HomeMy WebLinkAboutHotel Motel Tax Board Minutes 2020 July 15ST. JOSEPH COUNTY HOTEL MOTEL TAX BOARD
WEDNESDAY, JULY 15, 2020
Century Center - Bendix Arena
8:30 A.M.
Members Present Members Absent
John Anthony Mark McDonnell
Greg Downes Tom Walz
Joe Kurth
Jenny McNeil
Dan Parker
Paul Pfair
Carmen Piasecki
Gary West
Ron Zeltwanger
The meeting was called to order at 8:30 a.m. by President Anthony. Jeff Jarnecke conducted roll call
of board members. Approval of the consent agenda, including the minutes from the January 22,
2020 Hotel Motel Tax Board meeting, was moved by Greg Downes, seconded by Jenny McNeil, and
motion carried.
FINANCIAL REPORT
Mr. Anthony provided an overview of the current financial environment. For the period ending June
30, 2020, $1,577,041 had been collected with a current cash balance of $4,272,963. He did note the
balance was overstated by $165,000 due to the lag in reporting. Mr. Anthony noted the FY20 budget
was $6,152,942 with $2.588M being disbursed to date.
PRESIDENT’S REPORT
Mr. Anthony noted the challenging times we all are facing due to the pandemic and appreciated the
commitment and continued hard work from the teams at Visit South Bend Mishawaka and the
Century Center.
AGENCY REPORTS
Century Center
Mr. Jarnecke reported on the current financial position of the Century Center. He noted the original
budget included only a $67,000 anticipated deficit; however, now with the pandemic and potential
decrease in Hotel Motel Tax Board funding, the deficit could grow to $250,000 to $500,000
depending on how the event calendar comes together for the balance of the year. Mr. Jarnecke
informed the of the Century Center’s cash operation, which included nearly $1M in capital reserves
along with more than $1.4M in cash. Solvency for the future remains a large concern and while the
building could likely handle a deficit operation in FY20, a second deficit in FY21 would be a greater
challenge and likely require more participation from the County and/or City in the future. Mr.
Jarnecke also noted the majority of the staff have been furloughed since May and appreciated their
patience and professionalism in handling the difficult news. He also noted the general manager
position remains vacant by design, which results in more than $130,000 saved each year. The team
continues to work to identify other efficiencies and economies of scale to help minimize the deficit.
Mr. Jarnecke reminded the board of the importance of the esports initiative and the potential impact
on revenue diversification on the operation going forward. He requested the funding of the LAN
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Gaming Center project, which totals $350,000, along with the repair of the North elevator for
$170,000.
Visit South Bend Mishawaka
Rob DeClene presented an update to the board, which included the unfortunate reduction of force of
two positions within the South Bend Mishawaka team. He did note some bright spots of increases in
hotel occupancy in the 5,100 rooms in the county along with increases in RevPar and ADR. He also
shared the county is generally following the same trend line as the national trends, which continue to
improve month-over-month. Mr. DeClene provided an update on upcoming meetings, events and
bids out for business and specifically cited the continued importance of sports in our county and
communities. He also noted the important working relationship with the Century Center and the
sales operating model going forward for bringing events to the Bendix. He closed by offering
updates on the “Basement Campaign” along with web data.
ALLOCATION COMMITTEE REPORT
Ron Zeltwanger provided an update to the FY20 budget and allocation to the respective agencies.
Due to the pandemic and resulting decrease in anticipated revenues, the allocation committee
recommended a 25% reduction to both Visit South Bend Mishawaka and the Century Center on
select accounts. It is anticipated the second half of 2020 will realize $1.25M in receipts, which would
bring the reserve to $1.958M if adjustments were not made. By making the adjustments, it is
believed the reserve will decrease to $3.6M, which is still a healthy position. A handout was
provided that cited the changes and discussion ensued.
It was moved by Mr. Joe Kurth and seconded Ms. Carmen Piasecki to reduce the funding of Visit
South Bend Mishawaka by 25% as well as reduce the funding of the Century Center’s $1.275M by
25% along with awarding $350,000 for the esports initiative along with $170,000 for the elevator
repair. The motion carried.
It was noted the debt service accounts for the Century Center and the legislated one percent to the
Potawatomi Zoo and Mishawaka Sports Complex were not changed.
OLD BUSINESS
There was no old business.
NEW BUSINESS
Mr. Anthony noted the next meeting is August 21, 2020 but that there would likely be a meeting in
the interim to discuss the FY21 budget. It is expected that the Zoo and Mishawaka would present
updates during the August 21 meeting.
ADJOURNMENT
With no further business, Mr. Anthony entertained a motion to adjourn. It was moved by Mr. Kurth,
seconded by Ms. Piasecki, and the motion carried. The meeting adjourned at 9:30 a.m.
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