City Council Meeting
Study Session Minutes
Arts, Destination Marketing and
Destination Events Funding
Tuesday, February 16, 2024
9:00 AM
LOCATION:
Council Chambers-200 E Santa Clara Street
MATT MAHAN, MAYOR
ROSEMARY KAMEI, VICE MAYOR, DISTRICT 1
SERGIO JIMENEZ, DISTRICT 2
OMAR TORRES, DISTRICT 3
DAVID COHEN, DISTRICT 4
PETER ORTIZ, DISTRICT 5
DEV DAVIS, DISTRICT 6
BIEN DOAN, DISTRICT 7
DOMINGO CANDELAS, DISTRICT 8
PAM FOLEY, DISTRICT 9
ARJUN BATRA, DISTRICT 10
• Call to Order and Roll Call
9:00 a.m. – Study Session.
Present Councilmembers: Mahan, Kamei, Jimenez, Torres, Ortiz, Doan, Candelas, Foley, Batra.
Absent Councilmembers: Cohen, Davis.
CITY COUNCIL STUDY SESSION
Purpose: To provide the City Council an opportunity to discuss City funding of arts, destination marketing, and destination events as well as different national funding models.
Outcome: That the City Council will establish a common understanding of the importance of and funding models for arts, tourism, and destination events.
1. Introduction
Nanci Klein, Director, Office of Economic Development and Cultural Affairs, offered the introduction to the Study Session, and introduced the following presenters: David Plettner- Saunders, Cultural Planning Group; Matin Cohen, Partner, Cultural Planning Group; Kerry Adams Hapner, Office of Economic Development and Cultural Affairs; and Jim Shannon, City Manager’s Budget Office.
Nanci Klein presented the local context of the economic impact of the Arts, Destination Marketing and Destination Events. This included supporting Downtown San José vibrancy and trends of revenues and need to diversify.
2. Review of Council Direction
Kerry Adams Hapner, Office of Economic Development and Cultural Affairs introduced City Council Direction from the Mayor’s June Budget Message for Fiscal Year 2023/20214, which included:
1. Direct City Manger to develop an agenda and facilitate a Study Session with the objectives and goals to explore different funding mechanisms that can be used to add more funds to the arts community, as outlined in Manger’s Budget Addendum #58.
2. Direct the City Clerk to set a City Council Study Session in Fall/Winter 2023
3. Direct the City Manger to include the feasibility of new arts funding when surveying voters for possible future revenue measures.
3. Scope and Process for the Report
Connie Martinez, Founder and Senior Advisor, Silicon Valley Creates, spoke to the economic and social impact of nonprofit arts and culture organizations and their audiences in the City of San José.
Laura Chmielewski, Vice President of Marketing and Communications Team San José, spoke to the investments in Destination Marketing.
4. Local Context
John Poch, Executive Director at San José Sports Authority, presented the San José Sports Authority Event Expense Report from December 2021-December 2023.
5. Economic Impact of the Arts, Destination Marketing, and Destination Events Jim Shannon, City Manager’s Budget Office, presented the Transient Occupancy Tax Distribution model, and the Convention Center Facility District (CCFD) Special Tax, and spoke to the finance expansion, construction, reconstruction, and upgrade of the Convention Center.
6. Overview of City Funding Sources and Trends in Revenues Jim Shannon, City Manager’s Budget Office, presented the Primary Current City Funding Sources for Arts, Destination Marketing, Destination Events, and Convention and Cultural Facilities.
7. Opportunity to Invest in the Local Arts, Destination Marketing, and Destination Events to Generate Even Greater Impact
Kerry Adams Hapner, Office of Economic Development and Cultural Affairs, expressed why more resources are needed; and stated that more resources will maximize the growth and will reduce infrastructure maintenance and repair costs over time.
8. Potential Additional Revenue Options
David Plettner-Saunders, Cultural Planning Group; and Matin Cohen, Partner, Cultural Planning Group, spoke to additional funding opportunities for Arts, Destination Marketing, and Destination Events, including the following: Current Public Art Requirement, Art in Private Development Ordinance, Admission Fees, Parking Fees, Rental Cars and Scooters, Enhanced Infrastructure Financing Districts, Voter Initiative, City-led Bond Initiative, Increase of TOT Rate, Reallocation of Existing TOT Revenues Currently Received in the General Fund, Establish Baseline of TOT Revenues into the General Fund and redirect any net new revenue above the baseline solely for ADD, and Prioritize ongoing or one-time General Fund allocations for strategic investments that generate ROI.
9. Discussion
Councilmember Omar Torres began the discussion pertaining to Arts, Destination Marketing, and Destination Events Funding in San José.
Councilmember Sergio Jimenez asked staff’s opinion on the allocation of funding if it’s available.
Councilmember Pam Foley spoke to the importance of showcasing performing arts from our middle schools and high schools.
Councilmember Arjun Batra spoke to essential services within the City, and the challenges faced.
Vice Mayor Rosemary Kamei spoke to the importance of arts, culture, and sports in the City.
Councilmember Bien Doan spoke to the importance of displaying art throughout the entire city, and not just in Downtown.
10. Next Steps and Closing
Nanci Klein, Director, Office of Economic Development and Cultural Affairs, presented the next steps and considerations for the Budget Process, including additional analysis, and to consider directing strategic investments in Arts, Destination Marketing and Destination Events as part of City Council’s approval of the Mayor’s March Budget Message.
PUBLIC COMMENT
1. Emily spoke to the importance of art funding for teaching opportunities.
2. Shawna Lucey spoke to the importance of the art community and challenges in revenue growth.
3. Nicholas spoke to Opera San José and the opportunities offered to the community.
4. Katrina Stevens spoke to sustainable funding for organizations such as The San José Tech Interactive.
5. Vanessa provided public comment regarding the Mexican Heritage Plaza and the traditions that are critical to the community .
6. Alexandra provided public comment regarding the importance of the arts and the economic impact of the arts within the City.
7. Brandon provided public comment regarding San José Jazz and the economic impact within Downtown San José.
8. Karen provided public comment regarding San José Arts Advocates, and the benefits that art provides to the community.
9. Chris provided public comment regarding the impact of the arts from the State Senate.
10. Natalie provided public comment regarding tech tourism in San José, and building events that get more tourism to the City.
11. Sarah provided public comment regarding the revitalization within San José.
12. Carman Gaines provided public comment regarding the San José arts and culture, and the experience that we have to offer.
13. Erin Salazar provided public comment regarding Local Color and the equitable pathways for artists to thrive.
14. Anais Bueno provided public comment regarding the benefits of Holistica Arts San José.
15. Bill Palmer provided public comment regarding the American Beethoven Society and the importance of funding.
16. Wisa Uemura provided public comment regarding San José Taiko, and the importance of Arts and Culture events.
17. Michael Mulcahy provided public comment regarding the urgency of committed funding to our Arts agencies.
ADJOURNMENT
The Council of the City of San José adjourned at 11:32 a.m.
Minutes Recorded, Prepared and Respectfully Submitted by,
DRAFT
Daniel Aguilar
Deputy City Clerk, City of San José
Approved at Council on:
# of Actions: 0
Attest By:
Toni J. Taber, CMC
City Clerk, City of San José