Mayor, council debate Fairhope marketing plans

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FAIRHOPE – Mayor Karin Wilson said a Fairhope marketing plan will help local businesses recover from the economic effect of COVID-19, but City Council members are not supporting a tax increase to help pay for the proposal.

Wilson said at the City Council meeting April 27 that businesses need help and Fairhope needs those businesses.

“Supporting small business and trying to put together a marketing plan that will help them rebound,” she said. “It not only helps our local economy, but it helps the city recover as well, because sales tax is our number one income. One of Fairhope’s most important assets is the downtown area, the independent businesses and the entrepreneurs and personalities that make up these businesses.”

She said Fairhope depends on visitors more than other areas on the Eastern Shore.

“Fairhope is unique,” Wilson said. People don’t really vacation on some other areas on the Eastern Shore. So, it’s balancing what we feel like our small businesses are worth with the fact that we’re going to have to start out with locals and talking about how important spending dollars locally is now more than ever, and, when it’s safe putting money toward tourism that piggybacks on what the Gulf Coast is doing.”

The mayor said the initial estimate for the plan would be about $65,000.

Wilson said marketing could be paid for through an increase in lodging taxes or a fuel tax. She said Fairhope’s 6-percent lodging tax is less than the area average of 7 percent and Fairhope is the only municipality in Baldwin County that does not charge a tax on gasoline and diesel fuel.

Council President Jack Burrell said he did not oppose helping businesses but wanted more details about the plan and how the money would be spent before he would support the proposal.

“I haven’t seen enough details as to what we were going to be doing, where the money is going to be going and what the anticipated return on investment is,” Burrell said. “I’m not closing the door on that. I’m not closing the door on wanting to spend money to attract business and more sales, but I haven’t seen enough to convince me right now.”

He said he did not support tax increases.

“I’m not a tax and spend kind of guy,” Burrell said. “I like keeping our taxes low. We didn’t want to be the highest in the county at 7 percent. We kept it that way for a reason.”

Burrell said Fairhope has a reserve fund that could be used for efforts such as reviving local businesses.

Councilman Jay Robinson said he supported helping local businesses. He said, however, that he did not know if officials should wait before deciding the best way to extend support.

“I assume that most would be in favor of doing something to boost our local economy in any way that we can within reason,” Robinson said. “What I struggle with in this is the best way to do that and the appropriate time to do that. When I say appropriate time, when it would be the most impactful for our local economy.”

Burrell asked if any council members wanted to introduce a resolution to establish the marketing plan. No council member made a motion.

Wilson said the city needs to move now and not wait.

“I think you’re adverse to investing money in economic development every time we need more,” she told council members. “I’d rather say not to exceed this and show what we’re going to be doing. It’s going to be a fluid decision because we don’t know what each week is going to bring, but to say that you don’t want to spend any money, because I don’t know if it’s going to do anything. I’m telling you it’s not the way to do it. It really isn’t. I’m a businessperson. I’ve been doing this a long time. It just blows my mind.”