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HomeMy WebLinkAboutCH-OCVB minutes 042110Minutes Chapel Hill/Orange County Visitors Bureau Board April 21, 2010 The Chapel Hill/Orange County Visitor’s Bureau Board met at Durham Tech, Orange County Campus in Hillsborough Host: Carlo Robustelli, DTCC OC Campus Director Board Members Present: Valerie Foushee, Rick Strunk, Mike Gering, Bob Ward, Jim Ward, Jim Norton, Dave Gephart, Lydia Lavelle, Dwight Bassett, Anthony Carey, Jim Parker. Members Absent: Barry Jacobs, Greg Overbeck, Laura Morgan, Lee Pavao and James Harris. Staff Present: Laurie Paolicelli, Patty Griffin, and Tina Fuller Staff Absent: Brad Broadwell Special Guest(s): Mayor Tom Stevens CALL TO ORDER Dave Gephart, acting Chair, called the meeting to order at 8:08 a.m. INTRO AND WELCOME Gephart introduced Hillsborough Mayor, Tom Stevens to enlighten board members on the happenings in Hillsborough. Mayor Stevens talked about some of the transformational highlights- the rail station, which will be located at Orange Grove Road & 86, the possibility of an arts center at that location as well, the possibility of commuting to UNC for a sports event. Stevens talked about some long-term goals- River Walk, the Mountains to Sea Trail and the creation of the Unified Development Ordinance to consolidate all development ordinances. The missing piece is another hotel. Stevens informed that Ladies Night Out is this Thursday, Last Friday is next Friday and the 4th annual Car Show and Cruise-In at Occoneechee Speedway will be on August 28th. Stevens then informed members of the locally published book titled ’27 views of Hillsborough’- A collection of poems and stories that tell of Hillsborough’s past and present and has a picture of Dual Supply on the front cover. Stevens commented that the question is how to keep the small town image (the mayor speaks to visitors personally, the police wave as they drive by, the history of the town is present), the farms and still stay current with the 21st century. He also commented that tourism is a big part of Hillsborough. Executive Directive Laurie Paolicelli stated she would like the VB to commit to a research study next budget year on the financial impact (lost business) of not having another hotel in Hillsborough. Paolicelli noted that B& B travel is hip and Hillsborough supports B&Bs in its town limits where as Chapel Hill ordinances do not support B&Bs in it’s town limits. In conclusion, Mayor Stevens commented that he would like to have that data. Gephart then introduced Carlo Robustelli, new director of Durham Tech Orange County Campus. Robustelli welcomed the group to the campus stating that a room with windows would be more suitable for the VB’s next meeting on campus. Robustelli informed members that this is phase I of a much larger plan. 1) The current focus is offering courses that are credit and non-credit, targeting short term students that are underemployed or unemployed and transfer students, 2) the transition to offering programs such as the a) Sustainable Technology Program (with the green features in this facility, it was easy to bring the program here) and if grant money is received, a solar tech lab would be added, b) a Plan & Study AA program offered fall and spring, 2 yrs to transfer to 4 yr college and c) a Center for Global Study, offering Spanish language, a 1yr certification program that targets the health care professional. Robustelli also informed that this campus is offering 70 courses this summer along with free seminars to the business community. Robustelli stated that there is enormous support for DTCC and Orange County Campus but a lot of people do not know what this campus has to offer so the website with reflect changes offering a better idea of what is going on here. With that Dave Gephart asked if there were any questions. Q&A Jim Ward asked if there was a middle college program for high school students at this campus in which Robustelli replied not at this time but there is one on the main campus. He explained that the criterion is 100 students to offer the program, but it is a long-term goal. Lydia Lavelle inquired on how many rooms were available. Robustelli replied that there were 23 classrooms including 3 science labs; the largest space holds 60 people. He added that the master plan included 5 buildings Jim Ward inquired about an institution wish list and how to go about getting new curriculum to this campus. Robustelli replied that he is here for that purpose; he plays the role of connector, getting the right people together to make it happen. Robustelli continued stating that he is looking at what the campus’s role should be in the community and what are the needs of the community. He has determined that the community areas of interest are the health care industry, fine arts and sustainability technology. Paolicelli asked for Robustelli’s contact info in which he replied robustec@durhamtech.edu APPROVAL OF MINUTES Dave Gephart requested a motion to approve the March 21, 2010 minutes. Valerie Foushee so moved to approve minutes with Bob Ward seconding the motion. With all members in favor, the March 21st minutes were approved. REPORTS Marketing Report Gephart gave the floor to marketing chair Rick Strunk. Strunk informed members that originally the nominating committee voted that Anthony Carey serve as Vice Chair and Lee Pavao serve as Chair, however, with his term expired, it was decided to reconvene and vote again. Strunk reported that the nominating committee would like to nominate Dave Gephart as Chair on the grounds that he understands marketing and is willing to serve in that position. It is the committee’s hope that Lee Pavao, with his institutional memory, can serve this board in some capacity. Rick motioned to accept Dave Gephart as Chair and Anthony Carey as Vice Chair. Jim Ward seconded. All members were in favor and the motioned passed. Continuing with his report, Strunk referred members to the April 20th letter from Joe Crimmins on behalf of the Carolina Inn requesting that the Carolina Inn continue to have a seat on the Visitor’s Bureau’s board and that the Director of Sales and Marketing, Mark Nelson, serve in that capacity until a general manager is hired at which time he/she would fill the seat. Strunk informed that the Carolina Inn is he largest contributor of occupancy receipts. Paolicelli added that 30% of Carolina Inn guests stay at the hotel with out paying taxes. Tax law states that if the guest is considered there on UNC business then the guest is exempt from paying occupancy tax. In the past, elected officials have challenged this but to no avail. Paolicelli also stated that the Carolina Inn is asking for a permanent seat but it is her recommendation that they be subject to the same terms as the other seats. They are asking that Mark Nelson serve until a new GM is hired, which is projected to be July and would attend the August board meeting. It was specified that it is not a Carolina Inn seat but an OCLA seat that requires a hotel of 100 or more rooms. Dave Gephart requested a motion to approve the Carolina Inn DOS (Director of Sales) to serve through August. Anthony Carey expressed his concern stating that with a DOS on the board there could be misrepresentation. Carey explained that a GM has specific goals. Carey stated that he wants to leave the position open until they can get an agreement of support. Carey stated Joe Crimmins, if anyone, should serve on behalf of the Carolina Inn. Lydia Lavelle inquired if Joe knew anything about these concerns in which Paolicelli replied yes and that he would not be offended if the DOS could not be on the board. Anthony Carey continued stating that there would be an unfair advantage of hearing topics discussed in the meetings. Carey informed members that the DOS’s have a quarterly roundtable in which Nelson does not participate. Jim Ward questioned if the request was to fill the remainder of Creston Woods’ appointment. Paolicelli replied that it would not, it would be a fresh start and seat on board. Ward inquired if there is a place on the board for a non-voting seat specifically for the Carolina Inn. Anthony Carey commented that if that were the case, every hotel would want that. Jim Parker inquired on what the By-laws specify on that particular vacant seat. Paolicelli replied that it is represented by the OCLA (Orange County Lodging Association) and at the board’s discretion. Paolicelli commented that the seat should be filled beginning the fiscal year but can wait. A question was asked if the By-laws require qualifications with the answer being an OCLA hotel with over 100 rooms or more and an OCLA hotel with less than 100 rooms, however OCLA is no longer active. Paolicelli stated that ideally it would be a GM that resides in Orange County, however no current GM’s live in O.C. Gephart noted that it took 120 days to get Jim Parker on the board. Paolicelli would like to have a person experienced in group meetings and leadership. She continued stating that the Carolina Inn did a phenomenal job in regional and local events to draw tourism; bird houses on display, Fridays on the Front Porch, etc. Mike Gering inquired if there were any other applicants for this seat. Paolicelli replied that there was not and she originally wanted a hotelier in Hillsborough, but Anjan and Mina with the Holiday Inn Express have their hands full and don’t have the time. Mike Gering motioned to approve to wait on filling that seat. Lydia Lavelle inquired if UNC’s seat was for any particular department or position. Rick Strunk replied that it does not specify. Paolicelli added that Crimmons is very attuned to destination marketing. He proposed a marketing plan to go after opposing teams Anthony Carey modified the motion to defer to decide filling the OCLA seat and he would resurrect the OCLA group and invite Mark Nelson to offer opinions in the realm of a subcommittee which would then bring information back to this board through the GM. Jim Parker seconded. With all members in favor the motion was approved. Rick Strunk then informed members that Bob Ward is retiring from the EDC board and therefore not able to serve on the VB board and will render his seat vacant. And in conclusion of the marketing report, Strunk instructed board members to review the two summer media offerings (handouts) for future discussion. Budget & Finance Bob Ward, Finance Chair reported that occupancy receipts are still down however February was the third best month so far this fiscal year. Ward commented that hopefully May’s commencement would boost numbers. Ward continued reporting that the budget expenditures are where they should be and revenue is slightly below due to the collection process (receipts are due to the city and county on the 20th of the following month). Jim Ward inquired on the fund balance in which Paolicelli replied she would cover that in her report. Dave Gephart requested a motion to approve the budget report, Anthony Carey so moved with Lydia Lavelle seconding. With all members in favor the budget report was approved. Executive Directors Report Laurie Paolicelli reported that she met with Chapel Hill town manager Roger Stancil and Orange County manager Frank Clifton regarding the Visitor’s Bureau’s funding. Paolicelli then informed board members on the history of occupancy tax legislation for Chapel Hill and Orange County stating that in 1987 Chapel Hill began collecting 3%, which went to their general fund; legislation required at least 10% go towards tourism. Later, coalition groups recommended at least 60% should be spent on tourism. Following state trends at the time, previous Orange County management felt that the county should fund a visitor bureau with an original 1% tax and employee an Executive Director to manage it. Paolicelli continued, stating the success of the bureau prompted an added 1% tax increase and eventually another in 2008 bringing it to the current 3%. Paolicelli reported that Clifton questioned why Orange County is paying when Chapel Hill is the leading name in the branding. Stancil was open to the to what the county manager was stating but expressed concerns about the fund balance not being used and may be used for other purposes; if the three towns give to the Visitor Bureau how can Chapel Hill be sure it is not used for something else. Paolicelli informed the board that the Visitors Bureau has always been directed to reserve 15% of the budget by state statute and Paolicelli stated that she has always operated this way in the past in case the bottom fell out. However, Clifton believes we are not subject to this legislation and that it applies to TDA’s (Tourism Development Authorities). Paolicelli reported that it is Clifton’s intention to use the fund balance for Orange County debt. Paolicelli commented that maybe the VB should have spent down the fund balance. She also stated that if the fund balance is less than $200,000 would he [Clifton] take it all or just 15%; just don’t know at this point. On another note, the County has asked for all departments to cut 15% from their proposed 2010-2011 budget. Paolicelli reported that she is proposing to cut Jennings, Tarheel Sports Marketing, and not hire a sales person. Paolicelli stated she has been questioned on why, if the hotel supply has grown 40% since inception does the VB still employ only one sales person. She continued stating that it is a tough question to answer; currently the VB has no one to prospect. Paolicelli mentioned that research, other than the Hillsborough hotel metrics, would also be cut. Paolicelli spoke on the independence issue of the Bureau spinning off as an independent stating that in the country, 2/3 of tourism authorities are independent and 1/3 are government. Independent tourism authorities generally are located in areas with large options for private revenue streams. Paolicelli stated she does not believe that can happen here, as it would impact the local chambers and downtown partnership, which already rely on private funding and service tax. Paolicelli informed that board that she would present a revised budget at the next meeting. Paolicelli then commented that she would hold off on the summer media advertising for now. Continuing with her report, Paolicelli stated that she was asked to have the board consider dialog of absorbing the Orange County Arts Commission with one staff member and portal for state grants, which is matched by Orange County. The question would be if the Visitor Bureau supports the arts now – would it be feasible to absorb the Arts Commission division. And to consider that the arts do not fill hotel rooms. Dwight Bassett suggested that Paolicelli contact Butch Kisiah director of Chapel Hill Parks & Rec., to see what they are doing as an arts commission. Mike Gering commented that he wants to pursue a resolution on the distribution of the fund balance to keep from wondering each year if it will be available. Lydia Lavelle inquired on the new interpretation of the 15% fund balance. Paolicelli replied that Frank Clifton has directed the county’s finance director and attorney to look into it. Bob Ward questioned whether it was the norm for visitor bureaus to have arts as a functional part of the operation. Paolicelli replied that the president of the _____association of CVBs is projecting that arts is the current and upcoming trend. Other counties who have arts groups have asked for additional tax percentage to go straight to them. Jim Ward asked Valerie Foushee if she could provide any insight on the current situation in which Valerie replied that the BOCC has not had any discussions pertaining to the merge of divisions nor have they received any recommendation. Valerie noted that it is all just part of the normal budget process. Paolicelli concurred that she is only reporting to update the board. Jim Ward commented that may be there is a lack of understanding about the Visitors Bureau’s branding and questioned if there were anyone who might be able to explain to the county manager how the decision came about to lead the branding with the name Chapel Hill. With that, Laurie Paolicelli informed members that in 2006 a research study was done on 10000 people who were asked to identify the three towns, Chapel Hill, Carrboro and Hillsborough. The three towns were recognized, however Orange County itself was not recognized as a destination in North Carolina. Paolicelli then noted that the county manager didn’t have a problem with the branding, just funding issues. Dave Gephart inquired if this was appropriate to vote on. Paolicelli commented that Barry Jacobs, in our last meeting, requested communication from the board on our standing. Gephart motioned to communicate to the BOCC on the 15% fund balance. Valerie Foushee requested clarification on the vote – whether it was for the 15% fund balance or the 15% budget cut required of all departments. Gephart replied it was for the Visitors Bureau’s fund balance. Foushee commented that economic development would need financial support now and in the future and the county manager may bring back to the BOCC in the future; the BOCC is considering all options. The motion was dropped Dwight Bassett commented that the conversation needs to be elevated at a national level to the new reality that we are not growing income for local governments. Bassett stated that it would be 5-8 years before we see a dramatic shift. Foushee agreed that what will come out of this would be the new norm. Anthony Carey commented that if they [BOCC] cut funds from the Bureau then revenue could not grow. The hotels are the revenue generators and there is a serious need to grow revenue. He added that the county manager needs to understand that the Visitor Bureau is key in growing revenue. Paolicelli commented that Ashville passed a 1% tax about a year ago for a tourism product development fund and is managed by officials, chambers and the visitor bureau. Dave Gephart commented that Mecklenburg is at 9%. (8%)? Dave Gephart commented on the proposal to independent status- TDA v. county department. Mike Gering commented that he does not understand the concern stating that in Hillsborough the 1% meals tax (earmarked for tourism related services i.e. their downtown streetscapes plan) is given to the Alliance on a contract basis as legislation dictates. Gephart commented that a ‘contract’ is negotiable in which Mike Gering replied that it has to be renewed to somebody. Concluding her report, Paolicelli commented that this is a valid conversation for future discussion; the occupancy tax may be diverted to other uses. Gering commented that the contract has to be clear-cut where the tourism board makes the decisions. NEW BUSINESS Dave Gephart reported that the NHL All-Star Game would be held in Raleigh in 2011 and would it be feasible to create an NHL focus in Orange County- at the Sportsplex for instance. Paolicelli added that the Raleigh CVB invited Orange County and Durham to participate. Paolicelli stated she would have more to report at the next meeting. Paolicelli informed that Federal Realty, managers of Eastgate Shopping Center are tourism driven and will be speaking to the board in the fall. Paolicelli also noted that a relative of Carlo owns Carmine’s at Eastgate. OLD BUSINESS No old business to report ADJOURNMENT With no other business to discuss, Dave Gephart requested a motion to adjourn the meeting. So moved by Mike Gering and seconded by Jim Parker. With all members in favor, the meeting was adjourned at 9:38 am. _______________________________ _________________________________ Minutes Drafted by: Minutes Accepted by: Laurie Paolicelli, Executive Director Dave Gephart, Chair ___________ _____________________ _________________________________ Date Date