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HomeMy WebLinkAboutCH-OCVB minutes 021710Minutes Chapel Hill/Orange County Visitors Bureau Board February 17, 2010 The Chapel Hill/Orange County Visitor’s Bureau Board met at The Arts Center, Main Street in Carrboro Board Members Present: Lee Pavao, Rick Strunk, Bob Ward, Dave Gephart, Jim Norton, Anthony Carey, Jim Parker, Lydia Lavelle, Laura Morgan, Mike Gering and Dwight Bassett Members Absent: Jim Ward, Jim Norton, Barry Jacobs and James Harris Staff Present: Laurie Paolicelli; Linda Ekeland; Tina Fuller and Brad Broadwell, EDC CALL TO ORDER Lee Pavao, acting as Chair, called the meeting to order at 8:05am WELCOME Pavao introduced Ed Camp, host for today’s meeting and Executive Director of the Arts Center. Mr. Camp welcomed everyone. He informed members that he began with the Arts Center as Executive Director in August of 2009. Camp informed that the Arts Center is 20,000 sq feet and has two main galleries. On a yearly basis, 550 art classes are held as well as an average 75 concerts and 12 children/family shows. Camp went on to say that 75 instructors teach here and there is an after-school program. Camp stated that the Arts Center is an important part of Carrboro and Chapel Hill and that it is fun to be here [Arts Center]. At this time Camp opened for Q&A: Lydia Lavelle inquired about the seating capacity of the theater, Camp replied 100 Laurie Paolicelli inquired on how many out-of-towners are thought to come in for shows. Camp reported that for the recent Rickie Lee Jones concert, fans from as far as 1000 miles away came. Camp estimated about 40% of customers are from outside the Triangle. He also mentioned that the Arts Center has partnerships with the Courtyard and Residence Inn for out of town guests. Paolicelli noted that the new hotel in Carrboro will also drive tourism for Carrboro’s evening economies. Paolicelli also noted that charitable giving to non-profits such as art organizations has declined with global economic woes. She also mentioned that Ed Camp and the Arts Center is re-branding and putting new energies into 2nd Fridays. Camp informed members of the upcoming 35th anniversary art street fair around Mothers Day. APPROVAL OF MINUTES Lee Pavao requested a motion to approve the January 17, 2010 minutes. Dave Gephart so moved with Bob Ward seconding. With all members in favor, the minutes were approved as submitted. REPORTS Marketing Report Rick Strunk informed members that the marketing committee could not meet as planned due to several high school athletics association and other events taking place. He explained that the group will meet in early March and when they do meet, they will discuss the status of the Jennings contract, whether on-line vs. print marketing is working best; the Hyland Group’s contract and marketing plans surrounding commencement. Paolicelli noted that the County recommends due diligence for large contracts, issuing RFPs every 3 years. Strunk added that retention in an agency is important; by the time you ramp-up, educate a new agency and pay for new creative, new materials, meetings, servers, etc., and that since we are happy with Jennings and in a down-economy, can we extend the contract for one year should the marketing committee recommend this action to the full board? Paolicelli confirmed that she would check with county purchasing before the marketing committee meeting. Pavao stated that with the transition of new board members, he encouraged Strunk—as marketing committee head-- to reconvene the nominating committee. Rick Strunk so moved with Greg Overbeck seconding. With all members in favor, the nominating committee was voted to reconvene. Budget & Finance Bob Ward reported that the budget was uneventful, with the typical reporting measures showing tax collections behind two months. He also noted a lag in one hotel’s occupancy receipts and reported the County’s tax assessor’s office is aware of it and is ultimately responsible for collecting taxes; this was not something the visitor’s bureau gets involved with. Ward informed that funds could undergo a “line item transfer” if necessary. Ward reported that no fund balance has been used this fiscal year even though the visitor’s bureau board approved $30,000 for advertising, Hyland Group and on-line direct mail. Dave Gephart asked if we decided to use the $30,000 out of fund balance would it still need to go before the County Commissioners for approval. Laurie replied that it would. Gephart suggested informing new board members of what the ‘fund balance’ is. Paolicelli replied it is the money accumulated from surplus of past budget years and that the Visitors Bureau fund balance was currently at approximately $300,000 or 1/3 of the total operating budget. Lydia Lavelle asked if the occupancy receipt amounts were available for each hotel. Paolicelli replied that we don’t reveal specific hotel proprietary information. Paolicelli went on to explain that in 1991 state legislation allowed Orange County to levy up to a 3% tax and Chapel Hill had the same rights. However there were no uniform provisions for usage, only guidelines. Chapel Hill levied 3% from the start but most of their collections are allocated to their general fund. Orange County in the beginning only levied 1% and started a Visitors Bureau in 1992. The county eventually increased it to 2%, and then in July 2008 increased it to 3%. Paolicelli informed that Carolina Inn is the overall leader in occupancy receipts even with their University-related tax exemption. Discussion then turned to Hillsborough’s plans to ask for legislative authorization to charge a 3% occupancy tax. Mike Gering reported that there are strict requirements now for the use of occupancy taxes and Hillsborough was receiving some opposition at the state level. Paolicelli agreed stating there are coalitions out there safeguarding the use and distribution of these taxes. Paolicelli added that they are more guidelines than law. Laurie stated the VB could help with Hillsborough’s negotiations. Revenue generated from the 3% tax on current hotels in Hillsborough would be about $55,000. There was mention of possibly having a B&B in the town of Chapel Hill in which Dwight replied that it was doubtful, as it has been voted down twice. One reason was the fears that residents had of increased vehicular and other traffic necessary to service a hotel. Paolicelli stated that Chapel Hill collects close to one million in occupancy taxes with at least 13% going to the visitor’s bureau but our goal is more. However Chapel Hill does give to tourism-related ventures that support tourism and they are looking at the Trolley idea. Paolicelli briefed the board on her presentation to town council recommending a trolley. Paolicelli stated that Jim Ward remains an avid supporter of tourism as a clean and green form of economic development and that he was an excellent liaison for the VB to Chapel Hill Town Council. Lee Pavao requested a motion to approve the budget as presented. Dave Gephart so moved and Bob Ward seconded. With all members in favor the Budget report was approved. Executive Directors Report Paolicelli gave a brief history on the branding of Orange County stating that in 1992, Orange County was branded as its namesake and the County felt that the Visitor Bureau staff would put ‘heads in beds’. A board was appointed with seats from various organizations in the county. Eventually, after research showed that 10,000 previous hotel guests did not associate the name of Orange County as destination where they visited, Orange County was re-branded as Chapel Hill with Carrboro and Hillsborough. Recently the VB heard from business owners, that Carrboro wants more presence. Paolicelli assured that the Visitor Bureau wants to spotlight all towns and stated that it is challenging to promote growing tourism assets such as history, food, athletics, museums, shopping, events and hotel packages with limited marketing dollars. . Laurie stated that the VB staff meets with Hillsborough tourism leaders and sits on all tourism boards. The VB has an arsenal of photos, and information for each town in Orange County and is a solid collaborator. Mike Gering stated he encourages the Alliance for Historic Hillsborough to coordinate programs with the Visitor Bureau and he felt that the town of Hillsborough had a great working relationship with the Visitors Bureau; one that was constantly evolving. Dave Gephart added that Hillsborough does not have the destination hotels like Chapel Hill and those visitors to Chapel Hill end- up in Hillsborough eventually but agreed that as far as tourism goes, Chapel Hill was the main port of entry for overnight guests. Sales Report Linda Ekeland reported that Susan Reda has been hired temporarily to help target the Duke and association markets and RTP business. She also reported Rob Cote, the GM for the new aloft hotel, has started submitting bids to the visitors bureau and they were close to hiring a full staff including a sales department that would focus on filling rooms in a down economy. Ekeland informed that she made a presentation at the 2010 NC Fire & Safety conference in Ashville as a preview and attendance promotion stop for their upcoming 2011 conference here in Chapel Hill at the Sheraton. Ekeland reported that the phones are ringing and sales has picked up. In conclusion she turned it over to Anthony Carey for an update on hotel activity. Carey, the lodging representative on the visitor’s bureau board, noted that Carrboro and Hillsborough could benefit from associations who bring their conventions here for 2, 3 and 4 days with day-trippers taking walking tours or seeking nightlife. He confirmed that the Siena Hotel and other hotels were a big fan of the Walk Carrboro brochure. Bob Ward inquired on meeting space at the Aloft. Ekeland replied 3000 sq ft. She also noted that the projected opening date is April 15th. Paolicelli confirmed that a summer board meeting would be held there. UNC/Hillsborough/Carrboro reports Laura Morgan reported that John Grisham would be the guest speaker at UNC’s commencement this year. She also reported that there is a new student body president and on March 4th there will be an Eve Carson garden dedication at Polk Place. Morgan also informed that Memorial Hall has a new schedule out. Paolicelli inquired if the student body president would be interested in speaking to the board in which Morgan replied yes. Mike Gering reported that DOT has removed plans for the Elizabeth Brady Road bypass. Hillsborough may loose the 30 million earmarked but that is not definite yet. The train station task force will have an input session on March 30th and will be presenting a few designs. The proposed station would be located on the Collins property where the HYAA ball fields are. Other Hillsborough business included the website www.visithillsboroughnc.com as up and running, Phase I of Riverwalk is complete and Phase II is delayed due to funding however the design should take place this year. The Wayfinding project, a 2 ½ year work in process, is priority this year. The new library is open and has meeting space and Social Services moved into the old Walmart building. Gering updated the board on the county’s work with a steering committee that is looking at a possible heritage center and genealogical repository for Hillsborough. NEW BUSINESS Paolicelli reported that the County Manager is looking to reduce the total number of advisory boards for the county, as reported by the Chapel Hill Herald. She was unclear as to how the visitor’s bureau would be impacted but noted that there was talk of a possible visitors bureau restructuring in the future. Paolicelli stated that she was communicating with the county manager. Pavao asked Brad Broadwell for an update and Brad said it would be fruitless to speculate at this early stage and that he was confident a myriad of discussions were taking place but nothing was definite. Broadwell noted that the County has a five (5) million dollar shortfall this year. In conclusion, Pavao stated that based on the county’s history with the visitors bureau he was certain that either the manager or the commissioners would address the board about any changes to the bureau’s structure before decisions were made that had a human and financial impact. OLD BUSINESS No old business ADJOURNMENT With no other business to discuss, Lee Pavao requested a motion to adjourn. Dave Gephart moved to adjourn and Bob Ward seconded. With all members in favor, the meeting was adjourned at 9:20 a.m. _______________________________ _________________________________ Minutes Drafted by: Minutes Accepted by: Laurie Paolicelli, Executive Director Lee Pavao, Acting Chair ________________________________ _________________________________ Date Date