TDA Board Meeting October 25 2017
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
October 25, 2017
PRESENT: Bill Blair, Mayor – Town of Wrightsville Beach
Anne Brodsky, Hotel/Motel Owner – Kure Beach
Jason Bryant, Vacation Rental Properties
Kim Hufham, President/CEO – NHC TDA
Patricia Kusek, Commissioner – New Hanover County
Nicolas Montoya, Hotel Manager/Owner – (150+ rooms)
Chuck Pennington, County Bed and Breakfast
Daniel Perkins, Hotel – (150+) Wilmington
LeAnn Pierce, Hotel – Carolina Beach
Angela Rhodes, County Restaurant
Peggy Sloan, Tourist Attraction
Dan Wilcox, Mayor – Town of Carolina Beach
Lisa Wurtzbacher – New Hanover County Finance Officer
EXCUSED: Mayor Bill Saffo, Natalie English, Tedra George, Mayor
Emilie Swearingen
STAFF: Jeanette Foster, Administrative Services Manager/Recording
Secretary
Linda Brothers, Financial Analyst, New Hanover County
Connie Nelson, Communications/PR Director
Karla Thompson, Technology/Systems Manager
John Sneed, VP Sales
Shawn Braden, VP Marketing
GUESTS: Mary Baggett, Blockade Runner
Linda Suggs, Cherry Bekaert CPA’s
April Adams, Cherry Bekaert CPA’s
Chairman Nicolas Montoya called the meeting of the New Hanover County Tourism
Development Authority Board of Directors to order at 5:30 p.m. in the Lucie B.
Harrell Conference Room #601 at the New Hanover County Government Complex.
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ITEM #1 – EXCUSED – NICOLAS MONTOYA
Natalie English, Mayor Bill Saffo, Tedra George, Mayor Emilie Swearingen
ITEM #2 – APPROVAL OF BOARD MINUTES FOR AUGUST 30, 2017 –
NICOLAS MONTOYA
\[Motion made by Anne Brodsky, seconded by Mayor Bill Blair and
unanimously accepted to approve the August 30, 2017 TDA Board minutes as read.\]
ITEM #3 – AUDIT PRESENTATION – LINDA SUGGS AND APRIL ADAMS OF
CHERRY BEKAERT CPA’s
Lisa Wurtzbacher introduced April Adams along with Linda Suggs of Cherry
Bekaert CPA’s to present the Tourism Development Authority audit for FY 2016-
2017. April reported on what the role of the external auditor is and in their
unmodified opinion, a clean opinion was given which is the highest that can be
received.
April also discussed internal controls which include a financial statement, journal
entries, cash receipts, cash disbursements, payroll, account balances, etc.
In presenting financial results, there was an increase of $861,000 in assets, $818,000
increase in revenues and $509,000 increase in expenses.
**BUDGET AMENDMENT APPROVAL – LISA WURTZBACHER
Budget Amendment BA#2018-0021 presented by Lisa Wurtzbacher.
To appropriate the available fund balances as outlined in the FY 16-17 Annual
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Audit from remaining funds of the 2 3% ROT for Promotions at Carolina, Kure
and Wrightsville Beaches and District U. Amendment of $419,404.
To appropriate the available fund balances as outlined in the FY 16-17 Annual
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Audit from remaining funds of the 2 3% ROT for Activities at Carolina, Kure and
Wrightsville Beaches. Amendment of $784,009.
To appropriate remaining funding received from the City of Wilmington for
Convention Center Marketing. Amendment of $1,723.
\[Motion made by Chuck Pennington, seconded by Anne Brodsky and
unanimously carried to approve the Audit presentation and Budget Amendment
BA#2018-0021 as presented.\]
ITEM #4 – FINANCIALS/ROT REPORT – LISA WURTZBACHER
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Total Expenses – July 1, 2017 – September 30, 2017 – total expenses for 1 3% for 3
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months -$449,251; 2 3% for beaches promo/activity, District U promo/activity -
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$314,743 or 10% spent. Convention Center has spent total of 39% for this same
period of time or $166,014. Grand total expenses are $930,497 or 15%.
Revenues – based on 3 months of collections – total income of 20% collected or
actual amount of $1,194,769.
ROT Collections:
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1 3% for July through August, 2017 – 4.06% increase compared to last Fiscal
Year; 9.97% increase based on Calendar Year for January, 2017 – August, 2017.
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2 3% Fiscal Year of July, 2017 – August, 2017 and Calendar Year January, 2017 –
August, 2017:
Carolina Beach: 14.59% increase FY; 22.30% increase CY
Kure Beach: 7.09% increase FY; 11.35% CY
Wrightsville Beach (-) 3.77 decrease FY; 5.87 increase% CY
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2 3% collections compared to last Fiscal Year of July, 2017 – August, 2017 and
Calendar Year, January, 2017 – August, 2017 for City of Wilmington, Convention
Center and District U:
City of Wilmington: 1.97% increase FY; 5.68% increase CY
Convention Center 4.15% increase FY; 5.71% increase CY
District U: increase of 3.99% FY; 22.62% increase CY
**Update on ROT Compliance: Working on plan to request New Hanover
County to create and administer a short term rental compliance program if an
efficient program can be designed and if directed by the New Hanover County
Board of County Commissioners and the Authority supports the cost of a short term
rental compliance program being paid through room occupancy taxes collected.
Resolution to be brought before the county commissioners as supported by the
TDA. Copy of said resolution in TDA Board Book under resolutions.
Lots of discussion followed on Short Term Rentals Compliance.
\[Motion made by Peggy Sloan, seconded by Chuck Pennington and
unanimously carried to approve the Resolution and and forward to the New
Hanover County Board of Commissioners.
ITEM #5 – EXPENDITURE REQUESTS – WRIGHTSVILLE BEACH – KIM
HUFHAM
President/CEO Kim Hufham presented funding requests from the Town of
Wrightsville Beach.
The Wrightsville Beach Board of Aldermen respectfully requests TDA funds in the
amount of $29,000 (July 1, 2017 – December 31, 2017) to be favorably considered to
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help fund fireworks, advertising, public relations and media support associated with
the planning and preparation of the 2017 N.C. Holiday Flotilla. These funds are 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. Event
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is held during the Thanksgiving Holiday weekend with this being its 34 year. It
continues to be one of the premier tourist attractions of the year for the Beach and
the entire southeastern Carolina region. (2004)
The Wrightsville Beach Board of Aldermen respectfully request TDA funding in the
amount of $12,000 to help support the necessity to maintain a public restroom in the
hub of the Wrightsville Beach business area (July 1, 2017 – June 30, 2018),
commonly known as the Trolley Stop. The area is a vocal point for visitors to
Wrightsville Beach. The facility is the only public restroom in the central business
area. The annual lease cost for the section of the building housing the restroom is
$12,000 and is critical to supporting the local tourism industry as well as serving the
beach strand and Wynn Plaza Park. (2005).
The Wrightsville Beach Board of Aldermen respectfully request TDA funds in the
amount of $387,101 to be considered to support their Ocean Rescue Program
(Beach Strand Lifeguards) during FY 2018. This service provides comprehensive
ocean rescue coverage for nearly four miles of beach strand and expanded manning
of 13 lifeguard stations as well as mobile coverage. This service is staffed by 30 fully
qualified personnel. The mission of this program is to provide water lifesaving
services, emergency life support, water safety education and enforcement of local
water related ordinances. The above sum includes salaries and associated
operational costs for this Program and incorporates the salaries for the Ocean
Rescue Director and Lifeguard Captain. (2004.)
The Wrightsville Beach Board of Aldermen respectfully request TDA funding in the
amount of $55,000 to support their Beach Patrol Office function during FY 2018.
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 both residences and visitors to the beaches, parks
and local public facilities that support the tourism industry. (2004.)
The Wrightsville Beach Board of Aldermen respectfully request TDA funds in the
amount of $70,000 to help support the cleaning of beach bathhouses and sanitation
pick up on the oceanfront and other tourists related areas from July 1, 2017 through
June 30, 2018. At least 1,600 hours are spent performing these functions. The
amount requested includes salaries and benefits for this time period. (2007.)
Total Funds of $553,101.00 are available.
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\[Motion made by Daniel Perkins, seconded by Mayor Bill Blair and
unanimously carried to accept the total funding request in the amount of
$553,101.00 for the Town of Wrightsville Beach for FY July 1, 2017 – June 30,
2018.\]
ITEM #6- PRESIDENT’S COMMENTS - KIM HUFHAM
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President/CEO Kim Hufham noted that on September 14, the annual industry
presentation of our Program of Work will be held at the Government Center. All
are welcome to attend.
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The General Manager’s Roundtable was held on October 19. Topics of discussion
included the WPD presentation on human trafficking; legislative update given; a
Director of Sales Roundtable to be scheduled; work force discussion will be a future
topic.
Advocacy Training: NCTIA Lobbyist to facilitate – New Frame and will be a ½ day
session. Will include how to better work and communicate with our elected officials
at both state and local levels. Will be held in January with all TDA Board in
attendance as well as GM/Owners of accommodations.
The 2018 Visitors Guide is in its final stages.
In September, annual presentation to the New Hanover County Commissioners.
NC Travel and Tourism Coalition Annual Retreat will be held in November and will
set Legislative Goals for the 2018 session.
Two new staff members in the process of being hired for the Sales Department. Will
be attending Fall Trade Shows.
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On October 5 20 partners attended Simpleview Extranet training. Lodging
partner specific training will be held on November 1. Additional sessions will be
scheduled in various locations.
Smith Travel Research – Calendar YTD through September: Occupancy is down
4.4%; ADR is up 6.7%; RevPar is up 2.0%; Supply is up 2.3%; Demand is down
2.2% and Revenue is up 4.3%.
ITEM #7 – OLD BUSINESS/NEW BUSINESS -
**SHORT-TERM RENTALS/AIRBnB – KIM HUFHAM AND JASON BRYANT
Kim and Jason put together a presentation on Short Term Rentals and highlights
from this presentation include:
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The CVB was contacted by AirBnB concerning doing promotion on website;
current short-term rental discussion in downtown area.
Purpose is not to determine whether or not short-term rentals are allowed in the city
of Wilmington (compliance issue), but how do we as a TDA/CVB work with the
shared economy and short-term rentals.
Kim’s research came up with Asheville, Crystal Coast, Charlotte, Durham.
Questions asked included if there are official Board positions, promotions of
AirBnB’s and local policies. Was determined Boards showing no actions as
AirBnB’s are operating legally; however Asheville is doing more research. No local
policies at this time. Asheville has done a demand analysis on short-term rentals
and shows hotel demand does not show the full picture although Buncombe County
outpaces competition in AirBnB demand. All four destinations are showing
dramatic growth in AirBnB demand.
Asheville’s further research shows it being a challenge that will likely continue to
grow as younger generations are heavier users of AirBnB than our core Boomer
audiences. In our market (as of 8/01/17) AirBnB listings for the county are total of
1,088. How does the CVB work with this channel; what do we support; what do we
not support? If we do not support something, what are we going to do about it?
Each entity has their own personal objectives. The objective of the TDA is to serve
in a policy making role to provide leadership in moving New Hanover County
toward unity in building orderly and desired growth in the visitor and travel
industry by promoting New Hanover County as a travel and tourism destination.
Went over those currently working with AirBnB’s at Wrightsville Beach as well as
Bed and Breakfast/Inns. Discussed current website profiles; compliance with ROT
collection and remittance. It was asked if anyone disagrees that the TDA does not
need to weigh in on Wilmington short-term rentals Compliance issue. Are we going
to promote AirBnB as an accommodation alternative and how do we deal with on-
compliant channels or new channels as they become available in the marketplace?
ITEM #8 – CHAIRMAN’S COMMENTS – CHAIRMAN NICOLAS MONTOYA
Chairman Nicolas Montoya had further comments on Compliance. Says it is a
reality; need to understand more on active part of promotions. Can’t give a blank
card to those like AirBnB. Need to do more research and more time to analyze it
and enhance it.
Kim and Nicolas will look into more details.
As there was no further business,
Meeting adjourned at 7:15 p.m.
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Next Meeting Date: Wednesday, January 31, 2018
______________________________ __________________________
Kim Hufham, President/CEO Daniel Perkins, Secretary
Minutes located in TDA Board Minutes Book XII
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