City officials question effectiveness of dollars spent on tourism

REACHING OUT: Union County Tourism's destination marketing efforts extend to regional and national publications. Still, members of the La Grande City Council question whether UCT spends its money effectively. (Observer photo illustration).

- Bill Rautenstrauch

The Observer

As the City of La Grande looks for some new directions in economic development, the political waters remain choppy.

Since early 2006, the council has been trying to re-define goals and objectives for entities that get support from the city's general fund — especially Union County Tourism and the Union County Economic Development Corp.

Both those organizations have been scrutinized closely by the council in recent months. The debate continued last week as the governing body held stormy meetings with both.

The possibility of a cut in the amount of money the City of La Grande gives Union County Tourism was raised during a work session Sept. 17 at City Hall.

This fiscal year, the city contributed $102,000, a sum representing about 60 percent of city transient room tax collections. Some members of the council say they want a better accounting of how the money is spent and how much good it does La Grande.

"I'll be honest with you. I'm not convinced we're getting our money's worth," Mayor Colleen Johnson said during the sometimes-contentious session.

Some council members question whether UCT does enough to promote events specific to La Grande, and whether at least a portion of the city's money might be better spent elsewhere. Johnson is among them.

"The focus of the city council is now supposed to be on improving downtown," she said during the work session. "We have limited money, so how can we focus on that if we're not willing to shift things around?"

Union County Tourism, headed by Executive Director Janet Dodson, promotes events and attractions, buys advertising in local and regional publications, answers queries from visitors, and provides other tourism-related support.

Its mission, in a nutshell, is tourism marketing and development. It often teams on projects with the Eastern Oregon Visitors Association, Travel Oregon and local destination marketing organizations, including chambers of commerce.

The organization, which relies heavily on City of La Grande and Union County transient room tax funding, frequently takes a regional approach to its work, but also helps with marketing and development of special events in Union County's cities.

During the Monday work session, Dodson and the council debated the effectiveness of the organization and whether, from the city's standpoint, some new approach should be considered.

Johnson cited figures that showed tourism-related job growth in Baker and Wallowa counties well ahead of Union County.

"It seems like we're losing ground," she said.

Dodson replied that job numbers may not be the best indicator of tourism's benefits for the community. She pointed instead to steady increases in revenues from transient room taxes.

"We've done a lot. The growth we've had in TRT is wonderful," she said.

Union County, Dodson said, lacks the strong tourist attractions Baker and Wallowa counties have. But that is not a good reason to consider a cut in funding for tourism development, she added.

"You've got to think of it as a marketing arm of economic development," she said. "How many speciality shops and restaurants would suffer if we didn't have tourism?"

She said benefits are often seen long-term because some people who visit return to stay.

"Tourism brings in people who are looking to retire or make a move," she said.

But most councilors speaking out said they are interested in seeing some changes.

Di Lyn Larsen-Hill said she agreed with the mayor that "maybe things need to be shaken up a bit."

"I don't think there's any doubt things need to be shifted around," she said. "Grant Pass is the success story these days. They did something visible and tangible, and why can't we? What about our downtown? Maybe we should start throwing money at that."

Todd Richmond was more outspoken, saying he is disappointed with the the area's tourism industry.

"When I was elected, I said I wanted to work to make La Grande exciting. And I've got to say tourism around here is not exciting," he said.

Union County Tourism heavily promotes attractions like the Hells Canyon Scenic Byway, the Eagle Cap Excursion Train and Buffalo Peak Golf Course.

Dodson said those things go a long way toward building the visitor count. But the council remains troubled by the lack of a La Grande-specific event.

In La Grande, UCT supports the Farmers Market, held twice a week through the spring and summer months; the annual Crazy Days celebration staged by the La Grande Downtown Development Association; and the weekly Third Thursday Art Walk.

None of those, however, generate the visitor numbers the city council would like to see. Last year, the council told UCT it hopes to develop something on a grander scale.

In July, 2006, the city requested UCT set aside $10,000 of the city money to create a local "signature" event, expand and enhance existing events, or both.

As directed by the council, Dodson formed a committee made up of representatives of UCT, the Union County Chamber of Commerce, the La Grande Downtown Development Association and the city.

After exploring several possibilities, the committee decided on a car-related event called "Rally in the Valley," which would happen in September 2008.

Since the rally was not scheduled to take place for two years, UCT decided to set aside $500 a month in a La Grande special events fund, with an eye toward building $10,000.

By the start of the current fiscal year, Dodson had placed $5,000 into the special events fund.

Then, at the request of the city, she spent $2,300 of it to support the Taste of Union County and Valley of Charms promotions.

In the meantime, plans for the Rally in the Valley were scrapped because people working on the project didn't have enough time to devote to it.

In place of the rally, the committee began fleshing out plans for a La Grande tie-in to the Timber Cruisers car show scheduled to take place at the Elgin Riverfest in June 2008.

All those efforts, outlined in a packet of information submitted by Dodson at the work session, didn't seem to be enough for city councilor Dan Pokorney.

"We gave you money for a project and you didn't do it," Pokorney said.

Dodson replied that UCT acted on the expectations the council defined the previous summer.

During a regular session in August this year, the council revisited the UCT issue, setting up the work session and passing a resolution that $10,000 of room tax allocations be set aside for special projects "as approved by the council."

Johnson made clear at the work session that none of that money — nor the money remaining from last year — is to be used unless the council approves.

The UCT also administers a $5,000 account for local mini-grants, money also provided by the city. Johnson said no mini-grants are to be awarded unless approved by the council.

But beyond that, nothing is settled. The council and UCT both agreed that more work sessions are needed.

"We're pleased to have the opportunity to talk about it," Dodson said this week. "We look forward to talking with the city, finding out what their desired outcome is, and how to get there."

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Next: Relations between the the city council and the Union County Economic Development Corp. remain stormy as the entities try to finalize a partnrship agreement.