TOURISM DEVELOPMENT FUND. August 06, 2018 IMPLEMENTATION STRATEGY

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1 TOURISM DEVELOPMENT FUND August 06, 2018 IMPLEMENTATION STRATEGY

2 Subtitle Goes Here TDF DISCUSSION TIMELINE Sept 16 August 17 January 18 May August GIO Retreat Adoption SB 942 Repeal Implementation Council GIO process produces list of tourism projects without funding source for completion Council adopted a policy document and established tax increases for Lodging and Meals taxes, adding an Admissions tax The General Assembly considers SB 942 establishing a regional marketing fund and the Tourism Council Council repealed the TDF tax increase to allow SB942 to take effect which included sales tax funds for the locality Council considers staff recommendations for TDF implementation based on SB942 funding streams

3 TOURISM DEVELOPMENT GRANT PROGRAM IMPLEMENTATION What We Have Done: (1)Establish Policy Document - Resolution #17-12 (2)Determine Review Committee Structure (3)Approve Funding Commitments TD Grant Program Review Committee

4 FLOW OF FUNDS REGIONAL AND LOCAL TOURISM SB942 REGIONAL LOCAL GENERAL FUND $2 Tax 1/2 1% Sales Tax 1/2 1/2 1/2 TOURISM FUND Tourism Development TD GRANTS TOURISM COUNCIL Maint of Effort Admin Costs Tourism Contingency AOFTA Culture Fix Downtown Vibrancy

5 FLOW OF FUNDS LOCAL TOURISM $1.9 Million $0.56 Million Maint of Effort TOURISM FUND $2.2 Million GENERAL FUND Tourism Development TD GRANTS $2.2 Million Admin Costs Tourism Contingency Downtown Vibrancy $105,027 $50,000 AOFTA Culture Fix $150,000 $2.1 Million $100,000

6 TOURISM DEVELOPMENT FUND POLICY Section 1: Fiscal Policy Section 1. Establishment of Special Revenue Fund and Fiscal Policy A. Special Revenue Fund 1. The TDF will be established as a special revenue fund in the City Budget. 2. The TDF will be subject to the fiscal controls of the City and shall abide by the adopted Budget Policies of the City regarding financial planning, revenues, expenditures, debt, investment, and fund balance. 3. The TDF annual budget shall include a 5-year financial plan with year one being the budget appropriation and the following four years for planning. 4. Unspent or unallocated funds shall remain in the fund and be a carryover to the next fiscal year. 5. Funds can be used to pay debt service obligations and borrowing expenses associated with TDF projects. 6. Funds are subject to the City audit and Comprehensive Annual Finance Report (CAFR) policies and processes.

7 TOURISM DEVELOPMENT FUND POLICY Section 2: Purpose Section 2. Tourism Development Fund Purpose and Eligible Expenditures A. Purpose The purpose of the Tourism Development Fund (TDF) is to increase patronage to restaurants, attractions, hotels, and events in the City of Williamsburg through financial assistance and reinvestment in tourism products, place-making projects, special events, public-private partnerships, and destination marketing.

8 TOURISM DEVELOPMENT FUND POLICY Section 2: Expenditures with housekeeping revision B. Types of Expenditures Allowed 1. Development, expansion, or renovation of tourism product and infrastructure for tourism products. 2. Place-making projects and events. 3. Provide funding for marketing of the destination to the Williamsburg Area Destination Marketing Committee. 4. Support projects and programs of the Economic Development Authority (EDA) for for-profit companies that meet the eligibility criteria and receive recommendations for funding. 5. Administrative costs of up to 10% shall be retained by the City.

9 TOURISM DEVELOPMENT FUND POLICY Section 2: Projects C. Examples of Eligible Products 1. Streetscape renovations and enhancements 2. Transit improvements (bike share, pedestrian access, enhanced bus shelters) 3. Convention and group meeting facilities 4. Outdoor and indoor recreation facilities and amenities 5. Public parks 6. Tourism venues 7. Business improvement grants (through EDA) 8. Public art and place-making 9. Special events grants and marketing 10.Visitor infrastructure 11.Culinary arts incubators 12.Regional trails and cultural sites 13.Other projects that meet the eligibility criteria, demonstrate feasibility, and receive recommendation.

10 TOURISM DEVELOPMENT FUND POLICY Section 3: Application and Process B. Process Requests for funding from the Tourism Development Fund shall follow the following process: 1. Submission of Phase 1 applications in August. 2. Submission of Phase 2 applications in October 3. TDF Review Committee application review, interviews, and site visits in November and December. 4. TDF Review Committee application recommendation to City Council provided to the City Manager in December. 5. Planning Commission review of projects in January. 6. City Manager proposed budget released prior to April with TDF recommendation. 7. City Council considers approval of budget in May. 8. Funding is appropriated and available to the TDF in July.

11 TOURISM DEVELOPMENT FUND POLICY Section 4: Review Committee A. Purpose of the Review Committee The TDF Review Committee will review and evaluate proposals from applicants for Tourism Development Fund projects for the purpose of providing a recommendation to the City Council and City Manager for the budgeting and appropriation of funds. Recommendations shall be based on consistency and impact of the project and the purpose of the TDF. B. Appointment The TDF Review Committee shall be appointed by the City Council and serve two (2) year terms. TDF Review Committee members are eligible for re-appointment to serve three (3) consecutive terms (six years). TDF Review Committee members must be residents of the City, own or represent a City business, or represent an event that occurs on the City. Committee Composition The TDF Review Committee shall consist of five (5) members. Three (3) members shall represent the tourism industry in Williamsburg and two (2) members shall be at large appointments from the community.

12 TD GRANT PROGRAM REVIEW COMMITTEE Appointed by City Council 5 Members 3 Tourism Reps 2 Community Reps 2 year terms, 3 term limit 6 years of service possible

13 TOURISM DEVELOPMENT GRANT PROGRAM IMPLEMENTATION Next Steps: (1)Establish Award Criteria (2)Create Application (3)Make Committee Appointments

14 TD GRANT PROGRAM AWARD CRITERIA Staff Recommendations: (1) Hold two public meetings to solicit input on what projects should look like and important elements A. Use Design Charrette format to illicit varied responses that can be developed into specific criteria 5,000 Seat Amphitheater (2) Have the criteria structured similar to an RFP matrix with ranges of scores possible for each criteria (3) Use survey tool to gather larger pool of input

15 TD GRANT PROGRAM APPLICATION Staff Recommendations: (1) Design Application based on criteria to receive required information for uniform scoring (2)Alter the application schedule and separate from the budget process 5,000 Seat Amphitheater

16 CURRENT APPLICATION CYCLE Staff Applicant Interview Project Plan EDA Application City Council Decision TDF Process August -July Phase 1 TDF Application Staff Review Draft Budget Phase 2 TDF Application PC Review City Manager Review TDF Committee Review

17 PROPOSED APPLICATION CYCLE The final step is an interview with staff to discuss what needs improvement if funding was denied or next steps if funding was awarded. 7 The TD Grant Program is a function of City Council. Applications for funding are made for consideration and approval of the City Council. 6 6 The City Council will hold a Public Hearing to receive input on the recommendations provided by the Review Committee, EDA and PC. 7 5 T D G R A N T MARCH Thru OCTOBER C Y C L E The first phase of the application allows the staff to determine if the application is eligible for funding. This limits the applicant s expense. 2 The Phase 2 application requires more detailed business plans, economic data, and drawings to be successful Steps 3-4 are the review stage for the application. The TD Grant Review Committee will score each application using a criteria matrix and make a recommendation for funding that is then considered by the Economic Development Authority (EDA) and the Planning Commission (PC).

18 NEXT STEPS TIMELINE Fall 2018 Winter 2018 Spring 2019 March 2019 October 2019 Input Adoption Promotion Application Award Conduct two public meetings to inform grant award criteria development. City Council considers and adopts grant award criteria, establishes application, and appoints members to the TD Grant Review Committee Staff promotion of TD Grant Program through presentations to community groups, invites to submit proposals and standard media tools. The first application cycle opens in March of The first awards are made in October of Adjustments to the program based on 1 st year experience.

19 TOURISM DEVELOPMENT FUND August 09, 2018 IMPLEMENTATION STRATEGY