Title
Authorization to Enter into Agreement for FY 2020-21 Tourism and Hospitality Advisory Board Funds (Ordinance S-47083)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Greater Phoenix Convention and Visitors Bureau (GPCVB) for FY 2020-21 Tourism and Hospitality Advisory Board (THAB) funds. The five-year aggregate value of the contract will not exceed $500,000. Further request authorization to the City Controller to disburse all funds related to this item.
Report
Summary
The Tourism and Hospitality Advisory Board (THAB) is the City of Phoenix Board that, annually, reviews and recommends projects and/or programs that enhance the City's tourism and hospitality industry. The Board is comprised of eight hoteliers (one from each City Council district), three at-large members from hospitality related industries, and one non-voting member from the GPCVB. For FY 2020-21, $500,000 is appropriated for tourism and hospitality initiatives.
Procurement Information
The recommendation is in accordance with City of Phoenix Administrative Regulation 3.10, following the Request for Agreement (RFA) procurement process.
On Sept. 17, 2020 at the THAB meeting, the GPCVB presented the proposed FY 2020-21 funding request and scope of work for consideration. In partnership with GPCVB, the current funding proposal will help aid in stimulating the local tourism and hospitality industry and assist in increasing activity to hotels and businesses in the local area; many impacted by the current pandemic. Under the proposal, the GPCVB will utilize THAB funding in the following areas to support the City's tourism and hospitality industry now and over the next several years:
Convention client hosting obligations ($150,000) - represents seven meetings and conventions taking place at the Phoenix Convention Center between January 2021 and July 2023. It is anticipated that these seven groups will generate approximately 45,000 event attendees and delegates, more than 46,000 hotel room nights and more than $450 in direct spending for every dollar invested.
Phoenix Convention Center Promotional support ($25,000) - funds will be used to support new convention business contracted during FY 2020-21 or later. The funds will assist newly contracted groups with support in areas of convention center rental abatements, IT costs, AV costs, registration, or transportation assistance. The destination will need a strong and robust base of group events to assist in the recovery from the current COVID Pandemic and these funds will be used to support those groups as opportunities arise.
Mega Event support for the 2023 NFL Super Bowl ($200,000) - funds will be utilized to offset expenses, such as facility costs, personnel, public safety, traffic barricades and street closures, fan and media events and other such hosting costs. This will be the third year of a five-year request to support the Super Bowl in 2023.
Mega Event support for the 2024 NCAA Men's Final Four ($125,000) - funds will be utilized to offset expenses, such as facility costs, personnel, public safety, traffic barricades and street closures, fan and media events and other related hosting costs. This will be the second year of a five-year request to support the NCAA Men's Final Four tournament in 2024.
Contract Term
The Contract term is for five years with no extension options.
Financial Impact
The budget will not exceed $500,000 over the life of the contact. THAB is funded through the Sports Facilities Fund, which is the hospitality industry's share of special excise taxes on hotel/motel lodging and rental cars.
Concurrence/Previous Council Action
The Workforce and Economic Development Subcommittee recommended approval of this item by a 4-0 vote at its Oct. 28, 2020 meeting. This item also was approved by the Tourism and Hospitality Advisory Board at its Sept. 17, 2020 meeting.
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr. and the Phoenix Convention Center Department. This item is also recommended by the Tourism and Hospitality Advisory Board.