LOCAL MARKETING DISTRICT

Petition Process


Frequently Asked Questions


 

1. What is a local marketing district?

A local marketing district (LMD) is an organization formed for the purpose of advertising, marketing and promoting tourism within its service area.


2. Why do we need a LMD?

The Estes Park area currently does not have a dedicated funding source for advertising and tourism promotion. Each year the Town Board decides if it is going to budget funds for advertising. If funds are budgeted, they come from the Town’s General Fund. The General Fund also pays for police, fire, public works, parks, planning, Town administration, special events, and other Town functions. Demand for funding of all these services continues to grow faster than General Fund revenues. If for some reason the Town Board was to change its opinion of advertising or the General Fund suffers a short fall, then the Town Board may elect to significantly reduce funding for advertising. A local marketing district guarantees that a dedicated funding source will be available to advertise, promote, and market the Estes Park area.


3. How do you go about starting a LMD?

First a petition needs to be signed by owners of 50% of the commercial real property located within the proposed LMD area. After receipt of a signed petition, the Town Board and Larimer County Commissioners will then hold two public hearings to receive public input on the formation of the LMD as requested by the Petition. Following the two public hearings, if the Town Board and the Larimer County Commissioners decide to form the LMD, the Town and the County will enter into an Intergovernmental Agreement organizing the LMD. Formation of the LMD by the Intergovernmental Agreement then is required to be approved by a vote of the registered electors residing within the area of the LMD


4. What will the District boundaries be?

The Estes Park LMD will adopt the Estes Valley Recreation District boundaries less the Boulder County section as its boundaries. In addition to Estes Park, the LMD will include Glen Haven and the unincorporated portions of the county around the Town of Estes Park and down Colorado Highway 7 to the Boulder county line.


5. Who is going to run the Local Marketing District?

Under the State Statute that allows LMDs, the Town Board and Larimer County Commissioners are responsible for organizing the LMD. The Town Board and County Commissioners will appoint a local Board of Directors with representatives from both the incorporated and unincorporated areas to operate the LMD.


6. How will the Local Marketing District be funded?

The petition for the formation of the District states that funding of the LMD will be collected from an additional 2% sales tax on the purchase price paid or charged to persons for rooms or accommodations within the area of the LMD. This 2% additional sales tax will only be collected within the service area of the LMD after approval at an election by the registered electors residing within the service area of the LMD. The formation of the District and the marketing and promotion tax (2%) shall be voted on at the same election. The tax will be collected by the State of Colorado’s Department of Revenue as all sales taxes are now collected, and following collection, be transferred directly to the LMD. These tax monies will not go to the Town or Larimer County.


7. When and how is the new lodging tax money going to be spent?

If voters in the LMD approve the formation of the District and the 2% marketing and promotion tax, it is estimated that approximately $1 million dollars will be collected in its first year. If approved at the November 2008 election, the new tax will begin being collected in January of 2009. The Town Board will continue to fund the 2009 advertising campaign from the Town’s General Fund while the new LMD Board is appointed and begins working on its Operating Plan. Under the state statute, the LMD Board will have until September 30, 2009 to submit its Operating Plan for 2010 to the Town Board and County Commissioners. The Boards will have thirty (30) days to approve the Operating Plan, or return it for revisions. Based on the time of year that our advertising needs to be placed, the current advertising committee will continue to plan and direct the advertising program through 2009. The new LMD Board of Directors will be appointed in early 2009 and begin its planning for the September deadline for the new Operating Plan. This will ensure a seamless transition from the old committee to the new Board. The plan is to have one year’s revenue in the LMD coffers and then to always be working with monies that have been collected the year before. This will give the LMD a solid budget for each year regardless of economic ups and downs.
8. What happens to the old money?

The Town is not going away. The Town will continue to fund the Fairgrounds, Events, Conference Center, Performance Park and the Salaries for the CVB. This will ensure that every dollar collected from the new lodging tax will be spent on marketing the Estes Park Local Marketing District. The Town Board has committed to take the moneys that are currently ear marked for advertising that will be replaced by the LMD funds and invest in the infrastructure of the community. Projects that are currently projected to receive the additional funding include improving the Fairgrounds at Stanley Park to a year around entertainment and event facility, expanding and improving the shuttle system, and additional improvements to the regional trails system.

9. What is the timing if we go forward?

The process for collecting signatures on the Petition is starting. The Petition is attached. After owners of 50% of the commercial real estate in the LMD have signed, then the Town and County Clerks will verify those signatures. Following the required public hearings and adoption of the Intergovernmental Agreement organizing the LMD, the formation of the LMD and the marketing and promotion tax will appear on the 2008 General Election ballot on November 4, 2008. If voters approve the formation of the LMD and the marketing and promotion tax, then collections will begin in January 2009. The new LMD Board will be seated in early 2009 and will assume marketing responsibilities by implementing the Operating Plan for the LMD in 2010.


10. What role will the Convention & Visitors Bureau provide?

The Convention & Visitors Bureau was created by the Town Board in 2003 to provide an integrated, comprehensive advertising program. CVB staff with offices at the Visitors Center handle all communication functions (print and electronic advertising, public relations), visitor services, group sales, and stakeholder services. Two business advisory committees oversee operations conducted by staff at the Visitors Center who are responsible for those activities. After formation of the new Local Marketing District, the Town Board will determine the role of the CVB advisory Board and staff currently working from offices located in the Visitors Center facility. It is anticipated that the Town Board will not want to duplicate efforts undertaken by the LMD, although it will work to ensure that the community retains an integrated, comprehensive advertising program. The Town Board will work closely with the Local Marketing District Board to define each organization’s role.


11. What role will The Chamber of Commerce provide?

The Chamber of Commerce is a member-based business to business organization that creates programs and offers training to support its members. It is hoped that the Chamber will continue to develop membership through strong business leadership and work with the LMD to promote Estes Park.