HomeMy WebLinkAbout3. 2018 Burton US OPen Funding Request 2017-12-05
11/29/2017 Page 1
To: Vail Town Council
From: Economic Development Office
Date: December 5, 2017
Subject: Burton US Open Championships Funding Request Follow-Up
Action Requested: Council to approve, modify, or deny Burton’s request for additional
event funding for the 2018 Burton US Open Championships.
Background: 2018 marks the 6th year the Burton US Open Championships will be held
in Vail. The event is scheduled for March 5–10, 2018. Burton submitted their 2018
funding request in June (attached) in the amount of $490,000 + value of in-kind services
described in their application. The amount of $490,000 includes an additional request
of $86,000 compared to the 2017 allocated funding level of $404,000.
Burton provided further information regarding their intended use of the additional funds
via a memo provided to Council during the evening agenda of the October 3, 2017
meeting. Council reviewed this memo and recommended that Burton attend a future
meeting to discuss the additional funding use.
Next Steps: Burton will attend the Council meeting on December 5, 2017 to present
their intended use of their funding requested.
Attachments:
Burton Funding Application to CSE
Burton Memo addressing additional funding request
TO: Vail Town Council
FROM: Finance Department
DATE: October 3, 2017
SUBJECT: Proposed 2018 Town Manager’s Budget
I. SUMMARY
On September 19th, Council reviewed the first draft of the Town Manager’s budget for 2018.
The following memo is a repeat of the memo provided on September 19th, with responses to
Council inquiries highlighted below.
II. DISCUSSION
Information provided in this first ordinance reading of the 2018 budget includes the proposed
revenue and expenditures for all town funds, a summary of changes in personnel, funding
recommendations for Council contributions and a five-year capital plan.
The following budget philosophies are included in this 2018 budgetproposal:
x Use a sales tax revenue projection of 2% over 2017 amended budget
x No increase to operating budgets in departments not including specific increases that
may be requested by departments to meet the stated goals of the upcoming budget
year. Any special requests are outlined below.
x Council supported a proposed performance-based merit increase of up to 4%.
x Council discussed a number of capital projects, including some newly-identified projects
currently unfunded.
Responses to Council Inquiries on September 19:
Council Contributions
x Council asked if the irrigation system request from Betty Ford Alpine Gardens
was related to prior issues with the fountains. In reaching out to both the town’s
facilities manager and Nicola Ripley of BFAG, staff confirmed that the irrigation
issues are separate from the fountain repairs.
x Council requested a future presentation from both childcare organizations in
town. Staff is arranging this for a November / December meeting.
x Council asked for more information on the additional $86,000 asked for the
Burton US Open event. Burton has provided a more detailed explanation in
Attachment A.
x Council requested that staff meet with the Pete Seibert Memorial group and
discuss options regarding size/scope and cost of the project. Bill Rey of Claggett
Rey Gallery supported keeping the sculpture at the current “life size” however
2FWREHU3DJH RI
9/27/2017
Goal:Levelsettheoverallbudgetaryplantakingintoaccountthepast5yearsofgrowthand
economicsuccessforTOVcombinedwithsignificantincreasestoinͲtowncostsfortheevent.
Focus:Provideapremiumlevelofservicetospectators,businessesandpartnerslongterm
withcontinueddevelopment.
Challenges:
• LodgingͲRatesincreaseexponentiallyyearoveryear.
• Venues/Bars/RestaurantsͲPricingandtermsforrentalofvenuesforeventshavebecome
unreasonableandpresentrisk.
• Safety/InfrastructureͲThesuccessandpopularityoftheeventrequiresadditionalinvestment
tomaintainstandards.
TheBurtonUSOpenhascreatedademandthatisnowbenefittingtownbusinessesinwhatwas
formerlyanoffͲpeakperiodandnowonemostsuccessfulweeksoftheyear.Wemustoffseta
portionoftheincreasesasaproductofoursuccessinordertokeepthiseventsustainableover
time.
BurtonwillcontinuetoinvestinareasthatareinthebestinterestoftheVailcommunityand
Vailbusinesseswhilekeepingthe36Ͳyeareventlegacyandbrandintact.
Investmentopportunitiesfor2018include:
•Expandedfootprintintown.Newandenhancedinstallationsimprovingguestexperience.
•Evolutionoflocalbusinessinitiatives.Programsaimedatincreasingfoottrafficandspend,
targetingnewmerchantswithmoreintegratedpromotion.
•Continuedfocusonkeymarketinginitiatives.AttractkeydemographictoVailforlongterm
stays.
BurtoniscommittedtobestinclasseventexecutionwithadirectROIforTOVatalevelabove
industrystandards,orthatofotherUSOpenpartners.Burtonwouldcapitsrequestatthe
sameamountfor2019,noincreasebeyondwhathasbeenrequestedfor2018.
Sincerely,
BurtonPartnershipsandEventsTeam
"UUBDINFOU"
2FWREHU3DJH RI
1
March 5 – March 10, 2018
Application for Town of Vail 2018 Funding
Applied 6/30/17 by:
2
APPLICATION FOR TOWN OF VAIL FUNDING
GENERAL INSTRUCTIONS
All applications must be submitted to the Town of Vail by June 30, 2017 by 5:00 P.M. You must provide
an electronic version only (single file please), sent to csmith@vailgov.com. Any application
received after that date will not be considered.
For questions on the financial statements, please contact Carlie Smith at 479-2119.
PLEASE TYPE THIS APPLICATION OR PRINT IN BLACK INK
1. Name of organization:
2018 Burton US Open Snowboarding Championships
2. Contact person:
Marc Murphy (Burton) and James Deighan (Highline)
3. Mailing address:
Burton Corporation, 80 Industrial Parkway, Burlington, VT 05401
Highline, 12 Vail Rd, Suite 500, Vail, CO 81657
4. Telephone:
Burton Corporation, 802.651.0493
Highline, 970.331.5312
5. E-mail address:
marcm@burton.com
jdeighan@gohighline.com
6. Members and Titles of your governing board:
Marc Murphy, Director – Partnerships, Burton Snowboards
Ian Warda, Senior Director – Partnerships and Events, Burton Snowboards
Whitney Heingartner, Manager – Partnerships, Burton Snowboards
James Deighan, Partner, Highline Sports & Entertainment, Inc.
Peggy Wolfe, Director of Event, Highline Sports & Entertainment, Inc.
7. Amount of contribution requested:
$490,000 + Value in kind as outlined below (and as per the full 2018 USO
Operations/Storage Overview attached as Exhibit A and Exhibit B):
Soccer Lot: February 22 – March 16, 2018 - full use of entire lot
RV Lot: February 22 – March 16, 2018 - Full use of entire lot for oversized vehicle staging and
storage with light operational use. Lot to be managed full time with dedicated Boneyard manager to interface with
all vendors, TOV officials and employees, and guests.
8. Organization fiscal year-end:
Burton - January 31
Highline – December 31
9. Are your books audited?
Burton books are reviewed by Price Waterhouse Coopers
Highline books are reviewed by Keil & Associates, CPA
10. What category of funding is your organization applying for? (see definitions on
3
page 1):
Signature Event
11. How will the contribution be used?
The TOV contributions will be used to provide guests of the event and the Town of Vail a high impact /
safe winter sport experience to ensure repeat, long-term visits:
• Grow youth outreach programs considering previous years successful activations (i.e. reporter
program)
• Increase communication and marketing efforts pre-event with local businesses
• Grow marketing for out of state and foreign visitors
• Continue growth of junior jam programming
• Grow Broomball participation and community attendance
• Maximize entertainment efforts at Solaris
• Continue to develop logistical solutions for guests at concert venue
• Identify and implement reasonable solutions for families visiting Golden Peak competition venue
• Attract celebrity clientele
• Data collection
• Grow sponsorship & B2B opportunities for Burton and TOV
• Expand environmental and sustainability efforts
• Showcase Vail as a premier destination across all media outlets available to Burton
11. How does your request support item 1C of the contribution policy?
The USO provides a premier event each winter which has proved to deliver a considerable increase in
economic impact to local businesses and the Town of Vail which has been shown each year in our final
recap. In addition to economic impact, the USO delivers a memorable experience for a key demographic
which will ensure their return, year after year. From tax revenue to increases in ADR, since the USO has
arrived in Vail in 2013, this Partnership has delivered measureable and positive impacts on the
community, experience and economy.
The 2018 USO will continue to deliver:
• Global awareness
• Entertainment and lifestyle attractions for millennials & families
• Repeat visitors from past events, longer term stays
• Encouraged participation of local community, businesses and youth
• Safe environment for all guests
12. Who currently funds your organization (other governments, private donations, user fees,
etc.)?
Burton is a privately held company.
Highline is a privately held company.
The US Open Snowboarding Championships is funded by Burton Snowboards and
corporate Partners
13. Organization's mission statement:
Set the standard for best in class international winter events through superior on-hill venues and high
levels of competition, as well as outstanding off-hill entertainment and unique activations while
showcasing the partnership between three premium brands in Burton, Town of Vail, and Vail Mountain.
4
APPLICATION FOR TOWN OF VAIL FUNDING
Balance Sheet
*Highline Sports & Entertainment, Inc. – Available upon request
** Burton Corporation, as a privately held company, It is the company policy not to disclose financial
information.
5
APPLICATION FOR TOWN OF VAIL FUNDING
Profit & Loss Statement – Current Fiscal Year Budget
2018 US Open Budget
Marketing $4,869,000
Marketing Campaign / Media Buy
$69,000
Global broadcast production / distribution
$892,000
Staffing
$756,000
Course / Venue build
$433,000
Event infrastructure
$580,000
In-town activations
$450,000
Security / Police / Medical
$119,000
Branding
$221,000
Food & Beverage
$158,000
Lodging
$770,000
Travel
$47,000
Shipping / Storage
$32,000
Prize Money
$342,000
6
ATTACHMENT A
2018 USO OPERATIONS / STORAGE OVERVIEW
In order to produce a world-class event with the scope and scale of the US Open Snowboarding Championships,
we require adequate operations compound space and storage facilities throughout the duration of the event,
including load-in, build, event days, tear-down, and load-out. The plan below outlines these requirements which
accurately represents the operations footprint of the event, and accounts for the possible impact on TOV
stakeholders and guests by implementing processes and safety measures that contribute towards maintaining the
high level guest experience standard that has been set in Vail.
2018 Plan Outline:
Soccer Lot: February 22 – March 16, 2018 - full use of entire lot
* Lot to be staffed full time with dedicated Boneyard manager to interface with all vendors, TOV officials and
employees, and guests. Lot to be clearly labeled with signage at entrance notifying parking permit holders of the lot
closure for the specified dates.
· Primary GP Operations Compound: Working area for Inventory, sort, load/prep load of all operational
infrastructure from all vendors.
· Long term storage
· (6) 20’x8’ storage containers
· Heavy equipment:
o (1) 8k variable reach forklift
o (1) 6k rough terrain straightmast forklift
o (3) skid steers with fork attachments
· Work Vehicles
• (3) 26’ box trucks, (10) pickups/vans
- (2) UTVs
· ALL empty scaff/truss containers
· (1) 20’ mobile office with generator
· (2) portable toilets
· Vendor/Burton work vehicle parking
RV Lot: February 22 – March 16, 2018 - Full use of entire lot for oversized vehicle staging and storage with light
operational use.
Lot to be managed full time with dedicated Boneyard manager to interface with all vendors, TOV officials and
employees, and guests.
Mtn. Plaza: February 22 – March 16, 2018 - 7 bays total, 2018 configuration TBD per Jeff Babb – see below for
ideal configuration)
· Long Term Storage Facility – climate controlled, staffed, and secure
· GP Sponsor Village & Solaris Boneyard/Storage
o Lower SV delivery and overflow storage in the lockable bays (9 & 10)
§ Shipping storage from USO Sponsors:
o Sort, inventory and load zone in bays 11-13
§ Work zone, where we have space to inventory and load everything stored in the lockable
cages/bays 2 & 3 without blocking traffic.
o Solaris boneyard (and/or sponsor storage zone in bays 2 & 3
o Solaris heavy equipment storage
§ (1) 8K variable reach forklift
§ (1) 6k rough terrain straight mast
Race City/TV Compound: February 23 – March 16, 2018
Burton/Vail/TV/Webcast/MSI Operations Compound
· Branding/MSI OPS: (1) 20x8 storage container
o Snow fence: x 15,000’
o SPM Poles: x 900
o Banners: x 200
7
o Banner Frames: x 200
· TV Compound: March 3 – 13, 2018
o “A” Unit TV Truck (53’ semi)
o “B” Unit TV Truck (53’ semi)
o “C” Unit TV Truck (53’ semi)
o Satellite uplink truck (35’ truck)
Bottom of Slopestyle
Temporary Storage
· Friday, 2/23/18 – 3/4/18
· Scaff/truss staging for all on hill structures
· (2) light towers
· Vehicles until 3/5
Manor Vail Cages 2 x 12’x18’
Long Term Storage
· 2/23/18 – 3/16/18
· Sponsor Village product (sampling and promotional pieces for the partners)
8
ATTACHMENT B
2018 REQUESTED TOWN SERVICES
BUS RE-ROUTES: MSI will communicate reroute needs based on real time logistics onsite. However, below
details possible reroute windows
Golden Peak (2018)
- 2/23-2/28 from 4-7:45am and 5-10pm: Rails, structures, power, screen deliveries
- 3/3 from 5pm through 7:45am: TV truck load in
Solaris (2018)
Re-route at VAIL ROAD to EAST MEADOW DR/SOLARIS stop for events, concerts and concert set up:
Monday,March 5, 2018 6:00am-8:00pm
Tuesday, March 6, 2018 8:00am-5:00pm
Wednesday, March 7, 2018 5:30pm-11:00pm
Thursday, March 8, 2018 5:30pm-11:00pm
Friday, March 9, 2018 4:00pm-11:30pm
Saturday, March 10, 2018 4:00pm-12:00am
Sunday, March 11, 2018 8:00am-10:00pm
BARRICADES (2018)
Delivery: WEDNESDAY, March 7, 2018
Location: Solaris – East Meadow Drive
Time: 10am
Needs: 180 panels, Need an additional 2,000’ if available
Pick Up: SUNDAY, March 11, 2018
ELECTRIC (2018)
It is requested to use the following Town of Vail electric during the US Open:
CHECK POINT CHARLIE/GORE CREEK DRIVE
Dates: FRIDAY-SATURDAY, March 9-10, 2018
Needs: POWER PANEL adjacent to Check Point Charlie
Concert Sound/Audio
Lights
POWER FROM light poles
Lights for tents along Gore Creek Drive (to Fountain)
INTERNATIONAL BRIDGE
Dates: FRIDAY-SATURDAY, March 9-10, 2018
Needs: POWER PANEL south of International Bridge
Beer draft trailers
Lights for tents along Willow Bridge Road
POWER OUTLETS near Pedestrian Bridge
Lights for tents along Willow Bridge Road
POWER FROM light poles
Lights for tents along Willow Bridge Road
K-RAIL/Concrete: 2018 final needs TBD based on 2018 structures.
- Golden Peak: 6, 2’x3’ (2k lbs) blocks
o Delivery: February 23, to Race City ramp, before 7:30am or after 5:00pm
- Solaris: 12, k-rail
o Delivery:March 4, for build start on March 5
o Pick Up: March 13
VARIABLE MESSAGE BOARDS-SIGNAGE: None requested in 2018
December 5th , 2017
36 YEARS STRONG
•Longest Running
•Most Prestigious
•Globally Impactful
•Premium Entertainment
SHARED VALUES
•Culture
•Sport
•Environment
•Safety & Responsibility
SUCCESS
RETURN
•Lodging –YOY 96% Capacity
•ADR –Up 11% from 2016
•Net Promoter Score –66% in 2017
•Tax Revenue –considerable & consistent growth
Local Sales Tax February March
2017 N/A N/A
2016 $3,736,875 $4,211,131
2015 $3,586,776 $4,057,344
2014 $3,477,419 $3,778,625
2013 $3,209,239 $3,690,232
2012 (pre USO)$2,994,580 $3,185,859
MARCH
5 -10
REMARKABLE ROI
•2015: $7.70
•2016 and beyond: $9.00+
•Incomparable
•Continued Focus
•Marketing and Media Value
*Based on average investment of $400,800.00 over 5 years
FUTURE
FUTURE
•Expanded Footprint
•Lionshead
•Business and Community Engagement
•School outreach and youth programming
•Après All Day
•Customized Marketing Initiatives
•Engaging Partners Regionally at Retail
•#RideResorts campaign
•Capitalize on Olympic Momentum
•Consumer engaging events
OUR ENVIRONMENT
Minimize environmental impact.
Maximize positive social impact.
•Our Product
•Build higher quality products.Use less resources and better
materials. Introduce new innovations and scale.
•Ex. –100% Bluesign, 100% recycled cotton, Zero biocides
•Our People
•Positively impact the lives of the people we touch across the world.
•Ex. –100% finished good suppliers meet Fair Labor Assoc standards
•Our Playground
•Improve our own house. Use our voice to influence
•Ex. –Zero Waste and Carbon Neutral USO, 75% waste diverted and
25% CO2e footprint reduction at HQ
Vail, Colorado
World -Class Relationship