| ITEM #: 6. DATE: 09/13/2021 AI #:470 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | ARIZONA OFFICE OF TOURISM, MARICOPA COUNTY PROP 302 MARKETING PROGRAM |
| STAFF PRESENTER(S): | Debbie Diveney, Assistant General Manager of Marketing |
SUMMARY
Goodyear has participated in the Arizona Office of Tourism (AOT) Prop 302 Marketing program since 2001. Initially a member of the Wickenburg Chamber of Commerce cooperative, Goodyear established a new cooperative with the City of Litchfield Park in May 2021. Both Goodyear and Litchfield Park participate as their own Destination Marketing Organization (DMO). As part of a new requirement for all participants in the Prop 302 program, Goodyear must provide an official record establishing that it acts as its own DMO, as well as designate a representative authorized to sign the AOT affidavit on behalf of the city.
Recommendation
Affirm the City of Goodyear is the designated DMO (Destination Marketing Organization) and authorize the City Manager (or designee) as signatory of the official affidavit for the Arizona Office of Tourism (AOT), which is required annually to participate in the Prop 302 program. (Debbie Diveney, Assistant General Manager of Marketing)
FISCAL IMPACT
Over the past five years, Goodyear has received between $67,500 and $100,000 in grant funding by participating in Arizona Office of Tourism’s Prop 302 program through the Wickenburg Chamber of Commerce co-op. The funding allocation is based on the amounts the Department of Revenue (DOR) reports as hotel tax dollars from Goodyear properties. By applying for the Prop 302 funding on our own, or as a co-op with the City of Litchfield Park, there is no negative fiscal impact. Current AOT guidelines ensure that each co-op participant is entitled to their proportionate share of the co-op funding, based on the DOR revenue percentages.
BACKGROUND AND PREVIOUS ACTIONS
In 1999 voters approved the Proposition 302 initiative, which includes funding to promote tourism in Maricopa County. Funding is derived over a 30-year period from a car rental surcharge and a 1% tax on hotels in Maricopa County.
In accordance with A.R.S. § 41-2306, A2 and A3, revenues are deposited pursuant to Title 5, Chapter 8, Article 2, section 5-835, subsection B or C and Title 42, Chapter 6, Article 3, section 42-6108.01. All monies in this account are continuously appropriated to the office of tourism, which, in consultation with a consortium of destination marketing organizations in the county in which the tourism and sports authority is established, shall be spent to promote tourism within that county.
Goodyear has always held the designation of DMO, and in May of 2021, established a new co-op with the City of Litchfield Park.
AOT has always required municipalities participating in the Prop 302 Marketing Program to provide a letter of support or affidavit to ensure AOT was working with the official DMO of a specific community. As of July of 2021, AOT is now requiring each municipality’s DMO status be officially documented through a council action and renewed on an annual basis.
In addition, this action must also designate a representative who is authorized to execute the DMO Affidavit on behalf of the city of Goodyear.
In accordance with A.R.S. § 41-2306, A2 and A3, revenues are deposited pursuant to Title 5, Chapter 8, Article 2, section 5-835, subsection B or C and Title 42, Chapter 6, Article 3, section 42-6108.01. All monies in this account are continuously appropriated to the office of tourism, which, in consultation with a consortium of destination marketing organizations in the county in which the tourism and sports authority is established, shall be spent to promote tourism within that county.
Goodyear has always held the designation of DMO, and in May of 2021, established a new co-op with the City of Litchfield Park.
AOT has always required municipalities participating in the Prop 302 Marketing Program to provide a letter of support or affidavit to ensure AOT was working with the official DMO of a specific community. As of July of 2021, AOT is now requiring each municipality’s DMO status be officially documented through a council action and renewed on an annual basis.
In addition, this action must also designate a representative who is authorized to execute the DMO Affidavit on behalf of the city of Goodyear.
STAFF ANALYSIS
Staff has been actively participating in the Prop 302 program and has a full understanding of the administration necessary. The designation staff is seeking is a new requirement for all participants in the Prop 302 program, as of July 2021
