Get the Facts on GWTIDA

To The Editor:
In response to Herald reporter Deborah McGuire’s, story of Oct. 19, GWTIDA, the Greater Wildwoods Tourism Improvement & Development Authority operates the Convention Center in Wildwood. According to APP.com Data Universe, 13 people are employed by GWTIDA with a total base salary (not including benefits and pensions) of $702,406 annually. The board members consist of people from North Wildwood, Wildwood and the Crest. Wildwood representatives are Joe Montello, Paul Reidenbach, and Tom Byrne according to Mayor Ernie Troiano. Where is GWTIDA getting the money to operate this facility, pay 13 employees, and advertising/promotion of tourism?
1) The 14 percent tax levied on all room rentals-they receive the 2 percent tourism tax.
2) The 9 percent sales tax collected on prepared food and beverages, GWITDA receives 2 percent. The combined 2 percent tourism tax received $3,701,000. Ninety percent of these funds are designated for the operations and maintenance of the Convention Center (salaries) 10 percent for advertising and promotions.
3) TDF-Tourism Development Fee 1.85 percent. This tax is collected from businesses that don’t pay the 14 percent room tax. All three municipalities, North Wildwood, Wildwood & Wildwood Crest collect this tax for GWTIDA. GWTIDA in turn, compensates each municipality $30,000 a year for their efforts in collecting this tax. Since 2004, the first full year of the 1.85 percent Tourism Assessment total collected by GWTIDA was $10,974,000, ($1,371,750 average annually). This money is used strictly for promoting events. Total received by taxation for the operations, maintenance and salaries of the Convention Center for 2010 $3,330,900 built-in income. Additional revenue is generated from Convention Center room rentals, events and parking fees. Hopefully, they’re covering their salary cost.
What is Wildwood getting from hosting the Convention Center? Executive Director, John Siciliano stated in the Herald’s Oct. 19 article, the order of payment. First, GWTIDA should be receiving a total income annually of $4.5 million for their operations, maintenance and salaries. Second, capital leads or reserves for Convention Center improvements. Third, payment in lieu of taxes (PILOT) to the City of Wildwood. Siciliano stated our city receives $35,000 annually. Yet, on the Vendor Activity Reports for 2009 and 2010 that he gave me May 6, 2011, I see no record of payment. Does $35,000 cover the cost for essential services provided by our police, firemen, ambulances and maintenance on our roads/infrastructure?
The $186,000 in “rent” is the income Wildwood lost because of leasing our lots. In regards to the $30,000 GWTIDA gives our city for TDF collections (it’s paying our city employees for performing Convention Center business nothing more). Fourth, the $3 million mortgage owed to Wildwood (taxpayers), as Siciliano stated, GWTIDA has not paid our city since 2003. He also states the building was “free.” Not so, it’s still costing Wildwood taxpayers $3 million plus in bonds that we make regular payments on. As far as Wildwood forgiving the debt? No way! It’s this free mentality driving Wildwood into serious debt and making property taxes soar! Financially, Wildwood is at a critical juncture. I urge the mayor, commissioners and GWTIDA board members to take action. Here are some possible solutions: 1) Get the 2 percent tax on food and beverages directed to thecity’s general fund to offset property taxes (see Cape May’s model). 2) Revisit the PILOT payment; seek fair compensation. 3) Get our mortgage payments from GWTIDA or the State. Page 12, Section 4 (c) of the Omnibus Agreement states: NJSEA agrees in any such year to seek an express, separate appropriation from the State through the State Treasurer to satisfy any such shortfall. The cost for hosting the Convention Center shouldn’t be on the backs of Wildwood taxpayers.
SANDRA RICHARDSON
Wildwood