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Thursday, May 22, 2008

Christiansburg considers cap on tourism money

The town pays the Montgomery County Chamber of Commerce to lure visitors to the region.

CHRISTIANSBURG -- The town's Cruisin' Christiansburg festival was so successful, it spurred several members of the town council to do something they've been pondering for some time.

Councilwoman Ann Carter made the suggestion at Tuesday's meeting that the town consider capping the contributions it makes to the Montgomery County Chamber of Commerce for tourism promotion.

Calling the May 17 festival an exciting event that brought thousands of people to the downtown area, where more than 250 classic cars were on display, Carter and other council members said they would like to set aside some of the money going to tourism for Christiansburg-specific needs.

"We could use some seed money" for initiatives such as Cruisin' Christiansburg, Carter said. The town has planned three more of the summer festivals this year and is anticipating the completion of the new aquatic center later this year.

"I do think there needs to be a cap so we can use some of this money for our own purposes," agreed Councilman Mike Barber.

Councilman Steve Huppert, who was one of the organizers of the downtown festival, said at Tuesday's meeting that he would like to cap the amount given to the chamber at $70,000. While admitting that he pulled the number "out of the air," Huppert said Wednesday that Christiansburg has contributed at least $300,000 to the tourism initiative since it began three years ago.

"I'm not sure we've gotten $300,000 worth of support," Huppert said.

In 2004, Montgomery County Chamber of Commerce President Shane Adams persuaded Christiansburg, Blacksburg and Montgomery County to increase their transient occupancy taxes -- a tax paid by visitors to hotels -- and dedicate 1 percent of the increase for tourism and marketing services provided by the chamber.

Blacksburg then raised its 6 percent tax to 7 percent, and Christiansburg upped its 5 percent tax to 7 percent. Montgomery County went from 3.5 percent to 4.5 percent. But because Christiansburg has many more hotels than the other two jurisdictions, the town collects more tax money and contributes more to the tourism initiative.

This fiscal year to date, Christiansburg Town Manager Lance Terpenny said the town has sent the chamber $151,326.24 for the tourism fund.

Adams has said the chamber is seeing results from its tourism efforts, guided by a Tourism Development Council that includes Christiansburg representative Nichole Hair, a town planner. Earlier this year, however, some town council members expressed criticism about how Adams was handling his contractual obligations.

Twenty percent of the tourism initiative funds go to administrative costs performed by the chamber, but Adams has said his ultimate goal is to hire and turn over the job to a tourism director. Adams had no comment Wednesday on the council's discussion.

None of the council members interviewed said they were in favor of opting out of the town's tourism contract with the chamber.

"I don't think we can afford to be without a tourism plan," Barber said, calling Christiansburg a "central point" for drawing tourists to the area. "We've got plenty of dining, plenty of shopping, plenty of lodging. I think we have to stay involved in the tourism initiative. But I'm not opposed to looking at a cap on it. I do think the [$70,000] amount proposed was unrealistic. That's on the low end."

"I believe, truly, in cooperating with each other," Carter said. "I want to make it plain that I don't want to take away all their money."

Carter said a bit of dissatisfaction in the Tourism Development Council's response to grant requests from the Downtown Christiansburg Partnership spurred her request to consider the cap.

Huppert, who asked for $3,000 on behalf of the partnership for the summer festivals, received only half that amount. As part of the contract with the chamber, 25 percent of the tourism funds are to be used for research and development purposes, including the local grant program for groups or event organizers who demonstrate an ability to attract overnight visitors to the area.

Calling the kickoff festival "one of the most exciting events we've had downtown," Barber said he would like to see more direct funding for those types of things.

"To me," he said, "that's good use of the money."

The council instructed the town attorney to review the tourism agreement contract and report back on the possibility of establishing a cap on contributions. The contract will be renewed automatically in June.

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