2023-04-26 Minutes
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
April 26, 2023
PRESENT: Craig Bloszinsky, Mayor – Town of Kure Beach
Kim Hufham, President/CEO – NHC TDA
Eric Credle, NHC Chief Financial Officer
Zach Brigman, Wilmington Hotel Manager (150+)
LeAnn Pierce, Commissioner – New Hanover County
Lynn Barbee, Mayor – Carolina Beach
Angela Rhodes-NHC restaurants
Zeke Partin- Wrightsville Beach Board of Alderman
Tom Ullring, Carolina Beach Hotel
Hap Fatzinger, NHC Attractions
Ross Pitman, NHC Bed & Breakfast
EXCUSED: Jim Kitts, NHC Vacation Rentals
Natalie English, Wilmington Chamber of Commerce
Bill Saffo, Mayor- City of Wilmington
STAFF: Kim Little, Administrative Services Manager/Recording
Secretary
Linda Brothers, Senior Financial Analyst, NHC
Connie Nelson, Communications/PR Director
John Sneed, VP Sales
Chairman Nicole Jones called the meeting of the New Hanover County Tourism
Development Authority Board of Directors to order at 5:00pm. The meeting was
held at the NHC Government Center.
ITEM #1 – EXCUSED – Natalie English, Jim Kitts, Bill Saffo
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ITEM #2 – AIRPORT INCENTIVE/GUIDELINES DISCUSSION- Kim Hufham
Kim Hufham reported that she and several TDA members: Commissioner
LeAnn Pierce, Mayor Saffo, Nicole Jones and Eric Credle met with ILM Airport officials
and board members as well as NHC County Manager, Chris Coudriet, to discuss future
funding requests from the airport to the TDA. The initial ask from the airport was
$500,00 for marketing efforts. After presentations and discussions from both groups it
was decided that the maximum that could be considered was $125,000 annually. It was
also discussed about other partners that could contribute to these efforts to reach their
goal of $500,000. It was the consensus of the TDA members present to recommend that
$125,000 would be allocated FY22/23 for the new Avelo service to Wilmington, DE and
that $125,000 would be requested during the FY23/24 Budget process. Funds would be
st
requested from 1 3% Fund Balance.
Kim Hufham reached out to Chris Cavanaugh from Magellan Strategies to
conduct research of 16 destination marketing organization support for air service
compared to support requested by the New Hanover Airport Authority.
Key Observation:
• 16 destination marketing organizations surveyed about their level of
financial commitment to air service development and their policies around
any incentives provided.
• Most DMOs lack guidelines or guardrails around the use of money for air
service development and handle on a case-by-case basis. (This is
independent of other types of regular grant programs to community partners
• Most of the successful relationships between DMO and an airport represent
ongoing collaboration, rather than just one-time requests for dollars.
• The DMO is usually not the only community partner providing funding
support.
Summary:
In-kind tactics/Support New Origin markets 9
Direct Contributions/Incentives 4
Designated marketing programs 3
Air Service Task Force (public/private) 3
Grants 2
No support 2
Sponsorships 1
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From the NHC TDA Budget aspect here is how it breaks down:
st
• Destination Budget is based on 1 3% collections
• Destination Budget indicated by highlighted lines
st
• Available Fund Balance is from 1 3% collections
• Current year revenue shortfall estimate is between 10.3 to 12% under original
projections ($450k - $488k)
• FY 2023/2024 Budget projections – (down 10.18%)
• Impact to budget current and upcoming fiscal year – reduction of
approximately $900K
nd
• 2 3% and Convention Center Marketing revenues and expenses are
mandated by legislation on usage.
Discussion was held by the Board of Directors on the ROI from these investments
and what reporting mechanisms are in place. It was also discussed as to how the new
service markets are determined. After further discussion, the Board agreed that the
$125,000 for the new Avelo air service would be considered as well as the $125,000
request for FY23/24.
The Next Steps will be to establish process and funding guidelines base on
Marketing requirements. Establish reporting mechanisms for accountability of monies
and ROI. Also, work alongside the ILM Airport to determine how and what CVB
marketing efforts can be funded through airport sponsorships.
\[The PowerPoint presentation including the study conducted by Magellan
strategies of the 16 marketing organizations in how they support their
local airports can be found in the NHC TDA Exhibit Book XIII.\]
ITEM #3 BA # 2023-05- To appropriate funds for marketing of Wilmington and
Beaches in the Wilmington, DE region based on a new air service from ILM by Avelo
Airlines.
\[Motion made by Lynn Barbee, seconded by Ross Pitman in support of the
BA #2023-05. Motion passed 8-1 with Craig Bloszinsky dissented\]
ITEM #4- OLD BUSINESS/ NEW BUSINESS
The Audit Contract needs to be approved for the upcoming audit for $7,000.
\[Motion made by Tom Ullring and seconded by Nicole Jones to
contract with Cherry Bekaert for $7,000 and unanimously accepted to approve the
contract\]
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The May board meeting will be the presentation of the FY23/24 budget.
As there was no further business the meeting was adjourned at 6:30 p.m.
Next NHC TDA May 31, 2023
______________________________ __________________________
Kim Hufham, President/CEO Tom Ullring, Secretary
Minutes located in TDA Board Minutes Book XIIII
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