The URL can be used to link to this page

Home My WebLink AboutFinal Adoption of Ordinance 1887 increasing BTBID Assessment_13Commission Memorandum 1 REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Economic Development Director SUBJECT: Adoption of Ordinance 1887 Amending Section 2.06.1460.F of the Bozeman Municipal Code Increasing the Assessment for the Bozeman Tourism Business Improvement District from $1.00 to $2.00 per Occupied Room Night. MEETING DATE: May 19, 2014 AGENDA ITEM TYPE: Consent RECOMMENDATION: Adopt Ordinance 1887 amending Section 2.06.1460.F of the Bozeman Municipal Code, increasing the assessment for the Bozeman Tourism Business Improvement District from $1.00 to $2.00 per occupied room night. SUGGESTED MOTIONS: I move to Adopt Ordinance 1887 amending Section 2.06.1460.F of the Bozeman Municipal Code, increasing the assessment for the Bozeman Tourism Business Improvement District from $1.00 to $2.00 per occupied room night. BACKGROUND: On May 5, 2014 the Commission voted 5-0 to provisionally adopt Ordinance 1887. Ordinance 1887 increases the per occupied room night assessment from $1 to $2. (ATTACHMENT 1) The Commission established the Bozeman Tourism Business Improvement District (BTBID) and the $1 per occupied room night assessment program in 2009. (ATTACHMENTS 2 & 3) At the November 5, 2013 meeting, the BTBID Board, in a 6-1 vote, recommended increasing the per room night assessment from $1 to $2. (ATTACHMENT 4) Supporters recommended augmenting the current assessment with an additional $1 in order to increase the available marketing dollars to remain competitive with other Montana communities currently considering increasing their per occupied room night assessments. An increase in the per occupied room night assessment from $1 to $2 per night allows BTBID hoteliers to maintain their market share investment with other Montana communities. Rationale for increasing the BTBID per occupied room night assessment from $1 to $2 include: 143 Commission Memorandum 2 1) Align with other Montana communities in the per occupied room night assessment. a) Billings currently has a $2 per occupied room night assessment rate and is considering $3 assessment. Billings has a $900,000.00 TBID marketing budget and a $309,000 state bed tax budget. b) Missoula currently has a $2 per occupied room night assessment rate. Missoula has a $420,000.00 TBID budget and a $180,000 state bed tax budget. Please note that Missoula has approximately half of the hotels in the City participating in their TBID because inclusion in the District is voluntary. 2) Enter into new markets for air service and maintain, or increase, marketing levels on existing routes in current markets; 3) Identify dollars to initiate a more unified Bozeman branding effort; 4) Bid on larger and more frequent Montana High School Association and other sports tournaments. The potential of a new sports complex to accommodate soccer and lacrosse fields, increases the possibility that the BTBID will need additional funding to secure more, and larger, sports tournaments for Bozeman; and 5) Continue engagement with the Montana Audubon Society and the Bozeman Audubon Society to discuss strategies for attracting birdwatchers from across the west and the United States to Bozeman for events. UNRESOLVED ISSUES: None at this time. FISCAL EFFECTS: The fiscal effects of approving Ordinance 1887 are dependent upon the amount of annual assessment collected, and at what rate. For reference, the 2013 annual assessment of $1 per occupied room night generated approximately $458,000 in annual revenue, estimated from BTBID reporting forms. An annual assessment of $2 per room night could generate approximately $916,000 in annual revenue. Assessments collected by the BTBID are utilized for: 1) Continue and increase both in- and out-of-state marketing of the Bozeman community; 2) Partner with the Bozeman Convention and Visitors Bureau (CVB) to support CVB efforts; 144 Commission Memorandum 3 3) Continue and increase Montana High School Association and other sports tournaments; 4) Partner with Big Sky and the Yellowstone Club in an effort to connect Bozeman with direct flights in expanding markets and travel hubs around the United States; 5) Partner with Yellowstone Country, West Yellowstone CVB and the BTBID, Big Sky CVB and the Biggest Skiing in America, for advertising. This collaboration affords greater exposure for longer periods of time in key markets; and 6) Support local events in advertising their events and assist with money to organize and initiate these events in the short term. Attachments: 1) Ordinance 1887; 2) Resolution 4182; 3) Ordinance 1765; and 4) November 5, 2013 BTBID meeting minutes. Report compiled on: April 23, 2014. Updated May 6, 2014 145 ORDINANCE NO. 1887 Page 1 of 4 ORDINANCE NO. 1887 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE BOZEMAN MUNICIPAL CODE, SECTION 2.06.1460.F INCREASING THE ASSESSMENT FOR THE BOZEMAN TOURISM BUSINESS IMPROVEMENT DISTRICT FROM $1.00 TO $2.00 PER OCCUPIED ROOM NIGHT WHEREAS, on July 6, 2009 the City Commission of the City of Bozeman adopted Resolution 4182 creating the Bozeman Tourism Business Improvement District (BTBID); and WHEREAS, on July 27, 2009 the City Commission adopted Ordinance 1765 creating the BTBID program; and WHEREAS, Ordinance 1765 established a $1.00 per occupied room night assessment; and WHEREAS, Ordinance 1765 was codified in the Bozeman Municipal Code (BMC) in 2.06.1460 as the Bozeman Tourism Business Improvement District program and effective on September 10, 2009; and WHEREAS, BMC Section 2.06.1460.F codifies the per occupied room night assessment in the amount of $1.00; and WHEREAS, on November 5, 2013, the BTBID Board determined it necessary to augment the current assessment in order to increase marketing dollars in an effort to remain competitive with other Montana communities contemplating increases to their occupied room night assessments; and WHEREAS, on November 5, 2013, the BTBID Board approved a $1.00 increase to the $1.00 per occupied room night assessment for a recommended combined total assessment of $2.00 per occupied room night. 146 ORDINANCE NO. 1887 Page 2 of 4 NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 Section 2.06.14.F, Bozeman Municipal Code, shall be amended to read: Assessments. Finding the benefits derived by each property or facility are proportional, the city commission shall annually assess the entire cost of the BTBID against the BTBID in the amount of one two dollars ($1.00) $2.00 per occupied room night. The properties to be assessed shall be those meeting the requirements of subsection D.2 of this section. The assessments described herein shall be subject to the provisions of division 4 of this article. Certain occupied room nights are exempt from assessments under this division. These include: 1. Occupied room nights at facilities that are otherwise exempt from paying a lodging facility use tax pursuant to MCA 15-65-101 through 15-65-136; and 2. Complimentary occupied room nights provided by a facility for no compensation. Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 3 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. 147 ORDINANCE NO. 1887 Page 3 of 4 Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 5 Codification. This Ordinance shall be codified as appropriate in Section 1. Section 6 Effective Date. This ordinance shall be in full force and effect on July 1, 2014. PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on May 5, 2014. ____________________________________ Jeffrey K. Krauss Mayor ATTEST: ____________________________________ STACY ULMEN, CMC City Clerk 148 ORDINANCE NO. 1887 Page 4 of 4 FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the May 19, 2014. The effective date of this ordinance is July 1, 2014. _________________________________ Jeffrey K. Krauss Mayor ATTEST: _______________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 166 167 168