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Home My WebLink About03-24-2009 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS MARCH 24, 2009 John Andrews, County Restaurant PRESENT: Chris Green, Hotel - +150 Wilmington Anne Marie Hartman, Hotel – 150+ Wrightsville Beach Kim Hufham, President/CEO – NHC TDA Frank Jones, Hotel – (-)150 Wilmington Joel Macon, Mayor – Carolina Beach Bob McKoy, NH County Vacation Rentals Mac Montgomery, Mayor – Kure Beach Chuck Pennington, County Bed and Breakfast Avril Pinder, NHC Authority Finance Officer Jimmy Pope, Hotel – Carolina Beach Steve Whalen, Mayor – Wrightsville Beach EXCUSED: Bill Caster, NHC Commissioners Scott Cromartie, Wilmington Chamber of Commerce Donna Moffitt, County Attraction Ronnie Pernell, Hotel – Kure Beach Bill Saffo, Mayor – City of Wilmington STAFF: Jeanette Foster, Administrative Services Manager/Recording Secretary Lee Nettles, Vice-President of Marketing Mikie Wall, Vice-President Sales and Services Connie Nelson, Communications/Public Relations Director Sheila Boyd, NHC Finance GUESTS: Mary MacNaughton – Lumina News Sterling Cheatham, Manager – City of Wilmington Steve Bridges – City of Wilmington Jennifer Watson – Kure Beach Vice-Chairman Jimmy Pope called the meeting of the New Hanover County Tourism Development Authority Board to order at 5:30 p.m. at The Verandas Bed and Breakfast. 1 ITEM #1 – EXCUSED ABSENCES Commissioner Bill Caster, Donna Moffitt, Mayor Bill Saffo, Scott Cromartie, Ronnie Pernell. ITEM #2 – MINUTES APPROVAL – JANUARY 27, 2009 [Motion made by John Andrews, seconded by Chris Green and unanimously carried that the minutes of January 27, 2009 be approved as read.] ITEM #3 – CONVNETION CENTER UPDATE – STERLING CHEATHAM AND STEVE BRIDGES City Manager Sterling Cheatham introduced Steve Bridges, Project Manager for the Convention Center, to give an update. 95% of the foundation is up. Contractor is a little behind, but this is due to correcting problems with contaminated soil and water. Exhibit hall has begun. Parking deck about 25% finished. Looking at May, 2010 for opening, but this does not include additional meeting space. Have authorized architects to do drawings for the additional meeting space. Additional meeting space would give a total of 8 breakout rooms. Hope to bring before the City Council in May. Have authorized HVAC system which is a very efficient system. Steve discussed his confidence in the CVB staff and SMG in the marketing efforts of the convention center. He advised that the tag line and logo are finalized and in the process of building a web page. Steve noted that a lot of calls are coming in for booking, but nothing being taken until we have a very clear date for opening which will be clear mid- summer of this year. He also advised that Kim and her staff along with SMG working closely on the booking efforts. Looking at having a General Manager on staff by mid-summer with offices temporarily being located at the Chamber of Commerce. Land deal for the hotel to be closed tomorrow at 1:00 p.m. Plans call for the hotel to begin construction late summer and will still be the Hotel Indigo which will consist of 157 rooms. Other general areas discussed improvements with water, sewer, lights (including but not limited to Harnett and Hanover Streets, etc.) Riverwalk in front of the convention center is 95% complete. 2 ITEM #4 – FINANCIALS AND ROT REPORT – AVRIL PINDER Avril Pinder presented current financials; have completed 66% of the current fiscal year. We are in line with spending. It was noted that revenues are down. She and Kim met and determined that they needed to reduce expenses to match projected revenues. Budget amendment being brought before the Board this evening will reduce expenses by $116,748. Kim advised that in doing the cuts, funding was not cut in the marketing dollars portion of the budget. Avril asked that the Board review the New Hanover County Tourism Development Authority Budget Amendment – BA#09-002 and adopt as outlined to reduce expenses to match projected revenues by $116,748. [Motion made by Mayor Steve Whalen, seconded by Jimmy Pope and unanimously carried to adopt the Budget Amendment BA#09-002 to reduce expenses to match projected revenues by $116,748.] ITEM #5 – FUNDING REQUESTS – CAROLINA AND WRIGHTSVILLE BEACHES CAROLINA BEACH: President/CEO Kim Hufham presented the following requests from Carolina Beach totaling an amount of $28,620.16 with funds being available: The Town of Carolina Beach respectfully request TDA funds in the amount of $27,013.20 for lifeguards and benefits for the period of 8/22-12/31/08. [Motion made by Mayor Mac Montgomery, seconded by Mayor Steve Whalen and unanimously approved the funding request of $27,013.20 for lifeguards and benefits for the period of 8/22-12/31/08.] The Town of Carolina Beach respectfully request TDA funds in the amount of $1,606.96 to cover hours worked by town employees at the Town’s annual Christmas Parade (December 5, 2008.) [Motion made by Mayor Mac Montgomery, seconded by Jimmy Pope to approve the funding request in the amount of $1,606.96 to cover hours worked by town employees at the annual Christmas Parade on December 5, 2008.] After some discussion on whether this event brings in tourists or just locals; whether it puts “heads in beds” and extends the season, etc., 3 Vice Chairman Jimmy Pope asked for a vote. Vote to approve the funding was unanimous. WRIGHTSVILLE BEACH: President/CEO Kim Hufham presented the following requests from Wrightsville Beach totaling an amount of $393,857 with funds being available: The Town of Wrightsville Beach respectfully request funds in the amount of $13,800 to support their Beach Patrol Officer function during the FY 2008-2009 municipal budget cycle (7/1/08-6/30/09.) [Motion made by Chris Green, seconded by Mayor Joel Macon and unanimously approved the funding request of $13,800 to support Wrightsville Beach’s Beach Patrol Officer function during the FY 2008-2009 municipal budget cycle (7/1/08-6/30/09.] The Town of Wrightsville Beach respectfully request funds in the amount of $28,800 to help support increasing demands on the Town’s efforts to provide clean public restrooms, public parking areas and beaches for visitors. The request includes a portion of the personnel costs for a full-time employee, support equipment, fuel and uniforms. Request covers the period of July 1, 2008 – June 30, 2009. [Motion made by Mayor Joel Macon, seconded by John Andrews and unanimously approved the funding request in the amount of $28,800 to help support increasing demands on the Town’s efforts to provide clean public restrooms, public parking areas and beaches for visitors. The request includes a portion of the personnel costs for a full-time employee, support equipment, fuel and uniforms. Covers the period of July 1, 2008 – June 30, 2009.] The Town of Wrightsville Beach respectfully request funds in the amount of $351,257 be favorably considered to support the Town’s Ocean Rescue Program (Beach Strand Life Guards) during the FY 2008-2009 municipal budget cycle (7/1/08 – 6/30/09.) This service provides comprehensive ocean rescue coverage for nearly four miles of beach strand and expanded manning for thirteen lifeguard stations as well as mobile coverage. The sum includes salary and associated operational costs for the WBORP ($292,498 , plus the salary for the Ocean Rescue Coordinator and Director of $58,759.) [Motion made by Mayor Joe Macon, seconded by Jimmy Pope to approve the funding request in the amount of $351,257 be favorably considered to support the Town’s Ocean Rescue Program during the FY 2008-2009 municipal budget cycle (7/1/08 – 6/30/09.] 4 Vote was unanimous to approve the Town’s Ocean Rescue Program funding. ITEM #6– RAIL SERVICE RESOLUTION – MAYOR MAC MONTGOMERY Mayor Mac Montgomery presented a resolution to the New Hanover County Tourism Development Authority Board for their support for future passenger rail service between Wilmington and Raleigh. It was noted that the NC Department of Transportation and the City of Wilmington have recently purchased properties between North Third Street, North Fourth Street, Hanover Street and Red Cross Street for the future site of the Wilmington Multi-modal Transportation Center. Mayor Montgomery advised that the City of Wilmington has taken an active role and he asked that the TDA, through the resolution, encourage the North Carolina General Assembly and Congress to continue their support for future rail service between Wilmington and Raleigh and to also encourage the North Carolina General Assembly and Congress to provide funding to ensure this rail service becomes a reality. [Motion made by Bob McKoy, seconded by Mayor Steve Whalen and unanimously approved for the New Hanover County Tourism Development Authority Board to adopt the Resolution at their March 24, 2009 Board meeting to restore passenger rail service to Wilmington. ITEM #7– PRESIDENT’S COMMENTS – KIM HUFHAM Running around 6% down for Fiscal Year to date. Staying in touch with other counties to see how they are doing. Brunswick County is down approximately the same as New Hanover County. Hoping the spring months will bring in more tourists. On the marketing side, everyone should have received a memo in February reference what we are trying to do such as radio advertising program in the Triangle for the month of March and other new things to try and increase traffic as well. We are continuing to track our numbers and keep a close watch on that. Inquiries continue to be up. On sales side, we have started convention center marketing. We are currently working on a couple of bids, although we are not the “bookers” for 2011 and 2012 and would like to thank Chris (Hilton) for his help with this in conjunction to using not only the convention center but his property as well. Have done a couple of shows on behalf of the convention center. Mikie attended Destination Showcase in Washington, DC and co-hosted the AENC luncheon back in February. Kim also noted we have exciting things going on not only to promote the convention center but promoting the whole area as well. 5 Kim passed out the collateral piece we currently have on the convention center. Other areas with the convention center include working on the web site, SMG having their General Manger in place by July 1. We hope to have our sales person hired sometime in May. On Legislative side, the “Save Our Summers” issue is coming back up. There have already been a couple of bills filed in the General Assembly trying to change the date back to the first of August. We are going to need to rally around this and do what we can. On a National level, we are seeing a decline in meetings. There is a lot of negativity right now about people traveling. This is hurting our industry and Kim has a meeting on Thursday with Mayor Saffo and Molly with the Hilton to discuss some positive publicity about the meetings market; that it is OK to travel and have meetings. Some State associations have cut their budgets. Kim said that in an article she was reading, Las Vegas has lost over 340 events in the last ninety days. Budget will be presented in May. May 9-17 is National Tourism Week. We will be doing a resolution, etc., on this. ITEM #8 – OLD BUSINESS/NEW BUSINESS Mayor Mac Montgomery wanted to discuss an issue that is affecting the residential housing market. One of the issues (brought samples of letters) is the concern about the approved 2009 insurance rate adjustments to the North Carolina Beach Plan and Homeowners Policies. Rate adjustments not uniform throughout the state. Mac says this is not equitable based on history of storms and damage. It doesn’t matter whether you are a bed and breakfast or a residential area or a property. Mac indicated that Kure Beach has written a letter to every property owner of record on Kure Beach, regardless of where they live, and asked them to contact their State Senator and State Representative asking them to support a stay of increases. Mac indicated he is getting calls from different areas of the state from property owners who are contacting their State Senators stating their concerns. It is beginning to get some positive action. Mac said that with these increases, we would eventually have to increase our rates. It is time for the legislators to take a look at these insurance increases. They have the authority to do this. Mac said what he had handed out to everyone was an example of some of the things the Kure Beach Town Council is trying to do. He indicated the other beach towns as well as the City of Wilmington and New Hanover County have also been vocal on this. Mac also wanted the Board to know the Town of Kure Beach bought the Rolling Surf Motel last year. Kure Beach has received 2.5 million dollars in grants for acquisition, another $200,000 in grants for development, another $1,750,000 in grants in process right now for an ocean front park to draw people to the beach. No 6 tourism dollars are needed. This is a positive outlook for the future to draw more tourists to the area. ITEM #9 – CHAIRMAN’S COMMENTS – JIMMY POPE (Vice-Chairman) Vice Chairman Jimmy Pope presented the Slate of Officers which the Executive Committee is recommending to the Board for election for 2009. Chairman – Ronnie Pernell Vice-Chairman – Bob McKoy Secretary – Bill Caster There being no nominations from the floor, [Motion made by Chris Green, seconded by Mayor Steve Whalen and unanimously approved to accept the Slate of Officers for 2009 as recommended by the Executive Committee.] President/CEO Kim Hufham reminded everyone that the next Board meeting will th be held on Tuesday, May 26, 2009 and the FY 2009-2010 budget will be presented at that time. Thanked Chuck for having us again and thanked Dennis for the wonderful meal which he prepared. There being no further business, meeting adjourned at 6:30 p.m. ______________________________ __________________________ Kim Hufham, President/CEO Bill Caster, Secretary 7 8