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04-01-20 Tourism Business Improvement District MinutesBoard of Directors Meeting Kalispell Tourism Business Improvement District Wednesday, April 1, 2020 3:00 – 5:00 pm Location: Zoom meeting due to Coronavirus Restrictions MINUTES Board Members Present: Dawn Hendrickson, Emily Schroeder, Janet Clark, Zac Ford, Bryce Baker, Lucy Weeder Board Members Absent: Joe Alexander Staff Present: Diane Medler, Dawn Jackson, Joe Unterreiner, Meche Ek, Vonnie Day Guests: Scott Rieke ____________________________________________________________________________________ Meeting was called to order by Chair Dawn Hendrickson at 3:03 pm. 1. Hear from the Public - none 2. Presentation by CVB Staff – Visitor Development Asset Grant Application – Foy’s to Blacktail Trails Foys to Blacktail Trails (FTBT), Kalispell’s only premier trail system, is a popular and easily accessible visitor asset. Ten minutes from downtown, the trails are used by families, hikers, mountain bikers and horseback riders. FTBT has applied for a grant $820 for design and production of updated kiosk map signs and “You are Here” signs/mounting hardware. Funds for the 100% match will come from FTBT cash on hand. The project aligns with the Discover Kalispell brand, appeals to our target market and will fulfill the objective of enhancing our visitor amenities. Projected completion date is late spring 2020. 3. Board Action Items a) Approval of minutes from March 4, 2020: Motion was made by Bryce Baker to approve the minutes. Motion was seconded by Emily Schroeder. Discussion: none. Board approved unanimously. b) Approval of TBID financial statements for February, 2020: Motion was made by Lucy Weeder to approve the financial statements. Motion was seconded by Bryce Baker. Discussion: none. Board approved unanimously. c) Approval of FY21 marketing plan and budget: Motion was made by Bryce Baker to reduce the FY21 budget by 40% with planned review in July. Motion was seconded by Lucy Weeder. Discussion: Marketing Plan Highlights and Updates: • Introductory paragraph has been added addressing COVID-19 crisis and unknown effects the pandemic will have on the tourism industry. • Kalispell’s strengths now include Ashley Creek Historic Venue, a new event and wedding center • Challenges include Kalispell’s position as neither a larger Montana city nor a resort town and 432 short-term rentals (as estimated by Airdna). • Trends: social media continues to grow and is used by all generations, social influencers are useful in reaching niche travel segments, it’s important for community residents to understand DMO’s role and the outcome of their work • Marketing Plan outlines the 5 stages of the travel decision process and how DK is reaching travelers during each stage of the trip process. • Key Market Segments outlined in the Marketing Plan were approved in the March meeting. • Marketing Plan Goals and Objectives were approved in the March meeting. Discover Kalispell’s recent initiatives related to COVID-19 situation: • With the COVID-19 crisis, Discover Kalispell is moving from marketing to messaging that now is not the time to visit, but think of Kalispell when that time comes • Changes have been made to the website to reflect updated messaging • A Discover Kalispell COVID-19 landing page for visitors and tourism partners is in place • Kalispell Chamber has created a COVID-19 resources landing page for business and community • DK social media messaging has been changed to dream now, visit later and to highlight local businesses that are remaining open while complying with COVID-19 guidelines, especially restaurants offering takeout/delivery • A chat feature has been added to the home page of the DK website to help capture visitor questions, along with phone and email, while the VIC is closed. FY21 Budget: • Staff recommended revising revenue projections downward anticipating a 30% reduction in FY20 Q3 and 90% reduction in Q4. Based on that expenditures for remainder of FY20 have been reduced by $155K. • The FY21 budget is subject to approval by the TBID board and City Council, as well as the Kalispell Chamber board and Tourism Advisory Council for the bed tax budget. • There are two options to approve the marketing plan and budget at this time: 1) as is with projected revenue of $675K approved in March, along with the message the budget will be reevaluated in July, or 2) revise the projected revenue and budget downward prior to forwarding to Council for approval. It was noted that Council provides preliminary approval of work plan and budget in June with final approval taking place in August. A revised budget can be submitted to Council prior to final approval. • Board is seeing rapid and deep reductions in their business and feels the budget projection should be reduced now to provide realistic expectations and will revisit in July. • Diane will revise the FY21 budget to reflect a 40% decrease as directed by the board using a projected revenue amount of $400K. The board confirmed that their approval was not needed to on the individual line items within the budget. The budget will be revisited at the July 1 meeting to determine if adjustments need to be made. Motion was made by Lucy Weeder to approve the FY21 Marketing Plan narrative based on a revised revenue projection of $400k. Motion was seconded by Emily Schroeder. Discussion: none. Board approved unanimously. d) Approval of Grant Application – Foy’s to Blacktail Trails: Motion was made by Bryce Baker to approve a Visitor Development Grant of $820 to Foy’s to Blacktail Trails. Motion was seconded by Janet Clark. Discussion: Board members scored the application 85.5 out of possible 100. Board approved unanimously. Round Table Discussion: Dawn Jackson – feedback gathered during calls to TBID hotels has changed from last week to this week. Last week hotels were averaging 8 – 12% occupancy. Staff hours were reduced, not many layoffs, cancellations were being received for March & April, some May and June, not many in July and August. Properties were offering brown bag breakfasts. Travelers were younger or healthcare workers. This week, properties were averaging single digit occupancy except for some of the budget properties who were getting locals and longer term extended stays. June cancellations are picking up but they’re still not seeing a lot for July and August. Conferences are being rescheduled or cancelled. Dawn shared results of a survey taken by MeetingMagazines.com: What is the anticipated action frame on when they plan to resume their meetings and book future events? 5% Prior to June 35% June-August 45% September-December 15% Next year Dawn Hendrickson, Homewood Suites – staff has been reduced to 6, management is covering the front desk, occupancy in low 2 digits for the next 45 days Emily Schroeder, HGI – averaging 15 rooms per night, seeing cancellations for April and beyond, groups are moving dates, difficult to maintain staff morale Bryce Baker, My Place and Marriott Springhill Suites – slow, a couple extended stays, cancellations for April and May, June cancellations are starting to come in, picking up a little in July and August. September is looking strong. Zac Ford and Janet Clark – are having similar experiences at their properties General discussion: • There have been news reports about people who reside in cities looking for rural areas to quarantine which can create problems for the local communities. • Some people feel STR’s should not be allowed to home share during the COVID-19 crisis. • Health departments have more power to shut hospitality businesses down during a crisis than the mayor or governor. Per Scott, county health department on San Juan Island shut down all lodging through April. • City of Whitefish sent a letter asking lodging facilities including STR’s to close until April 30 except for essential travelers. • Governor Bullock issued a directive for a 14-day quarantine for visitors who are arriving from out of state or internationally. It does not apply to people who are in transit through the state • MLHA provides an optional notice to guests regarding the 14-day quarantine. • Bryce will forward a US Dept of Labor COVID-19 poster and an FFCRA poster which has to be posted if applying for aid for the CARES Act. Diane - asked whether board would like to resume the sharing of do-not-rent info as local stays at TBID properties are increasing. Board agreed. Scott – recommends TBID members maintain rate integrity for summer and into fall. Everyone benefits if rates remain steady. It’s generally more advantageous to retain a higher rate even though occupancy might be slightly lower. Meeting adjourned at 4:41 pm. Respectfully submitted: Diane Medler For further information, please contact: Diane Medler, CVB Director, diane@discoverkalispell.com or 406-758-2808