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CO(;) C ~ Q. +J U:J CO rJ) c:: .- co <C (])LO ~ N cOoe:( C ~ LL 0 Cf) Oe- L- .- E CJ) "'C X I- (]) s.... 0 CO e::( 0:: 0 co .- ~ . ~ ~ Salina Area Chamber of Commerce 120 W. Ash, P.O. Box 586. Salina, KS 67402~586. 785-827-9301 . fx 785-827-9758. www.sallnakansas.org Mr. Jason Gage City Manager 300 W. Ash St. Salina, KS 67401 Dear Jason: The preface to the Salina Economic Development Strategic Plan notes the need to: "... build on the many strengths of the Salina area" and to implement an "aggressive new approach to economic development. . ." We believe these objectives are advanced by a proactive effort to create visitor spending and economic impact via overnight visitors. Toward this end, there is a need for capital improvements at the Bicentennial Center and to increase marketing for events occurring at the Bicentennial Center and in Kenwood Park. We also strongly believe it is important to increase the economic impact of visitor spending and overnight visitation associated with the arts and cultural venues in Salina. Toward this goal, the Salina Area Chamber of Commerce Board of Directors encourages the . City of Salina to temporarily increase the Transient Guest Tax (TGT) by 1.75 percent. Based on recent history, this should yield approximately $350,000 a year. We support the following steps to support economic development via increased overnight visitor spending. 1. Proceed with capital improvements to the Bicentennial Center. We believe that one percent (approximately $200,000) of this annual support should target Bicentennial Center improvements that will directly iricrease overnight visitation to Salina. To the maximum degree possible, we would like this support to target improvements that will lead to increased overnight stays. For example, sound system improvements, remodeling and updating Heritage Hall and other meeting spaces will lead to more conferences, conventions and special events. Visit Salina staff and the lodging community work directly with convention planners and have appropriate knowledge about how to increase building use and overnight visitations to Salina. We ask that Visit Salina staff and the lodging community actively participate in identifying appropriate improvements at the Bicentennial Center. We believe the one percent (approximately $200,000) associated with this work should sunset ten years after implementation. 1 2. Increase marketing of the Bicentennial Center and Kenwood Park. The best way to reduce property tax and general fund subsidies for the Bicentennial Center is to increase traffic and facility use. We believe that.25 percent (approximately $50,000) of this increased annual support should target improvements that will directly increase marketing of, and within the Bicentennial Center and Kenwood Park. As improvements to our convention/event product are made, word must reach our past, current and potential clientele. Visit Salina will work with venue staff to develop marketing objectives that would include increased efforts through traditional marketing approaches such as print placements, direct mail and e-mail marketing efforts, sales calls and trade shows. Certainly, site visits will be an integral part of this process. In addition, Visit Salina will work with venue staff to capitalize on the marketing opportunities that could be created through facility enhancements. Immediate ideas such as video looping for concession cue lines to promote the Salina visitor experience could benefit the entire community. There will be NO increase in Visit Salina overhead or staff related expenses associated with this increased marketing effort. Visit Salina will include in the annual report to the City Commission detailed use of these funds. 3. Increase the economic impact of visitor spending and overnight visitation associated with the arts and cultural venues in Salina. The arts and cultural venues in Salina add to the quality of life enjoyed by residents. In addition, these organizations make a direct economic impact on our local economy. Our desire is to geographically broaden their individual and collective audiences, thus increasing their regional draw, and bringing more economic activity to Salina. According to the Arts & Economic Prosperity III study through Americans for the Arts, in FY 2005, arts and culture visitor spending in Salina was projected to be $11,843,380. In the same time period, total local expenditures by arts and cultural organizations totaled $11,907,597, creating a total industry expenditure and direct impact of $23,750,977. Over $12,760,000 of household income was paid to local residents and 810 full time equivalent jobs were supported by the arts and culture organizations and their audiences in Salina. In FY 2005, the annual revenue generated to local government by this industry sector was projected to be more than $1,009,000. Our objective is to increase these totals through additional overnight visitors, and the spending they will generate. Growth of businesses in this industry sector will reap double rewards for the Salina economy. A stronger arts and cultural sector will also allow these organizations to deliver more quality programming for Salina residents. 2 The Salina Economic Development Strategic Plan notes that: "This plan reflects the community desire to prioritize our focus on the expansion of businesses already located in the Salina area." The chamber considers this proposal an extension of this philosophy. .If it were a private business with 810 employees and a payroll in excess of $12,760,000, the chamber and its economic development partners would certainly desire to increase the economic impact of the firm. In a real sense, we are targeting the expansion of an industry already operating in SaIina. We believe that .50 percent (approximately $100,000) of the increased transient tax income should be invested to increase the economic activity and overnight lodging in Salina due to the arts and cultural venues. We have discussed these issues with leaders from the "Big Ideas" finance committee. Based on their input, two funds, to be administrated by Visit Salina, will be established to achieve our objectives. There will be NO increase in Visit Salina overhead or staff related expenses associated with this increased marketing effort. Visit Salina will include in the annual report to the City Commission detailed use of these funds. FUND ONE We believe that 80 percent (approximately $80,000) of this annual support should be used to implement a major comprehensive collaborative regional marketing effort that will increase the economic activity generated by visitors who choose to "Play and Stay.in Salina." Any arts and cultural organization is eligible to apply for Fund One support. The applicant must match the support on a $1 for $1 direct match. No more 10 percent of the match can be administrative costs for the applying organization, the balance will be cash. The minimum application will be $5,000 and maximum application per venue is 25 percent of the Fund One total (approximately $20,000.) Use of Fund One monies will be based on joint submission of an annual marketing plan from participating organizations. Access to Fund One depends on partnerships, collaboration between venues and creating the opportunities for overnight. stays. , Highlights of the marketing plan will be: . Targeting dollars to enhance existing marketing efforts. Marketing plans will use new and expanded media targeting new and expanded markets using new and expanded approaches. . A deliberate emphasis on collaboration. There will be coinciding events at multiple venues with a shared target audience. . Promotion of lodging facilities. We anticipate using insertions, Internet links, incentives and packages to achieve our objective of increasing overnight stays. ' . Establishing key performance indicators, benchmark and sh~re results 3 Specific examples could include: . Cooperative placements, resources, campaigns: Collaborating agencies determine the demographics of a their target audience, and o Place a billboard in a publication with distribution that meets that criteria, or a short-term billboard in a geographic market that meets that criteria (Cooperative placement) o Promote a specific experience to their combined regional mail/emaillist, and to additional contacts with appropriate demographics that are purchased and shared (Cooperative resources) o Bring Mom for Mother's Day weekend! Begin with the (named) exhibition.at Salina Art Center Saturday afternoon; Freshen up at your hotel, have a nice dinner, and then enjoy the SCT production of (named) Saturday night; Join us Sunday as we go 'Wild About Moms' at Rolling Hill Wildlife Adventure! Develop cooperative print/television ads, bundle individual ads use same media to promote specific experiences or complete seasons (Cooperative campaigns) o Give your family a wonderful gift when you Visit Salina and enjoy great shopping, unique dining, and these wonderful holiday traditions: o Theatre Production - date - venue o Family Activity - date - venue o Concert - date - venue . Cross Promotion: o Incorporate links from individual websites to: Visit Salina website (Accommodations, Dining, Attractions, Calendar); Bravo Salina web site (Cultural opportunities); Websites . of hotels that are offering specific incentives; (Accommodations) o Insert hotel information/special offers in mailings, ticket confirmations . Tracking mechanism: o Survey regional audience and targeted potential customers to inquire: Did they come? Did they spend the night? What else did they do in Salina? What other activities would they like to receive information about? o Gather and report zip code data from point of sale to set baseline and track results City Manager or designee will review/comment on the collaborative plan before it is implemented with city commission approval to also occur. To better manage Fund One, and to avoid over commitment of Fund One resources, support will be awarded only after Fund One support has been escrowed for six months. Unobligated Fund One support will accrue until it reaches 200 percent of the prior year allocation. Excess funds will be used for capital improvements at the Bicentennial Center. Visit Salina and the arts and cultural venues will submit an annual report to the City Commission. 4 FUND TWO We believe that 20 percent (approximately $20,000) of this annual support should be used to implement campaign/event specific marketing in conjunction with hotels. Fund Two support is designed for specific event promotion, providing matching marketing dollars (of a $1 for 50 cent cash match basis). Using a grant application and review process with tracking measurements, Fund Two will target "last minute" opportunities and smaller scale/short timeframe projects. There will be an emphasis on partnerships and the promotion of hotels. Specific project examples could include: · If the Yesteryear Museum wanted to expand the promotion of the Fall Show to steam-engine clubs across the Midwest. Fund Two dollars could be utilized to produce and distribute a mailing/e-card promoting the show to that targeted regional audience. The marketing piece would include accommodation information. · The Salina Symphony could identify two publications, with regional reach, to promote their season to a broader audience. They partner with Salina Art Center & Art Center Cinema, and apply for Fund Two dollars to create a print ad that invites visitors to Visit Salina and enjoy a performance, spend the night, take in an exhibition and matinee the following day. Fund One recipients are not eligible to receive Fund Two support during the same year. The criteria for Fund Two distribution will be developed by a task force. The City must approve the criteria before the programming proceeds. Criteria will be developed by: . Marshall Perry, Director, Bicentennial Center . Sylvia Rice, Visit Salina Director . Representative of arts organization with no financial stake in the issue . Lodging industry representative Decisions about awarding Fund Two monies will be made by a task force of: . Sylvia Rice, Visit Salina Director . City staff or city commission appointee to convention & tourism committee . Lodging representative to be recommended by Sylvia Rice and approved by City Manager . Representative from Fund One recipient Unobligated Fund Two support will accrue until it reaches 200 percent of the prior year allocation. Excess funds will be used for capital improvements at the Bicentennial Center. Visit Salina and the arts and cultural venues will submit an annual report to the City Commission. Thank ~ou for your consideration, ~~- 2009 Chainnan of the Board ~1Ii.r W,~ Dennis W. Lauver President & C.E. O. 5 >< ftS t- .... U) CD :::s C) .... c CD . U) C ftS s... t- ~~.~ ~ ~ .~ r:J':J .~ > en C) C) C'I - ~ C'I I ..s:::: : u J l.- ns :E 1- . . . D c-c OJ c::: -- .., D) .., 0 (D (D . n tn n-c ~ ..... .....0 (Q -- 0 tn 0 .., .., D) 0 ~ tn - c::: tn ...... ~ -a .., 0 c. ..... '3 - (D ~ (/) n o. (D ::T .., :::s D) 3 3 . I D) Q) c- ..... -- . I (D 0 -- .., ~ 0 0 :::s ...... n 0 0 3 c: 3 . I -- (D :::s .., n (D (D OJ ~ 0 D) en .., ~. c. ~ ~ 0 ...... ~~~ ~t~ ~ r./) ~ .~ ~ rJ":J >< CD .~ ~ ea +-' :;> c: C +-' C CD 0 (]) ~ () U M -- L- ea I · (]) ... 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