AGENDA Lodgers and Automobile Rental Tax (LART) Citizen’s Advisory Committee Meeting Thursday, October 10, 2019, 3:00 – 4:00 p.m. City Hall, Conference Room, 2nd Floor 107 N. Nevada Avenue, Springs, 80903

1. Call to order/introductions

2. Public comments (for items not on the agenda)

3. Approval of the minutes from the August 15, 2019 meeting

4. Review/recommendations for off-cycle applications

a. Design & Construction of USAFA Visitors Center and Assoc. Infrastructure

b. Colorado Springs Philharmonic Summer Symphony – July 4, 2019

c. Colorado Springs Fire Department – 2019 IAFF Fallen Firefighter Memorial

d. 2020 Pioneer League All-Star Game – Rocky Mountain Vibes (application will be provided by Tuesday, October 8)

5. Member announcements

6. Adjournment

Lodgers and Automobile Rental Tax (LART) Citizen’s Advisory Committee Meeting Minutes Thursday, August 15, 2019, 3:00 – 4:00 PM City Hall, Academy Conference Room, 1st floor 107 N. Nevada Avenue, Colorado Springs, 80903

Committee members present: Laurel Prud’homme / Jack Damioli / Doug Martin / Mina Liebert / David Siegel / Dani Barger / PK Knickerbocker / Daniel Kammerer / Angela Seals / Jeff Zelkin / Doug Price / James Anderson / Madelin Montoya (Youth Ambassador) / Tyler Hoogenakker (Youth Ambassador) / Ben Partin (Youth Ambassador) City staff present: Chris Wheeler / Rebecca Greenberg / Jacquelyn Puett

1) Call to order – Chair Laurel Prud’homme called the meeting to order at 3:00 p.m.

2) Public comments – There were no comments.

3) Approval of the minutes from the July 11 and July 25, 2019 meetings There was a motion to approve the July 11 minutes, as amended. The motion carried unanimously. Doug Martin made a motion, seconded by PK Knickerbocker, to approve the July 25 minutes, as presented. The motion carried unanimously.

4) Complete review of 2020 applications/finalize funding recommendations – The Committee continued their review of the 2020 applications. During the review, it was decided that an additional $500,000 would be added to the contingency fund for future Summit House needs, along with an additional $500,000 earmarked for future special requests and a possible economic downturn. Doug Price made a motion, seconded by Jeff Zelkin, to approve the funding recommendations to City Council (see attached). The motion carried unanimously. The following 2020 applications were considered separately/on an individual basis. 45th Annual Territory Days: Doug Price made a motion, seconded by Jeff Zelkin, to recommend $10,000 in funding for the event. The motion carried unanimously, with PK Knickerbocker recusing herself. Organization of Westside Neighbors – Colbrunn Ct Lighting: Doug Price made a motion, seconded by Daniel Kammerer, to recommend $110,000 in funding for the project. The motion carried unanimously, with PK Knickerbocker recusing herself. Greater Downtown Sidewalk Cleaning: PK Knickerbocker made a motion, seconded by Doug Price, to recommend $15,000 in funding for the cleaning. The motion carried by majority vote, with Laurel Prud’homme recusing herself and Daniel Kammerer opposed. Colorado Springs Community Ventures Summer/Fall Tourism Magazine: Doug Martin made a motion, seconded by Angela Seals, to recommend $18,000 in funding for the magazine. The motion carried unanimously, with Laurel Prud’homme recusing herself. Tokyo Olympic Downtown Celebration: Angela Seals made a motion, seconded by Daniel Kammerer, to recommend $50,000 in funding for the event. The motion carried unanimously, with Doug Martin recusing himself. Pikes Peak Cycling Hill Climb: PK Knickerbocker made a motion, seconded by Doug Price, to recommend $15,000 in funding for the event. The motion carried unanimously, with Doug Martin recusing himself. Restroom Facility: Daniel Kammerer made a motion, seconded by Doug Martin, to recommend $500,000 in funding for the project. The motion carried unanimously, with Mina Liebert recusing herself. Colorado Springs Pioneers Museum: Jeff Zelkin made a motion, seconded by Mina Liebert, to recommend $125,000 in funding for the event. The motion carried unanimously, with Laurel Prud’homme recusing herself.

5) LART Branding project – PK Knickerbocker gave an update on the status of the project.

6) Member announcements – Doug Price commented on peer-to-peer car rentals (Drift, Get Around, etc.) impacting tax collections. The next Committee meeting was scheduled for October.

7) Adjournment – The meeting adjourned at 4:29 p.m. ______

LODGERSAND AUTOMOBILERENTALTAX(LART) Projected Ending Fund Balance 12/31/2019 $2,017,142 Total Anticipated Revenue from LART- 2020 $8,190,000 (hibft Aj Total Available for Appropriation in Z020 $10,207,142 Committee . I______inization ct Name Recommendation Resolution Events Pikes Peak Auto HillClimb Educational Museum Inc. Pikes Peak International HillClimb $134,000 Colorado Springs Veterans Day Parade, Inc. Veterans Day Parade 11,000 Colorado Springs Sports Corporation Rocky Mountain State Games 48,250 Hot Apple Productions, LLC Labor Day LiftOff 134,000 Colorado Springs Philharmonic Orchestra Summer Symphony 155,000 Trails and Open Space Coalition Starlight Spectacular 6,500 Holly Berry House, lnc. Rock Ledge Ranch Foundation Holly Berry House Folk Art Festival 4,300 Colorado Springs Rodeo Association Pikes Peak or Bust Rodeo 21,000 Festival of Lights Festival of Lights Parade 13,500 Pikes Peak Range Rider Foundation Colorado Springs Western Street Breakfast 4,000

IAFFLocalS Fallen I

Colorado Springs Convention & Visitors Bureau CoIorad Springs Convention & Visitors Bureau $ Cultural Office of the Pikes Peak Region (COPPeR) PeakRadar.com I Cultural Tourism Development Colorado Springs Chamber and EDC Business and Employee Attraction/Tourism Marketing Colorado Springs Sports Corporation Sports Tourism Development

Rocky Mountain Highway Music Collaborative MeadowGrass Music Festival $5,000 Military Association (MBACorp) 2020 MBA Finals 7,500 Pikes Peak Celtic Festival Pikes Peak Celtic Festival 8,000 USAPAGreat Plains Region Nonprofit USAPAGreat Plains Regional Pickleball Tournament 10,000

Great White North Communications Ltd. CS International Dragon Boat Festival . 10,000 Associates, LTD 45th Annual Territory Days Street Fair 10,000 Sprinkle Art dba Imagination Celebration What IF...Festival of Innovation and Imagination 14,000 Colorado Springs Sports Corporation The Broadmoor Pikes Peak Cycling HillClimb 15,000 Colorado Springs Youth Sports Complex, Inc. 2020 Triple Crown Challenge at Pikes Peak 15,000 Colorado Springs Youth Sports Complex, Inc. State High School Ultimate Championship 15,000 Revvolution Shift-S3ector LLC Pikes Peak Airstrip Attack 15,000 Colorado Springs Community Ventures dba Downtown Summer/Fall Tourism Magazine 18,000 Ventures Colorado International Events St. Patrick’s Day Festival 20,000 Space Foundation Summer of Discovery 20,000 National Middle School Basketball Association Colorado Middle School Basketball Championship 20,000 Anthem Enterprises LLC USACrits Downtown Pro Criterium 25,000 Colorado Springs Youth Sports Complex, Inc. 2020 Rush Fest and Summit 35,000 Rocky Mountain Field Institute (RMEI) Garden of the Gods Community Stewardship Program 20,000 Rocky Mountain Field Institute (RMFI) Barr Trail Stewardship and Improvement Project 20,000 CHD,LLC Western Shootout & Showcase 40,000 Pikes Peak Outdoor Recreation Alliance Pikes Peak Outdoor Recreation Alliance 2020 50,000 Colorado Springs Fine Art Center at Isamu Noguchi Exhibition 50,000 Colorado Springs Sports Corporation Tokyo Olympic Downtown Celebration 50,000 United States Olympic Museum Grand Opening 50,000 Triple Crown Sports Sparkler Juniors 75,000 Pikes Peak Outdoor Recreation Alliance North American MTBChampionships @Pikes Peak 85,000 Colorado Springs Pioneers Museum Colorado Springs Pioneers Museum 125,000 Chamber and EDC Airport Advertising 40 lforTourism/Communr Capital Improvements Greater Downtown Colorado Springs Business Improvement Sidewalk Cleaning $15,000 District Colorado Springs Parks, Recreation, and Cultural Services North Cheyenne Canon-reconstruction of Silver Cascade 150,000 Trail and Overlook above Helen Hunt Falls Colorado Springs Parks, Recreation, and Cultural Services Garden of the Gods Park-construction of new restroom 500,000 facility Organization of Westside Neighbors on behalf of 0CC Colbrunn Ct Lighting and Bollards 110,000 Partnership

ozOLA1 USAFA Visitors Center – Project Summary LART Funding Application

The US Air Force Academy Visitors Center is one of four hallmark tourism projects sponsored by the City of Colorado Springs under the 2013 “City for Champions” initiative. The new Visitor Center is approximately 32,000 sf in size and includes a welcome center, exhibit space, gift shop, theater/meeting room and administrative offices along with other back of house requirements. The Visitors Center is part of a larger development, TrueNorth Commons, and is located outside of the Air Force Academy’s north gate at the intersection of I‐25 and Northgate Boulevard. A 375‐room full‐service hotel, 180,000 sf of office, 20,000 sf of retail/restaurants and an indoor skydiving facility surround the Visitors Center creating another destination location in the Pikes Peak region. The USAFA Visitor’s Center Business Improvement District is responsible for financing and constructing the Visitor Center along with other infrastructure needed to serve the overall development.

Since the September 11th tragedy, the Air Force Academy Visitor Center has experienced a significant drop in visitation from over a million visitors annually to 250,000 in 2017. This decline is related to the perception that the Academy cannot be easily accessed by civilians due to increased security requirements at US military installations throughout the world. Moving the Visitor Center to outside the gate is expected to ameliorate this misconception and drive visitation above pre‐September 11th levels. The economic study completed for the C4C projects estimates the project will generate approximately 160,000 net new visitors to the Pikes Peak Region annually.

TrueNorth Commons will generate in excess of 1,200 permanent and 1,700 temporary jobs adding $2+ billion to the regional community of Colorado Springs and El Paso County over the next 30 years. The development is expected to generate over $19 million in new LART revenues to the City of Colorado Springs over the same time period.

The development of the Visitor Center including public infrastructure and FFE is estimated to cost $63.5 million. The project is being funded through a combination of taxable and tax‐exempt bonds with the following sources of funds:

 Urban Renewal Tax Increment  Business Improvement District Mill Levy  Regional Tourism Act  Sales and Lodging Public Improvement Fees (PIF)  Public and Private Contributions for FFE (Fixtures, Furniture and Equipment)

The Public Finance Plan highlights a funding gap of $2 million matching our request for $2 million in LART funding. An agreement for LART funds is needed prior to the placement of bonds for the project, currently scheduled for November 2019. Bond funding is required by December 16, 2019 or funding from the Regional Tourism Act, $13.2 million, could be forfeited and the overall project will be in jeopardy.

Schematic design has been completed for the Visitor Center and the utilities. Following bond closing, final design will commence for each of the infrastructure elements (grading, utilities, storm water and roadway). Grading will commence in April 2020, with utilities following in June and roadway improvements beginning in September. Pad sites will be delivered to the sub area developer in August 2020. Except for roadway improvements, trunk infrastructure will be completed in 2020. Roadway improvements will be completed by mid‐2021 with landscaping to follow as site development is completed. Visitor Center construction is expected to commence by September 2020, conveyed to the USAFA in 2022 and opened in late 2022.

City of Colorado Springs LART Committee

October 10, 2019 An Interview Presentation USAFA Enhanced Use Leasing Project Slide 1

Land Plan Graphic

USAFA Enhanced Use Leasing Project Slide 2 Visitors Center Floor Plans

USAFA Enhanced Use Leasing Project Slide 3 Visitors Center Sections

USAFA Enhanced Use Leasing Project Slide 4 Concept Development Plan – Initial Phase

Land Use Site GFA (sf) Area (acres) Visitors 7.0 27,300 Center

Hotel 10.0 300,000 Commercial 6.0 25,000 Retail

Office 8.0 180,000 Public 4.0 Infrastructure

Future 16.0 Development

Site Totals 51.0 532,300

USAFA Enhanced Use Leasing Project Slide 5 Development Program

. City for Champions Project – Focused on Increasing Tourism in the Pikes Peak Region . Approx. 160,000 Net New Visitors according to C4C Study

. USAFA Visitors Center . City for Champions Project with RTA Grant Funds ($13.2M; $7M net present value) . Approx. 32,000 sf . Welcome Center, Exhibit Space, Theater/Meeting Room, Gift Shop, Offices, Back of House . Polaris Plaza . New Trailhead for the New Santa Fe Regional Trail . Constructed by the BID and conveyed to the USAFA who will Own, Operate and Maintain the Facility

. Full Service Hotel . 375 Room Full Service Hotel

. Class A Office . Approx. 180,000 sf

. Retail/Restaurants . Approx. 20,000 sf

. I-Fly – Indoor Skydiving Center

USAFA Enhanced Use Leasing Project Slide 6 LART Request

. Applicant - USAFA Visitor’s Center Business Improvement District . Title 31 Special District unit of Government . Formed in November 2018 through City Council Authorization . Purpose • Construct Public Infrastructure related to the TrueNorth Commons Development • Construct the USAFA Visitors Center • Operate and Maintain District-owned Infrastructure and Common Areas . Oversight by City Council • Board Appointed by City Council • Approval of Annual Budgets • Approval of all Debt Issuance

. Project Benefits . Visitor Center Expected to generate 1M Visitors Annually . 160,000 Net New Visitors (C4C Study) to the Pikes Peak Region . 1,700 Temporary and 1,200 Permanent Jobs (Summit Economics) . $2+B Local Economic Impact over 30 years (Summit Economics)

. City LART Revenue (30 Years) - $19.8M . Est. LART Revenue from net new Visitors to the Pikes Peak Region $10.2M (C4C Study) . Est. LART Revenue generated by the Project $ 9.6M (Summit Economics)

. LART Request . $2,000,000 . Three (3) Annual Increments beginning in 2020

USAFA Enhanced Use Leasing Project Slide 7 Regional Economic Impacts

25 Year Economic Impact Analysis - New Development

Construction (Temporary) Jobs Jobs Avg Wage Direct 1,155 $ 50,056 Indirect 255 $ 60,966 Induced 327 $ 42,035 Total Construction (Temporary) Jobs 1,737 $ 50,149

Permanent Jobs Jobs Avg Wage Direct 894 $ 46,864 Indirect 32 $ 48,623 Induced 234 $ 42,412 Total Permanent Jobs 1,161 $ 46,016

Economic Impact (Value Added) 25 Years Avg Annual Constr Impact $ 214,765,911 $ 8,590,636 Permanent Impact $ 2,383,767,769 $ 95,350,711 Total Economic Impact $ 2,598,533,680 $ 103,941,347

USAFA Enhanced Use Leasing Project Slide 8 LART Revenue

. LART Request . $2,000,000 . Three (3) Annual Increments beginning in 2020

. New LART Revenue (30 Years) Est. LART Revenue from Net New Visitors to Pikes Peak Region (C4C Study) $ 10,168,000 Est. LART Revenue generated from Project (Summit Economics) $ 9,567,113 $ 19,735,113

Average Annual LART Revenue $ 657,837

. Ratio of LART Generation to LART Request - 10:1

USAFA Enhanced Use Leasing Project Slide 9 BID Finance Plan – Sources & Uses of Funds

USAFA Enhanced Use Leasing Project Slide 10 Project Schedule

. Master Lease with USAFA . October 2019

. Environmental Assessment (EA)/Finding of No Significant Impact (FONSI) . October 2019

. Bond Closing . December 2019

. Infrastructure Design and Construction . Design: December 2019 – June 2020 . Ground Breaking: April 2020

. Sub-Area Development Construction . Ground Breaking: August 2020

. Visitors Center Design and Construction . Schematic Design Completed . Design Development and CD’s: January 2020 – August 2020 . Ground Breaking: September 2020 . Completion: April 2022 . FFE by USAFA: May 2022 – November 2022 . Grand Opening: December 2022

USAFA Enhanced Use Leasing Project Slide 11 Questions & Discussion

Dan Schnepf Don Hunt Managing Member Public Finance Director Blue & Silver Development Partners, LLC Blue & Silver Development Partners, LLC

Eric Smith Director of Development Blue & Silver Development Partners, LLC

USAFA Enhanced Use Leasing Project Slide 12 Colorado Springs Philharmonic 1:36 PM July 4, 2019 Concert 09/20/2019 July 2019 Accrual Basis Name Memo Amount Vendor Expense Conductors & Guest Artists Total 7200 · Guest Artists 1,500.00 Total 7210 · Guest Artists-Travel Reimb 1,343.87 Total Conductors & Guest Artists 2,843.87 Production Total 6150 · Venue Rental 717.00 Total 6205 · Non-Venue Production 13,287.00 Total 6210 · Permits 112.50 Total 6225 · Non PPC Production Lighting 672.00 Total 6235 · Non PPC Production Supplies 38.91 Total 6245 · Non PPC Summer Stage Rental 46,275.00 Total 6250 · Non PPC Summer Barricades 13,837.20 Total 6251 · Non PPC Summer Fireworks 15,450.00 Total 6252 · Non PPC Summer Vendor Exp 8,920.74 Total 6253 · Non PPC Summer City Services 43,874.68 Total 6255 · Non PPC Summer Equip Rent/ Main 5,274.07 Total 6256 · Non PPC Summer Waste Mgt 18,290.00 Total 6260 · Non PPC Musician Transportation 900.00 Total 6280 · Non PPC Concert Hospitality 267.37 Total Production 167,916.47 Direct Marketing Total 6590 · Direct Mail 195.46 Total 6695 · Marketing Supplies 2.79 Total Direct Marketing 198.25 General & Insurance Total 8350 · G&A Insurance 1,236.00 Total 8450 · Miscellaneous Board Mtg Expense 398.31 Total General & Insurance 1,634.31 Total Vendor Expense 172,592.90 Orchestra Costs: Total Orchestra Costs 25,256.60 Staff and Administrative Costs 35,612.91

TOTAL EXPENSES 233,462.41

Income Contribution Revenue Total 4030 · Government Entities City of Colo Spgs LART funding 146,500.00 Total 4032 · Corporations sponsorships 27,500.01 Total 4045 · Individual Contributions cash from July 4 buckets 2,366.93 Total Contribution Revenue 176,366.94 Other Revenue Total 5540 · Vending & Merchandising 18,324.90 Total Other Revenue 18,324.90

Total Income 194,691.84

NET PROFIT (LOSS) (38,770.57) Colorado Springs Philharmonic LART Grant Requests and Awards

Request Awarded 2015 120,000 104,000 2016 140,000 123,000 2017 142,100 142,100 2018 145,000 146,500 2019 149,500 146,500 2020 162,000 155,000

Note: 2020 approval of $155,000 is still pending.

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2 ______n/a______

COLORADO SPRINGS

2019 LARTFUNDING APPLICATION APPLICATION#

APPLICANTINFORMATION Name (as legally registered): Program/Event Name: IAFFFallen Firefighter Memorial Colorado Springs Fire Department Program/Event Date(s):

Category: XTourism Contact Person: Mailing Address: Beth Conklin 375 Printers Parkway Colorado Springs, CO 80910

Title: Fire Administrative Services Manager Email: [email protected] Telephone Number: 719-385-7232 Web address:

X Non-Profit For-Profit Federal Tax ID: 84-6000573

LARTamount requested: $ (cash)

PROJECT/EVENTINFORMATION:

Attendance Prior year attendance (please select one of the following):

Estimated attendance (no ticket, gate entry, or participant fee that tracks attendance): _7,500______

Actual attendance (based on tickets, entry fee, or other tracking):

— Prior attendance unknown/this is a first time event

If available, please also indicate number of:

Vendors: n/a______Support staff/volunteers: 200 Media in attendance: 12

Current year estimated attendance:

Paid entrants/participation fee: n/a______Free admission/participation estimate: 7,500

Prior year actual hotel room nights (please select one of the following):

Actual room nights (based on reservation code, hotel reporting, or other tracking): _IAFF contracted for 2,331 room nights______

— Unknown/first time event

Current year estimated hotel room nights:

Estimate based on participants and/or spectators for event: _2,331 room nights______

— No room nights expected/local event/one-day event 5 of 7 COLORADO SPRINGS

Funding

1) Have you previously received LARTfunding? Yes_ No_X_ If yes, please list year(s), amount(s), and how funding was used. (Attach additional sheet if necessary.)

Year Amount Use

2) Will you (do you) receive funds from other sources? Yes No X If YES,please provide the funding source and amount. (Attach additional sheet if necessary.)

Source Cash (amount) In-Kind (value) This request is to avoidhavingthe Generalfund coverthe overtimecostsfor a privatevendorevent

ALLapplicants (including repeat) must provide the following as attachments:

1) Verification of your non-profit status, preferably a copy of IRSdocumentation (ifapplicable) 2) Completed W9 and Statement of Authority (available on our website and in the application packet) 3) A detailed budget for the entire organization 4) A brief history of your organization including date founded and purpose or mission statement (1 page maximum) 5) A brief proposal summary explaining the primary benefits of your program! event as it relates to LARTfunding. For events, please provide event schedule, dates, duration, frequency and venues, if available (1 page maximum) 6) A plan for attracting out of town visitors (1 page maximum) 7) A proposed budget for the program/event, including other funding sources (1 page maximum) 8) An overall, annual budget for the organization (if unavailable, please explain) 9) A proposed marketing plan, to include planned advertising, media exposure, and other promotion for the program/event 10) Method for calculating the number of attendees (surveys, ticket sales, gate entry, participation fees, etc.) 11) Method for estimating hotel room nights and car rentals (If not applicable, please specify) 12) Listof Board of Directors

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Applicants for Capital Improvement or Special Circumstance consideration:

Please complete this application to the best of your ability. Ifsections on attendance and hotel calculations do not apply, please leave blank. In addition, please provide a summary (one page maximum) of your special request, including how your request will: attract visitors to the City and to the Pikes Peak Region, provide economic and cultural benefit, enhance the quality of life in the City, and/or engage the community and encourage tourist activity.

Program/Event information

Please list the aspects of your program/event for which you are requesting funds. Rank them in the order of their importance, with one being the highest. Examples: promotion/advertising, event day logistics (barricades, security, park fees, CSPD, CSFD),supplies, etc.

Priority Description Funds requested

I CSFDOvertime — $21,684expense,Iquested amountis balancefrom IAFF $15,881 Reimbursement. IAFF hasbeen allocated$19,500for 2019 to coverCSPD overtime, CSFD SpecialEventsteam,permitfees,and a portionof CSFD overtime.

Please list ways in which you will partner with the City of Colorado Springs, Convention and Visitors Bureau, , hotels or other entities for co-op opportunities, cross promotion, etc. Example: Links on website, cross- prom otion on Facebook, special discount codes, booth at event, etc.

Entity Co-op/partnership opportunity

Application submission: Submit one electronic copy to Assistant to Council: [email protected] or deliver a hardcopy to:

Jacquelyn Puett — City Hall, 107 N. Nevada Avenue, Suite 300, Colorado Springs, CO80903. Applications must be received by Thursday, May 3, 2018, at 5:00 p.m.

Certification:

I have read and completed the 2019 LARTFunding Application and have included the required attachments.

I, the undersigned, certify that the information contained in this application and in all attachments is true and correct to the best of my knowledge.

Elizabeth Conklin, Fire Administrative Services Manager Or nization contact aThUtitle (please print)

Si ature ate

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