Published: January 21, 2008 12:08 pm      

Is it tourism?

By Samantha Swindler

Managing Editor

Whenever a visitor stays the night at Cumberland Falls State Resort Park, the Williamsburg-Whitley County Airport receives 4 percent of the cost of a stay.

And although that’s been the policy for nine years, it may not be legal.

Since 1999, Whitley County has allocated its transient room tax revenues to the Williamsburg-Whitley County Airport — but an informal opinion from the state attorney general’s office states the tax is improperly instituted because the county has no tourism commission.

According to the county ordinance established Feb. 11, 1999, a commission was not formed because “the transient room tax revenues are not large enough to justify retaining any portion of the revenues for administration by a tourism and convention commission.”

However, a tourism commission does not require paid board members or a salaried director to operate.

In the ordinance, the county assigned all transient room tax revenues, past and future, to the Williamsburg-Whitley County Airport Board Inc. “for the purpose of financing the cost of acquisition, construction, operation and maintenance of an airport in Whitley County.”

The 4-percent transient room tax is paid by the usage of hotel rooms in the county. Cumberland Falls State Resort Park accounts for nearly all of the county’s transient room tax revenues. According to park records, Cumberland Falls paid the county $50,995.15 in transient room taxes in the calendar year 2007. The only other contributing entity in the county is Sheltowee Trace Outfitters, which offers rafting and canoe experiences and has several on-site cabins. Other hotels located within Whitley County are in Williamsburg and Corbin city limits, and their tax revenues are given to each city’s tourism commission.

Whitley County Treasurer Jeffery Gray said the room tax brought in $48,012.02 for the fiscal year from July 1, 2006 to June 30, 2007 (which is why it differs slightly from the amount paid by Cumberland Falls). According to the 2007-08 budget posted on the Whitley County Fiscal Court’s Web site, the county budgeted $53,200 in revenue from the “tourist tax,” as a line item for “recreation and culture.”

That money was given to the airport.

“The legislation was likely improperly enacted because there was not a creation of a tourism commission,” said Allison Martin of the Kentucky Attorney General’s office in her informal opinion.

Martin cited a 1974 formal opinion of the AG regarding a question from Scott County.

“The fiscal court must establish a recreational, tourist and convention commission in order to levy the tax provided for in KRS 83.350,” the opinion states.

“We have officially commented on it in the past, and it is our opinion counties cannot issue a transient room tax without a tourism commission,” Martin said. “That being said, a definitive action would have to come from the circuit court in a declaratory judgement action.”

While the AG’s office can issue formal and informal opinions, it does not have authority to compel the fiscal court to action. The county would have to be taken to court in order to enforce the AG’s interpretation of the Kentucky statute.

TOURISM VS. ECONOMIC DEVELOPMENT

Even if a tourism commission were established by the county, the funds might not be eligible for use by the airport.

“What that money is for is for marketing to bring more people in to increase the revenue in their county. It’s one of the tools that fiscal courts have and cities have to try and balance out the economic picture for their community,” said Elaine Wilson, past 2007 president of the Kentucky Association of Convention and Visitors Bureaus.

“Typically airports aren’t (eligible),” she said. “Typically, your money is spent through your tourist commission through marketing and promotion to encourage people outside the state to come to Whitley County to spend their money... That money is meant for marketing and it’s clearly marked out in the statutes, that’s what the money is to be spent for.”

Wilson said she knew of no other counties that used tourism money for an airport. When asked if an airport could be considered a boost to tourism, Wilson said, “If most tourists come to Whitley County by airplane, then I would say that would be true.”

According to KRS 91A.350, tourist and convention commissions can be formed “for the purpose of promoting and developing convention and tourism activities and facilities.” KRS 91A.390 states transient room taxes are to fund the operations of a tourism commission.

“It is a definite tourism tax, and it is meant for tourism promotion,” Wilson said.

But Dan Dickten, airport manager, said the airport could be a tourist attraction.

“We get quite a few people who come into the airport for tourism,” he said. “I couldn’t give you a solid number on that. We’re not tracking that, but it does play a part in tourism.”

The mission of the airport, provided by Dickten, never mentions tourism but states that its goals are to “encourage the growth of industry in Southeastern Kentucky to boost our economy. Educate our community about aviation. Provide a quality airport facility to our users. To have the safest and most efficient airport in the Southeastern United States.”

Although state statues differentiate between economic development and tourism funding, former judge-executive Mike Patrick, who was in office when the transient room tax was dedicated to the airport, saw no difference between the tourism and economic development that could be gained by the airport.

“Tourism is economic development in my opinion, or, economic development (and tourism), they can work hand in hand,” he said. Having just opened two years ago, Patrick said, “I think it’s (the airport’s) impact is yet to be seen, but I think it will (have an impact.) It will hopefully bring people to our area.”

Patrick said the county consulted “probably just the county attorney” before it enacted the ordinance.

As to whether a tourism commission should now be formed, Patrick did not give his opinion.

“That’s strictly up to current administration,” he said.

Judge-Executive Pat White Jr. did not return repeated phone calls left over several days.

“I don’t think that would pass the acid test,” Wilson said of the airport’s allocation of tourism funds. “I don’t think that would be the wisest use of that money. That’s what that tax is for — helping communities and governments to diversify the community to keep it strong.”

Wilson said marketing for Cumberland Falls and other outdoor activities could potentially bring more money into the county than the tax’s current use.

“Adventure tourism is a wonderful opportunity,” Wilson said. “What an opportunity he (White) has got there, and to not have a tourism commission... that’s probably something he needs to look at... The economic impact of tourism for a community is one of the best economic opportunities a community can get.”

In Bullitt County alone, Wilson said $88 million is brought in annually through tourism.

Rick Egedi, owner of Sheltowee Trace Outfitters, said Whitley County has potential to grow in the adventure tourism market.

“I feel that it is important that the transient room tax funds be used to promote tourism in Whitley County,” he said. “One of the most common questions that we get is ‘what else is there to do in this area?’ We need a county-wide brochure that answers that question for people. When people stop at our motels and gas stations, we need to be able to put something into their hands that will make them want to stay in our area an extra day or more.”



THE AIRPORT

“I think we need the airport for the area to help it grow and develop,” said airport board president Bob Moses. “It’s been a hard sell for the local people because they felt the money could be used for something else, something more profitable. The airport will probably never make money for the county, but neither does the interstate.”

The Williamsburg-Whitley County Airport Board has fought since the late 1980s for a new airport, Dickten said. The smaller, now defunct Williamsburg-Cumberland Falls Airport had no taxiway, a smaller runway, and no way to expand. In October 1999, the board received FAA approval to purchase property for the new airport, located off U.S. 25, just northeast of I-75 exit 15.

Dickten said at least $15 million (not all of that local) has already been invested into the airport, which opened about two years ago. The airport is not a stop for commercial flights, and about eight private planes are currently leasing space in the airport hanger. Appalachian Aviation, a mechanic stop for planes, is scheduled to open in part of the hanger later this year, he said.

“Without that funding right now, we’d be hard pressed to keep this airport open,” Dickten said.

While state and federal monies are paying for construction projects, the daily operations of the airport are supplimented locally with the transient room tax and some occupational tax revenues from the county, and some contributions from the city of Williamsburg.

A copy of the airport’s budget requested by the Times-Tribune stated an estimated $50,000 in revenue from Whitley County for fiscal year 2007-08, and an estimated $33,600 from the city of Williamsburg. The budget did not break down from which government accounts that money would come.

“We’re hoping the airport is going to contribute to the economic development of the region,” Dickten said. “We want to produce some jobs... It’s a good investment, it’s going to pay off in the long run.”

In time, Dickten said the airport can be self-sufficient with the addition of more hangers and more businesses, such as a flight school and possibly a business park.

And as for tourism, if a proposed state golf course is built near Cumberland Falls, the airport could fly in visiting golfters, Moses added.

Until it is self-sustaining, losing the tourism taxes could cripple the airport operations.

“It would be devastating” to lose the transient room tax revenues, Moses said. “We don’t want to do anything illegal, but we want to fix it so we keep this thing coming... We don’t intend to do anything illegal and wrong, we’re just trying to get the best bang for our buck, and our bucks aren’t easy to come by.”

The airport board already has a bond issue of approximately $850,000 to go towards the construction of a colonial-style airport terminal. The entire project, which is currently in the design phase, could cost close to $1.4 million.

“We’ll probably wind up getting money even if they have to form a county tourism commission,” Moses said. “They need to form a tourism commission.”