Lodging tax use change draws fire
Published 5:15 am Tuesday, April 2, 2019
- Cullman County Schools Superintendent Shane Barnette talks about the system's new sports and arts complex on March 19.
As fallout continues from the recent announcement of a proposed $30 million county schools sports complex, Cullman hotel association members said Monday they were shocked to learn of the Cullman Area Chamber of Commerce’s decision to dedicate future lodging tax money to the project.
Additionally, although school officials declined comment on the separation, The Times has confirmed that Wallace State Community College dropped its longtime chamber membership and cancelled future participation with the organization. The community college has been an active member and had employees serving in strategic positions on chamber boards.
Chamber President Leah Bolin declined comment Monday about the current status of Wallace State’s membership, but late Monday, the college was still listed on the chamber’s website under Community Partnerships.
Last week, following the adoption of a resolution by the Hanceville City Council to oppose the county’s sports complex, Mayor Kenneth Nail said the complex will hurt “our businesses and Wallace State.” Nail added, “After all Wallace State does for the entire county, then you want to take away from them? Hell no, it’s not going to happen.”
‘I can tell you I was not aware of the county sports complex project,” Smothers said. “It was a back-door decision and the hoteliers were not real happy about it. We are not pleased with a lodging tax intended for tourism promotion going to an education project.’ —Hampton Inn of Cullman General Manager Tabitha Smothers
At a March press conference hosted by Cullman County Schools Superintendent Shane Barnette to announce what had been previously noted as Project X, Bolin said the lodging tax will go toward the project. The money pledged by the chamber will be combined with 30 percent of a new half-cent sales tax that was approved by the Cullman County Commission last month. The project, targeted on land off Alabama 157, also calls for a bond issue to complete construction.
Bolin said Monday the current lodging tax money will continue to be dedicated to the Exit 305 interchange for the next four years, at which time that obligation will end. At that time, the money can go toward the complex, which is proposed to be constructed on 58 acres of land donated by Cullman businessman Roy Drinkard, and will be a state-of-the-art facility used for sports, the arts, theatre and other events.
Hampton Inn of Cullman General Manager Tabitha Smothers said there was no communication from chamber officials concerning the sports complex or dedicating the lodging tax to the project.
“I can tell you I was not aware of the county sports complex project,” Smothers said. “It was a back-door decision and the hoteliers were not real happy about it. We are not pleased with a lodging tax intended for tourism promotion going to an education project.”
Smothers said the hotel association will meet soon to discuss the lodging tax. She also said hotel association members learned about a City of Cullman’s proposed $18-$20 million indoor, multi-purpose sports complex late last year, noting city officials included the association in discussions and shared their plans. The city announced its project plans one day before Barnett’s press conference.
“We’re excited; it’s going to bring a lot of people here and generate more lodging taxes,” Smothers said about the city’s complex.
Pritesh Patel of Cullman’s La Quinta hotel said chamber officials did not consult with his organization. He also sits on the chamber’s tourism committee and said there had not been discussion of the county schools complex or future use of lodging tax dollars.
“We were completely shocked,” Patel said. “It was like a back-door decision. I think we should be the first ones to hear about it.”
Patel said city officials had consulted with hotel managers and owners about its project.
Bolin said a meeting is being planned with hotel association members to present details of the county schools plan and use of the lodging tax.
The half-cent, countywide sales tax increase goes into effect May 1. The projection is that will generate about $4 million annually for county schools, while the Cullman City Schools can expect just under $1 million per year, Barnette said.
Most of the money going to the county system will be used on maintenance and improvements of facilities and increased safety measures, Barnette said.
“My main focus is the students of Cullman County. I have heard people question for a long time say why can’t Cullman County students have a nice facility that can be used for the arts and sports,” Barnette said. So I have shared the dream of having such a facility with several individuals over the past few years.”
Barnette said the facility could be rented for other events when county students are not using it.
“I knew there was a lodging tax set aside for encouraging tourism and it currently is allocated to the 305 Exit. I asked the chamber if I could present our project idea to them for consideration,” Barnette said.
“The land that was donated for the students of Cullman County is perfect because it is easily accessed by all county school families and it is next to several hotels and restaurants for non-school events that attract people into Cullman. These events will help pay for the facility and bring tourism into Cullman at the same time.”