TDA Board Meeting October 28 2015
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
OCTOBER 28, 2015
PRESENT: Jonathan Barfield, NHC Commissioner
Anne Brodsky, Hotel – Kure Beach
Kim Hufham, President/CEO – NHC TDA
Frank Jones, Hotel – (150-) Wilmington
Carl Marshburn, NHC Attraction
Nicolas Montoya, Hotel – (150+) Wrightsville Beach
Chuck Pennington – County Bed and Breakfast
Angela Rhodes, County Restaurant
Bill Saffo, Mayor – City of Wilmington
Dan Wilcox, Mayor – Town of Carolina Beach
Lisa Wurtzbacher, Authority Finance Officer
EXCUSED: Mayor Bill Blair, Connie Majure-Rhett, LeAnn Pierce
Neal Johnson, Mayor Dean Lambeth
ABSENT:
STAFF: Jeanette Foster/Administrative Services Manager, Recording
Secretary
Connie Nelson, PR/Communications Director
Shawn Braden, Executive VP of Marketing
Linda Brothers, Financial Analyst, New Hanover County
John Sneed, VP of Sales and Services
VISITORS: David Cignotti, Off-Shore Drilling
Linda Suggs, Cherry Bakaert CPA’s
Terry Lane, Lumina News
Craig Bloszinsky, Mayor Pro-Tem Kure Beach
Bobby Greer, Vets for Energy
Chairman Frank Jones called the meeting of the New Hanover County Tourism
Development Authority Board of Directors to order at 5:35 p.m. in the New
Hanover County Government Complex, Room 601 (Luci B. Harrell Board Room.)
ITEM #1 – EXCUSED
Mayor Bill Blair, Connie Majure-Rhett, LeAnn Pierce, Neal Johnson, Mayor Dean
Lambeth
1
ITEM #2– MINUTES APPROVAL – AUGUST 26, 2015
\[Motion made by Chuck Pennington, seconded by Anne Brodsky and
unanimously approved to accept the August 26, 2015 TDA Board minutes as
read.\]
ITEM #3 – AUDIT PRESENTATION – LINDA SUGGS OF CHERRY BEKAERT
CPA’s
Linda Suggs with Cherry Bekaert CPA’s presented the results of the New Hanover
County Development Authority’s 2014-2015 audit. She described the role of the
external auditor which deals with the actions performed; the results which expresses
an opinion and communications between the audit firm and the TDA. Key
highlights were discussed which includes significant transaction cycles, testing of
internal controls, active data and IT controls. Key highlights (significant audit
areas) include assets, liabilities and other areas such as leases.
In summary, the TDA cooperated, there were no disagreements. Everything went
well. We received an unmodified opinion which means that everything was clean
and reported correctly.
In discussing the financials, went over basic statements which Cherry Bekaert
CPA’s had put together. Included in the report was a summary of budgeted
amounts showing actual total revenues of $5,865,246, actual total expenditures of
$4,592,959. Revenues were in excess of $1,272,287. The fund balance at the
beginning of FY 2015 was $2,407,119; at the end of the FY, $3,679,406. This was in
part due to a one-time transfer of district U funds from the County.
As noted by Ms. Suggs, as with all reports of an audit review nature, Ms. Suggs
analyzed the Management’s discussion and Analysis along with the Government-
Wide and Fund Financial Statements.
\[Motion made by Jonathan Barfield, seconded by Anne Brodsky and
unanimously approved to accept the audit presentation as given by Linda
Suggs of Cherry Bekaert CPA’s.\]
2
ITEM #4 – BUDGET AMENDMENT APPROVAL – LISA WURTZBACHER
Budget Amendment BA#2016-001 presented by Lisa Wurtzbacher to the New
Hanover County Tourism Development Authority Board.
To appropriate the available fund balances as outlined in the FY 14-15 Annual
nd
Audit from remaining funds of the 2 3% ROT for promotions of Carolina, Kure
and Wrightsville Beaches and District U. Original amount $1,059,541; amendment
amount of $226,759; new budget $1,286,600.
To appropriate the available fund balances as outlined in the FY 14-15 Annual
nd
Audit from remaining funds of the 2 3% ROT for Activities at Carolina, Kure and
Wrightsville Beaches. Original amount total of $1,081,002; amendment amount of
$423,429; new budget $1,504,431.
To appropriate remaining funding received FY 14-15 from the City of Wilmington
for Convention Center Marketing. Original amount total $63,200; amendment
amount of $3,856; new budget $67,056.
\[Motion made by Jonathan Barfield, seconded by Chuck Pennington and
unanimously approved that the Budget Amendment for 2016-001, amending
the annual budget ordinance for the fiscal year ending June 30, 2016 be
hereby adopted.\]
ITEM #5 – FINANCIALS/ROT REPORT – LISA WURTZBACHER
Lisa Wurtzbacher, Authority Treasurer, gave report on results of the budget for
July 1, 2015 – September 30, 2015 or 25% for first 3 months. Based on actual
amounts in expenditures for the first 3%, total of $438,772 or 24% has been spent.
nd
2 3% expenditures shows total of $265, 370 spent for beaches and District U.
Total is only 11% due to there not being any activity expenditure items for the
beaches or District U. Total Convention Center expenditures is $105,454 or 34% as
some tradeshows were paid in advance. Grand total expenditures for the first
quarter is $809,596.
ROT Collections:
st
1 3% for July and August compared to last Fiscal Year: -12.36%. Feel this is
partially due to the way Labor Day weekend fell this year. Total thus far for the
two months = +0.46%; based on comparison to last calendar year: +4.20%.
nd
Beaches (2 3%) collections compared to last Fiscal Year:
Carolina Beach: -2.12%
Kure Beach: +11.48%
Wrightsville Beach: +0.73%
3
nd
Beaches (2 3%) collections compared to last Calendar Year:
Carolina Beach: +3.65%
Kure Beach: +12.68%
Wrightsville Beach: +2.47%
nd
2 3% collections compared to last Fiscal Year for City of Wilmington, Convention
Center and District U:
City of Wilmington: -2.68%; Convention Center: +3.04%; District U: -0.67%
nd
2 3% collections compared to last Calendar Year for City of Wilmington,
Convention Center and District U:
City of Wilmington: +1.85%; Convention Center: +10.64%; District U: 5.55%
ITEM #6 – EXPENDITURE REQUESTS – Carolina Beach/Wrightsville Beach -
KIM HUFHAM
President/CEO Kim Hufham went over funding requests we had received for
consideration at the October TDA Board Meeting.
Carolina Beach:
The Town of Carolina Beach has respectfully requested TDA funds in the amount of
$16,950.29 for expenses incurred for Ocean Rescue/Life Guard Expenses including
salaries and benefits for the period of January 9 through March 30, 2015. These
requests have been approved by the Board beginning in 2003.
The Town of Carolina Beach respectfully requests TDA funds in the amount of
$16,825.76 (donation for Carolina Beach Downtown Initiative) for expenses
incurred April 2015 – June 2015 and $4,215.00 for July 2015. These funds provide
family entertainment for all ages including family night music and magic shows on
Tuesday nights and music on Thursday nights. Requests for these events have been
approved by the TDA Board since 2008.
The Town of Carolina Beach respectfully requests TDA funds in the amount of
$78,000.00 to the Pleasure Island Chamber of Commerce (FY 2014-2015). These
funds provide family entertainment for all ages including fireworks on Thursday
nights and movies at the lake on Sunday nights long with annual events such as the
Carolina Beach Music Festival, Chowder Cook-off and Seafood Blues and Jazz
Festival. Starting approving these events in 2008.
Total funding in the amount of $115,991.05 is available and being requested upon
the TDA Board’s approval.
\[Motion made by Anne Brodsky, seconded by Chuck Pennington and
unanimously approved to accept Carolina Beach’s TDA requests in the
amount of $115,991.05.\]
4
Wrightsville Beach:
TDA funding requests have been respectfully requested by the Town of Wrightsville
Beach as follows:
$29,000.00 (July 1 – December 31, 2015) to help fund fireworks, advertising, public
relations and media support associated with the planning and preparation of the
2015 N.C. Holiday Flotilla. These funds to be used exclusively to help pay for a
fireworks display ($12,000) and other expenses to promote and execute the annual
event ($17,000). Funds will only be disbursed to the Flotilla by the Town of
Wrightsville Beach after a review of paid invoices. Takes place over the
Thanksgiving Holiday weekend and continues to be one of the premier tourists’
attractions for the Beach and the entire southeastern Carolina region. The TDA
started approving this event in 2004.
$12,000.00 requested to help support the necessity of maintaining a public restroom
in the hub of the Wrightsville Beach business area, commonly known as the Trolley
Stop. The area is a vocal point for visitors to the Beach. The facility is the only
public restroom in the central business area. The TDA started approving these
funds in 2005.
$377,301.00 requested to support their Ocean Rescue Program (Beach Strand
Lifeguards) during FY 2016. This service provides comprehensive ocean rescue
coverage for nearly four miles of beach coverage. The service is staffed by 30 fully
qualified personnel. This sum includes salaries and associated operational costs.
The TDA started approving this program in 2004.
$100,000.00 is requested to support the Beach Patrol Office function during FY
2016. This service provides two dedicated patrol officers to patrol nearly four miles
of beach strand and attends to the enforcement of ordinances and policies related to
the use of parks and beaches by residents and visitors to the beaches, parks and
local public facilities that support the tourism industry. This function has been
approved since 2004.
$35,000.00 is requested to help support the cleaning of beach bathhouses and
sanitation pickup on the oceanfront and other tourists related areas from July 1,
2015 through June 30, 2016. At least 1,600 hours are spent performing these
functions. The amount requested includes salaries and benefits for this time period
and has been approved by the TDA since 2007.
Total funding in the amount of $553,101.00 is available for FY 2015-2016.
\[Motion made by Chuck Pennington, seconded by Anne Brodsky and
unanimously accepted to approve $553,101.00 for FY 15-16 to be used as
noted above.
5
ITEM #7 – PRESIDENT’S COMMENTS – KIM HUFHAM
President/CEO Kim Hufham had further information on Airb&b which has been
being discussed. Said the Tax Office is trying to work with Airb&b on break downs
per municipality. Making progress on this and will continue to monitor it and keep
everyone updated on where it is headed. Looking at some code enforcements. City
of Wilmington looking at some current codes on vacation rentals; that is where
Airb&b would fall as well. That is something we are going to see more of as well,
especially if Airb&b is legitimately collecting the occupancy tax and remitting it,
they are then following those rules. There may be some other codes that need to be
followed, but at least the tax side is hopefully being followed.
Kim will be attending the NC Leadership Conference in Charlotte next week.
Representative Ted Davis will be a panelist.
The following week Kim will be attending the NC Coalition Meeting, working on
legislative agenda and issues.
A marketing update indicated online advertising opportunities for our website,
holiday events, etc., final stages on Visitors Guide for 2016 (exceeded sales goals.)
Sales and Services – Hosting MPI bi-monthly meeting at Courtyard by Marriott at
Carolina Beach. Mayor Dan Wilcox will be welcoming the group.
Two cruise ships will be coming to the area over the next few weeks.
Kim advised that several from the Board were invited to attend a Charleston trip
with the Chamber of Commerce. Among those in attendance: Kim Hufham,
Commissioner Jonathan Barfield, Chairman Frank Jones and Mayor Bill Saffo.
Charleston is the number one tourist city in the country and has put together a lot of
economic development groups. The bottom line is the collaboration between these
groups. Our group was involved in many great sessions and came back with a lot of
ideas to discuss among our peers.
ITEM #8– OLD BUSINESS/NEW BUSINESS
Off Shore Drilling Resolution Consideration
Chairman Frank Jones said that at the last TDA Board Meeting it was determined
to put off the Off Shore Drilling Resolution until the October meeting due to
additional questions and having someone else to give a presentation.
Frank introduced Bobby Greer, Vets for Energy who had been asked to do a
presentation. Mr. Greer says the Vets for Energy believe a secure nation is an
6
energy secure nation. We should not have to be relying on other nations for energy
who do not like us. He indicated for an offshore exploration and development, the
outer continental shelf, located 50 miles plus off shore is being looked at. It has been
30 years since that area has been looked at and that was using old equipment. With
new equipment, even if everything moved forward and worked well and we went
through all the hoops that the government has, it would still be 20+ years before you
could produce any oil. This is not a short-term thing. Bobby said they would
certainly not want to do anything to harm our environment. Says he knows tourism
is extremely important, but also knows it is important for people to be able to afford
gasoline to get here. As a past county commissioner, he knows inlet dredging and
beach renourishment are more responsibility on local government. If we were to
have some development out there, it would create a lot of jobs and create a lot of
revenue but I am not here to ask you to support the resolution. I am here however,
to ask you not to pass the resolution.
David Cignotti, Off Shore Drilling Resolution representative, refreshed everyone’s
memory with his presentation from the August meeting, plus additional
information. Copies of the Resolution were available for those needing a copy. He
stated that no one knows for sure what oil and gas reserves are located off the coast,
thus the huge variation in estimates. He indicated tourism has demonstrated
consistent growth for many years and celebrates the things that make our
communities special. Proponents will argue that it is possible for both industries to
co-exist and for the communities to reap the rewards. That is a possibility, just as it
is a very real possibility that an accident will occur causing irreparable harm to the
tourism industry and the way of life for tens of thousands of coastal North
Carolinians.
600 national, state and local elected officials have taken a public stance against
offshore oil exploration and/or development, including 80+ coastal towns, cities and
counties that passed resolutions opposing or voicing concern with the process.
Many North Carolina beach towns, port cities, communities with noted historic
districts as well as a variety of chambers of commerce restaurant associations,
tourism boards and fishing groups are opposed.
David than asked Lindsey Deignan to present some new slides. Lindsey is a
doctorate candidate in Marine Biology at UNCW and has been doing a lot in
presentations pertaining to off shore drilling including Wilmington City Council.
After completion of her presentation, David asked Bobby if he had further
comments. Bobby indicated there are always a lot of what ifs and a chance of spills,
but anything you do has chances. He said there is nothing in place right now for
any revenue sharing that Lindsey stated, but to every other process there is a lot of
revenue sharing down in the Gulf and their local communities get a lot of revenue.
In the 4% speculation she brought up, nobody really knows. It has been over 30
years since anyone has been off shore locally and all of this might be a mute point.
Important to find out what is there. Again, however, the Vets are for conservation.
7
Lindsey made some further comments on the 4% speculation. David also made
further comments; one on further options on tourism growth, clean water, etc.
Comments made by the Board, including Chuck Pennington with the Bed and
Breakfasts and Frank Jones with the hotels that these entities are both against off
shore drilling.
\[Motion made by Nick Montoya, seconded by Chuck Pennington to approve
the resolution opposing off shore oil and gas development off the coast of
N.C. as presented.\]
(Copy of resolution in Exhibit Book XII.)
ITEM #9 – CHAIRMAN’S COMMENTS – FRANK JONES
Chairman Frank Jones asked that even though the property is now state-owned,
could any pressure be put on the state to tear down existing buildings that are now
empty due to the new expanded intersection going to be built in that area (gateway
coming in on Highway 17. It is an eyesore to both locals and visitors.
After some discussion,
\[Motion made by Frank Jones, seconded by Chuck Pennington and
unanimously approved to send a letter to DOT on this matter.
Adjourned at 6:45 p.m.
Next Meeting Date: Wednesday, January 27, 2016
______________________________ __________________________
Kim Hufham, President/CEO Angela Rhodes, Secretary
Minutes located in TDA Board Minutes Book XII
8
9