Repealing the option tax could have minimal net effect on residents, town finds

Mountain Times

By Polly Lynn updated Thu, Jun 26, 2014 10:33 AM

KILLINGTON - The town of Killington is in the process of considering Killington Resort's proposal for the town to repeal part of the options tax to support its summer investments. At a special public meeting held at the Killington Grand Hotel, June 9, the resort outlined its plans to increase summer traffic to the area, asking the town to consider repealing the sales and use option tax, which would give it the initial seed money to get projects going.
Currently, the town of Killington levies a sales and use option tax and a rooms and meals option tax.
The resort is proposing to repeal only the sales and use portion.
Some of the summer improvements the resort outlined include investing in world-class mountain biking improvements and increasing access for all levels, creating a watersports activity center at Snowshed Pond, as well as installing ziplines and a mountain coaster in the next few years.
At the June 9 meeting, Town Manager Seth Webb preempted the discussion saying the "town's position has been that any proposal it could consider would have to meet three criteria." These criteria would ensure that any change has a positive net effect on the town, its residents and businesses, he said.
The first criterion states: "The Resort has an effective year round tourism development plan and 1-2 years of summer operations/expansion under its belt."
The second states: "The proposal supports the creation of a strong semi-independent third party (like the Vail Valley Foundation or the Stowe Area Association or stronger chamber of commerce) to manage the events and marketing the town has started (allowing the town to transfer these expenses and responsibilities to an outside entity and  ensure they continue)."
The third states: "The town has a solid transition plan to ensure any increase in property taxes is minimized or avoided."
Next steps
"Now that the Resort has outlined its request, the EDTC will begin reviewing the proposal at its next meeting on July 14 and make a recommendation on how to proceed to the Selectboard," Webb explained. "If the Board decides there is a proposal they want to take to the voters they would finalize the plan in September and decide if they call for a special meeting."
A large part of what the EDTC, Selectboard and voters will consider when analyzing any proposed change will be the effect it could have on town services and property taxes, said Webb.
Events and marketing
The town seeks to ensure that the events and marketing that the town currently manages continues in a sustainable manner. To this effect, the resort is working with the chamber of commerce on a plan to strengthen the chamber so that it has sufficient funding to manage the town's events and marketing program in the future.
If this is successful, the town could cut those expenses from its budget and transfer the obligations to the chamber. Doing this would decrease the town's deficit created from option tax reform.
Webb explains: "Repealing the sales and use portion of the option tax would eliminate approximately $450,000 in revenue from the town. If the Chamber can take over the town's events and marketing, the town will be able to cut $250,000 in expense from its budget, and transfer those responsibilities to the Chamber," he said.
"Then the town would need to need to figure out how to find an additional $200,000 in revenue, which would likely come from an increase in property tax," Webb added.
But that increase would be off-set by savings residents currently pay in sales and use taxes.
Effect on taxpayers
Based on information residents have provided to the town, the average person spends approximately $50 a year in sales and use tax, which is levied on many everyday expenses such as cable, phone, and retail (including supplies, hardware, equipment, ski tickets, entertainment, recreation, etc.).
Other expenses are exempt according to state law: "There are 46 exemptions from the tax (sales and use) which include medical items, food, manufacturing machinery, equipment and fuel, residential fuel and electricity, clothing and shoes."
In order to make up the remaining town deficit of $200,000 (assuming the events and marketing were successfully transferred to an entity apart from the town and assuming no cuts are made to current spending levels) property taxes would need to increase by $0.02 - $0.03 cents per hundred.
Based on the 2013 grand list, that would mean an increased cost of about $40-$60 annually to a person with a $200,000 house (the median home value in Killington) or $50 - $75 annually to a person with a $250,000 house (the approximate average home value).
That correlates to a very minimal change to the average taxpayer per year - slight net decrease if the property taxes increased $0.02 and a slight net increase if $0.03. Those property owners with median home value ($200,000) would see a savings of $10.20/year if the rate were $0.02, or an increase of $9.80/year if the rate were $0.03. For a property owner with average home value ($250,000) the savings would be $0.20/year if the rate were $0.02, or an increase of $24.80/year if $0.03.
Data on the effect the option tax reform would have on businesses is currently being compiled. Look for that analysis in next week's edition.

Comment: While the effect may be minimal there certainly is an effect. I have a hard time believing the median home value is $200,000. It must include condo's most of which are vacation homes.
The biggest problem with this proposal is there is no guaranty the resort will actually do what they proposed. At the joint EDTC/Chamber/Resort meeting I specifically asked Mike Solimano that question and was told there are no guarantees.
Later in correspondence with him requesting a copy of the resort's plans, he stated he could not provide them because the resort did not want to, " over promise and under deliver."
 So while we as voters can guarantee the resort a half million in profits and savings by voting to eliminate the sales and use tax portion of the 1% tax, the resort cannot in turn guarantee these monies will be spent on improvements that will result in increased business.
What was also stated was the resort was going to proceed with their plans whether or not the 1% was eliminated or not. 
Additionally the town is facing large expenditures down the road. We will have tax increases to repay the loans on the reconstruction of Killington and West Hill Roads, the golf course irrigation system will need to be replaced soon (estimated around a million dollars, don't kid yourself that the golf course revenues will cover it), the town swimming pool will have to be rebuilt soon (hundreds of thousands), the impact of the single payer health insurance has yet to be felt.
So the impact of the repeal of the sales and use tax, while supposedly "minimal", will be felt. It cannot be just defined in the narrow context of how much it will cost the taxpayer to replace the lost 1% sales and use tax revenue, but rather what budgetary concerns will also put upward pressure on property taxes in addition to the elimination of the 1% sales and use tax.
Vito

The ‘Beast’ gets a zip line

By Bryanna Allen
STAFF WRITER | June 18,2014

Rutland Herald

 

KILLINGTON — The “Beast of the East” could soon be adding another feature to the resort, and this one will be open during all four seasons.

The potential plan is for a Soaring Eagle Zip Line, which will be adjacent to the Snowshed detachable quad chair lift near the Snowshed base lodge. The structure consists of a loading dock that allows access to a two-person chair, similar to a chair lift, according to the project application to the state’s Natural Resources Board.

Passengers will load into the chairs at the bottom of the first 100-foot tower from where they will be pulled up the cable to a second tower. They will then ride back down the 800-foot descent to the loading dock.

The ride starts and ends at the same location, easily allowing multiple rides.

“It’s a good addition to the resort because its available to a wide variety of people,” said Michael Joseph, communication and public relations manager at Killington. This version of a zip line is more accessible because of the chair, versus the safety harness version, enabling a greater range of ages and abilities a chance to ride.

“And having it open all year is a bonus,” Joseph said.

The town of Killington has been trying to bring more business to the area during the spring and summer months, addressing the notion that tourists generally tend to perceive Killington as a winter-only destination.

“We’re very supportive of the resort adding summer attractions,” said Seth Webb, manager of the town of Killington. Webb said the growth of tourism in town during the summer and fall is largely dependent on the efforts of the resort.

“This project is a step in the right direction,” Webb said.

The plan is currently in an appeal period for the next 30 days for local statutory parties and will be on hold until the plan is thoroughly approved, said Joyce Flagan, a technician for the Natural Resources Board.

Even though the project, which, according to the application, will cost roughly $337,000, has not been officially approved, Joseph said it is at the top of the priority list for Killington.

bryanna.allen @rutlandherald.com

Woodstock Ave. going back to 4 lanes

Rutland Herald

By Brent Curtis
staff writer | June 14,2014

 

Albert J. Marro / Staff Photo

The city’s Board of Highway Commissioners voted 2-1 Friday to change Woodstock Avenue back to a four-lane configuration, eliminating the bicycle lanes. Voting yes were Alderman David Allaire, left, and Public Works Commissioner Jeffrey Wennberg. Mayor Christopher Louras, not pictured, was the dissenting vote.

Rutland’s road diet on Woodstock Avenue will soon come to an end.

A split vote among the three members of the city’s Board of Highway Commissioners will restore the heavily traveled east-west road to four lanes after a five-week experiment that sought to improve safety by limiting traffic to two lanes with a middle turn lane to ease congestion.

Traffic data collected after the two-lane configuration was installed showed a one-third drop in vehicular collisions from the same time period last year. But the majority of highway commissioners worried there was too much potential for bicyclists or pedestrians to be struck by cars, given the way the bike lanes have been used during the last month.

“What I’ve seen of the use of those lanes is somewhat disconcerting,” said Public Works Commissioner Jeffrey Wennberg, a highway board member.

“If it was only bicyclists using the lane and they were all traveling in the right direction I would have a different opinion,” he said. “But that’s not what I’ve seen. The majority using it are going in the wrong direction and there are people with no business whatsoever in that lane whether it’s skateboarders, people with baby strollers or whatever.”

“We have introduced a new potential hazard that we have no experience with that is separated from those people using the (bike) lanes by only a stripe of white paint,” Wennberg added.

“The quickest way to mitigate that hazard is to switch back to four lanes.”

He and Board of Aldermen President David Allaire cast the deciding votes to end the so-called road diet.

Allaire said before casting his vote that he had many of the same safety concerns.

“The bike lanes are too narrow and close to cars and they’re being used by joggers and people pushing carriages,” he said, adding that the middle turn lane for vehicles was also being improperly used by some motorists who used it either as a passing lane or a travel lane.

The lone dissenting vote was cast by Mayor Christopher Louras, the third board member, who said the reduction in motor vehicle collisions showed that the traffic engineers who recommended the road diet were right.

“I think the analysis of the last five weeks is that it is safer,” Louras said. “There may be issues of use and abuse of the bike lanes, but over time I think that will change. People will ultimately adjust to the changes and it will be safer.”

The lane reconfigurations on Woodstock Avenue have drawn starkly divergent opinions from business owners and residents during the last month.

“It’s hard to figure out who’s right when you have two businesses next to each other with one owner saying it’s the best thing since sliced bread and the other saying the apocalypse is upon us,” Louras said.

While Allaire cited a petition signed by more than 570 city residents who wanted traffic returned to four lanes of travel, the mayor said he believed there was an equal or greater number of residents who favored the new alignment.

While Allaire and Wennberg voted to return to the prior alignment, both said they appreciated some elements of the road diet after seeing it in action.

“When I first heard about this concept my first reaction was ‘What are they thinking? That will never work,’” Wennberg said. “But much to my amazement it worked very well and has improved vehicle safety.”

The public works commissioner said after the meeting that the road would be re-striped to four travel lanes during repaving of the roadway which could begin by the end of the coming week.

brent.curtis

@rutlandherald.com

Killington [resort] invests in summer growth

By Polly Lynn updated Wed, Jun 11, 2014 05:37 PM 

Mountain Times 

"We've been waiting 40 years for this," said Bob Montgomery, owner of the Killington Group, after Monday's Special EDTC Meeting held in the Killington Grand Ballroom. It was a (somewhat unexpected) compliment that raised cheers from the audience after Killington Resort  presented its summer plans, which include a substantial investment over the next 3-5 years and a goal of attracting 45,000+ additional visitors by summer 2019.
The meeting was a collaborative presentation by the resort, Killington Chamber of Commerse, and Town Economic Development and Tourism Commission on each of their plans to grow summer business.
Over 150 community members attended the meeting Monday afternoon, June 9.
The chamber and EDTC presented first, highlighting the 90 events scheduled this summer between the town, chamber, resort and individual businesses.
The resort then outlined its investment plans for this summer, next summer and its short-term goals for summer business in the next three to five years.
This summer the resort plans to "seed" larger projects, by bringing a critical mass of activity to Snowshed pond. This includes: enhancing mountain bike trails with access to easier terrain off Snowshed and retrofitting the Snowshed Quad for bikes, offering guided ATV/UTV tours as well as Action Sports Youth Camps in partnership with Killington Mountain School, and installing a Soaring Eagle Zipline (September 2014) - a mechanical zipline that does not require harnesses, making the experience accessible to all. Plans are for it to be installed near the Snowshed Quad, permits pending.
Mountain Biking build-out
Tracy Taylor, director of operations for Pico Mountain, spoke on the large opportunity for Killington to expand mountain bike operations. Last year, he said, there were 800 million mountain bike rider visits nationwide (compared to about 56 million skier visits.) And the sport is growing.
Taylor said the resort will be adopting Whistler Blackcomb's model for success. They have hired Gravity Logic, a consulting group that formed out of the management team attributed with the success at WB. (In just over a decade, the rider visits at WB skyrocketed from 10,000 in 1999 to 140,000 in 2013, bringing in about $36 million in the summer of 2013 alone.)
"Four consultants from Gravity Logic came to Killington three weeks ago," Taylor continued. "They said to us, 'we think you have the best product on the planet for mountain biking and we think you could own the northeaster market' and that's our plan... We're invested in doing it right."
Future plans
As soon as next summer, the resort hopes to build an Alpine Mountain Coaster and a Big Zip/Aerial Park (a high ropes course with a six-stage zipline, located 3,000 feet up the mountain from Snowshed), in addition to expanding mountain biking operations to include park features.
In three to five years, the resort could expand its activities to include a "Beast of the East Zipline," which could run from from Peak Lodge down to Snowshed - a span of 8,000 feet over three stages, with a total of 1,700 vertical and speeds reaching 65 mph!
Other plans include building an indoor arena to be used as a music venue and for summer camps, to relocate one umbrella bar to the Snowshed Base Area, to unite the mountain bike trail system with the town, and to carry out Gravity Logic's suggested 5-10 year plan to create a world-class mountain biking venue.
Funding
These plans require a significant capital investment and, while the resort plans to carry them out regardless, they could happen "a lot quicker" if the town would repeal the 1 percent Sales & Use option tax, resort officials said.
(Editor's note: Killington currently has a 1 percent option tax assessed on Sales & Use as well as a 1 percent option tax assessed on Rooms and Meals. The resort is only requesting the 1 percent Sales & Use option tax be removed. Since 2007, when the town voted in the option taxes, the resort estimates it has paid $2.6 million in Sales and Use option tax and $1.3 million in Rooms and Meals option tax for a total of $3.9 million on the goods and services it provides. Of that, 30 percent goes to the state, 70 percent to the town.)
Repealing the tax would mean about $350,000/year savings to the resort, as well as an estimated $130-$140,000 savings to other businesses and residences collectively, but it would create a correlating deficit that the town would have to make up by either cuts or increased revenues (possibly property taxes.)
Town Manager Seth Webb presented three criteria by which to assess any future plans to change the option tax in order to serve the best interests of the town. They included: a solid plan/commitment to summer improvements, the ability to maintain a semi-independent third party entity, and a limited increase on property taxes.
"The question is would this be a better use [of the option tax] than what is happening now?" said Mike Solimano, referring to economic development.
The afternoon presentation was lively, not only due to the buzz of excitement, but because it also included some "Beastly" surprises: free beer was served to the audience; a parade of geared-up mountain bikers, at one point, rode around the perimeter of the ballroom; and a voucher to try out the new mountain bike trails at Killington this summer was taped to the bottom of each chair in the ballroom.
Next week, look for more details on the option tax proposal, community feedback and specific summer initiatives the resort, town and chamber have planned for this year and for the years to come.

"We think you have the best product on the planet for mountain biking and we think you could own the northeaster market" consultants told the Killington management team.

Big Green steps up to host Vermont Open

Rutland Herald

STAFF REPORT | June 13,2014

 

KILLINGTON — It isn’t Pinehurst No. 2 with back-to-back men’s and women’s U.S. Opens but a big event is a big event. And Green Mountain National taking the Vermont Open on short notice, and the week before its annual date with the American Juniors Golf Association tournament, speaks to the willingness of course staff as well as the surrounding community.

GMN will host the Open next Monday through Wednesday as pros from all about New England and beyond test the course that has entertained a lot of talented fields, from women’s and men’s professional tours to top amateur events.

The tournament has been moved from weather-damaged Lake Morey for the second time in five years and Green Mountain National pro Dave Soucy was quick to offer up his course, even if it’s the week before the fifth annual Killington AJGA Classic.

“I called Bill (Ross, Lake Morey head pro) when I heard they couldn’t handle it,” Soucy said. “There were several other golf courses that offered but I thought it would be good for the golf course.”

Ross and Dave Pfannestein, head of the Vermont Golf Association, gave Green Mountain National their blessing. Pfannenstein and the VGA ran the Vermont Amateur here and that left a good impression of the course and the support staff’s ability to get large fields around in a timely fashion.

“I certainly think Dave Pfannenstein knew we were capable of it and the golf course would hold up. I think those things weigh in on the decision but it’s a good, strong golf course,” Soucy said.

“With the AJGA coming up I knew we would be in in tournament shape. We had some bruises (from the winter) but mainly (superintendent) Peter Bissell and his staff have worked hard and they’re dedicated. They are working literally night and day. Peter comes back at night and waters greens after being here early in the morning. That was part of the decision.”

Soucy lauded the efforts of GMN group sales director Patricia Whitney, who is in charge of rallying support staff for the busy two-week stretch.

“We have a list of people who will volunteer even if it is two weeks in a row,” Soucy said.

---

Defending champion Michael Welch returns, along with faces Vermont golf fans have come to know well.

They include host pro Soucy, two-time Vermont Amateur champion Brian Albertazzi, Williston’s Todd Trono and John Goodchild, and Kyle Gallo, who won a New England Pro Tour event on this course.

Amateurs in the field include Rutland High School’s Drake Hull and Max Major, St. Johnsbury’s Alex Rainville, Spaulding’s Troy Evans and Garren Poirier of the host course.

To Recuse or not to recuse, you be the judge

After observing last night''s Planning Commission meeting it occurred to me that one of the commissioners  had a prior business relationship with a petitioner in front of the commission and maybe should have recused herself. The following email chain reflects my concerns and responses from Dave Rosenblum,  Planning Commission Chair and inadvertent (but telling) comments from Dick Horner, Town Zoning Administrator .
Do you think recusal was warranted based up what is contained in the chain? You be the judge.
Vito

From the Vermont League of Cities and Towns Selectboard Handbook concerning conflicts of interest.

 

 

 

 

 

 

 

From: Vito & Susan

Sent: Thursday, June 12, 2014 8:40 AM

To: Chris Bianchi ; Ken Lee ; Patty McGrath ; Seth Webb ; Dave Rosenblum

Subject: Recusal process Planning Commission

Gentleman, Ma’am,

I’m a little confused about the recusal process on the Planning Commission. My understanding is the Jennifer Conley was appointed to the Planning Commission with the provisio she would recuse herself on any business brought to the board by Steve Durkee since she had business relationship with him. Yet at last night’s meeting Steve brought business before the board and Jennifer did not recuse herself. I understand the Steve was acting as an agent for the owners of Liquid art but he had an economic interest in the outcome as he is selling the adjacent land to them and obviously consulted on the site plan if not prepared it.

Can you clarify ?

Vito

From: David Rosenblum

Sent: Thursday, June 12, 2014 11:32 AM

To: Vito & Susan

Cc: dick@town.killington.vt.us ; Seth Webb

Subject: Re: Recusal process Planning Commission

1. Nobody objected.

2. To the best of my knowledge Jennifer has not done work for the applicant. 

3.  There was no business relationship between Durkee and Jennifer connected with the application before the Planning Commission.  There was no business relationship with anyone in opposition to the application and Jennifer.

In the past Jennifer may have recused herself because she had done work for a party who was in an adversary relationship with an applicant and the subject matter of the that hearing related to the work she had done.  This raised the potential for her to be an adverse witness to the applicant.  However that situation was such that this did not develop. 

From: Vito & Susan [mailto:Marla@Vermontel.com]
Sent: Thursday, June 12, 2014 3:30 PM
To: David Rosenblum
Cc: Richard Horner; Seth Webb; Chris Bianchi; Ken Lee; Patty McGrath
Subject: Re: Recusal process Planning Commission

David,

Thanks for the brief. I think Jennifer Conley’s business relationship with Steve Durkee constitutes a cause for recusal as Steve was a proxy for Liquid Art as well as having an economic interest in the approval, thus your second point is somewhat negated. Maybe I’m too jaded, but I think to avoid any appearance of impropriety, especially given the glossing over of what Liquid Art’s primary business is without consideration of a change of use, she should have recused herself. It looks too much like Steve had an inside influence on the commission. Approval seemed to be a slam dunk anyway so why not recuse.

Vito

From: Richard Horner

Sent: Thursday, June 12, 2014 3:38 PM

To: Jennifer Conley

Cc: roselaw01@comcast.net

Subject: FW: Recusal process Planning Commission

FYI

Keep the blood pressure down. You would think he would be more concerned about Chris Karr being business partners with Steve on the Bill’s business. But once again this is a small town and there are lots of business relations out there and Vermont law recognizes that issue.

Dick

From: David Rosenblum 

Sent: Thursday, June 12, 2014 3:59 PM

To: Vito & Susan

Cc: dick@town.killington.vt.us ; Seth Webb

Subject: Re: Recusal process Planning Commission

The decision to recuse is at the discretion of the commissioner. 

Jenifer’s business with Durkee was far too remote to be a factor in the application that was before us.   There are also 7 commissioners which makes it unlikely any  one commissioner can exert any undue influence.

Perhaps you should run for the selectboard  or get appointed to a commission to see what it looks like on the other side of the table.

Dave, Dick, Jennifer,

So David, first it was Jennifer’s decision to recuse now its “at the discretion of the commissioner” which is it?  No need to answer, it’s beside the point.

The thrust of all I said was and I repeat “AVOID ANY APPEARANCE OF IMPROPRIETY”!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! That has more to do with how you guys manage your responsibility to the town’s residents and how you are perceived  than any legal requirements. Has it got through yet or do I need larger, bolder, redder type.

And thanks Dick, it did slip my mind that Chris is partners with Steve. I’ll keep that in the back of my mind for future reference.

Oh, and I have tried to get appointed to a committee or commission multiple times with no luck, apparently I’m not good enough for the club and have to do my work from the audience.

Vito