TDC CAPITAL PROJECTS FUNDING PROGRAM - PowerPoint Presentation

1. TDC CAPITAL PROJECTS FUNDING PROGRAMPolicy & Guidelines Learning Session February 13th, 2023

2. Presentation OutlineWelcome & IntroductionTDT & TDC OverviewTDC Capital Project Funding Program Policy OverviewLake County BCC Approved ProjectsImportant DatesQuestions

3. TDT & TDC Overview

4. backgroundTourist Development Tax (TDT)Established by Florida Statute (Section 125.0104) as a mechanism to fund the advancement of tourism and attract tourists to Lake County.Tourist Development Council (TDC)Advisory Board established by Florida Statute (Section 125.0104) to make periodic recommendations to the Lake County Board of County Commissioners on uses of the TDT.Office of Visit Lake (“Visit Lake”)An Office of the Lake County Board of County Commissioners, under the Agency for Economic Growth, tasked with managing the TDT and TDC .

5. Tourist development taxWho is taxed?Every person who rents, leases, or lets for consideration any living quarters or accommodations in any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, condominium, or timeshare resort for a term of 6 months or less. How much is the Tourist Development Tax?In Lake County, the Tourist Development Tax is 4%.

6. Tourist development taxWhat are the eligible uses of TDT funds per F.S. 125.0104?To acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate or promote one or more publicly owned and operated convention centers, sports stadiums, sports arenas, coliseums, auditoriums, aquariums or museums. Change to Policy: Not-for-profits are only eligible to receive funding for museums per F.S. 125.0104To promote and advertise tourism To fund convention bureaus, tourist bureaus, and/or tourist information centers

7. Tourist development CouncilWho are they?Nine (9) member boardAppointed by the Lake County BCCMust include the following:One (1) member of the Lake County BCC (Commissioner Doug Shields)Two (2) municipal officialsOne (1) of which must be from the County’s most populous municipalitySix (6) persons involved in the tourist industryThree (3) or four (4) of which must be hoteliers or otherwise own a business subject to the taxStaggered terms of four (4) yearsGovernment-in-the-Sunshine Laws apply

8. Tourist development CouncilWhat do they do?Meet once per quarterMake recommendations to the Lake County BCC regarding the effective operation of the special projects or uses of the TDTReview expenditures of revenues from the TDT trust fund

9. TDC Capital project Funding Program Policy

10. ObjectiveThe Lake County Tourist Development Tax was created to fund the advancement of tourism and attract tourists to visit Lake County. The Lake County Tourist Development Council (TDC) was established by Florida Statute to make periodic recommendations to the Lake County Board of County Commissioners (BCC) on uses of the tourist development tax revenue in accordance with the Lake County Tourist Development Plan.   

11. DefinitionCapital projects are defined as: New construction, expansion, renovation, or a replacement project for an existing facility or facilities. The project must have a total cost of at least $25,000 over the life of the project and a useful life of at least 10 years.ORA purchase of major equipment (assets) costing $25,000 or more with a useful life of at least 10 years.ORA major maintenance or rehabilitation project for existing facilities with a cost of $25,000 or more and a useful life of at least 10 years.

12. EligibilityTo be eligible for funding, a Project must:Be located in Lake CountyBe publicly owned and operated Museums can be owned and operated by a not-for-profitBe open to the public for recreational activities, cultural events and performancesBring substantial numbers of tourists/visitors to Lake County, thereby promoting overnight hotel stays

13. fundingTourist Development Funding must not be the sole source of revenue for a capital project.Tourist Development Capital Project Funding is intended to assist an organization with a portion of capital expenditures. Tourist Development funds will not exceed fifty percent (50%) of the total project budget.

14. FundingThere are no guarantees that applicants will be awarded funding. Even though a project may qualify, limited funds may not allow all projects to receive assistance. Decisions regarding the awarding of funds are at the sole discretion of Lake County and the BCC. NOTE: All materials/documentation submitted with the funding application will become a matter of public record, open to inspection by any citizen of the State of Florida subject to exemptions in Chapter 119, Florida Statutes.

15. Application scheduleTwo (2) application submittal dates each year (Fall & Spring)Completed capital project applications must be received no later than 4:00 p.m. Eastern Standard Time (EST) on the designated submittal deadline date. Applications failing to meet the deadline will not be considered until the next funding cycle.

16. Application processApplicant submits completed application packageVisit Lake reviews and provides sufficiency questions to ApplicantApplicant submits sufficient responsesVisit Lake reviews entire application package and provides a recommendation to the TDC Board1st TDC Hearing; Applicant has opportunity to present Project in front of TDC; TDC discusses Project2nd TDC Hearing; TDC makes recommendation to Lake County BCCLake County BCC votes on funding levelsFrom application due date this is a minimum of an 8 week process due to public meeting notices

17. Eligible ProjectsEligible capital projects for Tourist Development funds include: construction, extension, expansion, remodeling, repair and/or improvements, and major equipment (assets) for convention centers, sports stadiums, coliseums, auditoriums or museums that are publicly owned and operated, in accordance with the Lake County Tourist Development Plan and the Florida Statutes. Museums that are open to the public, and owned and operated by a non-profit organization, may also be eligible.

18. Ineligible USESThe following are examples of how Tourist Development funds may not be used: Annual operating expenditures. Legal, medical, engineering, accounting, auditing, planning feasibility studies or other consulting services. Salaries or supplements to salaries for existing or future staff, or employment of personnel not directly related to the project or event. Purchasing tangible personal property including but not limited to office furnishings or equipment valued less than $25,000, permanent collections, or individual pieces of art. Interest reduction of deficits or loans. Expenses incurred or obligated prior to or after the funding project period. Prize money, scholarships, awards, plaques, T-shirts, uniforms or certificates. Travel. Projects which are restricted to private or exclusive participation. Private entertainment, food and beverages. Expenses to fund other events not recommended or approved by Lake County. In the event an organization is found to have used the awarded funds for an ineligible use, the organization must repay the funds to Lake County plus five percent (5%) annual interest. The Funding Agreement will further outline the accounting requirements for the funds.

19. Evaluation criteriaCriteria that will be utilized to evaluate these funding requests include: Return on Investment of TDC Funds Hotel Room Nights Economic Impact Frequency of Use Applicant Contribution or Match Useful Life of Project Applicant’s Commitment to Lake County Tourism Soundness of Proposed Project Quality & Uniqueness of Proposed Project Stability & Management Capacity When appropriate, Visit Lake will rely on industry and subject matter experts to assist in evaluating projections provided by applicants.

20. Capital Project Impact ModelCPIM MethodologyBase award determined by taking the present value of the future stream of annual bed tax revenues generated by project utilizing a conservative discount rate and assuming a useful life of 15 years.Project Inputs Impacting AwardNet increase in Hotel Room Nights in Lake CountyNet increase in visitors to Lake CountyCapital investment in projectApplicant’s % of total capital investmentFrequency of use for project Annual local spendingProjected useful life of projectBonuses are then awarded based on the following criteria:Economic Impact – 50%Applicant Contribution - 10%Frequency of Use – 10%

21. Financial guidelinesApplicants must provide a fifty percent (50%) match of the budget for the total cost of an approved capital project. Examples of in-kind match are: donated goods and services, land, facilities, etc. Value estimates must be verifiable. Land value, whether purchased or in-kind, may only account for 25% of the total project cost or 50% of the Applicant match, and all land value must be verified by a certified appraiser. Applicant must submit proof of other sources which, when combined, provide total funding for the full capital project. The applicant must meet further requirements as outlined in the Funding Agreement and as deemed necessary by the BCC.

22. Reporting RequirementsProject Status ReportsQuarterly reports, submitted on the 1st day of the 3rd month of each calendar quarterShould contain brief narrative summary providing updated information on project, including financial status report for the project, planning and construction related activities. Construction Completion ReportWithin 45-days of the completion of the projectNarrative summary of the successful completion of project with economic impact, development costs, photographs of completed project, etc.Project Impact ReportsTwo (2) times per year for three (3) years after completion of projectMust provide detailed impact reports showing room nights generated, number of visitors, events held, etc.

23. Lake County BCCApproved Projects

24. Bcc approved ProjectsClermont Rowing Boathouse – City of ClermontWooton Park Expansion – City of TavaresHickory Point Floating Docks – Lake County Water AuthorityVictory Pointe – City of ClermontLegends Way Ballfields Scoreboard Replacement – Lake Sumter State CollegeClermont Waterfront Park Amenities – City of ClermontVenetian Gardens Boat Docks & Boardwalk – City of Leesburg

25. Important dates

26. Important datesMarch 10th, 2023 – 2023 Spring Cycle Application Deadline Due to the Office of Visit Lake by 4:00 p.m. at County Administration Building 315 W. Main Street, Suite 441, TavaresApril 7th, 2023 – Regular TDC Meeting/Capital Funding Submittal – 1st HearingApplicant presentationsProject discussionsApril 10th, 2023 – Capital Funding Submittal – 2nd HearingTDC issues recommendations to Lake County BCCLake County BCC Regular MeetingBCC votes on funding requestDates are subject to change

27. Questions

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