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Budget Requests Report . . . DEPARTMENT OF FINANCE AND ADMINISTRATION Rodney Franz, Director 300 West Ash, P.O. Box 736 Salina, Kansas 67402-0736 TELEPHONE (785) 309-5735 FAX (785) 309-5738 . TDD (785) 309-5747 E~MAIL rod.franz@salina.org Website: www.salina-ks.gov Salina DATE: July 13, 2010 TO: City Commissioners FROM: Rod Franz, Director of Finance and Administration RE: Economic Development Requests Attached is supplemental information relation to the Economic Development ReQuests. 1. Visit Salina Annual Report and Request. Visit Salina has requested $600,000 for traditional activities. In addition, they have reQuested $39,984 for marketing of Oakdale/Kenwood Park and $99,960 for the Cultural Marketing programs. 2. I have attached supplemental material for the SDI reQuests, including the Development Incentive Program guidelines and a copy of the Powerpoint presentation that is scheduled. 3. Project Open, sponsored by the Salina Chamber of Commerce, has requested a five year commitment of Special Sales tax funding in the amount of $25,000 per year starting 3/1/2011. SEDIC has considered the request, and recommended use of the Special Sales Tax funds for these purposes. A report of Project Open activities and the request for funding is enclosed. it}',;..... ~<,.i,\;':,~~t,~Vin~qfl/Ry'; ~SaJina:Re9j'OnaIHealth' '. , ..' ';S01 Presid~nt i',~ . f'<"i~~~;~~ healthy, vibrant downtown community! . C 3: ~ 3: 8 III .5 1ii II) V "t: ~. i: DEVELOPMENT INCENTIVE PROGRAM FA<;ADE IMPROVEMENT PROGRAM GUIDELINES The Development Incentive Program (DIP) provides partial reimbursement for eligible facade improvements and new construction to property owners and new or expanding Lee District business tenants. The intent of the OIP is to strengthen the economic viability of the Lee District by providing financial incentives for improving the exterior of existing buildings and constructing new commercial buildings. DIP provides an opportunity to preserve the architectural heritage and enhance the unique atmosphere of the Lee District. The best approach to encouraging compatible downtown building design is through pres'ervation of a building's original architectural features whenever possible. The DIP program promotes this intent by focusing on this reimbursement program as a primary business recruitment and retention tool. Since DIP provides partial reimbursement, the property owner or business merchant may obtain additional financing from any source. All design plans shall be reviewed and approved by the City of Salina and/or the Design Review Board . as appropriate to the project. DIP funds for small projects (Mini-Grants) shall not exceed $3,499 and DIP funds for large projects (Forgivable Loan for Major Project) shall not exceed $15,000. However, if a commercial building, less than one ownership, is a multi- tenant building, the tenant of each separate unit with an individual storefront fa~ade and an independent ground floor entry shall be eligible to receive DIP funds. Total DIP funds shall not exceed $15,000 per unit or $30;000 for the entire building. If the owner or tenant of a building, which occupies more than sixty (60) feet of storefront; applies for DIP funding, the SOl 80ard may award additional funds at its discretion. A building's eligibility is renewed annually. Successful applicants receive disbursement of DIP funds after completion of . project, approval of work performed by a final City inspection, and SUbmittal of DlP Final Report Forms and copies of paid invoices for apptoved expenses to the SOl Executive Director. Additionally, for DIP Forgivable Loans for Major Projects; the property owner must sign an agreement to maintain the improvements funded for the building as rehabilitated for a period of at least 3 years. This agreement shall provide for a lien against the property in an amount equal to the reimbursement amount. This property lien will be subordinate to liens of other lenders. The grantee shall agree to own/occupy the property for a period of three (3) years after the execution ohhis agreement. The owner/tenant agrees to repay to Salina Downtown Inc. a sum of money equal to one-thirty sixth (1/36) of the amount of the loan for each whole month remaining prior to expiration ofthe three (3) year period. The agreement shall be filed with Saline County Register of Deeds and transferred upon sale of the property. , Salina, KS 67402-1065. (785) 825-0535. FAX (785) 825-7216. www.SalihaLeeDistrict.com . . . 2011 Report to Salina City Commission Salina Downtown, Inc. Phyll Klima, Executive Director 2010 CITY FUNDING to Salina Downtown. Inc. · Lee District Service Fee Revenue Pass throughfrom Lee D Members $87,000 · General Operating Supplement $40,000 Special Sales Tax/or Economic Development (2010) · Development Incentive Program Fayade Improvement Program Special Sales Tax/or Economic Development $50,000 1--- . SDI SERVICES BUSINESS SUPPORT AND RECRUITMENT · Development Incentive Program including: o Facade Improvement Grants and Forgivable Loans o New Business Recruitment Loans (new 2010) o Cluster Marketing Grants (new 2010) · Project Open, helping entrepreneurs succeed. SDI provides volunteers, staff, FastTrac, business coaching and marketing assistance · Monthly publication of Available Properties (also website) · Total Package Series of 14 Best Practices Workshops · Quarterly Stakeholder meetings · Graffiti clean up kits · May Pole Painting Party . SDI SERVICES DESTINATION MARKETING · Annual publication of Business Directory and map · Web site marketing and links to member sites .Lee District banners · Billboards - on 1-35 at Concordia & seasonally on I 70 · Media Advertising in newspaper, on radio and television · Social Networking marketing · Special Events oBuddy's Block Party oOctober Breast Cancer Awareness Month oBig Boo RaIna oHoliday Open House oChristmas Festival & Parade of Lights oThe Market . e SDI SERVICES COMMUNICATIONS & ADVOCACY .Social Media Networking · Critical date reminders · Monthly Newsletters or e-Newsletters · Annual Meeting and Member Recognition · Monthly advocacy at City and State levels · A VOLUNTEER Board of dedicated champions of your healthy, vibrant downtown community! . DIP Fa~ade Program $187,000 Public Investment 2005 to 2010 .Thirty Awards to date totalling $153,927 023 Mini Grants 07 Forgivable Loans .Projects total over $684,024 in allowable costs That means that private citizens invested $4.42 for every DIP dollar awarded. . . Development Incentive Program Fa~ade Improvement 303 S Santa Fe* Before After . Development Incentive Program Fa~ade Improvement . . Development Incentive Program Fa~ade Improvement 113 N Santa Fe Rear - 7th St Front - Santa Fe . Development Incentive Program Fa~ade Improvement 117 S Santa Fe* . . Development Incentive Program Facade Improvement 134 S Santa Fe** Du ri ng . Development Incentive Program Facade Improvement ~~o'~ ~~ . Q) LL CO ~ c: CO en en ~ ('I) ~ . . Development Incentive Program Facade Improvement 152 S 5th Street After During . Development Incentive Program Facade Improvement 200 S Santa Fe . . Development Incentive Program Fa~ade Improvement th St . Development Incentive Program Fa~ade Improvement 159 54th St Du ri n 9 . . Development Incentive Program Facade Improvement . Development Incentive Program Facade Improvement Projects in Progress · 200 S Santa Fe* · 120 WAsh · 310 S Santa Fe* · 132 S 5th · 210 S Santa Fe . . QUESTIONS Thank you from everyBUDDYin the Lee District! . . . . . DEVELOPMENT INCENTIVE PROGRAM Facade Improvement Mi,ni-Grant Guidelines Eligible Applicants Owners and/or tenants of structures located within the Lee District, who are in good standing (Lee District Service Fees current), may apply for DIP funds. Priority will be given to Lee District members. However, non~profit Salina Downtown, Inc. partner businesses whose principal location lies within the Lee District boundary are also eligible to apply for DIP funds. Eligible Buildings Any existing or proposed commercial building located within the Lee District, which is owned or leased by an eligible applicant, is eligible for DIP funds. Because DIP is a business recruitment and retention tool, new building construction and building additions - for new or expanding businesses - will be given priority. Projects approved for DIP funds must comply with all applicable City of Salina codes and ordinances. All projects must obtain a building permit when required by City Code and may require site plan approval by the Salina Planning Commission and the Design Review BOl:!fd. This grant program is designed for small scale renovatio.n projects to the faf):ade of buildings within the Lee District. AVAILABLE FUNDS: Maximum single project award $3,499. SDI has $15,000 to award in 2010. These funds are made available in the Lee District through a generous grant from the City of Salina. MATCHING REQUIREMENT: All applications are competitive and require a minimum cash only match of $2 private investment to $1 Development Incentive Program (DIP) grant funds. In-kind contributions will NOT count towards the required match. ELIGIBLE USE OF FUNDS: Exterior improvements only. Projects may include but are not limited to: · Buildingexp;msion · Vacant building redevelopment · Facade renovation and restora.tion (emphasis on removal of metal siding and metal awnings) and/or replacement with new coverings or roU",ups.:., · Worl<:complying withSalipa Downtown DeSign Guidelines, contingent on Design ReviewBoard approval,' . INELIGIBLE USE OF FUNDS: · Signage · Projects with no minimum 1.5: 1 match · Projects outside the Lee District boundaries · In-kind labor of ~roperty/business owners · Interior renovation costs APPLICATION ImQUIREMENTS: (I) Project Application (2) Project description (3) Project schedule (4) Budget Worksheet (5) Photos, drawings and/or plans. (See Application Check List and Budget Worksheet) SELECTION ClUt'li:lUA: All projects will be judged on their individual merits and components. The following criteria will serve as the basis of consideration: . Ratio of matching funds to private investnIent (minimum 1.5 to I). Additional consideration given to applicants providing more than the minimum match requirements . Projects creating new businesses and/or additional employment in downtown will receive additional consideration or priority. . Project's adherence to Salina Downtown Design Guidelines APPROVAL: Applications are subject to review and approval by the DIP Review Committee with final approval ofthe Salina Downtown, Inc. Board of Directors. The DIP Grant Review COlI1Illittee includes two members ofthe SOl Business Support and Recruitment Committee, one SDI Board member, one Design Review Board member and one member appointed by the Salina City Commission. Al>DITIONAL REQUIREMENT: All projects awarded grants must be completed within one calendar year from the official date ofthe award letter. ~PLl~1\1J~N'j)~AJ)tINE:(jQtnplet~:appltc~tj()IlS~1"ediileattbe' SOl omce by ''12:00 noonMonday, August 'I 6,',2010. Applications awarded DIP funding will officially be notified by letter. Application forms are available from Salina Downtown, Inc. (SOl), 120 West Ash Street, Salina, KS 67402-1065 and online at www.SalinaLeeDistrict.com. ( . . . . . . DEVELOPMENT INCENTIVE PROGRAM Exterior Improvement Mini-Grant Application Business Address Business Name Business Owner (Contact) Phone e-mail Property owner Property owner mailing address Property owner phone. e-mail Main contact for grant application business owner property owner Project description and details on whetb'er this project will (a) serve an existing or a new business (b) increase employment and (c) als.o involve interior renovation (interior costs are not eligible for reimbursement and may NOT be used as match). (Attach or use opposite side) Project timeline. Outline the proposed time schedule for the project (be specific). Keep in mind that the project must be completed within one calend~ year of the award. (Attach or use opposite side) Amount Requested $ (Maximum request $3,499) Wbat i.s tbe ratio of tbe private investment to grant request? (Minimum $2 private: $lgrant request) ADDITIONAL REQUIREMENTS Complete and attach . Budget Worksheet · Photographs of the project . Drawings and/or plans for the project Applicant signature Date Exterior Improvement Mini-Grant Application BUDGET WORKSHEET Include the proposed line item expenses for the project showing the amount of investment and the amount of requested grant funds to be applied to the specific expenses. Budget should be broken down to include each expense by line item. MATCHING EXPENSE DETAILS DIP FUNDS FUNDS TOTAL $0.00 .. " ,..... 0" . ~ . - --.., .... . 0"" $0.00 .- $0.00 - . . $0.00 .- $0.00 $0.00 $0.00 $0.00 d ...... $0.00 - - $0.00 $0.00 . $0.00 $0.00 $0.00 PROJECT TOTAL '. . . . Exterior Improvement Mini-Grant Application (continued) APPLICATION CHECK LIST D- Application Form D- Project Description (Maximum one pag~) D- Project Timeline D- Budget Worksheet SUPPLIMENTARY REQUIREMENTS D- Proofthat Lee District S~rvice Fees are paid for existing busin~ss (must be current). D- Professional contractor cost estimates of iropr9v~m~nts . .8- Design Sketch (color choices and materials to be used) . 8- Written approval of building owner if the applicant is leasing D- Legal description of property . . DEVELOpMENT INCENTIVE PROGRAM Facade Improvement Forgivable Loan GUidelines . Eligible Applicants Owners and/or tenants of structures located within the Lee District, who are in good standing (Lee District Service Fees ,current), may apply for DIP funds. Priority will be given to Lee Districtniembers. However, non-profit Salina Downtown, Inc. partner businesses whose principal location lies within the Lee District boundary are also eligible to apply for DIP funds. Eligible Buildings Any existing orprdposed. commercial buildin:g loctited within the Lee District, which is owned or leased by an eligible applicant; is eligible for DIP funds.. Because DIP is a business recruitment and tetention tool, new building construction and building additiofis ~ for new or expanding businesses- will be given priority. Projects approved tor DIP flIIids must cdmply with all applicable City of Salina codes and ordinances. All projects must obtain a building pennit when requited by City Code and may require site plan approval by the Salina Planning Commission and the Design Review Board. This grant program is designed fdr small scale renovation projects to the fa~ade of buildings within the Lee District. AVAILABLE FUNDS: Maximum single projectaward $15,000. SOl has $35;000 to award in 2010. These funds are made available in the Lee District tht(jugh a genetous grant from the City of Salina. . MA TCHlNG aEQ Ol'REl\iIENT: All applications are competitive and require a minimum cash only match of $2 private investment to $1 Development Incentive Program (DIP) funds. In-kind contributions will NOT count towards the required match. ELIGIBLE USE OF FUNDS,: Exterior improvemelits only. Projects may inchide but are not limited to: . Building expansion . Vacant building redeveldpment . Facade tenovationand restoration (emphasis on removal of metal siding and metal awnings) and/or replacement with new coverings or roll..ups . Work complying with Salina Downtown Design GUidelines; contingent on Design Review Board approval INELIGIBLE USE OF FuNDS= . Signage . Projects with no minimum 2: 1 match . Projects outside the Lee District bOUhdaries . In-kind labor of propertylbusiness owners . Interior renovation costs APPLICATION REQUlItEMEN'l'S: (1) Project Application (2) Project description (3) Project schedule (4) Budget Worksheet . (5) Photos, drawings and/or plans. (See Application Check List and BudgetWorksheet) . . . . L SELECTION CRITERIA: All projects will be judged on their individual merits and components. The following criteria will serve as the basis of consideration: · Ratio of matching funds minimum $1.5 private to $1 DIP. Addition.u consideration given to applicants providing more than the minimum match requirements. · Projects creating new businesses and/or additional employmeltt in downtown will receive additional consideration or priority. · Project's adherence to Salina Downtown Design Guidelines APPROVAL: Applications are subject to review and approval by the DIP Review Committee with final approval of the Salina Downtown, Inc. Board of Directors. The DIP Grant Review Committee includes two members of the SOl Business Support and Recl1.Jitment Committee, one SOl Board member, one Design Review Board member and one member appointed by the SaJina City Commission. ADDITIONAL REQUIREMENT: All projects awarded grants must be completed within one calendar year from the official date of the award letter. APPLICATION DEAPLINE: Completed applications are due at tb,e SOl office by 12:00 noon Monday, August 16, 2010. Applications awarded OIP funding will officially be notified by letter. Application forms are available from Salina DowntoWll, Inc. (SDI), 120 West Ash Street, Salina, KS 67402~1065 and on line at www.SaIinaLeeDistrict.com. DEVELO:PMENT.INCENTIVE PR()GRAM Exterior Improvement Forgivable Loan Applicatiob . Business Address Business Name Business Owner (Contact) Phone. e-mail. Property owner Property owner mailing address Property owner phone e-mail Main contact for grant application. .. .. business OWner . property owner . Project description and details on whether this projectwlll (a) serve an existing or a new bushtess (b) inereaseemplaymentand . (c) also involVe interior renovation (interior costs are not eligible for reimbursement and may NOT be used as match). (Attach or use opposite side) Project tirneline. Outline the proposed time schedule for the project (be specific). Keep in mind that the project must be completed within one calendar year of the award. (Attach or Use opposite side) Amount Requested.$. (Minimum $3,500, maximum $15,000) Whatis the ratio of the private investment to grant request? .. (M:inimum$l.5 private: $1 loan request) ADDITIONAL REQUIREMENTS Complete and attach . Budget Worksheet . Photographs of the project . Drawings and/or plans for the project Applicant signature. . . . .. L_ Exterior Improvement Forgivable Loan Application BUDGET WORKSHEET Include the proposed line item expenses for the project showing the amount of investment and the amount of requested grant funds to be applied to the spe.cific expenses. Budget should be broken down to include each expense by line item. MATCHING EXPENSE DETAILS DIP FUNDS FUNDS TOTAL $0.00 . $0.00 $0.00 -. .. .. $0.00 $0.00 $0.00 ... $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 PROJECT TOTAL nIP Fa~ade Improvement Forgivable Ldan Application (continued) APPLICATION CHECK LIST D- Application Form D- Project Description (Maximum one page) ~ P~oject Timeline ~ Budget Worksheet . . SUPPLIMEN'tARY REQUlREMEN'tS ~ Proof that Lee District Service Fees are paid for existing business (must be current). D- Professional contractor cost estimates of improvements D- Design Sketch (color choices and materials to be used) D- Written approval of building owner if the applicant is leasing D- Legal description of property . . e . . Visit Salina Annual Report July 2070 . From: Sylvia Rice, Director Visit Salina Re: Visit Salina Annual Report to City Commission Overview Visit Salina, a division of the Salina Area Chamber of Commerce, works to promote Salina as a visitor destination. Our full time staff of four works with scores of local volunteers and industry professionals toward our primary objective - increasing economic activity in Salina that is generated through overnight visitors'spending. In a very general sense, we've experienced both succesSes and challenges in 2010. Hotel reVenue in late 2009 and early 2010 fell short of projections, creating in tum a shortfall of anticipated transient guest tax (TGT) receipts, one of two sources of income for Visit Salina. This necessitated oni}oingrevisions to our program and budget this year. Some hotels are reporting strong numbers for early summer, others are not as optimistic. Early reports from KS Dept. of Revenue indicate some leveling off, but we are cautious about the coming months. The 2011 preliminary budget has been developed accordingly. General Disseminating information is a big part of what we do at Visit Salina. In 2010, we will distribute more than 200 full tourist packets to hunters, antiquers, festival-goers, parents bringing kids to college, and so on...each customized to their individual needs and interests. More than 6,500 packets telling the Salina story will be assembled and mailed in response to inquiries generated through various ads we've place, which compares well to our placements last year. In late 2010 or early 2011, We will conduct a basic conversion study to see what percentage of those inquiries converted to stays in Salina. . Already in 2010 we've assembled more than 10,000 individual "Welcome Bags' for visitors in Salina fora variety of events. Our visitor brochures and Salina FYI pUblications are distributed in travel centers and businesses from Limon, CO to the Missouri border, and to chambers of commerce and tourism bureaus through the state. Visit Salina administers an open Calendar of Events via our website, and coordinates that information for other sources including www.TraveIKS.com and various industry publications. The www.salinakansas.orq website averages over 17,000 visits per month, with time spent exceeding an average of 3 minutes per viewer. Download activity is also high with nearly half of the visits resulting ina download of additional information such as documents, coupons, and lists. We continue to update the content presented, and are currently developing our social media program. Program Specifics The markets in which we concentrate our efforts include: Tourism, Conventions, and Sports & Special Events. The following is a synopsis of work in each market. . ~-- , . . . T aurism Market We also refer to this as the Leisure or Transient market. These visitors are individuals and families - people visiting friends and family, coming for entertainment, passing through to another ultimate destination and those traveling on group motor coach tours. Success in the tourism market depends primarily upon location, quality options for accommodations, restaurants, shops, and 'things to do and see', and terrific service. Because of Salina's central location on two interstate systems at 1-70 & 1-135, many of our hoteliers consider this their 'bread and butter'. Thus, a significant portion of the marketing materials created (maps, brochures, and advertising placements) are designed with this market in mind. 2010 ad placements included the following, among others: . Kansas Visitors Guide and www.TraveIKS.com . AM's Living, Journeys, Home & Away: and Midwest Traveler(1489 inquiries to date); . Frommer's Budget Travel (273 inquiries); . . Madden pre'-print advertorials (2256 inquiries); . Readers Digest(1118 inquiries); . Midwest Living, Best of the Midwest, Territorial, Travel Kansas, and other travel tabs aM directories; . Billboards on 1-10, 1-135, US 81 featured co-op partners: Smoky Hill Museum, Kenwood Cove, Rolling Hills Wildlife Adventure, Smoky Hill River Festival, KKOA Leadsled Spectacular Car Show and 000 Wop Concert, Salina JUCO Blast, aM later this year Salina Community Theatre; Through our participation with Kansas Travel & Touiismand several other communities, Salina is featured electronically, in Kansas newspapers, and on television and radio spots in Kansas; Nebraska, Missouri, Oklahoma and Minnesota markets. To incorporate that sort of teach on our own would be unrealistic. Working cooperatively through this program provides Salina mOre than $145,000 in media coverage in return for our investment of $24,000. Though our specific message maybe abbreviated, the campaign cre.ates a strong destination message for Kansas, and places Salina among the 'must visit' communities in the state. 2010 is the inaugural year for the Cuttural Arts Regional Marketing program, made possible by the October 2009 TGT rate increase. The program is designed to attract overnight visitors to enjoy cultural opportunities, and increase the economic impact of visitor spending generated in our economy by cultural venues. At this point, two applicants - Rolling Hills Wildlife Adventure and Salina Community Theatre - have been awarded Fund One dollars to support comprehensive regional marketing plans. Those entities are documenting their efforts and tracking results, all of which will be shared in a more formal report. To date, no applications have been received for Fund Two - dollars geared to support regional marketing of individual events. We anticipate interest and use of these funds to grow in 2011. . The TGT rate increase also provided dollars to specifically promote activities in Kenwood and Oakdale Parks. So far, those dollars have been used to expand marketing of Kenwood Cove, the Smoky Hill River Festival, the KKOA Leadsled Spectacular Car Show and Ultimate 000 Wop Show using direct mail, print placements, and billboards. During National Travel and Tourism Week, Visit Salina arranged for a Mayoral Proclamation, and hosted an open house for our front-line hospitality workers, kicking off our Summer Slide program. The program involved secret shopping at hotels, attractions, restaurants and stores to 'test' our front-line workers' ability . to address visitor questions about Salina. Most performed quite well when asked for directions to the zoo or a ballpark, or where to find the closest drug store, or what local restaurants they would recommend, for example. They each received a crisp $5 along with our congratulations on the spot! On June 6 we hosted the first private corporate event at Kenwood Cove, inviting front-line workers to bring their f~milies to enjoy the aquatics center as our guests. The event was meant to be both a thank you for the tremendous work they do in welcoming our visitors, but also to provide them a personal experience with Kenwood Cove so they could in turn 'sell' the attraction to their guests. Everyone had a great time, and we felt it was a success overall. Visit Salina participates in various industry coalitions such as Kansas 1-70 Association, North Central Kansas Tourism Council, Tour Kansas, and Amazing 100 Miles. This provides us collaborative marketing opportunities to expand our reach beyond what our budget could afford on our own. Our involvement with the Travel Industry Association of Kansas (TIAK) provides Salina another legislative voice relevant to tourism issues, on both the state and federal level, in addition to continuing education and opportunities to network with our peers. Convention Market In the Visit Salina program, this market includes all types of groups - corporate, trade associations, fraternal, religious, military and government - convening to conduct business, receive education, and network. Vying for conventions and meetings is arguably the most highly competitive market we are involved in. . . Visit Salina recently conducted a survey of meeting planners who represent a cross section of past, present and potential convention and meeting business. Survey results support what we've long recognized- convention groups have very diverse needs and expectations, and are represented by quite discerning meeting planners. Salina's central location and immediate interstate accessibility are tremendous assets in attracting conventions, particularly for groups with attendees from across the state. Visit Salina has a very good reputation for providing services, based on the individual needs of the event. Building strong relationships with planners is certainly a key, and we excel in this area. Convention activity in the past year has included hosting several newer pieces of business: . KS Gang Investigators (Feb) - 250 attendees, $99,900 direct visitor spending . KS Firefighters Association (Apr) - 200 attendees, $88,300 direct visitor spending . Professional Insurance Agents of KS (June) - 50 attendees, $16,300 direct visitor spending . Christian Church-Disciples of Christ (Oct) - 160 attendees, $35,000 direct visitor spending . KS Environmental Education Conference (Nov) -150 attendees, $33,800 direct visitor spending . Successful bids for future business include a re-bidforKS Pupil Transportation (2011), KS Assoc of Elementary and Secondary Principals (2011), and KDHE Medical Reserve Corp (2011). We have several bid decisions pending for groups in 2011 and beyond, representing 1,365 visitors for multi-day events. Overall, Salina is experiencing a decline in conventions and meetings. Part of that decline can be attributed to the economy with corporate and government meetings seeing some cut-backs. However, the success rate of Salina's bids has also fallen. Some of the groups we have been successful in booking - KS Firefighters, KS Emergency Managers, KS Gang Investigators - have indicated they won't return based on their recent experience. Further, we have long-term, in some cases annual, clients that have cancelled their future business in Salina or have at least indicated they are looking for other options, including: . KS Lions Mid Winter Rally - 250 attendees, $49,800 direct visitor spending . TOPS - 500 attendees, $135,112 direct visitor spending . KS UMC West Conference - 800 attendees, $301,267 direct visitor spending . KEPCO - Spring: 40 attendees, $14,275 direct visitor spending; Winter: 70 attendees, $23.175 There had been a marked change in the number of high-quality venues we compete with for each piece of business. As other communities have unveiled new meeting facilities and convention centers, Salina' facilities have not kept pace. Today, there are many options across the state for small to mid-size to very large gatherings, and more developments are on the horizon. A quick list of primary COnvention competition includes: . Junction City: Courtyard by Marriott - 119 rooms,16,OOO sq ft of meeting space; . Lawrence: The Oread - 99 rooms, and multiple meeting spaces for 25-300 people; . Topeka: Topeka Capitol Plaza - 224 rooms, 25,000 sq ft of meeting space plus connection to both Maner Conference Center and the Kansas Expocenter; . Wichita is a strong competitor with several venues to offer - Hyatt/Century II, Airport Hilton, and others; . . Overland Park: OP Convention Center - 85,000 sq ft of Space, connecting to the Sheraton's 412 rooms and 20,000 sq ft of space; . Manhattan: Hilton Garden Inn - under construction, 130 rooms and 12,000 sq ft meeting space; . Dodge City: Casino has hotel and event center currently under construction; · Hays: Proposals for a conference center with at least 12,000 sq ft meeting space, placed in proximity to existing hotels being considered. . Improvements being made at the Bicentennial Center will address some of the concems raised by planners regarding quality meeting space. Our survey indicated that 92% of respondents ranked the aesthetics of the facility - condition, appearance, etc. - as Important, Very Important or Most Important in their site selection process. However, as the competitive list above illustrates, and the Meeting Planner Survey substantiates, hotel rooms immediately adjacent to meeting space - a high quality 'meet/sleep' facility - has become the expectation, and is a productour competition is providing. Survey says...85% of planners reSpOnding ranked 'hotel rooms in close proximity' as Important, Very Important or Most Important. Several commented that this is a 'deal breaker', as was tne case with a planner on a recent site visit. When Salina was not awarded the convention throughout the next five-year cycle, the planner provided this insight: Sports & Spetial Events Perhaps a more stable market for us is the Sports & Special Events market. In general, if Johnny or Susie are playing ball, the family is traveling to watch them. The formula for success here is: great facilities, strong local support base, affordability and flexibility. Competition to host sports events is tough, particularly from Wichita, Topeka, Lawrence, Emporia, Hays, Hutchinson, and Johnson County. Obviously, repeat business of any kind is important, but replacing lost sports events is particularly difficult. Each presents very specific challenges - defined seasons, dealing with nature, organizing entities with their own policies and politics. This is very labor intensive work, requiring equal parts of energy, organization and diplomacy. Visit Salina worked with many events in 2010, about 15 ofthose being long-standing that we hope will continue as Salina traditions. We also welcomed a few new ones, a couple of which have promise of becoming annual events for us. There was some decline in gate attendance at some events, which seemed to be a trend with the other state high school event venues. One example - the KKOA Leadsled . . . . Spectacular Car Show - anticipates a significant increase, which encouraged them to move the event from Thomas Park to Oakdale Park. A partial list of sports related events we work with that follows represents more than 24,000 visitors to Salina, and a combined estimate of $4,442,606 in direct visitor spending. Salina Invitational Tournament Kansas Kids Wrestling KSHSAA 4A State Basketball KS 8-Man Football Coaches Clinic USA Weightlifting AAU Missouri Valley Charnpionship Gymnastics Kansas Disc GOlf Assoc Salina Senior Games American legion Grand Slam Toumarnent KS ASA Girls' 16 & 18 Fast Pitch Tournaments East/West Shrine Football Practice KSHSAA Basketball Area Supervisors/Officials Meeting AAU X-treme Gymnastics KSHSAA 4A State Wrestling NJCAA Women's Basketball Nat'1 Championships KSHSAA 4A State Football COllege Sports Fanz Senior Classic All Star Footban Triple Crown Kansas Baseball KSHSAA 4A State Baseball and Softball KS ASA Girls' 10, 12 & 14 Fast Pitch Tournaments Sacred Heart Alumni Golf Tournament KKOA leadsled Spectacular Car Show Sunflower Bank Softball Showcase KSHSAA 3A/4A State Volleyball As you can see, these events translate to an incredible amount of direct visitor spending in hotels, restaurants, convenience stores, retail shops and attractions. Salina must maintain and whenever possible enhance the facilities and services we can offer as a host city. It is vital that we do what We can to secure Salina's ability to host these events - they would certainly be of great loss to the business community. As an example: Visit Salina hosts the NJCAA Women's Basketball National Championship each March. Our current contract runs through 2012. Each year we make a significant investment, both in time and dollars, in this toumament. A task force of 200 people makes it happen, along with generous local businesses that support the effort through sponsorship dollars. In 2010 our attendance dropped significantly, which affected our anticipated income. At the same time, our expenses grew considerably. So, while our sponsorship dollars grew substantially from the year before, our net loss on the event was greater than anticipated. You might ask why we would host an event that is a net loss to our budget every year. We've done this because of the more than $613,000 in visitor spending generated throughout championship week each year by players, coaches, recruiters and media, in our local hotels, restaurants, retail stores, attractions, laundromats, drug stores, etc. Our challenge going forward will be to determine if it is possible to develop a bid that is competitive, attractive to the NJCAA, but that we can afford to support, especially considering the decreased overall budget We face. Conclusion As we look ahead, we see exciting opportunity for Salina's tourism industry. Developments such as enhancements at the Bicentennial Center, the addition of Kenwood Cove, bringing The SculptureT our Salina initiative to the Lee District, the expansion at Salina Community Theatre, and the vast potential of the proposed future River Development are all very exciting. We look forward to our continued partnerships with the City of Salina, and the business community in promoting all that Salina has to offer. Salina Area Chamber of COl1u'nerce Visit Salina Tentative Budget -2011 Preliminary Budget 2011 . REVENUE Project Activities SJBB 60,000.00 High School Basketball High School Football 21,000.00 High School BasebalVSoftball 20,000.00 High School Wrestling 1,300.00 Subtotal Project Activities 102,300.00 Transient Guest Tax 600,000.00 Transfer Visit Salina carryover from prior year SOl Support Visit Salina Budget $ 702,300.00 EXPENSES Project Activities . ACIvertising/Signage 52,000.00 Convention Marketing 18,000.00 Convention Services 17,000.00 Tourism Marketing Tourism Marketin'g 16,000.00 1-70 Association 4,200.00 TIAK 2,000.00 Regional Marketing KATTlWild West 1,000.00 Visitors Guide. In Room Pub 750.00 Tour BrOchure/Cards 6,000.00 Sports & SpeCial Events Gen. Sports & Special Events 18,500.00 . High School Basketball 3,200.00 High School Wrestling 800.00 High School Football 20,000.00 High School Baseball/Softball 17,000.00 SJBB 86,000.00 ASA & AFA Softball 6,000.00 Special Projects Hospitality Services 1,500.00 Smoky Hill River Festival 5,000.00 Visit Salina Organization Dues 3,000.00 Artspace Calendar of Events (Newsletter) 2,000.00 Total Project Activities Expenses $ 279,950.00 Administration & General Expenses 33,000.00 Staff Expenses 364,000.00 Building Expenses 34,000.00 TOTAL EXPENSES $ 710,950.00 INCREASE/DECREASE IN NET ASSETS $ (8,650.00) tGT. Cultural Marketing $ 99,960.00 TGT - Kenwood Mktg $ 39,984.00 Designated TGT Funds Flow In: $ 139,944.00 FUND ONE: Cultural Arts Mktg PlahEnh $ 79,968.00 FUND TWO: Cultural Art Reg'l Mktg Grants $ 19,992.00 Kenwood Marketing $ 39,984.00 Designated TGT Funds flow out: $ 139,944.00 . . . . Memo Date: To: May 27,2010 Salina Economic Development Incentive C()uncil members, Rita Diester, Jason Gage and Tim Rogers MEMO RE: Ptojeet Opel) Subject: Pl'oieet Description Project Open is the entrepreneurship development ill.itiative of the Salina Area ChaIllber of Commetce and Salina Downro\Vn Inc. Volunteers and staff from the chamber and SOl, City of Salina, Ransas Sma)) BUsiness Development Center and N()rthcentral Regional Planning Commission also participate as Project Open leaders. In addition volunteers from the chamber board, 8DI volunteers an~ minority owned businesses are members of the Project Open steering committee. Eligible Applicants Eligible applicants must have c()mpleted Entrepreneur Training, which includes an approved training program and completing or updating a business plan, prior to applying for Business Development Funds. No application for Business Development Funds will be accepted without Steering Committee confirmation of successful completion of Entrepreneur Training. AppliC3litS 1I1Ust own an existing business or be developing a business concept they intend to locate in Saline County. Pl"Oject Objectives The BUsiness Development Funds are intended to accomplish two objectives, per the Sillina Economic Development Strategic Plan, adopted by the City of Salina and the Salina Area Chamber of Commerce: 1. Increase the ability of the finn to attract customers that are currently not in the SAlina ttultket. This will increase the amount of trade and commerce occurring in Salina via llew business activity. 2. Increase the ability of the finn to retain customers that are currently leaving the Salina market to purchase the product or service. This will increase the amount of trade and commerce occurring in Salina via better retentiOn of business activity that should occur in Salina but doesn't. Eligible use of fimds l. 2. 3, 4. 5. 6. 7. Continuing Education Professional Services Brick & Mortar Improvements Marketing Equipment critical to implementing the business plan Additional product lines or major product line expansion Additional or significantly expanded services . Funding Criteria Financial Soundness Owner Operator Experience Business Plan Potential Economic Impact Project Open funding on businC5S Ownersl3i'd party funding Future prospects for growth Quality of life impact 20 points 15 points 15 points 10 points 10 points 15 points 10 points 5 points Since its ineeption, dozens of entrepreneurs have received training and several have opened the doors of their business in Salina. Program Open received $45,000 of SEDIC support for the period for 3.1.08 to 2.28.11. The first $45,000 ofSEDlC funds were leVeraged to $179.061 of regional and state funds under the control of Project Open. Of the $45,000, the rUSt $14.863 awarded to entrepreneurs leveraged $295,352 to initiate several projects. Additional State orKansas funding bas been secured to provide multiple ways for Project Open recipients to financially support applicants. In 2009, SEDlC received an update from Project Open volunteers and staff leaders. Some ofthe program criteria information was adjusted io better reflect program intent and to address issues that Were unforeseen at the start of tbe program. . A verbal request for $125,000 was made during the 2009 Project Open update to SEDIC. It was proposed that the $125,000 of funds be provided over a five year period starting 3.1.11. Summary of ProjeCl Open Applicants This information summarizes each of the businesses that have applied for Project Open funds. [nfonnation about the status of the project is detailed. including the status of projects that applied for Project Open support but did not receive funding. 2 . ~d Quarter 2009 . Business Quilting Bee Thiessen-Elise AlIstar Automotive JMH Cleaning Cut and Dye ADPlication Date May 2009 May 2009 May 2009 May 2009 May 2009 Grants $4,000 $4,500 $4,000 $2,263 Not Funded StartuD Kansas $6,000 $6,750 $6,000 $3,544 Not Funded Quillin!! Bee -"-all existing and established business used the $10,000 of funding to obtain a point of sale computer software application. This has enabled the business to better track sales, inventory and customer purchases. The company estimates that sales to out of town customers have increased 33 % in the past year due to better marketing made possible by the tracking system. Business reports sales steady to better than last year to date. Startup Kansas Loan admin,istered by Salina Downtown Inc. for repayment to Network Kansas Loan is current. Thiessen-Elise - A new business in the Lee District used the $11,250 of funding to upgrade the marlc.eting of the business and supply additional working capital for product expansion. The business is growing steadily and now employees 12 full time hairdressers plus the owners. The business is tracking approximately 40% of their sales to out oftown customers. Startup Kansas Loan administered by Salina Downtown Inc. for repayment to Network Kansas Loan is current. . Allstar Automotive LLC - a new business to be placed on Pacific Street in north Salina The location selected by the business owner containing an existing paint booth did not turn out to be usable as originally thought and several alternate locations were considered. All required a considerable increase in startup costs which could not be covered by additional private capital, bank loans or grant funds. The owner has placed this project on temporary hold until sufficient capital can be raised to allow the business to start. Awarded Startup Kansas funds were released back to the state and SEDlC Grant funds were returned to the Project OPEN Fund for reuse. Project OPEN Staff continues to work with the business owner to bring the environmentally friendly business to market. JMH Cleaninl! - A business that had been in existence for 6 months prior to OPEN assistance. The business used the funds to purchase equipment necessary for the expansion of services to the market. This busineSs continues to grow slowly serving businesses in four counties at this time and adding to his existing customer base. Business is holding steady at this time but additional ,contracts are pending. Startup Kansas Loan administered by Salina Area Chamber of Commerce staff for repayment to Network Kansas Loan is current. Cut & Dve - A styling salon opened in Ktaft ManOr Shopping Center. Owners applied for funds to be used for working capital. The business did not receive funding as it did not meet the Project OPEN guidelines. The business closed 4 months after opening. It closed due to non business reasons. 3 . r Quarter 2009 Business Anplication Date New Boston August 2009 Ralph's Lawn Service August 2009 Max Stewart LLC August 2009 Jack and Jill's August 2009 Ergo-Write August 2009 Funded Not Funded Not Funded Not Funded $3,000 $2,500 Startun Kansas Not Funded Not Funded Not Funded $4,500 $3,750 . New Boston Creative Solutions; Ralph's Lawn Service and Max Stewart LLC were all deemed to not meet the Project OPEN Program Objectives and were not eligible for Grant Funding. If they do not meet the Grant funding guidelines they cannot access the Start up Kansas funding guidelines. New &stOD Creative SolutIons - is a Manhattan Kansas based marketing finn doing business in Salina at this time. They plan to open an office in Salina sometime in the next 18 months. If they had received the funding requested they would have opened an office immediately. Their future plans are to someday have an office in Salina. Ralpb's Lawn Service - is a five year old existing business that wanted grant funds to improve his equipment, property and to purchase a security system to protect his equipment. Business is still open and operates 9 months of the year. No expansion of the business is planned at this time. Max Stewart LLC - was anew artist studio located in the Lee District. The business Was the outlet for the photography of Mr. Stewart who specialized in landscapes. The use of funds was to pUI'Chase equipment to improve his ability to make higher qualit)' photos fot the market. Business opened two months prior to Bl'plication, Business llloved from its downtown location after three more months. It is operating from the owner's bottle at this time. Jack and Jill's Salon - This is a new business in the Lee District that specializes in children's haircuts using special chairs and lifts made for children to sit and play in while they are getting their hair cut. Funds ate being used to purchase equipment and for marketing. Business suffered a flood one month after opening and was closed for another month during repairs. The shop Was fully insured and it reopened in December of2009. Business has been increasing and the applicant hopes to add another person in the spring af20lO. Salina Downtown Inc. is the administrator of this loan and the loan is current. . Erl!o-Write - this is a small start up ll1anufacturer of an adjustable whiteboard application. Mr. Garcia has hired a sales consultant to assist in the marketing of the product. Units are being made by KASA in Salina at a reduced cost of goOds sold and an updated web site is being created. A minimum number of board holders are being manufactured and stockpiled as the company works its marketing plan. Sales are behind for the year according to the original business plan but not unexpected in this slow economy. Salina Area Chamber of Commerce administers this loan and the loan is current. 4 . .;h Quarter 2009 . Business ADolication Date Little Caesars Pizza Nov 2009 Funded Not Funded Startup Kansas Not Funded Little Casen - a new Pizza Franchise opening in Salina. After a staff review, the application was not submitted to the financial review board for consideration as the consensus was the business could not meet the program objectives for funding. 1" Quarter 2010 Business Salina Running Company Compass Medical LLC Am>lication Date Feb 2010 Feb 2010 Funded $5,000 SEDlC $3,000 sa. E-Communitv $7,500 $4,500 Salina RUBBin!! ComoallV - An existing ManhattarJ Kansas business, decided to expand into the Salina Market as they had a very good cliental driving to Manhattan to purchase special running shoes. Manhattan Running Company DBA Salina Running Company opened May 3, 2010 serving Salina customers with one full time and 5 part time employee's. The Salina Area Chamber of Commerce is the administrator of the E-Cornmunity Loan. Repayment starts on JIDle S, 2010. . Comoass Medical LLC - A new business to Salina, the applicant will use the funds awarded to purchase equipment needed to serve a military medical need. The business is to be housed at the Salina Airport. The business is a military medical contract supplying local medical and dental services to military personnel prior to their deployment overseas. Contract is for two years. Funds are to be disbursed upon receipt of signed award lettet from the military. The company will employee from 4 to 7 medical personnel hired under contract from the local community. the Salina Area Chamber of Commerce is the administrator of the E-Community Loan. Repayment start date has not been assigned yet. rd QUilrter 2009 Business Allplication Date Hernandez Enterprises, LLC May 2010 Treasurers of the Heart May 2010 Funded $ 800 sa. $1,700 SEDIC E-Communitv $2,400 $2,550 Heruandez.Euterprises. LLC - DBA.. Great Ptay's Music Program a six month old business located in Salina Downtown area which supplies Musical instruction to both local and out of county students currently serving students from McPherson; Newton and Beloit, KanSas. Teresa Hernandez holds a Kansas teaching license. She is a Master Cellist and holds positions with the Salina Symphony and is adjunct faculty member ofI'<ansas Wesleyan University. Ms. Hernandez also is a licensed Psychotherapist DBA - Hernandez Counseling and operates an office co-located with her music facilities. This creates two full time jobs and one part time job in three years. The Salina Area Chamber of Commerce is the administrator of tile E-Community Loan. Repayment start date has not been assigned yet. 5 . Treasurers of the Heart - Owned by Tara Batman, will provide seamstress services to Salina and the surrounding areas. The business will do alterations, custom sewing and quilting of aU kinds. Business was fonned in April of2010 and will operate Homthe home of the owner. The business will provide teaching, counseling, class's workshops and an e-bay sight. The Salina Area Chamber of Commerce is the administrator of the E-Community Loan. Repayment start date has not been assigned yet. . . SG - Supplemental Grant Funds derived from the sale of State Tax Credits Unrestricted Much of the success of Project Open has been the ability of recipients to leverage Project Open support to gain additional funds to support their business. The chart below details the ability of recipients to secure additional funds. To date, every Project Open applicant has received 100 percent of Start Up Kansas funds they have applied for. THE LEVERAGING IMPACT OF PROJECT OPEN FUNDS PRomer Project SOl Private Slart Up Eo- Bank Tolal OPEN prOI!Ja1nS Investment KallSas Coinmunitv Finllllcio2 Investment 1 $ 2,363 SO $ 4,433 $ 3,544 5 10,340 2 5 4,500 SO $ 25,800 $ 6,750 5103,200 $140,250 3 $ 4,000 SO $ 4,762 5 6,000 S 14,762 4 5 4,000 $0 $ 5,000 5 6,000 5115,000 S130,000 5 S 3,000 $0 $ 29,014 54,500 $ 36,514 6 S 2,500 $0 $ 14,994 $ 3,750 $ 21,244 7 $ 4,430 $ 569 5 15,000 $ 7,500 $ 58,000 $ 81,499 8 $ 3,000 $0 S 6,094 $ 4,500 S 66,000 $ 79,594 9 $ 800 $800 $ 8,700 $ 2,400 $ 12,700 10 S 1.700 $0 S 18.883 $ 2.550 S 23.133 Total 530.293 51.369 5132.680 $30.544 516.950 5342.200 5554.036 Local Investments: SEDlC Grant funds $26,493 . Supplemental Grant funds $ 3,800 Salina Downtown Inc. $ 1,369 Loan Funds Start Up Kansas Salina Downtown Ine E-Community $30,544 $ 800 $16,950 Value Bank financing Private investment Total investment SEDIC Leveraged Value SEmC Leveta2ed Value $276,200 I $26,493 = $10.43 for every SEDIC $1 granted $128,880 I $26,493'" $ 4.86 for every SEDlC S1 granted $462,742/ $26,493 = $17.43 for every SEDlC $1 granted 6 . . Number of participants In the Entrepreneur Training - 42 participants have completed training since January 19,2009 via the Kansas Small Business Development Center. 9 people have completed training via the FastTrac@ program. Number of business start-ups from tbe Entrepreneur Training participants - Since January19,2009 16 new businesses have opened and 7 additional businesses in the process of opening. Number of jobs crtaled - Project OPEN has had contact and/or worked with a total of 134 interested parties since January 19, 2009. The 10 businesses that have received Project Open funding have created 12 full time and 24 part time jobs. 7 full time jobs and 25 part time jobs were created at the remaining 5 businesses that did not receive Project Open funding. Jobs Retained/Created/Proposed BUSINESS DEVELOPMENT STAGE Start-up business Existing business Still in concept stage Number of Business 20 22 68 Full Time 0/26/5 24/214 nla Part Time 0/62/0 8/0/10 nla Anticipated jobs retained, created or proposed in the businesses which have submitted completed intake applications. The numbers of anticipated jobs will change daily as applications are received. PLEASE NOTE: First annual report has NOT been submitted as of the preparation date of this report Timeline $125,000 ofSEDIC funds will be used by Project Open over a five year period starting 3.1.11. . Prolect Budl!et Total project income: $ 45,000 - Initial SEDIC funds $ 30.000 - NCKRPC (to be used for Project Open marketing & administration) $ 95,000 - State of Kansas ~Comml1nity program $ 9.067 - Supplemental State or Kansas su~port $179,067 - Total Project Open incoDle secured sl> tar $125,000 - Additional SEDIC funds sought $ 25,000 ~ Federal Home Loan Balik funds applied for 5120.000 - State arKansas E-Cottununity funds (will be applied for) $270.000 - Potential Additional Total Project Open support $449,067 - Potential Project Open resources to support entrepreneurs SEDlC Grant RequeSt $125,000 of SEnIC funds are requested payable over a five year period starting 3.1.11. 7 . Recommendations Chamber, city, county. airport authority staff are unanimous in our conclusion to recommend the approval of a $125,000 SEDlC grant for the growth of the Project Open entrepreneurship development initiative. Thank you for your favorable consideration of the Project Open SEDlC grant proposal. . 8 . . .