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City Council Work Session City Council Conference Room 418 East Second Street Monday, August 03, 2020 6:00 to 7:00 Pm

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City Council Work Session City Council Conference Room 418 East Second Street Monday, August 03, 2020 6:00 to 7:00 Pm CITY COUNCIL WORK SESSION CITY COUNCIL CONFERENCE ROOM 418 EAST SECOND STREET MONDAY, AUGUST 03, 2020 6:00 TO 7:00 PM 1. Call to Order 2. Sustainable Tourism Management Plan 3. Public Comment 4. Direction to City Manager 5. Adjourn City Council Packet, August 3, 2020 Page 1 of 245 July 28, 2020 Whitefish City Council P.O. Box 158 Whitefish, Montana 59937 Dear Mayor Muhlfeld and City Council, I am pleased to present the Whitefish Sustainable Tourism Management Plan (STMP) for your review at the City Council Work Session on August 3rd. This plan is the culmination of over two years of hard work by the volunteer committee, consultants, and advisors to the committee. On behalf of the STMP Committee, we want to extend a huge thanks to consultants Kate McMahon, Lorraine Roach, and Michelle Archie, as well as committee advisors Dylan Boyle, Rhonda Fitzgerald, and former City Councilor Jen Frandsen for their dedication. Our biggest takeaway from this experience has been that a strong and sustainable tourism economy touches all facets of our community and various economic sectors. There is not one single answer to addressing sustainable tourism. As such, this is a complex plan that provides a lot of data and implementation action items. Please take some time to review the plan - the executive summary provides a succinct overview of the identified action items. Kate McMahon and Lorraine Roach have done an excellent job and went above and beyond to collect the data while also facilitating public meetings and conversations with various stakeholder groups. As you may recall, the Sustainable Tourism Management Plan was scheduled for a work session on March 16th which was cancelled due to the COVID-19 pandemic. Since that initially scheduled work session, our world has fundamentally changed. After reviewing the plan in mid-July with the STMP Committee, we believe that the plan as presented, with minor modifications, provides a solid framework in which to tackle the identified action items in the plan while adjusting to and reacting to the short term and long term impacts of COVID-19. As our community is currently experiencing unprecedented impacts as a result of COVID-19, Dylan Boyle, Executive Director of the Whitefish Convention and Visitors Bureau, has created a briefing paper attached on the next page to highly recent short term impacts. In closing, the STMP Committee is recommending that a standing committee be formed to work on the identified action items in the plan, as well as work to address the long term impacts of COVID-19 on our tourism economy in conjunction with the City and the Whitefish Convention and Visitors Bureau. Thank you for your consideration of this important plan. If you have questions in advance of the meeting, please contact Lauren Oscilowski, at 406-407-5909 or [email protected]. Sincerely, Lauren Oscilowski Chair, Whitefish Sustainable Tourism Management Committee City Council Packet, August 3, 2020 Page 2 of 245 Briefing Paper For STMP City Council Work Session: COVID-19 July 28, 2020 The Whitefish Convention and Visitors Bureau (Explore Whitefish) has been monitoring the impacts of COVID-19 since mid-March. This briefing paper provides a brief snapshot of the short term known impacts of COVID-19 on the economy of Whitefish. Whitefish Business Economic Impact Study The results of this study estimated the economic impact on businesses in the last two weeks of March, as a result of the COVID-19 emergency, which forced the early closing of Whitefish Mountain Resort during ski season. Initial estimates revealed that the business community operating within the City of Whitefish experienced total revenue losses of over $732,000 per day compared to the same time period last year. Whitefish Lodging Occupancy The true impacts on lodging properties began in mid-March. Below you will find a graph with lodging occupancy percentages which shows drastic changes compared to historical data. • March occupancy was approximately 30% down compared to last year. • April – May occupancy was restricted to essential travel and thus was down 50% or more compared to last year with occupancy rates hovering around 20-25%. • June occupancy was approximately 50%, which is down over 30% compared to last year. • As Montana reopened to out of state visitors on June 1st, advanced lodging numbers for summer (June – Sept) were well below last year, with most lodging properties reporting advanced reservations of 75% or more down. • Last minute reservations have picked up for the summer, but overall lodging numbers are still significantly down from last year. City Council Packet, August 3, 2020 Page 3 of 245 Whitefish Trail Recreational Use The combination of limited services and capacity with the desire to social distance outside has resulted in increased use of the Whitefish Trail. Using infrared trail counters, Whitefish Legacy Partners determined that trail use at Lion Mountain increased 27% during April, May and June of this year compared to the same months’ average over the last three years (2017-2019). This sharp increase in trail use this year has directly increased needs for maintenance and community outreach on the Whitefish Trail. Summer 2020 and beyond There is so much variability in the kind of travel happening this summer, with an outsized regional and long-haul drive market and fewer fly-in visitors, as well as more people traveling in RVs or staying in short-term rentals, second homes, or camping instead of staying in hotels. This trend has also been noted in national travel trend data from the U.S. Travel Association and Destination Analysts. With that said, the window for advanced hotel reservations has narrowed dramatically this summer compared to a typical year. Usually, summer reservations are made months in advance while many reservations this summer are being made in a matter of days. As there are so many variables occurring constantly during these unprecedented times, it is still very difficult to quantify the long term impacts of COVID-19. As such, the work put forth by the Whitefish Sustainable Tourism Management Plan Committee (STMP) is as important and valid as ever and Explore Whitefish looks forward to working on the actionable items identified in the STMP in conjunction with the City in the face of real uncertainty. Sincerely, Dylan Boyle Executive Director, Whitefish Convention and Visitors Bureau City Council Packet, August 3, 2020 Page 4 of 245 Sustainable Tourism Management Plan 2020 City of Whitefish Whitefish Convention and Visitor Bureau City Council Packet, August 3, 2020 Page 5 of 245 1 ACKNOWLEDGMENTS City Council Mayor John Mulfield Melissa Hartman Andy Feury Ryan Hennen Rebecca Norton Frank Sweeney Steve Qunell Sustainable Tourism Management Plan Committee Lauren Oscilowski (Chair) Councilor Andy Feury Michell Howke Mariah Joos Alan Myers-Davis Nick Polumbus Meagan Powell Brian Schott Craig Workman Steve Thompson (Past Member) Consultants/Advisors Dylan Boyle, Whitefish Convention and Visitors Bureau (Director) Rhonda Fitzgerald, Montana Tourism Advisory Council Jen Frandsen, Former City Council Member Kathleen McMahon, Applied Communications (Consultant) Lorraine Roach, Hingston Roach Group (Consultant) Michelle Archie, Harbinger Consulting Group Adopted (To be determined) City Council Packet, August 3, 2020 Page 6 of 245 2 TABLE OF CONTENTS Executive Summary 3 I. Planning Overview 7 II. Community Engagement 16 III. Tourism 24 IV. Economic Diversification 47 V. Housing & Development 68 VI. Environment 87 VII. Transportation 100 VIII. Implementation 111 IX. Appendix 122 City Council Packet, August 3, 2020 Page 7 of 245 3 Executive Summary Over the past decade, there has been a noticeable increase in the number of people spending time in Whitefish, especially during the peak summer season. There is concern that too much visitation will diminish the quality of life that the community values and that visitors find so attractive. The purpose of this Plan is to promote sustainable community-based tourism development that is beneficial to community members, employees, and visitors. “Sustainable Tourism: A sustainable approach to tourism means that neither the natural environment nor the socio-cultural fabric of the host communities will be impaired by the arrival of tourists. On the contrary, the natural environment and the local communities should benefit from tourism, both economically and culturally. Sustainability implies that tourism resources and attractions should be utilized in such a way that their subsequent use by future generations is not compromised.” (Source: World Tourism Organization) A resident survey showed concerns related to housing prices, traffic, infrastructure, and community character. While residents identified challenges related to growth in visitation, they also recognized the benefits that accompany the tourism industry. These include positive economic impact from nonresident visitors that contributed $614 million to the regional economy in Flathead County in 2018. Each year skiers at Whitefish Mountain Resort contribute $12.1 million to the economy and Whitefish Trail visitors contribute $6.4 million in consumer spending. The resort tax provides funding for roads, parks, other infrastructure, and a portion allocated for a property tax rebate. This Plan relies on community input to identify fundamental values that underlie plan recommendations. These values are expressed as the three key pillars. Key Pillars City Council Packet, August 3, 2020 Page 8 of 245 4 Data regarding population growth, new construction, and visitation reveal that nonresident tourists only account for a portion of the increase in summer crowds. Whitefish experienced a 3% annual average population growth rate since 2010 while Flathead County experienced an annual average growth rate of 2% per year. In addition to this population increase, there has been corresponding growth in seasonal/vacation homes that are primarily used during the peak summer months. New hotel construction has contributed to visitor growth but the increase in short-term rentals, through companies such as AirBnB and VRBO, has far outpaced the number of new hotel rooms.
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