The URL can be used to link to this page

Home My WebLink About06-17-19 City Commission Packet Materials - A2. BTBID Sunset Plan Presentation Commission Memorandum REPORT TO: Bozeman City Commission FROM: Daryl Schliem, Executive Director, Chamber of Commerce SUBJECT: TBID Sunset Plan MEETING DATE: Monday, June 17, 2019 AGENDA ITEM TYPE: Action RECOMMENDATION: Receive the Presentation and take appropriate next steps SUGGESTED MOTION: I move accept the information presented for the TBID Sunset Plan and instruct the City Manager to bring back additional information regarding the dissolution of the Bozeman Tourism Business Improvement District. BACKGROUND: On Tuesday, April 23, 2019, the Bozeman Tourism Business Improvement District Board of Directors took two actions regarding the district: 1) The Board voted unanimously to expand the district and create a regional TBID and tethered to the Gallatin County; and 2) The Board voted unanimously to dissolve the existing district by June 30, 2019. If the technicalities of dissolution prevent the City from meeting the preferred deadline, the Board will do nothing and the district will sunset on September 9, 2019. The intent of the dissolution of the Bozeman TBID is to reform the structure of the entity, having it become a part of a greater, county-wide, TBID. Those details were not available at the time of writing this memo. FISCAL EFFECTS: The City of Bozeman would no longer collect assessments from hoteliers in the city limits and distribute those funds to the TBID for tourism related promotional activities in the city limits. 327 328 329 330 331 332 333 Sunset Plan for Bozeman TBID Zero Budget for July 1, 2019 –September 9, 2019 334 Bozeman Tourism Business Improvement District -History •Created by City Ordinance 1765 –effective September 9, 2009 , under Section 7-12-1121(1) MCA. •Local Government was created for Bozeman Tourism Business Improvement District •EIN –27-1842677 for Bozeman Tourism Business Improvement District •City was listed as the Agency of Record •City received Annual Budget and reports •Anderson Zurmuehlen prepared audits and worked on filings with the State on behalf of the TBID Board. 335 Bozeman Tourism Improvement District – Sunset Plan •The Bozeman TBID Board voted unanimously to Sunset the current district on September 9, 2019 •The Board also voted unanimously to submit a Zero Budget / Zero Tax Increment for the term of July 1, 2019 –September 9, 2019. •The Board also voted unanimously at this time to move forward with creating a Regional Tourism Business Improvement District that better represents our marketing efforts. 336 Sunset Plan -Process •Collections are a full year in arrears –Collections for July 1, 2018 -June 30, 2019 have been committed for the 2019 Budget submitted last year. Estimated at 1.2 million •The Bozeman TBID, Board of Directors and Executive Director are working with Department of Administration and Anderson Zurmuehlen in Sunset Process •The Local Government entity –known as Bozeman Tourism Business Improvement District –will exist until all contracts have been fulfilled for the 2019 Budget. •Annual Report will be submitted in May 2020 to City Commission •Final Audit will be done at the end of this Budget 337 Sunset Plan –Process Continued •After Final Audit –TBID Board will then file a local government has been dissolved –Local Government Entity Information Form –MCA 7- 6-611 (3) AND (4) •Anderson Zurmuehlen will file final documents with the City of Bozeman, Department of Administration once all liabilities have been satisfied from the Bozeman Tourism Business Improvement District •All Liabilities are the responsibility of the TBID District, Board and Executive Director, not the City of Bozeman •Chamber of Commerce Executive Committee has agreed to back any liabilities that may exceed collections, until new district has revenue 338 Sunset Plan – Projected Shortfalls Collection Time Frame July 1, 2017 -June 30, 2018 July 1, 2018 -June 30, 2019 Events 2018 2019 Airlines Seat Guarantee $ 125,000.00 $ 125,000.00 Airlines Marketing Match $ 100,000.00 $ 120,000.00 MSU Concerts $ 50,000.00 $ 50,000.00 Montana High School Association $ 85,000.00 $ 100,000.00 IPW $ 10,000.00 $ 10,000.00 IMEX $ 10,000.00 $ 10,000.00 Other Grants $ 18,000.00 $ 103,000.00 Admin and Lease $ 74,000.00 $ 78,000.00 NCUR $45,000.00 Sub Total Events $ 517,000.00 $ 596,000.00 Marketing $ 500,000.00 $ 604,000.00 Collections Total Commitment $ 1,017,000.00 $ 1,200,000.00 $ 1,086,000.00 $ 1,156,000.00 Total Expenditure $ 2,217,000.00 $ 2,242,000.00 LOC Payoff $ 250,000.00 Total Revenue Total Obligation on District $ 2,467,000.00 $ 2,242,000.00 $ (225,000.00) 339 Chamber of Commerce Executive Committee •On May 21, 2019 –The Executive Committee of the Bozeman Area Chamber of Commerce vote unanimously to cover any shortfalls in the current Bozeman Tourism Business Improvement District until such time the New District has significant revenue to reimburse the Bozeman Area Chamber of Commerce. •Thank You /Questions? 340 Bozeman TBID FY19 MARKETING PLANFY 20 Zero Budget / No Collection for July 1, 2019 –September 9, 2019341 SuccessesContent Strategy• Overall web traffic up 50% FY19 to date• Search Engine traffic up 68% FY19 to date• Top sources of web traffic:• Social Media• Organic Search Engine• Paid Search Engine2342 Successes• Overall marketing list: 12,807 - Blog Subscribers: 4,616• Airline marketing campaign: Projected bookings are 10-12% over last summer• Robust video and photo library• Digital advertising campaign: Continued growth across channels• Now tracking visitations with new technology (Arrivalist)3343 SuccessesWe now have over 250 blogs posted on the website that received over 1.2 Million page views from July 1st, 2018 through May 31st, 2019. Posts with highest engagement:1. Top 10 Things To Do In Yellowstone (77,108)2. The Best Hot Springs In Montana (66,993)3. 7 Life Changing Things To Do In Yellowstone (48,894)4. Direct Flights to Bozeman You Need to Know About (22,310)5. Plan the Perfect Day Trip To Yellowstone National Park (17,655)User-generated content on Instagram, using the hashtag #onlyinbozeman, has driven fantastic organic growth with these followers becoming ambassadors for Bozeman. 4344 Successes510 Years of Website Traffic800K• 1,356% Growth from 2010 – 2019• On pace for 800K visits in FY20193 Year Lead Capture• FY17 – 2106• FY18 - 6329• FY19 – 7140 year to date345 Key Research Findings6In 2017, Montana Office of Tourism and Business Development contracted Destination Analysts to conduct research on the Winter Enthusiast. The findings show our biggest opportunity is to increase winter visitation. • The winter enthusiast identifies January as a time they would be most likely to visit; which for us, is an ideal time to increase hotel occupancy, skier numbers and winter visits to Yellowstone National Park.• Potential visitors in the study also list the top four important attributes for winter recreation include affordability, charming small towns near ski resorts, proximity to National Parks, hot springs and thermal pools. Bozeman embodies all of these attributes.• All five of the top states with a high concentration of winter enthusiasts are included in Bozeman’s target markets: California, Texas, Florida, New York and Pennsylvania. In particular, we continue to nurture these states to encourage winter travel. 346 Opportunities•Increasing our winter and shoulder season traffic•Increasing visitation from drive markets•Increasing cross‐seasonal communication with visitors•Promotion of direct flights and ease of access•Increase collaboration with tourism partners347 Potential Challenges8•Perception that it’s difficult to get here•Balancing hotel inventory•Congestion in Yellowstone National Park•Gas prices•Economic concerns•Managing growth•Significant weather or forest fire events348 Target Markets Based on ITRR Research, direct flight markets and website traffic PrimaryNew York, Dallas, Chicago, Los Angeles, San FranciscoSecondaryHouston, Denver, Atlanta, Seattle, Portland, Phoenix, Las Vegas, Salt Lake, MinneapolisEmergingFlorida and Pennsylvania which along with California, Texas and New York, aligns with the top stateswinter enthusiasts reside.Other emerging markets include Washington DC, Boston, Detroit, and Charlotte.349 Air Service: January, 2000– 4 direct flights 350 Current Air Service17 Direct Flights351 Bozeman Yellowstone International Airport Arrival Passenger Totals 2004 ‐2019308,985335,679317,850335,276351,214342,714365,210397,822433,829442,540483,132511,723554,034599,176670,923760,9790150,000300,000450,000600,000750,000900,0002004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019352 Bozeman Yellowstone International AirportArrival & Departure Passenger Totals 2004 ‐2017617,970671,358635,700670,552702,428685,428730,420795,644867,658885,080966,2641,023,4461,107,1681,199,5370300,000600,000900,0001,200,0001,500,0002004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017353 Potential additional direct flights:•Feasibility Study Completed and Final Discussion for Jet Blue to Boston / JFK•Met for the 4thtime with SWA and will meet again in early 2020, before site visitation to BZN‐Projection 2021•$750,000 Grant will be applied for again•Washington D.C.•Florida•Charlotte, NC•Canada –West Jet and Air Canada discussions to follow later his year. 14354 15Gross Lodging TaxMontana 2004 ‐2018$13,424,789 $14,629,619 $16,118,652 $17,966,228 $18,372,994 $17,201,592 $18,698,660 $20,091,923 $22,264,780 $23,690,983 $26,066,902 $27,488,773 $29,119,964 $30,739,050$33,159,933$0$7,500,000$15,000,000$22,500,000$30,000,000$37,500,000200420052006200720082009201020112012201320142015201620172018355 16Gross Lodging Tax RevenueYellowstone Country 2004 ‐2018$3,875,561 $4,351,376 $4,777,979 $5,349,508 $5,349,537 $4,900,038 $5,409,925 $5,730,604 $6,342,647 $7,097,693 $8,075,810 $9,244,330 $10,244,651$10,957,910$12,141,685$0$2,750,000$5,500,000$8,250,000$11,000,000$13,750,000200420052006200720082009201020112012201320142015201620172018356 17Gross Lodging Tax RevenueBozeman 2004 ‐2018$813,625 $911,231 $1,042,865 $1,163,739 $1,177,921 $1,114,071 $1,260,066 $1,361,671 $1,500,892 $1,718,816 $1,881,925 $2,137,827 $2,238,207$2,403,307$2,578,385$0$600,000$1,200,000$1,800,000$2,400,000$3,000,000200420052006200720082009201020112012201320142015201620172018357 18Gross Lodging Tax RevenueBelgrade 2004 ‐2018$70,544 $83,001 $93,747 $102,949 $114,333 $124,010 $127,736 $120,362 $134,112 $166,893 $246,446 $271,692 $282,447$297,885$303,580$0$75,000$150,000$225,000$300,000$375,000200420052006200720082009201020112012201320142015201620172018358 Lodging Tax RevenueBozeman 2015 = $2,137,827+14% over 2014Bozeman 2016 = $2,238,207+5% over 2015Bozeman 2017 = $2,403,307+7% over 2016Bozeman 2018 = $2,578,385+7% over 201719359 DemographicsVisitors• Urban Dwellers Looking to Escape Congested Locations• Millennials, Young Families, Families with Older Children, Retirees• Winter EnthusiastsMeetings• 500 people or less with focus on technology, agriculture, education, professional association and trade associationsFilm• Continue to work with Montana Film Office to promote Bozeman as premier filming location. Sports Tournaments and Events• Promote Bozeman for lacrosse, soccer and baseball tournaments outside of Montana High School Association• Support momentum of nationally recognized runs such as Run to the Pub and the Bozeman Marathon. • Traditional sports tournaments, both statewide and regional360 Interests59% Scenic Driving41% Day Hiking33% Nature Photography30% Visit Local Brewery30% Wildlife Watching29% Recreational Shopping21% Visiting Museums19% Car/RV Camping19% Visiting Other Historical Sites12% Visit Farmers Market11% Skiing/Snowboarding21361 Overall Goals•Optimize marketing around arrivals•Expand our social media efforts with varied content•Continue to leverage our content to drive website visits and travel guide requests•Continue targeted messaging based on geographic location and interest level•Expand our remarketing efforts to bring interested people back to the website•Collaborate with state and local partners to promote ease of access•Invest in cooperative opportunities from state, regional and local partners362 23Summer Creative363 TBID 2019 Budget24Consumer Advertising $604,000.00Gallatin Valley Tournament Committee $85,000.00Airline Incentives $125,000.00Airline Marketing $120,000.00IPW$10,000.00Marketing Support $166,000.00Photos/Video Updates $10,000.00Other/Grants $80,000.00TOTAL $1,200,000.00364 TBID 2020 Budget25$0 Budget for 2020as no collection will be assessed by City /TBID Board forJuly 1, 2019 – September 9, 2019365