Council narrows Taste Newberg contract, approves small TLT set‑asides for downtown groups and asks for KPIs

After extended public comment from the visitor center, chamber and downtown coalition, the Newberg City Council on March 17 amended the proposed destination‑marketing contract with Taste Newberg and approved a revised allocation of transient‑lodging‑tax (TLT) funds that spreads some, but not all, tourism dollars to other local nonprofit groups.

The meeting featured public presentations from representatives of Taste Newberg, the Newberg Downtown Coalition (NDC) and the Chehalem Valley Chamber of Commerce and more than a dozen residents and business owners. Speakers said all three organizations contribute to the visitor experience and the downtown economy: Taste Newberg handles destination marketing and website traffic, the chamber operates the visitor center, and NDC runs downtown events, beautification and merchant support.

Council debate focused on three issues: the length and oversight of any TLT contract, how to ensure funds are used for legally permissible tourism promotion, and how to sustain downtown volunteer work and visitor services. Several councilors said they value the visitor center’s work and were reluctant to cut the chamber’s existing $45,000 annual support. Others argued some downtown functions are not strictly tourism marketing and recommended holding organizations to measurable deliverables.

The council took the following actions: - Modified the proposed Taste Newberg contract term to a shorter performance period (three years) with contract renewal review during the second year so the organization would have advance notice before any nonrenewal. - Approved a distribution of the tourism‑dedicated portion of TLT revenue that allocates a small set‑aside to local groups: approximately 3 percent to the Chehalem Valley Chamber of Commerce and 2 percent to the Newberg Downtown Coalition, with the remainder to Taste Newberg (the council instructed staff to convert the motion into final contract percentages and a blended revenue share consistent with the city's TLT formula). The council also directed that the chamber’s existing $45,000 visitor‑center support remain in place in the near term. - Required that the final contract include specific key performance indicators (KPIs) and reporting expectations covering marketing metrics, verification of tourist origin (as required by state law), and documentation of how funds are spent and subcontracted locally when practicable. Staff and councilors emphasized that KPIs should be consistent across any organizations receiving TLT set‑asides.

Councilors emphasized legal compliance with state statute on permissible TLT uses and asked staff to ensure proposed downtown beautification or events funded by TLT can be demonstrated to support tourism (for example by documenting visits from non‑local overnight visitors). Staff advised that some downtown activities clearly fit the statute while others will require clearer factual showing to defend programs if challenged.

The council also asked staff to return with contract language and measurable KPIs and delegated negotiation authority to city staff to finalize the agreement once the contract period, allocation percentages and reporting metrics are written into the document. The council’s motions directed staff to include the KPI language before final signatures and to report back if additional council action is needed.