Council approves 2026 lodging-tax awards after debate over FIFA Fan Zone allocation

The Lacey City Council on Dec. 16 approved the Lodging Tax Advisory Committee's recommendations for 2026 funding awards after a contentious discussion about an allocation for a proposed FIFA fan zone event.

Cindy Sigler (Speaker 24) reviewed LTAC's recommendations and the rules governing lodging tax awards (restricted to tourism marketing, special events/festivals, and qualifying tourism facilities). LTAC's recommended total awards were presented in the packet; Sigler described the requirement that recipients report attendance (which can include vendors and staff) and that funding is paid on a reimbursement basis after documentation.

Council debate focused on the Fan Zone allocation. Several council members expressed concern about the process, uncertainty over the Fan Zone's details and whether it would drive paid hotel stays. One council member argued reallocating those funds to the City's Recreation and Athletic Center (RAC) would better ensure heads-in-beds impact; another urged taking the one-time opportunity to participate in the large international event. A motion to reassign the Fan Zone funds to the RAC (which would have required sending the package back to LTAC for reconsideration and a 45-day review) failed on a voice vote. Council then moved and approved LTAC's recommendations as presented; the final vote passed with one nay recorded.

Staff noted total awards and projected paid stays were based on applicants' estimates and that if an awarded activity ultimately does not use the funding the city must still report zero attendees for that allocation. Council asked LTAC and staff to continue monitoring outcomes and to ensure scope-of-service documentation and reimbursement paperwork are complete before payments are made.