TDA 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.
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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.
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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
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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.
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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
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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
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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
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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
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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
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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.]
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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
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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
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