Jackson County Tourism Development Authority
Tourism Capital Project Fund
Fund Purpose and Background
The Tourism Capital Project Fund's (TCPF) purpose is to provide leveraged investment in tourism projects that will increase visitation and attendant spending and overall economic impact for Jackson County. The TCPF offers a level of financial support to create sustainable tourism development activities at the local level that maintain and/or create jobs, attract tourists (visitors originating from outside of the County), and enhance the visit experience.
The Jackson County Tourism Development Authority is funded by a 6% room occupancy tax collected from guests of Jackson County accommodations. No property or sales taxes are used to fund the activities of the Jackson County Tourism Development Authority. Expenditures for capital projects must be approved by the Jackson County Tourism Development Authority Board of Directors (JCTDA) and then by the Jackson County Board of Commissioners (BOC).
The authorization to expend up to 1/3 of JCTDA funds on tourism capital projects comes from the N.C. General Assembly Session 2011, Session Law 2011-170 House Bill 96 and the relevant statue follows: SECTION 2.2.(d) Distribution and Use of Tax Revenue. — Jackson County shall, on a quarterly basis, remit the net proceeds of the occupancy tax levied under this Part to the Jackson County Tourism Development Authority. The Authority shall use at least two-thirds of the funds remitted to it under this subsection to promote travel and tourism in Jackson County and shall use the remainder for tourism-related expenditures.
In this application, capital projects are defined as projects that are:
New construction, expansion, renovation, or a replacement project for an existing facility or facilities. The project must have a total cost of at least $25,000 over the life of the project and a useful life of at least 10 years.
OR
A purchase of major equipment (assets) costing $25,000 or more with a useful life of at least 10 years.
OR
A major maintenance or rehabilitation project for existing facilities with a cost of $25,000 or more and a useful life of at least 10 years.
Capital projects must be located within Jackson County and serve to establish new or refurbish existing facilities or infrastructure that are publicly owned and operated, or owned and operated by non-profit organizations and open to the public, and which generate overnight stays within the County at occupancy tax-paying lodging properties.
Application Schedule
Please refer to this website for the application schedule: https://www.discoverjacksonnc.com/tda-docs/tcpf/
Application Deadline and Information
Completed capital project applications must be received by 5 p.m. on the due dates listed with the aforementioned schedule.
Applications failing to meet the deadline will not be considered until the next funding cycle. DEADLINES ARE STRICTLY ENFORCED. There are no exceptions, regardless of the proposed project.
All application submittals will be reviewed by the JCTDA to determine if the application package is complete, basic eligibility has been met, and applicants conform to requirements under North Carolina law.
At the applicable JCTDA meeting, the JCTDA will evaluate each capital project application to determine what economic value, if any, the project provides to Jackson County. Only projects having a substantial, lasting economic impact for Jackson County by promoting tourism and creating overnight stays will receive further consideration, as explained in the Evaluation Criteria outlined herein.
There are no guarantees that any applicants will be awarded funding. Even though a project may qualify, limited funds may not allow all projects to receive assistance. Decisions regarding the award of funds are at the sole discretion of JCTDA and the BOC.
NOTE: All materials/documentation submitted with the funding application will become a matter of public record, open to inspection by any citizen of the State of North Carolina subject to applicable economic development exemptions in NC G.S. § 132.
The JCTDA and Jackson County bear no burden of the applicant's cost to prepare a Tourism Capital Projects Funding application or related materials regardless of whether the application is approved for funding.
Presentations
Presentations are optional and will only be given on the JCTDA and BOC meeting dates corresponding to the applicable funding cycle. The presentations may be followed by a question-and-answer period, and it is advised that an applicant representative be available for both meetings.
Presentation appointments may be scheduled with the JCTDA during the weeks following the Application Submittal Deadline Date. Appointments will be scheduled in the order of the date and time the application was received.
Funding
Tourism Capital Project Funding must not be the sole source of revenue for a capital project. The TCPF is intended to assist an organization with a portion of capital expenditures. TCPF funds will not exceed fifty percent (50%) of the total project budget.
• Funding applications for capital projects will be reviewed by JCTDA staff, who will present the applications to the JCTDA Board of Directors. The funding recommendations of the JCTDA Board, if approved, will go to the Jackson County Board of Commissioners, who will make the final funding determination.
• The JCTDA at its sole discretion may award amounts that are higher or lower than the amounts requested or recommended.
• The JCTDA is not required to expend all the available TCPF funds in a given year or application cycle.
• Representatives of the organization applying for capital projects funding may be invited to make a presentation to the JCTDA and/or the Board of County Commissioners.
• If recommended for funding, the applicant will be notified by the JCTDA. The appropriate organization official will be required to sign a Tourism Capital Project Funding Agreement.
• Applicant projects should generally be beyond the conceptual phase and be as close to shovel-ready as feasible, with appropriate permits, agreements, and due diligence in place. An applicant may not use TCPF funds for feasibility studies, to conduct due diligence, etc., but funds may be used for physical planning work such as engineering and design.
• The JCTDA cannot make binding multi-year commitments to a project but will consider giving funding priority to an applicant who requests funding covering multiple years for a single project.
Project Readiness
Projects must be shovel-ready at the time of application. The applicant must submit a completed Project Readiness Certification (Section A of the application form) with supporting documentation demonstrating site control, design status, permitting status, committed match funds, and confirmed utility and infrastructure capacity. The JCTDA will not recommend funding for a project that cannot document that the water, sewer, power, and site access required to operate the completed project either exist or are covered by a funded, scheduled plan to provide them. TCPF funds may be used for engineering and design work but may not be used to establish the basic site readiness that should precede an award.
Funding Eligibility
ELIGIBLE CAPITAL PROJECTS:
Eligible capital projects for Tourism Capital Project Funding include but are not limited to construction, extension, expansion, remodeling, repair and/or improvements, and major equipment (capital assets) for convention centers, meeting venues, sports facilities, coliseums, auditoriums, museums, or similar institutions and attractions that are publicly owned and operated, or owned and operated by non-profit organizations and open to the public, in accordance with the Jackson County Tourism Development Strategic Plan and North Carolina statutes regarding the allowable expenditure of occupancy tax funds.
General Requirements:
• Funds may be used to provide for the acquisition, design, construction, extension, remodeling, repair and/or improvement of the applicable project.
• Funds may not be used for marketing purposes.
• Funds may not be used to fund feasibility studies, administrative fees, or salaries.
• Funds require a match for the amount requested. The match must be a minimum one (1) to one (1) match. Documentation showing proof of matching funds is required. Applications not showing a match shall be ineligible for review.
• Bonus points may be allocated at the discretion of the JCTDA if a greater than one (1) to one (1) match is provided.
• Applicants are responsible for securing all appropriate and necessary State, Federal, Tribal, and local permits and/or individual or landowner consents required to execute the project.
• Mitigation activities performed as a condition or precondition for obtaining a Federal permit, license, or funding by other Federal programs are not eligible for these funds.
• No more than one project application may be submitted by any one applicant per application cycle.
• The actual number and size of awards will depend upon available funding as well as the number and quality of applications.
INELIGIBLE USES
The following are examples of how Tourism Capital Project Funding may not be used. (This list is not exhaustive but represents the general scope of ineligible uses. The JCTDA reserves the right to amend the below list at any time and will make the final determination as to eligible uses.)
1. Annual operating expenditures.
2. Legal, medical, accounting, auditing, feasibility studies, fundraising, or similar consulting services.
3. Salaries or supplements to salaries for existing or future staff, or employment of personnel not directly related to the project.
4. Purchasing tangible personal property including but not limited to office furnishings or other equipment valued at less than $25,000, permanent collections, or individual pieces of art.
5. Interest reduction of deficits or loans.
6. Expenses incurred or obligated prior to or after the funding project period.
7. Prize money, scholarships, awards, plaques, t-shirts and other promotional material, uniforms, or certificates.
8. Travel expenses.
9. Projects which are restricted to private or exclusive participation.
10. Entertainment, including food and beverage.
11. Expenses to fund other events not recommended or approved by Jackson County.
In the event an organization is found to have used the awarded funds for an ineligible use, the organization must repay the funds to JCTDA plus five percent (5%) annual interest. The Funding Agreement will further outline the accounting requirements for the funds.
Financial Guidelines
Applicants must provide at least 50% match of the budget for the total cost of an approved capital project. Examples of in-kind match are donated goods and services, land, facilities, etc. Volunteer time does not count toward the match for a capital project. Value estimates must be verifiable. Applicant must submit proof of other sources of funding which, when combined, provide total funding for the full project. The applicant must meet further requirements as outlined in the Funding Agreement and as deemed necessary by the JCTDA and the County Finance Officer.
Funds will be disbursed only after the Funding Agreement has been fully executed by all parties, and all other requirements set forth in this document have been satisfied. The recipient of the funds is to return the signed agreement to JCTDA within thirty (30) calendar days of the date the BOC approves the funding. Failure to do so within this time will be deemed as a withdrawal from the funding process, and no further funding will be awarded to the Organization without reapplication. Upon execution of the Funding Agreement by all parties, a Funding Commitment Letter will be issued to the Organization Officer official via the e-mail contact address provided in the application. The Funding Commitment Letter will be provided within ten (10) business days following the final approval to fund the capital project.
Any exceptions to the agreement language must be submitted with the application. The County is under no obligation to honor requests for exceptions, and an award of funds may be rejected if the exception is not, in the sole opinion of the JCTDA or the County, in its best interests.
The JCTDA may require that specific project milestones be met before any or all funding is awarded to an applicant, and funding may be provided in phases. Funds must be expended only upon the completion of items authorized and in accordance with the information provided in the funding application. Changes to the project, project timeline, or budget submitted with the application after the Funding Agreement has been executed will require a formal modification to the agreement by the JCTDA and BOC.
NOTE: Tourism Capital Project Funding may not be used for activities that reimburse the organization for expenditures incurred prior to the notification of approval of the funding request by the BOC. All applicants should wait until final approval and notification of award by the JCTDA. PAYMENT WILL ONLY BE MADE TO THE ORGANIZATION RECEIVING THE FUNDS. NO PAYMENTS WILL BE MADE DIRECTLY TO VENDORS OR INDIVIDUALS.
Match Verification
The applicant must document that the full match is committed and available, not merely anticipated. Acceptable proof is a resolution of the applicant's governing board committing the match to this Project, supported by source-appropriate documentation: a current bank statement or audited financial statement for cash; a firm lender commitment letter for financed funds; executed award letters for other grants; a recent appraisal or tax-assessed value and proof of ownership for donated land or property; and a written third-party valuation plus a donor commitment letter for donated goods or services. Thirty percent of the match may be from in-kind (volunteer labor, etc.) Unfunded pledges may count toward no more than 25% of the required match and must be supported by signed pledge agreements with payment schedules. The JCTDA will not disburse funds until the full match is documented as secured.
Disbursement Method
TCPF funds are disbursed on a reimbursement basis as the default. For every dollar of TCPF funds drawn, the Recipient must show at least an equal dollar of committed match already expended on eligible Project costs, with receipts or paid invoices. The JCTDA may, at its sole discretion, approve a milestone advance only where the Recipient demonstrates that (1) it cannot reasonably finance the eligible costs and await reimbursement, and (2) it has the organizational stability, financial controls, and grant-administration track record to be entrusted with public funds in advance. Government entities and established institutions with adequate reserves or bonding capacity are not eligible for advances. An advance, if approved, is limited to a specific documented obligation such as a vendor deposit or contract draw, is held in a separate restricted account, and must be expended on eligible costs within thirty (30) days or returned.
Fixed Award and Final Reconciliation
The TCPF award is a fixed maximum. The Recipient is responsible for all Project costs exceeding the budget, and the award will not increase to cover overruns. Final disbursement shall be the lesser of (a) the awarded amount or (b) fifty percent (50%) of the actual eligible Project cost. If actual eligible costs are lower than budgeted, the award is reduced accordingly, and the Recipient must maintain at least a one-to-one (1:1) match against actual eligible costs at completion.
Project Timeline and Funding Deadlines
The following terms will be included in the Funding Agreement. They establish when a funded project must begin and finish, how an honest delay is handled, and what happens to an award that is not used.
Commencement Deadline. The Recipient shall commence construction (or, for an equipment purchase, place a binding purchase order) within twelve (12) months of the date all parties execute the Funding Agreement. If the Recipient fails to commence by this deadline and has not received an approved extension, the award is automatically rescinded, the Agreement terminates, and the committed funds return to the Tourism Capital Project Fund. The Recipient may reapply in a future funding cycle.
Completion Deadline. The Recipient shall achieve substantial completion of the Project no later than the date stated in the Funding Agreement, which will be 24 months from execution. Substantial completion means the Project is sufficiently complete to be used for its intended purpose.
Extension. The Recipient may request one (1) written extension of the Commencement or Completion Deadline. The request must be received by JCTDA before the applicable deadline and must document the cause of delay, for example permitting delays, weather, supply chain disruption, or contractor default. The JCTDA may grant an extension of up to twelve (12) months for good cause, subject to approval. Extensions are not guaranteed.
Material Change or Suspension. The Recipient shall notify JCTDA in writing within thirty (30) days of any event that materially affects the Project's scope, budget, timeline, site control, or matching funds, or that suspends or halts work. Upon such notice, or upon otherwise learning of such an event, the JCTDA may suspend further disbursement, require a corrective action plan, modify the Agreement, or terminate the award and require the return of any funds not yet expended on completed, eligible work.
Award Lapse. A commitment of TCPF funds expires if the Recipient does not execute the Funding Agreement within thirty (60) days of BOC approval, if construction does not commence by the Commencement Deadline, or if the Project is abandoned. Expired or rescinded commitments return to the Tourism Capital Project Fund and become available for future funding cycles.
Asset Protection and Accountability
Because TCPF awards are public occupancy-tax funds invested in long-lived assets, the following terms will be included in the Funding Agreement.
Continued Use. The Recipient shall maintain the funded Project in active public use consistent with the Funding Agreement and applicable North Carolina occupancy-tax law for the Project's useful life as stated in the application, and in no event fewer than ten (10) years from substantial completion (the “Use Period”). If, during the Use Period, the Project or any TCPF-funded asset is sold, transferred, encumbered, demolished, or converted to private, exclusive, or non-tourism use without the prior written consent of the JCTDA, the Recipient shall repay a pro-rata share of the TCPF funds based on the remaining portion of the Use Period, plus five percent (5%) annual interest.
Insurance. The Recipient shall maintain, and provide proof of, builder's risk and commercial general liability insurance during construction, and property insurance on the funded asset through the Use Period, in amounts reasonable for the Project. Where appropriate, the Recipient shall name Jackson County as an additional insured or certificate holder. In the event of a covered loss, insurance proceeds shall be applied first to restoring the Project.
Records and Audit. The Recipient shall keep complete financial and project records for at least five (5) years following substantial completion. Upon reasonable notice, the JCTDA, the County, or their designees may inspect the Project site and audit the Recipient's records pertaining to the use of TCPF and matching funds. The Recipient shall cooperate with any such inspection or audit.
Procurement and Arm's-Length Dealing. The Recipient shall procure goods and services for the Project through a competitive process, or shall document that costs reflect fair-market, arm's-length pricing. Related-party transactions (for example, work performed by a board member's firm, or property purchased from an affiliated party) must be disclosed in the application and approved in advance by the JCTDA. Funds spent on undisclosed related-party transactions are subject to repayment with five percent (5%) annual interest.
Evaluation Criteria
Applications will be reviewed to determine how they meet the following criteria:
• Return on Investment of JCTDA Funds
• Generator of Jackson County Room Nights in Occupancy Tax-Paying Properties
• Generator of Economic Impact for Jackson County
• Frequency of Use
• Applicant Contribution or Match
• Useful Life of Project
• Applicant's Commitment to Jackson County TDA and its Strategic Plan
• Soundness of the Proposed Project
• Quality and Uniqueness of Proposed Project
• Stability, Organization, and Management Capacity
• Readiness to Contribute as an Asset
If Tourism Capital Project Funding becomes inadequate to fund all or part of a Tourism Capital Project Funding Agreement, the JCTDA reserves the right to reduce funding for a project accordingly.
Projects not approved by the JCTDA:
If the JCTDA does not recommend approval of a project's funding, the applicant may re-apply in future application cycles. It is recommended such applicants incorporate JCTDA recommendations for changes. Following re-application, the applicant may be required to meet with staff for review prior to a follow-up presentation to the JCTDA.
Scoring Rubric for Applications
1. Up to 20 points – Tourism Promotion Impact – complements the JCTDA strategic destination plan and mission of the JCTDA. Provide details of anticipated economic impact and other key performance measures.
2. Up to 20 points – Room Nights – the project should attract visitors from more than 90 miles away from Jackson County and possess the ability to generate overnight stays in occupancy tax-producing accommodations. Applicants should be detailed on how their project will be able to generate room nights. Projects that demonstrate the ability to generate off- and shoulder season visitation and revenue may receive more favorable consideration.
3. Up to 15 points – Scale/Capacity to Attract Visitors – projects should be a motivator of overnight travel to Jackson County. The primary goal of the project should be to generate a distinct visit. The project should be a motivator of visitation and not a satisfier. Motivator of visitation = a key reason to take a trip to Jackson County; satisfier of travel = something to do once a visitor is already here or that creates greater satisfaction with their visit.
4. Up to 10 points – Benefit to the Destination – the project should:
a) Provide value to Jackson County as an economic impact generator.
b) Be an enhancement to the overall landscape and complement Jackson County's destination brand.
c) Enhance the visitor experience while also benefitting resident quality of life.
d) Exemplify Jackson County's heritage.
e) Add to beautification efforts in the county.
f) Enhance the reach of potential visitors to the destination.
g) Instill local pride that inspires locals as tourism ambassadors.
5. Up to 5 points – Enhance Visitor Experience – provides an exceptional experience that is one-of-a-kind, authentic to Jackson County, memorable, and marketable.
6. Up to 5 points – Program Components – projects have clearly defined timeline, business model, partners, purpose, and sustainability.
7. Up to 5 points – Quality of Research – applicant can demonstrate data and supporting information that support the project.
8. Up to 5 points – Comprehensive Marketing Approach – projects that require marketing to generate visitation should have a clear marketing strategy including timeline, demographics, public relations plan, online and/or social media presence, direct mail, cross-marketing campaigns, etc. Projects that rank highly will have a strategic marketing campaign with out-of-market components.
9. Up to 5 points – Suitable Target Market – the plan should pinpoint a clear target market that would attract visitors to Jackson County for a specific reason.
10. Up to 5 points – Evidence of Partnership – applicants must demonstrate that they have solid partnerships to make the project a success. Suitable evidence may be letters of support, documented donations, final reports, board lists, etc.
11. Up to 5 points – Organizational Structure/Management Capability – the request must exemplify a sustainable organization with a strong management structure.
Ethical and Legal Considerations
As an occupancy tax-funded governmental unit charged with making recommendations to the Board of Commissioners regarding the use and management of occupancy tax dollars, the JCTDA is subject to a number of North Carolina laws governing public entities that do not generally pertain to the private business sector. North Carolina public records laws, applicable ethics laws, and procurement policies are key to the ethical and legal conduct of JCTDA business.
The JCTDA is comprised, by ordinance, of representatives from the tourism sector. The expertise and experience of those stewards helps ensure a well-functioning Destination Marketing Organization. Similarly, the JCTDA is interested in drawing upon the experience, expertise, and interest of the tourism community as it evaluates the merits of applications for funding to foster tourism in Jackson County. At the same time, the JCTDA is also committed to complying with State law and eliminating conflicts of interest related to the selection process. Steps will be taken to address these potential conflicts:
• All JCTDA Board members will follow applicable North Carolina laws. Particular attention will be given to communications outside of public, posted meetings; retention and accessibility of public records; County procurement policies; and identification of potential conflict of interest situations.
• Membership will include representatives of organizations not directly dependent upon tourism.
• Members of the JCTDA Board will be cautioned to disclose any potential conflicts of interest or relationships with organizations submitting applications prior to the initiation of the selection process or as soon as they become aware of a potential conflict of interest.
• Questions regarding potential conflicts will be submitted to the JCTDA for review prior to selection meetings.
• The JCTDA Board members will utilize the Evaluation Criteria for its review of all submitted applications.
Reporting Requirements
Project Status Reports: Regular reports must be submitted by the recipient of funding to the JCTDA to provide information on the status of the capital project.
• These reports are due at least every six months following execution of the Project Agreement; more frequent reports may be required and noted in the funding agreement.
• The report should contain a brief narrative summary providing updated information on the capital project, including financial status report for the project, planning, and construction-related activities.
• Each Project Status Report shall compare actual progress against the milestone schedule submitted with the application and explain any milestone that is delayed by more than sixty (60) days.
Construction Completion Report: Within forty-five (45) days of the completion of the funded capital project, the recipient must summarize its efforts by providing the following information:
• A brief narrative summary of the successful completion of the project.
• An evaluation of the economic impact the capital project has initially had upon Jackson County.
• A financial statement listing all the funding received and expenses paid during the development and completion of the project that clearly defines how and where the JCTDA funds were used. Expenses should be paid by a trackable method and receipts for all expenditures using grant funding must be provided promptly upon request.
• Photographs and/or video of the project and any related events, including images of the construction taken during the development of the project.
• Copies of flyers, ads, brochures, or other marketing efforts utilized to attract overnight visitors. This may include a media plan used to achieve this objective.
• A summary of any events that have been held since completion of the project, include local businesses utilized as part of the events.
• Final documented or, if unable to provide actual numbers, estimated number of event participants.
• Room Night Certification Form (Exhibit A) — the funded organization must make every effort to obtain the number of overnight stays in Jackson County overnight accommodations that housed those attending events at the project (if applicable). This means that for events requiring registration, the recipient should make available a list of Jackson County lodging to registrants and encourage overnight stays. For events that do not require registration, information should be provided as part of the event promotion or communication to attendees to encourage an overnight stay. After the event, the funding recipient will be required to request that the lodging property provide information regarding the number of individuals staying at the property as a result of the event.
NOTE: IF THE PROJECT RESULTS IN NO OR FEW MEASURABLE OVERNIGHT STAYS, THE RECIPIENT MUST DOCUMENT ITS EFFORTS TO PROMOTE OVERNIGHT STAYS IN JACKSON COUNTY OCCUPANCY TAX-PAYING PROPERTIES.
Recipients of JCTDA grant funding will be required to acknowledge funding support from the JCTDA at the project itself (such as in signage or plaques) and in announcements, press releases, and other communication (printed or electronic) announcing the project's start and opening. The JCTDA will review and approve any communication in advance of distribution or publication.