Leavenworth extends Chamber lodging-tax contract for one year while staff, chamber negotiate new agreement

Troy, a representative of the Leavenworth Chamber of Commerce, asked the City Council on Dec. 9 to approve a one-year extension of the Chamber’s contract to receive a portion of visitor-generated lodging tax to operate the visitor center, staff events and run marketing programs. "So I ask you to please approve the 2026 extension," Troy said near the end of his presentation.

The Chamber’s presentation outlined how lodging-tax receipts are earmarked for visitor services and events rather than general revenue. Troy described the Chamber’s planned 2026 uses: operating a year-round visitor center (staffed seven days a week and answering thousands of calls), supporting four major events (Oktoberfest, Christmas Town, Mayfest, Winter Carnival), funding seasonal event staff and paying for storage and equipment needed to stage large festivals. He noted one-time capital moves — a long-term lease at 645 Front Street and the purchase of storage/operations property — intended to reduce recurring costs.

The request followed a budget review showing lodging-tax-related revenues increasing between 2022 and 2023, while many event and operating costs rose sharply—insurance and storage costs were specifically cited. Troy told council the Chamber had revised its distributing and programming approach and would continue to provide quarterly expense letters to the city.

Why it matters: The Chamber manages events that draw significant tourist-related revenue to Leavenworth and carries organizational risk for high-cost events such as Oktoberfest. Council members and residents repeatedly framed the extension as a pragmatic, short-term measure to maintain services while staff and the Chamber complete a new contract.

Council concerns and public comment: Council members asked about Chamber staffing (the Chamber reported eight full-time employees), the Chamber’s "funding forward" philanthropic allocations (Troy said the program will be reduced and that roughly $40,000 will be allocated for specific community programs), and whether the Chamber could offer local discounts for high-traffic weekends. Kevin Rickey, identified himself as a business owner and Chamber board member, told council the Chamber had stepped into financially risky work recently and that "the Chamber has intentionally aligned its programs with the city's priorities and community concerns." Kevin urged continued support.

Action and next steps: Staff recommended a one-year extension to buy time to locate and craft a modern agreement—the current contract references a 2001 agreement staff could not locate. Council approved the extension unanimously and directed staff to begin negotiations and produce a new draft contract for earlier review next year.

What the extension does and doesn’t do: The extension maintains the current revenue share (21% of prior-year lodging-tax revenue as shown in the staff report) for the period proposed and preserves the Chamber’s operational funding while a new agreement is negotiated. It does not change how lodging-tax revenues are legally allowed to be used; staff said they will return with a proposed new contract that clarifies deliverables, reporting and accountability.

The meeting record shows the council moved, received public comment and voted to approve the one-year extension; staff committed to beginning negotiations promptly and to bring a new draft to council in 2025.