Walker County Giving Up All Hotel/Motel Taxes From McLemore Development

Walker County is giving up all proceeds of hotel/motel tax collections at the McLemore development on Lookout Mountain.

Some citizens at a lengthy commission meeting on Thursday night said that amounts to giving up $27 million over 30 years - or about $900,000 each year.

The commission unanimously agreed with allowing McLemore a portion of the tax proceeds for its conference center and using the rest to cover the cost of advertising McLemore and other county attractions.

Commissioners said the deal was in line with a memorandum of understanding signed in 2017 when the project was being envisioned. A number of citizens said the MOU makes no mention of Walker County giving up all the hotel/motel tax.

Commission Chairman Shannon Whitfield denied there had been a change in terms.

He said the county was getting a much better deal than what was being considered by the prior administration - a $50 million county bond issue backed by the county. He also said there was an effort to have Walker, Chattooga and Dade counties to become part owners, but that fell through.

Chairman Whitfield said the deal "doesn't take a dime from Walker County taxpayers" and does not increase the county's debt.

He said under the pact Duane Horton of Scenic Land Company agreed to put at least $100 million into the project and hire at least 180 workers.He said those goals have been far surpassd, including the installation of a second golf course. He said the spending is already over $300 million.

Chairman Whitfield said the county will be getting sales tax from the large operation as well as alcoholic beverage taxes. He said a number of homes are going up at the development and they all will be on the tax rolls.

He said McLemore's portion of the hotel/motel tax "is for the convention center - not for the hotel and not for the golf courses."

The Walker County Chamber of Commerce will be involved in handling of the advertising, it was stated.

Chairman Whitfield said McLemore will provide its own fire department, but residents there will still pay the fee charged by the county for fire service.

He said the McLemore group at first had wanted a 40-year term, but it was brought down to 30 years.

Chairman Whitfield denied that he had made any personal investment in McLemore. He said he only received "a few meals comped."

Chairman Whitfield said the tax amounts from McLemore were growing every month. He said projections were based on 50 percent occupancy. He said that number had been topped, and at times all rooms were taken.

Commissioner Mark Askew said he requested an opinion from special counsel on the deal, and it was validated. He said he and Commission Chairman-Elect Angie Teems went to McLemore to meet with Mr. Horton and some of his investors and came away satisfied.

He said the developers had gone forward while relying on the county's help, and he did not believe in going back on a deal.

Jamey Hulsey said a 30-year term was too long. She said, "After 10 years they may be making money hand over fist." She added, "I'm for a helping hand, but not for padding their pockets."

She also said that she and other vacation rental owners were not offered use of their hotel/motel collections. She asked, "Why are we subsidizing big business?"

Ned Yates said the deal made him "blue hot mad," said under terms of the earlier MOU that 37.5 of the hotel/motel tax should go to the county. He said, "Instead, we're giving it all to a private corporation."

He said those involved in approving the arrangement were "notorious scalawags."

Jay Tankersley said it was "selling county taxpayers down the road. A lot can change in 30 years."

Some citizens asked for the matter to be tabled, with one saying, "I'd like to know a whole lot more about it. It's a lot of money."

It was complained that the deal was only made public last Friday afternoon. Chairman Whitfield said that was the established time for posting the upcoming agenda.