Broward County Commission Regular Meeting

CULTURAL DIVISION AND GREATER FORT LAUDERDALE CONVENTION & VISITORS BUREAU (GFLCVB) RECOMMEND APPROVAL.

This item supports the Board's value of "Cultivating community culture, arts, recreation and life-long learning" and goals relating to providing diverse artistic, cultural, educational and historical amenities and programs that contribute to a vibrant, multi-cultural and economically-viable community.

Periodically, Broward County receives requests for financial assistance from its municipalities or non-profit organizations to support capital projects using proceeds from the Tourist Development Tax (TDT), which may be used for tourism-related purposes, including tourist-related projects.

The Board, at its August 20, 2013 budget workshop, directed staff to create the TDTCCGP. At the November 12, 2013 Public Hearing (Item No. 11), the Board adopted Resolution No. 2013-880 amending the Broward Cultural Council's Incentive (Grant) programs in the Administrative Code to create the TDTCCGP to provide capital funding to eligible organizations, which was added as Chapter 29, Part II, Section 29.16. j. The Board subsequently amended that section to include additional involvement of the GFLCVB, including the tourism impact review report by the GFLCVB of the “bed nights” that are projected by the applicants.

In the first cycle, applicants must provide matching funds via cash contributions in a minimum ratio of 2:1. The cash matches may include an applicant’s available cash on hand earmarked for the project; irrevocable contributions of cash that will be received and obligated by the end of the project period; and the cost of site acquisition (for the applicant-owned property) if acquired within three years prior to the date of application. In-kind match must be identified and may not exceed 30% of the total projected cost. The maximum amount for each award may not exceed $500,000.

At its September 13, 2018 meeting (Item No. 57), the Board approved a TDTCCGP Second Application Cycle when unobligated funds remain in a given funding year. Under the Administrative Code Chapter 29, Part II, Section 29.16 j., the Board in its discretion may initiate a Second Application Cycle if more than $250,000 remains in the program's fund. From Fiscal Years 2014 to 2018, $3,690,007 was awarded to 11 recipients (Exhibit 1). Of the $5 million allocated over the previous five years, $1,309,993 is unobligated.

Grant applicants in the Second Application Cycle are required to commit and have available (through cash contributions) a minimum ratio of one-dollar matching funds to one-dollar grant funds. They are also permitted to apply for more than one grant in a five-year period and may receive up to $1 million cumulatively in a five-year period. Only applications receiving a narrative ranking of “High” or “Medium” are considered for funding. Applications receiving a “High” ranking shall be funded before applications receiving a “Medium” ranking. Within any ranking category (“High” or “Medium”), the first dollars awarded in the Second Application Cycle are given to any projects that have not, in the previous five years, been awarded TDTCCGP funds.

The grant review panel for this Second Application Cycle was held on November 5, 2018. The panel consists of five members: one member who has served on the Broward Cultural Council (BCC) for at least three consecutive years; one member who is the Tourist Development Council (TDC) liaison to the BCC; and three members who are hoteliers identified by the TDC. One hotelier member of the invited panel did not attend the panel review. (While the grant review panel consists of five members, the GFLCVB also participates in the ranking the projects for tourism impact).

Three grant applications were received (Exhibit 2). The project applications were reviewed and ranked on a High-Medium-Low-NonResponsive/Ineligible basis by the panel. The review sheet used by the grant review panel included the tourism impact review report by GFLCVB of the "bed nights" that were projected by the applicants (Exhibit 3).

The Performing Arts Center received a “High” rating, The City of Pembroke Pines received a “Medium” ranking and the City of West Park received a “Low” ranking and therefore does not qualify to receive funding (Exhibit 4).

The City of West Park subsequently submitted a Notice of Appeal (Notice) to the staff on November 19, 2018 (Exhibit 5). The Notice stated that the panel’s decision was based on insufficient information as it relates to the projected hotel room nights provided as an estimate for room nights within the City and surrounding areas that have great potential to attract overnight visitation. The Notice also stated that unlike other applications scored by the panel, the range between the lowest and the largest total score is rather large and inconsistent with how other applications were scored.

Cultural Division staff responded to the City of West Park (Exhibit 6) on November 30, 2018 and restated that according to the staff at the GFLCVB, the City of West Park’s room night projection seems high as the center will be new and just starting to attract visits and that there are limited hotels in the municipality and surrounding areas. Without accommodations, it seems unlikely to attract overnight visitation. It is difficult to determine the number of room nights without a history of generation by the municipality.

The table below, also included in the letter, demonstrated that the scores were reasonably consistent among the panel members and the GFLCVB staff.