HomeMy WebLinkAboutCommunity Center - CorrespondenceKenai Chamber of Cenamerce
Plox 997
Kenai, Alaska 99G11
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(907) 283-7989
M E M O R A N D U M
TC: Members, Commw~tfty Center Committee
FROM: Bcb Williams, President
Kenai. Visitors & Convention Bureau
DATE: April 24, 1986
We have reviewed a proposal to build the Civic Center/Community Center with
bonding a.nd utilizing a SI bed tax to support its operation. We ace concerned
about this proposal fox' the fallowing reasons;
- The proposal completely ignores the need to adequately fund a Visitors &
Convention Bureau for thepurposes of promotion, providing printed materials/
brochures, informational services, etc. for. residents and visitors alike.
- The primary support :for the Center is being "shoulderedf0 by the bed tax
when the rea]. benefit of such a Center will be minor dux-ing the time it
will take to develop a convention trade. The convention trade will pro-
dide the revenues to enhance our Local business economy.
- The Center is being designed "full size" far present civic needs, while
the immediate and short term future needs for V&CB are comparatively much
less.
We are grateful for the $17,000 contract amount the City annually grants the
Visitors & Information Center for local information anal visitor services. This
has been a good value for the City as the conservative actual co>ts of providing
this service is over $30,000+ per year. 'Phe original concept of abed tax as
envisioned by the V&CB was to utilize 1.00 of a 39 tax to fully fund the V&CB
a.nd deve7_op a viable information. center, visitor and tourist center and a healthy
conventi<n trade in Kenai. The current proposal directs that 100 of the bed
tax wou7..d be used. to fund the operations of the Center,
We remain very supportive of the; City`s plans to utilize state funds to construct
the Center tin Kenai. The Center is an investment of oil tax dollars that will
enable Kenai to provide a meeting place for its citizens and develop a convention
industry. However, the opportunity to use a State grant to build the Center
appears to have declined wiL'h the price of oi.l, Perhaps this Committee should
review the possibility of a '°change: in need°1. Under the apparent' and new
financial situation, a smaller meeting f.aci].ity designed fox' future expansion
could possibly provide a start for community needs as well as a start for convention
growth. Hopefully, the convention trade would develop into supporting a ful..l-size
Center as well as assist in the support of the community usage.
MEMORANDUM
Pagel
But -- we do recognize there does exist a need in our Community for a full-sized
Center -- and, the sooner the better? However, that need should be considered
and supported on its own merit. Sf. the Council and our citizens so desire and
are wi7.ling to support a Center, we believe it should be viewed with no support
from the convention Trade.
If this view point sounds somewhat avaricious to the members of this Committee,
let us explain our view as a future investment f.or. Kenai. (A view similar to
that of the City of Kenai, i.e, projects such as the FAA Facility and the HL'A
Service Center.) The City builds and supports a Center f.ar use by its citizens.
The Center is also availahle for "lease°' to convention groups. The income to the
City is resultant from Center fees and sales taxes from rooms, restaurants, and
retail. The citizens find the costs they were expecting to pay for the Center
is much less than projected and will continue to decline as convention activity
grows. Ia this view, 100 of the bed tax is "invested°' in the promotions needed
to attract the Ci.ty's future income.
As the initial use of the Center by convention/meeting groups is almost zero i.n
the beginning, it would appear unwise to utilize the bed tax "investment'° funds
to aid in the operating budget of the Center.
If a "stand-alone", full-sized Center ca.nnat be supported, then perhaps it is
time to consider alternatives that will. provide a growth into the vision we all
have for both the Community and the convention industry.
Thank you for your considerations.
Robert F. Williams
President
KENAI VISITORS & CONVENTION BUREAU
CC: Members, ICena.i City Council
Bill Brighton, City Manager