Unreserved Fund Balance in the Tourism Fund will be utilized to create a Neighborhood Tourism Development Program (NTDP). The NTDP is envisioned as supporting non-profit organizations through contracts for services to help promote Independence's distinct and diverse neighborhoods through cultural, social, ethnic, historic, educational and recreational activities in conjunction with promoting the city as a premier convention, visitor and tourist center. If the NTDP is successful, management recommends future budgets include a contingency to further fund the program and expand marketing dollars available for community organizations to apply for annually subject to future appropriation.

If approved, this item would direct the City Manager to execute an agreement with the Independence Square Association (ISA) for a pilot project for this program. It is recommended that this program be piloted with the ISA as many community's contract with their local downtown merchant's association to provide community programming and events, making this easy to replicate as a pilot program. As part of this pilot program, the ISA would be required to track audience data, event data, and a full accounting of expenses relating to the events administered by the ISA with these funds in order for the City to ascertain the economic impact associated with the expense of these funds.

Additionally, the City Manager will be required to make a final report and recommendations to the City Council regarding potential future expansion of the program. If proven to be successful, City staff anticipates recommending additional funding be allocated in future fiscal years to support additional non-profit entities seeking to grow tourism activities within the community.