Vice Mayor questions whether Mainstreet can feed on General Fund teet
By Charles Douglas
Humboldt Sentinel
The Eureka Chamber of Commerce will continue to be subsidized by the City of Eureka — but not necessarily so for Eureka Mainstreet.
In another in a long line of split decisions with Second Ward Councilmember Linda Atkins casting the lone ‘no,’ the City Council passed on a 4-1 vote the approximately $135,000 subsidy for the Greater Eureka Chamber of Commerce. Third Ward Councilmember Mike Newman, who made the prevailing motion, was the chair of the CoC when he ran for office in 2010.
The amount is equivalent to 7.5% of the transient occupancy tax charged on hotel room bills in Eureka — a standard level of funding, according to CoC executive director Jay Hockaday.
“Our primary function is to attract and engage visitors from our of the area and convince them to stay that one day longer,” he said.
Jeff Lamoree of the Sequoia Park Zoo Foundation also spoke up for the Chamber’s work, but Atkins remained unconvinced due to conflict of interest concerns.
“I won’t be able to support this because of the political nature of the Chamber of Commerce, and I don’t believe public money should be used to support their programs,” she said.
When it came to the concept of subsidizing Eureka Mainstreet directly out of the General Fund, the Council sang a different tune — led once more by Vice Mayor and Fourth Ward Councilmember Melinda Ciarabellini, who cast the deciding vote to kill the Waterfront Drive extension project last month.
She said it made sense to fund the tourism and business improvement program for Old Town and Downtown out of Redevelopment funds; but with the state-mandated dissolution of the agency earlier this year, Ciarabellini suggested increasing the Mainstreet assessment on businesses within its district as a more appropriate funding source.
“Without Redevelopment funding, this program is now competing for General Fund dollars, and we have to pay for essential services,” she said. “I don’t think we should in our discussions just assume that we’re going to assume the full cost.”
Eureka Mainstreet sought the same $90,600 from the General Fund as used to be provided by the former Eureka Redevelopment Agency, which covers about 60% of their operating budget. While the Council technically voted 5-0 to allow their request to enter the 2012-13 budget cycle, the motion by Ciarabellini and Fifth Ward Councilmember Lance Madsen mandated that city staff and Mainstreet explore other funding sources such as grants and a hike in the Business Improvement District assessment. They also requested that Mainstreet executive director Charlotte McDonald submit a detailed budget for the program, which she promptly agreed to do.
“I think this is the finest program that we have ever had,” Eureka Mainstreet president Barbara Maxon said. “This would be a terrible thing that this would not be able to continue.”
First Ward Councilmember Marian Brady took exception to any attempt to restrict city funding to McDonald, who’s “almost doing five jobs,” and said Mainstreet was always on top of problems in Old Town.
“What’s going into the General Fund is millions of dollars in transient occupancy taxes…it’s kind of disingenuous to say we’re just taking it out of the General Fund,” Brady said.
Atkins retorted by recalling the days before the Measure O sales tax hike passed when the Council was cutting basic services.
“$90,000 is a huge amount of money when you don’t have any,” she said just before the vote.





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