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HomeMy WebLinkAbout11-19-2010 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY SPECIAL CALLED MEETING BOARD OF DIRECTORS NOVEMBER 19, 2010 PRESENT: Bill Caster, New Hanover County Commissioner David Cignotti, Mayor Wrightsville Beach Scott Cromartie Greater Wilmington Chamber of Commerce Kim Hufham, President/CEO NHC TDA Frank Jones, Hotel (-)150 Wilmington Mike Keeler, Hotel 150 (+) Wilmington Dean Lambeth, Mayor Kure Beach Joel Macon, Mayor Carolina Beach Carl Marshburn, County Attraction Bob McKoy, NH County Vacation Rentals Chuck Pennington, County Bed and Breakfast Ronnie Pernell, Hotel Kure Beach Bill Saffo, Mayor City of Wilmington EXCUSED: John Andrews, Avril Pinder, Anne Marie Hartman ABSENT: STAFF: Jeanette Foster, Administrative Services Manager/Recording Secretary Mikie Wall, Vice-President Sales and Services Connie Nelson, PR/Communications Director Sheila Boyd, NHC Finance GUESTS: Patricia Matson, Lumina News Chairman Bob McKoy brought the Special Called Meeting of the New Hanover County Tourism Development Authority to order at 8:30 a.m. at the SMG offices, 505 Nutt Street. A tour of the proposed new offices for the Wilmington/Cape Fear Coast CVB was given to the TDA Board members by President/CEO Kim Hufham. The space is located in the warehouse building across the parking lot from the Coast Line Event Center and in front of the Chamber of Commerce. 1 Kim noted the CVB Relocation and Moving Costs had been sent to the Board prior Currently have 3,481 square feet of office space. Total annual rent is $33,681. New space would offer: 5,134 square feet of space (increase of 1,653 square feet.) Additional storage space. Visitor parking adjacent to the building (nothing available at current location.) Flexible space with room for expansion. Total amount of rent would be $50,974 and includes monthly utilities. For the remainder of this Fiscal Year (through June 30, 2011), the City would honor our current monthly rental rate. We would anticipate moving in the new space no later than February 1, 2011. Moving expenses total estimate - $11,861.00 Total square footage for the new space would come to approximately $.30 more per square foot than presently paying. The City of Wilmington is looking at a 5 year lease, starting July 1, 2011. They have agreed on our keeping our current rent amount through the end of this Fiscal Year (through June 30, 2011.) All of this is contingent proceed. Kim went over some of the areas included in the estimated moving costs. In contingency in case we run into something we are not foreseeing. The total amount we would ask to be appropriated out of fund balance would be $13,000. Following this appropriation, we would still have $186,047.00 in fund balance. A synopsis of questions/comments from Board members: What would the escalation be over the next five years? Kim advised the City estimates 3-4% with the biggest escalation being utilities. Is there any type of opt-out clause? Mayor Saffo indicated we could certainly go back to the City with any concerns. higher rent, etc. It was noted that we will still have the same rental base as we presently have through this Fiscal Year. Also, we will only be paying $10 more per square foot when so many others in the City/County are paying twice that amount. Kim checked with WDI and currently downtown spaces are going for $11-$13 per square foot plus utilities. 2 This location is going to really outweigh the difference in rent, etc. We will be in the hub where tourism is going to be entering our area through the Convention Center. Will be able to showcase the beaches which we have not been able to do. One thing we have wanted all along is to have a permanent presence at the convention center. We were looking at some sort of kiosk which would have given us presence, but not really what we wanted. What this will give us is that presence right here in the middle, especially after the hotel is built. There will be such an influx of people in this area that they are going to need a place like the CVB to find out what to do in Wilmington and the surrounding beaches. This is an absolute gift for tourism. Will not happen overnight, but as the economy rebounds, the influx of tourists is going to steadily increase. Other discussions on what space costs in town. Can go for as much as $25 a square foot. Kim advised if we do not move forward with this space, the City will move forward with finding someone else. They came to us first and the only thing [Scott Cromartie said he has all the confidence in Kim to do the best job possible on the move and wanted to make a motion, seconded by Carl nt location to the SMG offices location and in the same motion approve the budget amendment for the move of $13,000.] nd Beach towns wanted to be assured that no funds would come from the 2 3% budgeted funds to assist with the move, rent, etc. Kim assured them that only monies affected include the first 3% ROT funds and some convention center funds for their portion of the space they will occupy. Beaches also concerned about being promoted properly. Kim assured them again there will be more space for promoting beach property, showcasing different venues. This brought up the fact that each community definitely compliments each other. Question asked about signage and Kim said the City will be working on signage for the Convention Center and we will be able to be included as well. Kim hopes, if City Council approves the figures as presented, to make a move in January or February. Chairman McKoy asked for approval of the motion which had been put before the Board. Unanimous approval given. [Motion made by Bill Caster, seconded by Frank Jones and unanimously approved to adjourn.] Adjournment at 9:15 a.m. 3 ______________________________ __________________________ Kim Hufham, President/CEO Jeanette Foster, Recording Secretary Minutes located in TDA Board Minutes Book IX 4