An application for $125,000 in lodging tax proceeds by the Ocean Shores Co-0p Marketing Group was scrutinized for more than an hour by the Lodging Tax Advisory Committee (LTAC) on Nov. 7 and then cut back to a recommended $45,000 in a decision approved by the City Council Monday night.

With most of the funds already earmarked — $905,593 to pay for Convention Center operations, debts, repairs and maintenance along with the Visitor Information Center; and $10,000 to Greater Grays Harbor Inc. for a new tourism website — the committee had limited choices to begin with during the second of two meeting on applications for the 2018 funds.

There is an estimated $86,193 ending fund balance in the hotel/motel tax fund, with anticipated revenue for 2018 remaining flat in the proposed city budget at $980,000, giving the city an estimated $1.06 million in funds to be allocated under the initial direction of LTAC members.

The Co-op had received $60,000 from LTAC in March 2017, and also received funds in the three previous years from either LTAC or the city directly in the first year, using the money to support an ongoing marketing and advertising campaign that has included bus panels in the Seattle Metro market, along with print, digital and radio advertising.

But several citizens questioned the effectiveness and cost of the Co-op effort and wanted it to be more open to other businesses and ideas.

“I think we need to be a little bit more current in our marketing the town and what it has to offer,” said Shannon Rubin of the Canterbury Inn who also recently ran for City Council.

Also, because the Co-op is tied to the Ocean Shores/North Beach Chamber of Commerce, which administers its financial books and uses the Chamber’s non-profit status, Rubin and Susan Conniry asked that Chamber director Piper Leslie recuse herself from making any recommendation on the Co-op funding request.

Leslie agreed, but did ask several questions and make a few comments during the proceedings on Nov. 7: “Having a marketing group is important in Ocean Shores, whether it is this marketing group or another one. I want it to be known that I feel very strongly that marketing is important.”

Conniry and Rubin also criticized the Co-op website — www.visitoceanshoreswa.com — for heavily promoting Oyhut Bay and the Quinault Beach Resort and Casino, without links to other businesses.

Dianne Hansen, owner of the Dusty Trunk shop and a promoter of several past events including the Sand & Sawdust Festival, defended the Co-op group as one of its board members.

“We need to remember that if we do not get this money out, this the only marketing in a formal way being done,” she said. “As part of that marketing team, it was an idea that came to pass over four years ago. We took it to the city and said, ‘If we do a partnering up, we need to do some marketing for this town. Ocean Shores needs to be out there. That was the whole purpose of the group coming together.”

Hansen acknowledged that it was largely an all-volunteer effort that has been open to change and other suggestions: “If there are some better ideas out there, you guys be a part of the marketing Co-op. But don’t take the money away from marketing Ocean Shores until there is another way.”

Mark Plackett of the Co-op presented the 2018 request at the LTAC meeting. In addition to he and Hansen, the group consists of Don Kajans of Quinault Beach Resort and Casino, Pat Brunstad of Oyhut Bay and a local builder, and Mike Doolittle of Family Fun Center and the Peppermint Parlor.

“The budget kind of reflects what we know we can do,” Plackett said of the original request. This past year, the effort was made to emphasize social media marketing, he said.

“We don’t have any current commitments for next year,” he noted, with the exceptions being the Ocean Shores sign on the side of a building in Aberdeen and the cost of the website landing page.

LTAC members were charged with simply “evaluating what we have in front of us,” by chairman and City Council member Jon Martin.

“The only reason I bring that up is that I was a little bit concerned we could get into an area where we really don’t have any control,” Martin said, noting that some discussions and directions go back to the City Council for final decision making.

LTAC members Bob Hugo of the Shilo Inn, Kathy Harris of Associated Arts of Ocean Shores and the Food Bank, and Becky Glasgow of the Polynesian then agreed to cut the application request down to $45,000.

City Council action

With all of the LTAC members present at Monday night’s City Council meeting, the decision to leave the amount at $45,000 for the Co-op was 5-0, leaving an estimated $14,000-$20,000 in funds left over. The Council also voted to use the remaining funds to pay back interfund loans associated with the Convention Center. Also, the council agreed on another provision to have a council member liaison sit in on Co-op marketing meetings.

The liaison would be expected to “get a grip on how the money is spent so we don’t have to be querying people about it all the time,” Council member Bob Peterson said. “I would like to move it out of the shadows.”

Because of her husband’s involvement with the Co-op, Council member Holly Plackett recused herself from voting on any of the LTAC decisions.

Mark Plackett said the Co-op met twice formally this past year: “We set our budget early in the year and then we follow our budget. We get a report out to everybody once a month.” The group’s last meeting was a week ago, he said. The Co-op also files an annual report with its LTAC application, which the city has available on its website.

Asked by Council member Lisa Griebel if the LTAC was satisfied with the Convention Center budget request, Leslie replied: “Speaking for myself, I was very comfortable with going for this.” The other members added, “It was unanimous.”