01-27-2010
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
JANUARY 27, 2010
John Andrews, County Restaurant
PRESENT:
Bill Caster, NHC Commissioner
David Cignotti, Mayor – Wrightsville Beach
Scott Cromartie, Wilmington Chamber of Commerce
Brett Darlington, Hotel – Carolina Beach
Kim Hufham, President/CEO – NHC TDA
Frank Jones, Hotel – (-)150 Wilmington
Dean Lambeth, Mayor – Kure Beach
Bob McKoy, NH County Vacation Rentals
Donna Moffitt, County Attraction
Chuck Pennington, County Bed and Breakfast
Ronnie Pernell, Hotel – Kure Beach
Avril Pinder, NHC Authority Finance Officer
Bill Saffo, Mayor – City of Wilmington
EXCUSED: Anne Marie Hartman, Hotel – Wrightsville Beach
Joel Macon, Mayor – Carolina Beach
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
Sheila Boyd, NHC Finance
GUESTS: Claire Simms – WECT-TV
Sheila Schult – New Hanover County Clerk to Commissioners
Bruce Shell – New Hanover County Manager
Josh Spilker – Greater Wilmington Business Journal
Bobby Greer – New Hanover County Commissioner
Chris Coudritct – New Hanover County
Andre’ Mallette – New Hanover County
Wanda Copley – New Hanover County Attorney
Brian Freskos – Lumina News
Ted Davis – New Hanover County Commissioner
Jason Thompson – New Hanover County Commissioner
Jonathan Barfield – New Hanover County Commissioner
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Chairman Ronnie Pernell called the meeting of the New Hanover County Tourism
Development Authority Board to order at 5:40 p.m. in Room A of the Coast Line
Convention Center.
Introductions were made by all in attendance.
ITEM #1 – EXCUSED ABSENCES
Anne Marie Hartman, Mayor Joel Macon excused.
ITEM #2 – MINUTES APPROVAL – OCTOBER 28, 2009
[Motion made by Frank Jones, seconded by John Andrews and unanimously
carried that the minutes of October 28, 2009 be approved as read.]
ITEM #3 – FINANCIALS AND ROT REPORT – AVRIL PINDER
Because of a special presentation to our guests (Commissioners of New Hanover
County) and other special guests, financials and ROT report were disseminated to
our Board. Avril Pinder noted that anyone having questions on the reports could
call her or Kim.
ITEM #4– BUDGET AMENDMENT – AVRIL PINDER
Avril Pinder advised that Budget Amendment BA#2010-001 was needed to amend
the budget ordinance for FY ending 6/30/2010 for the beaches and the convention
center:
Beaches – To allocate fund balance to meet the established amounts for Promotion
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Fund Balance of 25%. At June 30, 2009, remaining fund balance was less than the
limit. This amendment reduces the current year promotion expenditures in order to
increase the balance to the established levels. Wrightsville Beach will go to 8% and
then incrementally increase to the 25% level through the annual budget process.
Original - $702,770; amendment – ($19,786); new budget - $682,984. In addition, to
appropriate the available fund balances as outlined in the FY 08-09 Annual Audit
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from remaining funds of the 2 3% ROT for Tourism Activities at Carolina, Kure
and Wrightsville Beaches. Original - $787,103; amendment $851,592; new budget -
$1,638,695.
Convention Center – To appropriate remaining funding received FY 08-09 from the
City of Wilmington for Convention Center Marketing. Original – 0; amendment -
$92,417; new budget - $92,417.
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[Motion made by Chuck Pennington, seconded by Bill Caster and
unanimously approved that Budget Amendment 2010-001, amending the
annual budget ordinance for the fiscal year ending June 30, 2010 be hereby
adopted.]
ITEM #5 – PRESENTATION TO COUNTY COMMISSIONERS – KIM HUFHAM
Synopsis of Kim Hufham’s presentation to the County Commissioners:
Impact of Tourism on New Hanover County for 2008 generated an economic
impact of $422 million (-0.8% decrease from 2007.) New Hanover County
ranks number 8 among the state’s 100 counties and #2 among coastal NC
counties. Tax relief of $196.16 per NHC resident. Tourism brings in 5,510
job with $99.17 million in payroll. ROT receipts grown 43% over the
previous 5 years before the recession hit in 2008.
New Hanover County Tourism Development Authority d/b/a as the
Wilmington/Cape Fear Coast Convention & Visitors Bureau is the official
destination marketing organization for the Cape Fear Coast encompassing
Historic Wilmington, Carolina, Kure and Wrightsville Beaches.
Legislative History: 1986 legislation enacted to levy a 3% room occupancy
tax. Cape Fear Coast CVB was formed as the tourism marketing entity for
New Hanover County. The New Hanover County Tourism Development
Authority established in 2003 by legislation enacted to enable an additional
3% ROT for promotions/activities for the beaches; City of Wilmington for
the Convention Center.
ROT Distribution for 2008/2009: 29% for beach erosion; 18% Tourism-
CVB; 8% for Carolina Beach Marketing/Activities; 3% for Kure Beach
Marketing/Activities; 12% for Wrightsville Beach Marketing/Activities; 30%
Wilmington Convention Center.
Primary role of the Wilmington/Cape Fear Coast Convention & Visitors
Bureau is to tell the Cape Fear Story, inform, educate, advise the visitor.
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The Wilmington/Cape Fear Coast CVB is funded by a percentage of the 1
3% ROT collections. The fiscal year 2009-2010 operating budget is 1.66
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million. An additional $1.48 million from the 2 3% ROT collections is for
the beach municipalities. The 3 main target audiences is leisure/consumer,
meeting/convention groups, group tour/motorcoach.
Budget Highlights: In the first 3% budget, the CVB continues to focus on
marketing and promotion representing 75% of the budget. No advertising
programs have been cut. There is no increase in revenues planned for FY
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2009-2010 and expenditures have been decreased 6% from the previous
adjusted year budget. In addition, salaries and benefits have decreased
2.72% over previous year. There are no salary increases for 09/10.
Revenues, expenses and salaries/benefits were discussed.
Convention Center Marketing: Briefly discussed all aspects of convention
center marketing’s budget to include salaries/benefits, tradeshows, travels,
promotions, rent, office supplies, telephone, postage, etc.
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2 3% Budgets: Promotions and activities budgeted funds for Carolina,
Kure and Wrightsville Beaches reviewed.
Goals/New Programs: Want to increase inquiries by 10%; expand social
media efforts (Facebook and Twitter;) introduce a blog on W/CFC site;
introduce and market “Sunny Savers” program; negotiate package deal w/
VisitNC, including web, print and online advertising and video production,
etc.
Visitor inquiries for 08/09 and 09/10 reviewed to include Visitor Centers,
telephone, written advertising, trackable web and trackable VG. Total
inquiries up 21.58% year to date.
Area attraction attendance is up 12.87% year to date.
Group Sales and Services’ comparisons done for 08/09 and year to date for
09/10 as well as communications and public relations activities.
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ROT receipts for 1 and 2 3%’s reviewed as well as the Smith Travel
Research.
President/CEO asked “Where Are We Going?” She said it is our goal to expand
and transition from a promotional organization providing information and
marketing/advertising to a development organization developing and selling
product and being accountable for delivering incremental business during need
times and to move from destination marketing to destination management
foundation and infrastructure.
ITEM #6 – PRESIDENT’S COMMENTS – KIM HUFHAM
No other required following presentation.
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ITEM #7 – OLD BUSINESS/NEW BUSINESS
Commissioner Bill Caster commented on the Beach to Battleship which took place
in early November, 2009. He noted that this one day event generated an economic
impact of two million dollars for New Hanover County.
Chairman Pernell stated that all sporting events are good for business.
President/CEO Kim Hufham advised there is so much potential to having sporting
events here and we are currently working with Cape Fear Soccer and their
tournaments. An inquiry conversion study of Wrightsville Beach, partnering with
the Wrightsville Beach Chamber is in process. It was also noted that a visitor
profile study was done last year by Carolina Beach.
ITEM #8 – CHAIRMAN’S COMMENTS – RONNIE PERNELL
Chairman Pernell welcomed new Board members Mayor David Cignotti from
Wrightsville Beach, Mayor Dean Lambeth from Kure Beach and Brett Darlington,
representing hotels from Carolina Beach.
Next meeting will be held on Wednesday, March 24, 2010.
[Motion made to adjourn at 6:30 p.m.]
______________________________ __________________________
Kim Hufham, President/CEO Bill Caster, Secretary
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