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HomeMy Public PortalAbout05-15-2023 Minutes Tourism Board Regular Meeting 101 E. Orange St., PO Box 429, Hillsborough, NC 27278 919-732-1270 | www.hillsboroughnc.gov | @HillsboroughGov www.visithillsboroughnc.com | @HillsboroughNC TOURISM BOARD MINUTES | 1 of 5 Minutes TOURISM BOARD Regular meeting 5:30 p.m. May 15, 2023 Board Meeting Room of Town Hall Annex, 105 E. Corbin St. Present: Chair and Commissioner Matt Hughes, Vice Chair Victoria Pace and members Rainbow Cabbage, Barney Caton, Scott Czechlewski, Barry Hupp, Smita Patel and Eryk Pruitt Absent: Megan Kimball Staff: Planning and Economic Development Manager Shannan Campbell 1. Call to order Chair and Commissioner Matt Hughes called the meeting to order at 5:35 p.m. Planning and Economic Development Manager Shannan Campbell called the roll and confirmed the presence of a quorum. 2. Agenda changes and approval Campbell noted that the board has several new members and proposed the board start with staff recommendations for the budget. Motion: Vice Chair Victoria Pace moved to approve the amended agenda as recommended by staff. Member Barry Hupp seconded. Vote: 7-0. Ayes: Members Rainbow Cabbage, Barney Caton, Scott Czechlewski, Hughes, Hupp, Pace and Eryk Pruitt 3. Minutes review and approval None (April 17, 2023 minutes will be reviewed at next meeting) 4. Discussion/Action Items A. Staff budget recommendation presentation Campbell noted that the board had received several grant requests and that prepared food and beverage tax revenue in Fiscal Year 2024 is forecast to be $425,000. She noted that there is a healthy fund balance of $285,000. Campbell recommended that the board fund the $5,000 increase requested by the Hillsborough Arts Council; fund the request for the Hillsborough Visitors Center, $10,000 of which will support the Occaneechi Village replica site; and fund the $10,000 requested by the Chamber of Commerce for the holiday parade and tree lighting, which draws a crowd of 3,000 to 5,000 people annually. Member Smita Patel arrived at 5:40 p.m. Campbell noted that the Historic Hillsborough Commission, which owns and operates the Burwell School Historic Site, had asked for a substantial increase. She said the Tourism Board could fund $15,000 of the TOURISM BOARD MINUTES | 2 of 5 request and then reevaluate if it was able to fund the remaining ask in January 2024. It could also fund $10,000 of the Orange County Historical Museum’s requested increase and reevaluate funding the remainder in January as well. Campbell also proposed reducing town tourism staff support funding from $38,000 to $26,000 to realize cost savings and recognize that the Town is using more staff time now than in prior years. She noted that the two top scoring grant applications requested $20,000; the board could fund both or just one. Campbell also recommended funding one or both of the Revolutionary War trail signs, which would put the town on the trail map as a destination for the Revolutionary War, and the kayak rental proposal, which would offer a new recreational opportunity at King’s Highway Park and would involve profit sharing with the rental company. Pace asked if the money for these requests was coming from the same funds as the grants the board scored. Campbell explained there are three pots of money: one for contracts, one for grants, and one for special projects and partnerships. She said the board could choose to not fully fund increases to the museum and Burwell school, reserving the rest of the increases for later evaluation; not fund the lower scoring grant requests; not fund one Revolutionary War trail sign; and not fund any special project partnerships for the rest of year. Campbell explained the $285,296 fund balance is like a savings account and is based on the FY21 audit. She said the board has tried to keep a year’s operating expenses in the fund balance in the event of emergency such as COVID or a natural disaster that shutters businesses for a period of time. There was discussion about the practice of tapping into the fund balance in the past few years. Hughes noted the board used money from the fund balance last year to fund contract requests believing they were good investments in contract partners but would not be permanent. He said this funding may need to be decreased. Campbell said the board could approve a budget, evaluate revenues later, and then make a budget amendments if needed. Hughes noted that once the 2022 audit is completed, revenues probably will be higher than projected. He suggested that the board move on to grant scores and partner requests and then return to the budget discussion. Campbell reported that grant requests for the Solstice Lantern Walk, Snow Approach Foundation gala, rededication ceremony for the Eagle Lodge, and Paradox Opera received the board’s highest scores. Cabbage shared that she and one other member didn’t have time to score requests, so total scores may not be complete. Cabbage asked about the Solstice Lantern Walk request. Mollie Thomas, executive director of the Hillsborough Arts Council, explained that the council received $7,000 last year for the 2022 walk and is requesting $10,000 for the 2023 walk to offset the cost of hosting the event. The walk first received grant money this fiscal year and only will be eligible for funding in FY24 because of the two-year limit for funding special projects. Thomas estimated that a third of council staff time is spent on the lantern walk, a third on Last Fridays, and a third on the Handmade Parade. Cabbage noted that the plaques for the Eagle Lodge rededication would last for decades. Pace expressed support for partially funding the plaques. Campbell noted that it was the policy of the board to fully fund or not fund grant requests. TOURISM BOARD MINUTES | 3 of 5 The grant request from the Snow Approach Foundation was discussed. There was some question whether a gala event in Hillsborough following the group’s conference in Cary would draw a large crowd and generate much tourism even though a nationally known figure would be attending the event. Hughes noted that the list of approved vendors for the gala site, The Cloth Mill, included no Hillsborough-based vendors. Some members felt this proposal scored high partly because it was well written and that the board may want to revisit its scoring rubric next year. Cabbage indicated that she would not have scored this high because there is not a clear link between the application and growing tourism. Campbell said the budget would be finalized before the public hearing and the board members could prioritize the grant projects as they saw fit. There was discussion of the opera proposal. Several members said the proposal was poorly written and lacking details. Members noted that the group’s website was still under construction, and it appeared that the opera had yet to be written. Motion: Cabbage moved to fund the Solstice Lantern Walk and the Eagle Lodge bicentennial dedication. Pruitt seconded. Votes: 8-0 Ayes: Members Cabbage, Caton, Czechlewski, Hughes, Hupp, Pace, Patel and Pruitt Hughes summarized staff recommendations for funding increases requested by the Burwell School Historic Site, Orange County Historical Museum, Hillsborough Arts Council and The Alliance for Historic Hillsborough. He noted that funding requests have almost tripled for some contract partners over the past few years. Czechlewski announced that he would need to recuse himself because the Chamber was being considered as a future contract partner to receive funding and that is his employer. The board agreed. Pace pointed out that not funding a third grant request would free up $6,500. Hughes suggested that money could go toward funding two interpretive Revolutionary War signs. Cabbage expressed support for funding two signs and noted they would last a long time. Asked about the signs’ location, Campbell explained the location and text of signs would be determined with partners. Hughes suggested that the board finish discussing contract partners and then take up the request for interpretive signs. Caton suggested an alternative: give the school and the museum the same percentage increase to avoid implying favoritism. Campbell explained that the two requests are hard to break up because they are for fixed staffing costs. Hughes and Pace recommended that the board partially fund the increase requests from the school and museum and reevaluate later. When partners were invited to respond, Sharon Ringwalt of the Burwell School noted it would be problematic to advertise a staff position for 30 hours a week, hire someone, but then reduce the hours because of funding shortages. Campbell asked the board to consider the consequences if it fully funds all contract partner requests for this year, but can’t continue funding them next year. Caton pointed out that funding staff helps the school and museum become more self-sustaining. Hughes noted the risks and suggested the board revisit the two requests in January. TOURISM BOARD MINUTES | 4 of 5 Motion: Caton moved that the requested increases for the Burwell School and Orange County Historical Museum be funded at 50%. There was no second. Motion: Pace moved to approve the contract partner increase requests as presented by staff and revisit in January to see if more funding could be made available. Hupp seconded. Vote: 4-2. Ayes: Hupp, Pace, Patel and Pruitt. Nays: Cabbage and Caton. Hughes declined to vote because he serves on the boards of both the museum and Burwell School. D. Draft working FY24 budget review Cabbage asked about insurance coverage and emergency services for the kayak rental program. Campbell explained that the rental company carries liability insurance. It was also noted that the fire department would respond to any accidents. Campbell explained the one-time activation fee of $6,000 and annual services agreement charge of $3,000. The town would receive 25% of revenues, which would go to the Tourism Board. Motion: Caton moved to approve the $6,000 request for interpretive signs and $9,000 for the kayak pilot program. Pace seconded. Votes: 8-0 Ayes: Cabbage, Caton, Czechlewski, Hughes, Hupp, Pace, Patel and Pruitt E. Set budget public hearing date/time The hearing was scheduled for 5:30 p.m. June 12. Smita Patel, co-owner of Nomad, introduced herself as a new member of this board. Other members introduced themselves to Patel. 5. Monthly reports and comments A. Tourism Staff Report, Visitors Center Updates and Orange County Visitors Bureau Updates Campbell reported that the River Park Concert was well attended. She noted that nice weather has brought many people out and she is hoping for strong fall prepared food and beverage tax revenues. She also shared there will be at least one open seat for the Hillsborough Board of Commissioners in the fall. Amanda Boyd of the Alliance for Historic Hillsborough reported that the Outlandish Walking Tour was a big hit and had sold out. 6. Adjournment Hughes adjourned the meeting at 7:16 p.m. Respectfully submitted, Shannan Campbell Planning and Economic Development Manager TOURISM BOARD MINUTES | 5 of 5 Staff support to the Hillsborough Tourism Board Approved: June 12, 2023