HomeMy WebLinkAboutTDA Board Meeting March 30 2016NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
March 30, 2016
PRESENT: Jonathan Barfield, NHC Commissioner
Bill Blair, Mayor — Wrightsville Beach
Anne Brodsky, Hotel — Kure Beach
Kim Hufham, President/CEO — NHC TDA
Frank Jones, Hotel — (150-) Wilmington
Connie Majure-Rhett — Greater Wilmington Area C of C
Carl Marshburn, NHC Attraction
Nicolas Montoya, Hotel — (150+) Wrightsville Beach
Chuck Pennington — County Bed and Breakfast
LeAnn Pierce, Hotel — Carolina Beach
Emilie Swearingen, Mayor — Town of Kure Beach
Bill Saffo, Mayor — City of Wilmington
Dan Wilcox, Mayor — Carolina Beach
EXCUSED: Angela Rhodes, County Restaurant; Lisa Wurtzbacher,
Authority Finance Officer
STAFF: Jeanette Foster, Administrative Services Manager/Recording
Secretary
Karla Thompson, Technology/Systems Manager
Shawn Braden, Executive VP of Marketing
Linda Brothers, Financial Analyst, New Hanover County
John Sneed, VP of Sales and Services
Connie Nelson, Communications/PR Director
VISITORS: Craig Bloszinsky, Town of Kure Beach
Natalie Perkins, Eleanor Talley, Tom Hickey (Clean Design)
Chairman Frank Jones called the meeting of the New Hanover County Tourism
Development Authority Board of Directors to order at 5:35 p.m. at the Homewood
Suites Hilton/Wilmington Mayfaire.
ITEM #1— EXCUSED
Lisa Wurtzbacher, Angela Rhodes
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ITEM #2 — APPROVAL OF BOARD MINUTES — JANUARY 27, 2016
[Motion made by Anne Brodsky, seconded by Chuck Pennington and
unanimously accepted to approve the January 27, 2016 Board minutes as
read.]
ITEM #3 — FINANCIALS/ROT REPORT — LINDA BROTHERS
Linda Brothers, NHC Financial Analyst, presented the TDA Financial Reports for
July 1, 2015 — February 29, 2016.
July, 2015 — February 2016 of revenues show actual amount of $1,061.716 for first
3%; room occupancy tax shows actual amount in revenue for 211 3% of $1,585,280.
ROT Collections:
1st 3% for July, 2015 — January, 2016 compared to last Fiscal Year: 4.30% increase;
based on Calendar Year (January, 2016 ) — 17.75% increase
2Na 3% based on Fiscal Year of July, 2015 — January 2016 and Calendar Year —
January, 2016;
Carolina Beach: 4.45% increase FY; 30.29% increase CY
Kure Beach: 14.34% increase FY; 69.70% CY
Wrightsville Beach: 2.19 increase FY; 9.84% CY
2"d 3% collections compared to last Fiscal Year of July, 2015 — January, 2016 and
Calendar Year, 2016 for City of Wilmington, Convention Center and District U:
City of Wilmington: 2.42%; increase FY; 19.90% increase CY
Convention Center: 7.57% increase FY; 4.59% increase CY
District U: increase of 3.38% FY; 30.20% increase CY
ITEM #4 — TOURISM RELATED EXPENDITURE REQUESTS — KIM HUFHAM
President/CEO Kim Hufham advised we had received funding requests from the
Towns of Carolina and Kure Beaches for consideration at our March 30, 2016 TDA
Board Meeting.
The Town of Carolina Beach respectfully requests TDA funds in the amount of
$154,788.82 for expenses incurred for Ocean Rescue/Life Guard Expenses for the
period of April 1 — June 30, 2015. Total expenses include salaries and benefits.
Lifeguards are on duty 7 days a week during the tourist season.
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The Town of Carolina beach respectfully requests funds in the amount of $13,638
for the Boardwalk Makeover (now known as the Carolina Beach Downtown
Initiative for family entertainment during the period of July 2015 — December 2015.
This includes family night music and magic shows on Tuesday nights and music for
Thursday family nights.
Total amount requested is $168,246.97 and funds are available.
[Motion made by Mayor Bill Saffo, seconded by Mayor Emilie Swearingen
and unanimously accepted to approve Tourism Related Expenditure
funding requests in the amount of $168,246.97.]
The Town of Kure Beach respectfully requests funding for expenditures for
lifeguard services for the summer of 2015. The requested funds include
expenditures for two budget years (2014-15 and 2015-16.) The expenses to be
reimbursed are calculated as follows:
Total Lifeguard expenses incurred FY 2014-2015 $196,991.50
Less Lifeguard expenses included on 1/20/15
TDA request $ 98,979.82
$ 98,011.68
FY 2915/2016 Lifeguard Expense incurred from
7/1/15-12/31/15 $102,280.47
Amount of this request $200,292.15
This program is directly related to tourism to protect vacationers and visitors as
they swim and enjoy the beach strand. Visitors are attracted to areas offering
lifeguard services especially those with young children and older adults.
Total funds are available in the amount of $200,292.15
[Motion made by Mayor Bill Saffo, seconded by Connie Majure-Rhett and
unanimously accepted to approve Tourism Related Expenditure funding
requests in the amount of $200,292.15.]
ITEM #5 — MARKETING PRESENTATION — KIM HUFHAM/CLEAN DESIGN
President/CEO Kim Hufham introduced the presentation to be given on the co-op
advertising proposal ideas that had been presented to the MAC committees during
their 16/17 strategic planning process. Kim said we wanted to bring it tonight to the
TDA Board for informational purposes only. This is not being presented for any
type of action by the TDA Board. The CVB had met with Clean Design, who is
here tonight and will be doing the presentation, to look at FY 15/16 in review and
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any new opportunities and as well as visitation threats that we might be facing in
New Hanover County. In FY 14-15, we broke ROT collections records again and
are on track now for 15-16 to do the same. While this is something we want to
celebrate and are very proud of, we do know that while we are number 8 in visitor
spending in the state, we are number 14 when you actually look at the ROT
percentage occupancy increases. This was the scenario that we presented to Clean
Design and challenged them for possible new ideas. Told them things are going well
as they are, but what are some possible ideas that could be considered for future
that might help us to push the bar on occupancy tax collections. Wanted to gage
how the MAC committees felt about the co-op marketing proposal.
Natalie Perkins, Eleanor Talley and Tom Hickey of Clean Design presented the
TDA with the co-op marketing proposal that had been presented to each beach town
MAC committee as well as the Kure Beach Town Council.
(The Clean Design Presentation is attached as well as can be found in our Exhibit
Book XII.)
Some of the major comments and discussions reference the presentation which took
place include:
Mayor Swearingen of Kure Beach indicated they had been told many times this was
for print media, that money is being taken out of print media. Says she is now
hearing we are going to focus on media that will drive the campaign. Clean Design
indicated that the media would be to drive awareness in which they would include
print, billboards and video.
Question was asked about first 3% breakdown. Kim indicated that currently on 1It
3%, Carolina Beach contributes 17%, Kure Beach 8%, Wrightsville Beach 22%,
District U 4% and City of Wilmington 49%.
Mayor Swearingen was not aware of these figures. Also indicated she had been
given misinformation which Kim indicated had not come from the CVB. In
addition, the Mayor discussed ad presentations from Clean Design which did not
depict the beach itself and was under the impression that if more money was
contributed, they would have pictures of the beaches.
Chairman Frank Jones said this is just a presentation which Clean Design is
presenting; what had been presented to the MAC committees. The purpose for
tonight is so people like myself as well as others who have not seen the information
would have a chance to do so. As already indicated is for information only; no other
actions to be taken.
Mayor Swearingen said Kure Beach increased 14% last year; that you do not get
much better than that. Wants to know why she should give up what is working and
give it to something not working.
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Shawn Braden advised there is equal ad rotation between Wilmington and the
Beaches in the current destination advertising campaign.
Chairman Jones advised the Marketing Plan is brought before the Board each year
and input is done during the year through the Marketing Committees, etc.
Commissioner Jonathan Barfield says Wilmington needs to drive the bus such as
Charleston does. More discussion on how Charleston and their beaches work as one
group and are very successful.
Mayor Wilcox says the beaches are the major contributors. Says the problem is we
have two different issues — we have a marketing strategy being discussed, but we
have existing legislation which is written for a very specific reason. Says a
marketing concept being presented is less problematic to me than the policy issue.
Says the policy issue at hand is that using the marketing strategy as a vehicle to
change the breakdown on how the money is spent as dictated by the legislation.
Mayor Wilox says he just wants to hear the facts. Likes to hear it straight across the
Board. Says right now we need to break this apart. Should have gone to the
governing boards of the municipalities before it was discussed anywhere else. Says
this is more of a policy issue than it is a marketing strategy.
Frank Jones stated that the TDA was not trying to change policy. As stated before,
this is an informational presentation only to keep the TDA Board aware since there
has been many outside conversations regarding this.
Mayor Wilcox says we have legislation in place. Trying to point out obvious facts.
President/CEO Kim Hufham says she is very well aware of how the legislation
works. She indicated the agency was told that they were welcome to present the
coop proposal, but there are legislative mandates that would have to be followed
before this type of program could be implemented. Says our legislation is one thing
she lives by and she would not do anything that is outside of that.
Again, Mayor Wilcox said it should have come before the governing board to look at
first.
Carl Marshburn said we've done very well despite the beaches and Wilmington
pulling against each other. If we market ourselves together, we are all going to do
well. It's not about your money or my money. It's not our money, it is generated by
the tourists.
President/CEO Kim Hufham stated that it seems the consensus of the beach towns is
not to move forward with the co-op advertising proposal and this will be relayed to
the MAC committees.
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(Meeting turned over to Nicholas Montoya, co-chairman, as Chairman Jones had to
leave for another engagement.)
ITEM # 6 — PRESIDENT'S COMMENTS —KIM HUFHAM
President/CEO Kim Hufham advised the Board that Neal Johnson, Vacation
Rentals, has submitted his resignation due to added duties within his organization.
Kim read his letter to the Board and wished him well in his new endeavors.
Pertaining to a Short -Term Rental Update: Attended a public meeting; the City
will be compiling information and have same available at a later date; online survey
available on city's website.
HB2: Have received 4 emails to date; have received I media inquiry; prepared
statement for inquiries.
National Tourism Week (May 1-8): Travel Rally Breakfast in the works; Panel on
legislative issues and working with our legislators; Ribbons, posters available for
travel partners; VIC's have posters and postcards available for our visitors; Will be
participating at state level with legislative reception.
SATW Post-FAM Tour (April 27-29): 6 freelance journalists to be here; Welcome
reception for the journalists on April 28t''. All TDA members invited.
Marketing: Continue with strategic planning and budget preparation.
Presentation to City Council on April 51'' on Convention Center Marketing update.
ITEM #7 — OLD BUSINESS/NEW BUSINESS
Carl Marshburn has purchased new 49-passenger boat for site seeing and cruising.
No dinner boat on horizon at this time. Going to put a grill on the barge for
hamburgers, etc.
Chuck Pennington says it is the general feeling of the B&B's that they are not being
marketed as they should be.
ITEM #8 — CHAIRMAN'S COMMENTS — FRANK JONES
Nicholas Montoya — Vice Chairman — said the issue of the co-op marketing
presentation tonight is a two-sided situation. Is very complex. Perceptions on how
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people can be taken one way or the other. This is a legislative issue. Challenge to
this Board before it gets to the Marketing Committees.
Mayor Saffo said should have gone before the governing body first.
Kim Hufham stated that this was never intended to turn into a policy issue and staff
followed the same procedures that they have in previous years with presentation to
the MAC committees. A valuable lesson has been learned and wishes to thank the
staff and agency for all of their hard work.
Commissioner Barfield spoke about the speaker he heard today on "How We Can
Grow Everybody."
There being no further business to come before the TDA Board of Directors, the
meeting was adjourned at 6:50 p.m.
Next Meeting Date: Wednesday, May 25, 2016
Kim Hufham, President/CEO Jeanette Foster, Recording
Secretary
Minutes located in TDA Board Minutes Book XII
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