Orange County Tourist Developm ent Tax Overview CRC TDT Sub-Com m ittee Meeting September 1, 2015
Presentation Outline • TDT Background • Major Historical Uses • Major Uses Planning & Review 1 . Convention Center ( OCCC) and Tourism Prom otion 2 . Arts & Museum s 3 . Venues • Oversight • Sum m ary
Presentation Outline • TDT Background • Major Historical Uses • Major Uses Planning & Review 1 . Convention Center ( OCCC) and Tourism Prom otion 2 . Arts & Museum s 3 . Venues • Oversight • Sum m ary
TDT Background TDT w as enacted by ordinance in 1 9 7 8 . Voters approved a referendum to: I m pose a 2 % Tourist Tax Build a civic center in phases Original Master Plan: Convention & Meeting Space w ith an Arena later − I n 1 9 8 6 , w ith City support for the Phase I I OCCC expansion ( TDT levy increase to 3 % ) , the Arena project planning m oved dow ntow n as a hom e for the com ing NBA team
TDT Background • Currently TDT levy is 6 % of lodging bill • State Law governs uses • Not allow ed for schools, public safety, general governm ental services
TDT Background TDT Statutory Uses: 6 % tax on short-term lodging ( under 6 -m onths) added to room bill 1 -4 % Uses in Tourist Developm ent Plan such as tourism prom otion, convention and civic center capital and O&M costs, m useum s, beach im provem ents, facilities and events for cultural tourism , sporting facilities and events, etc. 5 % Tourism prom otion, professional sports facilities and/ or convention center debt 6 % Tourism prom otion, and/ or professional sports facilities
TDT Background Orange County TDT Uses: Pledged for repaym ent of over $ 7 5 0 m illion of Convention Center debt until 2 0 3 1 , and funds over $ 4 7 m illion of annual tourism prom otion. 1 -4 % OCCC Debt and O&M, Tourism Prom otion, Tourist Developm ent Plan uses, Arts, future grow th above 2 % paid to City for Venues ( DPAC and Citrus Bow l) 5 % OCCC Debt 6 % 5 0 % Tourism Prom otion/ 5 0 % to City for Arena Debt
TDT Background FY1 6 TDT collection budget is $ 2 1 6 m illion ( all 6 percent of TDT) • $ 1 8 0 m illion from only first to fifth percent TDT pledged for convention center debt
TDT Background TDT 1 -5 th Percent Projected FY 2 0 1 6 Expenses ( in m illions) : Debt Service $ 6 9 .7 Convention Center Operations 1 5 .0 Visit Orlando Funding* * 3 1 .6 Convention Center Capital 2 4 .6 Arts 4 .3 History Center & Other 3 .8 Contract TDT Paym ent for Venues (Est.) 3 3 .0 Total $ 1 8 2 .0 * * Additional $ 1 5 .6 m from 6 th percent TDT = $ 4 7 .2 m total
Presentation Outline • TDT Background • Major Historical Uses • Major Uses Planning & Review 1 . Convention Center ( OCCC) and Tourism Prom otion 2 . Arts & Museum s 3 . Venues • Oversight • Sum m ary
TDT Historical Revenue Historical Revenue Grow th: 9 .3 % Avg Annual TDT Grow th ( 1 9 7 9 -2 0 1 4 )
TDT Historical Uses TDT Expenditures Since Inception OCCC (70%) Visitors Bureau (19%) Sports (Prior Contributions) (3%) Arts, Museum & Other (2%) Venues (Performing Arts & Citrus Bowl) (5%) R&RR (Reserves available for other uses) (2%)
TDT Historical Sources & Uses Sources/ Revenues 1 st – 5 th Cent 2 ,6 7 0 ,6 7 1 9 1 % 6 th Cent 2 2 8 ,1 2 6 8 % I nterest Earnings ( Est. 1 .2 5 % ) 3 6 ,2 3 5 1 % Revenues Total 2 ,9 3 5 ,0 3 2 1 0 0 % Uses/ Expenses OCCC 2 ,0 4 1 ,8 5 1 7 0 % Visitors Bureau 5 4 5 ,5 8 3 1 9 % Arts, Museum , & Other 5 9 ,0 3 6 2 % Sports 9 3 ,3 1 7 3 % Venues 1 4 9 ,2 6 7 5 % RR&R 4 5 ,9 7 8 2 % Expenses Total 2 ,9 3 5 ,0 3 2 1 0 0 % * Through FY2 0 1 4 , am ounts in thousands
TDT Historical Major Uses 1st and 2nd cent 3rd cent 4th cent 5th cent 6th cent 250 200 $ Millions 150 100 50 - 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Convention Center & Marketing (89%) Arts & Venues Sports (3%) (6%)
TDT Historical Major Uses I nitiation of TDT m ajor uses: • Convention Center in 1 9 7 8 voter referendum • 1 9 8 6 O-rena in original TDT m aster plan – Am w ay Center replaced aging O-rena • Arts began through Orange County Arts and Cultural Affairs Task Force – Harvey Massey, Chair and Com m issioner Hom er Hartage, Vice-Chair – January 2 3 , 2 0 0 1 Com m issioner Ted Edw ards proposed use of TDT for Cultural Activities W orked w ith tourism industry for prior year
TDT Historical Major Uses I nitiation of TDT m ajor uses: • Orlando Mayor Dyer proposals – Citrus Bow l renovation w ith Fla. Citrus Sports – DPAC w ith the Central Florida arts com m unity • Orange County History Museum – County Budget process • Tourism Prom otion – Orange County tourism industry & Visit Orlando – Central Florida Hotel & Lodging Association TDT m ajor uses prim arily driven by voters, elected leaders, and com m unity groups
Presentation Outline • TDT Background • Major Historical Uses • Major Uses Planning & Review 1 . Convention Center ( OCCC) and Tourism Prom otion 2 . Arts & Museum s 3 . Venues • Oversight • Sum m ary
OCCC Planning & Review Orange County Convention Center Background • Mission/ Benefit: Econom ic Developm ent – 1 .3 + m illion annual OCCC visitors – 2 .5 + Million room nights – $ 2 .1 Billion Annual Econom ic I m pact – 2 5 ,0 0 0 + local em ployees Source: Fishkind and Associates, I nc. May 2 0 1 3 Rep ort • 2 nd largest convention center in the US w ith 7 m illion square ft. ( 2 m illion exhibit space)
OCCC Planning & Review Annual Budget Process • TDT/ OCCC budget presentation to BCC • Capital projects review & approval process • Tw o public budget hearings Tourist Developm ent Council ( TDC) • Statutory external review • Public m eetings • Hotel and lodging industry representatives • Hospitality & elected governm ent leaders • Com ptroller m akes TDT/ OCCC financial reports
OCCC Planning & Review OCCC Master Planning • Stakeholder input and com m unity-w ide involvem ent: – OCCC Client Advisory Board – Convention Center District Stakeholders – Hospitality I ndustry Representatives • Marketing & feasibility studies prepared by industry consultants • North/ South OCCC Expansion 1 9 9 8 -2 0 0 3 : – Mayor Martinez Blue Ribbon Com m ittee – Citizen’s Construction Oversight Com m ittee
OCCC Planning & Review Current 2 0 1 4 -1 5 OCCC Master Planning • I ndustry Consultant Populous, I nc.: – Recom m end future developm ent, architectural concepts and cost estim ates for budgeting • 2 0 1 5 Com m unity I nput/ Meetings/ Presentations: − Monthly m eetings w ith Efficient Transportation for the Com m unity of Central Fla ( ETC) − Multiple OCCC Client Advisory Board updates − March 1 2 & June 1 1 public m eetings of the I -Drive Com m unity Redevelopm ent Agency − June 3 0 , 2 0 1 5 public BCC presentation − June 3 0 , 2 0 1 5 public presentation and input − August 2 0 m eeting w ith Visit Orlando board
OCCC & Tourism Prom otion OCCC Marketing Staff • Books OCCC m eetings, conventions, exhibitions & coordinates w ith Visit Orlando Visit Orlando ( Official Tourism Association) • Market Central Fla. tourism internationally • Book vacations, m eetings, travel in area attractions, lodgings, m eeting spaces • Funded by m em bership and County TDT • Results reported to BCC and TDC • Record 6 2 m illion CY2 0 1 4 visitors • $ 6 0 b annual Orange County tourism industry
Presentation Outline • TDT Background • Major Historical Uses • Major Uses Planning & Review 1 . Convention Center ( OCCC) and Tourism Prom otion 2 . Arts & Museum s 3 . Venues • Oversight • Sum m ary
Arts Planning & Review Arts & Cultural Affair Advisory Council Established in 2 0 0 1 to assist the BCC in allocating county funding for arts and cultural affairs. 1 3 m em bers appointed by the BCC. Mem ber Types: • 1 At large representative w ith arts & cultural affairs interest or expertise • 1 City of Orlando Representative • 1 County Com m issioner • 6 District Representatives ( one from each district) • 1 Mayor’s Representative • 1 TDC Representative • 1 UCF Representative • 1 United Arts of Central Florida Representative
Arts Planning & Review Cultural Facilities Review Panel • 5 -7 Representatives from the Advisory Council • 3 -4 I ndustry Experts ( construction, design, architecture, etc.) Cultural Tourism Review Panel • 1 2 Representatives from the Advisory Council United Arts of Central Florida A 5 0 1 ( c) ( 3 ) nonprofit organization and the one-stop- shop to support the arts, sciences and history in Lake, Orange, Osceola and Sem inole counties.
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