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Tuesday, March 18, 2014

The Forthcoming 0.75% Convention & Visitor Bureau Tax

Did you see this motion discussed, tonight?

C. Belanger - Req. City Mgr. provide a report on income produced on .75 additional meals tax enacted July 1, 2010.

When the video archive comes up, do take a look at the meeting and listen to what C. Belanger doesn't say. He never once says Greater Merrimack Valley Convention & Visitors Bureau (Link). Which seemed odd because, I'd bet it was on the tip of his tongue.

Note: Dick Howe reports Belanger did say "CVB." (Link) #jumpball
Note 2 (3/19, 16:20): I was wrong. Belanger said "MRT and Convention & Visitors Bureau,' which actually didn't make sense. The context was using the 0.75% increase to promote business. The CVB is not the same as the MRT or LMA. The CVB is a business that promotes, it is not promoted. Which, I'd argue, only reinforces the notion that Belanger means to reinsert the City's teat into the CVB's mouth.

C.Belanger is looking for the sum of revenue that is raised from a Lowell specific bump in the meals tax. He wants to put it towards a dedicated purpose. Rather than simply applying it to 'balance the budget.' He suggested certain applications, like marketing.

By a show of hands. Who remember's this brouhaha?


Lowell restaurateurs to city manager: Put Convention Bureau cash back on menu
The Sun (4/12/11)
LOWELL -- City restaurateurs were not excited about the prospect of an increase in Lowell's meals tax from 6.25 percent to 7 percent when it was proposed last year.

But they said the change was made more palatable by the city's promise to funnel the new revenue into organizations that bring events to the city, thus helping the restaurants.

City Manager Bernie Lynch and his staff told restaurant owners that without the new revenue, the city would probably have to cut funding to Lowell Memorial Auditorium, the Merrimack Repertory Theatre and the Greater Merrimack Valley Convention and Visitors Bureau, among other programs.

Last May, the City Council voted 5-3 to implement the tax beginning last July 1, and it has brought in $455,000 through the first three-quarters of the current fiscal year.

But in recent weeks, Lynch has stated that Lowell is considering eliminating its $25,000 contribution to the Convention and Visitors Bureau in fiscal 2012, a proposal that has enraged local business owners. They argue that the CVB does a terrific job attracting events to local venues that bring thousands of people into city restaurants.

Scott Plath, owner of Cobblestones on Dutton Street, said he is "horrified" about the prospect of the city eliminating its annual contribution to the CVB .

"Why would we not support a marketing arm that has a track record of success in providing benefits to the community?" Plath said. "That is short money. Surely, the CVB brings the city of Lowell more than $25,000 a year."

Richard Rourke, owner of Ricardo's Cafe Trattoria on Gorham Street, said he was not as angry about the meals-tax hike as other tax increases because he believed the new revenue would go to the auditorium, Merrimack Rep and the CVB . The work of those three groups, he said, helps bring him 65 percent to 70 percent of his business.

Rourke is livid that the city might renege on its annual contribution to the CVB .

"The CVB has done more to impact my business than any other organization in the city," Rourke said. "I need them to be strong."
-snip

I'm not clear, if and how any funding of the CVB went forward. In the FY12 budget process, this happened.

No cuts as council opens budget debate
The Sun (6/15/11)
(bold mine)
Elliott made several motions in an attempt to accrue savings, including reducing the city's $205,000 business/marketing development line item, which funds the Convention and Visitors Bureau, radio advertising, social-media exposure, marketing materials, assistance to new businesses and Small Business Week programming, by $100,000.

"Imagine running for City Council and not being able to market yourself," said Mercier. "We are talking about the CVB and the spin-off of the revenue that comes into the city. We are spending money to make money."

Councilor Kevin Broderick added in that order to be in a position to cut taxes, the city has to rely on new growth created by new businesses and residents moving to the city, lured here through marketing efforts.

The motion failed in a 6-3 vote with Elliott, Martin and Councilor Patrick Murphy in favor.

I'm inclined to believe that Lowell's subsidy was snuffed out, somehow. Maybe the 'fiscal watchdog' knows?

Back to Belanger - I'll bet you a skunk beer at Major's that this is where Belanger is heading. There will be a move to refund the CVB with your tax dollars!

So much for 'net school spending.' That ship has sunk!

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