Entertainment Providers Share Concerns Over Revised City Tax

Several of those who provide entertainment in Effingham attended Tuesday night's City Council meeting to voice concerns over proposed changes to the amusement tax ordinance.

The City has discussed for some time ways to make sure they collect revenue from the tax. City Administrator Jim Arndt mentioned again at Tuesday's meeting that there are establishments who provide entertainment, or traveling acts that book a local venue, then skip town without paying the tax.

The amended ordinance would impose a 5% tax or a single instance estimation of the gross receipts of an event.

Blake Yager spoke on behalf of Mid America Motorworks, saying that Luke Bryan's Farm Tour would not return if they have to charge the tax on tickets sold for the event.

Rich Jorn of Effingham Performance Center said he was seeking information, more than protesting the tax. He did have concerns, though, over the potential impact of the tax.

Paul Guttman of Legacy Harley Davidson said when he holds events, he doesn't charge admission, and wondered what the implication would be for him? 

Other questions concerned the size of the audience, such as those from Erin Hartke of Tuscan Hills Winery and local entrepreneur Bill Passalacqua, and whether consideration had been given to size of an event and what their charge should be.

At the end of each presentation, Mayor Jeff Bloemker asked whether the promoters would be willing to forego any type of financial assistance from the City, including hotel/motel tax dollars, if the entertainment tax was not assessed. Yager said yes, they would, but Jorn said such a lack of funding would ruin them.

The matter was only on the agenda for discussion.

Also up for discussion was the proposed rezoning of 1000 South 4th Stret from single family residential to two family duplex dwelling. The property was long used for multiple family occupation even though it was zoned single family and now the property has sat idle for some time. The Council gave City staff direction several months ago to take action against the property and others in town that weren't being properly utilized.

Neighbors Tuesday presented information against the proposed rezoning and the Plan Commission last week voted to recommend the Council deny the rezoning.

There were questions why City staff apparently permitted work to be done on the structure to make it ready for multi-family occupancy at the same time other City officials were working on the rezoning question that put the renovation work to a halt. More research is to be done on the issue before the Council votes on the rezoning question.

The Council also got information on the latest edition of plans for a new city police station. The design team from FGM Architects say the high water table where the building is to be built south of City Hall is a consideration that will hike the price of the building to somewhere between $8.5 million and $10.2 million. Arndt said the architects are looking at ways to cut costs without harming the architectural integrity of the building. The plan is still to take bids on the construction project in April with a bid award in May and project completion in July 2018.

Also Tuesday, the Council appointed Mary Holomy to the Effingham Public Library Board to fill a term until April 30, 2019; informally committed to providing about $12,000 as the City's share of the cost of a bike lane project throughout the city; and heard that a proposed rezone of Donald Thoele's property at the corner of Third and Douglas is being delayed until a couple of "wildcat sewers" are located on the property and properly addressed.