Okaloosa County BOCC — April 28, 2016 — IV. r. LEMF Guidelines — reading text

TOURIST DEVELOPMENT DEPARTMENT MEMORANDUM DATE: April 28, 2016 TO: Tourist Development Council FROM: Ed Schroeder, Tourist Development Department Director SUBJECT: Local Event Marketing Funding Guidance STATEMENT OF ISSUE: The underlying principal behind the Local Event Marketing Funding program is that the event must produce an acceptable ROI measured primarily in room nights. After years of processing applications and payment request using a variety of formulas, it is evident that an acceptable verification of room nights is unachievable. If the program is to be continued, this incompatibility between principal and actual practice must be resolved and may lead to redefining the purpose of the program. BACKGROUND: At the March TDC meeting, staff was directed to identify which counties no longer offer special event funding. Gulf Shores, AL - the Emerald Coast’s closest competitor considering location, structure, and size - does not offer special event funding. Four of twenty counties that responded to a survey conducted a few years ago by the Florida Association of Destination Marketing Organizations (FADMO) do not offer special event funding (Broward, Levy, Orange, and St. Lucie). Policies and funding calculations vary widely, and many counties offer different programs for special events, sporting events, and cultural events. Generally speaking, the greater the maximum funding, the more rigorous the application and documentation requirements. TDC discussion and direction with respect to the importance of the following factors is requested to enable staff to draft a revised Local Event Marketing Funding policy for TDC consideration:  Seasonality  Event Duration (number of days of scheduled activities)  Attendance (number of lodging visitors, day trip attendees, local residents)  Lodging (number of taxable room nights)  Documentation (verification of attendance, room nights)  Growth (year-over-year increase in attendance, room nights)  Self-Sustainability (decreasing reliance on TDT funding year-over-year)  Matching Funds Requirement (could be cash or in-kind)  Revenue and Expense Information (could be audited or unaudited)  Application Evaluation (impartial formula or subjective committee review) OPTIONS: For TDC discussion and staff direction. RECOMMENDATION TO BCC: N/A, for staff direction only. As an example, the chart below illustrates the variability in maximum funding levels from policies that generally approximate Okaloosa’s existing local event marketing funding program. Data taken from aforementioned FADMO survey. County Funding Cap per Event Application Broward does not offer special event grants Levy does not offer special event grants Orange does not offer special event grants St. Lucie does not offer special event grants Escambia $15,000 (marketing & promotional campaign created and implemented on behalf of event; no funds distributed directly to event) Madison TDC discretion Walton $50,000 Signature $10,000 Experience Leon $6,500 Duval $1-$5 per documented room night Flagler $10,000 Nassau $50,000 Signature $12,500 Experience Pasco 1/3 of total funds available for this purpose Pinellas $250,000 or 20% of budget for this purpose – Category I (25K+ attendees, 10K+ room nights, nationally televised) $100,000 or 10% of budget for this purpose – Category II (15K+ attendees, 5K+ room nights) Osceola 10% of budget for this purpose Collier $25,000 Lee % of requested amount funded based on application score (100% match required) Sarasota $7,500/$25,000/$50,000/$87,500 caps depend on annual operating expenses of most recent financial statement Dade $40,000 (minimum 75% match) Monroe $15,000 cap - $35,000 cap Destination – varies by district $50,000 cap - $120,000 cap Turnkey – varies by district