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Thursday, July 02, 2009

Localities rethink chamber funding

The head of the Montgomery County organization left his job abruptly on Monday.

Local governments are backing away from an agreement to give the Montgomery County Chamber of Commerce money and responsibility to promote of tourism.

A day after the chamber announced the abrupt departure of its president and the start of a police investigation, Blacksburg ended its funding of the chamber's tourism efforts. Blacksburg had awarded the chamber $95,000 last fiscal year.

Christiansburg recently trimmed its funding; Montgomery County said it intends to follow the others' lead.

On Tuesday, the chamber's attorney said that Shane Adams had left the post of chamber president, chief executive and tourism director on Monday and that Blacksburg police are investigating unspecified matters at the organization.

Adams could not be reached for comment. Blacksburg police would not comment.

Blacksburg officials decided the town will no longer make payments to the chamber under a tourism and marketing services agreement, Town Manager Marc Verniel said.

Tourism promotion is the bailiwick of several chambers around the state. Luray, which has a caverns attraction, and nearby Madison County are two such examples, said spokesman Richard Lewis of the Virginia Tourism Corp.

In Montgomery County, the chamber stepped up the task several years ago. It operates a visitor center and runs promotions. Now that arrangement is evolving. The county and two towns are interested in more tourism. They appear to see promotion as a job for something other than the local chamber, however.

In response to Blacksburg's decision, the chamber issued a statement saying it "understands" and hopes the town will reconsider in the future. The statement also said the chamber is "conducting a full review of the status of tourism funds."

In the Roanoke Valley, tourism promotion falls to an independent convention and visitors bureau with a budget of $1.3 million, primarily from local governments.

There is serious money at stake. Virginia Tourism Corp. officials estimated that visitors spent $18.7 billion statewide in 2007, $105 million in Montgomery County.

Christiansburg officials originally bought into vesting the chamber with tourism promotion and marketing, an arrangement that began in 2006. Like other localities, it sent off a share of its hotel tax receipts for this chamber function, a sum of $119,000 last fiscal year.

Recently the town trimmed its subsidy and asked the chamber to create a plan to spin off tourism promotion to an independent entity within a year, Town Manager Lance Terpenny said.

The Christiansburg Town Council may revisit the issue at its July 7 meeting, he said.

Meanwhile, Montgomery County has considered trimming its support, which came to $12,924 last fiscal year, but a decision has not been made.

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