TDA Board Meeting January 27 2016
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
JANUARY 27, 2016
PRESENT: Jonathan Barfield, NHC Commissioner
Anne Brodsky, Hotel – Kure Beach
Kim Hufham, President/CEO – NHC TDA
Frank Jones, Hotel – (150-) Wilmington
Connie Majure-Rhett – Greater Wilmington Area C of C
Carl Marshburn, NHC Attraction
Nicolas Montoya, Hotel – (150+) Wrightsville Beach
Chuck Pennington – County Bed and Breakfast
LeAnn Pierce, Hotel – Carolina Beach
Angela Rhodes, County Restaurant
Emilie Swearingen, Mayor – Town of Kure Beach
Bill Saffo, Mayor – City of Wilmington
Lisa Wurtzbacher, Authority Finance Officer
EXCUSED: Mayor Bill Blair, Neal Johnson, Mayor Dan Wilcox
STAFF: Karla Thompson, Technology/Systems Manager, Recording
Secretary
Shawn Braden, Executive VP of Marketing
Linda Brothers, Financial Analyst, New Hanover County
John Sneed, VP of Sales and Services
VISITORS: David Billitto, Vacation/Furnished Rentals
Joe Pawlik, Residents of Old Wilmington
Tim Owens, Town of Wrightsville Beach
Chairman Frank Jones called the meeting of the New Hanover County Tourism
Development Authority Board of Directors to order at 5:30 p.m. in the New
Hanover County Government Complex, Room 601 (Luci B. Harrell Board Room.)
Chairman Jones welcomed new TDA Board Member Emilie Swearingen, Mayor of
Kure Beach and recognized the TDA Board reappointments for another term:
Chuck Pennington – County Bed and Breakfast; Angela Rhodes – County
Restaurant; LeAnne Pierce – Hotel, Carolina Beach; New Hanover County
Commissioner Jonathan Barfield.
ITEM #1 – EXCUSED
Mayor Bill Blair, Neal Johnson, Mayor Dan Wilcox.
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ITEM #2 – APPROVAL OF BOARD MINUTES – OCTOBER 28, 2015
\[Motion made by Anne Brodsky, seconded by Chuck Pennington and
unanimously accepted to approve the October 28, 2015 Board minutes as
read.\]
ITEM #3 – FINANCIALS/ROT REPORT – LISA WURTZBACHER
Lisa Wurtzbacher, Authority Treasurer, gave report on results of the budget for
July 1, 2015 – December 31, 2015. Based on actual amounts in expenditures for the
first 3%, total of $810,241 or 45% of budget has been spent.
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2 3% expenditures shows total of $654,771 spent for July 1 – December 31, 2015
for beaches. This is only 21% due to lack of expenditure requests from the beaches
at this time.
Convention Center shows actual amount of $171,904 has been spent or 54%. Little
high due to travel expenditures including FAM trips, etc.
Four months of revenues show actual amount of $986,430 for first 3%; room
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occupancy tax show actual amount in revenues for 2 3% of $1,447,124.
ROT Collections:
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1 3% for July - November compared to last Fiscal Year: 3.35% increase; based on
Calendar Year (January – November) 5.04% increase.
Carolina Beach: 2.81% increase
Kure Beach: 13.82% increase
Wrightsville Beach: 1.49% increase
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Beaches (2 3%) collections compared to last Calendar Year:
Carolina Beach: 5.68% increase
Kure Beach: 14.04% increase
Wrightsville Beach: 2.59%
nd
2 3% collections compared to last Fiscal Year for City of Wilmington, Convention
Center and District U:
City of Wilmington: +0.88%; Convention Center: 8.19% increase; District U: -
increase of 2.62%
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2 3% collections compared to last Calendar Year for City of Wilmington,
Convention Center and District U:
City of Wilmington: +2.55%; Convention Center: +11.19%; District U: 6.80%
\[Motion made by Anne Brodsky, seconded by Chuck Pennington and
unanimously accepted to approve the financial report as presented.\]
ITEM #4 – SHORT TERM RENTALS PRESENTATION
Chairman Frank Jones reported there would be two presentations on short term
vacation rentals with each presentation limited to 10 minutes for informational
purposes on this issue which is currently being reviewed by the City of Wilmington.
First presentation by Joe Pawlik of ROW. Mr. Pawlik stated that the current issue
of short term vacation rentals is not a matter of property maintenance or of
promoting tourism. It is a zoning issue pure and simple. The Historic District
Residential is a downtown property zone that is designated for single family
residential housekeeping. This designation is generally understood to mean that the
people living there occupy the properties over long periods of time, whether they
own the property or rent it. Residential areas are where you find neighborhoods.
Businesses are not permitted in districts that are zoned residential either by right or
by special use. Short-term rentals should not be permitted in residential zones,
because houses that become “hotel rooms” for a few days per week replace those
with long-term residents and neighbors.
Mr. Pawlik stated how the loss of residential neighborhoods cause problems and
what the business use of residential properties causes in neighborhoods. The
Central Business District is zoned for business and has short term rentals in its
boundaries and B&B’s are permitted by accessory use.
Mr. Pawlik said years of hard work have resulted in the beautifully restored homes
that tourists come to see and those living in these areas live in harmony and pride
with horsedrawn carriages, trolleys, and walking tours of their streets. He says,
however, that the real community they have built is not compatible with the
business of short-term rentals, which pose an existential threat to their
neighborhood by converting residential homes to hotel suites.
Second presentation by David Billitto, representing VRBO’s. Mr. Billitto discussed
how he came to be a furnished rental owner and an urban destination is big business
for tourists. He read part of our Mission Statement and made remarks on same. He
discussed sensible regulations that would allow short term vacation rentals. Mr.
Billitto passed around copies of statutes, letters, etc which support his efforts for the
TDA’s review. He says short-term rentals have a demand for an age group between
40 and 80 years old with 35% of these travelers having a pet. Mr. Billitto said that
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before this debate on short term rentals ever began, there were rentals. These
rentals help create a community. Says this is not about ROW; it is about
Wilmington proper. The current code allows for rentals of 7 days or more. He also
discussed the legal aspects of ROT. He stated the current code is being looked at to
possibly rework it. Says short term rentals are not destroying hospitality in
Wilmington.
ITEM #5 – MID-YEAR UPDATE – Kim Hufham
President/CEO Kim Hufham presented the Wilmington and Beaches Mid-Year
Update.
Highlights of the presentation:
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Room Occupancy Tax Receipts 1 3% for FY 15/16 (July – November) up
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3.35%; Calendar Year (thru November) – up 5.04. 2 3% for same periods
of time: Carolina Beach – FY 2.81%; CY 5.68%; Kure Beach – FY 13.82%;
CY 14.04%; Wrightsville Beach – FY 1.49%; CY 2.59%; Wilmington – FY
0.88%; CY 2.55%; CC District – FY 8.19%; CY 11.19%; District U – FY
2.62%; CY 6.80%.
Legislative issues include School Calendar Law; Rent by Owner and ROT
Remittance – AirBnB; Film Incentives/Grant Program; Beach
Renourishment and Inlet Dredging Funding; Environmental Issues.
Convention and Group Sales total number of leads included 102 with 32
becoming definite for an economic impact of $15,853,305.00. These leads
included top market segments of Association, Sports, Religious, Corporate.
Group Sales Activities 38 site visits, 20+ industry events, 133 sales calls and 9
trade shows. Upcoming activities/events include 20+ industry events and 3
trade shows.
Communications/PR Activities for July – December 2015 included 22 press
release distributions, 17 individual journalist site visits, 446 traditional media
contacts. Earned media/editorial included 596 print/internet total
placements, print circulation of 23,501,822 (6 mo. Cumulative), 3,916970
monthly average circulation. Internet/media impressions = 861,256,271 (6
mo. Cumulative and 143,542,712 monthly average impressions. Non-media
inquiries = 758.
PR Mid-Year Highlights for July-December, 2015 Activities and Events:
Historic Downtown Wilmington voted #1 best Al Fresco Dining
Neighborhood, USA Today 10 Best Reader’s Choice; SATW National
Conference and Media Marketplace (October.); In-state Media Marketplace
in Charlotte (September);Hosted writers to include American Way (in-
flight); AAA Home & Away; NC Sportsman; 919 Magazine; AAA GO;
Carolina Style and more for spring features; Proclamation request approved
by N.C. Governor’s office for “Surfing Month in North Carolina”
September, 2015; Assigned, curated, edited monthly Guest Blogs by local
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experts; Hosted luncheon to honor Representative Ted Davis with NC Travel
& Tourism Coalition’s inaugural “Tourism Champion Award.”
A few of the 2015 Accolades included Wrightsville Beach among the “Best
Small Beach Towns in America (May, 2015); Carolina Beach ranked among
“America’s Best Boardwalks” (July 2015); Kure Beach and Carolina Beach
made Tripping.com’s “10 Best Beaches in N.C. list (summer, 2015); Manna
became Wilmington’s first AAA Four Diamond restaurant in 2015; Trip
Advisors.com names the NC Aquarium at Ft. Fisher one of the top 25 US
Aquariums (July 2015)
Marketing Campaign - $113,846 spent on media (81% online, 4% print, 3%
e-Specials, 5% facebook and 7% Out of Home. Had a total of 126,465
inquiries with the highest number of 41% online (eSpecials.)
Discussed total downstream exit inquiries, key performance indicators and
marketing/website projects, in addition to total social subscribers, PR
strategy and target media; also PR activities and results.
Upcoming activities include: Hosting SATW fam tour in April, NC Tourism
Legislative breakfast in April, Legislative Tourism day in May, National
Tourism week in May, 16/17 strategic planning and budgets, NC Governor’s
Conference on Tourism and NC Travel and Tourism Board meeting.
(Complete presentation can be found in Exhibit Book XI).
ITEM # 6 – PRESIDENT’S COMMENTS – Kim Hufham
Kim Hufham congratulated Chuck Pennington, owner of the Verandas, for their
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14 year of receiving the AAA 4 Diamond Award; also the Manna Restaurant has
received this award for the second year.
ITEM #7 – OLD BUSINESS/NEW BUSINESS
Frank asked if a letter had gone out to DOT concerning the appearance of the
intersection of Market Street and Military Cutoff. The letter has been sent but a
response has not been received to date.
Frank also indicated we are working with the law enforcement and hotels to have a
meeting regarding Market Street area crime.
ITEM #8 – CHAIRMAN’S COMMENTS – Frank Jones
The Tourism Development Authority By-Laws direct the Board to elect new officers
during the first quarter of each calendar year. The Executive Committee met on
January 21 and present the following slate of officers for 2016:
Chairman – Frank Jones
Vice-Chairman – Nicolas Montoya
Secretary – Angela Rhodes
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Treasurer – Lisa Wurtzbacher
Chairman Jones called for any nominations from the floor. There being none, the
slate of officers stands as presented.
\[Motion made by Anne Brodsky, seconded by Connie Majure-Rhett to
approve the nominations for new officers as presented by the Executive
Committee for 2016.\]
There being no further business to come before the TDA Board of Directors, the
meeting was adjourned at 6:25 p.m.
Next Meeting Date: Wednesday, March 30, 2016
______________________________ __________________________
Kim Hufham, President/CEO Angela Rhodes, Secretary
Minutes located in TDA Board Minutes Book XII
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