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HomeMy Public PortalAbout06-10-2020 Minutes TDA Regular Meeting Hillsborough Economic Development Planner Shannan Campbell 101 E. Orange St., PO Box 429, Hillsborough, NC 27278 919-296-9477 | shannan.campbell@hillsboroughnc.gov www.hillsboroughnc.gov | @HillsboroughGov www.visithillsboroughnc.com | @HillsboroughNC Tourism Development Authority Minutes | 1 of 4 Draft Minutes Tourism Development Authority (Remote) 5:30 p.m. June 10, 2020 Town of Hillsborough YouTube channel Present: Chair Matt Hughes, Mark Bateman and Dani Black Staff: Economic Development Planner Shannan Campbell and Planning Director Margaret Hauth 1. Call to order Chair Matt Hughes called the meeting to order at 5:35 p.m. Economic Development Planner Shannan Campbell confirmed the presence of a quorum. 2. Agenda changes and approval There were no changes. The agenda stood as presented. 3. Minutes review and approval Hughes noted there was a meeting in February. Campbell said those minutes would be ready for review at the next meeting along with the minutes from this meeting. 4. Action items A. Public hearing and adoption of the Fiscal Year 2020-2021 budget Campbell said she had not received comments or requests for the public to address the board. Motion: Member Dani Black moved to open the public hearing. Member Mark Bateman seconded. Vote: 3-0 There were no comments. Motion: Black moved to close the public hearing. Bateman seconded. Vote: 3-0 Campbell said the board needed to discuss and then vote on the budget and make a recommendation to the Board of Commissioners on approving it. Hughes acknowledged that Black had questions. Black said Campbell addressed her questions and she would have more to say about the audit contract for the following year. Bateman said money was approved by the board for the Hot Tin Roof late last year. He asked if it was included in the budget. Tourism Development Authority Minutes | 2 of 4 Campbell said that funds were allocated for the TDA to purchase a mobile stage in FY20, but there were not funds approved to give to Hot Tin Roof. If the funds were not used, it would roll into the fund balance. The board could choose to introduce it again in FY21. She indicated that it was not shown due to projected low revenues in FY21 from COVID-19. Bateman said he felt that a commissioner halted the stage project and that it was not legal to do. He said it is not right that the Tourism Development Authority voted to spend money, the Town board agreed, and then a commissioner stopped the purchase. Hughes said he was not aware of what Bateman was referring to. Bateman said Hot Tin Roof did not receive $45,000 for the mobile stage because of a commissioner’s email. Hughes asked Campbell to clarify. Campbell said Hot Tin Roof was never to be given $45,000; rather, the Tourism Development Authority allocated $40,000 to purchase a mobile stage and Hot Tin Roof had proposed to manage, on a contract basis, the rental and storage of the stage. During the contract negotiations, said Campbell, there was a greater community discussion on the noise ordinance. Campbell said she and Kim Tesoro, a member of the Tourism Board and a co-owner of Hot Tin Roof, discussed putting the stage purchase on hold while the noise ordinance got worked out. Bateman said someone above Campbell put pressure on her. Campbell said no, it was a staff decision. The stage purchase was temporarily put on hold for the noise discussion which was not resolved due to the COVID-19 shut down in March. The funds could be allocated for FY21 if the TDA and Hot Tin Roof want to proceed with the project. Bateman said Hot Tin Roof does not need the Tourism Development Authority mobile stage and will build its own stage. He feels like it is bad small-town politics that the mobile stage was not purchased. Campbell said the Tourism Development Authority could return to the mobile stage discussion. It’s a matter of where it would be stored and who would manage it if the Hot Tin Roof goes another direction and builds their own stage. Black said she wasn’t on the board when the stage was discussed and she does not understand what has transpired. She asked for more information about the contract. Campbell said the Tourism Development Authority had planned to purchase a mobile stage and described it. She explained that Hot Tin Roof had originally approached the Tourism Development Authority about partnering on the sponsorship for the construction of a stage at Hot Tin Roof. The Authority wanted a mobile stage that could be used by the community and wasn’t comfortable sponsoring a stage built at a specific business. Management at Hot Tin Roof said the bar could potentially store it and schedule the renting of a mobile stage. The bar would potentially keep the rental fees to pay for management of the stage but that hadn’t been finalized. Campbell said that during contract negotiations and figuring out details of purchasing such a stage, the Board of Commissioners started having a bigger discussion about noise issues involving the bar and a neighbor and it seemed prudent to put the mobile stage project on hold. Campbell said the Tourism Development Authority could decide to purchase the stage in FY21. The stage could be managed by any organization that had the capacity and know-how. Tourism Development Authority Minutes | 3 of 4 Black asked where the money is set aside in the budget. Campbell looked through the budget and realized that the $40,000 was not listed under special projects and partnerships for FY20 because the budgets for FY20 had been reduced for unpaid items. Hughes said he wanted to roll the $40,000 into the special projects and partnerships budget line for the next fiscal year instead of putting it back in the fund balance. He said that the Board of Commissioners authorized the Tourism Development Authority to move forward but wanted the ability to explore other management opportunities as well. Campbell said authorizing the funds did not finalize the stage idea or management contracts, which needed to be reviewed by the town attorney. She explained that the concept/idea and the funding amount was authorized but that didn’t complete everything needed to purchase the stage. Bateman said he thought the stage was halted by a Commissioner who is a nearby resident of Hot Tin Roof. Hughes suggested Bateman bring his comments and concerns to the Board of Commissioners. Campbell amended the draft FY21 budget to add $40,000 to the special projects and partnerships budget line. She noted that the $40,000 would need to be moved from the fund balance since revenues would likely not support it in FY21 due to COVID-19 and financial forecasting. She indicated that no funds had been spent in FY20 towards the stage project. Black asked if there is anything else missing that should be included or discussed. There was none. Motion: Black moved to approve the budget as amended. Bateman seconded. Vote: 2-1. Ayes: Hughes and Black. Nay: Bateman. B. FY20 audit preparation contract Campbell said Black had asked her about this contract. Campbell said every few years, the town seeks a new audit preparer because that’s good practice. One firm will be preparing the audit and another will be conducting the full audit, which is also good practice. The authority must review and approve the contracts. Campbell said the contracts are almost the same for the Tourism Board and the Board of Commissioners. She said the same firms are being used for the Tourism Board and Board of Commissioners. Black said $2,000 to prepare a financial statement for the audit seems like too much money. That’s almost 10% of expenditures for audit preparation and audit. Campbell said she will share that feedback with the town finance director. It may have something to do with the number of transactions in the account. This amount is less than will be paid by the Tourism Board and Board of Commissioners. Hughes said in future years he is interested in knowing if the Tourism Development Authority has to use the same auditor as the Board of Commissioners. Campbell said she was not sure and would ask Finance Director Daphna Schwartz. She also would ask if there is some cost savings by using the same firms. Tourism Development Authority Minutes | 4 of 4 The authority expressed interest in hearing about options for next year and if any cost savings could be realized. C. FY20 full audit contract Motion: Bateman moved to approve the preparation contract and the full audit contract. Black seconded. Vote: 3-0 5. Monthly reports A. Staff report and occupancy tax numbers Campbell reported that March was down about 23.87% for hotels and lodgers. She expected the collection for the year would total around $48,000 unless business picked up. Campbell shared a “Be a tourist in your own backyard” graphic campaign created by the Chapel Hill/Orange County Visitors Bureau to be advertised by the three municipalities in Orange County. She added that the bureau planned to also continue running “Just Do You” social media ads. Campbell shared that the Hillsborough Visitors Center would be running a “Find Your Calm” campaign that would highlight Hillsborough’s outdoor recreation, arts and live music, pubs (when they can open), shopping, dining, and history. She reported that the Visitors Center also was running an ad on WUNC inviting people back to Hillsborough. There was also a possibility of publishing an ad in Taste: The Triangle’s Ultimate Food Guide and the Chapel Hill and Durham Visitors and Relocation Guides. Hughes said he did not think Phase 3 would begin soon in North Carolina. Black wondered if Taste could be delivered to Airbnbs and hotels. Campbell said she thinks it is, but she can also ask for a box of them to hand out. There was a brief discussion about giving other materials to owners of Airbnbs and the best way to contact them. B. Board comments There was none. 6. Adjournment Motion: Black adjourned the meeting at 6:21 p.m. Bateman seconded. Vote: 3-0