Going into the fall leaf season, the Franklin Tourism Development Authority continues to see an increase in hotel tax collections.
During the first two months of the new 2021-2022 fiscal year (July and August), the TDA received $34,652.45 in hotel tax collections. The August collections were $14,807.56. “That’s the best in four years,” chair Connie Grubberman said at the Oct. 11 meeting.
By comparison, during the first two months of fiscal year 2020-2021 the hotel tax collections totaled $22,154.92. The highest August collections were in 2017 with $15,268.63, making the August 2021 collections the second highest since 2010.
“We have been good stewards of the money we have to take care of, and we are still doing that,” Grubberman said.
The TDA uses the lodging tax to promote the area and support advertising and marketing for tourism-related events. At recent meetings, there was discussion about the rules regarding how the money is spent.
In July, the North Carolina Trail of Tears Association requested $3,500 for a proposed event that would have brought people attending the national Trail of Tears Conference in Cherokee to Franklin for a day. The funds would have been used for rentals associated with the event such as tents, tables and chairs. Some members of the TDA board did not think that was an allowable expense. Others countered that event rentals are different than paying ongoing rent for an office space. The board voted 4-2 to contribute $410 toward a booklet that would be given to attendees. Subsequently, the event was cancelled due to COVID, so the grant was cancelled. The Nikwasi Initiative also returned $2,000 it received for marketing materials related to the same event.
TDA funds
The TDA bylaws state funds should not be used for “current operating expenses, including but not limited to salaries, rent, purchase of insurance, and payment of utility expenses such as electricity, water and sewer service, and fuel.”
At the September meeting, the board agreed to ask the town attorney for a clarification on how the funds can be used and what constitutes “rent.”
Attorney John Henning outlined the use of TDA funds according to Session Law 2004-105, which governs the TDA. Two-thirds of the money is to be used to “promote travel and tourism” and one-third can be used for “tourism-related expenditures.”
The one-third tourism-related expenditures are designed to “increase the use of lodging facilities, meeting facilities, or convention facilities in the town or to attract tourists or business travelers to the town.”
“This term is pretty broad, and it’s in the TDA’s discretion, so there’s not much way of second-guessing whatever the TDA decides fits into this category,” Henning said. He went on to say that equipment rentals for individual events would fit into the category if the TDA determines it meets the criteria of increasing the use of lodging or brings tourists to town.
Town Manager Amie Owens said in other places where she worked with tourism boards, event tent rental, transportation, and even helping to pay for a band or entertainment were allowable expenses.
She said health and safety expenses, such as event insurance and port-a-potty rentals, would not be paid for out of tourism dollars, since the event organizer would have to pay those expenses regardless.
The board members talked about offering a class to help applicants learn how to fill out the funding request application and to provide more direction on the website.
Funding requests
During the Oct. 11 meeting, the TDA heard a $15,000 request from Smoky Mountain Center for the Performing Arts for theatre advertising and event promotions.
Scotty Corbin said usually more than 1,000 people attend each show and 8,000-9,000 people have come to the center since they reopened in June. Of those, 70% live outside Macon County.
The TDA usually funds $10,000 for the center and will vote on the request at the Nov. 8 meeting.
The board voted to fund $600 of a request from the Smoky Mountain Pregnancy Care Center to support the Conquer the Mountain Half Marathon and 5K on Nov. 6. The original request was for $3,250. TDA funds will be used for printing, print and radio media.
At the September meeting the TDA board approved $1,700 for the Naturalist 25K/50K Trail Race held on Oct. 2 and presented by Outdoor 76. The TDA funds were used for print and online advertising.
The Tourism Development Authority meets the second Monday of each month at 5:30 p.m. in the board room of Town Hall.