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There's no right or wrong to it -- involvement of the business community shows that they know it's all about marketing.
Sure, the word "coon" might raise some questions in some peoples' eyes. But in others, the name would invoke a backwoods, hick flavor -- certainly no place with anything important going on. I think if it were called "Donkeyville" or "Skunkburg" there'd be just as strong a case for a namechange, especially in a town of 65K that wants a good image.
My dad used to own property in a town that had been called Bedbug. Somewhere along the line, before he got there, the city fathers changed the name to Ione. Wise move. And not at all PC -- unless you want to protect the rights of bedbugs.
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