The District will consider proposals from organizations and special events that meet the following eligibility criteria:

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1 Grant Criteria The Durango BID aims to promote broad participation in the arts and special events, encourage resource-sharing and collaboration, and provide equitable access within the City of Durango to its limited resources through grants to organizations and special events. The arts and special events community may receive grants to support activities within the City of Durango that address the Durango Business Improvement District mission to ensure the development of a flourishing cultural environment and promote the general welfare, education and economic vitality of all citizens of Durango through the arts and special events. In brief, applicants must be prepared to specifically address: * Community responsiveness and support of activities * Quality of events(s) and/or programming * Management effectiveness, fund-raising techniques and use of local media: and, * Compliance with City policies Eligibility Criteria The District will consider proposals from organizations and special events that meet the following eligibility criteria: Applications will be accepted from organizations and events that provide educational, artistic, entertainment, and cultural opportunities for the public to participate in within the City of Durango, with preference given to special events that take place in the Business Improvement District. Only one (1) application may be submitted per event. Items Not Funded Programming and events to which any of the following criteria or uses applies will not be considered for funding * Debt and deficit reduction * Out of town activities (except for approved marketing) * Social activities, entertainment costs, receptions, and entertainment * Capital Improvements, facility rental, lease re-imbursement for facilities * Three year funding maximum, unless a significant change in programming is made, or funding is extended by the Board. Grant Amounts and Criteria Grant requests may begin at $1,000. Durango Business Improvement District appropriation for from 2004 to 2010 is based on annual property tax revenues generated from a 1.5 mil levy. In addition, DATO has provided funding for special event marketing, subject to annual review. Funding for District may fluctuate from year to year, and there is not guarantee of funding year to year. However, applicants should be aware that the District Board does not usually award marketing grants greater than $10,000 annually to one special event.

2 Grant amounts may vary and there are different forms to fill out for each funding group. All groups should be able to provide the following: 1. Royalty free photos of their events to be used for future years. 2. Provide three (3) letters of endorsement from local retail merchants. 3. A PR packet must be supplied to the board 30 days prior to the event. 4. Organizing person telephone and contact numbers. 5. A list of the committee members. 6. Additional funding sources including in-kind. 7. All anticipated usage of venues i.e.: Public, private and non-profit facilities, including where in the Business Improvement District the event will be held. Groups asking for up to $10,000 would need to demonstrate the following: 1. Groups requesting this funding would need to demonstrate: * Proven event track record * Significant draw from a long haul market (500 miles or more) * Minimum 6 month lead time before the event * Niche marketing plan into long haul market and campaign plan for free publicity in special interest publications * Strong financial plan and group of volunteers * Additional funding sources, such as grants, sponsorships, ad revenues, ticket sales or event sales. * Strong utilization of downtown Durango facilities * The potential for significant growth in future years * Event must be positioned in a shoulder of off season date to maximize the events ability to fill hotel rooms, impact retailers and restaurateurs during slow times * Preferred scheduling January 3-June 15 & October 7-November 30 each year Minimum of 10 photos. Grants would be awarded following Special Events committee review and recommendation to the Board for final approval. 2. Groups asking for $5,000 $9,000 of funding would require: * Strong regional draw from the 300 to 500 mile radius drive market * Minimum 4 month lead time before event * Some long haul Market potential (500+ miles away) * Written regional market plan aimed at Albuquerque Santa Fe Western Colorado Northern Arizona West Texas

3 * Strong utilization of downtown facilities * Additional Funding Sources * Strong financial plan and group of Volunteers and organizers * Preferred scheduling January 1-June 30 & October 7-November 30. Grants would be awarded following Special Events committee review and recommendation to the Board for final approval. 3. Groups asking for $1,000 $4,000 of funding will require: * Strong potential growth * The potential to impact the regional drive market, and utilization of downtown Durango and/or north Main public/private facilities or venues. * Minimum 60 day lead time before event * An ability to demonstrate a benefit to retail stores and restaurants as well as to lodging * Community, merchant and business support for the special event, as demonstrated by sponsorships, advertising, letters of support. Grants would be awarded following Special Events committee review and recommendation to the Board for final approval. 4. Groups asking for funds up to $1,000 should show: * Strong support to retail shops and restaurants * Strong potential to draw locals as well as residents of neighboring communities for retail and restaurant related activities * Some ability to draw overnight guests * Strong utilization of local artists and musicians * Strong interest from locals to participate. * Grants funds to used for marketing only Grants would be awarded following Special Events committee review and recommendation to the Board for final approval. Accountability A special event follow-up report on the use of District funds is required to be submitted to the BID Board within 45 days of the date(s) of the special event. Review Process Applications will be reviewed in a process, which honors the varying perspectives of Durangoans as well as the Durango Business Improvement District commitment to local input throughout the decision-making process, and results in an array of BID funded projects reflecting the highest standards.

4 Each application will be reviewed by the BID Special Events committee, and recommendations for funding will be made to the BID Board of Directors. The Board will have the final authority on BID grant approvals, terms and conditions. Review Criteria Proposals will address the applicant's response to the Durango BID mission statement and goals. Because the review criteria are deliberately broad, applicants must define for themselves and thoroughly address each of the marketing grant funding criteria in their proposals. The District will review applicants according to the following criteria: Community responsiveness, availability to community, community support to the institution of event, and contribution to the community's education, cultural, and economic goals. First-time applicants will be reviewed on availability to community, and contribution to the community's education, cultural and economic goals. Quality of event and/or programming, First time applicants will be evaluated on the quality of the proposed idea and programming. Management effectiveness, organizational skills, staffing plan, financial health, creative fund-raising techniques, and use of local marketing, media and promotional services. First-time applicants will be evaluated on the management profile and résumé for similar events, and proposed staffing plan and fund-raising techniques. Compliance with all applicable City policies and/or contracts. Application Deadlines Applications must be submitted by the following dates, to be scheduled for consideration: Category 1: March 15, and August 15, 200X. Category 2: January 15, June 1, September 30, November 30, 200X. Category 3: Minimum of 60 days prior to scheduled event. Category 4: Minimum of 30 days prior to scheduled event. Late applications or incomplete applications may not be funded, and are subject to funding available. Applications may be mailed to: Durango Business Improvement District P.O. Box 1405 Durango, Colorado The board may consider funding requests at other times of the year due to special circumstances.

5 Late, incomplete, or faxed applications may not be accepted. Original applications should be mailed to the District or arrangements made to drop of materials to District. First-Time Applicants If you are a first-time applicant, we encourage you to contact Jasper Welch, (XXX) XXX-XXXX, or Bob Kunkel (XXX) XXX-XXXX, for guidance. However, please do so well in advance of the application deadline. Staff advisement does not bind the Board, and the Board reserves the right to determine all BID marketing grant awards. First time events may be eligible for special funding, which is designed to help with administrative costs and startup expenses. If these funds are granted they may be required to be repaid to the BID at the conclusion of the event. Funding Period The funding period is January 1 through December 31 of each year. Approved BID marketing grants or grant amounts not used will expire on Dec 31st of the year approved. Applicants may re-apply during the regular cycle, for the next funding year, provided they meet the BID criteria. Other Conditions Nondiscrimination in grant awards, including statutes prohibiting discrimination on the basis of race, creed, disability, national origin, gender, sexual orientation, age, or marital status. The Board reserves the right to update and modify these criteria, as it deems necessary. Credit/Acknowledgment - grantee agrees that a notice will be included in appropriate announcements and promotional effort stating: "This activity/event is supported by a marketing grant from the Durango Business Improvement District and the Durango Area Tourism Office"