Local News - August 2002

Lincolnton to beckon tourists

Authority funded by room tax

By ALICE SMITH, LTN Staff Writer

August 2, 2002 - The Lincolnton Tourism Development Authority wants to increase and promote tourism in Lincolnton.

The formation of the authority stems from a city room tax which went into effect July 1.

The two percent room tax was approved May 2. It will be levied in addition to the three percent county tax.

The authority will make decisions on how the tax proceeds will be spent. The money must be used to promote and encourage tourism.

The chairman of LTDA is Larry Mac Hovis. Hovis also serves on the Lincolnton City Council.

City Manager Jeff Emory will serve as vice chairman, City Clerk Donna Flowers will take on the role of secretary and Finance Director Eddie  Heavner will be responsible for finances.

Tatiana Gonzalez, general manager of Comfort Inn, is also serving on the committee as a representative of the hotel and motel industry.

The authority is a public body and falls under the open meeting laws.  The group will meet as it deems necessary.

Money made from the room tax will be kept in a separate account and will not be intermingled with other city funds.

After adopting a set of bylaws, the group agreed that it was premature to make any decisions until a fair assessment of funds generated from the tax can be made.

“I would just suggest that we take a few months and see what our proceeds are,” Emory said.

It was decided that the group would meet again around the beginning of next year.

Gonzalez commented that since Sept. 11, the Comfort Inn’s occupancy rate has dropped.

Usually the hotel is 80 percent occupied each month, Gonzalez said, but since the terrorist attacks in September, occupancy rates have fallen to about 60 percent.

“People are not traveling as much,” Gonzalez said. “But the summer months are picking up.”

Gonzalez suggested that local hotels and motels offer their budgets and records to LTDA, so the group could know estimated revenues.

Judging by how much the hotel brings in this year, Gonzalez can tell what will probably be made next year.

“Next year at this time we know how much we’re going to make,” she said.

The new sales tax has not affected customers’ decisions to choose her hotel. However, the tax did prevent Gonzalez from raising regular room rates.

Emory noted that he visited another city and was impressed with its convention center, which was paid for with the room tax.

He thought that could be a good idea for Lincolnton.

Lincoln County Commissioners currently decide how money from the county’s room tax is spent. Hovis said the county tends to use the funds on smaller projects, while he would like the city to focus on a larger scale.

“I would like to build money up to do something positive in a big way,” Hovis said.

Gonzalez is optimistic about the authority.

“I think it’s a great thing for Lincolnton,” she said. “We’re growing, and we need to do something.

“I’m glad to be a part of it.”

© 2001 Lincoln Times-News  

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