FAYETTEVILLE — Advertising and Promotion commissioners decided Monday to tweak how they hand out tax money.
“Our intention is to encourage new events,” said commissioner Matthew Petty.
The commission decides who gets a share of the city’s hotel, motel and restaurant tax. Changes to the grant process will include a sunset clause for all applicants. After three years of receiving money, entities or events may be moved to an exceptions list if commissioners so choose. Requests from entities on that list will be discussed separately by the commissioners.
“Each event is different,” said Commissioner Matt Behrend. “Some may need a sunset rule, some do not.”
At A Glance
Fayetteville hotel, motel and restaurant tax collections were up $111,797, from $2.52 million to $2.63 million, in 2013 compared to 2012.
Source: A&P Commision Annual Report
Applicants will be encouraged to come to the commission with a one-to-one match. The match may be in the form of money, labor, sponsors or something else of value.
Money will be awarded in the future to the event rather than the entity requesting assistance.
Commissioners discussed a $40,000 annual cap to any single entity but decided not to implement a cap because of the disparity of the requests the commission receives.
Commissioner Justin Tennant opposed the cap, saying it might encourage entities to push the limit and ask for more than what they really need for an event.
Commissioners discussed and rejected mandatory percentage reductions in the amount of grants based on the number of years an entity has been awarded money by the commission.
The application process is also being tweaked. Applications will be due April 1 and will be reviewed during that month. Grants will be awarded in May. Commissioners said they want more time to consider applications and ask questions before making a decision about who gets the money.
According to Marilyn Heifner, executive director, about $91,070 is still available for events this year.
University of Arkansas officials will be invited to attend next month’s meeting to discuss the support the commission provides to some of their events, like conferences or national championship events.
Commissioners want to discuss if the university needs the grant money to support the events and if the economic benefit to the city outweigh the tax investment.
Behrend said the grants for university events have historically been a token gesture of thanks for the university bringing those events to town.
“We benefit from those events,” Berhrend said. “We’re saying we support them bringing those events here.”