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HomeMy WebLinkAbout2001-11-08 ACE MINUTES• • • ALLIANCE FOR COMMERCE IN ENGLEWOOD November 8, 2 0 01 I. CALL TO ORDER The Alliance for Commerce in Englewood meeting was called to order at 11 :45 a.m . in the City Council Conference Room of Englewood Civic Center, Chairman Van Der Zwaag presiding. A quorum was not present; the meeting that ensued was a working session for those in attendance. Members Present: Members Absent: Alternate Members Present: Liaison Members Present: Also Present: II. Approval OF Minutes Van Der Zwaag, Panetta, and Schalk Ashenfelter, Young, Guinther, Taylor Rees Brenengen Councilperson Olga Wolosyn Business & Redevelopment Coordinator Johnson Business Development Specialist Hollingsworth Because a quorum was not available to approve the October Minutes, this issue was tabled until the next meeting. Ill. Admissions Tax Discussions Ms . Johnson asked that the group review the information on the admissions tax that was included in the board packet. The Gothic Theatre is approaching the City to ask for repeal of the tax. The document for ACE describes the pros and cons of the tax, options for actions by ACE including endorsement of appeal or rejection of the appeal. The matter has been scheduled for November 19. The tax was initially put into effect in 1976. Ms. Johnson asked the group to review the ordinance and provide recommendations . Mr. Panetta asked if this issue has been addressed since 1976. Ms. Johnson replied the original information for creation of the ordinance had not been found. Other previous action included an approach to the City Council by the Gothic Theatre in the past (1999 or 2000). Councilperson Wolosy n described the impacts of the three percent admissions tax to the business plan for the proposed cultural arts facility. The admissions tax has a significant H:IG ROUPIBOARDSIACEIMinut<slAC E · 1 !0801.tloc impact on the proforma financial statements as described in the business plan for the • cultural arts facility. Mr. Schalk described the competitive disadvantages associated with competing with Denver venues since Denver does not levy an admissions tax for privately owned venues. Mr. Schalk indicated that more funds could be applied to advertising both print and radio. Mr. Schalk pointed out that Denver does not charge the admissions tax for privately owned venues such as the Ogden, Fillmore and Blue Bird Theatre (the Gothic's largest competitors ) and it makes it difficult to compete with Denver venues on a level playing field. Mr. Schalk sited an example of how the admissions tax negatively impacts his business . Councilperson Wolosyn suggested that the discussion with City Council should be couched in general terms . This not a discussion about a tax impacting just the Gothic; good arguments need to be made on a community wide basis. Ms. Brenengen suggested that having the Gothic as a community amenity draws people to other businesses creating a synergy for our business community. Mr. Schalk then suggested that removing the three percent admissions tax barrier might open the door to a cultural arts facility. In researching the history of the ordinance, Ms. Johnson was told the tax was to offset • additional city services provided to entertainment businesses, including the perceived need for more police coverage . Ms. Johnson indicated that she would research the number of police calls made to businesses paying the admissions tax. The Gothic Theatre hires their own security team . Mr. Schalk pointed out that he pays sales tax on liquor sales in the theater and it is a significant amount. Ms. Johnson pointed out the fact that a number of calls to the police have been made because of Paradox Lounge and they do not pay an admissions tax. Ms. Johnson reiterated that the issue of admissions tax is broader than the Gothic Theater. Issues impacting businesses should be brought before ACE before going to City Council. Chairman Van Der Zwaag asked about the political clout ACE has before City Council. It was discussed that City Council created the advisory group for just these types of business issues . Councilperson Wolosyn indicated that this issue is an appropriate issue for Council consideration because it impacts more than one business. Mr. Panetta asked about the other businesses that are impacted by this tax. There are several types listed in the ordinance, including movie theaters and cultural arts facility. Ms. • Johnson indicated that this tax should be levied on all sporting contests, lectures, and that H:IG ROUPIBOARDSIACE\M u1 u1cs \ACE · 110801.Juc .· ·-- • City sponsored events are exempt. Ms. Johnson indicated that she would research the issue of schools paying the admissions tax because they seem to have events that would require this tax . Chairman Van Der Zwaag asked the reasons for other metro-area cities charging the tax . Mr. Schalk replied that Denver does not have an admissions tax; therefore, it has better draws for arts and entertainment businesses. Mr. Schalk also indicated that admissions tax focused on movie ticket sales. Denver does, however, have an admissions tax (also known as a seat tax ) for public venues, including Denver Center for Performing Arts . Mr. Rees indicated that he thinks this tax is a deterrent and wonders if Englewood's admissions tax was a factor in leasing the proposed movie theater. Ms. Johnson indicated that the David Taylor Dance Theater would pay the tax; because the proposed Cultural Arts facility would be a public venue. The city wouldn 't charge for city sponsored events. A private production, however, would need to charge the tax. Councilperson Wolosyn indicated that City Council desires to diversify the tax base for the community. If ACE desires to present this to City Council, ACE should be prepared to describe the benefits of removing the tax . Ms. Brenengen indicated that the City needs to be careful and not create a disincentive. Mr. Panetta indicated that its time to cultivate entertainment and arts businesses. He pointed out that this tax is a deterrent to these businesses. Removing the tax is a way of backing up an idea that City Council says it supports. Mr. Rees asked if diversifying means adding more taxes to the business community. Councilperson Wolosyn indicated that adding more businesses is a step toward diversifying the tax base. Chairman Van Der Zwaag asked if ACE would endorse this item for consideration by City Council. Nick Panetta -Yes Doug Van Der Zwaag -Yes Steve Schalk -abstain due to conflict of interest Ms. Johnson will contact the other ACE members for their input. Mr. Panetta thanked Ms. Johnson for bringing this issue to the attention of ACE. He indicated that it's all about removing barriers to business. IV. Business Survey Ms. Johnson briefed the group on the business survey and indicated that it's a larger topic than can be discussed at this meeting. She indicated that this survey is being derived to be replicable over time. Ms. Johnson suggested that ACE form a sub-committee to review the business survey and called for volunteers: H.IGROUP\BOARDSIACclM u1u1<SIACE · 110801.Joc Subcommittee volunteers are : Councilperson Wolosyn Jim Rees Marilyn Brenengen V. Business Forums Ms. Johnson then introduced the topic off business forums as a complementary way of receiving input from the business community; ACE will sponsor these meetings to gather input of removing barriers in the City and determining a vision for the community. These meetings will be in the spring of 2002 and will be guided with the assistance of a consultant to facilitate these business forums. Ms. Johnson indicated that she would invite the consultant to the December ACE meeting if the group is interested in pursuing this topic. Mr. Panetta suggested that ACE explore the removal of barriers after the business surveys are in. The group agreed that this would be a good topic for further discussion in December. VI. Other Business • Ms. Brenengen discussed the interest in having an interactive kiosk designed to generate interest in Englewood's business community. Ms. Johnson indicated that a kiosk is being • designed for a site near the light rail station and sites along the proposed shuttle route. A sub-committee of interested parties will be formed to direct the project. VII. Adjournment There being no further business, Chairman Van Der Zwaag adjourned the meting at 1 :12 PM. 111~%-l---T-f- Darren Hollingswo-;'ih, Recording Secretary Pro-Tern H :IGROU PIB OARD SIACEIMinu <cslACE · 1 !0801.Joc •