Palmer gift shop's future in limbo

PALMER -- City officials are looking for someone to run the Palmer Visitor Center's gift shop since Palmer Chamber of Commerce has decided to abandon the operation, leaving dozens of consignment artists without an outlet for their products.

Chamber president Stu Graham told Palmer City Council members Tuesday during a work session that the gift shop has become an economic drag, costing the chamber $20,000 last year. Similar losses, primarily for staffing costs, have been recorded in previous years, he said. Last year, the center employed one full-time manager and one part-time information specialist.

"The chamber is not against the consignors but we can't continue to provide that outlet," Graham said.

The chamber receives 37 percent of consignment items' sale price. Last year, total sales were $121,000 with the chamber receiving about $48,000, Graham said. With total expenses of $68,000, that accounted for the $20,000 loss, he said.

The city's lease with the chamber for office space in the center expired in September 2003. Terms of the lease did not require the chamber to staff the gift shop, as it has been doing. Leasing has been on a month-to-month basis since September.

The issue will be on Tuesday's city council agenda as a discussion item. Several consignment artists attended this week's work session to urge that the gift shop continue to operate.

"It is an excellent outlet for local crafters," said artist Nancy Wade. "The big appeal of this gift shop is the building, that rustic look. Inside, there are things you can't find elsewhere -- handmade in Alaska."

One consignment artist said a New York resident who visited the center four years ago still calls her for Christmas gifts.

Nancy Borg, who is not a consignor, also supported continuing the informational outlet and gift shop under some sort of management. Borg, a 35-year local resident, said she always takes summer visitors to the visitor center for lunch and to enjoy the garden.

"Why shut down one of your best assets?" she asked. "The gift shop is a great source for made-in-Alaska."

City Manager Tom Healy noted the city has budgeted $52,000 this year for the center -- primarily for building and grounds maintenance. While he and other council members support the gift shop staying open, Healy said the city should not be in the gift shop business itself. That role is best filled by a nonprofit organization, he said.

Council Member Tony Pippel noted that he's gotten a "significant amount of correspondence" from downtown merchants who oppose the gift shop because they see it as competition for their own stores.

"I don't think it's in direct competition with the merchants," Pippel said. "I'm not hung up on that issue. But I'm also not convinced a consignment shop is going to pay the costs for a visitor information center. The question is 'who is going to pay the costs?'"

While not necessarily endorsing the idea, Pippel raised a city bed tax for discussion. "This is the only community I know of that doesn't have a bed tax," he said.

Council Member Brad Hanson said he's not keen on a bed tax, although he does want the information center to continue as a tourist draw, including the garden. He supported the idea of seeking proposals from groups interested in operating the facility.

Healy said one of the questions that must be answered is whether the council wants to continue leasing space in the building to the chamber so it can provide visitor information. Another question is whether it's better to turn the entire building over to another entity with the chamber going elsewhere for office space, he said.