HomeMy WebLinkAbout2023-11-27 - Agendas - FinalFayetteville Advertising and
Promotion Commission
November 27, 2023
Location: Fayetteville Town Center, 15 W. Mountain Street
Commissioners:
Staff:
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
Mike Wiederkehr, City Council Representative
Molly Rawn, CEO
I. Call to order at 2:00 p.m.
II. Old Business
Agenda
A. Review and approval of October minutes.
III. New Business
A. CEO Report. Molly Rawn. An executive overview of the previous month
B. Financial Report. Jennifer Walker, Vice President of Finance
C. Marketing Report. Sarah King, VP of Marketing and Communications
D. Vote. Contract with Outright for our Agency of Record.
E. Presentation and Vote. 2024 Budget
F. 2024 A&P Commission Meeting schedule
G. Additions to the agenda may be added upon request from a majority of the
commissioners.
IV. Adjourn
Fayetteville Advertising and Promotion Commission
Minutes October 23, 2023
Fayetteville Town Center
Commissioners
Present:
Commissioners
Absent:
Staff:
Todd Martin, Chair Tourism & Hospitality Representative
Andrew Prysby, Commissioner at-large
Mike Wiederkehr, City Council Representative
Chrissy Sanderson, Tourism & Hospitality Representative
Katherine Kinney, Tourism & Hospitality Representative *Via Online
Sarah Bunch, City Council Representative
Elvis Moya, Tourism & Hospitality Representative
n/a
Molly Rawn, CEO; Jennifer Walker, VP of Finance; Sarah King, VP of
Marketing and Communications
I.Chair Martin called the meeting to order at 2:00 pm and declared a quorum and
thanked Commissioner Sanderson for chairing the September meeting.
II.Old Business
A.Chair Martin presented the September minutes and hearing no additions or
corrections, he stated that the minutes stood approved as presented.
III.New Business
A.CEO Report.
Rawn opened by stating we have two full-time positions available at the A&P, one
being the Tourism Sales Manager position at Experience Fayetteville and the other
being an Event Coordinator 1 position. These positions are both on our website.
She also stated that she is very pleased with the Downtown Fayetteville Coalition –
in addition to a great Falltoberfest event, Kelly Rich also announced a generous gift
from the Tyson Family Foundation to the Downtown Fayetteville Coalition in order
for the coalition to begin a strategic planning process and governance update.
A committee met to review Agency of Record proposals and we’ll have an update
for you later in the meeting. In November, we’ll have our first meeting with Coraggio
Group to begin our Tourism Master Planning process and we’ll bring an update to
you on that.
We invested $16,000 through incentives for events in the month of September and
combined those events brought in an estimated economic impact of $2.7 million
dollars.
We submitted a bid to host the 2024 NICA (National youth interscholastic cycling
association) conference.
The Visitors Center welcomed over 1,500 visitors in September, and we welcomed
a new spotlight artist, Roxy Erickson. Brannon Pack is currently at UCI’s annual
mobility and bike city forum which is taking place in Belgium. He will be presenting
at the forum with city officials on the CycleRAP project. We are the only city in the
US to participate in this cycling safety project.
We wrapped up a great First Thursday season earlier this month. The First
Thursday events averaged 4,500 attendees per event, raised more than $24,000 in
sponsorship and more than 100 vendors and nonprofit organizations participated.
The 30th annual Lights of the Ozarks planning is underway, and we hope you can
join us for Light Night on Friday, November 17th.
Since our last meeting, the town center has hosted 20 events with Suits and
Sneakers being a great success.
There is very little availability to book an event at the town center throughout the rest
of the year. We are hosting the quarterly NWA Meeting Planners in November at
the town center with a focus on sustainability.
Looking ahead, we’ll have three football home games in November as we only had
one home football game in October, and we expect that to be reflected when we
review both October and November HMR activity and collections.
Rawn shared some upcoming cycling and running events and ended with sharing
HMR tax collection information which showed that that September collections were
down slightly, almost half a percent. This is not any cause for concern for her as we
are still up 9.7% compared to last year.
B. Financial Report. Jennifer Walker, VP of Finance
VP Walker stated that the financial report is in the packet with a P&L through
September and a Balance Sheet. The target revenue and expense percentage is
75% and our revenue is at 73% with expenditures at 70%. Our seasonally adjusted
budget shows we are .04% above budget and leaves us with net operating income of
$462,212.
Our balance sheet, including our cash and investments are approximately $4.7
million dollars. Town Center unearned revenue for the rest of 2023 is $200,000.
Commissioner Wiederkehr asked how often we made the town center an in-kind
donation versus having them pay the amount? Tyler said that he didn’t have the
number of donations at hand but many of the nonprofits either received an in-kind
sponsorship or in-kind space in exchange for sponsorship. Rawn stated that we also
acknowledged that nonprofits are a large portion of our business and that we had all
sizes of nonprofits, some of whom didn’t necessarily have affordability as an
important a factor as some smaller nonprofits.
Chair Martin asked VP Walker if she could share more in depth at our November
meeting about cash and investments listed on the balance sheet so we could better
understand our priorities and needs.
C. Marketing Report. Sarah King, VP of Marketing and Communications
VP King began by reviewing the slides and shared our first project utilizing NIL
agreements with student athletes at the University of Arkansas to promote the
ArtCourt. She also shared photos from the latest photo shoot held and also our
updated authentic branding for social media. We also visited City Park, PinPoint and
several places on Dickson Street to update our photo library.
Commissioner Moya thanked King and her team for including diverse audiences for
the photo shoot. King then showed a couple videos about cycling options that begin
and end in Fayetteville.
Mike Sells with Sells Agency said they are working on a 30-45 second cycling video
more geared towards recreational cycling. He also stated that the longer video is
getting really high video completion – close to 50%.
He then shared data on Arrivalist with points of interest insights. He shared that the
Razorback stadium was by far the most visited attraction for both day and overnight
visitors. You can see that Bud Walton is noted as #6. He also shared some
visitation observations such as local day trip visitors are significantly less likely to
visit Dickson Street, Mill District and downtown than overnight visitors.
Another interesting item for day trip visitors are high number of visits to Northwest
Arkansas Mall and Malco Cinema.
Chair Martin recognized the over 21 years of service Mike and Sells Agency has
served as the A&P’s agency of record.
D. Agency of Record Update
Commissioner Prysby gave an update on the Agency of Record review and stated
that they received 4 qualified proposals, and the committee has selected one and
we are working to finalize a contract and plan to bring it to the commission in
November.
E. Vote. Contract with Music Cities Events Unlimited.
Rawn stated that Experience Fayetteville submitted a bid to host the 2025 Music
Cities Festival. She gave some background on this festival, sharing that she first
visited a festival as a guest of Folk School Fayetteville in 2018. She stated that by
hosting a festival like this, we are not only look at ROI but we also realize that this
conference is mission driven as it helps strengthen the music economy, which is
important to our mission.
She shared that there’s not a budgetary impact for 2023 but there is a $50,000
impact for 2024 and $50,000 for 2025. It is hard to know the net impact as we will
also be seeking sponsorships such as asking Arkansas Tourism for support.
Commissioner Moya asked about the attendance numbers at both Tulsa and
Huntsville AL events and Rawn stated approximately 300 each. Rawn stated that
this festival brings people who are deeply engaged in the music industry and this
festival will highlight Fayetteville on a global music stage.
Commissioner Moya asked questions about sponsorship costs and options. He
also asked about those in NWA in the music industry and what their thoughts are
and Rawn stated that she has talked with Brian Crowne with George’s and also the
Hembrees with the Folk School of Fayetteville. Rawn also talked about the work
that happens at the conference such as conversations about music economy and
the music infrastructure including policy and practices.
Commissioner Bunch stated that what was appealing to her is that the work on
crafting policies and procedures around music is very important. Commissioner
Kinney asked if we would be able to participate in the conference and Rawn said
that yes, we would be able to attend and also involve our music industry partners
and share programming recommendations with the organizers.
Commissioner Moya clarified if the commitment was $100,000 without knowing if or
what the commitment from Arkansas Tourism might be. Rawn stated that we have
been invited by the state to apply for sponsorship and she would like to do that once
she knows if we are the host.
Rawn stated that she looked at this similar to an advertising buy. She stated that
this could be a catalyst to help music become a tourism pillar.
With no other questions or comments, Chair Martin asked for a motion made by
Commissioner Sanderson to permit the CEO to authorize an agreement with Music
Cities Events Unlimited with the cited budgetary impacts. Commissioner
Wiederkehr seconded the motion and it passed unanimously.
F. Folk School of Fayetteville Presentation.
Bernice Hembree presented an update on Folk School of Fayetteville since it’s
move to Walker Stone House just five months ago.
Since opening, it has held 41 jams, 15 varying workshops and 4 teachers using the
space regularly with 3 new teachers who have signed up.
Some of the regular Jams held include Irish Sessions, Soldier Songs and Voices,
Dad’s Night Out and more. Some of the workshops presented are beginner guitar,
Harmony Singing, Low Waste Events.
She shared that those who want to do concerts in the space also have to host a
workshop on whatever topic they choose. She then shared some of the music
lessons that were being offered. She gave the budget timeline which included a
matching grant.
She shared the fund distribution which included workshops which are paid directly to
artists and other expenses such as payroll.
Her presentation also stated that any program generating income will be split 75%
with the artist and 25% with the school. She also shared the amount of savings that
artists have realized by not having to rent space to do their craft. Hembree talked
about the instrument donation program that has been growing. She ended with a
short video that was created to highlight all that the school is offering out of its new
home at Walker Stone House.
Chair Martin thanked both Bernice and Bryan Hembree for the presentation and
said he is very proud that the commission has utilized the house in this way.
Commissioner Bunch stated that she felt so positive about the interactions the
school has had with the community. Commissioner Moya asked if there are some
touch ups to the exterior paint we can do, and Rawn stated that we could consider
some of those esthetics along with the safety items we must take care.
G. Vote. Distribution of the final budgeted installation of $15,000 to Folk School of
Fayetteville.
Commission Bunch made a motion to release the additional $15,000 of funding to
Folk School of Fayetteville per their lease agreement. This was seconded by
Commissioner Sanderson and passed unanimously.
H. Budget Preview.
VP of Finance Jennifer Walker shared the budget timeline with the budget to be
distributed November 13th to each of the commissioners. November 27th will be the
commission meeting where we’ll present the budget and we will either vote on it or
finalize it on December 11th if needed.
Rawn presented some of the budget big pictures items such as:
• Revenue is projected to be 5% over 2023 at $5.2 million.
• Town Center revenue will show 5% growth over 2023.
• Big projects will be EF Office Renovation and Coraggio Group
Master Tourism Plan.
• Year 2 Downtown Fayetteville Coalition support
• TheatreSquared funding.
• Increase retirement match to 5%.
• No projected changes to headcount.
• Plan to have a new marketing agency contract.
Commissioner Moya asked for a staff organizational chart and Rawn stated we
would be sending one to the commission.
I. Announcements
Chair Martin had two announcements. One was to recognize Kelly Rich, Executive
Director of Downtown Fayetteville Coalition who did a great job with Falltoberfest.
Chair Martin also wanted us to talk about the two Southern Living online articles on
Fayetteville. VP of Marketing and Communications Sarah King showed us the
online story and said there would be a print article in 2024. She stated we could
send out the link to both articles to the commissioners.
IV. Adjourn
With no further business, Chair Martin called for a motion to adjourn the meeting.
Commissioner Sanderson made the motion which Commissioner Prysby seconded
and the meeting was adjourned at 3:35pm.
Minutes submitted by Amy Stockton, Director of Operations, Experience Fayetteville
Fayetteville Advertising and Promotion Commission
CEO Updates
November 2023
Personnel Updates
• Julie Pennington promoted to director of destination services
• Interviews are underway for the following positions:
o Tourism Sales Manager, Experience Fayetteville
o Event Services Coordinator Level 1, Fayetteville Town Center
o Part-time Facilities Technician, Fayetteville Town Center
Tourism Activity
• We had the first meeting of our Master Tourism planning process with Coraggio
Group
o Surveys will be distributed to the commission as early as January
• Tina attended the following conferences and tradeshows in October:
o TEAMS - alongside other state DMO’s and Arkansas Tourism taking over
70 appointments
o Barber Motorcycle Show - she and others from the state operated a “Ride
Arkansas” booth.
o Music Cities Convention
• Since we last met with the commission, we have hosted these October/ early
November events that have been supported by EF
o Arkansas Optometric Association, October 19-22 , service assist.
Estimated economic impact of over $200,000
o Arkansas Country Blues and Stringband Festival, November 3-5, $2,500
in community incentives. Estimated impact of $15,000
o Northwest Arkansas Urban Land Institute Place Summit, November 8-9,
$5,000 in meeting incentives. Estimated economic impact of $50,000
• Fayetteville Bikepacking Roots Project Update
o The route development team is in town for the next two weeks as they
begin exploring potential bikepacking experiences from Fayetteville
o Renowned professional ultra-endurance athlete Kurt Refsnider is leading
the Bikepacking Routes team for the Fayetteville project
• The US Pro Cup mountain bike event has announced a return to Fayetteville 3-7,
2024.
o The year’s only HC category race in the U.S. is expected to draw
professional and amateur athletes from around the globe ahead of the
Summer Olympics in Paris
o KHG properties in Fayetteville identified as official host-hotels for the
five-day competition.
Visitors Cetner
• 1,208 visitors in October 2023
• Visitors from Colombia, Denmark, England, Frace, Ireland, Italy, Scotland and
Sweden
• Completed Ale Trail Passports: 2 from Goreville, IL and 3 from Bentonville
Marketing
• AY Magazine featured Fayetteville in a four-page travel feature in their November
issue
• Social Media engagement continues to grow - over a total of 108 accounts follow
Experience Fayetteville on Instagram and Facebook combined
• Our email marketing program is growing incrementally
o 10,800 people have subscribed to receive updates from us
• With the help of Tina Archer-Cope and Brannon Pack, we've added several new
routes and itineraries this year:
o 6 Dual-Sport Motorcycle Routes starting and ending in Fayetteville
o 12 Gravel cycling routes
o 9 Mountain biking routes
o 6 "Urban Adventures" along Fayetteville bike trails
o 9 Tag-Along Adventures (General interest itineraries)
• We piloted a media preview event for Lights of the Ozarks and were pleased with the
response and coverage by outlets including The Traveler, Univision, KUAF, KFSM,
UATV, and KHBS
Fayetteville Town Center
• Since our last meeting, the Fayetteville Town Center has hosted twenty-three
events
• FTC is thrilled to organize four distinct Holiday Markets this year, each in
collaboration with various community partners.
• FTC proudly hosted the fourth-quarter meeting of the Northwest Arkansas Travel
and Meeting Planners, bringing together local planners and tourism partners.
▪ FTC staff member, Monica Jannati participated in a panel discussion
on our innovative sustainable event model.
▪ Notably, this gathering has already resulted in a confirmed event
space booking for our venue.
• FTC is excited to report the success of the 30th official Lighting Night and Lights of
the Ozarks parade, drawing one of the largest crowds in recent years.
Proposed 2024 A&P Commission Meeting Calendar
4th Monday at 2 p.m. unless otherwise noted*
January 22
February 26
March 25
April 22
May 20* Scheduled for third Monday due to holiday.
June 24
July 22
August 26
September 23
October 28
November 25
$381,681
Monthly A&P Tax Collections 2023**
8.00%
58.30%
4.58%
15.09%
1.89%
7.48%
6.66%
4.54%
-0.49%
-2.07%
% change
from 2022
Previous YTD (Jan-Oct) HMR A&P Tax Collection Totals
2019
$3,070,055
2020
$2,467,320
2021
$3,233,272
2022
$3,819,217
2023
$4,123,262
$29,321
Prior Dues Collected
$461,660
Total HMR Collected
October Collection
(September Activity)
$66,403
Lodging
$365,935
Restaurant
+
4.30%-19.63%31.04%18.12%7.96%
% change over previous year
** This represents one half of the total HMR collections. The other half supports the Parks and Recreation department.
$356,842
$414,154
$435,355
$436,973
$440,113
$411,199
$379,564
$405,720
$461,660
Memo
To:
From:
Date:
Re:
Molly Rawn, CEO, Experience Fayetteville
Fayetteville Advertising & Promotion Commissioners
Jennifer Walker, VP Finance, Experience Fayetteville
November 15, 2023
Financial Statements – October 2023
This packet contains Experience Fayetteville Financial Statements for the month ended
October 31, 2023. The following reports are included in the packet:
Summary P&L Financials for month ended October 31, 2023
Balance Sheet for month ended October 31, 2023
Target Budget October – 83%
Revenue target 83% of budget or higher by the end of October 2023.
Expenditures target 83% or lower at October 2023.
Total Revenue YTD: $4,759,019 or 84%; We are 1% above target.
Tax Receipts - $4,123,261 (0% variance - on budget ytd)
Town Center - $ 498,264 (over budget by 13% ytd)
Other - $137,493
Total Operating Expenditure YTD: $4,153,355 or 78%; this is 5% under budget.
EF Main - $3,375,089
Town Center - $778,267
HMR tax – YTD October Collections (September activity) are now 0.5% above the
seasonally adjusted budget.
Operating Net Income is $605,663 year to date.
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year-to-Date @ October 31, 2023
Actual Budget Over/(Under)
Budget % of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue 4,123,261 4,960,000 (836,739) 83.1%
Rental Revenue 459,437 485,500 (26,063) 94.6%
Event Revenue 38,694 56,500 (17,806) 68.5%
Visitor Center Store Revenue 36,956 40,700 (3,744) 90.8%
Parking Revenue 29,821 26,000 3,821 114.7%
Advertising Revenue 3,755 3,500 255 107.3%
Grant/Other Revenue 27,100 83,000 (55,900) 32.7%
Interest and Investment Revenue 39,996 25,050 14,946 159.7%
Total Revenue 4,759,019 5,680,250 (921,231) 83.8%
Expenses
Operating Expenses
Rental Expenses 63,107 208,000 (144,893) 30.3%
Event Expenses 111,829 140,600 (28,771) 79.5%
Visitor Center & Museum Store 21,227 34,700 (13,473) 61.2%
Personnel 1,529,514 1,968,562 (439,048) 77.7%
Sales & Marketing 983,682 1,218,423 (234,741) 80.7%
Office and Administrative 690,243 825,756 (135,513) 83.6%
Bond Payments 581,500 700,000 (118,500) 83.1%
Contribution to Capital Reserves - - - 0.0%
Other grants 172,254 223,000 (50,746) 77.2%
Total Operating Expenses 4,153,355 5,319,041 (1,165,686) 78.1%
Net Operating Income/(Loss) 605,663 361,209 244,454 167.7%
Other Income
Unrealized Gain/(Loss) on Investments 25,979 0.0%
Other Expenses
FFE & Improvements 342,999 921,000 (578,001) 37.2%
Depreciation Expense 158,509 0.0%
Cost of Goods Sold (6,650) 0.0%
Net Income/(Loss) (without CX Grants)136,785 (559,791) 670,596 -24.4%
CONSOLIDATED
Year-to-Date
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year-to-Date @ October 31, 2023
Actual Budget Over/(Under)
Budget % of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue 4,123,261 4,960,000 (836,739) 83.1%
Rental and Event Revenue 29,789 49,000 (19,211) 60.8%
Visitor Center Store Revenue 36,956 40,700 (3,744) 90.8%
Advertising Revenue 3,755 3,500 255 107.3%
Grant & Other Revenue 27,100 83,000 (55,900) 32.7%
Interest and Investment Revenue 39,894 25,000 14,894 159.6%
Total Revenue 4,260,755 5,161,200 (900,445) 82.6%
Expenses
Operating Expenses
Event Expenses 90,708 110,600 (19,892) 82.0%
Visitor Center & Museum Store 21,227 34,700 (13,473) 61.2%
Personnel 1,094,139 1,399,952 (305,813) 78.2%
Sales & Marketing 973,129 1,191,902 (218,773) 81.6%
Office and Administrative 442,133 498,257 (56,124) 88.7%
Bond Payments 581,500 700,000 (118,500) 83.1%
Contribution to Capital Reserve - - - 0.0%
Other Grants 172,254 223,000 (50,746) 77.2%
Total Operating Expenses 3,375,089 4,158,411 (783,322) 81.2%
Net Income/(Loss) Before Other Revenue and Expenses 885,666 1,002,789 (117,123) 88.3%
Other Income
Unrealized Gain/(Loss) on Investments 25,979 - 25,979 0.0%
Other Expenses
FFE & Improvements 15,697 545,000 (529,303) 2.9%
Depreciation Expense 85,366
Cost of Goods Sold (6,650)
Net Income/(Loss) 817,233 457,789 333,465 178.5%
Experience Fayetteville
Year-to-Date
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year-to-Date @ October 31, 2023
Actual Budget Over/(Under)
Budget % of Budget
Revenue
Rental Revenue 459,437 485,500 (26,063) 94.6%
Event Revenue 8,905 7,500 1,405 118.7%
Parking Revenue 29,821 26,000 3,821 114.7%
Interest and Investment Revenue 102 50 52 204.0%
Total Revenue 498,264 519,050 (20,786) 96.0%
Expenses
Operating Expenses
Rental Expenses 63,107 208,000 (144,893) 30.3%
Event Expenses 21,121 30,000 (8,879) 70.4%
Personnel 435,375 568,610 (133,235) 76.6%
Sales & Marketing 10,553 26,521 (15,968) 39.8%
Office and Administrative 248,110 327,499 (79,389) 75.8%
Total Operating Expenses 778,267 1,160,630 (382,363) 67.1%
Net Income/(Loss) Before Other Revenue and Expenses (280,003) (641,580) 361,577 43.6%
Other Expenses
FFE & Improvements 327,303 376,000 (48,697) 13.0%
Depreciation Expense 73,143 0.0%
Net Income/(Loss) (680,449) (1,017,580) 337,131 66.9%
Town Center
Year-to-Date
ASSETS
Current Assets
Cash 3,515,992
Investments 1,254,192
Accounts Receivable 684,454
Prepaid Expenses 39,486
Deposits 28,369
Inventory Asset 34,834
Total Current Assets 5,557,327
Other Assets
Capital Assets
Furniture & Fixtures 121,169
Equipment 723,463
EF/CVB Building 940,410
EF/CVB Land 198,621
Building Additions 1,142,641
Walker-Stone House 1,167,218
Vehicles 122,860
Construction in Progress 104,548
Accumulated Depreciation (1,684,877)
Total Other Assets 2,836,052
TOTAL ASSETS 8,393,379
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable 52,692
Unearned Revenue 295,665
Total Liabilities 348,356
Equity
Unreserved Fund Balance 5,431,416
Operating Reserve 1,000,000
Capital Reserve 1,100,000
Temporarily Restricted Funds 382,431
Net Revenue
Gain/(Loss) on Investments 25,979
Net Revenue without Cyclocross 110,805
Net Revenue for Cyclocross (5,608) 131,175
Total Equity 8,045,022
TOTAL LIABILITIES AND EQUITY 8,393,379
Fayetteville A&P Commission
Balance Sheet
As of October 31, 2023
Memo
To: Fayetteville Advertising & Promotion Commissioners
From: Molly Rawn, CEO
Date: November 21, 2023
Re: Agreement with Outright Agency
Background
Experience Fayetteville conducts much of its marketing work through a third-party
advertising agency, typically in the form of a three-year contract. The last time an RFP
was issued was 2017. The original intent was to reissue an RFP in 2020, but that was
delayed until 2023.
In July, Experience Fayetteville issued an RFP in for a Marketing Agency of Record
and received four responses. The staff, along with Commissioner Prysby conducted
multiple interviews and reviewed the proposals.
Agency services include the following:
• Ongoing project management
• Biweekly meetings
• Audience and campaign research
• Strategy development
• Media planning, buying, and execution
• Ongoing media optimizations
• Ongoing and ad-hoc reporting
• Creative campaign concepting
• Creative production for paid media assets
• Motion & static asset development
• Ad hoc graphic design
• Managing media relations & media pitches
• Correspondence with vendors, earned media & client
Budgetary Impact
The budgetary impact could vary based on our paid media plan. Currently, Outright is
proposing a monthly fee of $19,500 for an annual total of $234,000. That amount is
reflected in the proposed 2024 budget.
Recommendation
It is our recommendation that Experience Fayetteville enter an agreement with Outright
Agency.
DRD Creative, LLC t/a Outright Agency – Master Services Agreement for _____________________ Page 1
19321.02
THIS MASTER SERVICES AGREEMENT (“Agreement”) is entered into __________,
2023 by and between DRD CREATIVE, LLC, a Maryland limited liability company, trading as
OUTRIGHT AGENCY, all of its affiliated and subsidiary entities (collectively referred to as
“Outright”) and the Fayetteville Advertising and Promotion Commission, a governmental
agency established by Ordinance No. 2310 of the City of Fayetteville pursuant to Arkansas law
(Ark. Code Ann. § 26-75-605) (“Client”; collectively Outright and Client are referred to as the
“Parties”).
RECITALS
WHEREAS, Outright is a professional firm that provides creative communication services
through various vehicles, including without limitation, branding, website design, collateral
development, motion graphics and data visualization as well as general marketing and consulting
services and anything incidental or ancillary to the above, all as used in business (collectively,
“Marketing Services” or “Services”);
WHEREAS, the Client has engaged Outright to provide Marketing Services within the
Client’s business, including without limitation any subsidiaries;
WHEREAS, Client acknowledges that Outright provides Marketing Services under this
Agreement, which may be supplemented with “Statements of Work” or other agreements signed
by the Parties that may contain additional terms and conditions relating to a specific Marketing
Service; and
WHEREAS, the Parties wish to memorialize the terms, conditions and rights conferred
upon the Parties.
NOW THEREFORE, in consideration of the foregoing Recitals (which are incorporated
into and will be deemed a substantive part of this Agreement) and the mutual promises and
covenants herein contained, the Parties hereto agree as follows:
1. DEFINITIONS. Throughout this Agreement, the following capitalized terms shall have the
meanings specified:
1.1 Best Efforts. The phrase “Best Efforts” shall mean that Outright will make their best
attempt, in good faith, to accomplish the objectives set forth in a specific Statement of
Work or project.
1.2 Control of Client. The phrase “Control of Client” shall refer to those environmental factors
to which Outright service efforts are subordinate and are impacted by the Client’s degree
of influence and management over its resources. A determination whether a factor is
within the Control of Client shall be made at Outright’s reasonable discretion.
DRD Creative, LLC t/a Outright Agency – Master Services Agreement for _____________________ Page 2
19321.02
1.3 Outside of Scope. The phrase “Outside of Scope” refers to a service requested by the Client
and/or performed by Outright which is not delineated in the specifications of a Statement
of Work, and thereby, may be subject to additional fees.
1.4 Statement of Work. The phrase “Statement of Work” refers to any offer for services and/or
product issued by Outright be it in the form of a proposal, quotation, change order,
professional service request, professional scope document, work order or statement of
work.
2. PROFESSIONAL SERVICES. For each project requiring Services, the parties will execute a
mutually agreed upon Statement of Work with respect to such project provided, however,
that neither party is obligated to enter into any Statement of Work. Product purchases will be
made pursuant to a Statement of Work, purchase order, or by a quotation to Client from which
Client places an order. The Parties agree that the terms and conditions of this Agreement shall
apply to all Statements of Work, quotations, Change Order Statements and/or purchase
orders executed simultaneous or subsequent to this Agreement and shall be deemed
incorporated into and made a part of this Agreement.
3. STATEMENT OF WORK, OUTSIDE OF SCOPE, CLIENT DELAYS & FORCE MAJEURE.
3.1. Statement of Work. Services to be provided pursuant to a Statement of Work are strictly
limited to those services listed on the Statement of Work. Any modification, enhancement,
installation, continuation of processes or any service of any kind not specifically listed on the
Statement of Work is considered “Outside of the Scope” of the Statement of Work and may
be subject to additional terms and fees.
3.2. Outside of the Scope. Outright shall not be obligated to perform any request that in its
reasonable discretion it deems is Outside of the Scope of the Statement of Work until a formal
written “Change Order Statement” is completed and signed by the Parties.
3.2.1. A Change Order Statement shall be limited to the specific items set forth therein
and shall not otherwise obviate, amend or supersede a Statement of Work unless
expressly set forth in such Change Order Statement.
3.2.2. Any hours expended by Outright to prepare a Change Order Statement requested
by Client are billable to the Client even if the Client does not ultimately approve
the requested Change Order Statement, it being acknowledged and understood
that Outright is not obligated to prepare or pursue any Change Order Statement.
3.3. Client Delays. Client acknowledges that its failure to meet scheduled dates of performance
may have a detrimental effect on meeting project milestone dates. In these circumstances,
Outright reserves the right to reasonably amend the milestone dates outlined in the Statement
of Work to reflect the delay.
3.4. Force Majeure. Outright shall be excused for the period of any delay in the performance of
any obligation hereunder when prevented from so doing by cause or causes beyond
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Outright’s control which shall include, without limitation, all labor disputes, civil commotion,
war, warlike operations, invasion, rebellion, hostilities, military or usurped power, sabotage,
governmental regulations or controls, fire or other casualty, inability to obtain any material
or services or through acts of God.
4. TRAVEL & INCIDENTAL EXPENSES. Unless otherwise provided in any Statement of Work
issued pursuant to this Agreement, amounts quoted by Outright for services under this
Agreement or any Statement of Work do not include travel or incidental expenses. The Client
agrees to pay for all actual Travel Expenses or Incidental Expenses incurred by Outright or its
subcontractors. Notwithstanding the foregoing, Outright shall be required to obtain prior
approval of the Client for all Travel Expenses, in Client’s sole discretion.
4.1. Travel Expenses. “Travel Expenses” consist of transportation costs incurred by Outright to
travel on-site to a customer's location including, but not necessarily limited to: (1) the actual
cost of economy fare travel by airplane, train, bus, taxi or other transportation other than a
personal or Outright vehicle; (2) in the event of use of a personal or Outright vehicle, Travel
Expenses shall include a mileage expense calculated by multiplying the actual miles to the
Client’s site from the nearest Outright branch office by the current Internal Revenue Service
(“IRS”) standard mileage rate for business miles; and (3) travel time, which shall equal fifty
percent (50%) of the hourly rate.
4.2. Incidental Expenses. “Incidental Expenses” consist of out of pocket expenses incurred by
Outright while on-site at a customer’s location including without limitation reasonable
lodging, meals, parking fees and tolls, and supplies for the engagement.
4.3. Invoicing. Travel and Incidental Expenses are invoiced to the Client as the expenses are
incurred.
5. PURCHASE OF LICENSED INTELLECTUAL PROPERTY.
5.1. Third-Party Owned Intellectual Property. In addition to the other provisions of this
Agreement, Client acknowledges that, it may be required to sign additional licensing or other
related agreements as required by any third-party owner of any Intellectual Property that
may be incorporated in any Service provided by Outright. For purposes of this Agreement,
“Intellectual Property” (or “IP”) shall mean any work or invention that is the result of
creativity, such as a manuscript or a design, to which one has rights and for which one may
apply for a patent, copyright, trademark or similar protection. Outright may provide the
Client with guidance on the selection of such Intellectual Property; however, Client
acknowledges that such guidance is intended as a suggestion only. The terms and conditions
of any licensing agreement in effect at the time of delivery of the Service will have the same
force and effect as though the agreement had been signed directly by the Client and the Client
agrees to adhere to the terms and conditions of any such agreement.
5.2. Third Party Owned Intellectual Property. Outright does not guarantee, assure or represent
that any third-party Intellectual Property is owned exclusively by such third-party.
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5.3. Non-Refundable. Client acknowledges and understands that the licensing of IP or sale of IP
is final, non-refundable and cannot be returned or exchanged for any reason whatsoever,
including but not limited to, the Client canceling any Statement of Work issued under this
Agreement, to the extent permissible, or canceling any service of any kind. Outright shall be
entitled to collect, and the Client shall be obligated to pay in full, any and all payments due
on the licensing or purchase of IP.
5.4. Sales Tax Exemption. Until such time as Client provides to Outright a sales tax exemption
certificate, the applicable sales tax shall be included on the invoicing of any IP, to the extent
lawfully required. The Client agrees to pay any applicable sales tax.
6. PAYMENT.
6.1. Priority of Payment Terms. The Parties acknowledge that they have mutually agreed to the
terms of payment stipulated in this Agreement or any Statement of Work issued under this
Agreement and that such amounts and due dates delineated therein are not subordinate to or
dependent upon the execution of any terms or conditions existing outside this Agreement, in
particular, but not restricted to, those terms and conditions that may exist in any financing or
leasing arrangement engaged in by the Client with any person or entity not a party to this
Agreement.
6.2. Third-Party IP Invoicing. Unless otherwise provided in any Statement of Work issued under
this Agreement, third-party IP, if any, will be invoiced in full immediately and the standard
payment term extended on invoices is “Due upon Receipt” and shall not be contingent upon
obtaining a specified result. Unless expressly otherwise set forth on a Statement of Work,
Outright will render all other invoices on a monthly basis.
6.3. Services Payment Terms. Notwithstanding anything to the contrary stated in any Statement
of Work issued under this Agreement, the standard payment term extended on service
Invoices is “Net 30 Days”.
6.4. Late Payment Interest; Cost of Collection. The Client agrees that any payment that remains
unpaid thirty (30) days after payment is due shall accrue interest at twelve percent (12%) per
annum. Client agrees to pay all costs incurred by Outright in the collection of any outstanding
fees, interest, and including without limitation reasonable attorneys’ fees, and court and other
costs.
6.5. Payment Retention. If, for any reason whatsoever, the Client declines, cancels or prevents the
rendering of services engaged under this Agreement prior to the completion of such services
(“Cancellation”), Outright shall be entitled to full payment for the services it provided
through the date of Cancellation. Should the amounts collected by Outright for services from
the Client be in excess of the amount due Outright through the date of Cancellation, such
excess shall be refunded to the Client by Outright within thirty (30) days of the Cancellation
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date. The amount due for services through the date of Cancellation shall be determined by
Outright in collaboration with Client.
7. ACCEPTANCE.
7.1. Acceptance Period. Upon the later of (1) receipt of any Statement of Work deliverable or
service, or (2) upon the receipt of invoice for services billed as incurred, the Client shall, within
a period of thirty (30) days of such receipt, provide Outright with a detailed written
description of all objections, if any, relative to the deliverable or service (“Acceptance
Period”). Outright shall, as expeditiously as possible, provide resolution (“Rework”) for any
such objections that Outright and the Client mutually determine fall within the intended
scope of the Statement of Work. The Client shall be deemed to have accepted the deliverable
or service unless the Client provides Outright written notice of such objections within the
Acceptance Period.
7.2. Resolution Period. Within ten (10) days after the receipt of the Rework, the Client must notify
Outright in writing if any of the “agreed to” objections provided under Section 7.1 remain
unsatisfied. If the Client does not so notify Outright in writing of any remaining objections
within the such ten (10) day period, the Rework shall be deemed to have been accepted by
the Client. If it is mutually determined that any remaining objections fall within the originally
intended scope of the agreement, Outright will make additional revisions as expeditiously as
possible and the process described in this section shall be repeated until the objections are
resolved.
7.3. Charges for Rework. Hours incurred for Rework as a result of factors under the Control of
the Client shall be invoiced to the Client at the rates set by Outright in the applicable Statement
of Work. Hours incurred for Rework as a result of factors under the control of Outright shall
not be billable to the Client. The determination of whether a factor is in the control of Outright
or the Client is made by Outright in collaboration with Client. At Outright’s reasonable
discretion, Outright may detail the billable services for Rework in a Change Order Statement
in accordance with other provisions of this Agreement.
8. CLIENT RESPONSIBILITIES.
8.1. Compliance. It is the sole responsibility of the Client to ensure that its systems, processes and
procedures comply with any and all relevant laws or regulations and any industry, reporting
or process standard including, but not limited to, Securities & Exchange Commission
standards, FASB, AICPA or any other accounting standards, IRS regulations, HIPAA privacy
Client Negligence and/or Performance Failure. Assistance or support provided by Outright
in cases of Client negligence or performance failure(s) may, at Outright’s sole discretion, be
billable to the Client.
8.2. Insurance Requirements. The Client shall carry and maintain insurances of the types and
minimum coverage amounts as reasonably requested by Outright under the Statement of
Work or as requested by Outright thereafter, in all such cases naming Outright as an
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additional insured. All such insurance shall be issued by a highly rated company as approved
by Outright. The Client shall have no rights in any policy or policies of insurance maintained
by Outright, or any proceeds paid or payable therefrom, and shall not, by reason of this
Agreement be entitled to be named as a named insured thereunder, except as expressly
otherwise set forth in a Statement of Work or Change Order. The Client hereby releases
Outright, its members, owners, officers, directors, employees, agents from liability or
responsibility or anyone claiming through or under them by way of subrogation or otherwise,
for any loss or damage to property covered by valid and collectable “Special Perils Insurance”,
or other policy of insurance covering casualty losses, even if the fire or other casualty has been
caused by the fault or negligence of Outright or anyone for whom that party may be
responsible.
9. OWNERSHIP RIGHTS.
9.1. Custom Applications. Client acknowledges that any custom applications, designs, graphics
or other IP provided or created by Outright, or collaboratively with the Client, are on a non-
exclusive basis and that Outright or Client retains the right to re-use the substantially similar
applications, designs, graphics or other IP.
9.2. Intellectual Property. All Intellectual Property, ideas, concepts, know-how, processes or
techniques developed pursuant to this Agreement by Outright, or collaboratively with the
Client, belong solely to Outright. However, subject to Outright’s rights under Section 9.1, the
Client shall be a co-owner of any designs, graphics, code or other materials that Outright
creates pursuant to this Agreement for the Client; for the avoidance of doubt, Client’s
ownership shall not prevent Outright from re-using a substantially similar application, design
or graphic or other IP for any other customer, upon obtaining client’s prior written consent,
which consent shall not be unreasonably conditioned, withheld or delayed.
9.3. Portfolio Use. Regardless of any provision of this Agreement, with permission from the
Client, Outright may use any Intellectual Property, designs, graphics or any other marketing
materials that Outright created or provided pursuant to this Agreement for its professional
portfolio and may display any such items to other customers or any other person for any other
reasonable purposes. Client may use any Intellectual Property, designs, graphics or any other
marketing materials that Outright created or provided pursuant to this Agreement for its
professional portfolio and may display any such materials.
9.4. Safeguarding of Proprietary Rights. The Client agrees to safeguard Outright’s proprietary
Services and IP with the same degree of care and skill that it accords Client's own proprietary
data. The Client's employees or agents shall not divulge, transfer, assign, sell, license,
franchise, sublease or otherwise convey the Services and IP or any portion thereof, whether
in printed, electronic, magnetic or any other form to any third party, person, or organization
except as contained in this Agreement so long as Outright labels in writing such information
as confidential.
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9.5. Client’s Confidentiality. Subject to the limitations set forth below, with respect to financial,
statistical, or personnel data relating to the Client's business which is clearly designated as
confidential, and which is submitted to Outright by the Client in order to carry out this
Agreement, Outright will instruct its personnel to keep such information confidential by
using the same care and discretion that it uses with similar data that Outright designates as
confidential.
9.5.1. Outright shall not be required to keep confidential any data which is or becomes
publicly available, is within Outright’s possession prior to the execution of this
Agreement, is independently developed by Outright outside the scope of this
Agreement or can be rightfully obtained from third parties.
9.5.2. Outright shall not be required to keep confidential any ideas, concepts, know-
how, processes or techniques relating to data processing submitted to it or
developed during the course of this Agreement by Outright’s personnel or jointly
by Outright’s and the Client's personnel.
9.6. Non-Exclusive Services. Client acknowledges that services provided under this Agreement
are on a non-exclusive basis and Outright is not restricted in any way from performing similar
services for other clients either concurrent with, or subsequent to, this Agreement.
Notwithstanding the foregoing, during the term of this Agreement, Outright shall be
prohibited from performing similar services for any other advertising and promotion
commission, visitor’s center, or equivalent city tourism office or agency, within a 120-mile
radius of Fayetteville, Arkansas.
9.7. Non-Exclusive Personnel. The Client acknowledges that Outright personnel provided under
this Agreement are provided on a non-exclusive basis and that Outright possesses full control
of the assignment of its personnel. The Client acknowledges that Outright may from time to
time assign the same personnel to multiple clients, either concurrent with, or subsequent to,
this Agreement. Outright will make every effort consistent with sound business practices to
honor the specific requests of the Client with regard to the assignment of Outright personnel.
9.8. Right to Use Subcontractors. The Client acknowledges and agrees that Outright may, without
consent, approval or notice to Client, subcontract with any affiliated or unaffiliated
subcontractors or companies for Services to be performed under any Statement of Work or
this Agreement, all as may be required from time to time; provided, however, that Outright
shall be fully responsible for the acts and omissions of any subcontractor.
9.9. Non-Solicitation of Employees; Non-Compete. The Client warrants and agrees that it will not
hire, retain, solicit or attempt to hire or solicit Outright personnel to work for the Client
directly, or indirectly through any associated or affiliated entity or as an independent
contractor or with another provider, for the duration of the term (including renewals) of this
Agreement and for one (1) year after the termination of this Agreement.
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9.9.1. Client acknowledges and understands that any attempt to hire or persuade an
Outright employee or subcontractor to terminate his or her employment or other
relationship with Outright is a direct violation and/or interference with such
employment relationship as well as any existing non-compete agreement
between the employee and Outright.
9.9.2. The Client acknowledges that it shall be directly liable to Outright for such
violation/interference, and as such, shall pay a penalty to Outright equal to two
(2) times the annual total compensation (including without limitation all bonuses)
of the solicited employee or thirty (30) times the total payments to a subcontractor
during the most recent twelve (12) month period.
9.9.3. The Parties expressly agree and acknowledge that it is not their intention that this
Section 9.9 violate any public policy or statutory or common law. If a court of
competent jurisdiction renders a ruling (sustained on appeal, if any) holding that
any one or more of these provisions, including the stated term and geographic
coverage, constitutes an unreasonable restriction, then the parties specifically
agree that these provisions will not be rendered void but will apply to such extent
and as to such time period and geographic areas as the court may determine
constitutes a reasonable restriction under the circumstances.
9.9.4. The Client acknowledges and agrees that the covenants contained in this Section
9.9 are reasonable covenants under the circumstances, and further agrees that if,
in the opinion of any court of competent jurisdiction, such covenants are not
reasonable in any respect, such court shall have the right, power and authority to
excise or modify such provision or provisions of such covenants as to the court
shall appear not reasonable and to enforce the remainder of such covenants as so
amended.
10. LIMITATION ON LIABILITY.
10.1. Limitation of Liability. EXCEPT IN THE CASE OF INTENTIONAL MIDCONDUCT OR
GROSS NEGLIGENCE BY OUTRIGHT OR OUTRIGHT’S AGENTS, EMPLOYEES, OR
CONTRACTORS, CLIENT ACKNOWLEDGES AND AGREES THAT OUTRIGHT’S
LIABILITY UNDER THIS AGREEMENT IS LIMITED TO THE SPECIFIC PERFORMANCE
OF THE DELIVERABLES AS DEFINED IN ANY STATEMENT OF WORK ISSUED UNDER
THIS AGREEMENT, AS DIRECTED AND APPROVED BY CLIENT.
10.2. Waiver of Damages Liability. IN THE EVENT ANY PROVISION OF THIS SECTION IS
HELD INVALID, ILLEGAL OR UNENFORCEABLE IN ANY RESPECT, OUTRIGHT'S
LIABILITY UNDER THIS AGREEMENT WILL NOT EXCEED THE FEES RELATING TO
THE WORK GIVING RISE TO THE CLAIM PAID BY THE CLIENT TO OUTRIGHT UNDER
THIS AGREEMENT OR ANY STATEMENT OF WORK ISSUED HEREUNDER, OR IF NO
SUCH AMOUNT IS IDENTIFIED, AN AMOUNT REASONABLY ASCRIBED BY
OUTRIGHT IN CONNECTION WITH SUCH CLAIM. HOWEVER, SUCH WAIVER OF
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DAMAGES PROVIDED HEREUNDER IS AGREED TO SO LONG AS CLIENT HAS
APPROVED AND AGREED TO OUTLOOK’S PERFORMANCE AND DELIVERABLES.
10.3. Exception. Nothing in this Section 10 shall be construed to limit the rights and
responsibilities of the Parties relating to indemnification under this Agreement in any way.
11. LIMITED WARRANTIES.
11.1. Limited Professional Service Warranty. OUTRIGHT WARRANTS ONLY THAT THE
SERVICES PROVIDED UNDER THIS AGREEMENT AND ANY STATEMENT OF WORK
ISSUED HEREUNDER SHALL BE PERFORMED IN A PROFESSIONAL AND WORKMAN-
LIKE MANNER CONFORMING TO COMMERCIALLY REASONABLE STANDARDS AND
PRACTICES.
11.2. Limited Warranty on Products. THE CLIENT’S SOLE AND EXCLUSIVE REMEDY FOR IP
PURCHASED OR LICENSED FROM THIRD-PARTIES, IN EQUITY OR IN LAW, SHALL BE
LIMITED TO THE EXTENT OF THE PROVIDER OR SELLER.
11.3. Remedy for Breach of Warranties. THE CLIENT’S SOLE REMEDY WITH RESPECT TO A
BREACH OF WARRANTY UNDER THIS AGREEMENT SHALL BE TO HAVE OUTRIGHT
REWORK IN ACCORDANCE WITH THIS AGREEMENT. IF OUTRIGHT IS UNABLE TO
DO SO WITHIN A REASONABLE PERIOD OF TIME, THEN, SUBJECT TO THE
LIMITATIONS SET FORTH IN THIS AGREEMENT, THE CLIENT MAY PURSUE ITS
REMEDIES AT LAW TO RECOVER DIRECT DAMAGES RESULTING FROM THE BREACH
OF THE APPLICABLE WARRANTY ONLY IF THE CLIENT HAS PAID ALL MONIES
OWED TO OUTRIGHT UNDER THIS AGREEMENT OR ANY STATEMENT OF WORK
HEREUNDER. THE REMEDIES SPECIFIED IN THIS SECTION ARE EXCLUSIVE AND IN
LIEU OF ALL OTHER REMEDIES, AND REPRESENT OUTRIGHT’S SOLE OBLIGATIONS
FOR A BREACH OF ANY OF THE FOREGOING WARRANTIES. IN ORDER TO VALIDATE
ANY OF THE LIMITED WARRANTIES, THE CLIENT MUST PROVIDE THE
APPROPRIATE NOTICE OF OBJECTIONS AS REQUIRED PURSUANT TO THIS
AGREEMENT.
11.4. Disclaimer of Warranty. THE LIMITED WARRANTIES SPECIFIED IN THIS SECTION
ARE THE CLIENT’S SOLE AND EXCLUSIVE WARRANTIES. OUTRIGHT MAKES NO
OTHER WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, IN WHOLE OR IN PART,
OR ANY OTHER MATTER UNDER THIS AGREEMENT. OUTRIGHT EXPLICITLY
DISCLAIMS ALL WARRANTIES OF INFRINGEMENT, MERCHANTABILITY AND OF
FITNESS FOR A PARTICULAR PURPOSE.
12. TERM & TERMINATION.
12.1. Term of Agreement. The initial term of this Agreement shall be for twelve (12) months
commencing January 1, 2024 and ending December 31, 2024.
12.2. Termination.
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12.2.1. Without Cause. This Agreement may be terminated by Outright without cause
effective provided that Outright delivers written notice of its intent to terminate to
the Client at least thirty (30) days prior. This Agreement may be terminated by
Client without cause provided that the Client delivers written notice of its intent
to terminate to Outright at least thirty (30) days prior to such termination.
12.2.2. With Cause. At any time during the term in effect, should either party be in breach
of any of its obligations under this Agreement and such breach shall remain
unresolved for thirty (30) days following written notice of such breach by the
aggrieved party, at its election, the aggrieved party may terminate this Agreement
with notice to the other party.
12.2.2.1. “With Cause” shall mean:
i) The initiation of an assignment for the benefit of creditors of either
party;
ii) The voluntary filing of a petition for bankruptcy on either party;
iii) The adjudication of bankruptcy or insolvency by either party;
iv) The consent in an appointment of a Trustee or Receiver to the
liquidation of substantially all property;
v) The reorganization, liquidation, sale or dissolution of a party’s
business entity;
vi) A party files a petition seeking liquidation, reorganization,
composition, arrangement, reorganization, readjustment or similar
relief under any statute, law or regulation;
vii) The Client’s solicitation or hiring of Outright’s employees;
viii) A material breach of this Agreement or a Statement of Work; and
ix) The Client’s failure to make timely payment, and such failure
continues for a period of (5) business days.
12.2.2.2. “With Cause” does not include delay or failure of performance on the part
of either party wherein such delay or failure is due to circumstances
beyond such party’s reasonable control.
12.2.2.3. Any termination of this Agreement pursuant to Section 12.2 shall become
effective ten (10) days following receipt of notice of such termination.
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12.2.2.4. Except as otherwise set forth in this Agreement, upon termination,
Outright shall transfer all work-product in Outright’s possession to the
Client, to the extent permissible as well as all contracts with any third-
parties that pertain to Services provided hereunder. The Client expressly
acknowledges that Outright is a signatory to certain union agreements
covering talent used in broadcast materials, which generally cannot be
assigned except to signatories to such collective bargaining agreements
governing services rendered by such talent.
12.3. Survivability. The rights and obligations owed to Outright and acquired through the date
of termination shall survive the termination of this Agreement and shall not be affected in
any way by such termination.
12.4. Effect on Statement of Works. The provisions of this section are notwithstanding any
additional terms for termination stated in any Statement of Work issued under this
Agreement, and as such, said additional terms shall also apply. Unless prohibited in any
Statement of Work issued under this Agreement, the termination of this Agreement shall also
simultaneously terminate all Statements of Work in effect at the time of termination.
13. OUTRIGHT REMEDIES. In the case of a breach by the Client of any provision of this
Agreement, Outright shall be solely entitled to direct damages and late fees, as follows:
13.1. Late Fees. Client shall pay Outright an amount equal to the underpaid fees, if any, based
on the then-current Outright price list as well as any applicable late charges; late charges shall
be assessed against the amount due in arrears at one and one-half percent (1.5%) per month
in addition to any interest charges;
14. MISCELLANEOUS PROVISIONS.
14.1. Incorporation & Priority of Terms. The terms and provisions of this Agreement shall govern
and be incorporated in all Statements of Work issued under this Agreement. The terms and
conditions of this Agreement shall supersede any conflicting provisions contained in any
proposal or Statement of Work issued under this Agreement. The terms and conditions of this
Agreement shall supersede any conflicting provisions proposed by the Client in its terms and
conditions of its purchase orders, contract or other notifications. Any payment received by
Outright or performance by Outright shall not be deemed to be, or be evidence of, Outright's
assent to any terms and conditions other than the terms and conditions stipulated in this
Agreement. Payment made by the Client shall be deemed to be, and shall evidence, Client's
assent to the terms and conditions of this Agreement.
14.2. Entire Agreement. This Agreement constitutes the entire understanding between the
Parties with respect to the subject matter hereof, and supersedes any and all prior and
contemporaneous agreements, understandings, negotiations, representations by Outright,
and discussions of the Parties, whether oral or written.
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14.3. Amendments. No amendment, modification or waiver of this Agreement shall be binding
unless executed in writing by the Parties hereto, or in the case of a waiver, by the party
granting such waiver.
14.4. Waiver of Terms. No waiver of any provision of this Agreement shall constitute a waiver
of any other provision of this Agreement, whether or not similar, nor shall such waiver
constitute a continuing waiver unless otherwise expressly provided in writing.
14.5. Indemnification. Each party shall defend, indemnify and hold harmless the other party and
its affiliates and their officers, directors, employees and managers from and against all actions,
suits, claims, losses, liabilities and damages, costs, expenses, including, but not limited to,
reasonable attorneys’ fees, arising from or relating to any act or omission of the indemnifying
party, its employees, agents, or other independent contractors or arising out of or relating to
this Agreement, including, but not limited to, the infringement of a third party’s intellectual
property or other proprietary rights. Each party will promptly notify the other of any claim
asserted against it for which such indemnification is sought. In no event will the
indemnifying party, without the reasonable consent of the indemnified party, enter into any
settlement that reasonably can be expected to require a material affirmative obligation of,
results in any ongoing material liability to, or materially prejudices the indemnified party.
14.6. Governing Law. The rights of the parties granted under this Agreement shall be governed,
construed, and enforced under the laws of the State of Maryland.
14.7. Jurisdiction; Venue. The Parties consent to the jurisdiction of the state and federal courts
situated in Maryland as to all claims or disputes arising hereunder. All parties agree that
venue shall be proper in the District and Circuit Courts of Baltimore County, Maryland or the
United States District Court for the District of Maryland.
14.8. Waiver of Trial by Jury. THE PARTIES KNOWINGLY AND VOLUNTARILY WAIVE
ANY AND ALL RIGHTS TO A JURY TRIAL IN ANY PROCEEDING INVOLVING ANY
DISPUTE OR MATTER ARISING UNDER THIS AGREEMENT.
14.9. Severability. If any provision or part of any provision of this Agreement shall for any
reason be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions or the remaining part of any effective
provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal
or unenforceable provision or part thereof had never been contained herein, but only to the
extent of its invalidity, illegality, or unenforceability.
14.10. Assignment. This Agreement may not be assigned without the prior written consent of the
parties, which consent shall not be unreasonably conditioned or withheld.
14.11. Modification of Provisions. No modification of this Agreement shall be binding on either
party unless it is in writing and signed by both Outright and Client.
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14.12. Use of Names. Outright may use the name of the Client in any advertising or other form
of publicity with the prior written permission of the Client.
14.13. Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original, and all of which together shall constitute one and the same agreement.
This Agreement may be executed and delivered via facsimile or e-mail transmission with the
same force and effect as if it were executed and delivered by the parties in the presence of one
another.
14.14. Notice. Unless otherwise provided in this Agreement, any notice required or permitted
hereunder to the parties hereto will be deemed to have been duly given if delivered in writing
personally, sent via e-mail or mailed first class, registered or certified mail to Client and/or
Outright, Inc. at the addresses set forth below:
IF TO CLIENT: Fayetteville Advertising & Promotion Commission
Attn: CEO
21 South Block Avenue, Suite 100
Fayetteville, Arkansas 72701
IF TO OUTRIGHT: DRD Creative, LLC t/a Outright Agency
Attn: Darin Ruchirek
Outright
9841 Washingtonian Blvd #200,
Gaithersburg, MD 20878
Darin@WeAreOutright.com
14.15. Counsel. Throughout the course of the negotiations leading to the execution of this
Agreement, both parties acknowledge that they have had the opportunity to consult with
legal counsel of their own choice regarding the provisions of this Agreement.
14.16. Rule of Construction. The Parties have reviewed and commented on this Agreement. The
normal rule of construction to the effect that any ambiguities are to be resolved against the
drafting party may not be employed in the interpretation of this Agreement or any
amendments, Statement of Work, or exhibits hereto.
14.17. Headings. Section headings or captions are used in this Agreement for convenience only
and do not limit or otherwise affect the meaning of any provision of this Agreement.
14.18. Binding Effect. This Agreement is binding upon and inures to the benefit of the successors
and assigns of the Parties.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have each
caused to be affixed hereto its hand and seal by the undersigned duly authorized representatives
on the day indicated hereinbefore.
DRD Creative, LLC t/a Outright Agency – Master Services Agreement for _____________________ Page 14
19321.02
DRD CREATIVE, LLC, t/a OUTRIGHT AGENCY _____________________________
By: By:
Name: Jared Schwartz Name:
Company: Outright Company:
Title: VP of Strategy Title:
1
Fayetteville A&P Commission
Consolidated Budget
2024 Proposed Budget Summary
Account Number Account Name
Consolidated
Budget 2023
Consolidated
Budget 2024
Experience
Fayetteville
Budget 2023
Experience
Fayetteville
Budget 2024
EF %
Change vs
2023
Town Center
Budget
2023
Town Center
2024
FTC %
Change vs
2023
REVENUE
41000 Hotel, Motel, Restaurant Taxes 4,960,000 5,208,000 4,960,000 5,208,000 5% - - 0%
42000 Rental Income 497,500 587,340 12,000 9,000 -25% 485,500 578,340 19%
43000 Event Income 44,500 60,000 37,000 46,350 25% 7,500 13,650 82%
44000 Sales 40,700 46,500 40,700 46,500 14% - - 0%
45000 Parking Revenue 26,000 27,000 - - 0% 26,000 27,000 4%
46000 Advertising Income 3,500 3,500 3,500 3,500 0% - - 0%
48000 Other Revenue 83,000 210,000 83,000 210,000 153% - - 0%
49000 Interest Income 25,050 25,100 25,000 25,000 0% 50 100 100%
TOTAL REVENUE 5,680,250 6,167,440 5,161,200 5,548,350 8% 519,050 619,090 19%
EXPENSE
50000 Rental/and Event Expenses 395,300 409,669 157,300 143,169 -9% 238,000 266,500 12%
60000 Payroll and Related Expenses 1,968,562 2,085,144 1,399,952 1,412,532 1% 568,610 672,612 18%
70000 Operating Expenses 2,040,574 2,390,159 1,690,159 1,983,704 17% 350,415 406,455 16%
71000 Marketing 963,421 975,512 946,000 951,512 1% 17,421 24,000 38%
72000 Sales and Development 252,402 552,030 245,902 542,880 121% 6,500 9,150 41%
73000 Office and Administrative 208,326 237,658 184,676 191,414 4% 23,650 46,244 96%
74000 Travel 67,735 61,825 58,635 50,925 -13% 9,100 10,900 20%
75000 IT Expenses 162,346 116,927 148,046 104,577 -29% 14,300 12,350 -14%
76000 Insurance 28,850 34,001 24,000 27,896 16% 4,850 6,105 26%
77000 Facilities 357,494 412,206 82,900 114,500 38% 274,594 297,706 8%
80000 Tourism Support 223,000 511,500 223,000 511,500 129% - - 0%
90000 Other Expenses 800,000 800,000 800,000 800,000 0% - - 0%
TOTAL EXPENSE 5,427,436 6,196,472 4,270,411 4,850,905 14% 1,157,025 1,345,567 16%
Net Revenue/(Loss)252,814 (29,032) 890,789 697,445 -22% (637,975) (726,477) 14%
77800 Capital Expenditures 1,050,000 971,000 545,000 511,000 -6% 505,000 460,000 -9%
Adjusted Net Revenue/(Loss)(797,186) (1,000,032) 345,789 186,445 -46% (1,142,975) (1,186,477) 4%
2024 Proposed Budget
Appropriation Document
3
Fayetteville A&P Commission
Consolidated Budget
2024 Proposed Budget for Adoption
Account Number Account Name
Consolidated
Budget 2024
Experience
Fayetteville
Budget 2024
Town Center
2024
REVENUE
40000 Revenue
41000 Hotel, Motel, Restaurant Taxes 5,208,000 5,208,000 -
42000 Rental Income 587,340 9,000 578,340
42100 Facility Rental 394,065 - 394,065
42200 Rental Items 34,020 - 34,020
42300 Alcohol Sales 77,775 9,000 68,775
42400 Rental Services 81,480 - 81,480
43000 Event Income 60,000 46,350 13,650
43100 1st Thursday Income 32,650 32,650 -
43200 LOTO Income 13,700 13,700 -
43400 Other Event Income 13,650 - 13,650
44000 Sales 46,500 46,500 -
44200 Visitor Store Sales 46,500 46,500 -
44210 Regular Store Sales 42,000 42,000 -
44220 Consignment Sales 4,500 4,500 -
45000 Parking Revenue 27,000 - 27,000
45100 Parking Machine Revenue 12,000 - 12,000
45200 Parking Lease Revenue 15,000 - 15,000
46000 Advertising Income 3,500 3,500 -
46200 Banner Income 3,500 3,500 -
48000 Other Revenue 210,000 210,000 -
48200 Other Revenue 125,000 125,000 -
48800 Other Grants / DSAC 85,000 85,000 -
49000 Interest Income 25,100 25,000 100
49001 Investment Account Interest 10,000 10,000 -
49002 Checking Account Interest 15,100 15,000 100
TOTAL REVENUE 6,167,440 5,548,350 619,090
EXPENSE
50000 Rental/and Event Expenses 409,669 143,169 266,500
51000 Rental Expenses 234,500 3,000 231,500
51200 Linens 27,000 - 27,000
51300 Alcohol and Bar Supply 97,500 3,000 94,500
51310 Alcohol 88,000 3,000 85,000
51320 Bar Supplies 9,500 - 9,500
51400 Rental Services 110,000 - 110,000
52000 Event Expenses 121,550 86,550 35,000
52100 1st Thursday Expenses 45,000 45,000 -
52200 LOTO Expenses 32,900 32,900 -
4
Fayetteville A&P Commission
Consolidated Budget
2024 Proposed Budget for Adoption
Account Number Account Name
Consolidated
Budget 2024
Experience
Fayetteville
Budget 2024
Town Center
2024
52400 Other Event Expenses 43,650 8,650 35,000
53000 Visitors Center & Museum Store 53,619 53,619 -
53200 Visitors Center 49,619 49,619 -
53210 Goods for Sale 33,470 33,470 -
53220 VC Expenses 16,149 16,149 -
53300 Consignment Sales Expenses 4,000 4,000 -
60000 Payroll and Related Expenses 2,085,144 1,412,532 672,612
61000 Wages 1,578,557 1,097,056 481,501
62000 Payroll Tax Expense 123,861 85,227 38,634
62100 Federal (941) Payroll Taxes 116,661 80,832 35,829
62300 SUTA 7,200 4,395 2,805
63000 Benefits 256,181 186,379 69,802
63100 Health and Other Employee Insurance 177,361 128,673 48,689
63200 Company Retirement Contributions 73,819 52,706 21,113
63300 Car Allowance 5,000 5,000 -
64000 Contract Labor 114,500 36,500 78,000
65000 Payroll Processing Fees 12,045 7,370 4,675
70000 Operating Expenses 2,390,159 1,983,704 406,455
71000 Marketing 975,512 951,512 24,000
71100 Advertising Expenses 387,800 382,800 5,000
71110 Agency Advertising 300,000 300,000 -
71120 Non-Agency Advertising 87,800 82,800 5,000
71200 Agency Retainer and PR 231,720 231,720 -
71250 Mobile Marketing 9,672 9,672 -
71300 Promotion 221,900 207,900 14,000
71310 Marketing Programs 109,600 95,600 14,000
71315 Photo and Video 65,000 65,000 -
71350 Banners 47,300 47,300 -
71400 Printing 96,800 93,000 3,800
71410 Visitors Guide 60,000 60,000 -
71420 Other Brochures 36,800 33,000 3,800
71500 Website 13,920 12,720 1,200
71600 Mailings 13,700 13,700 -
72000 Sales and Development 552,030 542,880 9,150
72100 Promotional Items 39,000 35,000 4,000
72300 Groups 15,000 15,000 -
72400 Sports and Cycling 129,500 129,500 -
72500 Meetings 95,360 95,360 -
5
Fayetteville A&P Commission
Consolidated Budget
2024 Proposed Budget for Adoption
Account Number Account Name
Consolidated
Budget 2024
Experience
Fayetteville
Budget 2024
Town Center
2024
72600 Memberships 30,025 27,375 2,650
72700 Tourism & Client Devel. 243,145 240,645 2,500
73000 Office and Administrative 237,658 191,414 46,244
73100 Office Expenses 79,498 44,554 34,944
73110 Office Supplies 9,800 6,500 3,300
73120 Office Equipment Leases 12,494 5,650 6,844
73130 Office Equipment Purchases 20,500 3,500 17,000
73140 Subscriptions 11,104 11,004 100
73150 Employee Relations 16,175 11,675 4,500
73160 Training 8,600 5,600 3,000
73170 Postage & Shipping 825 625 200
73200 Fees 6,200 3,200 3,000
73210 Bank Service Charges 400 400 -
73220 Credit Card Fees 5,800 2,800 3,000
73400 Business Taxes & Licenses 10,300 2,000 8,300
73500 Accounting, Audit & Legal 37,500 37,500 -
73510 Accounting Fees 500 500 -
73520 Audit Fees 30,000 30,000 -
73530 Legal Fees 7,000 7,000 -
73900 Collection Expenses 104,160 104,160 -
74000 Travel 61,825 50,925 10,900
74100 Lodging 28,125 23,725 4,400
74200 Mileage 8,625 5,725 2,900
74300 Transportation 17,175 14,675 2,500
74400 Meals Out of Town 7,900 6,800 1,100
75000 IT Expenses 116,927 104,577 12,350
75100 Computer Hardware 13,650 9,600 4,050
75200 Software 45,119 37,619 7,500
75300 IT Support and Consulting 58,158 57,358 800
76000 Insurance 34,001 27,896 6,105
76100 Insurance - Building 29,501 23,396 6,105
76200 Insurance - W/C 4,500 4,500 -
77000 Facilities 412,206 114,500 297,706
77100 Rent 22,706 2,000 20,706
77200 Internet & Telephone 40,000 15,000 25,000
77300 Utilities 138,800 21,000 117,800
77310 Electric 99,000 14,000 85,000
77320 Gas 29,500 4,500 25,000
77330 Water 10,300 2,500 7,800
6
Fayetteville A&P Commission
Consolidated Budget
2024 Proposed Budget for Adoption
Account Number Account Name
Consolidated
Budget 2024
Experience
Fayetteville
Budget 2024
Town Center
2024
77400 Repairs and Maintenance 135,000 65,000 70,000
77500 Janitorial Supplies 36,500 1,500 35,000
77600 Maintenance Contracts 39,200 10,000 29,200
80000 Tourism Support 511,500 511,500 -
80100 Community Event Incentives 130,000 130,000 -
80300 Theatre Squared Contribution 200,000 200,000 -
80700 Other Grants / DSAC 85,000 85,000 -
80900 Downtown Fayetteville Coalition 96,500 96,500 -
90000 Other Expenses 800,000 800,000 -
90100 Bond Payments 700,000 700,000 -
90200 Contribution to Capital Reserve 100,000 100,000 -
TOTAL EXPENSE 6,196,472 4,850,905 1,345,567
Net Revenue/(Loss) (29,032) 697,445 (726,477)
77800 Capital Expenditures 971,000 511,000 460,000
Adjusted Net Revenue/(Loss)(1,000,032) 186,445 (1,186,477)
2024 Proposed Budget
Experience Fayetteville
Detail
8
Fayetteville A&P Commission
Experience Fayetteville - Detail
2024 Proposed Budget
Experience
Fayetteville 2023
Budget
Experience
Fayetteville 2023
Projected
Experience
Fayetteville 2024
Proposed Budget
EF % Change
vs 2023
BUDGET
REVENUE
Revenue
Hotel, Motel, Restaurant Taxes 4,960,000 4,960,000 5,208,000 5%
HMR Taxes 4,870,000 4,850,000 5,163,500 6%
PY HMR 90,000 110,000 44,500 -51%
Rental Income
Alcohol Sales 12,000 7,000 9,000 -25%
Event Income 37,000 35,500 46,350 25%
1st Thursday Income 25,000 23,500 32,650 31%
LOTO Income 12,000 12,000 13,700 14%
Sales 40,700 42,500 46,500 14%
Visitor Store Sales 40,700 42,500 46,500 14%
Regular Store Sales 38,000 38,000 42,000 11%
Consignment Sales 2,700 4,500 4,500 67%
Advertising Income 3,500 3,500 3,500 0%
Banner Income 3,500 3,500 3,500 0%
Other Revenue 83,000 110,100 210,000 153%
Other Revenue 0 10,300 125,000 0%
Other Grants /DSAC 83,000 99,800 85,000 2%
Interest Income 25,000 44,000 25,000 0%
Investment Account Interest 10,000 13,000 10,000 0%
Checking Account Interest 15,000 31,000 15,000 0%
TOTAL REVENUE 5,161,200 5,202,600 5,548,350 8%
EXPENSE
Rental/and Event Expenses 145,300 140,900 143,169 -1%
Rental Expenses 6,000 1,000 3,000 0%
Alcohol 6,000 1,000 3,000 0%
Event Expenses 104,600 108,400 86,550 -17%
1st Thursday Expenses 67,200 67,000 45,000 -33%
LOTO Expenses 28,400 28,400 32,900 16%
Other Event Expenses 9,000 13,000 8,650 -4%
Visitors Center & Museum Store 34,700 31,500 53,619 55%
Visitors Center 34,700 31,500 53,619 55%
Goods for Sale 30,000 25,000 33,470 12%
VC Expenses 2,200 2,200 16,149 634%
Consignment Sales Expenses 2,500 4,300 4,000 60%
Payroll and Related Expenses 1,399,952 1,389,400 1,412,532 1%
Wages 1,115,856 1,115,000 1,097,056 -2%
Payroll Tax Expense 96,644 85,000 85,227 -12%
Federal (941) Payroll Taxes 82,359 82,000 80,832 -2%
SUTA 14,285 3,000 4,395 -69%
Benefits 168,952 168,400 186,379 10%
Health and Other Employee Insurance 131,463 131,000 128,673 -2%
Company Retirement Contributions 32,489 32,400 52,706 62%
Car Allowance 5,000 5,000 5,000 0%
Contract Labor 13,500 13,500 36,500 170%
Payroll Processing Fees 5,000 7,500 7,370 47%
Operating Expenses 1,690,159 1,732,070 1,983,704 17%
Marketing 946,000 927,000 951,512 1%
62000
62100
62300
63000
63100
63200
63300
64000
65000
44210
44220
40000
41000
41100
41200
42300
43000
43100
43200
44000
44200
Account Number
49001
49002
50000
51000
51310
52000
52100
52200
52400
53000
46000
46200
48800
49000
48000
48200
53200
53210
Account Name
53220
53300
60000
61000
70000
71000
42000
9
Fayetteville A&P Commission
Experience Fayetteville - Detail
2024 Proposed Budget
Experience
Fayetteville 2023
Budget
Experience
Fayetteville 2023
Projected
Experience
Fayetteville 2024
Proposed Budget
EF % Change
vs 2023
BUDGET
Account Number Account Name
Advertising Expenses 449,000 449,000 382,800 -15%
Agency Advertising 430,000 430,000 300,000 -30%
Non-Agency Advertising 19,000 19,000 82,800 336%
Agency Retainer and PR 174,000 175,000 231,720 33%
Mobile Marketing 15,000 7,000 9,672 -36%
Promotion 225,000 225,000 207,900 -8%
Marketing Programs 150,000 150,000 95,600 -36%
Photo and Video 65,000 65,000 65,000 0%
Banners 10,000 10,000 47,300 373%
Printing 62,500 50,000 93,000 49%
Visitors Guide 10,000 0 60,000 500%
Other Brochures 52,500 50,000 33,000 -37%
Website 15,000 15,000 12,720 -15%
Mailings 5,500 6,000 13,700 149%
Sales and Development 245,902 287,500 542,880 121%
Promotional Items 30,000 30,000 35,000 17%
Groups 2,500 1,500 15,000 500%
Sports and Cycling 76,400 90,000 129,500 70%
Meetings 13,500 16,000 95,360 606%
Memberships 35,000 35,000 27,375 -22%
Tourism & Client Devel. 88,502 115,000 240,645 172%
Office and Administrative 184,676 183,950 191,414 4%
Office Expenses 47,276 44,500 44,554 -6%
Office Supplies 10,709 10,000 6,500 -39%
Office Equipment Leases 5,000 5,000 5,650 13%
Office Equipment Purchases 4,000 3,500 3,500 -13%
Subscriptions 1,542 1,500 11,004 614%
Employee Relations 11,000 11,000 11,675 6%
Training 13,525 12,000 5,600 -59%
Postage & Shipping 1,500 1,500 625 -58%
Fees 4,300 3,350 3,200 -26%
Bank Service Charges 500 350 400 -20%
Credit Card Fees 3,800 3,000 2,800 -26%
Business Taxes & Licenses 2,600 2,600 2,000 -23%
Accounting, Audit & Legal 32,000 35,000 37,500 17%
Accounting Fees 0 0 500 0%
Audit Fees 25,000 28,000 30,000 20%
Legal Fees 7,000 7,000 7,000 0%
Collection Expenses 98,500 98,500 104,160 6%
Travel 58,635 59,000 50,925 -13%
Lodging 26,000 27,000 23,725 -9%
Mileage 7,135 6,000 5,725 -20%
Transportation 20,000 20,000 14,675 -27%
Meals Out of Town 5,500 6,000 6,800 24%
IT Expenses 148,046 154,500 104,577 -29%
Computer Hardware 10,000 14,500 9,600 -4%
Software 87,552 90,000 37,619 -57%
IT Support and Consulting 50,494 50,000 57,358 14%
72400
72500
73130
73170
73200
73210
73220
73400
73500
73510
73520
73530
74000
71250
71110
71120
71200
71300
71310
71315
72100
72300
71500
71600
72000
72700
73000
73100
73110
73120
72600
73160
75200
75300
74100
74200
74300
74400
75000
75100
73140
73150
73900
71350
71400
71410
71420
71100
10
Fayetteville A&P Commission
Experience Fayetteville - Detail
2024 Proposed Budget
Experience
Fayetteville 2023
Budget
Experience
Fayetteville 2023
Projected
Experience
Fayetteville 2024
Proposed Budget
EF % Change
vs 2023
BUDGET
Account Number Account Name
Insurance 24,000 25,820 27,896 16%
Insurance - Building 22,000 21,600 23,396 6%
Insurance - W/C 2,000 4,220 4,500 125%
Facilities 82,900 94,300 114,500 38%
Rent 0 0 2,000 0%
Internet & Telephone 15,400 14,000 15,000 -3%
Utilities 20,800 18,300 21,000 1%
Electric 14,000 12,500 14,000 0%
Gas 4,700 4,000 4,500 -4%
Water 2,100 1,800 2,500 19%
Repairs and Maintenance 37,000 52,000 65,000 76%
Janitorial Supplies 2,000 1,500 1,500 -25%
Maintenance Contracts 7,700 8,500 10,000 30%
Tourism Support 223,000 210,000 511,500 129%
Community Event Incentives 140,000 140,000 130,000 0%
Theatre Squared Contribution 0 0 200,000 0%
Dickson Street Art Court 83,000 70,000 85,000 0%
Downtown Fayetteville Coalition 0 0 96,500 0%
700,000 700,000 800,000 14%
Bond Payments 700,000 700,000 700,000 0%
Contribution to Capital Reserves 0 0 100,000 0%
TOTAL EXPENSE 4,158,411 4,172,370 4,850,905 17%
Net Revenue/(Loss)1,002,789 1,030,230 697,445 -30%
Funded out of Capital Reserves:
Capital Expenditures 545,000 250,000 511,000 -6%
77400
77500
77600
80000
80100
90000
90100
90200
77100
77200
77300
76000
76100
80300
80700
80900
76200
77000
77800
77310
77320
77330
2024 Proposed Budget
Fayetteville Town Center
Detail
12
Fayetteville A&P Commission
Fayetteville Town Center Detail
2024 Proposed Budget
Town Center
2023 Budget
Town Center
2023
Projected
Town Center
2024 Proposed
Budget
FTC %
Change vs
2023
BUDGET
REVENUE
Rental Income 485,500 550,800 578,340 19%
Facility Rental 250,000 375,300 394,065 58%
Rental Items 30,000 32,400 34,020 13%
Alcohol Sales 97,500 65,500 68,775 -29%
Rental Services 108,000 77,600 81,480 -25%
Event Income 7,500 13,000 13,650 82%
Other Event Income 7,500 13,000 13,650 82%
Parking Revenue 26,000 26,000 27,000 4%
Parking Machine Revenue 11,000 10,000 12,000 9%
Parking Lease Revenue 15,000 16,000 15,000 0%
Other Revenue 0 0 0 0%
Other Revenue 0 0 0 0%
Interest Income 50 120 100 100%
Checking Account Interest 50 120 100 100%
TOTAL REVENUE 519,050 589,920 619,090 19%
EXPENSE
Rental/and Event Expenses 238,000 120,000 266,500 12%
Rental Expenses 208,000 100,000 231,500 11%
Linens 18,000 7,000 27,000 50%
Alcohol and Bar Supply 84,000 33,000 94,500 13%
Alcohol 75,000 30,000 85,000 13%
Bar Supplies 9,000 3,000 9,500 6%
Rental Services 106,000 60,000 110,000 4%
Event Expenses 30,000 20,000 35,000 0%
Other Event Expenses 30,000 20,000 35,000 17%
Payroll and Related Expenses 568,610 562,200 672,612 18%
Wages 403,960 400,000 481,501 19%
Payroll Tax Expense 38,485 29,500 38,634 0%
Federal (941) Payroll Taxes 30,270 28,000 35,829 18%
SUTA 8,215 1,500 2,805 -66%
Benefits 55,493 50,000 69,802 26%
Health and Other Employee Insurance 44,689 40,000 48,689 9%
Company Retirement Contributions 10,804 10,000 21,113 95%
Contract Labor 68,000 80,000 78,000 15%
Payroll Processing Fees 2,672 2,700 4,675 75%
Operating Expenses 354,020 333,025 408,955 16%
Marketing 17,421 5,800 26,500 52%
Advertising Expenses 2,100 1,500 5,000 138%
63000
63100
63200
64000
65000
70000
71000
71100
60000
61000
62000
62100
62300
Account Number Account Name
42000
42100
42200
42300
42400
43000
43400
45000
45100
45200
48000
48200
49000
49002
50000
51000
51200
51300
51310
51320
51400
52000
52400
13
Fayetteville A&P Commission
Fayetteville Town Center Detail
2024 Proposed Budget
Town Center
2023 Budget
Town Center
2023
Projected
Town Center
2024 Proposed
Budget
FTC %
Change vs
2023
BUDGET
Account Number Account Name
Non-Agency Advertising 2,100 1,500 5,000 138%
Promotions 12,000 1,500 16,500 38%
Marketing Programs 12,000 1,500 14,000 17%
Photo & Video 0 0 2,500 0%
Printing 3,000 2,500 3,800 27%
Other Brochures 3,000 2,500 3,800 27%
Website 321 300 1,200 274%
Sales and Development 9,100 5,400 9,150 1%
Promotional Items 3,500 800 4,000 14%
Memberships 1,600 1,600 2,650 66%
Tourism & Client Devel. 4,000 3,000 2,500 -38%
Office and Administrative 24,655 22,475 46,244 88%
Office Expenses 13,855 9,675 34,944 152%
Office Supplies 2,020 2,100 3,300 63%
Office Equipment Leases 2,500 2,500 6,844 174%
Office Equipment Purchases 5,000 2,000 17,000 240%
Subscriptions 85 25 100 18%
Employee Relations 2,000 2,000 4,500 125%
Training 2,000 1,000 3,000 50%
Postage & Shipping 250 50 200 -20%
Fees 2,500 4,500 3,000 20%
Credit Card Fees 2,500 4,500 3,000 20%
Business Taxes & Licenses 8,300 8,300 8,300 0%
Travel 9,100 6,700 10,900 20%
Lodging 3,500 2,500 4,400 26%
Mileage 2,500 2,200 2,900 16%
Transportation 1,300 1,200 2,500 92%
Meals Out of Town 1,800 800 1,100 -39%
IT Expenses 14,300 13,500 12,350 -14%
Computer Hardware 4,500 3,000 4,050 -10%
Software 8,000 8,500 7,500 -6%
IT Support and Consulting 1,800 2,000 800 -56%
Insurance 4,850 5,550 6,105 26%
Insurance - Building 4,850 5,550 6,105 26%
Facilities 274,594 273,600 297,706 8%
Rent 22,600 22,600 20,706 -8%
Internet & Telephone 18,500 18,500 25,000 35%
Utilities 108,800 104,500 117,800 8%
Electric 80,000 78,000 85,000 6%
73110
73120
73130
73140
73150
73160
73170
73200
71120
71300
71310
71315
71400
71420
71500
72000
72100
72600
72700
73000
73100
73220
73400
74000
74100
74200
74300
74400
77200
77300
77310
75000
75100
75200
75300
76000
76100
77000
77100
14
Fayetteville A&P Commission
Fayetteville Town Center Detail
2024 Proposed Budget
Town Center
2023 Budget
Town Center
2023
Projected
Town Center
2024 Proposed
Budget
FTC %
Change vs
2023
BUDGET
Account Number Account Name
Gas 22,000 20,000 25,000 14%
Water 6,800 6,500 7,800 15%
Repairs and Maintenance 60,000 62,000 70,000 17%
Janitorial Supplies 30,000 28,000 35,000 17%
Maintenance Contracts 34,694 38,000 29,200 -16%
TOTAL EXPENSE 1,160,630 1,015,225 1,348,067 16%
Net Revenue/(Loss) (641,580) (425,305) (728,977) 14%
Funded out of Reserves:
Capital Expenditures 505,000 376,000 460,000 -9%
77320
77330
77400
77500
77600
77800