Wednesday, August 22, 2012

Hailey gives support for air-service LOT

Special meeting called for Aug. 30

---

By TONY EVANS
Express Staff Writer

The Hailey City Council expressed support Monday for a proposed five-year, 1 percent increase to valley local-option taxes to support air service to the Wood River Valley, while pondering the mood of Hailey voters, who will be asked to support it at the ballot box in November.

“This is the single most important thing we can do to stimulate the economy,” said Councilwoman Martha Burke, following a presentation by City Attorney Ned Williamson on the 11th draft of a joint powers agreement that would govern the collection and spending of the funds.

“The joint powers agreement is everything the City Council wanted it to be,” Burke said.

Under the agreement, the nonprofit Fly Sun Valley Alliance’s proposed tax increase would gather an additional 1 percent of LOT revenue from Hailey, Sun Valley and Ketchum for retaining and improving commercial air service at Hailey’s Friedman Memorial Airport. 

Local-option taxes—which assess various rates to receipts of hotel rooms, rental cars, liquor sales and some retail sales—is designed to tax tourists rather than locals.

The proposed new funding, estimated at $2 million per year, would be used to pay for minimum-revenue-guarantee subsidies to airlines and marketing efforts.

Hailey’s estimated annual contribution of about $175,000 per year would make up about 10 percent of the total, with Ketchum contributing more than 50 percent.

Councilman Pat Cooley and others on the council expressed concern over whether the LOT funding initiative would pass with the required 60 percent of Hailey voters in November if it included a tax on restaurants.

Williamson said the tax could apply only to beds and hotels and not restaurants, as some have requested.

Larry Schwartz, the owner of DaVinci’s restaurant in Hailey, wrote a letter to City Hall last week asking that restaurants not be taxed, because 90 to 95 percent of his customers are locals.

Rob Cronin, an owner of Zou 75 restaurant, wrote a letter of unqualified support for the LOT ballot initiative.

Friedman Memorial Airport Manager Rick Baird said the LOT increase could help offset a loss of flights from commercial airlines that service Friedman Memorial Airport.

“SkyWest took out 30 percent of seats last year,” Baird said. 

“Since the recession we are more dependent on tourism than ever,” he said. “This is the best opportunity for the voters of Ketchum, Sun Valley and Hailey to help themselves.”

The Hailey City Council will hold a special meeting on Thursday, Aug. 30, at 5:30 p.m. at Hailey City Hall to gather public input on the proposed initiative.

The Hailey Chamber of Commerce will host a presentation by Fly Sun Valley Alliance on the ballot initiative Thursday, Aug. 23, from 8-9 a.m. at the Blaine County Senior Center, 721 Third Ave. S. in Hailey.

Tony Evans: tevans@mtexpress.com

acheter viagra
comprar viagra
buy viagra