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HomeMy WebLinkAboutTDA Board Meeting January 31 2023 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS January 31, 2023 PRESENT: Craig Bloszinsky- Mayor – Town of Kure Beach Zach Brigman- Wilmington Hotel (150+) Natalie English -Wilmington Chamber of Commerce Kim Hufham - President/CEO – NHC TDA LeAnn Pierce – NHC Commissioner Lynn Barbee, Mayor – Carolina Beach Bill Saffo - Mayor – City of Wilmington Eric Credle– NHC Chief Finance Officer Ross Pitman- Bed & Breakfasts Angela Rhodes-NHC restaurants Nicole Jones, -Wilmington Hotel (150-) Jim Kitts- NHC Vacation Rentals EXCUSED: Tom Ullring- CB Hotel Manager (150+rooms) Zeke Partin - Wrightsville Beach Board of Alderman Hap Fatzinger-NHC Attractions STAFF: Kim Little, Administrative Services Manager/Recording Secretary Linda Brothers, Senior Financial Analyst, NHC Connie Nelson, Communications/PR Director Karla Thompson, Technology/Systems Administrator Shawn Braden, VP Marketing & Strategy John Sneed, VP Sales GUESTS: Wendy Parker, Mythic Rachel Cobb, Mythic Jeff Bourke, ILM Airport Natalie English, NHC TDA member, called the meeting of the New Hanover County Tourism Development Authority Board of Directors to order at 5:00pm. The meeting was at Wilmington Chamber of Commerce and CVB offices in the River Room. 1 Kim Hufham welcomed New & Reappointed Members: NHC County Commissioner LeAnn Pierce LeAnn Pierce, newly elected NHC Commissioners, is returning to the NHC TDA in place of Deb Hays, NHC Commissioners. She is also serving on the NHC Airport Authority ITEM #1 – EXCUSED – Hap Fatzinger, Zeke Partin, and Tom Ullring ITEM #2 – APPROVAL OF BOARD MINUTES FOR OCTOBER 26, 2022, and November 30, 2022 – Natalie English. \[Motion made by Craig Bloszinsky, seconded by Lynn Barbee and unanimously accepted to approve the October 26, 2022, TDA Board minutes. In addition, motion made by Lynne Barbee and seconded by Craig Bloszinsky to unanimously accepted to approve November 30, 2022, TDA Work Session minutes, as read.\] ITEM #3 NEW AIR SERVICE FUNDING REQUESTS- Jeff Bourk, ILM Airport Jeff Bourke updated the NHC TDA Board on the successes of the funding that the TDA Board has given the airport towards the expansion of airlines and flight destinations. Currently there are 14 nonstops to reach over 360 destinations. He spotlighted the economic impact of the growth of the airport through jobs, tax revenue, personal income. Jeff Bourk requested additional funding of $62,500 for Sun Country to begin air service to and from Minneapolis, MN & Wilmington, NC. This flight would be from June – August 2023. \[Motion made by Lynn Barbee, seconded by LeAnn Pierce, and unanimously accepted to approve funding to the ILM Airport in the amount of $62,500.\] ITEM #4- FINANCIALS/ROT REPORT – Eric Credle Eric presented the ROT collections report. Eric Credle asks for approval of Budget Amendment- BA # 2023-04 * To appropriate funds in the amount of $62,500 for marketing of Wilmington and Beaches in the Minneapolis region based on a new air service from ILM by Sun Country Airlines. 2 \[Motion made by Natalie English, seconded by Lynn Barbee, and unanimously accepted to approve the Budget Amendment 2023-004 and in the amount of $62,500.\] \[Complete financial reports and copy of the BA2023-004 can be found in Exhibit Book XIIII.\] ITEM #5 EXPENDITURE REQUESTS- KURE BEACH, WRIGHTSVILLE BEACH & CAROLINA BEACH – KIM HUFHAM President/CEO Kim Hufham presented the following funding requests: KURE BEACH:  The Town of Kure Beach respectfully requests funds for expenditures that were incurred for the Pleasure Island Chamber of Commerce Free Summer Concerts held during the summer of 2022 and the 2022 Cape Fear Kite Festival held in November 2022 The six free concerts, held at the Fort Fisher Military Recreation Area, and the kite festival held at the Fort Fisher Military Recreation Area attract tourists to Kure Beach by providing an enjoyable and affordable entertainment venue. The expenditures for the fiscal year 2022/2023 totaled $19,380.00 and are supported by documentation attached to this request.  The Town of Kure Beach respectfully requests funds for expenditures that were incurred for the entertainment provided at the Ocean Front Park during the summer and Fall of 2021 and 2022. The entertainment included concerts, Storytime, the Kure Beach Market and other family-oriented activities. Theses events attract tourists to Kure Beach by providing enjoyable and affordable entertainment. The expenditures were as follows: Concerts $21,600.00 Family Activities $13,900.00 $35,500.00  The Town of Kure Beach respectfully requests funds for expenditures for lifeguard services for the summer 2022. The requested funds include expenditures for two budget years, 2021-2022 and 2022-2023. The expenses to be reimbursed are calculated as follows: 3 Total Lifeguard Expenses Incurred FY2021/2022 $327,436.85 Less: Lifeguard Expenses included on 01/24/22 TDA Request $136,723.26 FY2021/2022 Remaining to be reimbursed $190,713.59 FY2022/2023 Lifeguard Expenses Incurred from 7/1/22-12/13/22 $178,038.53 Amount of the request $368,752.12 The program is directly related to tourism as it acts to protect vacationers and visitors from harm as they swim and enjoy the beach strand in the incorporated town limits of Kure Beach. Visitors are attracted to the beaches that offer lifeguard services, particularly those with young children and older adults. Kure Beach has always been on the cutting edge of oceanfront safety. We have a proven track record of placing a high priority on protection of our visitors. The Kure Beach Lifeguard Program budget is attached to this request indicating amounts previously received and the amount of this request.  The Town of Kure Beach respectfully requests funds for expenditures that were incurred for maintenance, improvements, and operating supplies at the Ocean Front Park and pavilion and the public restrooms for the period of December 2021 to December 2022. The Kure Beach Ocean Front Park has become a favorite destination for tourists- related activities, including the Boogie In The Park concert series, weekly markets, programs for children and educational programs. Additionally, tourist may reserve the facility for private events. The location of the pavilion in proximity to the ocean is part of the draw but also leads to a variety of maintenance issues. Also, there are expenditures for operation supplies (e.g. paper products, etc.) used at the public restrooms located at the park. The expenditures for the period of December 2021 to December 2022 total $48,825.78 and are supported by documentation attached to this request. Total funds are available in the amount of $472,457.90. \[Motion made by Bill Saffo, seconded by Craig Bloszinsky and unanimously accepted to approve the funding request for Kure Beach as read.\] 4 CAROLINA BEACH:  The Town of Carolina Beach respectfully request funds for Ocean Rescue/Lifeguard salaries, expenses, and benefits for the period of July 1, 2022- October 31, 2022, for the total $272,506.96. (Also, includes costs not previously reimbursed March 1, 2021-September 1, 2022, that are HR related)  The Town of Carolina Beach respectfully request reimbursement of funds for the construction of the public restroom facility at Hamlet Ave. public beach access; used by visitors/tourists while at Carolina Beach; also serves as Ocean Rescue office and storage facilities for the November 22, 2022 request $72,201.33,  The Town of Carolina Beach respectfully request funds for boardwalk activities from July 1, 2022- October 31, 2022. These expenses are related providing family entertainment for all ages at Carolina Beach Boardwalk including weekly fireworks displays, band performances, Sunday night movies, family nights at Boardwalk (face painters, bands, other entertainment), Christmas by the Sea, and other. Total funds requested $123,485.36. Total funds are available in the amount of $468,193.65. \[Motion made by Bill Saffo, seconded by Ross Pitman and unanimously accepted to approve the funding request for Carolina Beach as read.\] WRIGHTSVILLE BEACH:  The Wrightsville Beach Garden Club is working to establish a Blue Star Memorial Garden. In order to increase the amount of visitors to the garden, they would like to install a roadside marker, and are requesting that the Town of Wrightsville Beach fund 50% of the cost of the sign. The Town of Wrightsville Beach Governing body agreed to do so, pending a request of funds from the NHC Tourism Development Authority. This sign will promote tourism in that it will increase awareness of the Garden’s presence and ease the process of finding the way there. Total funds requested $900.00.  The Wrightsville Beach Board of Alderman respectfully request TDA funding in the amount of $42,000 be favorably considered to help fund the fireworks, advertising, public relations and the media support associated with the planning and presentation of the 2022 North Carolina Holiday Flotilla. These are to be used 5 exclusively to help pay for fireworks display ($27,000) and other expenses to promote and execute the annual event ($15,000). Funds will only be disbursed to the Holiday Flotilla by the Town of Wrightsville Beach on a reimbursement basis after a review of the paid invoices. The North Carolina Holiday Flotilla is a non- profit corporate entity that has traditionally presented this event at Wrightsville the Beach during the Thanksgiving holiday weekend. This will be the 39year for the Holiday Flotilla and it continues to be one of the premier tourist attractions of the year for Wrightsville Beach and the entire southeastern Carolina region. The total funds requested $42,000 Total funds are available in the amount of $42,900. \[Motion made by Bill Saffo, seconded by Natalie English and unanimously accepted to approve the funding request for Wrightsville Beach as read.\] \[Copies of all the funding requests can be found in the Exhibit Book XIIII\] ITEM #6- STRATEGIC PLAN REVIEW- KIM HUFHAM Kim presented an update of the Wilmington and Beaches Three-Year Strategic Plan Summary. Rachel Cobb and Wendy Parker from Mythic will be the facilitators for the discussion to evaluate and align on the Opportunity Challenges in the strategic plan. FY 22-23: Marketing Strategies:  Extended Seasonality  Higher Income Targeting  Educate Out-of-State Travelers  In-state- Western Focus for longer stays  Hybrid Plan- Unified Campaign complemented with dedicated beach plan. Opportunities Challenges: 1. Seasonal leisure and weekend travel destination: opportunity to extend seasonality, travel distance and visitor spending through year-around marketing, higher-income targeting and more out of state marketing. 2. Qualified visitor industry professionals need: support tourism/hospitality workforce development. 3. Countywide public understanding of tourism: advance TDA/CVB value and advocacy. 6 4. Attention to quality visitor experience development: (Tourism Master Plan) formulate an agreed -to-tourism master plan including comprehensive gateway, signage, and on-site services development. 5. Unified approach to destination marketing and sales effort: continue the comprehensive city and beaches destination marketing strategy to allow synergistic organization effectiveness and higher returns. 6. Cooperative group meeting/sports event marketing and sales mandate: initiate a proactive partnership strategy to increase awareness, leads and bookings. 7. Sustainable funding source for beach renourishment: continue dialogue with county government/other proponents on a long-term agreement. Implications and Potential Initiatives: 1. The recommendation/comment regarding not waiting on an invitation struck us as a real opportunity. We heard and observed that the CVB should have a seat at the table and can be more proactive in ensuring their voice and perspective are heard when key economic development decisions are being discussed. 2. Thought Starters for Partner Funding Criteria. Does the investment opportunity… a. Align with the TDA’s mission and marketing objectives? b. Help address Strategic Plan Opportunities + Challenges? c. Include clarity/specificity on how funds will be allocated/used? d. Align with our working knowledge and experience (ie. airport: using a 5- day average stay when flights are from Friday to Sunday and is a higher average than what we’re seeing from Arrivalist data. Also. the opportunity includes a origin market that is currently not a priority and doesn’t receive marketing) e. Promise to provide key milestones and results that will be reported back so the TDA can understand ROI (or can we require this?) 3. We discussed working with the City of Wilmington. a. around economic development and securing a hotel downtown. b. and related the issue of continuing to set-up the Convention Center for success but having limited room commitments to fulfill meeting / group needs. 4. Underscoring that advocacy in general should be part of the priority initiatives, where relevant, as one of the actions or ways some of the Opportunity Challenges can be supported. 7 5. School start date is more than just an advocacy issue. We should be prepared and work through the implications of what this will mean to the TDA and the CVB if the early start date is ever passed. So, both sides of the issue should be factored into future plans (advocacy measures and back-up planning). Discussion moved to the futures strategies and initiatives: Partner funding process and procedures Short-term Initiatives/Opportunities: ● Event creation ○ 3-day festivals ○ Enhance festivals. ○ Restaurant week w/ lodging ○ food/wine ● Advocacy ● Riverwalk feasibility study RFP Long-term Initiatives/Opportunities: ● Affordable housing (including seasonal) ● Staff transportation ● Events that the county can create - cruises coming or going out? ● Holiday event ● Advocacy Additional insights from Arrivalist data: FY 22-23 YTD  Overall visitation is down slightly year-over-year, consistent with overall travel trends.  Travelers who are visiting from Western North Carolina and Out of State Focus Markets are more likely than fiscal to be overnight visitors, and they are staying for longer periods of time.  Lift values paid media are in line with the general market.  Arrival rate from 1,000 unique users (APM) is improving. WBCVB staff will take the TDA input and incorporate it into the current Strategic Plan. The staff will present an updated version of the Strategic Plan to the TDA at the March 29, 2023. 8 \[A copy of TDA Strategic Plan PowerPoint presentation can be found in the Exhibit Book XIII\] ITEM #7- PRESIDENT’S COMMENTS- Kim Hufham 2022 NCTIA Awards awarded at the 2022 NC Tourism Leadership Conference Platinum Award – Best Leisure Promotion – “Halloscream Getaway” Best of Show – “Hallloscream Getaway” Gold Award – Local Industry Communication – CVB Tourism Ambassador video ITEM #8 –CHAIRMAN’S COMMENTS-Nicole Jones ITEM #9– OLD BUSINESS/NEW BUSINESS As there was no further business the meeting was adjourned at 6:45 p.m. NHC TDA Work Session: Wednesday, February 22, 2023 ______________________________ __________________________ Kim Hufham, President/CEO Tom Ullring, Secretary Minutes located in TDA Board Minutes Book XIIII 9 10