Hopping along next on the CAPC agenda was what to do about Jackrabbit. Chamber of Commerce President Paul Miller said he was surprised to learn how many lodging owners in town did not have a computer-based reservation system, and to provide assistance for them the Chamber signed up with Jackrabbit, a real-time online reservation booking agent.
Miller called the system “a vital piece for growth in our town and sustainability for these businesses.” He claimed that not only would Jackrabbit allow those who sign up to enter the 21st century but there would be no booking fees leaving town to booking services elsewhere.
Historic Hotels GM Jack Moyer claimed nearly $1 million annually is outplaced by local lodging properties to online travel agencies. Miller said the Chamber already signed the license and the system will launch August 1 for those who signed up. Moyer clarified the basic Chamber membership package of $375 includes enhanced listings on the website, a grid listing and an allocation for Jackrabbit.
Miller passed around copies of the request from the Chamber board which asked the CAPC to pay the Jackrabbit license fee for all its lodging collectors so none would be left out. The Chamber would manage the implementation of Jackrabbit.
“This is illegal,” Executive Director Mike Maloney contended. He said it would amount to commingling of private and public funds, which is disallowed on page 1 of the Arkansas Constitution. He pointed out the Chamber is a private organization. It has members. CAPC is a city commission and a tax-collecting organization.
Moyer disagreed about commingling. “You’re paying for your collectors,” he said, and contending the Chamber receives no benefit. Henke heartily endorsed Jackrabbit, an idea he brought to the CAPC two years ago.
Moyer commented, “If the CAPC does not work with us on this, then its collectors who choose not to participate will be at a competitive disadvantage.” He noted from his experience how much in reservation fees must be leaving town, and he wants at least a portion of it redirected locally.
The license fee would be $17,000 annually for three years, and there are approximately 150 lodging property tax collectors. McClung asked if the tax collectors, particularly the one- or two-room Bed & Breakfasts, want this service, and opinion was divided.
Harman saw it as the CAPC making the decision for collectors by paying the whole amount for everyone so no one is unfairly left out, and whether collectors will use Jackrabbit is unknown. But overriding who might use the system was the legal matter. To settle the legal question, Maloney said he would present to Mayor Butch Berry a formal request to the CAPC from Miller, which Berry would send to the Municipal League for an opinion.
Moyer reminded commissioners it would be a contract for service like other similar arrangements the CAPC has.
Maloney restated the first issue is the Municipal League must say it is legal.