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TDC Minutes 03/27/2017 March 27, 2017 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL MEETING Naples, Florida, March 27, 2017 LET IT BE REMEMBERED the Collier County Tourist Development Council in and for the County of Collier, having conducted business herein, met on this date at 9:00 AM in a REGULAR SESSION in Building "F" of the Government Complex, Naples, Florida with the Following members present: Chairman: Commissioner Donna Fiala Vice Chairman: Susan Becker Victor Rios Clark Hill Robert Miller Ed (Ski) Olesky Mac Chaudhry (Excused) Michelle McLeod Nancy Kerns ALSO PRESENT: Jack Wert, Tourism Director Colleen Greene, Assistant County Attorney Nick Casalanguida, Deputy County Manager Gary McAlpin, Manager, Coastal Zone Management Kelly Green, Tourist Development Tax Coordinator Nicole King, Sports Marketing Mark Isackson, Corporate Financial & Management Services Division Ed Finn, Budget Analyst Barry Williams, Director, Parks and Recreation 1 3/22/2017 Collier County,FL:March 27,2017 March 27, 2017 MEETING AGENDA&NOTICE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Collier County Government Center, Administration Bldg. F, 3rd Floor 3299 East Tamiami Trail, Naples, FL 34112 March 27, 2017 9:oo am Collier County Commission Chambers * Requires TDC Action 1. Call to Order 2. Pledge of Allegiance 3. Roll Call 4. `AGENDA AND MINUTES A. Changes and Approval of Today's Agenda B.Approval of prior TDC Meeting Minutes 5. Presentations/ Public Comment - (3 minutes each) 6. * CONSENT AGENDA All matters listed under this agenda item are considered to be routine and action will be taken by one motion without separate discussion of each item. If discussion is desired by a member of the Council, that item(s)will be moved from the Consent_ .genda and considered separately under New Business or Old Business. A. COASTAL ZONE MANAGEMENT These items have been before the Coastal Advisory Committee (CAC) and have received a recommendation by majority vote of the CAC to proceed with the requested work after further recommendation from the TDC for the necessary tourist tax funding. The TDC is requested to make a finding that each project promotes tourism. i. ` E r.e•,• _i A) goc,c,hei-i TCI` i ;t t € 4` >'tA. t Supppg B. BEACH PARK FACILITIES These items have been before the Parks and Recreation Advisory Board(PARAB) and have received a recommendation by majority vote of the PARAB to proceed with the requested work after further recommendation from the TDC for the necessary tourist tax funding.The TDC is requested to make a finding that each project promotes tourism. C.TOURISM DIVISION 7. NEW BUSINESS These items are for review and recommendation by the TDC and have not been reviewed by another County Advisory Board and are to be considered for funding by a majority'vote and with a finding that each request promotes tourism. A. * EVENT FUNDING REQUESTS Miry lAsnanao rvdcarrvxr nnttvru v_nrnrarnmantlarivicnnr_hnarrlc_antLa..thnritiac/trv.rict_rlavalrvxnant_rnmrilffrir-arwntlac0017-anarxianimarch-27-7017 113 3/22/2017 Collier County,FL:March 27,2017 i. May Sports 1:: nts Fuliding,Reotwst I1l aii Snzhi B. * OTHER TDT FUNDING REQUESTS C. * N'A-2;(f Leasenold jpinTinents to 13a;v„Li,, D. * E. * 1I1Rolloc,it;!,!1 8. OLD BUSINESS These items have been continued from a previous TDC meeting, or are reoccurring reports for review by the TDC. A. *;NCRP EconT riir Maiysis - i0:30 am time certain B. *Beach 1 r9k, Update C. *Advisory Bparo NOM iliatins D. *01,FY 1-Financial Ret 9. Council Member Discussion ro. MARKETING PARTNER REPOPFS These reports are provided to TDC members on the digital link above to the County website. The Research Data Services report will be presented on a monthly basis, and the other reports will be presented at TDC meetings on an as needed basis. TDC members may request a presentation by the Marketing Partner representative or by Tourism staff at each TDC meeting. A. Research Data Services B. Paradise Advertising&Marketing, Inc. C. Lou Hammond&Associates D. Collier County Tourist Tax Collections E. Miles Partners-Website Activity F. Digital&Social Media- Paradise Advertising and Zebra Brazil G. Phase V -Fulfillment Services IL TOUJUSM STAFF REPORTS These activity reports are provided to TDC members on a digital link to the County website and will be presented to the TDC on an as needed basis. TDC members may request a presentation by Tourism staff members at each TDC meeting. A. Director B. Group Sales C. Leisure &Travel Trade Sales D. Sports Marketing E. Public Relations&Communications F. Film Office G. International Representatives H.Visitor Centers 12. Detailed Staff Reports http://vvww,colliergov.net/your-government/advisory-boards-and-authorities/tourist-development-council/tdc-agendas/2017-agendas/march-27-2017 213 March 27, 2017 Any persons in need of the verbatim record of the meeting may request a copy of the video recording from the Collier County Communications and Customer Relations Department or view online. 1. Call to Order—Commissioner Fiala Commissioner Fiala called the meeting to order at 9:03 A.M. 2. Pledge of Allegiance Pledge of Allegiance was recited. 3. Roll Call A quorum was established. 4. AGENDA AND MINUTES A. Changes and Approval of Today's Agenda Mr. Hill moved to approve the Agenda subject to hearing 7.E following Item #5 as soon as both applicants are present for the item. Second by Ms. Becker. Carried unanimously 8- 0. B. Approval of prior TDC Meeting Minutes i. Regular Meeting February 27, 2017 Ms. Becker moved to approve the minutes of the February 27, 2017 meeting as presented. Second by Mr. Hill. Carried unanimously 8—0. 5. Presentations/Public Comment - (3 minutes each) None 6. CONSENT AGENDA All matters listed under this agenda item are considered to be routine and action will be taken by one motion without separate discussion of each item. If discussion is desired by a member of the Council, that item(s) will be moved from the Consent Agenda and considered separately under New Business or Old Business. A. COASTAL ZONE MANAGEMENT These items have been before the Coastal Advisory Committee (CAC) and have received a recommendation by majority vote of the CAC to proceed with the requested work after further recommendation from the TDC for the necessary tourist tax funding. The TDC is requested to make a finding that each project promotes tourism. None B. BEACH PARK FACILITIES These items have been before the Parks and Recreation Advisory Board(PARAB) and have received a recommendation by majority vote of the PARAB to proceed with the requested work after further recommendation from the TDC for the necessary tourist tax funding. The TDC is requested to make a finding that each project promotes tourism. None C. TOURISM DIVISION None 7. New Business These items are for review and recommendation by the TDC and have not been reviewed by another 2 March 27, 2017 County Advisory Board and are to be considered for funding by a majority vote and with a finding that each request promotes tourism. A. EVENT FUNDING REQUESTS i. May Sports Events Funding Request Ms. King presented the Executive Summary "Recommend approval of Tourist Development Tax Category "B"funding to support the three upcoming FY 17 Sports Events up to $16,750.00 and make a finding that these expenditures promote tourism" dated March 27, 2017 for consideration. She noted the events included the: LISTA (US Tennis Association) -ITF Women's Pro Circuit— Week 1 from May 7-14 - ($7,800); USTA-ITF Women's Pro Circuit— Week 2 from May 14—21 - ($4,100) and Sweetbay Memorial Cup youth soccer from May 27-29- ($3,350). Mr. Rios left the meeting at 9:12 a.m. Ms. Becker moved to recommend that the Board of County Commissioners approve Tourist Development Tax Category "B"funding to support the three upcoming FY 17 Sports Events up to $16,750.00 and finds the item promotes tourism. Second by Mr. Olesky. Carried unanimously 7— 0. Mr. Rios returned at 9:14 a.m. ii. FHSAA Volleyball Sponsorship Ms. King presented the Executive Summary "Recommend approval of Tourist Tax Category "B"funding to sponsor the upcoming May 2017 sports event, The FHSAA Boys' Volleyball State Championship, totaling$7,800.00 and make a finding that these expenditures promote tourism" dated March 27, 2017 for consideration. The funding is for the FHSAA (Florida High School Athletic Association) Boys' Volleyball State Championship - $7,800. Ms. Kerns moved to recommend that the Board of County Commissioners approve Tourist Tax Category "B"funding to sponsor the upcoming May 2017 sports event, The FHSAA (Florida High School Athletic Association) Boys' Volleyball State Championship, totaling $7,800.00 and finds the item promotes tourism. Second by Mr. Hill. Carried unanimously 8—0. 8. Old Business C. Advisory Board Nominations Mr. Wert presented the Executive Summary "Tourist Development Council (TDC)Appointment Review" dated March 27, 2017 for consideration. He noted Tom White has withdrawn his application and Ronald Albeit and Dan Sullivan are under consideration. The item was continued from the last meeting so the applicants could be present. Speakers Ronald Albeit addressed the Council outlining the reasons he wishes to be seated on the Council. Dan Sullivan addressed the Council outlining the reasons he wishes to be seated on the Council. The Council noted both individuals are highly qualified and could be seated on the Council. Ms. McLeod moved to recommend that the Board of County Commissioners appoint Dan Sullivan to the Tourist Development Council. Without a second the motion was not considered. 3 March 27, 2017 Mr. Hill moved to recommend that the Board of County Commissioners appoint Ronald Albeit to the Tourist Development Council. Second by Mr. Rios. Carried unanimously 8—0. 7. New Business (continued) D. Financing Plan for Future Sports Facility Mr. Casalanguida presented the Executive Summary "Recommendation to evaluate and comment on the financing plan associated with developing a regional tournament caliber sports facility" dated March 27, 2017 for information purposes. He noted: • The County's existing facilities used for sports marketing events are at full capacity. • A recent study performed to address the shortfall was completed and recommendations were made to expand North Collier Regional Park as well as identifying other sites which could be developed. • The sites identified for new development included County owned parcels such as"Manatee Park," Collier County 305 site (CC305), and other private properties (City Gate). • After consideration, the North Collier Regional Park was eliminated from consideration as the public did not want the park expanded and the "Manatee Park" site was deemed to have insufficient transportation access and lack of available lodging in the area. • The City Gate and CC305 site were deemed the most viable parcels for developing a multi- facility site. • City Gate has the environmental permits in place and is zoned for the activity allowing a useful facility to be opened within 12— 18 months. • The CC305 site requires rezoning and permitting would take approximately 3 —5 years to develop. • The County at this point is considering the City Gate site, with a possible future coordination with the CC305 site. • The site would be used for both sports marketing events by promoters and used by local teams who would pay rental fees for use of the fields. • Costs to complete the project include $40 - $60M including land acquisition and would be financed by Tourist Development Tax (TDT) funds. • One option being considered to finance the project is increasing the Tourist Tax rate from 4 percent to 5 percent which would garner an additional $5 - $6M of revenue annually. Mr. Casalanguida noted during Council discussions: • Lee County does compete with Collier County for events, however they focus on baseball and there is ample room in the market for a multi-purpose venue to house soccer, lacrosse, field hockey and other tournaments. Additionally, the County does partner with Lee County for certain events. • A concern was raised on the expenditure and benefit to the County as some participants of Collier County sports events lodge in Lee County, however Staff noted Lee County event participants house in Collier County as well during their stays in the region. • Operations and maintenance of the facility would be funded out of monies from the General Fund, not the TDT revenue. Mr. Isackson noted the following during Council discussions: • The $40 - $60M could be financed by the County as they currently have $375M of bonding capacity. • The annual debt service required from TDT revenue would be approximately$4 - $6M. 4 March 27, 2017 • A"fifth cent" of tourist tax is not required, however utilizing $4 - $6M of Tourist Tax revenue to pay the debt would require the existing funds be "reallocated" and the categories currently receiving funds may be negatively impacted (depending on future collection rates) by servicing the debt. • If TDT is used for the debt service, and there is a future revenue reduction, the TDT funds would still be used to pay the annual debt service. • Avenues to address a future financial shortfall of TDT revenue or supporting financial assistance of current endeavors include the County utilizing monies from the General fund to "backfill"beach renourishment projects, museum operations, etc., however this option is not under consideration at this time. Speaker Ian McKegg, Collier Citizens Council recommended that the issue be studied carefully and the County not"rush" into a decision. He expressed concern there has not been any feasibility studies conducted on the proposal to construct the facility and the debt service funding may ultimately have a negative impact on the County's ability to address beach maintenance, especially if renourishment is required after a catastrophic storm event. Mr. Casalanguida reported he would relay the speaker's concerns to the BCC. E. TDT Reallocation Discussion Mr. Wert presented the PowerPoint "Tourist Development Tax Overview" for information purposes. He provided a historic overview of the tax noting the distributions of the TDT tax revenue were revised in 2013 with 41.29% allocated to Beaches/Pier; 46.72%to Advertising and Promotions and 11.99%to Operations of the County Museums. The following was noted during Council discussions: • Concern increasing the tax rate to 5 percent may not be enough to cover the debt service if interest rates or other economic conditions change negatively affecting visitation to the area. • Concern visitation to the area is on the downturn, Visit Florida funding may be substantially reduced by the Legislature and it may not be an optimal time to increase the tax rate and assume new debt to be paid with Tourist Development Tax revenue. Mr. Isackson reported that the discussion on raising the tax is in the infancy stages and a recommendation would not be sought from the Council until a future date. Break: 10:35 a.m. Reconvened: 10:42 a.m. Mr.Wert noted that it would be advantageous to schedule a workshop on the proposal where all parties would have ample time to express views and the proposal could be studied and reviewed in greater detail. Speakers (they spoke after the Council heard item 8.A) Rick Medwedeff addressed the Council on area visitation numbers noting advertising and promotion expenditures are targeted at leisure travelers and data confirms this market is not in a downturn,but static. The decrease in group market visitation as a result of Marco Island hotel closures while renovations take place are the main reason for the downturn. He noted the concept of raising the tourist tax to 5 cents demands further study and would be concerned on the program undertaking a large debt service commitment at this point in time. 5 March 27, 2017 Mike Dunkel, Spring Hill and Fairfield Suites noted the sports park facility would help the County diversify its tourism market and should be considered. Ian McKegg, Collier Citizens Council supports a workshop on the item and recommended an economic feasibility study on the sports park facility be completed by a qualified consultant. He expressed concern the debt service for the venue may cause a re-allocation of funds from other uses such as beaches and suggested a voter referendum may be beneficial to provide direction on the item. B. OTHER TDT FUNDING REQUESTS None 8. Old Business (continued) These items have been continued from a previous TDC meeting, or are reoccurring reports for review by the TDC. A. NCRP Returf Economic Analysis— 10:30 am time certain Mr.Williams presented the Executive Summary "Recommendation to approve initial funding in the amount of$1.8 million plus a 10%contingency amount of$180,000 for conversion of multipurpose natural turf fields to artificial turf authorizes staff to issue a design work order from the engineering continuing services contract, approves the TDC Category "B" Tourism Promotion Fund(184) budget amendments in the amount of$1.98 million, and makes a finding that this expenditure promotes tourism dated March 27, 2017 for consideration. He noted: • The item was continued from the previous meeting. • The proposal is to place artificial turf on 4 fields (2 in 2017 and 2 in 2018) at a cost of $1.98M annually. • The County is currently experiencing more demand for sports tournaments to the point they cannot accommodate new events and are beginning to lose existing events as the users outgrow the available facilities. • The proposal is to re-turf the fields to expand the playability as the current grass turf becomes unplayable from periods of heavy use and has to be taken out of service for 2 months. • As an example on the demand,the fields hosted approximately 700 games in January 2017 with 14,000 participants utilizing the venue. • The turf would be viable for 10 years of play, at which point only the "carpet"would be required to be replaced at a substantially less cost than the initial investment. • The rate of return is estimated at 108 percent incorporating direct and indirect economic benefits to the County. • The project will be competitively bid and the 2017 phase is anticipated to be completed during the summer. Some Council Members expressed concern on the proposed expenditure given the lack of direct return on investment of Tourist Tax revenue and a greater return on investment may be realized if the funds were dedicated to maintaining the beaches. Staff noted the goal of"tourism business"is to provide benefits to the entire local economy, not solely generating a direct benefit to lodging establishments and related tax collections. Sports events promote diversity in the local tourism products offered by the County and similarly, expenditures on dredging of passes, beach renourishment, etc. do not yield a direct correlation to Tourist Tax collections. 6 March 27, 2017 Speakers Dwight Morgan and Rob Anderson, Florida Fire Juniors spoke in support of the expenditure as there is a high demand in the area for youth soccer tournament facilities. Mr. Miller moved to recommend the Board of County Commissioners recommend approve initial funding in the amount of$1.8 million plus a 10% contingency amount of$180,000 for conversion of multipurpose natural turf fields to artificial turf, authorizes staff to issue a design work order from the engineering continuing services contract, approves the TDC Category "B" Tourism Promotion Fund(184) budget amendments in the amount of$1.98 million, and finds the item promotes tourism. Second by Mr. Olesky. Motion carried 5 "yes"and 3 "no." Mr. Rios, Ms. McLeod and Mr. Hill voted "no." 7. New Business (continued) C. Naples Depot Leasehold Improvements to Baggage Car Mr. Wert presented the Executive Summary "Recommendation to approve the projected expenditures for the leasehold improvements to a railroad car at Naples Depot to house the Greater Naples Chamber of Commerce Visitor Information Center, approve necessary budget amendments, and make a finding that the construction expenditures promote tourism" dated March 27, 2017 for consideration. He noted: • The proposal was previously heard by the Council and involves renovating the baggage car into a Visitor's Center at the Naples Depot. • The site is leased by the County, subleased to the Chamber of Commerce who will staff the facility. • The facility will be equipped with ADA access, the site of a trolley stop and adequately signed on both sides of the site. • The project will be going out to bid with the cost estimated at $325,000 and the expenditure will be funded by $200,000 from the budget and $125,000 of reserves. • If a greater expenditure is required, the item will be returned to the Council for consideration. Mr. Rios moved to recommend the Board of County Commissioners approve the projected expenditures for the leasehold improvements to a railroad car at Naples Depot to house the Greater Naples Chamber of Commerce Visitor Information Center, approve necessary budget amendments, and finds the item promotes tourism. Second by Ms. Kerns. Carried unanimously 8- 0. 8. Old Business (continued) B. Beach Trolley Update Mr. Wert provided the "Beach Trolley Progress Report" for information purposes. He noted $25,000 of Tourist Development Tax funds has been annually committed to the endeavor for a period of 3 years. The Council requested Staff to ensure the Visitor's Centers are in possession of any brochures promoting the service. D. Q1 FY 17 Financial Report Mr. Wert presented the Executive Summary "Tourist Development Tax FY 17 First Quarterly Financial Review" dated March 27, 2017 for information purposes. Ms. Kerns left the meeting at 11:56 a.m. 7 March 27, 2017 9. Council Member Discussion Ms. Becker reported that she attended a Tourism Advisory Roundtable on behalf of the Council. Mr. Wert reported that he will be scheduling a workshop on the concept of increasing the tourist tax rate to 5 percent. 10. Marketing Partner Reports These reports are provided to TDC members on the digital link above to the County website. The Research Data Services report will be presented on a monthly basis, and the other reports will be presented at TDC meetings on an as needed basis. TDC members may request a presentation by the Marketing Partner representative or by Tourism staff at each TDC meeting. Marketing Partner Reports—March 27,2017 A. Research Data Services —Dr.Walter Klages "Research Report—Klages Research and Research Data Services, Inc. B. Paradise Advertising—Cedar Hames/Nicole Delaney Paradise Advertising and Marketing, Inc—Marketing Report C. Lou Hammond Group -Jonell Modys "Lou Hammond Group and CVB PR Team Public Relations Report" D. Collier County Tourist Tax Collections—Jack Wert "Collier County Tax Collector Tourist Tax Collections" E. Miles Partners—Website Activity—Buzzy Ford "Web Site Analytics" F. Digital & Social Media- Paradise Advertising and Zebra Brazil "Brazil Social Media Marketing" G. Atilus—Search Engine Optimization "Digital/Social Media Marketing" H. Phase V-Fulfillment Services—Jack Wert "Phase V Fulfillment Services" 11. Tourism Staff Reports These activity reports are provided to TDC members on a digital link to the County website and will be presented to the TDC on an as needed basis. TDC members may request a presentation by Tourism staff members at each TDC meeting. A. Director B. Group Sales C. Leisure and Travel Trade Sales D. Sports Marketing E. Public Relations & Communications F. Film Office 8 • March 27, 2017 G. International Representatives H. Visitor Centers 12. Detailed Staff Reports Submitted 13. Next Scheduled Meeting Date/Location—April 24,2017—9:00 a.m. Collier County Government Center,Administration Bldg. F,3rd Floor, 3299 East Tamiami Trail,Naples, Florida 34112 There being no further business for the good of the County, the meeting was adjourned by order of the chair at 12:04 P.M. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Chairman, Commissioner Donna Fiala These minutes approved by the Board/Committee on as presented V or as amended 9