TOURIST DEVELOPMENT COUNCIL

TOURIST DEVELOPMENT COUNCIL There was a meeting of the Indian River County (IRC) Tourist Development Council (TDC) on Wednesday, May 23, 2012, at 2:00 p.m. in the Commission Chambers of the County Administration Building, 1801 27 th Street, Building A, Vero Beach, Florida. Present were Chairman Peter D. O Bryan, County Commissioner; Scott DiPietro, Jennifer Bates and Keith Kite, Owner/Operator Tourist Accommodations Appointees; Councilmember Tracy Carroll, Vero Beach Municipal Officer; Mayor Jim Hill, Sebastian Municipal Officer; Daniel Fourmont, Mayor Susan Adams and Ursula Gunter, Interested in Tourist Development Appointees. Also present were IRC Staff: Mike Zito, Assistant County Administrator; Jason Brown, Office of Management Budget Director; and Terri Collins-Lister, Commissioner Assistant, District 4. Others present: Penny Chandler and Sue Hunt, Indian River Chamber of Commerce; Beth Mitchell and Nicole Holbrook, Sebastian River Area Chamber of Commerce; Craig Callan and Jeff Biddle, Vero Beach Sports Village; Hildie Tripson, Ruth Stanbridge and Marion Newbold, Historical Society; Tom Colucci and Rich Nalbandian, Treasure Coast Sports Commission; Rebecca Rickey and Robert Votaw; Vero Heritage, Inc.; Joan Ortega-Cowan, Vero Beach Opera, Barbara Hoffman, Debbie Avery, Mary Ann Hall, Russ Holland, Donna Lindsay, George Paxton, and Maria Sparsin, Cultural Council; Amy Selby and Brenda Celano, Spring Hill Suites by Marriott; Oscar Sales Jr., Riverside Theatre; Kathleen Prouty, Main Street Vero Beach; Cheryl Ann Burke, Garden Club of IRC; Ray Nau, Karen Ekonomou, Flametree Gallery; Melbourne Airport Authority; Marjorie Bohler, Artists Guild Gallery, Maria Sparis, Tea and Chi; and Bea Gardner, Interested Citizen. Call to Order Chairman Peter D. O Bryan called the meeting to order at 2:00 p.m. and led the Pledge of Allegiance Additions or deletions to the Agenda Chairman O Bryan introduced the TDC s newest member, Mr. Scott DiPietro, General Manager of the Hampton Inn and Country Inn in Vero Beach as the TDC s Operator Tourist Accommodations Appointee. TDC/Approved 1 May 23, 2012

Approval of Minutes from February 15, 2012 ON MOTION BY Mayor Adams, SECONDED BY Chairman O Bryan, the members voted unanimously (9-0) to approve the February 15, 2012 minutes as presented. Description of Tourist Development Grant Rating Sheets Mr. Jason Brown, Office of Management and Budget Director, gave an overview of the Tourist Development Grant rating system and the rating sheets, a copy of which is on file in the Commission Office. He reminded the Board in the year 2003; the TDC adopted a policy to give 70-percent of the Tourist Tax to the Chamber of Commerce with 30-percent being allocated to the others based upon a 100 point system. All proposals presented were rated and assigned a total number of points; after the Chamber s automatic 70-percent allocation the final 30-percent is distributed with highest points earning the highest portion down to the lowest. Mayor Adams asked what the policy was as it related to salaries. Mr. Brown replied the TDC voted unanimously in March 2007 not to fund the salaries and benefits for any new agencies with the exception of the Chambers of Commerce because they were the designated Tourism Agencies. A discussion followed on those agencies whose salaries were still funded by the TDC. Mr. Brown replied the Vero Heritage Center and the Treasure Coast Sports Commission were funded by the TDC. Councilmember Carroll raised a question regarding the Chambers Funding and wondered why the two Chamber s funding was included in one line item, yet they present separately. Mr. Brown said the two Chambers work together among themselves to determine the funding of the 70-percent and the TDC does not direct the Chambers on how the funding should be distributed. Mayor Adams replied over the years when there was a decline in funding and the 70-percent was less than the Chambers were asking, they worked it out among themselves and also noted if there was a lack of funding for some of the smaller agencies, the Chambers at times would contribute funding. Councilmember Carroll reiterated the top scoring agencies were completely funded and the lowest scoring agency s funding was cut substantially. She noted it was a historical process done in the past; however, felt it did not necessarily need to be a continued process. TDC/Approved 2 May 23, 2012

Chairman O Bryan felt the TDC needed to follow the policy; however, the TDC could vote to change the policy. He said until the policy was changed, the TDC must follow the policy, which would be the highest ranking agency being fully funded until the funds run out. Example of Rating System POINTS RATING Packet (articulate program, completeness, 10 accuracy) Presentation (explanation) 10 Program Impact on Tourism (direct/indirect) 50 Effective/Efficient use of dollars (i.e., is it direct costs of program or administrative salaries) 30 Tourist Tax Revenues Update TOTAL 100 Mr. Brown reviewed the information contained in the Tourist Tax Revenue Report dated April 2012, a copy of which is on file in the Commission Office. Mr. Brown indicated in March 2012, tourist revenues were $263,247, an increase of 25.5% from March 2011. On a year-to-date basis, revenues were up 16% ahead of the previous year. Councilmember Carroll referred to the report for historical comparison and noted the huge drop in revenues during the month of April throughout the years and wondered if there was a decrease in revenues for April 2012. Ms. Bates noted typically after the Easter Holiday tourism slowed down then picked back up again. Mr. DiPietro said April and so far in May had been good months for his hotels. Authorized Uses of Tourist Tax Revenue per Florida Statute 125.0104 (5) (a) Mr. Brown pointed out that the expenditure of the tourist tax dollars was governed by the Florida Statute Chapter 125.0104 for certain authorized uses. Primarily those activities include promoting tourism either nationally or internationally and the ability to operate convention centers, sports stadiums and TDC/Approved 3 May 23, 2012

arenas, coliseums, auditoriums, museums, zoological parks owned by public or non-profit organizations, as well as fund beach renourishment projects. He emphasized tourist tax dollars must comply with the Florida Statute Guidelines. Mr. Brown provided a brief synopsis of the tourist tax; noting it consisted of 4-cents of bed taxes on all overnight accommodations of six months or less. He explained the 4-cents tax, 1.5-cents went to tourism promotion activities and development; and 1.5-cents went towards beach re-nourishment, and 1-cent toward Dodgertown debt service. Chairman O Bryan mentioned Mr. Keith Kite asked if the TDC would consider a time limit for the presentations. Mr. Kite suggested the TDC listen to the entire presentation and then a question and answer period at the end of the presentation. A discussion followed and it was the consensus to limit the presentations to 15 minutes. 2012/2013 Budget Presentations The following is a list of funds being requested: AGENCY Indian River County Chamber of Commerce and Sebastian Chamber of Commerce 2011/2012 APPROVED BUDGET 2012/2013 BUDGET REQUEST $414,835 $410,607 Cultural Council of Indian River County $36,325 $60,000 Indian River County Historical Society $0 $14,000 Treasure Coast Sports Commission $140,000 $148,700 Vero Heritage, Inc. $12,000 $12,000 TOTAL $603,160 $645,307 Indian River County Chamber of Commerce (IRCOC) and the Sebastian Chamber of Commerce Ms. Sue Hunt, Director, IRCOC Tourism Division, provided a notebook for each member highlighting the 2012 2013 Indian River County Tourism Marketing Plan, a copy of which is on file in the Commission Office. Ms. Hunt stated Chamber partners participated in building their Marketing Plan by going to all of the niche markets and asking them for their assistance in putting together the marketing plan and asking for input. TDC/Approved 4 May 23, 2012

She highlighted the following on the marketing plan: Continue FAM tours for Bridal, Cultural Heritage, Eco Tourism, Sports, Meeting Planners, Editors, and Writers Focus on E-Commerce by forming a committee to research companies to assist with e-commerce solutions. Improve Internet exposure, social media, Facebook, mobile apps, and cyber marketing Hot Deals Visitor E-Newsletter to consumer data base of 5,800 Enhance www.comediscovernature.com and created the www.comediscoverlove.com website. Enhance programs with Visit Florida by providing feature stories, participating in co-ops and free listings, and working with Visit Florida on International Programs A discussion ensued on tracking the Hot Deal Coupons, Visit Florida and the 500 th Year Anniversary, mobile apps, the Website Director salary, and Brand USA. Sebastian River Area Chamber of Commerce Ms. Nicole Holbrook, Tourism Coordinator, Sebastian River Area Chamber of Commerce, reviewed the information contained in her PowerPoint Presentation; an overview of current projects and goals, a copy of which is on file in the Commission Office. She handed out a copy of the Visitors Guide to the TDC members which was distributed at the Interstate 95 and Interstate 75 Welcome Centers, Florida Welcome Centers, Chamber Visitor Center, Melbourne International Airport and other Tourism related businesses. Ms. Holbrook said the Chamber created a Quick Response (QR) Code on a poster at the front door of the Sebastian Chamber of Commerce Office for visitors when the office was closed after business hours could scan the code and go directly to the Sebastian Chamber s website. She added the QR code was included in their advertising. Ms. Holbrook discussed a print and online campaign with Guy Harvey Magazine. She indicated in February 2012, Mr. Fred Garth, Editor and Chief with Guy Harvey Magazine visited the area and fished the Indian River Lagoon and the Stick Marsh, as well as met with the Sebastian Inlet Administrator and was very pleased with his stay. She added Mr. Garth had included in the spring edition of Guy Harvey Magazine, four pages of editorial about his experience bass fishing in the Stick Marsh, a copy of which is on file in the Commission TDC/Approved 5 May 23, 2012

Office. She also indicated the main theme for advertising this year was fishing and promoting the Sebastian s Working Waterfront. Ms. Holbrook also highlighted on the following Chamber Projects: Working Waterfront Page on Sebastian Chamber s Website Placed ad in Florida s Sport Fishing Magazine Added IRC waterways to Visit Florida s Fishing website, www.fishingcaptial com s map. Sebastian and Fellsmere has both been nominated on World Fishing Network Ultimate Fishing Town Contest Ad in Florida Travel and Lifestyles Magazine Participated in the Florida Turnpike launched an Interactive Kiosks in their service plazas Sebastian Chamber of Commerce switched e-mail program to Constant Contacts Indian River Lagoon Scenic ByWay Distributing Brochures, attending various events FY 2012/2013 Focus on the advertising theme - Recreation Increase search engine optimization Cultural Council of Indian River County Ms. Barbara Hoffman, Chairman, Board of Directors for the Cultural Council, handed out some of the magazines of which the Cultural Council place ads as well as an Executive Summary of the Economic Impact Study and gave a PowerPoint Presentation on the Cultural Council s Cultural Tourism Efforts. A copy of both the handouts and PowerPoint Presentation are on file in the Commission Office. Ms. Hoffman stated in the summer of 2011, members of the Cultural Council met to refocus the mission of the Cultural Council and its program with their new mission statement to promote the Cultural Arts in Indian River County though education, collaboration, marketing, and advocacy as it has become the singe voice for the arts in Indian River County. She said in order to carry out the Cultural Council s role; a study was needed to measure the impact and the significance of the creative industry which was commissioned by the Cultural Council. She indicated the purpose of the study was to explore, document, and quantify the impact the full range of arts and cultural activity in Indian River County. She noted the study was just part of the Cultural Plan. Ms. Hoffman furthered summarized the Cultural Plan and the Event Planner and gave a breakdown of the expenditures for FY 2011/2012: 40% went to advertising, 30% to the website, calendar of events, and weekly TDC/Approved 6 May 23, 2012

newsletters, 25% for the information guide and distribution for tourist and seasonal visitors, and 5% to the arts and cultural information center. Ms. Hoffman highlighted the following: Placed ads in the Art District Magazine, Inside Track Almanac, Portfolio Magazine, and Crossing Magazine Full color, ½ page advertisement for the Cultural Arts published each Monday, 52 weeks a year in the back page of local section in the Press Journal (ad space and in-kind contribution from Aaron s Hearing Care was valued at $83,460) Events advertiser also broadcasts several times at week on Rhett Palmer s Radio Program and Bob Soos Morning Magazine. Weekly Cultural e-newsletter Cultural Council s Website Produced and Distributed 10,000 Event Calendars and planned to produce 20,000 more calendars than last year s distribution. Member organizations Vero Beach Art Club, Under the Oaks, Arts in the Park, Art By The Sea at the Vero Beach Museum of Art, and McKee Botanical Garden Vero Beach Opera I Pagliacci 2013 International Vocal Competition on March 25 th through March 30 th at Vero Beach High School Performing Arts Center Riverside Theatre and Vero Beach Museum of Art A question was raised regarding the increase of approximately $20,000 in Tourism advertising and what it entailed. Ms. Hoffman replied the Cultural Council would provide additional advertising on future events taking place in Indian River County and create a program for advance purchase of tickets for events. A discussion followed on the Vero Beach Opera and the 2013 International Vocal Competition. Indian River County Historical Society Ms. Ruth Stanbridge, County Historian, Indian River Historical Society, gave a PowerPoint Presentation on Historical Markers and Tour Guide, a copy of which is on file in the Commission Office. Ms. Stanbridge stated the Indian River Historical Society s Mission was to preserve, maintain, and restore the natural and cultural history and resources of Indian River County and the State of Florida and its Vision was to provide the citizens and visitors to Indian River County the opportunity for a visual and tangible understanding of the natural and cultural heritage of the County, the Treasure Coast, and the State of Florida. TDC/Approved 7 May 23, 2012

Ms. Stanbridge highlighted the following preservation projects of the Historical Society: 1903 Vero Beach Railroad Station Jungle Trail A Project for the Nation Paul Kroegel and the Pelican Island National Wildlife Refuge Projects in Fellsmere o 1915 Marion Fell Library o 1916 Fellsmere Public School Projects in Sebastian o Kitching Switch Trailhead North County Park o Corridor of the Fellsmere Railroad New Project in South County o Forest Service Fire Tower Educational Programs o Quarterly News Letters o Historical Tour Guides o Historical Marker Programs Historical Marker Program o McKee Botanical Gardens o Women s Vote o U.S. Naval Station, Vero Beach, World War II o World War II Remembered o Veterans Memorial Island Sanctuary o Bethel Stones Ms. Stanbridge brought up the Historical Society s House Museum at the Hallstrom Farmstead located at 1723 Old Dixie Highway SW, Vero Beach, Florida. She indicated the County was able to purchase the rest of the Hallstrom Estate called the Hallstrom Farmstead Conversation Area. She showed before and after pictures of the restoration of the house, the House Museum and Research Center. Ms. Marion Newbold, Board Member, Historical Society went into detail on the archives located at the House Museum and Research Center. Mayor Hill pointed out the importance of maintaining the County s history and heritage and appreciated the Historical Society s hard work. A discussion ensued on the possibility of the Vero Beach Railroad Site being used for Amtrak. TDC/Approved 8 May 23, 2012

Treasure Coast Sports Commission (TCSC) Mr. Rich Nalbandian, Assistant Director, TCSC, focused on the TCSC Funding Request for FY 2012/2013 in his PowerPoint Presentation, a copy of which is on file in the Commission Office. Mr. Nalbandian stated the TCSC covered three counties; however, his focus was in IRC and had an office at the Vero Beach Sports Village (VBSV). Mr. Nalbandian highlighted the Marketing and Sales Promotion in his presentation: Interactive Internet Site www.treasurecoast Sports.org Florida Sports, Division of Enterprise Florida TCSC submitted a Grant for the American Amateur Baseball Congress (AABC) Sandy Koufax World Series Event Market to United States Specialty Sports (USSSA), AABC, and National Collegiate Athletic Association (NCAA) Organizations Peak Technologies TV Production Company that puts videos on TCSC website Florida High School Athletic Association (FHSAA) TCSC was targeting the Girls Softball Championship for the State of Florida. VBSV Promote baseball, softball, lacrosse, etc. Mr. Nalbandian pointed out the TCSC helped sponsor events at the following facilities: Special Olympics - North County Aquatic Center C54 Canal Regatta Events at the North County Regional Park Events at the Hobart Soccer Field Mr. Nalbandian said the TCSC helped promote the VBSV and worked very closely with the VBSV to bring in more events. Mr. Nalbandian indicated the TCSC was asking for $148,700 in TDC funds to increase from 18 to 22 events for FY 2012/2013. He said the TCSC was working on a fundraising committee to find different ways of generating revenue to support events. He went over several events the TCSC was looking to bring to IRC and mentioned the Connie Mack World Series though the AABC program and hoped to close the deal shortly. TDC/Approved 9 May 23, 2012

A question was raised on determining the criteria for bidding on an event. Mr. Nalbandian replied the TCSC looks at the number of room nights, the return on investment, how many teams were coming in, and which sports brought in the most people. A discussion ensued on the Fundraising Committee, the possibility of another Major League Team coming to St. Lucie County for Spring Training, Bid Fees, and bed tax revenues. Vero Heritage, Inc. Ms. Rebecca Rickey, Director of the Heritage Center and the Indian River Citrus Museum, reviewed the information contained in her PowerPoint Presentation, a copy of which is on file in the Commission Office. Ms. Rickey reviewed the Special/Annual/Monthly Events at the Vero Heritage Center to include: 2012 Pioneer Family Recognition Dinner, Heritage Celebration, Christmas in Downtown, Hibiscus Festival, Chamber of Commerce monthly breakfast, USA Dance, Heritage Bluegrass Band, Tony Martin Dances, and Pilates Exercise Weddings, Reunions, Private Parties, Seminars, HOA Meetings, School Events, Concerts, and Fundraising events Ms. Rickey stated the Vero Heritage Center was trying to find new visitors and one of those ways was participating in the Smithsonian Magazine s Museum Day on a Saturday of which they had approximately 25 to 30 visitors. She planned to do it again on September 22, 2012. She indicated the Vero Heritage Center became a Blue Star Museum, a program being done by the National Endowment by the Arts, Blue Star Families and the Department of Defense and explained from Memorial Day to Labor Day Active Duty Military and their families could enter museums free of charge. A questioned was raised on This Place Matters Campaign from last year. Ms. Rickey said there were four organizations in Florida which participated and there were 100 sites picked in the United States of which individuals had to vote for those sites. She said of the four sites in Florida, the Vero Heritage Center came in first place and finished 25 th out of the 100 sites. TDC/Approved 10 May 23, 2012

Budget Requests for 2012/2013 Fiscal Year and Decide Level of Funding Mr. Kite thanked all of the agencies for their efforts in Tourism and suggested at the August TDC Meeting, a collaborative effort of all of the agencies funded create a Tourism Summit to be held in the Fall of 2012. Ms. Penney Chandler, IRCOC, stated there was an event scheduled in October 2012 which would focus on Tourism. Chairman O Bryan mentioned the Budget Requests for the 2012/2013 Fiscal Year and explained the highest rated agency, as well as the second highest rated agency, would receive 100% of their request and depending on whether the funds were expended, could result in the lowest rated agency receiving no funds. Councilmember Carroll brought up the TDC Budget and said the tourism revenues were up by 16% and felt the funding available should be higher. Chairman O Bryan stated the projected revenue budget increased to $603,000 with the current year projections of $624,000; a $21,000 increase in the revenue budget which was offset by approximately $42,000 increase in agency requests. A discussion followed on tourist tax revenues and reserves. Mr. Kite suggested a review of how TDC funds were allocated, with various percentages as well as guidelines the TDC were operating under should be discussed. Mr. Brown summarized the results of the rating sheets for each agency and displayed the rankings as follows: 1. Chambers of Commerce 863 points 2. Treasure Coast Sports Commission 820 points 3. Cultural Council 693 points 4. Vero Heritage 662 points 5. Indian River County Historical Society 634 points TDC/Approved 11 May 23, 2012

Tourist Development Council Ratings Summary Agency Name Total Points Ranking Amount Requeste d Recommende d Funding Chambers of Commerce 863 1 $410,607 $410,607 Cultural Council 693 3 $60,000 $60,000 Treasure Coast Sports Commission 820 2 $148,700 $148,700 Vero Heritage 662 4 $12,000 $4,943 Indian River County Historical Society 634 5 $14,000 $0 Totals $645,307 $624,250 A discussion ensued on TDC funding reserves and a question was raised on the total amount of reserves. Mr. Brown stated the amount of reserves in the tourist tax funds were approximately a little under $400,000. Mr. Fourmont felt the rating system was not very good and there had to be a better method to score agencies to receive a percentage of your request. Mayor Hill stated there was approximately $400,000 sitting in a reserve for tourism and the trends were in an upward direction. He felt it would not be good use of the reserves not to fund a couple of worthy projects that would only necessitate an additional $18,000. ON MOTION BY Mayor Hill, SECONDED BY Councilmember Carroll, recommended utilizing $18,000 from the Tourist Tax Reserves to fully fund the agency requests. UNDER DISCUSSION, Chairman O Bryan referred to Mr. Brown and questioned the reserve amount and whether a portion was set aside as a contribution match for a Federal Emergency Management Agency grant in the event of a hurricane. Mr. Brown replied the tourism funds were split between tourism promotion activity, beach re-nourishment and Dodgertown. Chairman O Bryan asked Mr. Brown if the $18,000 in funds from the reserves be a make or break number. Mr. Brown said he could work with it, but cautioned at some point the TDC would need to stop drawing from the tourist tax reserves, not so much for the upcoming fiscal year, but in the near future. TDC/Approved 12 May 23, 2012

THE CHAIRMAN CALLED THE QUESTION, the members voted (8-1) to recommend $18,000 be utilized from the Tourist Tax Reserves to fully fund the agency requests. Mr. Kite opposed. A discussion ensued regarding how the TDC funds were allocated and a review of the rating and point system at a future TDC meeting. Mayor Adams felt a review of the rating system should be put on the TDC agenda sooner than later to give the agencies enough time to adjust their budget requests and to make them aware of the process. Adjournment There being no further business, the meeting adjourned at 5:55 p.m. TDC/Approved 13 May 23, 2012