North Adams City Council OK's Hotel Tax Hike

By Tammy Daniels
iBerkshires Staff
11:58PM / Tuesday, August 25, 2009

Print | Email |

Important

0

Interesting

0

Funny

0

Awesome

0

Infuriating

0

Ridiculous

0

Mayor John Barrett III argued the rooms tax - $2 on a $100 - would have little effect on hotel revenues. Top, Councilors Alcombright and Blackmer urged a review of its impact before enacting it. They were outvoted 6-2.

NORTH ADAMS, Mass. — The City Council on Tuesday approved a 2 percent tax increase on hotel/motel rooms in the city that will go into effect for the fourth quarter of the year.

Councilors Richard Alcombright and Lisa Blackmer requested the matter be moved to a subcommittee for further review but found no support. The adoption passed 6-2; Councilor Clark H. Billings, who submitted his resignation effective Aug. 29, was not in attendance.

Mayor John Barrett III said the increase was minimal but would generate about $53,000 based on room receipts from last year, "which was a bad year for hotels and motels."

The 2 percent rooms tax and a .75 meals tax are local options passed by the Legislature in June to help communities offset cuts in state aid. The mayor said he would likely recommend the meals tax next spring because local restaurateurs told him they would have difficulty implementing it by October. 

"We always need revenue but we'll probably need it next year," said the mayor. "And others [communities] will have to do it, too."

Alcombright and Blackmer advocated sending the rooms tax to the Finance Committee to allow innkeepers to provide input. Blackmer was concerned that while single-night stays would see little change, a 2 percent increase could affect the city's ability to be competitive with group bookings.

"I think Lenox specifially didn't pass it for the fourth quarter because of prepaid, prebooked packages," she said. "It may affect jobs if we're not competitive ... if most other communities are looking at or postponing it we should, too."

Alcombright suggested delaying the implementation of the tax until the first of the year, especially after speaking to managers at the two major hotels, the Holiday Inn and Porches.

"Initally, I thought that this would be a slamdunk," he said, but noted Pittsfield, like a number of other communities, delayed acting on the tax until later in the year.

Finance Committee Chairman Michael Bloom said the council would certainly adopt the increase but wondered if it wouldn't be worth waiting a few months so it could be fully reviewed.

Resident Robert Cardimino spoke against a sewer user tax proposed by Councilor Billings and urged the council to ban the use of cell phones and texting while driving.

The mayor said if the council didn't act on the matter Tuesday, it could not be implemented until the first of the year as set by the state Department of Revenue. He estimated a delay at about $5,000 per month and added that no hotel owners had contacted him with concerns.

"Those are tough decisions but to say it's going to hurt their business, nothing can be further from the truth," said Barrett, adding the city had given multi-year tax breaks to both Porches and Jae's Inn. "It's the best way to go, the fairest way to go."

Blackmer expressed disappointment that the measure was not brought to the council earlier so there would have been more time to review it. The mayor and the councilor went back and forth as to whether Blackmer had contacted him about the issue earlier. While the mayor agreed she had, he said he hadn't wanted to bring it to the council at the last meeting because he had been told there might not be a quorum.

The council also approved taking a permanent easement from River Street Realty Trust, principal Michael Deep, in preparation for a $3.2 million streetscape improvement project. The city required 29 easements for the work; Deep was the only one who declined to sign off on a temporary easement. He will be paid $163.40 for the easement based on appraisals made in conjunction with the project.

The Holiday Inn and North Adams Tire are allowing permanent easements on their properties; while the council had been provided an to pay for "damages" for both easements, the mayor said they are being donated to the city and no damages would be paid.

The city will also approved borrowing for a $680,000 feasibility study on additions to Greylock and Sullivan elementary schools, which have absorbed the sixth and seventh grades from the now closed Conte Middle School. The city has to approve the funding upfront; the School Building Authority will reimburse the city 80 percent of the cost. The city's balance of $136,000 will probably be rolled into construction costs for the proposed additions.

In other business:

• A letter from Billings urging the investigation of sewer user fees was sent to the Finance Committee for review.
• Three properties acquired by the city through Land Court — 52 Quincy St., 292 Eagle St. and 406 East Main St. — were approved for auction.
• A transfer of $41,000 from the landfill reserve account was approved to repair a payloader at the Transfer Station.

• Reality Star Talks Shop With Drury Television Class
• North Adams Events: Feb.10-14
• Pittsfield Solons Talk Art, Culture and Politics At Forum
• City To Move Forward With Methadone, Suboxone Regulation
• Cultural Pittsfield: Feb. 10 - 16