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HomeMy WebLinkAboutcclc.minutes.07212004 COMMERCIAL CORE & LODGING COMMISSION MINUTES OF JULY 21. 2004 Chairperson, BillDinsmoor called the meeting to order at 8:30 a.m. Commissioners in attendance: Charles Kennedy, Andrew Kole, Mark Goodman and John Start. Excused were Marc Breslin, Eric Cohen and Terry Butler. Sales Tax _ Shipping out of state - John Worcester Bill said because of the nature of the product and the tax they aren't collecting should their be a different way to account for that in a business license fee or are there other mechanisms to employ to get people to pay more that shipping fee out of state. John stated that Colo. has a point of delivery sales tax. CML (Colorado Municipal League) was very discouraging to change the state law. The front range has designed their taxes from buying in certain communities. Point of sales to point of delivery would be difficult. Paul Menter said Larry Thoreson feels there aren't a lot of empty boxes being shipped. John said there is nothing illegal about having things shipped to their homes. Bill asked if we could impose some sort of fee for those kind of stores. The cost that the consumer pays for purchasing a product in our city. John said taxes have to be uniform. John said the City can control business licenses. We have a progressive tax 'based on the number of employees. That is the occupation tax that you get when you pay your business license. Bill asked if the dollar value percentage could be based on gross. Paul said that would then becomes an income tax which is illegal. Andrew asked if we could charge a base shipping fee? John said the fee has to be related to some kind of cost to the City if we could base it on something you could do it. COMMERCIAL CORE & LODGING COMMISSION MINUTES OF JuLY21~ 20(? Andrew said it w°uldn't fall under a tax but it would be a shipping fee. Paul said you need a vote to impose a tax. John said you would need to find a nexus to tie the fee together. Paul said the business license fee is justified because we provide additional services. There is approximately 30% City wide deficit for shipping. The leakage is not all shipping. Andrew: What does the license fee raise per year. Paul said $160,000 a year. John said you wouldn't win with the front range in an election. The system on the front range is very involved. We have the tax upon point of del/very as opposed to point of sale. John said when you ship you need to keep a shipping receipt and it has to match he sales receipt when an audit occurs. If you ship a rolex watch you need insurance and if the box is empty that is insurance fraud. Paul said the hole in the system is that there is an underground economy in this town. John said people are willing to take a loss just 'to have a presence in this town. Mark Goodman asked about a luxury tax. Over a certain ticket item you have to have it shipped. John said they would be exempt if it is shipped over seas. Challenge Aspen The request is to sell Crispy cream donuts at the Saturday Market. The donuts would be 50% pre-ordered or 50% ordered at the site. John said he would oppose any food item that is walking around the market. The concept needs to be that it is not for consumption on the stie. I do not want to cross that line. Taking orders is different. COMMERCIAL CORE & LODGING COMMISSION MINUTES OF JULY 21, There are 12 donuts to a box and they are only selling boxes not individual donuts. Andrew said we have space in the market where the non-profits are located. Mark asked where they were made?_ The applicant said Grand Junction. Charles said he is less and less feeling like he should protect something. Let the Saturday be as much fun as it can be. John said the entire issue is about food consumption. Bill said the market place is an inappropriate place to sell the donuts. John said city council does not want the market to take business away and council also doesn't want the market to compete with local businesses. Andrew suggested letting them have one week. Bill said if they had the opportunity to take things home he might feel different. If the boxes were well taped shut he would be more comfortable. The board voted to allow the ordering and sale of donuts by the dozen August 7th in the park. Lisa Baker- Update - One of the restaurant owners said that the chairs in the mall might encourage lam/lies to bring picnics and compete with restaurants. The tables and chairs are being used on a regular basis. John asked if the tables and chairs have m/grated? Lisa said they mostly stayed where they put them. Lisa talked about "Col or the core" which involves businesses putting out potted planters to enhance the core. Applicants are given 100 to buy potted plants and pots. The contest is for the over presence of your business front. Lisa said the BID consultant is from -Cedar Rapids Michigan and she is their former mayor. She will arrive the 18th of August and interview the COMMERCIAL CORE & LODGING COMMISSION MINUTES OF JULY 21 2004 opinion leaders and landowners. The CCLC requested Lisa to have the consultant come to the 18th meeting. Meeting adjourned at 11:00 a.m. Kathleen J. Strickland, Chief Deputy City Clerk