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Home My WebLink About01-27-2010 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS JANUARY 27, 2010 John Andrews, County Restaurant PRESENT: Bill Caster, NHC Commissioner David Cignotti, Mayor – Wrightsville Beach Scott Cromartie, Wilmington Chamber of Commerce Brett Darlington, Hotel – Carolina Beach Kim Hufham, President/CEO – NHC TDA Frank Jones, Hotel – (-)150 Wilmington Dean Lambeth, Mayor – Kure Beach Bob McKoy, NH County Vacation Rentals Donna Moffitt, County Attraction Chuck Pennington, County Bed and Breakfast Ronnie Pernell, Hotel – Kure Beach Avril Pinder, NHC Authority Finance Officer Bill Saffo, Mayor – City of Wilmington EXCUSED: Anne Marie Hartman, Hotel – Wrightsville Beach Joel Macon, Mayor – Carolina Beach STAFF: Jeanette Foster, Administrative Services Manager/Recording Secretary Shawn Braden, Executive Vice-President of Marketing Mikie Wall, Vice-President Sales and Services Connie Nelson, PR/Communications Director Sheila Boyd, NHC Finance GUESTS: Claire Simms – WECT-TV Sheila Schult – New Hanover County Clerk to Commissioners Bruce Shell – New Hanover County Manager Josh Spilker – Greater Wilmington Business Journal Bobby Greer – New Hanover County Commissioner Chris Coudritct – New Hanover County Andre’ Mallette – New Hanover County Wanda Copley – New Hanover County Attorney Brian Freskos – Lumina News Ted Davis – New Hanover County Commissioner Jason Thompson – New Hanover County Commissioner Jonathan Barfield – New Hanover County Commissioner 1 Chairman Ronnie Pernell called the meeting of the New Hanover County Tourism Development Authority Board to order at 5:40 p.m. in Room A of the Coast Line Convention Center. Introductions were made by all in attendance. ITEM #1 – EXCUSED ABSENCES Anne Marie Hartman, Mayor Joel Macon excused. ITEM #2 – MINUTES APPROVAL – OCTOBER 28, 2009 [Motion made by Frank Jones, seconded by John Andrews and unanimously carried that the minutes of October 28, 2009 be approved as read.] ITEM #3 – FINANCIALS AND ROT REPORT – AVRIL PINDER Because of a special presentation to our guests (Commissioners of New Hanover County) and other special guests, financials and ROT report were disseminated to our Board. Avril Pinder noted that anyone having questions on the reports could call her or Kim. ITEM #4– BUDGET AMENDMENT – AVRIL PINDER Avril Pinder advised that Budget Amendment BA#2010-001 was needed to amend the budget ordinance for FY ending 6/30/2010 for the beaches and the convention center: Beaches – To allocate fund balance to meet the established amounts for Promotion th Fund Balance of 25%. At June 30, 2009, remaining fund balance was less than the limit. This amendment reduces the current year promotion expenditures in order to increase the balance to the established levels. Wrightsville Beach will go to 8% and then incrementally increase to the 25% level through the annual budget process. Original - $702,770; amendment – ($19,786); new budget - $682,984. In addition, to appropriate the available fund balances as outlined in the FY 08-09 Annual Audit nd from remaining funds of the 2 3% ROT for Tourism Activities at Carolina, Kure and Wrightsville Beaches. Original - $787,103; amendment $851,592; new budget - $1,638,695. Convention Center – To appropriate remaining funding received FY 08-09 from the City of Wilmington for Convention Center Marketing. Original – 0; amendment - $92,417; new budget - $92,417. 2 [Motion made by Chuck Pennington, seconded by Bill Caster and unanimously approved that Budget Amendment 2010-001, amending the annual budget ordinance for the fiscal year ending June 30, 2010 be hereby adopted.] ITEM #5 – PRESENTATION TO COUNTY COMMISSIONERS – KIM HUFHAM Synopsis of Kim Hufham’s presentation to the County Commissioners: Impact of Tourism on New Hanover County for 2008 generated an economic impact of $422 million (-0.8% decrease from 2007.) New Hanover County ranks number 8 among the state’s 100 counties and #2 among coastal NC counties. Tax relief of $196.16 per NHC resident. Tourism brings in 5,510 job with $99.17 million in payroll. ROT receipts grown 43% over the previous 5 years before the recession hit in 2008. New Hanover County Tourism Development Authority d/b/a as the Wilmington/Cape Fear Coast Convention & Visitors Bureau is the official destination marketing organization for the Cape Fear Coast encompassing Historic Wilmington, Carolina, Kure and Wrightsville Beaches. Legislative History: 1986 legislation enacted to levy a 3% room occupancy tax. Cape Fear Coast CVB was formed as the tourism marketing entity for New Hanover County. The New Hanover County Tourism Development Authority established in 2003 by legislation enacted to enable an additional 3% ROT for promotions/activities for the beaches; City of Wilmington for the Convention Center. ROT Distribution for 2008/2009: 29% for beach erosion; 18% Tourism- CVB; 8% for Carolina Beach Marketing/Activities; 3% for Kure Beach Marketing/Activities; 12% for Wrightsville Beach Marketing/Activities; 30% Wilmington Convention Center. Primary role of the Wilmington/Cape Fear Coast Convention & Visitors Bureau is to tell the Cape Fear Story, inform, educate, advise the visitor. st The Wilmington/Cape Fear Coast CVB is funded by a percentage of the 1 3% ROT collections. The fiscal year 2009-2010 operating budget is 1.66 nd million. An additional $1.48 million from the 2 3% ROT collections is for the beach municipalities. The 3 main target audiences is leisure/consumer, meeting/convention groups, group tour/motorcoach. Budget Highlights: In the first 3% budget, the CVB continues to focus on marketing and promotion representing 75% of the budget. No advertising programs have been cut. There is no increase in revenues planned for FY 3 2009-2010 and expenditures have been decreased 6% from the previous adjusted year budget. In addition, salaries and benefits have decreased 2.72% over previous year. There are no salary increases for 09/10. Revenues, expenses and salaries/benefits were discussed. Convention Center Marketing: Briefly discussed all aspects of convention center marketing’s budget to include salaries/benefits, tradeshows, travels, promotions, rent, office supplies, telephone, postage, etc. nd 2 3% Budgets: Promotions and activities budgeted funds for Carolina, Kure and Wrightsville Beaches reviewed. Goals/New Programs: Want to increase inquiries by 10%; expand social media efforts (Facebook and Twitter;) introduce a blog on W/CFC site; introduce and market “Sunny Savers” program; negotiate package deal w/ VisitNC, including web, print and online advertising and video production, etc. Visitor inquiries for 08/09 and 09/10 reviewed to include Visitor Centers, telephone, written advertising, trackable web and trackable VG. Total inquiries up 21.58% year to date. Area attraction attendance is up 12.87% year to date. Group Sales and Services’ comparisons done for 08/09 and year to date for 09/10 as well as communications and public relations activities. stnd ROT receipts for 1 and 2 3%’s reviewed as well as the Smith Travel Research. President/CEO asked “Where Are We Going?” She said it is our goal to expand and transition from a promotional organization providing information and marketing/advertising to a development organization developing and selling product and being accountable for delivering incremental business during need times and to move from destination marketing to destination management foundation and infrastructure. ITEM #6 – PRESIDENT’S COMMENTS – KIM HUFHAM No other required following presentation. 4 ITEM #7 – OLD BUSINESS/NEW BUSINESS Commissioner Bill Caster commented on the Beach to Battleship which took place in early November, 2009. He noted that this one day event generated an economic impact of two million dollars for New Hanover County. Chairman Pernell stated that all sporting events are good for business. President/CEO Kim Hufham advised there is so much potential to having sporting events here and we are currently working with Cape Fear Soccer and their tournaments. An inquiry conversion study of Wrightsville Beach, partnering with the Wrightsville Beach Chamber is in process. It was also noted that a visitor profile study was done last year by Carolina Beach. ITEM #8 – CHAIRMAN’S COMMENTS – RONNIE PERNELL Chairman Pernell welcomed new Board members Mayor David Cignotti from Wrightsville Beach, Mayor Dean Lambeth from Kure Beach and Brett Darlington, representing hotels from Carolina Beach. Next meeting will be held on Wednesday, March 24, 2010. [Motion made to adjourn at 6:30 p.m.] ______________________________ __________________________ Kim Hufham, President/CEO Bill Caster, Secretary 5