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
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CONTINUED TO DATE SPECIFIC
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DENIED
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CONTINUED TO DATE UNKNOWN
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CONTINUED
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RETURNED TO STAFF
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WITHDRAWN
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OTHER - SEE MINUTES
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AMENDED
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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.
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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
2016, by the following vote to wit:
AYES:
NOES:
ABSENT:
TIM STRIPE
Chair
ATTEST:
Barbara Engleson
Clerk of the
Carlsbad Tourism Business Improvement District
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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.