Lacey advisory committee recommends 2026 lodging-tax awards, shifts funding to Regional Athletic Complex and fan zone

The Lacey Lodging Tax Advisory Committee on Oct. 16 voted unanimously to recommend the committee’s 2026 lodging-tax funding package to the City Council, advancing a slate of grants and several policy shifts intended to maximize overnight stays in Lacey.

The recommendation includes a $100,000 award to Experience Olympia & Beyond for destination marketing, a proposed $80,000 draw from reserves to support a regional “fan zone” tied to next summer’s World Cup soccer events, and an increased allocation for the Regional Athletic Complex (RAC) that brings the committee’s RAC recommendation to roughly $278,700. The package also sets aside $25,000 as a new cultural-event grant pool and directs several smaller awards to local festivals, facilities and events.

The committee’s recommendations come amid a projected gap between lodging-tax requests and available revenue. Staff presented a revenue estimate of about $577,000 for 2026 and total applicant requests near $966,719, leaving an approximate shortfall of $389,000. The committee considered using available cash reserves — staff reported roughly $909,408 at the start of the planning period and about $267,000 of immediately available reserves after other designations — to bridge funding for high-priority items.

Most important items and outcomes

- Motion and vote: Committee members moved to forward the full package to City Council. The motion passed unanimously, with the committee recording an affirmative vote and no oppositions. Council review was scheduled for Nov. 3; contracts would follow in January if council approves the recommendations.

- Big-ticket allocations (staff summary presented to the committee): Experience Olympia & Beyond (destination marketing) — $100,000; Regional Athletic Complex (base plus added funds) — approximately $278,739 (includes staff adjustments to prioritize RAC operations); Olympia/Lacey regional fan zone (World Cup-related) — $80,000 (proposed from reserves); Visitor/marketing and program grants for local events and facilities — a series of awards ranging from $2,500 to $40,000. Staff read a full line-by-line recommendation at the meeting (see clarifying details below for the complete staff list).

- Policy and priorities: City Council directed staff and the committee to prioritize activities that occur in Lacey and those that are most likely to generate “heads to beds” — paid overnight stays in local hotels. Committee members discussed shifting a recommended administrative allotment (previously 5% of revenues, roughly $29,000) away from an LTAC administrative line and toward RAC funding to align with that council guidance.

What committee members and staff said

Emily Brooks, director of marketing for Experience Olympia & Beyond, told the committee that her organization’s geofencing and visitor-data services are used by many LTAC recipients and that a funding cut would hamper the ability to provide multi-year, consistent visitor metrics. "The cut in funding would directly impact our ability to maintain the geofencing program and the data services that this committee and council members seem to really appreciate and need to guide their funding decisions," Brooks said during public comment.

Chelsea (acting financial services manager) presented the revenue and expense worksheet that formed the fiscal basis for decisions, noting the $577,000 revenue projection, a roughly $966,719 total request figure and available reserves of about $267,000 after staff set-asides. Assistant City Manager Shannon Joy Fong summarized the City Council direction that prompted the committee’s reprioritization: favor in-city activities and events that maximize paid overnight stays and consider a cultural-events grant pilot of $25,000.

Discussion highlights and uncertainties

- Fan zone: The committee discussed a regional fan-zone concept tied to World Cup events that would be primarily located at the Port Peninsula in Olympia with a digital scavenger-hunt component that would route visitors through Lacey points of interest. Staff said the proposal remains partly uncertain — timing, licensing for public viewing screens, and sponsorships are still being worked out — and recommended using reserves if the committee wants to commit funds now to give planners a path forward.

- Reserve use: Committee members debated using reserves for the fan zone and other priorities. Staff emphasized that LTAC reimbursements require applicants to incur expenses before getting reimbursed, which provides a partial fiscal safeguard for awards tied to events that may not materialize.

- Recusal and procedure updates: The committee discussed updated recusal procedures to align with other city advisory boards; when a member needs to recuse, the member will leave the room during deliberations and voting on that item.

Votes and next steps

- The committee approved forwarding the recommended 2026 funding package to the City Council by unanimous voice vote. Council is scheduled to review the recommendations on Nov. 3; if council approves the package, contracts are expected to be issued in January for the 2026 funding cycle.

Ending

The committee’s action shifts the immediate distribution strategy for lodging-tax dollars toward projects that city leaders say are most likely to generate overnight stays and local economic activity, while also setting aside pilot funding for grassroots cultural events and a contingency for a regional fan-zone project. The committee closed the meeting after the unanimous vote to forward the recommendations to council.