Michigan LSE Fund

GOALS, PRINCIPALS, OBJECTIVES

Program goals

  1. To provide a formalized program for CVBs to attract LSEs.
  2. To assist in attracting additional spending into Michigan.
  3. To assist in creating incremental state and local tax revenues.
  4. To bring into balance the local cost and state revenue gain flow.

Program principals

  • Apply only to quot;Large Special Eventsquot; that will generate significant incremental state revenues from out-of-state visitor spending.
  • Apply only to events where there is clear inter-state competition.
  • Apply only to events where organizers/sponsors are likely to receive operating costs inducement offers from competing communities in other states.
  • Provide sufficient flexibility that the program can be a useful tool for CVBs while impressing event organizers choosing future venues.
  • Assure proper safeguards; administer with few if any deducts from the MEDC grant.
  • Maintain necessary privacy for CVBs as they compete to host LSEs.

LSE ELIGIBILITY AND PROGRAM

Eligible event

  • The event must be multi-state or national (typically an annual event that changes host cities each year).
  • If held in Detroit, the LSE must involve over 4,000 participants (based upon previous years); non-Detroit events must involve at least 1,500 participants.
  • Must span at least 2.5 days (not including preparation).
  • At least 60% of the dollars to be spent in Michigan are likely to be derived from non-Michigan businesses or residents.
  • Has not been hosted by the community in the year previous to the event targeted.
  • Prior to be being chosen to receive financial assistance, CVB officials must submit evidence that future public revenue gains will exceed the amount requested.
  • The application must have CVB involvement; joint CVB partnerships and partnerships with other civic or business promotion entities are encouraged.

Eligible costs

  1. Dollars, even if committed years earlier, can only be spent on hosting costs that occur within one month or during the event.
  2. Capital expenditures not eligible.
  3. Expenditures must meet the normal reimbursement validation and accounting rules of the MEDC, DMCVB, and the local CVB.