County May Not get Restaurant Tax but City interested in Partnering on Expo Center funding and operation.

The City of Crossville said they were interested in partnering with the county on funding and operation of the proposed expo center but the funding of bond payments through a restaurant privilege tax appears questionable for now.

Crossville city councilman J. H. Graham, left, expresses support

for partnering with the County on the Expo Center as other

members listen, including Danny Wyatt,

Mayor James Mayberry, Pamala Harris, and Scot Shanks.

Crossville Mayor recapped briefly what the council learned at the recent work session and moved to provide the county with a letter of support for the concept of the proposed expo center and the potential for increased tourism, sales tax revenue and opportunities for our citizens. Council member Pamala Harris quickly supported the motion.

Mayberry said his motion was not about funding, only about the concept. Mayberry asked city attorney Will Ridley to explain what he had researched about a food and beverage tax.

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Ridley explained that currently the way the law was written it appears to only work for Sevier County in the state as the law required that a municipality located in a county considered a “tourist resort district and have a municipal airport, which we have; a helicopter touring facility which I'm sure we could get; and the hard part is getting the Great Smoky Mountains here.”

Currently, a restaurant privilege tax is collected in Sevierville, Pigeon Forge, and Gatlinburg only.  

Based on the law at the current time, Ridley said his opinion is that "Crossville could not charge a food and beverage tax now. That is not to say that the county of the city or any other individual couldn't petition the legislature to change the law.” Ridley pointed out the Bristol Tennessee had tried to get the law changed using Bristol Motor Speedway as their tourist attraction but they haven't made much headway.

Councilman J. H. Graham stated he wanted to go on record in support of the expo center and added he'd like to see the city and county work together on a 50/50 basis. Graham added that he would support not only splitting the cost of construction but also the cost of operation of such a facility.

Mayberry reminded the council that the motion on the floor was simply a letter in support of the concept and not yet a commitment of funding.

Mayberry's motion was approved unanimously.

Before moving to the next item on the agenda, Councilman Danny Wyatt said he'd like to make another motion adding that he felt the same as Mr. Graham. Mr. Wyatt made a motion to let the county know that the city was interested in partnering with them. Mr. Graham supported the motion by Mr. Wyatt.

Discussion between Ms. Harris and Mr. Wyatt included Wyatt's comment that the larger expense would be the ongoing operation rather than the initial construction cost. Mayor Mayberry commentated that the city had a number of large expenditures that the council had been talking about for quite some time that he felt should enter into the discussion. Mayberry added that he was not yet ready to enter into a partnership without more information.

The motion on the partnership was approved with three aye votes from Graham, Wyatt and Harris. Mr. Mayberry and Scot Shanks voted no.

County seeks support from city for new restaurant tax to fund Expo Center-City to consider at June 12 Meeting

During the city council work session in preparation for the June 12 regular council meeting, several representatives of Cumberland County gave a presentation about the proposed expo center and one way to fund the project.

The presentation on the expo center was given by Donnie Moody, director of the Community Complex where the building is proposed to be constructed. The plans are for the construction of a 60,000 square foot multipurpose building with 45,000 square feet of open space plus a large commercial teaching kitchen.

Community Complex manager Donnie Moody speaks

to Crossville officials about County plans for the proposed

Expo Center.

The county got a rough estimate of costs about 6 months ago that totaled $3.8 million but recent increases in costs of steel and other building material will raise the cost by the time construction could start sometime next year.

Moody said the current 7200 square foot exhibit building is no longer big enough for events that people want to rent facilities to hold. The current exhibit building would fit inside the proposed expo center 4 times. The large space with 48-foot ceilings can also be divided into three smaller areas if needed. In addition a breakout room, hallway and several garage doors.

Because the financing for the project requires a large bond issue, the county is proposing a so-called restaurant privilege tax that essentially adds a 1 percent tax to all restaurant bills. According to County Commissioner Wendell Wilson that would at 35 cents to a $35 bill or $1.00 to a $100 restaurant bill. According to Wilson Pigeon Forge, Gatlinburg and Sevierville have already put a similar tax into effect. The revenue from the tax would be earmarked for payments on bonds or loans for the expo center for the 20-year term.

Cumberland County Commissioner Wendell Wilson

explains the financial side of the County Expo Center

proposal.

County Mayor Kenneth Carey advised the council that having the city support the plan by a resolution would help to get the matter approved by the Tennessee General Assembly that would have to approve the private act for the institution of the tax.  Council could take action Tuesday. 

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Council discussed the pros and cons of taking a short section of Thurman Avenue that is currently one way and returning to two way traffic. The change has been requested by businesses along the one block stretch of road. Potential issues include the narrow road, possible loss of parking and the planning commission's recommendation that the change not be made. A decision may come at the council's regular meeting.

Section of Thurman Ave. that is currently

one way only.

Council advised Crossville city manager Greg Wood to move forward with plans for active shooter training for city employees. Crossville police chief David Beaty said due to concern about the safety of city hall employees and at other city operations, the 2-hour training session was recommended.

Council will put off taking action on proposed tournament perks and fee adjustments that have been worked on by the Sports and Entertainment Committee. There is still work that needs to be done on the proposal.

Crossville City Council set for Called meeting and work session Tuesday June 5 on budget, expanded council and more.

With the addition of a special called meeting before the June work session at 5 PM on Tuesday, June 5 it appears the Crossville City Council will approve the budget and city property tax rate by the regular June council meeting June 12.

With the first reading completed and the second reading on the agenda for a called meeting, Tuesday, June 5 the third and final readings are expected on the agenda of the regular June meeting on June 12. The city's budget is expected to be approved at $1.1 million in the red with some 10 times that amount in the city's general fund balance.

Other items on the called meeting agenda include the first reading of a budget amendment of year-end adjustments to bring the budget to actual expenses, third reading of the ordinance reimbursing the BOE for expenses of the CCHS drainage project and purchases of public works uniforms and a commercial mower.

Following the called meeting at 5:05 PM the council will go into the monthly work session in preparation for the June council meeting. The first item for discussion is a presentation from County Mayor Ken Carey and County Commissioner Wendell Wilson on a proposed expo center. The County is seeking help from the city for the construction costs estimated at $3.8 million. The proposed location for the expo center is between the current Farmer's Market and the Community Complex.

The area in red is the approximate location of the 

proposed County Expo Center.

Council is also scheduled to hear a presentation from Co. Sheriff's investigator Bo Kolloros and police chief David Beaty on a program to train city employees on what to do in the case of an active shooter. The training is called CRASE for civilian response to active shooter event.

Two city charter changes are up for consideration as well. Both have been approved by the council once, approved by the state legislature and each now faces a super majority vote becoming part of the charter. One change would add two additional members to the city council increasing it to 7 total members with a mayor and 6 council members. If the matter is approved it will affect the number of races for the city election in November with one additional 4-year term and one 2 year term on the ballot.

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The other charter change would approve the institution of a 2 percent hotel/motel tax.

Council will discuss a request from businesses on Thurman Avenue between First and Second Street to make the road two way from the current one way. The road was previously a two-way road and was changed to one way several years ago. While the lanes would be narrow, the city street department said there is adequate space though the planning commission has recommended leaving the street as one way.

The area in Green is the section of Thurman Ave

proposed for returning to two-way traffic.

Also on the agenda is the request from the County for waiver of building permit inspection fees on the Crab Orchard School project, installation of a water line on Fox Den Drive, and approval of road closures for the July 6 Rock the Block festival.

A discussion on a proposal of perks and rental fee adjustments for softball, baseball and soccer tournaments is on the agenda and a discussion on paying off water fund loans of about $1.4 million. The loan payoff proposal will save about $14,400 of cash flow each month along with a savings of interest of some $200,000 over the current terms of the loans.