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Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Research and Development DATE: 10/25/13 STAFF CONTACT: Jeffrey Melrose PHONE: 961-8947 A. REQUEST: Pursuant to Hawaii County Code section 2-139(a)(3)(B), Council approval is requested for a grant award of $40,000.00 to the Hawaii Tropical Flower Council (HTFC). These funds are part of the Department of Research and Development's Supplemental Funding Awards for FY 2013-2014, the underlying intent of which is to promote sustainable economic development. Selection process was in accordance with HRS 103-D per 2-139(a)3(B). Funds will be used to support strategic marketing efforts by HTFC to expose local floral and foliage producers to new markets. Their plans involve establishing an educational and marketing presence at several national flower shows to be held this fiscal year in Philadelpha, Chicago and other markets across the US. The moneys are primarily used to fund educational displays and workshops with master flower designers to teach the use of Hawaiian flowers and foliage to design professionals and flower enthusiasts. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The Hawaii Tropical Flower Council (HTFC) is a partnership of various flower and foliage sectors of the statewide flower and foliage industry. The industry has produced as much as $108,000,000 in revenue to the state with peaked in 2007, prior to the recession. Hawaii Island accounts for over 60% of the state's flower industry sales. Industry revenues fell by over 30% in the early years of the recession and provoked a collaborative effort to rebuild Hawaii's market share. In 2009, HTFC set up a five year stategic marketing plan to rebuild Hawaii's flower and foliage market by building a stronger presence in major trade shows and by continuing their partnership with the Hawaii Tourism Authority to insure that local flowers were a prominent part of tourism marketing efforts. The current request is for$40,000.00 for FY 2013-14. This represents about 10% of the total cash and in- kind contribution from the industry and others to the marketing program. Funds will be used to support educational programs at larger, national market oriented trade shows. These programs involve expert flower designers providing workshops to other designers and flower enthusiasts on how to correctly utilize Hawaii's flower and foliage resources and to create prominent displays throughout the trade show floor. Industry representatives attend these trade shows at their own expense and continue to promote and sell Hawaii's flowers to thousands of people who attend these events annually. They also use the opportunity to survey participants, buyers and others to identify market insights and preferences that help to improve farm and delivery activites back at home. A portion of the funds will also support Hawaii Visitors Bureau marketing efforts by providing decorations for Hawaiian musical presentations and giving visitors a chance to learn how to arrange and use local flowers as they are being installed and given away at the end of performances. The Council's approval of the grant will also enable the HTFC to launch a statewide effort to get other County and State funding sources to participate as they have in the past.