Excellent article in today’s Democrat:  “Residents scrutinize Maple Leaf processes.”  Thank you, Sherrie Mitchell, for representing us and asking the tough questions on behalf of county citizens!  And thank you Bill Austin for providing your observations and recommendations on the process!

A few of the many quotes that caught my attention:

About the project:

“… having an independent review of the county-owned concert hall project before bids to build it are opened makes sense. There is insufficient transparency, and too much dependence on one person, and lack of oversight. I don’t want my name to be included as being the oversight when I am not. … I was supportive, and am supportive if it’s done right.” – Bill Austin, who resigned as a member of the Maple Leaf Building Corp and is a former County Commissioner.

About responsibility:

The “position” of the commissioners and council is that “they do not view the innkeeper’s tax as local taxpayer dollars.” Per president of the County Council, Keith Baker – “ The county doesn’t control those dollars; the CVC controls those dollars. … Those are dollars collected by the tourists for use by the CVC to market tourism and Brown County. … It’s not a county deal, or I would be grabbing it and using it for roads. “

By statute, the county DOES control those dollars!  Maple Leaf couyld not have been approved withough the vote by commissioners and council.

The FACTS:

Indiana Code – IC 6-9-14 Chapter 14. Brown County Innkeeper’s Tax, allows for the collection of revenue from the innkeeper’s tax.   The county auditor is responsible for managing the funds and providing financial oversight as required by the State Board of Accounts.

The statute establishes a Convention Visitors Commission (CVC).  The commissioners and council appoint CVC members and can remove them at any time.  The council by statute is responsible for “reviewing and approving ” the CVC budget.  (The CVC contracts with the Convention Visitors Bureau (CVB) to market tourism).

If we had an effective comprehensive plan, the priorities for investments with revenue from the innkeeper’s tax to promote tourism would be included in the plan. Development of the comprehensive plan – by statute, requires the input from citizens at public meetings.  CVC members should be appointed based on their support for the plan. The Council is responsible for reviewing and approving the budget to ensure compliance with the plan.

The commissioners and council are elected officials. Per the U.S Constitution, they serve the citizenry.

The “status quo” has been that the expenditures of revenue from the innkeeper’s tax is being done without alignment with the county comprehensive plan.  Further, financial oversight by the council has been inadequate. For instance, they do not hold the CVC to the same standards they expect from county departments during the annual budget review and approval process.

Citizens have the responsibility to provide the needed oversight and to elect representatives that take action that results in benefitting all citizens and not just special interests.

The CVB was chartered in 1984. There has been no savings and the CVC/CVB still rents space for a visitor’s center.  Again, the CVB reports to the CVC who reports to the Commissioners and Council who work for “We the People.”

In summary, who controls the expenditure of revenues from the innkeeper’s tax? Correct answer? The citizens!

Questions to ask candidates for County Council about the CVC.

At the county council meeting tonight, the council received a general update from Kevin Ault of the Convention Visitors Commission (CVC). Questions to ask candidates that are running for election/re-election to the council:

Are you aware that Indiana Code (IC 6-9-14-4) requires the CVC to “annually prepare a budget … and to submit it to the county council for its review and approval”? Please explain the process to include identifying how citizens can obtain copies of the approved budget.

Are you aware that the CVB has an annual audit conducted by Blue and Company and the CVB also files an annual information report (990) to the IRS? Should these reports be reviewed as part of the annual review and approval process? If not, why not?

Are you aware that the improper transfer of funds would be considered a class D felony? Does the scope of the annual audit of the CVB include a review of internal controls?

Has a new CVC budget been prepared that includes the impact of Maple Leaf on the CVC/CVB budget? If not, why not? If so, where can citizens obtain a copy of the budget?

The Maple Leaf Music Venue and Performing Arts Center is to be a Brown County, IN government-owned and managed venue.  It is a 12.5 million dollar facility. The money is borrowed by the county.  Any profits plus revenue from the Brown County innkeepers tax is used as collateral.  Taxpayers are paying for start-up costs that have included an initial  $30K legal bill.

Fast-Track Process

April 9. 2017. Commissioner Diana Biddle and Councilman Keith Baker attend a presentation conducted by innkeeper and CVC Member Barry Herring that introduces a concept for the Maple Leaf Performing Arts Center.  Both Biddle and Baker embrace the project and lead efforts to get the support of their colleagues on the commission and council.

June 20, 2017. A group led by local innkeepers propose a government-owned and managed performing arts center (music venue) at the Brown County Playhouse.

August 22, 2017. Request for Zoning Change, Area Plan Commission, Recommend approval by the Commissioners.

September 6, 2017.  9:00 am Commissioner Meeting. Zoning approved. It was stated that the approval was for zoning and not the project and that public meetings would be held regarding the desirability of the project.

The only official public meetings that our commissioners and council held on this $12.5 million county owned and managed music venue were to approve the project. 

November 15, 2017. Commissioners approve the project.

November 20, 2017. Council approves project.

Dec 20, 2017. Commissioners pass a final resolution approving the project.

SUMMARY –  Extracted from the following article: Dec 27, 2017. GUEST OPINION: The role of process in the future of Brown County. The Maple Leaf Performing Arts Center (MLPAC) project and the process used to fast-track approval may represent a turning point for the future of the county.  

• In April 2017, owners of hotels and inns, who are also appointed to the Convention and Visitors Commission (CVC) and Convention and Visitors Bureau (CVB) decide to use the revenue collected from the innkeeper’s tax to invest in an asset that will promote tourism. The Innkeeper’s Tax is a pass-through tax paid by the party renting the overnight accommodations.
• CVC members are appointed by the county commissioners and council. The CVB is a non-profit organization established to manage tourism related promotion on behalf of the CVC.
• CVC/CVB members decided on a music venue and performing arts center and also determined the size, location, scope, cost (12.5 million), and overall governance plan for the facility. Given that this investment is expected to result in overnight stays, their businesses will directly benefit from the investment, and the asset values of their establishments will likely increase.
• Initially, county citizens were told that revenue from the innkeeper’s tax would be used to pay the principal and interest on the mortgage for the venue. Any profits were to be used for community and county infrastructure priorities.  The final terms of the deal are that profits would be used to make the mortgage payment and the revenue from the innkeeper’s tax would only be used if profits were not sufficient to make the payment.
• A common perception in the county that was reinforced by the president of the county council, may be that the revenue from the innkeeper’s tax is “their (CVC) money.” This inaccurate perception may have contributed to a lack of transparency over the years regarding the management and expenditure of these funds.  This revenue, per statute, is a county asset. Commissioners and Council (elected by citizens) appoint CVC members who are subordinate to the citizens and their elected officials.
• The approval of a 12.5 million dollar loan using the revenue from the innkeeper’s tax as collateral was approved by the commissioners on Nov 15 and the county council on Nov 20. The commissioners approved another resolution approving the project on Dec 20. In case of default, the venue would become the property of the bank, and per the county council president and the county financial consultant, county taxpayers would not be obligated to assume the liability.
• No public meetings expressly focused on this important project were scheduled by the commissioners or council before their meetings to approve the project. The League of Women Voters of Brown County offered to facilitate a public meeting to address citizen questions, concerns, and issues regarding the project. Members of the CVC, the CVB and the informal team working on the Maple Leaf project declined to participate, as did several key elected officials.

• The editor of the only newspaper in the county – The Brown County Democrat, did recuse herself from being the primary reporter because of a conflict of interest — her husband serves on the CVC. The Democrat welcomed opposing opinions in Guest Columns and Letters to the Editor.

More information and references: Maple Leaf Project – For The Record

Professors from Princeton University and Northwestern University respectively looked at more than 20 years worth of data to answer a simple question: Does the government represent the people?  Their conclusions identified that “The opinions of 90% of Americans have essentially no impact at all.” This study led to headlines in the international and national media that either suggested or declared that the U.S. was functioning as an oligarchy.

“Oligarchy is a form of power structure in which power rests with a small number of people.” (Wikipedia)

If you review the fast-track process that was applied to approve the Brown County government owned and managed $12.5 million Maple Leaf Performing Arts Center (MLPAC), what would you conclude:

Does this approach model the actions of a republic (resentative democracy) or an oligarchy?

Photo OP of the Maple Leaf Project Team with Congressman Trey Hollingsworth (R). The photo was taken in the Salmon Room, County Office Building.

Specific Maple Leaf team members include: Diana Biddle (R) – County Commissioner and Maple Leaf Management Group); Keith Baker (R) – President County Council; Darren Byrd – County Council,  Maple Leaf Management Group; Barry Herring –  Maple Leaf Management Group, Conventions Visitors Commission (CVC); Bruce Gould – Maple Leaf Management Group, Convention Visitors Bureau (CVB);  Susanne Gaudin (R) – Maple Leaf Building Corporation, Republican Board Member, Brown County Election Board;  Mark Bowman, Chair, County Republican Party;  Robyn Rosenberg Bowman (R) – President, Maple Leaf Building Corporation.

* CVC members appointed by the commissioners and council. The CVB is contracted by the CVC to market tourism.

A question to Benjamin Franklin following the Constitutional Convention of 1787: “Well, Doctor, what have we got, a republic or a monarchy?” With no hesitation whatsoever, Franklin responded, “A republic, if you can keep it.“

More Information and Context:

• Maple Leaf – For the Record 
• Maple Leaf Performing Art Center – Official Website