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April 11, 2007 SPECIAL BOARD - Room Tax
TOWN OF SEVASTOPOL Door County, Wisconsin BOARD OF SUPERVISORS’ "SPECIAL MEETING" MINUTES Wednesday, April 11, 2007 Meeting Room, Modular Building at Sevastopol Schools 4550 STH 57, Sturgeon Bay, Wisconsin Call to Order: Chairman Leo W. Zipperer called the meeting to order at 4:15 p.m. for the purpose of discussion and action on a proposed ordinance for the collection of room tax and the Tourism Zone Agreement. Pledge of Allegiance: Chairman asked all to rise and join in the Pledge of Allegiance. Establish Quorum/Roll Call: Roll call was taken. Chairman Leo Zipperer, Supervisors Tom Girman, Chuck Tice, Dan Woelfel and John Staveness, along with Clerk/Treasurer Linda Wait were in attendance. Also In Attendance: Laddie Chapman, Brad Birmingham, John Thenell, Donna Thenell, Bob Graef and Maude Graef. Discussion: Chairman Zipperer explained the urgency in calling this special meeting, in that the Door County Visitor Bureau has a meeting scheduled for April 12, 2007, at which time the Door County Tourism Commission begins and municipalities will be asked their intent on participation or not in the collection of room tax on transient lodging and the Tourism Zone Commission Agreement. Some citizens have expressed favor and other are opposed to the Town joining a room tax coalition. Supervisor Tice has attended the various meetings and Zipperer invited him to provide a further explanation and status report. Tice provided a brief history of the room tax and tourism zone proposal, initiated in August 2006. Karen Raymore, DCVB (former Door County Chamber of Commerce), has presented samples and proposals to the various municipalities as to the Tourism Zone Commission Agreement, Tourism Entity Agreement and Room Tax Ordinance. Joint meetings were also conducted through the Municipal Taxpayers Commission for discussion, suggestions and corrections which would be acceptable to the municipalities. Attorney Nesbitt put together the proposed agreements for review. Specifically, we looked at the ordinance used by the Town of Liberty Grove and created our draft from that. Tice went on to explain the Commission and its makeup, funding, authority and process for collection of the room tax and the hiring of administrators to promote Door County tourism. There was discussion on the DCVB member structure and dues; member or not, the room tax would be collected and is expected to generate $2.2 million, based on "everyone in the pie," and the various ways in which tourism would or could be promoted. Tice explained that transient lodging was defined as 30 days or less and that Wis. Stats. grants municipalities the authority to impose a room tax, with 70% to be spent on advertising and promotion and 30% to be retained by the Town. The 4% maximum allowed for operational expense comes out of the 70% collected. Tice indicated the Commission will start tomorrow and that if we do not join, we will not have a say in the marketing, funding, etc. Once on board, we could opt out after five years, upon six months' notice. Tice also mentioned the Commission at this point has no starting capital; funds would have to be borrowed, either from an outside source or from the municipalities, and paid back later. Brad Birmingham, John and Donna Thenell and Bob Graef expressed their concerns with the implementation of a room tax and the fact that they were lodging providers on a small scale, with just one or just a few units. Zipperer said that the room tax matter had come before the Town Board back in 1998 and at that time, the Town did go on notice to accept it, if other municipalities jumped onboard. He indicated that tourism is our biggest industry and needs to be promoted. Even though the Town is used as a conduit for implementation and collection, these are funds that would be available for our use and not have to go on the tax levy. Motion by Zipperer and seconded by Girman to first adopt a room tax ordinance, similar to that proposed by Liberty Grove, and then proceed to the Tourism Zone Commission Agreement. Following some additional discussion, the motion carried, unanimously, by roll call vote (Staveness-aye, Woelfel-aye, Zipperer-aye, Girman-aye, Tice-aye). Motion by Tice and seconded by Staveness that the Door County Visitor Bureau be notified of the adoption of the room tax ordinance, but we would like clarification as to the members. Motion carried, unanimously. Motion by Girman and seconded by Woelfel to accept the Tourism Zone Commission Agreement, subject to Commission Representative Tice's approval of the final version of the agreement. Motion carried, unanimously. Motion by Zipperer and seconded by Girman that Tice continue as our representative to the Door County Tourism Zone Commission and authorize Tice to execute any agreements relative to the establishment of the Tourism Zone Commission Agreement. Motion carried, unanimously. Adjourn: Motion by Staveness and seconded by Woelfel to adjourn. Motion carried, unanimously. Adjourned at 5:46 p.m. Respectfully submitted, Linda D. Wait, Clerk [approved 5/21/07]