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Tourist, bus agency leaders dispute who should receive funds

Leaders debate food and beverage tax

Leaders debate food and beverage tax
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  • Leaders debate food and beverage tax
  • Leaders debate food and beverage tax
  • Leaders debate food and beverage tax

Northwest Indiana's lead proponent of regional bus service and the lead booster of its tourism industry faced off Thursday regarding a proposed Lake County food and beverage tax.

"Should we have buses, yes," said Speros Batistatos, chief executive officer of the South Shore Convention and Visitors Authority. "I want you to hear very clearly I'm not anti-bus."

For much of the following hour, Batistatos questioned everything from how many people actually ride buses to the integrity of the Northwest Indiana Regional Bus Authority.

Facing Batistatos from a lectern about 15 feet away was Dennis Rittenmeyer, RBA president. The two were there as invited speakers at the Lakeshore Chamber of Commerce's monthly meeting.

During what developed into a debate, Batistatos waved a letter attached to a recent audit of the RBA. The letter made nine recommendations to improve RBA administration. One advised the RBA to establish procedures for monitoring grant recipients to head off fraud or misappropriation of funds.

Batistatos said the letter demonstrated there is impropriety at the RBA.

Rittenmeyer pointed out the audit itself gave the organization's finances a clean bill of health.

"The historic problem we have dealt with, and are still dealing with, is local funding," Rittenmeyer said.

The Regional Bus Authority and Northwest Indiana Regional Development Authority are pushing Lake County government to enact a 1 percent food and beverage tax. If it does, the tax proceeds would go to the RDA to fund whatever programs it chooses as authorized under state legislation passed in 2005.

The RDA has resolved to use the tax to fund public transportation.

Batistatos said he was speaking as an advocate of his industry in lobbying against using the tax for buses. He said, if passed, such a tax should be put to use in ways that would boost tourism.

"Siphon money away from the restaurant industry, and people will lose jobs," Batistatos said. "It's simple economics."

Batistatos acknowledged he has proposed using the tax for building a convention center. But he said he also could support its use for lakeshore development or building out Gary/Chicago International Airport.

With the region's largest on-demand bus system closing this weekend and Hammond Transit scheduled to go out of business in June, Rittenmeyer said the time to act is now.

"We want to work with and through the existing systems we have so we don't break service for the people we have," Rittenmeyer said. "But what we're doing right now is breaking service."

He said millions of dollars in federal aid will be lost if bus systems fold -- money that may never be recovered.

Lakeshore Chamber Executive Director Dave Ryan said the two officials were invited to better clarify the proposed tax issue for Hammond's business community. He advised people to tell elected representatives their views.

Hammond Councilman Anthony Higgs said he didn't hear what he wanted to at the debate.

"I didn't hear a plan," Higgs said. "It's my hope and prayer they come up with one."

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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