TO: Committee of the Whole - Planning and Public Works
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
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Planning and Community Development |
Seraphie Allen |
425-556-2450 |
DEPARTMENT STAFF:
|
Planning and Community Development |
Philly Marsh |
Interim Planning Deputy Director |
|
Planning and Community Development |
Kim Dietz |
Interim Economic Development Manager |
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Planning and Community Development |
Jackie Lalor |
Economic Development and Tourism Program Administrator |
TITLE:
title
Approval of the 2027 Tourism Grant Funding - Lodging Tax Advisory Committee (LTAC) Recommendations
OVERVIEW STATEMENT:
recommendation
Per RCW 67.28.1816, the Lodging Tax Advisory Committee (LTAC) voted and recommends the 2027 Tourism matching grants of $171,500 and City Community Events and Cultural Arts Program allocations of $150,000, for a total of $321,500. Funding for the tourism matching grants comes from the 1% lodging tax on Redmond hotels and motels, collected through the Lodging Tax Tourism Fund.
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☒ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
Redmond 2050 Comprehensive Plan:
EV-22 Support Redmond’s growth as a tourism destination and foster tourism-related initiatives that bring investment and economic benefit.
Adopted 2024 Tourism Strategic Plan:
Goal 1.1: Position and promote Redmond as an intercultural destination showcasing various cultures through arts, events, and dining options.
Goal 1.18: Promote parks in Redmond’s urban centers as a destination, fostering a diverse range of programming to maintain its vibrancy and activate the surrounding area.
Goal 2.2: Promote recreational fields, trails, and water for tournaments, competitions, and events to recreational and athletic organizations.
Goal 3.1: Work with the LTAC to prioritize support for events and festivals that include an overnight component.
Adopted 2024 Economic Development Strategic Plan:
Action 3G.1. Continue efforts to develop and offer diverse and inclusive arts, recreational, and cultural programming that draws visitors to Redmond.
Action 3G.2. Support Redmond’s Tourism Program and the Tourism Strategic Plan to align the City’s tourism efforts for economic impact.
• Required:
(RCW) 67.28.1816: https://app.leg.wa.gov/RCW/default.aspx?cite=67.28.1816
• Council Request:
N/A
• Other Key Facts:
2027 Applications can be found here: https://www.redmond.gov/DocumentCenter/Index/1411
Related RCWs:
• As authorized by the Revised Code of Washington (RCW) 67.28.180 <https://app.leg.wa.gov/rcw/default.aspx?cite=67.28.180>, a 1% lodging tax is collected from overnight stays at hotels within Redmond. This revenue is allocated to a special revenue Lodging Tax Fund, also known as the Tourism Fund.
• (RCW) 67.28.1816 <<https://app.leg.wa.gov/RCW/default.aspx?cite=67.28.1816>> authorizes the use of lodging tax funds for tourism marketing and the marketing and operations of special events and festivals designed to attract tourists.
• (RCW) 67.28.1816 <<https://app.leg.wa.gov/RCW/default.aspx?cite=67.28.1816>> states that the "local lodging tax advisory committee must select the candidates from among the applicants applying for use of revenues in this chapter and provide a list of such candidates and recommended amounts of funding to the municipality for final determination."
Other Lodging Tax and Committee Details:
• The purpose of the Lodging Tax Fund is to increase tourism in Redmond by attracting visitors from more than 50 miles away, particularly overnight visitors who stay in Redmond hotels.
• The LTAC consists of 7 members, including an equal number of hoteliers and members representing interests that might be funded by the tax. A Councilmember, currently Councilmember Vanessa Kritzer, serves as the committee chair.
• Applicant Scoring: Per Council’s feedback from January 2020 and additional feedback from November 2021, the grant application criteria were detailed out, and application components supporting these criteria were assigned points. Each application received a weighted ranking.
Lodging Tax Fund Performance and Budget:
• The lodging tax fund closed 2025 with revenues of $674,240. The end fund reserve at the end of 2026 should be approximately $700,000 or slightly more.
• The 2027 budget proposes $150,000 for tourism grants, with a one-time $25,000 opportunity funding increase from the end fund reserve for new events and tourist promotion opportunities. The total budget for tourism grants (pending Council budget approval) is $175,000.
• City Community Events and Cultural Arts Programming were recommended at the same historical and budgeted amount of $150,000.
Conflicts of Interest in Recommending Applicants:
• Conflicts of interest are common on this committee due to the state requirement that members must either be an entity for which the tax is charged or an entity that might receive grant dollars. These conflicts of interest are noted in the full scoring spreadsheet. Members were not asked to recuse themselves from the recommendation vote or discussion, per MRSC guidance. However, staff requested recusal of specific application conversations if a direct personal financial interest was involved related to the application.
OUTCOMES:
Applications Received:
The City received 19 external grant applications by the August 10 deadline, plus one additional application submitted after the deadline. The LTAC also received three funding requests from City Community Events: one each for Redmond Lights, Derby Days, and Cultural Arts programming.
The 2027 grant cycle includes seven new applicants, four of which are proposing new events in Redmond.
The LTAC recommends that the City Council approve funding for 19 of the 20 external applications submitted by the deadline, totaling $171,500. The LTAC also recommends fully funding the City Community Events and Cultural Arts requests at the budgeted amount of $150,000.
2027 Applications can be found here: https://www.redmond.gov/DocumentCenter/Index/1411
Application not Recommended for Funding:
Folk Dance Workshop - The LTAC voted not to recommend funding for this event because the application was submitted after the 5 p.m. August 10 deadline. The committee also discussed the event’s limited projected overnight stay impact and the limited funding available for applications that met the required deadline. The LTAC asked staff to encourage the applicant to apply again during the next grant cycle, which staff has done.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
Application Window was July 20-August 10
• Outreach Methods and Results:
Application notification sent to past and interested applicants
Press Release
Application messaging through local partners
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
Total Cost: A total of $171,500 for matching grants and $150,000 for City Community Events and Cultural Arts Programming is recommended by the Lodging Tax Advisory Committee by vote for City Council’s approval.
Approved in current biennial budget: ☐ Yes ☒ No ☐ N/A
Budget Offer Number:
27-28 Budget Offer Number TBD
Budget Priority:
Vibrant and Connected
Other budget impacts or additional costs: ☒ Yes ☐ No ☐ N/A
If yes, explain:
These grants are budgeted in the 2027/2028 recommended lodging tax budget which is pending approval by the City Council.
Funding source(s):
1% lodging tax on hotels and short-term rentals located in Redmond
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
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Date |
Meeting |
Requested Action |
|
N/A |
Item has not been presented to Council |
N/A |
Proposed Upcoming Contact(s)
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Date |
Meeting |
Requested Action |
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10/20/2026 |
Business Meeting |
Approve |
Time Constraints:
To allow adequate time for applicants to plan appropriately with their available funding, staff would like to complete the grant approval process no later than November 30, 2026.
ANTICIPATED RESULT IF NOT APPROVED:
If the LTAC recommendation is not approved, proposed events may not receive matching grant funds from the City and may not be able to proceed as planned.
ATTACHMENTS:
Attachment A: 2027 List of Grant Applicants
Attachment B: Simplified Scoring
Attachment C: Full Scoring Matrix Final LTAC Recommended
Attachment D: Draft Meeting Minutes for September 1, 2026
Attachment E: General Tourism and LTAC FAQ and Overview 2026