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HomeMy WebLinkAbout2012-10-17; Carlsbad Tourism Business Improvement District; 10-23-85; CTBID Grant Program FY 2012-13 FundingCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 10-12-85 CTBID GRANT PROGRAM CTBID STAFF MTG. 10-17-12 CTBID GRANT PROGRAM GENERAL 10-17-12 FY 2012-13 FUNDING COUNSEL DEPT. City Mgr RECOMMENDED ACTION: 1. Review and consider funding CTBID grant applications from In Motion Events (Carisbad Marathon) and Competitor Group (Carisbad 5000). 2. Adopt Resolution No. 2012-4 allocating amounts to be determined to the organizations identified. ITEM EXPLANATION: In 2008, the CTBID board approved the guidelines to establish a formal grant program. 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 CTBID Board appropriated $50,000 in their 2012-13 budget to fund these grants. The grant applications were due June 15th. Four applications were received with funding requests totaling $35,000. As part of their contract with the CTBID, the VisitCarisbad Board reviewed the applications to make funding recommendations to the CTBID Board. The VisitCarisbad Board met the week of June 18^^, to evaluate the grant requests. The requests were evaluated based on the following: Overall program promotes overnight stays in hotels Program included a "hotel tie in" (ie special rate or package) Compelling nature of the project and its potential image impact for the region Strength of marketing and public relations plan, including partnerships Likelihood that the project will receive publicity outside the San Diego Market Time of year that the event occurs As a result of their review and evaluation, the VisitCarisbad Board recommended $20,000 in funding for the Mercury Insurance Open and they did not recommend funding for ArtSplash. These recommendations were approved by the CTBID Board at its July 9, 2012 meeting. The VisitCarisbad Board could not come to a consensus on whether to fund the grant applications from In Motion Events/Carisbad Marathon and Competitor Group/Carisbad 5000 and therefore have no recommendation. Therefore the CTBID Board shall review the attached applications and consider whether to fund the grant requests. FISCAL IMPACT: The CTBID 2012-13 Budget contains an appropriation of $50,000 for CTBID Grants of which $30,000 is still available. 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 153789(b)). EXHIBITS: 1. Resolution No. 2012-4 allocating funding to the organizations identified. 2. Summary of CTBID Grants 3. Competitor Group/Carisbad 5000 CTBID grant application 4. In Motion Events/Carisbad Marathon CTBID grant application DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, cheryl.gerhardt@carisbadca.gov FOR CITY CLERKS USE ONLY. If BOARD ACTION: APPROVED If CONTINUED TO DATE SPECIFIC • DENIED If CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • // EXHIBIT 1 1 RESOLUTION NO. 2012-4 2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT ^ DISTRICT, ALLOCATING CTBID GRANT FUNDING FOR 4 2012-13 ^ WHEREAS, on March 18, 2008, the Board the Carlsbad Tourism Business Improvement District (CTBID) established a grant program to fund programs and activities that 7 promote overnight stays in Carlsbad; and WHEREAS, four organizations submitted applications for 2012-13 CTBID grant funds; and WHEREAS, the VisitCarlsbad Board reviewed the applications and made funding recommendations to the CTBID Board for two of the organizations which were approved at the CTBID Board's July 9, 2012 meeting. WHEREAS, the CTBID Board reviewed the applications for the other two organizations. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Tourism Business Improvement District, as follows: 1. That the above recitations are true and correct. 2. That the CTBID Board hereby allocates funding in the amount of $5,000 to In Motion Events for the 2013 Carlsbad Marathon in accordance with the Grant Guidelines. 3. That the CTBID Board hereby allocates funding in the amount of $20,000 to Competitor Group for the 2013 Carlsbad 5000 in accordance with the Grant Guidelines. /// /// /// /// /// 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED, AND ADOPTED at a regular meeting ofthe Board of Directors of the Carlsbad Tourism Business Improvement District on the day of QrJ:i>lo^^ 2012, by the following vote to wit: AYES: Board Members Stripe, Nayudu, Canepa, Stiebeling. NOES: None. ABSENT: Board Members McCormick, Becerra, Akers. Chair ATTE fEWOOD ofthe Carlsbad T(5urism Busine /// /// /// III III III III III III III III III provement District 5 EXHien* 2 SUMMARY OF CTBID GRANT REQUESTS 2012-13 Grant Progrann Objectives: a. Fund projects or events that are going to Increase the overnight stays in hotels; b. Encourage the development of innovative tourism products; c. Promote collaboration within and across sectors ofthe tourism industry; d. Reach important travel segments such as multicultural, family and senior markets; e. Strengthen the marketing capacity of our partnering organizations; and f. Combine the resources of the CTBID and its tourism partners to leverage their collective marketing efforts. Event Description Mercury Insurance Open- Women's Tennis Association Tournament to be held at the La Costa Resort & Spa July 14 - 22, 2012. This event will have international television coverage and is anticipated to attract 30,000 out of town visitors. Grant request is for TV advertising, Hispanic Marketing print and broadcast and collateral materials and postage. This year they have a new event managing company, Desert Champions, LLC. 2011-12 Grant Request 2011-12 Recommended Funding Past Years Funded $15,000+ $ 20,000 ArtSplash - This annual two day event is a festival of arts, food and fun held on Armada Drive in Carlsbad. The event will take place this year September 22nd & 23rd and is expected to attract 30,000 visitors. This year they are requesting funding to redesign their website. in Motion, Inc. - The Carlsbad Marathon is to be held January 27, 2013. This event is projected to bring 3,000-4,000 out of town visitors. Grant request is for advertising to nearby markets including Orange, Los Angeles, Riverside and San Bernardino as well as border cities in A2 and NV. They will also promote more race related and local activities and attractions to encourage marathoners to spend more time in Carlsbad. 5,000 $ 10,000 tbd Carlsbad 5000 - The Carlsbad 5000 is a two day running event that has taken place in Carlsbad for the past 27 years. It brings more than 20,000 runners, spectators and running fanatics to Carlsbad each year. Grant money would be used to expand marketing effors to increase the number of participants. $ 20,000 tbd Total $ 35,000 $ 20,000 EXHIBIT 3 Carlsbad Tourism Business Improvement District GRANT APPLICATION Submit to; Due Date June 15,2012 Carlsbad Tourism Business Improvement District Attn: Cheryl Gerhardt 1635 Faraday Avenue Carlsbad.CA 92008 Or Fax to 760-602-8533 or email chervl.gerhardt(2),carlsbadca.gov Questions? Call Cheryl Gerhardt 760-602-2753 Please complete the follomng application. You may attach additional pages if necessary. Name of J - i / / Applicant: LofYSQellic^r hrc/up I CcArlsb^A fiCTQO Address: ^iHll Waple S S7e /5<^; 5«rt^ D.^^c^.C^ ^l^i^l Phone: ( &5^) ^ ^0~&SIO Email h If&rr^^pe.l l^^-^ ^c^fi^ Co^^ Contact 6£^A^h / A (gS(g) l^f^-^HIS name phone Federal Tax ID # or Social Security #: 96'" 1 3>*?^^H 6 Amountof Grant Request: $ ^ O^OOO Program Description/Scope (please use additional pages if necessary but no more tiian 3): Describe your program: Sf.e. cxiiar:ht^J (JcK^lA^f^f^i'' lb Financial Capabilities/Budget: Current fimding sources and levels (identify source of matching funds): Reporting Requirements: A report on how the fimds 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 No • Other Requirements Grant recipients will be required to recognize on all printed material that grant program is fimded 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. Signature Title Date Grant Application Timetable May 23,2012 Grant guidelines available June 15,2012 Grant applications due to City office by 5 p.m. June 2012 Grant applications reviewed July 2012 Grant recipients announced CARLSBAD TOURISM GRANT APPLICATION Carlsbad 5000 Program Description: The world famous Carlsbad 5000 running event has taken to the streets of Carlsbad for 27 years. Carlsbad 5000 is known for its scenic course, beach party atmosphere and most distinctively, world records. Carlsbad is home to 16 world records in the 5K race and the top 22 World's Best 5K finishes of all time. The fast, scenic course and euphoric atmosphere bring more than 20,000 runners, spectators and running fanatics to Carlsbad each year. In its 24* year, Junior Carlsbad was one of the first running events for kids. Each year 3,000 kids, 12 and under, come to Carlsbad for a day of running fun. The race distances range from a diaper dash for the toddlers to a mile mn for the 7-12 year olds. The event is catered for all abilities and skill levels, with the main focus on encouraging kids to live a healthy lifestyle and making mnning fiin! Carlsbad 5000 and Junior Carlsbad combined make for a ftm family friendly event weekend focused on health and fitness. CGI strategizes and conducts a thorough marketing campaign each year including but not limited to print, television, digital, email, social media, grassroots and a national promotion expo tour. Print: Approximately 200,000 collateral pieces are printed each year for the Carlsbad 5000 and Junior Carlsbad events for promotions and event notifications. These pieces are distributed through direct mail, grassroots marketing, expos and distribution. In addition, print ads run in magazines and newspapers including, but not limited to, Competitor Magazine, Triathlete Magazine, Race Place (cover) and Coast News. Digital: As part of Competitor Group Inc., other digital media properties are leveraged to promote the event and the City of Carlsbad both locally and nationally by placing banner ads on appropriate race and content pages. For example, CGI features a digital banner ad on the Rock 'n' Roll San Diego, P.P. Chang's Rock 'n' Roll Arizona and TriRock San Diego event page(s) during high traffic times. Social Media is an increasingly successful mode of marketing for Carlsbad 5000 and Junior Carlsbad. We not only use our own Facebook page to communicate to runners, but we also partner with many other businesses and events to promote to one another's fan base. Email: Having large databases from our other properties, we leverage lists from other Competitor Group events (i.e. Rock 'n' Roll Marathon Series) to draw in new runners each year. In order to reach an even broader demographic, we also partner with other local events and organizations to promote to their lists. n Financial Capabilities/Budget; Marketing: • General Promotions: S6,000 • Printing: $11,000 • Grassroots: $2,500 • Direct Mail: $10,000 • Distribufion: $3,000 • Advertising: $36,640 • TOTAL MARKETING SPEND: $69,140 Additional financial contributions, fi'om departments other than marketing, available upon request. How Grant Money would be Spent: With additional money for event marketing from the grant, the Carlsbad 5000 team would expand their marketing plan. New marketing initiatives would include the following, with the main goal to increase the number to participants and therefore increasing the economic impact for the city. • Increase direct mail to include counties outside of San Diego • Create new signs for Carlsbad Kiosks that do a better job of marketing the event • Print banners to be placed along seawall in Carlsbad and Encinitas leading up to the event (pending pennit approvals from cities) • Buy new email lists for areas outside of San Diego County to bring more and new out of town mnners • Buy and print signage (i.e. A-Frames) for trailheads in and around the Carlsbad area (pending city permit approval) • Increase the number of grassroots events attended throughout the year If there are marketing initiative Carlsbad Tourism would like to see done, CGI is willing to explore any and all marketing ideas. About Competitor Group Inc. Headquartered in San Diego, Calif., Competitor Group, Inc. (CGI) is the active lifestyle industry's leading media and event entertainment company. The aggregate CGI customer base now exceeds 7 million endurance enthusiasts and athletes. CGI's portfolio of media assets dominate the expanding endurance industry and include a robust digital community on the web and on mobile across the Competitor Endurance Sports Network of websites. With a leading market share of endurance enthusiasts, CGI owns and operates more than 65 events around the world, including the flagship Rock 'n' Roll Marathon Series in 29 markets, the Land Rover TriRock Triathlon Series in 7 markets, the Columbia Muddy Buddy Series in 8 markets and the Lady Speed Stick* Women's Half Marathon Series in 5 markets, collectively delivering more than 600,000 professional and amateur participants in 2012. Anchoring the company with rich content and marketing leverage are five publishing properties dedicated to nmning, cycling and triathlon including Velo, Inside Triathlon, Triathlete, Women's Running and Competitor with a combined monthly circulation of over 700,000. EXHIBIT 4 Carlsbad Tourism Business Improvement District GRANT APPUCATION Submit to: Due Date June 15, 2012 Carlsbad Tourism Business Improvement District Attn: Cheryl Gerhardt 1635 Faraday Avenue Carlsbad, CA 92008 Or Fax to 760-602-8533 or email cheryl.gerhard1@carlsbadca.gov Questions? Call Cheryl Gerhardt 760-602-2446 Please complete the following application. You may attacti additional pages if necessary. Name of Applicant: In Motion, Inc. Address: 6116 Innovation Way. Carlsbad. CA 92009 Contact Name: Christine Adams Phone: 760.692.2900 Email: christine@inmotionevents.com Federal Tax ID #: 33-0142668 Amount of Grant Request: Up to 510.000 Program Description/Scope Describe your program: The Carlsbad Marathon has been a valuable Carlsbad asset since 1991 when In Motion, Inc. was invited by the former 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 Kids Marathon Mile at LEGOLAND (one of the largest children's running events in California) and the three-day Health and Lifestyle Expo which is considered one of the best marathon expos in the country. In spite of the economic downturn, the marathon and half marathon continue to attract 10,000 runners and walkers, the Kids Marathon Mile provides 3,000 children the opportunity to run through LEGOLAND and the three-day Health and Lifestyle Expo draws nearly 20,000 visitors. Participants come to the Carlsbad Marathon from across the country and around the world. In 2012, participants came from forty-eight states and thirteen countries. Completing a marathon or a half marathon requires a major commitment including six months of training and it appeals to a market of active, affluent achievers. They enjoy traveling and have the disposable income to combine travel with their running passion. In addition to the participants, hundreds of vendors descend on Carlsbad on race weekend to display, demonstrate and sell products at the Health and Lifestyle Expo. Event sponsors often attend with regional and national representatives to see how their marketing dollars are being spent. They often bring their families for a fun-filled weekend (or longer) in the beautiful seaside village of Carlsbad. Several additional features of the Carlsbad Marathon add to the value of the event. Our Official Charities program will provide more than twenty non-profit organizations with a vehicle to raise funds and awareness for their causes. Last year more than $450,000 was raised through this program and every penny went directly to these non-profit organizations. Run for Your School was introduced four years ago to help schools raise funds by entering teams in the Kids Marathon Mile. A portion of each entry fee goes back to the schools who participate. 1 Through this program, area schools are not only able to raise funds, but also improve the fitness level of their students. In Motion also offers a six-month training program. In Motion Fit, which annually draws more than six hundred runners and walkers from first-timers to long-time marathoners and everything in between, 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 wili fhe program benefit Carlsbad tourism? The Carlsbad Marathon will directly benefit Carlsbad tourism in the following ways: Bv filling hotel rooms on race weekend The Carlsbad Marathon will once again work with Christine Ghezzi of Global Event Solutions to provide travel services for participants and serve as a liaison between hotels and the Carlsbad Marathon. This will allow us to continue to accurately track the number of room nights booked as a result of the event. Bv 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 getaway. After visiting Carlsbad for the marathon, many participants decide to make a return visit to vacation and see more of North County. Bv hiahliahting Carlsbad to targeted nearby markets We expect mcrathoners will continue to choose events thot offer the fun ond excitement of trgvel without the expense of increasing airfares. If we are awarded a CTBID grant, we will use the funds to "sell" the Carlsbad Marathon to nearby markets including Orange, Los Angeles, Riverside and San Bernardino counties as well as border cities in Arizona and Nevada. We'll 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: 3.000 - 4.000 Projected # of overnight stays: 400-500 Applicant Backaround: This applicant is a (an): • Non-Profit • Local Public Agency ^ For-Profit • Individual • Other Years in Business: 31 Number of Employees: 5 full-time, 2 part-time and a weekend staff of 15 Number of Volunteers: 2.000 Names of Officers and Board of Directors: Name: Title: Lynn Flanagan President Christine Adams Chief Executive Officer Ellen Larson Vice President 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 31 years of experience in every aspect 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 10 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 Cqpobllltles/Budaet: 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 $4^,000. Our funding comes from entry fees, expo vendor fees and sponsorship. We also have long-term contracts with clients who pay us a monthly management fee to produce fundraising events for them. These clients include the Son Diego Affiliate of Susan G. Komen for the Cure, the Orange County Affiliate of Susan G. Komen for the Cure, Chelsea's Light Foundation and Rady Children's Hospital. We would be happy to supply letters of recommendation and/or evidence of our financial stability if required. Reoortlna Requirements: A report on how the funds were spent will be required to be filed with the CTBID. Proof of program expenses (i.e., 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 13 No • Other Requirements Grant recipients will be required to recognize on all printed material that grant program is funded in port by the CTBID. Certificqfion: I, the undersigned, do hereby attest that the above information is true and correct to the best of my knowledge. CEO Signature Title Date Grqnt Appliccition TImetqble May 23, 2012 Grant guidelines available June 15,2012 Grant applications due to City office by 5 p.m. June 2012 Grant applications reviewed July 2012 Grant recipients announced 0\