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TDC Minutes 01/24/2005 R January 24,2005 TRANSCRIPT OF THE MEETING OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Naples, Florida, January 24, 2005 LET IT BE REMEMBERED, that 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 REGULAR SESSION in Building "F of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Commissioner Fred Coyle Susan Becker Robert Dictor Kevin Durkin Murray Hendel Douglas House (Absent) David Loving (Excused) John Sorey III (Excused) Glenn Tucker ALSO PRESENT: Jack Wert, Director of Tourism Maria Bernal, Executive Assistant/Tourism Gail Hambright, Administrative Assistant Heidi Ashton, Assistant County Attorney Ron Hovell, Coastal Projects Manager 1 1-24-05Agenda Page 1 of 1 MEETING AGENDA & NOTICE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Monday, January 24, 2005, 9:00 A.M. . Noon Collier County Government Center, Administration Bldg. F, 3rd Floor 3301 East Tamiami Trail, Naples, Florida 34112 I. Call to Order II. Roll Call III. Changes and Approval of Agenda IV. Approval of TDC Minutes 1. Regular Meeting November 22, 2004 2. BCC/TDC Joint Workshop December 17, 2004 V. Staff Reports 1. Director's Report - Jack Wert 2. Sales Manager Report - Debi DeBenedetto 3. P.R. Manager Report - JoNell Modys 4. Film Coordinator Report - Maggie McCarty 5. Inquiry Reports - Jack Wert a. Phase V - Fulfillment & Call Summary b. Search Engine Report c. Golf Pack-Golf Inquiries 6. Paradise Advertising & Marketing - Cedar Hames VI. Old Business 1. Tourist Tax Ordinance Change 2. Advertising and Promotion Investment 3. County/City of Naples Beach Renourishment Update 4. Hideaway Beach Renourishment Additional Permitting Costs 5. Marco South Beach Renourishment Permit Fees 6. Wiggins Pass Dredging Update VII. New Business 1. TDC Category "A" Grant Application-Vanderbilt Beach Access #1 2. TDC Category "A" Grant Application for Doctors Pass Maintenance Dredging 3. New Vehicle for Coastal Inspections 4. Naples Botanical Garden Interim Status Report VIII. Announcements IX. Audience Input & Discussion X. Council Discussion XI. Next Meeting Date/Location - February 28,2005 Goverment Center, Administration Bldg. F, 3rd Floor XII. Adjournment All interested parties are invited to attend, and to register to speak and to submit their objections, if any, in writing, to the board prior to the meeting if applicable. For more information, please contact Jack Wert at (239) 403-2402. If you are a person with a disability who needs any accommodation in order to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Please contact the Collier County Facilities Management Department located at 3301 East Tamiami Trail, Naples, FL 34112, (239) 774-8380. Public comments will be limited to 5 minutes unless the Chairman grants permission for additional time. Collier County Ordinance No. 99-22 requires that all lobbyists shall, before engaging in any lobbying activities (including, but not limited to, addressing the Board of County Commissioners) before the Board of County Commissioners and its advisory boards, register with the Clerk to the Board at the Board Minutes and Records Department. http://www.colliergov.net/tdc/1-24-05Agenda.htm 1/2012005 January 24, 2005 I. The meeting was called to order by Commissioner Fred Coyle at 9:00 AM. II. Roll Call: A quorum was established with Mr. Loving and Mr. Sorey being excused and Mr. House absent. III. Changes & Approval of Agenda: Add: Under New Business #5, Election of Vice Chairman Ms. Becker moved to approve the Agenda as amended. Second by Mr. Durkin. Carried unanimously 6-0. IV. Approval of TDC Minutes - Regular meeting November 22, 2004; BCC/TDC Joint Workshop December 17, 2004 Ms. Becker moved to approve the Minutes of the regular meeting of November 22, 2004. Second by Mr. Durkin. Carried unanimously 6-0. Mr. Durkin moved to approve the BCC/TDC Workshop minutes of December 17, 2004. Second by Mr. Tucker. Carried unanimously 6-0. V. Staff Reports: 1. Director's Report - Jack Wert (attached) . Trade ShowlNetherlands · JoNell Modys in NY attending luncheon (HSMAI) . Attended Visit Florida Board Meeting · Governor approved additional funding ($4.75M) for advertising, promotion and public relations. · Tourist Tax report (attached) up from 2003 2. Sales Manager Report - Debi DeBenedetto (Attached) · Many Trips - Visitor Guides handed out at shows - lots of interest from Chicago area. Everglades popular at adventure shows. · Florida Huddle · Bahamas Delegation · Many Mailings · Leads from Meeting Planners Commissioner Coyle asked for graphics on the yearly trends. 3. P.R. Manager Report - (Attached) (Mr. Wert reported) · Travel Channel- Naples Beach nominated as top beach in US · Working with UK and German office · Working with different publications - Southern Living a popular and important one. 4. Film Coordinator Report - Maggie McCarty 2 January 24, 2005 · Commercials for Beall's and Fifth Third Bank campaign · Audi USA - Print campaign · Swamp Buggy · Feature Films · Ad in Hollywood paper · Tax Incentives · Hosting Legislative Sessions in Tallahassee 5. Inquiry Reports - Jack Wert a. Phase V - Fulfillment & Call Summary - Doubled since last year b. Search Engine Report - Increase in number of pay-for clicks c. Golf Pack-Golf Inquiries 6. Paradise Advertising & Marketing - Kerri Durand · Distributed "Partner Pack" (Disc) -logo's/slogan's/photo library · Showed different promo's and ad's along with a sweepstakes ad for the UK · Nature Heritage Promo for Eco- Tourism Market VI. Old Business: 1. Tourist Tax Ordinance Change - Jack Wert In a Joint meeting with the BCC, staff was asked to make a recommendation regarding changes to the Tourist Tax Ordinance related to the funding of the Naples Depot. The staffs recommendation is making a change in Category "C." Suggested Category C-l funds are used for the Deport by making an adjustment to the percentage allocated to C-2 funds. They would need to change the following language by adding: "owned or operated museums or municipal" to Category "c" and in the C-l Category they would change the allocation of percentage from 19% to 22%. Then reducing the C-2 Category from 7.764% to 4. 764%. Operating expenses for Naples Depot from Tourist Development Tax Fund is estimated approx. $250,000/year. It was uncertain as to new revenues derived. SPEAKERS Julie Koester & Joe Cox - Informed the Committee about the Children's Museum of Naples. Private, non-profit, 22,000 sq foot, fully interactive space 3 January 24, 2005 for families with children. Will be in north Naples area off Immokalee road. Will have an annual budget of $l.3M. Will bring in tourist with small children and families. 20% of the visitors are expected to be outside Collier County or outside the State. Opening in 2007. No cultural attractions for young children in the County so will be an opportunity. First in Nation fully accessible for every disability. Joe Cox - Will have 10 permanent exhibits, along with a Traveling Exhibit Gallery with major national touring exhibits. This will attract tourist to return over and over. Bringing Florida Association Museum State Conference to Naples in September with over 200 museum directors. The proposal to change the funding is a 40% reduction in funding available to non-County museums to promote their exhibits outside Collier County. Commissioner Coyle asked for them to be put on a future TDC Agenda with a full presentation. Sondra Quinn - President & CEO of Naples Botanical Garden - a museum of 160 acres being conserved and preserved in the middle of the County. All museums are an important part of the growing cultural offering. Funds they have received from TDC to date have provided them with exhibits, attractions and many services. 50% of their visitors are from outside of Collier County. C-2 funds are the only County funds available right now. She requested they do not cut funds for other museums, they can continue to work with everyone. Have partnered with Florida Gulf Coast University raising $5M to build equation and research on their site. Will open 30 acres of uplands and wetlands and a children's garden. Dotty Beckwith - Botanical Garden - mentioned the Gardens are an attraction with those coming from abroad as well as in the United States. Discussion followed on funding sources for Naples Depot and other Museums and combining C-l and C-2 and consideration of funding being based on merit. Look at Performa's and have museums be self-sufficient in time. Mr. Hendel stated, for the record, he will be abstaining from any vote as he serves on the Board of a non-profit organization. Commissioner Coyle would like to get some input from Ron J amro. He asked about tabling the subject until the next meeting. Mr. Wert responded they are working on the Naples Deport now but could wait one more month. 4 January 24,2005 Mr. Durkin moved to support combining C-1 and C-2 and further grants be based on merit. Second by Mr. Dictor. Ms. Ashton - Assistant County Attorney - mentioned they can merge the two categories but recommended they do the Ordinance Amendment to say "county owned or operated" museums. The Depot is a hybrid; under the Statute they can use funds for owned and operated museums. She would recommend the Ordinance Amendment to say "county owned or operated. " Would combine the definition. Mr. Durkin amended his motion to read - to eliminate the C-l/C-2 Categories and to add the language "or operated" in the sentence where it states "County owned. " Awarding the money to the different entities is at the discretion of the TDC and BCe. Ms. Ashton recommends a policy that all museums that are interested in funding come forward on a certain date. That would be a policy change. Mr. Dictor amended his second. Mr. Wert asked about adding or "Municipal owned Museums." Ms. Ashton suggested they add "Publicly Owned" or operated making it a bit broader. No one had a problem with adding "Publicly Owned" rather than "Municipally owned. " Motion carried unanimously 5-1. Mr. Hendel abstained. 2. Advertising and Promotion Investment - Mr. Wert Power Point Presentation by Mr. Wert on investing surplus funds for Tourist Tax - (Attached) . The Premise being: - Renourish target markets the same way they renourish the beaches. - Beaches can't sell themselves - need to be promoted. - Promotion will increase beach renourishment funds & visitor spending. - Currently losing new & repeat visitors & market share to other sun destinations. - Potential customers say they would react favorably if they saw our advertising. · Factors in Maintaining Market Share in 2005 were given · Tourism Promotion Efforts were shown with year around employment & 2004 being the best season ever. . Showed chart of the Competition that outspends Collier County 5 January 24, 2005 · Explained the 1992 Referendum and development ofthe TDC and Tourist Tax · Reviewed the Categories and allocations · Presented statistics & projections of past results for investment of funds in marketing and advertising. · Return on Investment given · Proposing: Enhance promotion of beaches in off-season. Invest surplus TT (Tourist Tax) Revenue received first half of Fiscal Year. Earn additional TT Revenues for beach renourishment, promotions & museums during 2nd half of year. Promote new target markets and participate in New Visit Florida Co-op Program. · Presented Benefits of investing surplus revenues and long term solution. Mr. Wert remarked if they will continue to spend what they have been spending, they will continue to lose market share. Some of the benefits of investing the surplus revenues are: · All the categories will get additional revenues between April 1 st and September 30th while promoting the destination. · When they promote and run ads - the tourist will come next summer. · The County will receive more sales & gas tax. · Increase year-around employment. · Recommendation: Each year Surplus Funds should be reviewed at mid-fiscal year & invested in additional off-season advertising of the beaches & other visitor amenities in the off- season. - If an Ordinance Amendment is needed, direct staff to prepare and present amendment to the BCC in February. (Ms. Becker left at 10:32 AM) Mr. Hendel has a problem with the process and said anything they spend should be budgeted. He will vote against the proposal because surplus funds should go towards beach nourishment. They are short in the budget now for various projects. Advertising is important, but would like to see it in the budget process in the beginning of the year. Mr. Dictor referred to an article in USA Today concerning a survey on top destinations with Fort Meyers, FL listed as #8. That is a testimony for what is being spent in Lee County, outspending Collier County. Would like to see recommendation done once and reassess in the summer time. Will vote in favor of it. Mr. Tucker agreed with members and has no problem with trying it this year. Also agrees it should be a Budget process. He will support the recommendation. 6 ".---.-.. January 24, 2005 Commissioner Coyle asked for refining the process as to the results to determine what the return on the investment of $400,000 is. A lengthy discussion was held on new visitors, advertising and their spending habits on hotels, restaurants, shopping and other activities along with changing the Ordinance and concerns on Budgeting and Reserves. SPEAKERS Ron Pennington - Chairman of Coastal Advisory Committee - gave the history of the Tourist Tax and the Tourist Development Council when it came before the Commission in 1992. He is protecting the Tourist Tax Funds, voted by the people to be used for beaches and inlets, from being diverted to other uses. Their beaches have been of world class and continue to sell themselves. He discussed the various tax percentages and their usage and financing. The hoteliers had agreed to have an additional 1 % tax solely for the beach with an increase to Tourism. Category "A" was for beaches and inlets only, but now includes $2M a year for Parks and Rec, parking garage and Lake Trafford clean-up. Didn't agree that there would be a surplus of funds for Tourist Development Funds in excess of original projections mid-year. CAC develops budget requirements into allocations and most are fixed. They are facing a shortfall of Category "A' funds into 2006. They project the Vanderbilt Beach parking garage must be financed for funding of other programs. He discussed the shortages and now recommended $700,000 is diverted to tourism advertising projecting a 21 % return and finds it difficult to accept. Stated the diversion of funds violates the Tourist Development Tax in several ways. He urged no action be taken to divert funds from the beach program. Clark HilI- Hilton/N aples - Beaches sell themselves and they start losing market share because of neighbors tripling their spending. Beach renourishment will begin to dwindle and can't have that happen as that is what brings the majority of the tourist to Naples. Investment in advertising and marketing will bring a return. If they don't do something in the future, they will lose market share and funding that is available right now to take care of the beaches. Ed Staros - Managing Director to Ritz Carleton Resorts - Employ 1 ,500 employees in Collier County. This season will be phenomenal. Hurricanes devastating industry north has a rippling effect. Since the Hurricanes his booking for August and September 2005 is zero. Have bookings prior to the hurricanes, but not since. To get over the hurdle they will need a one time use of funds. 2005 third quarter may be one of the worse seasons ever. Encourage to set aside a one time fund. Agreed with Mr. Hendel in looking at the Budget process. He stated what the County spends for all of Collier County is 20% of what he spends for marketing his two hotels. The next fiscal year should be looked at closely. 7 --..-.".. January 24, 2005 Clive Walcott - Quality Inn and SuitesIPark Shore & President of Collier County Hotel & Lodging Assn. - operates a 100 room hotel with a budget of $200,000 for marketing and advertising. All hotels in the area are promoting destination and bringing in revenues for the County. He felt adding $700,000 is helping everyone. Want the beaches to look good and do sell themselves, but if people don't know there are beaches in Collier County, they won't come. If everyone doesn't spend the money to inform the public of the beaches and golf etc., no way they can compete with other markets. The Hotels do the work to get the people into the area and are constantly begging to fund the Tourist and Convention Bureau to bring more people into the area and help keep their employees employed year around. Helps to promote the quality of life. The Budget should be made properly so they don't have to come back every year to beg for advertising dollars. Other markets are competing against us. Las Vegas and Arizona is encouraging people not to go to Florida in the summertime as their destinations do not have hurricanes. Need to overcome these perceptions and can't do it with the present funding. Ron Albeit - Registry Resort & Edgewater Beach Hotel- supports Mr. Wert's recommendation to use the funds for the short term opportunity to handle the summer months ahead. They are very concerned about the July/August/September months. He talked about the different events that occurred after the Hurricanes. They can't use last year as a benchmark. Many of the Hotels depend upon group business/conventions. The stigma out there not to visit Florida in the summer months or hold meetings needs to be broken. He is in favor of the proposal for this year especially. They spend about equal the amount of money in advertising as the Ritz Carleton and for it to be compared to what the entire County uses is something to be considered. They are all for fiscal responsibility, but they need to do something this summer or there will no doubt be a deficit. They are behind in their group market, international market, they will see employees being laid off and beach renourishment and museum dollars drop. There is still an opportunity to fix the summer promotions. Scott Shoenberger - Managing Director of LaPlaya Beach & Golf Resort - supports Mr. Wert's program and also agrees with Mr. Hendel. He was surprised to see the allocation of dollars spent in relationship to the CVB in comparison to the museum program. Has 189 rooms and a club on the beach - for this size property, they have a larger advertising budget than the County. They promote the destination and property. Discussed the damage they entailed during hurricane Charley but didn't go through any lay-offs and in complete operation at this time. They are concerned with the base business, and not one group that was repeat business in 2004 has re-booked for August 2005. Some of his other Hotels, Daytona and the Keys have some of the best CVB's in the state and are being very pro-active in going out promoting their destination. Summer is a challenge and these issues need resolutions immediately. Mike Watkins - Naples Beach Hotel & Golf Club - talked about the first TDC amendment concerning the bed tax which they opposed which was going to include a baseball stadium. They believe tourism promotion is a good program along with the bed tax, beach renourishment and long term promotions. Support Mr. Wert's proposal. 8 January 24, 2005 Commissioner Coyle wanted to make sure everyone understood that Mr. Wert's proposal is not for a "one time only" proposal. He is recommending to the BCC that each year surplus funds will be reviewed at mid-year and invested in additional off-season advertising. Mr. Wert concurred. Mr. Hendel is not opposed to the advertising, just the process. In the 2006 Budget he would be in favor of what was presented today. Mr. Wert stated they have few reserves and no way to spend any surplus funds above and beyond what is budgeted. Commissioner Coyle suggested making a recommendation to the BCC that they utilize the excess reserve funds for additional advertising. They then won't face changing an Ordinance or misrepresenting to the public the way they wanted the money allocated in the beginning. Heidi Ashton - Assistant County Attorney - if it is coming out of reserves and is relating to advertising and promotion, an Ordinance Amendment would not be necessary. If taking it out of reserves for other categories, then the Ordinance would need to be amended to allow them to do sometime during the year. Mr. Hendel moved that whole process be rejected and that at their next meeting, Mr. Wert come before the TDC and suggests a dollar amount that they can discuss, and if approved, can go before the Board of County Commissioners. Second by Commissioner Coyle. The no's have it and the motion lost. (2-for and 3-against with Mr. Durkin, Mr. Dictor and Mr. Tucker voting no) Mr. Dictor moved to accept Mr. Wert's proposal adjusting the funds of the access to the approved budget amount for this fiscal year only. Second by Mr. Durkin. Motion carried. (3-for and 2-against with Mr. Hendel and Commissioner Coyle voting no) BREAK - 11 :26 AM RECONVENED - 11 :35 AM 4. Hideaway Beach Renourishment Additional Permitting Costs - Ron Hovell-Coastal Projects Mgr. Asking for an additional $28,500 in permitting costs coming out ofDEP and the Army Corp of Engineers. Have the State permit and hoping for the Federal permit in next few weeks. Mr. Tucker moved to approve the two work order amendments for $28,500. Second by Mr. Hendel. Carried unanimously 5-0. 9 January 24,2005 5. Marco South Beach Renourishment Permit Fees - Ron Hovell Asking for recommendation to pay $8,690 for permit fees. Mr. Hendel moved to recommend approval. Second by Mr. Tucker. Carried unanimously 5-0. VII. New Business: 3. New Vehicle for Coastal Inspections - Ron Hovell Looking for recommendation to spend up to $28,000 for a replacement vehicle for Coastal inspections. Mr. Hendel moved to approve. Second by Commissioner Coyle. Motion carried 4-1. 1. TDC Category "A" Grant application - Vanderbilt Beach Access #1 - Ron Hovell Parks and Rec has a supplemental grant application and are asking for an additional $16,500. (No motion) 2. TDC Category" A" Grant Application for Doctors Pass Maintenance Dredging - Ron Hoven City of Naples submitted a grant application for $598,500. CAC recommended approval. Confirmed the finances would offset costs for major beach renourishment to be done next winter. This is a reimbursement grant to the City of Naples. If approved will need a budget amendment to take the money from the Category "A" Reserves and execute an Interlocal agreement with the City. Mr. Hendel moved to approve the $598,500. Second by Mr. Tucker. Carried unanimously 5-0. Mr. Wert asked to go back to Item #1, with a recommendation or not, as it is going to the BCC, or can be pulled. Mr. Hovell explained the funding come out of the policy set aside by the Parks & Rec facilities. They are suggesting an agreement with the developer of the property. This will come out of the policy allocation of Beach/Park facilities category and out of the $2M set aside. Mr. Wert stated this is for access and is part of the $2M set aside. Mr. Hendel moved to approve the $16,500. Second by Commissioner Coyle. Commissioner Coyle reported 3 for and 2 against. Commissioner Coyle asked that they use all the Advisory Boards and anytime they are spending money anywhere near the beach the Coastal Advisory Board should be consulted. 10 January 24, 2005 VI. Old Business: 3. County/City of Naples Breach Renourishment Update - Ron HoveU Received the State permit and waiting for Federal permit. In the State permit it requires building 1 acre artificial reef as mitigation for past and future beach renourishment projects. December 6th they held a conference call with good support from Representative Goodlette. Also held a conference call with DEP from Tallahassee and went over many of the issues. Some details changed on monitoring costs. VIII. New Business: 1. Election of Vice Chairman of TDC Floor was open for Vice Chairman. Mr. Hendel nominated Glenn Tucker for Vice Chairman. Second by Mr. Durkin. Being no other nominations, nominations were closed. Carried unanimously 5-0 for Mr. Tucker as Vice Chairman ofTDC. IX. Announcements - None X. Audience Input & Discussion - None XI. Council Discussion Mr. Hendel asked iftheir packets could be received earlier. Mr. Wert responded the earliest they can publish on the website and in the mail would be Wednesday. Mr. Tucker would like to discuss (if appropriate) the status of the Tigertail Bridge and TDC's role at their next meeting. XII. Next Meeting Date/Location - February 28, 2005; BCC Chambers *********** There being no further business for the good of the County, the meeting was adjourned by order of the Chair at 11 :49 AM. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Chairman Commissioner Fred W. Coyle 11 ~""--_....._._.