We encourage you to checkout the Chanute Tribune website at www.chanute.com - It's a great site and is free to subscribers. The following is an article from the Chanute Tribune article on August 24, 2004.
		Commissioners get round of applause Tioga, Main Street, art gallery and museum funding approved by Tabatha Beerbower, Tribune writer The city commission approved financial assistance for Tioga Suites, funded Main Street Chanute and raised the transient guest tax in a fast-paced, but productive meeting Monday. The commission had a lot on their plates, but made a lot of people happy by the end of the meeting. The first of those was Todd Johnson, new owner of Tioga Suites. Johnson had requested financial assistance of up to $200,000 from the Revolving Loan Fund for renovations and repairs to the Tioga. The loan committee met to discuss the loan request on Aug. 5 and voted to recommend approval of the request to the city commission. Johnson agreed to all the terms outlined by the loan committee. The commission voted unanimously to approve the loan amount. Johnson expressed excited gratitude to the commission. "We have several people lined up to start working tomorrow," he said. "I have a lot of phone calls to make tonight." The commission seemed just as excited. "Thank you for your investment to our community," Mayor Doug Klaassen said. The loan will be in the form of reimbursements of approved invoices for the renovations and repairs. Speaking for Tioga Suites, Sharon Stirewalt, interim executive director of Main Street Chanute, approached the podium to discuss a $15,000 grant from the Kansas Main Street's Incentives Without Walls program that had been reapplied for under Johnson and Tioga Suites. The grant is only offered to communities that are Main Street cities and the $15,000, the maximum amount for a grant, can only be used for the renovation and preservation of historic buildings on the Historic Registrar. Stirewalt said that they had received a phone call from the state program recommending that the state grant the money, but it was on the contingency of city funding of Main Street Chanute. If Main Street did not receive funding from the city, they would not be eligible for the grant. An additional $15,000 for the Tioga hung in the balance on the commission's decision to fund Main Street. The commission thought they had found a way through raising the transient guest tax. Discussions on raising the guest tax, also known as the bed tax, started before the commission passed the 2005 proposed city budget Aug. 16. Increasing the guest tax rate from 3 percent to 5 percent could bring in an additional $20,000 to $30,000 to the city of Chanute Tourism and Convention Fund. In 2002, the city of Chanute and the Chanute Area Chamber of Commerce entered into an agreement that the proceeds from the guest tax be used for promotion, solicitation, encouragement and development of tourism in Chanute. The Chamber offered to perform these services by implementing a tourism program as an independent contractor. From guest tax receipts, the city pays the chamber a quarterly remittance of $8,500. Of this quarterly remittance, $4,250 - or $17,000 annually - is for the chamber for providing tourism and convention services. Remaining and budgeted guest tax receipts may be used for expenses such as contracting with any agency to promote conventions and tourism within the city, operating and maintaining a tourism office, expenses related to conducting tourism activities and creating innovative projects and activities promoting tourism. In 2003, the total revenue from the 3 percent guest tax was $45,491. The projected total revenue for 2004 is $31,220. If guest tax revenues fall below the quarterly amount of $8,500, the remittance that the chamber receives is adjusted accordingly. Ed Cox, vice-mayor, gave the audience the example of staying at a $40 a night hotel. An up-to-5-percent increase would raise the dollar amount by $1.50 to $2. Cox was not worried about people passing by hotels in Chanute due to this type of increase, an issue that was brought up in a prior meeting. The commission discussed using the projected revenue of $20,000 - $30,000 to fund the Safari Museum at $12,000 and the Art Gallery at $1,500. The Museum requested $17,000. John Stewart, commissioner, suggested funding Main Street Chanute at $20,000 with the projected revenue. He was answered with an amen from the audience. Cox said that he sees Main Street Chanute differently than tourism. He wanted a separate commitment to Main Street and wanted two separate votes. "I see it as two different opportunities," he said. Cox pointed out that if the commission used the tax revenue increase to fund the museum and the art gallery, it would free up funds in the General Fund for Main Street anyway. Stewart agreed and made a motion to raise the guest tax an additional 2 percent and use the revenues to fund the museum and the art gallery. The voted passed unanimously. The commission then unanimously moved to fund Main Street at $20,000 from the General Fund. Applause exploded from the audience. Stirewalt approached the podium once again to personally thank the commission for its funding. "We really appreciate the city of Chanute for supporting us financially with the $20,000," she said after the meeting. "Without that support Main Street could not focus on the necessary four points to successfully proceed with the development of downtown." In other business Monday, commissioners: - Approved Artist Alley for Sept. 25. - Approved a voluntary demolition program that authorizes city staff to execute agreements with property owners to remove sub-standard structures without costs being assessed, not to exceed budget funds. - Scheduled a future hearing with Randy Riggs, city manager, concerning a resolution authorizing the Public Officer to remove the dwelling at 1111 South Forest that was gutted by fire in January. The owners have not yet demolished the house. - Set a public hearing for Sept. 13 on request for exemption of property taxes for certain real and personal property by Ravin Printing. -Approved a contract with TEA energy marketing group to explore energy options. The contract will allow the city to receive quotes for services. The city currently has a contract with Westar that will expire at the end of the year. - Established a 40 cent emergency telephone tax rate for 2005. The new rate will take effect the first billing period on or following Jan. 1. - Approved an ordinance vacating utility easement for Ash Grove Cement Company in order to build a 70,000 ton cement storage dome. - Accepted a proposal from Schwab-Eaton, P.A. to design the North Plummer project. -Considered motion to waive tap fees for commercial properties. Motion died for lack of a second. 08/24/2004; 11:15:50 AM