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June 2, 2009 PUBLIC HEARING minutes
PUBLIC HEARING – June 2nd 2009 – minutes
Chairman Jim Kichak called the Public Hearing to order on Tuesday the 2nd of June 2009 in the Mercer Community Building.
Roll Call: Kim Kichak, Jim Lambert, Jeff Stemberg, Bonnie Banaszak, Toni Sendra, Opal Roberts and Atty Schellgell.
Chairman Kichak asked for comments on the proposed Room Tax Ordinance.
Shari Younger and John Sendra quoted statistics from the Wisconsin Department of Tourism about the increase in spending by tourists in 2008. Younger discussed the handout on the 2010 Mercer Area Proposed Marketing Plan using the monies from the proposed room tax.
Kathy Weinkoff, Maryann Brown, John Stratti, and Richard Thiede stated the economy, the cost of gas, and the decrease in reservations in our area as some of the objections by various business owners who are opposed to the room tax. Brown stated that if you have a rental your insurance costs are at least tripled over regular homeowner insurance. Some of the numbers quoted, by those in favor of the tax, were objected to as being unrealistic and not a true representation of what might actually be collected by this tax.
Lisa Heberling, a member of the Mercer Chamber Board of Directors, explained that the room tax will not be paid by the business owners. It will be collected like the State and County sales tax from the people using the lodgings. She also gave an explanation as to why the state created the ability for communities to establish a room tax.
Audrey Hart, Bob Karabetsos, and others were not opposed to the tax but thought that 4.5% was too much of an increase in lodging charges at one time
There was a question about businesses that are not charged the tax, because they live out of the township, belonging to and benefiting from the work of the Chamber. Vic Ouimette explained that other chambers with this situation usually charge the outside members a fee equivalent to what they would have paid in room tax.
Ted Heberling commented that without lodgings there would be no tourists and without advertising for these lodgings there will be no tourists.
Mike O’Leary asked if the 75% to be used by the chamber will be used for promoting just lodgings or will it include other businesses. Lisa Heberling stated that by state statute it can only be used for the advertising of “overnight” stays.
Richard Thiede asked how this would be enforced. He also explained the amount of paper work involved in reporting and paying the tax. How much of an increase in occupancy could we expect if everything works out? Several people said they do not even have half-year occupancy. Sometimes it is only for seven or eight weeks in the year. In the winter, it might be only three weeks if the weather conditions are not favorable.
Scott Reinhard, president of the Turtle Flambeau Flowage/Trude Lake Assn., said the 4.5% paid in room tax would be money not spent at other businesses. Wayne Reibe stated the Flowage needs to be advertised more extensively and this money would be used for that purpose.
Tom McMahon said he had attended the Milwaukee sports show this past spring and the objections he had heard about coming to the Mercer area was the distance from Milwaukee and the cost of gas. The cost of overhead and licenses keeps increasing so the profit margin decreases. The room tax would prevent some owners from raising the rentals to cover these cost increases. The people who are operating illegal rooming houses will not be paying this tax. Wendy Theide said it would help if there was some way to get the illegal renters on board. This point was later reiterated by Jack Baxter. There is no way he would be able to raise his rates by 4.5% at one time, so how can tourists be expected to pay this amount.
Gary Theisen stated he is a supporter of the Mercer community. He has heard some excellent points tonight. There is a need for greater collaboration in developing a marketing strategy that benefits everyone. The proponents say the Chamber needs to have a substantial increase in the funds sufficient to provide evidence that the funds are working. Resort owners say the increase of the magnitude proposed would be difficult. We are talking about the possibility of quadrupling the amount of monies available to the chamber for publicity purposes if this tax were imposed at 4.5%. How much would be the target number for advertising for next year? If there was an agreement with the town for a phased in approach with the target amount to be offset initially by the town so that, as the percentage increased from the tax, the percentage contributed by the town would decrease.
Vic Ouimette said this is a lot more than just the room tax. We have more that binds us together than drives us apart. We all depend on the economic health of this area for our well-being. Even those without businesses are tied to the economic health of the community. For most of us our homes are our biggest single asset. The value of this asset is tied to the economic health of this community, which means all the community. Why aren’t we working together for the health of the community? The room tax will provide the dollars to promote our area. People go where they are asked to go. Communities all around us are spending room tax dollars to ask people to stay in their area. The town board works to make Mercer a better place to live, work and play. By increasing tourism the board will be helping businesses thrive, increase employment and property values will remain stable or increase. The town board has a dual responsibility. One is to represent and the other is to lead. When you have competing interests, as we have here tonight, you have to weigh those interests in the context of what is best for the entire community. Enacting the room tax to help promote the community is an act of leadership.
Wayne Reibe stated he has a petition with over 90 signatures supporting the room tax.
Denna Byrnes said she lives in a residential area and there are four rooming houses in her area and if she has to deal with them then they should have to pay the room tax.
Chairman Kichak suggested a committee be formed consisting of two members each of the town board, the Flowage Assn., the Mercer Chamber, residents-at-large and resort owners not on the Flowage to draft an ordinance to present to the town board. This cannot be done with an audience this large. This committee should be appointed within the next two weeks.
Lambert stated he is not totally against the room tax but that the Flowage area businesses and other resorts feel left out of the room tax question. By forming this committee all sides will have equal input.
Motion made by Lambert, seconded by Stenberg, to adjourn this Public Hearing at 8:10 pm. Carried
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