HomeMy WebLinkAbout2021-08-23 - MinutesFayetteville Advertising and Promotion Commission
Minutes from August 23, 2021
Virtual Meeting via Zoom
Commissioners Katherine Kinney, Chair, Andrew Prysby, Matthew Petty, Elvis Moya
Present: Todd Martin, Sarah Bunch
Commissioners Chrissy Sanderson
Absent:
Staff: Molly Rawn, Chief Executive Officer; Jennifer Walker, Vice President of Finance;
and Hazel Hernandez, Vice President of Marketing and Communications
I. Chair Kinney called the meeting to order at 2:02 p.m.
II. Old Business
a. Commissioner Bunch motioned to approve the July 2021 minutes with Commissioner Moya
seconding. The minutes were unanimously approved.
III. New Business
a. CEO Report, Molly Rawn
Our total HMR growth over 2020 is 29%, and in comparing it to 2019, we are up by 2.6%.
Restaurant sales are up 12% from same time period in 2019 but lodging collections are still
down over 8% from 2019. The occupancy rate for July is 61% with an ADR up 26% from last
July.
Total AirBnB collections from January to July 2021 is more than $35,000, more than doubled
from 2019. This represents solely AirBnB, not all short-term rentals.
The Visitors Center is up in attendance and we have mask signage up with our team in
masks.
The Fayetteville Town Center has begun the repair on the tower roof, with Harness Roofing
working on the exterior portion of the repair. Additionally, the RTU 3 HVAC unit is now
being installed. We've had a couple of events cancel or postpone due to the increase in the
Delta variant. We are requiring masks for our team at the town center and requiring that
guests wear masks for indoor events.
Experience Fayetteville Sales — we have had 2 fall conferences, both first time bookings for
us, postpone to the spring. We continue to grow partnerships with sports organizations,
with a new partnership with Fayetteville Disc Association and Ozark Volleyball Club. Rawn
noted that she received communication today that youth baseball brought in more than
1,700 hotel nights in Fayetteville this summer.
With Cycling, Rawn reported that the Kessler Mountain Jam happened the weekend of
August 15t" with 150 participants. Joe Martin Stage Race returns this week with the
Experience Fayetteville Criteria to be held this Sunday the 29t". We will have the Visitors
Center open, let us know if you'd like to join us and watch them ride by.
Planning for our cyclo-cross events is in full swing with the Medalist team in town and
meetings with 24 city team members last week from many departments to ensure we're
communicating information they need.
With Community Engagement, you may recall we made the call to not hold the August First
Thursday and are working to modify our upcoming First Thursday events to spread out
elements of this program to make it safer and less hands on. Additionally, we are
continuing to work on a proposal for a pilot year of programming in the Fay Jones Woods.
Rawn noted that we are working with CACHE on this project.
Rawn then shared an update on her thoughts on a long-term plan for the Walker Stone
House property. She and Chair Kinney have been discussing this. Kinney shared that now is
a good time to consider and explore what it would mean to put that property up for sale.
Kinney noted that it would be beneficial to understand what stipulations we could put on a
future buyer and what legalities, options and opportunities we would need to consider as
we move forward with discussing this property.
Rawn continued saying we are not pressing for any decisions today but are wanting to
introduce the topic of considering selling the property. She stated that over the past 5 years
we've produced and hosted some great events and have been good stewards of the home
by putting on a new roof, renovating the annex and doing other additive improvements. In
the 5 years since we've had the home, we've considered many options for this space and
many of them were good ideas but each time the options were not feasible. She would like
to determine if the commission is in agreement to sell the home, and if so, that we explore if
we can have something akin to an RFP process to ensure that the purchaser of the home
doesn't tear it down or begin an activity that isn't additive to our downtown culture. Rawn
expressed that she would like to move forward with having a conversation with Vince
Chadick, our legal counsel, on what options we have. Chair Kinney asked for questions.
Commissioner Martin stated that as much as he appreciated the history of the Walker Stone
House, that he didn't see as core to the A&P's mission of creating economic vitality for
Fayetteville's restaurants and hotels and would like to see it become something additive to
our downtown. Commissioner Martin wondered if we could move more quickly than just
exploring conversations. CEO Rawn answered by stating that she wants to come back in
September with information she has learned. Both Commissioner Bunch and Commissioner
Prysby stated that they would appreciate more time to consider options based on what
Rawn learns.
Chair Kinney stated that it sounds like the commission would like to move forward with
exploring options of finding an appropriate buyer for the home and also learning what legal
options we have.
b. Financial Report, Jennifer Walker, VP of Finance
In presenting the financials, Walker stated that you'll see that at the end of July both our
expenditure and revenue targets are at 58% and we see our expenditures at 49% and that
our revenues are right on target at 58%.
Our year-to-date net income is $356,000; we're doing really well with keeping expense in
line.
Our balance sheet shows that our cash and investments are at $3.3 million. Our unreserved
fund balance is also at $3.3 million, and that is in addition to our two reserve funds.
Commissioner Martin asked if there could be a visual representation of our monthly 2019
HMR collections compared to monthly 2021 and CEO Rawn said they would alter the HMR
slide to include 2019.
2020 Financial Audit presentation, Cynthia Burns with BKD
Cynthia began by thanking the A&P for the opportunity to do this audit and thanking the
team for quickly getting information to BKD allowing them to conduct this audit. Burns
pointed out that both the audit and a communication from BKD was enclosed in the
commission's agenda packet. She pointed out that the audit report contained two different
opinions she wanted to point out. Because the A&P books are on the regulatory basis of
accounting, you'll see you have an unmodified opinion which is the best opinion you can
receive. You'll also see an adverse opinion for GAP accounting, strictly because Arkansas
allows you to use the regulatory basis of accounting. Burns noted they did not find any
issues with the A&P's financials based on the regulatory basis of the accounting.
During the course of the audit, we also look at the internal controls to see if there are any
significant deficiencies or material weaknesses of which we found none. We also found no
issues with the financial statements and didn't recommend any journal entries. The team
did a great job of keeping expenses low during a year when revenues decreased.
Burns discussed the internal controls over financial reporting in relation to the small staff
the A&P has. You can have compensating controls to catch any issues that arise, it can be
harder to have complimentary controls that would keep things from happening. While none
of the items noted rise to the level of being a deficiency to note in your audit report, we
want to bring them to the commission's attention that these are being handled through
compensating controls to ensure nothing happens. Burns thanked the team and expressed
that the team was very helpful in ensuring the audit was conducted thoroughly and timely.
VP of Finance Jennifer Walker clarified that the financials presented in the audit included
Cyclo-cross income, so you'll note that the financials are much larger than the normal
financial statements that are shared each month which exclude Cyclo-cross as we present
those separately.
d. Marketing Report presented by Hazel Hernandez, Vice President of Marketing and
Communications
Hernandez pointed out that the numbers she's showing will compare 2021 to 2019 to show
a more "apples to apples" picture of marketing. You'll see that new visitors to the website is
up 3% and new visitors who are downloading the visitors guide is up 176%.
Traffic channels coming to our domain are almost all showing increases:
Organic Search: Up 26%
Paid Search: Up 7%
Social: Up 10% - Ashley Cane, our Marketing Manager, creates really great social media
content which drives people to the website.
Direct: Down 7% - This is because our paid summer flight has ended
Hernandez also shared top key words which included Experience Fayetteville, Fayetteville,
AR, Things to Do in Fayetteville and Things to Do in Northwest Arkansas this Weekend. This
last key word shows that people are waiting to plan their trip, even to the weekend to see
what safe, outdoor activities there are.
e. Vote. Letter of Credit to Flanders Classic. Authorize CEO to execute a Letter of Credit to
Flanders Classics with First Security Bank. CEO Rawn asked VP of Finance Walker to explain
this request which is for the World Cup in October. Walker shared with the Commission
that Flanders Classic requires that we hold the prize money in a letter of credit. With no
questions, we had a motion from Commissioner Martin to give Rawn authorization to move
forward with this letter of credit with First Security Bank with a second by Commissioner
Moya. Chair Kinney held a roll call vote with unanimous approval.
Vote. PPP Loan Forgiveness Application. Authorize CEO to execute an application for PPP
Loan Forgiveness to the SBA through First Security Bank. VP of Finance Walker reminded
commissioners that a large purpose of this program was to cover payroll costs so that is why
you'll see a majority earmarked for payroll. You'll see that $232,000 of the $246,000 are
payroll expenses with the remainder being mainly utility costs. We are asking for 100% of
forgiveness on this loan balance. With your approval, we will submit this through First
Security Bank to the Small Business Administration. With no questions, we had a motion to
approve the PPP application from Commissioner Prysby with a second from Commissioner
Martin which was unanimously approved with a roll call approval.
g. Agenda Additions. Additions to the agenda may be added upon request from a majority of
commissioners. Rawn told commissioners that an orientation commission manual prepared
by Amy Stockton was ready for commissioners to either pick up, be held for our next in
person meeting or to be delivered.
Chair Kinney stated that we can assume our next commission meeting will be virtual and
we'll certainly revisit this if community numbers improve.
With no further agenda items, Chair Kinney adjourned the meeting at 2:57 pm.
Minutes submitted by Amy Stockton, Director of Operations