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January 6, 2003 Page 3 tax revenue for a track and field facility, Mr. Day stated no additional information has been received from the developer and it appears unlikely the project will locate in Cabarrus County. Finally, he asked the Board to authorize a study by Bullock Smith & Partners, Consultants in Fairground and Design, at a cost of $1,250.00 to develop plans for the midway improvements. Chairman Freeman reported that persons in the hotel industry have expressed concerns that there are no hotels in the area surrounding the Expo and that the facility would not create room nights. Commissioner Carruth reported on plans by the City of Concord to build a convention center adjacent to a hotel to be constructed by John Q. Hammons. The City has requested that the revenue from the two cents hotel occupancy tax generated at the Hammons Hotel be dedicated to the debt service for the convention center. Ms. Ann Sternal, Executive Director of the Convention and Visitors Bureau, reported on a recent retreat of the Tourism Authority with the hospitality industry in Cabarrus County. She stated the industry members are supportive of the Arena but a majority of the hospitality representatives feel the hotel occupancy tax should be used for strictly tourism-related activities. She indicated that further discussions are needed with the hospitality industry to get their input regarding the Expo funding proposal. Further, Ms. Sternal suggested that the hotel occupancy tax revenue could be used to create a sports marketing program and/or grants fund that would allow the County to compete with other cities for events. Ms. Aubie W. Cook, Vice Chair of the Tourism Authority Board of Directors, presented comments concerning the use of the hotel occupancy tax revenue, the different types of events that would be held at a convention center and the Expo and the number of room nights that would be generated by each facility. She stated in her opinion the revenue from the two percent hotel occupancy tax should be used toward advertising and marketing programs to promote tourism-related activities in Cabarrus County. Mr. Mark Chappuis, Expo General Manager, reported on recent and planned activities at the Expo and the hotel nights associated with those events. Mr. Mike Downs, Public Safety Services Director, and Mr. Jonathan Marshall, Planning and Zoning Services Director, reviewed the plans for constructing additional parking at the Expo. They also discussed the access road to be built to the School Administrative complex and parking at that facility. Ms. Cindy Fertenbaugh, member of the Cabarrus County Board of Education, expressed concerns about the availability of parking and security issues for staff and visitors at the School Administrative facility. Mr. John Cox, Executive Director of the Cabarrus Regional Chamber of Commerce and member of the Tourism Authority Board of Directors, stated the Chamber's support of the Expo. However, he expressed concern about the proposal to use the hotel occupancy tax revenue reserve funds for improvements at the Expo. He stated that discussions are needed between the County and the Tourism Authority regarding the use of those reserve funds. There was lengthy discussion regarding the Expo facility and use of the hotel occupancy tax reserve funds. Issues addressed by the Board included the following: (1) potential for tourism-related events at the Expo; (2) the possibility of competition between a convention center and the Expo for the same events; (3) the need to proceed with the Expo improvements; (4) the need to work with the Tourism Authority concerning the use of the hotel occupancy tax revenue; and (5) the importance of tourism to the County's economy. Mr. Hartsell responded to questions concerning the use of the proceeds from the five percent hotel occupancy tax. He confirmed that the revenue from two percent of the hotel occupancy tax could be used for the Expo facility. Mr. Ric Starnes stated that as an event promoter he had done business with several convention centers associated with John Q. Hammons facilities. He objected to using any of hotel occupancy tax revenue for a proposed convention center in Concord and stated in his opinion the revenue should be used for the Expo facility and the promotion of tourism in Cabarrus County. UPON MOTION of Commissioner Privette, seconded by Vice Chairman Suggs and unanimously carried, the Board approved $1,250.00 for the study to be