A local landmark, the Providence Golf & Country Club, will soon be owned by the city of Providence.

Providence Council members voted unanimously Monday night to purchase the club with promised state funding and then help maintain the facility with a three percent tax levied on all restaurant and hotels in the city.

After first reading of Ordinance 10-01 was held Jan. 19, establishing a Tourist & Convention Commission, which sparked much controversy among local restaurant owners, the council heard second reading of the ordinance during regular session Monday night.

The ordinance was established to promote tourism along with such facilities and will consist of seven commissioners, one of which can live outside the Providence city limits. It also allows the city to join with other tourism organizations or commissions to aid in the promotion of tourist activities.

The controversial aspect of the ordinance arose when it was learned that a three percent restaurant tax will be levied on all eating establishments, fixed or mobile, that prepare ready-to-eat food including “coffee shops, grills, road-side stands, street vendor, snacks, meals or drinks or any establishment preparing meals for consumption on premises or elsewhere.”

The tax will be collected by said vendors and will be reported and paid to the Providence City Clerk each business calendar quarter and annually. A portion of the tax receipts, with approval from the city council, may be used to finance the cost of acquisition of facilities useful in the purpose of tourism activities.

The council chambers was packed Monday night with concerned citizens, some expressing their dislike of the proposed tax while others voiced their support. After 90 minutes of debate on the issue, the council again voted unanimously to pass the ordinance. The council then entered into executive session for the purpose of property acquisition. After a brief session, the council reconvened and voted to purchase the Providence County Club for an amount not to exceed $315,200.

Recently, the club has fallen on hard financial times, owing city and county property taxes as well as delinquent utility bills. It was slated to be sold in a Master Commissioner sale late last year before the city, along with AT&T which has a phone line switching station at the front of the property, put a lien on the land halting the sale.

City officials then began negotiations on the purchase of the 64-acre golf course, hoping to obtain some control of the facility before it was sold to some out-of-town entity.

Monday night, Mayor Eddie Gooch opened the floor to public appeals concerning the matter and Providence Chamber of Commerce President Keith Ferrell read a letter from the Chamber Board of Directors supporting the purchase of the country club and utilizing the facility as a municipal entity rather than private. But the Chamber Board encouraged the city to seek alternative sources of funding for the project.

Mike Akridge, co-owner of Sisters restaurant, addressed the council noting that their intentions were admirable, but he quickly expressed his dislike for the new tax.

“Tom (Glover) approached us about a year ago about this idea of a tax on food in order to raise money for tourism. I asked him to consider any cuts possible (in city budget) before they levied another tax. Tom said there was no way to cut any more costs or taxes,” Akridge stated. “I asked how this money would be used and one of the things he told me was for fireworks. If our council doesn’t see this as an opportunity to cut costs, then I think we’re in trouble. Tom said that (fireworks display) brought thousands of people to Providence. I’ve yet to see those people and certainly doesn’t bring us additional business (to our restaurant).”

Akridge did credit Glover “for paying us a courtesy visit about the new tax” and explained how they planned to model their ordinance after one recently passed in Greenville, KY.

“Tom said that Greenville ‘did it right.’ They got out in front of the problem ... they talked to the people, they talked to the restaurant owners and they headed off the problem before it blew up to whatever this has blown up to. My contention is, we didn’t do it right.

“We had a council meeting, which I understand was on an off night because of the holiday, but not one of you (with the exception of Tom) walked into our door, called or said a single word about this (tax). We made phone calls that were not returned and that’s just not right. This tax is not going to make or break our restaurant, we’re going to continue on as usual. Perhaps the city council will learn something from this experience and the next time you have something come up ... my goodness ... get out in front of it and don’t cause the problem. That’s what you did here, you caused the problem and it’s just not right,” Akridge continued.

He proposed one question to the council concerning the funding of the club purchase. Akridge noted that he had been in contact with officials in Frankfort and no one had any knowledge of a proposed grant available to the city to purchase the country club.

“I was told the only way money would be available was for a state representative to add a line-item to the budget. That’s a great idea and I hope we have one that will do that, my guess is that we do and that will be fine,” said Akridge. “Eddie, if we have a grant, I’d like to see the paperwork.”

Mayor Gooch responded.

“I never told you that we had a grant. I said that we have been promised state money and I also want to point out that I invited you and your wife to my office and we sat down and talked about this and I did reach out to you,” Gooch stated. “I said we had been promised state money for the purchase price of the property.”

Akridge added that he’d been told indirectly that city officials stated that “profit was not a concern for our restaurant, simply gross revenue.”

“If the city doesn’t care about the profit we make, well, that speaks for itself,” stated Akridge. “I really hope that you examine in the future how you approach your businesses and get out in front of the problem, return phone calls, don’t let it eat you up like this. Do it the right way.”

Mayor Gooch thanked Akridge for his comments and said some statement seemed to be “taken out of context.” Gooch noted that tax is not designed for a burden on profits.

“Nobody will recognize this (tax) no more than it is and please don’t lose sight that there’s a lot of support for what we’re (council) doing and some of you are doing more to destroy your own business than what this ordinance is going to do,” the Mayor stated. “I beg you to watch what you do, watch what you say when people come into your restaurant.”

Mary Schneider, a long-time organizer of the annual Coal Festival, expressed her concern of the tax being applied to vendors at the festival as well.

“As I understand the ordinance, it will apply to festival vendors as well,” Schneider stated.

“Yes it will,” answered Gooch.

“Well, I’m opposed to that,” she said. “That will be tough on the Coal Festival. I’m for your project, I’m for what you’re doing but I would have liked for the council to have had a public forum on this. I really wasn’t aware about the vendors having to pay it (tax).”

Gooch replied that vendors come to the festival and reap the benefits and profits on the city’s free utilities.

“Mary we looked at that issue and there is a very small fee for those vendor to come in here and set up, plus they get free electricity,” Gooch stated. “You’re talking about adding three cents to a drink, you’re talking about adding three cents to a hot dog. And we’re going to take their word on what that sell and we’re not going to ask for an itemized list of everything sold.

“We’re not trying to make this a complicated ordeal. Most businesses cash registers will ring this up in the very same form as the sales tax and the form you send for the six percent (tax) to the state will be the same form we accept for this. These vendors come in here and make all that money off our citizens and then they leave town,” he emphasized. “The city does all the work and gets the park ready for those people to come in here and make money. We just feel like it will help (the city) to get a small percentage of that back.”

Joyce Akridge expressed her concern of the provision in the ordinance stating that only one of seven commissioners could live outside the city limits of Providence. She noted that the majority of owners of the local restaurants lived outside the jurisdiction of Providence.

“Who is going to serve on the commission. All-in all, there’s only a couple of people that will qualify for this and you’ll have five commissioners that don’t have a thing to do with the restaurant business,” Mrs. Akridge stated. “We have great workers and that’s part of the reason we’re still in business but I’m not sure they’re going to have time to sit on a board because they’re trying to make a living and spend time with their families.”

Gooch answered.

“We want civic-minded people on this commission. We want restaurant owners and representatives of our local convenience shops involved. The owner might live out of town, but employees will be welcomed to serve on the commission,” said Gooch. “We all have jobs just like you, but we’re also active in the community. You are very active in the community. When you have a passion in your heart about something and believe in what you’re doing, then you’re willing to give of your time and efforts. That’s the kind of people we want on this commission, we want leaders.”

Providence resident and city employee Cathy Curry was next to express her concern of purchasing the indebted country club.

“This is bad economic times to be adding a tax to anything. And you’re talking about a tourism board! What tourist are coming to Providence? Most out-of-town people are relatives visiting their family that live here. So basically this (tax) will trickle back down to the same citizens,” she said.

“What are the total liabilities of the city at this time, as far as building and equipment that are not paid for yet? And then we’re spending $315,000 on a country club! I’m sorry, I’m too simple-minded to see that at this time,” she explained. “I think the city should take care of city employees, it can’t even provide health care benefits for its employees and I think we should take care of that first. You have many great city employees that are still making minimum wage.”

Gooch explained that the city had recovered from a $1.3 million debt when he took office six years ago and now stands on solid ground.

“We have a system of replacing ambulances and fire trucks every 10 years and we save money in order to make down payments on these vehicles and just like all of you, we get a loan and finance the balance,” he stated.

The Mayor also explained that with the exception of a couple of short term notes, along with the long-term debt of the KIA loan (for the water/sewer treatment plant), the city was “in the black”.

“We had to fix some of our buildings like roofing and we borrowed some money for that because we’re stilling waiting on funds from FEMA that we will be getting from last year’s ice storm,” Gooch stated. “We would have had the money if not for that.”

He also noted again that the funds to purchase the country club would be coming from the state.

Gooch explained that the city’s health insurance policy became such a burden over the years that the council had to forego providing health insurance because so many employees dropped out of the system.

Curry also raised the point of liability insurance as well as the salary for a full-time manager of the soon-to-be-purchased club.

“You’re not going get someone that can truly manage this (club) for minimum wage, it’s just not going to happen. I believe in fiscal responsibility and I just don’t think this is something that the city should get into,” Curry concluded.

Gooch explained that the club would now become public.

“The days of the Providence Golf and Country Club are over. It will now be the Providence Municipal Golf Course, the Providence Municipal swimming pool and the Providence Municipal tennis courts. This will be run very similar to the municipal park in Madisonville and yes we will have to have a director, someone to run it and manage it. This is reason why we felt it was necessary to have the tax to help pay for this.

“We’ve been told by the state we may not get all the money (for purchase) at one time. It might take two, three, even four years to pay for the total thing. But we will get 100 percent funding on the purchase,” Gooch explained.

He noted the possibilities of selling public memberships to the club and city officials are hopeful that revenue from rounds of golf as well as pool and clubhouse use could provide 50-70 percent of operating capital needed to run the facility.

“It will certainly create it’s own revenue and we’ll use that to help in the funding of it’s operation,” Gooch said.

The Mayor also took on the question of the country club receiving special treatment for delinquent utility and property tax bills.

“Yes, the club owes some property taxes and no, it’s never had a disturbance of service. I challenge anyone out there to bring me one person ... individual or business ... that can say that the city has never worked with them in a time when they couldn’t pay their utility bill and they needed help,” Gooch said. “When I ran for mayor six years ago, that was one thing that burnt my butt more than anything ... people that didn’t pay their bills and I swore up-and-down that I was not going to allow that (as mayor).

“But I got into office and I listened to some of the stories and I saw the people’s faces and I changed my mind and I changed my heart and I don’t necessarily like it but I do it every single month. Just like anybody else that gets behind on their taxes, we worked out a schedule. The club had said they had an offer of $360,000 for the property, they could have paid off every bit of their indebtedness and operated from here on out, not owing anybody anything ... and that’s exactly what I would have loved for them to do. We knew we had to work with them for some time and we put a lien on that piece of property so it could never be sold and the city’s interest would always be protected. We kept five city employees on that (club) board so we knew for sure if any money came out of there, the city’s interest would be insured and we would get our money back.”

Sam’s Pizza owner Linda Clark addressed the council noting that only 15 percent of her business comes from within the city limits of Providence and that many customers have already expressed their concern of the new tax. She also noted that with the rising cost of supplies, her profits would be affected adversely as well.

“We pay taxes now, who’s going to pay these taxes when I’m gone? The average citizen will,” she stated.

Keith Hopson, owner of Big Poppa’s Barbeque also argued against the tax, saying that Gooch’s comments of the city only purchasing items of necessity wasn’t consistent with buying a golf course.

“The golf course is not something that the city has to have. We’re struggling right now and we don’t need to spend money on it,” Hopson stated. “The 3 percent (tax) is not going to pay for the golf course but it’s going to pay for maintenance. No matter if it’s for purchase or maintenance, it’s still for the golf course.”

Gooch replied.

“You don’t agree that if you can get state money for it, it won’t cost us a thing, we shouldn’t get it. Would you prefer that it become a bean field, or a corn field or that nobody take care of it for 5-6 years and just let it grow up with weeds,” he answered.

“Why does the city have to buy it, let some private business buy it,” Hopson responded. “I don’t go to the golf course so why should I have to help pay for it.”

Gooch noted that the new ordinance was a tax but it would be spread throughout all citizens of the city.

“Providence has a lot of government subsidized housing, way more than what we need. Those residents don’t own property and they don’t pay property taxes and they don’t contribute to the system that contributes to them. But every one of them eats a cheeseburger and order of fries and every one of them drinks a pop. So this helps address the issue that everyone of us that owns property and pays taxes to afford all these luxuries that everybody gets to enjoy,” Gooch continued. “This is their way of being able to contribute back to the system that supports them so mightily. That’s why I feel it’s (tax) is a very fair way.”

Hopson did get a chuckle from the crowd from his next statement ... “to me, buying a golf course is like giving a bald-headed man shampoo, he just doesn’t need it.”

When Hopson asked why all city businesses weren’t being taxed, Councilman Tom Glover noted that it was against state law and that local government could not levy sales tax on businesses other than restaurants and hotels.

“It’s the law, otherwise I’d be on your bandwagon, one percent across the board,” Glover stated.

Ryan’s Grill and Ice Cream owner Debbie Ryan told of her struggles as a restaurant owner in Providence but stressed that she still loved the citizens and wanted the best for the community.

“This option (tourism tax) can work and I want it to succeed. I’m a Webster County person and I know these folks on the city council didn’t go against you intentionally. I don’t believe they want to harm anyone. I’m sure my customers don’t want that tax but this is our time to ‘go for it’ and take a chance. I’m proud to be a part of this place and let’s start working together and we can make a difference,” Ryan said. “This is an opportunity for our citizens and those taxes could make a big difference in our children’s lives. I know the council is looking to the future and they’re looking at the costs and the benefits.”

As the public appeals session came to a close, Council Glover added that he realized that the country club carried much history with the property being deeded to a group of Providence businessmen back in 1936. He also noted that the city would recoup owed taxes with the purchase.

“I just hope the next 100 years brings good things that will come from this (purchase),” he added. “Our kids swimming together and people using the walking trails and enjoying the beauty of the property, that’s my hope for the future.”

Councilwoman Dolores Overby echoed Glover’s statement.

“I’ve spent many sleepless nights thinking about this. I just couldn’t see losing a prime piece of real estate, letting it go and having no control of it. I hope we can come together as a community and use this as a municipal golf course, pool, tennis courts and walking trail. In the past, we’ve had to take so much money out of our general fund to spend on needed community activities such as the fireworks, Christmas decorations and celebrations. There’s only so much you can take out of the general fund for these things, that’s why we’re adopting this tax.

“I think it’s very important that we have an upbeat attitude about this so down the road we’ll have something to offer to our citizens,” Overby concluded.