Thursday, November 21, 2013

Talk about possible occupancy tax increase to help FRP . . . again?

For those with short memories, July, 2012, saw heated discussion by the Henderson County commissioners, lodge owners, and citizens about the idea of increasing the occupancy tax by one percent, and designating that increase to the Flat Rock Playhouse. In August, 2012, the county commissioners tabled the idea of increasing the tax at that time and said they would revisit the idea in six months. In February, 2013 (six months later), the Flat Rock Playhouse asked the county commissioners to drop the idea of a tax increase, opting instead to concentrate on a new "Stay & Play" partnership with the Tourism Development Authority (TDA).

Now, as part of the agreement between the county commissioners and the TDA (from the Times-News):
TDA Chairman Shannon Clarke told his board Tuesday that county leaders have agreed to grant the TDA full discretion over spending of room tax revenues — including half a percent currently funneled to the museum — in return for a capped $80,000 to $100,000 annual lease on the county-owned Visitor Center building. . .

Moreover, Clarke said [Henderson County] commissioners have agreed to allow the TDA control over spending an additional 1 percent of occupancy tax allowed by state law but not levied yet. Only commissioners can increase or decrease the occupancy tax, he said, but “they will not do it without our request.”

“Now, if we’re seeing that we’re not creating enough revenue to compete with counties around us, then we’d also make a request for them to increase it by a half or 1 percent,” Clarke said.

He suggested possible beneficiaries of extra room tax proceeds, including a wayfinding (signage) program and the Flat Rock Playhouse. In September, TDA board members rejected a proposal to renew a $25,000 “Stay and Play” program involving the purchase of Playhouse tickets, which were distributed to accommodations as lodging incentives.

On Tuesday, Clarke proposed another way for the TDA to support the Playhouse, which he said draws many visitors to the county but has lost several hundred thousand dollars in local governmental support this year. He suggested the TDA become a “season sponsor” for Playhouse productions, valued at $25,000 but subject to negotiation. . .

But board member Brenda Ramer questioned why the theater has not provided the TDA with “any kind of strategic plan, in how they’re going to fix their own issues other than to keep asking for money in different ways.”. . .

The Playhouse funding issue was tabled until the board could digest the results of a tourism study they were getting from consultant Young Strategies Inc. That study shows the Playhouse ranked seventh in “visitor attractions” among 1,350 survey respondents, behind Main Street shopping, the Blue Ridge Parkway, the Carl Sandburg Home and Chimney Rock State Park, among others.
Read it all. And more on the consultant's study is here.

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