Tallahassee Tea Party

Leon County Tourist Development Council

Links: Press Conference & BCC comments, Don't Take the 5th 

(Proposed)

Motion & Resolution to be Approved by the Members of the

Leon County Tourist Development Council – February 17, 2009

In light of recent statements by various members of the Leon County Commission [BCC], Tallahassee City Commission, and individual members of the Leon County Tourist Development Council regarding Leon County’s tourism promotion and advertising programs and marketing plan, and the subsequently increased importance of local tourism development efforts funded through existing local-option tourism development taxes; and

In recognition of clear indications that there are efforts by some state, county and municipal officials increase and divert these taxes from their intended purposes to mitigate other revenue shortfalls, the Leon County Tourist Development Council, “LCTDC” formally adopts the following motion: 

1) The LCTDC supports the BCC effort to reduce the required number of City Commissioners that make up the LCTDC; and

2) The LCTDC is opposed to any other change other than as described in (1) above in Florida Statutes, Chapters 125.0104, the Local Option Tourist Development Tax, or to any other action by the Florida Legislature or BCC that would either expand the currently-permitted lodging-specific taxes or allow the revenues generated by those taxes to be used for purposes not currently authorized under those statutes; and

3) LCTDC is opposed to any action by the county governing bodies which administer these local option taxes that might reduce the funding of critical tourism advertising and promotional activities in order to redirect revenues to programs with less direct impact on the development and support of a strong local tourism economy; and

4) LCTDC recommends that the BCC authorize acting LCTC Director, Ken Morris to act immediately on behalf of the LCTDC to educate the Florida Legislature, local government officials, business leaders and others on the importance of maintaining the integrity of these taxes that have become even more critical to sustaining both our tourism economy and the thousands of jobs it supports; and

5) In accordance with its responsibility, the LCTDC hereby recommends to the Leon County Board of County Commissioners, “ BCC”, that all tourist development trust funds should be spent in accord with the Marketing Plan adopted ____________ and the Cultural Plan adopted ____________; and

(6) _ (to be determined ) ........_______________________________________________

FLORIDA RESTAURANT & LODGING ASSOCIATION:

Motion Approved Unanimously by the Board of Directors

Florida Restaurant & Lodging Association - January 27, 2009

In light of the recent $10 million reduction in Legislative support for the State’s tourism promotion and advertising programs, and the subsequently increased importance of local tourism development efforts funded through existing local-option tourism development and convention development taxes; and

In recognition of clear indications that there will be efforts by some state, county and municipal officials in 2009 to increase and divert these taxes from their intended purposes to mitigate other revenue shortfalls, the Board of Directors of the Florida Restaurant & Lodging Association formally adopts the following motion.

1) The Florida Restaurant & Lodging Association (FRLA) is opposed to any changes in Florida Statutes, Chapters 125.0104 (the Local Option Tourist Development Tax) and 212.0305 (the Convention Development Tax) or to any other action by the Florida Legislature that would either expand the currently-permitted lodging-specific taxes or allow the revenues generated by those taxes to be used for purposes not currently authorized under those statutes; and

2) FRLA is opposed to any action by the county governing bodies which administer these local option taxes that might reduce the funding of critical tourism advertising and promotional activities in order to redirect revenues to programs with less direct impact on the development and support of a strong local tourism economy; and

3) FRLA is committed to playing a leadership role in the newly formed Florida Bed Tax Coalition on behalf of its lodging and restaurant members; and

4) This Board authorizes the President/CEO to act immediately on behalf of our membership to educate the Florida Legislature, local government officials, business leaders and others on the importance of maintaining the integrity of these taxes that have become even more critical to sustaining both our tourism economy and the hundreds of thousands of jobs it supports; and

5) FRLA will support an aggressive effort to lobby on behalf of these issues and hereby authorizes the President/CEO and staff to develop strong public relations, research, advocacy and grassroots lobbying programs in support of these positions; and

6) FRLA will work with its membership and with its national affiliates to enlist the participation of high-profile leaders from the hospitality industry to help spotlight its position and protect the long-term integrity of these dedicated lodging taxes.

Notes from TDC meeting, January 2009

At the meeting descriped below, only the Mayor, Alan Katz and John Dailey supported raising the 5th cent tax.  The Council wants to review how the 4th cent is being spent and how reserves were depleted by the Leon County Board of County Commissioners prior to considering raising the taxes.  The Council wants to examine redirecting dollars to get a "bigger bang for the buck."   Pace

~

Listen to their comments from 2008 to 2009:

             John Dailey, Bryan Desloge, Alan Katz, Russell Daws,

                                                               Bill Proctor, Jane Sauls, Bob Rackleff

Below is the TDC's draft of notes from the January 27, 2009 meeting.  The hand written additions are mine. Following are the eight pages of notes by the TDC & my February 2 letter to the TDC.  Pace 

Date: February 2, 2009

Ken Morris, Interim Director and Russell Daws, Chairman

Leon County

Tourist Development Council

Re: TDC Meeting(s)

Dear Ken and Russell,

Thanks again for clearing up the fact that tourist funds will not pay for the general economic development portion of the new director's salary and for making certain that the minutes of the January 24 meeting are accurate. I suggest circulating proposed meeting minutes prior to your next meeting so council members may review them in advance. Members may recall important matters that were not included that should be included.  What’s important to some folks is not important to others.

After hearing Commissioner Dailey's comments at the Leon County Board of County Commission, “BCC” meeting Thursday and his radio comments prior to the BCC meeting, it is clear that the TDC must clarify its message and advice to the BCC. The TDC asked Commissioner Dailey to convey its specific concerns about the way the BCC has directed spending of the 4th cent as well as its expenditures of TDC reserves.  Concerns about the BCC spending funds for COCA, $300,000 for Goodwood and depleting reserves was mentioned on by multiple members of the Council.

Three additional agenda items were requested: (1) Mickey Brady wanted to discuss the proposed 5^th cent. (2) Sam wanted to discuss the change in the director responsibility with regards to the economic development and (3) Chairman Daws wanted to discuss reviewing expenditures from the Tourist Development Trust Fund, TDTF [Reserves].  His request related specifically to TDC responsibility to review all expenditures of trust fund reserves including those directed by the BCC such as the $300,000 payment to Goodwood.

After Chairman Daws brought up the subject of reviewing expenditures from TDTF reserves, there were important discussions between Mayor Marks, Commissioner Katz and Commissioner Dailey that should become a part of the meeting minutes.  It was explained to the Mayor and Commissioner Katz that over two million in TDTF reserves had been expended by the BCC including $300,000 to

.  Mayor Marks asked Commissioner Dailey, “Was it a loan or a grant?”  Dailey responded that the BCC approved the grant. [Later in the meeting, after Katz and Marks left, Dailey offered the possibility that the LDTF might be reimbursed for the Goodwood $300,000 BCC grant.  After the meeting, I congratulated Mr. Dailey on his promise to try to get Goodwood funds reimbursed and for payment by the general fund of $10,000 to $20,000 to hire a consultant required by the BCC.]  I have already mentioned the comment I made during the meeting regarding general economic development expenses being paid from county general revenue.

After discussion, Katz & Marks acknowledged understanding that reserves were depleted and that Chairman Daws’ motion was to review all expenditures from the TDTF, Katz moved and Dailey seconded to add the three additional agenda items, including BCC expenditures from reserves such as COCA, performing arts center and Goodwood..  In his presentation to the BCC and on the radio that day BCC Dailey focused on reviewing the 1^st thru the 4^th cent generally. He emphasized to fellow BCC’s the need to evaluate “all” spending on a regular basis.  As shown by comments of the Council, it has very specific concerns about the 4^th cent, COCA and Goodwood type expenditures that do not regenerate bed taxes.   

At the BCC meeting, it is clear that Commissioner Dailey did not send the clear message intended by the TDC. The message was clear to me: (1) only three members supported raising the 5^th cent. They were all elected officials (2) all expenditures from TDTF reserves including the 4^th cent and specifically the payments from reserves to Goodwood, the performing arts center and to COCA must be reviewed by the TDC.  The review should not just confirm compliance with state law.  The review should evaluate if the expenditures were most effectively bringing visitors to

.  The review should assess if the 4^th cent, COCA and Goodwood dollars could be spent where “we get more bang for the buck.”

Discussion throughout the meeting confirms the above clear messages and other important matters:

(1) John Dailey … An outside consultant costing $10,000 to $20,000 will come from general revenue, outside of TDC funding … Evaluation costs should not come out of the TDC …May be able to get the $300,000 Goodwood payment reimbursed to the TDTF … Favors raising the 5^th cent …The message is we need to revisit the total allocation and the 4^th cent … I understand industry concerns …

Take the performing arts center and COCA off the table.  What if we put the 5^th cent into promotion and marketing? …I strongly support bringing marketing and advertising back …

(2) Chucha Barber … Not one moment of dialogue has taken place between BCC and TDC since submitting the strategic plan …At the workshop it was clear the BCC did not understand the relationship between the TACVB and TDC … Maybe the TDC should have a dialogue with the BCC before an outside person is invited in … There’s no business plan for the performing arts center … It’s been a long time since anyone has seen a cultural plan … Bed taxes are spent for non regenerating expenditures so the whole mix of how they are spent must be reevaluated … I want the whole thing revisited … I want a PAC, but not sure this is the time to be adding …

(3) Alan Katz … We need to consider redirecting the 4^th cent … I think we need to seriously look at the decision made by the county on the performing arts center … Favors raising the 5^th cent, it will not discourage people from staying in

…

(4) Mickey Brady … against raising the 5^th cent … we just can’t keep loading on our guests … if we could redirect some of that 4^th cent until times get better … it’s not a convenient time to raise the tax … I think its wrong …

(5) Michelle Wilson … guests have become more savvy and package oriented … we are feeling the crunch …

(6) Russell Daws… I don’t believe all the money for the bed tax is getting us the biggest bang for our buck … We have an obligation to money in destination marketing and make sure we get bang for the buck … We need to do the best we can with the taxes we have an I don’t think we are there yet … We need reports from COCA, the PAC and Goodwood about how money was spent …

(7) Mayor Marks ... Favors raising the 5^th cent … Was the $300,000 payment to Goodwood a loan or a grant? … How was that money used? …

(8) Sam Patel … Instead of raising the 5^th cent we need to maximize what we have now … We should maximize our four pennies before raising the 5^th …

(9) Georgia Ackerman … What will be determined at the Thursday, BCC meeting? …

I suggest that at its next meeting, the Council prepare written advice to be submitted to the BCC.  This letter will provide notice that audio or video recordings may be made at future TDC meetings. This letter and draft notes taken by the TDC are featured at www.taxteaparty.com/tdc     or      www.taxteaparty.com/bedtax

Sincerely,

Pace Allen

Pace Allen, Partner, Paden Properties, L.L.C., www.paden.info

Professional Green Property Management

Attorney, www.paceallen.us, Certified Public Accountant

former Chairman, Tallahassee Area Convention & Visitors Bureau

Mailing: 1700 North Monroe Street, Suite 11-193,

Telephone: 850.556.0709

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