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Leon County
Board of County Commissioners Agenda Item#17 July 12, 2022 |
| To: | Honorable Chairman and Members of the Board |
| From: | Vincent S. Long, County Administrator |
| Title: | Proposed Revisions to Policy No. 21-6, "County Tourism Event Grant Programs" |
| Review and Approval: | Vincent S. Long, County Administrator |
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Department/Division Review and Approval: |
Alan Rosenzweig, Deputy County Administrator Ken Morris, Assistant County Administrator |
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Lead Staff/ Project Team: |
Kerri L. Post, Director, Division of Tourism Dionte F. Gavin, Senior Operations Manager, Division of Tourism |
Statement of Issue:
As directed by the Board at its March 8, 2022, this item provides an analysis and proposed revisions for the administration of the “County Tourism Event Grant Programs,” Policy No. 21-6, related to the grants process and out-of-cycle funding requests through the Division of Tourism.
Fiscal Impact:
This item has no fiscal impact.
Staff Recommendation:
Option #1: Adopt the proposed revisions to Policy No. 21-6, “County Tourism Event Grant Programs” (Attachment #1).
Report and Discussion
Background:
As directed by the Board at its March 8, 2022, this item provides an analysis and proposed revisions for the administration of the “County Tourism Event Grant Programs,” Policy No. 21-6, related to the grants process and out-of-cycle funding requests through the Division of Tourism.
On March 8, 2022 the Board directed staff to provide an agenda item regarding the current policy and process for the out-of-cycle grant funding requests through the Division of Tourism. The Board’s direction followed its approval of $50,000 in Tourist Development Taxes (TDT) for an out-of-cycle funding request by Tallahassee Community College to host the inaugural “Rock the Roost” concert on its campus this summer. A comprehensive review of Policy No. 21-6, “County Tourism Event Grant Programs,” (Tourism Grants Policy) was conducted by the Division of Tourism to analyze prior out-of-cycle funding requests, the competitive grant application and evaluation process, the need and potential impact of a midyear grant cycle, the anticipated FY 23 funding levels and programmatic needs, and revisions to the definition of “peak visitor period.”
The County’s Tourism Grants Policy provides the purpose, intent, eligibility, and procedures for the grant programs administered by the Division of Tourism to attract visitors to the destination. The policy represents the Board’s prior guidance and actions related to the Tourism Grant Programs. The proposed revisions to the County Tourism Event Grant Programs Policy advances the following FY2022-FY2026 Targets and Bold Goal:
These particular Targets and Bold Goal align with the Board’s Economy Strategic Priority:
Each year, the County reinvests TDT generated from transient lodging sales, to promote Tallahassee/Leon County as a visitor destination. The Division of Tourism budget, as adopted by the Board each year, is comprised entirely of TDT revenues and includes funding for grant programs to support events designed to draw visitors to Leon County. The Division of Tourism administers competitive grant programs each year for event funding through five grant categories: Legacy, Signature and Emerging Signature, Special, and Sports events. The County’s Tourism event grants support many local organizations with a demonstrated history or significant potential to draw visitors to the community for an event. Separate from these grant programs, 20% of TDT revenues are also dedicated to the Council on Culture and Arts (COCA) to administer grants programs to support local cultural arts programs and activities.
In recent years, the Board has made intentional modifications to the Tourism Grants Policy to enhance the community’s economic return on investment. This includes the allocation of additional funding annually to the Tourism Event Grant Programs and the creation of new grant categories (Legacy Event Grants and Emerging Signature Events). These new grant categories were added to serve the full spectrum of events in our community from the early start-ups to the established events seeking growth (Southern Shakespeare Festival), and the long-established, high-impact events synonymous with the destination (Springtime Tallahassee).
The County’s Tourism Grants Policy requires events to comply with Section 125.0104, Florida Statutes for the utilization of TDT funds, outlines the role of the TDC in evaluating and approving of grant awards, and provides for County grant funds to be paid on a reimbursement basis. Event grant applications are evaluated based on the potential to draw overnight visitors, interest to the general public, the ability to demonstrate out of area marketing activities, scheduled programming/activities with visitor appeal, and the timing for the event to be held. Based on the recommended funding allocation, the policy authorizes the TDC to approve the Tourism Event Grant awards.
The Tourism Grants Policy is designed to maximize resources to draw visitors when there is ample availability of hotel rooms in the market to lodge visitors. The policy analysis and proposed revisions seek to further align the policy with best grant management practices.
Analysis:
The County’s Tourism Grants Policy leverages private funding for community, civic, and sporting events to the benefit of the community by attracting visitors from state, regional, national, and international markets. The brand exposure associated with some of the larger events and festivals that take place each year promotes and positions Leon County as a vibrant and diverse destination. The County’s continued investment in the growth, stature, and participation in events that continue to draw visitors to the destination, provides an economic return on investment as demonstrated through hotel occupancy rates and visitor spending in the community. As a result, the overnight stays and visitor spending enhances TDT collections and provides additional revenues that support the County’s Tourism Event Grant Programs and the overall growth of the market as a destination.
In addition to the comprehensive review of the Tourism Grants Policy by staff, input and recommendations were sought from the Tourist Development Council (TDC) on potential revisions to the policy for the Board’s consideration. The remainder of this item addresses the competitive grant application and grant process, out-of-cycle funding requests and midyear grant cycles, sports events grants, and a revision to the definition of “peak visitor periods.”
Competitive Grant Application and Grant Process
Table #1 outlines the qualifications and guidelines for the Tourism Event Grants including the funding levels for each grant program category. Nearly 90 applications are submitted, evaluated, and awarded through these competitive grant programs each year. Legacy Event grants support the most established and highest tourism-producing events through three-year funding agreements approved by the Board and do not compete in the annual grant application cycle. Signature and Emerging Signature Events, Special Events, and Sports Events are administered annually. Special and Sports Events have no minimum room night requirement; however, the grant review committee takes into consideration projected number of room nights during the scoring process.
Table #1: Grant Program Qualifications and Guidelines for Recommended Funding Levels
|
Grant Program |
Minimum Room Nights to Qualify |
Room Night Range |
Guidelines for Recommended Funding Level |
FY22 Budgeted |
FY23 Preliminary |
|
Legacy |
2,000 |
2,000-8,000 |
Up to $100,000 |
$280,000 |
$340,000 |
|
Signature |
1,500 |
1,500-5,000 |
$15,000-$59,999 |
$130,000 |
$140,000 |
|
Emerging Signature |
1,250 |
1,250-1,499 |
$10,000-$14,999 |
Included in Signature Budget |
Included in Signature Budget |
|
Special |
No minimum |
1-1,499 |
$0-$14,999 |
$60,000 |
$110,000 |
|
Sports |
No minimum |
1-1,499 |
$0-$14,999 |
$90,000 |
$110,000 |
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Total |
|
$560,000 |
$700,000 |
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The application cycle for the Tourism Event Grants launches in the summer months (June or July) each year for a 4-6 week period. The timing allows for the applications to be evaluated, recommended for funding, and considered for approval by the TDC prior to the start of the new fiscal year on October 1st. In addition to directly notifying all grantees that received funding over the previous five-year period about the opening of the annual grant cycle, the Division of Tourism issues press releases, posts on its social media platforms, shares the information through industry partner announcements and community organizations’ calendars, and utilizes CMR’s marketing channels (i.e., County LINK, website, Facebook, etc.) to encourage eligible applicants to apply. Prior to and during the open grant cycle application period, a minimum of four workshops are held over a five-week period to promote and educate applicants about the timing, funding, and the process for the various grant programs.
Out-of-Cycle and Midyear Grant Cycles
The Tourism Grants Policy authorizes the TDC to consider and award event grants outside the established grant application cycle provided Tourism Event Grant funds are available. Commonplace for grant programs in any industry or specialty, the funding requests typically exceed the availability of funds each year. This creates a competitive environment among applicants and requires the TDC to make funding decisions which best leverage the available resources to draw visitors to the destination.
With exception to Sports Events, all available grant funds are awarded before the start of the new fiscal year. Therefore, no grant funds remain for the consideration of out-of-cycle funding requests or the creation of a defined midyear grant cycle for nonsporting events. As a result, the use of Tourism Fund Balance is required in the limited cases whereby first-time or one-time events are considered after the grant funds have been awarded. This is the process that led to the Board’s consideration and approval of TCC’s “Rock the Roost” funding request in March 2022.
In the last five years, only two out-of-cycle funding requests have been received (Soul of the Southside and TCC’s Rock the Roost) and awarded funding. Both were first-time events that arose after the completion of the Tourism grants cycle and were scheduled to take place in the last half of the respective fiscal year, 9 to 12 months after the closing of the grant cycle. In both cases, the Division of Tourism was contacted by event organizers seeking support for their first-year events. The Tourism Director determined that the proposed events met the statutory eligibility for TDT, was of interest to the general public, and demonstrated the potential to draw overnight visitors. This included scheduled programming/activities with visitor appeal, out of area marketing activities, and the events were scheduled to be held during a non-peak visitor period which could maximize the County’s return on investment. Given the potential visitor and economic impact associated with the two out-of-cycle funding requests in the last five years, the Director of Tourism presented the TDC with an analysis and recommendation for funding with the stipulation for the organizations seek future funding through the normal application cycle. “The Board approved the funding recommendation for TCC’s Rock the Roost using Tourism Fund Balance and the TDC approved the funding recommendation for Soul of the Southside last year as it did not require the use of Tourism Fund Balance.”
Although rare, the TDC considered options to both refine or restrict out-of-cycle funding requests for events in the future. For example, the TDC considered establishing criteria that would allow only for the consideration of large first-time events given the potential community and economic benefits (number of room nights generated, consumer spending, etc.) Similarly, the TDC deliberated whether to limit out-of-cycle funding requests for events that are scheduled to occur exclusively in the slower shoulder seasons – December and May through September. However, large events require greater funding support and the TDC expressed concerns about revisions to the Tourism Grants Policy leading to more frequent out-of-cycle funding requests seeking to utilize Tourism Fund Balance. The TDC was not supportive of these concepts as long-term strategies to be codified in County policy.
The TDC discussed designating some of the available grant funding at the start of the program to allow for a midyear grant process to be conducted for non-sporting events. However, the need has not been demonstrated in the past five years to establish a midyear cycle for new events or to consider supplemental funding for events previously awarded event grants. The TDC also expressed concerns that a second grant cycle may result in lower grant funding levels being awarded during the initial grant cycle for existing events.
After a robust discussion, the TDC voted unanimously to not pursue a midyear grant cycle for nonsporting events and to not consider out-of-cycle funding requests for event grants once funding has been exhausted. TDC members opined that out-of-cycle funding requests negatively impact the competitive nature of the grant process where the most thoughtfully proposed and impactful event scores the highest and therefore receives the most funding. Additionally, a “one-off” approach diminishes the accountability of the Tourism Grant Program evaluation and funding process. While it is commonplace for other local, state, and federal grant programs to not consider any out-of-cycle funding requests, and the TDC demonstrated the lack of demand for setting up a defined process for out-of-cycle funding, staff included in the proposed revisions an exception for the Director of Tourism to evaluate events in limited circumstances:
Section F-11: The Board authorizes the TDC to consider and award event grants consistent with this policy and its procedures outside of the established grant application cycle provided Tourism Event Grant funds are available. Out-of-cycle non-sporting grant funding requests will not be considered. The funding requests for the non-sporting events will be referred to the annual grant cycle to seek funding. However, this does not preclude the Director of Tourism from evaluating and recommending funding, in limited circumstances, for one-time or first time events that can demonstrate significant visitation and economic impact.
Should the Board support the proposed revisions, the Director of Tourism would still have the authority to evaluate a proposed event and provide a recommendation for County support after the grant cycle has concluded. Based on precedent, this would be for a compelling and/or unique one-time or first-time event presented to the County that can demonstrate significant visitation and economic impact.
Sports Event Grants
As noted previously, Tourism Event Grant funds have historically been awarded in full during each annual grant application cycle for all non-sporting events. Funding often remains available for sports events. This is due to amateur sporting events being added throughout the year based on the size and demand of competitive leagues and tournaments, as well as the availability of regional venues. Further, amateur sporting events and the benefit they bring to a destination relies upon the active participation and registration of competitors rather than an abundance of spectators or passive event participants (festivals). Since sporting events require amateurs to register, participate and being willing to travel, these events are often scheduled with less advance notice than community festivals and events which occur at a regularly scheduled time of year and implement a marketing plan over several months to attract large crowds and spectators for their event to be successful.
In the regular Tourism Event Grant cycle, approximately 50-60 Sports Event grants applications are reviewed by the Tallahassee Sports Council who then present their recommendations to the TDC. As allowed per policy currently, a second Sports Event Grant cycle has historically been conducted each February, which is 8+ months after the start regular grant cycle and 5 months into the fiscal year. The second-cycle typically consists of approximately 5-10 grant applications and these applications are also reviewed by the Tallahassee Sports Council with their recommendations being presented to the TDC. The proposed revision to the Tourism Grant Policy formalizes the process for the Director of Tourism to initiate a second grant cycle for sports events when funding remains available.
Revision to “Peak Visitor Periods” Definition to Expand Grant Eligibility
The Tourism Grant Programs are designed to direct resources to attract tourists to the destination during non-peak visitor periods when there is ample availability of hotel rooms. This ensures that the County is leveraging its funding when visitation is most needed rather than when there is limited lodging availability in the market. Peak periods are generally defined as times when all hotel rooms in the market are anticipated to be filled by other events in the market. More specifically, the current policy defines Peak Visitor Periods as:
…FSU home football game weekends in the fall semester, FAMU homecoming weekend, FSU or FAMU graduation weekends, and Monday through Thursday during the state legislative session.
Peak visitor periods include FAMU homecoming weekend and all FSU home game weekends. Seeking to optimize room nights in the destination as there is increased hotel room inventory in the market, the TDC considered allowing Sports and Special Event Grants (smaller events) to be permitted during home football game weekends that are not anticipated to fill existing hotel room inventory. These smaller events have the potential to generate additional room nights without having the impact on occupancy rates that a larger event such as Signature and Emerging Events may have. The TDC is recommending changes to the Policy that would allow for the funding of smaller events on most FSU home game weekends. Events will continue to be eligible for all grant programs during FAMU home game weekends with the exception of homecoming.
Should the Board approve the TDC’s recommendation, each year the identified “Peak Visitor Period” dates will be presented to the TDC for approval as identified by the Tourism Director based upon dates when all hotel rooms are anticipated to be filled by other events in the market and will be included in the Tourism Event Grant Program Guidelines published annually, posted on the Tourism Grant Program website section, and shared in all communication and grant workshops to ensure all potential applicants are aware of the annual black-out dates and can adjust their event date accordingly. This proposed recommendation will positively impact grantees offering more available dates to hold their events. The TDC voted unanimously to revise the definition peak visitor periods and expand grant eligibility for Sports and Special events.
TDC recommended the revision to the definition of “peak visitor periods” to read:
The TDC carefully considered the Board’s request to identify revisions to the Tourism Event Grant Policy as outlined in this item. The proposed policy revisions would codify the prohibition of the TDC considering out-of-cycle funding requests. The revision also provides additional clarification to how the “peak visitor period” is defined. The proposed modifications are important to advance Tourism’s FY2022-FY2026 Strategic Initiatives, Targets and Bold Goal as well as better serve community organizations with updated policies and procedures in order to ensure a continued transparent, accountable and predictable Tourism Event Grant process.
Options:
Recommendation:
Option #1
Attachment: