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HomeMy WebLinkAboutordinance.council.019-09ORDINANCE N0. 19 (Series of 2009) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, ORGANIZING THE ASPEN LOCAL MARKETING DISTRICT; APPOINTING THE INITIAL MEMBERS OF THE BOARD OF DIRECTORS OF THE DISTRICT; AND APPROVING THE INITIAL OPERATING PLAN AND BUDGET FOR THE DISTRICT; AND SETTING AN ELECTION AND BALLOT QUESTION THEREFOR WHEREAS, the City Clerk of the City of Aspen, Colorado (the "City"), has received a petition for the organization of the Aspen Local Mazketing District within the City (the "District")" and WHEREAS, based upon the petition for organization (the "Petition") and other evi- dence presenting to the City Council at a public hearing held on August 10, 2009 and a subsequent public hearing held on August 24, 2009, which public hearings were concerned with determining the sufficiency of the Petition, the Petition has been determined to have been signed in conformity with the Local Mazketing District Act, C.R.S. Section 29-25- 101, et seq., (the "Act"), in that the signature on the Petition are genuine, and the signa- tures of petitioners represent the persons who own commercial real property in the service area of the proposed District having a valuation for assessment of not less than fifty per- cent of the valuation for assessment of all commercial real property in the service area of the proposed District; and WHEREAS, C.R.S. Section 29-25-102(2), states that the creation of local mazket- ing districts are essential to the continued economic growth of the State of Colorado; and WHEREAS, the Petitioners have also caused a copy of the District's preliminary Operating Plan and 2010 Budget (the "Initial Operating Plan") to be submitted to the City, which plan and budget aze attached hereto as Exhibit "A"; and WHEREAS, the Petition sets forth, among other things: a) The name of the proposed District, which is "Aspen Local Marketing Dis- trict"; b) A general description of the boundaries and service area of the proposed Dis- trict, which is to wit: the area generally bounded by Main Street to the north, 5`h Street to the west, Cleveland Street to the east, and Aspen Mountain to the south, including the commercial azeas of the Aspen Meadows Resort and the Aspen Highlands Ski Area; c) A description of the types of services to be provided by the proposed District; d) A description of the marketing and promotion tax proposed to be levied by the District pursuant to C.R.S. Section 29-25-112, being one percent (1%); e) The names of three persons to represent the petitioners, who have the power to enter into agreement relating to the organization of the District; f) A request that the City Council appoint the initial members of the Board of Directors of the District pursuant to C.R.S. Section 29-25-108(1)(b); g) A request that City Council approve the Initial Operating Plan; h) A request that City Council approve the organization of the District condi- tioned on the outcome of an election held for that purpose; and WHEREAS, City Council has detemuned that it appears that the allegations of the Petition are true; and WHEREAS, City Council has determined that the types of services to be provided by the proposed District, as further set forth and described in the Initial Operating Plan, aze those services which best satisfy the purposes of the Act; and WHEREAS, the Petition was filed with a cash deposit in such amount determined sufficient to cover all municipal expenses associated with these proceedings in case the organization of the proposed District is not effected; and WHEREAS, the service azea of the proposed District is entirely within the City; and WHEREAS, a map of the boundaries of the proposed District is attached hereto as Exhibit "B" and is incorporated herein by this reference. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1: Pursuant to its authority to organize local marketing districts under the Act, and specifically C.R.S. Sections 29-25-105(3) and 29-25-106, the City Council, as the governing body of the City, hereby adjudicates all questions of jurisdiction to find that jurisdiction is vested in the City Council to organize the local marketing district de- scribed in the Petition submitted by the petitioners for the Aspen Local Marketing Dis- trict. Section 2: Subject to the outcome of the election provided for in Section 12 hereof, the City Council hereby declares the organization of the Aspen Local Marketing District. The boundaries and service area of the District shall be as set forth in Exhibit "B", which ex- hibit is attached hereto and incorporated herein by this reference. Section 3: The District shall be a separate political subdivision and body corporate of the State of Colorado and shall have all of the duties, privileges, immunities, rights, liabilities and disabilities of a public body politic and corporate. The District shall hereafter have the corporate name specified in the Petition: Aspen Local Marketing District. Section 4: The purpose of the District shall be to provide the services set forth in C.R.S. Section 29-25-111(1)(e)(I)(A), (B) and (C), and to exercise all other powers of a local mazking district in accordance with the Act. Section 5: Pursuant to C.R.S. Section 29-25-108(1)(a), the City Council shall constitute ex-officio the board of directors of the district. Pursuant to C.R.S. Section 29-25- 108(1)(b), the City Council may, at any time, appoint a board of directors of the District (the "Board") which shall serve at the pleasure of the Council. The Board shall have five (5) members, and each member shall be an elector of the District. Section 6: In accordance with C.R.S. Section 29-25-105(4)(b), which requires City Council to specify the voting requirements for District elections, an "elector" of the District shall mean a natural person who is legally qualified to vote in the State of Colorado, who has complied with the registration requirements of the Uniform Election Code, and the Colorado Municipal Election Code and who resides within the boundaries of the proposed district. Section 7: In accordance with C.R.S. Section 29-25-108(1)(b), members of the Boazd of Directors of the District shall serve at the pleasure of the City Council. Within thirty (30) days after a vacancy occurs, a successor shall be appointed by resolution. Section 8: Within thirty (30) days of the execution date of this Ordinance, or within thirty (30) days of each subsequent appointment to the Board of Directors by the City Council by resolution, each member of the Board shall appear before an officer authorized to administer oaths and take an oath that he or she will faithfully perform the duties of his or her office as required by law and will support the constitution of the United States, the Constitution of the State of Colorado, and laws made pursuant thereto. A majority of the members of the Board shall constitute a quorum. The Boazd shall elect one of its members as presiding officer, one of its members as secretary, and one of its members as treasures. The office of both secretary and treasurer may be filled by one person. The Board shall carry out the responsibilities required of such Board by the Act and other applicable law. Section 9: The Initial Operating Plan is hereby approved in accordance with C.R.S. Sec- tion 29-25-110. Section 10: The ballot issue shall be substantially as set forth below: SHALL THE ASPEN LOCAL MARKETING DISTRICT BE ORGANIZED AND SHALL TAXES BE INCREASED $1.0 MILLION ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY IN EACH SUBSEQUENT YEAR BY THE LEVYING OF A ONE PERCENT (1%) MARKETING AND PROMOTION TAX ON THE PURCHASE PRICE PAID OR CHARGED TO PERSONS FOR ROOMS OR ACCOMMODATIONS WITHIN THE DISTRICT AS INCLUDED IN THE DEFINITION OF "SALE" IN C.R.S. SECTION 39-26-102(11), COMMENCING IN 2010 AND CONTINUING IN EACH YEAR THEREAFTER; AND SHALL THE DISTRICT BE AUTHORIZED TO COLLECT, RETAIN AND SPEND ALL REVENUES RECENED IN 2010 AND EACH YEAR THEREAFTER WITHOUT REGARD TO ANY SPENDING, REVENUE-RAISING, OR OTHER LIMITATION CONTAINED IN ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAWS OF THE STATE OF COLORADO? The District is authorized to proceed with an election on November 3, 2009. As set forth in C.R.S. Sections 29-25-105(6) and 29-25-112(1), the City Clerk shall assist the District with conducting the election. Section 11: The Board shall file its future operating plans and budgets and any amend- ments thereto, if necessary, with the City Clerk for the approval of the City Council as pro- vided in C.R.S. Section 29-25-110. City Council may require the District to supplement its operating plan or budget in any year where necessary. Section 12: The actions of the City Clerk, petitioners, and petition representatives in set- ting and providing public notice of the public hearings on the sufficiency of the Petitions, in setting and providing public notice of the date of the public hearings at which this Ordi- nancewas considered, and in furtherance of the November 3, 2009 election are hereby rati- fied and confirmed. Section 13: In accordance with C.R.S. Section 29-25-105(6), this Ordinance shall not be effective unless first submitted to a vote of the electors of the District. The District shall not be established unless a majority of said electors voting on the establishment of the Dis- trict at the election vote in favor of such establishment. Section 14: The District shall continue to exist for a period of five years, unless other- wise extended by a vote of the electors of the District. This Ordinance may not be re- pealed, terminated, or rescinded so long as the District has any outstanding financial obli- gations. Section 15: If the District is dissolved in accordance with C.R.S. Section 29-25-115, any funds or assets of the District remaining after the District has satisfied any outstanding financial obligations existing as of the date of dissolution, shall be remitted to the City and the City shall use said funds for tourism promotion activities and/or to provide substantially the services outlines in the District's last Operating Plan filed with the City in accordance with C.R.S. Section 29-25-110. Section 16: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 17: This ordinance shall not have any effect on existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances amended as herein provided, and the same shall be construed and concluded under such prior ordinances. Section 18: A public hearing on the ordinance was held on August 1Q 2009 and on August 24, 2009, fifteen (15) days prior to which hearing a public notice of the same was published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the 27`h day of July 2009. Mich 1 .Ireland Iayor AT%~ ST: Kathryn K ,City Clerk FINALLY, adopted, passed and approved this 24th day of August AT ST: Kathryn Ko ,City Clerk APPRO ~ D AS TO FORM: John Worc ster, City Attorney OPERATING PLAN AND BUDGET FOR THE ASPEN LOCAL MARKETING DISTRICT in the City of Aspen, State of Colorado (2010) Submitted: June 30, 2009 TABLE OF CONTENTS 1.0 PURPOSE AND SCOPE OF THE DISTRICT ..................................................................... ....1 2.0 COMPOSITION OF THE BOARD OF DIRECTORS ......................................................... ....2 3.0 DESCRIPTION OF DISTRICT SERVICES ......................................................................... ....3 4.0 FINANCIAL PLAN AND BUDGET ................................................................................... ....4 5.0 ADMINISTRATION AND OPERATION ............................................................................ ....4 6.0 MUNICIPAL OVERSIGHT OF DISTRICT ACTNITIES .................................................. ....4 7.0 CONCLUSION ...................................................................................................................... ....5 EXHIBIT A Legal Description of Temtory Within District EXHIBIT B Map EXHIBIT C District Services EXHIBIT D Proposed 2010 Budget i OPERATING PLAN AND BUDGET FOR THE ASPEN LOCAL MARKETING DISTRICT 1.0 PURPOSE AND SCOPE OF THE DISTRICT 1.1 Introduction and Purpose. This Operating Plan and Budget for the Aspen Local Mazketing District (the "District") has been prepared and submitted in accordance with the provisions of the Local Mazketing District Act, Sections 29-25-101 et seq., C.R.S. (the "Act"). The main purpose of the District is to promote the continued vitality of commercial businesses within the service azea of the District (the "Service Area") by focusing on providing services in the following three main areas: (a) organization, promotion, marketing, and management of public events; (b) activities in support of business recruitment, management, and development; and (c) coordinating tourism promotion activities (collectively, the "District Services"). The District, acting by and through its appointed Board of Directors, will work closely with those groups which currently perform marketing activities in and around the Service Area, including but not limited to the City of Aspen (the "City"), the Aspen Chamber Resort Association ("ACRA"), the Aspen Ski Company ("ASC"), Stay Aspen Snowmass ("SAS"), and the Town of Snowmass Village ("TOSV"). The Service Area of the District consists of approximately 186 acres and is located entirely within the City. The District is a Title 29, Article 25, Part 1 Local Marketing District, and will be utilized to provide the District Services identified in this Operating Plan. The District Services will not be provided unless and until voters approve a one percent (1%) mazketing and promotion tax (the "District Tax") at an election held for that purpose. Currently, it is anticipated that voters will vote on the question of the formation of the District and the authorization of the District Tax at an election to beheld on November 3, 2009. 1.2 Backg or und. The formation of the District is a critical step toward expanding and enhancing the current marketing activities undertaken by ACRA, ASC, SAS, TOSV, and other groups. Section 29-25-102(2), C.R.S. states that the creation of local marketing districts is a key component in ensuring the continued economic growth of the State of Colorado. The Service Area of the District, and the Aspen-Snowmass area, is the premier resort destination for visitors from within the State of Colorado, across the United States, and internationally. The creation of the District establishes a vehicle through which the Service Area and surrounding region is assured of visibility in an increasingly competitive international tourism marketplace. 1.3 District Service Area. A description of the boundaries of the Service Area of the District (the "Service Area") is attached hereto as Exhibit A. A map depicting the boundaries of the Service Area is attached hereto as Exhibit B. 1.4. Onerating Plan Contents. Pursuant to the provisions of the Local Mazketing District Act, Section 29-25-101, et seq., Colorado Revised Statutes, as amended, this Operating Plan specifically identifies (a) the District Services to be provided by the District, (b) the District Tax to be imposed by the District, and (b) such other additional information as the City may require. 2.0 COMPOSITION OF THE BOARD OF DIRECTORS 2.1 Appointed Board, Electors. The Board of Directors of the District shall have five (5) members, all of whom shall be appointed by the City, pursuant to and in accordance with Section 29-25-]08(1)(b), C.R.S. All Board members must, by law, be electors of the District. As set forth in the resolution organizing the District, an "elector" of the District shall mean a natural person who is legally qualified to vote in the State of Colorado, who has complied with the registration requirements of the Uniform Election Code, and who: (I) Makes his primary dwelling place in the District; or (II) Owns commercial real property within the boundaries of the District; or (III) Is the natural person designated by an owner of commercial real property in the District which is not a natural person to vote for such owner. Such designation must be in writing and filed with the City Clerk and the secretary of the District. Only one such person maybe designated by an owner. 2.2 Initial Board. The individuals who are to be appointed to the initial Board of Directors of the District are: 1) Casandra Foister 2) Tim Clark 3) Dale Paas 4) Warren Klug 5) 2 3.0 DESCRIPTION OF DISTRICT SERVICES 3.1 District Services. As set forth in Section 1.1 above, the District Services consist of services to be provided by the District in the following categories: (a) organization, promotion, marketing, and management of public events; (b) activities in support of business recruitment, management, and development; and (c) coordinating tourism promotion activities. The District Services are more particularly described in Exhibit C attached hereto and incorporated herein by reference. The Board of Directors of the District will, to the extent practicable, coordinate the District Services with ACRA, ASC, ASA and TOSV in order to avoid the duplication of services. 3.2 District Powers. In addition to the District Services described in Section 3.1, the District shall have all of the powers of a local marketing district as described in the Act. 4.0 FINANCIAL PLAN AND BUDGET 4.1 General Matters, Budget. The District's preliminary 2010 budget is attached hereto as Exhibit D, and is incorporated herein by reference. The specific line items identified in the budget, including "basic marketing activities," "related marketing activities," "winter marketing campaign," and "group sales initiative" are further described in Exhibit C. Following organization of the District by resolution of the City Council and approval of the formation of the District and District Tax by voters at the November 3, 2009 election, the Board of Directors of the District will formally adopt a budget for 2010 in compliance with the Colorado Local Government Budget Law, including the required public notice and hearing before the Board of Directors of the District. The Board shall take no formal action on the final 2010 budget unless and until voters have approved the formation of the District. The budgets for 2011 and subsequent years shall be incorporated into the District's annual Operating Plan submitted to the City for review and approval as required by Section 29-25-110, C.R.S. 4.2 Initial Election. The District shall hold an election on November 3, 2009 for the purpose of authorizing the formation of the District and authorizing the imposition of the District Tax. 4.3 District Tax. Contingent on the favorable outcome of the November 3, 2009 election, funding for the District Services will be provided through the imposition of a one percent (1%) marketing and promotion tax on the purchase price paid or charged to persons for rooms or accommodations as included in the definition of "sale" in Section 39-26-102(11), C.R.S., and as further set forth and authorized pursuant to Section 29-25-112, C.R.S. Notwithstanding the foregoing, the definition of "sale" shall not include "the exchange of property as well as the sale thereof for money," as referenced in Section 39-26-102(10), C.R.S. 3 Revenues generated by the District Tax will be collected by the Colorado Department of Revenue (the "Department of Revenue") in a timely fashion, pursuant to and in accordance with Section 29-2-106, C.R.S., in order that the District Services identified in this Operating Plan may be funded and operational beginning as early as calendar year 2010. In accordance with Section 29-25-112(1)(b)(II), C.R.S., the Department of Revenue shall perform an annual analysis to determine the net incremental cost of the collection, administration and enforcement of the marketing and promotion tax, and shall retain an amount determined to be necessary to offset said incremental costs, except that such amount may not exceed three and one-third percent (3.33%) of the amount collected in any yeaz. 5.0 ADMINISTRATION, OPERATION AND MAINTENANCE 5.1 General. The District shall be responsible for providing its own administrative operations and the District Services. District Services will be performed by District personnel or by contract or agreement with other governmental or non-governmental entities. Pursuant to Section 29-25-111(1)(j), C.R.S., the District shall be authorized to exercise all rights and powers necessary or incidental to or implied from the specific powers granted to local marketing districts by the Act. 5.2 Funding of Administrative and Oneratine Costs. The District's administrative and operating costs, including accounting and legal services, will be funded through the District Tax. As set forth in the preliminary budget attached hereto as Exhibit D, administrative and operating costs are expected to comprise a maximum of 5% of the District's overall budget. The majority of District funds raised by the District Tax will be spent on the provision of District Services. 6.0 MiTNICIPAL OVERSIGHT OF DISTRICT ACTNITIES 6.1 Annual Operating Plan and Budget. The District shall submit to the City by September 30th of each year, an annual operating plan and budget describing its proposed budget for the next fiscal year in accordance with Section 29-25-110, C.R.S. This Operating Plan shall constitute the District's Operating Plan and Budget for 2010. The District shall submit its next operating plan and budget to the City on or before September 30, 2010, and by September 30th of each year thereafter. 6.2 Inclusions and Exclusions. Any proposed inclusions or exclusions of territory into or from the District shall be accomplished pursuant to and in accordance with Section 29-25- 113, C.R.S. 7.0 CONCLUSION It is submitted that this Operating Plan for the Aspen Local Marketing District meets the requirements of the Local Marketing District Act and that the District Services identified in this Operating Plan are those services which best satisfy the purposes of Part 1 of Article 25 of Title 29, C.R.S., as required by Section 29-25-107(4), C.R.S. It is further submitted that the formation of the Aspen Local Marketing District has a demonstrable public purpose, in that it will support and promote the continued vitality of the commercial interests located within the boundaries of the Service Area by providing a vehicle through which tourism promotion activities and related District Services may be funded on an annual basis moving forward. The creation and continued existence of the District will ensure that the Service Area and the related region remains a visible world class destination and remains competitive in terms of capturing tourist revenue in an increasingly competitive global tourism marketplace. 5 EXHIBIT A General Descriktion of District Boundaries The Aspen Local Marketing District is bounded by Main Street running east from Fifth Street to Monarch, but including half of the blocks north of Main Street between Garmisch and Second streets; then north on Monarch past Clark's Market and including the Puppy Smith commercial buildings; then up Mill Street to the alley between Hopkins and Hyman, east down the alley to Original Street, south to Hyman and east again to West End, then north to Hopkins, east to Cleveland Street then south to Cooper Avenue. The Boundary runs west on Cooper to Original, up to Ute Avenue to include the Aspen Silverglow and Gant properties, then south to include the Aspen Alps properties, west along Aspen Mountain to include the Lift 1 area and the Shadow Mountain Condominiums, then north along Garmisch to Hyman, east along Hyman to include the St. Moritz Lodge, north on Third Street to Hopkins, west again to Fifth Street and north to Main Street. The Aspen Local Marketing District also includes the commercial buildings at the Aspen Meadows and Aspen Institute, and the commercial buildings and lodging at the base of Aspen Highlands. The area included approximates 186 acres. A specific map of the District Boundaries is attached. EXHIBIT B Map of District Service Area Boundaries EXHIBIT C District Services The services to be provided by the Aspen Local Marketing District are those certain services described in Section 29-25-111(1)(e), C.R.S., as more particularly described below: A. Organization, promotion, marketing and management of public events 1. Public and Snecial Events. The District may assist with funding special events in the Aspen downtown core aimed at adding vibrancy to the community and enhancing the visitor experience. The District may assist existing special events with organization, promotion, marketing, and management. B. Activities in support of business recruitment, management, and development 1. Public Relations. The District will focus on increasing the travel budget to host more journalists and television crews in and around the City of Aspen for targeted stories. The District will also focus on increasing participation in the Colorado Tourism Office ("CTO") and other media events in key markets, which events are deemed to support business development within the service area of the District. 2. Business Develonment, Film Commission. The District will consider developing a local film commission aimed at providing resources and support for companies interested in filming in and around Aspen, which will develop business within the service area of the District by generating revenue for local businesses and hotels. C. Coordinating tourism promotion activities 1. Basic Marketing Activities. The primary purposes of the District will be to assist and interface with the Aspen Chamber Resort Association ("ACRA") to coordinate tourism promotion activities, including but not limited to the following: • Increase advertising budget (print and online) within targeted media outlets in both the Denver Front Range market and other key feeder markets such as Houston/Dallas, Los Angeles, New York, Chicago and Atlanta. • To the extent practicable, advertising funds will be allocated to maximize effectiveness by complementing advertising done by CTO and ACRA. • Direct mail and email marketing campaign - to past visitors to the City of Aspen and surrounding area from the database of the Aspen Skiing Company ("ASC"), the Town of Snowmass Village ("TOSV"), Stay Aspen Snowmass ("SAS") and ACRA. • Further participation in CTO cooperative advertising opportunities and travel trade-show program. • Utilize additional media outlets that have been out of reach due to limited budget (radio, TV, Comcast, mobile applications). • Increase presence in the Denver/Front Range markets and other "driver" markets through advertising at existing Colorado Welcome Centers, AAA and other drive market providers and increased distribution of collateral materials. To the extent practicable, the District may consider funding billboard, direct mail and Internet campaigns. • Basic marketing activities of the District will consist of a combination of print advertising, online and email advertising, cooperative advertising, radio, television and mobile phone applications, public relations and special promotional efforts. 2. Related Marketing Activities. In order to complement and support the above basic marketing activities, the District may purchase high-end photography of spring, summer and fall images for website and marketing materials, may increase the travel budget for industry events and trade shows, and may consider the sponsorship of special events, public events, group business initiatives, production crews, or other complementary activities. The District will also focus on increasing the web presence of marketing efforts through targeted email campaigns, database management and strengthening web based tracking mechanisms. All related mazketing activities of the District will be aimed at promoting and attracting more visitors to the Aspen area. 3. Winter Mazketing Campaign. ACRA has historically focused on non-winter marketing due to its limited budget. The District will focus on tourism promotion activities aimed at including a "winter component" to current marketing efforts. The District will work with ASC, SAS, TOSV and ACRA to complement current campaigns and will focus outreach on increasing the visibility of winter activities (other than skiing) that take place in and around the service area of the District during the ski season. 4. Group Sales Initiative. The District will focus on increasing the marketing budget for Aspen groups to include strategic marketing campaigns aimed at corporate, association, group travel, and destination weddings, including but not limited to the following: (a) increase presence and sponsorship at meeting industry events and trade shows; (b) fund the development and distribution of additional collateral marketing materials to include wedding planner and meeting planner guide; and (c) funding additional advertising in meeting media. Pursuant to Section 29-25-111(1)(d), C.R.S., the District may enter into contracts or agreements with ACRA or other third parties to provide, or assist with providing, any of the services outlined in this Exhibit C. Note: No revenue collected from the mazketing and promotion tax levied under Section 29-25- 112, C.R.S. may be used for capital expenditures, with the exception of tourist information centers. EXHIBIT D 2010 Budget (preliminary) ASPEN LOCAL MARKETING DISTRICT 2009 YTD 2010 Revenues and Budget Projected Marketing and promotion 0 1,000,000 taxes Other 0 0 Total: Expenditures Marketing Programs (Basic Marketing Activities and Related Marketing Activities) Public and Special Events, Public Relations Winter Marketing Campaign Group Sales Initiative Miscellaneous Management / Administrative and Operating Costs Legal Accounting /Audit Insurance Contingency Emergency Reserve 0 1,000,000 0 513,500 0 100,000 0 200,000 0 75,000 10,000 50,000 0 8,000 0 8,000 0 500 0 5,000 0 30,000 Total: 0 1,000,000 ' Estimated revenue based on proposed one percent (1 %) marketing and promotion tax imposed and collected in accordance with Sec[ion 29-25-112, C.R.S. i .~. 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