HomeMy WebLinkAboutHotel Motel Tax Board Meeting Minutes 10-26-23ST. JOSEPH COUNTY HOTEL MOTEL TAX BOARD
THURSDAY, OCTOBER 26, 2023
CENTURY CENTER – RECITAL HALL
8:30 A.M.
Members Present Members Absent
John Anthony Jenny McNeil Gary West
Rob DeCleene Paul Phair
Becky Fletcher Carmen Piasecki
Micki Kidder Kyle Willis
Mark McDonnell Ron Zeltwanger
The meeting was called to order at 8:30 a.m. by President Anthony. Mary Ellen Smith conducted roll
call of board members.
APPROVAL OF MINUTES
President John Anthony entertained a motion to approve the minutes of the 8/3/23 meeting. Jenny
McNeil moved to accept; Becky Fletcher seconded; and motion carried.
TREASURER’S REPORT
Ron Zeltwanger reviewed the 2023 Financial Report ending 9/30/2023. The Mishawaka Sports
Complex/Fund 4926 had a cash balance of $1,565,232.09; the Potawatomi Zoo Capital/Fund 4927 -
$1,035,833.34; Morris PAC Capital/Fund 7403 - $769,163.74; Tourism Capital Investment/Fund 7404 –
$1,289,419.82 and $1 Million was disbursed in July to Visit South Bend Mishawaka to disburse. The
Hotel-Motel Tax/Fund 7304 started 2023 with a cash balance of $6,242,204.65 plus Q1-Q2 receipts
of $4,371,321.51 minus Q1-Q3 expenditures of $5,060,040.09 leaves a Q3 balance of $5,553,486.07.
There is $4,414,089 yet to be disbursed in 2023 plus projected Q4 receipts of $1,700,000.00 which
leaves a projected year-end balance of $6,114,089.00. The 2024 budget that has been approved by
all parties is $6,539,437.
The last four quarters of receipts 2022 Q4 to 2023 Q3 was $6,116,877 which was the highest of four
quarters going back to 2018. Receipts in 2023 Q3 were the second largest since 2018 Q4.
Discussion followed on the debt service of Century Center bonds which was amended to $200,000
higher than the original budget due to a carryover from 2022 which was not paid. The City of South
Bend did not request the funds in 2022 so the “obligation” was carried over to 2023. If the City of
South Bend does not request this to be paid in 2023, it will be dropped in 2024 and not carried over
any further. Zeltwanger will confirm this with John Murphy, St. Joseph County Auditor.
PRESIDENT REPORT
John Anthony thanked Zeltwanger Jeff Jarnecke of Visit South Bend Mishawaka for getting the 2024
budget approved by the St. Joseph County Council in October.
AGENCY REPORTS
MORRIS PERFORMING ARTS CENTER
Andrew Schreiber reported that the Morris co-promoted Shane Gillis on 9/22/23 was sold out. Other
self-promoted shows include Ben Harper & The Innocent Criminals 10/13/23; Rocky Horror Picture
Show with Barry Bostwick 10/27/23; Hip Hop Nutcracker 11/27/23; and comedian Michael Palascak
12/29/23 at the Palais Royale. Other shows of note include Dia de los Muertos 10/29/23 (free
community show in partnership with the South Bend Symphony Orchestra through the Diversity,
Equity and Inclusion fund; South Bend Latin Dance at the Palais Royale 10/25/23; Straight No
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10/26/23
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Chaser returns 11/24/23; and Disney’s Aladdin March 19-24, 2024 (with rent received for set up the
week prior.) There are105 events planned in 2023 which is more than the previous high of 102 events
in 2018. There are already 63 events planned in 2024. The Morris is hosting 6 free community movies
in 2024 as part of the community engagement initiative. YTD 2023 attendance for 54 events is 50,251
guests and $2,641,182 Box Office revenue compared to YTD 2022 attendance for 55 events of 48,294
guests and $2,213,071 revenue.
YTD 2023 revenue of $1,193,354 minus expenses of $1,189,957 left a net profit of $3,397. The Box
Office revenue is higher than the Morris revenue because the majority of the Box Office revenue
from is transferred to the promoters of shows. Additional expenses were incurred for camera security
systems. The Morris will be working with the City of South Bend IT to include the Morris on the City
network for monitoring and recording. Safety and security is a priority at the Morris Center as well as
for Century Center. Budgeted 2024 revenue of $1,535,803 minus budgeted expenses of $1,435,803
leaves a net profit of $100,000. This was budgeted lower than 2023 due to the Palais Royale being
closed for floor and ceiling work in January.
Capital projects in 2024 include a new projector and screen for community movies - $118,000; Box
Office renovation - $40,000; front awning replacement - $25,000; external digital screens replacement -
$100,000; Palais Royale floor refinish - $88,000; and Palais Royale ceiling - $100,000.
CENTURY CENTER
Schreiber reported that revenue to 8/31/23 of $3,037754 minus expenses of $2,961,186 leaves a
net profit of $76,568. The RV show currently taking place will be $215,000 in revenue. Hotel room
nights for 2023 are estimated at 16,300 compared to 14,865 in 2023.
Upcoming Q4 events include Indiana Latino Institute Education Summit; Jurassic Quest Dinosaur
Show; Notre Dame Tax & Estate Planning Institute; Ramencon 2023; Indiana Criminal Justice
Associatoin; Notre Dame Orthopedic Society Annual Symposium; Christian Educators Association;
Grand Design RV University; MCDA Cheer & Dance Competition; Star Spirit Cheer & Dance
Competition; Barletta Boats University; AmeriCheer Indiana Championship. Events in 2024 Q1
include 39th Annual Bridal Spectacular; Valley RV & Camping Show; Martin Luther King, Jr.,
Breakfast and Celebration; 2024 Brewfest; Michiana Boat & Sports Show; PopiCon 2024; Maple Hill
Golf Show; 2024 Heartland Travel Showcase; Michiana Home Show; and SouthBend Auto Show.
Additional funding is needed for the Reuse Study to be completed in 2024. The study will provide
proposals for long-term utilization of Century Center. The Professional Sports and Convention
District funding is being researched to possibly pay the $88,000 - $190,000 study cost by Ratio.
Schreiber will have an update at the 2/27/24 meeting.
Capital projects finishing in 2023 include the Skyway/Art Museum restroom upgrade - $167,046;
catering and kitchen equipment - $72,442; event tables and chairs - $100,000; chiller systems -
$112,153; repair of Island Park pavers - $15,000; bridge decking - $30,000; water softener and
filtration system replacements - $100,000; parking lot seal and stripe - $$49,124; entrance gate
automation - $15,000; and Great Hall lighting - $40,000. Capital projects in 2024 include purchasing
installation/monitoring of security cameras on the City of South Bend network - $100,000; Discovery
Ballroom carpet - $100,000; Convention Hall floor refinish - $100,000; back entrance gate - $150,000;
cleaning equipment - $25,000; A/V equipment replacements - $50,000; event furnishings - $50,000;
Great Hall lighting - $31,000; ice machines - $15,000; and Bendix peripherals - $5,000.
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POTAWATOMI ZOO
Josh Sisk reported that the Zoological Registrars Association Conference was held 10/2-7/2023 and
had over 70 attendees (350 room stays) including from the San Diego Zoo and Bronx Zoo. The new
Bear Café equipment is coming in and should be open in mid-December. The new $4.5-$5 million
state-of-the art tiger habitat is planned to break ground Fall 2024 and open Fall 2025. The Zoo Boo
event this past weekend had over 14,000 people attend over 3 days despite the rain. YTD attendance
is over 300,000. Sisk will report on the 2023 zoo attendance at the 2/27/24 meeting.
VISIT SOUTH BEND MISHAWAKA
Jeff Jarnecke reported that the STR data YTD through September showed that hotels in St. Joseph
County had a 5.7% drop in Occupancy (53% vs. 56%.) Demand was down 8% (707,209 vs. 766,167.)
Average daily rate was up 6% ($125 vs. $118.) The LaPorte and Elkhart neighbor counties are down
15% in Occupancy. VRBO/AirBnB Occupancy was down 11%.
There were 87 sports events 2023 YTD with 140,453 attendees; 31,619 room nights and an economic
impact of $20,534,968 vs. 86 events in 2022 with 142,498 attendees; 35,983 room nights and an
economic impact of $23,755,911. There were 18 conferences/meetings in 2023 YTD with 3,863
attendees and 3,552 room nights vs. 15 events in 2022 with 9,978 attendees and 5,117 room nights.
Leisure marketing 1/1/23 – 9/30/23 had 2,773,012 hotel searches (+35% YOY); 26,892 bookings
(+38% YOY); 46,760 room nights (+68% YOY); $7.1 million hotel revenue generated; and spend
$143,671 (-1.5%)
New and improved venue 2024 planning includes the Mishawaka Fieldhouse, Indiana Dinosaur
Museum, Byers Softball Complex, and South Bend to Notre Dame Urban Trail. Relationships have
been expanded for new sales efforts with Cvent (a platform to identify leads); Helms Briscoe (a
management company that handles meetings for associations across the country); and Digideck
(platform to create content to audiences coming here.) A new marketing campaign will roll out at the
11/9/23 Industry Partners luncheon.
Discussion followed about America’s Youth on Parade (AYOP) and having the event continue to
come to Notre Dame in future years. Jarnecke and Nick Kleva have bet with Don Santell, long-time
organizer and founder of the event. He is not ready to fully delegate his authority to the rest of his
team. Within the next 30 days the 2024 event dates should be solidified. Not having succession in
place could be a potential risk to continuing to have the event in this community after 53 years. VSBM
will continue to work with Don Santell and AYOP to continue to have the event at Notre Dame. There
is a model to hire a freelance operations person to run the event if needed to continue the event in
this community.
The Hoosier Hospitality Award Winner Viridiana Amaya who was nominated by the Inn at St. Mary’s
will be presented an award by the Indiana Lieutenant Governor. The award is presented to front line
hospitality workers.
A Tourism Master Plan would benchmark the VSBM current position within St. Joseph County with
respect to facilities, demand and events being hosted; and will look at improvements. Secondly, it
will create a unifying vision of the hospitality product in St. Joseph County and with partner cities/towns
of South Bend, Mishawaka, New Carlisle, North Liberty, Osceola, and Walkerton. Thirdly, it will further
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amplify the importance of the work by the University of Notre Dame in St. Joseph County. Ten different
firms that prepare master plans for cities, counties and states were researched and meetings were
held with 3 of the companies. Conventions, Sports & Leisure International (CSL) was chosen as it
was involved with the esports initiative at Century Center and are familiar with the City of South Bend
and the University of Notre Dame. The company is experienced with similar size Midwest markets
with a university presence. It is the VSBM recommendation that CSL complete the Tourism Master
Plan based on its proposal and experience with similar studies. This would be organized in 2023,
with site visits and interviews in January 2024 and be completed in Summer of 2024. It is the VSBM
request to fund the $151,000 expense from the special projects line item within the current 2024
budget. Discussion followed that CSL was light on the financial side of other completed master plans
and the suggestion was made to have CSL include that in the master plan even if that increases the
cost. Proposals by CSL on projects to drive room nights and tourism spends would be important.
Treasurer Ron Zeltwanger stated that the expense would be paid from an already approved 2024
budget line item and would not be additional money. Anthony entertained a motion to approve having
CSL complete a Tourism Master Plan. Ron Zeltwanger motioned to approve a Tourism Master Plan
with no dollar amount expense cap to be completed by Conventions, Sports & Leisure International
(CSL) with the additional request to have a stronger financial study; Mikki Kidder seconded; and
motion carried.
MISHAWAKA SPORTS COMPLEX
Billy Bunkowfst, Vice President of Development at Card & Associates, gave an update on the Mishawaka
Sports Complex. The basketball courts are 75% constructed. The $38 million budgeted project remains
on schedule to open late July 2024. There have been no raw material or supply chain issues, and
the steel came in 30 days ahead of schedule. Conversations have started with groups about scheduling
tournaments. Board members will be invited to a beam signing ceremony. The suggestion was
made to use the relationship with the University of Notre Dame.
NEW BUSINESS
None
OLD BUSINESS
None
ADJOURNMENT
With no further business President Anthony entertained a motion to adjourn the meeting. Ron Zeltwanger
moved to adjourn the meeting; Carmen Piasecki seconded; and the meeting adjourned at 9:30 a.m.
JA:mes