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Chapel Hill/Orange County Visitors Bureau Board
June 16, 2010
The Chapel Hill/Orange County Visitor’s Bureau Board met at
The Aloft Hotel 1001 South Hamilton Rd. Chapel Hill
Host
Rob Cote, General Manager
Board Members Present: Mike Gering, Lee Pavao, Dave Gephart, Rick Strunk, Jim Norton, Jim Parker, Lydia Lavelle, Greg Overbeck, Jim Ward, Dwight Bassett
Members
Absent: Barry Jacobs, Valerie Foushee, Bob Ward, Laura Morgan, Anthony Carey, and James Harris
Staff Present: Linda Ekeland and Tina Fuller
Staff Absent: Laurie Paolicelli, Brad Broadwell
Special
Guest(s): Lee Perry, East West Partners’ East 54 Project Manager
CALL TO ORDER
Chair Gephart called the meeting to order at 8:06 a.m.
INTRO AND WELCOME
Gephart introduced Lee
Perry, Project Manager for East 54. Mr. Perry spoke about the East 54 mixed use project, stating that they are in the finishing stages of Phase II completing the initial development
of condos, retail space, office space and hotel. Mr. Perry stated that there is approximately 130 condos total ranging in price from the high $200,000 for 700 sq ft to 1.25 million for
2500 sq ft of space. In Phase I, all 75 condos sold originally, however some were lost ending with 61 of 75. In Phase II, 30 of the 51 condos have sold. Mr. Perry stated that there is
115,000 feet of office space and noted that lease sales have picked up in the last 90 days. Perry informed members of the retail businesses signed on which includes Kerr Drug and at
13,000 sq ft making them their largest tenant. Perry stated that Kerr has a partnership with UNC’s School of Pharmacy. Other leaseholders include four restaurants; Saffron Indian Cuisine,
Piola (Italian), Archira Thai and Sushi, and coming in September, Streets Big City Deli – a New York/Chicago style Deli; two women’s stores and a chocolatier. Mr. Perry stated that 90%
of Phase I is leased and 78% of the entire property. Perry also informed members on the affordable housing at East 54, available through Community Home Trust noting that 1- bedrooms
are going for $75,000 and 2- bedrooms for $85,000. Jim Ward commented
that for every sale a 1% transfer fee is collected by the seller and awarded back to the Home Trust, which is used to support the affordable units within that development. In conclusion,
Mr. Perry informed board members that East 54 has obtained a Gold rating for the LEED Neighborhood Development category. At the time there were only 7 in the world and 2 in the US awarded
with that rating. Perry explained that the buildings themselves are also rated, some Gold and some Silver for the New Construction category. Perry stated they feel it is a selling
point advantage.
Chair Gephart then introduced Rob Cote, General Manager of the Aloft. Gephart informed board members that he was a member of the Winston-Salem CVB board. With that
Mr. Cote welcomed members to the hotel. Mr. Cote explained that this is his second Aloft, the first being in the Charlotte’s EpiCenter. He further explained that Aloft adopted the W
Hotels concept of innovative design but on a smaller scale; rooms are techno functional, the names Remix, Splash and Recharge take the place of the norm for lobby, pool and fitness center.
Mr. Cote reported that occupancy has been averaging 40% and June is climbing. The Chapel Hill Aloft is the 40th in this Starwood chain of hotels, has 130 rooms and 1600 sq. ft. of
meeting space. Mr. Cote expects UNC will be a large part of their business. Mr. Cote stated that they also are working on their LEED certification. Concluding his introduction to the
Aloft, Cote offered board members a tour of the hotel after the meeting.
APPROVAL OF MINUTES
Dave Gephart requested a motion to approve the May 21, 2010 minutes. Lydia Lavelle so
moved to approve minutes with Jim Ward seconding the motion. With all members in favor, the May 21st minutes were approved.
REPORTS
Marketing Report
Mr. Gephart informed members
that committee reports would be given in the August meeting and reminded that there is no meeting in July.
Budget & Finance
Chair Gephart gave the floor to Tina Fuller for a budget
and finance report on behalf of Bob Ward who is on vacation.
Fuller reported that the Sheraton has paid some of their outstanding occupancy taxes and is paid through March. She also
reported that occupancy taxes for May and June are still due in this budget year and if the county collected an average of $56,353 for each month, the revenue budgeted would be reached.
On the budget report, Fuller reported that there would still be some activity in several accounts before year-end and for the most part at status quo for this time of year.
Dave Gephart requested a motion to approve the budget report, Greg Overbeck so moved with Rick Strunk seconding. With all members in favor the budget report was approved.
Gephart
gave the floor to Linda Ekeland for a sales update. Ekeland informed members that she attended the DMANC Annual meeting in Shallotte NC. She reported that the VB won four awards; platinum
for the annual report, platinum for the IGLTA concept, Gold for March Meeting Madness campaign and an achievement award for the Food Lovers Guide.
Ms. Ekeland continued, reporting that
she has been working with Jennings on updating her meeting planners page on the web site. She stated that they will add several categories; ‘7 reasons to hold your meeting here’, ‘how
the visitor bureau can help’, and ‘planning your wedding’.
Ekeland informed members that end of fiscal year bookings and leads are up but attendance is down. She is optimistic that
next year will be better. A new meetings facility will be opening in Chapel Hill at 420 Hillsborough Street. Formally a sorority house, will now host up to 150 people. Jim Ward asked
about catering. Ekeland replied that they have two kitchens, one that is commercial/professional grade and could be utilized for catering. Ekeland reported that they plan to target UNC.
Ekeland
reported on her meeting with John Short of N.C. Gay Pride and their plans to offer a special weekend in Chapel Hill, the same weekend of the parade. Ekeland is working with him in obtaining
hotel space. They are marketing to food lovers and if successful, they plan to make it a yearly event.
Executive Directors Report
In Laurie Paolcielli’s absence, Mr. Gephart referred
members to the Board of County Commissioners letter (attachment to Laurie’s report). The letter, addressed to Chapel Hill Mayor, Mark Kleinschmidt, explains the transfer of the Arts
Commission division to the Visitor Bureau for funding and coordination. It also informs of the appropriation of $230,000 from the Bureau’s reserve account to support a small business
loan guarantee program by the County through the EDC. And it is at the suggestion of the BOCC to schedule a meeting date for discussion on how the County and Town of Chapel Hill can
move forward where tourism is concerned.
Gephart also mentioned that the Bureau is working with Our State Magazine to produce a 12-page insert for August that focuses on the Arts.
NEW
BUSINESS
No new business discussed
OLD BUSINESS
Mr Gephart gave the floor to Mike Gering for an update on the Town of Hillsborough. Mr. Gering informed members of the lawsuit between the Town of Hillsborough and the
County in re to building codes and parking requirements. The dispute is in the County’s belief that they are exempt from Hillsborough town ordinances and their original agreement, to
meet parking ordinance requirements by operating a shuttle for employees to a 125-space, off-site, park-and-ride lot. No alternative plans offered by the county substantively increase
the number of parking spaces for the expanded courthouse, with the exception of a proposal to turn most of River Park into a gravel parking lot. Because the county has not met the site
plan approval's original requirements or obtained approval for an alternative plan the town cannot issue a Certificate of Occupancy, which would allow the courthouse to be legally occupied.
Gering stated that court costs are an added expense for the Town of Hillsborough that the County doesn’t have just to have the County comply with their original agreement and town ordinances
that everyone else has to follow. The next court date is in July. Gering referred the members to the Town’s website for complete details on the issue.
Jim Ward informed members that
the Town of Chapel Hill awarded the Visitor Bureau $150,000 in funding for budget year 2010-2011. Staff members gratefully thanked Ward for his contribution in obtaining the funding.
This is a $20,000 increase over last budget year.
Dwight Bassett informed members that the Chapel Hill‘s EDC department plans to request the Downtown Partnership and the Visitor Bureau
to attend their annual planning and budget meeting.
OTHER BUSINESS
Lydia Lavelle informed Bureau staff of a new bike route map issued by the D.O. T.
ADJOURNMENT
With no further business
to discuss, Dave Gephart requested a motion to adjourn the meeting. So moved by Mike Gering and seconded by Greg Overbeck. With all members in favor, the meeting was adjourned at 8:55
am.
_______________________________ _________________________________
Minutes Drafted by: Minutes Accepted by:
Laurie Paolicelli, Executive Director Dave Gephart, Chair
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