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HomeMy WebLinkAbout05-21-07 Finance Com MinutesDUBLIN CITY COUNCIL Finance Committee Monday, May 21, 2007 Minutes of Meeting Mr. Keenan, Chair, called the meeting to order at 6:10 p.m. Council members present: Mr. Keenan, Vice Mayor Lecklider and Mayor Chinnici- Zuercher. Mr. McCash was absent. Staff members present: Ms. Grigsby and Mr. Edwards Mr. Keenan stated that the purpose of the meeting is to review the Historic Dublin Association's application for ahotel/motel tax grant and to develop a recommendation for the regular Council meeting, which follows this Committee meeting at 7:00 p.m. Tim Picciano, president of Historic Dublin Business Association (HDBA) and owner of Dublin Village Tavern business, 27 S. High Street, stated that are presenting a bed tax application for an initiative in the Historic District called "Slainte Thursday." He explained that the word means "cheers," a positive, energetic word -which is why it was selected. He would like to present the background on the HDBA and community events in the Historic District. They are very appreciative of Council's support over the years. Historically, the focus of community events has been on single events -the Great Race and Bikes, Bands & Barbecues are two examples of events partially funded by bed tax grants. While those events were successful, the HDBA believes a change in philosophy is appropriate for the future. Single events are weather dependent. There is no rain date. The businesses that did benefit from those events realized ashort-term benefit only. The HDBA decided to change its focus from single events to an ongoing campaign with a recurring event -- Slainte Thursday. The purpose of the long-term campaign is to market the District. The event will be held the third Thursday of every month, June through October, from 4:00-9:00 p.m. The retail businesses will remain open those hours. The event will have several components designed not only to attract people to the District but also to acquaint and draw them back for repeated visits. The components are: (1) live music, particularly outdoors - to be showcased by the restaurants (2) artistic experiences -the Dublin Arts Council and Dublin Area Art League will be invited to participate, perhaps collaborate, on ideas geared to improve the impact of the event itself to visitors (3) collaborative marketing -HDBA will attempt to encourage the District's businesses to cross market and cross promote. Although cross advertising has been practiced in the District, there have been few joint marketing or promoting efforts. An example might be: a visitor to the Tavern receives a certificate to be used at Ha'penny Bridge. (4) promotion of the event - to introduce them to the District. The goal of Slainte Thursday is to create an awareness --along-term awareness, of the District. The hope is that in five years people will talk about the Dublin Historic District in the same way they talk about the Short North or the Arena District. The intent will be to increase the foot traffic with upscale, repeat visit patrons. Finance Committee May 21, 2007 Page 2 The bed tax funds are a wonderful advantage to living and working in Dublin, and they would like to utilize their grant in a very comprehensive campaign that will have a significant long-term impact. Vice Mayor Lecklider inquired if the event would be held every Thursday or every third Thursday. Mr. Picciano responded that at the outset, it will be held every third Thursday; the hope is that it would grow into an every Thursday event. Vice Mayor Lecklider inquired if the HDBA request is for the $20,000 that is set aside in the hotel/motel tax funds for Historic District events plus an additional $5,000. Mr. Picciano confirmed that is their request. Vice Mayor Lecklider inquired whether the $20,000 amount reserved for Historic District events is an automatic disbursement, or are grants from that reserve made in response to applications for a single event(s). Mr. Picciano responded that in the past, HDBA has not used the full $20,000. Ms. Grigsby stated that in the past when an applicant was awarded a grant for an ongoing event, the applicant submitted requests over a period of time to cover the expenses as they occurred. In turn, the City issued several checks during the related period of time. Mr. Keenan stated that this request is not for ongoing funding, however. It is intended to be used only during the concept development of the event. Mr. Picciano responded that the request is for funding during the concept development stage only. The event is anticipated to "get its own legs" after a time, but he cannot guarantee that HDBA won't apply for the funds next year. He is optimistic, however; this marketing concept for the Historic District is the most impressive and comprehensive that he has ever seen. It is also the one with the most chance for success. Mr. Keenan stated that if the entire Historic District funding is used for this event, there will be none left for other applications. It would appear to be Mr. Picciano's opinion then, that Slainte Thursday is the best use of the funds for the District. Mr. Picciano responded that is true. Other recurring events in the District that have not been associated with HDBA bed tax grants would continue to occur, such as the Dub Crawl, which occurs during the Irish Festival. HDBA has requested bed tax grants the past couple of years for only two events -- Bikes, Bands & Barbecues and the Great Race. Prior to that, HDBA was not a tax exempt organization and could not apply for the grant. He does not believe the other events occurring in the District use bed tax grants. Ms. Grigsby responded that no grant applications have been submitted for those events. They are funded through other mechanisms. The Dub Crawl is covered through the hotel- motel tax funds designated for the Irish Festival. Vice Mayor Lecklider inquired more about the efforts associated with the concept development included in this $10,000 amount. Finance Committee May 21, 2007 Page 3 Mr. Picciano responded that they hope to engage a marketing firm to help them develop a long-term brand/logo for the Slainte Thursday marketing effort. In the past, HDBA has come up with good ideas, but they weren't marketed. HDBA did not have sufficient funds at the time. They want to enlist the help of Community Relations, because they have an advertising and promotion reach that HDBA does not. They will begin their search for a marketing firm initially in the Historic District -there are a couple of marketing agencies there. If they do not find a satisfactory choice there, they will look further afield. Mayor Chinnici-Zuercher inquired if the HDBA membership would also be contributing to the campaign funding. Mr. Picciano responded that they would be. For instance, the cost of the live, outdoor music would be split between the restaurants and the bed tax funds -- 50°k or more to be paid by the restaurants. The cost of that type of venue, which is mobile -can be moved around for the purpose of being shared by all and can also be easily shared. There are approximately 130 businesses in the Historic District. The HDBA membership is 30 businesses. The anticipation is that Slainte Thursday will also attract new members to the HDBA. The larger the HDBA membership, the more funds there will be in the HDBA coffer to promote the District. Vice Mayor Lecklider stated that he has mentioned outdoor bands. Would he anticipate complaints/concerns from the neighboring residents? Mr. Picciano responded that he does not anticipate complaints, as outdoor bands have been used in a variety of venues within the District, some of which have played later than the 9:00 p.m. timeframe established for Slainte Thursday. Vice Mayor Lecklider inquired which venues or businesses have used outdoor music in the past. Mr. Picciano responded that Brazenhead and Dublin Village Tavern have utilized outdoor bands. There was also a band on one occasion on the Ha'Penney porch, and their have been bands on the village green. He does not believe there have ever been complaints. Vice Mayor Lecklider inquired from what fund the additional $5,000 would be taken from. Ms. Grigsby stated that with the last application for the general bed tax fund dollars, $55,000 is allocated and $1,326 remains available. Mr. Keenan noted that last year, $20,000 was set aside specifically for the Historic District to make certain they were not left out. Was Mr. Picciano aware of that when he developed the budget for this project? Mr. Picciano responded that he was. If HDBA is not able to secure the additional $5,000, they would still like to proceed with the project. This is a preliminary budget based upon their "best guess" of what it would take. They may have to trim some components, such as the live music, but they can still move forward. They had hoped that the additional $5,000 could come from the $20,000 which was not used by the Historic District in the past few years. Mayor Chinnici-Zuercher responded that the money is not cumulative. Also, because the application was not submitted by the deadline, the Committee did not have the ability to consider it along with the other applications. Finance Committee May 21, 2007 Page 4 Mr. Picciano responded that he understood. In the future, HDBA will make certain it becomes aware of and meets the deadline. Mayor Chinnici-Zuercher noted that often if a design firm is used for an area, the firm will donate part of their services. That would be a way to reduce some of the costs. Mr. Keenan stated that of the 130 business in the Historic District, HDBA only has 30 members. Assuming $100 for each of the other 100 businesses would bring in another $10,000 to the HDBA fund. Mr. Picciano responded that the irony is that many of those 100 other businesses benefit from the HDBA efforts, but don't join and contribute. They would like to use this effort to leverage more membership. Mr. Keenan inquired how a leverage would be achieved -- if they already have the entertainment, etc. Mayor Chinnici-Zuercher noted that some of those businesses aren't retail, such as the dental practices. Mr. Picciano responded that the original focus of HDBA was on the retail businesses. They now want to engage the service-oriented and corporate service businesses; a couple have already joined. Their reputation within the District is growing. Slainte Thursday is a marketing tool that service organizations can use as well by inviting their clients to stop in for a happy hour at their place of business and to enjoy the events of the District. Mr. Keenan suggested that it would have been nice if they could have "tagged on" to the Dublin Convention & Visitors Bureau branding program. Mr. Picciano responded that the two programs are not mutually exclusive. They will work "hand in hand." Mr. Keenan responded that his thought was that it might have saved some of the design costs. Vice Mayor Lecklider inquired about the kick-off plans. Mr. Picciano responded that it would be in June this year, and probably in May next year. Vice Mayor Lecklider noted that there is a timing issue with the bed tax grant deadlines. Mr. Keenan noted that the Finance Committee reviewed the grants later than usual this year. Ms. Grigsby responded that the grant application deadline was in March. Vice Mayor Lecklider stated that his only reservation is that this is the entire amount of the funds set aside for the Historic District, and if anything else should come up, there would be no monies for other opportunities. Mr. Picciano responded that his point made when sharing the historical perspective of marketing efforts/events in the District was that HDBA does not believe the single events provide any long-term benefit to the District. They believe along-term, ongoing campaign Finance Committee May 21, 2007 Page 5 centered around a recurring event provides the greatest chance for success as defined by the goals of Council and by HDBA. They do not intend to come back to apply for funds for another event, and they do not see that as a risk. Vice Mayor Lecklider moved that the Committee recommend to Council approval of HDBA's request for the $20,000 set aside for the Historic District. Mr. Keenan seconded the motion. He asked that, for the record, Mr. Picciano revise the budget with the revised amount of $20,000 of funding rather than $25,000. Mr. Picciano agreed to do so. Vote on the motion: Mr. Keenan, yes; Vice Mayor Lecklider, yes. The meeting was adjourned at 6:38 p.m. Clerk of Council