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2023-02-16 Agenda Airlie Gardens Foundation February 16,2023,Board Meeting Agenda IğƓƉ 9ƭƷĻƦͲ /ŷğźƩ aźĭŷğĻƌ /ƩĻĻķͲ źĭĻ /ŷğźƩ /ƚƚ IƚĭƉĻƩͲ ƩĻğƭǒƩĻƩ 9Ʃźĭ .ƌğĻƭźƓŭͲ {ĻĭƩĻƷğƩǤ ğƩğ 5ǒĭƉǞƚƩƷŷͲ 5źƩĻĭƷƚƩ ƚŅ tğƩƉƭ εDğƩķĻƓƭ MISSION To ensure and help preserve Airlie Gardens as an outstanding, historic public garden with cultural and environmental programs developed to serve New Hanover County residents and other visitors. AGENDA February 16, 2023; 8:30am: Airlie Garden Services Center 1.Call to Order and approval of the JanuaryMinutes: Hank Estep 2.: Coo Hocker a.Financial Update for period ending 1-31-23 3.Special Discussion-Investment Policy Update & Financial Outlook for Capital:Lead by Copley Investment Management 4. 5.Other Business: All Board Members Next Meeting: March16, 2023 AIRLIE GARDENS FOUNDATION BOARD PAGE 2 REGULAR MEETING JANUARY 19, 2022 ASSEMBLY The Airlie Gardens Foundation Board met in Regular session at the Garden Service Center on Thursday, th January 19, 2023, at 8:30 a.m. Present: Hank Estep (presiding), Nikki Bascome, Eric Blaesing, Michael Creed, Coo Hocker, Shane Johnson, Charlie Rivenbark, John Russ, Sandra Ray, and Ron Copley. Excused: Rob Zapple and Teddy Davis Staff: Scott Childs, Tara Duckworth, Julie Holtz, Andy Johnson, Janine Powell, Jodi Rich, and Latashia Smith. Guest: Justin Burgess of Copley Investment Management and Ted Davis, Jr. WELCOME AND APPROVAL OF MINUTES. Hank Estep called the meeting to order. He then asked if there th were any changes to the minutes of the meeting. Eric Blaesing stated that the November 17 minutes indicated that the next meeting was to be held in December. Since there was no December meeting, he suggested that the November minutes be updated to reflect as such. Sandra Ray suggested that we put it in the January minutes that there was no meeting in December. The following motion was presented: MOTION: Michael Creed MOVED; SECONDED by Eric Blaesing, that the minutes of the November 17th meeting be approved. Upon vote, the MOTION CARRIED UNANIMOUSLY. MOTION: Charlie Rivenbark MOVED; SECONDED by Eric Blaesing to excuse Rob Zapple and Teddy Davis. MOTION CARRIED UNANIMOUSLY. 1. As discussed in previous meetings, Hank wanted to share the t with the board members, especially the new board members. st 2. Coo Hocker reviewed the financials for the month ending October 31, 2022. Highlights were as follows: Balance Sheet The checking account at Dogwood State Bank was opened with $300,000 with an interest rate of 3.25%. Additionally, the interest rate on the South State checking accounts was increased to 1.5%. Profit and Loss versus prior years As discussed in previous months, increase in both Concert Series revenues and Oyster Roast revenues are due to both an increase in sponsorships (REV) and an increase in admissions. More tickets were sold for the Oyster Roast this year, and many members paid half-price for concert tickets (free with previous member benefits). Enchanted Airlie Revenue will be analyzed in January. AIRLIE GARDENS FOUNDATION BOARD PAGE 3 REGULAR MEETING JANUARY 19, 2022 Airlie received a $7,500 grant from The Landfall Foundation in November to be used for the next exhibit. Year to date Gate revenues are down 14% over last year but up 3% over FY21. With the increase in memberships, this decrease has been expected. Year to date Membership revenues are up 19% over last year. Year to date Merchandise Revenues are down 11% over last year. This normally trends with gate revenues. Program revenues are up 65% over last year, partly driven by Family Fun Night, but mostly driven by environmental education programs (field trips, etc). Wedding and Garden events are down 12% from last year. This breaks out to a 6% increase in weddings/portraits and a 77% decrease in other events (film, garden party). Grounds Maintenance Expense (#7300) - $33,214 was spent this fiscal year on tree preservation. Capital Projects Expenses that occurred in November consist of concrete repairs of $3,250 and $37,115 for a Pier Assessment. Endowment The market continues to be volatile but the last two months have produced significant gains, with a year to date unrealized gain of $441,026. 3. Director/Operations Report. Tara shared the following: Plans to remove some of the policies created by the former director that are no longer useful present them to the board. Discussed the mission of the foundation based on IRS documents. Highlighted the foundation bylaws. To establish a business model to promote sustainability of the garden. The initial goal of the foundation was to be sustainable without depending on county support. The definition of sustainability has changed over the last 5 to 10 years. Foundation needs to reestablish what it means to be sustainable. Establish an endowment to fund capital improvements in the garden: This has been discussed previously and established as of late that this is something that we need to do. outlines the strategy for long-term growth of capital. Further discussion is needed before it is ratified again. It was suggested that those who wanted to dive deeper into the investment policy, stay after the board meeting to hear from Copley Investments. Copley Investment came in January of 2016 and profits spiked in 2016. The risk tolerances increased when we changed investment firms. In order to make the day to day operations more efficient and effective, capital improvements are needed. The building was not designed for daily employee usage. Airlie Fiscal Year 21-22 was the first complete year since covid. Oyster Roast and concert series operate at a loss. Gate, Contributions, and Memberships saw the biggest profit. Weddings and events also saw a sizable profit. Membership prices have remained roughly the same for many years. Garden services center renovation received 2 bids. Keystone Incorporated was the lowest bidder coming in just under $620,000. Hanover Interiors was the other bidder and they came in at $850,000. Keystone was a lump sum bid. Charlie Rivenbark wanted to know what the expectation was for the cost. The expectation was roughly $500,000. Loudermilk Architecture did not feel comfortable giving an estimate on the cost of renovations because it was dependent AIRLIE GARDENS FOUNDATION BOARD PAGE 4 REGULAR MEETING JANUARY 19, 2022 upon too many factors. The bid is good for 30 days. Six months is the expected timeline for renovations to be completed. The following motion was presented: MOTION: Shane Johnson MOVED; SECONDED by Michael Creed, that the lower bid be approved. Upon vote, the MOTION CARRIED UNANIMOUSLY. The timeline for the renovation is 6 months. There was concern about the renovation taking place during the Garden Party. Crowd pleasers will be in place so there will be working restrooms. The mezzanine storage will not be part of the project. The money for the project will come out of the operating account and will not have to use the endowment or Dogwood. After additional questions were answered, Hank Estep restated the following motion: MOTION: Shane Johnson MOVED; SECONDED by Michael Creed, that the lower bid be approved. Upon vote, the MOTION CARRIED UNANIMOUSLY. 4. Development Report. None to report 5. Other Business. Ted Davis, Jr. gave a brief history of why the County purchased Airlie Gardens. A board was created to raise money for Airlie Gardens to become self-sufficient in 5 years because of the pushback the county received for using taxpayer dollars to purchase Airlie. The first fundraiser was the Swan Ball. It made a profit, but not the amount it would need. An estimate of what was needed to become self-sufficient at that time was 12 to 15 million dollars. 6. Next Meeting. The next board meeting will take place at the Garden Services Center on Thursday, March 16, 2023, at 8:30 a.m. ADJOURNMENT There being no further business, the following motion was presented: MOTION: Hank Estep MOVED; SECONDED by Charlie Rivenbark that the meeting be adjourned. The meeting adjourned at 9:51am. Respectfully submitted, Latashia Smith Administrative Coordinator -Please note that the above minutes are not a verbatim record of the New Hanover County Airlie Gardens Foundation Board meeting.