Presentation on theme: "Proposed 2013 Economic Development Investments Presentation to the Selectboard December 11, 2012."— Presentation transcript:
Proposed 2013 Economic Development Investments Presentation to the Selectboard December 11, 2012
Economic Overview Investments support the third goal of the Select Board’s Strategic Plan to increase tourism, year round employment, and support the growth of our tourism based economy. Investments include: Golf Debt Events & Marketing Killington Gateway Killington Rd. Beautification & Sidewalk Expansion Master Planning for Commercial District Trails Development Water Study This presentation describes each category including the strategy, expected results, and implementation plan
Golf Debt Annual Debt Payments YearPayment Schedule* 2012 $615,149 2013 $587,909 2014 $561,244 2015 $609,298 2016 $394,660 2017 $363,362 2018 $371,984 2019 $369,893 2020 $368,525 2021 $386,684 2022 $394,122 2023 $370,130 2024 $321,458 2025 $310,143 Golf is the town’s primary economic development investment Regular payments ensure we meet our obligation “The main purpose for its construction (golf course) is to foster summer visitations to Sherburne from beyond commuting range. The principal benefit to the town of Sherburne will be the inflow of tourist dollars to the Sherburne lodging, retail, and restaurant businesses.” – 1994 Sherburne Annual Report *Debt payment includes land, short & long term debt, and interest
Events & Marketing Approximately 80% of events and marketing investments are concentrated in Q3, the quarter that is vital to supporting a year round economy The other three quarters of the year are: Primarily driven by skiing and weather Have less potential to develop (due to mud and stick seasons) Don’t dovetail with our primary economic development investment - the golf course
Events & Marketing Q3 is also the period when GMN received approximately 65% of its revenue We have increasingly seen that people do not travel just for golf: visitors want more activities and amenities All of the economic development investments, including marketing and events, help make our town a more viable golf and summer destination
2013 Event Investments The EDTC and local businesses believe there should be a continued focus on the year round economy, and -- that a strategy of relying on 4-5 months on winter/skiing alone will not help us grow our year round population, increase number of students in school, increase real estate sales, and create year round employment opportunities. A new economic analysis from the University of New Hampshire last week describes how winter tourism has been declining nationally: “A new economic analysis details how the $12.2 billion winter tourism industry spread out across 38 states has experienced an estimated $1 billion loss and up to 27,000 fewer jobs over the last decade due to diminished snow fall patterns and the resulting changes in the outdoor habits of Americans.” - Vermont Business Magazine, December 6, 2012
Q3 Options Tax Receipts Source: State of Vermont Tax Department Q3 measures July, August, and September rooms, meals, alcohol, and sales tax, the period when a majority of EDT investments have been concentrated 2011 results were low due to the impact of Tropical Storm Irene Results show growth in Q3 and indicate we are going in the right direction
Summer Business 15 restaurants & delis were open full-time in Summer 2012 Casey’s Caboose Killington Deli The Garlic Grist Mill Jax Food & Games Killington Market Liquid Art Lookout Tavern McGrath’s Irish Pub Mogul’s Sports Pub Outback Pizza Ovations Peppino’s Phat Italian Wally’s 10 restaurants & bakeries were open part-time Birch Ridge Charity’s Choices Domenic’s On the ROCs Pasta Pot Saint’s Pub Slopeside Bar & Grill Sunup Bakery Source: KCC 2012 Summer Dining Guide More dining establishments were open in 2011 than 2010, and more were open in 2012 than 2011.
We’re more efficient each year- smaller investments continue to pay larger dividends Marketing & Events investments have decreased while the number of events has been maintained Budget Comparisons
Budget Comparison In 2013 we have proposed to invest $254,100 for marketing and events, with our new staffing plan this will be accomplished at a fraction of the cost of previous years Administration costs have been reduced 75% since 2010. 2013 admin costs are under 35k
2013 Marketing & Events Overview Well constructed strategy: concentrated Q3 investments More with less: same or more events with less cost Delivering measurable results Supporting goals of community as well as Selectboard Strategic plan Further diminish redundancies between the Town, Chamber, and Resort Strategize and prepare to launch non-tourism business development/recruitment efforts
2013 Spring Events (Q1 – Q2) Snoe.down Winter Music Festival, March 22-24 The three-day music festival features a free outdoor moe. concert at Bear Mountain and a series of free concerts at Killington base lodges, as well as paid shows Friday – Sunday in Killington and Rutland. Produced by Great Northeastern Productions, the event is sponsored at $15,000 and will bring an estimated 4,000 people to Killington for 1-4 days. Killington Stage Race, May 27-29 The Town will bring back three days of racing for professional and amateur cyclists, promote lodging packages to racers, and create local business promotions. Produced by App Gap Productions, the event is sponsored at $20,000 and will bring an estimated 1,400 people to Killington for 3-4 days.
2013 Summer Events (Q2) Killington Junior Golf Tournament, June 23 - 27 Green Mountain National will welcome 144 of the world’s best junior golfers and their families in this four-day competitive tournament – an American Junior Golf Association official event. Sponsored at $19,500, the event is estimated to bring 360 people to Killington for 3-7 days. Killington Half Marathon, June 15 – 16 The Killington Half Marathon will be presented by 3C Race Productions on Father’s Day Weekend 2013. The out and back course starts and finishes at Killington Resort, and will travel through the Killington Commercial District. There is no required sponsorship other than staff coordination and will bring an estimated 750 people to Killington for 1-2 days. * * Indicates event is currently under negotiation
2013 Summer Events (Q3) Fourth of July in Killington, July 4 The Killington Fire Department hosts an all-day 4 th of July party and fundraiser, featuring a parade of community groups and bands, a BBQ and potluck, a pool party and contest, nighttime fireworks and more on the River Road recreation fields. The event is sponsored at $750 to support advertising and programming. 3 v 3 Live Soccer, July 20 3v3 Live Soccer Tour is a national organization that specializing in bringing together soccer enthusiasts of all ages to battle it out in a 3 v 3 tournament. The Qualifying Tournament to be hosted in Killington is open to teams U4 and up, male and female. The event would be sponsored at $2,500 and bring an estimated 500+ people to Killington for 1-2 days. * * Indicates event is currently under negotiation
2013 Summer Events (Q3) Cooler in the Mountains Saturday Afternoons, July 27 – August 24 The summer concert series returns with free family-friendly outdoor concerts at Killington’s K1 Base lodge, plus outdoor activities and games, a beer garden/BBQ, and a focus on area business promotions. Produced by Town of Killington, the event is sponsored at $25,000 and will bring an estimated 5,000 concert goers. The Biggest Loser Run/Walk, July 27 – 28 The Biggest Loser race series appeals to all fitness levels from the first-timer to the veteran athlete. The goal is to challenge all participants in a fun, healthy non-intimidating environment. Killington would hold a 15k and 5k, as well as a 1 mile fun run for children. The event would be sponsored at $3,000 and bring an estimated 1,000 people to Killington for 1-2 days.* * Indicates event is currently under negotiation
2013 Fall Events (Q3) Killington Classic Motorcycle Rally, August 29 – September 2 The Killington Classic Motorcycle Touring Rally presented by Americade is Vermont's premier motorcycle rally with five days of the best touring in New England. The event features social events, a vendor village, bike & stunt shows, special events, live music, a 12-mile parade of bikes, and, of course, touring the beautiful roads of Vermont. The event is sponsored at $17,000 and is estimated to bring 2,500 people to Killington for 3-5 days. The Vermont Challenge, August 15 - 18 The Vermont Challenge is a cycling race that tours Southern and Central Vermont over 3 or 4 days, bringing attention to local businesses, ski resorts, restaurants and farms in each local community. The event is sponsored at $4,000 and will bring an estimated 600 people to Killington for 1-2 days.
2013 Fall Events (Q3) Killington Restaurant Week, September 7 - 14 Killington Restaurant Week is a promotional event designed to bring business to town from surrounding areas as well as drive local traffic. It is a weeklong event in which Killington restaurants offer their own 3-course menu at a fixed price. Produced by Town of Killington, the event is sponsored at $3,000 and is estimated to help sell 750-1,000 meals. Killington Hay Festival, Labor Day – Columbus Day The Killington Hay Festival is designed to support fall foliage tourism. The festival features 30+ giant hay sculptures, a scavenger hunt, photo contest, and a series of events. Produced by Town of Killington, the event is sponsored at $17,000 and is estimated to bring an additional 1,000 people to Killington during foliage season.
2013 Fall Events (Q3) * Indicates event is currently under negotiation Spartan Beast Race, September 20 – 22 Participants will gather from all across the country to run the military-style obstacle course that winds its way up, down, and around the resort, battling the elements of water, fire, mud, barbed wire, and of course – Spartans! The event is sponsored at $15,000 and will bring an estimated 8,000 people to Killington for 1-2 days. Green Mountain Pug Rescue Annual Social September 20 – 21 Over three hundred Pug-lovers a slated to attend the 2013 the event and take part in the many celebrations throughout the day and raise money to support the mission of the Green Mountain Pug Rescue. The event requires no sponsorship dollars (only staff time) and will bring an estimated 400 people to Killington for 1-2 days. *
2013 – 2014 Event Recruitment Lifetime Fitness Run up the Mountain (TBD): The Town of Killington aims to work with Lifetime Fitness to create the first-ever Run up the Mountain. Participants will be challenged to conquer the beast and run up Killington Road to Killington Resort’s K-1 Lodge. IRONMAN (2014): The Town of Killington will bid to host an Ironman Triathlon, an endurance event featuring consisting of a 2.4-mile (3.86 km) swim, a 112-mile (180.25 km) bicycle ride and a marathon 26.2-mile (42.2 km) run, raced in that order and without a break. Yoga Retreat (2014): An empowering female yogini retreat, practitioners will take in Killington’s breathtaking natural beauty while experiencing yoga in a deep and meaningful way with top female yoga teachers, inspirational speakers, educational seminars, and healthy, gourmet food- all with an emphasis on eating locally and sustainably. For every event we have, we have looked at 6; we are constantly in discussion with new event options
March April May June July August September October December 2013 Event Calendar ½ Marathon Killington July 4 th Celebration Nor’Beaster Note: Nor’Beaster, Bear Mountain Mogul Challenge, Wine Festival, and Holiday Festival are non-Town supported events
2013 Estimated Economic Impact Event NameInvestmentEst. Attendance. Est. Economic Impact* Est. ROI per $ Spent Snoe.down$15,000.004,000$238,600.00$15.91 Killington Stage Race$20,000.001,400$398,655.00$19.93 Killington Half Marathon$0.00750$44,286.00 Killington Junior Golf Tournament$19,500.00360$133,157.00$6.83 3 v 3 Live Soccer$2,500.00750$30,195.00$12.08 The Biggest Loser Run/Walk$3,000.001,000$92,470.00$30.82 Cooler in the Mountains$25,000.005,000$75,000.00$3.00 The Vermont Challenge$4,000.00600$55,482.00$13.87 Killington Classic Motorcycle Rally$17,000.002,500$357,900.00$21.05 Killington Hay Festival$17,000.001,000$59,650.00$3.51 Killington Restaurant Week$3,000.001,000$31,000.00$10.33 Spartan Beast Race$15,000.008,000$1,460,992.00$97.40 Green Mountain Pug Rescue Annual Social$0.00400$23,860.00 $141,00027,110$3,032,247$21.51 Estimated economic impact is calculated by multiplying the number of (a) day visitors and (b) overnight visitors by the respective average seasonal expenditures. These expenditures are based on data collected from the VT Department of Tourism and Marketing. Cooler in the Mountains has been calculated more conservatively to account for individuals that may attend the concerts but make purchases totaling lower than the day visitor seasonal average ($15.00 vs. $40.26).
Marketing Website (photography, hosting, maintenance) Hay Festival and fall advertising ― Businesses will pay a larger share of costs Design supports events and economic development initiatives Continue holiday decorations ―Businesses owners encouraged to decorate and take part in the Festival of Lights competition See attached critical path examples The proposed marketing budget for 2013 is $87,650. Key elements include:
Business Development Building off of the 2010 EDT Strategic Plan, we will investigate how we can create new full time, non-tourism based jobs to grown the year-round population in Killington. Target likely businesses that are likely to come to Killington ― Tech Industries o Highly portable o Require minimum investments for facility infrastructure o Living decisions influenced by lifestyle Planning, Marketing & Special Events, and REDC will work together on initial steps: ―Review local facilities and opportunities ―Survey connectivity and telecommunications network ―Identify necessary upgrades for improvements to make attractive/feasible ―Create a marketing plan to tell our story
Key Actions Year 1 Identify likely targets, create facilities inventory Research and planning: develop marketing plan, story, offering and incentives Determine market feasibility Year 2 Form local partnerships to facilitate deals to site new businesses Take to market Maintain and update available facilities list Work with site consultants to broker relationships (ex: World Economic Development Alliance and others) No additional funding in Year 1; covered by Planning and Marketing & Events Staff Business Development
Chamber Partnership 2013 Priorities Consolidate websites Support Visitor Center opening with partnerships, visitor displays Support efforts to monetize Visitor Center and create a more sustainable organization Strong chamber reduces the need for town to support of investments which can be handled by the private sector
Killington Gateway & Road Beautification Gateway Seek to begin initial phases and Park and Ride facility Aggressively pursue grant funding Begin annual contributions to a restricted fund to ensure vision becomes reality Consider best way to incorporate new visitor center Killington Road Engineering and design of Walkway Extension Increased investments in landscaping and maintenance Commercial District (Killington Rd) Create Master Plan for to guide future investment & zoning and ensure there is a unified thoughtful approach Continue investments to achieve our vision of being a Premiere Resort Community
Trails In 2012 we finished 2 new trails River Road Loop Trail Mission Farm Walking Kayak Trail (opening in 2013) Supported by a grant from the NPS Received a $500 grant for a kiosk to be installed Popular trail map is being updated and printed In 2013 we will continue work on cross country and mountain bike trails as well as a walking path from Visitor Center to Kent Pond and an exercise spot off River Road onto the donated land We have a dedicated trail group of citizens and volunteers Efforts are enhancing recreation amenities for tourists and residents
Proposed 2013 Economic Development Investments ExpenseInvestment Golf Debt$587,909 Events & Marketing $240,630 Gateway$118,304 Killington Rd. Beautification & Sidewalk $27,500 Master Planning for Commercial District $13,500 Trails$5,000 Water Study$3,000 Total*$995,843 *Does not include administration costs