By Lauren Young
Staff Writer
The much-debated Dewitt hotel tax was discussed at an invitation-only informational meeting for hoteliers last week, and the sentiment from that meeting was not one of support.
On March 22, Dewitt town officials held the invite-only meeting at the DoubleTree Hilton Hotel in Carrier Circle for members of the Greater Syracuse Hospitality & Tourism Association (GSHTA) – the first meeting they have had with hoteliers since the proposal’s conception.
“We had a very lengthy meeting,” said Supervisor Ed Michalenko. “They’re in favor of the project, and are looking for ways in which they can support the project. But in general, I would say they are not in favor at this point.”
The 2.75 percent tax, which will affect about 33 hotels in the Town of Dewitt, is estimated to rake in $1.4 million annually, with the revenue going toward capital projects.
The proposal has raised concerns from local hoteliers who fear their hotels will risk a competitive disadvantage following the increase, especially because Onondaga County already has an additional 5 percent room occupancy tax in place.
One attendant of that Thursday meeting, who asked not to be identified, found it surprising that the “private” meeting was legally allowed to be held, as he confirmed that four Dewitt town officials attended the meeting, including Supervisor Ed Michalenko and Councilors Kerry Mannion, Jack Dooling and Joseph Chiarenza.
While the RSVP-event was held in a room fit for over 40 people, the source said nearly half that amount attended.
According to state Open Meetings Law, if the majority of a town board holds a governmental meeting then it is considered a quorum; legally, this requires board meetings to be publicized prior to the date. This event, however, was not. No announcement of the meeting was available on the town website or Facebook page, or published as a legal notice in any newspaper.
According to the New York Department of State website, their open meetings law applies to “public bodies,” a term defined to include entities “consisting of two or more people that conduct public business and perform a governmental function for New York State, for an agency of the state, or for public corporations, such as cities, counties, towns, villages and school districts.”
According to DeWitt Town Attorney Tom Cerio, the meeting was legal. The meeting was considered an “informational session” to provide additional insight of the hotel tax to hotel representatives in Dewitt. He stated that none of the attending board members sat together or spoke during the meeting, with only Supervisor Michalenko presenting a slideshow presentation and answering questions when raised.
One hotelier at the event said he was concerned over the town’s “calculations based on fuzzy math” and its lack of facts and figures. He said that while hotel representatives realize the “importance of increasing town tourism,” they have concerns that the tax may lead Dewitt hotels to become “isolated” from surrounding hotels not affected by the 2.75 percent tax.
According to the hotelier, nearly “100 percent” of the hotel representatives present that night were not in favor of the project. The proposed tax, he said, is “troubling.”
On March 26, the proposed hotel tax was discussed again at a public hearing before the town board, although only a handful of community members were in attendance.
Resident Brian Carr voiced concerns over “placing 1.37 million worth of taxes on probably the highest tax group in the Town of Dewitt: the hoteliers.”
Carr, who has worked in the hotel industry for over 14 years, said he could tell them “for certain” that towns like Manlius and Salina “will absolutely” use the tax against Dewitt hoteliers. “Might only be three bucks, five bucks or six bucks. But you’re talking 526,000 room nights that you’re considering on taxing these people an extra 2.75 percent,” he said.
Michalenko said the board recognizes there is about $100 million of assessed property value for the hotels in Dewitt, and they value the impact its business has on the community.
“We’re probably the largest municipality in Onondaga County, in terms of its contributions to the hotel industry,” said Michalenko. “One of the main purposes of this proposal is to help that community of hotels strengthen business as they go forward, as we recognize they are the number one industry in the town of Dewitt.”
During the public hearing, Councilor Jack Dooling made a motion to close the public hearing and pass the bill, which was rejected by the board due to its “timing,” citing the need for an assembly bill number to be assigned first.
The town’s proposal needs approval by the state legislature to go into effect.
Assemblywoman Pamela Hunter’s Chief of Staff Lisa Sacco said they are currently awaiting approval from the homeroom council regarding the bill. If the bill passes, it will require approval from the assembly and senate.
“We’re committed to try to work with [the hoteliers], and put together a formula that gives us and them what they’re looking for,” said Michalenko. “Our hope is to push this money back into the Carrier Parks project, which will bring revenue to the hotels, and also push the funds back into projects,” such as infrastructure, utility and lighting improvements.
The town board plans to meet a second time with Dewitt hoteliers this week as they begin developing a budget to show representatives.
