A push to pull Fall Lake lodging tax monies from the Ely and send them to Lovin Lake County in Two Harbors was met with pushback at a three-hour town board meeting Wednesday night.
Cindy Smyka, Fall Lake’s representative on the Ely Area Lodging Tax Board joined the meeting on Zoom. She has called for the current board members to be removed as well as the board’s attorney.
“In regards to the lodging tax, I do believe we’re at a pretty critical juncture, not only has summer or wildfires severely impacted our peak season, but we may be faced with the major decision regarding local lodging tax revenues,” said Smyka.
“The board was informed there’s a high probability that Lake County would reallocate Fall Lake’s lodging tax away from the historical Ely Area Joint Powers Board,” said Smyka, “and move it under Lovin Lake County starting as early as 2027.”
Smyka said one path would be to transition Fall Lake’s lodging tax under Lovin Lake County. She said another path is to withhold Fall Lake’s lodging tax dollars position to demand the governance reform that has been discussed at Ely Area Joint Powers Board meeting.
Smyka suggested a gathering of Fall Lake lodging taxpayers at Veterans on the Lake for a round table discussion on Sept, 14. She said it would be good to have supervisors attend to hear the discussion.
Super visor Hudson Kingston supported having the Sept, 14 meeting, and that it should be an informal roundtable with supervisors not making any decisions. Smyka said they could discuss economic relief.
“I think in theory the idea I’m working towards is that once we gather these lodging taxpayers together and discuss the future of lodging tax funds,” Smyka said, “we face the opportunities related to restructuring that joint powers which is a real necessity that I think everyone is coming to understand.”
Lake County commissioner Joe Baltich gave a history of the lodging tax when he was mayor of Ely. It was first set at 1% and then increased to 3%. He said he was against this from the very beginning, but as he had been more involved, he is convinced that we could turn thing around that would be very good for Lake County, and spill over to the Ely region.
Supervisor Craig Seliskar asked if Baltich was confident the money would come back up north and Baltich said yes.
White Iron Beach Resort owner Kerry Davis expressed his displeasure with Lovin Lake County. He said it’ll never happen.
“The only way we’re going to get our advertising and our word out,” said Davis, “is by the people that are here to do it. Actually, even though we are getting some of our money, our promise was even though we’re sending your lodging tax back, we’re still going to promote your area. I haven’t seen a thing from Lovin Lake County about Ely, Minnesota.”
Smyka said there is a need to endorse the idea of getting lodging taxpayers together for the Sept. 14 roundtable discussion. The board agreed.
