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TDC Minutes 05/21/2024 May 21, 2024 1 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL MEETING Naples, Florida, May 21, 2024 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 a.m. in REGULAR SESSION at 3299 Tamiami Trail East, 3rd Floor, Naples, Florida, with the following members present: Commissioner Rick LoCastro, Chairman Clark Hill, Vice Chairman Jared Grifoni, Councilor Susan Becker Nancy Kerns Edward (Ski) Olesky (arrived 9:15 a.m.) Michael McComas Bill Kramer Laura Radler ALSO PRESENT: Jay Tusa, Tourism Director Sandra Rios, CVB PR & Communications Manager Colleen Greene, Attorney, Collier County Buzzy Ford, Tourism James Brendle, Project Director for Paradise Coast, Downs & St. Germain Research Cyndy Murrieta, Vice President of Media, Paradise Advertising Erin Murphy, Senior Account Executive, Lou Hammond Group Enriqueta Balandra, Senior Project Manager, Miles Partnership Amanda Townsend, Director, Collier County Museums Anyone who needs a verbatim record of the meeting may request a video recording from the Collier County Communications & Customer Relations Department or view it online. May 21, 2024 2 1. Call to Order 2. Pledge of Allegiance: Led by Gary Asztalos, Lieutenant Commander of the U.S. Navy and with the VSW Honor Guard. 3. Roll Call: We have a quorum 4. Agenda and Minutes: A. Changes and Approval of Today’s Agenda Nancy Kerns made a motion to approve the agenda. The motion was seconded by Clark Hill. The motion passed unanimously 9-0. B. Approval of the April 16, 2024, Meeting Minutes Susan Becker made a motion to approve the minutes. The motion was seconded by Clark Hill. The motion passed unanimously 9-0. 5. Presentations: Laura Radler, General Manager at the Edgewater Beach Hotel, gave a welcoming statement. 1. TDT Tax Collection Report: Jay Tusa: The March collection was $6,868,217. The year to date we are at $23,658,835. • Jay Tusa: This week is National Travel and Tourism Week and I wanted to take a moment to say thank you to everybody who works in the hospitality industry. And I wanted to thank our advisory committee and the Board of County Commissioners for all they do, and the benefits that come out of tourism for Collier County. It obviously is a very impactful industry to us, and we have a few videos that we'd like to show this morning that demonstrate the importance of tourism in our community. Video Presentation • Commissioner LoCastro asked what we were doing with these commercials – are they on the web, TV? How are you utilizing them? • Jay Tusa: We are promoting those via social media channels. You may have seen them on LinkedIn. • Commissioner LoCastro: The goal of having hearty discussion is for us to then be disciples of what we have heard in here. Spreading the word and saying the reason that you know we get such an influx of funds and taxation is because of our tourism and it does so many great things. But, for example, we don't have the zoo just for the tourists and then we lock it down in the off season. People who live here get to enjoy activities because they are open year- round. This board, with these discussions, is the nucleus of the tourism industry in Collier County. If we didn't have tourism or snowbirds, we wouldn't have the funds to restore our beaches after a hurricane among other things. The average citizen isn't aware. I get notes from people that say they came here 25 years ago to enjoy beautiful unspoiled Florida, and you have ruined it May 21, 2024 3 and turned it into Miami and need to put a lock on the gate. Those aren't realistic types of conversations. There is a lot in the news about the airport and you know that is also part of tourism. After Hurricane Ian, we brought in the Army Corps of Engineers to do an analysis to tell us, if money was no object, how could we better protect our coastline and this area? The Army Corps comes with no money and their job is to hypothetically and realistically show us some different things and have it run the gamut and flush out options. When we saw the drawings, it would take a 50-foot concrete wall and a big bunch of giant gates that look like the Panama Canal to protect this one area. The takeaway for the Commissioners was we are not doing that because it would cost a trillion dollars. But what the Army Corps did tell us is that our area is much more vulnerable than we thought and may be an area we need to evacuate. The airport falls under the city of Naples. I was very disappointed with some of the things that I read on social media and in the news where it made it sound like these are the four options of where the new airport is going to go. In the fine print it said it would cost over a billion dollars. If you think that's imminent, you need to sharpen your pencil a little bit more. We all travel in circles where people talk about a lot of things to do with tourism and spending money. So please be a disciple of that. Picking up an airport and just burying it out in Immokalee behind a bunch of Redwood trees is a long way off if ever. • Bill Kramer We are not moving the airport tomorrow. The Airport Authority paid for that analysis done by a consulting company. This didn't come out of any tax dollars. Sometimes for people to stop being irrational, you must show them what it might look like to do what they think they want to happen. And part of that process would have to be exploring; let's stop talking about moving it. There's no moving this amenity that is unique and a magnificent amenity in the city of Naples. You can kill it and build something entirely different somewhere else. But there is no moving an airport that is that type of amenity. It would become some regional hub for something or whatever, and the feasibility study sometimes must be done to show people who are rational that it's not feasible. Those that are not rational will never stop fussing about it. A lot of the things that we really love and enjoy about our community are made possible by tourism. And those that fuss about it, invite them to go hang out in Miami for a while. 6. Consent Agenda 7. New Business: Coastal Zone Management A1. Recommendation to approve Tourist Development Tax Fund 1105 funding in the amount of $350,000 for maintenance of Tigertail Lagoon/Sand Dollar Island Ecosystem Restoration Project, the necessary budget amendment and make a finding that this expenditure promotes tourism. Justin Martin, Public Works Director, City of Marco Island. Also in attendance is Mohamed Dabees, Vice President of Humiston & Moore Engineers PowerPoint Presentation May 21, 2024 4 • Project in the northern end of Marco Island. • An interlocal agreement to share the costs and the maintenance • Project is being highlighted as a case study in the US Army Corps of Engineers, Engineering with Nature Program • The city and the county want to protect their investment by doing smaller maintenance every two years • The project was completed last year; total cost was $4.2M – the City of Marco Island (a special tax district) funded $3.2M and a change order of $921,000 from this council • FEMA reimbursement eligibility requires regular maintenance. If we don’t maintain this area, we would not be eligible for any FEMA reimbursement funds in the case of a hurricane. • American Cruise Lines will begin stopping in Marco Island. Jared Grifoni made a motion to approve. The motion was seconded by Commissioner LoCastro. The motion passed unanimously 9-0. Justin Martin: This is a request to cover only the maintenance component that's required by the permit. It does not cover catastrophic events, hurricanes and damage from those. Those are separate. This is a permit compliance for maintenance that is required and rather than letting it go and doing it every five years and having to spend a lot more money, you do a maintenance on a biannual basis, and can keep it to small little projects and maintain it. Commissioner LoCastro asked Mr. Martin to send him the slides. A2. Recommendation to approve a Tourist Development Council Grant request from the City of Naples for professional services provided by Adept Public Relations LLC, for a Tourism Impact Study for the Naples Gulf of Mexico Beach Stormwater Outfall Pipe Removal & Water Quality Project in the amount of $44,879 and make a finding that this expenditure promotes tourism. Bob Middleton, Public Works Director, City of Naples The City of Naples is currently experiencing various challenges with the stormwater management drainage system in the Basin 2 area. The Basin 2 area is located along Gulf Shore Blvd. If you're familiar with some of the streets, South Shore Blvd. extends the full length parallel to the Gulf of Mexico. The specific piece I'm talking about is North 2nd Ave. south all the way up just north of Beach Club Resort construction. The existing system is a gravity flow-based system. As rainfall precipitation occurs, that rainwater is collected in a stormwater system and flows out through eight beach outfalls by gravity. The issues with that are since it's a gravity-based system, and if it is high tide, the flow of the water drains from the street. So not only being a physical impediment to the stormwater management system, there's also an aesthetic issue with those beach outfalls. I don't have a presentation with me at this point, but when we come back and hopefully the board approves this first, I will have a more detailed explanation of what that beach outfall project is. May 21, 2024 5 Our proposal is to replace the existing gravity system with a mechanical system that will pump collected stormwater through two separate pumps stations. There is a north pump station and a south pump station. As that water is collected and flows to that pump station, it will pump that water 1500 feet out into the Gulf of Mexico through sub aqueous pipes. As part of that construction, when the project is completed, those eight beach outfalls will be removed from the beach. The project will not only improve water quality but will enhance the visible appeal of the beaches, making them more attractive to tourism, an anticipated substantial aesthetic enhancement of the beachfront by removing those. The city of Naples is submitting this stormwater outfall pipe removal and water quality project for review by the Tourist Development Council. The city is requesting TDC funds for a professional tourism impact statement to demonstrate the project’s benefits to tourism. This analysis is a crucial step required for further consideration for TDC funding consistent with the attached quote dated April 17, 2024, by Adept Public Relations LLC for a funding request of $44,879. Allocating TDC funding for this project is an investment in both the infrastructure for the city in Naples and the tourism industry. The Naples Beach Restoration Water Quality Improvement Project will have positive effects through increasing visitor satisfaction and enhanced beach experience, and sustained appeal of Naples as a top tourism destination. We are hopeful that TDC will support and authorize the funding for this project. Clark Hill: Is this investment in municipal infrastructure? And if it is, is that proper use of funds for the tourist development tax? Colleen Greene: This is the first time that we have an application of this kind for a major capital improvement from the city of Naples, or the city of Marco for that matter, and there is a provision in the tourist development statute that allows for this type of expenditure for a major capital improvement, including a capital improvement for the purpose of drainage, for example. And this Florida Statute for tourism requires this independent study to be conducted first, and the study to make a finding as to whether the expenditure will directly and primarily promote tourism. And if we have the right findings from the study, the city will come back for additional funding for the major capital project, so it is authorized by the Florida Statute. Clark Hill: My question was not whether it was authorized, but whether if we approve this investment in the infrastructure of a municipality, what's next? I'm concerned about the focus on tourism. I'm concerned about the maintenance of the different differential between Miami and Naples and how we kind of fence that with our advertising and marketing. I don't want us to look at these funds and think that this is ever-increasing and it's going to going to be there forever. We have a lot of work to do to get customers to our luxury destination. Another question, has the Coastal Advisory Committee reviewed this? Bob Middleton: I have not presented it to them, but we do have members on that board. Clark Hill: Typically, when there is a large expense that we are asked to approve, the CAC has reviewed it. That was just a matter of policy. I know it needs to happen. I know the negative impact red tide has on tourism. I don't think it is the city of Naples’ responsibility or May 21, 2024 6 fault. Will this project increase the per minute volume flow in case there is potential flooding? Bob Middleton: This system is designed to maintain flow of a 25-year flood storm event. It is not designed to handle storm surge, but what I will add is a resiliency element to it because Gulf Shore Blvd. will be raised anywhere from six inches to just over a foot in certain areas. The major key factor for that system is to pump more water and increase water quality. The older system still grows bacteria. But the other part of the bacterial removal is the nutrient removal and I included information in your packet of the design elements for improving water quality. Clark Hill: Do you have a timeline for Barefoot Beach when we are going to see some improvements to the infrastructure, to the buildings, parking and just general appearance? Andy Miller: I can't answer for the park facilities. What I can tell you is that we are mobilizing our beach rake at this very moment to get rid of some of the red drift algae that has formed there in the past several days which has gotten out of hand to the point where Coastal Zone typically would not maintain that beach. But it is to the point where the red drift is so bad that we are mobilizing our tractors to clean it before Memorial Day. I would like to tell you a bit of back-story on the outfall pipe project. This council knows that TDC funds pay for a lot of the beach renourishment projects we do, but we also get money from FDEP to the tune of about 42 percent. Before I became with coastal zone, FDEP mandated that the city incorporate this outfall removal project into their Stormwater Master Plan obviously intending to see that project through. So, this is not only for the county because those monies for beach renourishment along those cities in Naples is a tidy sum, and we don't want to risk losing that because of losing that FDEP. Michael McComas: What is the depth of the outflow pipe from a navigational point? Bob Middleton: They are both in about 15 feet of water. Laura Radler: I spoke to the gentleman that is conducting the study right now. He gave a lot more information about the impacts of red tide. I understand this is just to look at the tourism impact. I would say that this would be a good starting point. Nobody is saying that we are investing money at this point, but we all know red tide hits the city of Naples; Collier County is affected all the way up and down the coast. I am curious, though, if the county has any outfalls like this. I know that Sarasota has done this and has had positive results. Maybe as we explore this, we can have them come down and share their findings. Susan Becker: I would like to add that this project has been a long time in coming and is needed for the city of Naples and to promote tourism, so I move to approve. The motion was seconded by Jared Grifoni. May 21, 2024 7 Commissioner LoCastro: Are we giving someone money that really should come out of their normal budget? You can look at this as more of a utility water issue. If we don’t approve this money, would the city, because this is important, immediately fund the $44,000 and pick up where we're leaving off. So, the request is coming in first to see if we could augment the city's budget. Whether we give the money or not, the city is going to move forward. Do you have any depth on that? Bob Middleton: To give you more details on the funding of this project, we have a contractor that is a contract manager at risk form of construction. They have come in and done the initial preconstruction phase, which is to give us a guaranteed maximum price which is $86M to do the project. We have been reaching out to the state legislature. We have received several series of grants from them, the latest is a $25M grant that has been approved by the legislature that is now sitting on the governor's desk and hopefully he will sign off on that. The city's intention is to increase our revenues through our user fees through our stormwater system that will be happening to pay off the debt for this. That will be an enormous amount of debt that the city will incur because we don't have the funding in place in the reserve funds to do the full $86M. We have come to TDC requesting funds because we feel that there is an avenue for improved tourism by removing the outfall pipes. Commissioner LoCastro: Approving the money for the study doesn't mean we are automatically approving anything going forward. My concern is you approve the money for the study and the study comes back and you need to do a full-blown project and then we decide TDC money is not appropriate for a full-blown project. We are pursuing other avenues and that's what I wanted to hear. All in favor – aye. (Disunited vote 8-1: Clark Hill – nay) B. Recommendation to award Request for Proposal (“RFP”) No. 23-8180, “Tourism Fulfillment Services,” to Paralegal Consultants LLC d/b/a as Prism Consulting for $54,000 plus reimbursable expenditures and make a finding that the related expenditure promotes tourism. John Melleky, Arts and Culture Manager for the Tourism Division This is a warehouse and a way to have fulfillment for our office for our Visitor Guides, and to store some of our trade show materials that then can be shipped out to different trade shows. Susan Becker made a motion to approve. The motion was seconded by Clark Hill. The motion passed unanimously 9-0. 8. Old Business None. 9. Marketing Partner Reports: a. James Brendle, Project Director for Paradise Coast, Downs & St. Germain Research PowerPoint Presentation presented. May 21, 2024 8 Clark Hill requested Mr. Brendle to include Smith Travel report findings to show year to date. b. Cyndy Murrieta, Vice President of Media, Paradise Advertising PowerPoint Presentation presented. c. Erin Murphy, Senior Account Executive, Lou Hammond Group PowerPoint Presentation presented. d. Enriqueta Balandra, Senior Project Manager, Miles Partnership PowerPoint Presentation presented. e. Amanda Townsend, Director of Collier County Museums PowerPoint Presentation presented. 10. Tourism Staff Reports: Included in your packet for review. 11. Council Member Discussion 12. Next Scheduled Meeting – June 18, 2024 Saturday, June 15, 10:00 a.m., Paradise Coast Sports Complex – the USL Professional Soccer Team is going to announce the name, colors, and crests. A big event is planned. 13. Adjournment: Meeting adjourned at 11:18 a.m. There being no further business for the good of the County, the meeting was adjourned by order of the chairman at 11:18 a.m. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL _________________________________ Commissioner Rick LoCastro, Chairman These minutes were approved by the Chairman on _________________, (choose one) as presented, _______ or as amended ___________.