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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.