(Update) Hotels: Take tax from Cullman Chamber

Published 10:49 pm Monday, April 22, 2019

The Cullman Hospitality Association, made up of hotel owners and managers, Monday night called for the lodging tax and tourism board to be separated from the Cullman Area Chamber of Commerce.

Association members made their request publicly at the Cullman City Council meeting and submitted their concerns in the form of statements and a letter, which was submitted earlier in the day to the chamber’s executive committee.

The move comes after the Cullman County Schools Superintendent Shane Barnette unveiled Project X, which was a proposed $30 million sports complex off Alabama 157 on land donated by local developer Roy Drinkard. Barnette announced the plan in March during a press conference. 

Chamber of Commerce President Leah Bolin said at the press conference the chamber would donate a 2 percent share of the lodging tax to the project.

A portion of the county lodging tax is routed through the Chamber of Commerce because of a legislation bill that was passed in the 1990s. A portion of the tax is to be used toward tourism promotion. A part of the money is also being used to pay local costs associated with the Interstate 65 interchange at County Road 222, exit 305.

Efforts to contact members of the chamber’s executive committee were unsuccessful Monday night.

Three hoteliers attended Monday’s meeting, with Tabatha Smothers of Hampton Inn coming forward to submit the association’s letter and speak briefly concerning the tax.

Smothers said a member of the hospitality association is a member of the chamber’s tourism committee and was not informed of the executive committee’s plan to dedicate tax money to the county schools sports complex, nor was that individual or any member of the association informed of the project.

 “We are asking the legislative delegation to look into this and to have more transparency where public tax money is concerned,” Smothers said. “We believe those funds and the tourism board should be separated from the Chamber of Commerce.”

Before submitting the association’s letter to the council, Smothers said the action of the chamber’s executive committee was denounced by the association members.

“We feel this is a clear violation of trust and respect that we were promised by Leah (Bolin) years ago,” the letter stated.

Bolin, who has served for seven years, announced her resignation last week. 

In recent weeks, Wallace State Community College and several others chamber members withdrew their membership without public explanation. Those moves came after the announcement of the county schools sports complex and dedication of lodging tax money to the project.

After objections from several area mayors and some Cullman County School Board members, the project was put on hold. Barnette initially said a portion of a Cullman County Commission recently-approved half-cent sales tax for education would also be used toward the project.

 City Council President Jenny Folsom said the council understood the concerns of the hospitality association and that there would be a follow-up conversation with the chamber’s executive committee.

 State Sen. Gudger said Monday night he was willing to join other members of the legislative delegation to meet with anyone concerned about the tax and its use.

 “Anytime that the hotels, the chamber, Wallace State, City of Cullman, industries and small businesses need us to help clarify the use of the lodging tax, we will sit down and look at this together,” Gudger said. 

 “If any representatives of these entities are wanting to discuss this, I will be there. I feel everyone wants the best for the Cullman area. We just need to sit down and see how we can all be on the same page and work together going forward.”

The hospitality association’s letter reads:

“Leah Bolin and Executive Committee

“Cullman Area Chamber of Commerce

“Cullman, Alabama

“Dear Ms. Bolin and Chamber of Commerce Board of Directors:

“We are writing this letter regarding your decision to reallocate funds generated by lodgings tax. We are profoundly disappointed in our lack of involvement and the concealment of plans with the Chamber’s lodging tax resolution. We feel like this is a clear violation of trust and respect that we were promised by Leah years ago.

“Due to the rash of and wily decision that you have made concerning your commitment to Project X, we feel we have no other option than publicly denounce your decision on the premises that hotel owners/general managers, the Tourism Board, the local elected leaders, and the State Legislators were not informed of this decision. It is our sincerest belief that the public funds generated by the lodging tax should have more accountability and that it not be liberally earmarked at the discretion of private organization without the involvement of the City and County Leadership, State Delegation, the established Tourism Board, and the Hospitality Association.

“Moving forward, we are calling on our State Delegation to look into this issue and explore other methods to create more accountability and transparency with the Lodging Tax. Also, we feel it is time for the Cullman Area Tourism Board of Directors, along with the public lodgings tax funds be separated from the Cullman Area Chamber of Commerce. Going forward, we feel like it is imperative that we are involved before any long-term commitments of the lodging tax are granted. Such decisions should not be left up to the Chamber President of the Executive Committee alone.

Respectfully,

The Cullman Hospitality Association”