Okaloosa County BOCC — April 24, 2014 — Minutes — reading text

Okaloosa County Tourist Development Department 1540 Miracle Strip Parkway Ft. Walton Beach, FL 32548 Regular Meeting http://www.okaloosafl.com ~ Minutes Amended~ Thursday, April 24, 2014 2:00 PM Emerald Coast Convention Center Tourist Development Council Members Attendee Name Title Status Arrived Departed Chairman, Dale E. Peterson Present - - Dale E. Peterson Vacations Vice-Chairman, Present Thomas Rice - - Magnolia Grill Rachel Joyce Hampton Inn FWB Present - - Daniel Empson Harry T’s Restaurant Present - - Thom Gossom Best Gurl, Inc. Present - - Joe Guidry Ramada Plaza Resort Present - - Tuffy Dixon Destin Councilman Present - - Charles Rigdon FWB Councilman Present - - Kelly Windes Commissioner District 5 Present - - Ed Schroeder TDD Director Present - - Lynn Hoshihara TDD Attorney Present - - Chairman Dale Peterson called the meeting to order at 2:00 p.m. with the Pledge of Allegiance. Public Comments Related to Current Agenda The chairman opened the floor to public comments related to the current agenda. David Sherry/Condo Alliance of Okaloosa Island shared his concern with the MSBU repeal item, stating once again that it would deplete already insufficient hurricane recovery fund and take money used to preserve our beaches. Mr. Sherry brought two new items before the TDC: 1) The extension to the inter-local agreement between the City and the County for same beach restoration recently passed by the Destin City Council obligates the TDC to pay another $354,277 for monitoring same Holiday Isle beach project. 2) Regarding the Tourist Development Department Memorandum data on Page 99 of the meeting packet, Mr. Sherry commented that the figures greatly overstate the Holiday Isle/MSBU contribution for this project ($4.3M), money collected by the MSBU to date. Okaloosa County Tourist Development Department Page 1 of 12 April 24, 2014  Mr. Sherry recommended the TDC vote No to the MSBU repeal. Matt Walbargus/Association Manager-Holiday Isle Improvement Association commented that when the Commissioners passed the MSBU, they agreed to repeal it when they could. He also stated that there are 1900 members paying the MSBU tax, so if another beach restoration is needed, the community will support another MSBU. Mr. Walbargus would appreciate the TDC rescinding the tax, if economically feasible. Ron Johnston/Holiday Isle Association member added that in addition to paying the MSBU tax, he paid a special homeowners tax in 2010 for emergency beach restoration and had understood some of the assessment money would be refunded. Therefore, he felt the MSBU tax had served its purpose and should be repealed. Mr. Johnston also commented that the TDC would have more money today if the Holiday Isle Association members had not brought legal action. Commissioner Dave Parisot/Shalimar, FL commented that he didn’t hear anyone in past meetings say “tax me, tax me” and said that past discussions of the commissioners included a priority sequence for expending funds – 1st priority was Okaloosa Island beach restoration, 2nd priority was Annuity Imposed Penny for beach restoration, and following that, if needed, the MSBU funds. He further stated the priority for Destin was to be the Bed Tax Penny, followed by the MSBU. In reference to the previous statement by Mr. Sherry regarding the wrong figures on Page 99, Commissioner Parisot stated that there is only one MSBU and clarified that Mr. Schroeder reported the actual MSBU funds that were paid into the County for each year paid, further stating that following the January 2014 Board of Commissioners Meeting, all funds paid into MSBU by Okaloosa Island residents and businesses were refunded. He stated that the FY2013-2014 data reports funds paid only by Destin’s remaining portion of the MSBU. Commissioner Parisot also addressed Mr. Sherry’s concern about the cost to have another hurricane destroy our beaches and added that the Destin beaches are termed “Engineered Beaches” which gives them much higher priority for funding from FEMA, but beaches on Okaloosa Island are not Engineered Beaches. Rebecca Sherry/Condo Alliance of Okaloosa Island corrected four statements previously mentioned. 1) In reference to Commissioner Parisot’s statement regarding funds paid, Ms. Sherry stated the correct litigation funds paid was $1M from ad valorem taxes from Okaloosa County and $200K paid from TDC funds. Okaloosa County Tourist Development Department Page 2 of 12 April 24, 2014  2) In reference to Commissioner Parisot’s statement that no one said “tax me,” Ms. Sherry stated that for four years the Holiday Isle folks said in annual meetings to “tax me and tax my neighbors.” 3) Ms. Sherry also stated that $2.1M is remaining, clarifying that $4.3M started going into the MSBU funds, but as two areas in Destin and Okaloosa Island were removed, the money had to be returned with interest per state statute. 4) In reference to Mr. Johnston’s statement that Okaloosa Islanders and Destin people had their MSBU money refunded, she stated that it was due to them not receiving the project. Ms. Sherry further added three reasons why the TDC should oppose repeal of the MSBU: 1) Holiday Isle owners advocated for the MSBU and called it fair and equitable, and now changed their minds and want refunds. 2) The additional $354,277 project monitoring costs to be paid from the First Penny TDC collections mentioned by Mr. Sherry is not new, but in fact was discussed at the City of Destin’s Council 2012 meeting and stated all related costs are to be reimbursed by the TDC. 3) This expense can easily be paid by the City of Destin without TDC or County action. No Holiday Isle owner attended the BCC meetings to request a refund or placed a request on the Destin City Council agenda. Councilmember’s Minute (Dale Peterson- Chairman) Mr. Peterson continued by noting this item has been added to the agenda for anyone to have the opportunity to speak about things not previously discussed. He provided this time to ask if any member has concerns not mentioned in past meetings and the only question was asked by Thom Gossom, Owner/Best Gurl, Inc., in regards to receiving the meeting packet several days ahead of the meeting to allow time for reviewing. I. Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale Peterson- Chairman) Motion to Approve March 27, 2014 TDC Meeting Minutes Which Included the Amended Version RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Rice SECONDER: Empson AYES: Gossom, Guidry, Rigdon, Windes, Peterson, Dixon, Joyce Okaloosa County Tourist Development Department Page 3 of 12 April 24, 2014  II. Director’s Update (Ed Schroeder) a. Introduction of new Marine Economic & Tourist Development Resource Coordinator Ed Schroeder, TDD Director, asked Jim Trifilio to introduce TDD’s new employee, Anthony Austermann, hired to work on the artificial reef system and developing/increasing focus on eco-tourism and nature-based tourism. b. March Month End Lodging Reports from Smith Travel Research Mr. Schroeder reminded the TDC that these reports in the packet are just hotel data activity within the district. c. UWF NWF Bed Tax Analysis As Mr. Schroeder reviewed the Northwest Florida Bed Tax report, he explained that this is the most recent data for January 2014. He is expecting February’s report by the end of this month. d. RESTORE Act Update Mr. Schroeder reported that there is no new update on this item, but stated it is essential for the TDC to submit tourism-related projects and invited the TDC to submit project ideas for the TDD to research and present for TDC determination. e. Chart of Authorized Uses of TDT Funds Mr. Schroeder stated that this report is provided due to a request at the last meeting, adding that the chart describes how each penny can be used and lines up with the financial report. Mr. Peterson asked if this report is based on the County Ordinance. Mr. Schroeder confirmed that it is. III. Financial Status Update (Charlotte Dunworth) a. February Month End Tax Revenue Reports from the Okaloosa County Tax Collector Ms. Dunworth asked if there were any questions regarding the Okaloosa County Tax Collector reports submitted and there were no questions at this time. b. April Financial Update Ms. Dunworth reported that based on year-to-date receipts, our revenues are on track to generate about $13.4M this year, which is 11 ½ % more than budgeted on tax collection. Okaloosa County Tourist Development Department Page 4 of 12 April 24, 2014  Regarding the Third and Fifth Percentage report, Ms. Dunworth commented on the line item for the Ad Agency and the In-House Strategic Marketing Plans and stated the