Loading...
HomeMy WebLinkAbout01-03-1995 Finance Com Minutes~ ~~ i i' Finance Committee of Dublin City Council Tuesday, January 3, 1995 7:00 p.m. -Council Conference Room Attending: A.C. Strip Peter Zawaly Chuck Kranstuber Bryan Thurman Minutes of Meeting Mr. Strip called the meeting to order at 7:00 p. m. The purpose of the meeting is to review the the applications for the hotel/motel tax fund. Ms. Onetta McGlaughlin and Ms. Leslie Chernick, representing the Dublin Women's Club made a presentation to the committee regarding this year's Festival of the Arts. Their request is for $6,000 plus City services, which aze estimated to be about $5,500. Mr. Strip commented that Coffman Park was a great facility to hold the event. He also requested the amount of profit from last yeaz's event. Ms. McGlaughlin responded it was $17,700, including the $6,000 bed tax money they received last yeaz. She also explained their plans to have the historical Coffman House open to the public this year in connection with their event. Discussion followed about the weekend is is held on. The Women's Club feels that since historically significance to that particular weekend since they have always held it then. They did also check this year to see if there would be a home game for Ohio State, and there is no home game that weekend. The Dublin Women's Club stated that there were 51 artists who stayed in area hotels Mr. Strip asked about the general public who stayed in hotels? He stated that he had requested the information be tracked last year. A discussion followed about the turnover in staff at the Visitors Bureau, nobody ever got back to them with the information. A notice about the festival was sent out to all the area hotels. Mr. Strip emphasized the importance of getting those figures to the Finance Committee next year. This is important criteria for the application process. The Dublin Women's Club distributed literature detailing their finances, they wanted to point out that they do give money back to the City, they have donated $6,250 to the Dublin Police Department. Mr. Strip explained to them the rules of the application process. They will receive a letter letting them know the recommendation of the Finance Committee. The recommendation then goes to full Council. They are invited to come to that Council meeting if they wish or if they have further concerns. The representatives from the Dublin Women's Club thanked the Finance Committee for considering their application. There was a discussion about getting the numbers of heads in beds, and the turnover at the Visitors Bureau. Mr. Thurman explained that the hotels are reluctant to give that information out for some competitive reasons. Mr. Kranstuber stated he would like to see the information presented in a graph form so he could weigh and balance the information. He feels that some events even though they don't put visitors into the hotels they have entertainment value for the citizens of Dublin, while other events, like Team Columbus probably does get visitors into the hotels, but is not a lot of entertainment for citizens of Dublin. Mr. Strip agreed that in cases like Chamber Music it does not put people into hotels, but he thinks it is terribly important that it be supported. Mr. Strip asked if anyone had any objections to the Women's Club request. Mr. Zawaly and Mr. Kranstuber had no objections to their request. There was a discussion about how the money comes out of the budget to support events like this. The Police Department has requested that it be done differently this year, instead of coming out of the city budget for the Police Department, they have requested that it come out of the Bed Tax. Mr. Zawaly asked about how the Bed Tax ordinance reads. Mr. Kranstuber asked about how Dublin uses the money as opposed to other cities using the Bed Tax money. He saw an article telling how Westerville was using their money to build streets, he thought that it was an enabling ordinance and the money couldn't be used that way. Mr. Strip explained that State Statute required a 25% go to A) Visitors Bureau, and we did not have to establish a Dublin Visitors Bureau, we could have donated it to our Chamber of Commerce, if they wanted to do that job or to the Columbus Visitors Bureau, if we wanted to. After that cities are free to use the money however they want. Other cities use the money to be put into their general fund. Mr. Thurman stated that this is the only city that holds out the applications and gives out grant money. Mr. Strip stated we are almost the only city that does that, I think we aze the only city that doesn't take any of it and put it in the general funds. Mr. Thurman explained that because of the amount of money being given to the Arts Council, and because they are having the jury in the Arts in Public Places all in one yeaz, they are asking for significantly more money this year. We budgeted or allocated $300,000 in community organizations for Bed Tax requests, if we would fund everybody tonight we would be over that $300,000. If all the money that was asked for was given out, then they would be over for this yeaz. Their is more money in the fund that can be appropriated. Mr. Strip stated that we actually have a total after we contribute to the Visitors Bureau, won't we have about $550,000 or so to allocate? Mr. Thurman stated that if we go through our budget, we had an unencumbered balance of $499,000, and estimated revenue of $659,000, special events budget was $441,000 and if we gave away all the money tonight, and nothing else we would have a remaining balance of about $400,000. Mr. Strip stated that we also know that in fact the Arts Council is not going to draw down that money all of it this yeaz, some of it won't be drawn until 96. Mr. Thurman agreed. Mr. Zawaly asked for further explaination. Mr. Thurman stated that's what was put into the budget to have $300,000 in grants money each year for community organizations. Mr. Zawaly asked if it was a percentage of funds? Mr. Thurman said no, it's not a percentage. Mr. Strip stated that we should be getting - $800,000 roughly this year in Bed Tax. Mr. Thurman stated that our portion of it we budgeted for is $659,000. Mr. Strip said the whole Bed Tax is a little over $800,000, of that roughly $200,000 would go to the convention Bureau, leaving a total of $600,000 for our committee to allocate out. Mr. Thurman stated $441,000 has been budgeted for special events, so we aze losing that. Mr. Strip said also, Peter the point he was making was under normal conditions if the community center had been constructed in 1995, the Arts Council would have drawn their money down. Mr. Zawaly asked for clarification about why they would be over if they approved all the grants before them. Mr. Thurman stated that's the amount that has been budgeted in past years. Mr. Zawaly asked what would have to be done to ask for an additional appropriation of $12,780 to go towards community organizations? Mr. Thurman stated to go towards community organizations, right now we only have $300,000 appropriated in community events in account 2821. Mr. Strip stated that he thought the figure was historical, when way back when they took in roughly $500,000 in Bed Tax, of which 25% is sent to the Convention Bureau, which left maybe around $300,000 and as that number grew the city failed to grow our number with it. Mr. Thurman explained that the special events budget, say they spent the entire $441,000 and we gave our $300,000 in Bed Tax, you would be spending more than you aze bring in for that particulaz year, but they have several hundred thousand in reserve. Mr. Strip further explained that the 7uly 4th event, the money came from that. Mr. Kranstuber stated he was skeptical of dozens of events. He has a feeling of doing fewer events and better ones. There is the money in reserves. He sees these big numbers and he is skeptical when he sees such big numbers for these events. He would like to see them doing something pro-active. Mr. Zawaly agrees with him. Mr. Strip stated that the Nicholas Museum is a one-time thing. Mr. Thurman stated that he just got an application from the Zoo, it will wait until March, they asked for a similar request, $50,000 for two yeazs to build a pavilion. Mr, Strip asked if there were any more requests the Finance Committee was not awaze of? Mr. Thurman responded that was the only one. Mr. Kranstuber asked anybody agreed with him about doing events at a higher level to make them great events, where people say, wow, that's Dublin. He thinks we are very reactive and very much in a vacuum. He would like to see it all on a boazd and have somebody tell him OK you can only spend two thirds of what's requested here and then select what's going to achieve that greaC event for Dublin. Mr. Strip stated there was nobody present in the lobby from the Dublin Youth Athletics at their scheduled time. Mr. Strip asked if March of Dimes was coming tonight? Mr. Thurman answered that he talked to them and they are coming. While they were waiting for the DYA represetatives there was a discussion about the lighting for the fields, and the benefit for Dublin. Mr. Kranstuber noted that approximately 2600 kids will be playing baseball on those fields, and the entire city benefits from it. There was a discussion about getting corporate sponsors to help them raise the remaining amount. Mr. Thurman explained that last year, they had to show the city the receipts for the lighting before they were given their money. There was discussion about the organizations financial statements. Mr. Strip asked about the number of visitors to hotels this event brings in. Mr. Kranstuber responded that the kids and their families stay with other families. But there is some spill-over into hotels. That particular weekend that the hotels are usually filled anyway. Mr. Zawaly stated that he has no problem in going with $30,000. He believes this events brings to the city positive press coverage. There was a consensus to give the Dublin Youth Athletics $30,000 specifically earmarked for capital improvements (lighting to be owned by the City after the event). Mr. Thurman said when he talked to them on the phone he told them that as long as they can show they are putting money back into Dublin, like the lights, that's always more beneficial than using money from Bed Tax to run the event. The representatives from the lack Nicklaus Museum were Mr. Gerald Goodson and Mr. David Wolfe. Mr. Strip asked them to tell why they are requesting the Bed Tax from the City, the cost, and what will it do for Dublin. Mr. Kranstuber asked about their role in the Jack Nicklaus organization? Mr. Goodson stated that The lack Nicklaus is a private operating foundation formed about two years ago for the purpose of the developing a museum to house Jack's memorabilia, his history, and to preserve his place in the history of golf. That's a private operating foundation, it was found in Florida, and the museum concept has been promoted for several years by friends and several business associates. Obviously everyone felt that it was a natural that it be here in Columbus in Dublin. So from that point on they have been pursuing to develop the museum here in Dublin. He was appointed as the Director and Curator of it. He has been involved with the Nicklaus organization for 10 years. They have raised a little over two million towards our 5.5 million dollar goal. Mr. Zawaly asked if that was by way of pledges or by way of cash? Mr. Goodson stated that was by way of pledges. As of today he has received about 3 quarters of a million in cash. He would like to break ground at the Memorial Tournament this year, start construction immediately thereafter and have it open prior to the Memorial Tournament '96. Mr. Kranstuber asked if the total budget is 5.5? Mr. Goodson stated that was correct. Mr. Kranstuber asked if they needed to raise the whole amount prior to building? Mr. Goodson stated they are working with BancOne to establish a loan now, and obviously they have Golden Bear working with them on this as well as the Club. Mr. Strip asked if it will be free and open to the public? Mr. Goodson stated it will not be free. It will be a chazged facility. The only way to cover operating costs on any museum, is to have ticket sales, gift shop sales, and corporate events, so it can be rented out for the evening for cocktail parties, etc. Mr. Zawaly asked if they aze anticipating getting operating costs from those sources? Is the capital they are hoping to get all from contributions? Mr. Goodson stated that was correct. Mr. Kranstuber asked if the location would be in a public azea, where you would not have to be a member of the country club to enter? Mr. Goodson stated it will be out on Memorial Drive. Mr. Strip noted he remembered it would be sufficiently landscaped so that you wouldn't really see it from the Memorial unless you were looking for it. Mr. Goodson stated yes, that is correct. A year ago they did some preliminary with Planning and Zoning, and with meetings with the community. They had another meeting at Mui~eld Village and invited the neighborhood at this meeting concerns were addressed about the appearance from Muirfield Drive. Based upon their suggestions, they put together a new plan which was heavily landscaped and hiding the parking lot. Mr. Zawaly asked if that went through Muirfield Association? Mr. Kranstuber recalled that when he was at a Planning and Zoning meeting, he remembers some minimal opposition from one or two people. Mr. Goodson stated he believes as far as benefitting the City of Dublin and by looking through the criteria on the application form, it meets all of the criteria. He stated it will bring recognition to the city and they will get good press coverage during the Tournament. Mr. Strip explained to them how the hotel/motel fund operates and that they do get some large requests from other events. He also explained that historically a number of events depend on this fund or the event would not take place, Mr. Kranstuber asked Mr. Strip if this is the lazgest request they have ever had? Mr. Strip stated that yes, they have never contributed more the lazgest we've ever had was for $33,000 one-time contribution to the Arts Council. So generally speaking they have never gone over $25,000. Mr. Wolfe stated he was present as a friend of the Museum. He stated why he believes they met the criteria for the bed tax money. He made three points: 1) Jack Nicklaus is the greatest Golf player that has ever played Golf and he it's his desire to have the museaum here in Dublin; 2) this is a permanent facility, as opposed to a one-time festival, this is more permanant way to spend the money; 3) the fact that this is going to bring people to Dublin at different times of the year instead of just during the Tournament, it will help Dublin businesses, restaurants, hotels and produce income tax money for the City. He doesn't expect for them to get all the money back right away. It would be good TV coverage during the Tournament to advertise the Nicklaus Museum right here in Dublin as opposed to having it be located in Florida. Mr. Zawaly asked is that what you are looking for is the seed money to put afund-raising campaign? Mr. Goodson stated they already received 3/4 of a million in cash, and about 2 million of dollars in pledges now, they aze looking for capital money to help reach their goal. This can be used in various functions of additional fund-raising or for operational costs. A discussion followed about the design and layout of the museum. Everything will be dual- purpose. The theater can be turned into a meeting room, there is no excess space. There will be a theater, and a Nicklaus gallery, and a Nicklaus Den Library of their home. Mr. Kranstuber wanted to know if this was a place for the public to go and enjoy. For the most part this will be a public museum. Mr. Strip asked if when you walk in will there be a place where sponsors and contributors will be listed. Mr. Goodson stated that was correct, there will be a sponsor boazd in the foyer. Mr. Zawaly asked what is your major sponsor category? Mr. Goodson stated the major sponsor category is 1/2 a million. The top category, is broken down to $250,000, $100,000, $50,000, $25,000, $5,000 and then the Brick-and-Stone campaign for $1,000 down. Mr. Goodson asked if they have seen their demonstration at the Airport. Mr. Wolfe stated if they were to rank the projects funded in terms of city recognition and public exposure he feels this would have to be close to the top of the list. Mr. Strip stated that without city finances involved, some of these events couldn't go at all. My guess whether we give you any money or no money, this museum will be built anyway. You will have this with or without city funds. Mr. Strip asked if some day when Jack is not playing he ought to come up here and be grand mazshall in our 4th of July pazade. We'll let him ride a fire truck. Mr. Goodson said he would let him talk to Jack about that. Mr. Kranstuber asked if any marketing studies have been done to see what the interest is in this? Mr. Goodson answered he couldn't really say for sure, the studies have been based on other sports museums, gold-related, other facilities, U.S.G. A. Golf House at Far Hills does about $25,000 a yeaz, P.G.A. World Golf Hall of Fame in Pineheazst prior to their closing and moving down to Jacksonville, was doing $25,000 or $30,000 a year Mr. Kranstuber asked if that was in people? Mr Goodson stated yes and they are extremely hard places to get to. Central Ohio is a within driving distance for a one day trip for a lot of people. The first year we are going to do all we can through convention and tours and promoting it without having to put any dollars. Mr. Kranstuber asked if it would it be more Jack Nicklaus or more of a general golf interest? Mr. Goodson stated it will be primarily the life story of Jack Nicklaus and his accomplishments. lack Nicklaus the man, not the golfer, the family man, the businessman, the golf course designer, architect, author, humanitarian. We will include all the aspects of Jack's life and career. We are going to when you come off the main foyer, starting the experience of the museum you will go into the history of golf, and we are going to go back and do the evolution of golf from the fourteen hundreds to American Golf. He feels the history of golf is important. Then in the theater there will be an introduction where you go through the decades of Nicklaus. The next area is the major championships, we will highly emphasize his accomplishments in the majors. Next is the den library which is a replication from his home. Next will be the business area where there is a section on the memorial tournament honorees and winners. Then there will be the Nicklaus design galleries telling the story of his 120 plus golf courses he has designed throughout the world. Then there will be an educational entertainment area where people can interact and participate with computers. There will also be a gift shop off the foyer. Mr. Kranstuber asked are there any other museums dedicated to an individual? Mr. Goodson answered the first museum built for a living sports legend opened this year in Florida, Hernando Beach and it was the Ted Williams Museum. He does not believe this museum is that good because Ted Williams does not have a lot of memorabilia. Mr. Strip explained the process to the people from the Jack Nicklaus Museum. The will receive a letter in a couple of weeks. They will make a recommendation to the Council, if they aze satisfied with the recommendation they do nothing further, but they aze welcome to attend that Council Meeting. If for any reason Council doesn't agree with the recommendation of the committee, the committee will contact them. Mr. Zawaly asked that according to the brochure that the original intent of the request was going to be for $250,000, or course it was pared down to two years to $100,000, what counsel and what reasoning went into that number? Mr. Goodson stated that number came from some earlier conversations that John Hines from Muirfield Village. Mr. Goodson stated that the $250, or $50 a yeaz for five years. They had spoken to A.C., and he explained the logic of the fact that this is a two year boazd and it would be out of place to make a commitment for future boards, so not to ask for anything over a two year span at this time. Mr. Zawaly asked is it your intent to come back? Mr. Goodson stated that the option is there and if they still need the capital. Mr. Kranstuber stated that maybe we need to discuss that some more. Mr. Strip explained that he didn't think that this Council would be in position to bind future Councils, and it would be inappropriate to say even $100.00 a yeaz for five years because they can't bind a future Council. Council only had two years of life left before some of it's members have to run for re-election. Mr. Goodson stated they thought it was a reasonable number. The easy contributions are already in, now it becomes the ones where you have to go out and work. He is not a professional fund-raiser. Mr. Strip asked if you have employed professional fund-raisers or are you doing this on your own. Mr. Goodson stated that primarily they aze doing this on their own with help from people at Muirfield and the Golden Bear organization. Mr. Strip stated that you may disagree with me about making a commitment for five yeazs but he feels it would be inappropriate. Mr. Zawaly stated that he agreed with the observation that Mr. Kranstuber made they may not be able to commitment over a yeaz. Mr. Strip stated that a yeaz from now there may well be new Council members here. Mr. Strip stated that we may choose not to run again. Mr. Kranstuber the flip side would be we appropriate some degree of money for some number of years and it passes seven to nothing in Council, the most it will turn over would be three, and that's still a majority. It's worthy of discussion, and we can get back to them. Mr. Strip stated that we don't know that, somebody could drop out, or resign or drop off or die or become disabled. We had one mayor who resigned here, and we had one stepped out because he was transferred. The people from the museum left. Ms. Michelle Komorowski and Heinz Von Eckartsberg were present to represent the March of Dimes. Ms. Komorowski stated she thinks it would be beneficial for the City of Dublin to donate the $600.00 to them because they had the tournament in Dublin last yeaz which brought in 74 teams to the city. This was the first year to have the tournament in Dublin, and they really liked the facilities here. She thinks next yeaz it will be even more teams, which will bring business to Dublin hotels, restaurants and sporting good stores. Also last year they got coverage in the Columbus Dispatch, which brings recognition to the city. Ms. Komorowski also stated there were other azticles in several other newspapers, including the Dublin Villager. They also get coverage on 96 FM, they do radio announcing the tournament in Avery Park in Dublin. She feels it will bring people into the city. Mr. Zawaly asked how they did financially last year on the tournament? It's hazd to extract that out of your financial statement here. Ms. Komorowslti stated that last year there expenses were about $3,500 and they ended up at a total income before we subtracted our expenses we had made somewhere in the figure of $18,000 and after subtracting the expenses that was around $4,000 and $600 of it was for paying for the field and things of that nature. On the new budget if you look at the budget for this year, they have managed to cut expenses by $2,000 because they want to raise more money for the Mazch of Dimes, not for operating costs. They want the money to go to the March of Dimes and into our programming and not into fund raising. JRN 13 '95 11~01RM STRIP FRR60 R Zi4 LAW OFFICES OF G7 d.6aHH , ~C11A4B17~ Oi...i BCJJLdYBt'Eli lX. 11®1 A JL'/14~ 4.i®. A LECxAI; PROFESSIONAL ASSOCIATION A.C. STRIP t.1YRON N. TERLP,CKY fOHN 2. FARGO 5,^5 SOUTH TtiIAD STItBI?T TIMOTHY 7, McORATN llPAN R. SCHULMAN COLUMHUS, OH[D 4321$ NANCY A. NOVACK fOtIN 3VA1. HOPPERS __ BRENDA K. NOWRRS PAUL W. LF:ITHAR'r, II MARK W. IANNOTTA MICHAEL I'. VASKO (G14) 2256345 FAX 228b3G9 GEORGE WR1. LU+S (19361973) V~A SAX To: Members of Dublin City Council Date: January 13, 1995 Re: Finance Connnittee Interviews of Bed Tax Applicants Below follows a summary of the bed tax applications and a summary of what I believe were the thoughts of the Committee. I am forwarding this Yo give you a better understanding of the background, since it will come to you in a future council meeting by way of recommendation. Please feel free to call any of us on the Committee (Zawaly, Kranstuber, or Strip) for more information:- (I) The Dublin Chamber of Commerce request for an amount not to exceed $1,000.00: This request is for reimbursement of police services only for events connected with the St. Patrick's Day festivities. This is consistent with prior years, it is not for the event itself but for police services which are billed to the event. The Finance Committee recommended the same. (2) The Ihxblin Women's Club request for Festival of the Arts: The request is fora $6,000.00 subsidy plus City services not to excced $5,500.00. This request is consistent with the prior year where they requested, and received, a $6,000.00 subsidy. City services last year turned out to be approximately $5,057.00, The event is a big draw for Dublin, does well, and adds (but not significantly) "heads in beds", and has done well. in its first yeazs in Coffman Park. It should be pointed out that, in the past, we have subsidized this event to a much greater extent and they have recognized the beginning was "seed money" and they are bringing down their request. We have asked them, however, to supply us with some better statistics, if possible, on how many overnight persons it brings in. (3) Ihtb]iu Youth Athletics (D.Y.A.) request the sum of $40,000.QO for the CABA World. Series: This request has varied over the years, depending on the need for capital improvements. Of the $40,000.00, $30,000.00 was requested to make capital improvements by way of lighting an additional field. $10,000.00 was requested for operations of the event. The understanding was that the lighting of /.<. JRN 13 '95 11~L~3RM STRIP FRR60 -3- This was denied, since the event was scheduled to be a large money maker and there was no reason to subsidize it. This year they are asking merely for reimbursement far City services (virtually all policing serv"sces), and the Finance Committee deem that to be an appropriate request in a sum that modest, and is recommending the same. (~ 7'he Team Coliunbus request for the sum of $35,009.00 for the Dublin Sports Challenge: A number of questions were raised by the Committee, including the following issues: (i) what number of people could this plan expect to bring into Dublin?; (ii) why is the format of the program changing on an annual basis'>; (iii) why is the time of year changing on an annual basis?; (iv) what does this do for Dublin?; and, (v) what would occur if the subsidy was substantially less? A general, but amicable, discussion followed and it was determined between both the applicane and the City that it would be best to table this pending further informafton. The matter was tabled and there will be no recommendation by the Committee to Council at this time. Sincerely, C. Strip P.4/4 ACS/vp