Asheville Leaders Push for Change on How Tourism Funds are Used. Will Locals Get a Bigger Cut?
Local Leaders Advocate for More Community Benefits
Following recent changes to the allocation of Asheville and Buncombe County’s occupancy tax revenues, local leaders are pushing for even greater reforms to ensure that more funds are dedicated to benefiting residents rather than just towards marketing efforts.
Senator Julie Mayfield, a strong advocate for reform, has been working towards this goal for the past eight years. She believes that prioritizing the needs of Asheville residents, particularly those working in the tourism industry, is crucial.
Mayfield was one of the sponsors of the 2022 legislation that initiated changes in the fund allocation and is gearing up for the upcoming N.C. General Assembly’s short session in late April to introduce a bill that aims to modify the Legacy Investment From Tourism Fund (LIFT) guidelines. The bill seeks to clarify that the fund can support a wider range of projects, including affordable housing, childcare, and parking.
City and County Support for Reforms
Both the city and county have included support for further reforms to the occupancy tax in their recent legislative agendas. The city is advocating for a more equitable distribution of funds, proposing a 50%-50% split between marketing and community projects. Previously, only one-third of the funds could be allocated to community capital projects.
Mayor Esther Manheimer emphasized the need for a balance between marketing efforts and investments in the local community. She listed several potential projects that could benefit from increased funding, including repairs to parking garages and greenway expansions.
On the county’s side, lobbyists highlighted the need to modernize the occupancy tax guidelines to meet evolving needs, with Buncombe County being at the forefront of this issue.
The Role of the LIFT Fund
The introduction of the Legacy Investment From Tourism Fund (LIFT) alongside the existing Tourism Product Development Fund has opened up new possibilities for community projects to receive funding. While the TPDF has historically focused on major tourism investments, the LIFT Fund aims to benefit the broader community in Buncombe County.
The TDA board is set to make its first grant awards from the LIFT Fund at an upcoming meeting, with approximately $9.5 million available for this cycle. Among the 15 phase II applications under review, three housing projects are being considered for funding.
While the LIFT Fund represents progress in investing in community projects, there is still room for improvement. Senator Mayfield reiterated the importance of explicitly funding affordable housing projects through the LIFT Fund, emphasizing the need for clearer language to support such initiatives.
Conclusion
Asheville and Buncombe County are at the forefront of reshaping how tourism funds are utilized to benefit local residents and communities. The ongoing efforts to allocate a larger portion of funds towards community projects, including affordable housing, reflect a commitment to addressing the needs of those directly impacted by the tourism industry.
With potential changes on the horizon, the focus remains on striking a balance between promoting tourism and investing in the well-being of Asheville’s residents. The upcoming legislative session presents an opportunity to further refine the guidelines governing fund allocation, ensuring a more equitable distribution that supports the diverse needs of the community.