TOWN OF MAGGIE VALLEY

SPECIAL CALLED BOARD OF ALDERMEN MEETING

MAY 24, 2006

MINUTES

 

Members Present:         Aldermen:         Roger McElroy, Saralyn Price, Mark DeMeola and                                                                  Phil Aldridge (5:30 p.m.)

Staff Present:                Manager Tim Barth and Town Clerk Vickie Best

Others Present: Approximately 30 people

 

 

Meeting Called to Order

Mayor Pro-Tem McElroy called the meeting to order at 5:17 p.m. in the Town Hall Boardroom.  The purpose of the meeting is to address issues concerning Tourist Development Authority (TDA) funding to Maggie Valley for festivals, etc.  Mayor Pro-Tem McElroy explained that it is his understanding that no one has seen the marketing plan that TDA wants to implement. 

 

Mayor Pro-Tem McElroy opened the floor for public comment.

 

Carol Burrell, owner/operator of Creekside Lodge: Ms. Burrell stressed the impact this issue will have on Maggie Valley.

X Haywood County and Maggie Valley have lost the amusement park.

X TDA will no longer fund events

X The TDA budget made “flash cuts” without warning

X Maggie Valley is the leading municipality in Haywood County occupancy tax collection

X TDA staff and several of the Board members do not release information to the entire Board i.e. the Maggie Valley members.

XPeople paying the occupancy tax deserve the truth   

X TDA should not be involved in playing political games

X The motel/hotel owners had no clue what was happening until they read it in the local newspaper.

 

Ms. Burrell felt there were four avenues that could resolve the situation.

            1. Each municipality could set up an escrow account for occupancy tax to be     deposited.

            2. The County Commissioners could return the tax dollars back to the collecting            corridors

            3. TDA could fund the corridors at last years level until this is resolved.  As it     stands, after July 1, 2006 there will be no funding.

            4. The win/win situation would be to provide seed money at a lower level for the            festivals.  Then the chambers could begin seeking sponsorships.

 

“The people must unite and remain active in the cause.  Being lethargic has gotten the hotel/motel owners where we are today.”  Ms. Burrell encouraged the audience to “start a letter writing campaign, talk with your commissioners, and take this to Raleigh if necessary.”

 

James Carver owner/operator of Maggie Valley Restaurant and a TDA Board member: Mr. Carver confirmed that “not a word about the budget” had been shared with the full committee.  All business discussed should be shared with the full Board. “This is the second time I have been blind-sighted”.  Some TDA members have tuned into micro-managers while others remain left out of the loop.

 

Joe Sutton owner/operator of The Lodge in Waynesville: Mr. Sutton previously had a letter published in the editorial section of the Mountaineer [local newspaper] stating that the entire TDA Board and employees should be fired. Mr. Sutton felt the taxpayers are now in gorilla warfare. “There is no way we can win this war without the help of each and everyone standing united. The TDA has got to be stopped.”  Mr. Sutton also agreed that there are many questions, but no one can get any answers. Mr. Sutton agreed with Mr. Reece about analyzing the books. “If TDA has nothing to hide they should be willing.  As Ms. Burrell previously mentioned, Mr. Sutton felt the motel/hotel owners should withhold their occupancy tax as a bargaining chip.

 

Teresa Smith President of the Maggie Valley Chamber/ Maggie Valley Club: Ms. Smith has continually asked for the TDA marketing plan. The only plan she has been able to obtain is from 1996. The law requires 15% of the funding to go toward administration while the remaining 85% is to go toward advertising/marketing.  The TDA is not following the law.  The TDA has CD’s from past years worth thousands of dollars.  All TDA board members are required to live within the county.  One member lives in Buncombe County.

 

Alderman Price questioned why policy and procedures for operation are not in place as required by other official boards dealing with tax dollars.

 

Dan Massey a member of the Maggie Valley Parks, Recreation, And Festivals Advisory Board: Mr. Massey explained that there are a lot of big things ahead and the last thing this Town needs is to be back in the newspaper with negative press. Mr. Massey asked the Council to be careful of what they are getting involved with and please do their fighting legally.

 

Otis Sizemore Owner/Operator of Homes & Hide-a-Ways Window Treatments: Mr. Sizemore felt coming to the Maggie Valley Board of Aldermen was not the right forum. “The Aldermen are not to fight your fight.”  Mr. Sizemore felt the hotel/motel owners should address the County Commissioners and then go to the Legislators. “Setting up a TDA is the worse thing that could happen to the County.” Mr. Sizemore warned the audience that if they decide to hold the occupancy tax they would go to jail. Mr. Sizemore has served in municipal government and advised the audience to “pound on these people, get on the agenda and go in big, mad, and loud.”

 

Jay Ring General Contractor/ Ring Construction/ Zoning Board of Adjustment Chairman: Mr. Ring felt this was not the Town’s responsibility. This issue should be taken to the County level, not the Town.  The Town is here for the taxpayers. Mr. Ring questioned why the Town was calling the special meeting.  “Maggie Valley is 55% residents, not business. Tax dollars are for infrastructure.”  

 

Jim Redmond Owner/Operator of Leatherwood Cottages: Mr. Redmond questioned, “Going global” to advertise Haywood County. “This theory is crazy unless there is an agenda that we don’t know about.” Mr. Redmond agreed that if the motel/hotel owners decide to hold the occupancy tax in an escrow account, that a lawyer and an accountant would need to be “on board”. Mr. Redmond felt there has not been a good plan from TDA or the Chamber in the last fifteen years.  Mr. Redmond encouraged everyone working together to promote Haywood County. Mr. Redmond had talked “with the powers that be” about bringing 64 girls baseball teams to Maggie Valley for a tournament as well as a Heritage Park with clap board buildings and people selling and making their goods on site. Mr. Redmond agreed, “People have got to stand together”.

 

Mandy Hartline Owner/Operator of Stony Creek Motel: Ms. Hartline has owned her motel since 1982 and felt that once TDA came in, everything went downhill.  The Moonlight Race use to be televised. Now the Moonlight Race has been moved to the 3rd weekend in July causing a conflict with the Cherokee Blue Grass Festival. Ms. Hartline felt it was a mistake when the 800 number was removed from the Chamber. Ms. Hartline will stand with the other motel/hotel owners if it means taking the issue to Raleigh as discussed.  “Keep the money out of their [TDA] hands.”

 

Shirley Pinto writer/ distributor of The Tourist News provided a history of Haywood County getting room tax.  Previous Town Manager Al Matthews was instrumental in getting the bed tax. “As for going global, Maggie Valley is known world-wide. Maggie Valley is an enigma”.  Maggie Valley is the drawing card for Haywood County. If you can get tourists to Maggie Valley, then you can get those people to visit the rest of our beautiful county. North Carolina does not back tourism as Tennessee does. Tennessee is very tourist oriented. Gatlinburg has winter tourisms the same as summer. There are no billboards leading anyone to Maggie Valley.  TDA did away with all Maggie Valley billboards. “People come to see the faceless lady.  We are the gateway to the Smoky Mountains.” 

 

Champion Paper donated money to the top winners of the Moonlight Race. The Moonlight Race was in the top twenty-five races in the United States. After the closing of Champion and the decrease in prize money, the race began to falter.  With people pulling together, the Moonlight Race could be in the top rated races, once again. 

 

Wade Reece Owner/Operator of Quality Inn and TDA Board member.  Mr. Reece has been unhappy with the TDA operations for several years.  TDA has a budget of $800,000 and the money is not being spent effectively. There is no oversight into the TDA Director’s spending. Mr. Reece also stated that his request to see a marketing plan for the last ten years has been denied.  Mr. Reece, as a TDA board member, cannot find out when the finance committee meetings are held. Maggie Valley Representatives are purposely “left in the blind”. Mr. Reece asked that Town Council request a meeting to be called by the Council of Government to discuss the issue and then go to the County Commissioners.

 

This is the Town of Canton’s 100 year Anniversary and they were denied funding.

 

The Aldermen agreed that this is a crisis for Maggie Valley and the surrounding municipalities attempting to have events and bring people to the area.  The budget being cut without warning puts everyone in a bind for the upcoming season.

 

ALDERMAN ALDRIDGE MADE A MOTION TO ASK THE COUNCIL OF GOVERNMENT TO CALL A MEETING TO DISCUSS THE TDA FUNDING.

MOTION CARRIED UNANIMOUSLY.

 

Manager Barth read Mayor Jo Pinter’s resignation letter.

 

Alderman McElroy stated that the Board wishes the very best for Jo.

 

A special called meeting for Friday May 26, 2006 at 9:30 a.m. was scheduled to appoint someone to serve out the term of Mayor, elect a Mayor Pro-tem, and discuss the Alderman vacancy selection process.

 

ON MOTION OF ALDERMAN ALDRIDGE, WITH ALL IN FAVOR THE MEETING ADJOURNED AT 6:34 P.M.

 

 

 

 

____________________________

Mayor Pro-tem Roger McElroy

 

 

 

 

____________________________

Vickie Best, CMC, Town Clerk