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1 Community Development Department SUBJECT: Consideration of a Resolution authorizing renewal of the Village s membership in Chicago s North Shore Convention & Visitors Bureau for the period July 1, 2014-June 30, 2015 AGENDA ITEM: 9.b.ii MEETING DATE: July 15, 2014 VILLAGE BOARD REPORT TO: Village President and Board of Trustees FROM: Ellen Dean, Economic Development Manager, (847) THROUGH: Todd Hileman, Village Manager PURPOSE AND ACTION REQUESTED: Staff requests consideration of a Resolution authorizing renewal of the Village s membership in Chicago s North Shore Convention and Visitors Bureau (CNSCVB) for the period July 1, 2014-June 30, The renewal cost is $62,900. BACKGROUND: Description: The Chicago s North Shore Convention and Visitors Bureau, and is a State of Illinois-certified tourism bureau which is charged with promoting its member communities - Evanston, Glenview, Northbrook, Skokie, Winnetka, and Prospect Heights and receives State of Illinois matching grant funds in order to do so. The Bureau directs programming toward group tour planners and corporate meeting planners, as well as individual visitors, with a focus on putting heads in beds in North Shore hotels and encouraging spending at area restaurants, retailers, and attractions. The Village s membership in the Chicago s North Shore Convention & Visitors Bureau (CNSCVB) runs annually, July June, in accordance with the State of Illinois Fiscal Year (FY). The Village has been a member community of CNSCVB since Membership Dues Membership dues for all CNSCVB member municipalities are calculated at the point of entry into the Bureau, based upon the number of hotel rooms in a community. Glenview s membership dues were set at $62,900 in FY2008. Municipal dues were held flat in FY2009 and FY2010, after which they were decreased 10% for the FY2011 and FY2012 membership years in response to the contraction of hotel tax revenues due to economic conditions; for Glenview, this meant reduced annual dues of $56,610 for two 1
2 years. In FY2013, dues were increased to $59,755. In FY2014, dues were increased to $62,900 (the original 2008 level) and are being held flat at this level again for Other dues support is provided to CNSCVB as follows: City of Evanston $ 65,564 Village of Skokie $117,567 Village of Northbrook $ 48,826 Village of Winnetka $ 6,500 City of Prospect Heights $ 54,000 Northwestern University $ 25,000 Hotel member dues $ 57,065 Glenview Hotel and Business Membership Municipal membership in CNSCVB is a prerequisite in order for the hotels, restaurants, retailers, or attractions within those municipalities to become members and thereby receive additional services. A 5% Hotel and Motel Tax on Glenview operators has been in effect since 1985, and in 2008 the Village raised the tax by 1% (to 6%) to capture additional dollars in order to offset the CNSCVB membership dues and generate additional revenue. In 2008, this 1% increase generated over $160,000. While the overall Hotel/Motel tax collections have fallen significantly since the 2008 peak (2008 was over $1M and 2013 was $762,000), the 1% increase still generates approximately $127,000 per year, which more than covers the $62,900 annual membership dues. Over 50 Glenview businesses and facilities have chosen to become members with each paying their own dues. Membership dues for smaller businesses are in the $200-$300/year range, and dues for the hotels are calculated based upon the number of $25/room/year. Glenview Hotel Members Wyndham Glenview Suites Staybridge Suites Courtyard by Marriott Best Western Motel 6 The Glen Club 253 rooms 120 rooms (common ownership and membership with Wyndham) 149 rooms 130 rooms 111 rooms 21 rooms Financial Return to Private Members Much of the benefit provided by CNSCVB is, by its nature, difficult to measure. However, the quantifiable (known)/actual business booked over the past year in Glenview by CNSCVB included: Group dining: direct/actual payments by CNSCVB to Glenview restaurants = $128,200 Group hotel stays: 1,360 room nights booked from CNSCVB $85/night avg= $115,600* Website hotel bookings: 466 room nights booked via CNSCVB $139/night avg= $ 64,774* TOTAL $308,574 *does not include Food & Beverage which represents additional revenue to the hotels 2
3 Financial Return to Village of Glenview From a tax perspective, the direct return to the Village from the aforementioned transactions and the 1% tax increase is estimated as follows: Sales Tax/HRST $128, % = $ 2,244 Hotel Tax $180,374 6% = $ 10,822 SUBTOTAL $ 13,066 1% Hotel Tax Increase $127,000 TOTAL $140,066 In addition to the website bookings (466 room nights in Glenview hotels) made directly from the CNSCVB website, there were an additional 13,105 click-throughs from the CNSCVB s two websites a 25% increase over last year - to Glenview hotels websites, thereby providing the user with the opportunity to book directly with the individual hotels, which the hotels generally prefer. We can assume that some portion of these click-throughs resulted in additional bookings which would represent an enhancement to the numbers above. Marketing Support The Village s membership in CNSVB was initiated in 2008 in response to requests from Glenview hotels to establish a relationship with a Bureau so that they could receive marketing services. The last few years have been extremely challenging for the hotel industry and the consistency provided by the Bureau s staff and $1.3 million operating budget have been very beneficial during this time. Signs of improvement are evident: In the past year, we have seen the redevelopment and reopening of the Best Western Plus Glenview (formerly Fairfield Inn), the conversion of the Baymont/Travelodge to an independently-owned Park Place Hotel, and a complete interior renovation of the Courtyard by Marriott. Average occupancy in Glenview hotels increased 2.5% in FY2014 as compared to FY2013, and the average daily rate was up $2.25/night during that same period. Glenview hotels, retail businesses, restaurants, events, and Park District facilities are regularly featured in promotions and tours created and paid for by the CNSCVB. Events are promoted to 9,000 North Shore e-newsletter subscribers, as well as purchased lists of up to 30,000 addresses from multiple zip codes which best match the targeted demographics for North Shore visitors. This is the scope of exposure that is best achieved by working regionally with neighboring communities, combining municipal contributions with State of Illinois matching grants to fund an aggressive sales and marketing program. The Village s member benefits include a $3,000 direct co-op marketing grant, which we have chosen to allocate toward the new Downtown Glenview Merchants group (subcommittee of Chamber of Commerce) for its e-newsletter and Stop In & Win promotions. The CNSCVB has spearheaded regional promotion of the Encompass Championship, in cooperation with the Glenview Chamber of Commerce and Glenview Park District, and this year designed and printed a Summer 2014 flier (Attachment 4). Considerations in support of Glenview s continued membership in the CNSCVB o Broad membership support by Glenview hotels and businesses, which are not eligible to receive services unless the Village maintains its membership. A lapse in municipal membership would preclude these businesses from receiving services, as other area bureaus have disbanded and the 3
4 State of Illinois has designated CNSCVB as the only certified bureau for this region. CNSCVB policy precludes reinstatement of membership for a period of three years following cancellation. o o o Direct revenue to Glenview s hotels and restaurants ($308,574+) as a result of CNSCVB bookings represents a return of almost five times the Village s dues investment Consistent marketing for Glenview hotels during periods of transition; important resource for encouraging redevelopment and renovation, and attracting new, high-quality hoteliers to the community in the future Opportunity for community marketing support for retail areas and special events Board of Directors Appointments Currently representing the Village of Glenview on the CNSCVB Board of Directors are: Mike Abt, Abt Electronics Betsy Baer, Glenview Chamber of Commerce Cindy Compton, The Glen Town Center Ellen Dean, Village of Glenview Dave Judy, Kohl Children s Museum Tony Kressy, General Manager, Courtyard by Marriott 2014 BUDGET: Membership in the CNSCVB has been budgeted in the 2014 Corporate Fund Corporate Fund $62, BUDGET: PLEASE NOTE: During the Fall of 2014 and in conjunction with this annual budget cycle, staff will be gathering data for Village Board discussion regarding the continuation of this line item in the 2015 budget. As part of the typical budget review process, staff will present information on the CNSCVB program so the Board can gauge its effectiveness. During this process, staff will be contacting the various area hotels and local tourist attractions and facilities for feedback. To aid in evaluating the program, more information about alternate funding mechanisms, the common practices of other communities in such matters, and additional information from the CNSCVB will be provided. RECOMMENDATION: Based on the membership expiring, staff recommends the Board adopt the attached resolution authorizing continued membership in the CNSCVB for the period of July 1, 2014 June 30, ATTACHMENTS: 1. Resolution 2. Glenview Membership List 3. Chicago s North Shore Convention & Visitors Bureau operating budget and narrative 4. Summer 2014 Glenview brochure distributed at Encompass Championship 5. Overview - CNSCVB: Who We Are / What We Do 4
5 RESOLUTION NO. Attachment 1 WHEREAS, the Village of Glenview (the Village ) is a home rule municipality located in Cook County, Illinois; WHEREAS, the corporate authorities have previously approved and executed a Membership Agreement by and between the Village and Chicago s North Shore Convention & Visitors Bureau ( CNSCVB ); and WHEREAS, the corporate authorities have determined that it is in the public interest to renew the Village s membership with CNSCVB as a full municipal member for the term July 1, 2014 June 30, NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Trustees of the Village of Glenview, as follows: That the President and Village Clerk are authorized to execute such documents as may be required for municipal membership in CNSCVB in the amount of $62,900 for the term July 1, 2014 June 30, PASSED this day of, 2014 AYES: NAYS: ABSENT: APPROVED by me this day of, 2014 ATTEST: Todd Hileman, Village Clerk Village of Glenview, Cook County, Illinois James R. Patterson, Jr., President Village of Glenview, Cook County, Illinois 5
6 Attachment 2 CNSCVB Glenview Members (as of 5/31/14) Abt Electronics Antiques & Porcelain by G.K. Best Western Plus Glenview BurgerFi Carillon Square Corner Bakery Curragh Irish Pub Designer Consigner Egg Harbor Cafe Glenview House Glenview National 9 Golf Club Grandpa's Place Hackney's On Harms Hlavacek Florist of Glenview Jameson s Char House Jolane's Café & Wine Bar Lakeview Banquet Rooms at Park Center Motel 6 Chicago North-Glenview Oh Olive! Panera Bread Pioneer Press PostNet Ted s Montana Grill The Glen Club The Glenview Grind Tipsy Paint Valley Lo Wagner Farm Wyndham Glenview Suites Amm's Limousine Service Berkshire Hathaway Bravo! Cucina Italiana-Glenview Carriage Hill Kennels College Nannies Costco D'agostinino's Pizza Dickey s Glenview Coin and Collectibles Glenview Lantern Glenview Park District Gusto Ristorante Italiano Hackney's on Lake Irish Connoisseur Johnny's Kitchen and Tap Kohl Children's Museum Morning Glory North Branch Pizza and Burger Oil Lamp Theater Periyali Greek Taverna Pizano's Pizza and Pasta RA Sushi Terra Sounds The Glen Town Center The Grove Turmeric Indian Restaurant Valley Lodge Restaurant Wildfire 6
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