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.

CIty Council approves Hotel/Motel Tax for a 2nd Time Over Concerns of local Hotel Operators.

Even though several Crossville hotel operators showed up to express concern about the city's plan in increase the hotel/motel tax the city council approved the second resolution necessary to send the matter on to the General Assembly.

With the county's current tax at 7.5 percent, sales tax at 9.75 percent and an additional 3 percent proposed by the city the total tax on a hotel room in Crossville would be 20.25 percent. As of 2015, only one county in Tennessee had a higher hotel/motel tax rate than the amount that could be charged to visitors if the matter is approved.

City Council, city manager, and city attorney meet to

discuss the city's proposed hotel/motel tax.

The motion to approve the resolution for the second time as required in the state law was made by Councilman Danny Wyatt and seconded by councilman J. H. Graham.

David Padgett with the local Hampton Inn told the council while travelers just passing through might not be affected, his corporate clients would since they set budgets and if the cost rises they would likely cut back on their nights staying in Crossville. According to Padgett, the additional 3 percent city tax on top of the 17.25 percent for sales tax and the county hotel/motel tax represents a 17 percent increase in the tax on local hotel rooms. “That's pretty substantial,” added Padgett.

Crossville hotel operators came to express their thoughts

about the proposed tax.  David Padgett of the Hampton Inn, center 

spoke on behalf of other local hotel businesses

With the local market softer and Padgett saying his occupancy rate stands at 72.35 percent instead of the 85 percent of larger communities like Nashville, Knoxville, Pigeon Forge, areas that have more to offer in amenities outside of tourism like better restaurants and attractions.

“I'm actually OK with an increase, but let's phase it in over a while,” urged Padgett.

Visit Cookeville Ford Lincoln website.

Mr. Graham outlined the reasons for the proposed action, “This tax, if approved by the General Assembly, will be used for the increase of tourism, to provide more events and more functions to attract more individuals to stay with us in this area.”

In comparison to the hotel/motel tax for Cookeville, they charge 15.75 percent total and have no city hotel/motel tax and are now 1.5 percent less than Crossville but that difference will increase to 4.5 percent less if the Crossville increase goes through. Mayor James Mayberry said he was not sure if that difference would save anyone money with the cost of driving from Cookeville to Crossville though the hotel operators pointed out that if a ball team or other group needed several rooms that difference would add up and could make the difference where people decide to stay.

City Manager Greg Wood said that one of the reasons the city is looking at the tax is because the county does not use revenue in the way the city plans to.

Council Member Pamala Harris said she could see both sides and that there were more things to do in Crossville than just the State Park and Golf.

The Crossville Cumberland Co. Sports and Event Committee was briefly discussed and Doug Parkey who is working to organize the group told the council that group planned to maximize the use of the facilities the city currently has, look at what possible facilities the community might need and recruiting sporting and other events to the community like festivals and concerts. Parkey pointed out that he expects there to be donations from businesses and others to support the council and that not all the funding would come from the new tax.

All four of the council members present voted in favor of the measure and sending the request for action to the state legislature. Councilman Scot Shanks was not present at the meeting.   

City Council Votes to seek 3% Hotel/Motel Tax to fund Tourism and Economic Development.

The Crossville City Council approved the first of 2 resolution votes required to request that the Tennessee General Assembly approve allowing the city to put a hotel/motel tax in effect.

In order to approve the resolution for the required second time and get the paperwork to Nashville, the council will hold another special called meeting on Thursday, January 25 at noon.

Currently, Cumberland County has a 7.5 percent hotel/motel tax that has been in effect for several years and under the Tennessee State law the city has been prohibited from adding a hotel/motel tax but recently some waivers have been added to the bill by the General Assembly allowing a way around the law.

City manager Greg Wood, left and 4 of 5 council members

discuss the addition of a citywide 3 percent hotel/motel

tax. Also pictured are council members J.H. Graham,

Danny Wyatt, Mayor James Mayberry, and Pamala Harris.

Council member Scot Shanks was not present.

Councilman Danny Wyatt proposed the action to add a 3 percent city hotel/motel tax with the revenue to be earmarked for economic development and tourism. The resolution would request a change in the city's charter to be able to assess and collect the tax and for a waiver from the current state law. Councilman J. H. Graham supported the motion.

With the 9.75 percent sales tax along with the county and proposed city hotel/motel tax, the total tax on a hotel stay would be 20.25 percent. Most areas in Tennessee have a total of 19.75 and the highest in the state from 2015 is 21.75.

Discussion lead to some changes in the motion but it was stressed that the city's action would not affect the county's current hotel/motel tax that would remain in place. Council member Pam Harris asked if anyone had discussed the matter with local hotel owners to see how they thought it might affect their business? Harris also wondered if such additional tax might hurt tourism.

Wyatt said he thought the funds should be under the control of the city manager to decide what to use the funds for such as Parks and Recreation, tourism or golfing.

Mayor James Mayberry said he couldn't vote for it unless the funds went through the budget process and the council decided the use of the money. With that added to the motion, all four council members present voted in favor of the motion.

Because of the deadline to get the information to Nashville and the schedule of council members another called meeting was set for Thursday, January 25 at noon.   

Council also approved authorizing the application for a 10,000 grant toward playground equipment at Garrison park and other items on the consent agenda.

Solar Eclipse attracts well over 100 planes to the Crossville Airport.

Monday's solar eclipse brought well over 100 planes to the Crossville Memorial Airport including several from outside of the United States. 

Crossville Memorial Airport Terminal

Crossville city manager Greg Wood told the Crossville city council about the visitors at the end of their special called meeting.  According to Wood, at least 127 planes were on the ground at the airport including a couple very expensive planes worth $20 million each.  Wood estimated that there were over $100 million of aircraft value at the airport for the eclipse. 

Planes came to Crossville from Canada and Puerto Rico.  

Near the new car stores; not near the price!

PARK PLACE MOTORS!

Glenn McDonald defines a Crossville tourist as "someone who comes here and spends money.

Meadow Park Lake, a tourism "secret" no more.

While the main thrust of economic development efforts currently surround industry and manufacturing jobs, Cumberland County continues to maintain a strong tourism economy – something it’s had success with for decades.

While Cumberland County is known as the “Golf Capital of Tennessee,” the great outdoors is making a big comeback, too. It’s even a good place for a “social brew.”

One man who knows a lot about area tourism – the present as well as the past – is Glenn McDonald. McDonald has served for many years on the Convention and Visitors Bureau and as vice chair of the tourism/retiree relocation committee.

Link to Upper Cumberland Business Journal Story

Council agrees to seek grants for tourism and parks

The city of Crossville will apply for a $50,000 grant to help pay for the construction of a restroom/concession stand for the Spirit Broadband theatergoer.

The funding is available from the Tennessee Department of Economic and Community Development to enhance tourism. A local match of at least 30 percent is required by the grant which was released March 10.

The project has an estimated cost of $166,500 for design, sitework and construction. The project is already in the city's proposed capital plan and grant awards are to be announced in June 2016. The project must be completed within one year.

The motion to approve the grant was unanimously approved.

Council also approved increasing the amount of funds requested from a Local Parks and Recreation Fund grant for improvements at Garrison Park. Previously the city had approved applying for the grant when the limit was $250,000. Since that action by the council, the maximum amount of the grant has been increased to $500,000.  The additional funds will allow for the completion of restroom facilities at the park

The second grant application increase was also approved unanimously.