STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 15, 2015

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1 SHED BUSINESS a "making a positive difference now" TO: FROM: RE: STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 15, 2015 Honorable Mayor and City Council Nancy Kerry, City Manager Discussion and Possible Direction/Action to Provide Funding to the Tahoe Prosperity Center in the Amount of $10,000 RECOMMENDATION: Consider the request brought forward by Mayor Hal Cole to authorize funding in the amount of $10,000 to Tahoe Prosperity Center and select one or more of the following actions: 1) Take no action 2) Provide direction to the City Manager regarding this request 3) Authorizing the expenditure of $10,000 from the City's FY General Fund ISSUE AND DISCUSSION: At the September 1, 2015 City Council meeting under City Councilmember comments, Mayor Hal Cole requested City Councilmember support to bring the Tahoe Prosperity Center's request for funding in the amount of $10,000 to a vote of the City Council. Mayor Cole's request was seconded by Mayor Pro Tern Wendy David. The Tahoe Prosperity Center (TPC) is a basin-wide non-profit organization comprised of a Board of Directors of both public and private entities. According to their published information, the TPC works, "collaboratively with all the communities around the lake," to "unite Tahoe's communities," "accelerate and embrace change," and "encourage investment in Tahoe." Attached are TPC's history and accomplishments as submitted by their Executive Director, Heidi Hill Drum. On September 1, 2015, the City Council approved a policy to consider funding for nonprofits on a case-by-case basis. FINANCIAL AND/OR POLICY IMPLICATIONS: TPC is requesting funding in the amount of $10,000. TPC receives contributions from most participating board partners. If approved, staff recommends utilizing unexpended funds from the FY General Fund budget.

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3 Lake Tahoe Basin Tourism Tourism and Visitor Services accounts for approximately $2 billion of the $5 billion in revenue generated in the region. While Tahoe will always be a great place to visit, ski areas have seen declining numbers of visitors within the past few years and gaming revenues are also down (figure 1 ). Lodging properties (figure 2) and retail sales (figure 3) concentrat ed in town centers are seeing an increase in revenue, showing that visitors may be spending in other areas such as dining and shopping. Other types of recreation such as mountain biking and golfing are improving and the number of people attending outdoor concert s, events and activities in the region seems to be increasing as well. Policy recommendations for local agencies and businesses to consider include encouraging redevelopment to enhance resident and visitor amenities and expanding t he variety of recreation activities. Figure 1 e Gaming Revenue Skier Visits 10,000 Figure 2 - Quarterly TOT Revenues: Z.C.\Statellne ('000) Quarterly TOT Revenues: South Lake Tahoe ('000) - Quarterly TOT Revenues: North Shore, Including Homewood ('000) - Combined Quarterly Average ('000) Tahoe's Resident & Visitor Population 14 8,000 6,000 4,000 2,000 Lake Tahoe is a world-renowned destination. While the number of visitors to Lake Tahoe is estimated between 3-5 million people annually, the number of year-round residents has declined significantly since 2000 (figure 4). The high cost of housing and below average wages have forced some to locate housing or employment outside the Basin. The year old age range has declined significantly in recent years, which could mean fewer families and prime working age population as the economy begins to recover m m m ~ m m m ~ m m m ~ m m However, in 2013, there was a slight increase-in overall population - the first increase in more than twenty years - a hopeful sign. Figure 3 Figure 4 In Millions Southl.akoTohoe e 1ncllno\llli>g ZephyrCovelSl t lln T ho Clty $90 $80 1--~ ~ $ "'... ~------==------~n---=:;.-=- $ '~~~ =~--~==-~---- $50 >----'~~ $40 $30 $20 $10 so $12.3 $34.2 $31.6 $32.5 $31.2 $10.2 $10.4 $11.0 $11.6 $12.4 $ ,000 ~-60-,-2g_5 60,000 59,000 58,000 57,000 56,000 55,000 54,000 53,000 52,000 Decennial Decennial

4 Jobs in Tahoe Employment in the region is primarily focused on Tourism and Visitors Services. Unfortunately, since the recession of 2008, the region has lost 6,500 workers from the labor force. While the most recent statistics from 2013 show more jobs than workers, many of those jobs are seasonal and low-wage. Tahoe's unemployment rates are higher than state averages (figure 5) although levels have improved since the recession. Professional jobs show signs of stabilizing between , indicating a positive trend toward higher wage jobs in the region. However, with the influx of 50,000 jobs coming to the Reno/Sparks region by 2020, we foresee significant impacts to the Basin's workforce. The Tahoe Prosperity Center will bring together community leaders, businesses and residents to determine strategies for addressing some of these potential workforce challenges S«ltt!LabTai- Figure 5 T... Z., COYt /SUWllM. lndm... Tahoe Real Estate Basin-wide, home prices have appreciated 10 to 15 percent since 2013 (figure 6), while incomes have declined by approximately 5 percent during this same period. As of 2010, the median home price in the Tahoe Basin was 1,007% of the median income. This is significantly higher than the ratios observed in other areas, such as Reno (530%) and the Bay Area (838%). One-half to two-thirds oftahoe's housing are second homes, not primary residences. This results in: -Fewer spending dollars at lrn;:al businesses (as compared to a full-time household) -Fewer tax dollars from sales tax -Difficulty in building "community" and fostering civic engagement As a region, it is important to address this discrepancy. Policies encouraging planning that promote new mixed-use retail and housing in town centers, workforce housing subsidies for large employers and loan assistance programs for full-time residents are some ideas for consideration. l4.s,. 12.S " 45" Figure 6 $800,000 $700,000 $600,000 North Lake Tahoe SS00,000 $400,000 $300,000 South Lake Tahoe $200,000 $100,000 so

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