Last night I attended the Effingham City Council meeting where they were to vote on purchasing the Rosebud Theatre.

The city decided unanimously, 5-0, to purchase the building with hotel-motel tax dollars, but there are a few problems that the city has failed to take into consideration regarding this purchase.

1.  Mayor Lange at the November 17th city council meeting was asked to sit on the Arts Connection of Central Illinois committee - the non-profit group slated to run the new Rosebud.  Mayor Lange last night did not decide that this was a conflict of interest and therefore failed to recuse himself from the vote.

2.  Commissioner Flach gave a short speech about how the Rosebud should be given another opportunity for success.  She stated that in the 2 years that it was in operation the first year was mismanaged and the second year suffered from the worse economic times in decades.  I agree, but what about every other business that has suffered the same fate?  The city should not be a safety net for businesses that cannot make it for economic reasons or otherwise. 

3.  After Commissioner Flach gave her speech, she immediately moved to adopt the resolution without the community members present (including myself) getting one last opportunity to make their opinions known.

4.  The city does not have enough money in the hotel-motel tax account to pay for the purchase according to Hank Stephens, Economic Development Director.  The Effingham Daily News story today said:

During a December council meeting, City Attorney Matt Hortenstine said the arts group is interested in a possible .5 percent food-and-beverage tax increase in the city, which has been discussed as a way to help fund the purchase of the theater.

However, the proposed food-and-beverage tax was not discussed at Tuesday’s meeting.

Currently, the city does not have the power to impose the tax. However, the nonprofit group has indicated it may be interested in trying to get community support and legislative action that would give the city the authority to impose the food-and-beverage tax.

If imposed, the .5 percent sales tax increase would be assessed on prepared food and beverages purchased at restaurants and bars, not grocers or convenience stores. The sales tax increase would make a $10 meal at a restaurant cost 5 cents more. Hortenstine estimated the tax could generate about $300,000 per year. That revenue would be used to pay off the bonds on the Rosebud facility.

5.  We were assured that the purchase of the Rosebud would not cost the Effingham tax-payer a dime, but now, one of the same people that gave us that assurance - Janie Oldfield (ex-President/CEO of old Rosebud and current head of ACCI) - says that they may try to push for a .5% food/beverage tax to help offset the purchase costs.  However, the city needs permission from the Illinois General Assembly to do so.  Here's where it gets fun....

According to some very reliable sources, neither the city or anyone from the ACCI have contacted ANY of the 6 General Assembly lawmakers that represent Effingham County.  Needless to say, I'm sure they're not happy about not being consulted on a proposed tax that would effect part of their districts they represent.  What I can tell you is I've also heard their phones have been ringing off the hook with concerned citizens after the Effingham Daily News article on Monday announcing the vote scheduled for the next day.  I'd also be willing to bet that most of the lawmakers would think the purchase was not the smartest idea considering the full funding was not in place.

Furthermore, after consulting some politicos in town last night, there is now an active and vigorous search for people that want to run for city council or mayor next election.  This part did not have to happen if those elected would have realized why the people of Effingham elected them in the first place.  Or did they not notice we replaced 4 out of the 5 spots on the council?

Effingham faces a budget shortfall of $2.3 million which had a band aid put over it when the city borrowed money to "balance the budget".  Drive around Effingham and you will see more houses for sale in town than I've seen in my 20+ years of living here.  Jobs are hard to come by and those that you can find pay minimum wage or are found via temp agency.  But yet let's give bailouts to Chuck Keller for his hotel/convention center and the Rosebud Theatre, and for good measure, let's build a Sports Complex to compete with private businesses and hope that tournaments decide to move or start in it.