HomeMy WebLinkAbout2021-12-20 - MinutesFayetteville Advertising and Promotion Commission
Minutes from December 20, 2021 Meeting
Fayetteville Town Center
Commissioners Katherine Kinney, Chair, Tourism & Hospitality Representative
Present: Todd Martin, Tourism & Hospitality Representative
Chrissy Sanderson, Tourism & Hospitality Representative
Elvis Moya, Tourism & Hospitality Representative
Andrew Prysby, Commissioner at -large
Sarah Bunch, City Council Representative
Staff: Molly Rawn, CEO; Jennifer Walker, Vice President of Finance
Chair Kinney called the meeting to order at 2:00 pm.
Old Business
A. Commissioner Martin motioned to approve the November 2021 minutes with
Commissioner Prysby seconding. The minutes were unanimously approved.
III. New Business
A. Vote. Carpet Install at Fayetteville Town Center. CEO Rawn stated she is
seeking authorization to accept a quote from January Flooring to replace
carpet in the ballroom. The carpet is 20 years old, the recommendation is to
go with January Flooring and the budget amount is $103,000 which includes
a contingency if needed. This is in the 2022 budget and we are presenting it
to you now as we know a substantial price increase in supplies will occur in
January. Chair Martin asked about a general revenue amount for the town
center to have an understanding and Rawn said she could supply that
number, but not during the present meeting. Commissioner Martin made a
motion that we replace the carpet and Commissioner Sanderson seconded
it. It passed unanimously.
B. Vote. In Floor Electrical Repair at Fayetteville Town Center. CEO Rawn
stated she is seeking authorization to accept a quote from Multi -Craft
Contractors to replace in -floor outlets and repair electrical lines in the
ballroom. This is also included 2022 budget and the work would occur when
the carpet is getting replaced. We sought 3 quotes but only received two
vendors who were able to bid on this. The quote is for $23, 375 plus a 10%
contingency. Commissioner Sanderson asked if the electrical quote was
adequate, and CEO Rawn said it was. Commissioner Martin moved that we
approve, and Chair Kinney seconded it. It passed unanimously.
C. Presentation and Vote: 2022 Budget
CEO Rawn reviewed the one -page overview of the budget:
We are budgeting for 4.8 million in revenue and 4.6 million in expenses and
a 7% increase in HMR taxes. This budget includes minimal expenses for the
Clinton House Museum and Rawn will call them out when we get to them.
Cyclocross is a separate budget and will be looked at after this. Revenue is
fairly straight forward with Hotel, Motel and Restaurant tax revenue being
86% and the Fayetteville Town Center being 10%. Other revenue includes
banner, vendor income from Lights of the Ozarks, Visitors Center and for this
year, income from Tyson Family Foundation grant for the basketball court.
In discussing expenses, Rawn pointed out the larger items such as
personnel, the bond repayment for Kessler improvements, Walton Arts
Center, etc. Tourism initiatives make up 33% of expenses and include
marketing, funds for initiatives like Spartan Trail Race and more.
Commissioner Martin mentioned that both bonds could also be considered
tourism initiatives which would result in 2.2 million on the tourism initiatives
category. Commissioner Martin asked if we had any idea how much of the
Parks HMR revenue was spent on tourism initiatives. Rawn suggested
inviting Alison Jumper to a meeting first quarter to get an idea of how she
sees our two departments working together.
The Clinton House Museum budget support is $40,000 and Rawn broke that
down and also noted that rent for the house in the new lease from the U of A
has been reduced almost in half. Commissioner Moya asked about their
fundraising goals and Rawn said that she thought their board was meeting
the week after Christmas to discuss this. Commissioner Martin also asked
about the First Ladies Garden upkeep and Rawn said she thought that was a
possibility to discuss. Marilyn Heifner, a former director of the A&P who
worked to open the Clinton House Museum talked about the significance of
the First Ladies Garden.
CEO Rawn discussed some of the key changes in the budget. We are
planning on a full year of programming at the town center and a full season
of First Thursday and Lights Of The Ozarks expenses. Personnel is seeing a
12% increase in wages and salaries because we are adding back vacant
positions. We have kept agency advertising stable and have added funds to
promotion expenses for internal marketing activities.
Rawn pointed out significant capital investments included in this budget:
• Fayetteville Town Center HVAC Unit $45,000
• Fayetteville Town Center ballroom carpet $110,000
• Fayetteville Town Center ballroom doors $150,000
• Fayetteville Town Center bathroom remodel $200,000
• Experience Fayetteville bathrooms and carpet $90,000
Rawn asked Jennifer Walker, VP of Finance, to speak about the Cyclocross
budget. This multi -year project concludes with the January 2022 event.
Walker reviewed grant funding, event revenue and expenditures. Rawn
reiterated that this separate from our 2022 operating budget and is not tax
funded revenue.
Walker also spoke about the fund balance which will be around 5 million
when 2022 begins. She then reviewed the operating and the capital
reserves which will not be touched without commission knowledge and
permission. She noted that the capital funds request put forth by the
Fayetteville Town Center will deplete the reserve for this year and that the
commission could at any time decide to make additional contributions to the
reserve.
Rawn said the budget presentation was concluded and asked the
commission to proceed with questions or a motion.
Commissioner Martin asked if the net revenue of $257,000 included the
$100,000 amount put into the capital reserve and Rawn said yes.
Commissioner Moya asked about the increase in First Thursday and Rawn
said that particular line item hasn't grown much in 3 years and we wanted to
increase programming next year. Commission Martin said he would like to
keep tension on the Clinton House Museum budget.
Commissioner Bunch asked about bands hired for First Thursday and if they
were local or out of state. Rawn said they were a mixture but mainly in a
driving distance. Rawn commended Community Engagement Manager
Chloe Bell for her work in creating a diverse and well-rounded entertainment
ticket. Commissioner Moya said events like First Thursday only helped our
HMR partners and asked if we wanted to consider any other events that
could showcase our partners such as a "Bite" event that the LPGA did.
Rawn said that the promotions line item was a way for us to do more like this
such as the Fayetteville Ale Trail, etc. A lot of good discussion happened
around events to promote restaurants and also our local breweries.
Commissioner Moya asked about the Memorandum of Understanding with
TheaterSquared. Rawn recapped that in lay persons terms, it appeared that
we could change the amount if the commission wanted to. Rawn suggested
that we ask TheaterSquared to present an impact report when their fiscal
year ends. Commissioner Moya asked if we could consider an ask to tell
their database about our HMR partners and ask their patrons to visit our
HMR partners while taking in a show. Commissioner Martin suggested a
Good Neighbor policy of financial expectations we would have for an
organization we fund at $50,000.
Commissioner Bunch requested Commissioner Martin make a motion to
review TheaterSquared for an end of the year financial and tourism impact
and to also vote annually on the $200,000 payment. Commissioner Martin
made a motion that TheaterSquared be asked to present an impact report on
their year and for the commission to vote each year on the payment to
TheaterSquared with Chair Kinney seconding the motion. Chair Kinney
called a roll call vote with the motion passing unanimously. CEO Rawn said
she would talk with TheaterSquared to determine a procedure and bring the
procedure back to the commission for approval or amendments. It was
noted that the 2022 allocations would not be sent to TheaterSquared until a
presentation could be made.
Chair Kinney asked if there were any other questions about the 2022 budget
presentation. There being none, Commissioner Martin made a motion to
approve the 2022 budget with Chair Kinney seconding it. It passed
unanimously via a roll call vote. At 3:38pm the commission went into
executive session per the agenda.
At the end of the executive session, Commissioner Bunch made a motion to
move CEO Molly Rawn's salary to $150,000 starting January 1st and
maintain the $5,000 car allowance. Chair Kinney seconded it and it passed
unanimously. Several commissioners thanked Rawn for her leadership.
With no other business, Chair Kinney adjourned the meeting at 4:41 pm.
Minutes submitted by Amy Stockton, Director of Operations, Experience
Fayetteville.