Boyd Says Not All County Hotel/Motel Funds Should Go To The CVB; CVB Board Wants To Keep All Tax Proceeds

  • Tuesday, June 13, 2017

County Commissioner Tim Boyd said he plans to push forward with a resolution to use some of the county hotel/motel tax proceeds for tourism-related projects instead of sending the projected $8.2 million all to the Chattanooga Visitors Bureau.

He said, "The county (and/or CVB) should set aside 25 percent of the county portion of the hotel/motel tax for debt service for construction and/or maintenance of tourist-related venues and infrastructure."

One project that has been on the table is constructing an athletic complex at the I-24 exit near Howard High School. It is projected to cost about $10 million. Proponents say the complex would include a football field that could be used for Howard and other high schools. It would have an Olympic-style soccer complex that might be the new home for the CFC teams. There would also be a top-rated track and field layout as well as baseball fields. 

Keith Sanford, CVB treasurer, said the bureau supports a new athletic complex near Howard. He added, "However, to divert revenue from the CVB to support this project, which would have much lower returns than the current spending returns, is not the way to go.

"It would ultimately cut general sales taxes for the schools with lower tourism revenue. Commissioner Boyd needs to find another source of funds for the stadium."

Mr. Sanford, who is the Tennessee Aquarium president, added, "I and others on the board truly support this project for a track and field complex for our city that will bring statewide and regional events to our county. As board chair of the Lookout Mountain Conservancy, I truly see the needs of Howard and support this.  I also understand  the balance of what we need to fund needed education infrastructure with the reluctance of the County Commission to raise taxes to fund these things."

He also said, "Sports marketing support is good, but there is no desire or thinking that tourism revenue would be gained by support to divert funding to increased athletic facilities other than the current budget."

He said Greenville, S.C., and Asheville, N.C., are gunning for conventions and events that are now coming to Chattanooga, and he said Chattanooga cannot let up on its marketing efforts. 

Mr. Sanford said the CVB board met Monday and there was "support for current trends and needed hotel/motel taxes to support current marketing and sales support plans. There was no support for diverting funds for anything other than current spending."

Commissioner Boyd said CVB officials "should determine what CVB’s budget should be to maintain the momentum of tourism. CVB should operate against a defined budget (zero-based budgeting), not anticipated hotel/motel revenue."

Commissioner Boyd is also calling for restructuring the CVB board. He said there should be a seven-member executive committee selected from the board. He said the board should be trimmed to 15 members consisting of eight permanent seats with each board member limited to two consecutive three-year terms. Representatives of permanent seats would have to rotate off after a maximum of two terms.

He said the slots on the board would include the CVB president, Rock City, Ruby Falls, the Aquarium, the chairman of the County Commission, the county mayor, the Chattanooga mayor, CARTA, the Chattanooga Hospitality Association, the CSO, Outdoor Chattanooga, the Sports and Events Committee, Friends of the Festival, the Convention Center and the Chamber of Commerce.

Commissioner Boyd said the city of Chattanooga should be requested to use a portion of its hotel/motel revenue to support the CVB operations. The city currently spends its share for "waterfront projects," including paying off debt.

He also said the CVB should consider moving out of the top of the SunTrust Building to the Chamber of Commerce building.

Mr. Sanford said the board approved the bureau's 2017-18 budget. He said, "We had reports from CVB marketing, sales and sports committees.  All looked good with good trends. There were no issues on the direction of CVB or issues with spending or controls."

He said Jim Bambrey Sr. is going off the board, and Mitch Patel is taking his place.

Mr. Sanford said in all there are six people going off the board. 

 

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