MONO SUPES DEBATE CHAMBER LOAN
On Tuesday, the Mono County Board of Supervisors entertained the authorization of a loan agreement with the June Lake Chamber of Commerce to fund a possible Tourism Business Improvement District (TBID).
The item was on the agenda of the Supervisors’ regular board meeting held in Bridgeport.
“The board has discussed this item in the past,” said Supervisor Rhonda Duggan “and the June Lake Chamber of Commerce has requested that the Board fund a loan … If the TBID is approved, it would be paid back from that TBID, back to the County. If the TBID is not approved, there is language in [the packet] that allows for negotiation with the Chamber of Commerce.”
The parameters of the loan agreement, which was written as not to exceed the amount of $47,000, became subject to scrutiny, across the Board.
“I have some questions about the repayment … of the agreement,” said Supervisor Jennifer Kreitz.
Kreitz read an excerpt from Section 3 of the agreement which stated that, to the extent permitted by law, if a TBID were to be enacted in June Lake, repayment of the loan—should it be granted by the county—be made through withholding, by Mono County, an amount equal to the loan granted, plus interest.
“Why is the language that we’re going to decide how [the loan] will get repaid if it’s not passed, later? Why was that not explored and better fleshed out, now?” asked Kreitz.
Kevin Larsen, Secretary of the June Lake Chamber of Commerce, answer Kreitz by saying “[The loan agreement] reads in good faith regarding the ability of the Chamber to repay, but I’m not sure what the negotiated terms were in that regard.”
Kreitz reasoned that her concerns related to the repayment of the TBID loan were due, in part to the nature of the funding. Namely, that a loan is subject to different stipulations than a grant.
“Typically,” Kreitz explained, “when you give a loan, you vet the person you’re giving the loan to, or the entity. Do we know what the financial capacity of the Chamber is to repay this?”
Larsen assured Kreitz and her fellow supervisors that Civitas Partners—the consultant engaged in the development of the potential TBID—charges by the month.
“We’ll know within a month or two whether [the TBID] is going to go as desired for businesses … We’re not going to get into $47,000 worth of debt and have it not go,” said Larsen.
Supervisor Rhonda Duggan soon opened the item up for public comment in Bridgeport, which was ripe with no less controversy.
Local businessman Don Morton (see related letter page four) took to the floor to voice his concerns as warranted by the proposed TBID.
“At best, this TBID is controversial,” said Morton. “I do not know of one business person that supports it … I want to know specifics, because taxing ourselves to stock fish seems odd to me.”
Morton expressed that the proposed TBID lacks clarity, and does not benefit all businesses within June Lake equally.
“It wouldn’t hurt us to delay this,” advised Morton. A $47,000 loan is still a $47,000 dollar loan.”
Julie Brown, Vice President of Operations at June Mountain, disagreed.
“I appreciate Don Morton’s comments,” said Brown, “and I agree that it should be a very transparent process. But we’ve done it before in the County. It’s been a great benefit to the incorporated area of Mono County.
In July of 2013, Mammoth passed its own TBID. More recently, the City of Bishop followed suit.
Jeremy Ross, owner of Ernie’s Tackle Shop, offered that he’d spoken to many business owners in town, namely in the marinas and retail sector.
“There’s been a misunderstanding in our town, thinking that we’re just trying to push this through,” said Ross, in support the TBID. “All we’re trying to do is get the ball rolling. In order to do that, we have to secure the funds.”
Following public comment, Supervisor Bob Gardner voiced that, while he has been supportive of the Chamber’s efforts to pursue a TBID, there remains to be seen the necessary clarification regarding “what the funds will be used for.”
“I don’t think we need to necessarily hire a consultant to go ask businesses, and nail down some of these details. I think … basically, the Chamber needs to get some skin in the game and get out there.”
It soon became clear the Supervisors were not going to grant the loan without more community outreach.
Larsen voiced frustration at the stalemate.
“It’s a little frustrating to hear this turn,” said the Secretary. “All we were looking for was an answer of whether or not the funds would be loaned, but that’s fine. But I would like a more clear definition of ‘skin in the game’.”
Again, the Board encouraged the Chamber to demonstrate outreach with June Lake business owners and community members to gauge appetite for the TBID.
The motion for the Board to approve the loan agreement with the June Lake Chamber of Commerce failed, with Supervisor Duggan and Supervisor Lynda Salcido voting for, and Supervisor Kreitz and Supervisor Gardner voting against. Supervisor John Peters was not present for the vote. The item was re-agendized for a future meeting of the Board of Supervisors.
