TOWN COUNCIL: Meal Tax Receipts Are Shot in Arm

By DORIE SOUTHERN
Cape Charles Wave

October 15, 2012

Meal tax receipts in Cape Charles increased by 35 percent in the past three-month period compared to a year earlier, generating an extra $22,000 for Town coffers.

Total meal tax revenue for the July-September first fiscal quarter was nearly $86,000. The same period last year drew less than $64,000.

Although Town Treasurer Kim Coates didn’t provide Town Council a reason for the big jump in tax proceeds, Council members should be able to figure it out. Following Council meetings they have been seen congregating at The Shanty, Cape Charles’ newest restaurant.

Treasurer Coats announced at the October 11 meeting that property tax bills would be mailed out soon. Property tax is due the first week of December.

TRAFFIC STUDY

In other Town Council business, Vice Mayor Chris Bannon was the only member voting against a resolution to request VDOT studies for peak season and off season traffic flow through the intersection of Randolph Avenue and Fig Street. “It’s a waste of time and money, and we could end up with a traffic circle,” Bannon said.

Councilman Frank Wendell expressed concern that kids, bikes, electric wheel chairs, and golf carts all had to navigate the intersection without aid of a stop sign.

Mayor Dora Sullivan was worried about the new fence at New Roots Youth Garden, which she said blocks people’s line of sight while crossing Randolph on Fig.

SIDEWALK REPAIR

Council member Tom Godwin was disappointed by the quality of the work of ongoing VDOT-managed sidewalk repair. He said he would prefer to repair the sidewalk in front of his mother’s house at his own expense. Many of the Town’s original sidewalks bear the company name of Godwin, but Councilman Godwin did not mention whether there is a family connection.

Public Works Director Dave Fauber expressed surprise that the sidewalk repairs were not acceptable to Godwin and said he would inspect them immediately. The sidewalks are a VDOT responsibility.

OLD SCHOOL TAX CREDITS

During public comment time, Deborah Bender informed Town Council that Town Manager Heather Arcos had submitted an application to the Virginia Department of Historic Resources requesting a tax credit for the old school at Central Park. Bender noted that Town staff previously had maintained that the Town could not apply for tax credits.

Arcos said in her report to Council that although she signed the tax credit application, she did not fill it out. That was done by a consultant for Echelon Resources, Inc., which has a contract to buy the school for $10.

CHERITON SEWAGE TO CAPE CHARLES

The Public Service Authority is moving forward with plans to pipe sewage from Highway 13 businesses to the new Cape Charles treatment plant. Assistant Town Manager Bob Panek is also chairman of the PSA. He reported that prospective work was dependent on grant funding.

Councilman Godwin asked about the prospect of providing sewerage for the Town of Cheriton. Panek said Cheriton cannot afford it at this time because little grant money is available.

BANK BUILDING BOUGHT FOR LIBRARY

The Town owns the former Bank of America building as of October 5, Manager Arcos reported. She gave no estimate for when the library relocation to the building will take place.

TOWN COUNCIL CANDIDATE FORUM

The Town will sponsor a candidate forum 6 p.m. Thursday, October 25, at the Palace Theatre. The two candidates for Town Council are Steve Bennett and Dan Burke. The special election is concurrent with the November 6 general election.

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Comments

7 Responses to “TOWN COUNCIL: Meal Tax Receipts Are Shot in Arm”

  1. Bruce Lindeman on October 15th, 2012 9:00 am

    It’ll be sad to see the old library move to the old BOA building. I know it is for the better with more space available. I just hope the town continues to use and maintain the old library for overflow, special programs, etc. It’s just such an iconic old building.

  2. Allan Burns on October 15th, 2012 10:14 am

    The number of business establishments of interest to tourists has been increasing in Cape Charles. We have been sending more and more tourists into Cape Charles from the Welcome Center at the Bay Bridge-Tunnel. From feedback comments received, I am certain that this has had a significant effect on meals served and meal tax receipts.

    Allan Burns, Manager
    ESVA Welcome Center

  3. Mike Kuzma, Jr on October 16th, 2012 12:55 pm

    Actually, Mr. Burns, as per the articles above there is now LESS businesses to visit in CC. (Bay Creek Shops Foreclosed)
    As to the increase, it is fairly clearly stated in the article that the new restaurant is the biggest factor in the increase.
    Like Art Laffer says, if you increase the economic engine, you can DECREASE taxes and still bring in more to the entity doing the taxing.

  4. Allan Burns on October 18th, 2012 11:17 am

    Actually, my comment was directed to the increased number of businesses in the recent past (e.g., The Shanty, Brown Dog Ice Cream, Hotel Cape Charles, Moonrise Jewelry). Bay Creek Marina Shops are still open until October 20.

  5. Mike Kuzma, Jr on October 19th, 2012 11:45 am

    Not trying to be contentious, but those are mere replacements to previous businesses. The Shanty is the only ‘new’ ratable.

    And as for the Hotel, it will be difficult for them to turn a profit if they are forced to remove/replace the charming dividers that in no way shape or form detract from the historic nature of the block………..I’d say the empty brick building circa 1970’s is far more a blight than non-wrought iron dividers.

  6. David Gammino on October 22nd, 2012 4:16 pm

    We at the Hotel are pretty proud of our part in this process, with approximately 1500 guests this summer. Of course, we might have doubled that number if we had a historic facade.

  7. Mike Kuzma, Jr on October 25th, 2012 2:01 pm

    As well you should be Mr. Gammino. You have created a unique and beautiful product that should be nurtured, and supported (non-economically) by the Town to ensure further visits, and increased revenues (to the town) in the form of increased economic activity increasing tax revenues.

    Art Laffer can attest to that!