The owners of a newly developed resort in Altamont are appealing to the Duchesne County Commission for a one-year tax holiday on their business.
Commissioners said they will consider the proposal.Jim Bills, Neola, and Howard Brinkerhoff, Altamont, are seeking the tax break on Falcon's Ledge Resort. The resort opened in July 1993. Bills and Brinkerhoff proposed the county forgive property and personal taxes on the resort for its first year in business and urged commissioners to consider implementing similar tax breaks to assist other businesses involved in eco-tourism and recreation in Duchesne County.
Property taxes on the resort itself are close to $10,000.
"We came into the county and did what we said we would do to the tune of a couple million dollars," Brinkerhoff told commissioners while presenting the proposal. "We have had an impact on other businesses, and we've been here for just a year.
"You can look at two different reasons for giving us a tax break - number one it's a new business and number two it's designed to create a new industry in the county," said Brinkerhoff. "Eco-tourism is an adolescent industry right now. We are asking to be the first ones you show favoritism to because we have taken the risk. I look at it as a pat on the back, as your way of saying welcome to Duchesne County."
Brinkerhoff said Falcon's Ledge has helped spur the growth of other businesses such as Pleasant Valley Hunting Preserve and indirectly benefits numerous other area businesses. He predicted a tax holiday would serve as an incentive to similar businesses looking at Duchesne County.
Eco-tourism, he argues, brings "fresh money" into the county, creates no negative impact on resources and maintains the rural lifestyle enjoyed by area residents.
Bills acknowledged that creating a tax holiday would cost the county money in the short run but could have tremendous positive impacts in the future.
"You're looking for a new tax base for this county because you're losing the one you've got," Bills said. "It would help because it would show you are interested in this county and you are doing everything you can to help it. You help us and we'll help promote the county. It's a great image and you need us to compete. Local businesses bring clients out there (to Falcon's Ledge) as a selling point. We have what Park City does but without the crowds."
While the two realize granting such a request and opening up comparable tax benefits to others involved in recreation could stir a public backlash aimed at commissioners, they insist those who are most likely to complain aren't looking toward the future.
"The message you need to send is `stay with us, Mr. Businessman, and you will benefit, too.' The development in Park City is moving our way," Brinkerhoff said.
The commissioners appeared to agree with the philosophy prompting the proposal but said they would have to explore in-depth the effects such a tax holiday would have on county coffers as well as on other taxing entities such as the school district and water district.
It's a typical "Catch 22" situation. It takes money to make money, and when it comes to the recreation industry it takes more of an investment to get off the ground and financial returns are slower, said Bills, noting that money from recreation doesn't pack a big turnaround in the community in terms of dollars.
"Tax incentives would encourage new businesses (to come) in and old businesses to do more," said Commissioner Larry Ross. "The philosophy is similar to an enterprise zone, and in a depressed economy you need incentives. On the other hand, can Duchesne County afford to give tax breaks?
"The person who wants to argue for or against tax incentives has a good argument," he said. "Tax reductions probably won't lose us any money in the long run, but it certainly will in the short run."
Commissioner Rick Reynolds agreed. "It's the first proposal we've had like this, and we want to make sure we make the right decision. We don't know what the repercussions will be."
Falcon's Ledge is nestled in Big Hollow Canyon and bills itself as a "world-class resort." The lodge features guest accommodations, conference rooms, and a pro-shop.