Mayor: Lack of liquor law has lost
eateries for city
By Thomas Wilson
STAR STAFF
twilson@starhq.com
Has the inability to sell alcoholic beverages
damaged one avenue of economic development for Elizabethton?
Yes, according to the city's mayor, who says
upscale chain restaurants didn't locate in Elizabethton because
the county and city don't sell liquor-by-the-drink.
"We have been told informally on more than one
occasion by the restaurant chains we have talked to they are
not interested in an area that doesn't serve liquor-by-the-drink,"
Mayor Sam LaPorte told members of the Elizabethton Rotary
Club on Wednesday. "If we do obtain a neighborhood in which
we have (alcohol), they would be interested in talking to
us."
A county or city can earn the right to serve
alcohol via public referendum placed on the ballot for a county
election. State law requires a petition bearing the signature
of at least 10 percent of the total number of registered voters
in the county or municipality who voted in the most recent
gubernatorial election.
If a petition for referendum were initiated for
the city of Elizabethton only, the petition would need only
10 percent of those voters from Elizabethton -- approximately
310 citizens -- to bring the referendum to the Aug. 5 county
general election ballot.
As the meeting's guest speaker, LaPorte also
talked about challenges facing the city given rising health
care costs and stagnant tax revenues. Elizabethton city government
has slashed its budget by double-digits in each of the past
two years as state-shared revenues have diminished and local
sales tax revenues have stagnated.
While the City Council also performs as the city's
Beverage Board to regulate the sale of beer at licensed establishments
in the city, the Tennessee Alcoholic Beverage Commission issues
liquor licenses for restaurants and package stores.
A county-wide local option sales tax referendum
on the Feb. 10 ballot could mean big dollars for the city
if voters pass the measure. Voters will vote yes or no to
raise the county's local option sales tax rate by one-half
percent from 2.25 percent to 2.75 percent.
County commissioners were faced with the quandary
of putting a sales tax increase to a referendum when state
lawmakers informed county governments a raise in the sales
tax could be mandated by the state. If the state mandates
the raise, revenue generated could go directly into state
coffers. Elizabethton government would stand to receive $1,066,000
in new sales tax revenue, according to estimates of the city's
finance department.
LaPorte said the state had the power to usurp
shared revenues for use in the state government. "In all honesty,
it would not surprise me to see them take that half percent,"
he said. "I'd rather see it stay at the local level than see
the state take it."
Carter County officials estimate the .5-percent
increase would produce approximately $700,000 for the county.
The Carter County School System would receive $500,000, while
Elizabethton City Schools would see an estimated $200,000
in new dollars.
LaPorte said the City Council has not taken a
stand on the referendum, but added the decision of keeping
tax dollars in the community or sending them to Nashville
should make local voters think when they go to the polls.
He said if the referendum passed, the city's revenue largess
could boost infrastructure needs and perhaps restore budget
cuts absorbed by city departments in the past two years.
The city's police and fire departments have suffered
budget cuts in the past two years as the city has cut its
budget to make up ground for declining state-shared revenues.
"It is hard to convince people to vote for more
taxes," LaPorte said.
He also noted one of the greatest barriers to
economic development, according to analysis by local economic
experts, is the lacking skilled labor force. A study conducted
by East Tennessee State University found a serious skills
gap in the workforce of Northeast Tennessee. While LaPorte
said public educators were doing a good job, the region's
high school dropout rate and skills gap did not bode well
for major economic development with technology the common
denominator in the new industrial age.
On the positive tip, LaPorte talked up the city's
accomplishments of the last several years in infrastructure
improvements and no property tax increases since 1992.
He also said restoration of the Elk Avenue Bridge
would likely not be completed until spring. Extensive renovation
work needed for the bridge and damage incurred during flooding
last month have set the project back at least six months from
its original completion date of November 2003.
He also said the city could expect greater sales
tax receipts from the new Wal-Mart Supercenter when it opens.
Demolition work began earlier this month on the former North
American Rayon Corp. building to make way for the super center
store. Completion of the supercenter store is projected for
August.