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TDC Minutes 06/01/2009 Subcommittee June 1,2009 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE MEETING Naples, Florida, June 1, 2009 LET IT BE REMEMBERED, that Collier County Tourist Development Council Subcommittee, in and for the County of Collier, having conducted business herein, met on this date at 10:00 AM in a REGULAR SESSION at the Collier County Convention and Visitors Bureau Office, 3050 North Horseshoe Drive, Suite 215 Naples, Florida with the Following members present: Chairman: Murray H. Hendel Susan Becker Clark Hill Robert Miller ALSO PRESENT: Jack Wert, Tourism Director Colleen Greene, Assistant County Attorney Kelly Green, Administrative Assistant 1 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE MEETING AGENDA JUNE 1,2009 10:00 AM -12:00 PM I. CALL TO ORDER - CHAIRMAN HENDEL II. CHANGES/APPROVAL OF AGENDA III. APPROV AL OF SUBCOMMITTEE MEETING MINUTES 1. *Regular Meeting May 1, 2009 2. *Regular Meeting May 5, 2009 IV. NEW BUSINESS 1. Beach Funding Comparison Study Results 2. Carbon Offset Discussion 3. Visitor Map Consolidation V. SUBCOMMITTEE DISCUSSION 1. Subcommittee Recommendation to TDC VI. AUDIENCE INPUT VII. NEXT MEETING DATE/LOCATION -TBD VIII. ADJOURNMENT Collier County Government Communication & Customer Relations Department 3301 East Tamiami Trail (239) 252-8848 Naples, FL 34112 www.colliereov.net May 19, 2009 FOR 1M MEDIA TE RELEASE NOTICE OF PUBLIC MEETING TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE MEETING COLLIER COUNTY, FLORIDA MONDAY, JUNE 1,2009 10 A.M. -12 P.M. The Tourist Development Council Subcommittee as a subcommittee of the Tourist Development Council Advisory Board will meet Monday, June 1 st at 10 a.m. in the Tourism Department conference room, located at 3050 Horseshoe Drive North, Suite 218, Naples. Two or more members of the Tourist Development Council may be present and may participate at the meeting. The subject matter of this meeting may be a future item for discussion and action at a Tourist Development Council Meeting. Two or more members of the Coastal Advisory Committee may be present and may participate at the meeting. The subject matter of this meeting may be a future item for discussion and action at a Coastal Advisory Committee meeting. The meeting is open to the public. 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 E. Tamiami Trail, Naples, FL 34112, (239) 252-8380; assisted listening devices for the hearing impaired are available in the Board of County Commissioners Office. For more information, call Director Jack Wert in the Tourism Department at 252-2384. -End- Kelly Green Tourist Development Tax Coordinator Naples, Marco Island, Everglades Convention & Visitors Bureau 3050 Horseshoe Drive North, Ste 218 Naples, FL 34104 (239) 252-2384; (239) 252-2404 fax KellvGreen@collierqov.net Discover Florida's Last Paradise Naples, Marco Island, Everglades City June 1, 2009 I. CALL TO ORDER - Chairman Hendel Chairman Hendel called the meeting to order 10:00 a.m. A quorum was present. Michelle Klinowski, Greater Naples Chamber of Commerce and Cedar Hames, Paradise Advertising were present. II. CHANGES/APPROVAL OF AGENDA There were no changes to the Agenda. III. APPROVAL OF SUBCOMMITTEE MEETING MINUTES 1. Regular Meeting May 1, 2009 Mr. Hill moved to approve the minutes of the May 1,2009 meeting. Second by Ms. Becker. Carried unanimously 4-0. 2. Regular Meeting May 5, 2009 Mr. Miller moved to approve the minutes of the May 5,2009 meeting. Second by Mr. Hill. Carried unanimously 4-0. IV. NEW BUSINESS Chairman Hendel provided an overview of the discussions to date highlighting: . The Subcommittee should consider a major reset in the area of tourism marketing and funding for Collier County and Naples. . All public speakers are in favor of increasing advertising funding and advertising "year round." . Hoteliers are not in favor of raising the Tourist Tax, rather favor re- allocations or finding alternative funding for Beach Maintenance and Facilities. . The method of collecting Tourist Taxes for short term single family rentals should be examined for possible increases in revenues. · Question: Should the Tourist Tax rate be increased from 4% to 5%? · Question: Where can funds be obtained to increase expenditures for advertising and promotions? Mr. Hill noted throughout the discussions the underlying tone is Hoteliers recognize how critical beaches are to the economic vitality of the region and support Beach Maintenance and Facilities. The underlying position is funding for maintaining Beaches and Facilities should continue, however consideration should be given in identifying alternatives and evaluate how other Counties fund the activity. The Hotel Industry generates the revenue for the Tourist Development Council Funding. They are concerned the Program has expanded from its original purpose as directed by the voters of funding "Beach Maintenance and Tourism Advertising" to funding other activities intended to be funded by the General Fund (Operation of County Museums, etc.) 2 June 1,2009 Discussion ensued if further Subcommittees may be required to analyze the Subcommittees recommendations forwarded to the TDC. In addition, through what mechanisms, could these Subcommittees be formed? Colleen Greene, Assistant County Attorney stated creation of an Advisory Committee comprised ofTDC members and general public would require approval by the Board of County Commissioners (BCC). A Subcommittee compromised of TDC members may be created by the TDC. 1. Beach Funding Comparison Study Results Jack Wert, Tourism Director provided the document "Beach Funding Research Report" which outlined how other Counties fund Beach Re-nourishment. It was noted: . Miami Dade County utilizes a tax assessment per home to raise money targeted for Beach Renourishment. . Some Counties fund the portions of the activity out of the General Fund. · Collier County does not utilize General Funds for Beach Re- nourishment. . Some Collier County Beach Park Facilities are funded by the General Fund through the Parks and Recreation budget. Jack Wert noted: . Beach Re-nourishment and Advertising costs have risen dramatically in the past 10 years creating a negative impact on the CVB (Convention & Visitors Bureau) budget. . The key is leveraging more sources for Beach Maintenance. . In recent years Gary McAlpin, Coastal Zone Management Director has increased the funds received from State and Federal Funds (FEMA Grants, etc.). . The County started later than other Counties and is in a "standing in line" status for many funds (other than FEMA funds). . FEMA funds are awarded "after storm damage has occurred," not for on-going Beach Re-nourishment or Maintenance. Discussion ensued on the status of Reserve Funds in the Beach Maintenance and Beach Park Facilities budget that was originally intended for obtaining Beach Access and funding Current/Future Capital Projects. It was noted Beach Access purchases have become economically difficult over the past years and the BCC is now more proactive in obtaining access from developers during the permit process. Question: Should the existing and future funds allocated to this account be temporarily or permanently re-directed to Tourism Marketing? Question: Should the County consider the Miami Dade County practice of a special assessment on homeowners for Beach Re-nourishment? 3 June 1,2009 It was noted given the current economic times it could be difficult to enact this requirement. However, it should be a future consideration. 2. Carbon Offset Discussion Jack Wert noted he has investigated the issue, and it may not be applicable to Tourist Development Council funding. 3. Visitor Map Consolidation Jack Wert has discussed the feasibility of an "Official Map" however the Chamber and Private Organizations have maps for different purposes. One consideration is attempting to coordinate artwork with the various publishers. Mr. Miller expressed concern the area Chambers of Commerce are not working in conjunction with each other and suggested coordination be increased through bimonthly meetings. The area Chambers of Commerce and its relation with the Citizens and Visitors Bureau (CVB) was discussed. Question: Should a Subcommittee be formed to analyze the feasibility of consolidating the areas Visitors Centers and should all Tourist activities be under the auspices of the CVB? This may assist in promoting consistent efforts in the area of collection of data, issuing of publications, advertising, etc. Jack Wert noted the CVB' s mission is to promote the area outside the County and the Chamber's mission is to service the visitors upon arrival. Michelle Klinowski, Greater Naples Chamber of Commerce expressed concern in closing certain Visitor Centers. Consolidating them would have a negative impact on area businesses. The practice of utilizing Tourist Development Council's (TDC) funds for the Operations of County Museums was also discussed. Question: Should the funding for County Museums be altered? Jack Wert noted utilizing TDC funds for County Museums is authorized through the State Statute. The BCC approved the TDC expenditure in 1998 to assist in balancing the budget. There are two TDC categories of funding for Museums: · C-1 - County Museums where in accordance with the Ordinance, 22% of the first 2 percent of the Tax is allocated to County Museums. . C-2 - Non-County Museums It was noted Non-County Museums receive TDC funds through Grant Requests which is targeted for advertising and promotions. 4 "-"-'~'_""'"""""'.;""",_'..~~,"_~m".."',,~,,............<>..,....,---;,,,....",__..._,__"'_._..>_,.,,"'"__.,,.-,,',.w__..~.'A.'~'_'""_'''''''_~_'__''''.'''_,m'___.'','~,,_~_,'''''"' ...._.~"_~._._.....<".._'.K"......__.._'__.._,___ June 1,2009 Discussion occurred on the practice of allocating the interest earned from Tourist Development Funds to the General Fund. Question: Should interest earned from TDC funds be allocated to the TDC budget as opposed to the General Fund? V. SUBCOMMITTEE DISCUSSION 1. Subcommittee Recommendations to the TDC The Subcommittee began formulating the following recommendations with the following discussed: 1. Recommend the Resolution enabling the annual $500,000 expenditure in Category A - "Beach Park Facilities and Beach Access Annual Reserve" (in Fund 183) be terminated with the repeated annual expenditure and the existing balance of the Reserve be re-directed to Tourist Marketing. 2. Recommend Staff investigate means to increase collections from short term single family rentals including: · Meet with the County Tax Collector for input and determine the necessary steps and resources required to increase collections. . Meet with the Lee County Tax Collector for input on their operations. 3. Possible recommendations for increased coordination for the area Chambers of Commerce and/or all Tourist Development activities in the area be under the auspices of the CVB. Also, coordinating publications, consolidating Visitor Centers, etc. At this point, no recommendation was formulated. Cedar Hames, Paradise Advertising, TDC Consultant and member of the Greater Naples Chamber of Commerce Board of Directors stated he could participate in review of TDC and Chamber of Commerce publications and marketing efforts for elimination of duplicated efforts. Jack Wert noted The Naples, Marco Island, Everglades Convention and Visitors Bureau is the "Official Tourism Organization" authorized by the BCC for marketing the destination worldwide. The CVB and the area Chambers do coordinate in a variety of activities. A consolidation of efforts may be beneficial, but would require additional Staffing and Funding. Mr. Miller left at 11 :46AM Speakers Doug Fee, Resident/Accountant requested clarification on the category the Subcommittee is recommending for the re-direction of Reserve funds to advertising. He recommended the Beach and Boating Report be updated. In addition, he noted most of his clients are not aware of the requirements of the Tourist Tax and public awareness be increased. He noted the 5th cent of a Tourist Tax may only be utilized for advertising and promotion, construction of a major league sports facility or financing of a convention center. A referendum should be brought to the citizens 5 '-'-'"""'"-'~';~"'-'-""'~''''''"''"'-'''-'''''--'--<'_"-''''''''';""'_"~'"_;__'_"",_____...__,,"._"_,'''''O'''~''"'''''_'<,<''A__''''__,__,,_,'~_^'_.,...,".~,"",_""m'''__'~ June 1, 2009 outlining the allowed/proposed uses of the 5th cent to determine if the voters would support the increase. Jack Wert reviewed the "Tourist Development Category "A" Funding Policy (Approved by the Board of County Commissioners 11-1-05)" which empowers a Catastrophic Reserve Fund within the budget and Fund 183 - "Beach Park Facilities" which requires a Reserve of$.5M annually. Fund 183 is the category involved in the recommendation. Garrett F.X. Beyrent, Real Estate Developer requested the Subcommittee/CVB consider supporting the construction of a stadium for a Major League Sports Team. He submitted a plan prepared by Davidson Engineering "Conceptual Master Plan" for an "1-75 Stadium" to be located adjacent to Golden Gate High School. Chairman Hendel noted it is a favorable idea, but is premature for this venue. The formulation of recommendations continued: 4. Recommended the funding allocated to County Museums be utilized for Promotions (as much as possible). 5. Recommended interest earned on the Tourist Development Funds be allocated to the TDC budget, not the General Fund. 6. Recommended not to increase the Tourist Tax rate from 4% - 5%. The Subcommittee wishes to meet on June 15, 2009 to review and finalize the recommendations to the Tourist Development Council. VI. NEXT MEETING DATE/LOCATION 10:00 AM June 15, 2009 - Collier County Convention and Visitors Bureau Office, 3050 North Horseshoe Drive, Naples, FL There being no further business for the good of the County, the meeting was adjourned by order of the chair at 12:20 P.M. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE Murray Hendel, Chairman These minutes approved by the Board/Committee on as presented or as amended 6