The Eureka Springs City Advertising and Promotion Commission received a January electric bill of $4,500 for The Auditorium, an amount that interim director Mike Maloney calls “the biggest electric bill we’ve ever had.”
The cause of the problem, Maloney told the commissioners at their regular meeting on Thursday, Feb. 22, is a struggling HVAC system that has had recent repairs and possibly needs to be replaced.
“The HVAC systems that we have right now are failing, have been failing,” Maloney said. “We’ve been spending a lot of money on trying to keep them working, and they are just not doing the job.
“They were put in in 2011 and heat pumps have a lifespan of about 10 years. These are commercial heat pumps and they have basically lived their lives.”
Maloney said an initial estimate of what it would cost to replace the units was approximately $420,000, a figure large enough that CAPC members began discussions once again about agreements with the city on The Aud and who should be responsible for what.
“We obviously are in that situation where, who owns the building?” Maloney said to commissioners. “We are the tenants of this building, not the owners of the building. On the same token, because we have discussed this in the past, creating another document, which is an Auditorium and city agreement as to who does what …” Maloney said the city and CAPC had a relationship when he was director in the past.
“It’s kind of a give and take right now,” Maloney said. “We had a relationship in 2017 and 2018, which was a contractual agreement where we paid the city in 2017 rent basically. Then in 2018 we didn’t pay rent, but we paid utilities. Frankly, after I left nothing happened so I can’t really speak to where we should go but I think it’s a question and a discussion that should be had.”
Commissioners discussed having a consultant come in and survey the building and various heat and air options. The idea of having a workshop to discuss an agreement with the city was also discussed.
“Keep in mind, in 2018 we weren’t doing as much as we are doing right now,” Maloney said of The Aud. “We were not having certain meetings in here and we were not doing a robust schedule of concerts and events. Another part of it was the CAPC was not in this building, we were up on the highway, and it was an out of sight, out of mind, don’t get me wrong. But on the same token, we didn’t have the same relationship that we have with this building right now. It’s changed.
“…The big thing is everybody wants to take advantage of this building and utilize this building. … This is the way I look at it: When the electric bill is $4,500 and the cost for the project is $420,000, who owns the building? CAPC. No, it’s because we have the money in the bank, that’s the reason why. And I don’t say that to be indifferent to the city.”
In the end, the commission requested more information and a possible workshop.
“I would like to see some kind of agreement in black and white between us and the city,” commissioner Steve Holifield said. “What we’re responsible for, what they’re responsible for, and it should be negotiated somewhere.” Chris Clifton, commission chair, said absorbing extra monthly costs may be better than a huge expense on new units.
“You had the most extreme month and it was $4,500,” Clifton said. “And so then, what’s the savings, what’s the difference? What’s the average? That’s the info we need, the average bill.
“If limping along costs us an extra $10,000 a year for the next 10 years that $100,000 versus $300,000-plus to upgrade to a new system. May we limp along? I don’t know what the answer is, but we need more information.”
MONTHLY REPORTS
Maloney, who gave the monthly finance report in the absence of finance director Scott Bardin, said the CAPC had a balance of $2,016,996.40 at the end of December.
The CAPC collected $67,885 in tax revenue on food and beverage in December, 32 percent lower than expected, and $52,223 in lodging, compared to the $115,000 that was budgeted.
“That’s a pretty big deficit,” Maloney said.
Total collections for December were $120,108, with $215,000 being budgeted.
Overall in 2023 the CAPC’s budget finished “flat,” Maloney and commissioners agreed.
“It was not a significant year,” Maloney said.
In his tourism report, Maloney said Dallas was the top city in website traffic to visiteurekasprings. com with cities such as Chicago, Kansas City, Oklahoma City, Little Rock and St. Louis in the top 10. In organic traffic to the website, New York came in at No. 10.
“I always find it fascinating that we really branch out a lot further than sometimes people are aware of,” Maloney said.
OTHER ACTION
The commission watched two videos made by Edward Robison III and White Phoenix Films and produced in 2018 showing various aspects of the city.
Maloney said he shared the videos with the CAPC’s advertising agency, Madden Media, and “they were frankly blown away. That’s the best way to put it.”
After discussion, the commission voted to pay White Phoenix Films $14,000 to revamp two of the videos with current logos and website information. The fee will give the city the rights to the videos for five years.
In marketing funding requests the commission approved $5,000 for the Eureka Springs Plein Air Festival, a six-day event that will be held June 2-7.
The commission also voted to approve $3,000 to go to Springtime in the Ozarks, an Alcoholics Anonymous event, and $5,000 for the Eureka Springs Blues Party event.
In public comments, Jim Nelson asked the commission to consider giving the new Eureka Springs Art Museum, located at the Community Center, $4,500 to help with advertising, such as event guides.
“We’re an attraction. We’re not an event,” Nelson said. “We’re like an ongoing event that’s going to get better and better and better as time goes by.”
