Loading...
TDC Minutes 04/18/2017 W April 18, 2017 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL MEETING Naples, Florida, April 18, 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 1 :00 PM in a WORKSHOP 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 Dan Sullivan Michelle McLeod Nancy Kerns ALSO PRESENT: Jack Wert, Tourism Director Colleen Greene, Assistant County Attorney Tim Durham, Executive Manager of Corporate Business Operations Gary McAlpin, Manager, Coastal Zone Management Kelly Green, Tourist Development Tax Coordinator 1 4/27/2017 Collier County,FL:April 18,2017 April 18, 2017 TOURIST DEVELOPMENT COUNCIL WORKSHOP AGENDA APRIL 18, 2017, BCC CHAMBERS 1:00 PM —4:00 PM I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. CHANGES/APPROVAL OF AGENDA IV. NEW BUSINESS 1. Workshop Discussion Topics a. Reallocation of the Tourist Development Tax i. Modeling Research ii. TDT Reallocation as of 201f1 iii. TDT Allocation History iv. TDT Visitor Spend&TDT Revenue History v. Coastal Resiliency Discussion b. Amateur Sports Complex Development i. Sports Complex Addendum Report ii. Hunden Proforma of Proposed Complex V. QUESTION&ANSWER PERIOD VI. DISCUSSION VII. NEXT MEETING DATE/LOCATION 9:00 AM April 24, 2017 TDC Monthly Meeting, BCC Chambers VIII. ADJOURNMENT http://www.colliergov.net/your-government/advisory-boards-and-authorities/tourist-development-council/tdc-agendas/2017-agendas/april-18-2017 1/1 April 18, 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. I. Call to Order—Commissioner Fiala Commissioner Fiala called the meeting to order at 1:00 P.M. II. Pledge of Allegiance Pledge of Allegiance was recited. III. Changes/Approval of Agenda The Council noted Item IV.1.v will be heard after Item IV.1.i. IV. New Business 1. Workshop Discussion Topics a. Reallocation of Tourist Development Tax i. Modeling Research Mr. Durham presented two models for TDT expenditures titled"4 Percent TDT— Reallocation of Funds" and "5 Percent TDT—Reallocation of Funds" (Model 1 & 2) for discussion purposes. He noted the data was prepared using an assumption of$5.25M of revenue collected for every 1 percent of TDT revenue collected and an annual $5M bond to fund the sports facility and the Collier County Museums Operating expenditures funding shifted from the Tourist Development tax revenue to the General Fund. 4 Percent Model would provide a reallocation of funds as follows: Category A—Beach Renourishment/Facilities: +$460,000 Category B—Amateur Sports Tourism Venue: +$5.04M Category B—Promotions: -$2.99M Category B - Convention and Bureaus as County Agencies (Admin. Costs): —no change Category C - Museums: -$2.52M (to General Fund) 5 Percent Model 1 would provide a reallocation of funds as follows: Category A—Beach Renourishment/Facilities: +$2.88M Category B—Amateur Sports Tourism Venue: +$5.04M Category B—Promotions: -$150,000 Category B - Convention and Bureaus as County Agencies (Admin. Costs): —no change Category C - Museums: -$2.52M(to General Fund) 5 Percent Model 2 would provide a reallocation of funds as follows: Category A—Beach Renourishment/Facilities: +$2.04M Category B—Amateur Sports Tourism Venue: +$5.04M Category B—Promotions: +$685,000 Category B - Convention and Bureaus as County Agencies (Admin. Costs): —no change Category C - Museums: -$2.52M (to General Fund) During Council discussions, the following was noted: • Concern the bond payback would be the number one priority and adequate funds may not be available for other uses if there is a year when revenue substantially decreases. 2 April 18, 2017 • The term of the loan would be from 25 —30 years with the first payment due next year. • The Hunden Strategic Partners report now estimates the costs of the facility at $58M which would not include the installation of turf surfaces, an additional cost of approximately $14M. • There would be additional costs for annual operations and maintenance which would be provided by the County or private contractor. • The need to ensure adequate infrastructure is in place to accommodate the growing number of peoples visiting the area. • The"catastrophic event recovery fund" for beaches will have a balance of$7M by the end of Fiscal Year 2018 and has been"capped"by the BCC at $10M. Speakers Randy Smith, Collier County Lodging and Tourism Association noted the County needs to develop the tourism industry and the 2013 increase in expenditures for promotions led to increased visitation to the area. He supports shifting funding of museum operations to the General Fund and recommends consideration be given to implementing a special taxing district to fund inlet maintenance. Tom White, Hawthorne Suites supports developing sports tourism opportunities as it has been successful in other areas, such as Sarasota. Dave Trecker, Collier Citizens Council reported beach renourishment and maintenance should be a funding priority and the County should ensure ample funds are available to address beach needs in the event of damage from a major storm event. He supports increasing the tourist tax rate from 4 percent to 5 percent with the increased funds being dedicated to beach renourishment. The following items were noted during Council discussions: • Staff is confident the County can meet the bond obligations even with a"down year." • A determination should be made if Tourist Development Tax expenditures, including the repayment of a bond can be "backfilled"by monies from the General Fund (if necessary). • Miami-Dade County suffered a 17 percent decrease in revenue in 2016 equating to approximately $3.5M of lost revenue in Collier County should this type of downturn occur in a given year. • Is the budget being considered large enough at this point in time and staff should develop accurate estimates on the costs of the total project. • While Lee County focus' on baseball tournaments, there are opportunities in the local marketplace for sports events such as lacrosse, field hockey, soccer, volleyball, etc. • If the facility is constructed,the non-County marketing grants program would continue being funded from the promotions' budget. • The Convention and Visitor's Bureau promotions budget is smaller than those of the competitive sets of destinations in Florida and it would not be advantageous to reduce the funding given the success of the program. • Although, much of the focus has been on the expenditures required to construct and operate a sports facility,there will be revenue generated as a result of the endeavor and that should be considered in the discussions. • The need to reallocate the funding of museum operations to the General Fund. 3 April 18, 2017 . Mr. Wert recapped the issues identified by the Council: 1. The concept of a sports facility is favorable; however caution should be exercised in the County's substantial financial commitment to the endeavor. The County should ensure there is adequate means available to meet the financial obligation even in times of a "tourism" downturn without unreasonably impacting the other categories of expenditures under the auspices of the TDC. 2. The need to identify all costs associated with the project(land acquisition, construction, artificial turffor the fields, etc.) including those associated with ongoing operations and maintenance. 3. Support for funding operations of County museums from General Fund revenue. 4. Considering not only the costs associated with the project, but identifying the potential revenue generatedfrom the facility. v. Coastal Resiliency (this item was heard after Item IV.i). John Sorey, Chairman of the Coastal Advisory Committee addressed the Council noting: • It would be prudent to develop a detailed economic analysis for the sports facility operation. • Consideration should be given to developing additional models for utilizing a 4 and/or 5 percent tax rate with a 60/40 ratio of funds allocated to beaches and promotions respectively. • Beaches are a primary reason tourists visit the area and they should remain a top priority for the County. • Truck haul projects are adequate for smaller projects (100,000 cubic yards) but not feasible for a large project (1M cubic yards). • Dredging is necessary for larger projects and investigation reveals the County purchasing their owner dredge or partnering with other jurisdictions during times of renourishment is not feasible at this point in time. • Discussions are now underway to identify ways to improve the resiliency of the coastal areas with the main goal of protecting the upland structures. Investigations include identifying the feasibility of: ➢ Increasing the height of the beaches by one foot in elevation at the dune line. ➢ Widening the dry beach by 50 feet. ➢ Constructing offshore breakwaters. ➢ Developing feeder beaches. Mr. McAlpin reported: • The current funds allocated to beaches (41 percent) are not entirely for renourishment and the monies are also used for ongoing maintenance, beach park facilities, etc. • In addition money allocated from the Tourist Development Council, FEMA has reimbursed the County with$30M over past 10 years for beach renourishment projects and the program may not be available for future use by the County. • The exact costs to undertake the beach resiliency project are unknown at this time but the preliminary estimate is $30M plus annual maintenance costs. • In case of a major emergency event,there is approximately$30M of encumbered funds available from beach maintenance projects, beach park facilities,the 4 April 18, 2017 "catastrophic event recovery fund" etc. which may be used to remediate damage from the event. Mr. Durham identified other issues for staff to consider: 1. Determine if TDC expenditures can be "backfilled"from General Fund, if necessary. 2. The desire to increase allocations offunds to beach maintenance. 3. Development of additional models for revenue allocations at a tourist tax rate of 4 percent and 5 percent assigning 60 percent offunds to beach renourishment/facilities and 40 percent to promotions. 4. The revenue generated from the project should include any financial partnerships available such as "naming rights, " etc. ii. TDT Reallocation as of 2013 Mr. Wert noted the meeting package includes the chart "TDT Allocations as of 2013" for informational purposes. iii. TDT Allocation History Mr. Wert noted the meeting package includes the chart "TDT Allocation History" for informational purposes. iv. TDT Visitor Spend& TDT Revenue History Mr. Wert noted the meeting package includes the chart "Historical TDT Collections & Visitor Spending" for informational purposes. b. Amateur Sports Complex i. Sports Complex Addendum Report Mr. Wert reported there is an Addendum to the Hunden Report "Collier County Market and Needs Assessment Addendum" dated April 6, 2017 which has been submitted to the County and included in the meeting package. ii. Hunden Performa of Proposed Complex Mr. Wert reported The Hunden Strategic Partners submitted an excerpt to their report dated May 17, 2017 which has been included in the meeting packet and provides an analysis of the projections for use of the proposed sports complex and related spending. 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 5 April 18, 2017 There being no further business for the good of the County, the meeting was adjourned by order of the chair at 3:02 P.M. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Chairma , Commissioner Donna Fiala These minutes approved by the Board/Committee on as presented or as amended ✓ . 6