Dear Editor:
Dear Council Members,
Let me begin by stating very clearly and emphatically that the Tourism Bureau has done a phenomenal job at promoting and marketing Ely but it is very clear that after so many years of unfettered access to a large sum of money, with absolutely no oversight, the Tourism Bureau has gotten very comfortable in assuming they and only they are the only qualified stewards of the monies coming from the lodging tax.
As a previous Ely of Chamber board member, I was involved with the discussions that were held with the Chamber, Tourism Bureau, and Joint Powers, and have to say that it was frustrating to hear the TB’s assessment of the Chamber as well as their insistence that their organization was the only legal organization that could receive lodging tax dollars.
Eva Sebasta, Executive Director of the Chamber, has done a superb job in researching, collecting, and disseminating information which goes counter to what the TB states is lawful use of the monies (a quick search on the internet provides absolute justification for how the monies can be spent.)
The Chamber has operated as a visitor center since its existence and to state otherwise is ludicrous. The Chamber fields visitor’s calls, has face to face interactions with visitors, provides valuable information regarding where to go and what do once in Ely, and for the TB to not acknowledge the Chamber’s role in promoting Ely is disingenuous on their part. In contrast, TB has no physical building and no phone number that a visitor can access; it has always been the Ely Chamber of Commerce and Visitor Center.
On November 15 and 22, the Echo ran two articles regarding the division of the over $300k and I was not necessarily alarmed, but very concerned regarding the statements made by several people. I’d like to refute comments made by some folks:
• One comment was made regarding the use of lodging tax dollars paying for utilities and snowplowing for a city-owned building, the new visitor center. With a little bit of research, one finds that the upkeep of a visitor center is a legal and legitimate use of lodging tax dollars.
• “We feel professionally discredited...there are people who work for the TB who don’t know if they’ll have a job next year” - No one is discredited or denying the incredible job the TB is doing, the crux of the issue is whether of not the TB should be the sole recipient of over $300k. And as for job security, we ALL want that, but it is never a guarantee.
• “Every dollar spent on local salaries, it circulates, and it’s going to get more work done and going to get better work done and it’s going to stay in Ely” - While I understand the idea behind it, I believe it is a false narrative because using lodging tax dollars to fund a part-time visitor employee IS keeping it local, and moreover, getting more work done and getting better work done has zero correlation to being paid for a job that one is entrusted to do. As for the money staying in Ely, we all know that residents either shop on-line or travel to either Virginia or Duluth to make their purchases.
• Adam Bisbee’s comment “I feel like we can go a lot farther with that money if we operate more efficiently” makes sense if he is implying that using the lodging tax dollars to fund two organizations that promote Ely in two equally important aspects - TB which advertises and promotes Ely and the Chamber and Visitor Center which fields phone calls and physical visits, is critical to our growth.
• Emily Roose: “Understanding the visitor center is very important and that tourism dollars can go to that, but I don’t feel it’s being done effectively” - What exactly does that mean? What is her suggestion? Using lodging tax dollars is an effective way to support two organizations which are critical to Ely’s growth.
• Zabokrtsky stated “reducing the funds to the TB will negatively impact tourism in Ely and the local professionals need to be left to do their jobs. Unwise use of these funds means businesses do worse” - again, there is no explanation as to why distributing the funds to both organizations is unwise as each plays an important role.
This last comment by Edie Renner is the one that is most alarming to me and should be to anyone who is concerned about setting a very dangerous precedent. Basically she is stating that Paul Kess be removed from the Joint Powers Board because she is not happy with the decision he made and replace him with someone who agrees with the TB’s position that they are the only entity who deserves the full amount of lodging tax dollars. I commend Paul for asking questions, standing strong, and for providing legitimate answers to important questions.
There is a hierarchy in place, which until recently was operating from the bottom up. The Ely Area Lodging Tax Joint Powers Board is in charge of overseeing and distributing the dollars that are generated from the lodging tax and until recently allowed the TB to dictate the rules without any oversight.
What is happening now is a correction to the hierarchy and their decision to share the funds between the Chamber and Tourism Bureau is aligning Ely with the standard practice of using lodging tax dollars to fund a visitor center. I hope you all consider the implications of removing Paul Kess from the Joint Powers Board solely appease a person who does not agree with his decisions.
Thanks for you time,
Dafne Caruso
Ely, MN










