Clayton Council Gives Funds to Forward Rabun
This article originally appeared in the July 23, 2020 edition of The Clayton Tribune and is reposted with permission from publisher Wayne Knuckles.
By Megan Broome
Staff Writer
CLAYTON— Clayton council members voted unanimously at Tuesday’s meeting to allocate a portion of hotel/motel tax funds to Forward Rabun.
Council member Michelle Duquette was not present at the meeting and participated via speakerphone.
Forward Rabun is an umbrella organization that consists of the Development Authority of Rabun County, the Rabun County Chamber of Commerce and Welcome Center and a tourism entity.
Council members approved sending .75 percent of hotel/motel tax funds to Forward Rabun and 1.25 percent to the Clayton Merchants Association (CMBA).
Mayor Jordan Green explained the breakdown of how hotel/motel taxes have to be distributed.
He said that Clayton has a 5 percent hotel/motel tax and 3 percent of that can be used for purposes by the city.
The other 2 percent is mandated to go to a 501(C)6 entity, such as Forward Rabun and the CMBA.
A 501(C)6 organization for tax purposes is a business association such as a chamber of commerce. Although they’re organized to promote business, they don’t generate a profit, don’t pay shares or dividends and are exempt from paying income tax.
Rick Story, director of development for Rabun County, Juanita Shope, president of the Rabun County Chamber of Commerce and Pam Thompson from the Dillard development authority addressed the council at last Tuesday’s work session to pitch the idea of partnering with Forward Rabun.
At that time, council members opted not to fund Forward Rabun with this year’s budget because the money was already allocated.
The trio attended Tuesday’s meeting to address council members once again after it was placed back on the agenda for discussion and vote following a suggestion by council member David Cross to partially fund it.
“I think it would be an awesome partnership,” Corss said at Tuesday’s meeting. “I think we’re in great hands with y’all.”
He suggested funding both equally in the next FY budget.
“I really support this new Forward Rabun movement,” Thompson said in the presentation.
In her pitch, Shope said that Forward Rabun would be beneficial in bringing tourism to Rabun County.
“It’s vital, in my opinion, that Clayton joins in with us,” Shope said. She noted that since Clayton is the county seat it is at the heart of the tourism industry.
“We need you guys to be successful,” she said.
Shope also noted that these partnerships with different cities would be beneficial in sharing ideas and resources.
“We can exchange and share all of the different resources we have,” Shope said.
Thompson explained to council members that Dillard has agreed to provide 50 percent of its hotel/motel tax allocation and that it was beneficial for the city.
“I think we’re moving in the right direction. We’re really about working together,” Thompson said.
Sky Valley council members voted earlier this year to fund Forward Rabun 100 precent from their hotel/motel tax funds.
Council member John Bradshaw said in discussion before the vote that he was concerned since they already have the CMBA, the two organizations would be duplicating services.
“What are you going to be spending money on? Are you going to be duplicating services?” Bradshaw asked representatives of Forward Rabun.
Story said that because they are a new organization, they don’t have an itemized list of exactly what funds would be spent on but said that the goal is to have those “measurable metrics” in the near future.
He reiterated that any sort of partnership between Clayton and Forward Rabun would be beneficial.
“I have a very personal belief that this is the right thing for Rabun County,” Shope said.