Invited Guests/Presenters:
Jim Wachtel, Dickens Associates
David Moore, PFM - Financial Advisor
Charlene Weaver, Financial Services, County of Volusia

Audience Attendance:
Rhonda Orr
Donna de Peyster
Dona DeMarsh
Bob Davis
Sharon Mock
Ann McFall
Valarie Whitney
Gary Brown
Big John, County Councilman

1. CALL TO ORDER

The TDC Board Meeting was called to order at 9:05 a.m., by Dwight D. Lewis, TDC Board Chairman. Lori Campbell-Baker noted the following corrections on Meeting Minute's of July 11, 2001:

1. Statements noted as made by Chris Travis on Page 6 and 8 were made by Lori Campbell-Baker.

2. In statements made by Tom Staed on Page 10, the word contagious, should be contiguous.

2. APPROVAL OF MINUTES

MR. LEWIS called for a Motion to approve the July 11, 2001 Minutes as corrected was made by Jim Bazemore, seconded by Chris Travis. The Motion carried without objections.

3. PRESENTATION OF MOTEL/HOTEL ASSOCIATION

Charlene Weaver will tell us about the finances of the Ocean Center, under Old Business, and answer questions that were asked by the Hotel/Motel Association. Mr. Lewis stated he did not have any problems about the questions being asked in that the TDC is doing the public's business and asking those questions in public is the right place to do it; there isn't anything to hide. We need to look at our finances and make sure it balances and is performed accurately.

MR. HAMILTON advised he had spoken with Mr. Davis of the Hotel/Motel Association who indicated there were no additional comments or questions they wished to make, therefore, this item has been deleted from the Agenda.

4. DISCUSSION WITH ARCHITECT, JIM WACHTEL, ON DEVELOPMENT OF EXPANSION CONCEPT

I asked Jim Wachtel to come this morning; we have him under contract with the Ocean Center to do some other projects here. Jim is our architect and has worked on several projects and Jim has been around with the concept since the stressed skin fabric concept was discussed, he's very familiar with it, so I asked him to come this morning to hear your input, your desire's, and for him to go back to his shop and come back with four to five concepts of your liking. I had relayed to him the information discussed in the Minutes of the last meeting He has the feasibility study and is aware of those things...Jim, would you like to say a few words and then get input?

JIM WACHTEL - not having been here at the last meeting, I didn't have the benefit of the direct input. Rick did tell me what had been discussed, some of the pros and cons of each of the concepts that the Johnson Report showed and some of your own, individual desires. I would like to hear that from your all and get a flow of discussion...if this doesn't work, it means such and such, and does that have any bearing on your desires of what you want to see here as far as use, as far as operations, as far as aesthetics, anything that's open to discussion. Most of my work is to find out what the customer needs. I ask that you share with me what you want to see in this building and what you don't want to see.

MR. LEWIS - we talked about the campus style and I think there was a consensus that nobody was really excited about the campus style. So, we looked at expansion and we talked about expansion for exhibit area's verses the concerts and some kind of design. There was discussion on expanding this way (pointing gesture), just to get around to the back, and that expansion alone was around $14 million. I think we must get back to how much money we have and can we do anything with the amount of revenues that would be produced if we did the one site. I'll just throw that out and the rest of you can comment.

JIM WACHTEL - when you said that you did not favor the campus concept, was that from having the patrons walk to the various elements or the amount of land it took up, why?...

JIM BAZEMORE - well basically, you don't go to a convention and if it's raining outside or if it's cold, you have to walk to get to a meeting, I personally wouldn't like that and I wouldn't go there.

GILLY AGUIAR - at the last meeting we looked at covered walkways. I think our biggest question was the consultant in the report stated we have this amount of dollars we can spend and that's why the report recommended the concept. It was like we were going backwards...

STUART ARP - we have difficulty selling this facility because people who have trade show meeting's...if you have meetings or lunches somewhere else, they lose the traffic. It's all about traffic. When it's split up, you don't get people going through the areas they want them to go through. So, that's why my feeling is the use of a contiguous building to generate more conventions. Otherwise, if the people who are putting them on, the people making the money aren't interested, it will sit empty.

JIM BAZEMORE - may I make this one basic observation: I've been in the hotel business 40 years. For the first time in my history, when guests come in they want to know what the rate is and how much is your taxes. My point is, it's nice to have these good ideas but if people are going to go somewhere else, please bear in mind this (inaudible)...I went back and checked on the advertising tax from our operation since it started, was over a million dollars. That's what I collected to help this project go, and that's why I'm vitally interested in it. But my point is, don't try to put a straw on the camel's back because it will break it...because we have competition and we are not a world unto our own.

LORI CAMPBELL-BAKER - I thought we had questions on what the consultant had said that Rick was unable to answer. The architect can put in context whatever we say, but isn't it the consultant's findings that we really need to research a little bit? We can put together that we want to change this and this, but as a consultant, we wanted to know what they were.

MR. LEWIS - I believe the consultant was more or less directed or confined to the amount of money we would have and therefore was going to build it or design it in blocks or phases because of the constraints of the finances. So, again I think our attempt is to look at it because of those constraints. Maybe that's the way we have to look at it, I don't know...that's the reason we have this committee to discuss it.

LORI CAMPELL-BAKER - (inaudible)

JIM WACHTEL - I don't know if I would be able to answer them but I could, at least from the operations of this facility, talk about that. For instance, when we started looking at the exhibition space expansion and putting it on the West side, we were spending a lot of money and trying to get the East side to be the front door of the Ocean Center with a tram way and all the other work that's going on out there. So now, how do you take the people from that point to the West by cascading through this building?

Well, physically that's difficult because we don't have any way to walk from there to there without going through the auditorium. So, some type of concourse, either up on this level with the new entrance out in the front, to the back, or a new enclosed space on one side or the other, presumably, the South side because the North has the kitchen and that sort of thing. So, an enclosed first level concourse that people walk from there to the back or, upon this level with a new entry, to get people up. So we do have to facilitate the circulation of the people from that front door to this use area, unless you change the front door. And then it gets into traffic patterns, how does this relate to Main Street, how does it relate Atlantic, how does it relate to the River...there are a lot of questions and ideas that can come up.

So, I'll just throw this out...the City is spending a lot of money, you're spending a lot of money, Ocean Walk is spending a lot of money to make this the front door of Daytona Beach. And I would think that the Ocean Center would want to have it's front door there. If so, then the only place to expand is here and you have to get the people back here some way, in a controlled environment, in a first class space, that ties everything together. Am I correct?

TOM STAED - is this hallway here on the second floor, is that the first class space?

MR. HAMILTON - I wouldn't think it was the first class space. No.

TOM STAED - it's almost the same size...

JIM WACHTEL - but there's no connection's from here to the front door, and there's no way to get up from the front main entry to build into the meeting rooms and the banquet rooms there, to get up to this space.

MR. HAMILTON - it's not large enough either.

JIM WACHTEL - ...it's not large enough for elevators, stairs, or a nice open way to get up. When you go into a convention center you should see where you're supposed to go. We don't even have a way to get up here, if there are stairs. But it's a little convoluted to get too. So, that's what I mean, you must really do some work on that grand entry to make a grand lobby to bring you up to a concourse. And then develop this, as we wanted, to circulate the people back to the exhibition space on a second level, and then come back down.

And it may be that if the idea of a campus concept isn't amenable because of walking, that the ballroom or some of the space goes on a second level, with the exhibition space down below. The cost ramifications are structured to hold the ballroom, and the vertical circulation of elevators, escalators and stairs and just the volume of the space. That's going to take space. And, you want that to really it to be a bang-upjob and not give the impression of a half-way done appearance,...you want it nice, but it's going to be expensive. You want it to be a high impact space. The exhibition space can be a warehouse. That doesn't need to be expensive at all. The ballroom can have nice finishes and nice accoutrements, but it's just a big open space to. But the main lobby has to be a real high impact area and large enough to really function properly...as a cost consideration.

LORI CAMPBELL-BAKER - (inaudible)

JIM WACHTEL - that would have to be looked at and that's a possibility. I don't know if there would be a new kitchen or multiple kitchen's. I think the kitchen the Ocean Center has now is probably in the wrong place, or, a major expansion factor...that's the main thing. It may be too small also, and not enough delivery and storage capacity in it's space. That will need to be looked at to. Once you get past that, I would suspect you would have one central kitchen and not multiple kitchen's.

FRANK GUMMEY - Jim, my question and impression is, and it may be all wrong, but I thought that the area would stay on the West side to enable it to be expanded at some future point; and, if you were to put exhibit space on the West end, that would preclude future expansion.

JIM WACHTEL - I'm not sure if that first statement is correct...I haven't heard that. It's certain to be expanded, I think. The only thing to be in the way is Rick's office...

MR. HAMILTON - I haven't heard that either. Tom, Jim, you were on the original group...was area expansion ever considered during that time?

JIM BAZEMORE - it was a compromise and we almost lost it because of the interest rate. We were trying to give everything to everybody and didn't make it.

TOM STAED - we didn't have...(inaudible)

STUART ARP - I appreciate the monies spent here and what you are trying to do, but this concourse area is very, very expensive to wrap around. Have we looked at the cost of creating a new entrance, maybe on the South side over here. If so, you wouldn't have to do this wrap around concourse; and is that expense the same, more, or cheaper by creating a new entrance there than doing all of this?

TOM STAED - I think you will always have to use this back end as an entrance. So, adding to it another entrance, such as has been described makes sense to me. You can always have it's use at ticketed events.

MR. HAMILTON - it doesn't always work with what we have and we have to look to the future. I agree, and the consultant's did look...as a matter of fact, I think it's in the Report that they thought that we should gear everything towards the South. The problem being, and Frank Gummey just brought it up to me, our parking at Adventure Landing is on the North side. So, if we were to go in that direction, it would be my opinion that you not only look at the South, but, you look at the North as well. Maybe you can have a new lobby entrances where Wild Olive is currently, on both the North and Side sides. Does that make sense?... Otherwise, if they park in the current garage, they must walk all the way around the building to get in.

JIM WACHTEL - in fact when we started looking at the skin structure, we showed an entrance there where Auditorium meets Wild Olive, right there, as an entry at that point, and possibly even closing off Auditorium as it goes further toward the river. That has been thought of and that's a possibility.

TOM STAED - most convention halls that I've been to have more than one entrance. There are entrances to different events, your programs are marked with directions to the entrances. This is especially true for Las Vegas, Chicago and Orlando.

JIM BAZEMORE - I've got to comment from the other day over in Orlando, a lot of senior citizens simply cannot walk from one exit to another, so they have to be told the closest entrance to make it in, and make it out.

MR. HAMILTON - Jim, the other idea that came up was the possibility of lengthening it out on the East side for ballroom expansion...

JIM WACHTEL - we've got the space there, obviously. It is the one piece of green space that we have in Daytona Beach. It is a venue for Rick as far as special events and opportunities for that. It is an access into the inter-modal transportation to the tramway... so, right now I think that area is being utilized. If we have no other land, I think that would probably be a prime area. I don't think it's big enough to really... you can put some nice ballrooms out there, but now you're splitting your facility and maybe you would not get economies of scale by putting a part out here and a part out here. But that certainly is an option that could be looked into.

GILLY AGUIAR - one of the other things that I heard in the last meeting was what would be the feasibility of going back and retrofitting this building? Because when we built this it was really a compromise; trying to do ice skating and concerts and trade shows and so forth. If we were retrofitting, and granted, taking out the things that generates the most money for Rick...we only did 4 or 5 concerts last year and the majority our shows were consumer shows and trade show venue's there. What if we were to retrofit this building and build phase one, then we would be up around 140,000 square feet. You could take Wild Olive as a part of that, so we could have good main entrances from both sides, and bring this up to snuff without really needing a phase three unless we jump...(remaining comments inaudible)

JIM WACHTEL - when you talk about bringing this up to snuff, are you talking about exhibition space?

STUART ARP - getting rid of the seating area, how much more space could you develop out of that?

TOM STAED - that's the integral part of this building. I would hate to sacrifice that. There are more than concerts held in there.

MR. HAMILTON - well, we have some large assemblies in there. Some of these provide the most sleeping rooms that need it.

JIM WACHTEL - we don't have many sporting activities any more, like hockey or basketball. But it is the only large sporting arena in this area; on the East side or on the West side. With the performing arts center, there might be no concerts here in the future.

Well, I think there are different venues, and yes, this was a one size fits all type of building originally and it hasn't fit them all very well. So decisions must be made, or let's move performing arts somewhere else.

TOM STAED - what do we really lack? It seems to me the first lack is additional exhibit space. Secondly, and I'm not totally sold on it, is an enlarged place to feed. The Adam's Mark is handling one that bigger than we presently have, and there's not a huge demand for...you have to sacrifice. That's the part that I'd like to see... We might need an exhibit hall that's one story with a capacity to put a second story on it. You must think that through very carefully to build a foundation that would carry it and not end up with.four times the cost.

But, it seems to me what we really need is first, exhibit space and secondly, a first rate banquet facility. Obviously, there will be conventions...if we get enough money we could do both and that would be what I would like to do. But the money and plans had things about it that I didn't agree with, and prices I didn't agree with...(inaudible). I think once you decide what you like, then I think you have to agree to prices more realistically so you can see...(inaudible). then, you've got the basics of how do you do it. What I'm concerned about, Jim, is increasing the hotel tax. I want to say the sales tax increase for schools, I think that's a critical issue for our community...and that's a half cent. Then, if you put another half cents on it, it puts us at a very high level of tax compared to the rest the community...it's a tough decision. What do we want, what do we need to have...what will get you to the next level and next level?...

MR. LEWIS - Tom are you talking about expansion to this building for exhibit space?

TOM STAED - I only know what something will look like when they build it. I can't even tell by the plans...but, someway connected to this building. It seems to me that would put it in to...(inaudible)

MR. LEWIS - I understand your concerns on the sales tax. I know Seminole County is at 7% and we're at 6%, and that extra percent runs out this year. But, they're moving toward reinstating that again, the extra 1%. I think Lake County is going to add another percent and Orange County is looking at something. Maybe at our next meeting we should do some research to see what the surrounding counties are doing. But they are all kind of changing.

JIM BAZEMORE - Mr. Chairman, I point out that New York City thought there was no limit...so, there is a limit...

MR. LEWIS - well I recently returned from Philadelphia and it was 15% there.

GILLY AGUIAR - back to what Tom was saying, I've just got back from the Governor's Conference, they built a brand new facility there. It's all in very close proximity...we need to be able to feed these people for conferences that starts at 8 a.m., and are done by 5 p.m. The other things will happen in hotels across the street...the night time functions, the exhibitor's who are sponsoring dinners, and that kind of thing. But the proximity to move people from room to room, they did that real well there.

The walking is very important too. To save the arena, if the main entrance is in the front and they have to walk this country mile to get to where they're going, I don't know if that function really fits us. So, beside the other entrances...I think the food part to some extent feeds these things. As far as where do we go to the next level, pretty much what this says, and we've talked about it, here's the upper tier level in the Orlando market, the Vegas, the Chicago...but what expanded space will do for us is put us in that second tier level for conventions up to two or three thousand people. And we have such capacity; and in Boca Raton, even though it is a great facility, you can't go back to your hotel room and sit there and look at the ocean. Even if you are down in their club space, you still can't look at the ocean. What I'm getting at is this has to be a facility that can work from 8 to 5...

CHRIS TRAVIS - Rick, your main goal is exhibit space, right?

MR. HAMILTON - I agree with everything that Mr. Staed said. That was our original concept when we came back with the stress skin fabric stretcher and the cost factor at that point time. Gilley has a good point to, but, we can't afford all these things; so, it will have to be phased as we go along

CHRIS TRAVIS - but the main goal is exhibit space?

MR. HAMILTON - yes, the primary need is exhibit space.

CHRIS TRAVIS - if you have a home and you want to expand, you either build upstairs or build in the back. So why not just build to the back? Then, you can have an entrance East, West, North and South, and label them according to what the event is. Where you've got the entrances here, you just do an alcove and still maintain the lobby area structure, so that if you ever want to build a second level you can do so when you have the money.

MR. HAMILTON - we can...again, it goes back to the people being exposed and making the walk. If you don't mind that, then we can do that.

CHRIS TRAVIS - well, if they came in the North entrance they would be right across from the garage. It depends on where the event is...if an event is on the West side of the building, you don't want them to come in on the East side. That's what we said about transportation. So you would need some service from the garage to the West entrance.

MR. HAMILTON - but the people will have to walk from the hotel...across, or to the garage...

CHRIS TRAVIS - but you still need something from the East side.

MR. LEWIS - Jim, are you getting some ideas of where we're trying to get too?

JIM WACHTEL - Let me say one other thing too. I know the main need of the facility is exhibition space. But, I think what you're also looking at is jumping to the next level as far as conventions. You want to bring in that next larger group of people that maybe you can't do right now. And, yes it does take exhibition space, but it may also take other stuff...break-out rooms, meeting rooms and pre-function space and eating facilities. So, even if you spend $10 million to add 100,000 square feet of exhibition space, but you don't have these other things and you don't make that step up to the next level of conventions, then you've wasted that money. Because you've spent it to get this, but you're not getting those larger conventions. So you may need to spend the $15 or $18 million to add some break-out rooms, to add the kitchen facilities, now you can bring in these larger conventions. I think that's one thing the Johnson Report did express, about the need for the various types of space to get up to that. I'm sure the Convention Bureau can help us with that.

You want to put all your money into that which will attract that next level. You don't want to just have exhibits, you want to get conventions.

JIM BAZEMORE - the bottom line is you want a Chevrolet, but you want to make sure it's got four wheels.

STUART ARP - was there ever any discussion about trying to utilize the Peabody in some sort of connectivity? Because that's a great facility for general sessions.

MR. HAMILTON - for assemblies, that's all. But, there again that's 2,500 seats and when we're doing the church associations and stuff, we run 7 or 8 thousand people. That's the difference. If you want to stay in that market segment...

STUART ARP - well it's underutilized and it's right across the street. I'd try to sell that too. What I'm getting success with is the new movie theater going up that will be connected to my hotel, people will be using those during the day when there's nothing going on in the movie theater, and they like that because it's right there. I have a little bit more difficulty getting them to walk outside over here.

JIM BAZEMORE - what's the capacity of the theater's?

STUART ARP - I think they're all about 300 and there's 10 of them. Those are good, small, break-out general session type things.

FRANK GUMMEY - is it crazy to ask why not build an arena to the West and convert this arena into an exhibit and ballroom space?

JIM WACHTEL - that would be more expensive because the exhibition space is probably the least expensive space that you will build. It's a warehouse. An auditorium has some lights and seating. We've got that. It costs money...to tear out the seats and put in cheap space. I think that's sorta the wrong way to go.

TOM STAED - ...what else do we need, very specifically. And secondly pricing, to s ee what it costs...(inaudible)

JIM WACHTEL - you're going to put 100,000 to 150,000 square feet here, that's a lot of space. It will have a major impact upon this whole community, epecially, this side of the community. What does that do to Main Street, Pensuila and Halifax? Not only for transportation but just physically from people trying to get around. I think that master planning of that amount of space and use has to be looked at, and how we want the city to grow and how we want the city to be functional when this is all over. We don't want to put something in and all at once have logger-heads all over the place. So it has to be really planned out.

CHRIS TRAVIS - the one thing about conventions is that they are self-contained, so they wouldn't be out on the road all the time. They would be like our special events, if something is coming that's big, you're going to know when the people come in and when they're leaving. So in working with the traffic, people will need help...

GILLY AGUIAR - from Rick's point of view, it's not a real generator. But, for the community it's a real generator. I see people on Main Street upgrading their facilities for people going out at night because you're a walking distance from all these things we're doing. The impact is going to be to offset what we are losing. How many of these religious assembly type conventions did we do last year?

MR. HAMILTON - there we two larger one's last year.

JIM BAZEMORE - to the larger respect we want to impact everybody? But why does one vehicle have to carry the load?...(inaudible)

MR. LEWIS - we'll look at other means of financing, there'll be several area's. Maybe Sharon (Mock of the Convention Bureau) would like to give us a penny from her advertising authority (laughter from the audience). We'll look at all those avenues...it's something we do need to look at.

I think we've had a pretty good discussion. Jim, you see what we're trying to do. If anybody was here for the LSO and saw the traffic out here; what a disaster that was. I talked with Carey (Smith, Daytona Beach City Manager) to ask for additional police assistance.

I think we must look at this along the same lines that's been discussed and we've got to come up again with maybe some concepts with entrances ways. I think we want to stay contiguous...we have to get with Rick to see how we go about getting the concepts drawn up, and then see what we can afford. I guess they go hand in hand...we will discuss the financing in a minute. But we've got to know what we're trying to get to and what we've got and we've got to have some options; maybe some steps along the contiguous line rather than the campus style.

JIM WACHTEL - we don't want separate buildings because it's too far to walk, and probably to expensive.

STUART ARP - I'd like us to think about a parking lot on the North side...the lot over here that we use is not ours, we have a 100 year lease with the City. They've talked about putting a garage there at some point to aid in the development of Main Street and A1A. If that could be a possibility then that could mean more to the Ocean Walk, Adventure Landing, overflow parking garage; and, this could be, maybe, the primary garage for the Ocean Center.

CHRIS TRAVIS - that is the only thing that property can be used for, a parking garage, right?

FRANK GUMMEY - yes, we have the air rights.

GILLY AGUIAR - we haven't really told him what our target market is. Our focus is not really into...we need more exhibition space, but we haven't said, what is our target. In my mind, I thought we could look at the study and what we're dealing with...to move to that second tier convention level;. because, we have the best views and the best whatever, so what is our target market? We can't be everything to everybody. If we've got two big conventions going in a church, is that worth keeping that segment, When we might be able to bring in 50 more trade shows. So I think we need to let them know what our target market is...if we try to be everything to everybody we're going to end up doing just a little bit more than we can afford, and very shortly.

CHRIS TRAVIS - from the business point of view locally, I assume they would want a week's convention. Maybe the religious groups are going to come out in the evening verses a two or three day exhibit where people will just come in and go home.

JIM WACHTEL - I think there have been studies through the convention and visitors bureau and with Evelyn Fine's group and with the Johnson Group, as to identifying the different orbits. Now, as far as making the decision to go after this market or other markets, that's not the purpose of the study, But, the study's purpose is to say, here's who they are and here's what it takes to get those markets. The leadership needs to say, let's get this kind of space, and the marketing effort can then go after this or that type of market to get them in.

LORI CAMPBELL-BAKER - is that in the report...(inaudible)

5. PRESENTATION OF MAXIMUM BOND FINANCING AVAILABLE WITH CURRENT REVENUE STREAMS

MR. LEWIS introduces Charlene Weaver, Chief Financial Officer for the County of Volusia

MR. HAMILTON - before you start, I wish to say they have spent many hours in the last couple of weeks pulling this information together and I want to thank them.

CHARLENE WEAVER - I' m not going to spend to much time on this issue, I've got our financial advisor here and let me introduce him to you... David Moore.

PRESENTATION BY DAVID MOORE, PUBLIC FINANCIAL MANAGEMENT

Role with the County is financial debt-type financial service. Mr. Moore states that his firm has a lot of experience in this area with consulting services for Orange County for 4 or 5 years and work on these type's of projects throughout the country. The TDC discussion regarding locations is not unique. The Orange County Convention Center will be two separate centers connected by at least a quarter mile walkway, covered and air-conditioned.

Mr. Moore provides and overview of his presentation hand-out and the objectives of his presentation: to (1) walk through the financing in place today, (2) talk about what can be financed without increasing taxes .. (inaudible). And, (3) what an additional 1% can do. Mr. Moore gave a presentation on the History of Tourist Development Tax Financing. Several TDC members had questions regarding existing financing capacity.

6. OLD BUSINESS - FINANCIALS

PRESENTATION BY CHARLENE WEAVER

Ms. Weaver reported that she and her staff had worked diligently on the Ocean Centers' financials for the past week or two. This effort, resulting from the Hotel/Motel Association's inquiry about the alleged missing $13 million, was successful and led to the recent meeting with some of the Association members on August 14, 2001. Ms. Weaver reported the Association's satisfaction with the financials presented, in which all previous years were accounted for.

The prepared hand-outs basically recapped how all the revenues were spent from the beginning in 1977, 1978. Part of the difficulty is that the County processes the Ocean Center accounting into 4 separate funds. Revenues go into the tourist tax development fund and it gets transferred into the other fund where we're actually expending the monies there. In some cases where money needs to be issued for operating funds or other expenditures, in other case money is moved to debt service funds. The summary page depicts all incoming revenues, the expenditures, and Ocean Center fund balance. Overall, Ms. Weaver reported, all the money is accounted for. Several questions followed from the TDC Board:

MR. LEWIS - I know it will take some time to look these over. If you're not sure about the financials, you need to ask, because I will be asking also. We all need to be comfortable in where the money has been spent and that you understand what the balances are, and that all the money is accounted for. Before we do anything, I think we need to make sure that this is understood.

MR. HAMILTON - Jim took another letter yesterday which I will pass out under "new business" and one of his questions is the increase in administrative services.

MS. WEAVER - administrative services are allocated back to all the various departments, then allocated back to the Ocean Center. So, the Ocean Center is paying a portion of staff salaries, expenses, our budget department and various administrative services of the debt is allocated back to the Ocean Center. Mr. Lewis had asked why we had a substantial increase between 1996-97 and 1007-98. What happened was the new manger at the time created a separate service center to oversee parks, Ocean Center, port authorities, airports, beach. Two of those were in the general fund and the other 3 were separate funds. When the separate Center was created, that was an additional administrative overhead, and spread out among the 5 departments. So, 30% of the costs associated with that Center, was allocated to the Ocean Center.

We no longer have that Center, so you should see another reduction in the fall.

TDC Board Members continue to ask questions on:

1. 2% collection fees and interest earned, this is a fee that the tax collector collects for hotel tax. Ms. Weaver reported this is seseparaterom administrative services.

2. Contract Services costs are determined by services used by the Ocean Center. The increase in this budget line item is due primarily to changes from permanent staff to out-source cocontractabor.

3. Increase in Advertising costs. Increases are due to cooperative advertising with the Ocean Center alliance and the money is in contract services now instead of advertising. It has not been reduced, but it's now in a different line item. It was suggested that written clarification be provided on advertising expenses.

4. Events costs are absorbed by people running the events. It comes back in as a reimbursement under revenues, under different line items.

5. 1997 cost for events is when a change occurred from in-house; these expenses are under payroll.

6. Big John commented on savings and staff reductions realized from Mr. Hamilton's initiative of out-sourcing contract labor.

7. NEW BUSINESS

No new business was presented by the TDC.

MR. LEWIS - recognized County Council Member, Ann McFall.

Next TDC Board Meeting is scheduled for 9 a.m., on September 12, 2001. October's meeting is scheduled for 9 a.m., on October 16, 2001.

The meeting was adjourned at 10:45 a.m.

Respectfully submitted by:
_______________________________

Celesta Wiley

TDC Board Meeting Minutes Recorder

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