[00:00:01]
FOUR, FIVE, SIX.I'M GOING TO GIVE PEOPLE A COUPLE MORE MINUTES TO, UM, SIGN ON LOGIN.
SO I BELIEVE WE'RE WAITING ON A COUPLE MORE
AT FIVE ONE TWO SEVEN NINE ONE.
TRISHA TAITRA INTERIM DIRECTOR CONVENTION CENTER.
I HEARD A TRICIA THAT'S THAT'S OKAY.
[CALL TO ORDER ]
DECEMBER THE 14TH, 2020, UH, HAPPY MONDAY.ALL I HOPE ALL ARE DOING THE, UM, I'M GOING TO GO AHEAD AND CALL THE, UH, CALL ROLL.
UH, COMMISSIONER FLINT IS NOT PRESENT.
CONGRATULATIONS TO HER ON HER WIN AS, UH, OUR NEW DISTRICT TWO, UH, COUNCIL MEMBER.
GOOD MORNING HERE, MR. JOCELYN'S NOT PRESENT YET.
I KNOW HE WAS TEXTING ME EARLIER.
HOPEFULLY YOU WILL BE ABLE TO JOIN US COMMISSIONER BUNCH.
I HAVEN'T SEEN COMMISSIONER BUNCH IS PRESENT.
[00:05:03]
YES.HI, GOOD MORNING, COMMISSIONER CANADY.
I DID NOT SEE HIM PRESENT IN THE LIST HERE, UH, IN MY SELF CARE WAITINGTON PRESENT SO WELL ALL WE DO HAVE A QUORUM, UH, GOING TO START
[1. APPROVAL OF MINUTES a. August 10, 2020 ]
IT OFF WITH A REVIEW AND APPROVAL OF THE MINUTES FROM AUGUST 10TH, 2020, UH, WHICH IS A VIDEO CONFERENCE CALL MEETING.DID YOU CALL, UH, COMMISSIONER ALEXANDER? WELCOME.
I JUST WANTED TO MAKE SURE YOU KNEW.
AND I WAS TRYING TO SHOW MY VIDEO, BUT I'M NOT SURE WHAT, THEY'RE NOT FAMILIAR WITH THE WEB WITH THE WEBEX, SO I'LL BE FIDDLING WITH IT AND TRYING TO, UH, CHILL MYSELF PERIODICALLY.
UM, I MAKE A MOTION TO PASS THE MINUTES.
YOU HAVE A MOTION FROM COMMISSIONER RODRIGUEZ WITH A SECOND FROM COMMISSIONER BAILEY ALL IN FAVOR.
UH, ANY OPPOSED OR ABSTAINING? ABSTAIN, BRIAN, BUT I WAS NOT AT THAT MEETING, SO I CAN'T VOUCH FOR IT.
I'LL ABSTAIN AS WELL FOR SAME REASON.
SO WE HAVE, YOU GOT SIX VOTES, UH, IN APPROVAL AND TWO EXTENSIONS.
UH, THE MINUTES FROM AUGUST 10TH ARE PASSED.
UM, PULLING THE AGENDA BACK UP NOW.
[2a. Discussion of future commission meetings dates and frequency of meetings.]
SO THE FIRST THING THAT WE HAVE, UH, UNDER ITEM TWO FOR OLD BUSINESSES DISCUSSION, A FUTURE COMMISSION, MEETING DATES AND FREQUENCY.UM, I KNOW WE'VE BEEN, UH, HAVING A A HUNDRED TIME GETTING A QUORUM AND GETTING, UH, SCHEDULED, AND I'D LIKE TO SUGGEST THAT WE SEND OUT THE NEXT SIX MONTHS OF MEETING DATES AND, UM, AND PROVE VIA EMAIL, UH, FUTURE DATES.
THERE'S EVERYONE KNOW THAT'S A GOOD PATH FORWARD ON, UH, TRYING TO GET SOME THINGS ON THE SCHEDULE.
AND THEN CAN WE PLAN ON, UM, TRYING TO HIT THE PM TIME ON THE SECOND MONDAY OF EVERY MONTH? UH, SIMILARLY TO OUR PREVIOUSLY SCHEDULED MEETINGS, DOES ANYBODY HAVE, UH, CONCERNS REGARDING THAT? TRYING TO KEEP SOMETHING CONSISTENT ON THAT SO THAT WE CAN GO AHEAD AND BLOCK OUT SOME TIME NOW AND THEN, UH, HOPEFULLY THAT'LL HELP US TO, TO MEET OUR QUORUM AND, UH, AND GET SCHEDULED WITH, WITH THE CITY.
UH, I KNOW THAT THERE'S BEEN CONFLICTS OF SCHEDULING BASED ON THE AVAILABILITY OF THE WEBEX SYSTEM AND THE CONFERENCING.
SO, UH, HOPEFULLY THIS WILL ALLOW US TO, TO MOVE FORWARD AND FIND SOME CONSISTENCY IN OUR TIMING.
YEAH, I'M DEFINITELY THE CONSISTENT MEETING, SO HARD TO MAKE HEADS OR TELL HIM MUCH THESE DAYS.
I, I, UM, I PROMISED THAT I'M GOING TO WORK MORE DILIGENTLY TO GET THIS INFORMATION OUT, UH, AND, AND WORK WITH FELICIA TO GET THESE, THESE MEETINGS SCHEDULED MORE CONSISTENTLY.
SO WE SHALL WORK WITH YOU AND WE'LL TRY TO ADD FOR NOW, LET'S TRY TO GET THE AFTERNOONS, UH, OR THE EVENING TIMES.
UM, THE SECOND MONDAY OF EVERY MONTH HELD ON OUR CALENDARS ON OUR RESPECT TO CALENDARS, AND THEN I'LL WORK WITH FELICIA TO GET THAT, UH, CONFIRMED AND APPROACH.
SO WHAT, WHAT TIMES ON THE SECOND, MONDAY, ARE WE LOOKING AT SIX 30 OR ARE WE LOOKING AT SEVEN, EIGHT? WHAT ARE WE LOOKING AT WHEN YOU SAY EVENING? WE GOING TO DEPEND ON, UM, THE AVAILABILITY OF THE CITY'S CONFERENCING SYSTEMS, BUT I'M GOING TO TRY TO BOOK THE AFTERNOON.
BASICALLY WHAT THEY'RE OFFERING ME RIGHT NOW IS A MORNING OR AN AFTERNOON SLOT.
UM, SO I'M GOING TO TRY TO BOOK THE AFTERNOON SLOT, AND THEN WE CAN CONFIRM THE TIMES I'LL TRY TO GET IT FROM, FROM 6:00 PM
[00:10:01]
TO 8:00 PM, WHICH WAS OUR ORIGINALLY SCHEDULED MEETING TIMES.BUT, UH, JUST UNDERSTAND THAT BASED ON THE AVAILABILITY OF THE CONFERENCING SYSTEM, THAT MIGHT SHIFT A LITTLE BIT, BUT I'LL TRY TO BE CONSISTENT IN THE AFTERNOON THIS, OKAY, THANK YOU.
[2b. State of the industry update and continued impact of COVID 19 on the Hospitality Industry (Visit Austin, Hospitality Community Business Owners) ]
ALL RIGHT.UH, SO WE HAVE, UH, KIND OF A FOLLOW-UP FROM OUR LAST MEETING, UH, AS A PRESENTATION OF THE STATE OF THE INDUSTRY UPDATE AND THE CONTINUED IMPACT OF COVID-19 ON THE HOSPITALITY INDUSTRY.
WE HAVE, UH, NOT ONLY VISIT AUSTIN, UH, VISIT AUSTIN IS GOING TO SHARE SOME, UH, INDUSTRY COMMUNICATIONS THAT THEY HAVE, UH, THAT THEY HAVE PUT TOGETHER AS WELL AS SOME, UM, TESTIMONY FROM SOME OF THE REGIONAL BUSINESS OWNERS IN THE HOSPITALITY SECTOR.
SO, UH, WITH THAT, I WILL HAND IT OVER TO VISIT AUSTIN.
JUST WANT TO MAKE SURE THE COMMISSIONERS CAN HEAR ME THIS MORNING.
THIS IS TOM NOONAN, PRESIDENT CEO, VISIT AUSTIN BORING, TOM.
THANKS FOR HAVING ME THIS MORNING.
FIRST OF ALL, FIRST OF ALL, YOU'LL SEE.
UM, UH, THE FIRST SLIDE I HAVE IS THE SMITH TRAVEL RESEARCH, UM, 20, 20 WEEK OVER WEEK, UM, OCCUPANCY REPORT FOR NOT ONLY THE CITY, BUT ALSO FOR DOWNTOWN.
AND, UH, YOU CAN SEE THAT WE'VE KIND OF LEVELED OFF AROUND 40% OCCUPANCY, UH, THROUGHOUT THE CITY.
WE SEE SOME SPIKES ON WEEKENDS.
WE SEE SOME DIP DURING WEEKDAYS AND YOU'LL SEE A LITTLE LESS OCCUPANCY DOWNTOWN WAS CALLED NEAR 30% OCCUPANCY DOWNTOWN.
UM, AND WE SUSPECT THAT IN DECEMBER, THE NUMBERS WILL DIP AGAIN SLIGHTLY LIKE IT ALWAYS DOES IN DECEMBER.
SO JUST THAT ONE SECOND TO YOUR TOM, I MEAN A FAST, DID WE HAVE A, THE PRESENTATION WE CAN BRING UP PLEASE? ALL RIGHT.
UM, HOSTS, CAN YOU, UH, PLEASE MAYBE GO TO THE NEXT SLIDE WITH THE, UH, THE RESEARCH, UH, THE TRAVEL DATA.
WE HAVE THE TRAVEL DATA IN FRONT OF US, RIGHT? SO JUST KNOW THAT WE'RE, WE'RE TRACKING THIS, UM, YOU KNOW, WITH OUR RELATIONSHIP WITH SMITH TRAVEL RESEARCH, YOU KNOW, EVERY SINGLE HOTEL IN THE COUNTRY EVERY NIGHT SENDS THEIR DATA TO SMITH TRAVEL RESEARCH IN TERMS OF THEIR OCCUPANCY, WHO WAS IN THEIR HOTEL, THE KIND OF RATES THEY PAID X, ET CETERA.
SO THIS IS A REAL SNAPSHOT OF KIND OF HOW OUR MARKET IS DOING, UH, ON A, ON A WEEK BY WEEK BASIS.
AND WE TRACK IT BY NOT ONLY THE DOWNTOWN MARKET SEGMENT, BUT THE ENTIRE CITY AS A WHOLE.
AND YOU CAN SEE THAT, LIKE I MENTIONED EARLIER, WE'VE LEVELED AT ABOUT 40%.
WE SEE SOME SPIKES ON WEEKENDS, AND THEN WE SEE A LITTLE LESS OCCUPANCY IN DOWNTOWN.
SO JUST KNOW THAT WE'RE ALWAYS KEEPING THIS INFORMATION.
UM, AS WE START OUR BOARD MEETINGS, THE FIRST THING WE DO AT OUR BOARD MEETINGS EVERY QUARTER AS WE LOOK AT HOTEL, UH, HOT TAX COLLECTION AND COMPARE IT THAT QUARTER TO THE QUARTER PRIOR TO THE YEAR PRIOR.
SO THIS IS ALL PART OF THE RESEARCH AND THE DATA THAT WE'RE KEEPING, UH, AS, AS VISIT AUSTIN.
SO, UH, ONE MAKE SURE THE COMMISSIONER SAW THIS, KNOW THAT WE ARE COLLECTING THIS DATA AND THAT WE ALWAYS HAVE IT.
WHAT, UH, DO YOU HAVE ANY INSIGHT ONTO WHAT HAPPENED ON THE WEEK OF EIGHT 29 THAT WE SAW A 10% JUMP IN OCCUPANCY LABOR DAY? I S OKAY.
SO W AND WE SAW THAT, YOU KNOW, A LITTLE BIT ON 4TH OF JULY MEMORIAL DAY IS WE'VE SEEN SOME STRONG WEEKENDS.
UH, YOU SEE A LITTLE SPIKES SOMETIMES DURING UT HOME GAMES AND THINGS LIKE THAT, BUT FOR THE MOST PART, YOU KNOW, UH, WE SEE A LITTLE BIT HIGHER OXY ON WEEKENDS, AND WE SEE DURING WEEKDAYS, UM, WE'RE GOING TO SEE A PRESENTATION TODAY BY ADAM SACHS, WHO'S WITH TOURISM ECONOMICS.
UH, HE PRESENTED THIS DATA AT OUR ANNUAL MEETING THIS YEAR, AND ADAM IS THE LEADING ECONOMISTS IN THE TOURISM INDUSTRY.
UM, AND HE'S GOING TO KIND OF INFORM US ON THE TIMETABLE FOR RECOVERY FOR AUSTIN, FOR TEXAS, FOR THE U S AND GLOBALLY.
UM, AND HE, YOU KNOW, HE SPEAKS OFTEN TO THE US TRAVEL ASSOCIATION ORGANIZATIONS LIKE THAT, UPDATING THEM ON THE DATA.
SO I THINK IT'S A REALLY, UM, THOUGHTFUL CONVERSATION THAT HE GAVE US.
I THINK IT'LL BE WELL WITH THE COMMISSIONER'S TIME TO LISTEN TO IT THIS MORNING.
UM, BUT YOU KNOW, WHEN YOU THINK ABOUT IT COMMISSIONERS, UH, WE SHOULDN'T EXPECT FULL RECOVERY UNTIL OBVIOUSLY GATHERINGS LIKE MEETINGS AND FESTIVALS AND CONCERTS AND SPORTING EVENTS CAN OCCUR.
UM, OBVIOUSLY WE'RE SEEING THAT FIRST BIG STEP TODAY WITH SOME OF THE VACCINES BEING DELIVERED.
UM, AND I THINK THAT KIND OF STARTS TO CLOCK, UH, HOPEFULLY, YOU KNOW, SOMETIME IN THE NEXT, UH, MAYBE YOUR CRYSTAL BALLS BY THE MINE SOMETIME THE NEXT THREE MONTHS TO NINE MONTHS, WE'LL START SEEING
[00:15:01]
MORE EVENTS, MORE BEES TAKE PLACE BECAUSE THE VACCINE WILL BE OUT IN, IN, IN IT ROBUSTLY AS WE POSSIBLY CAN.SO, UH, BUT ADAM, ADAM KIND OF WALKS THROUGH THAT.
WHAT'S GOING TO TAKE PLACE THE NEXT TWO OR THREE YEARS.
I'M HAPPY TO TAKE QUESTIONS WITH YOU AFTERWARDS.
UM, I'M EXCITED OR JUST REALLY PLEASED AT THE TOURISM COMMISSIONS ARE TAKING THE OPPORTUNITY TO, TO LOOK AND SEE HOW THE TOURISM INDUSTRY IS DOING.
OBVIOUSLY NOW WE'VE HEARD LOTS OF CONVERSATIONS ABOUT HOW THE MUSIC INDUSTRY IS DOING, AND OBVIOUSLY THE PAINS THAT THEY'RE HAVING, AS WELL AS OUR VENUES, AS WELL AS OUR HOTELS AND RETAILERS AND RESTAURANTS AND THOSE SEGMENTS OF THE TOURISM INDUSTRY.
BUT TODAY, UM, YOU'RE GONNA HEAR IT FROM PEOPLE LIKE, UH, CINDY LOWE.
UM, YOU'RE GONNA HEAR FROM, UH, YOU KNOW, WITH, UH, WITH THE DMC, YOU'RE GONNA HEAR FROM BILLY CARTER, A TRANSPORTATION COMPANY YOU'RE GONNA HEAR FROM ELIZABETH ALDERSON.
WHO'S GOT, UM, UH, SIGHTSEEING, UM, AUSTIN DETOURS, AND YOU'RE GETTING FROM DENNIS RANDOLPH.
WHO'S GOT STRONG PRODUCTIONS WHO DOES, UH, MEETINGS AND EVENTS, PRODUCTION BEHIND THE SCENES KIND OF WORK.
AND I WANT YOU TO HEAR THE IMPACT THAT THIS COVID HAS HAD ON, ON THEIR, UH, SEGMENTS OF THE HOSPITALITY TOURISM INDUSTRY.
NOW THEY'RE GOING TO BE SPEAKING ABOUT THEIR OWN BUSINESSES, BUT THEY'RE REALLY GOING TO BE REFLECTING ABOUT WHAT'S TAKING PLACE IN THEIR SEGMENT OF THE TOURISM HOSPITALITY INDUSTRY.
SO I THINK WITH THAT, UH, UH, CHAIRMAN WOODINGTON, I'D LOVE TO HAVE THE ADAM SACHS VIDEO PLAY OR TAKE ANY QUESTIONS, THE COMMISSIONERS LIKE THAT FIRST.
UM, ANY QUESTIONS FOR US BEFORE WE JUMPED INTO THIS, UH, PRESENTATION? ALL RIGHT.
UH, HOSTS, I GUESS WE CAN GO AHEAD AND RUN THE VIDEO.
IS IT PART OF THE PRESENTATION OR IS IT A SEPARATE FILE? A CHAIR? I HAVE A VIDEO, BUT IT'S ON A DIFFERENT, IT'S ON A DIFFERENT BROWSER.
SO WE CAN GO AHEAD AND BRING IT UP, PLEASE.
ARE WE, ARE WE GOING TO RUN THE VIDEO, SWITCHED IT OVER TO ME, TO MY CANADY FOR SOME REASON, AND I'M NOT SURE WHY, UH, WE HAD, WE HAD IT.
IT'S GREAT TO BE WITH YOU AT LEAST VIRTUALLY TODAY.
UM, AUSTIN IS SOMETHING OF A SECOND HOME FOR ME WITH FAMILY THERE, BUT, UH, BUT ALSO AN ASPIRATIONAL DESTINATION FOR ME, UH, AS A, UM, MORE THAN AN ECONOMIST IN SOME WAYS I'M A MUSICIAN.
AND SO, UH, AUSTIN IS DEAR TO MY HEART.
WELL, I'M GOING TO SHARE WITH YOU SOME THOUGHTS ABOUT THE RECOVERY AS IT IS TAKING SHAPE IN BOTH THE ECONOMY AND TRAVEL AND WHERE WE SEE THINGS HEADED.
UM, SO THIS IS AN AUDACIOUS UNDERTAKING AND APPRECIATE YOU GOING ON IT WITH ME.
UH, I'M GOING TO SHARE WITH YOU A FEW SLIDES JUST TO WALK US THROUGH THIS TOGETHER.
UM, AND I'M PUTTING THIS UNDER THE BANNER OF PLANNING FOR THE RECOVERY, AND I THINK THAT'S RIGHT, BECAUSE WE NEED TO INDEED PLAN FOR WHAT WILL BE IN INEVITABLE RECOVERY.
AND I'LL DESCRIBE WHAT WE THINK THAT'S GOING TO LOOK LIKE.
INDEED, WE'VE EXPERIENCED SOMETHING OF A NASCENT RECOVERY, BUT WE'RE IN THE MIDST OF A PAUSE IN THAT PROCESS.
UH, UNDOUBTEDLY, UM, IF YOU LOOK AT NATIONAL TRAVEL SPENDING, UH, WE'VE SEEN A SIGNIFICANT RECOVERY SINCE APRIL WHEN TRAVEL SPENDING WAS DOWN 87%, UH, MASSIVE RECOVERY SINCE THEN, BUT STILL WE'RE DOWN 42% AS WE TRACK THIS ON A WEEKLY BASIS AND GAINS SEEM TO PLATEAUED AT THIS POINT, IF YOU LOOK AT A NATIONAL LEVEL REVENUE PER AVAILABLE ROOM ON HOTELS, YOU ALSO SEE THIS PHENOMENON OF A STALLING IN PROGRESS.
AND IN FACT, OCTOBER PERFORMANCE IN HOTELS IN THE U S HAS WORSENED SOMEWHAT WITH REVENUE PER AVAILABLE ROOM, UH, CONTRACTING 49% YEAR OVER YEAR COMPARED TO 46% IN SEPTEMBER.
UM, AUSTIN HAS MIRRORED THIS TREND.
AND IF YOU COMPARE 2019 OCCUPANCY
[00:20:01]
RATES WITH 2020, YOU SEE THAT THE GAINS THAT WE EXPERIENCED IN AUSTIN IN THE SPRING AND THROUGH PARTS OF THE SUMMER, REALLY HAVE LEVELED OFF WITH OCCUPANCY RATES.UH, NOW AT ROUGHLY 30 LOW 30%, UH, COMPARED TO, UH, LAST YEAR WHERE WE WERE ABOVE 80%, THE DYNAMIC.
AND WHEN YOU BEGIN TO LOOK AT WHO'S TRAVELING, ALL OF A SUDDEN, YOU SEE A VERY CLEAR DISPARITY BETWEEN, UH, GROUP TRAVEL DEMAND.
THAT'S THE DARK BLUE LINE, WHICH IS DOWN SOME 70% AND TRANSIENT.
THAT'S MOSTLY THE LEISURE MARKET, WHICH IS, CAN WE SAY ONLY DOWN IN THE RANGE OF 40%? SO A DIFFERENCE THERE WERE A GROUP OF COURSE, HAS BEEN MUCH HARDER HIT ALONG WITH CORPORATE TRAVEL THAN THE LEISURE TRANSIENT TRAVELER.
AND WE SEE THAT IN THE OVERALL OCCUPANCY NUMBERS, SIMILAR KIND OF THEME WITH SEPTEMBER SHOWING A BIT OF A WORSENING AS GROUP AND CORPORATE TRAVEL BECOME MORE IMPORTANT THAN LEISURE TRAVEL.
THIS HAS PRODUCED SOME PREDICTABLE OUTCOMES BY HOTEL CLASS AND, UH, IN KIND OF BASIC TERMS, UH, THE HIGHER END, THE HOTEL, THE WORSE, THE PERFORMANCE HAS BEEN WITH LUXURY BY YEAR TO DATE THROUGH SEPTEMBER OCCUPANCY, DOWN 58%.
UH, BUT WHEN YOU GET TO THE ECONOMY CLASS ONLY DOWN 30% BUDGET, ONLY DOWN 16%, YOU CAN ALSO SEE THIS DYNAMIC REFLECTED IN PROPERTY SIZE, AND INDEED THE LARGER PROPERTIES ARE PERFORMING WORSE THAN THOSE SMALLER PROPERTIES IN AUSTIN.
SO OUR VIEW OF KIND OF HOW THINGS ARE DEVELOPING IN TERMS OF TRAVEL, UH, KIND OF REFLECTS HOW PEOPLE ARE GETTING, WHERE THEY'RE GOING, RIGHT? AND SO AUTO TRIPS HAVE REBOUNDED, UH, PRETTY REMARKABLY DOWN, JUST 14% IN THE LATEST DATA.
UH, WHEREAS AIR PASSENGERS ARE DOWN 69% IN THE LATEST DATA.
SO THINK ABOUT AIR TRAVEL BEING DOWN BY TWO THIRDS WHILE HOTEL DEMAND IS ONLY DOWN ABOUT ONE THIRD.
SO CLEARLY TO THE EXTENT THAT PEOPLE ARE TRAVELING, THEY'RE MOSTLY DRIVING TO GET THERE.
AND IT SEEMS LIKE THIS IS ALL REFLECTING THE REALITY OF A STALLED PROGRESS.
UH, WHEN LONG AS INTERNATIONAL ASKS TRAVELERS, DO YOU FEEL SAFE TRAVELING OUTSIDE OF YOUR COMMUNITY? UH, WE'VE LEVELED OFF AND ONLY ABOUT 46% OF RESPONDENTS SAYING, YES, THEY FEEL SAFE TRAVELING OUTSIDE THEIR COMMUNITY.
SO WE'VE GOT A LONG WAY TO GO STILL.
UM, NOW PART OF THE PICTURE OF WHERE WE'RE HEADED IS ABSOLUTELY WHAT THE ECONOMY IS SHAPING UP TO BE.
AND LET ME JUST GIVE YOU THIS ONE SNAPSHOT THAT I THINK IS MOST INSTRUCTIVE.
WE'VE HAD AN INCREDIBLE RECOVERY IN THE JOBS MARKET SO FAR.
SO AFTER A 22 MILLION DROP IN EMPLOYMENT IN THE U S WE'VE REGAINED A LITTLE OVER HALF OF THAT ALREADY.
UM, BUT ONE OF THE THINGS THAT YOU'LL KNOW WITH EACH OF THE MONTHLY GAINS, THE, THE INCREASE IN EMPLOYMENT HAS LESSENED.
AND SO IN THE LATEST OCTOBER DATA, 630, 8,000 NEW JOBS.
AND SO THINGS ARE BEGINNING TO TAPER OFF.
SO WHILE THE FIRST HALF OF RECOVERY WE SAW VERY, VERY QUICKLY, THE SECOND HALF IS GOING TO BE MUCH HARDER TO COME BY.
NOW WE ASK OUR CLIENTS GLOBALLY AND OXFORD ECONOMICS OF WHAT DO YOU EXPECT THE RECOVERY TO LOOK LIKE? AND YOU CAN THINK ABOUT THE ECONOMIC RECOVERY AS SORT OF AN ALPHABET, UH, DIFFERENT LETTERS, REFLECTING THE SHAPE OF THE REBOUNDS AND WHAT WE SEE AS A MOST OF OUR ARE THE LARGEST SHARE OF OUR CLIENTS, SEE THE ECONOMY RECOVERING AND SORT OF A U SHAPE, WHICH MEANS THAT THE RECOVERY IS GOING TO BE SOMEWHAT SLOW, BUT GET, GET BACK TO WHERE WE WERE WITHIN ABOUT TWO YEARS, UM, A NOT AN INSIGNIFICANT SHARE OF ONE IN FOUR ARE CONCERNED ABOUT A W SHAPE.
THAT WOULD MEAN THAT WE ACTUALLY GO BACK INTO RECESSION IN THE COMING MONTHS, AND THEN A SHARE ALSO SEEING AN L-SHAPED WE'RE COVERING NOW, WHAT DO WE THINK? WELL, WHAT WE'RE SEEING IS FIRST OF ALL, THE THIRD QUARTER SAW EXACTLY WHAT WE EXPECTED, WHICH IS A BIG REBOUND OFF OF THE EFFECTS OF THE LOCKDOWN IN THE SECOND QUARTER.
NOW WE'RE AT A MUCH SLOWER PACE OF ECONOMIC ACTIVITY.
LET ME SHARE WITH YOU A FEW REFLECTIONS ON WHERE WE SEE THE ECONOMY GOING THE FIRST IS THAT IT'S VERY UNLIKELY.
WE'RE GOING TO GET BACK UP TO WHERE WE WOULD HAVE OTHERWISE BEEN.
UM, THE PACE OF THE RECOVERY KEEPS US BELOW THAT PRE VIRUS GDP.
UH, THE, THE NEXT THING I WANT TO NOTE IS THAT THE RISKS ABSOLUTELY EXIST ON THE DOWNSIDE AND ARE PROBABLY WEIGHTED TO THE DOWNSIDE OF THIS FORECAST.
WHEN YOU LOOK AT A RETURN TO LOCKDOWNS, AS A POSSIBILITY, AS INFECTIONS CONTINUE TO RISE AROUND THE COUNTRY, THAT DOES RAISE THE RISK
[00:25:01]
OF A W SHAPE RETURNED TO RECESSION.UM, ALONG WITH THAT, A SMALL RISK OF A FINANCIAL CRISIS THERE'S UPSIDE RISK AS WELL, UH, UPSIDE RISK BEING THAT SCIENTIFIC ADVANCES, UH, ACTUALLY RESTORE CONFIDENCE AND INDEED TRAVEL MORE QUICKLY THAN WE EXPECT.
UM, AND THEN A FURTHER NOTE HERE IN TERMS OF, UH, THE EFFECTS OF THE ELECTION.
AND THAT IS THAT ACTUALLY THE BIDEN ECONOMIC PLAN IS PRO GROWTH, UH, BOTH BECAUSE A, UH, MORE OPEN TRADE POLICY, MORE OPEN IMMIGRATION POLICY AND GREATER SPENDING PROGRAMS THAT ARE, THAT ARE SET FOR INFRASTRUCTURE FOR THE ENVIRONMENT FOR EDUCATION, A NUMBER OF OTHER PROGRAMS, BUT ACTUALLY WOULD BOOST ECONOMIC GROWTH RELATIVE TO THE BASELINE OUTLOOK.
NOW, A NEW STIMULUS PACKAGE IS ACTUALLY ABSOLUTELY ESSENTIAL.
WHY IS THAT? IT'S BECAUSE WITHOUT IT, INCOME HOUSEHOLDS BEGINS TO GO NEGATIVE IN THE COMING MONTHS.
YOU CAN SEE HOW THROUGH THE SPRING, THESE TAX REBATE CHECKS AND THAT TOPPING OFF OF UNEMPLOYMENT INSURANCE MADE A BIG DIFFERENCE IN TERMS OF OFFSETTING THE DECLINES IN INCOME TO HOUSEHOLDS, WHAT WOULD THAT EXPIRING YOU NOW? HOW MANY EFFECT OF ALL THOSE LOST JOBS AND LOST INCOME FLOWING THROUGH THE ECONOMY? UNLESS WE SEE ADDITIONAL FISCAL AID, THERE'S A CHANCE WE SEE IT BEFORE THE END OF THE YEAR.
UM, PROBABLY MORE LIKELY THAT WE SEE IT IN JANUARY.
NOW, ONE OF THE POSITIVES HERE IS CERTAINLY FED POLICY.
UH, THE FEDERAL RESERVE EXPECTS TO KEEP INTEREST RATES NEAR ZERO, UH, FOR AT LEAST ANOTHER COUPLE OF YEARS, THAT'S HAVING A MAJOR, UH, KIND OF TAILWIND EFFECT ON THE HOUSING MARKET WITH MORTGAGE MORTGAGE RATES AT RECORD LOWS, IT'S AFFECTING THE COST OF DEBT AND CAPITAL, WHICH IS ENCOURAGING, UH, CORPORATE INVESTMENT IS ALSO OF COURSE REDUCING THE COST OF DEBT FOR HOUSEHOLDS.
SO THIS IS INDEED A KIND OF WIND IN THE SAILS OF THE ECONOMY.
ONE OF THE REASONS WE DON'T THINK A W SHAPE, UH, UH, OUTLOOK IS THE MOST LIKELY ONE.
UM, ALSO NOTE THAT THE SAVINGS RATE REMAINS ELEVATED AMONG US HOUSEHOLDS.
SO EVEN THOUGH IT'S FALLEN FROM WHERE IT WAS IN THE SECOND QUARTER, HOUSEHOLDS ARE STILL SAVING MONEY.
AND SO THAT DOES PUT HOUSEHOLDS IN POSITION OF STRENGTH AS WE GET THROUGH THIS, THIS KIND OF NEXT SEASON OF DEALING WITH THE VIRUS.
SO THIS IS OUR KIND OF FINAL AND PERHAPS MOST IMPORTANT QUESTION WHEN WILL TRAVEL FULLY RECOVER A FEW THOUGHTS ON THIS.
FIRST OF ALL, AS FAR AS A SCHEDULE, THIS IS HOW WE'VE CIRCLED THE CALENDAR, UH, WHERE WE EXPECT DIFFERENT TRAVELERS SEGMENTS TO BEGIN TO RECOVER IN AN APPRECIABLE WAY.
WE SAW THE BEGINNINGS OF THE RECOVERY IN THE SUMMER WITH DOMESTIC LEISURE DRIVE AND SOME DOMESTIC LEISURE FLIGHT.
THE NEXT PHASE WE DON'T EXPECT TO SEE UNTIL NEXT YEAR, PROBABLY THE SECOND QUARTER, WE'LL BEGIN TO SEE ESSENTIAL MEETINGS, SMALL, AND MEDIUM-SIZE EVENTS REGIONAL INTERNATIONAL WITH CANADA, MEXICO.
WE'VE GOT TO WAIT THEN UNTIL THE SUMMER.
AND SO WE EXPECT TO SEE THE RETURN OF LARGE EVENTS AND THE RETURN OF LONG-HAUL INTERNATIONAL IN A WAY THAT REALLY MARKS SIGNIFICANT RECOVERY.
NOW, ONE OF THE REASONS THAT WE THINK THE REBOUND IS GOING TO BE FAIRLY BREASTS ONCE WE DO OPEN UP IN THE SECOND THIRD QUARTER OF NEXT YEAR, IS THAT THE SHARE OF WORKERS WHO CAN TELL A WORK BY WAGE LEVEL IS ACTUALLY HEAVILY SKEWED OR HIGHER INCOME EARNERS.
WHAT THIS MEANS IS THAT OF THOSE JOBS THAT HAVE BEEN LOST, ACTUALLY MOST OF THEM ARE IN LOWER INCOME CATEGORIES.
NOW, WHILE THIS IS INDEED A CRISIS ON A SOCIAL LEVEL, FROM A TRAVEL INDUSTRY PERSPECTIVE, IT HAS AN IMPORTANT IMPLICATION THAT IS THAT OUR MOST FREQUENT TRAVELERS HAVE BEEN RELATIVELY UNAFFECTED BY THIS ECONOMIC DOWNTURN.
NOW THERE'S BEEN A MAJOR RESHUFFLING OF THE DECK.
AGAIN, THE LONGWOOD SURVEY SHOWING THAT, UM, ABOUT ONE IN THREE TRAVELERS ARE SAYING, THEY'RE SWITCHING FROM A FLY TRIP TO A DRIVE TRIP.
AND ONE IN FIVE SAYING, THEY'RE SWITCHING FROM AN OUTBOUND INTERNATIONAL TRIP TO A DOMESTIC TRIP, MAJOR IMPLICATIONS FOR MARKETING STRATEGY AND HOW WE'RE GOING TO SEE THE RECOVERY TAKE SHAPE OVER THE NEXT SIX MONTHS, UM, ON THE INTERNATIONAL FRONT, I THINK IT'S STRIKING TO REALIZE THAT THERE WERE ACTUALLY MORE OUTBOUND TRIPS BY US RESIDENTS THAN THERE WERE INBOUND TRIPS BY INTERNATIONAL TRAVELERS TO THE U S LAST YEAR.
WHAT THAT MEANS IS THAT AUSTIN HAS A SIGNIFICANT OPPORTUNITY TO KIND OF TAKE ADVANTAGE OF ALL THOSE TRIPS THAT ARE NOT GOING OUTBOUND AND CONVERT THEM TO TRIPS TO AUSTIN.
UM, THERE'S ACTUALLY A NET OPPORTUNITY OF 19 MILLION TRIPS, ASSUMING WE FORGO INTERNATIONAL INBOUND, BUT WE RETAIN INTERNATIONAL OUTBOUND AS DOMESTIC TRIPS.
SO AN IMPORTANT IMPLICATION OF MARKETING
[00:30:01]
STRATEGY, BUT ALSO, UH, I THINK A REAL SILVER LINING AS FAR AS OPPORTUNITY GOES.NOW, OUR FORECAST FOR STR EXPECTS, UH, ABOUT A 40% DROP IN ROOM DEMAND THIS YEAR, A SIGNIFICANT REBOUND NEXT YEAR, LARGELY IN THE SECOND HALF OF NEXT YEAR, WE'RE ENCOURAGING OUR CLIENTS TO THINK ABOUT NEXT YEAR IN KIND OF TWO HALVES THE FIRST HALF, UH, CONTINUING TO BE DIFFICULT, BUT THE SECOND HALF SHOWING A STRONG REBOUND, IN FACT, OVERALL 2021 ROOM DEMAND, WE EXPECT TO BE ROUGHLY 80% OF 2019 LEVELS.
AND THEN WE EXPECT US TO GET BACK UP TO PAR WHERE WE WERE IN 2019 IN 2023, IN TERMS OF TOTAL HOTEL ROOM DEMAND IN THE US.
ONE IS HOW DO WE ADVOCATE FOR THE INDUSTRY DURING THIS CRISIS? OBVIOUSLY THE TRAVEL INDUSTRY HAS BEEN HIT INCREDIBLY HARD AND THERE'S A SIGNIFICANT NEED TO ADVOCATE FOR SUPPORT FOR THE INDUSTRY.
UM, LET ME SHARE WITH YOU A FEW DATA POINTS THAT I THINK ARE REALLY POWERFUL IN TERMS OF ADVOCATING FOR SUPPORT FOR OUR INDUSTRY.
THE FIRST IS TO NOTE THAT OVER THE LAST DECADE, THE LEISURE AND HOSPITALITY INDUSTRY HAS INDEED BEEN A STAR PERFORMER IN AUSTIN, LEISURE, HOSPITALITY EMPLOYMENT, AND AUSTIN HAS GROWN 59% FROM THE PERIOD OF 2010 THROUGH 2019, THAT COMPARES TO 49% FOR THE OVERALL ECONOMY IN AUSTIN.
SO CLEARLY LEISURE AND HOSPITALITY HAS BEEN AN ENGINE OF ECONOMIC GROWTH IN THE CITY OF AUSTIN OVER THE LAST DECADE.
BOTH OF COURSE WELL OUT PACING, TOTAL EMPLOYMENT GROWTH IN THE U S SO HOLD THAT THOUGHT IN YOUR MIND AND THEN MOVE TO THIS THOUGHT, WHICH IS THAT NO SECTOR IN AUSTIN HAS BEEN HIT AS HARD AS TRAVEL AS THE LEISURE AND HOSPITALITY SECTOR.
ONE IN FOUR JOBS STILL LOST IN LEISURE AND HOSPITALITY IN AUSTIN.
THE NEXT HARDEST HIT SECTORS INFORMATION, ONLY 13% OF THEIR JOBS LOST.
SO OBVIOUSLY, UH, UH, AN INDUSTRY THAT HAS BEEN HIT VERY, VERY HARD.
AND I THINK THAT THE MOST POWERFUL TURN ON THIS DATA IS TO THEN REALIZE THIS OF ALL THE JOBS LOST IN AUSTIN.
70% HAVE BEEN IN THE LEISURE AND HOSPITALITY INDUSTRY.
WHAT THAT MEANS IS THAT THERE IS NO WAY THAT THE AUSTIN ECONOMY GETS FULLY BACK ON ITS FEET, UNLESS WE GET THE LEISURE AND HOSPITALITY SECTOR BACK ON ITS FEET.
SO IF WE CARE ABOUT ECONOMIC RECOVERY, WE HAVE TO CARE ABOUT RECOVERY AND TRAUMA.
SO A FEW TH THIS IS, THIS IS INDEED MY FINAL THOUGHT FOR YOU.
UM, THIS IS SOMETHING I POSTED, UH, NOW OVER A MONTH AGO TO KIND OF PUT A MARKER ON WHAT WE THINK, UH, THE ENDURING LEGACY OF THIS WILL BE, OR IN FACT WHAT IT WON'T BE.
UM, AND I, AND I WROTE THIS, ALL OUR FORECASTS AND SCENARIOS ARE MORE TO THE NON-NEGOTIABLE ASSUMPTION THAT TRAVEL WILL FULLY RECOVER.
THE PANDEMIC WILL END THE DRIVERS OF TRAVEL INCOME GROWTH, DEMOGRAPHIC SHIFTS, THE IMPORTANCE OF MEETINGS, AND THE INTRINSIC VALUE OF A VACATION WILL STILL BE INTACT.
ON THE OTHER SIDE, HISTORY SUPPORTS THE PREMISE RECOVERY IS INEVITABLE.
NOW THIS ACTUALLY SPURRED A SIGNIFICANT AMOUNT OF DISCUSSION ON LINKEDIN AND SOME DEBATE INDEED.
UM, BUT, BUT WE HOLD VERY STRONGLY BECAUSE EACH CRISIS HAS BEEN HAS PROVEN AGAIN AND AGAIN, THAT ANY PREDICTIONS THAT TRAVEL IS GOING TO BE SIGNIFICANTLY IN PERMANENTLY DAMAGED, UH, HAS NOT AGED WELL TRAVELED HAS ALWAYS FULLY RECOVERED AND THEN FLOURISHED, BUT IT DID GET ME THINKING, WELL, IF THE ENDURING LEGACY OF THIS PRICES WON'T BE A RELUCTANCE TO TRAVEL, WHAT WILL IT BE? UM, AND, AND WILL THERE BE AN ENDURING LEGACY OF THIS CRISIS? AND I DO BELIEVE THERE WILL BE, AND IT WON'T BE A RELUCTANCE TO TRAVEL, AND IT WON'T BE FEAR.
AND THE REASON IS THIS WE'VE HAD SOMETHING TAKEN AWAY FROM US THAT WE HAD ALWAYS TAKEN FOR GRANTED BEFORE.
AND THAT'S THE FREEDOM TO TRAVEL, THE FREEDOM TO GO ANYWHERE.
WE WANT EXPERIENCE CULTURES AND NEW PLACES AND MUSIC.
THEY WOULD LOVE ONES, MAKE MEMORIES, MEET WITH COLLEAGUES AND PARTNERS, ALL OF THOSE THINGS, HAVING BEEN TAKEN AWAY FROM US TO SOME DEGREE WE ON THE OTHER SIDE OF THIS CRISIS WILL BE MORE GRATEFUL FOR IT THAN EVER BEFORE.
AND THAT I'M FIRMLY CONVINCED WILL BE THE ENDURING LEGACY OF THIS CRISIS.
SO THANK YOU SO MUCH FOR HAVING ME WITH YOU.
UH, IT IS ABSOLUTELY PLEASURE AND, UH, WISH YOU ALL WELL ON THE PATH TO RECOVERY.
UM, MR. NOONAN, UM, ANY QUESTIONS ABOUT THAT
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PRESENTATION? I HAVE A QUESTION OR TWO FISHER BUNCH, PLEASE.UH, WELL, MY FIRST REQUEST IS IF WE COULD GET COPIES OF ALL OF THE SLIDES, BECAUSE, UH, WHAT WAS SENT TO US IS ONLY TWO OR THREE OF THEM.
YOU'LL HAVE THEM, YOU'LL HAVE THEM TODAY.
AND THEN, UM, MY NEXT QUESTION IS, YOU KNOW, THIS IDEA THAT IT'S GOING TO BOUNCE BACK BY 2023 TO BE ESSENTIALLY WHAT IT WAS IN 2019.
I MEAN, HISTORY DOESN'T SHOW US THAT FROM THE OIL BUST, YOU KNOW, IT TOOK, UM, YOU KNOW, IT'S ALMOST TOO, JUST RECENTLY TO FULLY RECOVER.
UM, AND THEN, YOU KNOW, THIS, THIS PANDEMIC IS DIFFERENT.
I MEAN, YOU HAVE THE TECH COMPANIES, UM, ALL EMPLOYERS FIGURING OUT THAT THEY CAN DO BUSINESS EFFICIENTLY, EFFECTIVELY, WAY MORE CHEAPLY BY ZOOM, YOU KNOW, BY, BY GLOBAL TELECOMMUTING.
AND SO WHILE I CAN SEE WHERE LEISURE TRAVEL MAY BOUNCE BACK, UH, TO SOME SUBSTANTIAL DEGREE, I THINK WE'LL SEE THE SHIFT THAT, THAT YOU MENTIONED TOWARDS MORE LOCALIZED TRAVEL RATHER THAN INTERNATIONAL TRAVEL.
I THINK PEOPLE'S CONCERN ABOUT GLOBAL WARMING ARE ALSO GOING TO START DISCOURAGE INTERNATIONAL AIR TRAVEL.
BUT I GUESS MY QUESTION IS, IS THERE ANY DATA WHATSOEVER THAT WOULD SUPPORT THAT PREDICTION YOU'RE MAKING THAT EVERYTHING'S GOING TO BE BACK TO, YOU KNOW, HUNKY DORY NORMAL AND A COUPLE OF FEW YEARS, UM, WHEN, YOU KNOW, THERE'S SCADS OF INFORMATION OUT THERE THAT SUGGESTS THE OTHER Y UH, SUGGEST DIFFERENTLY, ESPECIALLY ON THE BUSINESS TRAVEL SIDE, UH, COMMISSIONER BUTTS, I GUESS, I GUESS THE BEST THING I CAN DO FOR YOU IS REACH BACK OUT TO ADAM AND SEE WHAT OTHER DATA THAT HE HAS THAT ANSWERS THAT QUESTION.
THAT YOU'VE JUST GIVEN ME AS WELL AS, YOU KNOW, ANECDOTALLY, YOU KNOW, THE CONVERSATIONS THAT MY SALES TEAM AND I ARE HAVING WITH CUSTOMERS TELLING US HOW THEY'RE SEEING FATIGUE FROM VIRTUAL EVENTS, AND THEY ARE HAVING CONVERSATIONS ABOUT, YOU KNOW, WAITING FOR THE VACCINE TO BE OUT WHEN THEY'RE GONNA START REBOOKING THEIR EVENTS, THEY'RE HEARING FROM THEIR MEMBERS.
THEY WANT TO TRAVEL FOR THESE THINGS.
WE'RE SEEING HAWAIIAN AIRLINES ANNOUNCED A NEW FLIGHT INTO OFFICE STARTING IN APRIL.
SO WE'RE SEEING SIGNS THAT YES, RECOVERY WILL COME TO THE TOURISM INDUSTRY, BOTH FROM AIRCRAFT AS WELL AS EVENTS.
UM, I'M NOT AN ECONOMIST, UH, THEY'LL PLAY ONE ON TELEVISION, UH, BUT I CAN DEFINITELY REACH OUT TO ADAM AND OTHERS AND TRY TO GET THE BEST DATA FOR YOU THAT I CAN, AND I WILL MAKE THAT PLEDGE TO DO SO, MR. BUNCH, THIS IS SCOTT JAZZ.
IF I WOULD ALSO ADD THAT, UH, EVERYTHING I'VE READ SAYS 20, 23 FOR FULL RECOVERY.
UM, WELL, I MEAN, WE FOLLOW ON THE HOTEL INDUSTRY.
WE FOLLOW THE DATA AND THE TRENDS, AND AFTER 2000, I REMEMBER BECAUSE WE WERE PROFOUNDLY AFFECTED AND IT WAS ABOUT THREE YEARS THAT I RECALL THAT WE GOT TO BACK TO WHAT WOULD BE A NEW NORMAL, UM, AND ALL THE INDUSTRY STATS FROM U US TRAVEL THAT I'VE SEEN IN THE OTHER SORTS OF THINGS PREDICT A SIMILAR SORT OF PATTERN.
UH, I I'D LOVE TO SEE, UM, TOM, IF YOU CAN SHARE THAT DATA AND, AND BILL, IF YOU HAVE ANY DATA OR STUDIES THAT SUGGEST OTHERWISE WE CAN, WE CAN SHARE ALL THAT INFORMATION WITH FOLKS, FOR THEM TO CONSIDER ALL THE INFORMATION ON BOARD.
UM, BUT, UH, I MEAN, THERE'S A DIFFERENCE BETWEEN WHAT PEOPLE CAN DO IN A ZOOM MEETING.
YOU CAN, UH, AND, AND, AND FACE-TO-FACE SORT OF CONTACTS AND LEARNING EXPERIENCE THAT YOU'RE GOING TO HAVE AND WHAT YOU CAN HAVE IN PERSON.
AND I THINK A LOT OF ONE-OFF BUSINESS AND CHEAPER BUSINESS THAT ISN'T REALLY THE GOAL OF A CONVENTION CENTER, OR EVEN A CONVENTION CENTER HOTEL, OR A LOT OF HOTELS.
A LOT OF THOSE MEETINGS ARE NOT THE TYPE THAT, UH, COULD BE DONE THROUGH A ZOOM MEETING AS, AS EFFECTIVELY AS THEY CAN BE DONE IN PERSON.
SO, UM, I THINK IT'S CHANGED SOME OF THE PARADIGM.
I THINK THOUGH PEOPLE ARE MORE CONCERNED ABOUT THEIR HEALTH, MORE OPENED UP, UH, OUTDOOR EVENTS AND, AND, AND EVENTS THAT HAVE, HAVE HAD SAFETY AS, AS, AS A STRONGER FACTOR.
BUT I THINK AS WE GET VACCINATION, LIKE TOM SAID, THERE IS A LOT OF PENT UP DEMAND.
THERE'S A LOT OF SPORTS EVENTS, MEETINGS, CONVENTIONS, CONFERENCES THAT ARE
[00:40:01]
THE LIFEBLOOD OF A LOT OF ORGANIZATIONS.AND I DON'T THINK THAT'S JUST GOING TO GO AWAY OR, OR, OR CONVERT ALL THE ZOOM.
THERE'S A LOT OF FINANCIAL REASONS WHY ZOOM MEETINGS ARE NOT AS EFFECTIVE.
YOU CAN'T GET SPONSORS, YOU CAN'T GET COMMITMENTS AS EASILY.
ONE-ON-ONE SORT OF EXCHANGE CAPACITY.
SO THERE'S A, THERE'S A LOT OF DYNAMICS AT WORK THAT, THAT YOU DON'T JUST REPLACE ONE WITH THE OTHER, I'D SAY ANECDOTALLY.
AND FROM MY EXPERIENCE, EVEN PRIOR TO THE PANDEMIC, I THINK THAT THERE IS A LARGE DEMAND FOR IN REAL LIFE EXPERIENCES THAT THE VIRTUAL EXPERIENCE JUST NOT REPLACED.
UM, I THINK THAT IN, IN, AND I WAS, I WAS A BIG PROPONENT OF THE IN REAL LIFE EXPERIENCE, PEOPLE PRIOR TO THE PANDEMIC, WHEN WE START TO SEE A GLOBAL ORGANIZATIONS THAT WERE MOVING TOWARDS MORE REMOTE WORK, BUT YOU NEED THAT TIME TO BRING IT YOUR WORKFORCE, UH, TOGETHER.
AND YOU DO THAT BY CREATING A, UH, A CORPORATE MEETING, RIGHT? A CORPORATE INCENTIVE TRAVEL CORPORATE MEETINGS TO, TO BRING THE TEAM TOGETHER ON THE LEISURE SIDE.
UH, I WILL SAY THAT I'M SEEING A HUGE DEMAND FOR IN REAL LIFE EXPERIENCES, RIGHT.
UM, PEOPLE WANT TO GET OUT, PEOPLE WANT TO BE AROUND OTHER PEOPLE AND, AND TO ECHO WHAT SCOTT WAS SAYING, UH, SAFE AND WELL MANAGED EXPERIENCES ARE GOING BE PARAMOUNT IN CREATING THAT OPPORTUNITY.
UH, AND I THINK THAT THERE IS A STRONG PUSH AND THERE HAS BEEN EVERYBODY IN THE INDUSTRY THAT I KNOW HAS BEEN WORKING DILIGENTLY TO DESIGN, UH, AND PLAN FOR CREATING THESE SAFE EXPERIENCES WHEN THE OPPORTUNITY COMES BACK.
SO I, I DEFINITELY CAN SEE THAT THE, THE DEMAND IS THERE AND, UH, AND THE INDUSTRY IS WORKING HARD TO TRY TO MEET THAT DEMAND WHEN IT BECOMES SAFE TO DO SO WELL, JUST TO RESPOND BRIEFLY TO MR. JOSLIN, AS WELL AS YOU, UH, MR. WILLINGTON.
I MEAN, I AGREE PEOPLE ARE, YOU KNOW, THERE'S GOING TO BE AN EXPLOSION WHEN IT'S SAFE BECAUSE PEOPLE, YOU KNOW, THEY'VE BEEN PICKED UP AND THERE'S GOING TO BE A BIG BUMP AT LEAST FOR A LITTLE WHILE.
UM, AND I AGREE PEOPLE WANT THAT IN PERSON EXPERIENCE.
AND TO ME, THAT THAT IS FUNDAMENTAL AND THAT'S WHY WE OUGHT TO BE INVESTING IN THAT IN-PERSON EXPERIENCE THAT THEY WANT.
AND THAT'S CULTURAL TOURISM FIRST AND FOREMOST, IT'S NOT A GIANT, UNBELIEVABLY EXPENSIVE CONVENTION CENTER THAT DOESN'T GENERATE ANY OF OUR REAL VISITATION.
AND WON'T, UM, PEOPLE ARE COMING TO AUSTIN, UH, FOR SPORTS, FOR BUSINESS MEETINGS THAT HAVE NOTHING TO DO WITH THE CONVENTION CENTER FOR LIVE MUSIC, FOR ARTS, THE CULTURAL TOURISM THAT INCLUDES NATURE, TOURISM AND AGRITOURISM.
AND THAT'S REALLY, YOU KNOW, IF WE WERE BEING HONEST, THAT'S WHERE WE'D BE SPENDING OUR MONEY, UM, ON THE BUSINESS TRAVEL, BOTH THE BIG CONVENTIONS AND JUST, YOU KNOW, GENERAL, UM, I WILL ABSOLUTELY SHARE, YOU KNOW, LINKS OF SOME ARTICLES THAT I'VE READ WITHOUT EVEN HAVING TO LOOK FOR THEM.
UM, BUT I'VE ALSO TALKED TO A COUPLE OF LOCAL CEOS AND THAT WHAT THEY SAY IS WHAT I'VE READ IS FIRST, YOU'RE ABSOLUTELY RIGHT, THE BIG BUSINESS IN PERSON MEETINGS.
THEY'RE NOT GOING TO GO AWAY, BUT THEY'RE GOING TO BE A LOT FEWER OF THEM THAT, YOU KNOW, THEY'LL SEND THEIR PEOPLE TO IN-PERSON MEETINGS, BUT IT'LL BE FEWER AND MORE SELECTIVE.
AND, UH, BECAUSE THOSE DO OFFER SOME ADVANTAGES OVER, YOU KNOW, VIRTUAL MEETINGS, VIRTUAL CONVENTIONS, BUT WHAT THEY'RE ALSO TELLING ME IN
AND THAT FOR, YOU KNOW, BUSINESS TO BUSINESS, YOU KNOW, ONCE HE, UH, TALKING TO ANOTHER ABOUT A BUSINESS DEAL OR SOMETHING, THEY CAN POP AROUND AND FIND THE PEOPLE, YOU KNOW, MUCH MORE QUICKLY, MORE, MORE EFFICIENTLY, THEY CAN MAINTAIN THEIR RELATIONSHIP WITH THEIR EXISTING CUSTOMERS, YOU KNOW, WHERE THEY CAN ZOOM WITH THEM ONCE A WEEK OR TWICE A MONTH FROM WOMEN BEFORE, YOU KNOW, THEY'D HAVE TO GET ON A PLANE AND GO SEE DOWN, YOU KNOW, UH, ONCE EVERY QUARTER OR SOMETHING LIKE THAT.
SO, UM, THERE'S, THERE'S TONS OF INFORMATION OUT THERE THAT, THAT TELLS US BUSINESS HAS LEARNED SOMETHING, AND THAT WE'RE NOT GOING TO GO BACK TO WHAT, THE WAY IT WAS BEFORE THERE'S WILL STILL BE BUSINESS TRAVEL, BUT IT'LL BE SUBSTANTIALLY LESS
[00:45:01]
BECAUSE THE WORLD HAS CHANGED AND THE VIRTUAL MEETINGS ARE WAY BETTER IN SOME ASPECTS OF GETTING BUSINESS DONE.SO WE CAN, YOU KNOW, WE CAN PRETEND LIKE THE WORLD HASN'T CHANGED, BUT, UH, THAT'S NOT, THAT'S, YOU KNOW, THAT'S NOT THE REALITY THAT WE LIVE IN.
UM, SO OBVIOUSLY I DON'T ACTUALLY WORK IN TOURISM THAT AS, UH, WORKING IN THE ENTERTAINMENT INDUSTRY, WE SEEM TO BE INTRINSICALLY LINKED AND WE ARE, UM, SUFFERING THE SAME EFFECTS OF PANDEMIC, UM, THERE THAT IN LISTENING TO, UH, THE INDUSTRY INSIDER AND, UH, CONVERSATIONS WITH THE INDUSTRY WHERE YOU'VE GOT, UM, EMPLOYERS TALKING TO CLIENTS, ET CETERA, ET CETERA, UM, ALL THE, TO ALL THE INFORMATION I'M GETTING FROM INSIDE THE, OUR INDUSTRY IS VERY SIMILAR TO THE PRESENTATION THAT WE JUST SAW, UM, WHERE ESSENTIALLY EVERYBODY IN ENTERTAINMENT AND ENTERTAINMENT INCLUDES TRADE SERVING CONVENTION WORK, THAT EVERYBODY IS, UM, ANTICIPATING, UH, ENTERTAINMENT STARTING TO COME BACK NEXT SUMMER AND, UH, A MORE NORMAL SITUATION WITHIN RESUMED TO MORE, MORE SITUATION WITHIN TWO YEARS.
AND I CAN TELL YOU THAT THOSE THAT WORK WITHIN HOTEL TRADE SHOW AND CONVENTION WORK, THEY ARE GEARING UP AND LOOKING FORWARD TO GETTING BACK TO WORK AS ARE MANY OF OUR WORKERS WHO QUITE LITERALLY ARE STRUGGLING TO PUT FOOD ON THEIR TABLE RIGHT NOW.
SO WE ARE REALLY LOOKING FORWARD TO GETTING BACK TO WORK AT THE CONVENTION CENTER AS SOON AS THIS PANDEMIC ALLOWS.
THANK YOU, VICE CHAIRMAN MCGEE.
AND THANK YOU FOR, UH, FOR YOUR OPINIONS ON THAT COMMISSIONER BUNCH.
UM, UM, MR. NOONAN, DO YOU WANT TO JUMP IN WITH THE REST OF THE PRESENTATION THAT YOU'VE PREPARED? I DO KNOW, UM, THE, ONE OF OUR PRESENTERS HAS AN 11 O'CLOCK, SO, UH, IT MIGHT NEED TO, WE MIGHT NEED TO PULL THIS CONVERSATION FOR A LITTLE BIT TO JUST HEAR HER UPDATE BEFORE SHE HAS TO GO, UM, UH, UH, CHAIRMAN, CHAIRMAN.
I'M NOT SURE WHICH ONE THAT IS THAT, IS THAT CINDY LOWE OR IS THAT ELIZABETH? YEAH, I'M NEXT ON THE DECK.
CAN YOU ALL HEAR ME? OKAY, GOOD MORNING.
THANK YOU FOR HAVING US THIS MORNING.
UM, MY NAME IS CINDY LOWE AND I AM CEO AND OWNER OF RED VELVET, A CREATIVE AND BOUTIQUE EVENTS AGENCY CALLING AUSTIN HOME PROFESSIONALLY FOR 18 YEARS.
AND PERSONALLY OFTEN HAVE BEEN HOME FOR 26 YEARS.
I ALSO RECENTLY CAME IN AS CHAIR FOR THE VISIT AUSTIN BOARD.
I AM CONCERNED ABOUT OUR STATE OF CORPORATE EVENTS.
UH, THE VACCINE DEFINITELY GIVES US HOPE, BUT THE LACK OF ADDITIONAL SUPPORT FROM ANY FEDERAL AGENCY, UM, THERE'S JUST NOT ENOUGH SUPPORT FROM THE CORPORATE MARKET TO SUSTAIN ALL OF US IN THIS LINE OF WORK.
PERSONALLY, AT RED VELVET, WE'VE SEEN A 77% DROP IN REVENUE SINCE MARCH OF 2020.
AND I CONSIDER US ONE OF THE LUCKIER COMPANIES BECAUSE WE HAVE SAVINGS.
WE DID QUALIFY FOR THE FIRST PPP LOAN AND, UH, WE PIVOTED IMMEDIATELY TO DIGITAL EVENTS DURING THIS PANDEMIC.
BUT AS YOU HEARD FROM ADAM SACHS PRESENTATION, W WE'RE NOWHERE OUT OF THE WOODS YET.
AND I'M VERY CONCERNED BECAUSE, UH, OUR FORECAST IS VERY BLEAK FOR THE FIRST HALF OF 2021.
AND I'M HAVING TROUBLE GETTING ANY OF THE CORPORATIONS TO MAKE A MOVE BECAUSE THERE IS A FLAG IN SALES AND MARKETING.
UM, SO THAT KEEPS ME UP AT NIGHT.
I DID WANT TO ADDRESS MR. BUNCHES QUESTION, WHICH IS, I AGREE THE WORLD HAS CHANGED.
NONE OF US HAVE, UH, ANY, ANY OF US HAVE WORKED IN THE INDUSTRY, UH, HAVE NOT DISAGREED WITH THAT.
BUT I WILL SAY WHAT'S INTERESTING ABOUT THE IN-PERSON DEMAND FOR MEETINGS IS THERE IS STILL A CONCERN WHERE THEY CAN'T THE, THE VIRTUAL ALLOWS THEM TO CONNECT WITH SOMEONE THAT THEY HADN'T MET BEFORE, BUT THE IN-PERSON ALLOWS THEM TO CLOSE THE DEAL.
SO THAT'S ACTUALLY WHY THE DEMAND FOR THE IN-PERSON IS SO NECESSARY RIGHT NOW, BECAUSE WHAT THEY'RE FINDING IS THEY'RE HAVING TROUBLE CLOSING THAT DEAL UNTIL EITHER THEY FLY OUT DRIVE OR REALLY DO SOMETHING CREATIVE TO MAKE IT FEEL LIKE THERE'S SOME SORT OF CONNECTION, NOT JUST AS VIRTUAL ZOOM MEETING OR WEBEX, UM, AS CHAIR OF VISIT AUSTIN, I DID WANT TO MENTION THAT I'M CONCERNED ABOUT US PREPARING OUR CITY TO BRING IT BACK TO WHAT I WILL CALL READY STATE, UM, THE HOMELESS VISIBILITY AND THE CLOSURES OF THE INDEPENDENT
[00:50:01]
VENUES AND DOWNTOWN IS VERY REAL.AND THAT IS NOT WHAT WE SELL AS AGAIN, TO OUR CORPORATE GROUPS.
SO IN REFERENCE TO ADAM'S INSIGHT, YOU KNOW, IS YES, DEFINITELY LET'S CAPTURE ALL OF THE LEISURE TRAVEL THE ROAD TRIPS, BUT I DO FEEL THAT WE NEED TO FOCUS ON THOSE TWO BIGGER ISSUES SO THAT WE CAN MAKE OUR CITY AS WELCOMING AS POSSIBLE FOR THESE GROUP MEETINGS, BECAUSE THEY ARE, UH, THERE IS A DEMAND THERE, AND LOT OF THEM HAVE BEEN VERY HOPEFUL THAT THE SECOND HALF OF 2021, THEY CAN BOOK SOMETHING ASSUMING THERE'S AVAILABILITY, UH, IN EITHER THE CONVENTION CENTER OR THE HOTELS.
SO THOUGH I REMAIN CAUTIOUSLY OPTIMISTIC ABOUT OUR FUTURE RETURN.
I CAN'T STRESS ENOUGH THAT SMALL BUSINESSES, ESPECIALLY IN OUR SECTOR OF THE WORLD, UM, ARE SUFFERING, ESPECIALLY IF WE DON'T GET THE SECOND FEDERAL AID OR GET CORPORATE TO KIND OF MOVE.
UM, SO I DON'T WANT PEOPLE TO THINK THAT EVERYTHING'S HUNKY DORY, UH, JUST BECAUSE WE COULD HAVE DONE IT AS A ZOOM MEETING.
I BELIEVE WE HAVE MR. RANDOLPH OR MR. CARTER.
HEY, UH, I'M THE OWNER PRESIDENT OF STRONG PRODUCTIONS, UH, BEEN IN BUSINESS FOR 30 YEARS.
UH, STARTED THE YEAR WE HAD, UH, 20 EMPLOYEES TODAY.
WE'RE DOWN TO EIGHT AND, UH, OUR REVENUE FROM THE FIRST TWO YEARS DOWN 75%.
AND IF YOU GO FROM MARCH 1ST TO NOW, WE'RE DOWN ALMOST 90%.
UH, IT HAD BEEN A PRETTY HARD YEAR FOR US.
UH, AS YOU CAN TELL, WE'VE IN ALL THE YEARS THROUGH THE OH EIGHT RECESSION AND NINE 11, I NEVER HAD TO LAY OFF EMPLOYEES.
WE WERE ALWAYS ABLE TO, UH, FUNCTION.
UH, UH, THE REAL QUESTION IS, IS HOW DO WE SURVIVE FROM THIS POINT FORWARD? UH, THROUGH SWAMP PRODUCTIONS WAS ABLE, UH, THROUGH THE YEARS, PUTTING MONEY IN THE BANK, WE WERE ABLE TO SURVIVE SOME OF THAT THROUGH THAT.
UH, THAT'S BEEN SENT, UH, WE GOT THE PPP, BUT THAT'S BEEN SPENT.
AND NOW WE'RE, WE'RE JUST, UH, BASICALLY, UH, GETTING A LITTLE BIT OF BUSINESS HERE AND THERE TO KEEP THE OVERHEAD, UH, DOWN.
UH, I FLASHED OVERHEAD FROM ABOUT 80% SINCE THE FIRST OF THE YEAR.
SO, UH, WE'RE RUNNING PRETTY LEAN IF I LAY OFF ANYBODY ELSE.
UH, I WON'T BE IN A POSITION IF THIS ECONOMY COMES BACK TO, TO BE EFFECTIVE ANYMORE.
SO WE'RE JUST, UH, TREADING WATER, UH, AND HOPING THINGS, HOPING THAT THINGS TURN AROUND AS QUICKLY AS IT POSSIBLY CAN.
I'VE HAD SOME EMPLOYEES WHO, UH, UNDERSTOOD THE SITUATION AND BEEN WILLING TO MAKE THE SACRIFICES NECESSARY TO GET US TO THIS POINT.
UH, BUT, UH, YOU CAN TELL BY MY, UH, EMPLOYMENT NUMBERS, ONE IN FOUR, IT'S NOT ACCURATE MINE CLOSER TO 60% OF THE LOSS IN THIS INDUSTRY, IN MY PARTICULAR BUSINESS.
UM, WE ARE A, A DECORATING COMPANY.
WE'RE A COMPANY THAT, UH, UH, FABRICATES FOR, UH, ACL SOUTH BY OTHER CORPORATIONS AND BUILD OUT.
UH, WE ALSO A THEME DECORATING COMPANY.
WE PROVIDE, UH, THEMES, EVENTS, AND FURNITURE, AND, UH, OTHER ACCESSORY SIGNS.
WE'VE GOTTEN INTO THE SIGN BUSINESS IN THE PAST COUPLE OF MONTHS, WE'VE GONE INTO THE PLEXIGLASS SHIELD BUSINESS.
WE'VE BEEN ABLE TO GENERATE SOME INCOME THROUGH THAT, BUT, UH, PLEXIGLASS GOT REAL SCARCE AND REALLY EXPENSIVE.
UH, SO IT IS, CONCEPTUALLY WAS A GREAT IDEA.
THIS IS AS THE PRICE OF PLEXIGLASS WENT UP THE DEMAND FOR WHAT WE WERE OFFERING WENT DOWN.
WE'D LIKE TO SEE ANOTHER PPP COME THROUGH.
WE QUALIFIED, BUT THAT LAST TIME, AND, UH, WE'D LIKED TO SEE IT COME THROUGH AGAIN, IF NOT, WE'LL CONTINUE TO TREAD WATER.
THANK YOU, MR. CARTER, ARE YOU THERE? WE HAVE OUR NEXT PRESENTER.
[00:55:01]
NEWTON CHAIR, MR. WILLIAMS. THIS IS ELIZABETH WITH AUSTIN DETOURS.HELLO TO THE COMMISSION? MY NAME IS ELIZABETH ALDERSON.
I AM THE OWNER OF AUSTIN DETOURS, WHICH IS A LOCAL, UH, TOUR AND EVENTS BUSINESS.
WE, UM, THIS IS OUR SEVENTH YEAR IN BUSINESS AND WE ARE A PROVIDER OF EXPERIENCES ACROSS THE BOARD.
WE OFFER TOURS, CITY TOURS, HISTORY TOURS, NATURE TOURS, UM, ART TOURS, MUSIC, LIVE MUSIC TOUR.
WE REALLY, UH, RANGE, UH, FOR ALL DIFFERENT KINDS OF FUN THINGS TO DO IN AUSTIN FOR BOTH LEISURE VISITORS AND CORPORATE VISITORS.
WE CATER FROM THE LONE TRAVELER TO GROUPS OF OVER A THOUSAND CORPORATE GROUPS OF OVER A THOUSAND.
SO OUR BREAD AND BUTTER IS DEFINITELY THE PUBLIC AND PRIVATE, UM, LEISURE TRAVEL GROUPS.
BUT WE ALSO DO A LOT WITH LOCAL CORPORATE AND VISITING CORPORATE, UM, JUST FROM SMALL TO MEDIUM SIZE, UH, MEETINGS THAT ARE VISITING AUSTIN ALL THE WAY UP INTO, YOU KNOW, A GROUP OF 50 GROUP OF 1500 COMFORT CONFERENCE.
AND WE'RE MANAGING ALL OF THEIR LOCAL EXPERIENCES.
UM, WE, AT THE TIME OF THE PANDEMIC WERE, I HAVE TO SAY AT THE HIGHEST OF ALL HIGHS, WE HAD A STAFF OF 27 HERE IN AUSTIN.
WE HAD A SECOND LOCATION IN SAN ANTONIO AS WELL.
UM, AND WE HAD, WE WERE JUST ON TOP OF THE WORLD.
AND WE HAD HAD ABOUT IN OUR, IN OUR PREVIOUS YEAR HAD HAD 27,000, UH, LEISURE VISITORS, ANOTHER 14,000, UM, CORPORATE VISITORS.
AND ON MARCH 11TH, WE RAN OUR LAST TOUR AND WE HAVE BEEN CLOSED SINCE THEN.
AND SO WE HAVE REDUCED, UH, FROM 27 EMPLOYEES TO ONE EMPLOYEE THAT IS PART TIME.
UM, AND, AND THAT DECISION IS MAINLY, UH, AS YOU'VE HEARD FROM THE OTHER SPEAKERS OUT OF DEMAND, BUT, BUT ALSO IN SIGNIFICANTLY, UM, UH, PURPOSEFUL DECISION TO SAY THAT WE WERE NOT GOING TO, UH, ATTEMPT THE VIRTUAL EXPERIENCE SPACE.
UM, WE KNEW FROM THE BEGINNING, UH, WE, WE HAD A FEELING, YOU KNOW, WE TALKED REGULARLY AS A TEAM.
UM, I'M PART OF A LOT OF WORLDWIDE, UH, TOUR CONFERENCES AND GROUPS.
AND I WAS HEARING FROM OUR PARTNERS, ESPECIALLY IN EUROPE ABOUT OPENING, YOU KNOW, OKAY, THE FIRST WAVE IS GONE.
WE FEEL LIKE IT'S SAFE TO OPEN AND THEN HAVING TO CLOSE AGAIN.
AND TH THE WARNINGS THAT CAME SORT OF BEFORE THINGS CAME TO THE US ABOUT, YOU KNOW, BE REALLY CAUTIOUS ABOUT, YOU KNOW, WHERE YOU SPEND YOUR MONEY AND, AND HOW YOU OPERATE RIGHT AWAY IN THE BEGINNING.
THIS IS LONGER THAN WE THINK IT'S GOING TO BE.
AND, YOU KNOW, YOU MIGHT END UP RISKING OPENING AND CLOSING, WHICH INDEED MANY OF OUR PARTNERS IN THE INDUSTRY ABROAD HAD EXPERIENCED.
AND SO WE MADE THE DELIBERATE DECISION TO SHUT DOWN EARLY ON.
UM, ALSO BECAUSE WE DO TOURS THAT ARE WALKING TOURS, BUT PRIMARILY VAN SMALL, SMALL GROUP EXPERIENCES IN AN ENCLOSED VEHICLE.
UM, WE DIDN'T EVER FEEL LIKE IT WAS SAFE FOR BOTH OUR GUIDES AND OUR GUESTS TO OPEN AND THEN RISK CLOSING AGAIN BECAUSE OF COVID.
AND SO WHAT THAT MEANT WAS WE HAD THE OPTION OF DOING DIGITAL, WHICH SOME OF OUR PARTNERS DID DO.
WE DECIDED NOT TO DO THAT MAINLY BECAUSE, UH, WE WANT TO CONSERVE OUR RESOURCES FOR THE DAY THAT WE ARE ABLE TO OPEN, BUT NUMBER TWO, AND MORE IMPORTANTLY, LIKE WE HEARD EARLIER IN THE PRESENTATION WITH AUSTIN, DETOURS HAS ALWAYS BELIEVED STRONGLY IN THE HUMAN EXPERIENCE.
AND WE ARE A COMPANY THAT PROVIDES REALLY MAGICAL MOMENTS FOR THOSE PEOPLE THAT CAN GET TOGETHER AND HAVE THAT, THAT MEMORY LIKE, WOW, DO YOU REMEMBER WHEN WE WERE IN AUSTIN, TEXAS, AND WE DID THAT BOSTON THING TOGETHER.
AND SO WE REALLY BELIEVE THAT WE'LL COME BACK EVENTUALLY AND THAT THERE WILL BE THIS BOOM THAT WE'RE ALL, YOU KNOW, TALKING ABOUT AND HOPING FOR, BUT I'M GOING TO BE HONEST FOR US.
UH, WE DO BELIEVE THAT THAT'S QUITE A WAYS AWAY.
WE'RE HOPING TO REOPEN AT THE END OF SUMMER, BUT THAT'S, YOU KNOW, I THINK THAT'S VERY OPTIMISTIC.
A LOT OF THINGS NEED TO HAPPEN.
UM, FOR THAT OPENING DATE TO BE REALISTIC, I'VE KEPT IN TOUCH WITH OUR OTHER, OTHER TOUR COMPANIES.
AND, UM, YOU KNOW, EVERYBODY'S SORT OF ON THE SAME PAGE, BUT A, YOU KNOW, ALL OF OUR, A LOT OF OUR VENDORS HAVE GONE OUT OF BUSINESS.
YOU KNOW, WE RELY ON RESTAURANTS AND BREWERIES AND FOOD TRUCKS AND LIVE MUSIC VENUES AND MUSICIANS AND ARTISTS, AND, YOU KNOW, THE, THE, WHAT I CALL THE CULTURE CREATORS OF AUSTIN, AND THAT'S REALLY A POPULATION THAT HAS BEEN HIT VERY, VERY HARD DURING THIS PANDEMIC.
AND SO WE ARE ASSUMING THAT OUR, OUR SORT OF RE ENTRY INTO THE MARKET IS GOING TO BE STARTING NEW AND ESTABLISHING NEW RELATIONSHIPS WITH OUR VENDORS IS GOING TO BE A KEY PART OF THAT.
UM, SECONDLY, OBVIOUSLY STAFF, I MEAN, YOU KNOW, WE'VE SEEN A HUGE PLUMMET IN
[01:00:01]
JUST RESOURCES AVAILABLE TO THE HOSPITALITY INDUSTRY.AND A LOT OF OUR STAFF IS NOT ABLE TO GET THROUGH THIS FAR, AND WE DON'T KNOW HOW MUCH LONGER IS LEFT.
SO I ECHO WHAT CINDY LOWE SAID.
UM, YOU KNOW, WE NEED ANOTHER STIMULUS PLAN TO COME THROUGH AND, UM, SOME ADDITIONAL ASSISTANCE, BECAUSE RIGHT NOW WE'RE REALLY STRUGGLING.
I MEAN, MY, MOST OF MY STAFF HAS TRIED TO HOLD ON.
AND LUCKILY THEY'RE
SO, UM, YOU KNOW, WE, WE BELIEVE AT AUSTIN, WE BELIEVE IN A RECOVERY.
UM, BUT WE, WE THINK THAT WE'RE DEFINITELY, YOU KNOW, A GOOD SIX TO EIGHT MONTHS OUT AND, AND STRUGGLING ON HOW TO GET THROUGH THAT.
UH, I THINK FINALLY WE HAVE, UH, MR. CARTER, MR. CARTER, ARE YOU THERE? I KNOW HE'S TRYING TO GET IN.
CAN YOU HEAR ME NOW? YES, WE CAN HEAR YOU.
AND WHEN I GOT BACK ON, I COULD HEAR, BUT YOU GUYS COULDN'T HEAR ME.
UH, MY NAME IS MILLIE CARTER AND MY WIFE AND I OWN CARTER TRANSPORTATION.
WE'RE A SMALL AUSTIN BUSINESS OPERATING AS SUPER SHUTTLE OF AUSTIN AND EXECUTIVE CARVE OFF.
AND WE'VE BEEN PROVIDING TRANSPORTATION TO AND FROM THE AIRPORT AND AROUND TOWN FOR RESIDENTS AND VISITORS FOR 21 YEARS.
UH, AUSTIN IS FORTUNATE THAT IT HAS SOME VERY GOOD AND SAFE LOCAL TRANSPORTATION PROVIDERS.
AND WE AS AN INDUSTRY HAVE BEEN THROUGH MANY UPS AND DOWNS, BUT THIS ONE IS GOING TO BE DIFFICULT TO RECOVER FROM, YOU KNOW, TO GIVE YOU AN IDEA OF OUR COMPANY REVENUES WERE DOWN 95% YEAR OVER YEAR FOR APRIL MAY, AND WE HAVE GRADUALLY INCREASED OVER THE LAST FEW MONTHS TO GET US WHERE WE CURRENTLY ARE, WHICH IS 80% DOWN, UH, YEAR OVER YEAR WITH, UH, OUR BEST WEEK BEING THE THANKSGIVING WEEK, WHEN WERE DOWN 73% YEAR OVER YEAR.
AND IT SEEMED TO SEEM TO BE A CELEBRATORY THING.
WE HAVE CONTRACTS TO TRANSPORT TRANSPORT FLIGHT CREWS TO, AND FROM THEIR HOTELS.
AND THIS HAPPENS REGARDLESS OF THE AMOUNT OF PEOPLE THAT ARE ACTUALLY ON BOARD.
THE PLANES, UH, THIS CURRENTLY IS MAKING UP 60 OR 70% OF OUR REVENUES.
AND SOME OF THE OTHER TRANSPORTATION COMPANIES HAVE NOT HAD THAT REVENUE SOURCE, UH, HISTORICALLY OVER 50% OF OUR NORMAL BUSINESSES DRIVE FROM MEETINGS AND EVENTS THAT HAPPEN IN AUSTIN.
AND WE'RE TOLD BY THE LEADERS OF ASSOCIATIONS, AND WE'VE HEARD TODAY, UM, UH, THAT THIS WILL NOT FULLY RETURN UNTIL THE SPRING OF 2021, OR POSSIBLY EVEN 2022 AS USUAL.
WE EXPECT AUSTIN TO EXCEED THOSE ESTIMATES AND FORECASTS BECAUSE PEOPLE ARE READY TO TRAVEL.
AUSTIN ARE GOING TO BE AT, IS GOING TO BE AT THE TOP OF EVERYONE'S LIST.
THE OTHER 50% OF OUR BUSINESSES DRIVE FROM LOCAL BUSINESS AND LEISURE TRAVEL WITH YOUR ARE DOWN 80%.
AND WE BELIEVE THESE SEGMENTS WILL BE, WILL BEGIN TO RECOVER SOONER, BUT, BUT PROBABLY NOT BE FULLY REALIZED UNTIL 2022.
MANY OF OUR FELLOW TRANSPORTATION COMPANIES HAVE SEEN NUMBERS EVEN WORSE THAN OURS.
WELL, OVER 90% DOWN YEAR OVER YEAR THROUGHOUT THE PANDEMIC WITH LARGE BUS OPERATORS BEING HIT, THE HARDEST NATIONALLY BUS OPERATORS HAVE BEEN FORCED TO LAY OFF 70% OR MORE OF STAFF AND EXPENSES RELATED TO DEBT SERVICE AND INSURANCE ON THESE LARGE VEHICLES AND THE EQUIPMENT NEEDED TO SAFELY OPERATE.
THESE CAPITAL INTENSIVE COMPANIES HAVE PUT BUS OPERATORS IN EMINENT DANGER OF GOING OUT OF BUSINESS.
W AS SUPER SHUTTLE, WE'VE CUT OUR EXPENSES.
WE, UM, WE'VE HAD TO GIVE UP OUR ADMINISTRATIVE OFFICE AND OUR AIRPORT TICKET COUNTER.
WE HAVE OPERATED A SUPERSHUTTLE TICKET COUNTER AT THE AIRPORT FOR THE LAST 21 YEARS.
AND IT, IT HAS BEEN AN IMPORTANT PART OF OUR BUSINESS SUCCESS AND CUSTOMER SERVICE, BUT IT'S EXTREMELY EXPENSIVE.
WE WERE GIVEN SOME RENT RELIEF FROM OUR LANDLORD AT THE ADMINISTRATIVE OFFICE, BUT WE'RE NOT GIVING ANY RENT RELIEF BY, UH, AUSTIN BERGSTROM AIRPORT.
UH, IT HAS BEEN A CHALLENGE FOR OTHER TRANSPORTATION COMPANIES AS WELL.
AUSTIN TRANSPORTATION COMPANIES CONTINUE TO BE CHARGED IN FULL FOR PERMIT FEES, AIRPORT, EXIT FEES, AND RELATED ADMINISTRATIVE COSTS.
WHILE OUR SISTER CITIES OF SAN ANTONIO AND HOUSTON HAVE WAIVED PERMIT FEES AND ADMINISTRATIVE COSTS FOR ALL GRANT, GROUND TRANSPORTATION COMPANIES THROUGHOUT THE PANDEMIC.
WE, WE RENEWED OUR COMMERCIAL VEHICLE INSURANCE IN NOVEMBER AND RECEIVED A, UH, AN INCREASE IN PREMIUM OF OVER 30%.
[01:05:02]
NOT, NOT BECAUSE OF LOSSES INCURRED BY OUR COMPANY.UH, JUST A GENERAL STATE OF THE COMMERCIAL VEHICLE INSURANCE MARKET.
UH, ANOTHER COMPANY WE SPOKE TO IN FLORIDA JUST RENEWED AND HAD A 50% INCREASE IN PREMIUM.
MANY OF THE COMPANIES LOCALLY, UH, ARE IN THE PROCESS OF RENEWAL AND EXPERIENCING THE SAME INCREASES IN QUOTES.
THEY'RE RECEIVING ALONG WITH THE ONEROUS INCREASES IN DEDUCTIBLES AND RESTRICTIONS REGARDING THE REMOVAL OF VEHICLES.
WHEN A VEHICLE IS NOT NEEDED FOR SERVICE FOR AN EXTENDED PERIOD OF TIME STAFFING PREVIOUSLY, WE HAD 65 FULL-TIME DRIVERS, 10 PART-TIME DRIVERS, A TOTAL OF 75.
CURRENTLY WE HAVE 11 DRIVERS OPERATING.
WE HAD 14 FULL-TIME EMPLOYEES.
WE HAVE THREE, INCLUDING MY WIFE AND MYSELF.
OUR BIGGEST CHALLENGE HAS ALWAYS BEEN RECRUITMENT OF PROFESSIONAL DRIVERS.
AND MOST OF OUR DRIVERS THAT WE HAVE ON FURLOUGH HAD TO FIND WORK IN OTHER FIELDS.
AND IF, AND WHEN BUSINESS BEGINS TO REBOUND, THIS WILL BE ANOTHER EXPENSIVE HURDLE TO OVERCOME FOR ONE OF OUR, UH, FOR OUR COMPANY.
THE BIGGEST CHANGE IS THAT BECAUSE OF THE CORONAVIRUS AND SOCIAL DISTANCING, WE'VE BEEN UNABLE TO OFFER, OFFER OUR DISCOUNTED SHARED RIDE OPTION, AND THAT ALLOWS GROUPS TO RIDE ON THE SAME VEHICLE GOING TO THE SAME AREA.
AND BECAUSE OF THAT, WE, WE HAVEN'T BEEN ABLE TO, TO OFFER THAT SERVICE, UH, CLEANING AND SANITIZING PROCEDURES FOR THE VEHICLES ARE TIME CONSUMING AND EXPENSIVE, BUT OF COURSE, ABSOLUTELY NECESSARY FOR THE SAFETY AND PROTECTION OF OUR CUSTOMERS.
UM, MANY OF TRANSPORTATION COMPANIES, OURSELVES INCLUDED ARE PROVIDING TRANSPORTATION AT SIGNIFICANTLY DISCOUNTED RATES IN ORDER TO KEEP THE VEHICLES MOVING.
BUT WITH THE INCREASED COSTS OF THESE THINGS THAT THAT IS BEING THAT'S ONEROUS, LOCAL TRANSPORTATION COMPANIES ARE COMMITTED TO AUSTIN.
WE'RE WORKING VERY HARD TO SUPPORT ONE ANOTHER AND DO EVERYTHING WE CAN TO STAY IN BUSINESS AND COME OUT ON THE OTHER SIDE OF THIS, WE ALL BELIEVE IN AUSTIN, AND WE BELIEVE THAT AUSTIN WILL COME OUT OF THIS STRONGER AND MORE IN DEMAND AS A DESTINATION THAN EVER BEFORE.
WHEN THAT HAPPENS, AUSTIN WILL NEED TRANSPORTATION PROVIDERS WHO ARE ALMOST EXCLUSIVELY LOCAL, SMALL BUSINESSES TO BE READY TO TAKE CARE OF THE TRAVELERS AND THE RESIDENTS OF AUSTIN.
WE HOPE THAT THERE'LL BE SOME ADDITIONAL RELIEF, UH, OR ASSISTANCE FROM THE CITY, UH, THAT MAY TO HELP US WITH OUR FEES AND TO GET THROUGH THAT.
AND WE ALSO ARE VERY LOOKING FORWARD TO SOME MORE FEDERAL RELIEF.
I APPRECIATE YOU LETTING ME SPEAK.
AND I APPRECIATE EVERYONE'S TIME, UH, AND COMING TO PRESENT ON THIS, UM, DUE TO SOME TIME CONSTRAINTS, I'D LIKE TO TABLE THIS TO THE Q AND A PORTION OF THIS UNTIL LATER ON IN THE MEETING SO THAT WE CAN GET, UH, THE PRESENTATION FROM VISITING, UH, FROM, UH, AUSTIN CONVENTION CENTER.
KATIE'S, MESMERIC REGARDING ITEM 43, WHICH IS ON THE AGENDA AS THREE B.
UM, BECAUSE I KNOW THAT SHE HAS A CONFLICT WITH ANOTHER MEETING TO GET TO, UM, IS EVERYONE OKAY WITH TABLING THIS DISCUSSION FOR, UH, FOR A BRIEF MINUTE WHILE WE JUMP, JUMP AGENDA ITEMS BRIEFLY, AND THEN COMING BACK FOR Q AND A, RIGHT.
[3b. Briefing and discussion regarding Item 46 from City Council Meeting on 12/3/2020 directing the City Manager to establish an Iconic Venue Fund that provides seed funding to allow the Austin Economic Development Corporation to implement as a project, historical restoration and preservation projects, and/or visitor information centers as provided for under Texas Tax Code Sections 351.001(8) and 351.101. (Austin Convention Center – Katy Zemesnik) ]
MOVING ON TO THREE B UM, TEDDY'S, MESONET FROM THE AUSTIN CONVENTION CENTER TO TALK ABOUT, UH, UH, COUNCIL, UH, ITEM FROM COUNCIL THAT WAS, UH, VOTED ON ON THE DECEMBER 3RD, A COUNCIL MEETING AND APPROVED, UM, DIRECTING THE CITY MANAGER TO, UM, ESTABLISH AN ICONIC VENUE FUND AND PROVIDE SEED FUNDING TO ALLOW THE AUSTIN EDC DEVELOPMENT CORPORATION TO IMPLEMENT AS A PROJECT, UH, HISTORICAL RESTORATION AND PRESERVATION PROJECTS AND OR VISITOR INFORMATION CENTERS AS PROVIDED UNDER THREE 51.UM, MS. SEMEST, NICK, WELCOME.
AS FAR AS I KNOW, KATIE'S MESSAGING IS NEEDED RIGHT NOW.
KATIE, ARE YOU THERE? HELLO, KATIE.
[01:10:09]
KATIE, ARE YOU THERE? I THINK THE LAYS, I MIGHT REACH OUT TO HER.SO AS WE CAN SEE THE VIRTUAL MEETINGS DO HAVE SOME THINGS TO BE DESIRED OVER IN REAL LIFE EXPERIENCES.
JERRY, I DON'T SEE HER NUMBER UP ANYMORE.
IF YOU MAY HAVE GOTTEN DISCONNECTED, I'LL KEEP AN EYE OUT.
WILL YOU JUST LET US KNOW? UM, YEAH, SHE JUST TEXTED ME AND SAID, SHE'S CALLING RIGHT BACK IN JUST A SECOND.
JODI, CAN EVERYONE HEAR ME? HELLO? YES, WE CAN HEAR YOU.
I DON'T KNOW IF JUST BEING ON HOLD FOR THAT LONG, JUST MEANT THAT I GOT KICKED OUT.
UM, SO I THINK, UM, CAN WE GO AHEAD AND PULL UP THE RESOLUTION ON THE SCREEN AND I'LL GO AHEAD AND GET STARTED? UM, I THINK I SAW EARLIER.
AND I APOLOGIZE FOR THE DELAY.
UM, MY NAME IS KATIE MESMERIC AND I'M ACTING CHIEF ADMINISTRATIVE OFFICER FOR THE AUSTIN CONVENTION CENTER.
UM, AND I'M JUST GOING TO GIVE YOU A QUICK OVERVIEW OF THE RESOLUTION THAT COUNCIL PASSED ON DECEMBER 3RD RELATED TO THE ESTABLISHMENT OF AN ICONIC VENUE FUND AND THE FINANCIAL IMPACT OF THAT RESOLUTION ON THE CONVENTION CENTER.
UM, AND SO AS I HEARD THE CHAIR SAY, ITEM 46 ON THE DECEMBER 3RD COUNCIL MEETINGS DIRECTED THE CITY MANAGER TO ESTABLISH AN ICONIC VENUE FUND THAT PROVIDES DEFUNDING, UH, TO ALLOW THE AUSTIN ECONOMIC DEVELOPMENT CORPORATION TO IMPLEMENT AS A PROJECT TO HISTORICAL RESTORATION AND PRESERVATION PROJECTS AND OR VISITOR INFORMATION CENTERS AS PROVIDED FOR UNDER TEXAS TAX CODE, SECTION THREE 50 ONE.ZERO ZERO ONE EIGHT AND THREE 50 ONE.ONE OH ONE.
SO PERTINENT TO THE FINANCIALS OF THE CONVENTION CENTER OR THE FIRST THREE, BE IT FURTHER RESOLVED THAT BEGIN ON PAGE FOUR OF THIS RESOLUTION.
I'M THE FIRST TO IDENTIFY AND DRAW 2.4 MILLION IN HOTEL OCCUPANCY TAX FUNDS FROM THE CONVENTION CENTER CAPITAL FUND.
AND THE THIRD DIRECTS THE CITY MANAGER TO IDENTIFY A FURTHER 2.5 MILLION A YEAR IN FUNDING FOR THE ICONIC VENUE FUND UNTIL TOTAL FUNDING IS AT 15 MILLION.
SO RELATED TO THE FIRST TWO, THE CONVENTION CENTERS PREPARING A BUDGET AMENDMENT TO BRING BEFORE COUNCIL IN JANUARY, 2021, UH, TO TRANSFER THAT 2.4 MILLION FROM THE CONVENTION CENTER CAPITAL FUNDS TO THE ICONIC VENUE FUND.
UM, WE WILL BE CONSULTING WITH OUR BOND COUNCIL AND OUR FINANCIAL ADVISORS TO DETERMINE THE IMPACT ON OUR BOND RATINGS, UM, AND THE OVERALL EXPANSION FINANCING PLAN AS A RESULT OF THIS TRANSFER.
UM, AND THEN RELATED TO THE THIRD IS, ARE UNDER, YEAH, I'M SORRY.
I DON'T MEAN TO INTERRUPT, BUT CAN WE ACTUALLY SCROLL TO PAGE FOUR? IS YOU'RE TALKING ABOUT PAGE FOUR.
CAN, IS THAT, CAN WE DO THAT CITY HALL UV? I DIDN'T HEAR ANYTHING.
SO I WAS DONE ONE ALL LISTEN UP.
UM, SO CAN WE GO TO PAGE FOUR? YES.
I THINK THERE'S DELAY ON THE SCREEN.
UM, SO THEN RELATED TO THE THIRD BULLET FOR THE RESULTS, WHICH I THINK IS ACTUALLY ON PAGE FIVE, UM, IT'S OUR UNDERSTANDING THAT CITY STAFF, SO FINANCE LEGAL AND CITY MANAGEMENT, UM, ARE WORKING ON, UM, THE IDENTIFYING THE APPROPRIATE SOURCE FOR THE TWO AND A HALF MILLION PER YEAR.
UM, AND THEY'LL BRING THAT BACK TO COUNCIL IN JANUARY PER THE RESOLUTION GUIDELINES.
UM, WE SENT A MEMO TO COUNCIL KIND OF RELATED TO ALL OF THIS, WHICH I'M HAPPY TO PROVIDE TO THE COMMISSIONERS FOLLOWING THIS MEETING.
UM, AND THAT'S SORT OF THE UPDATE THAT I HAVE RIGHT NOW.
UM, WE'RE STILL WORKING THROUGH ALL OF THE ELEMENTS WITHIN IT, UM, BUT THAT'S KIND OF HOW IT RELATES TO THE CONVENTION CENTER FINANCES AT THIS TIME.
UM, SO I'M HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE ON HOW THIS RELATES TO THE CONVENTION CENTER AND THE RESOLUTION.
[01:15:01]
ON THE LIMITATIONS OF, UM, SURROUNDING USE, UH, UNDER, UNDER STATE LAWS SURROUNDING USE FOR, UM, VISITOR INFORMATION CENTERS.I KNOW THAT THAT'S BEEN AN ONGOING CONVERSATION.
UM, MR. JOSEPH, DO YOU HAVE SOME INSIGHT ON HOW THAT IS ADMINISTERED AND MANAGED AND WHAT THE EXPECTATIONS ARE AROUND VISITOR INFORMATION CENTERS, COMMISSIONER JOCELYN, ARE YOU THERE, UH, HOST, CAN YOU MAKE SURE THAT MR. JOSLIN IS UN-MUTED OR AVAILABLE TO BE UNMUTED LOOKING INTO THE CHAIR? THIS IS A TOPIC THAT WILL COME UP IN GENERAL ON THE PARKS AND ENVIRONMENT WORKING GROUP.
CAN Y'ALL HEAR ME NOW? YES, WE CAN.
I WAS ON THE PHONE CALL IN AS WELL AS THE VIDEO CALLING, UM, TML, THE TEXAS MUNICIPAL LEAGUE HAS ISSUED A RULE, UH, AN OPINION, A LETTER OPINION THAT I SHARED WITH ANN KITCHEN'S OFFICE AND SOME OTHER COUNCIL OFFICES THAT, UM, INDICATES THAT THEY, UH, FEEL THAT THE VISITOR INFORMATION CENTER MONEY CAN ONLY BE USED BY ICONIC VENUES TO THE EXTENT THAT IT REFLECTS EXPENDITURES TO OPERATE A VISITOR CENTER.
SO HANDING OUT BROCHURES, STAFFING, VISITOR QUESTIONS, THINGS LIKE THAT, WHICH IS NOT THE KIND OF MONEY THESE ICONIC VENUES NEED IN ORDER TO HELP THE ARTS OR THE MUSIC OR THE OTHER ICONIC TYPES OF INSTITUTIONS.
SO THE BETTER SOURCE OF FUNDING THAT WE'VE IDENTIFIED WOULD BE HISTORIC RESTORATION AND PRESERVATION OF THESE ARE HISTORIC ASSETS THAT ALSO PROMOTE TOURISM.
AND WE VISITED, WE VISITED WITH THEM ABOUT THAT PATH LEGALLY, UM, AND WE'D LIKE TO WORK OUT A WAY FOR THEM TO BE ABLE TO DO AS MUCH AS THEY CAN WITHIN THE LEGAL CONFINES OF THE STATUTE.
SO IT'S THE OPINION OF THE STATE HOTEL ASSOCIATION AND OF THE LEAGUE OF CITIES, THE TEXAS MUNICIPAL LEAGUE THAT ADVISES ALL THE CITIES ON THESE ISSUES, THAT VISITOR INFORMATION CENTER, ALTHOUGH BILL AL SCHAUER MAY DISAGREE OR NOT A LEGALLY VIABLE PATH FOR THE TYPES OF EXPENSES THAT THESE ICONIC INSTITUTIONS, UH, NEED IN ORDER TO OPERATE.
SO THAT'S THAT, THAT'S WHAT I KNOW ABOUT THE INTERPRETATION OF THE LAW.
IS THERE SOME LIMITATION ON OPERATING HOURS OR IS THAT, UH, FROM THE HISTORIC SIDE OF THINGS OPERATING HOURS IN PUBLIC ACCESS? I'M NOT SURE I UNDERSTAND THE QUESTION KATELYN.
IT SEEMED TO REMEMBER BACK, UH, YEARS AGO, WHEN THE CONVERSATION CAME UP SURROUNDING THIS AND THE VISITOR IMPACT TASK FORCE, THAT THERE WAS SOME LIMITATIONS REGARDING THE OPERATING HOURS OF VISITORS CENTERS, UH, THAT THEY HAD TO BE, OR WAS THAT HISTORIC PRESERVATION THAT HAD TO HAVE, UH, PUBLIC ACCESS AND STANDARDIZED OPERATING MARGIN.
STATE LAW DOESN'T IDENTIFY ANY ISSUES WITH REGARD TO OPERATING HOURS AS THEY APPLY TO VISITOR CENTERS.
CATLIN, THAT WAS A REQUIREMENT UNDER THE CITY'S RULES, NOT THE STATE LAW.
ANY FURTHER QUESTIONS AROUND, UH, AROUND THIS ITEM, ARE WE BEING ASKED TO DO ANYTHING WITH IT IN PARTICULAR? ARE WE, NO, WE JUST, IT WAS JUST DEBRIEFING AS IT'S ALREADY, THIS ITEM HAS ALREADY PASSED AT CITY COUNCIL.
SO I JUST WANTED TO GET AN UPDATE BECAUSE WE KNOW THAT THERE WAS SOME QUESTIONS ABOUT WHAT EFFORTS WERE BEING DONE TO HELP, UM, SOME OF THE VENUES HERE IN TOWN.
AND, UH, AND THIS WAS A, A GERMANE TOPIC THAT I WANTED TO GET AN UPDATE ON ONE QUESTION, I HAVE ONE QUESTION.
UH, I NOTICED IN, UH, I THINK IT WAS ON PAGE FOUR OR FIVE WHEREVER I SAW.
I SAW SOMETHING ABOUT RESTAURANTS.
IN ADDITION TO VENUES, IT WAS IN QUOTES, ICONIC VENUES AND, AND OR RESTAURANTS IS THERE, UH, IS IT, ARE THEY IN THERE BASED ON IF THEY ARE A RESTAURANT WITH A LIVE MUSIC PORTION OR CAN A RESTAURANT BE QUALIFIED FOR THIS WITHOUT HAVING A LIVE MUSIC COMPONENT? THAT IS THE QUESTION.
[01:20:01]
FROM CITY STAFF HAVE A ANSWER FOR PARISHIONER BAILEY? MY UNDERSTANDING UNDER A DIFFERENT EFFORT THAT IS OUT THERE REGARDING ICONIC VENUES IS THAT THERE IS AN IDENTIFICATION OR THAT CERTAIN RESTAURANTS, UH, HAVE, UM, ICONIC VALUE REGARDLESS OF WHAT KIND OF ENTERTAINMENT THEY OFFER.UM, BUT I, I DON'T, I DON'T KNOW HOW THE CITY'S INTERPRETATION OF, OF ICONIC OR WHAT THE CRITERIA REGARDING WHAT CREATES AN ICONIC VENUE.
UM, YOU KNOW, WHAT IS THE CRITERIA? I THINK THAT IS TO BE DETERMINED.
I, I, MY UNDERSTANDING IS THAT THAT WOULD BE DETERMINED BY THE ECONOMIC DEVELOPMENT CORPORATION, BUT I DO NOT KNOW FOR A FACT.
I THINK THERE MAY BE FROM A LEGAL STANDPOINT, UM, UNLESS IT'S CONSIDERED A HISTORICALLY SIGNIFICANT SPOT, LIKE AT THREADGILL'S WAS STILL IN EXISTENCE, MANY WOULD ARGUE THAT'S A HISTORIC SPOT, DID ALL THE THINGS THAT HAVE HAPPENED THERE.
THEY ALSO HAPPEN TO HAVE A LIVE MUSIC COMPONENT, BUT UNLESS IT'S EITHER MUSIC HISTORIC OR SOME SORT OF ARTS RELATED FEATURE, I DON'T KNOW HOW THEY WOULD FUND ANYTHING WITH REGARD TO HOTEL TAX ON FOLDED ICONIC RESTAURANT.
I WOULD ASSUME THEY'D GO ONTO THE HISTORIC DEAL, BUT THERE MAY BE A LIMIT AS TO THE FUNDS AVAILABLE IN THAT CAPACITY, BUT I DON'T THINK THERE'S A LEGAL PATH FOR RESTAURANT, UH, FOR PROMOTING THEM, UH, OR, OR TRYING TO ASSIST THEM, UH, SHORT OF FITTING INTO THOSE OTHER CATEGORIES THAT ASKED ABOUT THANK YOU, COMMISSIONER JOSLIN.
IT IS PAINFUL TO WATCH SO MANY OF THESE ICONIC RESTAURANTS GOING OUT OF BUSINESS RIGHT NOW.
AND A LOT OF THEIR ICONIC BUSINESSES IT'S PAINFUL TO WATCH.
IT'S IT'S, UH, IT'S BEEN SOBERING TO SAY THE LEAST IS THE LAST EIGHT MONTHS FURTHER DISCUSSION.
GO AHEAD, COMMISSIONER CANADY, JUST A, I GUESS A COMMENT OR A QUESTION.
I'M NOT SURE I WAS FOLLOWING MR. JOSLIN'S EXPLANATION, BUT, UM, WHEN WE WERE LOOKING INTO THIS, UH, PARTICULAR CATEGORY, MY UNDERSTANDING IS THE STATE LAW DEFINES VISITOR INFORMATION CENTER FUNDING TO INCLUDE QUOTE, THE ACQUISITION OF SITES FOR, AND THE CONSTRUCTION IMPROVEMENT, ENLARGING EQUIPMENT, REPAIRING OPERATION AND MAINTENANCE OF VISITOR INFORMATION CENTERS AND VISITOR INFORMATION CENTER ITSELF IS SPECIFICALLY DEFINED IN THE STATUTE TO BE ANY BUILDING OR PORTION OF THE BUILDING USE TO DISTRIBUTE OR DISSEMINATE INFORMATION TO TOURISTS.
UM, I, IT SEEMS TO BE ON ITS FACE.
SOMETHING THAT COULD BE USED NOT ONLY FOR MAINTENANCE AND OPERATION, BUT REPAIRING, EQUIPPING, IMPROVING, UM, THESE TYPES OF STRUCTURES.
THERE SEEMS TO BE A, UH, THIS IS GOING TO COME UP WHEN WE DISCUSS THE PARK ENVIRONMENT.
THIS SEEMS TO BE A RELATIVELY, UM, FORGIVING SET OF STATUTORY LIMITATIONS.
THAT, AND I THINK THIS IS PROBABLY SOMETHING WORTH PURSUING AS A COUNCIL IS, BUT, UM, IT STILL HAS TO BE A VISITOR INFORMATION CENTER, BUT THAT'S STILL RELATIVELY LOOSELY PROVIDED.
THERE'S NO HISTORIC REQUIREMENT UNDER THE DEFINITION.
IT JUST HAS TO DISTRIBUTE INFORMATION TO TOURISTS.
IN TALKING TO BILL LONGLY, WHO'S THE TAX EXPERT AT THE TEXAS MUNICIPAL LEAGUE AND OPINES AND ALL THE HOTEL TAX STUFF.
AND I'LL SHARE A COPY OF HIS OPINION TO THE EXTENT IF, IF YOU HAVE A FACILITY THAT THE OPERATIONAL CROSS, YOU KNOW, 10% ARE RELATED TO THE VISITOR CENTER FUNCTION, AND 90% ARE RELATED TO RUNNING A RESTAURANT OR RUNNING A MUSIC VENUE OR WHATEVER THE FACILITY IS, YOU COULD COVER 10%.
AND SO IT'S NOT THAT YOU CAN'T COVER THESE COSTS.
YOU CAN COVER PROPORTIONATE TO THE FUNCTION.
I DON'T THINK HE COULD, UH, DECLARE A, UH, UM, A COURTHOUSE TO BE A VISITOR CENTER AND PAY FOR ALL THE COURTROOMS. AND WHEN YOU ONLY HAVE ONE VISITOR KIOSK IN THE ENTIRE BUILDING, AND THAT'S A SMALL FRACTION OF THE PORTION OF THE COST.
SO, AND NEITHER COULD YOU BUILD A COURTHOUSE AND PAY $50 MILLION FOR A COURTHOUSE WHEN YOU'RE GOING TO HAVE A VISITOR CENTER THAT MAY COST A HUNDRED THOUSAND DOLLARS.
SO TO THE EXTENT THAT FACILITY, THE ACQUISITION, THE CONSTRUCTION, THE MAINTENANCE, THE OPERATION, RELATE TO THE VISITOR CENTER PORTION THAT CAN BE COVERED.
AND THAT'S THE OPINION OF EVERYONE THAT OPINES ON THESE ISSUES FOR MUNICIPALITIES ACROSS TEXAS.
[01:25:01]
WHAT YOU'RE SAYING.I WOULD LOVE TO SEE THE OPINION BE HAPPY TO SHARE.
UH, ANY FURTHER QUESTIONS REGARDING THIS ITEM? ALL RIGHT.
IN THE INTEREST OF TIME, UM, I KNOW WE DO HAVE, UH,
[3a. The Commission may discuss and take action on recommendations from the Parks and Environment Working Group. (Commissioner Cannatti - D 10)]
A RECOMMENDATION AND AN ITEM UP FROM COMMISSIONER CANADY REGARDING THE PARKS AND ENVIRONMENT WORKING GROUP.UM, I'M GOING TO BE RECUSING MYSELF FROM THIS CONVERSATION BECAUSE, UH, ALONG CENTER LEASES, PARKLAND AND PROGRAMS, PARKLAND, AND I ALSO SIT ON THE BOARD OF THE SUGAR-FREE CONSERVANCY.
SO WITH THAT, I'M GOING TO PASS IT OFF TO VICE-CHAIR MCGEE TO, UM, MANAGE THIS, UH, THIS ITEM, COMMISSIONER CANADY.
ARE YOU READY TO PRESENT? YOU NEED TO UNMUTE, I'M SORRY ABOUT THAT.
UM, JUST AS A PRELIMINARY COMMENT, I, I MAY NOT BE READING THE, THE CONFLICT PROVISIONS THE SAME WAY, AT LEAST IN TERMS OF WHETHER A BOARD MEMBER OF A ORGANIZATION IN THE PARKS AND ENVIRONMENTAL SPACE IS AS CONFLICTED FROM VOTING ON THIS.
UM, AND IF I'M MISTAKEN, I'M HAPPY TO BE CORRECTED, BUT I WOULD JUST SAY, UM, I AM A MEMBER OF THE BARCH MASON SERVANCY BOARD.
THIS PARTICULAR RECOMMENDATION FROM THE WORKING GROUP IS NOT GOING TO BE EFFECTING MY ORGANIZATION IN A SPECIFIC WAY.
UM, AND JUST IN THE INTEREST OF FULL DISCLOSURE, I WANT TO MAKE SURE, AT LEAST I, UM, I'M MAKING THAT CLEAR TO EVERYBODY, BUT, UH, I HAVE NOT PRACTICED.
DO I NEED TO GIVE ANY SIGNALS TO, UM, THIS IS DAVID TICKLE.
GO AHEAD AND BRING YOUR PDF UP.
IT'S APPROXIMATE ENVIRONMENT PROJECTS.
OKAY, WELL, THAT'S PULLING UP, I'LL JUST REMIND THE COMMISSION THAT BASICALLY LAST FEBRUARY, WE REPORTED APPOINTED A WORKING GROUP TO LOOK AT THE, A NUMBER OF ISSUES AROUND POTENTIAL USE OF HOT FUNDS.
UM, AS YOU ALL MAY CERTAINLY RECALL GOING BACK TO THE VISIT AUSTIN TIME, UH, IN THE HEARINGS THEY HAD, UH, AND THEN CONTINUING TO THE PRESENT.
THERE HASN'T BEEN MANY, UH, MANY OPPORTUNITIES FOR FOLKS TO SORT OF LOOK AT DIFFERENT WAYS THAT HOT FUNDS COULD BE EXPENDED AND STILL MEET WITH THE STATE LAW RESTRICTIONS ON WHAT IS ALLOWABLE USES OF THEM.
AND SO IN FEBRUARY, WE APPOINTED TO IT, A WORKING GROUP, UH, WHICH INCLUDED, UH, THREE OF THE TOURISM COMMISSION MEMBERS, MR. BUDGE, UH, MS
AND THEN WE HAD NON TOURISM COMMISSION MEMBERS REPRESENTATIVES FROM THE AUSTIN PARKS FOUNDATION, SAVE BARTON CREEK ASSOCIATION, UM, PEACE PARK CONSERVANCY, THE HILL COUNTRY CONSERVANCY, AND, UH, SHOW CREEK CONSERVANCY AND UMAR GARDEN, AND THE TRAIL FOUNDATION.
AND WE, OVER THE COURSE OF THESE MANY MONTHS HAVE BEEN MEETING PRIMARILY BY ZOOM, AS YOU MIGHT EXPECT.
UH, WE CREATED A GOOGLE DOCUMENT, UH, AND HAD A MEETING TO KIND OF TAKE INPUT FROM EVERYBODY ON WHAT WE THOUGHT WOULD BE, UH, USES THAT ARE PERMISSIBLE UNDER THE STATE LAW REGIME.
AND WE TRIED TO IDENTIFY, UM, SOME SPECIFIC LIMITATIONS, UH, THAT APPLIED TO EACH TYPE OF USE, UH, YOU KNOW, WHAT WAS THE STATUTORY BASIS FOR DIFFERENT CATEGORIES? UH, WERE THERE ANY GEOGRAPHIC LIMITATIONS ON WHERE YOU COULD SPEND MONEY ON THESE DIFFERENT CATEGORIES? UM, AND SO WHAT YOU SEE HERE IS THE PAGE OF, UM, UH, A NUMBER OF BREAKDOWNS OF WHAT WE THINK ARE THE DIFFERENT CATEGORIES THAT SHOULD BE EXPANDED IN EITHER A PARK OR ENVIRONMENTAL USE, UH, TO BENEFIT, YOU KNOW, CERTAINLY TOURISM SPOTS IN THE CITY, BUT THE COMMUNITY AS A WHOLE AT THE SAME TIME.
SO, UM, I CAN KIND OF WALK THROUGH THE EXAMPLE HERE.
UM, ONE OF THE SUBCATEGORIES IS BASICALLY ADVERTISING SOLICITATIONS AND PROMOTIONAL PROGRAMS THAT PROMOTE TOURISM.
UM, AND WE HAVE TRIED TO SAY, AS WE READ THE STATE LAW PROVISION, THERE REALLY ISN'T ANY GEOGRAPHIC LIMITATION IN THE SENSE THAT THE STATE LAW SAYS, WELL, IT HAS TO BE DOWNTOWN, OR IT HAS TO BE IN THE CONVENTION CENTER.
UH, AS, AS, AS, AS WE READ THAT THERE'S NO GEOGRAPHIC LIMITATION OF WHERE THESE FUNDS COULD BE SPENT.
UH, THIS IS ANOTHER, THIS IS A CATEGORY THAT DOES NOT HAVE A STAFF FOR CAP IN CONTRAST TO, FOR EXAMPLE, HISTORIC PRESERVATION FUNDING AND CULTURAL ARTS.
[01:30:01]
UM, WE, UM, THERE WAS AN ATTEMPT TO IDENTIFY WHETHER THERE'S A MINIMUM AMOUNT OF FUNDING, UM, THAT, AND W THIS WAS A LITTLE HARDER TO PARSE AND I'M, I'M SURE MR. JOSEPH IS GOING TO BE ABLE TO PROVIDE SOME INSIGHT INTO A LOT OF THESE ISSUES.UM, WE DID WANT TO TRY TO PROVIDE IN EACH OF THESE EXAMPLES, JUST SOME REAL WORLD EXAMPLES OF WHERE THIS FUNDING ALREADY HAPPENED.
SO OUR UNDERSTANDING OF WHERE HIGH FUNDS ARE CURRENTLY BEING USED TO SHOW THIS IS NOT A COMPLETELY IMAGINARY APPLICATION.
AND THEN WE WORKED WITH, UM, EACH OF OUR WORKING GROUP MEMBERS TO COME UP WITH A NUMBER OF EXAMPLES OF PROJECTS, UH, THAT COULD BE, UH, AS WE SAW IT FUNDED WITH THIS CATEGORY OF FUNDING.
AND SO IN THIS FIRST PAGE, YOU HAVE A, UH, A LISTING HERE OF THE, THE WAYS THAT WE THINK THIS CATEGORY OF FUNDING COULD BE USED TO PROMOTE, UM, TOURISM WITH, FOR EXAMPLE, HIRING MUSICIANS TO PLAY IN THE PARKS.
CERTAINLY WE CAN THINK OF A NUMBER OF HIGH PROFILE MUSICAL PERFORMANCE, UH, SCENARIOS THAT DRAW TOURISTS TO AUSTIN AND IN JOKER PARK, FOR EXAMPLE, AND SOME OF THE OTHER PARKS AROUND TOWN IN DOWNTOWN AREA.
AND THIS COULD BE AN EXAMPLE, IF YOU CAN GO TO THE NEXT PAGE AND WE'LL TRY TO GO THROUGH THIS NEXT EXAMPLE, A LITTLE, WHOOPS, WE WENT TO THERE.
UM, HERE IS A DISCUSSION, UH, CULTURAL ARTS AND COMMERCIAL MUSIC, WHICH IS PROBABLY ALL GOING TO BE VERY RECOGNIZABLE, UM, BECAUSE THIS IS WHAT WE CURRENTLY FIND, UH, ON, AT THE 15% CAP LEVEL WITH THE CITY HOT, UH, DECISIONS TO DATE.
UM, AND SO I'LL SKIP OVER THAT.
WE, AT THE NEXT SECTION, THERE, WE START AT THE BOTTOM OF THE PAGE WITH THE CATEGORY OF VISITOR INFORMATION CENTERS.
AND SO WE, AGAIN, WE LIST THE STATUTORY BASIS FOR HOW THIS FUNDING, UH, IS ALLOWED.
IF YOU GO TO THE NEXT PAGE, PLEASE, UM, WE POINT OUT THAT THIS CATEGORY VISITOR INFORMATION CENTER IS NOT LIMITED TO ANY PART OF TOWN OR THE, FOR THE CONVENTION CENTER SE UM, ONE OF THE INTERESTING THINGS ABOUT THIS CATEGORY IS THE STATE LAW DOES PROVIDE FOR MAINTENANCE OPERATION FUNDING, WHICH IS RELATIVELY UNUSUAL.
A LOT OF THE OTHER CATEGORIES DON'T SPECIFY THAT YOU CAN USE HOT FUND FOR MAINTENANCE AND OPERATION.
UM, THIS CATEGORY DOES NOT HAVE A CAP LIKE A 15% CAP, AND WE JUST GAVE SOME EXAMPLES PRETTY MUCH, ANYTIME YOU GO INTO A SMALL TOWN IN TEXAS AND YOU SEE THE LITTLE VISITOR CENTER RIGHT IN THE MIDDLE OF TOWN, UH, IT'S PROBABLY BEING FUNDED, UH, IN WHOLE OR IN PART WITH HOT FUNDS FROM THAT CITY.
UM, WE DID, AGAIN, WORKING WITH THE WORKING GROUP, COME UP WITH A NUMBER OF PROJECTS THAT MIGHT BE FUNDED AND IN AND AROUND TOWN.
UM, AND, AND THESE ARE PART OF WHAT WE'VE LISTED HERE.
UM, SOME OF THIS INFORMATION YOU MIGHT RECOGNIZE FROM THE PREVIOUS MEETINGS, UH, FROM THE VISITOR IMPACT TASK FORCE, UH, CONCERNING THE ZILKER PARK VISITORS CENTER THAT COULD DISTRIBUTE INFORMATION TO TOURISTS ABOUT OUR ENVIRONMENT AND THE PARK, AND WHAT TO SEE IN THAT AREA, SIMILAR, UH, INFORMATION CENTERS COULD BE PUT IN OTHER PARKS, UH, AGAIN, TELLING THE STORY OF OUR ENVIRONMENT TO THE TOURISTS WHO COME TO VISIT AUSTIN TO EXPLORE THIS PART OF OUR CITY.
UM, I WAS SKIMMED THROUGH THE REST OF THESE, THE HISTORIC RESTORATION AND PRESERVATION CATEGORY NEXT IS AGAIN, ONE THAT WE DO FULLY FUND AT THE 50% CAP LEVEL, BUT WE JUST WALKED THROUGH THE SAME ANALYSIS.
THE, ON THIS POINT, THIS IS NOT GOING TO BE OPENING ANY DOORS FOR COUNCIL TO CONSIDER.
CURRENTLY WE DO FUND, UM, HISTORIC PRESERVATION PROJECTS GENEROUSLY.
UH, COULD YOU GO TO THE NEXT PAGE PIECE? UM, WE ALSO TRIED TO LOOK AT THE, UH, WAYFINDING SIGNAGE CATEGORY THAT YOU SEE THERE AT THE BOTTOM OF THE PAGE AND HOW THAT MIGHT BE.
MAYBE IT'S A RELATIVELY MINOR SOURCE OF FUNDING, BUT NONETHELESS, THERE ARE SOME PROJECTS THAT WE HAVE IDENTIFIED THAT COULD BE FUNDED TO GUIDE TOURISTS THROUGH OUR PARKS, WITH WAYFINDING AND INFORMATION, YOU KNOW, IT COULD BE ANY OF OUR METROPOLITAN PARKS, UM, THAT THE TOURISTS FREQUENT, UM, THE NEXT PAGE, PLEASE.
UM, THERE'S A DISCUSSION HERE ABOUT TRANSPORTATION SYSTEMS FOR TOURISTS THAT ARE UNDER A SEPARATE CATEGORY PROVIDED IN THE TEXAS TAX CODE.
UM, AND, UH, WE THINK THERE MIGHT BE SOME GEOGRAPHIC LIMITATIONS, AT LEAST AS WE UNDERSTOOD THE STATE LAW.
UH, THERE HAS TO BE MAYBE SOME CONNECTION OF THE TRANSPORTATION SYSTEMS TO BE FROM A HOTEL TO A COMMERCIAL CENTER CONVENTION CENTER, UH, UH, OTHER HOTEL OR TOURIST ATTRACTION.
SO THAT MIGHT BE A GEOGRAPHIC CONSTRAINT ON HOW THIS TYPE OF PROJECT IS FUNDED.
UH, APPARENTLY IT DOES NOT INCLUDE MAINTENANCE OPERATION FUNDING.
UM, AND LASTLY, I'LL TRY TO GLOSS OVER THE LAST CATEGORY WAS ACTUALLY NOT UNDER A CHECK FOR THREE 51, WHICH WAS THE TAX CODE PROVISION WE'VE BEEN TALKING ABOUT SO FAR, BUT AS YOU'LL RECALL, THERE'S A VENUE TAX, UH, PROVISION CHAPTER THREE 34, WHICH HAS ITS OWN SEPARATE REQUIREMENTS QUALIFYING UNDER STATE LAW AND VOTER APPROVAL.
[01:35:01]
IN TERMS OF THE SPECIFIC PROJECTS THAT COULD BE FUNDED, UH, WE THINK WE HAVE IDENTIFIED, UH, THAT THE, THE VENUE PROJECTS DEFINED IN THIS CATEGORY COULD SUPPORT CERTAIN PARTS OF PARKS AND RECREATION SYSTEMS AND AREAS OR FACILITIES THAT ARE PART OF A MUNICIPAL PARKS AND RECREATION SYSTEM.AND IF YOU GO TO THE NEXT PAGE, THIS IS A KIND OF A COMPLICATED, UH, DRAWING, BUT WE'VE TRIED TO SHOW HERE IS THAT THE, UM, THE STATE LAW IS KIND OF CONFUSING IN THIS IT GRANTS IN PART THE ABILITY TO FUND CERTAIN TYPES OF VENUE PROJECTS, BUT THEN IT TURNS AROUND IN ANOTHER PART OF THE PROVISION AND TAKES AWAY THE ABILITY TO FUND THOSE PROJECTS IN CERTAIN AREAS LIKE THE CITY OF AUSTIN.
AND SO WHAT WE'RE LEFT WITH IS A, ON THE ONE HAND, A GRANT GRANT ON THE OTHER HAND, A PARTIAL PULLBACK.
AND SO WHAT WE HAVE TRIED TO IDENTIFY AT THIS PART WITH WHAT IS NOT STRUCK OUT IN MY FONTING HERE, THE, UM, THE TYPES OF PROJECTS THAT MIGHT BE FUNDED WITH A VENUE, UH, CHAPTER THREE, THREE, FOUR VENUE, UH, PROJECT.
SO THIS WAS THE RESULT, AS I SAID, OF, UH, YOU KNOW, MANY YEARS OF, OF, OF RECEIVING INPUT, UM, AND, AND CONTINUED ANALYSIS BY THE PARKS AND ENVIRONMENT WORKING GROUP.
AND WE WANTED TO RECOMMEND THAT THE COMMISSION CONSIDER ADOPTING THIS AND RECOMMENDING TO COUNCIL.
UH, I THINK IF YOU CAN PUT UP THE OTHER, UH, RESOLUTION, UH, PLEASE, UM, DO YOU HAVE SOME PROPOSED RESOLUTION THERE LOOKING INTO THAT, SIR.
SO COMMISSIONER CANADY, JUST FOR MY CLARITY, THE WORKING GROUP HAS A PAST, UH, PROPOSAL, A RESOLUTION TO PROPOSE TO THIS.
IT WAS ON THE BACKUP MATERIALS.
UM, I, I, WE, WE TRIED TO, TO ARCTIC YOU TO WORK THIS IN A WAY THAT, UM, RECOGNIZES THAT THE COMMISSION HAS ALREADY MADE CERTAIN RECOMMENDATIONS, FOR EXAMPLE, ABOUT HOT FUNDS, UM, YOU KNOW, TO DATE, UH, THIS RESOLUTION IS SEEKING TO SAY, WELL, THERE'S OTHER CATEGORIES OF WHAT WE SEE WHAT WE SAY TO BE AS ALLOWABLE USES OF HOT PHONES.
AND, UH, WE ENCOURAGE THE CITY COUNCIL.
YOU KIND OF SEE THE, THE BOTTOM PROVISION THERE.
THEREFORE WE ARE ENCOURAGING THE COUNCIL TO CONSIDER THIS ATTACHED REPORT, UH, AND, AND, UM, FINDING WAYS TO BENEFIT THE PARKS AND ENVIRONMENT, UH, PROJECTS IN ANY FUTURE DECISION TO ALLOCATE HOT FUNDS.
SO WE'RE NOT SAYING YOU NEED TO FUND THESE PARTICULAR PROJECTS, BUT YOU NEED TO UNDERSTAND THAT THESE ARE PERMISSIBLE PROJECTS, UH, THAT WE, WE SEE, UH, AS BEING ALLOWABLE, UH, UNDER THE, UH, TEXAS STATE LAW RESTRICTIONS, I WILL SAY I HAVE NOT HAD THE CHANCE TO SEE THE OPINION THAT MR JOSLIN WAS TALKING ABOUT.
SO THIS MIGHT NEED TO BE UPDATED.
UH, BUT APART FROM THAT, I WILL JUST REPRESENT, WE HAVE BEEN AS A WORKING GROUP, KIND OF PLUGGING AWAY AT THIS SINCE APRIL.
UM, AND I'M SORRY, IT'S TAKEN SO LONG TO FINALIZE THIS, BUT, UM, UH, I'M HOPING THAT THE TOURISM COMMISSION WOULD CONSIDER ADOPTING THIS OR HAPPY TO TRY TO ANSWER ANY QUESTIONS, UM, THAT, THAT YOU HAVE COMMISSIONER CANADY.
THIS IS SCOTT AND, AND HAD A QUESTION.
ARE THESE RECOMMENDATIONS INTENDED TO BE, TO COMPLIMENT THE, UH, EXPANSION OF THE CONVENTION CENTER, NOT IN LIEU OF THE EXPANSION OF THE CONVENTION CENTER? WHAT IS YOUR INTENT? THE INTENT, I THINK COMPLIMENT IS THE BETTER WORD THAT I, I UNDERSTAND THAT THIS COMMISSION HAS ALREADY MADE A DECISION ABOUT THE CONVENTION CENTER, AND I'M NOT TRYING TO UNDERMINE THAT, BUT I CAN IMAGINE SCENARIOS.
I MEAN, IT'S POSSIBLE, BUT UNLIKELY, PERHAPS THE CITY COUNCIL DECIDES DIFFERENTLY THAT MAYBE ADDITIONAL FUNDS POP UP THAT ARE NOT NEEDED FOR THE CONVENTION CENTER.
AND THIS MIGHT BE A WAY FOR THE COUNCIL TO CONSIDER USING THOSE FUNDS.
UM, BUT WITH THE SPECIFIC BENEFIT OF, OF, OF HITTING OUR, YOU KNOW, BENEFITING OUR PARKS AND ENVIRONMENT AND COMMISSIONER
AND WHEN WE HAD AN OPEN MEETING AND SAID, I'D LIKE TO BE INVOLVED IN THIS, DOES THAT, DO YOU NOT RECALL THAT? I THOUGHT I HAD REACHED OUT TO YOU, BUT I DON'T THINK WE EVER CLOSED THE LOOP.
AND I HOPE I DID NOT EXCLUDE YOU.
I NEVER RECEIVED AN INVITATION TO ANY OF THE ZOOM MEETINGS OR ANY OF THE MEETINGS ON THIS.
AND I PARTICULARLY WOULD HAVE LIKED TO HAVE BEEN JUST FROM THE LEGAL STANDPOINT OF HOW THE MONEY CAN BE USED, UM, AT, BUT IT'S, IT LOOKS LIKE YOU'VE DONE A WONDERFUL JOB OUTLINING A LOT OF POSSIBILITIES.
[01:40:01]
TO GIVING ME A DAY OR SO TO LOOK AT THAT AND PROVIDE YOU SOME FEEDBACK ON WHERE THE LAW IS ON SOME OF THESE THINGS? UM, YES, I, THERE'S A PRETTY DECENT CHANCE OF, I MIGHT NOT BE AROUND ON THE TOURISM COMMISSION IN THE NEXT MEETING, BUT I'VE DONE MY BEST HERE TO AT LEAST PRESENT THE WORK OF THE GROUP THUS FAR.UM, SO I'M NOT SURE WHERE THAT LEAVES ME ON OR WHERE THIS MIGHT GO IN THE FUTURE IF I'M NOT ON THE COMMISSION, BUT WE'LL SEE FROM A LEGAL STANDPOINT, ONE OF THE THINGS I MIGHT SUGGEST THAT, THAT YOU MIGHT ALREADY BE CONSIDERING AS YOU GAVE THE EXAMPLE OF MUSICIANS IN THE PARK, WELL, THAT WOULD BE SUBJECT THAT WOULD BE UNDER THE PROMOTION OF THE ARTS CATEGORY.
SO WHAT YOU COULD DO SOMETHING IN THE PARKS AND YOU COULD DO MUSICIANS NO DIFFERENT THAN AUSTIN CITY LIMITS OR SOUTH BY SOUTHWEST.
AND FUND THAT WITH, WITH, WITH MONEY FROM, UH, THE, UH, FOR ARTS, YOU KNOW, THE, THE HOTEL TAX FOR ARTS OR THE PORTION FOR ARTS, IT IS SUBJECT TO THAT 15% CAP AND THINGS THAT ARE, UH, HISTORICAL ACTIVITIES OR THINGS LIKE THAT WOULD BE UNDER THE 15% CAP FOR HISTORICAL.
SO THE CAPS THAT APPLY WOULD ALSO STILL BE IN PLAY DEPENDING ON WHAT THE PRIMARY PURPOSE IS OF THE EVENT.
I THINK I UNDERSTAND YOUR POINT.
UM, AND IT'S THE PRIMARY PURPOSE TEST IS NOT SOMETHING THAT I DID.
I SAW STATED AT LEAST IN THE STATUTORY PROVISIONS OF THE STATE LAW, BUT I UNDERSTAND DIFFERENT CATEGORIES OF THE STATE LAW COULD APPLY TO THE SAME PROJECT.
AND SOME OF THOSE CATEGORIES IN STATE LAW ARE LIMITED AND SOME ARE NOT, I THINK MAYBE WE'RE TALKING, ARE WE TALKING ABOUT THE SAME THING? WELL, I, I DISTRIBUTED AN OPINION, I THINK, TO THE COMMISSION MEMBERS, A NUMBER OF MEETINGS AGO ABOUT TEXAS MUNICIPAL LEAGUE AND THEIR HOTEL TAX WITH TEAM, AND WHAT THEY ADVISE THEIR CITIES IS THAT YOU LOOK AT THE PRIMARY PURPOSE OF THE EXPENDITURE TO DETERMINE WHICH CATEGORY WOULD FALL UNDER.
UM, IT, THE EXAMPLE GIVEN, JUST BECAUSE YOU HAVE A, UM, UH, A PICTURE OF A SYMPHONY IN AN AD FOR THE CITY OF AUSTIN, DOESN'T MAKE THE AD A PROMOTION OF THE ARTS AND FALL UNDER THE 15% CAP.
BUT IF YOU'RE GOING TO BE PAYING MUSICIANS TO BASICALLY PERFORM AT A PARK, THAT LIKELY SEEMS LIKE THE PRIMARY PURPOSES ARTS.
AND SO IT WOULD FALL INTO THAT, THAT THAT'S HOW THEY ADVISE THEIR CITIES.
AS I UNDERSTAND IT, TO DIFFERENTIATE AS THE, WHICH FALLS INTO ADVERTISING, WHICH FALLS INTO ARTS, WHICH FALLS INTO HISTORICAL, ET CETERA, WOULD THAT DISCUSSION BACK AND FORTH, UH, COMMITTEE CANADY, DOES THAT ALTER AT ALL YOUR INTENTION TO HAVE US ADOPT, UM, YOUR REPORT, YOUR RESOLUTION THAT SPEAKS TO YOUR REPORT? I WOULD BE HAPPY.
WE'LL HAVE MR. JOSLIN WEIGH IN.
I'M SORRY IF THAT DIDN'T HAPPEN.
AND IT SHOULD HAVE, I HOPE I'M AROUND TO CONTINUE TO PUSH THIS FORWARD.
IF IT'S NOT, I HOPE YOU GUYS WILL LOOK AT IT BECAUSE A LOT OF WORK WENT INTO IT.
SO AM I HEARING THAT YOU WOULD LIKE TO POSTPONE, UM, OR NOT PROVIDE EMOTION AT THIS, THIS MEETING? UM, SO ADOPT THE RESOLUTION AND PERHAPS BRING IT BACK AT OUR NEXT MEETING.
SO THAT, THAT GIVES TIME FOR COMMISSIONER CHARLES LIVE TO WORK WITH THE WORKING GROUP.
AND ALSO I HAD ALSO COMMITTED TO MAKE SURE THAT IT DOES COME TO FRUITION AND TO WORK WITH YOU, MIKE, TO MAKE SURE THAT YOUR INTENT IS REFLECTED ON THIS.
AND I CAN WORK WITH THE OTHER MEMBERS OF THE COMMISSION, UM, AND PROVIDE THE, YOU KNOW, FOR WHAT IT'S WORTH AND I'LL RUN MY LEGAL OPINION BY THE TEXAS MUNICIPAL LEAGUE TO MAKE SURE THAT THE ADVICE THE INDUSTRY WOULD GIVE IS THE SAME ADVICE THAT THE CITIES ARE GIVING TO THEIR CITY ATTORNEY THAT THE MUNICIPAL LEAGUE HAS GIVEN TO THEIR CITY ATTORNEYS.
WELL, I JUST MIGHT SAY A LOT OF LAWYER LAWYERING LOOKED AT THIS AND IT'S ROCK SOLID.
UM, IT MAY NOT AGREE WITH THE JOHN
SO WE'RE SPENDING MONEY FROM THE CONVENTION CENTER BUCKETS TO SPONSOR, UH, ACL PRODUCTIONS, WHICH PAID MUSICIANS AND PRODUCTION PEOPLE AND VIDEOGRAPHERS.
UM, THAT'S NOT, UH, OUT OF THE 15% LIMIT, LIMITED AMOUNT FOR THE ARTS.
WE'RE ALSO PAYING FOR PROMOTION FOR MUSIC AND ARTS OUT OF THE TOURISM PROMOTION BUCKET.
UM, JUST BECAUSE WE WRITE A CHECK TO A MUSICIAN OR AN ARTIST, UM, OR WE WRITE A CHECK FOR HISTORIC PRESERVATION.
IT DOESN'T HAVE TO GO IN THOSE 15% CAP BUCKETS IF
[01:45:01]
IT'S BEING DONE TO PROMOTE TOURISM, WHICH IS AN UNLIMITED CATEGORY.AND THAT'S VERY CLEAR IN THE STATUTE.
AND I WOULD BE OPPOSED TO SLOWING THIS PROCESS DOWN TO TRY TO PURSUE A LEGAL OPINION THAT, UM, DOESN'T COMPORT WITH THE STATUTE.
SO JUST FOR EVERYONE'S CLARITY, THERE IS NO MOTION BEFORE THE BODY AT THE MOMENT.
SO, UM, I'M ASKING, IS THERE EMOTION TO RESOLUTION OR IS IT BEING POSTPONED TO ANOTHER MEETING? I WOULD ASK THEM TO BE POSTPONED.
I HAVEN'T EVEN HAD A CHANCE TO REVIEW IT.
I WAS ASKED TO BE ON THE COMMITTEE AND WITH THE DUE RESPECT, MR. BUNCH, I'D SPENT 20 YEARS ADVISING PEOPLE ON HOTEL OCCUPANCY TAX ISSUES IN THE LAW, THE MUNICIPAL LEAGUE SPENT OVER A HUNDRED YEARS, ADVISING FOLKS ON THESE.
I THINK IT'S CERTAINLY WORTH, UH, HAVING THEIR OPINION AS OPPOSED TO, UH, SOMEONE WHO'S NOT PRACTICED IN THIS AREA.
UM, I, I'M NOT SAYING THAT WE'RE NECESSARILY ALWAYS, RIGHT, BUT AT LEAST WE HAVE A LOT OF CONSTRUCTION AND ASSISTANCE WE PROVIDED ON THIS AREA.
UM, WHAT I'M SAYING IS THERE, ETHAN NEEDS TO BE A MOTION TO POSTPONE OR WITH A SECOND, OR THERE NEEDS TO BE A MOTION TO ADOPT WITH A SECOND TO FINISH.
I THINK I APPRECIATE THE WORK THAT'S GONE INTO IT.
AND I, I THINK IT'S PROBABLY PRETTY SOLID, BUT I THINK WE'VE GOT SCOTT ON BOARD THAT HAS, UM, HE'S ALWAYS HAD PRETTY SOLID ADVICE THAT I, THAT I THINK I APPRECIATE, WE SHOULD TAKE ADVANTAGE OF THAT AND, UM, JUST HAVE THEM HAVE IT, DO THE ONCE-OVER I THINK YOU JUST SAID IT WOULD TAKE HIM A COUPLE OF DAYS, BUT, UM, I THINK WE SHOULD MOTION.
I WOULDN'T FEEL COMFORTABLE PASSING THAT WITHOUT KNOWING THAT THERE MIGHT BE A LITTLE MORE INFORMATION FOR THIS TO BE ADDED TO THAT.
AND THIS IS MOTION TO POSTPONE FOR, TO THE NEXT MEETING BECAUSE POSTPONE NEEDS TO GIVE IT A CERTAIN AMOUNT OF TIME.
SO IS THE NEXT MEETING AMENABLE? NEXT MEETING WORKS FOR ME.
SO WE HAVE A MOTION TO POSTPONE, UH, ADOPTION OF THIS RESOLUTION TO THE NEXT MEETING.
AND IT'S BEEN SECONDED ANY FURTHER DISCUSSION.
I'M GOING TO VOTE NOW ON THAT, AND I HOPE OTHER PEOPLE WILL LOVE NOW.
IT'S WE'VE BEEN WORKING ON THIS FOR MONTHS NOW.
I CAN'T IMAGINE MR. JOSLIN DIDN'T KNOW WE WERE WORKING ON IT.
ANY OTHER DISCUSSION? ALL RIGHT.
HEARING NO FURTHER DISCUSSION.
SO THE MOTION BEFORE US IS TO POSTPONE ADOPTION OF THE RESOLUTION FROM THE WORKING GROUP, UM, UNTIL OUR NEXT MEETING, UH, CITY, DO WE HAVE VOTING? WHAT ARE OUR VOTING ABILITIES? CAUSE IT JUST RAISED HANDS OR THERE'S A FACILITATOR.
I DON'T SEE EVERYBODY'S VIDEO ON, UH, OUR CITY HOSTS.
HOW DO WE REGISTER OUR VOTES WHEN WE WANT TO VOTE ON SOMETHING USING THIS FORMAT? UM, UM, MCGEE, I'M SORRY.
WE CAN GO AHEAD AND JUST RAISE YOUR HAND IF YOU WANT, IF EVERYBODY TURNED ON THEIR CAMERAS SO WE CAN SEE THAT.
SO, UM, IF YOU WOULD LIKE TO VOTE IN FAVOR OF POSTPONING, UM, THE ADOPTION OF THIS RESOLUTION TO OUR NEXT MEETING, PLEASE RAISE YOUR HAND, TURN YOUR VIDEO.
YOU WANT TO RAISE YOUR HAND SO THAT WE CAN SEE ALL RIGHT.
HAVE COMMISSIONERS RODRIGUEZ, BAILEY AND GELS LOVE VOTING IN THE AFFIRMATIVE.
UM, MR. ALEXANDER, WHAT IS YOUR VOTE? YAY.
ARE YOU VOTING NORMALLY TO UNMUTE? WE CAN'T HEAR YOU IF YOU ARE THERE.
IF YOU ARE VOTING, IF YOU ARE OPPOSED TO POSTPONING, UM, AND ADOPTION OF THIS RESOLUTION, PLEASE RAISE YOUR HAND.
WE HAVE, UH, COMMISSIONER SPONGE FOR MR. ROGERS AND COMMISSIONER AND COMMISSIONER CANADY, UH, VOTING AGAINST, SO WE HAVE FOUR, FOUR AND FOUR, OPPOSED OUR CALL ON COMMISSIONER ALEXANDER.
[01:50:01]
AGAIN, MR. ALEXANDRE, ARE YOU CONNECTED WITH US? WOULD YOU LIKE TO VOTE ON THIS ITEM?YOU NEED TO MUTE ONE AND UNMUTE THE OTHER DEVICE SO THAT YOU CAN SPEAK WITH US.
JUST ON THE ONE DEVICE
I WAS TRYING TO SEE IF WE COULD GET COMMISSIONER ALEXANDRE VOTE OR WHETHER SHE'S ABSTAINING.
OTHERWISE IT GOES TO, UH, I WOULD IMAGINE A TIE WOULD GO TO THE CHAIR.
THAT'S TYPICALLY TYPICAL WITH ROBERT'S RULES.
DO YOU REALLY WANT TO TAKE THIS ON A FOUR TO FOUR VOTE? NO, I, I WAS GOING TO POINT OUT AND I HOPE EVERYONE WILL SUGGEST GREAT.
I HAVE A FEELING IF THIS SUCCEEDS WE'LL END UP MOVING ON THE NEXT MOTION, IT'LL BE DIVIDED.
I'D RATHER HAVE THE FULL SUPPORT OF THE COMMISSION FOR WHATEVER WE'RE RECOMMENDING TO COUNCIL.
IF ANOTHER MONTH OR WHENEVER OUR NEXT MEETING WILL BIAS THAT TIME FOR EVERYONE TO FEEL COMFORTABLE.
UM, I WOULD, I WOULD SUPPORT, CHANGE MY VOTE TO SUPPORTING A DELAY.
OTHERWISE I THINK I HATE TO GO TO COUNCIL WITH THE SPLIT BECAUSE IT JUST DOESN'T DOESN'T WORK THAT WAY.
WELL, AS WE CAN'T GET AHOLD OF, UH, COMMISSIONER ALEXANDRE, UM, AND HEARING YOUR LAST COMMENT, WE'LL MOVE THAT THE, UH, CHAIR GETS TO BREAK THE TIE, WHICH WOULD BE MY VOTE.
SO HEARING WHAT YOU'VE JUST SAID, COMMISSIONER CAN AUDIO BY, AGAINST, AND WE'LL POSTPONE ADOPTING THE RESOLUTION, UM, TO NEXT MEETING AND, UH, COMMISSIONER JOSLIN.
UM, PLEASE DO GET WITH THAT, UM, WORKING GROUP SO THAT, UM, NEXT MEETING WE CAN ABSOLUTELY MAKE THIS GO FORWARD OR, OR, UM, DISPENSE WITH IT ONE WAY OR ANOTHER.
I REALLY APPRECIATE THE WORK THAT WENT INTO THAT, AND IT'S CLEAR THAT THERE'S A LOT OF WORK AND I THINK NOT TOO MUCH MORE THAN NEEDS TO BE DONE TO MAKE US FEEL COMFORTABLE WITH THAT.
I DO WANT TO SAY I APPRECIATE THAT.
DOES THAT CONCLUDE THE, UH, REPORT FROM THE PARK'S ENVIRONMENT, WORKING GROUP COMMISSIONER CANADY? DOES THAT CONCLUDE YOUR REPORT? YES.
[3c. Briefing and discussion regarding the formation of a Tourism Public Improvement District (Visit Austin) ]
UNDER NEW BUSINESS, DID WE ALREADY HAVE THE BRIEFING AND DISCUSSION REGARDING THE FORMATION OF A TOURISM PUBLIC IMPROVEMENT DISTRICT BY VISIT AUSTIN? WE KIND OF BOUNCED AROUND EVERYWHERE, SO I'M NOT SURE IF WE COVERED THAT ONE.DO WE HAVE ANY OTHER TWO HAVEN'T HEARD FROM, IT'S A QUESTION FOR OUR CITY HOST OR FOR OUR CHAIR? OUR CHAIR IS BACK NOW.
WE HAVE NOT HEARD, UH, REGARDING THE FORMATION OF THE CHIEF HAD A BRIEFING IF, UM, VISIT AUSTIN IS AVAILABLE TO PROVIDE THAT BRIEFING, UH, BRIEFLY BECAUSE WE REALLY HAVE TWO MINUTES BEFORE I BELIEVE WE, UH, GET BOOTED AND YOU HAVE TO, I HAVE TO APOLOGIZE.
MY DOGS ARE, UH, BOTH WANT TO SIT ON TOP OF ME RIGHT NOW, UH, VISIT AUSTIN.
I'D LIKE TO GO AHEAD AND TABLE THAT FOR OUR NEXT MEETING THEN, AND THEN WE CAN GET A BRIEFING IN JANUARY ON THAT.
UM, IT SEEMS THAT THEY ARE NOT AVAILABLE.
UH, SO FOR NEXT MEETING, WE DO HAVE, UM,
[FUTURE AGENDA ITEMS: The Commission may discuss and take possible action to request information and identify future agenda items, topics, or presentation:]
WE'LL PUT A BRIEFING REGARDING THE FORMATION OF THE TOURISM PUBLIC IMPROVEMENT DISTRICT.I KNOW THAT THERE HAS BEEN DISCUSSION ABOUT IT.
SO I LOOK FORWARD TO HEARING ABOUT THAT AND FIND OUT WHAT THE STATUS OF THAT IS, UH, AS IT HAS BEEN AN ONGOING QUESTION, UM, AND, UH,
[01:55:02]
OTHER TOPICS FOR NEXT MEETING WOULD BE A REVISIT OF THE WORKING GROUP, UH, RECOMMENDATIONS, ANY OTHER TOPICS FOR NEXT NEXT MEETING? HEY, WE'RE GOING TO PLAN FOR THE SECOND WEEK OF JANUARY, THE SECOND MONDAY OF JANUARY, WHICH IS MONDAY, JANUARY 11TH.PLEASE GO AHEAD AND MARK YOUR CALENDAR FOR THE AFTERNOONS.
AND WE WILL WORK DILIGENTLY TO GET A TIME SET FOR THAT, UH, FURTHER DISCUSSION OR COMMENTS.
I JUST WANT TO REMIND STAFF TO PLEASE SEND THOSE OTHER, THAT WE DIDN'T GET FROM THE FIRST PRESENTATION.
REQUEST FOR THE SLIDES OR REQUESTS FOR THE, UM, OPINION FROM TEXAS.
AND, UH, WE HAVE ANY OTHER REQUESTS FOR DOCUMENTATION.
I'D JUST LIKE TO POINT OUT THAT CITY HAS ALREADY QUIT A LOT OF THOSE DOCUMENTS AS BACKUP WORKING DOCUMENTS ON OUR TOURISM COMMISSION WEBSITE, WHERE YOU CAN DOWNLOAD THEM THE DOCUMENTS ON THE WEBSITE, DON'T INCLUDE CALLING.
THEY INCLUDE TWO OR THREE OF THE SLIDES.
AS SOON AS I RECEIVED THAT FROM VISIT AUSTIN, I WILL SHARE THAT, HEY, THERE WAS A REQUEST FOR, UM, ANY KIND OF DOCUMENTATION FOR THE DATA AND TRENDS THAT SUPPORT THE ASSUMPTION OF RECOVERY THAT WAS SHARED EARLIER.
SO, UH, WE CAN ALSO ASK THAT OF, UH, OUR FRIENDS AT VISIT AUSTIN, UM, AT THAT I'D MAKE A MOTION TO ADJOURN THE MEETING, SO, RIGHT.
UM, MORE INFORMATION SOON ON OUR NEXT MEETING, HAVE A GREAT DAY.