CHAMBER CHOWDER© 510 Greene Street ~ 1st Floor, www.keywestchamber.org Chamber Hears Legislative Highlights Message from President Nicki Will

s I drove down U.S. 1 Arecently from through Big Coppitt, I pondered the future of the roadway and the landscape of the area. Quite frankly as I strug- gled to keep my speed to 45 MPH, yes remember the speed limit is 45 from Stock Island through Big Key West Chamber of Commerce President Nicki Will, left, thanks State Rep. Holly Raschein for Coppitt, I do look forward to a newly resurfaced her legislative update at the Chamber’s May luncheon. roadway. We are all used to incessant road work on he lawmakers may not have passed a balanced budget during the 2015 Highway 1 but on the other hand I also thought legislative session in Tallahassee, but they did tackle some windstorm and flood about the many years that I lived up north and this Tinsurance issues while passing additional bills aimed to help Floridians. time of the year we had the “pothole hotline” that State Rep. Holly Raschein, the Keys Republican representative in Tallahassee, spoke to members of the Key West Chamber of Commerce during their May 27th membership we all called to report the craters in the roadways luncheon at the Marriott Beachside Resort. due to the freeze and thaw cycle that thankfully we After 57 days in the state capital, politicians in the State House of Representatives are not subject to in the Keys. and the Florida Senate were unable to reach agreement on the state’s finances. “I I also thought about the Naval Air Station thought I’d talk a little about what we did manage to get done,” Raschein told Chamber Key West on Boca Chica. We too often forget to members. In a few days Raschein will be returning to Tallahassee for a month-long thank the men and women that serve and protect special session called specifically for lawmakers to hash out a balanced budget for the Sunshine State by the end of June. our freedom. The engineering marvels that are “We did a lot of work with Citizens Property Insurance,” Raschein said, asking for the jets that are used for training at NAS. And a show of hands of the number of Chamber members who rely on the state-subsidized finally the positive impact on our community insurer of last resort for windstorm policies in the hurricane-prone coastal state. “There and economy that a military presence brings. was an issue in 2013 when a provision with Citizens Property Insurance would have The stable employment base both military and allowed the insurance company to deny policies for properties in designated Coastal Barrier Resource Zones, which includes the island chain. civilian, individuals that live, work and play in Chamber Chowder “What was happening was Citizens would cover your loss, but then drop you as a our community, and people that give back to the Vol. 17, No. 12 policyholder,” Raschein said. “We got that provision fixed and it’s on the governor’s desk community through various charitable events and now awaiting his signature.” continued on page 34 The Keys representative was also asked to co-sponsor a bill that was out of her usual area of expertise this past legislative session. Table of Contents “The party leadership asked me to work on something a little different, in the criminal justice realm, this session,” she said, adding that House Bill 717 took steps to Business Spotlight ...... 2 specifically define a “no contact order” that is often issued in cases of domestic violence. Thank You for Supporting Tom Sawyer 5 Star Program . . 4 “My bill clarified and defined a no-contact order,” Raschein said. “Before this, a Visitor Brochure and Map Information . . . . .5 . suspect could basically go park outside a victim’s house, and there was nothing the victim Business Trends ...... 6-7 could do about it because there was no uniform definition of a no-contact order.” Paying Tribute to Our Area Teachers ...... 8 “We also heard an outcry this year regarding ‘overtesting’ in schools,” Raschein said, adding that the legislature acted by passing House Bill 7069. “We should see some relief Business After Hours ...... 9 from testing in schools, so we’ll be testing smarter, not harder.” New Members ...... 10 . . The bill limits testing to 45 hours – out of 900 – a school year, with some exceptions. Cruise Ship Calendar ...... 10 It also does away with a requirement for final exams in all courses, a demand initially Community Calendar ...... 11 introduced in 2011 under the state’s merit-pay law for teachers. Tiger in the Woods Golf Tournament Photos . . . . . 11 But it leaves intact the state’s main testing program, so standardized exams in language Chamber Calendar of Events ...... 12 . continued on page 3 4 Page 1 Chamber Chowder June 2015 Vol. 18, No. 6 Spotlight Shines on ... George B. Wallace, Esquire

“I focus primarily on general practice at County from 1981 to 1984. He became a partner this point, doing a lot of commercial real estate at Berry & Wallace in 1984. In 1989 became a loans, wills, trusts and probate,” Wallace said. “I partner at Moncrief & Reid, then Moncrief & do it all. In fact, I still have an active criminal Wallace from 1995 to 2000., with primary areas defense case going, and I’m still a title agent for of practice being real estate, corporate and business real estate transactions.” practice, wills, trusts, probate, civil litigation, Wallace said the legal landscape of Key criminal defense and family law. West, where many attorneys specialize in one Wallace became sole owner of the firm in 2000 specific area of the law, be it real estate, business, and renamed it George B. Wallace & Associates. A tax, property or criminal defense, is much few years later, he and Julie both expanded their different than Sanford. businesses to the Keys, with Julie still owning and “In Sanford, if you specialized you starved,” operating Sanford Mortgage Corporation. said Wallace who likes the variety that comes with Both are members of the Key West Chamber being a jack of all trades. “I always and still do take of Commerce, and George has also become active pride in providing services that meet or exceed the in the Sunrise Rotary Club of Key West, the Navy Each month, the Chamber of Commerce spotlights standard, but I can do it for a smaller fee.” League and the Monroe County Bar Association. a business or professional person whose business card is His office is in a downtown professional But it’s not all legal briefs and leadership drawn at the Business After Hours. This month’s winner plaza at 300 Southard St., where Wallace warmly meetings for George Wallace, who makes a point is George B. Wallace, Esquire. welcomes clients. to enjoy the reasons he moved to the Florida Keys. “Down here, I can focus on my clients “Fishing and lobstering,” he said without ttorney George Wallace doesn’t need a individually and more efficiently, which saves hesitation when asked what he enjoys in his sprawling office with expensive artwork everyone time and money,” he said. spare time. “Any chance I get.” A to serve his clients. After 34 years as a Before devoting his time to his own practice, Wallace’s office is conveniently located across practicing attorney between his hometown of Wallace served as assistant state attorney, or the street from the courthouse at 300 Southard Sanford, Florida and his adopted island of Key prosecutor, for the 18th Judicial Circuit in Seminole St. Contact him at 305-294-3660. West, Wallace has become a sort of “one-man band” in his local office at 300 Southard St. Wallace started his own practice in 1982 in Sanford – that previously unknown Florida town that gained notoriety in 2012 as the site of the shooting death of African-American teenager Trayvon Martin by white neighborhood watch activist George Zimmerman. “That’s why everyone has now heard of Sanford, Florida,” Wallace said of the Central Florida town of about 53,000 residents. “I now have people running the Sanford office so I can be a full-time Keys resident.” Wallace and his wife, Julie, bought a home on in 2004 “and then we got a place in Key West about three years ago, and I opened up an office down here two years ago,” he said with a hint of the Southern drawl found farther north in Florida. The Chamber Chowder Heartily Thanks These Businesses for Their Generous Support of this Issue of the Newsletter Ernest Hemingway La Concha YP.com House Museum Crowne Plaza 9850 NW 41st St. 907 Whitehead Street 430 Duval Street Doral, FL 33178 Key West, FL 33040 Key West, FL 33040 305-482-2601 305-294-1136 305-296-2991 Porter Allen Old Town Key West Insurance Company Development 513 Southard Street 201 Front Street, Suite 301 Key West, FL 33040 Key West, FL 33040 305-294-2542 305-294-3225

Page 2 Chamber Chowder © June 2015 Vol. 18, No. 6 “Legislative Highlights” continued from page 1 4 President’s Message continued from page 1 4 arts and math still will be taken by students in flags that fly above public buildings to be made community involvement. There are elementary through high school. in the United States. many visitors, snowbirds or residents In addition to Citizens Property Insurance, “No more buying American flags from Florida lawmakers also spent a great deal of China,” she said. “If you can’t afford three or that have passed through NAS as a time on a Flood Insurance Flexibility Bill to seven dollars for an American-made American member of the military and come back encourage private sector involvement, Raschein flag, please come see me,” she added before to Key West. said, explaining that Florida is a donor state to discussing the budget deadlock. This section of the highway also the National Flood Insurance Program, which “I’ve never seen the budget process stall like brings to mind a partial of land that covers properties in flood-prone areas. it did,” she said. “The only thing the legislature has become one of the major points “For every $4 Florida contributes to the has to do is pass a balanced budget, and the NFIP, we get back one dollar,” she said, adding House and Senate did not see eye to eye on one of discussion in our community. This that lawmakers are working to encourage private thing – federal health care laws and reform.” recent community item of contention sector insurance companies to enter the Florida Despite the differences between the or at least discussion has been the market and begin writing flood insurance conservation House and the less conservative Senate, proposed WalMart shopping center policies to alleviate some of the state’s reliance Raschein said, in her opinion, a state government on Rockland Key. Well, Chamber on the NFIP. “We’re a donor state to the NFIP; shutdown is “highly, highly, highly doubtful.” always have been, so we’re trying to mitigate “I think the leadership of each chamber is Members, we will have representatives federal issues at the state level.” meeting at length to find a compromise,” she said, of WalMart at our July General Another step in the right direction, explaining that the disagreement stems from the Membership meeting to present and Raschein said, came with regard to gay people’s House’s vehement opposition to the expansion of discuss the proposed development. right to adopt children in Florida. Although the Medicaid coverage in Florida. “We live in one of Please make your reservation and plan to Supreme Court had already deemed Florida’s the most underinsured areas of the state, and my attend the General Membership meeting ban on gay adoption unconstitutional, the leadership is opposed to any expansion of federal Legislature followed up on the court ruling this Medicaid benefits because of the costs. But on at Noon on July 22nd at the Marriott session by adding the relevant language to the the other hand, it makes me have to tell my Beachside to listen to a presentation and state’s laws. constituents that we’re not going to cover their to be able to ask questions regarding the “So that was finally a step in the right health care. It’s not easy being me these days.” proposed development. direction for our state, with House Bill 7013,” she The question of Cuba relations also puts There are some additional said, adding that lawmakers also approved online Raschein in a difficult spot, given her district’s voter registration that will be allowed in 2017. inclusion of both Monroe County and parts of interesting and challenging activities “Our election supervisor, Joyce Griffin, and Miami-Dade, where “a number of residents are before us during this summer that her staff will continue to meticulously review vehemently against any dealings with the Castro involve road construction. At the end each voter application, but that will soon be regime. That said, I do think we need to be ready of June, significant road work will able to be done online,” Raschein said, adding to address the growing Cuba issue.” begin on Truman Avenue between that the new technological option may help Raschein closed her presentation by Eisenhower Boulevard and Whitehead encourage younger residents to become voters. emphasizing her optimism that senior Raschein also told Chamber members that lawmakers can broker a budget by the end of Streets. All Chamber Members need to the state also passed a law requiring all American June, and avoid a government shutdown. be aware of this project, although it will only be operational for approximately 140 days, it may significantly Visit Dan for challenge many businesses, residents and visitors to Key West including FINANCING made easy! access to properties, detours of traffic Centennial Bank’s local loan expert DAN understands and noise and dust. The Chamber the uniqueness of the islands, and he’s dedicated to is in informational discussions with finding the perfect loan for you. the City of Key West and FDOT. All We offer FNMA, FHLMC, FHA, VA and non-traditional Chamber Members should be tuned loans. Conventional, Jumbo, FNMA, FHLMC, FHA and VA into this project. Those wanting Financing Available. specific information are encouraged to attend the Key West City Commission Dan Blagriff, LOAN ORIGINATOR • NMLS 675375 meeting on June 2nd. 305-676-3146 • [email protected] Thank you for your continued support of the Chamber. Please let me MY100BANK.COM A Home BancShares Company (Nasdaq:HOMB) know how we may better serve you.

Page 3 Chamber Chowder © June 2015 Vol. 18, No. 6 DIRECTORS WANTED! “INTENT TO RUN” MUST BE RECEIVED BY JULY 1, 2015 at 5 p.m. in the Chamber office.

hile there won’t be lights and cameras, there should be plenty board’s discretion, the following year during the January Board of action, if you want to play an active role in helping shape of Directors meeting. The date of the Board Retreat is announced W the future of your community. one year in advance. This year the retreat will be held on the The Key West Chamber of Commerce is looking for a few good evening of Thursday, November 19, 2015 through the evening of men and women who are dedicated hard-working business people to Friday, November 20, 2015, and will be held in Ft. Lauderdale. serve on The Key West Chamber of Commerce Board of Directors. Any individual or Owner/Employee Member Business who The duties of a director include: has been a member for one full year in good standing before an election who desires to serve on the board and can make a long-term • Participate actively through committees and as a chairperson commitment for the purpose of advancing the commercial, industrial, where needed to complete Chamber goals and programs. civic, and general interests of Key West shall be eligible to be listed • Attending events i.e., Business After Hours, Trade Shows, and on the ballot. Seminars in order to represent the membership of the Key West The Key West Chamber of Commerce contact person will be Chamber of Commerce. receiving their “Intent to Run” paperwork in the mail in the form • During the fiscal year, there shall be eleven (11) regular monthly of a memo from President Nicki Will. The “Intent to Run” will also Board of Directors meetings, thirteen (13) regular General be sent to the chamber’s members at each organization or place of Membership meetings, including the Annual Meeting and business also via email. Installation of Officers, and one (1) Annual Retreat. Absence by a “Every voting member of the Key West Chamber of Commerce who director from either six (6) monthly Board of Directors meetings meets the guidelines is welcome to run for a position on the board as a or seven (7) monthly General Membership meetings during the director,” said Chamber Executive Vice President Virginia Panico. “Anyone fiscal year shall constitute resignation from the board. The only who sends in an ‘Intent to Run’ form with a short biography to the Chamber excused absence permitted is attendance at a meeting or function office by 5:00 p.m. on Wednesday, July 1, 2015 will be placed on the ballot. as requested by the President or Directors of the Board. But, there is a definite time commitment to consider. That is why many • Directors shall attend the Annual Retreat under whatever of our board members are business owners and senior level executives, venue(s) are made available. If a Director does not attend the who have more control over their time schedules.” Virginia has been asked Annual Retreat, the Director’s membership on the board shall be how people get to serve on the board. “This is your opportunity,” she said. terminated. Reinstatement may be approved by the board, in the “Carpe diem.” Please contact Virginia for more information.

Chamber Member Tom McKechnie (center), owner of T.E.M. Environmental Well it certainly looks like Ron Demes had a rough day of golf, or is that what you call a & Mechanical Services, Corp. was a Clubhouse Sponsor, and first hole in one? Left to right Capt. Steve McAlearney, Ron Demes, Jim Scholl, and Pat Lefere. time player in this years “Tiger in the Woods” Golf Tournament. Page 4 Chamber Chowder © June 2015 Vol. 18, No. 6 A special “Thank You” to all of our major sponsors for the 10th Annual “Tiger in the Woods” Golf Tournament held Sunday, April 26th at the Key West Golf Club.

Centennial Bank, Horan, Wallace & Higgins, Icamco, Isaksen Insurance, Lower Keys Medical Center, T.E.M. Environmental, Island Dental, Westin Key West Resort

Par 3 Sponsors: and Beverage Cart Sponsor: Anderson Outdoor Advertising Key West Marriott Beachside Resort OMI/CH2mHillAdvertising

Arnold’s Towing Mosher Trust – PLATINUM SPONSORS GOLD SPONSORS Bascom Grooms Real Estate Gerald and Marina Mosher Charley Toppino & Sons Hydro Thunder Cayo Hueso Resorts and Monroe Concrete Advanced Urgent Care Century 21 Schwartz IN-KIND SPONSORS Waste Management Cardiovascular Center of Excellence Conch Tour Train Boulevard Tire Cowboy Bills Budweiser CLUBHOUSE SPONSORS Doubletree Grand Key Resort Phil Goodman Centennial Bank Fastenal Hansen and Bringle Cabinets Cheney Brothers Centennial Bank Florida Keys Community College Iberia Bank Doubletree Grand Key Resort Horan, Wallace & Higgins LLP Hemingway House Island City House Hotel Fausto’s Food Palace Hyatt Key West Key West Jeep Adventures JB Investments Florida Keys Aqueduct Service Icamco Key West Bar Pilots Association Islamorada Beer Company Isaksen Insurance TEE BOX SPONSORS Key West Vacation Properties Pepsi Island Dental Keys Business Solutions Premier Beverage Lower Keys Medical Center Ibis Bay Keys Federal Credit Union Ricks/Durty Harry’s Entertainment New Moon Management Pinchers Keys Marine Supply Nextran Truck Center Keys Mini Storage A special thank you to all of T.E.M. Environmental SILVER SPONSORS Key West Insurance our Committee Volunteers, Westin Key West Resort & Marina Merrill Lynch Blue Heaven Restaurant and individuals that came out Oppenheimer Eye Clinic Captain Conch Charters PAR 3 SPONSORS Oropeza & Parks and volunteered their time to Charlie Macs make this event a success. Mark Anderson Outdoor Advertising Murray Marina Parts Master Pegasus International Hotel your calendar for our 11th Casa Marina Resort The Conch House Annual “Tiger in the Woods” Key West Marriott Beachside Resort Ron Jon Surf Shop Reynolds Engineering Services, Inc. Golf Tournament scheduled Pier House Resort & Caribbean Spa Romoco HOLE SPONSORS Snap On Tools for Sunday, April 24, 2016. For BEVERAGE CART SPONSOR Swimline Pool Products more information contact Kerry Appraisal Company of Key West The Pool Man Baker at 305-294-2587 or email OMI/CH2MHILL Arnold’s Crane Service Turtle Kraals Restaurant [email protected]. Page 5 Chamber Chowder © June 2015 Vol. 18, No. 6 Key West International Airport Arrivals Passenger arrivals to Key West January 2010 - April 2015 International Airport in April 2015 totaled 34,490. This is a decrease of 12.7% when compared to April of AirTran service began 12/2009 50,000 2014. 45,000 Southwest service ends 06/07/14 and Silver Airways assumes limited routes 40,000 Southwest acquired Total passenger arrivals for the first four Airtran 11/2012 months of 2015 were 137,261. That is a 35,000 14% decrease over the same period in 30,000 2014. These decreases are a significant 25,000 improvement over the decreases we were

Deplanements 20,000 seeing last year, following Southwest's 15,000 withdraw in June 2014. 10,000 The improvements to date are being seen 5,000 by American and Silver, with increases 0 in passenger arrivals of 31% and 47%, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec respectively. Source: Key West International Airport

2010 2011 2012 2013 2014 2015 A total of 71,509 cruise ship passengers disembarked in Key West during April Key West Cruise Ship Passengers 2015. This was 8.8% lower than April January 2010 - April 2015 of 2014, which saw 78,431 passengers 120,000 disembark.

100,000 For the four months of 2015, cruise ship arrivals saw 352,997 passengers disembark from 161 port calls. While port 80,000 calls are up 5.2% so far for 2015, passenger counts are only up 1% over the 60,000 same period in 2014. Passengers 40,000 The cruise ship schedule for June through August 2015 compared to the same three 20,000 months in 2014 is shown below:

0 Number of Ships Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015 June 16 12 Source: City of Key West Port Operations July 16 14 2010 2011 2012 2013 2014 2015 August 13 11 Source: Key West International Airport

Key West Bed Tax Collections Reported Bed Tax Collections for Key January 2010 - March 2015 West were $2,319,194 for March 2015, 2,500,000 an increase of 7.5% compared to March 2014. Triangle Properties offline BP Oil Spill 4/20/10 2,000,000 for renovation 6/16/13 According to Smith Travel, March 2015 (519 Beds) 4th Penny Tax occupancy was 92.1%, a 1.5 percentage Implemented 6/1/09 point decrease from the March 2014 1,500,000 occupancy rate of 93.6%.

The Average Daily Rate (ADR) was 1,000,000 reported at $384.87 for March 2015, an

Bed Tax Collections in Dollars in Collections Tax Bed increase of 6.3% from the ADR of

500,000 $362.13 posted for March 2014. This ADR of $384.87 is the highest recorded for the month of March. This continues the record 0 of 62 months where the ADR has been Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec higher than the previous year. In fact, the Source: Monroe County Tax Collector last 48 months are all-time records for each month. 2010 2011 2012 2013 2014 2015

Page 6 Chamber Chowder © June 2015 Vol. 18, No. 6 Key West 2015 Overview

3,738 Square Miles What makes Conchs so 73% water Happy with their Encompassing the Everglades and Community? the Florida Keys archipelago, the County is:  While headlines in Florida recently touted evidence that the Let's 400 miles of roads From Beaches to Hockey Rinks  26 Bridges nuts‐and‐bolts considerations like building codes, zoning, tour to Sunsets, on only 7.4 square transportation, height, density and mixed‐use standards have  2 Airports  miles, the City is: a big impact on the physical health of a community's 17 National & State Parks  4 Beaches  80 miles of streets residents,* the actions of our municipalities do affect our lives  8 Boat Ramps  3 Marinas/ports in very tactical ways every day. doing Who we are What we did What we're  1 Community Pool  16 Parks/recreational facilities  5 Libraries  1 Cemetery  9 Fire Stations And our leader's (in)decisions today have big impacts on our  3 Fire Stations  3 Government Centers community's future. The Soul of the Community project takes  400 vehicles & equipment  a look at the role of community attachment in an area's 5 Courthouses  A Medical Examiners Facility economic growth and well‐being. The study focuses on the  State Attorney & Public Defenders Offices emotional side of residents, their communities, and the  2 Senior Centers, and an Assisted Living Facility connection that sets cities apart. While there is significant  2 Museums correlation between GDP growth and attachment levels, the The County financially supports 25 local non‐profits study's findings help leaders improve community attachment that provide citizens services such as medical care, and reframe the economic development conversation. social assistance, and quality of life improvements.

In 2014 the Fire Department made 2,320 inspections and responded to 1,900 service calls. In 2014 an EMS was created which started operations April 2015 with Eddie Perez as the Key West collects and treats Division Chief of Emergency Medical Services. o 4.5 million gallons of wastewater per day o 119 tons of solid waste per day o 16 tons of recycled material per day In 2014 the Police Department responded to 126,000 service calls, 24,978 calls to 911, 63,943 Non‐emergency calls, and 6,401 Front Door Calls. 2014 Ordinances 14‐1. Required voting to modify Key West's main ship channel City website becomes 14‐2. Establish News Rack fees and regulations approved 14‐3. Fixed the Funding of Art in New Construction Program www.cityofkeywest‐fl.gov 14‐4. Restricted Motorized Vendors from operating downtown were 14‐5. Regulated wheelchair accessible vehicles for hire 14‐6. Prohibited unreasonably excessive noise 14‐7. Changed process for issuance of temporary waivers of Noise Control Ongoing 2015 City Projects: 14‐8. Increased the number of violations allowed for entertainment licenses • City Hall on White Street South Roosevelt Boulevard Ordinances 14‐9. Granted a $50,000 Homestead Exemption to low income Seniors •

projects ROGO • Frederick Douglas Gym Renovation

20 14‐10. Required proof of pump‐out for dinghy docking

million &

14‐11. Required permits for Cosmetics businesses • Caroline Street Corridor active

60 $ 14‐12. Created new Employee Parking Lot Permit in • Truman Waterfront Park 1,970 14‐13. Created new Residential Parking Permit • Transit Facility remaining 14. Re‐Zoned 625 South Street from HRO to HCT Units 15. Called for Referendum for exception to Building Height Regulations Resolutions Ongoing 2015 County Projects:

16. Called for Referendum to accept Garrison Bight from the State • New Wastewater Treatment Facilities 365

14‐17. Amended Solid Waste Rates and Dumping Fees

projects • New Fire Station

18. Adopted Ad Valorem tax millage rate for FY 2014‐2015 million • Canal Restoration 2014

14‐19. Repealed Ordinance 91‐33 fees at the City Marina at Garrison Bight

active • Old

In 14‐20. Defined Rest Beach, White Street Pier & AIDS Memorial as City Parks $152 in • Land Acquisition * Florida Trend, "Creating healthier communities" 4/20/2015 Source: www.knightfoundation.org/sotc/; Monroe County 2014/15 State of the County; Mayor Cates' State of City 2/18/2015; www.cityofkeywest‐fl.gov; www.monroecounty‐fl.gov

Page 7 Chamber Chowder © June 2015 Vol. 18, No. 6 Quarterly Economic Environment & Outlook The Key West Chamber of Commerce continuously monitors, compiles, and analyzes economic data; generating local economic data through surveys of its over 500 members.

www.KeyWestChamber.org Key West Business Environment vs. Florida & the U.S.

Responses from KWCC BEO conducted March 24‐April 8, 2015; NABE BCS conducted March 17‐31, 2015; UF‐BEBR CSI conducted April 1‐19, 2015* The first quarter finished strong for Key West, although some softening was felt with February seeing declines in most discretionary spending year over year. We saw a rise in port calls in January, dropping to a flat March and a decline scheduled for the second quarter months; leaving the first quarter cruise ship passengers at 3.8% higher.* Compression seen as our occupancy rate* hit 96% is also being seen in our unemployment rate* that is floating about a tenth of point higher than last season at 3.7%; compressing our advantage over the National and Florida rates that have continued to drop. Economist are continuing to watch the gas prices float and the impacts of the strengthening dollar on the Florida markets.

Spring Break Sales Key West Business Outlook As the beaches heated up, our Water Activities cooled the co‐ Key West expectations continue to rise for a positive year ahead. eds down and made them thirsty; showing 27% increase in revenues and bringing all our Restaurants and Bars off the bench, with full participation and improvements. Up

Down 12 pts to +84% 2 pts Twelve month Expectation balance to +37% ● National survey saw growth expected to be 3.1% in 2015, falling to 2.9% in 2016 First Quarter Sales balance ● Floridian's confidence in the U.S. economy declined 3.7 pts in the 1st qtr to 91.8

● With 63% of Key West businesses reporting increased revenues during the first quarter 2015, this was better than national survey results of 50% ● Floridian's Consumer Sentiment declined to 94.1 in April, but still up 0.8 points higher than January's reading

Compensation & Wages Employment levels rose at 29% of Key West businesses surveyed, while levels rose at 35% of national survey respondents. Difficulty in Up hired

finding skilled labor continues to be the most‐often‐cited challenge, 8 pts with a shortage being reported by 19% nationally; compared to 44% of to +39% 29% Key West businesses reporting difficulty in hiring. First Quarter Wages balance ● With 39% of Key West businesses reporting increasing wages during the first quarter 2015, this is less than national survey results of 45% (National results are up from 31% in January and 35% in April of 2014) ● U.S. Personal disposable income adjusted for taxes and inflation rose 6.2% compared with 3.6% in the fourth quarter ● U.S. Personal savings as a percentage of disposable personal income was 5.5% compared with 4.6% in the fourth quarter ● U.S. Consumer spending increased 1.9% compared with 4.3% in the fourth quarter ● U.S. Prices of goods and services decreased 1.5% in the first quarter, after increasing 0.1% in the fourth quarter (Excluding energy and food, prices increased 0.3% in the first quarter and 0.7% in the fourth quarter)

Macro‐Economic Impacts 62% nationally say that the strong Dollar has not had a material impact on their businesses 49% nationally say that the potential increase for short‐term interest rates by the Federal Open Market Committee (FOMC) would not have a material impact on their businesses Median CPI forecast is for a gain of less than 1% nationally for 2015, as projections drift downward amid surging Dollar and fallen oil prices Travel & Tourism Statistics

The Travel and Tourism Satellite Account (TTSA) statistics are released quarterly*

'14 The U.S. real spending on travel and tourism in 2014 increased 2.5% after increasing 3.6% in 2013; while total in U.S. gross domestic product (GDP) increased only 2.4% and 2.2% in 2014 and 2013, respectively. Prices for Tourism goods and services increased 1.9% in 2014 after increasing 0.5% in 2013. Tourism Employment trillion increased 2.4% in 2014 after increasing 2.2% in 2013; employing 7.8 million people, 5.5 million of direct tourism jobs and 2.3 million of indirect/support jobs. $6.1

Balance figures represent the percentage reporting increases minus the percentage reporting decreases ( + reflects expansion and ‐ reflects contraction, and change is from prior quarter)

Sources: NABE, Business Conditions Survey; University of Florida BEBR, Consumer Sentiment Index; City of Key West; Key West Int'l Airport; Bureau of Economic Analysis; Bureau of Labor Statistics

Page 8 Chamber Chowder © June 2015 Vol. 18, No. 6 BUSINESS AFTER HOURS | WEDNESDAY, MAY 13TH, 2015 Hosted by: Conch Town Liquor & Lounge 3340 N. Roosevelt Blvd.

Page 9 Chamber Chowder © June 2015 Vol. 18, No. 6 Cruise Ship Schedule Welcome New Members! June 2015 06/01 NO SHIPS 06/02 NO SHIPS 06/03 NO SHIPS 06/04 Majesty of the Seas 9:30am-6:00pm 06/05 Carnival Victory 7:00am-2:00pm 06/06 NO SHIPS 06/07 NO SHIPS 06/08 Carnival Freedom 10:00am-6:00pm 06/09 Ecstasy 7:30am-1:30pm 06/10 NO SHIPS 06/11 Majesty of the Seas 9:30am-6:00pm 06/12 NO SHIPS 06/13 NO SHIPS 06/14 NO SHIPS 06/15 Carnival Freedom 10:00am-6:00pm 06/16 Ecstasy 7:30am-1:30pm 06/17 NO SHIPS 06/18 Majesty of the Seas 9:30am-6:00pm 06/19 Carnival Victory 7:00am-2:00pm 06/20 NO SHIPS 06/21 NO SHIPS 06/22 NO SHIPS The Key West Chamber of Commerce welcomed new members during its 06/23 Ecstasy 7:30am-1:30pm 06/24 NO SHIPS May luncheon at the Marriott Beachside. Pictured: Richard Logan of Sands 06/25 Majesty of the Seas 9:30am-6:00pm of the Keys, Nancy Campbell of Headlines Hair Design, Membership Co- 06/26 NO SHIPS 06/27 NO SHIPS chair Joyce Benavides, Darrell Goddard of Headlines, Chamber President 06/28 NO SHIPS Nicki Will, Judge Peary Fowler and Mary Casanova of Literacy Volunteers 06/29 NO SHIPS of America and Membership Co-chair Kim Works. Other new members not 06/30 Ecstasy 7:30am-1:30pm pictured: Coco Plum Inn, Old Town Wine & Spirits and Premier Beverage.

Community Calendar Coco Plum Inn 611-615 Whitehead Street Old Town Wine and Spirits June 2015 Key West, FL 33040 1029 Truman Avenue 305-295-2955 Key West, FL 33040 6/6 39th Annual Swim Around Key www.cocopluminn.com 305-294-4123 West www.swimaroundkeywest. Contact: Keith and Lynn Glasser Contact: Mike Blatt com; 305-394-5292 Bed & Breakfast/Inns Liquor Store 6/6 VFW Fishing Tournament; 305-509-7244 Headlines Hair Designs & Nails Premier Beverage 6/8-8/14 Community Sailing Center – Summer 9801 Premier Pkwy Youth Sailing Education www. 1075 Duval Street, Duval Square C-15 Key West, FL 33040 Miramar, FL 33025 keywestsailingcenter.com; 305-896-0337 305-797-1868 6/10-14 Key West Pride 2014; www. 305-296-6373 www.headlineshairkeywest.com Contact: Bob Sexton keywestpride.org ;305-292-3223 Beverage Distributor 6/13 10K Walk and Run Tutu Relay Contact: Nancy J. Campbell and Darrell L. Goddard Sponsored by: Cara Higgins, Horan, starts at Salute;305-747-8563 Wallace & Higgins LLP 6/13 Original FKCC Swim around Key West Hair Salon [email protected]; 305-809-3562 Sands of the Keys, Inc. 6/18-21 Key West Africana Festival at Literacy Volunteers of America 86490 San Carlos Institute; cnorwood@ (LVA) – Monroe Cty. Inc. Islamorada, FL 33036 keywestafricanafestival.com 2405 No. Roosevelt Blvd., Rear 305-852-4378 6/19 Key West Gator Club Dolphin Key West, FL 33040 www.sandsofthekeys.com Derby; 305-304-1348 305-294-4352 Contact: Richard Logan 6/20 9th Annual Midsummer’s Night Contact: Mary Casanova and Copiers & Office Equipment Dream at East Martello Tower Judge Peary Fowler 5-9pm; 305-394-3804 Non-Profit

Page 10 Chamber Chowder © June 2015 Vol. 18, No. 6 presents the 27th Annual Co-sponsored by: Key West Chamber of Commerce “Showcase of Key West Businesses” Trade Show at the Key West Marriott Beachside Resort OMI

Wednesday, September 16, 2015 Open from 3:00p.m. to 5:00p.m., for the General Public, and the members only Business After Hours continuing from 5:30p.m. to 7:30p.m. The Key West Chamber of Commerce offers you an opportunity to showcase your business during the Business Trade Show, this year’s event will be held at the Key West Marriott Beachside Resort. Last year as in previous years this highly successful show was sold out, with more than 400 people attending making it a fun day for all. This year’s trade show hours will be 3:00 p.m. to 7:30 p.m. with a ½ hour break at 5:00 p.m. to prepare for the members only Business After Hours sponsored by the Key West Marriott Beachside Resort.

We encourage you to participate in this year’s trade show. As an exhibitor, you will receive maximum exposure to attending members of the business community and residents of Key West and the lower keys as you display the products and information that your business offers. We encourage you to provide giveaways as an added attraction, resulting in a greater marketing exposure for your business. Booth Sizes Available: Oversized Corner Booths, Extended Wall Booths, Standard Wall Booths and Center Room Booths. More information and a registration form will be mailed to all members in the next few weeks.

For more information or to reserve your booth contact: Kerry Baker: 305-294-2587 | [email protected] 510 Greene Street, 1st Floor | Key West, FL 33040 Don’t Miss this Exciting Opportunity to reach the Key West Visitor! he 2015-2016 Key West Chamber of Commerce Visitor Brochure and Map will be the fulfillment piece used by the Key West Chamber of Commerce to promote Key West as a premier destination to prospective visitors. The brochure and map is full color and will showcase the Tcharacter and activities that make Key West unique. The brochure allows Key West businesses the opportunity to feature information on your accommodations, attractions, restaurants, museums, shopping, entertainment and professional services to visitors and will be a valuable resource referred to over and over by visitors before and during their stay. 150,000 Copies Did You Know… Guaranteed distribution beginning September 2015 From the NOAA Study “Linking the Environment and Economy of the Florida Keys and Key West,” a question was asked to help gauge the Extremely Targeted influence of the Key West Chamber of Commerce Visitors Center with The Brochure and Map is the exclusive fulfillment piece for the the following outcome. “Almost 23% of overnight visitors to the Keys Key West Chamber of Commerce and also for all visitor and newcomer reported having used at least one of the five visitor’s Information centers inquires received via telephone and email requests from the Monroe with 47.8% of those visiting the Key West Chamber of Commerce County Tourist Development Council. Visitor Center. Resulting in visitors extending the length of their stay on The visitor brochure is distributed along the information plazas on an average of three days, this translates into overnight visitor spending the Florida Turnpike, with an expected distribution of 70,000 copies this averages of $42.6 million. Key West generates 59% of all the business in coming year, as well as handed out at numerous travel and trade shows the Florida Keys and Key West which would equate to approximately promoting Key West. $25 million more dollars spent by visitors after visiting our Visitor The brochure is available in the lobby of our official visitor Information Center when in Key West.” information center located at 510 Greene Street, 1st Floor which is Publication Specs open seven days a week, also at the Lower Keys, Marathon, Islamorada and Chamber of Commerce Visitor Centers, as well as The map/brochure is 24” wide x 18” tall, full color both sides, distributed to the passengers of the Key West Express and also to the folding to 4” x 9” to fit in envelopes and rack card holders. 150, copies shoppers at Clinton Square Market. printed and distributed annually! For more information on which spaces are available please contact Nancy D’Amato • 305-304-1026 • [email protected] Page 11 Chamber Chowder © June 2015 Vol. 18, No. 6 CHAMBER CHOWDER© 510 Greene Street ~ 1st Floor, Key West www.keywestchamber.org EXECUTIVE COMMITTEE Key West Chamber Calendar of Events

Nicki Will, President June 2015 July 2015 Lower Keys Medical Center/294-9200 Business After Hours Business After Hours Greg Sullivan, Vice President Date: Thursday, June 18th Christmas in July “Toys for Tots” Waste Management/434-9140 Time: 5:30 p.m. – 7:30 p.m. Co-Sponsored by: The Key West Hosted by: VFW Post 3911 Chamber of Commerce and Randy Moore, Treasurer Location: 2200 N. Roosevelt Blvd. Hard Rock Café Key West First State Bank/296-6231 Members Only Networking Event Date: Wednesday, July 15th Time: 5:30pm-7:30pm Sam Holland/Secretary General Membership Meeting Location: 313 Duval Street The Conch House/293-0020 Date: Wednesday, June 24th Members Only Networking Event Noon Robin Lockwood MD, Past President Speaker: Jessica Bennett, Director of General Membership Meeting Robin Lockwood, MD/296-2212 Market Research for the TDC Date: Wednesday, July 22nd Melissa Kendrick, Appointee Topics: Key West Visitor Report & Noon Illegal Vacation Rental Scams Speaker:: Representatives of Walmart Mel Fisher Maritime Museum/294-2633x24 Location: Westin Resort & Marina Topics: Walmart at Rockland Key Cara Higgins, Appointee Free Parking for the Meeting Location: Key West Marriott Beachside Horan, Wallace & Higgins, LLP/294-4585 Please RSVP to the Chamber Please RSVP to the Chamber at 305-294-2587 or email: at 305-294-2587 or email: Virginia A. Panico, Executive Vice President [email protected] [email protected] Key West Chamber of Commerce/294-2587 Key West Chamber of Commerce Presents a seminar on: “Leadership, Management, and Inspiring Others” CHAMBER STAFF Speaker: Elisa Levy Date: Wednesday, July 1st | Time: 8:30 a.m.-11:30 a.m. Location: Double Tree Grand Key Resort Virginia A. Panico Please RSVP to the Chamber at 305-294-2587 Executive Vice President Via email: [email protected] Steven Weed Director of Research Chamber Chowder Lesley Cuttler Vol. 17, No. 12 Executive Assistant Kerry Baker Membership Director/Special Events Coordinator Gladys Clarks Tourist Information Receptionist Emily Brogdon, Nancy Caruthers Office Assistants/Tourist Information Operators Virginia A. Panico Newsletter Editor Cindy Jefferson Art Director

Page 12 Chamber Chowder June 2015 Vol. 18, No. 6