JEKYLL ISLAND AUTHORITY FY2021 Strategic Update
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JEKYLL ISLAND AUTHORITY FY2021 Strategic Update September 2020 JEKYLL ISLAND AUTHORITY SUMMARY In 1948 after recognizing that Jekyll Island’s natural beauty and vibrant history set it apart from any other coastal retreat, the Governor and the Georgia State Legislature established the island as a state park and entrusted its care to the Jekyll Island State Park Authority (JIA or Authority). The Jekyll Island Authority is responsible for the overall management and stewardship of Jekyll Island. While Jekyll Island is a State of Georgia Park today, it is not part of the Department of Natural Resources State Park System. Jekyll Island receives no operational appropriations from the State of Georgia and by state law must remain financially self-sufficient. Revitalization efforts that began in 2008 continue today. New hotels are being built, and long-standing island hotels are finishing significant renovations. The Convention Center continues to fill its schedule with new groups and impress its visitors daily. Bike paths, golf courses, and beaches have never looked better, and the Beach Village is alive with shops, restaurants, and visitors. During calendar year 2019, new parks and the Hilton Home2 opened. The Marriott Courtyard/Residence Inn began construction. This facility should open in June of 2021. Consequently, the Authority’s economic impact on Glynn County and the State continues to increase. A University of Georgia Impact Study in 2018 estimated the Island’s annual impact at $700 million. The demand for new housing on Jekyll Island remains strong. Since 2016, 161 new homes and townhomes have been constructed and sold on Jekyll. A new development, The Moorings at Jekyll Harbor, began construction of 48 condo units during FY2020. Over the past ten years $341 million in public/private investment on Jekyll Island has been completed or is underway, with an additional $16.1 million planned within the next two years. Throughout revitalization, the JIA has upheld the state mandated ratio of 3,920 acres (approximately 65%) undeveloped land for Jekyll Island. This pristine, beautiful, green space is enjoyed by wildlife and visitors and is a great example of the balance that can be struck between conservation and development. Even during difficult times, the revitalized Jekyll Island remains attractive to visitors. As a result of its natural setting, wide-open beaches, and drivable location, Jekyll Island has become somewhat of an oasis to persons needing an escape from the closures and stress of the COVID-19 pandemic. ANNUAL TRAFFIC COUNT 1,138,504 1,163,829 1,208,819 1,239,079 972,544 1,071,576 2014 2015 2016 2017 2018 2019 A balanced, self-sustaining operational budget is required of the Authority, and the FY21 operating budget is $27.5 million. Today the JIA has 26 departments with 160 full-time and 130 part-time employees serving approximately 860 residences and a variety of businesses - all dependent on the JIA for municipal services. These include water/sewer, roads, fire, and EMT services. JIA employees also provide approximately three million visitors annually with quality amenities including a golf club with four courses, a tennis center with 13 clay courts, miniature golf, waterpark, beach bathhouses and services, picnic areas, landscaping, signature festivals and events, park entertainment, Historic District and museum tours, the Georgia Sea Turtle Center, and campground facilities. Private contracted management partners provide the following services: ASM – convention center management , Waste Management – garbage and recycling, Circle K – gasoline/convenience center, Tortuga Jack’s, LLC – Tortuga Jack’s Restaurant, Northview Hotel Group – Jekyll Island Club Resort, and Georgia 4-H - management of Camp Jekyll. This document highlights many JIA initiatives for FY21. In addition to those highlighted, JIA departments will continue to undertake on-going operations and to execute new strategies as they are warranted. The Authority has begun implementing several recommendations of the 2018 Carrying Capacity and Infrastructure Study conducted by 2 Sand County Studios to improve infrastructure and to recommend optimal ranges of visitation throughout the Island. This study will continue to be the basis for most decisions balancing island experience and developmental issues. Of particular significance during FY21, the JIA will continue following Executive Orders and CDC Guidelines to keep employees and guests safe from the COVID-19 virus. Throughout the year, the Jekyll Island Authority cooperates extensively with many state entities, especially the Office of Planning and Budget, Department of Natural Resources, Department of Transportation, Attorney General’s Office, Georgia State Financing and Investment Commission, Public Service Commission, One Georgia Authority, State ADA Coordinators Office, the Georgia Lottery Commission, the Georgia Department of Audits and Accounts, Georgia Emergency Management Agency, and the Department of Community Affairs. The Jekyll Island Authority is especially grateful for the support of Governor Kemp, the Governor’s staff, and the State Legislature, including the Jekyll Island Legislative Oversight Committee, for their continued support of our efforts to revitalize and sustain Jekyll Island. Contact information: C. Jones Hooks, Executive Director - Jekyll Island Authority, 100 James Road, Jekyll Island, GA 31527 - [email protected], 912-635-4075 3 Jekyll Island Authority FY2021 – FY 2025 STRATEGIC PLAN (FY2021 UPDATE) Agency Mission: As stewards of Jekyll Island’s past, present and future, we are dedicated to maintaining the delicate balance between nature and humankind. Agency Vision: Through progressive stewardship and excellent customer service, Jekyll Island will be recognized as a sustainable conservation community that is the choice destination among all who experience its unique environment, service, and amenities. ENVIRONMENTAL SCAN/CHALLENGES: • Lack of convention/group business due to the pandemic • Inadequate State funding support • Completion of island revitalization • Understanding of Jekyll Island as a destination • Conventions previously committed to other Georgia cities and out-of-state locations • Increased competition for tourism dollars • Conservation of island’s natural resources • Preservation of Jekyll’s cultural and historical assets • Costs of education and research mission • Golf course improvements for profitable play • Available, quality workers • Threat of recession • Adequate financial resources for needed capital improvements • Continued escalation in employee health care costs and retirement benefits • ADA compliance throughout the island and all facilities • Coastal erosion control • Sea level rise • Glynn County taxation and property evaluations • Development/visitation pressures • Hurricanes and tropical storms • Visitation management to assure a sustainable and pleasurable experience • Convincing Georgians to experience Jekyll Island – via returning or as a first-time visitor • Retention of unskilled and semi-skilled employees The most serious environmental challenge in JIA history occurred beginning in March 2020 with the onset of the COVID-19 Pandemic. As a result of the pandemic, JIA revenues were down $1.6 million (63%) during the month of April 2020. Traffic counts at the Island entrance decreased for the month by 75,401 vehicles. Monthly occupancy at Jekyll Island hotels was only 15.1% as compared to 79.5% in April of 2019. And, 43% of the JIA work force was furloughed. Additionally, all expenses were cut in an effort to preserve financial resources. The 4th of July Fireworks display was cancelled and the Island’s largest festival, the annual Shrimp & Grits Festival, will not take place in November of 2020. The Authority cut its FY21 budget to $27.5 million compared to a budget of $30.5 million in FY2019. 4 GOAL 1 SUMMARY – CONTINUATION OF ISLAND REVITALIZATION Jekyll’s revitalization began in 2006 with proposals and plans. Revitalization has successfully updated facilities on Jekyll Island resulting in renewed interest in Island visitation among Georgians and visitors from throughout the United States and beyond. Revitalization was definitely an experiment in “if we build it, will they come?” The numbers confirm guests are indeed returning to Jekyll Island, even during the pandemic. Hotel Occupancy Rates 2016-2020 90.0% 80.0% 70.0% 60.0% 2016 50.0% 2017 40.0% 2018 30.0% 2019 OCCUPANCY PERCENTAGE OCCUPANCY 20.0% 2020 10.0% 0.0% 5 Measurable Objective 1: Achieve 100% occupancy of vacant retail facilities before end of FY21 Strategy 1: Beach Village: Engage a commercial realtor for vacant space. There is a total of 42,000 sf. of retail space in the Beach Village. Approximately 3,548 sf. of second floor space remains vacant. JIA staff has promoted and will continue to promote this space through special contacts and social postings. The services of a commercial real estate firm will now be contracted. Second Quarter FY21 Strategy 2: Historic District: Advertising campaign specifically designed to secure “experiential tenants” for the Historic District vacancies will be undertaken. There are presently two retail/commercial spaces available in the Historic District, the Historic Infirmary and a shop on Pier Road. Third Quarter FY21 Measurable Objective 2: Additional lodging choices by summer of 2021 Strategy 1: Completion of two new hotels by June of 2021. Construction of a dual-branded Marriott Courtyard (120 rooms) and Marriott Residence Inn (89 rooms)