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HomeMy WebLinkAbout2023-04-26; Carlsbad Tourism Business Improvement District; Resolution 2023-004DocuSign Envelope ID: A5777CBA-C04A-4E1 C-80B8-11 E88F5DB5D9 RESOLUTION NO. 2023-004 A RESOLUTION OF THE ADVISORY BOARD OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT APPROVING A GRANT APPLICATION FROM WALK MS: CARLSBAD AND ALLOCATING $5,000 OF CTBID GRANT FUNDING FOR FY 2022-23 TO WALK MS: CARLSBAD EXHIBIT 1 WHEREAS, on June 28, 2011, the City Council adopted Resolution 2011-150 confirming the Carlsbad Tourism Business Improvement District (CTBID) Advisory Board's powers and duties to contract on behalf of the CTBID for goods and services all for the benefit of the CTBID and its purpose and mission; WHEREAS, on March 18, 2008, the Advisory Board of the CTBID established a grant program to fund programs and activities that promote overnight stays in Carlsbad; and WHEREAS, the CTBID Advisory Board approved $1.5 million in funding for Fiscal Year 2022- 2023 for grant programs; and WHEREAS, on October 12, 2022, the Advisory Board updated its Grant Policy to further support tourism and tourism-related events in Carlsbad; and WHEREAS, organizers of the Walk MS: Carlsbad submitted a grant application (Attachment A), which was deemed to be complete and to meet the requirements of the Grant Policy; and WHEREAS, per the Grant Policy, the Visit Carlsbad Board reviewed the application and made a funding recommendation to the CTBID Advisory Board; and WHEREAS the CTBID Advisory Board at its April 26, 2023, meeting, reviewed, discussed and approved the grant application. NOW, THEREFORE, BE IT RESOLVED by the Advisory Board of the Carlsbad Tourism Business Improvement District, as follows: 1. That the above recitations are true and correct. 2. That the Advisory Board approves the grant application from the organizers of Walk MS: Carlsbad and allocates grant funding in the amount of $5,000 to Walk MS: Carlsbad in accordance with grant policy guidelines. DocuSign Envelope ID: A5777CBA-C04A-4E1 C-80B8-11 E88F5DB5D9 PASSED, APPROVED, AND ADOPTED at a special meeting of the Advisory Board of the Carlsbad Tourism Business Improvement District on the 26t rday of Apri l 2023, by the following vote to wit: AYES : Stripe, Rauch, Becerra, Chapin NAYS: None ABSENT: Canepa, Mason ABSTAIN: None TIM STRIPE, Chair SHERRY FREISINGER, City Clerk (SEAL) Attachment A CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT Grant Guidelines -FY 2022-2023 (city of Carlsbad About the CTBID 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 programs or events that are going to increase overnight stays in hotels • Encourage the development of innovative tourism products • Elevate Carlsbad's brand as a premier destination • Promote collaboration within and across sectors of the tourism industry • Reach important travel segments such as multicultural, family and senior markets • Support the efficient and convenient movement of visitors around the destination Types of Projects Supported All CTBID grants fall into two categories. Grant applicants must ensure their application meets the goals and criteria of at least one category. 1. Events a. Placemaking Events (Up to $10,000/event) b. Brand Elevating Events (Up to $50,000/event) c. Room Night Driving Events (Up to $100,000/event) 2. Destination Transportation Services (Up to $1 million/year) All events, not including destination transportation services, applying must be accessible for public attendance. Private corporate events will not be considered for event grants but may apply for the Visit Carlsbad Group Incentive Program. Grants may not make up more than 25% ofthe total event revenue, e.g., an event with a budget of $100,000 may not apply for more than $25,000 in grant funding. Grant applicants may be a service provider, event organizer, hotel property/TBID contributor, other event consultant, or a combination of applicants. Placemaking Events Grant Amount Available: Up to $10,000 • Events that add to tourism, culture, or atmosphere of Carlsbad and enhance its position as a destination • Room nights associated with the event are encouraged but not required • All advertising must feature Carlsbad destination brand logo • Must promote or enhance tourism April 26, 2023 Item 3 Page 6 of 16 Brand Positioning Events Grant Amount Available: Up to $50,000 • Event further positions Carlsbad as a destination in alignment with key experience pillars: wellness, beach, golf, arts/entertainment, outdoors, culinary, sustainability • Event preferably falls during an off-peak period and may be considered if it enhances occupancy or average daily rate • Grant funds can be spent on marketing and/or operational costs • Event must be promoted outside of the City of Carlsbad at least three (3) months prior to event • Organizers must provide media schedule including media markets, dates, times, impressions/circulation, and audience demographics • All advertising must feature Carlsbad destination brand logo • Event website must include "Travel" section featuring content about staying in Carlsbad and listing hotels or linking to Visit Carlsbad hotels webpage. Added weight will be given to events that include contracts/negotiated rates at Carlsbad hotels • Multi-year events may be eligible for 50% of the original grant for the second and third year the event takes place in Carlsbad if criteria is met in the previous year and pending fund availability Room Night Driving Events Grant Amount Available: Up to $100,000 • Event actualizes a minimum of 300 room nights in Carlsbad • Event is promoted outside of San Diego County at least three (3) months prior to event • Organizers must provide media schedule including media markets, dates, times, impressions/circulation, and audience demographics. All advertising must feature Carlsbad destination brand logo • Event website includes "Travel" section featuring content about staying in Carlsbad and listing hotels or linking to Visit Carlsbad hotels webpage. Added weight will be given to events that include contracts/negotiated rates at Carlsbad hotels • Grant funds can be spent on marketing and/or operational costs • Award eligibility based on projected room nights o 300 -750 room nights -$25,000 o 751-1,500 room nights -$50,000 o More than 1,500 room nights -$100,000 • Events may receive 50% of the total grant award up front. The remaining grant funds will be paid at the conclusion of the event based on actualized room nights* o 75% of target will receive 50% or remaining funds (75% of total award) o 90% of target will receive 80% of remaining funds (90% of total award) o 100% of target will receive 100% of remaining funds (100% of total award) * Events that fail to meet 75% of target may not receive any of the remaining award funding. • Multi-year events may be eligible for 50% of the original grant for the second and third year the event takes place in Carlsbad if criteria is met in the previous year and pending fund availability April 26, 2023 ltem3 Page 7 of 16 Destination Transportation Services Grant Amount Available: Up to $1 million per year • Service provider moves visitors from resorts and hotels to and from interest areas around Carlsbad like the beaches, Carlsbad Premium Outlets/The Flower Fields, The Forum, Shoppes at Carlsbad, Carlsbad Village, Legoland, etc. • Service provider has a defined route (or routes) and has capacity to serve multiple destinations • Service provider has knowledgeable drivers who can share destination information about Carlsbad • Service provider operates exclusively within the City of Carlsbad during peak seasons, days of the week, and hours for tourism visitors • Service provider must adhere to all applicable laws and regulations and requirements of transporting public passengers, including meeting the City of Carlsbad's insurance requirements • Service provider established a method of tracking and reporting to the CTBID Advisory Board Budget For fiscal year 2022-2023, the CTBID has approved $1.5 million in funding for CTBID grant programs. • $100,000 for Placemaking Events • $400,000 for Brand Positioning Events and Room Night Driving Events • $1 million for Destination Transportation Services Funding Awards In general, competitive applications will have clearly articulated projected room demand that results from the proposed event. The specific benefit must be projected in the incremental delivery of hotel room night sales to assessed hotels. Incremental is defined as paid room nights in excess of what would be consumed without the proposed event. Successful applications will clearly describe the strategy and tactics for delivering incremental room night sales, as well as the estimated resulting number of room night sales and resulting gross room revenue. Decision Criteria When considering applications, priority will be given to the following: (NOTE: not all criteria are applicable to each grant category) • Overall ROI for the destination and to hotel properties • Other revenue o Competitive applications will demonstrate strong revenue sources beyond a CTBID grant • Events that occur during the low-travel season (aka 'off-peak') time of year • The opportunity to foster NEW demand generating events and services from concept to actualization with the potential to establish a recurring marquis status for the destination • Projected incremental hotel room nights • Applicants who can quantify past successes • Past compliance and success history • Premier events that elicit prestige and enhance the reputation of Carlsbad as a premier destination April 26, 2023 Item 3 Page 8 of 16 • Events that align with Carlsbad's key experience pillars : wellness, beach, golf, arts/entertainment, outdoors, culinary, sustainability • Events that generate national/international media coverage (should be defined in media plan): o Media Coverage of the event: ■ Network TV ■ Cable Network ■ Radio Broadcast ■ Live Streaming o Media promoting the event: ■ Network TV ■ Cable Network ■ Radio Broadcast ■ Print ■ Digital Channels ■ Social Platforms Funding Limitations • CTBID Grants cannot be used for alcoholic beverages • The acquisition, construction, installation or maintenance of any tangible public property, including parking facilities, parks, planting areas, fountains, benches, booths, kiosks, display cases, pedestrian shelters, signs, trash receptacles, public restrooms, ramps, sidewalks, plazas, pedestrian malls, lighting and heating of public facilities cannot be funded • The closing, opening, widening or narrowing of existing or new streets cannot be funded • Facilities or equipment, or both, to enhance security and safety of persons and property within the destination, unless included in a specific proposal to benefit the assessed businesses cannot be funded • Regular public safety and security personnel and programs, maintenance and repair, sanitation, nor other municipal provided by the city cannot be funded • Political candidate or ballot initiative activity cannot be funded • Expenses not directly related to the approved program cannot be funded Application Review Process Staff Review Grant applications will be reviewed by CTBID staff and Visit Carlsbad staff (as a designated grant review contractor of the CTBID). Reviewers will consider: • The thoroughness of application and format • The proposed programs' compliance • ROI • The appropriateness of the proposed program goals and objectives • The quality of the responses to the review criteria • Feasibility of event, including ability to meet city requirements for licensing, permitting, and insurance coverage • The current and past contractual performance/standing with the City of Carlsbad, and/or other governmental agencies April 26, 2023 ltem3 Page 9 of 16 • Disclosure of other pending or granted public funding for the fiscal year in question • Evaluation of the applicant's assumptions, past performance, marketing plan, business plan and projections for hotel room sales (both in room nights and ADR) • Evaluatio n of the applicant's "capacity" to execute on the projected event • Past performance of the organization's events and data collected • Seasonality, day of week, etc. • STR data (past occupancy and average daily room rate) by date to evaluate factors such as need, the capacity for more room sales, etc. Subcommittee Review The CTBID Grants subcommittee comprised of CTBID staff, Visit Carlsbad, and two CTBID Board members will review the staff report to ensure that the application appropriately projects ROI for the destination. CTBID Advisory Board Review Grants that meet all application requirements will be considered by the full CTBID Advisory Board at a regular Advisory Board meeting. These meetings are open to the public and applicants may be asked to present their application to the Advisory Board. Schedule Grant applications will be reviewed quarterly, with the deadline to apply being one month prior to the Regular CTBID Advisory Board meeting, each quarter. Should a CTBID Advisory Board meeting be cancelled or moved, notice will be given to all active grant applicants and final consideration will be at the subsequent regular or special CTBID Advisory Board meeting. FY 2022-2023 Grant Application Deadlines (remaining) • Dec. 14, 2022 (considered at Jan. 11, 2023 meeting) • Mar. 15, 2023 (considered at Apr. 12, 2023 meeting) Distribution of Funds Funds will be distributed upon final approval of the grant application pursuant to a mutually negotiated funding schedule. The CTBID reserves the right to hold a portion of awarded funds until after the event takes place and all reporting has been submitted. Should a grant-funded event fail to take place, or miss its target by more than 50%, the grant recipient may be required to return a portion of, or all granted funds to the CTBID. Contact For any questions about the CTBID grant program, please reach out to bus iness@carlsbadca.gov. April 26, 2023 Item 3 Page10of 16 CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT Grant Application -FY 2022 -2023 {city of Carlsbad Use this form to apply for a CTBID grant to fund a program or event. NOTE: CTB/D grants to fund destination transportation services will hove a separate application and defined call for applications. To express interest or to ask a question, email business@carlsbadca.gov Applicant Information Name of Proposed Program/Event:_W_a_lk_M_S_: _C_ar_ls_b_a_d _______________ _ Name of Applicant/Organization: National Multiple Sclerosis Society Address: 10089 Willow Creek Rd, Ste 250, San Diego, CA 92131 Contact Name: Danielle Gerlach Email: danielle.gerlach@nmss.org Federal Tax ID# or Social Security#: 13-5661935 Amount of Grant Request: $5,000 This application is for a: Title: Sr. Specialist, Walk MS Phone: 925. 786.9377 Total Event Budget: $ _________ _ _@_Placemaking event _Q_Brand positioning event _Q_Room night-driving event Program/Event Description (Use up to five additional pages if necessary for the following answers): Proposed date or timeframe of event:April 29, 2023 Is the date firm? Yes ---------------- Describe your program or event: Include potential alignment with key experience pillars, whether the event is a new event and if there is potential to establish as a marquis recurring event for Carlsbad. The National Multiple Sclerosis Society hosts an annual one day walk event called Walk MS: Carlsbad. Walk MS is the largest gathering in the MS movement and raises funds to change the world for people affected by multiple sclerosis. Walk MS: Carlsbad brings together around 1,500 part1c1pants from local communities and beyond and provides an opportunity to learn about National MS Society services, connect to others livi11g witll MS, and fund researclr to slow and reverse progression a11d find a cure. Describe how the program/event will benefit tourism in Carlsbad: Every year, Walk MS: Carlsbad brings together around 1,200 participants, volunteers, and sponsors from local communities and beyond to Carlsbad celebrating the resiliency of the nearly 1 million people living with MS in the United States. As our event Is hosted in tlle 11101r1i11g, 111a11y participants enjoy shopping, visiting restaurants and local attractions for the remainder of their day directly benefiting the local economy of the City of Carlsbad. April 26, 2023 Item 3 Page 11 of 16 Projected number of out-of-town visitors:_1_00_0 _______ _ Projected number of hotel room nights utilized:_1_00 ______ _ Describe the estimated media coverage of the event: Walk MS: Carlsbad has partnered with NBC 7 as well as Telemundo 20 to provide coverage of the event and both have provided us with an emcee to host our ceremony. Steven Luke from NBC 7 will also be doing short ad on air to promote all three of our local walks. Nationally we also have a large social spend for advertisement on social media sites such as Facebook and lnstagram. Experience with Proposed Program/Event Has the program/event taken place before in Carlsbad? If so, how many times has it taken place? Yes, this event has been hosted in Carlsbad for over 20 years. Describe program/event history, compliance, success, etc.: Our event has been successfully running in Carlsbad for over 20 years and raises around $250,000 each year. We ensure compliance with all city and state regulations and work with permitting agencies and local law enforcement to provide a safe and successful event. We have seen growth in our event post-COVID in both attendees and fundra1s1ng and project continued growth In following years. Our part1c1pants are strongly tied to the mission of a world free of MS which drives continued Involvement. Financial Capabilities/Budget CTBID Grants cannot make up more than 25% of overall event revenue. Describe other funding sources and levels including committed funds and potential matching funds: Our sponsorship revenue in 2022 was $14,500 and we have set a goal this year of $22,500. The bulk of our funding is raised through participant fundraising via various fundraising efforts. Matching funds may be requested by participants through their company's matching gifts programs. Describe how CTBID grant funds would be used: (See list of funding limitations) If funded, we'd invest these funds in Walk MS: Carlsbad to highlight City of Carlsbad as a proud supporter of the event. This would showcase the city and Walk MS: Carlsbad as a premier destination while highlighting accessibility throughout the city, as many of our attendees use different mo61hty devices to complete the 1 mile or 3 mile walk. The grant would also support our Walk MS: Orange County event, with a chance to promote City of Carlsbad, farther driving tourism and business to Carlsbad. Applicant Background This applicant is a (an): 0.Non -Profit QFor-P rofit Q l ocal Public Agency Q lndividual Oother Years in Busi ness: ____ Number of Employees: ____ Number of Volunteers: ____ _ April 26, 2023 Item 3 Page 12 of 16 Are there other organizations, agencies, or businesses partnered on this application? If so, list them: N/A Marketing Materials Requirement CTBID grant recipients will be required to recognize on all printed material that grant program is funded in part by the CTBID. The applicant acknowledges and agrees to adhere to the marketing requirements described above. ___ I acknowledge marketing requirements Reporting Requirements Depending on the grant amount and type of program/event, a report on how granted funds were spent, event budget, number of room nights generated, proof of meeting marketing requirements, and/or a media coverage recap may be required to be filed with the CTBID within 30 days of the event conclusion. 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. CTBID staff will provide the applicant with any necessary reporting requirements prior to the distribution of funds. As noted in the CTBID grant guidelines, should a grant-funded event fail to take place, or miss its target by more than 50%, the grant recipient may be required to return a portion of or all granted funds to the CTBID. The applicant acknowledges and agrees to adhere to the reporting requirements described above. ___ I acknowledge reporting requirements Certification I, the undersigned, do hereby attest that the above information is true and correct to the best of my knowledge and that if awarded funds, all marketing and reporting requirements will be met. Authorized Signature: ______________ _ Clear Application Name: Danielle Gerlach Title:Sr. Specialist, Walk MS Print Application Date:3/10/23 Submit Application Submittal Information To submit your application, email a completed copy, including attachments to business@carlsbadca.gov with the subject: CTBID Grant Application. Allow two business days to acknowledge submittal. CTBID Staff will keep applica nts informed of progress during consideration. If you have questions about the application, please email business@carlsbadca.gov. April 26, 2023 Item 3 Page 13 of 16