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Home My WebLink AboutA001 - Proposal for Increase of Ames Hotel/Motel Tax Ames Convention 8 Visitors Bureau __ ____ ____ ______ II l Illil` N� AMES COMMUNITY . . . . . UNIVERSITY . . . . . OPPORTUNITY ---- visitames.com Proposal for , of r December 17, 2004 The Honorable Ted Tedesco Mayor of Ames PO Box 811 515 Clark Avenue Ames, IA 50010 Dear Mayor Tedesco, On behalf of the officers and board of directors of the Ames Convention and Visitors Bureau, I respectfully request that the City Council consider approving a special election to be held in April, 2005 for the purpose of increasing the hotel and motel tax in Ames from 5% to 7%. The additional monies from this increase in the tax rate would be used by the ACVB to achieve two important goals: Goal 1:To promote economic development through increased i to vs that visitors, d uld result in bringing more events to Ames, improving services an resources available attracting groups that are the best match for a community known for its educational resources. Goal 2:To provide additional resources through an ACVB-administered granthose aptog ies and for cultural, educational, arts,environmental, sports and other local organizations programs enhance visitors' experiences and improve the quality of life for residents. I would welcome the opportunity to present more information �s Bering this request I loo hotel k and motel tax rate can benefit the Ames community. My thanks for o forward to hearing from you. Sincerely, Dan Withrow Chair, Education Committee Ames Convention and Visitors Bureau Board of Directors , History of the Ames Convention & Visitors Bureau: May 1985 Formation of the ACVB through private funding sources. October 1987 Agreement with the City of for surround surrounding area through the promotion of ase economic activity in Ames and the convention and visitor activities. Involved in activities which: Encourage organizations to hold conventions and meetings in Ames or the surrounding area Promote community growth through the employment opportunities, increased income for all businesses in the community and a broadened tax-base Provide visiting organizations with facilities, services and administrative support to operate a convention Obtain financial support from the general public November 1987 Ames municipal election passes hotel motel tax. "Shall the City of Ames, Iowa be authorized to impose a hotel and motel tax at the rate of 5% as provided by sections 422A.1 and 422A.2 Code of Iowa 1987 in accordance with the terms and provisions of sections 24.3 through 24.7 of the municipal Code of the City of Ames, the proceeds of said tax to be used as follows: a) 3% to fund the Ames Convention and Visitors Bureau; b) 1% to replace revenue to the city from the local option tax c) 1% for City of Ames economic development project." January 2000 Agreement with Iowa State University Extension for joint proposals of services to meetings,conventions, and events through University Conference Services. Hotel/Motel Tax Revenue: 1999 2000 2001 2002 2003 2004 City of Ames $268,224 $267,722 $442,338 $475,698 $456,075 112 $488,8 55 ACVB $402,336 $401,583 $ 83 Total $670,560 $669,305 $737,230 $792,830 $760,187 $814,638 SI 1�.... Gam'.... 2L,.� L:.�2 L....2 Calendar Year ■ R;: cftm�s ■<CJ6 Revenue per Available Hotel Room: 1999 2000 2001 2002 2003 2004 $34.37 $28.30 $31.17 $34.95 $34.92 $37.99 y?, .. I:�.. L...... Lw1 L.,..L C.. 2w— Calendar Year What Does the Ames Convention and Visitors Bureau Do: The ACVB works both to attract and then provide services to meetings,conventions and events that occur in and around the Ames area and have the ability to generate overnight guests. 2001 2004 #of Groups 40 84 Annual 17 43% 25 30% Repeat 4 10% 26 31% Unique 19 48% 33 39% #of Overnight Rooms 22,006 47,337 48% 15, Annual 17,040 77% 828 32% Repeat 2,446 11% ,137 19% Unique 2,520 11% Rooms 1 Group 550 564 The following list is a sampling of the groups the ACVB is involved with on an annual or special needs basis. All State Music American Collegiate Hockey Association All State Speech Iowa State Education Association Midwest Energy Odyssey of the Mind National Order of the Arrow Biennial Conference on Chemical Educators FFA Leadership Conference Farm&Field Fest Govemor's Cup Taekwando United Methodist Motorioway Community Health Providers Iowa Square and Round Dancers WHO-Tractor Ride American Softball Association All American Weekend Economic Impact: The Iowa Department of Economic Development whenlanlates the impact individual travels. overnight In 2003, guests using lodging as 30%of the overall expenses in overnight rooms had an economic impact of$51,000,000. Food&Meals, Lodging, $12,892,972,250 $15,471,567,30% Entertainment, $6,188,627,120/o Retail&Shopping, Transportaion, i $7,735,783, 15% $9,282,940, 18% Current ACVB Budget: The 2004 budget for the ACVB was$466,958 of which$440,523(94%)was from hotel/motel tax collections. Coop Marketing 6% Event Services Local Grants 3% 0% Event/Bid Fees Reserve Fund 10% Member Prograns____ Personnel 2% 46% Admnistraive 11% Marketing&Sales 16% Usage of the Additional Hotel/Motel Tax: The increase(estimated at$300,000 annually)will be used to: Expand the ACVB sales and marketing efforts Additional sales personnel and direct sales expense Addition of Destination Tradeshow Marketing Event and Bid fees for city-wide events Increase the number and quality of services available to groups and individuals Website enhancements On-line booking system Transportation Services General Informational Material Project Development Grant Refer to attached informational sheet Reserve Fund To cover general operations from year to year Local Gant; 6% Coop Marketing 4% —� Reserve Fund 3% Event Services Personnel 4% —� 36°/n Event/Bid Fees 14% Member Prograr s 2% Adrrinistraive J/ Marketing&Sales 12% 19% Timeline: Our hope would be to move the process forward with the following timeline. April 2005 Ames municipal vote July 2005 Hotels begin collection of additional tax January 2006 ACVB receives additional operating revenues January 2007 Funding available for Project Development Grant The timeline has been developed to assist the ACVB in being proactive in the changing hospitality environment effected by: Increased Competition: New facilities being developed around the State of Iowa have entered into the conference and event market Sioux City—Tyson Event Center Council Bluffs—Mid America Center Dubuque—America's River Project Spencer—Clay County Events Center Iowa City/Coralville—Coralville Convention Center Des Moines— Iowa Events Center Cedar Falls/UNI—McLeod Center Opportunity to partner with many local initiatives in Ames Ames has many individual initiatives as the Downtown Cultural District, Reiman Gardens, Art on Campus, Hunziker Sports Complex, and Ada Hayden Park that make great destinations for individual visitors to the community. Build on recent successes From hosting International Professional Associations, large youth groups, NCAA tournaments, and many State-wide events,Ames and Iowa State University have proven to be a great host for such educational events. It also adds to the economy of Iowa and providing a format for National recognition of the Community and University. Recent successes of hosting the Biennial Conference on Chemical Educators, a multiple-year contract for Odyssey of the Mind and as the host for the first ever Special Olympics National Games,Ames is positioned to continue to be seen as a unique destination for major events. Better connect the Ames Visitor to the Ames Community and Iowa State University The support of visitors is a key component to maintaining the quality of life in Ames. Many of the events that occur in Ames provide great opportunities for visitors and also the residents of Ames. Participants are able to experience a unique quality of life in Ames,while providing unique opportunities for Ames residents to also participate in their event that others travel great distances to attend. Ames Convention & Visitors Bureau Project Development Grant Purpose: The purpose of this grant program is to provide funding to develop or enhance projects, special events and activities that have the potential to attract visitors to the Ames area. The Ames Convention &Visitors Bureau would set aside 5% of its total budget for such grants to assist cultural, educational, arts, environmental, athletic, and other local organizations to develop projects, special events and activities. Application Process: Applications would be available through the ACVB and received by July 1, 2006. A review committee would make recommendations to the ACVB Board of Directors. The final awards would be made by the ACVB Board of Directors during the fourth quarter of each year based on the number of applicants, with funds available beginning January 1, 2007. Awards would generally not exceed $5,000 and require matching funds from revenue, sponsors,or organizational funds. Projects that will be considered for funding could include, but are not limited to the following examples: Fundable items: Attraction/Event advertising, marketing or promotion Printing and design expenses Web site design and development Travel shows—includes booth space and registration fees Seed funds for start-up ventures, registration, bid,or rights fees Enhancements or new activities designed to grow current events or activities Travel expenses related to development or marketing opportunities Hospitality services provided to events Purchase and rental of equipment needed for event operations Non-fundable items: Annual operating expenditures Professional, legal, medical, engineering, accounting, auditing services Salaries, wages or administrative fees Debt retirement or associated fees Anything contrary to federal or state law or local ordinance Hotel and Motel Tax Rates State of Iowa October 1, 2004 Adair 5% Dubuque 7% Mount Vernon 7% Algona 5% Dyersville 7% Muscatine 7% Altoona 7% Eldridge 7% Nevada 6% Amana Colonies 5% Elk Horn 3% Newton 5% Ames 5% Evansdale 7% Okoboji 5% Anamosa 5% Fairfield 7% Oran e City 5% Ankeny 7% Forest City 7% Osceola 7% • Appanoose Count 70% Fort Dodge 7% Oskaloosa 5% Arnolds Park 5% Fort Madison 7% Ottumwa 7% Avoca 7% • Franklin County 5% Pella 7% Bellevue 5% Grimes 7% Pleasant Hill 7% Bettendorf 7% Grinnell 3% • Polk County 7% Bondurant 7% Guttenberg 6% • Shelby County 7% Boone 7% • Hamilton County 5% Sergeant Bluff 7% Burlington 7% Hampton 5% Sheldon 5% Carlisle 7% Harlan 7% Sioux Center 1% Carter Lake 6% Indianola 7% Sioux City 7% Cedar Falls 7% Iowa City 7% Spencer 5% Cedar Rapids 7% • Iowa County 5% Spirit Lake 5% Centerville 7% Iowa Falls 7% Storm Lake 7% Charles City 7% Jefferson 7% Story City 5% Clear Lake 5% Johnston 7% Stuart 5% Cherokee 7% • Jones County 5% Toledo 5% • Clayton County 5% Keokuk 7% Urbandale 7% Clinton 7% Knoxville 7% Vedic City 5% Clive 7% Le Mars 5% Wahpeton 5% Creston 7% LeClaire 7% Walcott 7% Colfax 7% Lee County 7% Waterloo 7% Coralville 7% Maquoketa 5% Waverly 7% Council Bluffs 7% Marion 7% West Bend 5% Davenport 7% Marshalltown 5% West Des Moines 7% Decorah 7% Mason City 5% West Union 6% Denison 7% McGregor 7% Winterset 7% Des Moines 7% Missouri Valley 7% Williamsburg 5% Dewitt 5% Monticello 5% Windsor Heights 7% • Dickinson County 5% Mt. Pleasant 7% Indicates a new jurisdiction • Indicates the unincorporated area of the county. Hotel and Motel Tax Rate Implementation Dates State of Iowa Current Rate Rate Increase Original Rate Jurisdiction Date Rate Date Rate Date Rate Sunset Date Adair 07/01/98 5% 07/01/98 5% Algona 01/01/03 5% 01/01/03 5% Altoona 01/01/91 7% 04/01/80 5% Amana Colonies 04/01/87 5% 04/01/87 5% Ames 04/01/88 5% 04/01/88 5% Anam osa 01/01/01 5% 01/01/01 5% Ankeny 04/01/90 7% 04/01/79 5% Appanoose County 10/01/04 7% 10/01/04 7% Arnolds Park 04/01/00 5% 01/01/95 3% Avoca 04/01/02 7% 04/01/02 7% Bellevue 04/01/89 5% 04/01/89 5% Bettendorf 01/01/92 7% 07/01/85 5% 07/01/84 4% Bondurant 04/01/89 7% 04/01/89 7% Boone 01/01/95 7% 01/01/95 7% Burlington 01/01/94 7% 04/01/83 5% Carlisle 04/01/04 7% 01/01/04 7% Carter Lake 10/01/97 6% 10/01/97 6% Cedar Falls 01/01/93 7% 04/01/88 5% Cedar Rapids 04/01/85 7% 04/01/79 5% Centerville 10/01/04 7% 10/01/04 7% Charles City 07/01/01 7% 07/01/01 7% Cherokee 10/01/02 7% 10/01/02 7% Clayton County 01/01/03 5% 01/01/03 5% Clear Lake 01/01/92 5% 01/01/92 5% Clinton 01/01/02 7% 01/01/02 7% 04/01/85 5% Clive 04/01/85 7% 04/01/79 5% Colfax 10/01/03 7% 10/01/03 7% Coralville 01/01/93 7% 07/01/83 5% Council Bluffs 01/01/00 7% 10/01/92 6% 04/01/79 5% Creston 01/01/03 7% 01/01/03 7% Davenport 01/01/92 7% 04/01/83 5% 04/01/81 3% Decorah 01/01/99 7% 01/01/94 5% Denison 07/01/01 7% 07/01/01 7% Des Moines 04/01/85 7% 04/01/79 5% Dewitt 04/01/90 5% 04/01/90 5% Dickinson County 01/01/95 5% 01/01/95 5% Dubuque 04/01/92 7% 04/01/79 5% Dyersville 04/01/02 7% 04/01/02 7% 01/01/93 6% Eldridge 04/01/02 7% 04/01/02 7% Elk Horn 07/01/86 3% 07/01/86 3% Evansdale 07/01/97 7% 07/01/97 7% Fairfield 01/01/02 7% 01/01/02 7% Forest City 04/01/01 7% 04/01/01 7% Fort Dodge 10/01/02 7% 04/01/96 5% Fort Madison 04/01/04 7% 04/01/04 7% 04/01/85 5% Franklin County 04/01/03 5% 04/01/03 5% Grimes 04/01/04 7% 04/01/04 7% Grinnell 04/01/96 3% 04/01/96 3% 03/31/06 Guttenberg 01/01/92 6% 01/01/92 6% Hamilton County 01/01/03 5% 01/01/03 5% Hampton 04/01/03 5% 04/01/03 5% Harlan 10/01/02 7% 10/01/02 7% Indianola 04/01/03 7% 04/01/03 7% 04/01/79 5% Iowa City 01/01/93 7% 04/01/83 5% Iowa County 04/01/87 5% 04/01/87 5% Iowa Falls 01/01/04 7% 01/01/04 7% Jefferson 10/01/01 7% 10/01/01 7% Johnston 07/01/85 7% 04/01/79 5% Jones County 01/01/03 5% 01/01/03 5% Keokuk 04/01/04 7% 04/01/04 7% 04/01/85 5% Knoxville 10/01/04 7% 10/01/04 7% LeClaire 01/01/00 7% 01/01/99 6% 01/01/98 5% Lee County 04/01/04 7% 04/01/04 7% 10/01/91 5% LeMars 01/01/02 5% 01/01/02 5% 12/31/16 Maquoketa 01/01/00 5% 01/01/00 5% Marion 07/01/90 7% 04/01/85 5% Marshalltown 01/01/91 5% 01/01/91 5% Mason City 04/01/85 5% 04/01/85 5% McGregor 01/01/03 7% 01/01/03 7% 04/01/94 3% Missouri Valley 01/01/97 7% 01/01/97 7% Monticello 01/01/01 5% 01/01/01 5% Mount Vernon 04/01/04 7% 04/01/04 7% Mt. Pleasant 01/01/02 7% 01/01/02 7% 01/01/91 5% Muscatine 04/01/92 7% 04/01/81 4% Nevada 04/01/02 6% 04/01/02 6% Newton 04/01/87 5% 04/01/87 5% Okoboji 01/01/95 5% 01/01/95 5% Orange City 10/01/04 5% 10/01/04 5% Osceola 10/01/98 7% 10/01/98 7% Oskaloosa 01/01/99 5% 01/01/99 5% Ottumwa 04/01/00 7% 04/01/00 7% 04/01/83 5% Pella 07/01/96 7% 07/01/96 7% Pleasant Hill 01/01/03 7% 01/01/03 7% Polk County 04/01/85 7% 04/01/79 5% Sergeant Bluff 01/01/91 7% 04/01/79 3% Shelby County 10/01/02 7% 10/01/02 7% Sheldon 04/01/02 5% 04/01/02 5% Sioux Center 10/01/95 1% 10/01/95 1% Sioux City 01/01/87 7% 04/01/79 3% Spencer 01/01/02 5% 01/01/02 5% Spirit Lake 04/01/95 5% 04/01/95 5% Storm Lake 01/01/03 7% 01/01/03 7% Story City 07/01/93 5% 07/01/93 5% Stuart 04/01/02 5% 04/01/02 5% 03/31/08 Toledo 01/01/97 5% 01/01/97 5% Urbandale 04/01/85 7% 04/01/79 5% Vedic City 10/01/02 5% 10/01/02 5% Wahpeton 01/01/95 5% 01/01/95 5% Walcott 01/01/00 7% 01/01/00 7% Waterloo 01/01/93 7% 04/01/81 5% Waverly 01/01/04 7% 01/01/04 7% West Bend 07/01/02 5% 07/01/02 5% West Des Moines 04/01/85 7% 04/01/79 5% West Union 07/01/99 6% 07/01/99 6% 06/30/09 Williamsburg 01/01/89 5% 01/01/89 5% Windsor Heights 04/01/85 7% 04/01/79 5% Winterset 07/01/01 7% 07/01/01 7%