County Seeks Control Over Visitors Bureau
July 28, 2016 at 4:25 p.m.
Kosciusko County Council is seeking a higher level of scrutiny and control over the county's convention and visitors bureau.
Moments after CVB officials announced plans to construct a new office and 24-hour visitors' bureau along U.S. 30 in Warsaw Thursday night, council warned that they are seeking a change in state law that would enhance council's control over the agency.
While no county officials have openly criticized plans to relocate, it is apparently one of the reasons behind the effort by council.
Tensions have been growing between council and the CVB as council has watched the agency collect more and more money from the innkeepers tax in recent years.
Last year, the tax generated nearly $230,000. Much of that money is used in turn to promote tourism within the county, but the CVB recently hired a third employee to coordinate bus tours and promote conventions.
But when the CVB legally accessed about $185,000 in revenues accumulated over recent years, "That really set it off," council president James Tranter said after Thursday's council meeting.
The CVB received the money from council in May and made clear their intentions to relocate its office.
CVB officials detailed their rationale for the move and details about the 2,500-square-foot facility west of Sym Financial office Thursday, and council members remained expressionless and offered no input.
However after the presentation was over and another issue was being discussed, councilman Lewis Bertsch interrupted and issued a warning.
"You need to be aware that there is a good chance that there is going to be an attempt to influence legislation to change the law in regard to Kosciusko County. And if that happens, it probably would change the funding you would see,"
While the warning was a bit of a surprise, CVB director Linda Arnold said she was glad to hear it from council since rumors about the issue had surfaced recently.
CVB board member Faye Medlock said the agency would "appreciate being a part of any" decisions involving the CVB.
After the meeting, Tranter would not say whether he supports the relocation.
Councilman Tom Anglin said he opposes the CVB's plans to move, and suggested the CVB project is an effort to "build a dynasty" for itself.
Arnold disagreed at such a notion, saying "I don't think 2,500 square feet of anything is a monument."
Both Anglin and Tranter said they are concerned about the agency's control over so much money.
"We want to make sure we're doing this properly and that this money just doesn't get away from us," Tranter said.
With two new major hotels opening in Warsaw, Tranter and Anglin predict the inkeepers tax revenues will nearly double or increase significantly in the near future.
Arnold said that assumption is not realistic, noting that while revenues have increased steadily, annual increments have been only a few percent.
"We expect a leveling out of income," she said. "I think visitors will have more of a choice. That's why we're making an effort to move to a more visible location so we can be more of assistance to travelers who are wanting to stay in our area."
Tranter said he could foresee using some of those revenues in other areas such as the City-County Athletic Complex and the county fairgrounds. He acknowledged the CVB already provides the CCAC an annual allotment.
The CCAC and fairgrounds have repeatedly sought financial support from council, and Tranter said they believe those areas could fall within the definition of tourism and would be eligible for revenues from the innkeepers tax.
"When you have a vehicle that already collects it, why not use it?" Tranter said.
Tranter said council is investigating a provision in state law that has been used by Elkhart County and a handful of others that would allow council to have the same type of control in all spending facets as other county departments.
But Arnold said she's under the assumption that Elkhart's CVB is limited only to promotional efforts and not capital improvements.
Tranter said the legislation is not an effort to undermine the CVB's plan to relocate.
Arnold said she didn't view Thursday's development as an effort to block their relocation because county officials have not spoken against it in the past.
Arnold doesn't envision an adversarial relationship growing between the CVB and council.
"No. That would be a losing battle. I don't think we can be in an adversarial role with each other. I think we need to work together," Arnold said. [[In-content Ad]]
Kosciusko County Council is seeking a higher level of scrutiny and control over the county's convention and visitors bureau.
Moments after CVB officials announced plans to construct a new office and 24-hour visitors' bureau along U.S. 30 in Warsaw Thursday night, council warned that they are seeking a change in state law that would enhance council's control over the agency.
While no county officials have openly criticized plans to relocate, it is apparently one of the reasons behind the effort by council.
Tensions have been growing between council and the CVB as council has watched the agency collect more and more money from the innkeepers tax in recent years.
Last year, the tax generated nearly $230,000. Much of that money is used in turn to promote tourism within the county, but the CVB recently hired a third employee to coordinate bus tours and promote conventions.
But when the CVB legally accessed about $185,000 in revenues accumulated over recent years, "That really set it off," council president James Tranter said after Thursday's council meeting.
The CVB received the money from council in May and made clear their intentions to relocate its office.
CVB officials detailed their rationale for the move and details about the 2,500-square-foot facility west of Sym Financial office Thursday, and council members remained expressionless and offered no input.
However after the presentation was over and another issue was being discussed, councilman Lewis Bertsch interrupted and issued a warning.
"You need to be aware that there is a good chance that there is going to be an attempt to influence legislation to change the law in regard to Kosciusko County. And if that happens, it probably would change the funding you would see,"
While the warning was a bit of a surprise, CVB director Linda Arnold said she was glad to hear it from council since rumors about the issue had surfaced recently.
CVB board member Faye Medlock said the agency would "appreciate being a part of any" decisions involving the CVB.
After the meeting, Tranter would not say whether he supports the relocation.
Councilman Tom Anglin said he opposes the CVB's plans to move, and suggested the CVB project is an effort to "build a dynasty" for itself.
Arnold disagreed at such a notion, saying "I don't think 2,500 square feet of anything is a monument."
Both Anglin and Tranter said they are concerned about the agency's control over so much money.
"We want to make sure we're doing this properly and that this money just doesn't get away from us," Tranter said.
With two new major hotels opening in Warsaw, Tranter and Anglin predict the inkeepers tax revenues will nearly double or increase significantly in the near future.
Arnold said that assumption is not realistic, noting that while revenues have increased steadily, annual increments have been only a few percent.
"We expect a leveling out of income," she said. "I think visitors will have more of a choice. That's why we're making an effort to move to a more visible location so we can be more of assistance to travelers who are wanting to stay in our area."
Tranter said he could foresee using some of those revenues in other areas such as the City-County Athletic Complex and the county fairgrounds. He acknowledged the CVB already provides the CCAC an annual allotment.
The CCAC and fairgrounds have repeatedly sought financial support from council, and Tranter said they believe those areas could fall within the definition of tourism and would be eligible for revenues from the innkeepers tax.
"When you have a vehicle that already collects it, why not use it?" Tranter said.
Tranter said council is investigating a provision in state law that has been used by Elkhart County and a handful of others that would allow council to have the same type of control in all spending facets as other county departments.
But Arnold said she's under the assumption that Elkhart's CVB is limited only to promotional efforts and not capital improvements.
Tranter said the legislation is not an effort to undermine the CVB's plan to relocate.
Arnold said she didn't view Thursday's development as an effort to block their relocation because county officials have not spoken against it in the past.
Arnold doesn't envision an adversarial relationship growing between the CVB and council.
"No. That would be a losing battle. I don't think we can be in an adversarial role with each other. I think we need to work together," Arnold said. [[In-content Ad]]