Bend City Council Holds Hearing on Room Tax Increase

Extends public comments to a July 10 hearing. Council hears comments from several segments of the community on a resolution referring the proposed lodging tax rate increase to the voters for the November 2013 election.

The resolution would refer to the voters a measure to increase the short-term lodging tax rate from 9 percent to 11 percent and require that 30 percent of the proceeds received by the City resulting from the increase be used for police and fire services. It is anticipated that the portion of the increase devoted to tourism promotion (70 percent of the additional proceeds) will be used to market Bend as a destination to select markets and to market off-peak tourism seasons. Included in that is an approximate $250,000 a year dedicated to a Cultural Trust Fund to promote arts activities in Bend.

Representatives of the local lodging industry spoke on both sides of the issues. Some including Wayne Purcell of The Riverhouse and Brett Everett, owner of three hotels in Bend, who encouraged the Council to grant more time to discuss the issue, stating they were opposed to the tax. Others included Ben Perle of the Oxford Hotel Group

Ray Solley of the Tower Theatre and the Arts and Culture Alliance, Bob Singer of the Tower Theatre Board of Directors and Frank Groundwater of BendFilm encouraged the Council to put this to the voters. They commented on the positive relationship between the arts and tourism marketing and encouraged open and transparent discussions and to let the voters decide in November.

Billye Turner spoke about presenting visual arts to visitors to our community. She stated that the economic impact is undeniable and she encouraged the Council to put the issue to the voters.

Dave White opposed a hasty decision on this ballot measure. He suggested conducting a study to improve tourism in Bend, explore all the alternatives, include a cross section of the tourist industry and it should be completed in three months.

Kelly Cannon-Miller, director of the Deschutes County Historical Society, Member of the ACA and member of Bend TAPS, pointed out there have already been seven months of process and said the voters should decide.

Mike Lovely said he’s for what’s going to make Bend a better place to live, and that the Council shouldn’t be deciding whether this should be on the ballot. He noted that we don’t have a sales tax. He talked about improving collection. He suggested everyone needs to come to the table and commented that Bend is not out of the recession so it is not the time to vote on a tax increase.

Linda Orcelletto asked why we all live in Bend: many are here for the activities, sunshine and recreation. She said it wasn’t enough of an increase to keep people away and commented that the visitors currently aren’t paying for the services we provide.

Jim Foster teaches at OSU Cascades and is a member of the Bend Film Board, and was speaking as an individual. He talked about how to keep the conversation going and the need for collaboration. He asked to let the voters make the ultimate decision.

Ben Perle said this should be put on the ballot to let the voters decide saying, “We want to attract more visitors to Bend in the off season and we want to help businesses.”

Wayne Purcell said police and fire should be our number one priority, commenting that this plan isn’t going to fix police and fire. He also voiced that the hoteliers won’t be able to combat the marketing campaign.

Doug LaPlaca talked about a shared vision for economic development. “We won’t find a plan that fits everyone,” he said, and commented that the committee process didn’t happen because it was a flawed idea.

Renee Patrick, art director for Cascade Publications spoke to the benefit of increased tourism marketing. She asked to give the voters of Bend a chance to decide this issue.

Gary Chandler serves as the board president for Arts Central; he encouraged the Council to put this on the ballot for the voters to decide.

Dave Rathbun, president and general manager at Mt. Bachelor submitted written comments and also said, “There’s a great opportunity for more communication on this issue.”

Josh Wilhite owner with his father of Copperline Homes supported the increase explaining many of his customers started as tourists.

Mayor Clinton closed the public hearing and Councilor Russell suggested keeping the hearing open, holding an additional roundtable and conducting another public hearing with the full Council on July 10. Councilor Knight seconded that motion.

Councilor Capell asked about format and why a special date.

Councilor Chudowsky would like to continue work on the issue. He didn’t want to rush because of an election deadline.

Mayor Clinton was willing to go the extra mile to reach a solution but wants to make a decision on July 10.

Councilor Barram commented that it had been a mistake to think this could be resolved in a subcommittee and that it needs to be resolved by the citizens.

Councilor Russell clarified that she would like to see a decision on July 10.

Mayor Clinton stated that the hearing would be on July 10 at 5 pm.

The motion to keep the hearing open until July 10 passed 5-1 (Councilor Barram opposed).

Doug LaPlaca said he and Dave Rathbun would host a town hall type forum between now and July 2. Council agreed.

The hearing is held open until the next City Council meeting on the resolution July 10 at 5pm.