1. Missoula’s Tourism Business Improvement District

2. Today’s Goal Approve the resolution of intent to establish a Tourism Business Improvement District in Missoula.

3. Tourism Business Improvement District State Legislation Passed in October 2007 for opportunities to create TBIDs Since Legislation Passed the following communities have created a TBID in Montana: – –Billings – –Bozeman – –Havre – –Great Falls

4. Tourism Business Improvement District The following communities are currently working on the formation of a TBID in Montana: – –Missoula – –Kalispell – –Helena – –Bitterroot Valley

5. Our Process Missoula Convention and Visitors Bureau formed a TBID Committee for the purpose of creating a TBID TBID Committee consisted of MCVB Staff, Hoteliers, and MCVB Board Members The Committee was formed in February 2008 and met on a semi-monthly basis since then

6. Our Process 2 Open Community Information Forums were held for Hoteliers and Interested Parties TBID Monthly updates were given at each MCVB Board Meeting which are open to the public. The majority of the work was done through individual meetings with hoteliers by the committee.

7. TBID Petition Process 60% of the square footage of total Hotel Property footprints in the City Limits are needed to create the TBID. We currently have 64% signed and verified on petition.

8. TBID Concerns State Handling of Bed Tax Funds. Fear funding will be diverted out of tourism and tourism promotion. (Note – No other communities in Montana are accessing their TBID. This is a deal breaker for some supporters.) Only benefits the large properties and not the small properties.

9. TBID Formation Process Get 60% of Hoteliers Square Footage to sign Petition for Creation of TBID. City Council Approves Resolution for Intention to establish TBID in Missoula. Protest Period (15 business days) City Council Hearing and Final Approval for Establishment of TBID.

10. TBID Formation Process Mayor of Missoula appoints Board of Directors TBID Board of Directors Prepares Work Plan and Budget City Council Approves TBID Work Plan and Budget

11. TOURISM IS ECONOMIC DEVELOPMENT Tourism is one of Montana’s fastest growing industries. In 2007, 10.7 million visitors spent $3.1 billion dollars in the State. Visitor spending generated $235 million in state and local tax revenue in 2007. Tourism provides 44,830 Montana jobs and $888 million in worker salaries.

12. WHAT DOES THAT MEAN ON A LOCAL LEVEL? In 2006, non-resident visitors spent $316,954,140 in Missoula County. 94-96% of those expenditures occurred in the City of Missoula – an average of $300 million dollars. Approximately.74 of each dollar spent is on retail purchases. That means approx. $222 million annually is spent in Missoula’s main street businesses.

13. Economic Development

14. TOURISM FUNDING Private membership State bed tax collection Annual bed tax budget for the City of Missoula – approx. $160,000.00 Spokane, Tri-Cities, Coeur d’Alene, and Boise annual tourism promotion budgets are 4-16 times Missoula’s annual budget. We are no longer competitive.

15. City Competitive Funding *In Millions*

16. Critical Challenges at Current Funding Levels Increased competition from area competitors (Spokane, Seattle, Bozeman, Billings, Wyoming North and South Dakota, many others) Rising cost of postage Rising cost of print and electronic advertising placements. Limited resources to strategically help meeting and convention marketing as well as support services for the meetings already taking place.

17. Is There a Need? State regulations restrict use of bed tax funds limiting our ability to be as proactive in our priority Missoula markets – no local control Over the past 20 years the lodging tax revenues have been diverted to a variety of entities and non-promotional projects and this will not change - Historical Society State Parks Heritage Commission Cultural Trust Council on Historic Preservation Montana Tribal Tourism Alliance

18. Alternative Funding Source Montana’s BID legislation enacted 25 years ago 42 States have enacted BID legislation 1,200 communities in the US have BID’s, including Missoula Tourism BID’s enhance funding for ~ – – New York City – – Sacramento and other California cities – – Spokane and other Washington cities – – South Dakota, Wisconsin and other states

19. Tourism BID Opportunity HB 235 simply expanded existing BID legislation New Language – – Specifically allows for tourism promotion; – – District may be non-contiguous if lodging; – – Existing CVB must be manager; – – Allowed flat fee basis or sliding scale Funds not to supplant existing bed tax

20. Tourism BID Opportunity Term –Minimum of 3 years/Maximum of 10 Must re-petition after initial term All TBID fees are assessed on Property Tax Bill Elimination of TBID before term expires: – – 50% of property owners can petition governing body – – TBID Board proposes no assessment – effectively eliminating program

21. Tourism BID Opportunity Requires min. of 60% of total footprint to sign petition Governing body ~ City Council (majority of properties within city limits Exemptions ~ Same as current lodging tax 5-7 person board of hoteliers appointed by Mayor with input from Missoula Lodging Association

22. WHAT A TBID MEANS TO MISSOULA Tourism BID –Flat fee assessment on occupied room nights –Collected and governed locally –Potential $500,000 increased funding –Priority markets – city-wide events, regional leisure drive markets and sporting events.

23. –Increase effectiveness in existing areas while exploring new markets. –Focus efforts on periods of need –Allow for subsidy and sponsorship of events and organizations that drive room nights –Develop a community brand –Increase staffing to focus on sales, marketing and support –Funding for research to track measurable objectives and market trends.

24. TBID Potential Potential $500,000 increased funding Increase air service Increase effectiveness in existing areas while exploring new markets. Focus efforts on periods of need ~ shoulder seasons and weekday travel Attend new trade shows

25. Allow for subsidy and sponsorship of events and organizations that drive room nights Develop a community brand Increase staffing to focus on sales, marketing and support Web site optimization Funding for research and software to track measurable objectives and market trends.

26. Results - Spokane Since instituting the TBID in June 2004- December 2007 Spokane has: Added $5,394,418.00 new marketing dollars to their budgets. Added 6 convention & group sales staff, in-house graphic artist and support staff. Attend 12 convention trade shows instead of 4. Attend 10-12 tourism shows instead of 2. Increased room demand 18% - 1,344,060 to 1,580,775 Increased ADR 30% - $63.63 to $82.65

27. Brought the 2007 US Figure Skating Championship Helped to fund: – – Best of Broadway Series – – Bluewaters Bluegrass Festival – – Contemporary Arts Festival – – Dixieland Jazz Festival – – Downtown Spokane Partnership – – First Night Spokane – – Lilac Bloomsday Run – – Spokane Art Fest – – Spokane County Fair & Expo Center – – Sierra International Convention – – Sister Cities Convention – – Women’s Hockey

28. Results - Billings This year alone: – –5 City Wide Events Created – –9700+ Room Nights booked by the CVB alone – –6 Convention/Trade Shows Selling Billings – –Creation and Launching of a new City Brand

29. Today’s Goal Approve the resolution of intent to establish a Tourism Business Improvement District in Missoula.