Transient Lodging Tax Committee Minutes
July 20, 2023
Baker County Commission Chambers
Brian called the meeting to order at 9:00 am.
Members Present: Brian Vegter, Mandy Clark, Alysia Bowers, Beverly Calder, Sheryl Brandt and Tyler Brown.
Guests Present: Devon Colton, Bryan Tweit, Jessica Hobson, Ariel Reker, Becky Kaaen, Matthew Koppenhaver, Ginger Savage, Peter Johnson, Twila Lavery, and Shelly Christensen
Approve Agenda: Brian noted a change to the July 20th agenda to move Anthony Lakes Outdoor Recreation Association’s presentation directly following approval of minutes. Mandy moved to approve the agenda with changes. Sheryl seconded the motion. Motion carried. Beverly moved to approve the June 15, 2023 meeting agenda as presented. Sheryl seconded the motion. Motion carried.
Approve Minutes: Meeting minutes from May 18th and June 15th were reviewed. Beverly moved to approve minutes from both meetings as presented. Mandy seconded the motion. Motion carried.
ALORA Presentation – Peter Johnson
Peter asked the Committee if they have any questions regarding his email of July 14th regarding their proposal to increase Baker County’s lodging tax from 7% to 9%. Peter shared his regional average lodging tax review. He provided information from a 2018 report from Travel Oregon which lists lodging tax rates; Burns 9%, La Grande 6% plus 3% for Union County, Grant County 8% plus 3% City which includes State lodging tax rate of 1.5% resulting in 9.5%. ALORA would like to recommend Baker County raise the lodging tax rate to 9%, which is the regional standard. The increase of 2% additional tax would result in approximately $250,000 additional revenue to be used for tourism related infrastructure and promotion. This increase will not tax our local residents. The second part of their proposal will entail changing the Baker County Transient Lodging Tax Ordinance to broaden the Economic Development category to “Renewal and Development”. This will allow for more Economic Development dollars to be allocated where they will have more of a return for Baker County. The State of Oregon mandates that transient lodging tax revenue be split 70% to tourism promotion and tourism related facilities but the remaining 30% can be used for a wide array of things. Peter provided a listing of how other counties allocate their tax revenue. Currently Baker County’s transient lodging tax revenue is split 70% Tourism and Marketing, 25% Economic Development and 5% Administration. The proposal is to change the designation from Economic Development to Renewal and Development. Over the past five years, EDC expenses have been budgeted at 2.3 million dollars and only $9,000 of those funds have been used. This change would free up some of the revenue to be better spent and see a higher rate of return to Baker County. Brian asked how he sees the unused EDC dollars being spent if this change is made. Peter responded he has just started to dig into this, but as an example, upgrades could be made to museums. Mandy and Alysia shared the impact an additional 2% tax will have on their customers. Peter believes the additional tax will not negatively effect travelers that have come specifically to Baker County for the attractions but could negatively affect the number of travelers that are just passing through and only staying for one night. Beverly expressed her appreciation of feedback from lodging partners but also felt the additional tax would improve infrastructure, she sited public restrooms as an example. The 2% increase of tax would increase the number of nights stays once improvements are made. Peter pointed out that the additional 2% will also bolster what Devon, Jessica and Ariel are working on in promoting and advertising tourism. Sheryl suggested incremental increases, 1% this year and then another 1% in two years. Alysia stated she feels very strongly that this increase will negatively impact her business. Mandy pointed out if the hotel has to reduce their room rates to encompass the 2% tax increase so the traveler does not see the increase, the lodging tax revenue will then be reduced which nullifies the additional revenue from the 2% tax increase. Beverly agreed that there will always be travelers that get off the freeway for a look at Baker City. However, if the tourism infrastructures were improved, they would come back for a scheduled stay; this is what we have seen with the bike racers. Brian pointed out that allocating funds to lodging partners for improvements would be a way to utilize EDC/Renewal and Development funds. Brian asked Jessica and Bryan if they had additional funds how they would use those funds. Jessica sited improvements to the Visitor’s Center, ADA accessible bathrooms and improvements to the parking lot but would need time to think about other areas to utilize additional funds. Bryan indicated the additional revenue would give EDC opportunities that they haven’t had before. His recommendation is to create a plan to identify areas to spend money in a way to help the community better. Peter shared the goal of these changes is to streamline the request process for our community if there is a tourism related improvement that needs to be made. Ariel indicated additional funds could be used to repair downtown sidewalks and using funds as a one to one match on grants. Beverly indicated she would be supportive of a 2% increase in lodging tax and it would be easier if we had a plan to provide to lodgers explaining what improvements the increase will bring. Alysia shared right now is just not the time for an increase in the tax rate but that she would be more open to it if there was a plan for use of funds. Mandy agreed and pointed out lodging partners will have to deal with unhappy lodgers. Peter indicated they will have a plan put together and encouraged Committee members to look at the community as a whole and the return this will have once we can start spending these dollars and making changes that we need to. Consensus was that the Committee will revisit this topic when there is a plan. Mandy again voiced her agreement with Sheryl’s suggestion that a gradual increase would be easier to pass along to the taxpayer. Brian volunteer to stay in touch with Peter for a plan.
Grant Requests:
Baker County Fair & Rodeo Halfway – Melody Huff
Committee members present on June 15, 2023 recommended awarding $4,000. Beverly moved to award Baker County Fair & Panhandle Rodeo $4,000. Mandy seconded the motion. Motion carried.
Blue Mountain Bigfoot Festival/Squatch America – Twila Lavery
Committee members present on June 15, 2023 recommended awarding $2,500. Mandy moved to award Squatch American $2,500. Beverly seconded the motion. Motion carried.
Taste of Baker – Ariel Reker
Baker City Downtown is requesting $2,400 for their Taste of Baker event to be held October 7th. Grant funds will be used to purchase 10,000 tokens, four outdoor 4’x4’ banners and a marketing package from Elkhorn Media Group. Ariel indicated she has met with Jessica and gone over the application. This is the 27th year of Taste of Baker. In addressing self-sufficiency, Ariel stated token costs will be increasing .25 cents, which will go to Baker City Downtown. Businesses participating in Taste of Baker will continue to receive their dollar for dollar token exchange. The event is growing by 500 attendants each year since BCD has taken over. After some discussion, Brian moved to award the $2,400 request. Sheryl seconded the motion. Motion carried.
Blockbuster Event Application – Jessica Hobson
Jessica reported that the East-West All Star Shrine Football Game applied for a $10,000 Blockbuster Event grant. Funds were allocated to this event in the 2023-24 budget. A copy of the application was provided and a presentation will be given within 90 days after the event.
Grant Presentation:
Brownlee Crappie Shootout 8 – Jared Rivera by email
Jared reported another successful event. The weather was beautiful for the event but the fishing was not as good as in prior years, possibly due to water levels. Registrations were up to 81 with 78 actual participants. Jared detailed species caught and listed winners by category. Event attendees were from Oregon, Washington and Idaho. Overnight stays, as a result of the event, totaled 264 day/nights spent in Baker County. The event raised $2,815, which was donated to CASA of Eastern Oregon. Future plans for the event include increasing the number of participants, streamline the entry fee intake and changes to kayak launching.
Becky Kaaen reminded the Committee that the City of Richland does not participate in Baker County’s transient lodging tax collection. There was some discussion about grant requests from Richland and the history of an Intergovernmental Agreement with the City of Richland.
Tourism Marketing Update – Jessica Hobson
Jessica reviewed posts that she has boosted for PineFest, and Baker City Motorcycle Rally, noting 301 FB shares. There were approximately 1,500 riders who attend the rally and Jessica felt it was a really good event. The Miners Jubilee post reached 22,796 on FB and 23,724 on Insta and had 351 shares. She boosted the Baker City Broncs & Bulls post for 33 days and is currently boosting the East West All Star Shrine Game and the Blue Mountain Bigfoot Festival. She has been printing posters for the Shrine Game and Bigfoot Festival. Facebook likes are currently at 15,779 and 3,369 Insta follows. Jessica reviewed other posts and upcoming events. She also ran ads in Go Magazine for the Miners Jubilee and Shrine Game. Jessica attended the Baker City Cycling Classic, Brian reported over 200 riders. She said the parade and rodeo were packed and the fireworks were awesome. Miners Jubilee was amazing with lots of vendors in the park and gravel lot across Campbell Street. Broncs & Bulls, Friday night Bronc ride was standing room only. Jessica talked with Shriners to discuss promoting the game. She also met with Blue Mt. Bigfoot Festival event organizers multiple times and is doing a huge social media push, printing posters and ads in Go Magazine. She met with Ariel to discuss Taste of Baker for a big social medial campaign and is helping pay for half of the radio ad campaign. Jessica also met with Whit to promote The Great Salt Lick event by printing posters, Go Magazine ads and social media campaign. She suggested advertising Taste of Baker as a multi-day event by marketing it with First Friday. Jessica has helped update the information kiosk at the Visitor’s Center. She met a new business owner on Main Street, Huck Phinn is a leather works store and she is helping organize a ribbon cutting. The EOVA Board re-elected Jessica for another 2-year term.
Visitor Services Update – Devon Colton
Devon distributed her June 2023 report to Committee members. The Center saw 207 visitors passing through, 212 overnight stays, 36 residents, they saw a huge increase of vehicles charging at 453, six visitor/relocation packets were mailed, 122 visitors coming in to use the restroom, 200 travelers requesting/accepting information, and 32 visitors doing Chamber business. The new designs for the information kiosk panels are up and they have received lots of compliments. They worked on last minute Miner’s Jubilee questions & concerns. An accessibility study was done as part of a project with EOVA, the Center was chosen as a location for their study. They should be hearing back from them on their findings. The Greater Bowen Valley Fire District has asked if the Chamber has the capacity to install a fire level sign. Visitor Gift Shop Update – T-Shirts have been ordered and new hats are coming in soon. Books sales have been very successful and have sold out several times. It was brought to Devon’s attention that the Center has received a five star rating on the Plug Share Ap for their restrooms, friendly staff and coffee/candy shop. Demographics of visitors to the Center in the month of June were listed. The Visitor Center Profit & Loss Budget Overview was reviewed. Devon pointed out Merchandise sales at $753.95 is way over the budgeted amount of $125. Devon stated she felt they had a very successful Miners Jubilee and it was a good learning experience.
Baker City Downtown: Ariel Reker
Ariel reported the contract for office space between BCD and Baker City has finally been signed. She has been working to clean up and update the space. BCD has launched the community views windows project with ads in vacant storefronts on Main Street. Renovations have begun on the Mason’s building the windows will be preserved as well as doors. This work is being done through a grant award. Sponsor and vendor packets for Taste of Baker are being distributed. BCD is working to get a mural painted at the Orpheum Theater construction site. The Court Street Plaza project is ready to seek grant funding and BCD is putting together a grant writing committee. There is a Wine Walk tonight. Attendance has been up and an average of 15 businesses are participating. Shriner’s windows are being organized. BCD has conducted a survey of downtown businesses on the impact of street closures. Results will be published in the next BCD newsletter. So far, surveys received show positive feedback from businesses when preplanning and notice is given. Jessica asked if there will be more Wine Walks in the future. Ariel suggests wine walks in warmer months March, May through September, and November.
EDC Update: Bryan Tweit
Bryan commended Jessica, Devon and Ariel for all the work they are doing to tremendously improve Baker. He shared his experiences at Jubilee and complimented Alysia on her remodel. The City of La Grande, as part of a community-funding project, gave away $300,000 to a hotel to upgrade their facilities. With increased revenue from TLT Baker County will have more options to do that. Due to an increase in lodging rates results show occupancy is down but revenue is up. Valet parking, built by the Geiser, is available for any business that needs additional parking. There will also be a universal public charging station available. Baker County has 60 some people receiving unemployment benefits and a couple hundred job openings. The hospital birthing center tentatively will stay open if they can get a couple of nurses. The proposal Bryan wrote to the legislature was approved for $2.2 million for road and utilities at the new event center site.
The following was provided by Beverly after the meeting as a correction to Bryan’s statement “The City of La Grande, as part of a community-funding project, gave away $300,000 to a hotel to upgrade their facilities.”
The City of La Grande has an annual call for projects to improve the Central Business District (using Urban Renewal Agency funding from increased property tax revenues not TLT monies). The agency has allocated $350,000 annually for this competitive grant program for the last several years. Total grant funding for any single project is a 50% match for eligible project costs up to a maximum award of $75,0000. This year the program received 9 applications, one of the funded projects was a hotel rehabilitation project that requested and received $75,000 towards a project scope of work of $315,000.
Hells Canyon Update: Becky Kaaen
Becky provided the Committee with two issues of the Hells Canyon Journal. The 4th of July pie auction fundraiser was very successful and raised enough money to buy fireworks for next year. There was a free solar energy workshop held in Halfway. Pine Eagle FFA members visited Washington DC. Pine Valley 2050 is facilitating a Mentor Match Teen Entrepreneur Program. Cow Camp offers quick and convenient cowboy cooking. Halfway is working to make their public restrooms ADA accessible.
Crossroads Art Center – Ginger Savage
Ginger provided a report to Committee members outlining information on the Towards Home event coming to Baker City May 24th – July 14th of 2024. Ginger would also like to be report to the TLTC each month and asked to be added to the monthly agenda.
Financial Reports: Shelly Christensen
Shelly shared financial reports for the current fiscal year-to-date which, show amazing revenue results. The current quarter collections are not yet complete. There was some discussion around how many visitors were in Baker City for the 2017 solar eclipse. There will be another eclipse on October 14th. Baker City will be in 80% of totality. There was discussion around the Marketing Budget contingency fund and how funds can be used. Tyler recommended reviewing the strategic plan for direction on how to spend funds. Mandy suggested some contingency funds be used to supplement ALORA’s proposal with a smaller tax rate increase. Tyler suggested reviewing the strategic plan to consider use of contingency funds toward a priority in a fall work session. Shelly will compile lodging establishment surveys and provide results to the Committee at the August meeting.
Review Volunteer Applications
Volunteer applications from Matthew Koppenhaver and Heather Jorgenson were reviewed. Beverly moved to recommend Matthew Koppenhaver be appointed to fill the at-large vacancy. Mandy seconded the motion. Motion carried. Shelly will submit a staff report to the Commissioners for the Committee’s recommendation of Matthew’s appointment.
Work Session Items
Beverly and Tyler worked on a simplified application for Blockbuster events. Shelly will create the application based on their rough draft and provide a copy to Committee members for their approval at the next meeting.
Review recommended changes to draft Bylaws and Strategic Plan will be addressed at a later date.
Citizen Participation:
Matthew shared fuel prices remain the same but there has been an increase in the cost of fuel additives. Sumpter flea market vendors shared better sales in the last few weeks than the beginning of the summer season and saw more sales on Sunday and Monday of the 4th of July event. Matthew shared the number of passengers on the Sumpter Valley Railroad for the past three weekends.
Staff Comments:
Shelly completed recommended changes to the Intergovernmental Agreement between Baker County and the City of Halfway. She asked for the Committee’s approval to submit recommended changes to County Commissioners and the City of Halfway. Beverly moved to submit the recommended changes. Brian seconded the motion. Motion carried.
Committee Comments:
Mandy – Rob Hill, KGW’s weatherman, will be broadcasting live at the Geiser on Monday, July 31st. She gave an update on Geiser’s valet parking lot on Resort Street. The writer for Ag Mag is planning a trip to Baker and wants to write a few articles on the Baker area. Mandy shared the Jr. Rodeo and Haines Stampede Rodeo were successful events. Mandy talked with Bryan about grant opportunities for improvements to the facility.
Beverly – La Grande is going to move their Crazy Days event. The event has been the same weekend as the Miner’s Jubilee because of the car show. In the future Crazy Days will be held before Jubilee.
Tyler – shared he had breakfast with the Governor this morning and discussed natural resources, tourism, and staffing challenges. He also shared that for the first time in 25 years Barley Browns beer was served in the beer garden during Miner’s Jubilee.
Brian – Wayne Britt, Program Director for KRBX, attended a concert @ Churchill; he was impressed with the BHS band and expressed interest in having them on a program. Brian reported the reputation of Baker City is improving due in part to, non-paid representation received by performers’ experience. Brian noted an increase in tickets sales to Idaho and is anxious to hear results from Pine Valley’s music festivals. Brian reviewed events and concerts coming to Churchill. He provided an update on work to get KBZR on the air.
Alysia – visited with a guest who had a positive impression of Baker and the tourism aspect, but didn’t understand why Baker wasn’t more on the map.
Sheryl – Sumpter has been busy. A Can-Am Maverick group will be coming to Sumpter over the weekend and the following week. They have booked the entire RV Park and other areas in Sumpter.
Next Meeting:
August 17, 2023 @ 9:00 am
Meeting adjourned at 11:59
Respectfully Submitted: Shelly Christensen