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Revitalization Update February 3, 2009

Tuesday, February 3rd, 2009

From The Desk of Jones Hooks

 

As the Georgia General Assembly begins its 2009 session, Jekyll Island revitalization is again a topic under the Gold Dome. Although the economy and the tough fiscal issues that the recession has created will certainly dominate the session, the Jekyll Island Authority was asked to give an update before the House State Institutions and Properties Committee on Wednesday, January 28. The presentation is available on our web site as well as a link to the video archive of the meeting. The committee seemed pleased with the progress to date, but some questions were raised regarding the vacation ownership component of the new Beach Village. The vacation ownership is just one part of the Private Revitalization Partnering Agreement signed last month with Linger Longer Communities.


There has been some misinformation circulated and even reported in the Georgia Times-Union regarding the vacation ownership that needs to be clarified. It has been suggested that the profits flowing from the vacation ownership to our private partners are such that the public bonds to build the new convention center and beachfront park are not necessary. This assertion is completely wrong and based on flawed financial analysis. It is being claimed that the net profits will be in excess of $100+ million dollars - the difference between the ground lease plus the anticipated construction cost and the anticipated sales of time intervals.This calculation does not consider any of the costs associated with marketing, selling, operating or maintaining this facility over time and ignores the risk of a changing marketplace. The net profits are uncertain, and will be earned by Linger Longer Communities’ ability to execute a successful business plan. We have complete confidence in our partner, but in these tough economic times they will earn every cent. We will do all we can regarding our responsibilities to the public parts of the plan to help ensure success.


Economic Stimulus
The General Obligations Bonds are critical to revitalization of Jekyll Island, and will be used appropriately to fund the public portions of the revitalization plan. That includes a new Jekyll Island Convention Center and a new beachfront “signature” park. The new convention center will allow us to attract Georgia-based conventions that currently meet in neighboring states. Convention business is critical in reversing the downward trend in visitation, and our sales staff is already selling future business. Conventions provide benefit to all hotels and businesses on the island. Typical convention groups that will be attracted to Jekyll Island will not particularly utilize the vacation ownership, but rather book hotels all over the island, especially since we will be able to offer a variety of room types and price points. To suggest that our private partner should construct the vital public amenities is misguided, and would be unacceptable to our other hotel partners.

The economic stimulus to the State of Georgia associated with revitalization will be significant with $162.8 million in tax revenues and an estimated $180 million in payroll over the next 15 years.


Jekyll Advisory Forum
We are excited to host the first meeting of the Jekyll Advisory Forum. This group will provide input directly to our board chairman regarding Jekyll Island and how revitalization can move forward in a way that benefits all Georgians. A diverse group of twenty-four citizens were invited and all have confirmed their participation. The first meeting will be held February 5th on Jekyll Island.  Participants will include representatives of the Jekyll Island Citizens Association, the Glynn County Board of Commissioners, City of Brunswick, Department of Natural Resources, The Georgia Conservancy, as well as others.

Jekyll Island Authority Board Members
We were pleased to be informed that two board members will be reappointed for another term. Mike Hodges from St. Simons and Steve Croy from Richmond Hill have both been reappointed by Governor Perdue. We appreciate the hard work of all of our appointed board members, in particular Mr. Hodges who serves as Secretary and Finance Committee Chairman; and Mr. Croy who serves as Vice Chairman and Legislative Committee Chairman. Mr. Croy and Mr. Hodges have been instrumental in seeing that revitalization takes place, and we thank them for their commitment and look forward to continuing our work together.

Thank you for your continued interest in Jekyll Island, and I appreciate the frequent notes and input that I receive. Based on your feedback, it seems we are on the right track, and many of you share my excitement for good things to come. I want to encourage you to continue to visit us and see revitalization take place first-hand. Jekyll Island offers such a wonderful escape, and I feel grateful to be able to work towards enhancing and protecting the island for future generations.


Sincerely,
Jones Hooks
Executive Director, Jekyll Island Authority

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Jekyll Island Revitalization Update September 17, 2008

Wednesday, September 17th, 2008

 

From the desk of C. Jones Hooks

Executive Director
Jekyll Island - State Park Authority


It is a pleasure for me to share the latest information from the Jekyll Island Authority with you, our vested homeowners and visitors.

JEKYLL ISLAND VISITATION ANALYSIS:
The Jekyll Island Visitation Analysis shared at the Sept. 15 board meeting and produced by an independent research firm, Bleakly and Associates, should be extremely helpful as we continue to lay the ground work for our Island’s future success. The report shows that island visitation peaked in the 1988-1989 time period, when we saw approximately 2.1 million guests visit Jekyll Island. Unfortunately since that time, we have seen a steady decline in visitation. Last year only 1.49 million visitors came to Jekyll Island. In order to accomplish our mission of trustworthy stewardship and generation of revenues, the analysis shows that we will need to increase tourism and visitation. Because Jekyll Island is a self-funded entity, the analysis provides a wake-up call to the importance for the Jekyll Island Authority to increase visitation so that the costs to care for the island are manageable. As you’re aware in the Jekyll Island Club Historic Landmark District alone, we have over $30 million in preservation needs. The good news is that by increasing visitation by only 21% over 1988-1989 levels, the island can finance operations and improve our public facilities. Jekyll Island will then remain an affordable and attractive place for all Georgians to enjoy. Further, the forecasting model supports how visitation can increase with limited, low-density redevelopment of existing sites that affect only 6% of the island. This supports our approach of balance between redevelopment and conservation/preservation activities. It was also interesting that the Bleakly report found revenue increases to the Jekyll Island Authority via public/private partner lease agreements are key to funding the needed infrastructure, as well as improvements to public amenities like golf courses, beach management and more.

KEY POINTS TO REMEMBER:

  • Annual visitation to the island has been declining at a 2.6% annual rate since 2002 and is down roughly 23% since 1988-1989.
  • When adjusted for inflation, JIA revenues have declined at a 2.3% annual rate since 2002
  • Visitation can increase with limited, low density redevelopment and development.
  • Total development needed to support visitation and JIA income projections over the next 15 years represents a net addition of roughly 1000 lodging units, 400 dwelling units, and 25,000 commercial square feet over levels that existed 20 years ago.
  • Jekyll Island has approximately 4226 acres and by law, 65% must remain undeveloped.
  • Of the remaining 35%, only 256 acres or 6% of the Island is directly impacted. Most of this small area is already development with existing hotels and the convention center.

Bleakly and Associates’ work is comprehensive. A public in-depth presentation will be offered Sept. 29 at 2:00 p.m. at the Jekyll Island Convention Center. Anyone interested is encouraged to attend!

JEKYLL ISLAND DESIGN GUIDELINES: Another important policy initiative related to Jekyll Island Revitalization is the Jekyll Island Design Guidelines. While already put into practical use, the Design Guidelines dictate the architectural design, height, scale and density of all new construction. The Design Guidelines were developed with the Jekyll Island Authority by Cooper Carry, a leader in the field of connective architecture. Since the “First Reading”, we have received lots of input and public comments. The Jekyll Island Authority Board will consider adoption of the Design Guidelines at its October 20th meeting.

OTHER NEWS: Construction continues on our first new hotel construction, the Hampton Inn & Suites. With plans progressing and construction underway on this and other properties, we are already seeing an immediate return of conventions interested in bringing their groups back to Jekyll Island! We are pleased to announce that Jekyll Island has been selected as the host for a 2009 meeting of the Georgia Association of Convention and Visitors Bureaus, as well as the Georgia Press Association 2009 annual conference. We appreciate your interest in Jekyll Island, and encourage you to stay in touch. I value your continued insight and feedback, please check out our website www.jekyllisland.com for up-to-date information.

Kind Regards,
Jones Hooks
Executive Director, Jekyll Island - State Park Authority

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