Well, the Town got what they wanted. It took years, but they finally prevailed. Formerly they were turned down for marketing district status because they are not a Home Rule community, and under Statutory Law, they can’t do this (create a marketing district and charge tax). It seems, however, that after nagging the State politico’s they got a partial agreement to create such a district.
What may disrupt the process is input from the voters. Yes, they actually have to ask the voters if they want such a district, and permission to charge a tax. In fact, they have to actually listen to the citizens in open meetings. Probably Baudek will impose a 30 second rule for comments, but at least you can give your name and address.
Why is this good for Estes Park? It isn’t. Why? Because the Town will ask lodging businesses to charge an additional tax and pay it to the Town to use for their abysmal marketing department; headed by the ever present and ineffectual Peter Marsh. You see, the Town used to spend about $2.5 million on marketing, but now they spend a million on salaries and are a little short. Of course they are not very good at marketing anyway, so giving them more money is like watching the Big Thompson River flow by. It just keeps a’ going along.
Now, as to lodging businesses, many are seeing a recovery after 9-11 and the fires, and have no desire to charge additional dollars that could impede their growth. A further tax on their guests could hurt them. Of course folks like Paul Fishman think otherwise, if they think at all, because it won’t require businesses downtown to charge the tax. If the Town really needs more money, maybe they shouldn’t have given away OUR $400,000 for the purchase of Hermit Park. They continually show that they are not good stewards of the purse strings, and should not be given more money, for any reason.
If the Town really wants to have a marketing district, and all the rest, they should promote Home Rule and let the voters decide the rules of play. Giving them more power and money without thoughtful and meaningful discussions is irresponsible. This is just one more idea that should be kicked to the curb.
Gov. Ritter signs Senate Bill 111 into law
Local officials say governor’s signature a signal for them to go to work
By John Cordsen
Senate Bill 07-111 is now law. With it, Estes Park officials have gained a long sought after tool in their marketing efforts. The legislation allows towns such as Estes Park, which operates under state statutory procedures, the right to collect a new sales tax that is specifically earmarked for marketing efforts. The legislation was sponsored by State Senator Steve Johnson (R-Fort Collins) and co-sponsored by State Representative Don Marostica (R-Loveland). Governor Bill Ritter signed it into law Thursday, April 19,
“I didn’t believe it until the governor actually signed it,” said Estes Park Mayor John Baudek. “This has been in the works for a decade.”
“This is something the Town of Estes Park and I have been discussing for several years,” said Senator Johnson.
The bill does not create a marketing district, something Mayor Baudek said the community already had the capability of creating, it does allow a marketing district to levy a lodging tax.
“Before the bill was passed, we could have formed a marketing district, we just couldn’t levy the tax,” said Baudek.
The Town still can’t arbitrarily levy a marketing tax or create the district. The decision to form the district and levy a lodging tax rests with Estes valley citizens and involves a lengthy process ending in a vote. That’s where Mayor Baudek said the real work is involved.
“This bill is just the first step in the whole process,” he said. “It is not the end of the game. We have a lot to do to make this work in the end.”
The earliest officials estimate a ballot proposal making it to the voters is the November 2008 election.
Prior to a vote, the creation process requires:
• a petition signed by more than 50 percent of the assessed value of commercial property within the district
• the local government body must hold a least two public hearings before taking action on the petition
• a vote of the registered electors residing within the district boundaries
• petitioners shall pay for all expenses related to creation of the district to include the required election.
The groundwork also includes steering committees and extensive public input. Town officials say residents would have to decide if they want a district and how it is to be operated.
Local officials envision a two percent lodging tax that they estimate would generate approximately $700,000 to $800,000 annually. This tax is paid through lodging establishments and is collected from visitors. Most resort communities across the state already collect lodging taxes. Local officials say the two percent proposal would bring the tax charged to visitors to 9.7 percent (Town sales tax 4 percent; state sales tax 2.9 percent; county tax .8 percent). Local officials note that this is still less than most communities who see their total tax exceed 10 percent.
The revenues can only be used for marketing efforts such as:
• organize, promote, market and manage public events
• activities in support of business recruitment, management and development
• coordinating tourism promotion activities
• capital expenditures associated with tourism information centers.
Conceptually, in the Estes Park area, the additional sales tax amount would be levied on the rental of rooms for less than 30 days.
“We’re eager to have visitors participating and help us build our marketing program” said Estes Park Convention & Visitors Bureau Executive Director Tom Pickering. “It will have a significant impact on all our marketing efforts, the Estes Park Conference Center, and other facilities such as the YMCA.”
The Estes Park Chamber of Commerce has applauded the Town’s efforts and support of the legislation as it worked its way through the State Senate and House.
“The Estes Park Chamber is delighted with the results of the Town’s success in its process toward creating a marketing district for the greater Estes Valley,” said chamber board member Paul Fishman, reading from a statement the Chamber planned to deliver last night at the Town Board meeting.
Mayor Baudek and Mayor Pro Tem Bill Pinkham attended the bill signing ceremony in the Governor’s State Capital office Thursday. The signing came about a month following legislative approval of thebill. Also in attendance were Town Administrator Randy Repola, Pickering, and members of Denver metropolitan daily newspapers and other interested parties.
During the Thursday event, Ritter, Johnson and Marostica spoke on the legislation. Johnson talked about the economic impact tourism has on the local community, noting that Rocky Mountain National Park is the top ranking tourism destination in the state. Marostica spoke of how marketing districts can benefit an entire region.
Mayor Baudek echoed those made in his requesting gubernatorial support of the measure.
“Estes Park for years has joined state initiatives in promoting Colorado’s tourism,” said Mayor Baudek in his letter sent in mid-March to the governor supporting the legislation. “With your signature on this measure, our ability to more closely partner with those efforts can be assured as we help build the state’s economic well-being and growth in the future.”
