Daily Outtakes: TDC revisits Chappie James Memorial dispute

This week, the Escambia County Tourist Development Council (TDC) holds a special meeting at 3 p.m. on Thursday, March 13. Chairman David Bear requests council approval to send a strongly-worded letter to the Florida Department of Revenue and the Escambia County Board of County Commissioners challenging a proposed use of tourist tax funds. At issue is whether tourist development tax (TDT) revenue can be used to construct a memorial honoring the late General Daniel ‘Chappie’ James, Jr.

The TDC letter doesn’t mince words:

“The TDC submits this letter to fulfill these reporting obligations because it is clear that the use of TDT to fund the proposed Memorial is unauthorized under plain terms of the Act and Section 90-56(a), Escambia County Ordinances. Simply stated, TDT revenues cannot be used for a purpose other than those enumerated in the Act, section 125.0104(5)(a), Fla. Stat.”

THE LEGAL FRAMEWORK

For those unfamiliar with Florida’s tourist development tax laws, they’re specific about what these funds can be used for. The letter outlines these authorized expenditures, which include:

Convention centers, sports facilities, and auditoriums
Aquariums and museums that are publicly owned or operated by nonprofits
Promoting zoological parks
Tourism advertising and promotion
Funding tourism bureaus and information centers
Beach and waterway improvements
Public facilities (with limitations)

THE ATTEMPTED WORKAROUND

Last month, the TDC withdrew all funding for the memorial, arguing that TDT funds weren’t appropriate for the statute and plaza’s construction. However, the Board of County Commissioners voted to allocate the funds due to County Clerk Pam Childers’ reclassification of the memorial as an open-door museum, which she said would fit within the authorized categories:

“At the Board’s February 20, 2025, business meeting, the Escambia County Clerk opined that funding the Memorial could be authorized if the Board merely decided to characterize the project as a ‘museum,’ as construction of museums does fall within the authorized uses enumerated in the Act…”

Chairman Bear isn’t buying this semantic sleight of hand, noting: “The project, which consists only of a memorial plaza, is plainly not a ‘museum.'”

He even points out that an actual Chappie James Museum already exists in Pensacola, making the argument even more strained.

It should be noted the TDC was willing to budget funds to promote the memorial as a tourist destination, just not for its design and construction.

THE ECONOMIC ARGUMENT FALLS FLAT

What makes this controversy particularly noteworthy is that the County commissioned an Economic Impact Assessment that actually undermines any argument that the memorial would promote tourism:

“The EIA describes the economic benefit as related to ‘short-term construction activity,’ and enumerates industries benefiting from the construction, which generally relate directly to construction and in no respect have any meaningful nexus with the attraction of tourists to Escambia County.”

CLEAR PRECEDENT

Bear cites Florida Attorney General Opinion 98-74, which addressed a similar situation involving Orange County’s attempt to use tourist tax funds for an “All Wars Memorial.” The Attorney General concluded that “constructing memorials was not an authorized use of TDT revenue in its own right.”

More recently, the Board received an informal letter of opinion from the Office of the Attorney General, making clear that the memorial’s construction “could not possibly fall within the approved uses for TDT revenue.”

WHY THIS MATTERS

For Taxpayers: Tourist development taxes are paid by visitors staying in short-term accommodations. When these funds are diverted to unauthorized purposes, it undermines the social contract with taxpayers who expect these special taxes to be used for their intended purpose.

For the Tourism Industry: The tourism industry relies on these funds to promote destinations and develop tourism-related infrastructure. Misappropriation of these resources directly impacts the industry’s ability to grow and compete.

For Local Governance: How this dispute is resolved will likely influence how other Florida counties interpret their authority to allocate tourist development taxes. It could either reinforce the strict interpretation of the statute or open the door to creative recharacterization of projects.

For Honoring Local Heroes: The dispute also raises important questions about how communities should fund tributes to important historical figures. General James—the first African American four-star general in the U.S. Armed Forces—unquestionably deserves recognition, but the funding mechanism matters.

It also questions why the foundation created to raise funds for the memorial has failed to raise much money from the private sector and has become so dependent on government dollars. Board members have dodged answering questions about the exact figure they raised outside government funds.

THE BOTTOM LINE

This dispute shows how even well-intentioned projects can run afoul of specialized tax regulations. Tourist development taxes are collected for specific purposes, and the law gives very little wiggle room for creative interpretations.

Daily Outtakes: TDC revisits Chappie James Memorial dispute

THE LEGAL FRAMEWORK

THE ATTEMPTED WORKAROUND

THE ECONOMIC ARGUMENT FALLS FLAT

CLEAR PRECEDENT

WHY THIS MATTERS

THE BOTTOM LINE

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