Council reduces marathon funding by $50K

NAWILIWILI — The County Council decreased subsidies for the 2011 Kaua‘i Marathon in a special meeting Wednesday morning, after Councilwoman Nadine Nakamura introduced a last-minute amendment to reduce funding to $100,000.

The council’s Economic Development Committee on May 11 had approved $150,000 in funding for this year’s race, scheduled for Sept. 4. But Office of Economic Development Director George Costa said he identified some alternative funding the day before the bill went before full council.

“I received yesterday a verbal commitment from (Hawai‘i Tourism Authority) for funding between $25,000 and $35,000,” Costa said. “I’m waiting to get something in writing.”

In addition, Costa also said the Kaua‘i Visitors Bureau had allotted $20,000 for a promotional trip to Japan. The money was part of a $200,000 visitor stimulus package approved by the council earlier this year.

“But in light of the tsunami and the devastation in Japan, obviously it’s not appropriate at this time,” said Costa, adding that the $20,000 could be used to reduce the organizers’ request from the council.

Nakamura had already done her homework, and had a written amendment ready to be introduced.

She said that on Tuesday she had contacted HTA officials, who had confirmed there is money available for the marathon and they were looking for an event of that nature on Kaua‘i to support.

Councilman KipuKai Kuali‘i did not support the amendment, nor the final version of the bill. He said if the council was willing to give it “a little bit more time,” there might be some more alternative funding available.

Councilman Mel Rapozo was off-island on Wednesday on official business, and could not participate in the discussion and voting. Additionally, Councilman Dickie Chang had recused himself from the issue, citing a possible conflict of interest because he works as the event’s emcee.

With the seven-member body reduced to five members, the final version of the bill, appropriating $100,000 from the county General Funding, passed on a 4-1 vote.

Controversy

Race organizer Bob Craver on May 11 told the council that despite a verbal commitment to receive funding from HTA, no money had been released.

However, Craver said no written proposal had been sent to HTA, and that he didn’t know who was Kaua‘i’s HTA representative.

Craver also told the council on May 11 that the Kaua‘i Marathon had not paid state General Excise taxes from the previous editions of the race. But Craver downplayed the tax default, saying entry fees are not taxable, and the amount owed was minimal — from merchandise sold by a contracted company. He said the issue was being taken care of and would be resolved soon.

On May 10, the council’s Committee of the Whole had approved $120,000 for the 2012 marathon, which prompted Rapozo and Kuali‘i to say the council would be approving multi-year funding, an illegal practice.

Council members JoAnn Yukimura and Tim Bynum disagreed that the council was approving multi-year funding, saying the 2011 marathon funding comes from Fiscal Year 2011, and the 2012 race funding from FY12.

Rapozo was concerned that if some of the comments from Craver were true, organizers could take the funding without putting out the 2012 race.

Those concerns stemmed from Craver saying on May 11 that founder Jeff Sachini told him he would pull out funding if the race wasn’t profitable in three years. The 2011 race is the event’s third edition. In 2009 and 2010 Sachini lost $350,000 combined, according to Craver.

Costa said on May 11 that OED would release funding for the 2012 race after this year’s race, and only after there is a commitment from organizers to run next year’s race.

Go to www.kauai.gov for more information.

• Léo Azambuja, staff writer, can be reached at 245-3681 (ext. 252) or lazambuja@ thegardenisland.com.