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Conference Center discussion gets heated

The first of two required readings of the Manchester City 2024-25 budget passed the Board of Mayor and Aldermen Aug. 2 during a special call meeting despite an objection to the city’s contribution to the Manchester Coffee County Conference Center.

This year’s budget includes a contribution to the Manchester Conference Center of $350,000. That amount carries over from last year’s budget. It was set as a compromise from the original request of about $500,000.

“I won’t vote for a budget that includes any appropriation for that conference center,” Alderman Julie Anderson said.

Anderson, citing TCA code, said state law requires public building authorities to charge enough revenue to cover their operating costs.

“I’m concerned that we’re funding something for $350,000 that is required by law to be self-sustaining and is unfairly competing against our tax paying small businesses,” Anderson said.

Alderman Ryan French said that interpretation of the code was deliberately misapplied.

“You are misrepresenting the law,” French said. “There is an audit violation that represents the violation that you are concerning. That audit violation is the result of this board not providing a funding mechanism and it being a contribution and not being a funding mechanism.”

French said that it was misleading to accuse the PBA of a violation when the fault lies with BOMA. On several occasions the PBA has approached the city asking the city to redesignate the way hotel/motel tax funds are used. The city has thus far been reluctant to adjust the fund, which is grandfathered in to allow the city to add a portion of those funds to the general fund rather than apply it, as the state suggests, to tourism applications.

“To sit here and mislead people to say that this is some egregious thing they are doing is untruthful,” French said. “It is a flat out manipulated lie. It has been repeated over and over again…”

Anderson alleged that French’s participation in the discussion is a conflict of interest because the Alderman’s wife is the general manager of the conference center.

City Attorney Craig Johnson repeated the opinion he expressed a year ago when the subject came up. He called the matter an indirect conflict because it is not a one-on-one ownership in that contract. An indirect conflict is remedied by the official publicly disclosing what the conflict is.

Two local restaurant owners addressed the board with concerns they have about the conference center’s catering events offsite.

Mercantile Cafe owner Renee Holt said the conference center negatively impacts their sales.

“I do not make any money at the restaurant,” Holt said. “Every day that I’m open it’s either break even or lose money. I make my money catering. That is how I offset (expenses) and be able to keep the cafe open.”

Holt said the city of Manchester does not need to be in the business of catering events off-site.

“It does take business away from (small businesses in town),” she said.

Holt said the conference center is a good thing, but it needs to be self-sustainable.

“If my business wasn’t self-sustainable, it would have closed a long time ago,” Holt said.

Freddie’s owner Ben Laine said the center is “stepping out of bounds” with off-site catering.

French said that the majority of conference centers and state parks with conference centers across the state offer off-site catering.

“This is no different,” French said. “I’m not going to get into whether they ought to do that. That is something you guys should take to the (Manchester Public Building Authority).”

The Manchester PBA, an autonomous board that oversees the operation of the conference center, approved off-site catering, in part, as a way to offset operating costs.

“Over the past few years, the PBA has tasked the conference center leadership team to find additional revenue opportunities to replace funds — funds that were not approved through the city,” said PBA Chair Megan Jackson.

“It is not a hidden fact that the budget is not fully funded. As a board, we have had to look for areas to cut expenses as well as opportunities to create revenue. That being said, there is always an emphasis on supporting local Manchester businesses: their team looks for opportunities to source local, they team-up with other caters to serve local events, and they encourage groups to visit local restaurants when they are in town for site visits and events not eating in-house.”

Jackson said the PBA welcomes feedback and discussion from the public at all of its meetings, which are scheduled for the second Friday of each month at 11:30 a.m. at the conference center.

Vice Mayor Mark Messick said he felt the catering issue could be resolved.

“I don’t feel we need to shut the whole conference center down over catering,” he said.

The first reading of the budget passed 4-2 with Anderson and Alderman Donny Parsley voting no. A motion made by Anderson to amend the budget to remove the conference center contribution failed 2-4 with Anderson and Parsley voting yes.

The second reading of the budget is scheduled to take place during a special call meeting Aug. 19.

 The $19 million budget includes $800,000 in paving money, a 7% raise for employees and will pull $1.1 million from reserves.