| Council
OKs hike in lodging tax to build for tourism By
Meg Olson “The
events of history have kind of run us off the bridge but it’s important we
bite the bullet and do it,” said city council member Ken Ely, promoting a
one percent increase in the city’s lodging tax despite the economic strain
of a tighter border. “This plan gets us where we want to go.”
City
council followed Ely’s lead and voted unanimously for the increase at their
October 8 meeting.
As council representative on the Blaine tourism advisory
commission (BTAC), Ely helped develop the city’s new tourism plan, adopted
by the council, which calls for the extra funds for capital projects to support
tourism. ‘“It’s an excellent plan, a visionary plan but one filled
with practical ideas,” said city manager Gary Tomsic. The plan calls for
restrooms downtown, perhaps as part of a relocated visitor center, boardwalks
on the water side of Peace Portal Drive and connecting the marine park with the
pier, and welcome signs at the city’s gateways.
“BTAC is looking
at this funding to support infrastructure development that’s badly needed
to make Blaine a place to visit.” Tomsic said the increase could generate
$30,000 a year, which Blaine could use as matching funds for grants or loans to
fund construction.
Statewide, all hotels and motels collect a two-percent
regular lodging tax that replaces two percent of state sales tax on hotel bills
and goes directly to local coffers, city finance director Meredith Riley told
council. Since 1997 the state allows cities and counties to also charge a special
lodging tax, up to five percent, for communities to boost overnight stays. Blaine
already has a one-percent special tax and the new increase raises that to two
percent.
“For a small town we’re kind of in the middle of the
range,” Riley said. Neither Ferndale, Lynden nor Sumas charge a special lodging
tax, but Bellingham and La Conner levy two percent and Ocean Shores three percent.
The
tourism plan had recommended the additional one percent tax be implemented last
year, but BTAC opted to defer the increase because of concerns from Resort Semiahmoo,
which generates over 90 percent of the lodging tax collected by the city. This
year the resort withdrew its opposition to the increase. “We didn’t
oppose it,” said Resort Semiahmoo general manager Sandy Heydt. “We knew
it was coming. We don’t think it’ll have any negative impact on our
customers but we’re going to watch it.” Heydt added she hoped improvements
in Blaine would offer more for resort guests. “What’s good for Blaine
is good for Resort Semiahmoo. We really support the improvements the committee
is working on in the city.”
The only hotel owner who attended the
public hearing on the increase was Art Lawrenson of Motel International. A previous
member of BTAC, Lawrenson said he had supported the first one percent special
tax but had mixed emotions on another increase. “I don’t know where
all that money went,” he said. “I’m not saying it was well spent
or poorly spent. All I do know is I haven’t seen a change. If I knew where
the money was going and I would see some immediate results I’d be more inclined
to support it.” Lawrenson also said he felt the city had better things to
spend money on than the visitor information center, which takes up “a big
chunk” of lodging tax revenues, according to Tomsic. “That money is
down the drain,” Lawrenson said. “We’re sending them to Ferndale,
Bellingham, at Blaine’s expense. It’s a luxury the city can’t afford.”
“Over
the past two years we’ve tried to change how we do business so we will see
results,” Ely replied “I’m not saying the way we’ve spent
the money has been a bad job, but we can do better. Like you I want to see it
happen tomorrow. I think we will see it in the next two years. The money will
be spent differently and I think you’ll see a return on it.”
Council
voted unanimously on the increase, which goes into effect January1, 2002. Back
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