Impacts of tourism drive growing frustration

Sixty years ago the issues involving life in Leavenworth were dramatically different. The economy was collapsing. Property values were declining. Buildings were falling into disrepair and junk filled neighborhood yards.

A group of local residents came together and developed a bold plan to turn that around. Their bold plan has created one of the most popular and vibrant small communities in the country but a growing frustration is beginning to develop among local residents. 

Parking and traffic concerns are a major source of frustration. Lack of affordable housing makes it difficult for employees to find a local place to live.

Short-term rentals of private residences anger neighbors who feel they can no longer enjoy the quiet use of their own property.

In an attempt to address the frustration, the city council is currently debating the implementation of an ordinance to control and limit festivals. The immensely popular Christmas lighting festival is the latest target and the impetus for the apparent driving need for a new ordinance. While last year’s Christmas lighting festival was particularly problematic there is significant evidence that the problem was related more to poor execution of traffic control from the sheriff’s office than from a growing crowd of visitors. An inadequate number of deputies with little or no experience appear to have been overwhelmed by the crowd.

City officials including Mayor Cheri Farivar have chosen to put the blame on the Snow Train. The city has since notified Alkai Tours that the Snow Train will no longer be accommodated. 

It is estimated that the Snow Train brings in about 1,000 visitors. These visitors do not stay overnight. They also do not bring cars that add to the traffic congestion or require parking. 

Historically, the Cascade School district has earned $15,000 from the Snow Train tour company by providing school busses to transport the visitors from the train station to downtown and back.

The reality is the economic impacts of tourism are now inexorably intertwined in the financial health of Leavenworth and the surrounding communities. Tourism sensitive revenues now account for over 33 percent of city income (see chart). Parking fees and Lodging tax, which account for nearly 20 percent of city revenue, are almost entirely dependent on visitors. And Leavenworth’s retail sales are unlike any similar sized community across the state. Retail sales tax revenues are about four times what similar sized communities experience (see chart).

This raises significant and as yet unanswered questions about how much of the cities services would have to be cut if the tourism sensitive revenues declined substantially or, how much local property taxes would have to increase to make up for those declining revenues? 

Property tax including Real Estate Excise tax on the sale of your personal residence barely cover the annual cost of the Chelan County Sheriff’s contract at the present time.

With state mandated limits on the rate at which property taxes can be increased lack of careful financial planning could result in severe stress to the cities finances.

What happens to local property values if the enchantment of the Bavarian Village begins to lose its appeal?

How much and how often would local utility costs increase?

At the city council meeting a few weeks ago during the first reading of the draft ordinance for regulating festivals long time city councilman and former mayor, Elmer Larson said, “if your goal is to kill festivals this ordinance will do it.” 

The ordinance was scheduled for a second reading at the following city council meeting and would have gone into effect had the council approved it. However, public input at that meeting has resulted in a postponement of the second reading pending a meeting with festival heads.

The ordinance as it was written would appear to affect every festival including Art in the Park, the Farmers Market, Autumn Leaf, Maifest, Oktoberfest, and Christmas Lighting.

Leavenworth has built its brand on the Bavarian theme of unique architecture in a beautiful alpine setting. The magic is enhanced by the entertainment we provide our guests. 

Those who worked together sixty years ago to build this magical place called Leavenworth gave us all a great inheritance. There are many beautiful places in the Pacific Northwest where people can recreate. How long it will take Leavenworth to lose the magic if the community doesn’t address the current problems in a carefully considered way is now the challenge of the new generation of residents who call this place home.