Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, January 28, 1992 TAG: 9201280085
SECTION: CURRENT PAGE: NRV-9 EDITION: NEW RIVER VALLEY
SOURCE: CATHRYN McCUE
DATELINE: BLACKSBURG LENGTH: Medium
RESTAURATEUR WANTS MORE TECH MEALS TAXED
Bill Ellenbogen and his fellow restaurateurs in town just want a fair chance to compete with Virginia Tech when it comes to feeding folks.Ellenbogen plans to tell Blacksburg Town Council tonight that the university's practice of not charging a meals tax at its food courts means unfair competition for off-campus restaurants.
"It's very non-controversial and simple," Ellenbogen said Monday. "We want to be on a level playing field, is all."
Blacksburg is proposing increasing its meals tax from 3 percent to 4 percent to pay for several important projects, including street repair and maintenance.
Ellenbogen said he thinks the increase is unfair, but realizes that the town is strapped for money. Council is scheduled to take action on the meals tax tonight as part of the Capital Improvement Program.
"It's a done deal. I don't want to waste my breath fighting it," Ellenbogen said.
But he would like to see Tech charging a meals tax on cash sales for all non-students, including faculty and staff, he said.
Franchise restaurants on campus, such as Burger King and Hardees, charge the meals tax, but the campus food courts and the catering service - which are open to the public - do not charge it.
For a $10 meal, it would mean a difference of 40 cents at the proposed rate.
Ellenbogen said he's been talking with several university administrators who indicated they would be willing to consider changing its meals tax policy.
Last week, at a meeting with town officials and Downtown Merchants of Blacksburg Inc., merchants discussed the meals tax and other problems they perceive in competing with services offered on campus.
The merchants plan to draft a position statement for other merchant groups, including the Blacksburg Greater Chamber of Commerce, throughout the state. They also would spearhead efforts to propose legislation for the 1993 General Assembly regarding unfair competition with universities.
On another matter at tonight's meeting, Town Council will consider variations of a special-use permit for Victor and Jo Pat Huggins to start a bed and breakfast at their Clay Street apartment complex.
One version would allow the Hugginses to convert all their apartments to the bed and breakfast. If the new venture fails, the permit would allow the Hugginses to simultaneously revert all their units to apartments.
The other version would allow the Hugginses to start a bed and breakfast in and keep a few specific units as apartments as necessary for their family members.
Also at tonight's meeting, Town Council will consider taking steps to refinance the remaining balance of the town's 1982 bond issue of $2.2 million, possibly saving up to $60,000.
"We're basically doing what most homeowners are doing in refinancing their mortgages," said Assistant Town Manager Bonnie Svrcek.
There is less than $1 million remaining on the bond issue.
The town hopes to reduce its interest rate over the next five years from 9.2 percent and higher to about 6 percent, where rates currently stand, Svrcek said.
Council will consider hiring McGuire, Woods, Battle and Booth for $4,500 to refinance the bond.