By Michael Howell
The Ravalli County Commissioners approved the creation of a Tourism Business Improvement District (TBID) last Wednesday, May 18 despite the fact that a majority of commissioners present expressed disagreement with the idea.
Rick O’Brien, director of the Bitterroot Chamber of Commerce, told the commissioners that the Chamber had been working for three and a half years to create such a district. He said that the local district was needed, in part, because the county did not benefit fairly from being a part of Glacier Country, the regional district of the state’s tourism promotion program supported by the Bed Tax. He said that the county contributes about $200,000 in bed taxes to the regional district, but only $6,400 comes back to Ravalli County.
“The Glacier Country budget is about $900,000 and we get $6,400. Is that equitable? I’d say no,” said O’Brien. He noted that the vast majority of local tourism related businesses supported the idea of creating a local TBID and only two out of 86 businesses have protested the tax district.
“That’s not a significant protest,” said O’Brien.
Once created, a board of trustees will be appointed by the county commissioners. The commissioners would also approve the annual budget of the district and would have to approve any changes to the tax as well. Once approved the district lasts for 10 years. The county collects a $1 per bed per night tax from each business in the district and the district board, and with commission approval then spends the money on tourism related promotions that would benefit all the businesses.
Commissioner Matt Kanenwisher said that he was not willing to impose a tax on any business that is not necessary. He questioned whether the creation of this district was necessary.
“Why can’t you just do it yourself,” said Kanenwisher. “Why can’t you just form an organization and collect the money from amongst participating members and just do it?” He said the only reason he could see to form a tax district was to force the businesses that didn’t want to participate to go along.
Kanenwisher did have concerns about whether the commissioners could decided not to approve the district even though a petition had been submitted that met the requirements of state law. The law reads in that case that the commissioners “shall” create the district, meaning that there is no option not to do so.
The County’s civil attorney, Dan Browder, had a different take on things, however. He argued that once the county received protests to the petition that it was in their jurisdiction to determine whether to approve the district or not based on an evaluation of those protests.
The county received two protests out of a total of 86 businesses that had been included in the proposed district. Eighty-four out of the 86 businesses in the district signed on to the petition. The county actually received three protests, but one was from a person outside the district. The two business owners to protest were Michael Nelson of Rye Creek Enterprises and Tex Irwin of the West Fork Lodge.
Commissioner Suzy Foss said that she, too, was reluctant to impose a tax on any business. She said that she had heard from some business owners who want to work as an island at their own business and don’t want to participate with other businesses in any promotions.
Commissioner Ron Stoltz was also critical of the idea, stating that it suffered from the same defects as the state bed tax and may or may not benefit any particular business.
In the end, however, despite the suggestion by legal counsel that the law would allow them to deny formation of the district based upon the protests received, the majority of commissioners decided to approve the district based on their own understanding of the law.
Kanenwisher, who openly opposed the idea of the district, indicated that he would vote for it because his reading of the law and the word “shall” left the commissioners no choice but to approve a district if a petition was received that met the qualifications defined in the law.
“I’ve not heard anything clear in the law saying was can not approve this district, but I’ve heard clear things saying that we have no choice,” said Kanenwisher.
The resolution establishing the TBID was approved on a 3 to 0 vote. Commissioner Greg Chilcott was absent and Stoltz abstained due to a lack of clarity on the legal issue.
In other business:
• The Commissioners approved placing a bid out for two well pumps to be used at the Fairgrounds. An initial estimate of the cost of pumps was $7,000. The pumps will be used in the irrigation wells that were installed last fall and serve to irrigate the lawns and provide water to the livestock building for animals. Drinking water throughout the park is provided through the City of Hamilton’s water system.
• The Commissioners also approved a change in personnel management at the Fairgrounds to allow for 30 hour weeks year round for some employees instead of 40 hours for nine months. The Fair Board made the recommendation to the commissioners. Fair manager Debra Rogala said that with the addition of the First Interstate Building the activities at the fairgrounds requiring cleaning and maintenance have extended the work season into the winter while improvements in the irrigation system portend a less intensive summer operation so it made sense to extend the maintenance operations to more of a year round schedule
• Commission Chair J. R. Iman attended a meeting with State Department of Transportation officials, members of the Victor Highway Improvements Focus committee, members of the Ravalli County Park Board, and the company doing the landscaping along the highway through Victor, to hear about the latest developments concerning highway amenities through the town. Iman said that a lot of things that people thought they wanted 10 years ago, when plans were first made, are not really very feasible. He said that lessons have been learned from what happened with the medians in the highway as it passed through Lolo and Florence. He said the county has learned the hard way that commitments made by community groups do not always survive over time. According to Iman, the trees to be planted have been changed because a disease is sweeping through the type of Ash originally chosen. He said the improvements will not include any irrigated lawn, but will be all native grasses and would be mowed at most only once a year to aid re-seeding. Iman said the trees will be irrigated and if the Victor Garden Club or some other group wants to maintain some potted plants at appropriate spots that these could be incorporated into the same irrigation system. Iman said the highway improvement project through Victor was 100 percent on schedule. “It’s coming faster than you think,” he said.