Public to county: Use TLT to draw winter visitors

Presenter: With the county budget scheduled to be finalized June 23, public comments urged commissioners to remember the purpose of the transient lodging tax. 

Tim Smith: My name is Tim Smith. I’m the vice president of operations for Mereté Hotel Management. We operate six hotels in Lane County across Eugene and Springfield and employ hundreds of employees, obviously, in those hotels.

I don’t think it comes as a surprise that winter is our toughest season. I see it every year. We go through the same cycle of the lack of infrastructure to drive winter demand reduces our revenue stream. That has an immediate impact on our employees—the hundreds of people that I mentioned that we employ.

I can tell you, in Q1 of each year, our leadership team does a what we call a ‘Big Mo roadshow.’ We go out and we talk with our our teams and get some face-to-face time with them, for them to comment directly on the things we can do better as a company and the things that they love that we do as a company.

I can tell you that the #1 question asked was: How can we get more hours? How can I make more money? How can I pay for groceries, pay for gas, all those things.

With that in mind, it became pretty evident many, many years ago, I think, as long as (I’m only a three-year resident of Eugene), but as long as 30 years ago, there were studies funded to find out what we could do for winter travel, winter demand, and how we could build an infrastructure to bring year-round demand.

Every one of those studies has identified that multiuse indoor sports and recreation facilities would be viable in this community and would be a good driver for winter revenue.

It was presented to us to approve a 2% increase in transient lodging tax to help fund this investment. It was proposed that this increase in funds would go directly towards that.

So it is a matter of trust when at this point we’re now being told that those funds will be used for something potentially used for something different. In order for us to make a viable winter demand generator, it is urgent that we use all of those funds to build out this investment.

This will provide stable employment, stable income opportunities for our hundreds of employees through the winter season. And it will also increase community engagement, give our local community somewhere they can go in the winter.

I urge you to use other resources. Use our reserves in the short term while you search for long term solution to our emergency services. 

Tina Patel: My name is Tina Patel from ALKO Hotels. I spoke with you before. I am urging you, Commissioners, not to take away TLT dollars for public safety. I know how crucial it is, the public safety. It is. But it should not be coming from one industry.

In 2023 I was there testifying in front of you and very excited that we are raising 2% tax to have something, an indoor facility, something for the winter, winter events.

Right now, I came into Lane County 30 years ago with my one-year-old daughter and I had another boy and they went to school over here and then went to college over here.

The only thing that was lacking in the wintertime: indoor things to do, any activities that they can do, any sports. It is very crucial to have something like an  indoor arena or anything that our children have something to do in wintertime.

That is also critical on hospitality industry because like other people have said, you know, we have 150 employees and they are saying the same thing. We need more hours in the wintertime.

You know, we’re not able to provide the hours because the occupancy is not there. And there is not enough time, you know, to give it to our employee.

So I want to thank you. I know you have a hard choice to do, but I’m really urging you not to take away TLT money and use the money what is intended for and keep it in a TLT, please. Thank you. 

Bev Smith: My name is Bev Smith, and I’m speaking to you as the executive director of Emerald Kidsports and a longtime former amateur professional Olympic basketball player. 

I know what sports can do for kids in this community and in any and all communities. I’m not here today just to talk about youth sports, but also to find a way to get it right for our community.

Lane County wants to ask voters to approve a long-term public safety funding solution. I think most people in this community want to support public safety. I do too.

I think my question for us today is how to do both, how to keep our promise to the community by investing TLT in the over decades, intense market demand and the critical need for multisport facilities and convention space and then public safety.

That question is to be answered by you today. And as a longtime member of this community, I think we have a generational opportunity to invest not just in facilities that will enhance our community economically, but also help us stay true to keeping our promises to the community.

When in 2023, this board dedicated 2% transient lodging tax increase to tourism-related facilities, that was a galvanizing moment for many of us in this community. 

And for those of us who have recently served on the revisioning or visioning of Lane Events Center, looking at the potential of this historic space and place becoming a destination for both community and county as a multisport facility, we sense that we are finally trying to be on the road to getting it right.

So today, I would urge you to be a leader in not going back to the future and not kicking this opportunity down the road, and to make the decision to preserve the TLT for the purpose it was intended for, a community asset that creates a year-round vibrant economy and a crucible for the health and well-being of our kids and our families.

Georgia Haskell: My name is Georgia Haskell. I am the executive director of the Cottage Grove Chamber of Commerce and a constituent of Commissioner Buch. 

Commissioner Buch, I would like to speak directly to you today because the decision affects the communities that you represent.

You have championed keeping public dollars, working for local businesses and families, and that is exactly what the transient lodging tax was designed to do. The 2% increase dedicated to tourism infrastructure is a public dollar that works for Cottage Grove, for our restaurants, our shops, our small business owners.

We depend on visitors to sustain through the year. Rural communities like Cottage Grove do not have the economic cushion that larger communities do. We feel every gap in the visitor economy.

When tourism investment is strong, our businesses do thrive. When it is redirected elsewhere, we feel it too deeply.

In 2023, this board made a commitment to build the infrastructure that would bring more visitors to communities like Cottage Grove year-round. That commitment gave our small business community hope.

Redirecting those dollars today, even temporarily, signals that rural communities will have to wait a little longer while their dedicated investment is used for something else.

I understand the county’s public safety pressures, but please find another path to solving that problem. This fund was built for one purpose: to grow the local economy in every corner of Lane County. I am asking you today to keep that commitment. 

Nigel Francisco: My name is Nigel Francisco, a lifelong resident of Lane County. My career really spans travel and tourism has been directly supported by travel and tourism.

I actually started out as an airline pilot in 2003, then worked for a large regional craft brewery, then a winery, and now I work in development where we have a lot of hospitality assets. None of these businesses would be successful without the strength of the travel and tourism industry.

In my short 25-year career, I’ve seen that direct impact. You look at the travelers, the emplanements from the Eugene airport, there were a little over 300,000 in 2003. Now that number is over 800,000. That’s not by accident. That’s directly because of the work that Travel Oregon has done and more specifically, Travel Lane County with the investment of those TRT dollars.

So there’s three major reasons I have why, I’d like you to not use the travel and tourism dollars for public safety:

The first one is erosion of public trust. This industry came to the county commission, and that was voted through to increase the lodging tax to support off peak demand. The second reason is the cannibalization of economic development.

So travel and tourism is one of our largest industries in Lane County. Lane County is, not the biggest jobs employer. And those jobs that I talked about support manufacturing and other industries that again, has directly impacted me and the people I’ve worked with. And then finding a temporary solution to a long term problem.

We need to work in this county to figure out what that mechanism is, to be able to support public safety in a long term fashion and not a short term knee jerk reaction. So I would urge you to use reserve funds to support public safety and follow the recommendations of the Public Safety Commission that was put together. 

Irene Alltucker: My name is Irene Alltucker. I’m here as an advocate for the hundreds of restaurant, retail and hotel employees that will be directly affected by your decision. Three years ago, the Board of County Commissioners approved a 2% transient lodging room tax increase. This increase reflected a deliberate commitment to improve this community’s tourism infrastructure.

After listening to many voices, the Board of County Commissioners responded, you understood the importance of tourism to economic development, i.e., jobs. You. The Board of County Commissioners heard the need to increase visitors year round. You stated the increase in the transient lodging tax would be dedicated to build the infrastructure needed to attract visitors in the winter months, when the economic impact would be felt, most.

These funds, although collected, have not been dedicated to a specific project for the past three years, while the funds have been collected. Travel Lane County has undertaken studies and site specific evaluation for the highest and best use of these funds. It’s important that we follow through with a project that will have the return on investment you intended.

We’re not looking for a knee jerk reaction to a proposal. Rather, there’s careful consideration to make sure these transient lodging tax funds will do what they were intended when you passed the increase. You passed the increase to increase the tourism infrastructure and that need remains unchanged.

The people of Lane County need jobs and tourism is a key employer.

Please do not misinterpret my statements today to reduce funding of public safety. Rather, I’m imploring you to find a long term stable source of funding for public safety. The Public Safety Funding Task Force did not suggest the short term fix to use transient room tax.

The task force recommended and provided guidance that should be followed. I appreciate your time today and your careful consideration. As you know very well, the decision you make today will have a long term effect. 

Joe Liebersbach: My name is Joe Liebersbach and I am the director of business advocacy and leadership development at the Eugene Area Chamber of Commerce.

Eugene Area Chamber of Commerce strongly supports adequate funding for all public safety services. We also recognize the very difficult fiscal challenges facing Lane County and understand the importance of maintaining rural patrol services, supporting our Sheriff’s Office, and ensuring a safe community for residents, residents, visitors and businesses alike.

However, we respectfully oppose the proposal to utilize any transient lodging tax dollars for these purposes. Public safety remains one of the chamber’s highest priorities for our entire county. 

Our position is not rooted in opposition. Our position is based on our long-standing belief that transient lodging tax revenues should be used for the purpose for which they were intended: directly investing in tourism, destination development and economic growth.

Throughout the last legislative session, the Eugene Chamber joined a ton of chambers of commerce, destination organization, and others across Oregon in opposing efforts to weaken this long-standing framework governing transient lodging tax revenues.

We did so because we believe these dollars represent an investment strategy, not simply a county revenue source. Tourism is one of Lane County’s most important economic sectors. Visitors support local hotels, restaurants, retailers, wineries, attractions, and recreation providers. These visitor dollars generate jobs, wages, and tax revenues that benefit our entire county.

The funds that have accumulated over time represent future opportunities to strengthen that economic engine through destination development projects, infrastructure, event attraction, and other investments that continue to grow our local economy.

Using those reserves to address ongoing operating expenses may provide short term budget relief, but also diverts important resources away from the very activities that generate future economic returns.

We also believe that there’s an important distinction between reserves generated from tourism related revenues and the county’s general fund reserves.

Public safety is a core governmental responsibility. If one-time dollars are needed to bridge current budget challenges, we believe the general fund reserves are the more appropriate source because they align directly with the county’s obligation to provide essential services and maintain the intended use case for all funds on the table.

We respectfully urge the board to look to general fund reserves and other sustainable funding strategies to address public safety needs, preserving TLT reserves for tourism and economic development purposes. 

Dana Turell: My name is Dana Turell and I am a resident and small business owner in Eugene. You have heard me speak before about FY26-27 and the budget and the specific use of transient lodging tax.

My continued request is to not use transient lodging tax for public safety and to preserve it for its intended use as you dedicated it. You’ve heard me speak about that. So today I’m going to take a little different tactic. 

And thank you. Thank you for doing the hard work that it takes to be commissioners every day. This is one issue of so many issues. You have a lot of issues that you face. I know that, and I also know public safety is very important to all of us. Yes, visitors included, and definitely residents. 

I want to thank you for dedicating the 2% to tourism infrastructure, which is your dedication to tourism infrastructure.

That was such a hopeful moment for us in the tourism industry to know that you felt, as we did, that the 2% was the amount of money it needed to build the infrastructure that will help this industry return investment, return money to all of us throughout the county and help out all of the businesses, the hotels, the restaurants and the activities in the winter months when it is very challenging.

So that was a bold moment and I continue to thank you for it. And I thank you today and for the weeks leading up to this for asking the hard questions, looking for the options. I know it’s difficult to do this, but I appreciate the hard questions and options that you’re looking into to be able to preserve that 2% TLT for how you intended it, and to look at other options.

And I also encourage you to take those options seriously and to maintain TLT as you dedicated it for tourism infrastructure. 

Samara Phelps: My name is Samara Phelps. I’m president and CEO of Travel Lane County and like Dana, you have heard from me. I’m here to represent Travel Lane County and our respectful request that the board not use transient lodging tax to fund public safety in the FY26-27 budget.

Travel Lane County is the marketing organization and the county’s primary partner in growing the visitor economy here in Lane County. Lane County as staff and as this board has long valued and supported the benefits of the industry that brings and what it brings to this community, and I appreciate the time each of you and the staff have taken in understanding the issues and the nuances of stewarding not only Lane County, but this particular fund.

Transient lodging tax. For more than thirty years, this region has struggled with insufficient winter visitation. You’ve heard testimony on this and this from our organization for a long time. Our shoulder and off peak seasons represent a persistent gap that undermine our economic stability here in Lane County.

When the industry explored funding mechanisms for tourism infrastructure, a tourism improvement district was among the options that was considered. The board and the county commissioners at the time chose instead to maintain control of TLT with dedicating that 2% to tourism infrastructure.

The industry respected that decision and was encouraged by the dedication, as you heard from some of our stakeholders earlier. The infrastructure fund and the reserve are a dedicated fund. The board created them for a long-term investment in tourism infrastructure. 

Redirecting any portion of that revenue reduces the likelihood that this infrastructure gap that we have struggled with will ever fully close. A fund that can be redirected will always face pressures. The commissioners that sit in your seats will face these pressures of competing priorities. 

And we raise this to name that reality, and also to suggest that as we move forward, a conversation about the long-term structure of how tourism infrastructure investments are made is worth having, because we want to move forward with you as the towards our shared goal of building an infrastructure and a thriving, sustainable economy for every part of our region.

So our request today is that on June 9, the Board of County Commissioners asked for alternatives to funding public safety with TLT. And today we ask this board to find those alternatives, follow through on the commitment made in 2022, and direct the TLT increase as it was intended, to an investment that grows Lane County’s economy. 

Commissioner Ryan Ceniga: Richard Boyles:

Richard Boyles: Others have already clearly and eloquently laid out the arguments for preserving the current use of TLT.

I won’t repeat those. I will say you were presented with the budget that pitted TLT use against public safety use. But that choice is not one you have to make. You do have reserves. Past commissions have prudently set those aside so that you would be in a position to make decisions like the one that you are faced with, as you look at this budget.

So I’ll simply urge you to use your option to use reserves and preserve TLT for its intended purpose and the many great things that can accomplish in terms of a facility here in Lane County in the coming years. 

Presenter: Public comments make the case to preserve the transient lodging tax for its original purpose. Local leaders envision a multiuse facility that can draw people during the winter, creating new jobs and revenue. 

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