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December 15, 2011 in Washington Voices
Valleyfest offered funds to not apply for lodging tax funding
The ongoing debate over the failure of Spokane Valley to provide lodging tax funding to Valleyfest this year took a twist during Tuesday’s City Council meeting when a councilman revealed that Valleyfest organizers had previously been offered money to not apply for the funding.
The Lodging Tax Advisory Committee is chaired by a council member and includes representatives of the hotels/motels that collect the tax and representatives of organizations that are eligible to receive the tourism funding. The committee is currently chaired by Councilwoman Brenda Grassel.
Councilman Bill Gothmann asked Valleyfest director Peggy Doering if she and Spokane Valley Heritage Museum director Jayne Singleton had been offered $2,000 in the past to not apply for funding. “That is correct,” Doering said.
“Within the past few years did a hotelier committee member offer you a large grant in the present year on the condition that you would not apply for a grant in the following year?” Gothmann said. “That is correct,” Doering said. “I declined all that opportunity.”
In an interview Wednesday Doering said that it was the first year of the lodging tax committee after the city incorporated that Cal Clausen of Sterling Hospitality offered the $2,000 incentive to withdraw her application. Singleton confirmed that the offer was to write them a check on the spot. “We declined his offer and brought it to the attention of the council,” Singleton said.
Doering said it was in 2010 that Clausen asked if Doering would accept funding on the condition that she not apply again in 2011. Doering said she said no but didn’t make a big deal of the request. “I was really relying on the chair of the committee to stand up for the process,” she said. “Maybe I should have been firmer as an applicant.”
Clausen no longer sits on the lodging tax committee. He did not return a message seeking comment.
During the meeting Doering discussed the blank form in her application that some council members indicated was a concern. The page was a form that is required to be submitted to the State Auditor’s office by March 1. Doering said she printed it only because it was immediately before the application’s signature page.
Doering said the Lodging Tax Advisory Committee only asked her about the number of room nights generated by the annual festival. “There were no concerns about the application,” she said.
“I notice that none of the other applicants filled out the form either,” Gothmann said.
Volunteer Pat Leu said the city’s failure to fund Valleyfest was a “slap in the face” to volunteers who work so hard on the event. She also said that her family uses the event as a family reunion, and they stay in Spokane Valley hotels. They are never asked by the hotels if they are in town for Valleyfest, Leu said.
Board member Gail Bongiovanni said that the assertion that Valleyfest doesn’t result in “heads in beds” is false. Visitors to the annual festival came from as near as Colbert and Cheney and as far away as Montana, North Carolina, Arizona, Oregon, California, Ohio and Seattle, she said.
Not all of those people stayed in Spokane Valley because hotels have not been offering Valleyfest packages, she said. “Visitors stayed at the cheapest places they could find,” she said. “Valleyfest is no longer a local party.”
Attorney Ryan McNeice is also on the Valleyfest board. State law is clear that the funding can be given to festivals, he said. “The classic ‘heads in beds’ is not a fundamentally mandated piece,” he said.
Resident Tony Lazanis said the council should give Valleyfest the priority. “Valleyfest gives identity to the city,” he said. “I hope you folks do the right thing and fund Valleyfest.”
There seems to be some support for Valleyfest on the council, which voted unanimously Tuesday to re-appoint Doering to another term on the Lodging Tax Advisory Committee. Mayor Tom Towey recommended the re-appointment of Doering and fellow incumbent Doug Kelley of the Spokane Regional Sports Commission. “I think those two people will do us the best job,” Towey said.
“Peggy Doering definitely has done the city a great service,” said Councilman Arne Woodard. “I’m very enthusiastic about her serving.”
Woodard also said he thought it was “likely” that Valleyfest would be approved for lodging tax funding in the second round of applications to be approved by the council in March.
Remembering heroes 
Descolada on December 22 at 12:15 p.m.
Ms. Culver did a very nice job of stating the clear fact that this Spokane Valley council, dominated by the “Positive Change” group, clearly likes nothing about the city. Mr. Bill Gothmann, outgoing city council member and NOT a member of the “Positive Change” group and a staunch advocate for the City of Spokane Valley recently wrote a follow-up on his position with regard to Valleyfest. What he doesn’t mention is that Ms. Brenda Grassel is the Chair for the committee that recommends funding. And further, Ms. Grassel represents the city on the CVB board. Ms. Grassel wants to have a second round of funding so that, she indicates, others can have a chance at receiving funding. What she doesn’t bother to mention is that CVB did not file an application this year saying that the city failed to notify them. According to the city, the CVB was sent the information along with everyone else. Now Ms. Grassel champions a second round of funding to make it possible for her to recommend the funding for the CVB. Further, the Mayor again reappointed Ms. Grassel to the funding committee, a real travesty.
The following information was written by Mr. Gothmann:
VALLEYFEST – COUNCIL SHOULD DO WHAT IS RIGHT
Valleyfest received $19,000 in City funds during the “outside agency” call for proposals. On Nov. 29, the City Council decided not to grant Valleyfest’s request for $40,000-$50,000 from lodging tax funds. This decision was based upon three totally false assumptions: (a) approval should be based on “heads in beds”, (b) Valleyfest is a local event and does not attract tourists, and (c) Valleyfest left a part of their application blank.
“heads in beds”:
I understand why the hotels are greatly concerned about how many “heads in beds” they have, especially since the fund is a room tax on their clients. However, Washington Law states these funds are to be used for “tourist promotion.” Tourists are defined as someone from another town. The Committee Chair reported that “the application did not reflect a return, or heads in beds.” The Chair was wrong. “Does it draw tourists?” should have been the criterion used.
Valleyfest a Local Event:
The Committee chair reported, “[the committee] did not feel that that was a good use of the dollars because it is a local community event.” The facts show otherwise. In the Valleyfest Director’s report filed with the City in early 2011 for the 2010 Valleyfest, the she stated that 40,000 were in attendance, 65% were tourists, and 31% traveled more than 50 miles to attend the event. In her report for the 2011 Valleyfest interviews by Gonzaga University’s marketing department showed an attendance of 45,000, 48% of whom were tourists and 42% of the total traveled over 50 miles. The Committee was wrong.
Valleyfest and the Blank Page:
Before the Nov. 29 meeting, the Mayor and Deputy Mayor approached the Valleyfest Director and criticized her for leaving a blank page in her application. Council members saw the blank page and felt she should have filled it out. We were wrong. That blank page is the accountability page that is to be filled out AFTER the event (in 2012). In fact, none of the applicants filled out that page. Council was WRONG (and I include myself).
What should Council Do?
If Council makes a wrong decision based upon false information, it needs to own up to it and redo the action as soon as possible. The more we delay doing what is right, the more Valleyfest is hurt getting sponsors, the lower the marketing budget, and the fewer tourists Valleyfest attracts. With an economic impact of over $10 million, Council needs to reverse this public relations nightmare.
Bill Gothmann
Councilmember