BIG SKY CHAMBER OF COMMERCE

J U L Y 1 , 2 0 1 3 – J U N E 3 0 , 2 0 1 4

Annual Report

LETTER FROM Chairman

Revenue

2013-2014 REVENUE 1. Membership Dues . . . . . . . . . . 21%2. Events . . . . . . . . . . . . . . . . . . . . 3%3. Non-Due Revenue . . . . . . . . . .13%4. Other . . . . . . . . . . . . . . . . . . . . 14%5. Resort Tax . . . . . . . . . . . . . . . . 49%

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The Big Sky Chamber has many revenue sources including membership dues, Resort Tax, advertising in publications and in the Visitor Center, Montana Office of Tourism grants, Yellowstone Country grants, and fundraising events. Over the past year, we’ve made great strides to increase our current funding sources and create new ones.  Our Total Resource Campaign created new marketing and sponsorship opportunities and allows our members to budget in advance; resulting in a 62% increase in non-due revenue and a 16% increase in membership dues.

“ When consumers know that a small business is a member of the Chamber of Commerce, they are 49% more likely to think favorably of it and 80% more likely to purchase goods or services from the company in the future.”

The Real Value of Joining a Local Chamber of Commerce Research Study by The Schapiro Group, December 2012.

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1

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4

5

Funding for Housing Plan, Longwood’s Market Research, and Visitor Center Operations

Dear Chamber Members,On behalf of the Board of Directors, I’m pleased to present to you this Annual Report of the Big Sky Chamber of Commerce. This document is the culmination of an eventful year for the Chamber, as well as for the Big Sky Community.We saw the consolidation of the community’s largest employers, creating an economic

engine unparalleled in Southwest Montana. We’ve seen building and growth begin to revive all around; from Town Center to Meadow Village to the Gallatin Canyon. By all measurements, the future of Big Sky is bright.The Chamber has initiated a wide variety of programs and projects to help Big Sky grow into a world-class resort community and Montana’s premiere place to work, live and play. Those efforts are detailed within this report.We continue to enhance our entryway and road ways with way finding signs and entryway lighting. We’re examining the growing housing crunch and identifying solutions we can present to the community.

We operate a lively and vibrant Visitor Information Center to assist visitors in their discovery of Big Sky’s many treasures.These projects have been enabled by support from Resort Tax. In addition, we are seeking state and federal funding for some of our projects. This puts us on the radar of these agencies, potentially opening the door to as-yet untapped resources for the community.All of these activities are made possible by you, the members. As a membership organization, the Chamber works for you. I hope you’ll continue to support your Chamber, or join for the first time. Renew, join anew, and reach out and encourage companies you do business with regularly to join as well.We are honored to serve on your board of directors, and energized by the progress we’ve been making. Thanks for all you do for Big Sky, and here’s to another year of continued success.Kind Regards,

David O’Connor Chairman, Big Sky Chamber of Commerce Co-Owner, Buck’s T-4 Lodge

2013 -2014

LETTER FROM

EXECUTIVE

REPORT

Director

Membership

B I G S K Y C H A M B E R O F C O M M E R C E 2 0 1 4 A N N U A L R E P O R T 3

The Big Sky Chamber of Commerce has seen tremendous growth over the past year during which the Chamber welcomed 50 new members. The majority of these members are new businesses who just opened their doors and existing businesses who are expanding into Big Sky. The Chamber also enhanced the higher membership levels by providing additional benefits. Several businesses recognized the tangible value of these benefits and increased their membership. Overall, businesses in Big Sky are showing an overwhelming level of support for the Chamber by sponsoring events, volunteering and advertising.

MEMBERSHIP LEVELS

MEMBERSHIP BY LOCATION

Middlefork . . . . . . . . 6Westfork . . . . . . . . . . 35Meadow . . . . . . . . . . . 261Lone Moose . . . . . . . 25

Andesite . . . . . . . . . . 12Headwaters . . . . . . . . 2Lone Peak . . . . . . . . . 3Additional Business . . . 39

Big Sky . . . . . . . . . . . . . . . . . . . . 261Bozeman/Belgrade . . . . . . . . . . 39Other Cities in Montana . . . . . 35Out of State . . . . . . . . . . . . . . . 25

Number of New Members . . . . . . . 50Total Membership Number . . . . . . 383

Dear Chamber Members,It is a pleasure to write this letter to the membership of the Big Sky Chamber of Commerce and have the opportunity to thank you for allowing me to represent you, your business and the community of Big Sky. There are so many things to cheer about. We have an exciting program of work, an incredibly exceptional team working

behind the scenes and a dedicated Board. How does one capture an entire year, thousands of hours of staff time and thousands more of volunteer time in one short letter? Just today, I received the inspiration for my message. My inspiration comes from another team related to Big Sky. That team is Chet Huntley and David Brinkley. As it was reported to me, David Brinkley described Chet Huntley in the following way upon learning of Chet’s death in 1974, “There are three groups of people in this world, well poisoners, lawn mowers and life enhancers. Chet Huntley was a life enhancer.”I am happy to report to the membership, Chet Huntley’s legacy lives on every day at the Chamber of Commerce. The community he envisioned seems to grow their own group of “life enhancers”

and I consider myself lucky to spend my days helping nudge this approach to community service. I am proud of the Chamber team. We work well with each other and truly do make your success their business. Our Board is also full of “life enhancers.” They complement each other with unique skills and perspectives while giving freely of their precious time. They care deeply about the quality of life in our community and their actions reflect their passion. While the Board works tirelessly to enhance the experience for their customers, they also thoughtfully approach Chamber policy making duties with enhancing the community in mind.This service ethic allows the Chamber continued success and growth as an organization. I am proud to be your director and proud of the people the Chamber brings together to enhance the lives of everyone in Big Sky. Thank you for your support of the Chamber…and fasten your seat belt. Here comes 2014!

Kitty Clemens Executive Director Big Sky Chamber of Commerce

The majority of Chamber members invest at the Meadow Level, which provides their business with basic benefits. Some members manage multiple businesses and invest in an additional business membership for each one. With a large amount of second home owners and retirees, individuals may choose to monetarily support the Chamber through the Middlefork level.

The Big Sky Chamber is supported by many businesses whose primary office is outside of Big Sky but conduct business in Big Sky. These businesses join the Chamber for exposure and to support economic growth in Big Sky. Big Sky

Bozeman/Belgrade

Other Cities in Montana Out of State

Meadow

AndesiteMiddlefork

Lone PeakHeadwaters

Westfork

Lone Moose

Additional Business

David O’Connor • Buck’s T-4 • Chairman David has been the Board Chair since 2012. Previously, he served as a board member from 1999-2007 and re-joined in 2011. He was also the president of the Big Sky Convention & Visitors Bureau from its inception in 2000 until 2007. David is the co-owner of Bucks T-4 Lodge in Big Sky. Originally from San Antonio, he’s been in the area since 1990 and his first job in hospitality was working as a bartender in Yellowstone National Park at the Mammoth Hot Springs Lodge. Under his guidance as General Manager, Buck’s achieved the first of eighteen Wine Spectator Awards of Excellence. For David, the most rewarding part of being involved with the Chamber’s Board of Directors is, “helping to build the community.”

Sarah Griffiths • Yellowstone Club • Vice President Sarah is the Vice President of the Big Sky Chamber Board of Directors and has lived in Big Sky since 2005. Her then boyfriend, now husband, was a ski instructor in Big Sky so she came out for a winter visit, and like many of us, she never left. She is originally from Southern California and a graduate of Cornell University. Her first job in Big Sky was working in property management and as the club secretary at the Yellowstone Club. After five months, she transitioned into the Director of Member Services role, which she currently still has. “I love playing an active role in the community. I believe it is so important to be engaged in the decisions that are shaping Big Sky today and into the future. The Chamber plays such an important role for our local residents and visitors alike. It is great to be a part of the vision and team that makes Big Sky great,” says Sarah.

John Richardson • 320 Guest Ranch • Treasurer John has been the Treasurer for the Big Sky Chamber of Commerce Board of Directors since 2011. An offer to become the General Manager of the 320 Guest Ranch brought him to Big Sky from Arkansas six years ago. At 320, John is responsible for the day-to-day operations of the ranch and oversees housekeeping, food and beverage, room and event sales, and maintenance. As a board member, he’s most proud of “seeing the progress that the Chamber has made over the past three years from growing the budget, increasing programming and staffing and getting the Visitor Information Center to its current location.”

Shawna Winter • Christie’s International Realty • Secretary Shawna has been on the board since 2011. She has established herself during the past fifteen years as one of the premier Big Sky realtors. She has achieved extraordinary success through hard work and devotion to her clients and craft. Originally from Florida, Shawna visited Big Sky for a ski vacation in 1992 and returned the following summer intending to stay only for a few months, and like many others, never left! Shawna also devotes considerable time to the Big Sky Arts Council board.

Bill Simkins • Big Sky Town Center • Director Bill has been a board member since 2011. Born and raised in Bozeman, Bill’s family acquired the land that is now Big Sky Town Center in 1970. He is involved in the day-to-day operations at Simkins Holdings, which is the master developer for Town Center. For Bill, the most rewarding part of being on the Chamber’s board is “seeing the transformation of the community and realizing that the Chamber has become a leader in the economic development of the community.”

Kevin Germain • Moonlight Basin • Director Kevin joined the board six months ago and replaced Greg Pack from Moonlight Basin. He is the Director of Planning, Development and Environmental Compliance at Moonlight Basin. His work experience includes natural resource planning and permitting, resort and real estate planning and the ensuing technical application of environmental and civil engineering. “Working with the Chamber staff is awesome! Kitty, Danielle, Andrew and Marci are very impressive. It’s a great board to be a part of,” says Kevin. Kevin splits his time between Big Sky and Ennis and in his free time, Kevin enjoys spending time with his family, archery hunting, and fly fishing.

Pat Straub • Gallatin River Guides • Director Pat moved to Big Sky in the early 70s with his family because his parents loved the mountain lifestyle and wanted Pat and his siblings to be raised in Montana.  As the owner of Gallatin River Guides, Pat feels lucky to be able to do the same. He’s been a fly fishing guide and outfitter in Big Sky for over 15 years. For Pat, the best part about being involved with the Chamber is “the ability to serve the public and business community. The work we do now will help future Big Sky residents continue to enjoy the good fortune we have in our mountain town. We live in a very unique place and it is both challenging and rewarding to serve our business, educational, and environmental needs and wishes.”

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BOARD OF Directors

(from left to right) David O’Connor, Pat Straub, Bill Simkins, Shawna Winter, John Richardson, Sarah Griffiths, and Kevin Germain.

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MARKET RESEARCHLongwoods

INFORMATION CENTERVisitor

The Big Sky & Greater Yellowstone Visitor Information Center (VIC) moved to its new location in July 2012. Since then we’ve helped more than 27,000 visitors explore our community, enjoy fine dining, experience recreational activities and find a place to rest their weary heads. In the past year, our visitor numbers to the VIC increased 35%. The goal of operating the VIC is to capture vehicular traffic from US Highway 191 and convert transient travelers to overnight guests while also increasing length of stay for current visitors. According to Travel USA Research, it is estimated that each party visiting Big Sky will spend $812 while on vacation. “Your highly trained VIC staff greatly impacts the area’s economy and with continued community support, will continue to serve the region’s businesses for years to come – congratulations on a job well done!”

Carol Crockett, Montana Office of Tourism, Visitor Service Manager

Successful efforts are informed by research. The Chamber board took the lead to obtain essential research for a strategic planning process in support of community placemaking efforts. Longwoods International, a respected leader in marketing, advertising, and public opinion research provided a “big data” set of 149,000 American households reporting to the Travel USA survey panel. This survey sample visited Montana and included a national park in their vacation plans.  By tapping into the Travel USA research, the Chamber is able to effectively plan and help local businesses identify overall consumer product expectations for vacationing in Big Sky and evaluate current travel product delivery to those people who have visited the area. The link between these two measurements informs a vision and foundation for a tourism development master plan.  Montana visitors who include a visit to a national park are considered a high value visitor. They will spend more on lodging, food, activities, art and entertainment. Big Sky has great opportunity to capitalize on this subset of approximately 2.69 million American visitors that represent nearly $2.2 billion in annual spending on travel to Montana with the high propensity to have Big Sky on their vacation wish list.

The key to successful economic development is the attitude that businesses are a community’s core asset. What a Chamber does to help local business thrive matters. As is the case with most Chamber programs, collaboration is king.  In 2013, the Big Sky Chamber of Commerce and the West Yellowstone Chamber of Commerce collaborated to do some economic gardening and adopt a regional perspective. Host Week enables staff who are in a position to promote local businesses the opportunity to participate in free or reduced cost activities over a 10 day time period. Area businesses were able to highlight their products, promote new facility improvements and educate front line workers in both communities. This successful program will become an annual tradition.

“ I appreciate your hard work and dedication to solicit feedback from area businesses and other economic leaders in the community. Thank you for your contributions to the State of Montana, and keep up the good work.”

Governor Steve Bullock

MAIN PURPOSE OF LEISURE TRIPVisiting Friends/Relatives

Touring Outdoors

Special Event City Trip

Skiing/Snowboarding Resort

Theme Park0 10 20 30 40 50

n Montana Total n Montana Parks

4334

12

10

7

1

1

1

3

27

15

7

1

2

2

2

DID YOU Know? BUSIEST WINTER MONTH: March BUSIEST SUMMER MONTH: July BUSIEST WINTER DAY: Friday BUSIEST SUMMER DAY: Thursday

WEEKHost

SEASON OF TRIP January-March

April-June July-September

October-December0 10 20 30 40 50

21

22

36

21

12

29

46

13

n Montana Total n Montana Parks

TOP 10 STATES1. Montana2. California3. Florida4. Colorado5. Washington

6. Wisconsin7. Minnesota8. Pennsylvania9. Illinois10. Texas

All destinations are fighting to secure or maintain their competitiveness in the marketplace and hence the livelihoods of their business owners. A quality workforce is necessary to achieve a competitive edge. Mobility of capital and talent has created fierce competition in locations where people want to work, live and play. Resort economies are competing for the best ideas and the most capable workforce as they strive to become multidimensional and less dependent on a single target audience. Moreover, as resort destinations succeed in building demand from multiple sources, labor shortages become more acute. With this in mind, the Chamber accepted the leadership challenge of striving to develop workforce housing solutions as a “job one” economic development goal.  In a resort based economy with boom and bust cycles, the housing challenge is large. A working smarter strategy emerged for achieving solutions while building upon community input from a series of “idea exchanges.” These exchanges developed three guiding principles:  achieve smart growth, do more with less, and win collaborative support for change. Economic Planning Systems (EPS) developed a plan and then a grant writer took the EPS data and is continuing to submit grants. Kristen Brown, a local attorney, developed the Big Sky Housing Council Resource Guide, a 249 page playbook for implementing workforce housing plans. The stage is set for a phase two effort … a sustainable workforce housing project that can be replicated in key infill locations with sensitivity to the environment and creating community.

WORKFORCE

PLANHousing

Made Possible By RESORT TAX FUNDING The program of work for the Chamber of Commerce is made possible by funding from the Resort Tax. Many of the projects featured in the 2013/2014 Annual Report would not happen but not for their support. The community has signs and lighting paid for with Resort Tax funds as well as holiday decorations at the entryway. Resort Tax funds resources that support operation and personal customer service to every visitor walking into the Visitor Center.

We would like to thank the Resort Tax Board for their hard work and dedication, and to the Big Sky community for their support!

In 2013, the Chamber published the first ever Official Visitor Guide to Big Sky©. Over 50,000 guides were distributed throughout Southwest Montana and in strategic feeder markets including Seattle, Los Angeles and Denver. The Official Visitor Guide is a comprehensive compilation of visitor information. It was supported by 32 advertisers and paid for through advertising dollars.“Over the past year, I’ve seen the Official Visitor Guide to Big Sky in my cl ient’s vehicles and knew they choose us because of the guide.” Bryce C o n n e r y , Owner of Lone Peak Outfitters.

OFFICIAL

TO BIG SKY©Visitor Guide

WORKFORCE HOUSING NEEDS

Part-Time & Seasonal Workforce

(e.g. Lift Operators, etc.)

<50% AMI Income: $30,000 or less Rent: $700/month or less

Employee Housing (Dormitory/Lodge Units)

!

Rental Ownership (TH, Duplex)

Community Housing Solution Private Housing Solution

Service Workforce (e.g. Retail, Service, etc.)

50% to 100% AMI Income: $30,000-$60,000 Rent: $700-$1,400/month

Community Workforce (e.g. Teachers, Fireman,

Police, etc.)

100% to 140% AMI Income: $60,000-$80,000 Home Price: $180K-$260K

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2013-2014 Resort Tax BoardJamie Kabisch - Chairperson Mike Scholz – Vice Chairperson Ginna Hermann – Secretary

Heather Budd – Treasurer Jeff Strickler - Director Les Loble (term expired 2013)

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The Big Sky Chamber works diligently to communicate with our members, residents, and visitors on a regular basis. Here are a couple examples:

What’s Happening in Big SkyThere’s never a shortage of events, specials and programs taking place in Big Sky. The weekly “What’s Happening in Big Sky” newsletter originated last summer and is distributed every Wednesday to over 2,800 subscribers. It delivers information on events and specials taking place over the following 10 days. It also includes a comprehensive dining and shopping guide updating readers on changes in business hours. Local businesses help with Chamber communication by printing the “What’s Happening” email and displaying it publicly.

Chamber Chat NewsletterThe bi-weekly Chamber newsletter is a valuable resource for members as it provides updates on current projects, introduces new members, and highlights business resources. The email provides links to free webinars and business articles to help our members stay current on trends and news. Sent to more than 850 readers, this is one of our most popular newsletters with the highest open rate.

www.bigskychamber.comThe Chamber website saw a complete overhaul and launched in December 2013. At www.bigskychamber.com Chamber members and business owners can find information on current projects, news, and a business directory. People who are interested in relocating to Big Sky can find information on our school system, community, and real estate. We are also excited to offer a Tools For Business Success section, which provides information on starting and growing a business. On average our website receives 1,500 visitors per month and the busiest page is the business directory.

CHAMBERCommunicationsPROGRAM

Ambassadors

The Big Sky Ambassador Program was launched in November 2013. It’s comprised of 14 volunteer ambassadors who are business professionals from within the community. Big Sky Ambassadors promote membership, enhance goodwill for the Big Sky Chamber, a n d e n c o u r a g e member involvement. In 2013-2014 they’ve coordinated seven r i b b o n c u t t i n g s , a t t e n d e d e v e r y Business After Hour event, and assisted the Chamber in the promotion of special events. The Chamber is grateful for our ambassadors and thanks them for their commitment to Big Sky and the business community.

This planning tool was developed by the Chamber to provide business owners with the opportunity to budget for year-round advertising. It acts as a one-stop-shop for all of the advertising and sponsorship opportunities that are available through the Chamber for the entire year, thus allowing businesses to prioritize their spending. The Chamber now offers 25 diverse advertising and sponsorship opportunities to help businesses grow. Last year’s advertisers and sponsors allowed for a 62% increase in non-due revenue for the Chamber.

“ The Big Sky Ambassadors is a great opportunity to connect with other business owners in a casual, social situation along with promoting goodwill, cooperation and exposure for our Chamber.”

Cathy Gorman, Sotheby’s Chairman

TOTAL

CAMPAIGNResource

1

2

34

2013-2014 EXPENSES 1. Visitor Center Operations . . . . . . . 48%2. Economic &

Community Development . . . . . . . 39%3. General Administration . . . . . . . . . . . 11%4. Events & Public Affairs . . . . . . . . . . . 2%

Tools FOR BUSINESS SUCCESS Accessible from www.bigskychamber.com, Tools for Business Success is a resource guide for businesses who are starting up in Big Sky or looking for ways to improve service within their industry. Helpful tools include business planning assistance, tips for marketing, an employee training guide, and state and federal government requirements.

TOP CHAMBER Members

Presenting SponsorAt First American our philosophy is simple. We are customer centered experts in the title and escrow industry. We are proud to be the largest independent title and escrow agent in Idaho and Montana. We currently serve 58 counties with 52 offices in Idaho, Montana, Wyoming and Washington. Each office employs local people and is part of the fabric of their community. In addition to our local focus, we are dedicated to being a regional solution for settlement services. Our expert sales staff, coupled with state of the art technology, allows us to create a suite of services tailored to your specific needs. Finally, in order to effectively serve our customer’s national needs, we operate as a seamless extension of our underwriters.

Gold SponsorsYellowstone Club is a 13,600 acre private residential community set amidst the grandeur of the Rocky Mountains. The Club’s superior amenities, easy Montana charm and overwhelming natural beauty present an incomparable venue for mountain living, year-round recreation, and cherished family traditions. Explore the spectacular beauty of the world’s only private ski and golf community and the benefits of membership in this exclusive one-of-a-kind club.

In addition to the 2,200 powder drenched trails of world-class skiing in the winter and an 18-hole Tom Weiskopf-designed mountain golf course for the summer months, we have a full Outdoor Pursuits program for unparalleled mountain adventures.

Spanish Peaks Mountain Club is a 5,700-acre private ski and golf community, located in beautiful Big Sky, Montana. Offering an unparalleled recreational lifestyle, Spanish Peaks Mountain Club fulfills the desire for an authentic atmosphere where lasting memories are created. Amenities include direct access to Big Sky Resort, the Biggest Skiing in America; an 18-hole Tom Weiskopf Championship golf course; and over four miles of private access on tributaries of the Gallatin River. The intimate Clubhouse provides dramatic views of the Spanish Peaks mountain

range and offers dining, golf and ski operations, fitness, spa treatments, and youth programs.

Moonlight Basin is a remarkable residential community and private club located in Big Sky, Montana, focused on outstanding outdoor recreation, family-friendly programming, and environmental conservation and sustainability. All past and future development has been planned with nature in mind, creating a property that provides exceptional golf, ski, and wilderness adventures for guests, owners, and members.

Silver Sponsors

PROFILESSponsor