Memorandum

City of Lawrence

City Manager’s Office

To:	Diane Stoddard, Interim City Manager
From:	Megan Gilliland, Communications Manager & DMI Interim Director)
cc:	Casey Toomay, Assistant City Manager
Date:	June 18, 2015
Re:	Proposal for TGT Use & Reorganization

Background:

The City of Lawrence utilizes transient guest tax collections pursuant to City Charter Ordinance No. 39, which was approved in 2009, and provides that, in substitution of K.S.A. 12-1698(e), a transient guest tax of six percent (6%) shall be levied upon the gross receipts derived from or paid by transient guests for sleeping accommodations, exclusive of charges for incidental services or facilities, in any hotel, motel, or tourist court in the city.

Destination Management, Inc. (DMI) is the city’s independent contractor for operation and management of the Lawrence Convention and Visitors Bureau (CVB), now commonly known as eXplore Lawrence. The City, DMI, the Convention and Visitors Advisory Board, and other community stakeholders have had many discussions in the past few months with the end-goal of strengthening communication between tourism-related entities, additional accountability and oversight of TGT funds by the city and respective boards, balancing the make-up of the DMI Board to provide for equal representation from the CVB and Freedom’s Frontier National Heritage Area (FFNHA), and provide an agreement between the city and DMI that sets out performance measures for use of the TGT and helps to define overall success of the organization.

This proposed reorganization also provides for additional resources for marketing and sales, as well as leverages General Fund monies, for personnel which can be shared amongst the eXplore Lawrence and the city’s Communications Division.  An additional $80,000 in revenue from the TGT collection is requested for FY2016 to provide an additional sales person for group sales.

This proposal also provides a dedicated, budgeted resource for a Transient Guest Tax Grant program which can be used to create, cultivate and increase collaboration of signature events which will draw more visitors to Lawrence and, ultimately, increase TGT revenue collections.