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Home My WebLink About2025-08-25 - Agendas - FinalFayetteville Advertising and Promotion Commission August 25, 2025 Location: Fayetteville Town Center, 15 W. Mountain Street Commissioners: Staff: Elvis Moya, Chair, Tourism & Hospitality Representative Katherine Kinney, Tourism & Hospitality Representative Elliot Hunt, Tourism & Hospitality Representative Chrissy Sanderson, Tourism & Hospitality Representative Sterling Hamilton, Commissioner at-large Sarah Bunch, City Council Representative Mike Wiederkehr, City Council Representative Ryan Hauck, CEO Agenda I.Call to order at 2:00p.m. II.Administration A.Review and approval of July meeting minutes. B.Approve Visitor Guide Invoice •Memo and Invoice included III.Reports A.CEO Report, Ryan Hauck. An executive overview of the previous month B.Financial Report, Jennifer Walker, VP of Finance C.Freedom of Information Act Overview & Updates, Blake Pennington, City of Fayetteville Senior Assistant City Attorney D.Clinton House Museum Update and Funding Request, Joshua Youngblood, Clinton House Museum Board President E.Ozark Folkways Presentation, Abby Hollis, Ozark Folkways board member F.Downtown Fayetteville Coalition Update and Funding Request, Kelly Rich, DFC Executive Director IV.Old Business A.Vote. Changes to Bylaws to include CEO transition policy and FOIA Updates Ryan Hauck, CEO •Memo and Proposed Bylaw updates included B.Discussion and Vote. Favoriteville Festival Fund. CEO Ryan Hauck •Memo included C.Discussion about Walker Stone House. CEO Ryan Hauck •Memo and P&L included1 D.Discussion and Vote. Letter of Intent for lease agreement with Ozark Folkways. CEO Ryan Hauck •Letter of Intent and Ozark Folkways at Walker Stone House Proposal included. V.New Business A.Discussion about Clinton House Museum Funding Request, CEO Ryan Hauck •Memo and support history included B.Discussion about Downtown Fayetteville Coalition Funding Request, CEO Ryan Hauck •Memo included C.Discussion about Renewal of Town Center Office Lease Agreement •Memo included D.Additions to the agenda may be added upon request from a majority of the commissioners. E.Good of the Order / Adjourn •Mural on FTC Parking deck and airwalls in main ballroom VI.Adjournment 2 Fayetteville A&P Commission Meeting Minutes July 28 – Fayetteville Town Center – 2:00 p.m. Present: Chair Elvis Moya, Sterling Hamilton, Mike Wiederkehr, Sarah Bunch, Chrissy Sanderson (virtual), Elliot Hunt Absent: Katherine Kinney Staff: Ryan Hauck, CEO I. Call to Order Chair Moya called the meeting to order at 2:00 p.m. II. Approval of Minutes Motion: Sanderson | Second: Hunt | Vote: Passed via roll call III.Reports A. CEO Report – Ryan Hauck -Events: 507 events listed on June’s calendar -Branding: New downtown banners installed; Woo Pig Sooie banners to be installed before Razorback football season. -Restaurant Week: 75+ participating restaurants; anecdotal positive feedback; detailed report in August. -Sales & Tourism: Assisted in 8 June events, including Hazel Valley Rally and Advantage 5v5 Soccer Tournament; gained 137 LinkedIn followers (total 5,142); Visitors Center traffic down 38% YoY. -Town Center: Hosted multiple events including Dream Big Charity Gala; ballroom airwalls replacement will close venue for much of August -Staffing: Hired Steve Harrelson as Tourism Services Coordinator, staffing the Visitors Center -Shared openings and one closure in local restaurant scene. -Lodging: Hotel occupancy down; HMR and sales tax collections up. B. Financial Report – VP Jennifer Walker -YTD through June: Revenue at 50% of budget (on target); expenses at 45% (under budget) -HMR collections: $2,563,566; net income: $338,489; cash/investments: $5.2M; unearned revenue: $240K. -Walker Stone House listed at $1.1M; Walker to research fair market value per Chair Moya’s request. 3 C. 2024 Audit Report – Cynthia Burns, CPA, Forvis Mazars - Clean audit; no material weaknesses; consistent with prior years. - Only notable change: new liability to City for solar panels ($20K/year; savings not yet equal to payment). - Commended staff for timely materials despite staffing changes. D. Marketing Report – VP of Marketing and Communications Sarah King & Anne Davis, Outright - Preview of Visitors Guide cover featuring Mt. Sequoyah overlook. - Restaurant Week marketing included influencer partnerships and regional media coverage. - Commissioner feedback: Hunt suggested avoiding Sunday start; Sanderson reported strong reservations and many suggested two-week format, a lot of positive feedback. - King to send survey to participants. IV. Old Business A. Favoriteville Festival Fund – CEO Hauck - Decision postponed for CEO review. - Next meeting: review application and vote on reallocating certain percentage of funds from Community Incentive Fund to Favoriteville Festival Fund. V. New Business A. Updating Bank Account Authorized Signers – VP Jennifer Walker Add CEO Ryan Hauck to three First Security accounts and one Arvest account. Motion: Bunch | Second: Wiederkehr | Vote: Passed unanimously via roll call B. Changes to Bylaws – VP Jennifer Walker - Amendments include CEO transition policy and Arkansas FOIA updates. Bylaws amended to reflect we will be compliant with Arkansas Code Annotated 25-19-106 (e) (6) and 25-19-106 (f-h) addressing Freedom of Information Act updates, specifically that we will be able to continue remote attendance for commissioners by making the public Zoom meeting link available. - Action: Vote scheduled for August meeting. 4 C. Community Incentive Fund Approval Process – Hauck - Reviewed draft application; discussed commissioner role with leanings toward commissioners reviewing funding decisions. - Clinton House Museum potential 2026 funding to be discussed next meeting with data on attendance, budget, and past investments. Clinton House Museum will be asked to present. D. Walker Stone House Lease – Walker - Folk School leadership leaving and are proposing that Ozark Folkways take over programming. - Lease expired Feb. 2025; unclear if extension was signed but intent to renew lease to February 2026 understood. - Commission requests from staff: fair market value from 2–3 estimates, comparable lease rates, past/projected maintenance costs, lease status confirmation from attorney. It was determined that the commission would like further clarity on the option of having a lease to offer Ozark Folkways. - General consensus to explore shorter lease terms and increased monetary return. VI. Adjournment Meeting adjourned at 3:47 p.m. by Chair Moya; meet-and-greet with city team followed in Town Center lobby. Minutes prepared by: Amy Stockton, Experience Fayetteville 5 Memo To: Fayetteville Advertising & Promotion Commissioners From: Ryan Hauck, CEO Date: August 15, 2025 Re: Visitor Guide Increase In Cost Information: This line item in total was budgeted at $120k. However, the two costs came in well under budget with design at $46k and printing at $28k. Because of this, we were able to add a couple more important pages regarding mountain biking into the guide along with a commemorative map. These two additions let us feature the top outdoor recreation activity in NW AR and also allows us to insert a unique feature that will set our guide above others. These additions increased the cost of printing to $36k, still keeping our total budget well under the original $120k. The marketing team and I felt it was well worth the small cost increase. However, because of the urgency to get this to the printer, EF had to approve this additional cost before the August commission meeting, otherwise it would have delayed printing an additional 2-1/2 months. 6 The Roark Group 1600 N 35th St Rogers, AR 72756 (479) 636-1686 http://www.roarkgroup.com Quote 73677 Experience Fayetteville Visitor's Guides with Map SALES REP INFO House Account house@roarkgroup.com QUOTE DATE 08/01/2025 QUOTE DUE DATE 08/12/2025 QUOTE EXPIRY DATE 08/31/2025 TERMS Net 30 REQUESTED BY Fayetteville A&P Comm. 21 South Block Avenue, PO Box 4157 Fayetteville, AR 72701-4157 CONTACT INFO Sarah King sking@experiencefayetteville.com # ITEM QTY UOM U.PRICE TOTAL (EXCL. TAX) TAXABLE 1 Experience Fayetteville Visitor's Guide Opt.2: 80lb Cover 20000 Each $1.7611 $35,222.00 N with soft touch Width: 7 Inches Height: 10 Inches # of Cover Pages: 4 Cover Colors Front: 4 Cover Colors Back: 4 # of Text Pages: 40 Text Colors Front: 4 Text Colors Back: 4 Matte Aqueous Coating with soft touch on the cover 70Lb Dull Text - 23X35 80Lb Dull Cover - 23X35 Proof - Softproof Proof - MPI & Blueline Proof Finished Size (in inches): 7"W x 10"H Special Notes: Apply soft touch aqueous to the cover and matte aqueous to the text Fold, collate cover, text, folded map, perfect bind on 10" side, and trim to size F.O.B Fayetteville, AR Experience Fayetteville Visitor's Guides with Map Pages: 1 Width: 13.04 Inches Height: 10 Inches Ink Colors Front: 4 Single Sided 100Lb Dull Cover - 26X40 Matte Aqueous Coating Proof - MPI & Blueline Proof Proof - Softproof Special Notes:Score, perf, trim to size, and fold for reverse tear out 2 7.5 x 10.5" Booklet Envelopes 1/0 Pantone Ink 3000 Each $0.2483 $744.90 N Ink Colors Front: 1 Notes: Envelope price is standard coverage with no bleeds. F.O.B Fayetteville, AR PRINTED ON 08/07/2025 02:10 PM BY LG CREATED BY LG 1/2 7 Please read our full terms & conditions at www.roarkgroup.com/terms Subtotal: Sales Tax (9.5%): Total: $35,966.90 $0.00 $35,966.90 SIGNATURE:DATE: QUOTE 73677, FAYETTEVILLE A&P COMM., 08/01/2025 PRINTED ON 08/07/2025 02:10 PM BY LG CREATED BY LG 2/2 8 CEO Updates July Updates for August A&P Commission Meeting Marketing and Communications • Fayetteville Restaurant Week (July 20–26) – see full report • 77 Restaurants participated • 80% of survey respondents reported that FRW brough in new customers • Majority appreciated the mid-Summer bump with a few flagging January and February as months that could use a boost • Influencer partnerships garnering 186K views across multiple platforms • Garnered earned media coverage from almost a dozen features • Captured 2.1 million impressions from paid advertising • Fayetteville Visitors Guide – at press, delivery expected first week of September • Sarah King and José Romero attended SEC Football Media Days in Atlanta as part of Cities of the SEC coalition • Website traffic – 90,000+ sessions in July (+36% YoY, boosted by Restaurant Week) • Hosted Northwest Arkansas Tourism Association at Mount Sequoyah – Sarah King elected VP; group discussed annual ad plan and regional guide updates • Experience Fayetteville event calendar redesign in progress – AI-driven event listings, launching next month • Trademark application filed for “Favoriteville” (response expected in several months) Sales and Tourism Activity Prospective Business Highlights: • American Junior Golf Tournament – Spring 2026, 150+ participants, 120+ room nights • College Golf Experience – 2026/27, 300+ participants, 100+ room nights • Hurricane Jr Golf Tournament – 2026, 150+ participants, 120+ room nights • 5x5 Soccer 2026 – 2026, 250 participants, 50 room nights • Southwestern Fire Chiefs Association – October 2025, 100 participants, 300 room nights, $134k Est EI • Arkansas Cannabis Times – November 2025, 1,500 attendees, 40 room nights, $277k Est EI 9 • American Concrete Pipe Assoc.= October 2026, 100 attendees, 210 room nights, $74K Est EI • Association of Collegiate Schools of Architecture – November 2025, 220 participants, 231 room nights, Est EI $73K • Urban Land Institute- ULI Annual Place Summit – November 2025, 400 participants, 75 room nights, Est EI $140K • National American Association of Central Cancer Registries- Annual Conference- June 2027, 400 participants, 256 room nights, Est EI $314K • Adventure Travel Trade Association – April 2027, 450 participants, 636 room nights, $329k Est EI Definite July Events: • Southern Golf Association – 275 participants, 125 room nights, $408k Est EI • 5v5 Soccer Tournament – 250 participants, 50 room nights, $78k Est EI • (Ozark Offroad Cyclist) Summer Slay Ride – 200 participants, 0 room nights, $17K Est EI • Ozark Enduro Lite – 100 participants, 55 room nights, $136k Est EI • Presbyterian Women Gathering – 125 attendees, 45 room nights, $50k Est EI Lost Business: • American Junior Golf – Stacey Lewis Classic (rain cancellation) Destination Services • Promoted Fayetteville Restaurant Week – numerous restaurant visits and deliveries • Ordered fall/Razorback season merchandise for Visitor Center • Hard Hat tour of Moxy Hotel opening Sept. 11 • Accompanied Sales team to Arkansas State Tourism Department Meetup in Little Rock Performance Metrics • LinkedIn – +164 new followers, now 5,306 • Hotel Occupancy (June 2025) – 73.4% (-13% YoY) • ADR (June 2025) – $138.81 (+1% YoY) • Visitor Center – 878 visitors (-40% YoY); $2,690 sales (-50% YoY) • International visitors in July included France, South Africa, Puerto Rico, Japan, UK, Virgin Islands, Ireland, India, Mexico & Germany 10 Special Events • Firefly Fling – Botanical Gardens of the Ozarks • Fayetteville Restaurant Week – July 20–26 New Restaurant Welcomes • Wildberry Smoothie Company – 3484 W. Wedington Drive • Onyx Coffee Lab – Fayetteville Square, 26 W. Center Street • Slim Chickens – reopened original location as “Fly Through” at 2120 N. College Ave. • Coming soon: Savory Hibachi (September) 113 W. MLK Jr Blvd; Fuego Tortilla Grill (November) 2190 MLK Jr Blvd Of note: • JJ’s Live renamed Ozark Music Hall – 2,000 seat venue at 3615 N. Steele Blvd Fayetteville Town Center July Events – hosted 28 events, 6,200 estimated total attendance • Notably, Boots & Badges Blood Drive Operations Updates • 4 setups / 5 teardowns – 30 staff hours • 6 contracted setups / 6 contracted teardowns – 48 hours billed • 15 events scheduled for August; most client planning is for October • Internal documentation and UGC captured in July • Short-term projects: digital signage, alcohol trainings, safety trainings • Long-term projects: Training manual refresh, Experience Survey Sales Activity • Incoming/Outgoing Calls: 27/33 • Emails Sent: 79 • In-Person Meetings: 5 Contracts & Bookings • New Events Secured: 5 • Notable Wins: Successfully accommodated two last-minute event bookings this month. 11 Pipeline Snapshot • Prospective Contracts in Negotiation: 35 tentative; 90 dates on hold • Estimated Value of Prospective Contracts: $445,697.59 • Key Opportunities Likely to Close Next Month: None identified Revenue Performance • July revenue: $22,533 • YTD revenue: $401,860 (vs. $384,335 same period 2024) Key Wins & Successes • Griffin Stroupe accepted into Leadership Fayetteville Class XXXIX 12 -3.15% -4.31% -6.09% 0.89% 2.09% 1.89% 11.86% 3.24% 24.04% 9.79% $410,352 $444,020 $419,784 $394,928 $453,844 $476,619 $473,720 $546,090 $416,573 $401,088 2025 Monthly A&P Tax Collections** 5.93% 5.58% % change from 2024 2021 $2,182,175 2022 $2,576,978 2023 $2,876,318 2024 $2,922,497 2025 $3,013,005 $24,757 Prior Dues Collected $449,440 Total HMR Collected July Collections (June Activity) $70,370 Lodging $354,313 Restaurant + 29.25% 18.09%11.62%1.61%3.10% $405,262 $369,258 0.44%$448,150 1.87%$465,579 4.56%$487,346 7.06%$449,440 -3.27%$387,971 Change over previous year Previous YTD (Jan-Jul) HMR A&P Tax Collection Totals **This represents half of total HMR tax collections. The other half goes to Fayetteville Department of Parks, Natural Resources, and Cultural Affairs 13 Memo To: Jennifer Walker, Interim CEO, Experience Fayetteville Fayetteville Advertising & Promotion Commissioners From: Jennifer Walker, VP Finance, Experience Fayetteville Date: August 15, 2025 Re: Financial Statements – July 2025 This packet contains Experience Fayetteville Financial Statements for the month ended July 31, 2025. The following reports are included in the packet: • Summary P&L Financials for month ended July 31, 2025 • Balance Sheet for month ended July 31, 2025 Target Budget July – 58% Revenue target 58% of budget or higher by the end of July 2025. Expenditures target 58% or lower at July 2025. Total Revenue YTD: $3,689,786 or 59%; We are 1% ahead of target. Tax Receipts - $3,013,006 (0% variance; on budget ytd) Town Center - $413,074 (0% variance; on budget ytd) Other - $263,706 Total Operating Expenditure YTD: $3,277,648 or 52%; this is 6% under budget. EF Main - $2,673,507 Town Center - $604,142 HMR tax – YTD July Collections (June activity) are 1.7% above the seasonally adjusted budget. Operating Net Income is $412,137 year to date. 14 Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year-to-Date @ July 31, 2025 Actual Budget Over/(Under) Budget % of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 3,013,006 5,231,140 (2,218,134) 57.6% Rental Revenue 384,010 650,500 (266,490) 59.0% Event Revenue 51,307 53,700 (2,393) 95.5% Visitor Center Store Revenue 14,672 30,000 (15,328) 48.9% Parking Revenue 25,867 48,000 (22,134) 53.9% Advertising Revenue 2,025 3,500 (1,475) 57.9% Grant/Other Revenue 156,100 206,000 (49,900) 75.8% Interest and Investment Revenue 42,799 50,100 (7,301) 85.4% Total Revenue 3,689,786 6,272,940 (2,583,154) 58.8% Expenses Operating Expenses Rental Expenses 47,754 126,000 (78,246) 37.9% Event Expenses 46,426 146,175 (99,749) 31.8% Visitor Center & Museum Store 8,695 27,750 (19,055) 31.3% Personnel 1,140,461 2,228,707 (1,088,246) 51.2% Sales & Marketing 848,143 1,481,925 (633,782) 57.2% Office and Administrative 447,593 913,133 (465,540) 49.0% Bond Payments 407,050 702,000 (294,950) 58.0% Contribution to Capital Reserves - 100,000 (100,000) 0.0% Other Tourism Support - Community, Art Court, DFC 131,526 347,250 (215,724) 37.9% TheatreSquared Contribution 200,000 200,000 - 100.0% Total Operating Expenses 3,277,648 6,272,940 (2,995,292) 52.3% Net Operating Income/(Loss)412,137 - 412,137 0.0% Other Income Unrealized Gain/(Loss) on Investments (8,522) 0.0% Other Expenses FFE & Improvements 263,721 1,081,500 (817,779) 24.4% Depreciation Expense 168,703 0.0% Cost of Goods Sold - 0.0% Net Income/(Loss) (without CX Grants)(28,809) (1,081,500) 1,061,213 2.7% CONSOLIDATED Year-to-Date 15 Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year-to-Date @ July 31, 2025 Actual Budget Over/(Under) Budget % of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 3,013,006 5,231,140 (2,218,134) 57.6% Rental and Event Revenue 48,180 45,000 3,180 107.1% Visitor Center Store Revenue 14,672 30,000 (15,328) 48.9% Advertising Revenue 2,025 3,500 (1,475) 57.9% Grant & Other Revenue 156,100 206,000 (49,900) 75.8% Interest and Investment Revenue 42,729 50,000 (7,271) 85.5% Total Revenue 3,276,712 5,565,640 (2,288,928) 58.9% Expenses Operating Expenses Event Expenses 40,835 121,175 (80,340) 33.7% Visitor Center & Museum Store 8,695 27,750 (19,055) 31.3% Personnel 740,646 1,419,605 (678,959) 52.2% Sales & Marketing 843,823 1,460,305 (616,482) 57.8% Office and Administrative 300,932 541,593 (240,661) 55.6% Bond Payments 407,050 702,000 (294,950) 58.0% Contribution to Capital Reserve - 100,000 (100,000) 0.0% Other Tourism Support - Community, Art Court, DFC 131,526 347,250 (215,724) 37.9% TheatreSquared Contribution 200,000 200,000 - 0.0% Total Operating Expenses 2,673,507 4,919,678 (2,246,171) 54.3% Net Income/(Loss) Before Other Revenue and Expenses 603,205 645,962 (42,757) 93.4% Other Income Unrealized Gain/(Loss) on Investments (8,522) - (8,522) 0.0% Other Expenses FFE & Improvements 263,668 460,000 (196,332) 57.3% Depreciation Expense 56,920 Cost of Goods Sold - Net Income/(Loss)274,095 185,962 96,655 147.4% Experience Fayetteville Year-to-Date 16 Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year-to-Date @ July 31, 2025 Actual Budget Over/(Under) Budget % of Budget Revenue Rental Revenue 384,010 650,500 (266,490) 59.0% Event Revenue 3,127 8,700 (5,573) 35.9% Parking Revenue 25,867 48,000 (22,134) 53.9% Interest and Investment Revenue 71 100 (30) 70.5% Total Revenue 413,074 707,300 (294,226) 58.4% Expenses Operating Expenses Rental Expenses 47,754 126,000 (78,246) 37.9% Event Expenses 5,590 25,000 (19,410) 22.4% Personnel 399,815 809,102 (409,287) 49.4% Sales & Marketing 4,320 21,620 (17,300) 20.0% Office and Administrative 146,661 371,540 (224,879) 39.5% Total Operating Expenses 604,142 1,353,262 (749,120) 44.6% Net Income/(Loss) Before Other Revenue and Expenses (191,068) (645,962) 454,894 29.6% Other Expenses FFE & Improvements 53 621,500 (621,447) 100.0% Depreciation Expense 111,783 0.0% Net Income/(Loss)(302,904) (1,267,462) 964,558 23.9% Town Center Year-to-Date 17 ASSETS Current Assets Cash 3,845,270 Investments 1,295,318 Accounts Receivable 663,440 Prepaid Expenses 43,264 Deposits 40,838 Inventory Asset 21,449 Total Current Assets 5,909,580 Other Assets Capital Assets Furniture & Fixtures 300,660 Equipment 761,581 EF/CVB Building 940,410 EF/CVB Land 198,621 Building Additions 1,844,537 Walker-Stone House 1,179,152 Vehicles 122,860 Construction in Progress 456,456 Accumulated Depreciation (1,914,102) Total Other Assets 3,890,175 TOTAL ASSETS 9,799,755 LIABILITIES AND EQUITY Current Liabilities Accounts Payable 30,521 Unearned Revenue 333,766 Total Liabilities 364,286 Long Term Liabilities Notes Payable - City of Fayetteville Solar 386,825.75 Total Liabilities 386,825.75 Equity Unreserved Fund Balance 8,091,663 Operating Reserve 1,000,000 Capital Reserve - Temporarily Restricted Funds 45,558 Net Revenue Gain/(Loss) on Investments 8,203 Net Revenue (96,781) (88,578) Total Equity 9,048,643 TOTAL LIABILITIES AND EQUITY 9,799,755 Fayetteville A&P Commission Balance Sheet As of July 31, 2025 18 Memo To: Fayetteville Advertising & Promotion Commissioners From: Ryan Hauck, CEO Date: August 19, 2025 Re: Vote on Amendments to A&P Commission Bylaws Background: At the July commission meeting, staff proposed amendments to the A&P Commission Bylaws to address the following items. The bylaws are included with highlighting to reflect proposed changes. 1) Clarification of commission’s authority to appoint an interim CEO, the full policy was approved at June 2025 commission meeting and is inserted into the employee handbook 2) The 95th General Assembly updated the Freedom of Information Act. We have updated our bylaws to be compliant. These changes will allow remote attendance at meetings for commissioners to continue and ensure we are in compliance with Arkansas Code Annotated 25-19-106(e)(6). We will be able to continue remote attendance for commissioners as we will publish the public Zoom meeting link when we publish the meeting agenda. 3) We have also added clarification to acknowledge that discussing voting or positions on agenda items between staff and commissioners is prohibited, in accordance with Ark. Code Ann. 25-19-106(f)-(h). Recommendation: Staff recommends a vote to approve the proposed amendments to A&P Commission bylaws. 19 Fayetteville, Arkansas Advertising and Promotion Commission By-Laws I. Creation and Membership of Commission Section 1. Creation of the Commission. The Fayetteville Advertising and Promotion Commission, hereafter referred to as “the Commission,” has been created by and in accordance with provisions of Acts of Arkansas 185 of 1995, 123 of 1969, and 58 of 1970, codified as Arkansas Code Annotated §26-75-605 et seq., (“the Statute”); and City Ordinance No. 2310 (passed and approved March 1, 1977), which formally established the Commission. Section 2. Purpose of the Commission. To operate in accordance with all applicable laws, including without limitation the Statute and City Ordinance No. 2310, in using proceeds of the City of Fayetteville’s hotel, motel, and restaurant tax (“HMR tax”) to advertise and promote the City of Fayetteville and its environs and for any other lawful, appropriate purposes. Section 3. Membership of the Commission. The membership of the Commission will be composed in accordance with the Statute, and unless preempted by conflicting provisions of the Statute, the seven (7) members will include: i. Four (4) members that shall be owners or managers of businesses in the tourism industry, at least three of whom shall be owners or managers of hotels, motels, or restaurants and shall serve for staggered terms of four (4) years; ii. Two (2) members that shall be members of the governing body of the City of Fayetteville, selected by the governing body, and shall serve at the will of the governing body; and, iii. One (1) member that shall be from the public at large and shall serve for a term of four (4) years. Section 4. Officers of the Commission. At the first meeting of each year, the Commission will elect one of its members as its Chair whose term will be for one (1) year. The Chair can be elected for succeeding terms. Section 5. Vacancies on the Commission. A vacancy in any of the tourism industry positions or in the at-large position shall be filled by appointment of the Commission with the approval of the governing body of the City of Fayetteville. A vacancy may result from the expiration of a regular term or be declared by the Chair if at any time a Commissioner resigns, dies, or is absent from three (3) consecutive meetings without just cause. II. Duties of the Commission Section 1. Essential Function. The Commission is the body that determines the use of the City of Fayetteville’s advertising and promotion fund resulting from the HMR tax. Section 2. Hiring of Staff. The Commission will be responsible for the hiring, supervision, 20 and continued employment of an Executive Director a CEO. The Commission delegates to the Executive Director all authority and responsibility necessary to properly administer the business of the Commission and its agencies, within policies set by the Commission and subject to its review, including financial policies specifically addressing spending and budgeting activities. The Commission has the authority to appoint an interim CEO when necessary; full details of this policy are available in the employee handbook. Section 3. Regular Meetings. The Commission will hold meetings regularly on a consistent day and time, either in-person or virtually, notice of which shall be published. The time, place and method of meetings are subject to change at the discretion of the Chair, upon published notice. Section 4. Hybrid meetings. Whenever possible, in-person commission meetings will be made available for virtual attendance. Commissioners should make every effort to be present for in-person meetings. When circumstances prohibit in-person attendance, commissioners may participate virtually so long as their virtual attendance at in-person meetings does not exceed three meetings in a calendar year. Remote attendance will be via means that comply with all applicable provisions of Arkansas Code Annotated 25-19- 106(e)(6); we will publish the public virtual attendance meeting links when we publish public meeting agendas. Section 5. Special meetings. Special meetings of the Commission may be called, for any purpose, by the Chair or any three members of the Commission at such times deemed necessary, provided: i. Advance notice, and corresponding agenda, of every special meeting of the Commission shall be distributed for each Commissioner not less than three (3) days before such meeting; and, ii. No business shall be transacted in special meetings, other than business referred to in the agenda. Section 6. Quorum. No formal business shall be conducted without a quorum of the Commission, defined as a majority of the Commissioners. Section 7. Proxy. No Commissioner may vote by proxy. Section 8. Budget. The Commission will annually approve a budget for the operation of the Commission and its agencies. Section 9. Freedom of Information Act Arkansas state law outlines that business must be conducted in a public meeting and this code further defines communication parameters outside of public meetings. Discussions between commissioners and staff concerning voting or positions on agenda items, outside of public meetings, are prohibited. This is in compliance with Ark. Code Ann. 25-19-106(f)-(h). Commissioners and staff will adhere to state code regarding Freedom of Information Act. III. Reporting Section 1. Meeting Schedule. The Commission’s meeting schedule will be published and accessible to the public. 21 Section 2. Meeting Agendas. The agenda and supporting documents for meetings of the Commission will be distributed no later than three (3) business days before the scheduled meeting. Section 3. Tax Summaries. The consolidated HMR tax report summaries will be published and accessible to the public. IV. Financial Policies and Conflicts of Interest Section 1. Financial Policies. Through its Executive Director, the Commission will develop financial policies, implement financial procedures in accordance with those policies, and ensure the practices of the Commission and its agencies are carried out in accordance with those policies. Section 2. Conflict of Interest. No Commissioner may participate in, vote on, influence, or attempt to influence an official decision of the Commission, unless the pecuniary interest that may accrue to the Commissioner is incidental to their vocation or accrues to the Commissioner to no greater extent than the pecuniary interest could be foreseen to accrue to all other members of the vocation. V. Amendment of the By-Laws Amendments. Amendments to these By-Laws shall be proposed in writing at a regular meeting of the Commission and voted on at a subsequent meeting. Amendments to these By-Laws shall be effective with an affirmative vote of 2/3 of the members of the Commission. If the proposed, written amendment has been distributed to all Commissioners, a special meeting for the purpose of voting on the proposed amendment can be called after ten (10) days following distribution to the Commissioners of the proposed amendment. 22 Memo To: Fayetteville Advertising & Promotion Commissioners From: Elvis Moya, Chairperson Date: August 25, 2025 Re: Favoriteville Festival Fund The Favoriteville Fund represents an exciting opportunity to encourage and incentivize signature events in Fayetteville, in alignment with our Destination Master Plan imperative: “Bring Out the Best.” This initiative supports key objectives, including: • Increasing visitor satisfaction ratings to 65% within four years. • Improving Fayetteville’s product development effectiveness rating to 70% within four years. As we consider approval of the fund, three questions have been identified to ensure clarity, accountability, and effective oversight: 1. Unused Funds: If an event is successful and meets its projected profit margin, how will any unused funds be handled? 2. Program Differentiation: What specific needs or gaps does the Favoriteville Fund address that are not covered by the Community Incentive Program? 3. Verification of Outcomes: How will the A&P Commission and Experience Fayetteville’s CEO verify the grantee’s reported profits, ensuring the accuracy and validity of financial results? Answers to these questions will be incorporated into the Favoriteville Fund Policy to ensure transparency and proper stewardship of allocated funds. 23 Memo To: Ryan Hauck, CEO, Experience Fayetteville Fayetteville Advertising & Promotion Commissioners From: Jennifer Walker, Interim CEO Date: August 15, 2025 Re: Walker Stone House Discussion Background The Walker-Stone House, located at 207 W. Center Street in Fayetteville, was constructed in 1845 by Judge David Walker and later sold to Stephen K. Stone in 1850. It was listed on the National Register of Historic Places (NRHP) in 1970 (SHPO Site ID: WA0388, Criteria: C, Area of Significance: Architecture). The property is also included in the Fayetteville Heritage & Historic Preservation Plan (2023), which identifies Experience Fayetteville as a preservation partner in its operation. The Plan highlights the following relevant goals: • Encourage compatible development that prioritizes historic preservation. • Identify and protect historic properties. While the City designates historic districts (not individual properties), the Walker-Stone House is not located within a historic district. It is, however, subject to a conservation easement through the Arkansas Historic Preservation Program (AHPP). This easement is primarily honorary and does not carry regulatory requirements. The property is exempt from county property tax as public property used exclusively for public purposes. The current lease for the Walker-Stone House expires in February 2026. Acquisition History Experience Fayetteville acquired the property in 2016 through a bargain sale agreement, structured as part purchase and part charitable gift: Total Sale Price (recorded asset value): $975,000 Gifted Portion: $225,000 Cash Sale Price: $750,000 Closing documents reference a $750,000 purchase, though the full value was added to organizational assets at $975,000. 24 Market Valuation Efforts To support upcoming Commission discussions, staff requested Fair Market Value and rental revenue estimates from local commercial real estate firms. Two companies have provided preliminary estimates at no cost. A formal, paid appraisal could be obtained in the future if needed, but these estimates will provide useful context for initial discussion. Final Fair Market Valuation and rental revenue estimates will be provided to Commissioners prior to the August meeting as soon as they are received. 25 Walker Stone House Profit & Loss January 2019 through 2025 2019 2020 2021 2022 2023 2024 2025 estimate 60000 · Personnel Charges 27,000$ 27,200$ 27,500$ 27,600$ 18,500$ 18,300$ 18,500$ 64000 · Contract Labor -$ -$ -$ -$ 487$ -$ -$ Program Support -$ -$ -$ -$ 30,000$ -$ -$ 76100 · Insurance 4,633$ 4,533$ 5,188$ 5,943$ 7,047$ 9,114$ 9,400$ 77000 · Facilities 77100 · Rent 950$ 960$ -$ -$ -$ -$ -$ 77200 · Internet/Telephone 772$ 1,465$ 1,620$ 1,729$ 534$ -$ -$ 77300 · Utilities 77310 · Electric 625$ 594$ 869$ 920$ 662$ -$ -$ 77320 · Gas 948$ 1,587$ 1,723$ 2,202$ 1,395$ -$ -$ 77330 · Water 398$ 639$ 535$ 540$ 240$ -$ -$ Total 77300 · Utilities 1,971$ 2,820$ 3,127$ 3,663$ 2,297$ -$ -$ 77400 · Repairs and Maintenance 1,673$ 12,821$ 5,648$ 6,344$ 15,393$ 28,988$ 25,000$ 77500 · Janitorial Expense 114$ -$ -$ -$ -$ -$ -$ 77600 · Maintenance Contracts 1,921$ 1,510$ 2,142$ 1,424$ 6,690$ 6,835$ -$ Total 77000 · Facilities 7,401$ 19,576$ 12,537$ 13,159$ 24,914$ 35,823$ 25,000$ Total Expense 39,034$ 51,309$ 45,225$ 46,702$ 80,948$ 63,237$ 52,900$ NOTES: **Annual depreciation $23k Capital Investment Summary: FIVE YEAR PROJECTED CAPITAL NEEDS: 2016 WSH Purchase 975,000$ 2017 Lighting 1,160$ 2026 - Windows Replacement 80,000$ 2017 HVAC 17,850$ 2027 - Back Terrace 150,000$ 2018 Renovation costs 174,400$ 2028 - Property Fence 50,000$ 2023 Kitchen Cabinets 6,850$ 2028 - Floors Refinishing 100,000$ 2024 Front Balcony / Gutters 19,600$ 2029 - Parking Area Gravel to Hard Surface 60,000$ Total Capital Investment 1,194,860$ 440,000$ TOTAL INVESTMENT TO DATE: 1,574,216$ 26 Ozark Folkways at Walker Stone House Proposal To: Fayetteville A&P Commission From: Ozark Folkways Date: August 19, 2025 OVERVIEW Dear A&P Commission, Thank you for the opportunity to work together to continue and expand the programming started by the Folk School of Fayetteville at the Walker Stone House. Ozark Folkways recognizes the value that the A&P Commission and the Folk School of Fayetteville have provided to the Fayetteville community through this public-private partnership. We look forward to continuing this partnership by progressing the work started by the Folk School of Fayetteville, as well as advancing our unified goals through the unique programming we offer. This proposal is intended to provide additional information on Ozark Folkways, the historical and potential value of community arts space in Fayetteville, and how Ozark Folkways intends to fill gaps in artistic opportunities and cultural attractions in Fayetteville, in partnership with the A&P Commission. Ozark Folkways Ozark Folkways is a nonprofit organization dedicated to the preservation, development, instruction, and celebration of Ozark arts, crafts, and music. We have operated out of the historic Muxen Building in Winslow, AR, since 1972. At the Muxen Building, we host a variety of craft workshops, concerts featuring local musicians, traditional social dances, kids camps, fiber art and pottery makerspaces, a gallery featuring local artists, an annual Fiber Fest, and other celebrations of regional arts and crafts. Although Ozark Folkways is currently based in Winslow, AR, six out of twelve of the Ozark Folkways board of directors reside in Fayetteville. Two Ozark Folkways board members either are serving or have served on the Fayetteville Arts Council. The board is hopeful about the opportunity to bring the Folkways “dream” to downtown Fayetteville and to build bridges between rural and urban Arkansans and across artistic disciplines. 1 27 Folk School of Fayetteville The Folk School of Fayetteville was a community music space in downtown Fayetteville run by Bernice Hembree. From 2023 through August 2025, Folk School of Fayetteville operated out of the Walker-Stone House through a public-private partnership with Experience Fayetteville. The Folk School of Fayetteville served, like other folk schools, as a way for communities to learn from each other, a model especially vital to communities that don’t have access to “formal education.” During its time at the Walker-Stone House, the Folk School of Fayetteville hosted many free, open-to-the-public events including musical jams, open mics, songwriting circles, and dances. Additionally, they hosted a variety of concerts, musical workshops, a teachers cooperative, and other special events. In the fall of 2024, the Folk School of Fayetteville created an economic impact report which reported on programming between May 15, 2023 and October 15, 2024. The document reports the following: ● 152 jams, 77 workshops, 23 concerts, 5 community events on the lawn, 3 summer camps, and 12 community meetings and misc events, including $58,800 worth of free community programming (based on $20/person average value) ● 1,902 private lessons at the Folk School of Fayetteville, taught by 10 teachers and serving 106 students. ● $81,895 paid to musicians ($52,305 direct to musicians through lessons taught at the Walker-Stone house and $29,590 through the Folk School via concerts and workshops) ● An estimated $133,875 spent outside of the Folk School in the Fayetteville economy as a result of Folk School programming (based on Americans for the Arts Economic Impact Study AE6, $29.77 local resident spending * 4497 total attendees) ● Partnerships with organizations including Soldier Songs & Voices, Cache, NWA Jazz Society, NWA Collective, City of Fayetteville Waste & Recycling, UA School of Art, Walton Arts Center, George’s Majestic, Ozark Folkways, and KUAF. The Transition from Folk School of Fayetteville to Ozark Folkways Bernice Hembree, who has run the Folk School of Fayetteville since its inception, is embarking on an exciting move to pursue her masters degree. Her decision to go to graduate school was in part due to uncertainty regarding the ability to get a long term lease on the Walker-Stone House to continue the mission of the Folk School of Fayetteville. Ozark Folkways, in partnership with a group of dedicated Folk School volunteers, has agreed to continue and expand the mission of the Folk School of Fayetteville at the Walker-Stone House, pending proposal approval from the Fayetteville A&P Commission. Under this agreement, Ozark Folkways would continue the mission of community music space, continue to operate the teachers cooperative, maintain accessibility to instruments and educational programs, and 2 28 incorporate a variety of new programming including craft workshops, a gallery, makerspace(s), and markets. To aid in this transition, the Folk School of Fayetteville 501c3 has agreed to donate assets essential to historical Folk School of Fayetteville programming to Ozark Folkways 501c3. The assets to be donated include 75 instruments, 190 chairs, a variety of PA equipment, 8 appliances, security system hardware, and more for a total estimated replacement value of $47,735. Mission Alignment The mission of Ozark Folkways is to preserve, develop, instruct, and celebrate Ozark arts, crafts, and music. Ozark Folkways is a natural fit to continue the community arts space created by Folk School of Fayetteville due to intrinsic alignment with the Folk School of Fayetteville’s mission to connect the community through music by fostering opportunities for learning and connection. Given the proven idea that arts, crafts, and music both enhance quality of life and stimulate hospitality economies (see pg 5), Ozark Folkways programming is also in alignment with Experience Fayetteville's mission is to elevate the quality of life for the community of Fayetteville, Arkansas through tourism promotion, partnerships, and programs. Due to Ozark Folkways’ mission alignment with both Folk School of Fayetteville and Experience Fayetteville, we expect this to be a fruitful transition and partnership. 3 29 THE NEED FOR COMMUNITY ARTS AND MUSIC SPACE IN FAYETTEVILLE 2023 Memo from Molly Rawn (as CEO of Experience Fayetteville) “Music is an important part of our creative and tourism economy, and is also a critical piece of Fayetteville' s authentic identity. Experience Fayetteville has been listening to our local musicians and those in the music industry speak of significant challenges present in the musical ecosystem. Many of these challenges, while exacerbated by the pandemic, were threats prior to 2020. Chief among these is that Fayetteville has a lack of smaller venue space for emerging musicians to develop their skills. Additionally, we have a lack of affordable space for music instructors. A physical space for music, for musicians and music organizations to gather, to collaborate and organize, to share resources, to teach lessons and for professional development, is essential for a thriving music community. Drawing on lessons learned at 2019' s Music Cities Conference attended by Experience Fayetteville and City of Fayetteville Staff, Experience Fayetteville has engaged in multiple conversations with Bernice Hembree of Folk School of Fayetteville. It is the belief of the CEO of Experience Fayetteville and the city of Fayetteville' s Arts and Culture Director, that EF is uniquely positioned to alleviate some of these challenges. The Walker Stone House is an ideal location for a music space in Fayetteville. Folk School of Fayetteville leadership have toured the space and believe it to be well suited for workshops, lesson space, and eventually small concerts by Folk School of Fayetteville and other local arts organizations.” 2025 Fayetteville Arts and Culture Plan Key Findings “The artist community needs more informal hubs for multidisciplinary collaboration to drive innovation and connectivity. Youth under 21 also need creative spaces to express themselves and as a talent retention thread. The loss of such spaces has affected the cohesion of Fayetteville’s arts scene. Gaps in the arts ecosystem include studios and workspaces, mid-sized music venues, rehearsal and performances spaces, galleries and affordable commercial spaces for arts-adjacent small businesses, including retail stores that sell locally-made goods and wares and host workshops, events, and/or pop-up markets.” “On-going efforts should focus on activating unique gathering spaces throughout the city with public art and community-focused activities, while preserving, highlighting and celebrating historic and culturally significant areas. Collaborative placemaking will be key to protecting and enhancing Fayetteville’s special places.” 4 30 “Fayetteville is poised to advance arts and culture not only within the community, but also in the region, the state and beyond. Currently, the city lacks a strong arts and culture brand that differentiates it from its neighbors. Advocacy for the sector has been, until recently, uncoordinated and signature defining arts events have been lost, reducing cultural attractions.” From Creative Economy Experts, including Americans for the Arts, National Endowment for the Arts, and the Bureau of Economic Analysis “Arts & Economic Prosperity 6 (AEP6) is an economic and social impact study of the nonprofit arts and culture industry. In the Northwest Arkansas Region, the sector generated $232.7 million in economic activity during 2022—$157.4 million in spending by arts and culture organizations and an additional $75.2 million in event-related expenditures by their audiences. That economic activity supported 3,434 jobs, provided $136.6 million in personal income to residents, and generated $35.2 million in tax revenue to local, state, and federal governments.” (Arts and Economy Prosperity 6 (AEP6): The Economic & Social Impact Study of Nonprofit Arts & Culture Organizations & Their Audiences in Northwest Arkansas pg 4). “Arts and culture drives commerce to local businesses. When people attend a cultural event, they often make an outing of it—dining at a restaurant, paying for parking or public transportation, enjoying dessert after the show, and returning home to pay for child or pet care. Overall, in the Northwest Arkansas Region, attendees spend $31.63 per person per event, beyond the cost of admission. These dollars represent vital income for local merchants and a value-add with which few industries can compete.” (Arts and Economy Prosperity 6 (AEP6): The Economic & Social Impact Study of Nonprofit Arts & Culture Organizations & Their Audiences in Northwest Arkansas pg 4). “Arts and culture strengthens the visitor economy. In the Northwest Arkansas Region, 12.0% of attendees are nonlocal visitors who traveled from outside Benton and Washington Counties; they spend an average of $63.33. Additionally, 87.4% of nonlocal attendees reported that the primary purpose of their visit was specifically to attend the performance, event, exhibit, venue, or facility where they were surveyed.” (Arts and Economy Prosperity 6 (AEP6): The Economic & Social Impact Study of Nonprofit Arts & Culture Organizations & Their Audiences in Northwest Arkansas pg 4). “A vibrant arts and culture community keeps local residents—and their discretionary dollars— in the community. When attendees were asked what they would have done if the event where they were surveyed had not been available, 41.4% of attendees who live in Benton and Washington Counties said they would have ‘traveled to a different community to attend a similar arts or cultural activity.’” (Arts and Economy Prosperity 6 (AEP6): The Economic & Social Impact Study of Nonprofit Arts & Culture Organizations & Their Audiences in Northwest Arkansas pg 4). 5 31 Nationally, arts & culture contributed $1.2T (4.2% of U.S. GDP) and grew twice the rate of the overall economy in 2023. (National Endowment for the Arts and the Bureau of Economic Analysis) Recent Public Opinion “There are plenty of ways to fill a budget. There are far fewer ways to fill a city with music, with meaning, with the kind of magic that draws people not just to visit, but to stay. To plant roots. To raise kids. To start bands. You want Fayetteville to be a destination? Make sure it stays Fayetteville.” (Philip Martin, “Keep Fayetteville’s Folk School alive,” NWA Democrat Gazette) “I want to write more stories and songs to preserve the memory of my Fayetteville life because so much of what it was has been lost…I think many lifelong natives are considering leaving this place because it no longer feels like home…We need to preserve what is left of our home…The Folk School is about the last place that feels like home to me.” (Carol Widder, “NWA Letters: Save historic house, cultural gem inside,” NWA Democrat Gazette) “The Folk School of Fayetteville has taken the historic Walker-Stone House and made it a vibrant, safe haven for musicians, songwriters and people who enjoy great music and dance. The Folk School of Fayetteville has enriched my life and the lives of the veterans I help serve through the partnership with Soldier Songs and Voices…it’s not just a place. It is a tradition of community and caring…Music is the home in our hearts.” (Lee Haight, “NWA Letters: Folk school closing, musicians will stay,” NWA Democrat Gazette) “This vibrant, joyful community space is like no other in the city of Fayetteville. It supports old time music and local creativity with a welcoming, open heart…I first got to know this community at square dances…These dances brought together young and old, students from the University of Arkansas, musicians, callers … everyone welcome and dancing together. The Folk School continued and expanded this tradition with jams, original songs, dances, a rental of instruments, classes, summer camps and so much more…Support this valuable community resource, part of what makes Fayetteville a unique and desirable place to live.” (Jan M Vanschuyer, “NWA Letters: Folk school valued for its community,” NWA Democrat Gazette) “Fayetteville has and always will have a special place in my heart, but with all that’s happening in Northwest Arkansas I find myself in Fayetteville less and less often. The folk school has been one of the last few things that draw me to the city and the concerts, dances, and lessons I’ve attended at folk school have made a great starting point to try the great restaurants and entertainment Fayetteville has to offer.” (Jake Kowalewski, a University of Arkansas alumnus and current resident of Bella Vista, in his letter to the A&P Commission) 6 32 “The Folkschool has been a beacon of hope for a 'scene' that was showing signs of fizzling out. It has been wonderful to see all the FS programs come to life and to see the community embrace and participate in the events … To pull the rug out from under them could be the end of one of the best examples of a real grassroots community uprising.” (Kelly Mulhollan, Fayetteville musician, in his letter to the A&P Commission) “It's pretty much impossible to sum up everything that the Folk School means to me and my community … Hundreds of musicians have been able to use the space for free, something that is practically impossible to find, especially for high school and college students. Over a hundred music students of all ages have been able to call this place their second home, as do I myself. Week after week I've watched people of all ages and backgrounds come through those doors while their faces light up as they realize this is a space for them, for anyone and everyone, because "Folk Means People", as the Hembrees always say. We are losing creative community spaces left and right to big business real estate and tourism while lifelong residents like myself struggle to find a single place to perform at or teach from. This fight isn't new to creatives and community organizers, but that doesn't make it any less disheartening and exhausting. The one silver lining is the community that has formed through our love of and investment in this space and mission. We will never stop fighting for accessible creative education and community.” (Milcah Hulen-Posnak, Executive Director of the NWA Collective, in a comment to NWA Democrat Gazette) “For over two years, since the opening of the Folk School, I have hosted a monthly event [at the Folk School of Fayetteville] - the Songwriters Open Mic, where writers and musicians - young and old - have been coming to perform original works for a growing, energized Fayetteville audience of music-lovers. Some songwriters have come from Ft. Smith, Springfield, Bartlesville, and Mountainburg, along with occasional touring artists who chose to perform for our great community from Albuquerque, Detroit, and Tampa. The word from these folks has been that they wish their communities had such a valuable asset and enthusiastic audience for local and regional artists' work. The room is almost always filled to capacity for every performance, which has featured as many as 30 songwriters … When [Bernice and Bryan Hembree] arranged to use the Walker Stone House for the Folk School, it almost immediately became a beloved focal-point for the regional music community - artists as well as listeners - and a beacon of learning and growth for young artists and for artistic communication and interaction by all musicians in the region.” (Jack Williams, Leader of Songwriters Open Mic, in his letter to the A&P Commission) In Summary Fayetteville, a town historically known for its thriving arts scene, is at a critical juncture in development. Although art spaces and, as a result, local arts culture have been displaced by new development and the fast pace of growth, beacons of hope such as the Folk School of Fayetteville community remain. At this juncture, the city of Fayetteville and other entities 7 33 supported by tax dollars have a window of opportunity to invest in what remains of its authentic arts and culture identity in order to foster the regrowth of the cultural attractions that have long drawn people to Fayetteville. Furthermore, public support of the arts serves an investment not only in the creative economy but the economy at large, particularly the hospitality economy. 8 34 OZARK FOLKWAYS FAYETTEVILLE STRATEGY Ozark Folkways will continue and expand the mission of the Folk School of Fayetteville in the Walker Stone House and fill critical gaps in the arts ecosystem including “studios and workspaces, mid-sized music venues, rehearsal and performances spaces, galleries and affordable commercial spaces for arts-adjacent small businesses, including retail stores that sell locally-made goods and wares and host workshops, events and/or pop-up markets.” (2025 Fayetteville Arts and Culture Plan, pg. 28). Through this strategy, Ozark Folkways will strengthen the broader Fayetteville community both culturally and economically. Commitment to Community Music Space Under Ozark Folkways, the Walker-Stone House will continue to serve as a community music space by continuing programs started by the Folk School of Fayetteville including ● Free, open-to-the-public opportunities for musicians to gather and learn from one another ● A music teachers cooperative that provides shared, affordable classroom space for teachers ● Accessibility to instruments through an instrument lending library ● Accessible music educational programs ● Rehearsal and performance space Expansion of Programs to Incorporate Visual Arts and Crafts Ozark Folkways has long been known as a place where artists and craftspeople of varied disciplines exchange skills and ideas. Over time, Ozark Folkways would introduce new programs at the Walker-Stone House to welcome artists of all disciplines. These programs may include: ● Visual arts and crafts workshops (single and multi-day) ● A gallery featuring local artists ● Makerspace(s) ● Pop-up markets ● Programs to increase programmatic reach through collaboration with ○ Arts and culture organizations, including the city’s Parks, Natural Resources, and Cultural Affairs department ○ The University of Arkansas ○ Organizations uplifting marginalized cultures ○ Music venues ○ Organizations specializing in local history, including the Washington County Historical Society ○ Experience Fayetteville (collaboration on new and existing events) ○ Local hotels, motels, and restaurants 9 35 ○ Other organizations with mission alignment ● A signature event or series which would highlight Ozark arts, crafts, and music and serve as a cultural attraction for residents and visitors to Fayetteville 10 36 A TWO-PART PROPOSAL Part One: Ozark Folkways enters into a $1/yr lease with Experience Fayetteville on the Walker-Stone House with similar terms to the existing Folk School of Fayetteville lease. This lease begins October 1, 2025 and ends December 31, 2026. Ozark Folkways uses this time to reestablish the community music space at the Walker-Stone House and to pilot new programming and partnerships. By September 2026, Ozark Folkways reports back to the A&P Commission with a summary of executed programs and a letter of intent regarding part two (details below). Due to the voting timeline of the A&P Commission, this lease begins October 1, 2025. For the month of September 2025, assets donated from Folk School of Fayetteville 501c3 to Ozark Folkways 501c3 will remain in the Walker-Stone House. During this time, Experience Fayetteville will maintain an internal temperature between 65°F and 75°F and will insure the assets. Part Two: Pending Ozark Folkways’ successful demonstration of its role as a community arts and music space which fosters Fayetteville’s creative culture and economy, Ozark Folkways has the option to enter into a 5 year lease on the Walker-Stone House. Under this lease, Experience Fayetteville has the option to collect 10% of all event revenue from Ozark Folkways events occurring at the Walker-Stone House, up to 30% of the total operational expenses related to Ozark Folkways’s activities at the Walker-Stone House location, to be paid quarterly. During this 5 year partnership, Ozark Folkways continues to expand programming and organizes a signature event with advertising support from Experience Fayetteville and programmatic support from other collaborating organizations. The lease described above will be voted on by the A&P Commission no later than October 2026 for a January 1, 2027 start date. Timeline: ●August 2025 A&P Commission Meeting - The A&P Commission votes on a Letter of Intent to move forward with part one of this proposal. The A&P Commission also votes on a Memorandum of Understanding related to part two of this proposal. ●September 2025 A&P Commission Meeting - The A&P Commission votes on the lease document for part one of this proposal. ●October 1, 2025 - Ozark Folkways’s part one lease on the Walker-Stone begins. 11 37 ● September 2026 A&P Commission Meeting - Ozark Folkways reports back to the A&P Commission with a summary of executed programs and a letter of intent regarding part two. The A&P Commission votes on a letter of intent to proceed with part two. ● October 2026 A&P Commission Meeting - The A&P Commission votes on the lease document for part two of this proposal. ● December 31, 2026 - Ozark Folkways part one lease ends. ● January 1, 2027 - Ozark Folkways part two lease begins. ● Ozark Folkways delivers an annual report to Experience Fayetteville which details programming and highlights opportunities for collaboration. ● May 2031 - Conversations about a third lease begin by this date. ● August 2031 - A vote on a third lease takes place by this date. ● December 31, 2031 - Ozark Folkways part two lease ends. ● January 1, 2032 - Potential third lease begins. 12 38 APPENDIX Please find the following documents in the coming pages: ● 6 year budget projection for Ozark Folkways operations and programming at the Walker-Stone House ● Ozark Folkways 2025 YTD Financials ● A recap of May 15, 2023 - October 15, 2024 Folk School of Fayetteville programming at the Walker Stone House, provided by the Folk School of Fayetteville ● 2025 Fayetteville Arts and Culture Plan, Section 3: Key Findings ● Arts and Economy Prosperity 6 (AEP6): The Economic & Social Impact Study of Nonprofit Arts & Culture Organizations & Their Audiences in Northwest Arkansas, Takeaways 13 39 Ozark Folkways Fayetteville Budget Projections through 2031 Please note, the figures below are highly subject to change throughout Ozark Folkways initial lease and beyond. More accurate figures will be available for review by September 2026. 2026 2027 2028 2029 2030 2031 initial lease longterm lease yr 1 longterm lease yr 2 longterm lease yr 3 longterm lease yr 4 longterm lease yr 5 establish baseline programming grow programming, begin planning for signature event grow programming, host first signature event grow programming, grow signature event grow programming, grow signature event grow programming, grow signature event Income concerts $3,000.00 $4,800.00 $6,000.00 $7,200.00 $7,200.00 $7,200.00 workshops $4,320.00 $6,000.00 $7,680.00 $9,360.00 $12,240.00 $15,120.00 gallery sales $4,000.00 $5,000.00 $6,000.00 $7,000.00 $8,000.00 $10,000.00 signature event revenue $0.00 $0.00 $10,000.00 $25,000.00 $50,000.00 $50,000.00 donations $6,000.00 $10,000.00 $12,000.00 $15,000.00 $20,000.00 $30,000.00 govt funding and grants $5,000.00 $10,000.00 $15,000.00 $25,000.00 $50,000.00 $50,000.00 TOTAL $22,320.00 $35,800.00 $56,680.00 $88,560.00 $147,440.00 $162,320.00 Operating Expenses Utilities $5,018.00 $6,523.40 $8,480.42 $11,024.55 $14,331.91 $18,631.48 Subscriptions (Internet, phone, website, alarm)$1,345.00 $1,748.50 $2,273.05 $2,954.97 $3,841.45 $4,993.89 Building Insurance $2,860.00 $3,718.00 $4,833.40 $6,283.42 $8,168.45 $10,618.98 Facility Coordinator $2,000.00 $4,000.00 $6,000.00 $12,000.00 $35,000.00 $35,000.00 $ to A&P for maintenance of house*$0.00 $1,580.00 $2,968.00 $4,856.00 $7,744.00 $8,232.00 TOTAL $11,223.00 $17,569.90 $24,554.87 $37,118.93 $69,085.81 $77,476.35 Programming Expenses concert artist payout $2,100.00 $3,360.00 $4,200.00 $5,040.00 $5,040.00 $5,040.00 workshops artist payout $3,024.00 $4,200.00 $5,376.00 $6,552.00 $8,568.00 $10,584.00 workshop supplies $1,512.00 $2,100.00 $2,688.00 $3,276.00 $4,284.00 $5,292.00 gallery artist payout $2,800.00 $3,500.00 $4,200.00 $4,900.00 $5,600.00 $7,000.00 signature event(s)$0.00 $1,000.00 $5,000.00 $12,000.00 $25,000.00 $25,000.00 new artist-oriented programs $0.00 $1,000.00 $5,000.00 $10,000.00 $10,000.00 $10,000.00 other $1,000.00 $2,000.00 $3,000.00 $5,000.00 $5,000.00 $5,000.00 free programming opportunity cost (only used to calculate opex %)$45,000.00 $48,000.00 $48,000.00 $51,000.00 $51,000.00 $51,000.00 TOTAL $10,436.00 $17,160.00 $29,464.00 $46,768.00 $63,492.00 $67,916.00 Net Total Net $661.00 $1,070.10 $2,661.13 $4,673.07 $14,862.19 $16,927.65 40 Distribution account Total % of Income/ Expenses Income Class & Workshop Revenue $9,735.00 21.21% Donations*$10,764.98 23.46% Event Revenue $10,565.00 23.02% Gallery Sales $8,362.82 18.22% Grants $7,266.00 15.83% Other Income $36.94 0.08% Unapplied Cash Payment Revenue -841.37 -1.83% Total for Income $45,889.37 Expenses Total for Operating Expenses $28,984.27 63.06% Total for Programming Expenses $15,238.43 33.16%** Sales Tax (State and Local)1,523.05 Uncategorized Expense 119.70 Reconciliation Corrections 9.31 Total for Uncategorized Expense $129.01 Total for Expenses $45,959.75 Net Operating Income -$70.38 Cash Basis Saturday, August 16, 2025 01:12 AM GMTZ *This represents only monetary donations and not in-kind donations. **Over the next 5 years, Folkways intends to grow programming investment to >50% of total expenses. This will be made possible by program expansion, new donor programs, and greater investment in grantwriting. Statement of Activity Ozark Folkways January 1-August 15, 2025 /I RECAPPING 17 MONTHS OF FOLK SCHOOL OF FAYETTEVILLE PROGRAMMING @ WALKER STONE HOUSE May 15, 2023 - Oct 15, 2024 COMMUNITY ORGANIZATIONS WE HAVE COLLABORATED WITH DURING THIS PERIOD Soldier Songs & Voices Cache NWA Jazz Society NWA Collective City of Fayetteville Waste & Recycling UA School of Art Walton Arts Center George’s Majestic Ozark Folkways KUAF WORKSHOPS, CONCERTS, JAMS, OPEN MICS & COMMUNITY EVENTS ON THE LAWN MAY 15 - OCT 15 (17 Months) 283 Events or Event Days 65-70% of Events are Free Community Events 4497 Attendees $58,800 in Free Community Programming Value ($20 per person average value) $133,875 Economic Impact of Event Related Spending (Based on Americans for the Arts Economic Impact Study AE6, $29.77 local resident spending) 152 Jams (15 People on Average, 2280 Musicians/Participants) 77 Workshop (6 People on Average, 462 Participants) 23 Concerts (40 People on Average, 920 Attendees) 5 Community Events on the Lawn (660 Attendees) 3 Summer Camp (25 Students Attended) 12 Community Meetings & Misc Events (150 Attendees) $29,590 Direct Economic Impact to Musicians (75% to Artist on Paid Events) TEACHERS COOP @ FOLK SCHOOL OF FAYETTEVILLE  JULY 15 - OCT 15 15 Months 1902 Private Lessons 127 Lessons per Month 10 Teachers in the Coop 106 Students $52,305 Direct Economic Impact to Musicians TOTAL ECONOMIC VALUE & IMPACT  Folk School of Fayetteville generated $274,570 in Economic Impact & Value over 17 Months Experience Fayetteville’s Investment over for 2023 - 2024 $146,112 Direct Support 42 $30,000 $6000 in Year 1 Supplemental Utilities support Facilities Maintenance (Including EF staff, insurance, Repairs & Maintenance) $110,112   Folk School of Fayetteville’s pilot at Walker Stone House represents a $128,458 positive net in Economic Impact and Value 43 SECTION 3 Key Findings SECTION 3 26 44 I t is clear Fayetteville has remarkable arts and culture attributes and that the community cares deeply about protecting Fayetteville’s unique and authentic creative identity. The arts and culture sector is primed to grow and continue to be a deﬁning feature of Fayetteville. However, there is a simultaneous fear of losing what makes Fayetteville special–from the pressures of the rising cost of living, new development and the fast pace of growth. A key task in developing the Fayetteville Arts and Culture Plan was to identify gaps and needs within the existing Fayetteville arts and culture ecosystem. The identiﬁed needs also o er insights into opportunities to support and advance arts and culture, and di erentiate Fayetteville vis-a-vis Northwest Arkansas. Through a variety of community engagement methods, additional research and peer cities benchmarking, the following key ﬁndings acknowledge the needs and areas of potential growth for Fayetteville. What we heard: Fayetteville’s Arts and Culture Sector Needs Nurturing. The artist and creative community expressed some challenges about living and working in Fayetteville. The city is home to working, creating, making artists and creatives, but there is a fear that artists will be forced to move away as property values increase beyond a ordability. A decline in the number of galleries downtown and some missing key venues and creative spaces impacts steady creative development, production and visibility. There is also strong sentiment that artists are underpaid and undervalued, with limited access to resources, funding and promotion. Like any other economic sector, the creative sector needs inclusion in the city’s workforce retention and development e orts, and artists and creatives can beneﬁt from more connectivity to one another and more opportunities for collaboration. Top ﬁve barriers to artists and creatives making a living from their art or creative work in Fayetteville • Not enough venues • Not enough places to exhibit or sell • Not connecting with audiences/ patrons/collectors/customers • Not enough paying gigs • Not enough marketing Top three concerns of Fayetteville artists and creatives: • Artists/creatives not earning a living wage • Lack of a ordable venues to work/ create/practice • Housing a ordability/artists and creatives getting priced out 27CITY OF FAYETTEVILLE | Arts & Culture Plan 202545 Arts and Culture Needs Sustainable Funding and Support. Although there has been signiﬁcant targeted public investment for arts and culture, from funding new facilities to murals and free summer concerts, these funds have not been strategically or uniformly deployed across the sector. Ongoing direct and consistent funding for arts and culture has been limited. A major source for arts and culture funding has been from several large regional foundations, but philanthropy overall tends to to be less diversiﬁed. There are a number of economic tools available to the city to help incentivize and promote arts and culture sector development, which will require coordination and consensus to deploy. The Need for More Creative Spaces in Fayetteville. Despite Fayetteville’s superb arts and culture facilities and nearby spaces like the Medium in Springdale, critical spaces are missing that could better support artists, musicians, and creatives. These missing spaces hinder growth, career development and the community’s engagement with the arts. The artist community needs more informal hubs for multidisciplinary collaboration to drive innovation and connectivity. Youth under 21 also need creative spaces to express themselves and as a talent retention thread. The loss of such spaces has a ected the cohesion of Fayetteville’s arts scene. Gaps in the arts ecosystem include studios and workspaces, mid-sized music venues, rehearsal and performances spaces, galleries and a ordable commercial spaces for arts- adjacent small businesses, including retail stores that sell locally-made goods and wares and host workshops, events and/or pop-up markets. The community wants more opportunities to participate and engage in arts and culture. The community expressed the importance it places on arts and culture and emphasized the need for community involvement, cultural diversity and integrating art into daily life that is accessible and a ordable, for youth and adults, for residents and visitors. The community wants more variety and higher quality arts and culture activities and experiences. Speciﬁcally they mentioned wanting more live music, outdoor concerts, festivals, art exhibits, museums and ﬁlms– without having to leave Fayetteville. They would like to see more public art throughout Fayetteville and spaces to participate in art- making of all types. Over 90% of people surveyed said arts and culture opportunities in Fayetteville are “Important (16%) or Very Important (74%).” “There are enough opportunities for me to participate in arts and cultural activities in Fayetteville”: 65% Somewhat or Deﬁnitely Agree. “We need to improve the quality of arts and cultural activities in Fayetteville”: 81% Somewhat or Strongly Agree. When asked “Do you attend arts and cultural events in nearby communities?” 82% responded that they did, and only 18% did not. The community survey revealed that the majority of people surveyed think the City should spend more on arts and culture in Fayetteville. 62% stated that the City should spend more or much more 27% spend “about the same” 4% stated that the City should “spend less or much less.” CITY OF FAYETTEVILLE | Arts & Culture Plan 20252846 Fayetteville Needs to Activate and Preserve its Unique Spaces and Places. Fayetteville has invested in cultural spaces like the Upper and Lower Ramble, showcasing a commitment to placemaking through memorable gathering areas, murals and publicly available art. With careful planning and programming, these accessible spaces can enhance the city’s vibrancy and liveability and support the creative community. On-going e orts should focus on activating unique gathering spaces throughout the city with public art and community-focused activities, while preserving, highlighting and celebrating historic and culturally signiﬁcant areas. Collaborative placemaking will be key to protecting and enhancing Fayetteville’s special places. Fayetteville Needs to Retain and Build its Authentic Arts and Culture Identity. Fayetteville is poised to advance arts and culture not only within the community, but also in the region, the state and beyond. Currently, the city lacks a strong arts and culture brand that di erentiates it from its neighbors. Advocacy for the sector has been, until recently, uncoordinated and signature deﬁning arts events have been lost, reducing cultural attractions. While Fayetteville tends to focus hyper-locally, it could beneﬁt from more cross-cultural engagement with creatives and advocates outside the city. Bringing in outside artists creates valuable opportunities for local artists to exchange ideas, learn new techniques, and expand their networks, enriching the creative landscape and connecting them with wider audiences and new opportunities.” Asheville, North Carolina X X X X X X 1%X X Boise, Idaho X X X X X X 1.2% X X Boulder, Colorado X X X X X X X 1% X X Fort Collins, Colorado X X X X X X X 1% X X Lawrence, Kansas X X X X X X 2% X X Little Rock, Arkansas X X X X Oklahoma City, Oklahoma X X X X X X 1%X X Fayetteville, Arkansas X X X X X X Mu n i c i p a l A & C D e p a r t m e n t Mu n i c i p a l o w n e d / o p e r a t e d A& C f a c i l i t i e s / v e n u e s Mu n i c i p a l M u s e u m / H i s t o r i c S i t e Mu n i c i p a l b u i l d i n g l e a s e d to A & C n o n p r o ﬁ t No n - M u n i c i p a l Cu l t u r a l F a c i l i t i e s Mu n i c i p a l S p e c i a l E v e n t s S u p p o r t / C o o r d i n a t i o n No n - M u n i c i p a l C u l t u r a l F a c i l i t i e s Sta t e - L e v e l F i l m I n c e n t i v e or R e b a t e P r o g r a m Lo c a l F i l m O ce To u r i s m S u p p o r t % f o r P u b l i c A r t P r o g r a m Mu n i c i p a l G r a n t i n g P r o g r a m De s i g n a t e d C r e a t i v e o r A r t s D i s t r i c t s Cr e a t i v e B u s i n e s s S u p p o r t PEER CITIES | This chart compares key elements of arts and culture in peer cities to Fayetteville. 29CITY OF FAYETTEVILLE | Arts & Culture Plan 202547 The Economic & Social Impact Study of Nonprofit Arts & Culture Organizations & Their Audiences in Northwest Arkansas Supporting jobs. Generating revenue. Building community vibrancy. 48 Page | 4 Americans for the Arts | Arts & Economic Prosperity 6 TOP AEP6 TAKEAWAYS in the Northwest Arkansas Region 1. Arts & Economic Prosperity 6 (AEP6) is an economic and social impact study of the nonprofit arts and culture industry. In the Northwest Arkansas Region, the sector generated $232.7 million in economic activity during 2022—$157.4 million in spending by arts and culture organizations and an additional $75.2 million in event-related expenditures by their audiences. That economic activity supported 3,434 jobs, provided $136.6 million in personal income to residents, and generated $35.2 million in tax revenue to local, state, and federal governments. 2. Nonprofit arts and culture organizations are businesses. They employ people locally, purchase supplies and services from nearby businesses, and engage in the marketing and promotion of their cities and regions. Their very act of doing business—creating, presenting, exhibiting, engaging—has a positive economic impact and improves community well-being. In the Northwest Arkansas Region, nonprofit arts and culture organizations spent an estimated $$157.4 million which supported 2,300 jobs and generated $23.6 million in local, state, and federal government revenue. 3. Arts and culture drives commerce to local businesses. When people attend a cultural event, they often make an outing of it—dining at a restaurant, paying for parking or public transportation, enjoying dessert after the show, and returning home to pay for child or pet care. Overall, in the Northwest Arkansas Region, attendees spend $31.63 per person per event, beyond the cost of admission. These dollars represent vital income for local merchants and a value-add with which few industries can compete. 4. Arts and culture strengthens the visitor economy. In the Northwest Arkansas Region, 12.0% of attendees are nonlocal visitors who traveled from outside Benton and Washington Counties; they spend an average of $63.33. Additionally, 87.4% of nonlocal attendees reported that the primary purpose of their visit was specifically to attend the performance, event, exhibit, venue, or facility where they were surveyed. 5. A vibrant arts and culture community keeps local residents—and their discretionary dollars— in the community. When attendees were asked what they would have done if the event where they were surveyed had not been available, 41.4% of attendees who live in Benton and Washington Counties said they would have “traveled to a different community to attend a similar arts or cultural activity.” 6. Arts and culture organizations contribute to community pride in the Northwest Arkansas Region. ▪ 91.6% of arts and culture attendees agree that the activity or venue where they were surveyed “is inspiring a sense of pride in this neighborhood or community.” ▪ 92.3% agree that “I would feel a great sense of loss if this activity or venue were no longer available.” ▪ 90.8% agree that the venue or facility where they were surveyed is “an important pillar for me within my community.” ys August ___, 2025 Abby Hollis Board of Directors, President-Elect Ozark Folkways 22733 N. Highway 71 Winslow, AR 72959 RE: Letter of Intent concerning proposed Lease Agreement between Fayetteville Advertising and Promotion Commission, a governmental agency (“A&P Commission”), and Ozark Folkways, an Arkansas nonprofit corporation, for real property located at 729 S. School Ave., Fayetteville, Arkansas 72701 (the “Premises”). Dear Ms. Hollis: This Letter of Intent (“LOI”) sets forth certain of the terms and conditions pursuant to which A&P Commission proposes to lease to Ozark Folkways (“Tenant”) the Premises known colloquially as the “Walker-Stone House.” Please note that this LOI is non-binding as it is subject to approval by the A&P Commission’s Commissioners, which must be provided through a vote of the commissioners in a public meeting (regular or “special”) pursuant to the Arkansas Freedom of Information Act. And any approval by the commissioners for the terms of this LOI does not guarantee the commissioners’ subsequent approval of a formal Lease Agreement that must be agreed upon between A&P Commission and Tenant. A&P Commission’s commissioners must approve the terms of any such Lease Agreement in another public meeting. The Premises: The Walker-Stone House with a street address of 729 S. School Ave., Fayetteville, Arkansas 72701. Lease Term: Sixty (60) months, commencing the 1st day of October, 2025, and ending the 30th day of September, 2030 (the “Duration”). Rental: Year 1: (October through December 2025): $1 annually (to be paid on or before December 31, 2025); Year 2: (January through December 2026): $1 annually (to be paid on or before December 31, 2026) Years 3-5: (January 2027 through September 2030): At or below fair market price (to be paid on or before December 31 for years 3 and 4 and on or before September 1, 2030 for year 5). Utilities and Refuse Removal: Tenant shall be responsible for both the procurement and payment of all utilities including, but not limited to, water, sewer, electricity, gas, internet, 50 telecommunications, and other data services, and for all charges connected with removal of refuse from the Premises. Lawn/Grounds Care: Tenant shall be responsible for providing regular lawn/grounds care and maintenance, including landscaping and mowing. Alterations/Improvements: Ozark Folkways may not make any changes, alterations, additions or major repairs to the Premises, including any existing or future structures, including existing artistic pieces, unless all plans and specifications for such changes, alterations, additions or major repairs have been approved by A&P Commission or its agent and by any agency of the State of Arkansas required by law to review or approve such projects. Furthermore, such projects shall be performed by persons, companies or agencies which are properly trained and licensed to perform such repairs and maintenance, and which are approved in advance by A&P Commission’s facilities management department, provided that such approval will not be unreasonably withheld. A&P Commission, its officers, officials, employees, and agents, may inspect any such project to ensure that plans and specifications are followed, and that the construction, repairs or renovation meets the requirements of state law and applicable codes, and may require changes to be made in order to comply with the plans, specifications, state law or applicable codes. A&P Commission may inspect the Premises at any time upon adequate notice and without any interruption of Tenant’s use of Premises, including the house and all leasehold improvements, and may, if necessary, designate necessary maintenance and repairs to be made by Tenant. Capital Improvements: Beginning on January 1, 2027, and running through the remainder of the lease term, Tenant acknowledges that certain capital improvements to the building located on the Premises (the “Capital Improvements”) may be required to accommodate Tenant’s contemplated use, comply with all 51 applicable laws, or maintain the Walker-Stone House in a first-class condition. Tenant agrees to cooperate with, and to provide reasonable assistance to, A&P Commission in the planning, permitting, scheduling, and completion of all such Capital Improvements. Without limiting the foregoing, Tenant shall (i) promptly furnish A&P Commission with all operational information, space plans, and technical specifications reasonably requested by A&P Commission; (ii) designate a single point of contact empowered to confer with Landlord’s architects, engineers, and contractors; (iii) review and either approve or provide detailed written comments on all plans and cost estimates within five (5) business days after receipt; and (iv) coordinate its own improvements, fixturing, and move-in activities so as not to interfere unreasonably with A&P Commission’s completion of the Capital Improvements. A&P Commission shall have sole discretion with respect to the selection of contractors, the sequencing of the work, and the construction means and methods, provided that A&P Commission shall perform the Capital Improvements in a diligent and commercially reasonable manner. The total, out-of- pocket, hard and soft costs incurred by A&P Commission in connection with the Capital Improvements (including design fees, permitting fees, construction costs, contractor overhead and profit, insurance, and a construction management fee to Landlord or its affiliate not to exceed three percent (3%) of such costs) are referred to herein as the “Capital Costs.” Commencing January 1, 2027, and continuing until the expiration of the Lease Term, Tenant shall contribute a negotiated amount before the end of year 2 of the Capital Costs, provided that A&P Commission gives Tenant at least thirty (30) days’ prior written notice describing the scope, estimated cost, and anticipated commencement date of such improvements, and Tenant shall remit its required contribution within fifteen (15) days after receipt of 52 an invoice therefor or pursuant to a reasonable payment schedule established by Landlord. Tenant may pay its contribution for the Capital Costs in equal monthly installments, amortized on a straight-line basis over the remaining term of the Lease Agreement. Tenant’s obligation to pay such amortized installments shall be absolute and unconditional and shall survive any early termination of the Lease Agreement to the extent unpaid. All Capital Improvements shall be and remain the sole property of A&P Commission, and nothing herein shall be construed to give Tenant any ownership interest therein. The parties acknowledge and agree that, except for the obligations expressly set forth in this paragraph, neither party shall have any further liability or obligation with respect to the Capital Improvements until a mutually acceptable Lease Agreement is executed. Major Repairs: A&P Commission shall be responsible for any costs associated with major structural improvements, system failure, or improvements necessary to resolve life safety issues. Such responsibility shall include the heating and air conditioning system, roof, exterior walls, exterior plumbing, foundation, structural components of the Premises, and pavement that becomes defective or damaged at any time during the Duration due to ordinary wear and tear and not due to the negligence of Tenant or Tenant’s agents or invitees. Upon notice from Tenant, A&P Commission will promptly cause repairs to be made and restore the defective portions to good condition. Climate Control: A&P Commission will maintain the Walker-Stone House’s internal heating and air conditioning system between 65 to 75 degrees Fahrenheit from the date the current tenant, Folk School of Fayetteville, Inc., vacates the Premises until Tenant assumes possession of the Premises. Property Insurance: The Premises shall be included on A&P Commission’s fire and casualty insurance policy, and the premium charges shall be paid by A&P Commission. Tenant shall be responsible for renter’s insurance coverage on Tenant’s personal property 53 and equipment and Tenant acknowledges and agrees that Tenant shall not be responsible and shall hold A&P Commission harmless for any loss or damage to Tenant’s personal property for any reason. Folk School Assets: A&P Commission agrees to keep the assets being left by the former tenant, Folk School of Fayetteville, Inc., stored in the Walker-Stone House pending either (1) the execution of a formal Lease Agreement between A&P Commission and Tenant; or (2) Tenant’s arrival at the Premises to enter the Walker- Stone House and to remove the former Folk School assets if no formal Lease Agreement is ever executed. If no formal Lease Agreement is ever executed, and Tenant needs to remove the former Folk School assets, Tenant shall provide twenty-four hours’ written notice by electronic mail to A&P Commission’s Chief Executive Officer. A&P Commission shall then provide Tenant access and entry to the Walker-Stone House to obtain and remove the old Folk School assets from the Premises at a date and time mutually agreeable to the parties. Lease Agreement: To be prepared and approved by A&P Commission’s commissioners (at a public meeting) within 20 business days from the date of final execution of this LOI (i.e., the date the last signatory executes this LOI). The Lease Agreement shall contain further provisions not specifically addressed in this LOI, including (but not limited to) termite policy and security, ordinary repairs and maintenance, destruction by fire or other casualty, liability insurance, taxes, licenses, fees, and assessments, lawful uses, right of entry, prohibition against creation of lien, assignment/subletting, delivery at end of lease, default, remedies in the event of default, holding over, waste, space heaters, notices, applicable law. If A&P Commission’s commissioners approve the prepared Lease Agreement, the commissioners shall also vote to have the Lease Agreement presented to Tenant for Tenant’s review and approval. 54 Additional Conditions: This LOI is conditioned upon final approval by A&P Commission’s commissioners. [Remainder of page intentionally left blank. Signature page to follow.] 55 A&P COMMISSION FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION By: Ryan Hauck, Chief Executive Officer Date: OZARK FOLKWAYS OZARK FOLKWAYS, an Arkansas nonprofit corporation By: Name: Title: Date: 56 Memo To: Fayetteville Advertising & Promotion Commissioners From: Ryan Hauck, CEO Date: August 25, 2025 Re: Clinton House Museum As the CEO of Experience Fayetteville, I am pleased to submit this recommendation for your consideration: that the Commission approve a grant of $17,500 to the Clinton House Museum for Fiscal Year 2026. The Clinton House Museum remains a vital part of our community’s cultural and historical landscape. As the first home shared by President Bill Clinton and Secretary Hillary Rodham Clinton, it attracts visitors from across the nation and serves as a unique point of interest for heritage tourism in Fayetteville. The museum plays a key role in promoting our city’s identity and historical significance while contributing to local economic development through tourism. It’s important to note that this funding request of $17,500 for fiscal year 2026 represents a reduction from this year’s allocation of $25,000, reflecting the museum’s ongoing efforts to operate efficiently while still expanding its reach and impact furthering its transition to independence. The requested funds will support essential operations, enhance programming, and continue targeted marketing efforts to attract both regional and national visitors. Supporting the Clinton House Museum aligns with Experience Fayetteville’s mission to elevate Fayetteville as a premier travel destination, while also preserving and sharing the stories that shape our community. We believe this investment will provide strong cultural and economic returns. Thank you for your thoughtful consideration of this recommendation. feel your memo should include information on this being another step in helping the museum transition to independence. 57 Fayetteville A&P Commission Clinton House Museum Support January 1, 2019 through August 17, 2025 Year Type of Support Amount 2019 In House (incl. wages)230,100$ 2020 In House (incl. wages)146,670$ 2021 In House 49,135$ 2022 In House 45,600$ 2022 Vendor Payment 16,798$ 62,398$ 2023 Vendor Payment 60,000$ 2024 Vendor Payment 50,000$ 2025 Vendor Payment 25,000$ $- $100,000 $200,000 $300,000 2019 2020 2021 2022 2023 2024 2025 CHM Support History Amount 58 Memo To: Fayetteville Advertising & Promotion Commissioners From: Ryan Hauck, CEO Date: August 25, 2025 Re: Recommendation for Multiyear Funding for the Downtown Fayetteville Coalition As the CEO of Experience Fayetteville, I respectfully recommend that the Commission move forward with the financial support of the Downtown Fayetteville Coalition’s (DFC) salaries and benefits for Kelly Rich and Chloe Bell along with agreed upon initiatives for the next three fiscal years, beginning in Fiscal Year 2026 and continuing through Fiscal Year 2028. The DFC has demonstrated a strong track record of creating vibrant, inclusive, and economically beneficial programming in our downtown district. Their initiatives directly support our mission at Experience Fayetteville by drawing both residents and visitors to the city’s core through signature events, placemaking efforts, business support, and strategic promotion of Fayetteville’s unique downtown culture. Events like Sundays on the Square, Phantasma, Fayetteville Strawberry Festival, Fayetteville Falltoberfest, and Lights of the Ozarks bring thousands attendees and dollars spent throughout our private business owners locations. This three-year funding commitment will provide the Coalition with the financial stability necessary to plan long-term, invest in sustainable growth, and build on the momentum of recent successes. It will also ensure that Fayetteville remains competitive within Northwest Arkansas that are investing heavily in their downtowns as hubs of tourism, commerce, and community life. By investing in the Downtown Fayetteville Coalition at this level, we are not only supporting a proven partner, we are reaffirming our collective commitment to the continued growth, vibrancy, and appeal of our city center. Thank you for your thoughtful consideration of this multi-year funding recommendation. 59 Memo To: Fayetteville Advertising & Promotion Commissioners From: Ryan Hauck, CEO Date: August 15, 2025 Re: Town Center Offices Information Our three-year lease agreement with 21 Mountain, LLC is coming to and end for the Town Center staff offices. Our current lease agreement includes a $1,725.50/mo payment with utilities included. The new agreement would go up to $3,320.25/mo with an additional payment of 7.2% of the building’s utilities for a 1 year deal, or $3,320.25/mo with utilities included for a 2 year deal. This new lease agreement would begin October 29. This office space is 2,097sqft, includes 6 offices, and has a kitchen. Decision The new lease agreement will increase our cost over $20,000, so we will need to decide on if we are going to stay or search for a new property for the Town Center staff to office out of. Currently, the increase is still $3-$5sqft less than the market average in the immediate area. Beyond cost, some other things to consider will be moving costs, and proximity to Town Center, Experience Fayetteville, and the downtown square. 60