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Home My WebLink About2002-07-15 - Agendas - Final MEETING NOTICE The Advertising and Promotion Commission will meet on Monday, July 15, 2002 at 2:00 p.m. at the Town Center Conference room. AGENDA ADVERTISING AND PROMOTION COMMISSION July 15, 2002 2:00 p.m. Town Center I. Call to Order II. Reports A. Approval of Minutes for June 10, 2002 B. Financial Report 1 . HMR Revenues 2. Financials - Tom Lonon, Scarbrough and Murtishaw 3. Update from City Attorney on Delinquent Tax Collection Efforts C. Convention and Visitor Activity — Marilyn Johnson 1 . Introduce Convention & Visitor Bureau manager Allyson Twiggs and Tourism Coordinator Phyllis Tucker • D. Town Center Activity Report — Denise Bembenek 1 . Introduce Town Center Sales Manager Keith Lee and Administrative Assistant Jamie Goddard E. Agency Report — Brian Clark, Sells/Clark, Inc. III. Old Business IV. New Business A. Approve contract with Chamber of Commerce V. Adjourn • GROUP: ADVERTISING & PROMOTION COMMISSION DATE: June 10, 2002. PRESENT: Bob Davis, Joe Fennel, Pat Gazzola, John Gilliam, Kevin Santos, Curtis Shipley, and Marilyn Johnson. ABSENT: None The regular meeting of the Advertising and Promotion Commission was called to order at the Fayetteville Town Center conference room at 2:00 p.m. by Chairman Joe Fennel. MINUTES Moved by Shipley, second by Santos to approve the minutes of the May 13 meeting. Motion carried. FINANCIAL REPORT Marilyn Johnson reviewed financials prepared by Tom Lonon from Scarbrough and Murtishaw for the Town Center and the A & P Commission for May. Shipley moved to approve financials for May, second by Gazzola. Motion carried. Marilyn Johnson reported that total collections for May were $ 115,353.53, a 16.93% increase. • New collections were $4,461 .51 . City attorney Kit Williams presented the report of the City Prosecutor's office regarding delinquent HMR collection action through his office. Collection efforts for the month between the two offices are $4,214.51 . CONVENTION AND VISITOR DEVELOPMENT REPORT Marilyn Johnson reviewed Convention Development report. Conventions and meetings included Ozark Charity Horse Show, upcoming Coach's Clinic and All-Star Festival. Three bus tour groups visited Fayetteville. America in Bloom is expecting judges in town July 22-23. TOWN CENTER REPORT Denise Bembenek reported that 12 events had been held in the Town Center during May including WRMC general staff meeting and several proms. Contracted sales were in the amount of $24,773.47. She announced the development of an Autumnfest event called "Gear and Beer". AGENCY REPORT Brian Clark with Sells/Clark, Inc. addressed the January - May inquiries for the Commission. He presented a comparison of insertions versus last year. Consensus was that because of later insertion, inquiries are also running later from Family Circle and USA Weekend. Brian • introduced Michael Clark, who is manning the Fayetteville office. 2 • OLD BUSINESS Convention Visitor Bureau Marilyn Johnson presented recommendations endorsed by the Tourism Advisory Committee regarding the establishment of a Convention Visitor Bureau. Those recommendations are: 1 . Convention Visitor Bureau as an entity will be a direct report to A & P Commission through Director. 2. A CVB Manager and Tourism Coordinator should be hired by July 1 . Tourism Advisory Committee will review resumes and narrow applicants to three. Marilyn will hire. 3 . The CVB will office at the Chamber of Commerce for 6 months. A review will be held at that time. 4. Attached budget was recommended. 5. CVB Manager will establish tourism Advisory Committee. Their responsibilities will be developed in the first six months of operation of CVB. Moved by Shipley, second by Davis to accept the recommendations of the Advisory Committee including budget recommendations. Motion carried. NEW BUSINESS Letter of Appreciation • Fennel asked Marilyn to draft a letter of appreciation to attorneys who represented all parties in the Town Center lawsuit. Moved by Fennel to have all Commissioners sign the letter, second by Davis. Motion carried. Letter signed. OTHER BUSINESS Fennel emphasized the importance of Wal-Mart shareholders being in town to the Fayetteville economy. He also announced the upcoming All-Star event and Coach's Clinic, which was pulled from Conway and North Little Rock. Commissioners discussed the city's new glass recycling operation and its impact on restaurants and benefit to recycling. There being no further business, the meeting was adjourned. Respectfully submitted, Marilyn Johnson Director, Convention and Visitor Development • • Advertising and Promotion Commission For month of June 2002 HMR revenues collected $128,997.90 Interest revenue 41518. 18 Misc. revenue 0.00 Total Revenues $133,516.08 Collection expense -29579.96 CEC Bond Payment -$31 ,526.46 Town Center Bond Payment -30,952.71 Total Expenses -$659059. 13 Total Check to A&P $681456.95 • • City of Fayetteville, Arkansas Monthly HMR Tax Collections 2000-2002 • 2000 2001 2001 2002 2002 Total Total Change Over Total Change Over HMR Taxes HMR Taxes Prior Year HMR Taxes Prior Year January $ 100,334 $ 98,397 -1.93% $ 125,718 27.76% February 91,330 95,810 4.91% 113,207 18.16% March 102,971 104,748 1.73% 118,209 12.85% April 108,747 107,624 -1.03% 126,006 17.07% May 107,975 103,545 -4.10% 115,354 11.40% June 107,963 106,217 -1.62% 128,998 21.48% July 103,894 109,223 5.13% August 105,417 112,743 6.95% September 104,980 115,765 10.27% October 105,820 115,771 9.40% November 117,106 120,282 2.71% December 97,771 125,971 * 28.84% • Total $ 1,254,310 $ 1,316,096 4.93% $ 727,493 18.03% Expanded tax $6,321.79 • * Additional collections from caterers, concession stands, take-out locations, etc. for this month: $9,952.26 \filename s • ACTIVITY REPORT June, 2002 INQUIRY RESPONSES Tourist Inquiries June 2002 — 178 Year to date 2002 — 908 June 2001 — 61 Year to date 2001 — 1057 Advertising Responses June 2002 — 2785 Year to date 2002 — 13703 June 2001 — 2685 Year to date 2001 — 19765 Relocation Inquiries June 2002 — 66 Year to date 2002 — 448 June 2001 — 49 Year to date 2001 — 389 June Total Inquiries 2002 — 3029 2001 — 2795 Year to Date Total Inquiries 2002 — 15059 2001 — 21211 • ACTIVITY Conventions and Meetings — American Lung Association Clean Air Challenge Bike Tour Coaches Clinic — Jim Burgin Wal-Mart Shareholders First Night — Jim Mitchell, new director First Night — Zarin Earls reception All Star Festival and Coach's Clinic — All Star Banquet Brumley Gospel Sing — numerous meetings and phone calls Bikes, Blues, and BBQ SWACUR conference — Susan Barber B. E. S. T — Sarah Fatik Bus Tours — Cherokee Friends Travel Club Tourist Activities — America in Bloom meetings Debbie Vineyard — Shady Grove, OK — group tour Convention Visitor's Bureau — Convention and Visitors Bureau Partners Employee Interviews Relations with Other Tourism — NATA advertising committee 6 • NATA meeting Impressions Luncheon @ Clarion DDEP marketing committee Bentonville & P Commission — Bernie Brugman Siloam Springs Chamber of Commerce — Katie Denise Holmes — Paws Connections, Barkitect Ball, Barkitect Family Fun Day Frank Sharp — Boston Mountains Scenic Loop Relations with Media — Arkansas NBC — Justin Early Papers — Wal-Mart shareholders Impact Parks and Tourism — Jill Rohrbach Randy Rainwater — Drive Time Sports Senior Friends magazine — Ann Marie Town Center Staff/Operations — Checklist for Year End Warranty — Nabholtz and Wittenberg, Delony and Davidson Sales Manager Interviews Administrative Assistant Interviews Miscellaneous — Business After Hours @ Radisson Construction & Developers Meeting Professional Development Workshop • Arkansas Alumni Association luncheon Rick Newberry — G. E. Card Services (relocation of 30-40 people) Jamie Bytheway — RFQ for Senior Center cabling Casey Penn — Cruse and Assoc. TOP HMR COLLECTIONS Clarion Radisson Jose's Red Lobster Ryan's Chartwell's Chili's Penguin Ed's Chic-fil-A — NW Village Powerhouse Catfish Hole Ozark Brewing Company McDonald's — Joyce St. • 7 CNAm6Eg Tourists Inquiry 2002 JAN I FEB I MAR IAPRI MAY JUN JUL AUG SEP OCTNOV IDEC TOTAL AL 1 1 1 AK • AZ 1 1 2 AR 11 4 5 7 9 2 38 CA 4 2 3 3 12 CO 1 1 CT 0 DE 1 1 DC 1 FL 1 1 21 1 1 1 6 GA 1 1 HI 0 ID 0 IL 1 1 2 IN 1 1 1 3 IA 1 3 4 KS 2 1 3 1 7 KY 1 1 2 LA 1 1 2 ME 0 MD 0 MA 0 MI 1 1 1 3 MN 1 2 3 MS 1 1 2 MO 2 4 11 3 1 1 12 MT • NE 2 1 3 NV 1 NH 1 1 NJ 0 NM 0 NY 1 1 1 3 NC 0 ND 0 OH 1 1 1 3 OK 3 4 3 1 4 3 18 OR 1 1 2 PA 1 1 2 PR RI 1 Sc 1 1 SD TN 1 1 TX 2 5 2 5 6 2 22 UT 1 1 VT VA 0 WA 1 1 WV WI 0 WY 0 • APO 1 CAN 1 1 FOR 2 2 TOTAL 37 30 20 732 33 15 0 01 01 7071707 �01 0 167 8 A & P TOURIST INQUIRIES 2002 JAN FEB MAR APR MAY JUN JUL AUG SEP OCTNOV DEC TOTAL AL 11 2 3 2 18 AK 1 1 • AZ 1 2 3 6 AR 5 24 19 11 9 68 CA 5 6 4 2 8 25 CO 1 2 1 3 7 CT 1 1 DE 0 DC 0 FL 3 21 4 8 51 22 GA 2 2 2 1 7 HI 1 1 ID 0 IL 4 4 12 8 13 12 53 IN 4 1 3 2 6 6 22 IA 1 3 12 2 8 5 31 KS 3 3 37 4 5 6 58 KY 1 1 2 LA 2 2 2 2 13 7 28 ME 1 1 2 MD 2 2 MA 1 1 MI 1 2 51 3 12 4 27 MN 1 6 10 4 3 51 29 MS 1 5 2 8 MO 2 4 26 8 6 14 60 MT 1 1 2 4 • NE 4 4 3 1 1 11 NV 2 2 NH 1 1 NJ 1 1 1 3 NM 2 2 NY 1 4 2 1 3 11 NC 3 2 3 1 9 ND 1 1 OH 2 6 4 8 3 23 OK 3 4 6 5 9 12 39 OR 1 1 21 1 1 6 PA 1 1 1 3 PR 1 1 RI 0 SC 1 3 2 1 7 SD 1 1 1 2 TN 1 2 1 1 4 7 16 TX 5 11 7 10 11 20 64 UT 1 1 2 VT 0 VA 1 1 2 WA 1 1 1 3 WV 1 1 2 WI 1 7 13 2 12 9 44 WY 1 1 • APO 0 CAN I 1 1 2 3 FOR 0 49 78 181 109 161 163 0 0 0 0 0 0 0 741 9 AAA 2 AARP 3 AR Tourism 6 11 • Brumley 7 15 e-mail 6 14 internet 1 2 NATA 51 1 Midwest Living 4 Newspaper Insert 82 5 Parade 12 Soliv 5 19 Rosie 2 4 USA 22 961 871 1 • • /O • Monthly Advertising Inquiries by State - 2002 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC TOTAL AL 18 16 14 19 29 46 142 AK 3 1 4 AZ 5 5 7 8 7 6 38 AR 35 41 610 136 196 120 1138 CA 22 15 28 65 53 28 211 CO 5 3 11 15 15 14 63 CT 3 1 6 9 6 3 28 DE 4 2 1 7 DC 1 1 2 4 FL 26 29 25 41 46 181 348 GA 21 18 19 15 40 63 176 HI 2 3 2 1 8 ID 1 2 3 1 7 IL 46 37 299 376 463 300 1521 IN 24 15 77 194 209 168 687 IA 24 17 119 166 100 69 495 KS 13 10 158 155 67 77 480 KY 13 13 25 24 38 54 167 LA 27 33 105 29 67 86 347 ME 2 1 2 2 7 MD 6 7 3 7 12 16 51 MA 3 1 4 7 5 4 24 MI 22 16 73 450 165 211 937 MN 18 14 77 268 95 115 587 MS 22 23 38 22 25 63 193 MO 32 30 622 530 142 109 1465 • MT 1 1 1 1 4 NE 9 2 35 31 54 41 172 NV 2 2 2 7 1 2 16 NH 1 4 5 8 18 NJ 5 2 3 26 20 8 64 NM 3 6 2 3 4 18 NY 10 7 14 45 30 14 120 NC 14 11 22 25 26 60 158 ND 2 2 5 2 9 8 28 OH 15 14 55 253 216 202 755 OK 32 33 254 71 138 101 629 OR 3 6 4 7 5 25 PA 15 7 11 30 29 22 114 RI 2 1 1 4 Sc 7 15 11 1 13 43 90 SD 6 1 8 8 16 20 59 TN 26 21 96 11 56 71 281 TX 79 56 385 46 181 218 965 UT 2 124 3 2 131 VT 8 1 9 VA 15 14 6 2 23 20 80 WA 1 5 5 15 7 5 38 WV 5 1 1 12 3 4 26 WI 17 17 97 11 202 169 513 WY 3 196 4 2 205 APO 1 1 1 3 CAN 8 4 3 15 FOR 2 1 2 3 6 14 28 • TOTAL 657 563 3355 3497 2846 2785 0 0 0 0 0 0 0 13703 11 • Advertising Inquiries Pubs by State - June 2002 AY FC ML MVG NATA MC/Rosie OkT SL SNI MN Paradr USA VG TOTAL AL 1 3 18 24 46 AK 0 AZ 4 1 1 6 AR 11 16 5 24 23 41 120 CA 1 8 5 11 1 2 28 CO 6 6 1 1 14 CT 1 2 3 DE 1 1 DC 2 2 FL 1 3 7 27 143 181 GA 1 17 45 63 HI 1 1 ID 1 1 IL 48 12 2 4 1 233 300 IN 24 3 1 7 133 168 IA 19 2 48 69 KS 11 2 . 3 5 56 77 KY 12 3 5 34 54 LA 1 7 3 22 7 46 86 ME 0 MD 2 1 11 2 16 MA 1 3 4 MI 41 6 3 4 157 211 MN 19 3 2 2 89 115 MS 2 24 1 36 63 • MO 30 8 5 14 8 44 109 MT 0 NE 9 2 1 2 27 41 NV 1 1 2 NH 2 1 2 3 8 NJ 1 2 3 2 8 NM 1 1 1 1 4 NY 2 1 7 2 2 14 NC 1 9 50 60 ND 2 6 8 OH 32 6 1 4 159 202 OK 1 8 2 18 28 44 101 OR 5 5 PA 4 2 10 2 4 22 RI 0 Sc 1 2 10 30 43 SD 3 1 16 20 TN 6 3 3 16 4 39 71 TX 2 28 4 65 45 74 218 UT 2 2 VT 1 1 VA 2 1 15 2 20 WA 2 2 1 5 WV 1 1 2 4 WI 29 6 2 3 129 169 WY 2 2 APO 0 CAN 1 2 3 FOR 1 13 14 TOTAL 0 0 320 0 155 87 0 366 134 0 0 1723 0 2785 12 • ADVERTISING INQUIRIES - 2002 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL Tourist AY 98 98 BT 0 FC 1 1 1 3 H&A 0 ML 147 116 706 865 853 320 3007 MT 0 MVG 1623 1623 NATA 119 128 202 195 170 155 969 OK 35 35 Parade 781 781 MC/Rosie 88 451 298 87 924 SL 390 318 184 141 398 366 1797 SNI 1983 222 213 134 2552 ST 0 TA 0 TM 191 191 USA 1723 1723 MN 0 TOTAL 657 563 3355 3497 2846 2785 0 0 0 0 0 0 13703 • 13703 AY - Active Years BT - Budget Travel FC - Family Circle H & A - Home and Away MC - McCalls ML - Midwest Living NM - Meeting News MT - Midwest Traveler MVG - Midwest Vacation Guide NATA - NATA Tour Guide OK - Oklahoma Today Parade - Parade SL - Southern Living SNI - State Newspaper Insert ST - Southern Traveler TA - Travel America TM - Texas Monthly TM G-Travel Marketing Group USA - USA Today VG - Vacation Guide • 13 A & P RELOCATION 2001 JAN FEB MAR APR MAY JUN JUL AUG SEPIOCIINOVIDEC TOTAL AL 1 1 2 • AK 0 AZ 1 1 AR 1 1 2 2 3 9 CA 4 2 1 3 10 CO 1 1 2 4 CT 1 0 DE 0 DC 1 0 FL 1 1 2 GA 0 HI 0 ID 0 IL 3 1 2 1 7 IN 0 IA 1 1 KS 1 1 1 3 KY 0 LA 1 1 ME 0 MD 0 MA 1 1 MI 2 1 3 MN 1 1 2 2 1 1 6 MS 1 1 2 MO 1 1 1 1 4 • MT 0 NE 1 1 NV 2 1 3 NH 0 NJ 0 NM 0 NY 1 1 2 NC 1 1 ND 1 1 OH 0 OK 1 1 1 3 OR 0 PA 1 1 PR 0 RI 0 SC 2 2 SD 0 TN 1 1 1 3 TX 2 1 2 2 1 8 UT 1 1 VT 0 VA 0 WA 1 1 WV 0 WI 3 1 1 2 1 8 • WY 1 1 APO 0 CAN 1 1 FOR 0 93 TOTAL 13 151 111 18 15 -210+0 0 01 OL 01 93 1y 0AWn88R Relocation Inquiry 2002 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL • AL 1 1 2 AK 0 AR 14 11 10 12 17 14 78 AZ 1 1 1 1 1 5 CA 1 5 5 5 1 17 CO 2 3 2 1 8 CT 1 1 2 DC 0 DE 0 FL 4 1 2 2 3 2 14 GA 2 1 1 3 7 HI 1 1 ID 1 1 IL 2 1 2 1 3 2 11 IN 1 1 2 4 IA 2 2 4 KS 1 1 1 1 1 5 KY 2 1 1 4 LA 1 2 2 2 7 ME 1 1 2 MD 1 1 2 MA 1 2 3 MI 1 1 1 1 4 MN 1 3 1 2 2 9 MS 2 2 2 2 8 • MO 7 2 6 5 4 1 25 MT 1 1 NE 1 2 1 2 6 NV 1 1 2 NH 2 2 NJ 0 NM 1 1 3 5 NY 2 1 1 4 NC 4 1 5 ND 0 OH 1 3 4 OK 4 2 4 2 4 2 18 OR 2 2 PA 1 1 2 RI 0 SC 1 1 2 SD 1 1 2 TN 4 3 2 9 TX 10 5 6 7 6 8 42 UT 1 1 2 1 1 6 VT 0 VA 2 2 WA 0 WV 0 WI 2 1 3 2 1 9 WY 1 1 APO 1 1 CAN 0 FOR 1 1 Total 77 55 53 61 58 45 349 /5 • rro FAYETTEVILLE TOWN CENTER ACTIVITY REPORT — June 1 , 2002 to June 30, 2002 Previous Month Current Month YTD Number of Contracts from 1 /1 /02 17 8 90 Number of Completed Events from 1 /1/02 12 16 46 Contracted Charges from 1/1 /02 $24,773.47 $12, 194.20 $1529921 .51 Collections Non;-taxable $15,781 .04 51858.0 $74v439,7 Collections - Taxable $75.00 0.0 $19995.00 Collections - Taxes $6.09 0 $160.05 Credits $245.00 $615.00 $862.59 Average Income per event (charges/contracts $19457.26 1524.27 $1 ,699,11 Proposals sent 22 18 136 Contracts sent 201 1 q 64 General Activity • Marketing/PR — work partnership with Arsaga's (Crossover) to display monthly Art Exhibition of local artists lee Marketing/PR — Autumnfest — review initial plans for Beer Garden • Marketing/PR — Autumnfest event. Revisit feasibility of "Gear and Beer" show. Due to similar show in Springdale in August, internal changes and diminishing time for organization and marketing, we have decided to postpone event until Spring 2003. • Marketing/PR — Working contract with Junior Cotillion for on-going events/publicity. • Marketing/PR — CUMULUS/Clear Channel. Potential Media sponsor for FTC hosted events. • Sales — F/U on outstanding proposals and contracts • Sales — cold calls • Sales — primary sales contract during Niki's transition out. • Operations — Final facility walk-thru with Richard Alderman, Nabholz, City of Fayetteville Rocky and Marilyn • Operations — Exit interview, Niki Avery • Operations — Review efficiency of organizational structure, proposed changes • Operations - Review Resumes for FTC Sales Manager • Operations — Interview for p/t event manager • Operations — Keith Lee • Operations — Mountain Mechanical — warranty issues with AC. • Operations — UARK Bowl, Kelly Crenshaw "shadovV' a typical event process at FTC • Operations — Aaflac, Edward Jones, Campbell Electric, Superior Linen, Nabholz Construction, Scarborough & Murtishaw, Ozark Floor, Amano Systems, National Elevator Inspection Services, Richard Alderman, AAA Business Systems, SWBYP's, Wesche, Calvert-McBride • Operations - Payroll, monthly reports, management schedules, weekly staff meetings, collections, • employee benefits, process contracts, invoicing/AP • Event Planning/Management — Wal-mart Shareholders, Speaking of Women's Health • Event Planning/Management — Ozark Cooperative Warehouse • Event Planning/Management — Procter and Gamble /0 • Event Planning/Management - Waldron Reception • Event Planning/Management - UBC Wells Fund Raiser •• Miscellaneous - CVB Advisory Board Meeting, Business After Hours Events • Schwerdtfeger Reception • Walmart Shareholders/Speaking of Women's Health • Ozark Cooperative Warehouse • Sanchez Reception • Procter and Gamble Business Meeting • United Way Kick-off Cook-off planning meeting • Procter and Gamble Business Meeting • Carrell Reception • AHSCA — All Star Banquet AHSCA — Coaches BBQ and Reception • NWA Family Practice Meeting • Snipe International Sales Meeting • Taylor-Woody Reception • Health Partners Meeting • Procter and Gamble Business Meeting • Mexican Wells Fund Raiser • Walden Wedding • /7 • LEASE AGREEMENT THIS LEASE AGREEMENT, (hereinafter referred to as "Lease Agreement") is made and entered into by and between the FAYETTEVILLE CHANIBER OF COMMERCE (hereinafter referred to as "Lessor') and the FAYETTEVILLE ADVERTISNG AND PROMOTION COMMISSION (hereinafter referred to as "Lessee") for office space to be used by the Convention and Visitors Bureau (hereinafter referred to as "CVB.") W-1-T-N-E-S-S-E-T-H WHEREAS, Lessor is the owner of certain office space which is described herein; and WHEREAS, Lessor desires to lease a portion of such office space to Lessee, subject to the provisions of this Lease Agreement; and WHEREAS, Lessee desires to lease said portion of office space at the location owned by Lessor, subject to the provisions of this Lease Agreement. NOW, THEREFORE, in consideration of the foregoing premises, the mutual and independent promises made by the parties, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 1 . Lease. Subject to the provisions of this Lease Agreement, Lessor hereby leases the Premises to Lessee for the Term in exchange for the Rental paid by Lessee. 2 Premises. The "Premises" shall consist of building that houses a two hundred fifty- six (256) square foot space specifically identified on the attached Exhibit 1 as Space A (`Space A") and a one hundred sixty ( 160) square foot space specifically identified on the attached Exhibit 1 as Space B (`Space B") (collectively, the '`Office Space") located at 123 West Mountain Street, in Fayetteville. Washington County. Arkansas. The Premises also includes two (2) on-site parking spaces which are contiguous to the building in which the Office Space is located. 3 . Term . The "Initial Term" of this Lease Agreement shall consist of a period of six (6) months beginning on July 15, 2002, and ending, unless earlier terminated or renewed, on December 31 , 2002. If Lessee shall have fully performed its obligations under this Lease Agreement during the Initial Term, then Lessee shall have the option to extend this Lease Agreement for an additional twelve ( 12) months for a second term (the "Optional Term"). The Optional Term shall be upon the same terms and conditions as the Primary Term, unless otherwise provided herein. If Lessee desires ' to exercise the Optional Term, Lessee shall deliver written notice of such exercise to Lessor within sixty (60) days prior to the expiration of the Initial Term. If Lessee fails to timely deliver notice of its exercise of the Optional Term. Lessee, at the option of Lessor, may be deemed to have elected not to exercise its option, and this Lease Agreement shall terminate at the expiration of the Initial Term. The Initial Term and the Optional Term are hereinafter referred to as the "Term." 4 . Rental . Lessee shall pay to the Lessor on the first ( I ") day of each and every calendar month of the term and the second term "Rental' in the following amounts: ( 1 ) Three Hundred Dollars ($300.00) for Space A and (2) Two Hundred Dollars ($200.00) for Space B (Collectively, the "Rental .") The Rental shall commence on and for the month of July, 2002. Upon execution of the Lease Agreement, Lessee shall pay the Rental for July, 2002. The Rental shall be paid in advance without deduction, offset. or abatement. The Rental shall be prorated for any month in which this Lease Agreement commences or expires on a day other than the first or last day of the • month. Moore, John 0.V'1'V ASPJease.3 Page 1 of 6 � a . 5. Included Privileges. Also included in consideration for the Rental paid by Lessee, Lessee shall be entitled to certain rights and privileges in connection with the lease of the Office Space, specifically including the following: (a) Use of the large conference room and the small conference room on the premises, as needed and if available, for purposes specifically relating to the business of the CVB. (b) Payment by Lessor of all utility expenses incurred during use of the Office Space, except telephone installation and monthly telephone line charges, payment of which shall be the sole responsibility of Lessee. Lessee shall take all steps to ensure telephone charges incurred by the CVB are billed separately from telephone charges incurred by Lessor. (c) Use of two (2) parking spaces contiguous to the Premises. (d) Use of the telefacsimile machine for purposes specifically relating to the business of the CVB. (e) Use of the kitchen and restroom. (f) Use of any available furniture owned by Lessor. Lessee agrees that any and all additional furniture used in the office space will be provided at the expense of Lessee. (g) Use of copy machines owned by Lessor for purposes specifically relating to the business of the CVB . Lessee agrees, however, that it shall bear the cost of such use. A • schedule for reimbursement of cost to Lessor (as yet to be determined) shall be based upon paper cost and deprecation cost of the copy machines. (h) Space for a exterior advertising sign shall be provided by the Lessor. Lessee acknowledges the sign must comply with all relevant city ordinances and codes. The cost of manufacture and installation of the sign shall be paid entirely by Lessee. 6. Utilities. Lessor shall be responsible for all utilities charges incurred by Lessee except telephone charges, which will be paid by Lessee. The interruption or discontinuance of any utility services shall not render Lessor liable, in any way, nor shall it be construed by Lessee as an eviction, an abatement of the obligation to pay Rental, or an abatement of any other obligation undertaken by Lessee under the provisions of this Lease Agreement. If any of the equipment or machinery used in providing utilities to the Premises malfunctions, and such malfunction is not due to the negligence of Lessor, Lessee shall have no cause of action or any claim for offset or abatement of Rental, or for any damages resulting from such malfunction. 7. Insurance. Upon the request of Lessor, Lessee, at its sole expense, shall procure and maintain at all times during the Term a policy or policies of comprehensive public liability naming both Lessor and Lessee as insureds and which will indemnify Lessor and Lessee against liability for loss, damage, or injury to property or person, in amount satisfactory to Lessor. 8 . Default. Any or all of the following shall constitute an event of default ("Event of Default") pursuant to the provisions of this Lease Agreement: (a) Lessee's failure for any reason whatsoever to comply with the provisions of this Lease Agreement or to promptly discharge any and all of its obligations under this Lease • Moore. John 0.\FYV_ABP.1ease.3 Page 2 of 6 /9 • Agreement including without limitation Lessee's failure to pay the Rental or any other sum herein required to be paid by Lessee or failure to provide proof of payment of same; (b) The issuance of process for execution upon or the attachment of Lessee's property on, or interest in. the Premises. 9. Remedies in the Event of Default. In the event of a default by Lessee, during the term hereof, Lessor may, at Lessor' s option, declare this lease thereupon terminated, and Lessor shall have the right to enter upon and take possession of the leased premises, either with or without notice, and to evict and expel Lessee and any or all of Lessee's property, belongings, and effects therefrom, without legal process and without thereby being guilty of any manner of trespass either at law or in equity which remedy is in addition to any other remedies of Lessor either at law or in equity, including, without limitation, the collection of delinquent rents, possession of the leased premises, damages for breach of this agreement by Lessee, or otherwise. No delay in or failure to exercise any of the options herein granted to Lessor by reason of a default shall be a waiver thereof, and the waiver on one occasion of a default shall not be deemed a waiver of Lessor' s right to exercise its remedies by reason of the same or a similar default at any later occasion. 10. Surrender of Premises. At the termination of this Lease Agreement or the expiration of any Term, whichever shall first occur, Lessee agrees to surrender to Lessor the Premises in good, sanitary, safe, and operable condition, ordinary wear and tear excepted and any casualty occurring through no fault of Lessee. If Lessee should hold over past the termination date of this Lease Agreement, Lessee in the absence of any written agreement to the contrary, shall be considered a month to month tenant and shall pay Rental equal to the amount of the Rental paid during the month immediately preceding the termination of this Lease Agreement. This Rental shall be payable each • month of the hold-over term for as long as the hold-over shall continue. 11 . Termi nation by Lessee. At anytime during the Tenn of this Lease Agreement, Lessee may terminate this Lease Agreement by giving Lessor notice within thirty (30) days before Lessee shall vacate the premises. Termination of this Lease Agreement by Lessee shall terminate all of Lessee's obligations hereunder. 12. General Provisions. 12. 1 . Modification. No provision contained in this Lease Agreement may be modified or amended except by written agreement signed by the party to be bound thereby. 12 .2 . Binding Effect and Benefit. This Lease Agreement shall be binding on and inure to the benefit of the heirs, executors, administrators, personal representatives, and successors of the parties hereto. 12 .3 . Notice. All notices, requests, demands, and other communications permitted or required herein shall be in NNTiting, and either ( 1 ) delivered in person; (2) sent by express mail or other overnight delivery service providing receipt of delivery; or (3 ) mailed by certified or registered mail, postage prepaid, return receipt requested, restricted delivery to the relevant party. Any such notice or communication, if given or made by certified mail or recorded express deliven . shall be deemed to have been made when actually received, but not later than three (3 ) business days after the same was posted or given to such express delivery service. All such notices, unless otherwise designated in writing, shall be sent to the following Persons: • Moore, John O.\FYV ASP3case.3 Paoe 3 of 6 C21) • If to Lessor: Fayetteville Chamber of Commerce 123 West Mountain Fayetteville, AR 72701 with a copy to: Rayburn W. Green John O. Moore, Jr. BALL & MOURTON, LTD. P. O. Box 1948 Fayetteville, AR 72702- 1948 If to Lessee: Fayetteville Advertising and Promotion Bureau 15 West Mountain P. O. Box 4157 Fayetteville, AR 72702-4157 with a copy to : Joe Fennel 324 West Dickson • Fayetteville, AR 72701 12.4. Waiver. Either party to this Lease Agreement may, by written notice to the other party: (a) extend the time for the performance of any of the covenants of the other party; (b) waive any inaccuracies in this Lease Agreement caused by the other party; or (c) waive compliance with any of the covenants of the other party in this Lease Agreement. No waiver of a breach or violation of any provision of this Lease Agreement shall operate or be construed as a waiver of any subsequent breach or limit or restrict any right or remedy otherwise available. Any waiver of any provision shall be in writing and signed by the party to be bound thereby. 12.5 . Rights and Remedies Cumulative. The rights and remedies expressed in this Lease Agreement are cumulative and not exclusive of any rights and remedies otherwise available. 12 .6. Governine Law: Forum: Agent. Asa specific inducement to the parties to enter into this Lease Agreement, the parties agree that this Lease Agreement shall be subject to and governed by the laws of the State of Arkansas. Any litigation shall be heard in the courts of Washington County, Arkansas. 12.7. Entire Agreement. This Lease Agreement contains the entire agreement of all parties and no other oral or written agreements shall be binding upon the parties hereto. The parties acknowledge that they have neither been influenced to enter into this transaction by any party, nor relied on any representation of any party except for those representations set forth in this Lease Agreement. This Lease Agreement supersedes all prior agreements, contracts, and understandings of any kind, either oral or written. • [Signatures on following page.] Moore, John OAFYV_A&P.Icase.3 Page 4 of 6 OV • EXECUTED AND DELIVERED this _ day of July, 2002. LESSOR: FAYETTEVILLE CHAMBER OF COMMERCE By: --4= John W. Ramsey, President LESSEE: FAYETTEVILLE ADVERTISING AND PROMOTIONS COMMISSION S. By: _ H' Joe Fennel, Chairman • • Moore. John OAFYV_A&P.Imc.3 Pate 5 of 6 • ACKNOWLEDGMENT STATE OF ARKANSAS COUNTY OF WASHINGTON BE IT REMEMBERED, That on this day came before the undersigned, a NotaryPublic, duly qualified and acting, within and for the County aforesaid, John W. Ramsey, to me personally well known, who stated that he was the President of the Fayetteville Chamber of Commerce, and was duly authorized in such capacity to execute the foregoing instrument, and further stated that he had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. IN WITNESS WHEREOF, I have hereunto set my hand and official seal as such Notary Public this day of 2002. Notari Notary Public My Commission Expires: • ACKNOWLEDGMENT STATE OF ARKANSAS COUNTY OF WASHINGTON BE IT REMEMBERED, That on this day came before the undersigned, a Notary Public, duly qualified and acting, within and for the County aforesaid, Joe Fennell, to me personally well known, who stated that he was the of the Fayetteville Advertising and Promotions Committee, and was duly authorized in such capacity to execute the foregoing instrument, and further stated that he had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. IN WITNESS WHEREOF, I have hereunto set my hand and official seal as such Notary Public this day of 2002. t NOUN; Notary Public My Commission Expires: • Moore, John 0A —ABP.lease.3 Pagc 6 of 6 a3 SCARBROUGH • MURTTSHAW, CERTIFIED PUBLIC ACCOUNIANIB, P.A. 2039 Green Acres Rd., Fayetteville, AR 72703-2619 • Telephone (479) 521.1771 - Fax (479) 4420082 - Home Page: SMCPAS.com Wesley D. Murtishaw, CPA Tommy L Lonon, CPA Fayetteville Advertising & Promotion Fayetteville Town Center Fayetteville, Arkansas We have compiled the accompanying balance sheet and income statements of the Fayetteville Advertising and Promotion Commission and the Fayetteville Town Center as of June 30, 2002 and for the six months then ended in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. • Management has elected to omit substantially all of the disclosures and the statements of retained earnings and cash flows ordinarily included in financial statements. If the omitted disclosures and the statements of retained earnings and cash flows were included in the financial statements, they might influence the user's conclusions about the entity's assets, liabilities, equity, income, and expenses. Accordingly, these financial statements are not designed for those who are not informed about such matters. Scarbrougro. & Murti haw Scarbrough & Murtishaw, CPAs, P.A. Certified Public Accountants Fayetteville, Arkansas July 5, 2002 • Members: American Institute of CPAs Private Companies Practice Section Arkansas Society of CPAs Fayetteville A P commission and Town Center Balance Sheet • As of June 30, 2002 ASSETS Current Assets Cash in Bank of Fayetteville - Town Center $ 54,797.89 Cash in Mcllroy Bank - A & P General 197,752.42 Cash in Mcllroy Bank - A & P Payroll 31396.68 Investments 1 ,407,048.42 Investment Adjustment to Market 51682.44 Accrued Interest Receivable 10,049.45 Due from City 21588.01 Total Current Assets $ 11681 ,315.31 Property, Plant, & Equipment at Cost Furniture and Fixtures 152,637.55 Building Additions 189,002.04 Equipment 168,229.69 • Less: Accumulated Depreciation (38, 128.73) Net Property and Equipment 471 ,740.55 Total Assets $ 2,153,055.86 LIABILITIES AND CAPITAL Current Liabilities Payroll Taxes Payable $ 285.96 Due to Other Funds 77,231 ,78 Total Current Liabilities $ 77,517.74 Capital Unrestricted Fund Balance 11915,016.44 Current Year Earnings 1609521 .68 Total Capital 21075,538.12 Total Liabilities and Capital $ 21153,055.86 • See Accountants' Compilation Report. Fayetteville A P Commission Income Statement • Actual vs. Budget 1 Month Ended 1 Month Ended 6 Months Ended 6 Months Ended June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 Actual Budget Actual Budget Revenue HMR Tax Revenue $ 115,353.53 $ 106,217.00 $ 888,290.39 $ 646,249.33 Bus Tours - 1 ,128.50 Other Income 270.45 270.45 Total Revenue 115,623.98 1061217.00 8890689.34 646,249.33 Materials and Supplies Materials and Supplies - 11084.88 Office Supplies/Printing 905.66 Total Materials and Supplies 11990.54 General Expenses (See Schedule) 60,075.88 86,973.00 316,504.62 322,300.00 �apital Outlay Minor Equipment 11117.95 Other Income (Expense) Interest Income - Investments 51720.39 27,270.37 Bond Payments - Arts Center - (71084.00) - (42,504.00) Bond Payments - Town Center (31 ,952.71 ) (30,953.00) (186,716.26) (185,718.00) Bond Payments - CEC (33,026.46) (2,500.00) ( 190,658.76) (15,000.00) Total Other Income (Expense) (59,258.78) (40,537.00) (3500104.65) (243,222.00) Net Income (Loss) $ (31710.68) $ (211293.00) $ 2191971 .58 $ 80,727.33 • See Accountants' Compilation Report. Fayetteville A P Commission Schedule of General Expenses • Actual vs. Budget 1 Month Ended 1 Month Ended 6 Months Ended 6 Months Ended June 30, 2002 June 30, 200 June 30, 2002 June 30, 2002 Actual Budget Actual Budget - - -General Expenses Salaries & Wages $ 4,420.42 $ 61375.00 $ 26,618.76 $ 38,250 .00 Car Allowance 300.00 333.00 11800.00 11998 .00 Bus Tours 714.60 - Payroll Tax Expense 336.80 - 21339.36 - Publications & Dues 200.00 625.00 400.00 Postage 21461 .07 1 ,250.00 5,949.22 71500.00 Audit Expense - - - 150.00 Insurance 21837.32 753.00 51708.71 753.00 Professional Services 11000.00 11000.00 51595.00 6,000.00 Legal Services 80.00 - Collection Expense 2,307.07 21171 .00 14,489.31 109303.00 Convention Development 833.00 4, 194.93 49165.00 Miscellaneous Expense - 180.00 - Repairs and Maintenance 21493.58 - 401 (k) Company Match 132.62 727.47 - New Brochures 11 ,211 .82 12,500.00 34,480. 15 25,000 .00 Chamber of Commerce (862.40) • Travel and Training 11000.00 1 ,081 .94 2 ,500.00 Tourism Development 19109. 13 833.00 Depreciation Expense 21672.27 - 16,033.55 - Air Museum - 21000.00 14,500.00 14,500.00 Bikes, Blues, BBQ 10,000.00 10,000.00 Botanical Garden Society - 5,515.08 10,000.00 Town Center Garden Maintenance 11458.00 8,748 .00 Committee for Mardi Gras 767.08 1 ,000.00 NCAA Indoor Track & Field/SEC 51000.00 51000.00 Walton Arts Center 300.00 600.00 600 .00 North Arkansas Symphony - 31000.00 3,000.00 Conference Expenses - Bootsie Ackerman 767.39 1 ,200.00 Northwest Arkansas B.E.S.T. 750.00 H. S. Coaches Clinic 15,000.00 Saturday of Champions 21800.00 31000.00 21800 .00 State Soccer Championship 11000 .00 Holiday Hoops 89000.00 81000.00 Joe Martin Stage Race 17000.00 11000.00 11000.00 11000.00 University of Arkansas Museum 20,000.00 209000.00 200000.00 20,000.00 MidAmerica Youth Basketball Tournament 11000.00 11000.00 - Advertising and Marketing 91196.49 25,000.00 108,613.91 135,200.00 Airport Information Booth 1 ,200.00 - 3,632 .85 2,400.00 • Total General Expenses $ 60,075.88 $ 86,973.00 $ 316,504.62 $ 322,300.00 See Accountants' Compilation Report. Fayetteville Town Center Income Statement • Actual vs. Budget 1 Month Ended 1 Month Ended 6 Months Ended 6 Months Ended June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 Actual Budget Actual Budget Sales Rental Income $ 20,022.50 $ $ 105,482.49 $ 64,261 .18 Parking Revenue - 11506.00 6,000.00 Service Charge - - 12,852.00 Daily Parking 644.00 644.00 Parking Leases 14,487.40 Pay Phone Rebates 2.13 Other Income 79.88 79.88 Refunds (245.00) Sales Tax Expense (6.00) (155.00) - Total Sales 20,740.38 1219801 .90 83,113. 18 • General Expenses Expenses (See Schedule) 23,640.20 40,267.00 179,073.35 223,271 .00 Capital Outlay Minor Equipment 21689.93 - Other Income (Expense) Interest Income - Checking 59.39 511 .48 Total Other Income (Exp 59.39 511 .48 Net Income (Loss) $ (29840.43) $ (40,267.00) $ (59,449.90) $ (140, 157.82) • See Accountants' Compilation Report. Fayetteville A P Commission Town Center • Schedule of General Expenses Actual vs. Budget 1 Month Ended 1 Month Ended 6 Months Ended 6 Months Ended June 30, 2002 June 30, 2002 June 30, 2002 June 30, 2002 Actual Budget Actual Budget General Expenses Salaries & Wages $ 11 ,778.68 $ 16,916.00 $ 73,207.09 $ 84,580.00 Commissions 11836.80 81381 .50 Payroll Tax Expense 11034.36 7,752.12 - Credit Card Discounts 71 .03 308.69 - Public Notification 9.62 9.62 - Office Expense - 430.75 - Publications & Dues 125.00 Postage - 50.00 Audit Expense 118.20 - 232.80 Water 250.00 1 ,287.67 1 ,350.00 Gardens Water 40.00 48.23 150.00 Gas 65.80 50.00 41972.84 3,600.00 • Electricity 4t374.85 41000.00 24,990.79 23,500 00 Cable 102.83 Telephone 600.00 31241 .46 31600.00 Long Distance Telephone 75.00 325.19 450.00 Insurance 130.50 - 10,172.79 Taxes and Licenses - 11000.00 - Contract Services 71815.00 75.00 46,890.00 Linens 11500.00 31565.95 9,000.00 Skirting - 500.00 31000.00 Plants 205.00 205.00 11332.50 205.00 Other - - 559.34 Repairs and Maintenance 347.79 41166.00 51466.74 21 ,996.00 401 (k) Company Match 362.58 1 ,994.19 Special Projects 13,638.93 - Advertising and Marketing - 11750.00 3,855.94 10,500.00 Depreciation Expense 21672.27 11 ,703.82 - Materials and Supplies 632.72 2,400.00 291 .57 14,400.00 Total General Expenses $ 23,640.20 $ 40,267.00 $ 179,073.35 $ 223,271 .00 • See Accountants' Compilation Report. Fayetteville A P Commission Income Statement Actual vs. Budget • 6 Months Ended 6 Months Ended June 30, 2002 June 30, 2002 Variance Percent Actual Budget Over (Under) Variance Revenue HMR Tax Revenue $ 888,290.39 $ 646,249.33 242,041 .06 37.45% Bus Tours 11128.50 1 ,128.50 99.99% Other Income 270.45 270.45 99.99% Total Revenue 889,689.34 646,249.33 243,440.01 37.67% Materials and Supplies Materials and Supplies 1 ,084.88 1 ,084.88 99.99% Office Supplies/Printing 905.66 905.66 99.99% Total Materials and Supplies 1 ,990.54 11990.54 99.99% General Expenses (See Schedule) 316,504.62 322,300.00 (51795.38) -1 .80% �apital Outlay Minor Equipment 11117.95 11117.95 99.99% Other Income (Expense) Interest Income - Investments 27,270.37 27,270.37 99.99% Bond Payments - Arts Center (42,504.00) 42,504.00 99.99% Bond Payments - Town Center (186,716.26) (185,718.00) (998.26) -0.54% Bond Payments - CEC (190,658.76) (150000.00) (175,658.76) -1171 .06% Total Other Income (Expense) (350, 104.65) (243,222.00) (106,882.65) 43.94% Net Income (Loss) $ 219,971 .58 $ 80,727.33 $ 139,244.25 172.49% • See Accountants' Compilation Report.