Home to Glacier Park Int'l Airport (FCA)
• No sales tax
• World class recreation nearby (skiing, golf, rafting, etc)
Challenges
• Lack of identity
• Airline challenges
• Gas prices/Economy
• Fluctuating Canadian exchange rate
• Glacier National Park Going -to -the -Sun Road Rehabilitation
• Create Website
• Contract for PR services
• Create a Fulfillment Piece (traditionally a Travel Guide)
• Establish relationships with Kalispell Downtown Association (KDA) and Kalispell
Business Improvement District (BID)
• Commission a collaborative branding campaign with City of Kalispell, KDA, Kalispell BID, etc.
• Establish collaboration with local event organizers
• Promote existing events
• Grow winter and shoulder markets (Nov -May)
• Capitalize on Canadian Holidays
• Incorporate the Montana Branding Initiative
• Incorporate the Montana Tourism Strategic Plan
Measurable Objectives
• Increase lodging occupancy in Kalispell by 2%
o Measured by the STR Global "Destination Reports". Destination Reports provide accurate
performance information on occupancy (occ), average daily rate (ADR) and revenue per available
room (RevPAR) for any region, city, market or sub -market. Total room supply, room demand and
room revenue are also available.
o Generate 200 qualified meeting and convention leads
® Book 2 conventions/meetings (goal of 100+ ppl, 3+ nights)
o Generate 100 qualified motorcoach group leads
■ Book 2 motorcoach groups (goal of 30-40 ppl, 1+ nights)
o Generate 50 qualified sporting events leads
■ Book 1 sporting event
o Create a promotional database of 2,000+ leisure travelers
o Create a media database of 1,000 targeted travel writers, editors, etc.
Page 2 of 5
Revised 5/11/2010
Geographic Markets
1. Individual Traveler
a. Regional Drive Market: AB, WA, MT & ID
b. Fly Market: Seattle, Minneapolis, Salt Lake City, Denver, Chicago, Vegas/Phoenix
c. International Market
2. Group:
a. Pacific Northwest/Mountain Region: AB, WA, OR, MN, CO & ID
Market Segments
1. Individual Traveler
a. Leisure Traveler
i. Retail
ii. Recreation
iii. Culture
iv. Medical/Educational
b. Events
C. Travel Clubs: AARP, AAA, etc.
d. FIT Wholesale
2. Group (Groups of 500 or less)
a. Meetings & Convention (Association, Corporate & Government)
b. SMERF (Social, Military, Educational, Religious & Fraternal)
C. MotorcoachBus Tour
Marketing Methods
Sales Mission
o Trade Shows
® For Example...
■ Affordable Meetings West
® ABA (American Bus Assoc. — Motorcoach Tours)
® Connect Marketplace (SMERF Meeting Planners)
® Seattle Adventure in Travel Show
® Calgary Outdoor Travel & Adventure Show
■ SportTravel's TEAMS show
o Sales Calls
® For Example...
■ 3`d Party Meeting Planners
® Corporate Meeting Planners
o Familiarization Tours (aka FAMs)
® Group Leader FAM
® Travel Writer FAM/Press Trip
o Memberships (to provide networking opportunities)
® For Example...
® MSAE (Montana Society of Association Executives)
■ MPI (Meeting Planners International)
■ ABA (American Bus Assoc.)
Page 3 of 5
Revised 5/11/2010
® NASC (National Assoc. of Sports Commissions)
• Advertising
o Newspaper
o Magazine
o Radio
o Internet
• Social Networking
o Facebook, Twitter, Blog
• Public Relations
o For Example...
o Generate bi-monthly press releases
o Quarterly story leads
o Travel Writer FAM trip
• Direct Mail
o For Example...
o Returning Guest Campaign
o Canadian Holiday Campaign
o Pre & Post Trade Show Attendee Campaign
• Visitor Information Center (VIC) Staffing
o Extend staffing to include weekend coverage
Market Summary
Historical Bed Tax Collections (4% of lodging price)
Kalispell
Whitefish
1998
$
348,386
$
303,598
1999
$
361,759
$
328,130
2000
$
372,976
$
354,060
2001
$
377,476
$
352,390
2002
$
364,545
$
362,642
2003
$
390,036
$
378,232
2004
$
402,705
$
420,104
2005
$
445,639
$
451,734
2006
$
491,668
$
524,650
2007
$
626,582
$
574,737
2008
$
677,422
$
586,651
Market Shifts
In June 2007, two new hotels open in Kalispell (Hilton Garden Inn, Holiday Inn Express).
Competition
• Whitefish, MT • Spokane, WA
• Big Sky, MT • Coeur d'Alene, ID
• West Yellowstone, MT • Boise, ID
Page 4 of 5
Kalispell Bed Tax & TBID Hoteliers
1. Outlaw Inn
2. Red Lion Hotel
3. Hilton Garden Inn
4. Motel 6
5. Hampton Inn
6. Holiday Inn Express
7. Blue & White Motel
8. Comfort Inn
Budget:
Marketing Support
Staff $81,400 24%
Administrative $19,000 6%
Web Site $ 8,000 3%
Marketing, Promotion, and Sales $226,600 67%
Total $335,000 100%
9.
Econo Lodge
10.
Super 8
11.
Travelodge
12.
Glacier Peaks Inn
13.
Hilltop Inn
14.
Kalispell Grand
15.
Glacier Ridge Suites
16.
Aero Inn
May 19, 2010
To: Lodging Owners/General Managers
From: Chris Walters — Chairman of the Board, Kalispell Tourism Business
Improvement District
Re: Tourism Business Improvement District (TBID) Assessment
Attached is the resolution from Mayor Fisher regarding the approval of the TBID. Over the past
year we've worked diligently in coming up with a way of ensuring our ability to continue to
acquire our share of the business. Now comes the time to implement the TBID.
As noted each lodging facility operator with five or more rooms must charge $1.25 per rented
room per night effective June 17, 2010. Note, there are several exemptions which follow the
state guidelines by the Montana Department of Revenue Lodging facility Use Tax Information
Guide.
In order to provide guidance in the implementation, the TBID at its next meeting will provide
an in-depth discussion of who is and isn't exempt, educational material for your front desk/guest
service agents and key people to contact with questions. I encourage all of you to attend.
In order to get a jump start the following represents a list of things a property should be
working in implementing prior to the June 17, 2010 effective date.
Front Office Systems/Registers - The association's recommendation is all systems
add an additional line which states Tourism Business Improvement District
Assessment or TBID Fee. For example a folio for one night's rent would show as
follows:
Room 110
$60.00
Tax - 110
$ 4.20
TBID Fee 110
$ 1.25
Balance Due
$65.45
II. At the TBID meeting on May 26, 2010, we will provide a letter from the Mayor
outlining that in fact the TBID Fee has been implemented city-wide. This should help
with guests who ask "what is this fee?" Or, "I didn't use this fee".
III, All groups who were previously booked and you have contracts for, should be notified
that the TBID Fee was recently passed and is effective June 17, 2010. Just since the
group was contracted before the TBID Fee does not mean they are exempt from the
Fee. Unless they fall under the existing Lodging Facility Use Tax Guidelines for Exempt
Charges.
IV. Front Desk Personnel - All personnel need to be made aware of this fee. Many
questions, problems can be eliminated with proper education. I strongly encourage
you to take the time to discuss with your staffs this new fee.
The Tourism Business Improvement District Fee is not "just another tax". This fee is collected by
the City Lodging Facility owners, controlled by a board of Lodging Facility owners or their
designee. So please, just don't say "it's just another tax" it is not.
Finally, I encourage all of you to attend the at the Kalispell Chamber on May 26, 2010 at 3:00 pm.
Should you have any questions or need guidance prior to the meeting feel free to contact myself at
406-758-2570.
Tourismness Improvement District of
Kalispell, Montana General Instructions
Reporting and remitting assessment.
Each lodging facility shall, on or before the last day of the month following the close of each calendar
quarter, shall complete the Tourism Business Improvement District reporting form which shows the total
number of rooms occupied during the reporting period, and the amount of assessment collected from all
occupied rooms. At the time the return is filed, which shall be simultaneous with the report to the state of
Montana regarding bed tax collections. Returns are due immediately upon cessation of business for any
reason. All assessments collected by lodging facility shall be held in trust for the account of the Tourism
Business Improvement District of Kalispell, Montana until payment thereof is made to the Kalispell City
Treasurer.
Records to be kept.
It shall be the duty of every lodging facility liable for the collection and payment of any assessment
imposed, to keep and preserve, for a period of three years, all records as may be necessary to determine
the amount of such assessment as may have been liable for the collection of and payment to the Kalispell
City Treasurer.
Delinquent payment - Penalties and interest.
A. Any lodging facility that fails to file a required return, statement, or other report with Kalispell
City Treasurer by the due date, including any extension of time, of the return or report must be
assessed a late filing penalty of $50 on the amount of the TBID fees due, whichever is less.
B. Any lodging facility that fails to pay the TBID fees when due must be assessed a late payment
penalty of .83% a month, or a fraction of a month, on the unpaid TBID fees. The
penalty may not exceed 10% of the amount due. The penalty accrues on the unpaid
TBID fees from the original date of the return regardless of whether the taxpayer has
received an extension of time for filing a return.
Failure to collect and report - Determination of assessment by finance director.
A. If any lodging facility fails or refuses to collect the assessment and to make, within the time
provided for report and remittance of the assessment or any portion thereof required, the
Kalispell City Treasurer shall proceed in manner which assumes full occupancy for all rooms of
the hotel property for the purpose of estimating the base upon which to calculate the assessment
due. The Kalispell City Treasurer shall proceed to determine and assess against such lodging
facility, the assessment and penalties.
B. In case such determination is made, the Kalispell City Treasurer shall give a notice of the
amount so assessed by serving it personally or by depositing it in the United States mail, postage
prepaid, addressed to the lodging facility so assessed at its last known place of address. Such
lodging facility may, within 10 days after the serving or mailing of such notice, make
application in writing to the Kalispell City Treasurer for a hearing on the amount assessed.
C. If application by the lodging facility for a hearing is not made within the time prescribed, the
assessment, and penalties, if any, determined by the Kalispell City Treasurer, shall become final
and conclusive and immediately due and payable. If such application is made, the Kalispell City
Treasurer shall give not less than five days' written notice to the lodging facility, to show cause
at a time and place fixed in the notice why the amount specified therein should not be fixed for
such assessment and penalties.
D. At such hearing, the lodging facility may appear and offer evidence why such specified
assessment and penalties should not be so fixed. After such hearing, the Kalispell City Treasurer
IQ
shall determine the proper assessment to be remitted, and shall thereafter give written notice to
the lodging facility in the manner prescribed herein of such determination and the amount of
such assessment and penalties. The amount determined to be due shall be payable after 15 days
unless an appeal is taken.
Actions to collect.
Any assessment required to be paid by the lodging facility shall be deemed a debt owed by
the lodging facility to the Tourism Business Improvement District and placed on the lodging
facility's property tax bill by Flathead County.
Tourism Business Improvement Distri
Return Instructions I
Line 1. Total Room Nights for the Quarter: total rental units for the use of lodging facilities.
Line 2. 30 Day Continuous Room Rentals: Charges for any individual that rents the same room for over 30
continuous days.
Line 3. Federal Employee Exemptions: Charges for federal employees that use a federal credit card that is
approved by the department or if you send bill directly to the Federal Government.
Line 4. Uncollectible charges: (example - NSF checks, cancellations, etc)
Line 5.Other: please attach a separate sheet of paper explaining other circumstances. This would include but not be
limited to comp rooms.
Line 6. Net Room Nights: Deduct lines 2, 3, 4, and 5 from IrneL Total Room Nights less 30 Day Continuous Room
Rentals, Federal Employee Exemptions, Uncollectible Room Nights and Other.
Line 7. Net Room Nights x $1.25: Amount that will be levied for the TBID fees for the quarter
Fein: Property Federal Tax Identification number
Property Tax Code. Property Tax Code that will be used for billing TBID assessment
Tourism Business Improvement District of Kalispell, Montana
PORTING PERIOD 4th Quarter-. April, May, June - 2010
Fein: (Preprinted)
Property Tax Code (Preprinted)
Quarter Ending: (Preprinted)
Monthly Breakdown of Room Night Fees Collected
Room Nights: show the
Room Nights: actual month
Room Nights: preprinted
Signature
Date:
Name of Property
Physical Address
Mailing
Address:
Return this Form to:
Kalispell City Treasurer
P. O. Box 1997, Kalispell, MT 59903
ROOM NIGHT TOTALS
1. Total Room Nights for the Quarter
2. Less 30 Day Continuous Room Night Rentals
3. Less Federal Employee Exemption Room Nights
4. Less Uncollectible Room Night Fees
5. Other: Attach Explanation (Comp Rooms etc.)
6. Net Room Nights
7. Net Room Nights x $1.25
Title:
This form is due on the last day of the month following the close of the reporting quarter.
1st Quarter -July, August, September Report Due October 31
2"d Quarter -October, November, December Report Due January 31
3'd Quarter- January, February, March Report Due April 30
4th Quarter- April, May, June Report Due July 31
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
June 1, 2010
Kalispell Hotel or Motel Guest:
On May 3, 2010, the Kalispell City Council approved Resolution 5425, creating the Kalispell
Tourism Business Improvement District (TBID). The District's purpose is to promote tourism in
and around Kalispell, thereby helping to support and grow business opportunities for the city's
hotels and motels.
Effective June 17, 2010, all hotels and motels with five (5) or more rooms will be assessed $1.25
per occupied room night. Stays by guests that are exempt from the transient occupancy or
lodging facility use tax are also exempt from the TBID assessments.
Ordinance 1675 appoints the District Board of Trustees. This board will govern the operations
of the District, including developing an annual work plan budget.
Please feel free to contact the Kalispell Tourism Business Improvement District staff at 406-758-
2800 if you have questions about the District's creation or operation.
Best regards,
Tammi Fisher
Mayor