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HomeMy WebLinkAboutTDA Board Meeting May 23 2012 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS May 23, 2012 PRESENT: John Andrews, County Restaurant Jonathan Barfield, Chairman – New Hanover County Commissioners Anne E. Brodsky, Hotel/Motel Owner – Kure Beach David Cignotti, Mayor – Wrightsville Beach Anne Marie Hartman, Hotel – (150+) Wrightsville Beach Kim Hufham, President/CEO – NHC TDA Neal Johnson, NHC Vacation Rental Properties Frank Jones, Hotel – (150-) Wilmington Dean Lambeth, Mayor – Town of Kure Beach Lonnie Lashley, Town of Carolina Beach Carl Marshburn, NHC Attraction Sabina Newman, Greater Wilmington Chamber of Commerce Avril Pinder, Authority Finance Officer Bill Saffo, Mayor – City of Wilmington EXCUSED: Mike Keeler, Chuck Pennington ABSENT: Jimmy Pope 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 Linda Brothers, NHC Finance GUESTS: Emilie Swearinger –Kure Beach Commissioner Jim Hundley – Wilmington Ballpark Coalition Terry Spencer – Port City Baseball Shannon Bowen – Star-News Chairman John Andrews called the meeting of the New Hanover County Tourism Development Authority to order at 5:30 p.m. at Kure Beach Town Hall, Commissioners Board Room. 1 ITEM #1 – EXCUSED Mike Keeler, Chuck Pennington ITEM #2 – MINUTES APPROVAL – MARCH 28, 2012 [Motion made by Sabina Newman, seconded by Anne Brodsky and unanimously carried to approve the March 28, 2012 TDA Board minutes as read.] ITEM #3 – FINANCIALS/ROT REPORT – LINDA BROTHERS Linda Brothers, TDA Financial Analyst, presented the financial report for July 1, 2011 – April 30, 2012 representing 83% of expenditures. She noted the TDA has only spent 66% of what had been budgeted. Staff is doing a good job in keeping expenses down. Rooms Occupancy Tax (ROT) doing very well and above 2007-2008 which was our high year. First 3% (March 2012) shows an increase of 4.59% over last year. Second 3% for beaches for same period of time: Carolina Beach – 21.33% increase; Kure Beach – 19.91% increase; Wrightsville Beach – 20.39% increase. [Motion made by Commissioner Jonathan Barfield, seconded by Frank Jones and unanimously approved to accept the July 1, 2011 – April 30, 2012 financial report as presented.] ITEM #4 – REQUESTS FOR FUNDING (Kure Beach) KIM HUFHAM President/CEO Kim Hufham presented a funding request for the Town of Kure Beach. KURE BEACH: The Town of Kure Beach respectfully requests funding for expenditures that were incurred for the 2011 Kure Beach Fantasy Christmas Show. This annual event provides family entertainment for tourists visiting Kure Beach. Total - $3,300.00. In addition, the Town respectfully requests funding for expenditures incurred for the Pleasure Island Chamber of Commerce Free Summer Concerts held during the summer of 2011 (FY 2011-2012). The six free summer concerts, held at the Fort Fisher Military Recreation Area, attract tourists by providing an enjoyable and affordable entertainment venue. 2 Total requested funding is for $11,300.00. Funds will be available soon and check will be sent for same. [Motion made by Mayor Dean Lambeth, seconded by Carl Marshburn and unanimously accepted to approve funding for the $11,300.00 expenditure requests upon funds being available.] ITEM #5 – BASEBALL STADIUM POSITION DISCUSSION – John Andrews Chairman John Andrews stated that at the March TDA Board meeting, we were asked to come up with a statement on our position on the baseball stadium. Various Board members gathered as many facts as possible in order to make a decision. There are still numerous questions which need answers. In working with the Executive Committee and receiving input from other hospitality partners, Chairman Andrews believes we have come up with a statement that will adequately address our position as a Tourism Board while still answering any concerns that members may have. The statement reads as follows: “The New Hanover County Tourism Development Authority Board of Directors (unanimously) voted to support the efforts to bring minor league baseball to Wilmington. The Board believes the addition of such an attraction would enhance Tourism in New Hanover County. The recent announcement that the ballpark would be constructed and financed privately is a great step in moving the process forward. This approach would help ensure that a private interest, rather than the City and the County, would assume many of the financial risks associated with the project. The New Hanover County Tourism Development Authority encourages both the City Council and the County Commissioners to thoroughly vet proposals that will be submitted by the private development and finance group.” Chairman Andrews noted this is an issue which everyone should have a lot of input in and wants to hear from any Board member wishing to speak on the baseball stadium issue. Mayor Saffo indicated the City would be going through a thorough process. This applies to any economic development issue and must be addressed as any other Board would do. He said this is not only a local issue, but if we reach step two on funding, it also has to go to the local government commission in Raleigh to insure there is enough funding there, etc. There are several hurdles to go through as well as public hearings to be involved. The Mayor said that as the Mayor of the City of Wilmington he would ask that we at least support the process that the City is currently involved in. Chairman John Andrews said that having heard the Mayor’s remarks and having seen the Chamber of Commerce’s position statement on the baseball stadium, the 3 TDA Executive Committee used this as a template to model our position. He said we feel it adequately addresses what we hope to embrace and asked for other remarks from the Board. One member said we should not look at the financial end, but look at what the positive outlook would be. The Chairman read a statement from Chuck Pennington who could not be present. In essence it read that after attending a meeting with City Councilman Kevin O’Grady, Chuck had another meeting with bed and breakfast owners and invited City Councilman O’Grady to answer questions, which he did for approximately two hours. The bed and breakfast owners have decided to accept the concept of the stadium. Still does not feel it would bring business to the B and B’s, and will still cause parking and traffic issues; however, having this attraction will enhance tourism in our area. After further discussion, [Motion made by Frank Jones, seconded by Anne Brodsky and unanimously carried to adopt the baseball stadium’s statement as presented.] ITEM #6 – BUDGET REVIEW – FY 2012-2013 – Kim Hufham President/CEO Kim Hufham presented the FY 2012-2013 budget which has been recommended by the Tourism Development Authority’s Executive Committee. She said it is being presented now to the full Board in detail. The total budget being presented is in he amount of $3,856,253 compared to the previous year’s total budget of $3,443,815. This represents an 11.97% increase over prior fiscal year. Revenues are based on current adjusted year and show a 6.37% increase from the projected FY 2011-2012. First 9 months of current budget is running a 5.81% increase as compared to 9.58% decrease same time last fiscal year. Revenues have shown steady growth over the 12 months and industry indicators continue to remain strong for the upcoming summer season. Both ADR and occupancy are showing positive growth as well over 2011. The first 3% budget shows a 4.8% increase in expenditures. First 3% budget continues to focus on marketing and promotion representing 73% of the budget. Marketing and advertising programs are being based on the strategic direction recommendations working with our agency. 4 1% merit increases have been included. The current frozen Marketing/Database Coordinator position is being unfrozen and will be hired on October 1, 2012 (3/4 of fiscal year budgeted.) SEP contributions to employees have been incrementally placed back to the original 10% level for the fiscal year. Pertaining to Marketing and Promotions: Contracted Services – Passkey (group housing tracking program) has been  added to assist with sports and other groups outside convention room blocks. Brochures and Publications – Visitor’s Guide will again be offset by ad sales.  Guide Map will be printed this fiscal year (every other year cycle.) Advertising:  Shift from print to on-line.  Addition of TV/Billboard – Charlotte Morning Shows.  Reduce Meeting & Convention – Utilizing WCC marketing budget.  Trade Shows – Addition of National Association of Sports Commissions.  Promotions – Additional promotions for FY 12-13.  Research  Governor’s Conference Sponsorship and FAM tour  Cycle NC sponsorship  Iron Man media FAM  American Bus Association sponsorship and FAM tour (in Charlotte in  2013) Postage – Decrease in mailings – allowance for postage increase.  Capital expenditures budgeted for new fiscal year include 5 replacement  PC’s and laptops. Total budget for FY 2012-2013 discussed which showed revenues and expenditures compared to one another: REVENUES: First 3% Room Occupancy Tax (ROT) $1,646,949 Second 3% - ROT – Promotion $ 877,171 Second 3% - ROT – Activity $ 987,394 City of Wilmington – Convention Center $ 294,739 Appropriated Fund Balance $ 50,000 Total Revenues $3,856,253 EXPENSES: Marketing and Promotion $1,247,049 Visitor/Inquiry Fulfillment $ 125,338 Convention Center Marketing $ 294,739 Administration $ 324,562 Tourism Activities $1,864,565 Total Revenues $3,856,253 5 Chairman Barfield inquired if we had been contacted reference a 5-K race for breast cancer to be held here in March next year and will attract over 4,000 people. We have not but will definitely look into it. Kim did a breakdown of the first 3% budgeted items. 19% of the dollars allocated ($324,562) goes to Administrative; 7%to VIC ($125,338) and 74% ($1,247,049) to Marketing and Promotions. In each of these areas, Kim indicated where dollars are being spent. President Hufham reviewed the beach accounts (2nd 3%) as well as convention center marketing. Kim said that in convention center marketing, we work closely with the Wilmington Convention Center on what shows each of us does individually as well as cooperatively along with advertising aspects, etc. After some further discussion, Kim advised that a public hearing notice to advertise the budget would be placed in the Wilmington Star News prior to our meeting on th June 27, at which time we will formally adopt the budget for FY 2012-2013. This will be a very short meeting and will begin at 5:30 p.m. here at the Bureau offices. [Motion made by Frank Jones, seconded by Sabina Newman and unanimously agreed to accept the budget to be formally adopted at the June 27, 2012 TDA Board meeting.] ITEM #7 – PRESIDENT’S COMMENTS – Kim Hufham  President Hufham advised we had participated in the National Tourism Week’s annual event and as part of this participation, we attend National Tourism Day in Raleigh (was held last Tuesday and Wednesday). As part of the Raleigh trip, we had an industry dinner to discuss some of the legislative issues affecting tourism. Kim indicated she had gone by the legislative offices, but learned it was opening day of the new session. She left her card. etc. Had a reception for the legislators so did get to meet them and have some discussions.  One of the things needing discussion at this time is Senate Bill 795. It is called Excellent Public Schools Act and part 5 of this Bill deals with adjustments to the school calendar start and end dates which we know have been a big issue with us through “Save Our Summers.” Two of the co- sponsors for Bill 795 are Senator Thom Goolsby of New Hanover County and Senator Bill Rabon of Brunswick County and New Hanover County. Here are our two legislators, with tourism being a big thing, supporting a bill which deals with adjustments to the school calendar. Kim said she spoke with tourism lobbyist, T. Jerry Williams this week. He says right now the bill is in the Senate Committee. He has spoken with Senator Apodaca who is the one sponsoring this bill. Senators Berger, Apodaca and Tillman all 6 involved in the sponsorship. Senator Apodaca feels there will be an amendment to the bill. Right now the way the bill reads and how it affects the school calendar is school cannot start before August 25 and has to end by June 10. The new bill says that the opening date for students shall not be before the next to the last Monday in August and the closing date shall not be after the second Friday in June. What this in effect does is some years school thth could open as early as the 16 of August and could push closing to June 13, again cutting more into summer time. T.Jerry seems to think the amendment will be filed and what they are hoping for in the amendment is th that it will actually state the week of the 28 of August. Amendment will be released this Friday and on the following Tuesday the Senate Committee on this Bill will have a two-hour meeting. Realtors Association will have some time at this meeting to speak on behalf of the whole industry to include tourism. Kim said that T. Jerry encourages us to write our legislators, especially Senators Goolsby and Rabon. (Kim passed out some information on the Bill, a copy of which is located in our Exhibit Book X.)) Kim asked for guidance from the Board on putting together a letter on behalf of the TDA that we would like to see the school start date stay as is. Kim noted that our Chairman John Andrews has already drafted a letter on his personal behalf and mentioned the TDA in same. John made further comments on the Bill and the affect it would have on tourism. Other Board members spoke, too, on the sales tax base created by tourism, etc. Following these discussions, [Motion made by Frank Jones, seconded by Anne Brodsky and unanimously approved to draft a letter on Bill 795 to leave the school dates as they presently are.] th  Kim reminded the Board that at our August 29, 2012 TDA Board meeting, the annual Marketing Plan will be presented which will bring the FY 2012- 2013 budget to life. Frank Jones inquired about individual hour and apartment rentals paying ROT. Is this being monitored to make sure this is being done? Avril Pinder indicated the Finance Department is looking at again hiring an auditor to check out individual properties doing daily rentals. As before, the auditing firm is not paid unless they have confirmed properties not paying. There will be more developing on this issue. ITEM #8 – PUBLIC COMMENT ITEM #9 – CHAIRMAN’S COMMENTS – John Andrews Jim Hundley, Chairman of the Ballpark Coalition, definitely wants to see baseball come to Wilmington. Although he had planned to speak on the subject, since the 7 TDA Board has voted on a statement, he wanted to thank them for doing so and for their time to let him speak. He did indicate he wants to see the County become involved. There being no further business, meeting adjourned at 6:30 p.m. ______________________________ __________________________ Kim Hufham, President/CEO Jeanette Foster, Recording Secretary Minutes located in TDA Board Minutes Book X 8