John Coffelt, Editor

The Manchester Finance Committee during the May 21 meeting hashed out several key issues related to the city’s leasing of the Manchester Coffee County Conference Center to oversee its operation under a new Tourism Department.

The resolution to approve the lease failed during the May 15 special call Board of Mayor and Aldermen meeting due to lack of votes. Voting no were Aldermen Julie Anderson and Donny Parsley. Alderman James Threet abstained.

Threet, who is not a member of Finance, was in attendance. He and Parsley voiced optimism about what was accomplished during the meeting.   A recommendation emerged from committee to proceed with the lease that passed 3-0.

One of the details expanded on during the meeting is the city’s plan for the future of the Manchester Public Building Authority. This autonomous, appointed board created to replace the Coffee County PBA oversees the operation of the conference center.

Mayor Joey Hobbs said that he eventually would like to see that board dissolved through a partnership with the county. The current lease arrangement is a stopgap measure to keep the center’s doors open and fulfill the contractual arrangement that requires the jointly owned county/city property to operate as a conference center or be sold.

“We have put together a transition team in the hopes that that’s the way we are going,” Hobbs said. “Part of their requests is what are the current contracts and what are our obligations.”  

Hobbs said that the common sentiment from the board since he was elected is that the aldermen don’t like making its annual $350,000 donation to the center with no say in how the center is run.

The plan as it stands is to allocate about $175,000 to help fund the center through December using Tourism money from the Hotel/Motel Tax. The Hotel/Motel Tax’s annual revenue is approximately $945,000. That money can only be used for tourism-related expenses. This budget would shift those funds from going to the General Fund to tourism. A portion will also go to the Recreation Department. 

Another detail discussed was whether the center could cover its expenses.   

Threet said he was wrong when he voted in 2001 to build the Conference Center and said that he doesn’t think it will make it.

“It’s in a different category from the Rec Center in my estimation,” Threet said. “So many people use the Rec Center … I don’t think the conference center can stay open, but I don’t want to see people lose their jobs.”

Hobbs said the city could implement changes similar to the Rec Center’s budgetary cuts to labor hours.

“This would be the first time since I’ve been in politics that an actual governing body has had the opportunity to operate it,” Hobbs said.

Hobbs said that at times under the joint county and city funding system, the conference center required $800,000 in contributions to now the current city contribution of $350,000.

“That’s moving in the right direction,” Hobbs said. “Now we just have to push it in the right direction to where there’s a number that everyone feels comfortable with that we send down there.  

Hobbs feels the conference center can someday break even, while Alderman Thomas Crosslin was more optimistic. He said that he has studied the profit and loss ledgers and feels the center can be profitable.

“Being frank, I think it’s been an operational black hole,” Crosslin said. “I don’t think that anyone in this conversation has ever seen the place run with proper oversight.”

He said there are places in the P&L that are quick fixes to expenses. Hobbs estimated an immediate cost savings of $50,000 by bringing it into the city.

Vice Mayor Mark Messick put a one-year deadline on resolving the issue. He vowed that come budget time next year, he would be the first to vote to shut the center down.

One cost-saving plan could include shuttering the kitchen and subcontracting the catering for a fixed, known cost. The city would maintain a list of local caterers who would provide food.

Current conference center employees could be shifted to city employees. Three employees are full-time and the remaining 20 employees are part-time.

Hobbs said the conference center generates about $800,000 of revenue per year from events. He said the Rec Center generates $500,000 per year.

The motion to present the budget back to BOMA as it was presented earlier passed 3-0.  

John has been with the Manchester Times since May 2011. John has won Tennessee Press Association awards for Best News Photo and placed in numerous other categories. John is a 1994 graduate of Tullahoma High School, a graduate of Motlow State Community College and earned a Bachelor of Arts in English from Middle Tennessee State University. He lives in Tullahoma, enjoys painting, dancing and exploring the outdoors.