Could event fees for Chamber of Commerce events come to Highlands?
Highlands’ town board met last week and among the discussions about the budget, hardware, and maintenance, the lease issue of Highlands’ Chamber of Commerce brought over 30 minutes of back-and-forth.
The Town Board had requested an amendment to the Chamber of Commerce’s lease in order to support the maintenance of bathrooms at Kelsey-Hutchinson Founders Park and Town Square. The building was given to the Chamber along with a one dollar per year lease. Members of the Town Board are looking to change that dollar per year fee to a contractual lease to allow maintenance on the restrooms and further upkeep.
Tricia Cox, chairperson of the Chamber’s Board of Directors, gave public comments against the proposed lease, requesting the Town Board uphold the dollar per year lease the Chamber has kept for the past 10 years.
Cox said the Chamber does not have a set income and cannot predict income in the future. Cox came with a proposal that she said could inject $60,000 to $70,000 into the Town of Highlands budget for them to do what they would like, whether that be bathroom upkeep or other services.
Cox proposed adding event fees for all Chamber of Commerce events to cover maintenance expenses. Cox’s proposal would include a schedule of minor and major events that would incur a fee, such as Chamber concerts, the Fourth of July festivities, and/or the Christmas tree lighting.
Cox said the Chamber typically hosts over 50 events a year with no anticipation of changing that. Through these event fees, Cox believes the Chamber would be able to provide ongoing financial support to the town without binding the Chamber to a contract they may be unable to meet.
“We want to work in the spirit of accomplishing what you’re attempting to do - pay for maintenance of the bathrooms - we just want to do it in a way that makes sense for our organization,” Cox said.
She also said the Chamber could provide support to other organizations that host over five events on town property through grants.
Commissioner Amy Patterson disagreed with funding maintenance from event fees, saying events and associated fees could fluctuate too much. She said a contractual agreement would be the only way to ensure the money and that it should be simpler for both parties.
Commissioner Brian Stiehler, who said he was the Chamber chairperson when the Chamber inherited the building, agreed the Chamber funds and occupancy dollars should go to supporting the town and infrastructure, but he disagreed with it being via monthly rent.
Stiehler said the Chamber fixed up the building but now the town is coming to collect money from the Chamber’s budget the Chamber may not have. He also said a lease could limit partnership.
“With a lease like this, we’re limiting ourselves on the two organizations working together for the betterment of Highlands,” Stiehler said.
Kaye McHan, executive director of the Chamber, explained how the Chamber receives its funding. The Chamber’s actual budget, which is a couple hundred thousand, is made up of business member dues, which can vary per year and are not substantial enough to support a monthly lease. The Chamber also runs Visit Highlands as part of the Tourism Development Commission. Visit Highlands is funded by occupancy tax.
McHan said that under a contractual lease, the money would have to come from the Chamber side since the Chamber of Commerce is the legal entity. She said the Chamber portion wouldn’t be able to support the rent.
McHan and Cox were hoping the responsibility could be shifted fully to the Visit Highlands side and paid from occupancy tax. However, under current legislation , Visit Highlands is unable to do that, as they are not the legal entity.
“We’re trying to give you money. We just want to make it easy,” McHan said.
The town recommended the town attorney, Bob Hagemann, contact the county attorney to see if the Chamber could switch the burden of payment to the occupancy tax side via Visit Highlands and its budget.