Entry 238 of 365
By Confounded in Christiansburg On September 5, 2008 at 5:03 AM

During council's 2008-09 budget process, a change was made to what the town was committing for a regional tourism initiative.  This funding had come from the town's increasing the lodging tax, giving itself 6% and allocating 1% to establishing a regional tourism plan.  The one percent also also matched by The Town Blacksburg and Montgomery County, even thought they already had established tourism, community and economic development programs in place.

Christiansburg's council indicated it wasn't satisfied with results. Several council members ackowledged the town's future aquatic facilities would require heavy marketing to offset operating costs, and suggested some portion of the 1% designated to regional tourism be retained.   

Tension between the Montgomery County Chamber of Commerce, Tourism Development Council (TDC), and town administration was clear.  Some council members stated the chamber was "biting the hand that feeds it" because Christiansburg had been the biggest funding source.  TDC and chamber members were not in agreement with that assessment, but in adopting the new budget, Christiansburg's town manager was charged with renegotiating the related contract.

Let's be clear.  A contract is an agreement parties enter into without coercion.  Details are negotiated.  Ultimatums are absent and either party can walk away.

In this situation, there really was no negotiating for the TDC -- it was take it or leave it.   For the town, it was having council decide what, if any, amount would be contributed to regional efforts.  Town residents will be fortunate if these businesses and professionals accept new terms while waiting for town leaders to launch their own plans which produce better results. 

The Town of Christiansburg does not currently have necessary economic, community, historic or tourism development departments or staff specifically dedicated to any of these functions, as do other TDC partners and nearby localities.  This will be new territory for a town which doesn't have a track record for business recruitment or branding itself. 

There have been opportunities for the town to piggyback on other local marketing efforts, establishing an antiques corridor and installing signage to direct visitors to historic sites or other points of interest.  

In reducing support of a regional partnership and lacking an economic development vision specific to Christiansburg, opportunities may be missed.  Recruiting new businesses and retaining those already here could become even more of a challenge.  Every local government in this area aggressively pursues entrepreneurs, franchises, professionals and specialty retailers.  Many offer incentives or provide expertise because those governments understand businesses play a vital role in contributing to the local tax base.  Increases to business fees and license rates (BPOL) in Christiansburg may become deterrents for growing or retaining a strong and diverse tax base if Christiansburg is unable to compete in this arena and maintains its limited  profile in the NRV region.    

Was there confusion about whom was biting the hand that feeds it, or are citizens watching the town cut off it's nose to offset marketing expenses related to promoting only town recreational facilities?  

The Montgomery Chamber and TDC will do fine without the involvement and reduced financial support from Christiansburg.  The question will be if existing Christiansburg businesses are lured to stronger markets or whether town leaders can attract new ones while sustaining existing businesses.  Remember businesses require less in public services while providing more to town coffers.  Over the long term, if town leaders cannot produce then residents will feel it in taxes and fees and see it as businesses close and move on.