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Agenda 11/12/2024 Item #16F 7 (Approve the Expenditure to Tourism Development Tax (TDT) Promotion Funds to support the upcoming 2025 True Lacrosse All Region Games up to $5,000)11/12/2024 Item # 16.F.7 ID# 2024-1652 Executive Summary Recommendation to approve the expenditure of Tourism Development Tax (TDT) Promotion funds to support the upcoming 2025 True Lacrosse All Region Games up to $5,000 and make a finding that these expenditures promote tourism. OBJECTIVE: To support the hosting costs for the True Lacrosse All Region Games from January 17 to January 19, 2025, at the Paradise Coast Sports Complex in Naples, FL. CONSIDERATIONS: The True Lacrosse All Region Games is a second-year event that has relocated from Jacksonville and Bradenton, Florida, to Collier County. It is projected to bring 65-70 teams, with 80% of those teams requiring hotel accommodations. The event will attract participants from across the U.S., representing states such as CO, UT, WA, MD, TX, FL, and many others. Notably, over 200 room nights will be required just to accommodate the event staff. A highlight of this event is the presence of over 40 NCAA Lacrosse programs recruiting athletes, making this event a significant draw for participants. Additionally, the timing over MLK weekend ensures that many teams will arrive early or stay longer, contributing to additional tourism spending. The event is expected to have over 1000 participants, resulting in over 500 room nights. True Lacrosse has requested $10,000 to assist with facility rentals and operating costs. Staff recommends funding up to $5,000 for the 2025 event. This support will help offset costs associated with venue rentals and other logistics, ensuring the success of the event. The Event Impact Calculator by Destinations International, used by over 300 destination organizations, estimates direct spending from this event at $1,251,200, with a total economic impact of $1,750,880. Furthermore, the event is projected to generate $25,395 in bed tax revenue, providing a clear return on investment for Collier County. When combined with the estimated facility rental cost of $20,900 at Paradise Coast Sports Complex, this event provides a strong return relative to the County’s investment. Staff utilizes the Board-approved Athletic Event & Tournament Application to evaluate whether the organization qualifies for funding. In making this determination, several key factors are considered, including the seasonality of the event, its potential for future iterations, projected economic impact through direct spending and bed tax revenue, and the level of marketing value. Additionally, staff assesses whether the event aligns with local interests, such as collaboration with Collier County-based leagues or athletic groups, and whether it is expected to generate significant room nights (minimum of 250). Event Impact Summary: Direct Impact: $1,251,200 Total Impact: $1,750,880 Projected Room Nights: 500 TDT Revenue: $25,395 Acquisition Cost: up to $5,000 The allocation of sports sponsorship dollars serves as a tool in attracting, retaining, and cultivating partnerships with event organizers, contributing to the sustained growth and success of the destination's sports tourism sector. Financial incentives help offset the costs associated with organizing large-scale events, such as venue rentals, logistics, and marketing expenses, positioning Collier County as a premier location in this highly competitive sector. By investing in the growth of sports events, the CVB attracts participants, spectators, and media attention that enhance the overall economic impact and visibility of a destination. Page 3680 of 5419 11/12/2024 Item # 16.F.7 ID# 2024-1652 Sports Tourism events, supported in part by Tourist Development Tax (TDT) funds, are used to promote future overnight visitation to the destination. The objective is to secure events that have a history of attracting overnight visitors who utilize hotels and lodging in Collier County over multiple days, throughout an event. ADVISORY BOARD RECOMMENDATION: The Tourist Development Council recommended approval of this item (7-0) at the Oct. 15, 2024 meeting. FISCAL IMPACT: Funding up to $5,000 for this event is available within the FY 2025 Tourism budget allocation for sports event support through the TDC Promotion fund (1101). The available funding for FY 2025 sports grants is $75,000. GROWTH MANAGEMENT IMPACT: LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. – CMG RECOMMENDATIONS: Approval of Tourism Development Tax Promotion funding to support the 2025 True Lacrosse All Region Games up to $5,000 and make a finding that these expenditures promote tourism. PREPARED BY: Marissa Baker, Sports Complex Manager ATTACHMENTS: 1. True Lacrosse EIR 2. True Lacrosse January 2025 Page 3681 of 5419 Industry Attendees Organizer/Exhibitor Total Lodging $507,893 $0 $507,893 Transportation $83,466 $854 $84,320 Food & Beverage $282,860 $28,948 $311,808 Retail $172,160 $0 $172,160 Recreation $103,262 $0 $103,262 Space Rental $0 $20,000 $20,000 Business Services $0 $51,757 $51,757 TOTAL $1,149,641 $101,559 $1,251,200 Event Parameters Key Results Event Name:True Lacrosse - All Region Games Business Sales (Direct):$1,251,200 Organization:US LAX Events/True Lacrosse Business Sales (Total):$1,750,880 Event Type:Youth Amateur Jobs Supported (Direct):486 Start Date:1/17/2025 Jobs Supported (Total):563 End Date:1/19/2025 Local Taxes (Total):$53,848 Overnight Attendees:1220 Net Direct Tax ROI:$47,991 Day Attendees:200 Estimated Room Demand:1,381 Direct Business Sales Event Impact Summary Destination: Naples, Marco Island, Everglades Convention & Visitors Bureau Destinations International Event Impact Calculator 9/5/2024 11:59:45 AMPage 3682 of 5419 Economic Impact Details Direct Indirect/Induced Total Business Sales $1,251,200 $499,680 $1,750,880 Personal Income $438,305 $145,505 $583,810 Jobs Supported Persons 486 77 563 Annual FTEs 10 2 12 Taxes and Assessments Federal Total $115,405 $42,721 $158,125 State Total $87,382 $15,890 $103,272 sales $66,361 $7,495 $73,857 income $0 $0 $0 bed $0 -$0 other $21,020 $8,395 $29,415 Local Total (excl. property)$47,991 $5,856 $53,848 sales $11,060 $1,249 $12,309 income $0 $0 $0 bed $25,395 -$25,395 per room charge $0 -$0 tourism district $0 -$0 restaurant $0 $0 $0 other $11,536 $4,607 $16,144 property tax $22,698 $5,535 $28,233 Event Return on Investment (ROI) Estimated Room Demand Metrics Room Nights (total)1,381 Room Pickup (block only)0 Peak Rooms 452 Total Visitor Days 3,878 Event Name: True Lacrosse - All Region Games 2025 Event Impact Details Destination: Naples, Marco Island, Everglades Convention & Visitors Bureau Organization: US LAX Events/True Lacrosse Direct local tax ROI (net property taxes) Direct Tax Receipts $47,991 DMO Hosting Costs $0 Direct ROI $47,991 Net Present Value $47,030 Direct ROI (%)- Total local tax ROI (net property taxes) Total Local Tax Receipts $53,848 Total ROI $53,848 Net Present Value $52,769 Total ROI (%)- Destinations International Event Impact Calculator 9/5/2024 11:59:46 AMPage 3683 of 5419 Page 3684 of 5419 Page 3685 of 5419 Page 3686 of 5419 Page 3687 of 5419 Page 3688 of 5419 Page 3689 of 5419 Page 3690 of 5419 Page 3691 of 5419 Page 3692 of 5419 Page 3693 of 5419 Page 3694 of 5419 Page 3695 of 5419