(KNZA)--Hiawatha voters will go to the polls Tuesday to decide the fate of a ½ cent city-wide retailers’ sales tax issue to fund the construction of a new three-screen theater along with recreational and economic development opportunities.
Concerns have been voiced by some—including at a town hall meeting earlier this week—that the project isn’t financially feasible, sales tax doesn’t include a sunset provision and the proposal would give a blank check to future commission’s.

Hiawatha Mayor Crosby Gernon and the theater committee were given an opportunity to respond to those concerns.  The response is below:

1. How to do you respond to those who say a new three-screen movie theater isn’t financially feasible and question the numbers in the feasibility study? 

 The theater feasibility study represents conservative estimates and deliberately did not include the populations of Falls City, Sabetha, or Highland in the projections even though a new theater will definitely draw from them.  Marysville with a three screen theater is almost identical to Hiawatha demographically and has over 50,000 admissions per year.   Movie theaters in Hiawatha have made money for a long time.  The Arrow has made money for the owner for over 32 years just not enough to justify a new digital theater.  No one has a crystal ball, but in the event that admissions are not as high as expected, show times will be curtailed which will lower expenses and payroll.  These decisions will be an ongoing process similar to decisions that every business makes every day to maximize profit.  Since the theater will be paid for by the sales tax and won't pay property tax, we feel confident that it will be able to meet operating costs and probably show a small profit year to year.  Long term, the sales tax will insure that the theater is able to be operated, well maintained, and modern.

 2. Why wasn’t a sunset provision included in the sales tax proposal?
 
 Early on, it was apparent to the committee that if the theater was built, it needed to be well maintained.  As written, the sales tax will insure that there are ongoing funds to replace seats, concessions, sound systems, and projectors as needed.  In addition, the recreation and economic development issues that Hiawatha faces will never sunset.  Hiawatha is fortunate in that we have a lot of people that shop here from outside the area.  This means that property owners in Hiawatha won't solely fund the theater, enhanced recreation, or economic development opportunities.  Instead, everyone that uses these venues will help pay for them.  In the long run, as the sales tax revenues fund recreation and economic development, property taxes will decrease. The April 1st vote is an opportunity for Hiawatha to invest in itself.  The more Hiawatha believes and invests in itself, the more it becomes the place to live in north east Kansas.  The sun will never set on a better Hiawatha. 
 

3. Your response to those who say the sales tax proposal, as written, will give future commission’s a blank check in financing economic and recreational initiatives without any voter input whatsoever?

 Our nation was founded upon the right to vote and accordingly every citizen can cast a vote on this important issue.  Hiawatha voters elected the current commission and will elect all future commissions.  The commission establishes an annual budget which must be approved by a majority of the commission and is subject to state and federal laws including open meeting provisions.   To suggest that voters don't control city government runs counter to every founding principle of America.

 4.  How do you address concerns that if the proposal is approved, Hiawatha’s tax rate will be one of the highest in the state, and impact it could have on local businesses?

 These are the facts regarding the proposed sales tax.  If approved, the city's sales tax would be 1.5% for an overall sales tax rate of 9.15% for six years.  Currently, the sales tax for Kansas cities ranges from 9.65% to 6.15%.  In six years or 2020, the city's sales tax will decrease to 1% and the overall city sales tax will be 8.15% which would place Hiawatha in the middle of the pack for Kansas cities.  A theater cannot be built out of thin air or without funding.  A new theater will bring more foot traffic through town which will improve the bottom line for local businesses.  The real question for local merchants, real estate agents, and restaurants is:  If there is no theater in town, will their business increase or decrease?