Testimony before the Michigan House Commerce and Tourism Committee on HB 6185

Summary

Written testimony dated September 16, 2020 from Doug Luciani, Chairman of the Great Lakes Sports Commission, to the Michigan House Commerce and Tourism Committee in support of House Bill 6185. The bill would enable the Michigan Department of Treasury to invest $30 million in a loan to the commission's sustainable revolving grant and loan fund. Luciani states that northern Michigan's tourism economy is expected to lose $2 billion this year due to the impact of Covid-19 and that 59% of total hotel-supported jobs in Michigan have been lost. The testimony cites a $3 million loan the commission approved for the Kiwanis Ski Club's renovation of Pine Mountain ski hill and a matching grant project to Traverse City Horse Shows.

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GREAT LAKES

SPORTS

COMMISSION

Testimony before the Michigan House Commerce and
Tourism Committee on HB 6185
By Doug Luciani Chairman of the Great Lakes Sports Commission
Wednesday, September 16, 2020

Good afternoon. Thank you, Chairman Marino and members of the Committee.
My name is Doug Luciani, Vice President of Strategy and Community Impact for
Cunningham-LIP and Chairman of the Great Lakes Sports Commission. | am delighted to
submit written comments in support the legislation before you, House Bill 6185. Thank
you Representative Cambensy and Senator Schmidt for bringing this important issue to
the forefront.

The Great Lakes Sports Commission's mission is to promote northern Michigan as
a premier destination for recreation, sport, and tourism. Those activities take place in
many forms - from youth, to amateur, to collegiate, and professional competition — and
include soccer, skiing, hockey, mountain biking, fishing, kayaking, running, and hiking
just to name a few. The sporting industry is a big business and the heartbeat of northern

Michigan.
Sports and recreation bring much needed energy, vitality, and economic activity
to our communities. They also translate to healthier lifestyles, talent retention, and
attraction. With our four year-round seasons, natural beauty and lakes, Michigan is the
preferred location for events of all sizes and has the potential to bring in thousands of
competitors, visitors, and new revenue to communities.

We need HB 6185 now more than ever to rebuild Michigan’s sports, and tourism
industry. Northern Michigan's tourism economy is expected to lose $2 billion this year
alone, due to the impact of Covid-19. Events are cancelled, 59% of total hotel-supported
jobs in Michigan have been lost, and several (6) counties in northern Michigan had the
highest reported unemployment rate in the nation.

We believe HB 6185 is an important step in Michigan's economic resilience and
recovery. This legislation enables the Michigan Department of Treasury to invest $30
million in a loan to the Great Lakes Sports Commission's sustainable revolving grant and
loan fund. This would allow the repayment of loans and for the sports commission to
pay it forward in support of new projects in future years. The loan from the Treasury will
allow the sports commission to immediately support public projects by providing much
needed public infrastructure improvements, recreation trails, and venues. This money
would be an investment, not a mandate, subsidy, or a grant.

Furthermore, there is a strong precedent for enabling the Treasury to invest in

this manner, and the legislation provides needed flexibility. There is a great need for
additional investment in rural Michigan, far greater than the $30 million contained in the
bill. Currently, investing in common cash funds makes sense to restore the lost jobs,
wages and business income that normally generates over $26.6 billion in consumer
spending per year in Michigan. This legistation would revitalize communities, attract
visitors, and build Michigan's global brand.

There is a strong track record of success to build upon since the sports
commission's inception in 2019. The Great Lakes Sports Commission has already
supported several projects in this short timeframe including a matching grant project to
Traverse City Horse Shows, and a loan to the Kiwanis Ski Club. Traverse City Horse
Shows — the organizer of the Great Lakes Equestrian Festival — secured a bid to bring the
American Gold Cup (the longest running equestrian grand prix) to Michigan. The now
annual event held in Traverse City has the potential to bring $124 million to the region
and the state of Michigan. The Kiwanis Ski Club’s renovation of Pine Mountain ski hill
was another success. The commission approved a $3 million loan to complete much
needed safety infrastructure improvements enabling Pine Mountain to host a ski-
jumping world cup in 2022, an event that is expected to contribute over $16 million to
Michigan's economy.

Thank you for the opportunity to comment this afternoon. We look forward
working with you to make Michigan a premier destination for world-class recreation,

sports, and tourism.


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