TO: Mayor and Town Council
FROM: Jill Keimach, Town Manager
Andrew Miller, Town Attorney
Doug Allen, Finance Director
DATE: June 25, 2020
CONTACT:
Staff Contact Jill Keimach, 480-348-3533
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AGENDA TITLE:
Title
Consideration of a New 3-year Contract with Two One-Year Extensions with Experience Scottsdale
Body
RECOMMENDATION:
Recommendation
Authorize the Town Manager to execute an agreement with Experience Scottsdale.
Background
The attached draft contract terms were presented to the Town Council during the June 11, 2020 Town Council Study Session. The contract includes terms that have been negotiated and agreed upon by Experience Scottsdale leadership.
BACKGROUND:
The Town approved a five-year contract in June 2010 with the Scottsdale Convention and Visitors Bureau (dba Experience Scottsdale) to "promote the Town's hospitality industry for the purpose of bringing additional business to the Town's hospitality industry." The agreement focused on the annual Destination Marketing Guide to promote Paradise Valley's resorts and also included a set of parameters to be met annually.
The compensation under the June 2010 contract started with $900,000 in FY10/11; $925,000 FY12/13 and $950,000 in FY13/14. Thereafter the compensation increased to a formula "equal to 40.9% of the Town tax collection upon the business activity of any hotel in the Town charging a tax on transient lodging during FY11/12" (two years in arrears). The 40.9% calculation was based on using 100% of the .4% increase in Transient Lodging Tax that was approved in the contract year of 2010 plus a 1/3 of the Town's 3% existing bed tax.
The following represents the actual annual transfer of funds from the Town to Experience Scottsdale during the first contract period.
FY2010-11 $900,000
FY2011-12 $925,000
FY2012-13 $950,000
FY2013-14 $1,000,000 40.9%* of Town FY2011-12 transient lodging tax (bed tax)
FY2014-15 $1,115,708 40.9%* of bed tax received...
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