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HomeMy WebLinkAbout2016-01-27; Carlsbad Tourism Business Improvement District; 01-16-124; CTBID Grant RequestCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 01-16-124 CTBID STAFF MTG. 01-27-16 CTBID GRANT REQUEST GENERAL COUNSEL RECOMMENDED ACTION: 1. Review and consider funding CTBID grant application from LPGA Kia Classic. 2. Adopt Resolution No. 2016-1 allocating amounts to be determined to the LPGA Kia Classic. 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 $150,000 in their 2015-16 budget to fund these grants. As part of their contract with the CTBID, the VisitCarlsbad Board reviews the applications and makes funding recommendations to the CTBID Board. The VisitCarlsbad Board reviews the requests 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 VisitCarlsbad Board, to date, has recommended, and the CTBID Board has approved, funding for seven of the requests for a total of $94,500. The table in Exhibit 2 summarizes prior funding of CTBID grants. One application has been recently received from the LPGA Kia Classic for $50,000. The VisitCarlsbad Board reviewed this applicationss and met with the applicant and is recommending $25,000 in funding for the LPGA Kia Classic. The application is included in the exhibit. FISCAL IMPACT: The CTBID 2015-16 Budget contains an appropriation of $150,000 for CTBID Grants of which $55,500 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. 2015-1 allocating funding to the organizations identified 2. Summary of prior CTBID Grant funding 3. Kia Classic grant application DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, cheryl.gerhardt@carlsbadca.gov FOR CITY CLERKS USE ONLY. BOARD ACTION: APPROVED ❑ CONTINUED TO DATE SPECIFIC ❑ DENIED ❑ CONTINUED TO DATE UNKNOWN ❑ CONTINUED ❑ RETURNED TO STAFF ❑ WITHDRAWN ❑ OTHER - SEE MINUTES ❑ AMENDED ❑ 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 EXHIBIT 1 RESOLUTION NO. 2016-1 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT, ALLOCATING CTBID GRANT FUNDING FOR 2015-16 WHEREAS, on March 18, 2008, the Board the Carlsbad Tourism Business Improvement District (CTBID) established a grant program to fund programs and activities that promote overnight stays in Carlsbad; and WHEREAS, eight organizations submitted applications for 2015-16 CTBID grant funds in July 2015; and WHEREAS, the VisitCarlsbad Board reviewed the applications and made funding recommendations to the CTBID Board for seven of the organizations which were approved by the CTBID Board at prior meetings. WHEREAS, one organization submitted applications for 2015-16 CTBID grant fimds in November 2015; and WHEREAS, the VisitCarlsbad Board reviewed the application for the LPGA Kia Classic and is recommending funding for the event. 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 to the LPGA Kia Classic in accordance with the Grant Guidelines. 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 of the Board of Directors of the Carlsbad Tourism Business Improvement District on the day of 2016, by the following vote to wit: AYES: NOES: ABSENT: TIM STRIPE Chair ATTEST: Barbara Engleson Clerk of the Carlsbad Tourism Business Improvement District -2- N F_ ch x 0 0 0 O O O O O N m l0 ri 00 N 0 O 0 O 0 O O O I C C O C O C O L 00 N = Y r-I M O O ul O Ln O un rV N O N l D 1\ Ur1 ri N -1 ro N r i m W O O O O O O O O LF) O O CD p 0 0 0 t/) OU') N O O H O N Lr1 N N N ri N �--� CY) u: O O O O O O O O ra O ro ca O O ra ro N ri ri c-I = Lrl T O O O O O p O M O O O O O Ln M O O O O O O N O O O O Lr O O Ill r0 (0 c0 c0 ro N N N _ `i O O O O O r-1 O O O O CF Lr m O r0 (0 c0 co ro r0 01 N C C C C C C C O O O O rI O N O N O O 00 O 00 F Lr) m O ro ro ro co ro ro ro rn i/? O O O O O N N Q1 N to 1- � Lr1 r0 r0 r0 r0 c0 ro r0 c0 r0 rV N C C C C CG C C C t/} -L4 Ol d 00 N C CO r- It 00 1p 00 ul O Ol ro co ro ro ro ro m ro c0 CO N C C C C C C C C C t/} I i/)- 0A C > n A CO N �n U- a)Q L.L V U Q V O C ,� Q C v7 '� ++ OLr) C 2 -0 O N w jy m C O 'a O LL N U O t ra N + to r0 41 � Q mcn E r0 O cn can rn � N G7 aN-+ r0 i 0O � U L Y r0 i ++ r0 C. W Q U> Z J U M U U F— _ Carlsbad Tourism Business Improvement -District GRANT APPLICATION Submit to: Due Date June 30, 2015 Carlsbad Tourism Business Improvement District Attn: Cheryl Gerhardt 1635 Faraday Avenue Carlsbad, CA 92008 Or Fax to 760-602-8553 or email cheryl.gerhardt a,carlsbadea.gov Questions? Call Cheryl Gerhardt 760-602-2753 Please complete the following application. You may attach additional pages if necessary. Name of Applicant: LPGA Kia Classic Address: 3146 Tiger Run Ct. Ste. 118 Carlsbad, CA 92010 Phone: 386 } 236-1359 Contact Lindsay Allen name Federal Tax ID # or Social Security #: 27-1317091 Amount of Grant Request: $ 50,000 Email lindsay.allen@a Ipga.con 386-236-1359 phone Program Description/Scope (please use additional pages if necessary but no more than 3): Describe your program: Please see attachment 3 Financial Capabilities/Budget: Current fiinding sources and levels (identify source of matching fiends) also please detail out what the grant funds would be spent on: Please see attachment Reporting Requirements: A report on how the fiends 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 ❑ 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. X ure Title Date Grant Application Timetable This is the timetable for the initial grant review process. If there is money still available after the initial grant review, applications will be accepted and reviewed reviewed as necessary. 21, 2015 Grant guidelines available 30, 2015 Grant applications due to City office by 5 p.m. July 2015 Grant applications reviewed by VisitCarlsbad 2015 Grant recipients announced 5 Carlsbad Tourism Business Improvement District Grant Application — LPGA Kia Classic Name of Applicant: LPGA Kia Classic Address: 3146 Tiger Run Court, Suite 118, Carlsbad, CA 92010 Phone: (386) 236-1359 Email: Lindsay.allen@lpga.com Contact: Lindsay Allen, Sales & Marketing Manager, 386-236-1359 Program Description/Scope: Describe your program: The 2016 LPGA Kia Classic is entering into its 7th year and will be hosted at the Park Hyatt Aviara Resort March 21-27. The tournament features a $1.7 million purse with a field of 144 professionals and continually features at least 99 of the top 100 ranked players with superstars such as Michelle Wie, Lydia Ko, top ranked American Stacy Lewis and 2015 defending champion Cristie Kerr. The Kia Classic is broadcasted live on the Golf Channel all four days of tournament play and averages a viewership of 220,000 per day in the U.S. with our highest viewership day occurring in 2015 with 365,000. The top cities tuning into the tournament behind San Diego are Las Vegas, Orlando, Phoenix and Sacramento. The Kia Classic is also broadcasted in over 160 countries with Japan, Thailand, Korea and Latin America garnering the most interest. The attendance at the Kia Classic has increased every year and our estimated attendance for the 2016 Kia Classic is 50,000. Kia Motors America has also just signed a 3 year renewal of their title sponsorship of the Kia Classic to begin in 2016 meaning that the tournament will continue to be held at the Park Hyatt Aviara Resort for many years to come helping to bolster our presence and reputation in the Carlsbad area. We also believe that the demographics of our LPGA fans align with the target market for the City of Carlsbad Our fans: - 80% are over the age of 35 - 61/39 males vs. females - Household income over $100,000 —124 index rating 79% participated in an outdoor sport in the past 12 months. This is an index score of 132 (100 U.S. average) 62% intend to take a travel vacation in the next 12 months Average household income of $83,000. $83,000 is the threshold for the top 20% of HH income in the U.S., who buy 59% of all travel -related purchases. Golf Channel viewers rank #1 among cable networks for heavy annual travel expenditure ($15,000+), where they are 45% more likely than the average person to spend this amount. Based on those statistics, we recommend the below program with the Kia Classic to help increase awareness and tourism for the City of Carlsbad: Proposed Marketing Program: - Golf Channel Commercial Units o Two (2) :30 units per day to be run during the tournament broadcast, Thursday — Sunday - Golf Channel highlight o Special social media feature to be run on Golf Channel. Golf Channel will show social media shots from players of activities they are doing during the week. The LPGA will coordinate with players to make sure they visit certain landmarks in Carlsbad. - Video Footage o Golf Channel will show additional tourism video footage during the broadcast. Footage supplied by the city of Carlsbad - On -site presence o One (1) tee fence o One (1) electronic leaderboard ad o One (1) full -page ad in the Official Tournament Program - Website links o Section on www.kiaclassic.com with details on Carlsbad ■ Where to stay ■ Things to do ■ Can link back to the Visit Carlsbad website - Social Media — Kia Classic channels and players o Will work with marketing team at Visit Carlsbad and City of Carlsbad to develop various posts to feature the City of Carlsbad o Trophy tour —The Kia Classic will be doing atrophy tour in the spring and will visit various Carlsbad landmarks and will use #VisitCarlsbad. - Outside the Ropes Activity o We often like to do "Outside the Ropes" activities during the tournament to feature the player in a different environment from the golf course. One example would be to have a few players go standup paddleboarding in Carlsbad. This would be covered by the LPGA, Kia Classic and additional media outlets. - Carlsbad, California to be featured in all marketing and promotional materials as the host city for the Kia Classic. o Carlsbad boiler plate to be included in all press releases. Press releases sent out nationally. o Out of market advertising for the Kia Classic is done nationally via the Golf Channel as well as through print ads placed in the Orange County, Los Angeles and Palm Desert areas. - The Kia Classic will also track ticket sales and can measure desired metrics in conjunction with the City of Carlsbad. Hotel stays and awareness can be tracked via the Kia Classic ticket website. These statistics will be reported at the end of the tournament and will provide a base number to compare to for future years. We believe that the Kia Classic is an excellent vehicle to help promote the City of Carlsbad. Through onsite elements and our partnership with the Golf Channel, the City of Carlsbad has the opportunity to be showcased to a large audience across the U.S. as well as internationally. How will the program benefit Carlsbad tourism? The Kia Classic is a world class event and the city of Carlsbad can only benefit from our reputation. Through association with the event, Carlsbad will be featured as a beautiful host city and will be exposed to millions of people through the telecast during the tournament and also to those in attendance. The City of Carlsbad will be able to benefit from exposure from the Kia Classic in similar ways that the Park Hyatt Aviara Resort has benefitted. An example of this is the web traffic that the Park Hyatt Aviara Resort receives during and after the Kia Classic. Visits to their website increase on an average of 50% from their average visits during that time period and have increased every year. Projected # of out of town visitors: 61.34% of online ticket sales are made from outside San Diego County. Ticket purchasers at the gate have not been asked in the past where they are from, but this is something that can be done in upcoming years. Projected # of overnight stays: This is not something that has been asked in the past but is something that can be asked at checkout online. Experience in Program Area: The Kia Classic is now in its 7th year and has had the same experienced staff in place for most of those years. The tournament is also owned and operated by the LPGA giving it the full backing of LPGA headquarters located in Daytona Beach, Florida. The LPGA and Kia Classic also have a longstanding partnership with the Golf Channel allowing for the flexibility to create special features and programs. Financial Capabilities/Budget: The Kia Classic is owned and operated by the LPGA. The main funding comes from partnerships with Kia Motors America and presenting partner JTBC. Other funds are raised through local and national partnerships. The grant funds would be spent on increasing the awareness and attendance of the Kia Classic. To make the tournament successful year after year, the Kia Classic attendance needs to increase each year to not only grow programs but to also appease partners. To increase awareness and attendance, these funds will be spent on additional marketing efforts including a larger Golf Channel push and increased out of market print ads. These grant funds will also go towards making the Kia Classic one of the premier events on the LPGA Tour. Upgrades will be made to improve the spectator experience onsite to help ensure that repeat visits are made to the Kia Classic. 2016 Kia Classic March 2151— 27tn Park Hyatt Aviara Resort Carlsbad, California $50,000 Investment - Golf Channel Commercial Units o Two (2) :30 units per day to be run during the tournament broadcast, Thursday — Sunday - Golf Channel highlight o Special social media feature to be run on Golf Channel. Golf Channel will show social media shots from players of activities they are doing during the week. The LPGA will coordinate with players to make sure they visit certain landmarks in Carlsbad. - Video Footage o Golf Channel will show additional tourism video footage during the broadcast. Footage supplied by the city of Carlsbad - On -site presence o One (1) tee fence o One (1) electronic leaderboard ad - Website links o Section on www.kiaclassic.com with details on Carlsbad ■ Where to stay ■ Things to do ■ Can link back to the Visit Carlsbad website - Social Media — Kia Classic channels and players o Will work with marketing team at Visit Carlsbad and City of Carlsbad to develop various posts to feature the City of Carlsbad o Trophy tour —The Kia Classic will be doing a trophy tour in the spring and will visit various Carlsbad landmarks and will use #VisitCarlsbad. - Outside the Ropes Activity o We often like to do "Outside the Ropes" activities during the tournament to feature the player in a different environment from the golf course. One example would be to have a few players go standup paddleboarding in Carlsbad. This would be covered by the LPGA, Kia Classic and additional media outlets. - Carlsbad, California to be featured in all marketing and promotional materials as the host city for the Kia Classic. o Carlsbad boiler plate to be included in all press releases. Press releases sent out nationally. o Out of market advertising for the Kia Classic is done nationally via the Golf Channel as well as through print ads placed in the Orange County, Los Angeles and Palm Desert areas. - The Kia Classic will also track ticket sales and can measure desired metrics in conjunction with the City of Carlsbad. Hotel stays and awareness can be tracked via the Kia Classic ticket website. These statistics will be reported at the end of the tournament and will provide a base number to compare to for future years. $25,000 Investment - Golf Channel Commercial Units o One (1) :30 unit per day to be run during the tournament broadcast, Thursday —Sunday - Video Footage o Golf Channel will show additional tourism video footage during the broadcast. Footage supplied by the city of Carlsbad - On -site presence o One (1) tee fence o One (1) electronic leaderboard ad - Website links o Section on www.kiaclassic.com with details on Carlsbad ■ Where to stay ■ Things to do ■ Can link back to the Visit Carlsbad website - Outside the Ropes Activity o We often like to do "Outside the Ropes" activities during the tournament to feature the player in a different environment from the golf course. One example would be to have a few players go standup paddleboarding in Carlsbad. This would be covered by the LPGA, Kia Classic and additional media outlets. - Carlsbad, California to be featured in all marketing and promotional materials as the host city for the Kia Classic. o Carlsbad boiler plate to be included in all press releases. Press releases sent out nationally. o Out of market advertising for the Kia Classic is done nationally via the Golf Channel as well as through print ads placed in the Orange County, Los Angeles and Palm Desert areas. - The Kia Classic will also track ticket sales and can measure desired metrics in conjunction with the City of Carlsbad. Hotel stays and awareness can be tracked via the Kia Classic ticket website. These statistics will be reported at the end of the tournament and will provide a base number to compare to for future years.