HomeMy WebLinkAbout2008-07-07; Carlsbad Tourism Business Improvement District; 07-08-31; CTBID Grant RequestCARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
AB# 07-08-31
MTG. 7-7-08
DEPT. Admin
Services
CTBID Grant Requests
CTBID STAFF 0^4
GENERAL /S^
COUNSEL %/^—
1 .
RECOMMENDED ACTION:
1. Review and consider funding CTBID grant applications from In Motion Events and ArtSplash.
2. Adopt Resolution No. 2008-5 allocating amounts to be determined to the organizations
identified.
ITEM EXPLANATION:
At its March 18, 2008 meeting, the CTBID board approved the guidelines to establish a formal
grant program. As stated in the guidelines (shown at Exhibit 1), the objectives of the grant
program are to:
. Fund projects or events that are going to increase the overnight stays in hotels;
. Encourage the development of innovative tourism products;
. Promote collaboration within and across sectors of the tourism industry;
. Reach important travel segments such as multicultural, family and senior markets;
. Strengthen the marketing capacity of our partnering organizations; and
. Combine the resources of the CTBID and its tourism partners to leverage their collective
marketing efforts.
The board appropriated $40,000 in its 2008-09 budget to fund these grants. The grant
applications were due by June 2nd. Two applications were received. One was from In Motion
Events, the producers of the Carlsbad Marathon. They are requesting $10,000 to fund a new
marketing program directed at runners and walkers outside San Diego County but driving
distance to Carlsbad, (see application at Exhibit 2) The other request was from ArtSplash, the
producers of an annual two-day arts and music festival in Carlsbad. They are requesting $7,000
to market and publicize ArtSpalsh throughout the greater Southern California region, (see
application at Exhibit 3)
FISCAL IMPACT:
The CTBID 2008-09 Budget contains an appropriation of $40,000 for CTBID Grants. No further
appropriation is required.
ENVIRONMENTAL IMPACT:
This action does not approve any projects that will have a physical adverse affect on the
environment so it falls within the general rule under CEQA that this is not a project (CEQA
Regulation
EXHIBITS:
1. CTBID Grant Guidelines.
2. In Motion Events CTBID grant application.
3. Artsplash CTBID grant applicaton.
4. Resolution No. 2008-5 allocating funding to the organizations identified.
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
BOARD ACTION: APPROVED D CONTINUED TO DATE SPECIFIC D
DENIED O CONTINUED TO DATE UNKNOWN D
CONTINUED D RETURNED TO STAFF D
WITHDRAWN D OTHER - SEE MINUTES D
AMENDED D
EXHIBIT 1
CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT
GRANT PROGRAM GUIDELINES AND APPLICATION
I. ABOUT THE GRANT PROGRAM
The Carlsbad Tourism Business Improvement District (CTBID) Grant Program is a program developed
by the CTBID, an assessment district created by the hotels in Carlsbad to administer marketing and visitor
programs to promote the City of Carlsbad as a tourism visitor destination and to fund projects, programs,
and activities, including appropriate administrative charges, that benefit hotels within the boundaries of the
District. The objectives of the grant program are to:
• Fund projects or events that are going to increase the overnight stays in hotels;
• Encourage the development of innovative tourism products;
• Promote collaboration within and across sectors of the tourism industry;
• Reach important travel segments such as multicultural, family and senior markets;
• Strengthen the marketing capacity of our partnering organizations; and
• Combine the resources of the CTBID and its tourism partners to leverage their collective
marketing efforts.
The grant program was created by the CTBID Board in 2008 setting aside 5% of the CTBID budget for
grant awards beginning with the 2008-09 Budget.
In Fiscal Year 2008-09, up to $40,000 will available for grant awards.
II. TYPES OF PROJECTS SUPPORTED
CTBID Grants generally funds out-of-region marketing projects including festivals, performing & fine
art events, sporting events, youth events and history & heritage events.
A primary goal of the program is to promote overnight stays; therefore, one-day events are ineligible
for support. Added weight is given to projects that include a hotel tie in (e.g. special rate or package)
and projects with high attendance.
III. ABOUT GRANT ELIGIBILITY
The lead organization applying for CTBID grant funds must be:
• An organization with a significant interest in the promotion of a tourist
destination/attraction/activity, or regional tourist promotion agency.
• Promoting a destination/attraction/activity that takes place in Carlsbad.
The proposed project must occur between July 1, 2008 and June 30, 2009.
Grant recipients will be required to:
• Sign a letter of agreement binding their organization(s) to the terms and conditions set forth in
the funding guidelines, project proposal, and grant contract
• Obtain pre-approval from CTBID Board for the media plan, advertising and collateral design paid
for by the grant
• Acknowledge CTBID funding on advertising materials
• Submit a final report detailing the results of the project
Grants are awarded annually and must be matched by the grantee organization one dollar per dollar
awarded.
IV. ABOUT ELIGIBLE MARKETING ACTIVITIES AND EXPENSES
Grant funds may be used for the following marketing-related purposes only:
• The purchase of recognized and audited out-of-region media advertising
(Includes print and broadcast media)
• Printing and mailing costs for collateral materials
(Including guides, directories, and direct mail materials)
• Mailing costs for direct mail campaigns
• Creative costs up to 20 percent of the total amount of the grant
• Web related costs, including web based advertising and development of new sections to existing
web sites
• Marketing efforts above and beyond normal marketing done in the past
V. ABOUT INELIGIBLE MARKETING ACTIVITIES AND EXPENSES
The following activities cannot be covered by grant funds:
• Staffing or personnel costs
• Outdoor advertising (billboards and other and other unaudited media)
• Travel, food, lodging and/or entertainment expenses
• Expenses not directly related to the approved program
VI. ABOUT AWARD CRITERIA
Projects will be selected based on whether the project meets the goals and objectives of the CTBID and
the following criteria:
• Compelling nature of the project and its potential image impact for the region
• Potential to attract significant numbers of visitors and to generate overnight stays
• Strength of marketing and public relations plan, including partnerships
• Likelihood that project will receive publicity outside San Diego market
• Organizational capacity for and commitment to marketing
• Potential to complement and enhance the CTBID's regional marketing
VII.ABOUT THE PROPOSAL REVIEW PROCESS
During the first year of the grants the CTBID Board will review grant applications. Applicants may be
interviewed or asked to provide additional information as part of the review process. CTBID's board of
directors approves final grant recipients.
VIII. ABOUT DISTRIBUTION OF FUNDS AND GRANT REPORTING
Funds are disbursed on a reimbursement basis. CTBID will reimburse grantees upon receipt of the
final report detailing the results of the project along with copies of the pre-approved advertisements and
collateral materials supported through the grant. The request for payment will accompany the final report
and will include a detailed account of grant related and matching expenses.
EXHIBIT 2
Carlsbad Tourism
Business Improvement District
GRANT APPLICATION
Submitted on May 22,2008 to:
Carlsbad Tourism Business Improvement District
Attn: Cheryl Gerhardt, Administrative Services Department
1635 Faraday Avenue
Carlsbad, CA 92008
Applicant: Carlsbad Marathon (a DBA of In Motion Inc.)
Address: 6355 Corte del Abeto, Ste C103, Carlsbad 92011
Email lynn@inmotionevents.com
Contact: Lynn Flanagan
Phone: 760-692-2900
Federal Tax ID: #33'-0142668
Amount of Grant Request: $10,000
Program Description/Scope
The Carlsbad Marathon has been a valuable Carlsbad asset since 1991 when In Motion, Inc was
invited by the current City Manager, Ray Patchette, to relocate the event from the City of San
Diego to Carlsbad.
The event has grown each year in terms of participants, auxiliary events, and awareness.
The Marathon is now accompanied by a very popular half marathon, the Keebler Kids Marathon
Mile (one of the largest children's running events in California) and the three day Health and
Fitness Expo which is considered one of the best Marathon Expos in the country.
Last year's race drew over 9,000 runners and walkers while the Keebler Kids Marathon Mile
provided 2,500 children the opportunity to run through Legoland, and the three day Health and
Fitness Expo had nearly 20,000 visitors.
Page 1 of4
Participants come to the Carlsbad Marathon from across the country and around the world with
fifty-five percent coming from San Diego County. Another thirty-two percent come from other
areas of California and the remaining thirteen percent come from forty-eight states and fifteen
other countries.
Completing a Marathon or a Half Marathon requires a major commitment including six months
of training and it appeals to an attractive market - active, affluent, achievers. They enjoy
traveling and have the disposable income to combine travel with their passion - Marathoning.
In addition to the participants, hundreds of vendors descend on Carlsbad on race weekend to
display, demonstrate and sell their fitness products at the Health and Fitness Expo. Event
sponsors often attend with regional and national representatives to see how their marketing
dollars are being spent. They sometimes bring their families for a fun-filled weekend in the
beautiful sea side village of Carlsbad.
Several additional features of the Carlsbad Marathon add to the value of the event. Charities in
Motion provides twelve to fourteen non-profit organizations with a vehicle to raise funds and
awareness for their programs. Last year over $250,000 was raised through this program and
every penny went directly to the non-profit members of Charities in Motion.
Run for Your School was introduced last year to help schools raise funds by entering teams in
the Keebler Kids Marathon Mile. A portion of each entry fee goes back to the schools who
participate. Through this program, area schools are not only raising funds but also improving the
fitness level of their students.
In Motion also offers a six month training program, In Motion Fit, which annually draws over six
hundred runners and walkers from very beginners to long time marathoners and prepares them
for the Marathon or Half Marathon. Many of the members are Carlsbad residents. There is no
question that the Carlsbad Marathon contributes to the overall health and fitness of the
community.
How will the program benefit Carlsbad tourism?
The Carlsbad Marathon will benefit Carlsbad Tourism in several ways.
By filling hotel rooms on race weekend
Business will be brought to a minimum of 14 Carlsbad hotels
The actual tracked revenue from room nights for the 2008 Carlsbad Marathon as reported by the
San Diego North CVB per the agreed upon reporting process for the Carlsbad BID shows the
following:
Actual Room Nights
1,269
Total Property Revenue
$173,898
Estimated Economic Impact
$559,629
Page 2 of 4
By promoting Carlsbad as a beautiful vacation destination
The pre-event advertising and the event coverage present Carlsbad in a very favorable light and
showcase it as a great place to plan a winter get-away. (See media report in Sponsor Recap)
After visiting Carlsbad for the Marathon, many participants decide to make a return visit to
vacation and see more of North County.
By highlighting Carlsbad to targeted near-by markets
Because of the downturn in the economy we expect Marathoners to choose events that offer the
fun and excitement of travel without the expense of rising airfares. If we are awarded a CTBID
grant we will use the money to "sell" the Carlsbad Marathon to nearby markets including
Orange, Los Angeles, Riverside and San Bernardino counties as well as Arizona and Las Vegas.
We will also promote more race related and local activities and attractions to encourage
marathoners to spend more time in Carlsbad.
Projected # of out of town visitors: 4,500
Projected # of room nights: 1,500 -1,750
Use of CTBID Grant Money
If the Carlsbad Marathon is awarded the requested grant, we will use the money to develop a
new marketing program directed at runners/walkers outside of San Diego County but within
driving distance of Carlsbad. We have not had a specific marketing program for this market in
the past.
The plan will include the following:
Print ads in publications we have not been able to use in the past such as:
LA Sports and Fitness Magazine
Race Place Arizona
Sweat Magazine - Arizona
Direct mail campaign to marathoners in the Los Angeles area as well as key area in Nevada and
Arizona
Distribution of entry forms in these target areas
Design and printing of ads and collateral materials for this new marketing program
Applicant Background;
In Motion, Inc. is a for-profit corporation based in Carlsbad. Lynn Flanagan is a Carlsbad
resident.
Years in Business: 27
Number of Employees: four full time, three part-time, and a weekend crew of 15-20
Number of Volunteers: 1,500+
Names of Officers and Board of Directors:
Page 3 of4
Lynn Flanagan President
"Ellen Flanagan Larson V.P. Data Management
Christine Flanagan Adams V.P. Marketing
Experience in Program Area:
We have been producing the marathon since 1986 and moved it from San Diego to North County
in 1991. We have 27 years of experience in every area of race management including logistics,
marketing, sponsorship, public relations and volunteer management.
We have an, excellent relationship with the City of Carlsbad and work closely with City staff to
make the Carlsbad Marathon a very positive and valuable experience for the participants, the
City of Carlsbad, its citizens and businesses. Our success is a direct result of our commitment to
excellence and our ability to work as a team with the City of Carlsbad.
Financial Capabilities/Budget:
We are a very stable company, in business since 1981. We have excellent credit and a healthy
reserve to produce this event which has a budget of just over $3:50,000. Our funding comes from
entry fees, expo vendor fees and sponsorship.
W« also have long term contracts with a number of clients for whom we produce other events.
These clients, who pay us a monthly fee, include the San Diego Union-Tribune, Komen San
Diego Race for the Cure, Komen Orange County Race for the Cure, Rady Children's Hospital,
and the San Diego Zoo. We would be happy to supply letters of recommendation or proof of our
financial stability if required.
Reporting Requirements!
A report on how the grant fund have been spent will be filed with the CTBID by In Motion, Inc.
We understand that proof of program expenses (ie receipts) are requited to be held for two years
during which time the CTBID reserves the right to audit the records.
In Motion, Inc agrees to adhere to the reporting requirements described above.
Other Requirements:
The Carlsbad Marathon will recognize the CTBID for their funding on all race related printed
marketing materials.
CertiOcatioo:
I, the undersigned, do hereby attest that the above information is true and correct to the best
of my knowledge.
Ptjjo 4 of 4
EXHIBIT 3
Carlsbad Tourism Business Improvement District
GRANT APPLICATION
Submit to: Due Date June 2,2008
Carlsbad Tourism Business Improvement District
Attn: Cheryl Gerhardt, Administrative Services Department
1635 Faraday Avenue
Carlsbad, CA 92008
Or Fax to 760-602-8533 or email cgerh@ci.carlsbad.ca.us
Questons? Call Cheryl Gerhardt 760-602-2409
Please complete the following application. You may attach additional pages if necessary.
Name of Applicant: ArtSplash
Address: 5620 Paseo del Norte, # 127-442
Carlsbad CA 92008-4483
Phone: (760} 436-2828 Email: ioni(g),carltas.com
Contact 1: Joni Miringoff (760) 436-2828
name phone
Federal Tax ID # or Social Security #: 20-0489191
Amount of Grant Request: $7,000.00
Program Description/Scope (please use additional pages if necessary but no more than 3):
Describe your program:
ArtSplash is an all volunteer, non-profit organization that produces a popular annual arts and
music festival in Carlsbad to raise funds for art and music programs in North County schools.
ArtSplash was founded by members of the North County community in 2001 and established as
a 501(c)(3) non-profit organization. The two-day festival that began as a means to develop,
promote and celebrate the visual and performing arts and culture in North County San Diego, has
grown into one of North County's most popular traditions. Demonstration and hands-on
activities are presented to engage visitors of all ages. Prior years have presented a wide variety
of activities including violin making, cartooning, graffiti art, paper-bag hat making, art glass
mosaic, circus acts, sculpture in clay, stone and bronze, live music and dance, as well as our
centerpiece chalk art.
ArtSplash Application
Two years ago, we added the popular Taste of Carlsbad showcasing local restaurants with a
separate admission fee. We plan to change the name to Taste of North County to expand the
scope to restaurants from the North County region. This action alone will no doubt bring visitors
from a broader spectrum in our target market. Tasting events in surrounding cities have proven to
be successful monetarily and in popularity. ArtSplash now annually draws over 30,000 visitors
from San Diego, Riverside, Orange and Los Angeles counties. Working in partnership with
local organizations, artists, and local city government, ArtSplash has helped to advance arts
education, support local artists, and create an innovative event for regional residents of all
demographics.
The ArtSplash Board of Directors and Committee is committed to offering the festival with no
admission or parking fee to ensure that everyone can come and enjoy a beautiful Southern
California weekend of art overlooking the Pacific Ocean. This creates a somewhat unique
challenge for ArtSplash. There are limited opportunities to raise the necessary funds to produce
the event. ArtSplash relies on the generosity of its volunteers and many sponsors representing
local businesses, local government, art patrons and organizations. ArtSplash as well as other
non-profit organizations are finding the current economic conditions adversely impacting
fundraising. The members of the ArtSplash Committee and Board of Directors represent various
sectors of the local tourist industry including hotels, our local tourism bureau and The Flower
Fields.
ArtSplash is requesting CTBID's support to underwrite the cost for advertisements in out-of-
town publications, direct mailings, and a media consultant to write and distribute professional
press releases. Each of these actions is critical to draw attendance from a broader geographic
area.
How will the program benefit Carlsbad tourism?
ArtSplash offers visitors a unique and diverse performance and visual arts experience. The
addition of Taste of Carlsbad and Fern Street Circus in 2006 increased attendance to over
30,000. The 2008 festival will be presented on September 20-21 and will again include Taste of
North County on Saturday and Fern Street Circus on Sunday. New this year will be glass
sculpting demonstrations by renowned San Diego artist James Stone.
ArtSplash offers a variety of free performance and visual art experiences. Each year over 70
professional artists spend Saturday and Sunday creating large street chalk art pieces. Our visitors
are able to watch the process close up and interact with the artists. In addition to the chalk art,
demonstrations of hands-on sand sculpting, stone sculpting, glass-tile mosaic and rock stacking
continue to be extremely popular with the crowds. Performing artists entertain both days on
stage and by meandering throughout the festival grounds. Visitors may interact with chalk
artists, sculptors, jugglers, and musicians as well. There are various art activities dedicated
toward young children and their families in addition to the chalk art in the Family Arts Carnival.
By keeping ArtSplash fresh and appealing each year, our visitors return year after year. Last
year, they came from not only from San Diego County, but also Orange and Riverside Counties
ArtSplash Application
and beyond. The 2007 festival guest survey found that over 50% of the respondents planned to
shop or visit a restaurant in addition to attending the ArtSplash festival. Many who come for a
day, may return for a weekend get-away or a longer vacation. Three Carlsbad hotels (Grand
Pacific Palisades, Inns of America Suites and Holiday Inn) are offering special room rates for
ArtSplash to encourage overnight stays.
The CTBID's support is needed to help market and publicize ArtSplash throughout the greater
Southern California region to maximize patronage for both the festival and local businesses.
Funds from CTBID's support will be used to purchase advertisements in Orange and Riverside
County newspapers as well as other out of the area magazines and websites. Representative
media results from previous years include the Orange County Register and Riverside Press
Enterprise newspapers, and OC-The Place, California Tour & Travel and Landscapes Magazines.
ArtSplash is planning a comparable effort in 2008. With assistance, ArtSplash will make a direct
mailing to at least 1,000 addresses for the first time. ArtSplash also plans to engage a media
consultant to write and distribute professional press releases. These efforts will ensure exposure
of ArtSplash in the broader Southern California markets. Some former supporters are no longer
able to make donations that helped fund ArtSplash's advertising efforts. Without new sources of
funding, some reductions in advertising are likely.
Projected # of out of town visitors: 10,000
Projected # of overnight stays: 500
Applicant Background:
This applicant is a (an):
0 Non-Profit D Local Public Agency
D For-Profit D Individual
D Other
Years in Business: 7 years
Number of Employees: 0
Number of Volunteers: 200
(Please attach an organization chart, if available.)
Names of Officers and Board of Directors:
Name: Title:
James Comstock Treasurer
Patricia Gunn Vice President
Frankie Laney 2nd Vice President
Joni Miringoff President
Carla J. Noble Secretary
Stephen M. L'Heureaux ex-officio
Experience in Program Area:
ArtSplash Application
ArtSplash 2008 will be the sixth festival produced by the ArtSplash Committee. The Committee
members function as key sub-committee chairs and members. ArtSplash is pleased to have the
majority of its Committee members return for multiple years. Many have been with the
organization from its inception. A number of the Committee members are marketing
professionals in the tourist industry. In past years, ArtSplash has earned over $120,000 of unpaid
media coverage in addition to purchased ads. Articles have been placed in newspapers,
magazines, broadcast and Internet media. The growth and expansion of the successful festival
are a testament to the knowledge, skill and commitment of the Committee.
Financial Capabilities/Budget
Current funding sources and levels (identify source of matching funds):
ArtSplash is seeking funding from a variety of sources, including foundations, corporations,
local governments and individual donors to the arts. The nature of this project is such that major
expenditures are not required on an annual basis. ArtSplash has no year to year financial
commitments.
In 2007, ArtSplash spent $22,000 for advertising and promotions. The budget for 2008 is
comparable, however dependent upon funding sources.
Reporting Requirements;
A report on how the funds were spent will be required to be filed with the CTBID. Proof of
program expenses (ie receipts) are required to be held for two years during which time the
CTBID reserves the right to audit the records.
We agree to adhere to the reporting requirements described above. Yes 0 No D
Other Requirements
Grant recipients will be required to recognize on all printed material that grant program is funded in
part by the CTBID.
Certification:
I, the undersigned, do hereby attest that the above information is true and correct to the best of my
knowledge.
\ rYl * ^~y-^ I
Signature s ^^^ Title ~
Grant Application Timetable*
April 1,2008 Grant guidelines available
ArtSplash Application
June 2,2008 Grant applications due to City office by 5 p.m.
June/July 2008 Grant applications reviewed by subcommittee
July 2008 Grant recipients announced
*The Board will have another application period midway through the year in December.
The due date of the application will be announced at least 2 months prior to its due date.
ArtSplash Application
EXHIBIT 4
1 RESOLUTION NO. 2008-5
2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD TOURISM BUSINESS IMPROVEMENT
DISTRICT, ALLOCATION CTBID GRANT FUNDING FOR
4 2008-09
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WHEREAS, The Board of the Carlsbad Tourism Business Improvement District
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established a grant program to fund programs and activities that promote overnight stays in
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Carlsbad; and
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WHEREAS, Two organizations have submitted applications for CTBID grant funds; and
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WHEREAS, the CTBID Board reviewed the applications; and
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NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad
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Tourism Business Improvement District, as follows:
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1. That the above recitations are true and correct.
13 S2. That the CTBID Board hereby allocated funding in the amount of IV. oo0.c# to In
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Motion Events for the 2009 Carlsbad Marathon in accordance with the Grant
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Guidelines.
3. That the CTBID Board hereby allocated funding in the amount of * ,- to
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ArtSplash for the ArtSplash 2008 in accordance with the Grant Guidelines.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of
Directors of the Carlsbad Tourism Business Improvement District on the / day of
2008, by the following vote to wit:
AYES:
NOES:
ABSENT:
ATTEST:
o
I
APRIL
Chairperson
LORRAINE WOOp J (j
Pro Tern Clerk of 1
Carlsbad Tourism Business Improvement District
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