2022-06-27 - Agendas - FinalFayetteville Advertising and
Promotion Commission
June 27, 2022
Location: Fayetteville Town Center, 15 W. Mountain Street
Commissioners: Todd Martin, Chair, Tourism & Hospitality Representative
Katherine Kinney, Tourism & Hospitality Representative
Chrissy Sanderson, Tourism & Hospitality Representative
Elvis Moya, Tourism & Hospitality Representative
Andrew Prysby, Commissioner at -large
Sarah Bunch, City Council Representative
Mark Kinion, City Council Representative
Staff: Molly Rawn, CEO
Agenda
Call to order at 2:00 p.m.
II. Old Business
A. Review and approval of May 2022 minutes.
III. New Business
A. CEO Report, Molly Rawn. An executive overview of the previous month's activity,
issues and opportunities facing the organization.
B. Financial Report, Jennifer Walker, Vice President of Finance
C. Marketing Report:
i. Hazel Hernandez, Vice President of Marketing and Communications
ii. Mike Sells, Sells Agency
D. Vote. Budget Revision. Adopt the 2022 Revised Operating Budget. Memo attached.
E. Vote. Clinton House Museum budget allocation transfer. Approval of the transfer of the
remaining budgeted amount allocated to Clinton House Museum operating expenses
to the Clinton House Museum Foundation. Memo attached.
F. Vote. Agreement with Art Court, LLC. for a three-year lease of Dickson Street Art Court
for $1.00. Lease Agreement attached.
IV. Adjourn
Fayetteville Advertising and Promotion Commission
Minutes May 23, 2022
Fayetteville Town Center
Commissioners Todd Martin, Chair, Tourism & Hospitality Representative
Present: Elvis Moya, Tourism & Hospitality Representative
Chrissy Sanderson, Tourism & Hospitality Representative
Andrew Prysby, Commissioner at -large
Sarah Bunch, City Council Representative
Mark Kinion, City Council Representative
Commissioners Katherine Kinney
Absent:
Staff: Molly Rawn, CEO; Jennifer Walker, Vice President of Finance;
Hazel Hernandez, Vice President of Marketing and Communications
Chair Martin called the meeting to order at 2:00 pm.
Old Business
A. Chair Martin asked commissioners to review and approve the April 2022 minutes.
Commissioner Sanderson made a motion to approve the minutes with
Commissioner Prysby seconded. After asking for any objections and hearing
none, Chair Martin stated that the minutes were approved.
B. Vote. Amendment to the by-laws allowing for virtual meetings and virtual
attendance at in -person meetings.
In accordance with the by-laws, the proposed amendment was presented for the
first time at the April meeting. Chair Martin read the proposed changes to the by-
laws and asked if there were any questions or comments. Commissioner Bunch
asked about the origin of the proposed number 3 as the maximum number of
virtual meetings and CEO Rawn said it was selected as it represented 1/4 of the
total number of meetings. Commissioner Bunch also asked about the quality of the
technology available for hybrid meetings and CEO Rawn said the equipment at the
Fayetteville Town Center will be upgraded and she feels confident in this approach
and in her team's ability to deliver a good experience.
Chair Martin asked for a vote and it was approved unanimously.
III. New Business
A. CEO Report. An executive overview of the previous month's activity, issues and
opportunities facing the organization. Complete memo attached.
CEO Rawn spoke about upcoming events for the commission. She updated the
group on the activities of the Experience Fayetteville sales team which included a
sports conference where VP of Sales Tina Archer -Cope had numerous
appointments with event organizers.
While May's First Thursday event was rained out, we are looking forward to June's
event next week entitled "In Bloom."
May is bike month and we've been doing complimentary bike valet at restaurants
located close to a bike trail on Tuesday evenings and will be closing out the month
at Leverett Lounge. EF is also hosting a Bike Friendly Business Boot Camp for
businesses.
The Joe Martin Stage Race was this last weekend with the Experience
Fayetteville Criterium yesterday. Rawn was very pleased to see elevated
community and spectator engagement at the start and finish lines. Rawn
highlighted that we will have held 4 professional cycling events of varying
disciplines (road, gravel, mountain and cyclo-cross) within the first half of this
year.
The Fayetteville Town Center has hosted 13 events since the commission last
met, one being a two -week rental from the Fayetteville High School. FTC has
been working with the city to take part in city's Energy Savings Performance
Contract which may allow certain upgrades such as replacing some HVAC units,
weatherization, and possibly roof upgrades in a cost saving manner.
The Clinton House Museum continues the work of separating itself financially from
the A&P and has hired Kristi Andrews to staff the museum on Thursday and
Friday from 10 am to 4. Rawn expects there to be a staffer announced for
Saturday soon.
Clinton House Museum board president Steve Smith, Arkansas Department of
Parks, Heritage and Tourism's Secretary Stacy Hurst and Rawn met with the
University of Arkansas, the owner of the house, and were granted a reprieve from
monthly rent obligations through 2023.
She informed the group that the desire to receive consultation on future purposes
for the Walker Stone House may possibly be handled by a project Britin Bostick
with the city of Fayetteville is coordinating involving a consultant on a project with
an overlapping scope.
Rawn spoke about our current HMR and occupancy numbers, stating that we
were at 70% occupancy for April, up 11 % from April 2021 and year to date we are
up 6% in occupancy. Furthermore, our ADR, average daily rate, is up 32%
compared to April of 2021. Lodging collections are up 28% compared to last
month and 36% compared to the same time last year. Dining collections are up
24% over last month but we do show a small decrease compared to April 2021.
She stated she is not concerned over this decrease but will be watching future
numbers. She thanked the city of Fayetteville's accounting team and noted that
they are installing and utilizing a new software system which will help show us
more detail on collections in the future.
B. Financial Report. Jennifer Walker, Vice President of Finance
VP Walker said that the agenda packet contained April financial statements and with
being one-fourth through the year, the target revenue and expenditure level is 33%
We are 2% below target for revenue and 7% below target for expenses. We have a
very healthy financial position with a current operating net income amount of
$283,000. We have grant revenue that we have not received which will make up
most of that 2% deficit in revenue. Looking at our HMR revenue, seasonally
adjusted, we are about 2% ahead of target in revenue. The balance sheet shows
cash and investments are $4.5 million and our unearned revenue is approximately
$150,000 - this is a good sign showing upcoming bookings at the town center.
C. Marketing Report. Hazel Hernandez, Vice President of Marketing and
Communications
Hernandez began by highlighting the Moose Jaw US Pro Cup in April where we
had numerous stories by media and a great Instagram live, with lots of interaction,
with Ty Caddy and two athletes. She also highlighted a new publication coming
soon for us, a pocket guide to Fayetteville, which will be helpful for both cost and
ease of distribution. The pocket guide will have a QR code that will take visitors to
the full Visitors Guide on our website.
Fayettevan will be activated in both NW Arkansas and Arkansas to create
awareness and we are working on doing a ride -along interview to highlight Vanny.
It's been at several events since it arrived more than a month ago.
Hernandez gave updates on our social media accounts: Facebook had increased
reach and visits but new followers were down 13% compared to new followers last
month, with total followers at 36,652. Instagram saw a decreased page reach but a
strong number of followers at 58,578 — one of the largest Instagram accounts in
the state compared to other DMO's. Total referrals from our social sites to our
website are up 163%. Commissioner Moya suggested the idea of asking a
restaurant to do a take over for a day to show off their new dishes, get interviews
from customers, etc.
Hernandez also talked about the work we are planning do in the motorcycling
realm, with adventure riding being a prime target to focus on. With that, Hernandez
turned it over to Mike Sells with Sells Agency.
Mike Sells talked about the re -vamping of our Experience Fayetteville website.
Sells said in 2017 that organic traffic made up 36% and that number jumped to
57% in 2021. Our new strategy for the website will be blog articles with anchor or
"evergreen" content. Mike mentioned that having Jerrika Longueville as our Digital
Marketing Coordinator was a "game changer" and she has created a lot of content
for our site. We have also added an event calendar which is now the 51" most
visited page on the site. Commissioner Prysby asked if we are featuring social
media on our website. Currently the site is featuring our own social but not others.
He suggested staff look into adding other users' content who use our tags.
Sells stated that current projects include updating the Eat section of the site,
activating our Fayettevan PR Plan, doing photo shoots for fresh content and re -
purposing the Cyclo-Cross website to the US Pro Cup.
Sells also mentioned some travel industry trends and insights - traveling with pets
is very popular and so we are looking to highlight our pet friendly activations and
businesses. Additionally, 77% of travelers are more conscious of supporting small
local businesses while traveling and sustainability incentives while traveling are
also important.
D. Vote. Downtown Initiative. A recommendation to allocate $100,000 to hire a
director of downtown initiatives, in association with the Downtown Fayetteville
Coalition. Memo attached.
CEO Rawn opened this up by saying that this has been a need and a topic since
she arrived almost 6 years ago and that Fayetteville needs to have a strong
downtown organization.
Fayetteville Downtown Coalition, formally the Dickson Street Merchants, is an
organization that has branched out to cover a broader area than just Dickson
Street and has been working hard to establish a thriving organization and it is a
good time to add paid staff to propel their efforts. Rawn is proposing to incubate a
staff position as a line item within Experience Fayetteville's personnel budget. She
mentions that this should not just be an Experience Fayetteville expense, but could
be shared with the city of Fayetteville and she knows that there are city staff who
are in support of this growth. Rawn mentioned that Fayetteville is one of the only
large cities in Arkansas to not have a dedicated downtown organization. Chair
Martin, who is involved in the Fayetteville Downtown Coalition, said the coalition
saw the need to expand the footprint of this group to expand much further than
Dickson Street and having dedicated personnel will be vital to moving this initiative
forward.
Commissioner Moya asked how many merchants would be involved in this
organization and if this person would give a monthly update to this commission like
other EF departments and finally, has the city of Fayetteville voiced that they will
give financial support to this initiative?
Chair Martin answered the question about merchants by stating the approximate
geographic area of the downtown area encompasses approximately the same area
as our Outdoor Refreshment Area. Rawn stated yes, this person would be giving
updates on this initiative to give to the commission. She said that the city has not
allocated any funding and the city will be formally asked for financial support to be
considered when the city's next budget cycle begins. If the commission approves
this, Experience Fayetteville would be voting to make this investment and hire this
person before the city or other potential supporters would be getting involved.
Rawn said that before we committed to more years of funding, we would want to
see commitment from other entities. Commissioner Sanderson asked if $100.000
will be enough to fill this roll and Rawn said she thought $100,000 in this fiscal year
would be enough to give this person the tools they need.
Commissioners Kinion and Bunch who also serve as City Council members stated
that as this request and program goes before the City Council, we will need to be
cognizant that each city council member represents different sections of the city
and members may ask what about attention for Uptown or Midtown, etc. Rawn
acknowledged those were all good points and to be expected. She stated there is
a uniqueness and significance that downtowns bring to tourism as economic
drivers and that a thriving downtown brings benefits to the city overall.
After more discussion, Chair Martin asked if he could call for a vote.
Bunch asked if the job description was complete or in progress and how it would
be advertised. CEO Rawn said that it would be posted internally, on Indeed, our
own website and social media. For this job, we will also post on the International
Downtown Associations' job portal. Commission Bunch also asked about the hiring
process and Rawn said she would like to put together a search group that would
include stakeholders such as the Fayetteville Downtown Coalition. Rawn stated
the overall goal of this project and position is to found and establish an
independent downtown organization with its own by-laws and structure.
Commissioner Kinion volunteered to make a motion (as clarified Chair Martin) for
the A&P Commission to authorize the creation of the director of downtown
initiatives position and allocate $100,000 to the effort which was seconded by
Commissioner Sanderson. Chair Martin called a roll call vote and it passed
unanimously with Chair Martin abstaining from the vote as he also sits on the
board of the Fayetteville Downtown Coalition.
E. With no further agenda items, Chair Martin called for a motion to adjourn the
meeting. Commissioner Kinion made the motion with Commissioner Sanderson
seconding it and the meeting was adjourned at 3:40 pm.
Minutes submitted by Amy Stockton, Director of Operations, Experience
Fayetteville
Fayetteville Advertising and Promotion Commission
CEO Updates
June 2022
Commission
What to expect in the coming months:
• July: 2021 Audit report from BKD, New process for distributing tourism incentives
• August: RFP's issued for Advertising Agency of Record, IT provider
• TBD Quarter 3: Presentation from Theatre Squared
Marketing
• Experience Fayetteville marketing staff went through software training with our new
research partner, Buxton. Staff will use Pride as a test event for their first report.
• New Quarterly Consumer/Leisure newsletter will go out Wednesday, June 29.
Distribution list includes anyone who's signed up for the newsletter on the website,
requested a visitor's guide as well as our partners.
• Actively engaging NWA Spanish speaking media. Staff has participated in several
interviews and a Facebook live with Univision to talk about First Thursday and setting up
an interview to discuss Experience Fayetteville's role within our community and how we
can be a resource.
Experience Fayetteville Sales
• The Experience Fayetteville Sales team serviced a total of 12 events across multiple
properties and venues in May and early June that included providing over 500 welcome
bags, conference registration assistance, customized group Itineraries and onsite event
assistance.
• Shareholders, May 30, June 3. We worked alongside Walmart Shows and Events team
and ROARK to provide a Fayetteville "VANNY" activation at the 2022 Walmart
Shareholders /Associate Week with over 1,000 Shareholder specific lapel pins given out,
24 countries represented, 3,500+ hotel room nights secured and over 40,000+ meals
ordered.
• We participated in the State of Athletics lunch through the Fayetteville Chamber as a
sponsor for the event connecting our team with vital opportunities to engage with local
businesses and the University of Arkansas Athletics department. (June 7)
• Actively seeking more STEM (Science, Technology, Engineering and Math) events in
Fayetteville to engage our youth. We assisted the 2022 Fayetteville First Lego League
Razorback Open Invitational in late May which brought in 7 countries and 28 states with
3,000+ persons in attendance including coaches and parents.
• Team secured (1) association conference, Arkansas Bar Association, for November of
2022 with approximately 150 attendees, this lead came through our connections at
Fayetteville Rotary. We will service the event and provide welcome bags for out-of-town
attendees as well as curating group specific entertainment options.
Cycling
• On May 25t", to conclude Bike Month, we hosted our annual Bicycle -Friendly Business
Bootcamp with 8 area businesses, including some restaurants, applying for Bicycle -
Friendly Business designation as part of the complimentary one -day workshop.
On May 31st Experience Fayetteville successfully wrapped its "Dinner Rolls" pilot
program in partnership with Fayetteville restaurants where the community was
encouraged to pedal to dinner and take advantage of complimentary Bike Valet.
o For context: Bike Security is an identified barrier for some to consider cycling to
dinner or entertainment and the Bike Valet solved for this while creating direct
dialog with restaurant owners and management teams on how we can be more
accommodating of cycling tourists.
• In June, several first -year cycling events happened in and around Fayetteville:
o USA Triathlon Gravel & Mountain Bike National Championships
o Highlands Gravel Classic --which is the first ever U.S. qualifier for the UCI
Gravel World Championships in Italy (happening Saturday, June 25t")
Visitor Center Sales and Attendance
• VC saw 1,545 visitors in May 2022
o 28% increase from April 2022 (1,201)
• VC had $5,888.35 in sales in May 2022
o 19% increase from April 2022 ($4,938.60)
• We welcomed visitors from Afghanistan, Alaska, Amsterdam, Australia, Canada,
Denmark, Dominican Republic, England, Germany, Ireland, Italy, Kenya, Latvia, Mexico,
New Zealand, Panama, Republic of Zambia, Russia and Sweden
• Saturday Farmers Market guest count: (9am — 1 pm)
May
7t" —
196
May
1411
— 131
May
21 st
— 121
May
2811
— 222
Community Engagement
• June's First Thursday, In Bloom, was a success with lots of positive community
feedback. Total attendance estimate is 2,700. Food trucks reported over $8,000 in sales,
art vendors reported $6,500 in sales, and our host bar had sales totaling approximately
$2,000.
• Chloe Bell, our Community Engagement manger is a recipient of the Creative Exchange
Fund Grant Award in partnership with the Tyson Family Foundation and has been
appointed to the Fayetteville Arts Council.
Fayetteville Town Center
• Fayetteville Town Center hosted ten events since our last meeting.
• We are taking advantage of the downtime to reassess the sales goals and targets for the
venue. As the event space landscape has changed, we are taking time to reevaluate our
target clients and what events we believe best fit the facility and its purpose.
• We are also taking this opportunity to inventory and assess the condition of all assets
within the facility and to determine our needs going forward.
• The Peace Fountain is repaired and fully functional.
• The repairs to the Tower are complete, and interior sheetrock has been patched or
replaced where needed.
• The new ballroom carpet and materials have been delivered. Install is scheduled to
begin on August first. The project is expected to take twelve days.
Clinton House Museum
• The museum has secured a staffer for Saturday, Scott Mashburn, allowing the museum
to be open to the public Thursday through Saturday, 10 am to 4 pm.
• The CHM Board of Directors has established their own account with Square, enabling
them to sell their own inventory, separate from Experience Fayetteville inventory.
HMR and Lodging Info
• Occupancy May 2022: 74%. This represents a 15% increase over May 2021
• Occupancy YTD 2022: 60%. This represents a 8% increase over prior year
• ADR (Average Daily Rate) May 2022 is up 26% over May 2021, and 28% higher
than prior year to date
• May lodging collections are up over 17% from the prior month and show a 59%
increase over May 2021
• May restaurant collections were up 12% over the prior month and show a 21 %
increase from May 2021 (approximately 61 K)
• Year to date, we've had a 21 % increase in HMR tax collections over the same period
in 2021 and the largest collection amount recorded.
Financial Reports
• See attached memos
I Vrd I rill I I I Monthly A&P Tax Collections 2022**
•
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may
jun
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0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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This represents one half of the total HMR collections.
The other half supports the Parks and Recreation department.
34.04% 28.38%
-0.15%-17.18%
35.69% 42.55%
7.91% 14.90%
24.93% 31.20%
change
% change
from
from
2021
2019
Memo P l[AY�
To: Molly Rawn, CEO, Experience Fayetteville
Fayetteville Advertising & Promotion Commissioners
From: Jennifer Walker, VP Finance, Experience Fayetteville
Date: June 10, 2022
Re: Financial Statements — May 2022
This packet contains Experience Fayetteville Financial Statements for the month ended
May 31, 2022. The following reports are included in the packet:
• Summary P&L Financials for month ended May 31, 2022
• Balance Sheet for month ended May 31, 2022
Target Budget May — 42%
• Revenue target 42% of budget or higher by the end of May 2022.
Expenditures target 42% or lower at May 2022.
Total Revenue YTD: $1,984,713 or 41 %; We are 1 % behind target.
Tax Receipts - $1,781,988 (over budget by 1 % ytd)
Town Center - $149,391 (note $124k+ unearned revenue on Balance Sheet)
Other - $53,335
Total Operating Expenditure YTD: $1,545,938 or 33%; this is 9% under budget.
EF Main - $1,242,660
Town Center - $303,278
HMR tax — YTD May Collections (April activity) were above seasonally adjusted budget
expectations by 6%.
Operating Net Income is $438,775 year to date.
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ May 31, 2022
CONSOLIDATED
Year -to -Date
Actual
Budget
Over/(Under)
Budget
% of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
1,781,988
4,154,500
(2,372,512)
42.9%
Rental Revenue
136,788
478,800
(342,012)
28.6%
Event Revenue
15,069
33,550
(18,481)
44.9%
Visitor Center Store Revenue
32,641
42,000
(9,359)
77.7%
Parking Revenue
10,798
23,000
(12,202)
46.9%
Advertising Revenue
1,050
5,000
(3,950)
21.0%
Grant/Other Revenue
3,000
86,500
(83,500)
3.5%
Interest and Investment Revenue
3,379
22,000
(18,621)
15.4%
Total Revenue
1,984,713
4,845,350
(2,860,637)
41.0%
Expenses
Operating Expenses
Rental Expenses
21,353
106,000
(84,647)
20.1%
Event Expenses
18,990
88,450
(69,460)
21.5%
Visitor Center & Museum Store
29,591
43,700
(14,109)
67.7%
Personnel
590,298
1,439,624
(849,326)
41.0%
Sales & Marketing
312,607
1,187,453
(874,846)
26.3%
Office and Administrative
273,474
722,818
(449,344)
37.8%
Bond Payments
292,325
707,000
(414,675)
41.3%
Contribution to Capital Reserves
-
100,000
(100,000)
0.0%
Other grants
7,300
155,600
(148,300)
4.7%
TheatreSquared Contribution
-
200,000
(200,000)
0.000
Total Operating Expenses
1,545,938
4,750,645
(3,204,707)
32.5%
Net Operating Income/(Loss)
438,775
94,705
344,070
0.0%
Other Income
Unrealized Gain/(Loss) on Investments
59,800
0.0%
Other Expenses
FFE & Improvements
147,819
595,000
(447,181)
24.8%
Depreciation Expense
55,614
0.0%
Cost of Goods Sold
(4,419)
0.0%
Net Income/(Loss) (without cx Grants)
299,562
(500,295)
740,056
-59.9%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ May 31, 2022
Experience Fayetteville
Year -to -Date
Actual
Budget
Over/(Under)
Budget
%of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
1,781,988
4,154,500
(2,372,512)
42.9%
Rental and Event Revenue
13,340
44,350
(31,010)
30.1%
Visitor Center Store Revenue
32,641
42,000
(9,359)
77.7%
Advertising Revenue
1,050
5,000
(3,950)
21.0%
Grant Revenue (Cycling Coord / DSAC)
3,000
86,500
(83,500)
3.5%
Interest and Investment Revenue
3,304
19,000
(15,696)
17.4%
Total Revenue
1,835,323
4,351,350
(2,516,027)
42.2%
Expenses
Operating Expenses
Event Expenses
12,420
88,450
(76,030)
14.0%
Visitor Center & Museum Store
29,591
43,700
(14,109)
67.7%
Personnel
421,463
1,020,194
(598,731)
41.3%
Sales & Marketing
308,482
1,161,353
(852,871)
26.606
Office and Administrative
171,079
379,523
(208,444)
45.1%
Bond Payments
292,325
707,000
(414,675)
41.3%
Contribution to Capital Reserve
-
100,000
(100,000)
0.0%
Other Grants
7,300
155,600
(148,300)
4.7%
Mobile VC
-
-
-
0.0%
TheatreSquared Contribution
-
200,000
(200,000)
0.0%
Total Operating Expenses
1,242,660
3,855,820
(2,613,160)
32.2%
Net Income/(Loss) Before Other Revenue and Expenses
592,663
495,530
97,133
119.6%
Other Income
Unrealized Gain/(Loss) on Investments
59,800
-
59,800
0.0%
Other Expenses
FFE & Improvements
-
90,000
(90,000)
0.0%
Depreciation Expense
31,389
Cost of Goods Sold
(4,419)
Net Income/(Loss)
625,494
405,530
160,164
154.2%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ May 31, 2022
Town Center
Year -to -Date
Actual
Budget
OverAUnder)of
Budget
Budget
Revenue
Rental Revenue
136,788
468,000
(331,212)
29.2%
Event Revenue
1,730
-
1,730
0.0%
Parking Revenue
10,798
23,000
(12,202)
46.9%
Interest and Investment Revenue
75
3,000
(2,925)
2.5%
Total Revenue
149,391
494,000
(344,609)
30.2%
Expenses
Operating Expenses
Rental Expenses
21,353
106,000
(84,647)
20.1%
Event Expenses
6,570
-
6,570
0.0%
Personnel
168,836
419,430
(250,594)
40.3%
Sales & Marketing
4,125
26,100
(21,975)
15.8%
Office and Administrative
102,396
343,295
(240,899)
29.8%
Total Operating Expenses
303,278
894,825
(591,547)
33.9%
Net Income/(Loss) Before Other Revenue and Expenses
(153,888)
(400,825)
246,937
38.4%
Other Expenses
FFE & Improvements
147,819
505,000
(357,181)
70.7%
Depreciation Expense
24,225
Net Income/(Loss)
(325,932)
(905,825)1
579,893
1 36.0%
Fayetteville A&P Commission
Balance Sheet
As of May 31, 2022
ASSETS
Current Assets
Cash
3,277,506
Investments
1,265,458
Accounts Receivable
440,346
Prepaid Expenses
135,023
Deposits
30,617
Visitors Guide Trade
3,052
Inventory Asset
24,252
Total Current Assets
5,176,254
Other Assets
Capital Assets
Furniture & Fixtures
96,641
Equipment
641,976
EF/CVB Building
940,410
EF/CVB Land
198,621
Building Additions
971,952
Walker -Stone House
1,167,218
Construction in Progress
27,109
Accumulated Depreciation
(1,422,047)
Total Other Assets
2,621,879
TOTAL ASSETS 7,798,133
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable 67,219
Unearned Revenue 124,344
Total Liabilities 191,563
Equity
Unreserved Fund Balance
4,336,790
Operating Reserve
1,000,000
Capital Reserve
2,000,000
Temporarily Restricted Funds
439,895
Net Revenue
Gain/(Loss) on Investments
59,800
Net Revenue without Cyclocross
239,779
Net Revenue for Cyclocross
(469,694) (170,115)
Total Equity
7,606,569
TOTAL LIABILITIES AND EQUITY 7,798,133
UNE 2022 MARKETING REPORT
MA30R EVENTS, ACCOMPLISHMENTS OR PR03ECTS -
FIRST THURSDAY
DUNE (IN BLOOM)
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SOCIAL MEDIA (MONTH OVER MONTH)
FACEBOOK.0
• Page Reach -28.5%
• Page Visits
lmlm2%
• New i-oiiowers
• Total Followers
+50%
36,780
INSTAGRAM.0
• Page Reach
• Page Visits
• New Followers f21.1%
• Total Followers 58,,834
13m8%
4N 9; Kin
9,000
WEBSITE REFERRALS
FROM SOCIAL:
Assisted Social Conversions:
up MR
21m43%
• Time Pe
riod. 5/23-6/16
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REGIONAL CAMPAIGN
STARTS THIS WEEK
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Experience Fayetteville ...OExperience Fayetteville ...
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• Dickson Street is a living, breathing artery feeding the creative spirit of Fay- Whether on foot or on two wheels, our world -class trails will get your blood
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For an Authentic Experience, You Gotta Experience Fayetteville. For an Authentic Experience, You Gotta Experience Fayetteville. ;
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PRIDE -INFLUENCER
CAMPAIGN LAUNCH
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WHAT IS NEW (NEAR -TERM) -
Continue influencer
campaign -
Upcoming focus areas include the food
scene, outdoors, nightlife, motorcycling
& craft beer
Cycling initiati
ves are being
reviewed/discussed
Filming of new campaign filmed week
of June 20
Photo shoots for new assets for
new campaign
Psi
PWY
WEBSITE ENHANCEMENT
Early website redesign data is promising, most recen
users to find restaurants and cuisine options. From
tly in directing more
20 - Punt
/EAT PAGE: � FLIPBOOK VIEW: � PDF DOWNLOAD:
1,16.F'. Pageviews Total Events 84 Total Events
864 Unique Pageviews Unique Events 77 Unique Events
Using the unique numbers, that would mean
the Dining Guide Flipbook had a 7% CTR
and the Dining Guide PDF had an 8.9% CTR
TRAVEL INDUSTRY TRENDS & INSIGHTS
U.S. Travel Association including:
For the first time since the start of the pandemic, travel spending ($100 billion)
was _ ABOVE 2019 levels in April 2022
More than one -quarter (28%) of travelers plan to spend significantly more this
summer over their 2019 travel budgets for marquee trips, due to higher prices as
well as accumulated savings
Nearly six in 1
decision to tr
he next
One in 10 meeting planners' business
meeting planners do not expect business to reach 2019
ave
0 American travelers (59%1 say rising gas prices will impact their
I in t
six months
is already back t
o 2019 levels, vet 65% of
levels until at least 2023
PWY
Memo
To: Molly Rawn, CEO, Experience Fayetteville
Fayetteville Advertising & Promotion Commissioners
From: Jennifer Walker, VP Finance, Experience Fayetteville
Date: June 27, 2022
Re: 2022 Budget Revision
PAY
The attached budget revision is presented by Experience Fayetteville staff for
consideration.
The revised budget includes:
Consolidated Revenue $4,815,904
Consolidated operating expenditures $4,616,520
Net Operating Revenue $199,384
Capital Expenditures $595,000
The following documents are included for review:
1. Summary of Consolidated Budgeted revenue and expenditures (1 page)
2. Detailed Experience Fayetteville Budget (4 pages)
3. Detailed Fayetteville Town Center Budget (3 pages)
Staff Recommendation: A vote to adopt the attached 2022 Revised Operating
Budget.
Fayetteville A&P Commission
Consolidated Budget
2022 Budget Adjustment - Proposed
Account Number
Account Name
Consolidated
ORIGINAL
2022
Consolidated
REVISED
2022
Consolidated
VARIANCE
(Rev vs Orig
Budget)
Consolidated
%Variance
REVENUE
40000
Revenue
41000
Hotel, Motel, Restaurant Taxes
4,154,500
4,154,500
-
0%
42000
Rental Income
478,800
351,000
(127,800)
-27%
43000
Event Income
33,550
35,700
2,150
6%
44000
Sales
42,000
51,200
9,200
22%
45000
Parking Revenue
23,000
33,000
10,000
43%
46000
Advertising Income
5,000
3,000
(2,000)
-40%
48000
Other Revenue
86,500
179,254
92,754
107%
49000
Interest Income
22,000
8,250
(13,750)
-63%
TOTAL REVENUE
4,845,350
4,815,904
(29,446)
-1%
EXPENSE
50000
Rental/and Event Expenses
238,150
326,150
88,000
37%
60000
Payroll and Related Expenses
1,439,624
1,616,044
176,420
12%
70000
Operating Expenses
1,875,271
1,667,326
(207,945)
-11%
80000
Tourism Support
275,970
200,000
(75,970)
-28%
90000
Other Expenses
807,000
807,000
-
0%
TOTAL EXPENSE
4,636,015
4,616,520
(19,495)
0%
Net Revenue/(Loss)
1 209,335
199,384
(9,951)
0%
77800
FFE Improvements
595,000
595,000
0%
Funded by 2021 Surplus
71250
Mobile Marketing Setup (Van/Truck)
35,000
-
(35,000)
-100%
80400
Other Grants / DSAC
79,630
39,815
(39,815)
-50%
Adjusted Net Revenue/(Loss)
(500,295)
(435,431)
64,864
-13%
Fayetteville A&P Commission
Experience Fayetteville - Main
2022 Budget Adjustment - Proposed
Account Number
Account Name
Experience
Fayetteville 2022
ORIGINAL
Budget
Experience
Fayetteville 2022
REVISED Budget
Variance Revised
vs. Original
EF %Change
Revised vs.
Original
REVENUE
40000
Revenue
41000
Hotel, Motel, Restaurant Taxes
4,154,500
4,154,500
0
0%
41100
HMR Taxes
4,119,500
4,119,500
0
0%
41200
PY HMR
35,000
35,000
0
0%
42000
Rental Income
10,800
5,000
(5,800)
0%
42100
Facility Rental
42300
Alcohol Sales
10,800
5,000
-5,800
0%
42400
Rental Services
43000
Event Income
33,550
32,700
-850
-3%
43100
1st Thursday Income
22,350
21,500
-850
-4%
43200
LOTO Income
11,200
11,200
0
0%
44000
Sales
42,000
51,200
9,200
22%
44100
Museum Store Sales
44200
Visitor Store Sales
42,000
51,200
9,200
22%
44210
Regular Store Sales
40,000
50,000
10,000
25%
44220
Consignment Sales
2,000
1,200
-800
-40%
46000
Advertising Income
5,000
3,000
-2,000
-40%
46100
Visitor Guide Ad Income
46200
Banner Income
5,000
3,000
-2,000
-40%
48000
Other Revenue
10,530
179,255
168,725
1602%
48200
Other Revenue
0
168,725
168,725
0%
48300
Cycling Coordinator Grant
10,530
10,530
0
0%
48800
Other Grants / DSAC
75,970
3,000
-72,970
-96%
49000
Interest Income
19,000
8,000
-11,000
-58%
49001
Investment Account Interest
14,000
3,000
-11,000
-79%
49002
Checking Account Interest
5,000
5,000
0
0%
TOTAL REVENUE
4,351,350
4,436,655
85,305
2%
EXPENSE
50000
Rental/and Event Expenses
132,150
224,650
212,953
161%
52000
Event Expenses
88,450
76,450
-12,000
-14%
52100
1st Thursday Expenses
50,000
41,000
-9,000
-18%
52200
LOTO Expenses
35,100
32,100
-3,000
-9%
52400
Other Event Expenses
3,350
3,350
0
0%
52500
Pop -Up Events
0
0
0
0%
53000
Visitors Center & Museum Store
31,700
36,200
4,500
14%
53200
Visitors Center
31,700
36,200
4,500
14%
53210
Goods for Sale
28,000
32,500
4,500
1606
53220
Store Supplies
1,700
1,700
0
0%
53300
Consignment Sales Expenses
2,000
2,000
0
0%
Fayetteville A&P Commission
Experience Fayetteville - Main
2022 Budget Adjustment - Proposed
Account Number
Account Name
Experience
Fayetteville 2022
ORIGINAL
Budget
Experience
Fayetteville 2022
REVISED Budget
Variance Revised
vs. Original
EF %Change
Revised vs.
Original
54000
Museum Activities
12,000
12,000
0
0%
54150
First Ladies Garden
12,000
12,000
0
0%
54200
Exhibit Expenses
55000
Downtown Initiative
0
100,000
220,453
0%
60000
Payroll and Related Expenses
1,020,194
1,134,973
114,779
11%
61000
Wages
803,931
896,031
92,100
11%
62000
Payroll Tax Expense
71,848
79,686
7,838
11%
62100
Federal (941) Payroll Taxes
58,938
65,601
6,663
11%
62300
SUTA
12,910
14,085
1,175
9%
63000
Benefits
135,827
138,268
2,441
2%
63100
Health and Other Employee Insur
107,467
107,467
0
0%
63200
Company Retirement Contributic
23,360
25,801
2,441
10%
63300
Car Allowance
5,000
5,000
0
0%
64000
Contract Labor
3,900
16,300
12,400
318%
65000
Payroll Processing Fees
4,688
4,688
0
0%
70000
Operating Expenses
1,540,876
1,521,076
-19,800
-1%
71000
Marketing
991,175
916,455
-74,720
-8%
71100
Advertising Expenses
416,575
416,575
0
0%
71110
Agency Advertising
400,000
400,000
0
0%
71120
Non -Agency Advertising
16,575
16,575
0
0%
71200
Agency Retainer and PR
175,000
175,000
0
0%
71250
Mobile Marketing (Van)
35,000
35,000
0
0%
71300
Promotion
280,000
205,280
-74,720
-27%
71310
Promotion Expenses
275,000
195,280
-79,720
-29%
71320
Signage-Tourism
0
71350
Banners
5,000
10,000
5,000
100%
71400
Printing
65,000
65,000
0
0%
71410
Visitors Guide
20,000
20,000
0
0%
71420
Other Brochures
45,000
45,000
0
0%
71500
Website
9,100
9,100
0
0%
71600
Mailings
10,500
10,500
0
0%
72000
Sales and Development
170,178
202,098
31,920
19%
72100
Promotional Items
10,000
20,000
10,000
100%
72300
Groups
3,795
3,795
0
0%
72400
Sports and Cycling
90,000
90,000
0
0%
72500
Meetings
20,845
1 20,845
0
0%
72600
Memberships
25,538
1 25,538
0
0%
Fayetteville A&P Commission
Experience Fayetteville - Main
2022 Budget Adjustment - Proposed
Account Number
Account Name
Experience
Fayetteville 2022
ORIGINAL
Budget
Experience
Fayetteville 2022
REVISED Budget
Variance Revised
vs. Original
EF %Change
Revised vs.
Original
72700
Tourism & Client Devel.
20,000
41,920
21,920
110%
73000
Office and Administrative
147,534
145,534
-2,000
-1%
73100
Office Expenses
27,144
24,944
-2,200
-8%
73110
Office Supplies
5,000
5,000
0
0%
73120
Office Equipment Leases
4,020
4,020
0
0%
73130
Office Equipment Purchases
500
500
0
0%
73140
Subscriptions
1,330
1,330
0
0%
73150
Employee Relations
6,000
6,000
0
0%
73160
Training
9,119
6,919
-2,200
-24%
73170
Postage & Shipping
1,175
1,175
0
0%
73200
Fees
4,000
4,000
0
0%
73210
Bank Service Charges
500
500
0
0%
73220
Credit Card Fees
3,500
3,500
0
0%
73400
Business Taxes & Licenses
2,700
2,700
0
0%
73500
Accounting, Audit & Legal
31,300
30,800
-500
-2%
73510
Accounting Fees
500
0
-500
0%
73520
Audit Fees
27,800
27,800
0
0%
73530
Legal Fees
3,000
3,000
0
0%
73900
Collection Expenses
82,390
83,090
700
1%
74000
Travel
51,490
51,490
0
0%
74100
Lodging
12,945
12,945
0
0%
74200
Mileage
1,130
1,130
0
0%
74300
Transportation
32,325
32,325
0
0%
74400
Meals Out of Town
5,090
5,090
0
0%
75000
IT Expenses
75,601
100,601
25,000
33%
75100
Computer Hardware
6,700
6,700
0
0%
75200
Software
30,210
55,210
25,000
83%
75300
IT Support and Consulting
38,691
38,691
0
0%
76000
Insurance
22,250
22,250
0
0%
76100
Insurance - Building
20,850
20,850
0
0%
76200
Insurance - W/C
1,400
1,400
0
0%
77000
Facilities
82,648
82,648
0
0%
77100
Rent
15,600
15,600
0
0%
77200
Internet & Telephone
16,500
16,500
0
0%
77300
Utilities
22,480
22,480
0
0%
77310
Electric
13,800
13,800
0
0%
77320
Gas
4,450
4,450
01
0%
77330
1 Water
1 4,230
1 4,230
01
0%
Fayetteville A&P Commission
Experience Fayetteville - Main
2022 Budget Adjustment - Proposed
Account Number
Account Name
Experience
Fayetteville 2022
ORIGINAL
Budget
Experience
Fayetteville 2022
REVISED Budget
Variance Revised
vs. Original
EF %Change
Revised vs.
Original
77400
Repairs and Maintenance
21,000
21,000
0
0%
77500
Janitorial Supplies
2,500
2,500
0
0%
77600
Maintenance Contracts
4,568
4,568
0
0%
80000
Tourism Support
275,970
200,000
0
0%
80100
Current Year grants
0
80200
Prior Year Grants
80300
Theatre Squared Contribution
200,000
200,000
0
0%
80400
Dickson Street Art Court
75,970
0
90000
807,000
807,000
0
0%
90100
Bond Payments
707,000
707,000
0
0%
90200
Contribution to Capital Reserves
100,000
100,000
0
0%
TOTAL EXPENSE
3,776,190
3,887,699
307,932
8%
Net Revenue/(Loss)
575,160
548,956
-222,627
-39%
Funded out of Operating Reserves:
1 77800 1 HE - Improvements 1 90,000 1 90,0001 01 0%1
Funded out of 2021 Surplus:
80400 1 Other Grants / DSAC 1 79,630 1 39,815-39,815 -50%
Fayetteville A&P Commission
Fayetteville Town Center Detail
2022 Budget Adjustment - Proposed
Account Number
Account Name
Town Center
2022 ORIGINAL
Budget
Town Center
2022 REVISED
Budget
Variance
Revised vs.
Original
EF % Change
Revised vs.
Original
REVENUE
42000
Rental Income
468,000
346,000
(122,000)
-26%
42100
Facility Rental
225,000
250,000
25,000
11%
42200
Rental Items
68,000
21,000
(47,000)
-69%
42300
Alcohol Sales
125,000
50,000
(75,000)
-60%
42400
Rental Services
50,000
25,000
(25,000)
-50%
43000
Event Income
0
3,000
3,000
0%
43400
Other Event Income
0
3,000
3,000
0%
45000
Parking Revenue
23,000
33,000
10,000
43%
45100
Parking Machine Revenue
12,500
11,000
(1,500)
-12%
45200
Parking Lease Revenue
10,500
22,000
11,500
110%
48000
Other Revenue
48200
Other Revenue
49000
Interest Income
3,000
250
(2,750)
-92%
49002
Checking Account Interest
3,000
250
(2,750)
-92%
TOTAL REVENUE
494,000
382,250
(111,750)
-23%
EXPENSE
50000
Rental/and Event Expenses
106,000
91,500
(14,500)
-14%
51000
Rental Expenses
106,000
88,500
(17,500)
-17%
51200
Linens
16,500
16,500
0
0%
51300
Alcohol and Bar Supply
46,500
29,000
(17,500)
-38%
51310
Alcohol
40,000
24,000
(16,000)
-40%
51320
Bar Supplies
6,500
5,000
(1,500)
-23%
51400
Rental Services
43,000
43,000
0
0%
52000
Event Expenses
0
3,000
3,000
0%
52400
Other Event Expenses
0
3,000
3,000
0%
60000
Payroll and Related Expenses
419,431
481,071
61,640
15%
61000
Wages
299,326
344,751
45,425
15%
62000
Payroll Tax Expense
28,513
32,208
3,695
13%
62100
Federal (941) Payroll Taxes
22,173
26,043
3,870
17%
62300
SUTA
6,340
6,165
(175)
-3%
63000
Benefits
43,240
46,612
3,372
8%
63100
Health and Other Employee Insur
35,190
37,498
2,308
7%
63200
Company Retirement Contributio
8,050
9,114
1,064
13%
64000
Contract Labor
46,000
55,000
9,000
2006
65000
Payroll Processing Fees
2,352
2,500
148
6%
70000
Operating Expenses
369,395
321,250
(48,145)
-13%
Fayetteville A&P Commission
Fayetteville Town Center Detail
2022 Budget Adjustment - Proposed
Account Number
Account Name
Town Center
2022 ORIGINAL
Budget
Town Center
2022 REVISED
Budget
Variance
Revised vs.
Original
EF % Change
Revised vs.
Original
71000
Marketing
15,300
12,100
(3,200)
-21%
71100
Advertising Expenses
5,000
5,000
0
0%
71120
Non -Agency Advertising
5,000
5,000
0
0%
71300
Promotion
7,500
5,000
(2,500)
-33%
71310
Promotion Expenses
7,500
5,000
(2,500)
-33%
71400
Printing
2,000
2,000
0
0%
71420
Other Brochures
2,000
2,000
0
0%
71500
Website
800
100
(700)
-88%
72000
Sales and Development
10,800
3,900
(6,900)
-64%
72100
Promotional Items
2,000
1,000
(1,000)
-50%
72600
Memberships
5,300
1,600
(3,700)
-70%
72700
Tourism & Client Devel.
3,500
1,000
(2,500)
-71%
73000
Office and Administrative
26,110
25,250
(860)
-3%
73100
Office Expenses
15,510
16,750
1,240
8%
73110
Office Supplies
5,800
5,800
0
0%
73120
Office Equipment Leases
3,850
3,850
0
0%
73130
Office Equipment Purchases
800
3,500
2,700
338%
73140
Subscriptions
1,060
500
(560)
-53%
73150
Employee Relations
1,000
1,400
400
40%
73160
Training
2,800
1,500
(1,300)
-46%
73170
Postage & Shipping
200
200
0
0%
73200
Fees
4,100
2,000
(2,100)
-51%
73220
Credit Card Fees
4,100
2,000
(2,100)
-51%
73400
Business Taxes & Licenses
6,500
6,500
0
0%
73500
Accounting, Audit & Legal
73530
Legal Fees
74000
Travel
4,250
1,700
(2,550)
-60%
74100
Lodging
1,800
500
(1,300)
-72%
74200
Mileage
300
300
0
0%
74300
Transportation
1,550
800
(750)
-48%
74400
Meals Out of Town
600
100
(500)
-83%
75000
IT Expenses
53,000
9,800
(43,200)
-82%
75100
Computer Hardware
6,000
2,000
(4,000)
-67%
75200
Software
43,100
5,600
(37,500)
-87%
75300
IT Support and Consulting
3,900
2,200
1 (1,700)
-44%
Fayetteville A&P Commission
Fayetteville Town Center Detail
2022 Budget Adjustment - Proposed
Account Number
Account Name
Town Center
2022 ORIGINAL
Budget
Town Center
2022 REVISED
Budget
Variance
Revised vs.
Original
EF % Change
Revised vs.
Original
76000
Insurance
4,165
4,500
335
8%
76100
Insurance - Building
4,165
4,500
335
8%
77000
Facilities
255,770
264,000
8,230
3%
77100
Rent
24,000
24,000
0
0%
77200
Internet & Telephone
16,800
23,000
6,200
37%
77300
Utilities
84,100
97,000
12,900
15%
77310
Electric
61,000
70,000
9,000
15%
77320
as
11,400
20,000
8,600
75%
77330
Water
11,700
7,000
(4,700)
-40%
77400
Repairs and Maintenance
55,000
60,000
5,000
9%
77500
Janitorial Supplies
33,000
25,000
(8,000)
-24%
77600
Maintenance Contracts
42,870
35,000
(7,870)
-18%
TOTAL EXPENSE
894,826
893,821
(1,005)
0%
Net Revenue/(Loss)
(400,826)
(511,571)
(110,745)
28%
Funded out of Reserves:
77800 FFE Improvements 505,000 1 505,000 1 0 1 0%
Memo
To: Molly Rawn, CEO, Experience Fayetteville
Fayetteville Advertising & Promotion Commissioners
From: Jennifer Walker, VP Finance, Experience Fayetteville
Date: June 27, 2022
Re: Clinton House Museum Transfer
The 2022 budget includes financial support to the Clinton House Museum in the
amount $40,000. Currently, Experience Fayetteville pays bills on behalf of Clinton
House Museum and operates within this budget. Attached is a current financial report
for the Clinton House Museum as of June 22, 2022. As of the report date $16,960 of
the operating budget has been spent and $23,040 is remaining.
CHM inventory is also included on the Experience Fayetteville balance sheet. This
inventory is CHM specific and located at the Museum. The current inventory value is
$2,524.
In order to fully separate the Clinton House Museum entity from Experience
Fayetteville, the Museum must take over the daily administration of payables and
inventory management. Staff recommends converting the remaining 2022 support to a
single payment to CHM. Once the payment has been made, CHM Board will be
responsible for day-to-day bookkeeping operations. Additionally, the current CHM
Inventory can be donated to the museum to further move toward a complete transition.
Staff Recommendation: A vote to authorize CEO Molly Rawn to pay out the
remaining 2022 budgeted support in a single payment to Clinton House Museum
and donate CHM inventory to the Clinton House Museum.
Clinton House Museum
Budget to Actual Comparison Report
January 1 through June 22, 2022
54100 • Program
54150 • First Ladies Garden
Total 54100 • Program
54200 • Exhibit Expenses
Total 54000 • Museum Activities
Total 50000 • Rental and Event Expenses .
60000 • Payroll and Related Expenses
64000 • Contract Labor
Total 60000 • Payroll and Related Expenses
70000 • Operating Expenses
71000 • Marketing
71500 • Website
Total 71000 • Marketing
73000 • Office and Administrative Exp
73110 Office Expense
73170 Postage and Shipping
73520 Audit Fees
73220 Credit Card Fees
Total 73200 • Fees
Total 73000 • Office and Administrative Exp
75200 • Software Purchases and Subs
Total 75000 • IT Expenses
77000 • Facilities
76100 • Insurance - Building
77100 • Rent
77200 • Internet/Telephone
77310 • Electric
77320 • Gas
77330 • Water
Total 77300 • Utilities
77400 • Repairs and Maintenance
77500 • Janitorial Supplies
77600 • Maintenance Contracts
Total 77000 • Facilities
Total 70000 • Operating Expenses
Total Expense
YTD Actual
Jun 22, 2022 Annual Budget Variance $
5,577.96 12,000.00 6,422.04
5,577.96 12,000.00 6,422.04
1,097.85 0.00-1,097.85
6,675.81 12,000.00 5,324.19
6,675.81 12,000.00 5,324.19
990.00 0.00-990.00
990.00 0.00-990.00
350.00
0.00
-350.00
350.00
0.00
-350.00
310.00
0.00
-310.00
198.00
250.00
52.00
2,467.50
2,800.00
332.50
0.00
0.00
0.00
2,975.50
3,050.00
74.50
2,975.50
3,050.00
74.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
350.00
350.00
2,600.00
15,600.00
13,000.00
1,508.51
2,600.00
1,091.49
209.44
920.00
710.56
948.55
2,760.00
1,811.45
339.91
920.00
580.10
1,497.90
4,600.00
3,102.11
230.11
1,000.00
769.89
0.00
0.00
0.00
131.70
800.00
668.30
5,968.22
24,950.00
18,981.79
9,293.72
28,000.00
18,706.29
16,959.53
40,000.00
23,040.48
Variance %
46%
46%
0%
56%
56%
0%
0%
0%
0%
0%
79%
88%
98%
0%
0%
0%
17%
58%
23%
34%
37%
94%
23%
0%
16%
42%
LEASE AGREEMENT
THIS LEASE AGREEMENT ("Lease") is made and entered into as of , 2021,
by and between Art Court, LLC, an Arkansas limited liability company ("Lessor"), and the Fayetteville
Advertising and Promotion Commission, d.b.a. Experience Fayetteville, a governmental agency
established by Ordinance No. 2310 of the City of Fayetteville pursuant to Arkansas law (Ark. Code Ann.
§ 26-75-605) ("Lessee").
WITNESSETH:
1. PREMISES: Lessor hereby leases and demises to Lessee, and Lessee hereby leases
from Lessor, that certain property located at 227 West Dickson Street, Fayetteville, Arkansas.
2. TERM: TO HAVE AND TO HOLD the above -described Premises for a three-year term,
commencing at 12:01 a.m. on July 1, 2022 and expiring without further notice at 11:59 p.m. on June 30,
2025 ("Term"), unless earlier terminated as herein provided.
3. RENUTAXES: For the Term hereof, Lessee shall pay One Dollar ($1.00) to Lessor as
rent for the Premises, due and payable on the date hereof. Lessor shall pay all real property taxes and
assessments on the Premises.
4. USE OF PREMISES; QUIET POSSESSION: The Premises are to be used and
occupied throughout the Term hereof solely for pick-up basketball games and community engagement
through art. Lessee shall promptly comply with all laws, and all lawful orders, ordinances and regulations
affecting the Premises hereby leased. Lessee shall not create or allow any nuisance to exist in the
Premises, and it shall abate promptly and free of expense to Lessor any nuisance that may arise. Lessee
will comply with all laws, ordinances, orders, rules, and regulations (state, federal, municipal and other
agencies or bodies having any jurisdiction thereof) with reference to use, conditions, or occupancy of the
Premises. Lessee will maintain the Premises in a clean and healthful condition, and comply with all laws,
ordinances, orders, rules, and regulations (state, federal, municipal and other agencies or bodies having
any jurisdiction thereof) with reference to use, conditions, or occupancy of the Premises. During the
Term of this Lease, Lessee agrees to conduct its operations within the Premises in compliance with the
Americans With Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) as well as the regulations and
accessibility guidelines promulgated thereunder as each is supplemented or amended from time to time
(collectively, "ADA"). In the event that Lessee elects to undertake any alterations to, for or within the
Premises, then Lessee covenants and agrees that all such alterations shall be performed and completed in
compliance with ADA. Lessee shall keep and perform all of its covenants under this Lease on the part of
Lessee to be performed.
5. UTILITIES: Lessee shall be solely responsible for and promptly pay all of the
following utilities, including all charges for gas, electricity, water, telephone, cable television, alarm and
fire protection service, trash, garbage and waste removal, or any other utility or service provided to or
used or consumed in the Premises. In no event shall Lessor be liable for interruption or failure in the
supply of any such utilities of or to the Premises.
6. LESSOR'S DUTY TO REPAIR: Lessor shall be responsible for promptly making all
repairs, maintenance, or replacement of or to the plumbing and electrical systems, the underground utility
installations and underground electrical conduit and wires of the Premises. Lessor shall also be
responsible for the maintenance, replacement, and repair to the structural portion of the Premises which
shall be necessary to maintain the Premises in a safe and leaseable condition and in good order and repair
and maintenance.
7. LESSEE'S DUTY TO REPAIR: Lessee shall be responsible for all cleaning of the
Premises and for maintenance and repair of landscaping and grounds at the Premises, at its sole cost and
expense. Lessee shall pay for all exterminating services. Lessee shall refer all contractors, contractor's
representatives and installation technicians, rendering any service to Lessee, to Lessor for Lessor's
supervision, approval and control before performance of any contractual service at the Premises, such
approval to not be unreasonably withheld, delayed or conditioned. This provision shall apply to all work
performed at the Premises of any nature affecting any physical portion of the Premises.
8. ENTRY BY LESSOR: Lessor, or its agents, employees, or attorney, shall have the right
of entry upon the Premises at all reasonable hours for the purpose of inspecting the same; provided,
however, except in the case of an emergency, such entry shall not occur unless Lessee or its agent is
present, and shall not interrupt the normal business operations of Lessee, except with prior written
approval of Lessee.
9. ALTERATIONS: All plans, drawings and specifications for structural changes in the
Premises shall specifically state that the changes comply with ADA, and shall require the written consent
of Lessor, which consent shall not be unreasonably withheld, delayed or conditioned, prior to the
commencement of any such changes. All structural changes to the Premises shall be performed at
Lessee's sole expense.
10. INSURANCE: Lessee shall at its expense procure and maintain throughout the Term
commercial general liability insurance in amounts of not less than a combined single limit of
$1,000,000.00, insuring Lessee, Lessor, and Lessor's agents against all liability for injury to or death of a
person or persons or damage to property arising from the use and occupancy of the Premises. Prior to
possession by Lessee or within two (2) business days after request by Lessor, Lessee shall furnish
certificates of such insurance and such other evidence satisfactory to Lessor of the maintenance of all
insurance coverages required hereunder, and Lessee shall obtain a written obligation on the part of each
insurance company to notify Lessor at least 30 days before cancellation or (if available) a material change
of any such insurance. All such insurance policies shall be in form, and issued by companies, reasonably
satisfactory to Lessor.
11. DEFACING PREMISES AND OVERLOADING: Lessee shall not do any painting or
decorating in the Premises or make, paint, cut or drill into, or in any way deface any part of the Premises
without the prior written consent of Lessor. Lessee shall not paint, display, inscribe, maintain or affix any
sign, picture, advertisement, notice, lettering or direction on any area outside the Premises, such name or
names or matter and in such color, size, style, character and materials as may first be approved by Lessor.
Lessor shall have the right to remove, at Lessee's expense, all matter other than that above provided for
without notice to Lessee.
12. DESTRUCTION BY FIRE OR OTHER CASUALTY: If any material part of the
Premises is rendered unleaseable by fire or other casualty, Lessor may elect (a) to terminate this Lease as
of the date of the fire or casualty by notice to Lessee within sixty (60) days after the date, or (b) to repair,
restore or rehabilitate the Premises at Lessor's expense, in which event this Lease shall not terminate but
rent shall be pro -rated for that portion of the Premises that are unleaseable and abated on a per diem basis
for that portion of the Premises that is unleaseable. If such damage is due to an act or omission of Lessee,
then Lessor shall have such rights as are set forth herein at Lessee's cost and expense. If Lessor elects so
to repair, restore, or rehabilitate the Premises, said work shall be undertaken and prosecuted with all due
diligence and speed. In the event of termination of the Lease pursuant to this Section 13, rent shall be
apportioned on a per diem basis and paid to the date of the fire or casualty.
13. CONDEMNATION: If the Premises, or any part thereof, or any interest therein, be
2
taken by virtue of eminent domain or for any public or quasi -public use or purpose, either party shall have
the right to terminate this Lease at the date of such taking or within six months thereafter by giving the
other party thirty (30) days' prior notice of the date of such termination. All condemnation awards shall
be the sole and separate property of Lessor.
14. CONTINUED OCCUPANCY: Should Lessee or any of its successors in interest
improperly hold over the Premises or any part thereof after the expiration of the term of this Lease, such
holding over shall constitute and be construed as a tenancy from month to month only. A proper
extension of the Term of this Lease shall be in writing signed by Lessor and Lessee.
15. DEFAULT AND FORFEITURE: In the event the Lessee, at any time, shall fail to pay
when due any installment of rent or, in the event the Lessee shall fail to perform or observe any other
covenant, agreement, condition or undertaking herein contained on Lessee's part to be performed or
observed for three (3) days after notice thereof from Lessor, Lessor shall be entitled to exercise any and
all remedies available under Arkansas law.
16. ATTORNEYS FEES: Lessee shall pay all costs of collection, including reasonable
attorney fees, if all or any part of the rent reserved herein is collected after maturity with the aid of any
attorney; and, also, that Lessee shall pay reasonable attorney fees in the event it becomes necessary for
Lessor to employ an attorney to force Lessee to comply with any of the covenants, obligations, or
conditions imposed by this Lease.
17. RESTRICTION UPON ASSIGNMENT OR SUBLETTING: Lessee shall not assign
or sublet the Premises, this Lease or any part thereof without the prior written consent of Lessor, which
consent may be withheld by Lessor for any reason whatever, whether reasonable or not.
18. NOTICE: All notices, requests, demands and other communications required or
permitted hereunder shall be in writing and shall be personally delivered, or sent by email transmission, or
sent by overnight commercial delivery service. All such notices and communications will be deemed
effectively given the earlier of (i) when received, (ii) when delivered personally to Lessee (or Lessee's
representatives) or hand delivered to the Premises, (iii) one business day after being delivered by email, or
(iv) one business day after being deposited with an overnight commercial delivery service:
LESSOR: Art Court, LLC
244 W Dickson St, Ste 202
Fayetteville, AR 72701
Attention: Jordan Garner
Email: jordan@ivythirtyfive.com
LESSEE: Fayetteville Advertising
and Promotion
Commission
21 South Block Avenue, Suite 100
Fayetteville AR 72701
Attention: Molly Rawn
19. SURRENDER: At the expiration of the term or extended term hereof, Lessee will quit
and surrender the Premises, in as good condition as received, reasonable wear and tear excepted.
20. RIGHTS OF SUCCESSORS: Each and every provision of this Lease shall bind and
inure to the benefit of the parties hereto, their legal representatives, heirs, successors and assigns.
21. TIME: Time is of the essence in the Lease.
3
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals on the date first
hereinabove written.
Art Court, LLC, Lessor
By:
Title
Manager
Fayetteville Advertising and Promotion
Commission, Lessee
By: _
Title:
2