Spencer Pitches Visitor Center Proposal but Chamber Doesn't Want to Vacate Building

Tom Spencer, a local business owner and , followed up with a formal proposal for the Enumclaw City Council Wednesday night after to take over the management of the city Visitor Center at no cost to the city while paying rent at market rate.

Spencer, who currently runs www.EnumclawBusiness.com, an online directory of more than 550 local businesses, included in his proposal:

• Giving Crystal Mountain a physical location in Enumclaw -- possibly to represent them and and be able to sell gondala tickets in town.
• Building a website specific to the Visitor Center.
• Representing businesses that aren't in the downtown corridor by providing displays for them in the Center, such as Wapiti Woolies in Greenwater.
• Staffing the center with quality volunteers as well as paid staff.
• Providing signage and visuals such as a mural on the side of the Visitor Center building.
• Hosting 'late night, Thursday night midnight madness' for people who work and can't get downtown during the day to shop and hang out when the stores would stay open.
• Installing an interactive video center in the Visitor Center as well as Green Trail Maps for hiking enthusiasts.

“We think there’s so much available in Enumclaw that has not been tapped into,” he said.

There is a lack of trust within the business community in downtown Enumclaw, he said. It's tough to win over merchants who seemingly feel they've been misrepresented, so he's asking for them to come together as a co-op and try something together.

Spencer's proposal came after word that the Enumclaw Chamber of Commerce, due to financial shortfalls, .

He noted prior to his presentation to Council, however, that should the Chamber opt not to vacate the building, his proposal would have no merit.

Chamber President Tim Pierick has since clarified the Chamber's position on the Visitor Center (read his E to Patch). He told Council last week that historically, the Chamber runs the Center with a stipend from the city but that the Chamber itself is a self-sustaining membership organization separate from the Visitor Center.

Chamber Board member Steve Cadematori addressed Council yesterday and further added, "we have no intent to vacate the building," he said. It's involved "a lot of blood, sweat and tears."

The problem, he said, was that with continually diminishing financial support from the city, "the Chamber has found it difficult to keep a trained person always out and available, talking to everyone who comes into the city. .. There is not a desire on the Chamber of Commerce park to walk away from the Visitor Center."

But over the last three to four years, funding from the city has dropped from $30,000 to $25,000, to $12,000 to just a $3,000 rental subsidy this past year, he said. The Chamber is requesting $25,000 from the city this year.

Mayor Liz Reynolds did clarify that the Chamber receives about $8,400 a year in in-kind donation for the rent as it does not pay market rate.

Compare Enumclaw to other cities that surround Mount Rainier National Park, such as Elbe, Ashford, Packwood and even Tacoma -- government has always been involved in some form with the visitor centers in these towns, Cadematori said.

Of Spencer's for-profit proposal, he said, "To have private business come in and represent the city, their motive, rationally, is going to be, 'I'm going to meet every business in town, and every business will be a customer for my private business.'"

It will develop relationships, sell online ads, build websites and even provide moving services, but "they're not representative of the whole business," he said. "They're representative of what the proprietor needs to do to support themselves."

But with the Chamber, the Visitor Center, “it’s our core function," he said. "It's what we do as a non-profit – it’s for everyobody. … It’s just something that is costly.”

Reynolds asked Cadematori to expand on last week's statement from Pierick that the Chambers reserves were being used. "The reserves are gone," he replied.

To weather seasonal ups and downs, he said, the Chamber needs about $20,000 in the bank, though the body has no formal policy about what needs to be in reserves at any given time.

A possible fund source for the Chamber may come from the city's Lodging Tax Fund, from which the revenues collected are to be used to promote tourism in the city.

Finance Director Stephanie McKenzie reported that the lodging tax and advisory committee which was made up of members of local hotels, the city council, Chamber and Rotary Club, that thought that the fund needed to exceed $10,000 before it could be tapped. 

The year-end estimate for this fund is about $12,000.

According to Councilman Jeff Beckwith, there is not a minimum fund balance that needs to be met prior to the money being spent. "Most cities take it to zero every year," he said.

"We also don't have to ask that committee what we'll spend it on," he said. "We'd only ask if we're going to change the percentage collected or change the manner of collection."

Using the funds for the Visitor Center is valid, he said.

Cadematori, who was on the original committee, said the committee is supposed to meet every year and would be making recommendations to Council about the funds. 

The funds have not been used as far back as 2010.

In other news:

Green River Community College: Deanna Burnett-Keener, program director for the Green River Community College Small Business Assistance Center (SBAC) updated Council on the work the center has done this past year in Enumclaw, following the college's request for $4,000 for next year. The center has seen 22 clients in 62 sessions for 90 hours of direct service this year, she said. 

Since this year, the center is supporting clients by asking them to meet on the Auburn campus to cut costs.

The requested $4,000 would be targeted to special workshops, seminars and classes that would do the most good for local businesses, she said.

Councilman Jeff Beckwith said assisting SBAC is an investment for the city. "We'd get that back in a whole lot more in business revenue for the city," he said. "It's a crucial part for our business development plan."

Mayor Liz Reynolds asked Burnett-Keener if the workshops could be customized to local needs to ensure maximum participation. "Absolutely," she replied, acknowledging that local leaders know the needs of business owners best.

Revenue Bond Fund: McKenzie reported that due to the city's reserves and low debt load, it currently has a double-A minus rating, which is good for a city this size. With regards to reserves, she said the state auditor wants the city to be able to have two months of reserves to cover operating expenses, which is about 16 percent; Enumclaw currently has 8 percent.

Welcome Center Construction Fund: City Administrator Mike Thomas reported that participating agencies including the Parks Service and Forest Service have now identified a pathway to pursue in which to move toward construction. Thanks in part to U.S. Rep. Dave Reichert for helping to facilitate the process, construction could begin by June 2012.

REET Funds: The ending fund balances are slightly less than reserve goals, Thomas said.

Cementery Fund: continues to operate the property, said McKenzie. The city needs to maintain some level of funding for people who had purchased lots from the city but might want to sell back the lots. The city is entering year three of five in its contract with Weeks.

Property Management Fund: Administration is proposed to transfer about $56,000 from this fund that's collected from rent on city-owned property to the general fund this year, said McKenzie.

Beckwith was unsure about the legality of doing so given a Council ordinance related to use of fund money. The question would be referred to City Attorney Mike Reynolds.