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HomeMy WebLinkAboutR-2004-053 Tourism Promotion AreaA RESOLUTION RESOLUTION NO. R-2004- 53 of intention by the City Council of the City of Yakima to establish a Tourism Promotion Area, as authorized under RCW Chapter 35.101, and to impose Tourism Promotion Charges on the furnishing of lodging by lodging businesses located in the Tourism Promotion Area, the proceeds of which would be used for the sole purpose of tourism promotion, and authorizing the City Manager, or his designee, to enter into negotiations with Yakima County, the City of Selah and the City of Union Gap for the establishment of a Tourism Promotion Area that includes not only areas within the City's jurisdiction but also specifically including areas within the jurisdictions of the City of Selah, the City of Union Gap and unincorporated areas of Yakima County, and to negotiate and enter into an Interlocal Agreement with Yakima County, the City of Selah and the City of Union Gap to establish said Tourism Promotion Area. WHEREAS, pursuant to the provisions of RCW 35.18.160, the City Council of the City of Yakima holds all authority to adopt ordinances and resolutions; and WHEREAS, a Initiation Petition to Establish a Tourism Promotion Area containing the signatures of the persons who operate lodging businesses in the proposed area who would pay sixty percent (60%) or more of the proposed Tourism Promotion Charges, has been submitted to the City Council of the City of Yakima; and WHEREAS, LeMaster & Daniels, PLLC, 610 North 39th Avenue, Yakima, Washington, 98902, has certified the validity of the aforementioned Initiation Petition; and WHEREAS, pursuant to the provisions of RCW 35.101.030, the City Council of the City of Yakima shall, after receiving a valid initiation petition under RCW 35.101.020, adopt a resolution of intention to establish a tourism promotion area which shall state the time and place of a hearing to be held by the City Council to consider the establishment of an area, a description of boundaries in the proposed area, the proposed area uses and projects to which the proposed revenues from the Tourism Promotion Charges shall be dedicated and the total estimated cost of projects, and the estimate rate or rates of the Tourism Promotion Charges with a proposed breakdown of the classifications as described in RCW 35.101.050; and WHEREAS, pursuant to the provisions of RCW 35.101.040, the City Council may establish a Tourism Promotion Area that includes not only areas within the City of Yakima's jurisdiction but also areas within other jurisdictions; now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. The City Council of the City of Yakima intends to establish a Tourism Promotion Area pursuant to the provisions set forth in, and as authorized by, RCW Chapter 35.101. 2. A public hearing shall be held by the City Council to consider the establishment of a Tourism Promotion Area at 2:00 p.m., or as soon as possible thereafter, on April 13, 2004 in the City Council Chambers, Yakima City Hall, 129 North 2nd Street, Yakima, Washington 98901. 3. The boundaries of the proposed Tourism Promotion Area are set forth on Exhibit "A" attached hereto and incorporated by this reference as though fully set forth herein. 4. The proposed uses and projects the proposed revenues from the Tourism Promotion Charges collected by the operators of lodging businesses within the Tourism Promotion Area that are classified as hotels or motels with 40 or more lodging units shall be dedicated to the following uses and projects: a. The general promotion of tourism within Yakima County as specified in the Tourism Promotion Area business plan that shall be adopted annually; b. The marketing of convention and trade shows that benefit local tourism and the lodging businesses within Yakima County through overnight stays; c. The marketing of Yakima County to the travel industry in order to benefit local tourism and the lodging businesses within Yakima County through overnight stays; d. The marketing of Yakima County to recruit major sporting events for the purpose of overnight stays in order to promote local tourism and to benefit the lodging businesses within Yakima County. 5. The estimated, rates of the per night of stay charges on the furnishing of lodging by said lodging businesses are set forth on Exhibit "B" attached hereto and incorporated by this reference as though fully set forth herein and shall only apply to and affect lodging businesses that are classified as hotels and motels with 40 or more lodging units. ADOPTED BY THE CITY COUNCIL this 30th day of March , 2004. Paul P. George, Mayor ATTEST: )21 Karen S. Roberts, City Clerk Exhibit "A" TOURISM PROMOTION AREA BOUNDARIES Zone A Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located within the area of the City of Yakima defined as follows: Downtown core bordered from the centerline of East "D" Street to the North, the centerline of Third Street to the West, the centerline of East Spruce Street to the South and the centerline of Interstate 82 to the East. Zone B Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located within the area of the incorporated limits of the City of Yakima, the City of Selah and the City of Union Gap, except those lodging businesses that are located in Zone A. Zone C Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located outside Zones A and B, but within the unincorporated area of Yakima County. Exhibit "B" ESTIMATED TOURISM PROMOTION CHARGES The estimated Tourism Promotion Charges to be imposed on the operators of those Lodging Businesses with 40 rooms or more is as follows: Zone A: $1.50 per room per day Zone B: $0.75 per room per day Zone C: $0.50 per room per day RECEIVED CITY OF YAKIMA MAR 2 3 2004 OFFICE OF CITY COUNCIL Mem 1 ToMayor Paul George, City of Yakima From: Kathy Coffey, President & CEO, Yakima Valley Vis it& Convention Bureau C: CFile; Jay Wilgen, Yakima Valley Lodging Association; H en Harvey, City of Yakima Legal Department; Wanda Riel, Yakima Valley Visitors & Convention Bureau Board of Directors Data 3/22/2004 Res Special Purpose Legislation YAKIMA VALLEY VISITORS & CONVENTION BUREAU The Yakima Valley Lodging Association will be presenting the Yakima City Council with a petition to form a Tourism Promotion Area within the week. In order to comply with the legislation, and begin collecting the Tourism Promotion Charge by July, the city council will need to assist with the expedited completion of the following items: 1. When the City Council is presented with the Petition they must adopt a resolution of intention to form the TPA. We need this to be done almost immediately, in order to meet the 10 -day waiting period for the public hearing. 2. The City Council must hold a public hearing. Publication and mailing of the resolution of intention to all hotels affected by the TPA must be completed at least 10 days prior to the hearing. 3. The City Council must then adopt the ordinance and sign inter -local agreements with the participating municipalities. 4. Once approved, a copy of the ordinance will need to be given to the Department of Revenue no later than April 15, 2004. 1 CITY OF YAKIMA INITIATION PETITION TO ESTABLISH A TOURISM PROMOTION AREA WHEREAS, the 2003 State Legislature of the State of Washington has recognized the importance of tourism promotion in the State of Washington and passed Engrossed Substitute Senate Bill 6026 which authorized the establishment of a Tourism Promotion Area to levy a Tourism Promotion Charge to fund tourism promotion as defined therein; and WHEREAS, the Lodging Businesses within the City of Yakima desire now to present an Initiation Petition seeking to have the Council of the City of Yakima establish a To urism Promotion Area pursuant to the terms of Engrossed Substitute Bill 6026; and WHEREAS, pursuant to section 2 of Engrossed Substitute Senate Bill 6026, the Initiative Petition submitted to the City Council must contain the following: 1. A description of the boundaries of the proposed Tourism Promotion Area; 2. The proposed uses and projects to which the proposed revenue from the Tourism Promotion Charge should be dedicated and the total estimated costs of such uses and projects; and 3. The estimated rate for the Special Assessments to be levied on odging Businesses who are classified as hotels ..y...y vuJn IVJJVJ who classified � w�eis and motels with 40 rooms or more in various Zones within the Tourism Promotion Area with a proposed breakdown by class of lodging business if such classification is to be used; and 4. The signatures of the persons who operate lodging businesses in the proposed area who would pay sixty percent or more of the proposed Tourism Promotion Charge. NOW THEREFORE, the Lodging Businesses who are classified as hotels or motels with 40 rooms or more and are located within the City of Yakima and the do hereby petition the Council of the City of Yakima as follows: 1. The boundaries of the Tourism Promotion Area shall be the cities of Yakima, Union Gap, and the unincorporated areas of the County of Yakima. 2. The revenue from the Tourism Promotion Charge collected from the Operators of Lodging Businesses who are classified as Hotels or Motels within the Tourism Promotion Area shall be dedicated to the following uses and projects: a. The general promotion of tourism within Yakima County as specified in the TPA business plan to be adopted annua b. The marketing of convention and trade shows that •3n: it local tourism and the Lodging Business the Yakima runty area through overnight stays; c. The marketing of Yakima County to the travel industry in order to benefit local tourism and the Lodging Businesses in Yakima County through overnight stays; 3. The total estimated costs of such uses and projects are as follows: The Yakima Valley Lodging Association estimates that, on an annual basis, the revenue from the Tourism Promotion Charge collected from the operators of Lodging Businesses within the Tourism Promotion Area shall be between $250,000.00 and $400,000.00. This amount will vary from year to year depending upon the fluctuating occupancy rates of Lodging Businesses of Yakima County. 4. The rate of the Tourism Promotion Charge to be imposed in support of the functions of the Tourism Promotion Area is as follows: The Tourism Promotion Charge to be imposed on the operators of those Lodging Businesses with 40 rooms or more is as follows: Zone A: $1.50 per room / day Zone B: $0.75 per room / day Zone C: $0.50 per room / day Zone A: All Properties Within 5 Blocks Of The Convention Center Zone B: All Hotels Within 10 Miles Of The Convention Center, But Not Within 5 Blocks Zone C: All Hotels Outside Of 10 Miles Of The Convention Center This petition is hereby presented by the following persons who operate Lodging Businesses in the proposed Tourism Promotion Area and will pay sixty pe ent or more of the proposed Tourism Promotion Charge. RAH I inn Yakima (mentor Clarion Hotel & Conference Ctr. Best Western Peppertree i ed Uon = ° a Gateway Ramada LTD. Oxford Inn Oxford Suites Quality Inn- Union Gap Best Western Ahtanum Inn Super 8- Union Gap Comfort Suites- Yakima Valley Holiday Inn Express Cedars Inn & Suites Motel 6- Yakima Days Inn Hotel Economy Inn Nendels Colonial Motor Inn Quality Inn Yakima Valley Sun Country Inn Yakima Inn L� LE MASTER& DANIELS MC ACCOUNTING AND CONSULTING SERVICES MEMBER OF McGLADREY NETWORK. 610 N. 39t AVE. P.O. BOX 2710 YAKIMA, WA 98907-2710 (509) 453-0123 FAX (509) 453-0127 apo March 3, 2004la% SPOKANE QUINCY COLFAX TRI -CITIES GRANDVIEW WALLA WALLA MOSES LAKE WENATCHEE OMAK YAKIMA OTHELLO The Yakima Valley Lodging Association has retained LeMaster & Daniels to conduct a survey pursuant to RCW 43.79A.40 that enables a municipality to pass an ordinance that allows the establishment of a Tourism Promotion Area (TPA). In addition, the municipality is authorized to impose a charge on the furnishing of lodging by a lodging business located within the TPA. For the purpose of establishing a TPA, an initiation petition must be presented to the City Of Yakima. Inter -local agreements will be presented to Yakima County, the City of Union Gap, and the City of Selah. LeMaster & Daniels will gather data from all lodging businesses within the proposed TPA boundaries. All information received will be kept strictly confidential. Please answer the following questions for our certification of the petition, complete, and sign the attached Ballot of Certification, and return them in the self-addressed envelope. 1. What was the total number of occupied room nights for 2003 at your hotel/motel? 2. Are you in support of establishing a Tourism. Promotion Area in the Yakima Valley? ❑ Yes ❑ No Name/Title Date This letter must be returned within 10 days of receipt. I, BALLOT OF CERTIFICATION (Print Name) lodging business known as , hereby certify that I am the operator of the (Business Name) certify that as the operator empowered to sign the initiation petition to establish a Tourism Promotion Area within Yakima County to the terms of engrossed substitute Senate Bill 6026 as the legislature of State of - Washington. enacted by w�-. 2003 state ti,°1 'a!1m 'vi .: a�117ngtoi3,. , I further Si A nMiire Date Historical and.Statutory Notes • *Reviser's note: RCW 29.13.010 was recodified as RCW 29A.04.320 pursuant to 2003 c 111 § 2401, effective July 1, 2004. Section 35.101.010. 35.101.020. 35.101.030. 35.101.040. 35.101.050. 35.101.060. 35.101.070. 35.101.030. Effective date -2003 c 147: See note following RCW 47.10.861. CHAPTER 35.101 TOURISM PROMOTION AREAS Definitions. Establishment—Petition. Resolution of intention to es- tablish area—Hearing. Limitations on area includ- ed—Interlocal agreements. Lodging charge—Limita- tions. Notice of hearing. Conduct of hearing—Termi- nation of proceedings. Establishment of area—Ordi- nance. Section 35.101.090. Administration, collection of lodging charge. 35.101.100. Local tourism promotion ac- count created. 35.101.110. Charges are in addition to special assessments. 35.101.120. Charges are not a tax on sale of lodging. 35.101.130. Legislative authority has sole discretion concerning us for tourism promotion— Contracts for operation of area. 35.101.140. Disestablishment of area— Hearing—Resolution. 35.101.010. Definitions Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter. (1) "Area" means a tourism promotion area. (2) "Legislative authority" means the legislative authority of any county with a population greater than forty thousand but less than one million, or of any city or town within such a county, including unclassified cities or towns operating under special charters. (3) "Lodging business" means a person that furnishes lodging taxable by the state under chapter 82.08 RCW that has forty or more lodging units. (4) "Tourism promotion" means activities and expenditures designed to increase tourism and convention business, including but not limited to adver- CITIES AND TOWNS 35.101.040 tising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists, and operating tourism destination market- ing organizations. [2003 c 148 § 1, eff. July 27, 2003:] 35.101.020. :Establishment—Petition For the purpose of establishing a tourism promotion area, an initiation petition must be presented to the legislative authority having jurisdiction of the area in which the proposed tourism promotion area is to be located. The initiation petition must include the following: (1) A description of the boundaries of the proposed area; (2) The proposed uses and projects to which the proposed revenue from the charge shall be put and the totalestimated costs; (3) The estimated rate for the charge with a proposed breakdown by class of lodging business if such classification is to be used; and (4) The signatures •of the persons who operate lodging businesses in the proposed area who would pay sixty percent or more of the proposed charges. [2003 c 148 § 2, eff.. July 27, 2003.] 35.101.030. Resolution of intention to establish area—Hearing A legislative authority shall, after receiving a valid initiation petition under RCW 35.101.020, adopt a resolution of intention to establish an area. The resolution must state: (1) The time and place of a hearing to be held by the legislative authority to consider the establishment of an area; (2) A description of boundaries in the proposed area; (3) The proposed area uses and projects to which the proposed revenues from the charge shall be dedicated and the total estimated cost of projects; and (4) The estimated rate or rates of the charge with a proposed breakdown of classifications as described in RCW 35.101.050. [2003 a 148 § 3, eff. July 27, 2003.] 35.101.040. Limitations on area included—Interlocal agreements (1) Except as provided in subsection (2) of this section, no legislative authority may establish a tourism promotion area that includes within the boundaries of the area: (a) Any portion of an incorporated city or town, ifthe legislative authority is that of the county; and (b) Any portion of the county outside of an incorporated city or. town, if the legislative authority is that of the city or town. (2) By interlocal agreement adopted pursuant to chapter 39.34 RCW, a county, city, or town may establish a tourism promotion area that includes within the boundaries of the area portions of its own jurisdiction and another jurisdiction, if the other jurisdiction is party to the agreement. [2003 c 148 § 4; eff. July 27, 2003.] ounimemum ulTUM Es vW rul"/146 35.101.050. Lodging charge—Limitations A legislative authority may impose a charge on the furnishing of lodging' by a lodging business located in the area. (1) There shall not be more than six classifications upon which a. charge can be imposed. (2) Classifications can be based upon the number of rooms, room revenue, or location within the area. (3) Each classification may have its own rate, which shall be expressed in terms of nights of stay. (4) In no case may the rate under this section be in excess of two dollars per night of stay. [2003 c 148 § 5, eff. July 27, 2003.] 35.101.060. Notice of hearing Notice of a hearing held under RCW 35.101.030 shall be given by: (1) One publication of the resolution of intention in a newspaper of general circulation inthe city or county in which the area is to be established; and (2) Mailing a complete copy of the resolution of intention to each lodging business in the proposed area. Publication and mailing shall be completed at least ten days prior to the date and time of the hearing. [2003 c 148 § 6, eff. July 27, 2003.] 35.101.070. Conduct of hearing—Termination of proceedings Whenever a hearing is held under RCW 35.101.030, the legislative authority shall hear all protests and receive evidence for or against the proposed action. The legislative authority may continue the hearing from time to time. Pro- ceedings shall terminate if protest is made by the lodging businesses in the area which would pay a majority of the proposed charges. [2003 c 148 § 7, eff. July 27, 2003.] 35.101.080. Establishment of area—Ordinance Only after an initiation petition has been presented to the legislative authority under RCW 35.101.020 and only after the legislative authority has conducted a hearing under RCW 35.101.030, may the legislative authority adopt anordinance to establish an area:. If the legislative authority adoptsan ordinance to establish an area, the ordinance shall contain the following information: (1) The number, date, and title of the resolution of intention pursuant to which it was adopted; (2) The time and place the hearing was held concerning the formation of the, area; (3) The description of the boundaries of the area; (4) The initial or additional rate of charges to be imposed with.a breakdown by classification, if such classification is used; (5) A statement that an area has been established; and U111/240 1111111 IUV11170) (6) The uses to which the charge revenue shall be put. Uses shall conform to the uses declared in the initiation petition under RCW 35.101.020. f2003 c 148 § 8, eff. July 27, 2003.] 35.101.090. Administration, collection of lodging charge (1) The charge authorized by this chapter shall be administered by the department of revenue and shall be collected by lodging businesses from those persons who are taxable by the state under chapter 82.08 RCW. Chapter 82.32 RCW applies to the charge imposed under this chapter. (2) At least seventy-five days prior to the effective date of the resolution or ordinance imposing the charge, the legislative authority shall contract for the administration and collection by the department of revenue. (3) The charges authorized by this chapter that arecollected by the department of revenue shall be deposited by the department in the local tourism promotion account created in RCW 35.101.100. [2003 c 148 § 9, eff. July 27, 2003.] 35.101.100. Local tourism promotion account created The local tourism promotion account is created in the custody of the state treasurer. All receipts from the charges for tourism promotion must be deposited into this account. Expenditures from the account may only be used for tourism promotion. The state treasurer shall distribute the money in the account on a monthly basis to the legislative authority on whose behalf the money was collected. [2003 e 148 § 10, eff. July 27, 2003.] 35.101.110. Charges are in addition to special assessments The charges imposed under this chapter are in addition to the special assessments that may be levied under chapter 35.87A RCW. [2003 c 148 § 11, eff. July 27, 2003.] 35.101.120. Charges are not a tax on sale of lodging The charges imposed under this chapter are not a tax on the "sale of lodging" for the purposes of RCW 82.14.410. [2003 a 148 § 12, eff. July 27, 2003.] 35.101.130. Legislative authority has sole discretion concerning use for tourism promotion—Contracts for operation of area (1) The legislative authority -imposing the charge shall have sole discretion as to how the revenue derived from the charge is to be used to promote tourism. However, the legislative authority may appoint existing advisory boards or commissions to snake recommendations as to its use, or the legislative authority may create a new advisory board or commission for the [that] purpose. (2) The legislative authority may contract w;'th tourism destination market= ing organizations or other similar organizations to administer the operation of the area, so long as the administration complies with all applicable provisions of law, including this chapter, and with all county, city, or town resolutions and 35.101130 CITIES AND TOWNS ordinances, and with all regulations lawfully imposed by the state auditor or other state agencies. [2003 c 148 § 13, eff. July 27, 2003.] 35.101.140. Disestablishment of area—Hearing—Resolution The legislative authority may disestablish an area by ordinance after a hearing before the legislative authority. The legislative authority shall adopt a resolution of intention to disestablish the area at least fifteen days prior to the hearing required by this section. The resolution shall give the time and place of the hearing. [2003 c 148 § 14, eff. July 27, 2003.] BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. oZ For Meeting of March 30, 2004 ITEM TITLE: Consideration of adoption of resolution of intention to establish a tourism promotion area pursuant to Chapter 35.101 RCW and RCW 35.101.030 and setting a date of public hearing for Apri113, 2004. SUBMITTED BY: Glenn Rice, Assistant City Manager CONTACT PERSON/TELEPHONE: Glenn Rice, Assistant City Manager, 575-6040 SUMMARY EXPLANATION: Legislation in Chapter 35.101 RCW on "Tourism Promotion Areas" was enacted during the 2003 State Legislative Session. This legislation allows cities and counties to contract to establish a "tourism promotion area" (TPA) whereby the hotels and motels in such an area may be assessed fees to be used for tourism promotion. Pursuant to RCW 35.101.020, an Initiation Petition to Establish a Tourism Promotion Area for the purpose of establishing a tourism promotion area, will be filed with the City of Yakima Clerk on Monday, March 29, 2004. The accounting firm of LeMaster & Daniels will certify that it includes the signatures of the persons who operate lodging businesses in the proposed area who would pay sixty or more percent of the proposed charges. Pursuant to RCW 35.101.030, a legislative authority shall, after receiving a valid intention petition, adopt a resolution of intention to establish a tourism promotion area. This initiation petition asks that three fee zones be established as follows: Zone A: Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located within the area of the City of Yakima defined as follows: Downtown core bordered from the centerline of East "D" Street to the North, the centerline of Third Street to the West, the centerline of East Spruce Street to the South and the centerline of Interstate 82 to the East; Zone B: Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located within the area of the incorporated limits of the City of Yakima, the City of Selah and the City of Union Gap, except those lodging businesses that are located in Zone A; and Zone C: Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located outside Zones A and B, but within the unincorporated area of Yakima County. The tourism promotion fees that would be charged in each zone are as follows: Zone A: $1.50 per room/day; Zone B: $0.75 per room/day; Zone C: $0.50 per room/day. The money would be (Continued on Page Two) Resolution X Ordinance Other (Specify) Contract Mail to (name and address): Phone: Funding Source: APPROVED FOR. SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt Resolution. Set date of public hearing for April 13, 2004 to consider legislation establishing a tourist promotion area. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: (Page Two) originally collected by the Washington State Depaxt.,a.tent of Revenue and would then be paid to the City of Yakima which will administer the finds in accord with an hnterlocal Agreement between the Cities of Yakima, Selah and Union Gap and Yakima County. Pursuant to the proposed ordinance, a nine -member Yakima Hotel and Motel Commission is created to advise the City on how the money should be spent There is also a provision to dissolve the TPA on protest of businesses paying at least 40% of the fees unless, at a hearing for such purpose, a protest against dissolution ofthose is'in`ozer-vno%a::fees is submitted.