2022-10-17 - Agendas - FinalFayetteville Advertising and
Promotion Commission
October 17, 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
I. Call to order at 2:00 p.m.
II. Old Business
A. Review and approval of September 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 and 2023 Budget Preview, Jennifer Walker, Vice President of
Finance
C. Marketing Report:
i. Ashley Cane, Director of Brand Strategy
ii. Mike Sells, Sells Agency
D. Presentation. Martin Miller, Executive Director, TheatreSquared
F. Discussion. Fayetteville signage, Commissioner Moya.
G. Executive Session. The commission may enter executive session only upon a majority
vote of the commissioners. The topic of this proposed executive session is to discuss
the employment of the CEO for an annual performance review.
IV. Adjourn
Fayetteville Advertising and Promotion Commission
Minutes September 26, 2022
Fayetteville Town Center
Commissioners Todd Martin, Chair, Tourism & Hospitality Representative
Present: Elvis Moya, Tourism & Hospitality Representative
Andrew Prysby, Commissioner at -large
Sarah Bunch, City Council Representative
Mark Kinion, City Council Representative
Commissioners Chrissy Sanderson, Tourism & Hospitality Representative
Absent: Katherine Kinney
Staff: Molly Rawn, CEO; Ashley Cane, Marketing Manager; Jennifer Walker, VP of
Finance
Chair Martin called the meeting to order at 2:02 pm.
Old Business
A. Chair Martin asked commissioners to review the August minutes and asked if there
were any additions or revisions. Hearing no additions or revisions, he stated that the
minutes stood approved.
III. New Business
A. CEO Report. An executive overview of the previous month's activity, issues and
opportunities facing the organization.
Rawn opened by reviewing the HMR numbers with the commission.
July's HMR activity, which was collected in August was $363, 072. As you can see,
we are exceeding 2019 numbers by 26% and 2021 numbers by 14% and HMR is up
17% overall for the year.
Rawn then discussed this year's budget process: we will be presenting a broad
overview of the budget at the October commission meeting which will be a week
earlier as Rawn will be traveling to a Bike City Summit during the 4th Monday in
October. The October meeting will be a budget preview, which will include any key
projects, any major changes and more. The entire budget will be sent at least 2
weeks ahead of the November meeting, which is the Monday after Thankgiving. If
the budget is approved in November, there will not be a December meeting.
B. Financial Report. Jennifer Walker, VP Finance
Walker began by referencing the financial information that has been included in the
meeting packet, including a balance sheet and P & L statement for August. Walker
stated that our target percent is 67% of overall budget and that revenue is 6% above
target and expenditures are 8% under this target of 67%; she noted both of these are
good data points. Our net income for August is $646,000 and HMR collection came
in at around $2.9 million dollars — when this is seasonally adjusted, it is 8% above
budget.
Our liquid assets are holding very steady at around $4.67 million and the town
center's unearned revenue is $155,000, reflecting future booking.
In asking if there were any questions about the financial report, Chair Martin asked
Tyler Wilson, General Manager of the town center what he thought about business at
the town center and he said he thought it was getting back to the normal cyclical
bookings. We have very few open dates in October and November.
C. Marketing Report. Ashley Cane, Marketing Manager
Cane showed our ads showing dual sports cycling and Razorback football. She also
showed information about our First Thursday we held on September 15t" which was a
makeup event from August. We obtained lots of great footage from this First Thursday
to help promote next year's season.
She followed up on the influencer visitors, Arkie Travels and said they did a great job
and shared lots of content with their audience and shared their pictures with Experience
Fayetteville for our use.
Our next influencer will be a motorcycling influencer. She also shared some great new
photos of some newer businesses such as Pearls Books and Sleet City.
Mike Sells shared our web analytics and stated that they are up compared to last year
which is indicative of us spending more funds on ads this year.
Top web pages — Home Page 17%, Visitors Guide 42% and Outdoors 304%. Sells
also showed the top 5 states with a lot of growth in Illinois and Missouri.
In sharing OZCX promotion information, Sells talked about geoframing which is
targeting individuals who have been interested in the different cyclo-cross events.
Commissioner Moya asked about Vanny's travels and Rawn was able to share that
Vanny traveled to the Americana Festival in Nashville. Vanny also traveled to Big Dam
Bridge in Little Rock this weekend. Commissioner Moya asked if Trick or Treat on the
Square was happening. Rawn said that we are working with the City Parks Department
to host this event in the Ramble rather than the square. A press release about this
change should be forthcoming.
Chair Martin asked Cane more about the advertising around football we've been doing
and Cane and Rawn said we are focusing on extending the time a football goer spends
in Fayetteville by highlighting other activities that are going on during the weekend. We
do this with our Friday roundup of activities. Discussion around creating different visitor
itineraries to promote other options of activities was had.
D. Vote. Lease agreement with 21 Mountain, LLC for office space for Fayetteville Town
Center staff.
Our current lease for 5 W. Mountain will be expiring soon and we have been asked to
find alternative arrangements which we have with a suite at 21 W. Mountain.
Rawn discussed that the staff did as the commission requested and analyzed using
Walker Stone House as a possible landing place for the Fayetteville Town Center staff
and it was decided, as summarized in an email sent to the commission earlier that
month, it would not be cost effective and it would prohibit other, possibly better uses for
Walker Stone House.
In discussing the proposed lease, Rawn noted that it is inclusive of utilities and the
overall rent is less. The Chamber is also willing, at their cost, to wall in some space to
give additional office space. Rawn stated that it was both her and also Tyler Wilson's
recommendation to sign this lease for three years. Chair Martin entertained a motion to
authorize the CEO to sign a three year lease agreement for 21 Mountain LLC for office
space beginning October 12, 2022, which Commissioner Bunch moved and
Commission Kinion seconded and with no discussion, Chair Martin called for a vote
and it passed unanimously.
E. Vote. IT Vendor. Agreement with TekTrendz for Managed IT services
Rawn opened up by stating that in 2021 our agreement with our current IT Provider
was set to expire and the commission authorized it to continue for one more year with
the intent to put out a Request for Qualifications this year which we did. We received
three responses, of which two were deemed qualitied to provide services. TekTrendz
not only was well qualified to meet our managed IT needs, their monthly retainer was
at a lower price point. Rawn asked the commission to allow her to accept the quote
and Chair Martin entertained a motion to authorize Rawn to accept the quote for the
Scope of Work and the Master Services Agreement provided by TekTrendz for a 2
year term for a rate of $2,910 monthly. Commissioner Moya made the motion with
Commissioner Prysby seconded it. With no more discussion, it was voted on and it
passed unanimously.
F. Vote. Presentation on Fayetteville Town Center's participation in the city of
Fayetteville's Energy Savings Performance Contract with Johnson Controls.
Rawn has learned a couple of key pieces of information since our last meeting,
including financing terms. The city will allow us, if we so choose, to finance the
initial cost of this for 20 years.
It was also discussed that the current lease for the town center is a bit unequitable
when considering what is involved in other leases with other component unit
buildings such as the library, the Air Museum, etc. Rawn pointed out that our lease
needs to be renewed and she thinks when that happens, we can make it more
equitable in regard to items such as roofing and plumbing as it was pointed out that
other leases contain provisions for roofing and plumbing issues.
Chair Martin began discussing the solar panels by stating it's hard to predict the
ROI as it is hard to predict energy prices for the next two decades. He stated that
he also wanted to acknowledge that we are renters of the town center and we need
to consider what types of investments we need to make in a property that is not
one we own. He further stated that with the possible ambiguity of the lease he
wasn't certain this was an expense we needed to bear. Chair Martin wondered if
we adopt solar panels, what would we cut?
Rawn stated that if we took the cost savings assumptions made in the 20-year
financing option, she did not see that we would not be cutting any programs.
Much discussion happened about the possibility of the solar panels and also the
new lease that will be negotiated and what might be included in that lease such as
roofing and plumbing. It was brought up that we could discuss and propose any
changes with the solar project when this is discussed more at the city council.
Chair Martin asked for a motion which Commissioner Moya made and
Commissioner Prysby seconded: The commission authorizes the CEO to continue
negotiations regarding the town center's participation in the city's energy savings
performance contract with Johnson Control and empowers her to reach a favorable
agreement with the city council based upon the data presented in today's A&P
Commission's meeting. After no further discussion, the motion was unanimously
approved by Commissioners Bunch, Moya, Prysby, Martin and Kinion.
With the time of the meeting, it was decided to put the Welcoming discussion on
the October agenda with a shortened marketing report so we could discuss
signage examples.
G. Chair Martin called for a motion to adjourn the meeting at 3:40 pm. The motion
was made by Commissioner Prysby and seconded by Commissioner Moya
Minutes submitted by Amy Stockton, Director of Operations, Experience Fayetteville
Fayetteville Advertising and Promotion Commission
CEO Updates
October 2022
Commission
What to expect in the coming months:
• November: Budget presentation and vote, potential contract for consulting
services at the Town Center
• December: No meeting if budget is approved at November meeting
Experience Fayetteville Sales
• Touge Con 2022- was a success! This event was in downtown Fayetteville in
partnership with Graduate Fayetteville, Fayetteville Town Center and Experience
Fayetteville. Previously, it had been in Eureka Springs. Due to the hard work of our team
we brought this 500+ person event to Fayetteville.
• Participated in the Expo of the 351" Annual Chile Pepper Run which hosted over 100
schools/ colleges across the US over the weekend of September 30tn
• Met with leadership at the Pryor Center and The Music Education Initiative to discuss
programming for groups this fall and looking into a music conference for 2024.
• Julie Pennington secured a July 2023 conference of governmental finance professionals
as part of the "Meet us on the Square" initiative working with the Graduate and
Fayetteville Town Center.
• We conducted hotel visits to make sure everyone was well stocked on trail maps and
dine around guides for football game weekends.
Cycling
• International Cyclo-cross racing is returning - Building on the legacy of last January's
2022 Walmart UCI Cyclo-cross World Championships, international cyclo-cross racing is
set to return to Fayetteville's Centennial Park October 14-16 for OZCX and the UCI
Cyclo-cross World Cup.
Molly will be travelling to Glasgow, Scotland to the UCI Mobility and Bike City Forum
representing Fayetteville as the only U.S. delegate. Participation in this forum is made
possible through the proceeds of the Cyclo-cross World Championships, the budget
does not come from HMR funds.
Visitor Center Sales and Attendance for September
• VC saw 1,855 visitors in September 2022
o 16% Increase from August 2022 (1,565)
• VC had $5,350.86 in sales in September 2022
o 14% Increase from August 2022 ($4,670.68)
• September — visitors from Canada, Malaysia, Germany, Mexico, Nepal, Dominican
Republic, Belgium, Paris, London and Edinburgh, Scotland.
• Participated in NWA's Welcoming Week - September 9m — 1811
Community Engagement
• First Thursday season Larger Than Life was a grand finale. We are compiling season
data, thanking all involved, and preparing the 2023 sponsorship deck to reach out for
next season sponsors.
• New! Trick or Treat on the Trail will take place Monday, October 311t from 4pm-7pm in
the lower Ramble/Fay Jones Woods
• We're four weeks out from the Lights of the Ozarks parade and Light Night, Friday,
November 18th. Parade and light night logistics are still being coordinated. We are also
still working on the vendor requests and seeking sponsorships.
Fayetteville Town Center
• The parking garage project is on track for completion as planned. The equipment has
been installed, and we are working with IPS to finish the installation calibration. The
entire system should be functional by October 21.
• Touge Con, a foreign car show and vendor fair, was a successful event that received
much praise and attention. It has resulted in several new inquiries and potential client
bookings within this event type.
FTC has only eleven open dates in November. October is completely full.
• FTC staff has begun moving offices and expect to be fully settled by month's end
• Molly and Tyler have presented the city with a new lease agreement; negotiations
continue
• The city's sustainability director is seeking an extension on the deadline to kick off the
FTC solar array project so that FTC has more time to secure a more favorable lease
arrangement
HMR and Lodging Info
• September lodging collections are up 24% from the prior month and show a 34%
increase over September 2021
• September restaurant collections were up 7% over the prior month and show a 12%
increase from September 2021
• Year to date, we've had an 18% increase in HMR tax collections over the same
period in 2021
Personnel
We are in the final stages of the hiring process for two positons: Director of
Downtown Initiatives and Vice President of Marketing and Communications
I expect to announce both candidates prior to our next meeting
I Vfd I Fill I I I Monthly A&P Tax Collections 2022**
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%change over previous year
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This represents one half of the total HMR collections.
The other half supports the Parks and Recreation department.
34.04%
-0.15%
35.69%
7.91%
24.93 %
13.80%
11.02%
14.77%
20.93%
change
from
2021
28.38%
-17.18%
42.55%
14.90%
31.20%
25.00%
21.17%
26.85%
27.92%
change
from
2019
Memo P l[AY�
To: Molly Rawn, CEO, Experience Fayetteville
Fayetteville Advertising & Promotion Commissioners
From: Jennifer Walker, VP Finance, Experience Fayetteville
Date: October 11, 2022
Re: Financial Statements — September 2022
This packet contains Experience Fayetteville Financial Statements for the month ended
September 30, 2022. The following reports are included in the packet:
• Summary P&L Financials for month ended September 30, 2022
• Balance Sheet for month ended September 30, 2022
Target Budget September — 75%
• Revenue target 75% of budget or higher by the end of September 2022.
Expenditures target 75% or lower at September 2022.
Total Revenue YTD: $3,969,259 or 82%; We are 7% ahead of target.
Tax Receipts - $3,347,781 (over budget by 6% ytd)
Town Center - $279,581 (under budget by 2% ytd)
Other - $341,897
Total Operating Expenditure YTD: $3,178,521 or 66%; this is 9% under budget.
EF Main - $2,600,445
Town Center - $578,076
HMR tax — YTD September Collections (August activity) were above seasonally
adjusted budget expectations by 9%.
Operating Net Income is $790,738 year to date.
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ September 30, 2022
CONSOLIDATED
Year -to -Date
Actual
Budget
Over/(Under)
Budget
%of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
3,347,781
4,154,500
(806,719)
80.6%
Rental Revenue
254,706
346,000
(91,294)
73.6%
Event Revenue
35,879
40,700
(4,821)
88.2%
Visitor Center Store Revenue
54,571
51,200
3,371
106.6%
Parking Revenue
17,867
33,000
(15,133)
54.1%
Advertising Revenue
2,725
3,000
(275)
90.8%
Grant/Other Revenue
247,911
182,255
65,656
136.0%
Interest and Investment Revenue
7,819
8,250
(431)
94.8%
Total Revenue
3,969,259
4,818,905
(849,646)
82.4%
Expenses
Operating Expenses
Rental Expenses
46,173
88,500
(42,328)
52.2%
Event Expenses
60,693
79,450
(18,757)
76.4%
Visitor Center & Museum Store
44,585
48,200
(3,615)
92.5%
Downtown Initiative
2,950
100,000
(97,050)
2.9%
Personnel
1,099,438
1,616,044
(516,606)
68.0%
Sales & Marketing
776,714
1,134,553
(357,839)
68.5%
Office and Administrative
499,960
707,773
(207,813)
70.6%
Bond Payments
526,185
707,000
(180,815)
74.4%
Contribution to Capital Reserves
100,000
100,000
100.0%
Other grants
21,824
39,815
(17,991)
54.8%
TheatreSquared Contribution
-
200,000
(200,000)
0.0%
Total Operating Expenses
3,178,521
4,821,335
(1,642,814)
65.9%
Net Operating Income/(Loss)
790,738
(2,430)
793,168
0.0%
Other Income
Unrealized Gain/(Loss) on Investments
39,070
0.0%
Other Expenses
HE & Improvements
304,651
595,000
(290,349)
51.2%
Depreciation Expense
100,075
0.0%
Cost of Goods Sold
(6,111)
0.0%
Net Income/(Loss) (without cx Grants)
431,193
(597,430)1
989,554
1 -72.2%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ September 30, 2022
Experience Fayetteville
Year -to -Date
Actual
Budget
Over/(Under)
Budget
%of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
3,347,781
4,154,500
(806,719)
80.6%
Rental and Event Revenue
29,002
37,700
(8,698)
76.9%
Visitor Center Store Revenue
54,571
51,200
3,371
106.6%
Advertising Revenue
2,725
3,000
(275)
90.8%
Grant & Other Revenue
247,911
182,255
65,656
136.0%
Interest and Investment Revenue
7,689
8,000
(311)
96.1%
Total Revenue
3,689,679
4,436,655
(746,976)
83.2%
Expenses
Operating Expenses
Event Expenses
46,355
76,450
(30,095)
60.6%
Visitor Center & Museum Store
44,585
48,200
(3,615)
92.5%
Downtown Initiative
2,950
100,000
(97,050)
2.9%
Personnel
783,218
1,134,973
(351,755)
69.0%
Sales & Marketing
771,778
1,118,553
(346,775)
69.0%
Office and Administrative
303,550
402,523
(98,973)
75.4%
Bond Payments
526,185
707,000
(180,815)
74.4%
Contribution to Capital Reserve
100,000
100,000
100.0%
Other Grants
21,824
39,815
(17,991)
54.8%
TheatreSquared Contribution
-
200,000
(200,000)
0.0%
Total Operating Expenses
2,600,445
3,927,514
(1,327,069)
66.2%
Net Income/(Loss) Before Other Revenue and Expenses
1,089,234
509,141
580,093
213.9%
Other Income
Unrealized Gain/(Loss) on Investments
39,070
-
39,070
0.0%
Other Expenses
FFE & Improvements
122,860
90,000
32,860
136.5%
Depreciation Expense
56,469
Cost of Goods Sold
(6,111)
Net Income/(Loss)
955,086
419,141
496,875
227.9%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ September 30, 2022
Town Center
Year -to -Date
Actual
Budget
Over/(Under)of
Budget
Budget
Revenue
Rental Revenue
254,706
346,000
(91,294)
73.6%
Event Revenue
6,878
3,000
3,878
229.3%
Parking Revenue
17,867
33,000
(15,133)
54.1%
Interest and Investment Revenue
130
250
(120)
52.0%
Total Revenue
279,581
382,250
(102,669)
73.1%
Expenses
Operating Expenses
Rental Expenses
46,173
88,500
(42,328)
52.2%
Event Expenses
14,338
3,000
11,338
477.9%
Personnel
316,220
481,071
(164,851)
65.7%
Sales & Marketing
4,936
16,000
(11,065)
30.8%
Office and Administrative
196,410
305,250
(108,840)
64.3%
Total Operating Expenses
578,076
893,821
(315,745)
64.7%
Net Income/(Loss) Before Other Revenue and Expenses
(298,496)
(511,571)
213,075
58.3%
Other Expenses
HE & Improvements
181,791
505,000
(323,209)
64.0%
Depreciation Expense
43,606
Net Income/(Loss)
(523,893)
(1,016,571)
492,678
51.5%
Fayetteville A&P Commission
Balance Sheet
As of September 30, 2022
ASSETS
Current Assets
Cash
3,359,575
Investments
1,244,727
Accounts Receivable
430,379
Prepaid Expenses
33,064
Deposits
30,617
Visitors Guide Trade
2,877
Inventory Asset
23,421
Total Current Assets
5,124,660
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
(1,466,508)
Total Other Assets
2.577.418
TOTAL ASSETS 7,702,078
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable 46,518
Unearned Revenue 149,435
Total Liabilities 195,953
Equity
Unreserved Fund Balance
4,236,564
Operating Reserve
1,000,000
Capital Reserve
2,100,000
Temporarily Restricted Funds
439,895
Net Revenue
Gain/(Loss) on Investments
39,070
Net Revenue without Cyclocross
492,455
Net Revenue for Cyclocross
(801,859) (270,334)
Total Equity
7,506,125
TOTAL LIABILITIES AND EQUITY 7,702,078
OCTOBER 2022 MARKETING REPORT
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Northwest Arkansas, you gotta W I I I EVILLE
PfH11
EF WEBSITE AVERAGE MONTHLY SESSIONS
2017
CALIFORNIA
00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
FLORIDA
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . •1
ILLINOIS
.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
796
1 . . . . . . . . . . . . . . . . . . . . . . . .
4
640
is a a a a a * * 0 0 e e e e 0 0 0 0 0 0 0 0 0 e a
3061
1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a
Five Year Growth
20F)Aoo
1 0 0 0 0 0 0 0 0 0 * * * 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 go
246%
so 0 0 0 0 e e a a * * * a * * * 0 0 e e 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 e 0 00
363%
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00
TOTAL UNITED STATES I jor787 I 58%
TOTAL TRAFFIC TO VISITOR'S GUIDE PAGE
2017 2022
.........................................................
ILLINOIS 3m7O% 9m2O%
00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00
/S_Si _ _J_ /.- _S _1 _
TOTAL TRAFFIC TO EXPERIENCE PAGE
2017 2022
.........................................................
ILLINOIS 3m7O% l3m3O%