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HomeMy WebLinkAbout04. VLMDAC_Memo_and_Resolution_August_2024_Memo_-_8.6.2024 To: Vail Local Marketing District From: Mia Vlaar Director, Economic Development Department Date: August 6, 2024 Subject: Expanding the purview of the Vail Local Marketing District Advisory Council (VLMDAC) to provide strategic policy direction to the Economic Development Department’s I. BACKGROUND The purpose of this memo is to follow up on the July 2, 2024 presentation to Town Council where the Economic Development Department and SMG Consulting provided a proposal to reorganize Vail’s tourism organization structure. The purpose was to recommend an organizational format to facilitate the evolution of the department into a comprehensive and strategically aligned Destination Marketing Organization. The Town Council approved the reorganization plan, which includes expanding the purview of the Vail Local Marketing District Advisory Council (VLMDAC) to provide strategic policy direction to the Town’s Economic Development Department. This memo is to provide more detailed information on this expansion of purview, which will be memorialized into a resolution by the Vail Local Marketing District. The resolution will authorize the Vail Local Marketing District Advisory Council to provide strategic policy direction for the Town of Vail’s destination marketing efforts, as managed by the Economic Development Department, which will be renamed the Tourism and Economic Development Department. II. STRATEGIC POLICY DIRECTION: THE VLMDAC The VLMDAC will provide strategic policy direction in pursuit of three key goals for the Destination Marketing Organization (DMO): 1). Bringing Guests to Vail. Advertising, social media, public relations, airline relations, group sales, lodging relationships, research/data and analytics and special events to support marketing and optimize guest visitation. Town of Vail Page 2 2). Delivering on the Vail Experience. The DMO oversees the guest experience. This includes customer service training, employee recognition and engagement, special events, community engagement through facilities, the Vail community and trail host program, and stewardship education. 3). Business Development. This includes supporting local entrepreneurship, collaborating with the Vail Chamber and Business Association, and the Vail Valley Partnership, to provide leadership and professional development for small businesses. The VLMDAC currently provides strategic leadership for marketing and communications. Its role will be expanded to include strategic policy direction for all key elements of Vail’s destination marketing organization: Special Events, The Vail Guest/Customer Experience and Business Development. In the new structure, the VLMDAC will align its strategic direction with the Town Council strategic plan to ensure the delivery of effective destination marketing that drives optimized visitation to Vail. The VLMDAC will provide strategic leadership in the development and support of Vail’s Special Events strategy, including funding allocations and special event development, to align with all destination marketing functions. The Commission on Special Events, which was dissolved by Town Council on September 20, 2022, will no longer be required. The VLMDAC will hold a strategic planning session in October 2024 to develop a comprehensive three-year strategic plan for the Destination Marketing Organization. III. VLMDAC APPOINTMENTS, COMPOSITION AND TERMS The VLMDAC is to be comprised of nine members. VLMDAC members are required by statute to own property within the district: the VLMDAC includes both at large and corporate persons designated by a Vail property owner. Of the nine seats, one is to be designated for a Town Council member (with one Town Council alternate member), as is currently in place. Based on the Council’s feedback in July, one seat is to be designated for a marketing representative from Vail Mountain/Vail Resorts. Vail Resorts is a critical partner with whom we share our community, destination and resort, and alignment with Vail Resorts is critical to an effective and successful destination marketing program. The remaining members of the VLMDAC will generally include key marketing leaders from the business community: lodging, restaurants, retail, and service sectors. The transition back to nine VLMDAC members is recommended to occur during the annual appointment of members in December 2024. Town of Vail Page 3 The term of service will remain as two years, with the nine members alternating terms and subject to reappointment by the Vail Local Marketing District each December at the end of each two-year term. The VLMDAC will include a chair, vice-chair and treasurer, each selected by voting members of the VLMDAC. The chair, vice-chair and treasurer positions will be voted upon by the VLMDAC members annually following the December appointment of VLMDAC members. IV. VLMDAC AND TOWN OF VAIL TOURISM AND ECONOMIC DEVELOPMENT DEPARTMENT The Tourism and Economic Development Department will continue to be made up of employees of the Town of Vail and will report to the Town Manager’s office. The Department will continue to deploy contracted resources that offer specific subject area expertise as appropriate to support Vail’s destination marketing efforts. The Tourism and Economic Development Department is responsible for executing the goals of the VLMDAC and the Town Council. The Town of Vail will continue to enter into an annual inter-governmental agreement with the VLMD for services provided by the Town. V. VLMDAC AND TOWN OF VAIL BUDGET AND CONTRACTING The cost of operations and overhead of the Tourism and Economic Development Department will continue to live within the Town of Vail organizational structure. To facilitate the Vail’s special events strategy, the Town will transfer the marketing fund, made up of business license revenue, as well as an annual allocation from the general fund into the VLMD for the VLMDAC to administer. If at the end of the year there are savings in the special events budget, such savings will be transferred back into the Town’s general fund. Any funding coming from the Town of Vail will remain subject to Town Council’s appropriation on an annual basis. Town Council will also approve the annual operating plan and budget for the VLMD, as is the case today. Once funds are transferred to the VLMD, the VLMDAC will be responsible for contracting and disbursement of funds. Contracts of $50,000 or more will be executed by the chair of the VLMDAC. This contrasts with Town Council approving all contracts over $50K as is the case today. Town of Vail Page 4 VI. ACTION REQUESTED OF THE VLMD Staff will return with a formal resolution for VLMD approval at the August 20 meeting. Please provide feedback and any desired changes.