FEDRAC PKT 05-11-2004
City of Federal Way
City Council
Finance/Economic DevelopmentfRegional Affairs Committee
May 11,2004
5:00 p.m.
City Hall
Mt. Baker Conference Room
AGENDA
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMITTEE BUSINESS
A. Approval of the April 13, 2004, Minutes
B. Korean Sports and Cultural Festival
C. Consultant Services regarding the Potential for a Commercial
"Lifestyle Center" in Federal Way City Center
D. Review and Comment on the Draft PowerPoint Economic
Development Messaging Presentation
Action
Action
Action
Information
4. OTHER
5. FUTURE AGENDA ITEMS
6. NEXT MEETING: June 8,20045:30 p.m.
7. ADJOURN
Committee Members'
Eric Faison, Chair
Jeanne Burbidge
Jim Ferrell
City Starr
Patrick Doherty, Deputy Director, CDS
Robin Baker. Office Technician II
253-661-4000 Ext. 0
K:\FEDRAC - Ecan Dev\211114 . Agendas & Summaries \05. I 1-114 FEORAC Agenda.dac
MEETING MINUTES
In attendance: Committee Members: Council Members Eric Faison, Chair, Jim Ferrell; Jeanne Burbidge;
Deputy Mayor Linda Kochmar; City Manager David Moseley; Assistant City Manager Donna Hanson;
Deputy Director of Community Development Services Patrick Doherty; Management Services Director
Iwen Wang; City Attorney Pat Richardson; Human Resources Manager Mary McDougal; Office
Technician Robin Baker; and Federal Way Mirror Reporter Erica Hall.
1. CALL TO ORDER
Chair Faison called the meeting to order at 5:27 pm.
3. PUBLIC COMMENT
There was no public comment.
4. COMMITTEE BUSINESS
A. Approval of the March 9, 2004, Minutes - It was m/s/c to adopt the March 9, 2004, minutes as
presented.
B. Economic Development Messaging Strategy - Mr. Doherty went over the background and
outlined the proposal whereby the format of this strategy would be envisioned as a PowerPoint
presentation. The key message would portray how public funds spent on economic development
would be an investment in the City's future economic engine, helping to raise our overall revenue
base, thereby maintaining City services and quality of life, while keeping taxes low.
Mr. Faison commented that he'd prefer to see included the Comp Plan's City Center vision, as
well as recent public opinion surveys that support a more defined and active City Center. Mr.
Faison, Mr. Ferrell and Ms. Burbidge agreed that the presentation should start out broadly, as it
does, but end up focusing in on a range of potential City Center related strategies. Mr. Ferrell
offered his desire to include mention of a "town square" open space and related redevelopment as
one of the potential City Center redevelopment scenarios. Ms. Kochmar expressed caution with
the wording so as not to sound as if we are hoping to expand taxes when we talk about expanding
revenue. She also mentioned concern over potentially taking on too many large projects at one
time, what with the road construction projects, City Hall move and Community Center projects
already occupying stafftime and energy, as well as affecting the community.
All members present expressed a desire to be clear that this presentation is for the purposes of
soliciting input, response and ideas, and that this is a process that will continue to include public
involvement, with no decisions yet made. It was m/s/c to send amended proposal to the next
Coune i I meeting.
FEDRAC Minutes
April 13. 2004
P~el
C. Discussion of Public Outreach Component of City Center Redevelopment Strategies
Work Plan - Mr. Doherty shared the draft public-outreach component of this Council-approved
work plan, indicating that it included the notion of an ad hoG committee to present draft strategies
and other ideas for professional/expert input and/or advice. He offered to the committee members
that perhaps they would like to diseuss the future eommittee's composition. The members agreed
that the Economic Opportunity Response Team "executive team" that was formed last year would
be an appropriate group to call for this purpose. There were two suggestions to augment the
existing team: The addition of key city center property owners and a representative each from
among the eleeted officials from the Fire, School, Library and Lakehaven Utility Distriets. The
committee members also suggested that the draft PowerPoint presentation discussed earlier
(related to the economic development messaging strategy) eould be shared with this ad hoc
eommittee before it is taken "on the road" to the general publie. As this was up for discussion
only, no action was taken.
D. Possible Ombudsman Job Functions - There was a consensus on the main job function being
that of a liaison between businesses and the City, since eaeh department deals with complaints
from our citizen's via Citizen Action Request (CAR) forms it was redundant ofthe ombudsman's
position to be doubling up on the same efforts. Mr. Ferrell noted that out of the fourteen possible
funetions, the first six and the last three were the ones most appropriate for the position. Although
there was great response towards having this position available, it was agreed upon to put the
decision on hold for reconsideration after there was a presentation of the eurrent CAR proeess.
5. FUTURE MEETINGS
The next scheduled meeting is May I 1,2004,5:30 p.m., in the Mt. St. Helens Conference Room.
6. ADJOURN
The meeting adjourned at 6:40 p.m.
K:IFEDRAC - Lcon [k\\2004 - Agendas & SummarieslMarch ') ~(J(I-I. Summary. doc
FEDR/\C Minute"
.\I"I! I ~. 2004
Page 2
CITY OF FEDERAL WAY
MEMORANDUM
Date:
To:
Via:
From:
Subject:
mic Development and Regional Affairs Committee
ity Manager
uty Director, Community Development Services
ultural Festival
BACKGROUND
Pursuant to its City Council-approved 2003-2004 work plan and budget, the Lodging Tax
Advisory Committee (L T AC) hired events planning consultants to study the local/
regional events "market," identify any event-market niches that Federal Way could
potentially fill, and propose two or three new major annual events designed to attract
visitors to the City from throughout the region and beyond.
The events planners identified two community strengths around which new events could
be formulated: amateur sports and the community's sizable and recognized Korean-
American population.
As you know, related to the amateur sports concept, the City Council has approved
expenditures associated with hosting a Reebok Women's Triathlon in September 2004
and 2005, with an option to continue that event in future years.
Korean Sports and Cultural Festival
After studying the regional event market, our events planning consultants discovered that,
while dozens of ethnic-themed cultural events exist throughout the region and state, no
sizable event exists devoted to Korean and Korean-American culture and sports. In fact,
very few such events exist in the nation, with festivals in Honolulu and New York being
the two major exceptions, in addition to more focused events, such as a film festival in
Los Angeles.
Federal Way has one of the highest proportions of Korean-Americans among its
population and serves as a recognized cultural, business, and geographic hub of the
Korean-American population that ranges chiefly from Edmonds to Lakewood. In
addition, Federal Way has a prosperous and active relationship with our Korean sister
city, Donghae, as well as established personal and professional connections with both
local and in-country Korean commercial and government entities.
Memo to FEDRAC, 4/4/04
Korean Sports and Cultural Festival
Page 2 of 5
For these reasons, the events planning consultants fonnulated a concept for a Korean
Sports and Cultural Festival, which was presented, with increasing levels of detail, to the
Lodging Tax Advisory Committee from October 2003 through February 2004.
Festival Concept
The conceptual framework for this event can be summarized as follows:
.
Fonn a steering committee oflocal and regional Korean community and business
leaders, as well as non-Korean community and business leaders to oversee
fonnulation of event "concepts" and programmatic elements, as well as lead local
PR and volunteer efforts. Approximately 12 members.
Three-day annual event, starting in Spring 2005.
"The Workshop" events planning and production company would produce the
first-year event. A local half-time staff person and volunteer committee would
participate throughout and learn about the planning/production process. The
Workshop would thoroughly document their work and leave a written guide book.
After year one, The Workshop would hand over the production to a local event
organization (likely an incorporated, 501(c)3), but would continue to serve on a
consultant basis to assist at the discretion of the local organization.
A group of approximately five local volunteer leaders would be needed to
coordinate volunteers to support sports, arts, film and general volunteer activities.
During the three-day event a maximum of 14 volunteer positions in four-hour
shifts would likely be needed, with lesser amounts (7 positions over two shifts, 5
positions over two shifts, etc.) at lower-demand times during the event.
The event would include events and exhibits related to both traditional and
popular culture, sports and commerce (trade).
Cultural events would include music, dance, art, film, cuisine, etc. Korean talent,
whether from within the US or from Korea (such as traditional dancers, popular
music figures, celebrities, etc.) would be sought. Headliner events (such as a pop
music concert, major dance troupe perfonnance, film festival) might be separately
billed and ticketed.
Sports events would include both traditional and popular sports, ranging from Tae
Kwon Doe masters exhibition matches, Korean-American soccer championships
(uniting regional teams from across the US), Korean sports stars (golf, soccer,
swimming, etc.). Headliner events could include soccer play-offs, exhibition
soccer match with Korean celebrity, golf tournament with celebrated Korean
athletes, etc.
Trade component could include trade show, trade delegations/conferencing,
international trade/business links, etc.
The event would be headquartered at a festival hall-style hub (likely a large tent
especially designed for the event), which would include a performance space,
exhibits, etc., and other events would be held throughout the City - both indoors
and outdoors.
.
.
.
.
.
.
.
.
Memo to FEDRAC, 4/4/04
Korean Sports and Cultural Festival
Page 3 of 5
.
Attendance assumptions range from 5,000-10,000 the first year on to
approximately 20,000 or more by the third year. Ethnic/cultural events in Seattle
(e.g., Cherry Blossom Festival, Chinese New Year, Fiestas Patrias, etc.) routinely
attract 20,000 to 30,000 for weekend events of a smaller scale.
.
Budgetary assumptions and City of Federal Way contributions are summarized
for the first, second and third years in the following table (see "Sample Three-
Year Budget" table in Attachment A for details):
YEAR EXPENSES REVENUES CITY FUNDING
2005 $229,000 $53,000 $176,000
2006 $167,000 $127,000 $42,000
2007 $187,000 $162,000 $25,000
.
Key assumptions in budget:
0 Sponsorship monies (corporate, local and Korean): $30,000, $45,000 and
$55,000 for years 1,2, and 3, respectively
0 Grant monies (Korean govt., King Co Cultural Dev Authority, e.g.):
$16,000, $20,000 and $25,000 for years 1,2 and 3.
0 Year 2 initiate fee for weekend-long event pass (average ticket price of
$3.50, averaged between youth and adults prices)
Pros and Cons
Benefits of the Festival that have been expressed include:
.
Preliminary economic impact figures, based on direct spending by attendees only
(doesn't count purchasing and rentals for event production or multiplier effects):
0 Year I: $200,000
0 Year 2: $300,000
0 Year 3: $400,000
.
Enhanced community profile and image regionally and nationally. Could be a
"signature event" for the community.
Increase range of attractions for visitors and tourists.
Could increase Federal Way's role in Korean/Pacific Rim trade opportunities.
.
.
Liabilities related to this Festival for the City that have been expressed include:
.
No/little established track record in Federal Way for hosting/producing such a
large and complex event.
Use of all of saved-up lodging tax carry-forward revenues to produce first-year
event.
.
Memo to FEDRAC, 4/4/04
Korean Sports and Cultural Festival
Page 4 of 5
.
Concern over community's ability to muster up sufficient and reliable volunteer
organization to staff and eventually take over the event.
Concern over some of the assumptions. Will attendance grow? Will
sponsorships rise? Will a ticketed event work after first year?
Overall concern regarding sustainability of the event after the professional
producers hand over the event to the community (with their assistance as
consultants to the extent needed/affordable).
.
.
Previous FEDRAC Consideration
On 3/9/04 the FEDRAC Committee met to consider this issue and raised concerns over the
following issues: desire for a more complete presentation of the proposal (including potential
presence of the events planners who could answer detailed questions); the level of City (lodging
tax) funding projected as necessary; whether the work needed to produce this event can still
reasonably be accomplished in the remaining time; and the implications of draft State Auditor's
opinion that seemed to put into question whether the creation of events such as this would be an
allowable expenditure of lodging tax revenues.
Since that time, the City Attorney and Finance Director have had discussions with the State
Auditor's and Attorney General's Offices to try to clarify whether the expenditure for the event
would be appropriate. In mid-April the State Auditor's Office and the Attorney General's Office
responded that their position had changed. Instead the focus for their review would be to ensure
that communities employ an open and deliberative process for determining the expenditure of
lodging tax revenues (via a duly appointed lodging tax advisory committee); that such
expenditures continue to comport with the over-arching objective of promoting tourism; that such
lodging tax monies cannot be used to supplant general fund expenditures; and, that thorough
documentation of the decision-making process and associated expenditures be kept.
For this reason, staff believes that the proposed expenditure of lodging tax revenues to fund the
planning, creation and production of this or other events for the purpose of tourism promotion
would be permissible under State law, given the eaveats mentioned above.
Lastly, you will find attached a timeline that includes a break-down ofthe planning and
production activities between now and the tentative date of May 2005, with an indication of those
activities already accomplished or already in progress.
LTAC RECOMMENDATION
The LTAC reviewed and considered the Korean Sports and Cultural Festival over the
past several months, starting in October 2003 and ending at its annual retreat on 2/20/04.
The Committee's final recommendation to City Council was to approve the hosting of
this event in Federal Way and approve the expenditure of up to approximately $176,000
in lodging tax revenues to produce the first-year event. The Committee tentatively
identified that up to $170,000 of this funding would be available from carry-forward
funds within the Lodging Tax fund balance, available as of the end of2003.
This concept has been shared with several key community organizations who had the
following general responses: .
Memo to FEDRAC, 4/4/04
Korean Sports and Cultural Festival
Page 5 of 5
.
The Korean Consul General and his staff indicated enthusiastic support for the
idea, including an indication that the Korean government would likely have grant-
funding availability, although no official Korean government response has been
given. .
The Federal Way Korean Community Leaders expressed overwhelming support
for the event at their 12/18/03 quarterly meeting, including an enthusiastic show
of hands when asked who present would be willing to volunteer over the next year
and a half to produce this event.
The Federal Way Chamber expressed support and several volunteers surfaced at
their December Economic Vitality Committee meeting.
.
.
COMMITTEE ACTION
I. "I move to recommend that City Council approve the hosting of a Korean Sports
and Cultural Festival in 2005 and approve the expenditure of up to approximately
$176,000 in lodging tax revenue towards this event and to place this
recommendation on the May l8, 2004, City Council agenda."
2. "I move not to approve the use of lodging tax revenues for the hosting of a
Korean Sports and Cultural Festival in 2005 and to place this recommendation on
the May 18, 2004, City Council agenda."
APPROVAL BY
COMMITTEE:
Committee Chair
Committee Member
Committee Member
Timeline
Spring 2005, Korean Sports & Cultural Festival
OCTOBER - DECEMBER, 2003
Focus - Start.up planning
Preliminary budget structure devised - DONE
Set planning team agenda for the year - DONE
Establish start-up event grid & timeline - DONE
Meet with Korean Consulate - DONE
JANUARY - MAY, 2004
Focus - Define the event scope & program & advisory group
Establish event assumptions and start up program narrative. - IN PROGRESS
Revise event assumptions and program narratives. - IN PROGRESS
Set event budget and update schedule. - IN PROGRESS
Establish sponsorship concept - DONE
Define volunteer organization, leadership and communications method - DONE
Target sponsor list -IN PROGRESS
Define planning staff roles and responsibilities - DONE
JUNE - AUGUST, 2004
Focus - Finish big picture planning
Establish event assumptions and refine program narrative
Revise event assumptions and program narratives
Make key contacts for program elements (local, national, international)
Hold volunteer committee meeting & establish timeline for committee.
Set event budget and update schedule
Determine budget line item accountability
Meet with key volunteers in small-groups
Establish initial space use plan & décor
Define sponsorship plan and benefits
Determine key volunteers and master volunteer list.
Develop Graphic Design plan & hire designer
Target sponsor list
Develop media plan & community awareness plan
Develop web-site and registration plan
Develop English-Korean language plan
Final event budgets established.
Write sponsorship proposals
Define tourism plan in regional area
Planning team finalize direction for event theme & aesthetics
Develop ticket-price structure and scale venues as needed.
Determine financial control, cash flow estimate and payment policy.
Create contract format and requirements (I/C, w-9, SS, payment terms)
Define program grid and plan of attack
Planning document by The Workshop.
Page 1
SEPTEMBER - OCTOBER, 2004
Focus - Prepare for final producing push
Timeline & budget updates.
Confirm graphic design
Final marketing plan
Put tourism plan in effect.
Prepare descriptions of events and activities
Develop site plan.
Contract artists & performers
Develop performance stages, placements and tech specs
Design the backstage space: dressing rooms, production offices, catering, sponsor area, and other
needs.
First draft of venue drawings.
Develop tix sales plan.
Establish on-site sponsorship fulfillment plan.
Define volunteer organization, hospitality and other needs.
Develop merchandise sales plan if needed.
Invite speaking guests and for opening program (Mayor, other elected, etc)
Revise meeting dates, timelines & goals (advisory group & City)
NOVEMBER - DECEMBER, 2004
Focus - Ramp up production planning
Develop guest services plan incorporating coordination of guest arrivals, registration, coat check, gift
distribution, hospitality, and communications.
Press packets complete
Billboard plan
Site & Perimeter plan.
Arrange hotel accommodations as required.
Create credential plan.
Develop plan to handle government officials and community relations.
Develop sponsorship hospitality areas as needed.
JANUARY - FEBRUARY, 2005
Focus - Tie together guest services, artistry, production & promotional plans
Begin initial PR campaign.
Determine event staff, advisory and City assignments.
Hold all-staff meeting to review assumptions and overall event plan to make sure we are on-track
towards achieving the highest quality, and all of goals for the event.
Develop food service plan as needed.
Parking plan.
Define on-site sponsorship plan.
Develop media production plan (camera truck parking, on-site shot locations (with audio feeds and
power as needed), and a press interview area, if requested.
Determine performing artist's photo and video restrictions during the artist advance process.
Arrange artist hospitality and dressing room requirements.
Arrange artist meet and greet with client VIPs or guests if possible.
Planning document by The Workshop.
Page 2
Schedule cargo vans, forklifts and equipment trucks.
Establish admissions & crowd management policies
Define signage plan
Arrange artist transportation if required.
Load-in and load-out plan.
Determine communications plan.
Determine labor & stagehand schedule.
Develop initial guest list and comp plan.
Define security plan.
Define crisis management plan
Begin community multi-language signage plan
MARCH, 2005
Focus - Stay on budget, push the quality higher
Regional print ads.
Vendor bids.
Procure permits.
Determine power distribution plan.
Design security schedule if needed
Establish dress wear standards for crew, staff and servers
Select food & beverage menu as needed
Select table décor, chairs, coverings
Select evenings colors and determine depth of décor
APRIL, 2005
Focus - Fully commit the production and focus the programs
Local & regional print ads
Draft & final ESO
Arrange parking for vendor vehicles and VIPs.
Create event credentials
Produce event and sponsor signs as needed.
Advance talent
[TENTATIVE MAY. 20051
Focus - Fulfill and the Event
Radio campaign TV spots
Procure site & programming equipment, supplies and rentals.
Distribute ESO to planning staff
Train staff
Event
JUNE,2005
Focus - Wrap it up, close the books and say thanks
Wrap-up/Evaluations
Financial wrap-up, close the books
Thank-you's
Distribute last monthly progress report to planning staff
Planning document by The Workshop.
Page 3
CITY OF FEDERAL WAY
MEMORANDUM
Date:
To:
Via:
March 2, 2004
Finance, Economic ev~opment and Regional Affairs Committee
David H. osele, anager
Patrick Doherty, 'eputy irector, Community Development Services
Korean Sports and Cultural Festival
From:
Subject:
BACKGROUND
Pursuant to its City Council-approved 2003-2004 work plan and budget, the Lodging Tax
Advisory Committee (L T AC) hired events planning consultants to study the local/
regional events "market," identify any event-market niches that Federal Way could
potentially fill, and propose two or three new major annual events designed to attract
visitors to the City from throughout the region and beyond.
The events planners identified two community strengths around which new events could
be fonnulated: amateur sports and the community's sizable and recognized Korean-
American population.
As you know, related to the amateur sports concept, the City Council has approved
expenditures associated with hosting a Reebok Women's Triathlon in September 2004
and 2005, with an option to continue that event in future years.
Korean Sports and Cultural Festival
After studying the regional event market, our events planning consultants discovered that,
while dozens of ethnic-themed cultural events exist throughout the region and state, no
sizable event exists devoted to Korean and Korean-American culture and sports. In fact,
very few such events exist in the nation, with festivals in Honolulu and New York being
the two major exceptions, in addition to more focused events, such as a film festival in
Los Angeles.
Federal Way has one ofthe highest proportions of Korean-Americans among its
population and serves as a recognized cultural, business and geographic hub of the
Korean-American population that ranges chiefly from Edmonds to Lakewood. In
addition, Federal Way has a prosperous and active relationship with our Korean sister
city, Donghae, as well as established personal and professional connections with both
local and in-country Korean commercial and government entities.
Memo to FEDRAC, 3/2/04
Korean Sports and Cultural Festival
Page 2 of5 '
For these reasons, the events planning consultants formulated a concept for a Korean
Sports and Cultural Festival, which was presented, with increasing levels of detail, to the
Lodging Tax Advisory Committee from October 2003 through February 2004.
Festival Concept
The conceptual framework for this event can be summarized as follows:
.
Form a steering committee of local and regional Korean community and business
leaders, as well as non-Korean community and business leaders to oversee
formulation of event "concepts" and programmatic elements, as well as lead local
PR and volunteer efforts. Approximately 12 members.
Three-day annual event, starting in Spring 2005
"The Workshop" events planning and production company would produce the
first-year event. A local half-time staff person and volunteer committee would
participate throughout and learn about the planning/production process. The
Workshop would thoroughly document their work and leave a written guide book.
After year one, The Workshop would hand over the production to a local event
organization (likely an incorporated, 501(c)3), but would continue to serve on a
consultant basis to assist at the discretion of the local organization.
A group of approximately five local volunteer leaders would be needed to
coordinate volunteers to support sports, arts, film and general volunteer activities.
During the three-day event a maximum of 14 volunteer positions in four-hour
shifts would likely be needed, with lesser amounts (7 positions over two shifts, 5
positions over two shifts, etc.) at lower-demand times during the event.
The event would include events and exhibits related to both traditional and
popular culture, sports and commerce (trade).
Cultural events would include music, dance, art, film, cuisine, etc. Korean talent,
whether from within the US or from Korea (such as traditional dancers, popular
music figures, celebrities, etc.) would be sought. Headliner events (such as a pop
music concert, major dance troupe performance, film festival) might be separately
billed and ticketed.
Sports events would include both traditional and popular sports, ranging from Tae
Kwon Doe masters exhibition matches, Korean-American soccer championships
(uniting regional teams from across the US), Korean sports stars (golf, soccer,
swimming, etc.). Headliner events could include soccer play-offs, exhibition
soccer match with Korean celebrity, golftoumament with celebrated Korean
athletes, etc.
Trade component could include trade show, trade delegations/conferencing,
international trade/business links, etc.
The event would be headquartered at a festival hall-style hub (likely a large tent
especially designed for the event), which would include a performance space,
exhibits, etc., and other events would be held throughout the City - both indoors
and outdoors.
.
.
.
.
.
.
.
.
Memo to FEDRAC, 3/2/04
Korean Sports and Cultural Festival
Page 3 of 5
.
Attendance assumptions range from 5,000-10,000 the first year on to
approximately 20,000 or more by the third year. Ethnic/cultural events in Seattle
(e.g., Cherry Blossom Festival, Chinese New Year, Fiestas Patrias, etc.) routinely
attract 20,000 to 30,000 for weekend events of a smaller scale.
Budgetary assumptions and City of Federal Way contributions are summarized
for the first, second and third years in the following table (see "Sample Three-
Year Budget" table in Attachment A for details):
.
YEAR EXPENSES REVENUES CITY FUNDING
2005 $229,000 $53,000 $176,000
2006 $167,000 $127,000 $42,000
2007 $187,000 $162,000 $25,000
.
Key assumptions in budget:
0 Sponsorship monies (corporate, local and Korean): $30,000, $45,000 and
$55,000 for years 1, 2 and 3, respectively
0 Grant monies (Korean govt, King Co Cultural Dev Authority, e.g.):
$16,000, $20,000 and $25,000 for years 1,2 and 3.
0 Year 2 initiate fee for weekend-long event pass (average ticket price of
$3.50, averaged between youth and adults prices)
Pros and Cons
Benefits ofthe Festival that have been expressed include:
.
Preliminary economic impact figures, based on direct spending by attendees only
(doesn't count purchasing and rentals for event production or multiplier effects):
0 Year 1: $200,000
0 Year 2: $300,000
0 Year 3: $400,000
.
Enhanced community profile and image regionally and nationally. Could be a
"signature event" for the community.
Increase range of attractions for visitors and tourists.
Could increase Federal Way's role in KoreanlPacific Rim trade opportunities.
.
.
Liabilities related to this Festival for the City that have been expressed include:
. No/little established track record in Federal Way for hosting/producing such a
large and complex event.
. Use of all of saved-up lodging tax carry-forward revenues to produce first-year
event.
Memo to FEDRAC, 3/2/04
Korean Sports and Cultural Festival
Page 4 of 5
.
Concern over community's ability to muster up sufficient and reliable volunteer
organization to staff and eventually take over the event.
Concern over some of the assumptions. Will attendance grow? Will
sponsorships rise? Will a ticketed event work after first year?
Overall concern regarding sustainability of the event after the professional
producers hand over the event to the community (with their assistance as
consultants to the extent needed/affordable).
.
.
Lastly, a question has been raised over the appropriateness of the use oflodging tax
revenues to produce, rather than simply market, a major event. A draft opinion from the
Attorney General's Office suggests that lodging tax revenues should be limited solely to
marketing events, as opposed to planning and producing such events. Many Washington
cities disagree with this draft opinion and have joined together through the Association of
Washington Cities (A WC) to urge the AG to annul this draft opinion. In addition, cities
are continuing to offer tourism enhancement grants and otherwise expend lodging tax
revenues to promote tourism for their communities in a variety of ways, including the
planning and production of tourism-boosting events, such as this. These expenditures
have never been questioned by the Auditor's Office.
L T AC RECOMMENDATION
The LTAC reviewed and considered the Korean Sports and Cultural Festival over the
past several months, starting in October 2003 and ending at its annual retreat on 2120/04.
The Committee's final recommendation to City Council was to approve the hosting of
this event in Federal Way and approve the expenditure of up to approximately $176,000
in lodging tax revenues to produce the first-year event. The Committee tentatively
identified that up to $170,000 of this funding would be available from carry-forward
funds within the Lodging Tax fund balance, available as of the end of2003.
This concept has been shared with several key community organizations who had the
following general responses:
.
The Korean Consul General and his staff indicated enthusiastic support for the
idea, including an indication that the Korean government would likely have grant-
funding availability, although no official Korean government response has been
gIven.
The Federal Way Korean Community Leaders expressed overwhelming support
for the event at their 12/18/03 quarterly meeting, including an enthusiastic show
of hands when asked who present would be willing to volunteer over the next year
and a half to produce this event.
The Federal Way Chamber expressed support and several volunteers surfaced at
their December Economic Vitality Committee meeting.
.
.
Memo to FEDRAC, 3/2/04
Korean Sports and Cultural Festival
Page 5 of 5
COMMITTEE OPTIONS
I. "I move to recommend that City Council approve the hosting of a Korean Sports and
Cultural Festival in 2005 and approve the expenditure of up to approximately
$176,000 in lodging tax revenue towards this event and to place this recommendation
on the March 16,2004, City Council Agenda."
2. "I move to not approve the use of lodging tax revenues for the hosting of a Korean
Sports and Culture Festival in 2005 and to place this recommendation on the March
16,2004, City Council Agenda."
APPROVAL BY COMMITTEE:
Eric Faison Chair
Jeanne Burbidge
Jim Ferrell
kírAcWH6Nr A
Korean Festival
S;:¡mple Three-Ye;:¡r Budget -- 1/9/04
1/1
C',c'
IrMRKETING
28.00000 I s
35.00000 S
38,0000CI:'13
!
s
40,00000 S
15.0naO S
33.7S0.00 1;4
I PCOrllO:lonal
PLANNING S;~~F
IPR~~'~G~I:~f~ & OPERATIONS EXPENSE
s
25.000.'00 S
40.000.00 S
So.OOOOO :'15
----- -- - - -- - - -- ----- -
i
I
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150.00000 S
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Boo:h & D:spliJys
CO:C::êssiOns
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~XPENSE GRMD TOTAL S
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R~VErw= Gf<ANJ lOT Ai S
GlfY Oi' FEDEi\AL W¡;ì' CONm:BUTION S
53 000 00 ¡ s
176.00000 i S
t -'
127.00000 i S
420iJOOO S
162.00000 :
25.000.00 ;: 1 :'
Korean Festival
Sample Year-One Budget -- 1/9/04
111,450.00
8,916.00
26,480.52
146,846.52
12,500.00
159,3046.52
I' 1-.i~OOõrôöl
$ 5,000.00
$ 1,500.00
$ 2,700.00
$ 5,000.00
$ 10,000.00
$ 1,000.00
$ 500.00
$ 1,000.00
$ 500.00
$ 800.00
IJIR'~9001ä:
$ 12,000.00
$ 8,000.00
$ 3,000.00
$ 2,000.00
i [lr:4S0
18,750.00 $ 48,750.00
24.700.00 $ 37,700.00
P¡= ~i9.
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
800.00
Graphic Design
Press ReleasesfKj~
Promotion Printing
Poster
Advertising
Documentation
Press Relations
Sponsor Relations
Public Information
Promotional Administrative
p:ßÕ([RlMMINb""i~> '
Talent Fees
Travel
Hotel
Per Diem
. . ~1i~~,~
$
$
30,000.00 $
13,000.00 $
Admissions
Production Admin
Venue and Public Transportation
Security & Public Safety
Perimeter
StagelLights/Sound
Stage Backdrops
Electrical
Catering
Site Production
Crew
Site EnhancementlDécor
Signage
Booth & Displays
Concessions
Rnance & Banking
InsuranceIT axesJProfessional Fee's
Various/Other
Expense Subtotal
Contingency (8%)
TW OverheadlProfit 22%
2,000.00
4,000.00
800 . 00
1,200.00
800.00
5,000.00
3,000.00
2,000.00
1 ,000. 00
500 . 00
500 . 00
City Coordinator
$
$
$
SUBTOTAL $
$
EXPENSE GRANO TOTAL $
59,000.00 $
4,720.00 $
14,018.40 $
77.738.40 $
12,500.00 $
90,238.40 $
125.00
170,450.00
13,636.00
40 498.92
224,584.92
25,000.00
249584.92
Revenue Projections
City of Federal Way Contribution $ 77.500.00 $ 98,500.00 $ 176,000.00
Sponsors (minus %) $ $ 30,000.00 $ 30,000.00
Concessions & Booth Sales $ $ 3,000.00 $ 3,000.00
Merchandise $ . $ $ .
Grants/Govemment $ $ 16,000.00 $ 16,000.00
Concert Ticket Sales $ $ 4.000.00 $ 4,000.00
Event Ticket Sales $ $ $ .
In-Kind (City, Community, Consulate) $ $ 21,000.00 $ 21,000.00
Other $ $ $ .
REVENUE GRANO TOTAL $ 77,500.00 $ 172,500.00 $ 250,000.00
Korean Festival
Sample Program Grid -- 1 /9/04
Samole SoortinQ Events
Basebaft
Soccer
West Coast Korean Swimming Championship
Diving
Taekwando
Golf
Player appearances
Martial arts exhibition
Samole Cultural Events
Oassical artist with FW SO
Pop Singer/concert
Book reading/signings
Arts & Crafts show
Asian fashion show
Food event
film festival
Opening ceremony at crafts hall
Exhibit hall & festival site opens
Food Booths open
VIP hospitality opens
Hotel hospitality room opens
Exhibit hall & festival site opens
Food Booths open
Music begins
Samo!e Other Event
Welcome Programs at hotels
Veterns parade/celebration
Per/coner appearances
Pre-{vent
Oub Event
Press Conference
Exhibit hall & festival site opens
Food Booths open
Music begins
Luncheon, awards, fashion show Hotel hospitality room opens
Hotel hospitality room opens Exhibit beverage garden begins
Exhibit beverage garden begins Film Festival begins
Sports fun schedule, multi venue VIP hopsitality opens
Taekwondo Afternoon concert begins
Diving
Swimming
Opening nite receptions Film Festival opening reception
Music Exhibit beverage garden begins
Sports Opening Ceri.
Film Festival begins
VIP hospitality opens
Afternoon concert begins
Afternoon cultural program begins
Sports conclude, awards ceremony
Finale reception begins
Exhibit han closes
Evening concert begins
Evening main concert begins Evening main concert begins
Evenil1!1 dub entertainment be!¡; Evening dub entertainment begins
Film festival begins Exhibit hall doses
Exhibit haM closes
late ni!lht PfO! fam and dub ope late night program and dub opens
Sports reception begins Sports reception begins
Korean Festival
Staff Planning Organization --1/9/2004
Film
Arts/Entertainment
Sports
Communit Volunteers
II
Master Budget
Accounting
Committee Uaison
Oversee Community Relations
Public Information
Site Design
Budget Management
Master Timeline
Supervise Event Management Team
Sponsorship Management
Oversee Advertisin
n
Coordinate Event Team
Establish and Track Timeline
Track Expenses and Revenue
Develop On-Site Communications
Oversee Public Safety planning
Permitting and Insurance
Develop Admissions Plan/Procedures
Oversee Public Information
Oversee Décor
Develo Contracts and Contractin Procedures
s
Recruit Volunteers
Schedule Volunteers
On-Site Volunteer Management
Solicit Exhibitors
Exhibit Hall Management
Exhibitor Coordination
Merchandise Mana ement
Advertising
Graphic Design
Press Relations
Sponsorship Fulfilment
Programming
Community Relations
Volunteer Planning
Sponsorship Recommendations
Korean Consulate Uaison
. 0
Staging, Ughts, AudioNisual Procurement
Venue Relations
Signage
Security.
Transportation
Site Production
Credentials
Ma sand Draftin
Korean Festival
Sample Volunteer Schedule -- 1/9/04
Pre-Event
Kev CommunitY Volunteers
(4 month commitment)
2x Sports Director
1 x Arts Director
1x Volunteer Director
1 x Film Festival Director
TW Staff Reouired
Event & Production Manager
Marketing & PR Manager
IIC Event Staff
Communications & Admin Asst
Production Coordinators
Crew
Runner
Citv Event Staff
Exhibit Manager & Vol Coord
Event
Volunteer Schedule
Pre-Event 320 hours total (8 people x 40 hours each)
Mailings, admin, copies, letters, job descriptions, training manuals, venue specs, volunteers & Sched, spedfic production jobs
7x positions in 2 shifts (1 0:00am-2:00pm; 1 :30pm-4:30pm)
1x Film Asst (Special hours)
2x Registration (Special hours)
2x Talent Host (Special hours)
2x Volunteer Assts
Wednesday
Thursday
lOx positions in three 4hr shifts (1 0:00am-2:00pm; 1 :30pm-4:30pm; 4:00pm-8:00pm)
1 x Exhibit Asst
2x Sports Venue Asst
1x Film Asst
2x Registration
2x Talent Host
2x Volunteer Assts
(Special hours)
(Special hours)
(Spedal hours)
14x oositions in four 4hr shifts (8'30am-12'30pm' 12:00pm-4:00pm' 3:30-7'30om' 7:00Dm-11'00pm)
1 x Exhibit Asst
1 x Stage Asst
2x Sports Venue Asst
2x Art Venue Asst
1x Film Asst
2x Registration
1 x VIP Hospitality
2x Talent Host
2x Volunteer Assts
Friday
Saturday
(Special hours)
(Special hours)
(Special hours)
(Special hours)
14x DOsitions in four 4hr shifts (8:30am-12:30Dm' 12:00om-4:00Dm' 3:30-7:30om' 7:00om-11 :OODm)
1 x Exhibit Asst
1 x Stage Asst
2x Sports Venue Asst
2x Art Venue Asst
1x Film Asst
2x Registration
1 x VtP Hospitality
2x Talent Host
2x Volunteer Assts
(Special hours)
(Special hours)
(Special hours)
(Special hours)
14x positions in four 4hr shifts (8'30am-12'30pm' 12'00Dm-4:00Dm' 3'30-7'30nm' 7:00pm-11'00pm)
1 x Exhibit Asst
1 x Stage Asst
2x Sports Venue Asst
2x Art Venue Asst
1 x Film Asst
2x Registration
1 x VIP Hospitality
2x Talent Host
2x Volunteer Assts
Sunday
(Special hours)
(Special hours)
(Special hours)
(Special hours)
Sx positions in 2 shifts (1 0:00am-2:00pm; 1:30pm-4:30pm)
1x Film Asst (Special hours)
2x Talent Host (Special hours)
2x Volunteer Assts
Monday
Post-Event
40 hours total (4 people x 10 hours each)
Mailings, admin, copies, letters, wrap up
Korean Festival
Notes & Assumptions
#1. Not for Profit Status
The goal is to develop a non-profit organization to own and oversee the Korean Festival.
The Workshop will work with this organization to develop the festival and assist in the
development of the organization's mission and goals.
#2. Programming
The Festival Program is scheduled to improve and increase the number of performances
the second and third years. The budget reflects this increase.
#3. Marketing
Marketing expenses will increase in 2006/2007 as the number of performances and ticket
sales increase. The budget reflects those numbers.
#4. Planning staff
The Workshop will develop and train the festival staff, so this staff can run the Festival in
2006. A 5% COLA increase is budgeted for subsequent years.
The Workshop will produce the 2005 Festival and then relinquish this producing role to
staff for 2006. The Workshop will act as consultants for the 2006/2007 events.
#5. Production
Production expenses will increase in 2006/2007 as the number of performances and
attendance increases. The budget reflects these increases.
#6. In-kind
It is a goal to procure a fair amount of in-kind contributions from the community, private
business, sponsors and governments. This in-kind is shown as an off-set against expenses
in this budget.
#7. City Coordinator
A contractor will be hired to represent the City's event interests and the handle the
Korean Festival volunteer system and exhibits. This person is budgeted for six months,
halftime over the next two years for a total cost of $25,000 to the 2005 budget.
#8. Attendance
Attendance estimates are based on research of events of similar size cities adjacent to
major metropolitan areas.
Year 1: 5,000 - 10,000
Overnighters (based on 20%): 1,000 - 2,000 people
Revenue: $75,000 - $150,000 (average $75pp)
Day trippers: 4,000- 8,000 people (average $25pp)
Revenue: $100,000 - $200,000
Year 2: 10,000 -15,000
Ovemighters (based on 20%): 2,000 - 3,000 people
Revenue: $150,000 - $225,000 (average $75pp)
Day trippers: 8,000- 12,000 people (average $25pp)
Revenue: $100,000 - $300,000
. -
Year 3: 15,000 - 20,000
Ovemighters (based on 20%): 3,000 - 4,000 people
Revenue: $225,000 - $300,000 (average $75pp)
Day trippers: 12,000 - 16,000 people (average $25pp)
Revenue: $300,000 - $400,000
#9. Sponsorship
Generally sponsorships comprise from 15 - 30% of the festival budget. However, that
depends on the benefits of the sponsorship, local corporate involvement and how long the
event has been running. There is good indication of the Kore~n Festival that the national
and local Korean businesses may help to sponsor the event along with help from the
Korean Consulate.
#10. Annual Revenue Increases
All of the revenue items listed in this budget reflect annual increases over the first three
years of the event. These increases represent growth expectations and refined
understanding of Festival profit center over time.
#11. Ticket Sales
F or the first year, the event is designed to be free for the public. This will help to develop
core audience interest and encourage large first-year attendance. Beginning in 2006, the
Festival will reformat into a low-cost admission event with an average ticket price of
$3.50. Based on attendance estimates, the year-two gross will be $52,500 and $52,500
and $70,000 in year-three.
#12. Federal Way Contribution
The contribution from the City as listed in this budget is calculated to create a zero-based
budget for the Festival over the first three years. It is the expectation that this contribution
will stabilize to a fixed negotiated amount in year-four and beyond.
CITY OF FEDERAL WAY
MEM 0 RAND UM
Date:
To:
Via:
From:
Subject:
May 4, 2004
Finanæ,e, Econ mic Development and Regional Affairs Committee
Davi - . ¡)l' ity Manager
Patrick Do y. e uty Director, Community Development Services
Consultant Se vices regarding the Potential for a Commercial "Lifestyle
Center" in Federal Way City Center
BACKGROUND
Pursuant to the City Council-approved City Center Redevelopment Strategies work plan,
staff have identified an opportunity to employ services of a urban retail consultant for the
purposes of offering City Councilmembers, staff and interested members of the public a
presentation regarding commercial "lifestyle centers" and their feasibility for the Federal
Way City Center.
"Lifestyle centers" have become one of the most attractive commercial development
typologies in recent years and have been effective in redeveloping and/or rehabilitating
commercial business districts throughout the nation. Perhaps the most well known
example within our region is the University Village in northeast Seattle.
"Lifestyle centers" are characterized by up-scale retailers, as well as restaurants, cafés
and other services, usually within the context of attractive and cohesive architectural
design, copious pedestrian amenities and landscaping. Some "lifestyle centers" contain a
mix of other (residential, office, entertainment) uses, as well.
A greater level of information on "lifestyle centers," as well as potentially a subsequent,
full market analysis of the feasibility of such a commercial center in the Federal Way
City Center, could help inform the City Council more fully with regard to potential City
Center redevelopment strategies, including site acquisition, public/private partnerships or
even simply general assistance to private-sector developers.
PROPOSAL
The current proposal is to engage the services of a recognized consultant with expertise in
the area of "lifestyle center" planning and marketing, Mr. Bob Gibbs. Mr. Gibbs is the
principal of the Gibbs Planning group, a nationally recognized consultancy firm that
offers professional services in town planning, retail analysis, and landscape architecture.
Mr. Gibb would provide an approximately two-hour presentation on the nuts and bolts of
"lifestyle centers," including the range of tenants, the amenities, desirable locations,
Memo to FEDRAC, 5/4/04
"Lifestyle Center" Consultant Services
Page 2 of 2
desirable market characteristics, etc. He would also provide graphic examples of
"lifestyle centers." His services for such a presentation would run approximately $2,500
to 3,000. It would be desirable to hold this presentation as a full Council study session in
June, possibly at the 6/8/04 FEDRAC meeting or other convenient time for City
Councilmembers.
If we believe that the City could benefit more directly from his planning and marketing
services, Mr. Gibb could be further engaged to produce a detailed market analysis for a
"lifestyle center" in the Federal Way City Center. Such further services would be
considered at a future date after the first general presentation.
COMMITTEE ACTION
"I move to recommend that City Council authorize the City Manager to engage
consultant services to provide a presentation to the City Council on "lifestyle" retail
shopping centers and their potential applicability to the Federal Way City Center."
APPROV AL BY
COMMITTEE:
Committee Chair
Committee Member
Committee Member