HomeMy WebLinkAboutTDA Board Meeting May 31 2017
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
May 31, 2017
PRESENT: Bill Blair, Mayor – Town of Wrightsville Beach
Anne Brodsky, Hotel/Motel Owner – Kure Beach
TeDra George, Hotel (-150 rooms, owner/Manager)
Kim Hufham, President/CEO – NHC TDA
Patricia Kusek, Commissioner – New Hanover County
Chuck Pennington, County Bed and Breakfast
Daniel Perkins, Hotel – (150+) Wilmington
LeAnn Pierce, Hotel – Carolina Beach
Angela Rhodes, County Restaurant
Peggy Sloan, Tourist Attraction
Emilie Swearingen, Mayor – Town of Kure Beach
Bill Saffo, Mayor – City of Wilmington
Lisa Wurtzbacher – New Hanover County Finance Officer
EXCUSED: Jason Bryant, Nicolas Montoya, Mayor Dan Wilcox, Natalie
English
STAFF: Jeanette Foster, Administrative Services Manager/Recording
Secretary
Linda Brothers, Financial Analyst, New Hanover County
Connie Nelson, Communications/PR Director
Karla Thompson, Technology/Systems Manager
John Sneed, VP Sales
Shawn Braden, VP Marketing
GUESTS: Jayne Bednarczyk, Cameron Art Museum
Mary Baggett, Blockade Runner Resort Hotel
Vice-Chairman Angela Rhodes called the meeting of the New Hanover County
Tourism Development Authority Board of Directors to order at 5:30 p.m. at the
New Hanover County Government Complex in the Lucy B. Harrell Conference
Room.
Welcomed new Board member TeDra George, representing (-) 150 room hotel in
Wilmington.
ITEM #1 – EXCUSED – ANGELA RHODES
Nicolas Montoya, Jason Bryant, Natalie English, Mayor Dan Wilcox
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ITEM #2 – APPROVAL OF MARCH 25, 2017 BOARD MINUTES – ANGELA
RHODES
\[Motion made by Mayor Bill Saffo, seconded by Chuck Pennington and
unanimously accepted to approve the March 25, 2017 Board minutes as
read.\]
ITEM #3 – FINANCIALS/ROT REPORT – LISA WURZBACHER
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Total Expenses – July 1, 2016 – April 30, 2017 – total expenses for 1 3% -76%
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spent for first 10 months of the FY; 2 3% for beaches promo/activity, District U
promo/activity – total of 51% for July 1, 2016 –April 30, 2017. Convention Center
has spent total of 83% for this same period of time due to expense of paying ahead
for trade shows and other travel expense, etc. Grand total expenses 61%.
Revenues – based on 9 months of collections – total income of 59% collected or
actual amount of $3,739,241.00
ROT Collections:
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1 3% for July, 2016 –March, 2017 – 10.19% increase compared to last Fiscal Year;
3.9% increase based on Calendar Year for January, 2017 – March, 2017.
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2 3% Fiscal Year of July, 2016 – March, 2017 and Calendar Year January, 2017 –
March, 2017:
Carolina Beach: 16.86% increase FY; 27.63% increase CY
Kure Beach: 6.49% increase FY; 12.03% CY
Wrightsville Beach 6.77 increase FY; 5.90% CY
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2 3% collections compared to last Fiscal Year of July, 2016 through March, 2017
and Calendar Year, January, 2017 – March, 2017 for City of Wilmington,
Convention Center and District U:
City of Wilmington: 11.94% increase FY; -2.87% decrease CY
Convention Center 2.24% increase FY; 1.45% increase CY
District U: increase of 15.19% FY; 44.40% increase CY
ROT Audit Update:
Lisa advised they have been looking at different provider options to do an audit
update. The ones reviewed mainly offer the same kinds of services. One provider,
in particular, has software which can look back at VRBO’s and identify how long
someone actually stayed at the property. Of course, the County would have to send
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out letters to educate the VRBOs and/or send collection letters. Of the ones
reviewed, some were much more reasonable than others. Discovery letters would
have to be looked at on a one by one basis. Restrictions would be the first thing to
be put in place. Concerns as to how much time would be involved. At this time,
basically looking at all of the options. Updates will follow.
ITEM #4 – EXPENDITURE REQUESTS – CAROLINA BEACH – KIM HUFHAM
President/CEO Kim Hufham presented funding requests from the Town of Carolina
Beach:
The Town of Carolina Beach respectfully requests TDA funds in the amount
of $356,293.09 for expenses incurred for Life Guard salaries and benefits for
the period of April 1, 2016 – February 28, 2017. Lifeguards are on duty 7 days
a week during tourist season. (2003)
The Town of Carolina Beach respectfully requests TDA funds in the amount
of $87,040.00 as a donation to the Pleasure Island Chamber of Commerce for
FY 15/16. This donation provides entertainment for all ages including
fireworks on Thursday nights and movies at the lake on Sunday evenings, as
well as annual events such at the Carolina Beach Music Festival, Chowder
Cook-Off and Seafood Blues and Jazz Festival. (2005)
The Town of Carolina Beach respectfully requests TDA funds in the amount
of $35,634.75 for the Boardwalk Makeover (now known as the Carolina Beach
Downtown Initiative (CBDI/PIRA) for family entertainment for all ages
during the period of December 20, 2015 – December 20, 2016. This includes
family nights music and magic shows on Tuesday nights and music for
Thursday family nights before the fireworks. (2008)
\[Motion made by Mayor Bill Saffo, seconded by Anne Brodsky and
unanimously accepted to approve TDA funds in the total amount of
$478,896.84 for expenses for Life Guard Salaries and benefits, donation
for entertainment and CBDI/PIRA for family entertainment.\]
ITEM #5 – BUDGET REVIEW – FISCAL YEAR 2017-2018 – KIM HUFHAM
President/CEO Kim Hufham presented the Fiscal Year 2017-2018 budget to the TDA.
She explained it has been presented in detail to the TDA Executive Committee and is
now recommended for the Board’s approval.
To summarize, the following points are provided from the prior year budget:
FY 2017-2018 total budget is $6,003,284 compared to the previous fiscal year
of $5,314,755 representing a 12.95% increase.
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Revenues are based on 2016/2017 actual collections as well as revenue growth.
The first 9 months of the current budget is running a 10.19% increase, which
is showing a steady growth over the past 5 years. Currently on target to set
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our 6 consecutive benchmark year in room occupancy collections.
The first 3% budget shows 14% increase in expenditures.
The first 3% budget continuing to focus on marketing and promotion
representing 78% of the budget. Our marketing and advertising programs
continue to be based on strategic direction recommendations working with our
agency as well as visitor research which is available through VISITNC.
Some areas of note include:
Salaries and benefits based on an average of 3%; insurance and benefits show
an average 8% increase.
Will have a new Senior Marketing Manager position – restructure of
marketing department based on current needs and increased workload. There
will also be a reclassification of the Marketing/Database coordinator to
Sales/Database coordinator with salary costs being split between the CVB and
the CC marketing budgets.
Under Administration, there will be an increased cost for new vehicle license,
tags and maintenance and CEO Forum attendance.
Summarization of Visitor Services – hours will be increased at the beach VIC’s
to 40 hours per week; extended riverfront hours to include winter weekends
as weather permits and Visitor Center improvements.
Marketing and Promotions:
Contracted Services: E-specials program; Simpleview Implementation
Photography and Video: Increase in video production for multi-media
campaigns; SkyNav and info beacons.
Advertising: Increase paid social spending as a result of its
effectiveness in driving engagement and leads; build out additional
interest-based audience to reach city-focused audiences, including
those interested om shopping, food, breweries, history and outdoor
adventure.
Include morning TV show sponsorships in the spring to generate mass
awareness of our destination within key feeder markets; expand OOH
billboard program to secure year-long placements in high traffic areas
in key in-state markets; incorporate non-traditional OOH tactics, like
transit/bus and digital billboards to further promote the riverfront
marketing initiative; utilize 360-degree imagery on Facebook to
generate interest in the destination and drive traffic to the new SkyNav
section of the website.
Education: Simpleview CRM training for all staff; staff development
opportunities.
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Promotions: American Bus Association FAM tour; Travel South USA
FAM tour; travel media showcase post FAM tour; social media
campaigns expansion; Visit365 conference sponsorship – 2019 in ILM.
Trade Shows to include 2 new media and 2 new meeting and convention
shows.
Capital Expenditures: Scheduled replacement of 2 pcs and monitors; office
furniture replacement; $2,500 contingency.
District U: Sports advertising and creative; leisure advertising (placements to
support outdoor activities, parks, gardens; Southern Living (June’s Outdoor
Living issue); outside magazine.
Sports Marketing – include increase in sales calls and hosting of sports
organizers.
ITEM #6- PRESIDENT’S COMMENTS - KIM HUFHAM
Wells Fargo – Organizers very pleased with results; tickets sold out. All
properties did not fill up as hoped. Lots of good media coverage.
National Tourism Week – great turnout for the breakfast; probably largest
one we have had.
SkyNav: We are the first destination in the country to launch it on our
website. Have learned, however, that Myrtle Beach now plans to do the same
thing.
Will be working on our Marketing Plan for FY 17-18. Will show more of how
our budgeting dollars will be spent.
Mayor Swearingen asked if anyone had seen the latest “Our State” magazine.
There is an article about Kure Beach.
ITEM #7 – OLD BUSINESS/NEW BUSINESS
ITEM #8 – CHAIRMAN’S COMMENTS – VICE-CHAIRMAN ANGELA
RHODES
As there was no further business,
\[Motion made by Anne Brodsky, seconded by Peggy Sloan and unanimously
carried to adjourn the meeting at 6:30 p.m.\]
Next Meeting Date: Wednesday, August 30, 2017
______________________________ __________________________
Kim Hufham, President/CEO Daniel Perkins, Secretary
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Minutes located in TDA Board Minutes Book XII
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