We, Mayor Pro-tem, Dr. Estella Shabazz, Alderwomen Kesha Gibson-Carter, Alicia Miller-Blakely and Bryant-Lanier, announce the proposed legislation to increase the hotel/motel tax from 6% to 8% will not be passed again this year. This 33% increase in the levy was billed as a funding opportunity for facilities operation at the Savannah Trade & Convention Center, tourism marketing, and tourism products; to include, Savannah Waterfront, Tide to Town, Water Works building, Downtown to Arena sidewalks, Southside water access property, “wayfinding” signage, and a museum. Additionally, it included a loose agreement to market African American tourism and convention business in Savannah. However, the Memorandum of Agreement between the City of Savannah and Visit Savannah contained no specific funds allocated to this worthy objective, and nowhere were any Community Benefits Agreement or DBE requirements mentioned relative to the capital improvement projects. Further, cost estimates and legitimate quotes were never presented which create volatile projections.

 

We implored our State Delegation members to recognize these glaring shortcomings, and other obvious defects, and to give all parties an opportunity for an equitable correction.

 

The citizens of Savannah, now have an opportunity to develop a more specific & clear plan that will  be reflective of what they want, and have a stronger chance of accomplishing worthwhile goals.

 

We, as members of council stand ready to collaborate with our colleagues and Visit Savannah—as our client, not the other way around. Reflective of this new council, the notion of business as usual is changing, as well it needs to.

 

Procedurally, we were shut out of final discussions and negotiations of the Hotel/Motel tax increase. Also, the “New Rules of Council” effectively blocked us from putting the matter on the city council agenda. Consequently, this tax increase was handled between the Mayor, a “select” few Council members, staff, and the executive leadership of Visit Savannah. Once the details of the contract (MOA) between Visit Savannah and the City of Savannah were discovered, both Alderwoman Lanier and Alderwoman Shabazz immediately withdrew their support and joined Alderwomen At -Large Alicia Miller-Blakely and Kesha Gibson-Carter in opposing the bill.

 

After failed negotiations with our City Manager and staff, where we were advocating for an adjustment of just $7.5 million of the $65 million resource; requests included: $2.5 million for Urban Development Authority & Black Chamber, $2 million for West Bay Street Gateway, $1 million for Forsyth Park, and $1.5 million for a film induced tourism product. Collectively we communicated our deep concern to the entire Legislative Delegation, seeking their intervention, and was successful.

 

We want to acknowledge that there are some extremely important and worthy tourism development projects that were identified for funding through this tax increase. However, we need to revisit the Tide to Town Trail Network that bodes $10,000,000 in the current proposal, but would actually receive $20,000.000. In addition, $20,000,000 for another facelift for River Street was misguided. Plus dedicating roughly $27,000,000 of the funding to developing the Canal District did not exactly fit with the mission of increasing African American tourism - especially when no specific amount was budgeted to directly accomplishing this worthy goal.

 

Further, we know there are other more appropriate funding streams available to council for funding important recreational infrastructure projects like Impact, Port, & PILOT Fees and next SPLOST opportunities. We are asking our City Manager, Mayor colleagues and city staff, to look to these funding methods instead of dressing up a bundle of Canal District capital improvement projects under the guise of increasing African American tourism.

 

Also, giving Visit Savannah more funding to bring more tourists to Savannah seemed to be in direct conflict to many campaign commitments to, safeguard residents' quality of life and to increase wages in the tourism sector—the largest contributing source of poverty level employment in our city.

 

Annually, Savannah allocates over $10,000,000 from the city’s Hotel/Motel tax to support the growth and development of tourism. We suggest they review where and how they spend this considerable budget and ask why they have not already developed an African American strategy, before now.

 

Finally, we recommend that the legislature consider updating O.C.G.A. 48-13-51 to give more flexibility and standing to cities like the City of Savannah. Along with the benefits of tourism, we must acknowledge the impacts of tourism that directly impact service delivery. We need more flexibility in the current law. Without revision to O.C.G.A. 48-13-51.

 

We stand committed to providing just and equitable stewardship for all citizens of Savannah.