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Fergus Falls council votes to end Visit Fergus Falls agreement, plans renegotiation for 2026
Summary
The Fergus Falls City Council voted Oct. 20 to terminate its 2021 agreement with Visit Fergus Falls effective Dec. 31, 2025, and directed staff to negotiate a new contract to take effect in 2026 amid budget pressure and discussion of raising the city's administrative share of hotel tax revenue.
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The Fergus Falls City Council voted on Oct. 20 to terminate its 2021 agreement with Visit Fergus Falls, effective Dec. 31, 2025, and instructed staff to negotiate a new agreement to begin in 2026.
Council member Laura Jobe introduced the motion, saying the move reflected the council's intent to review spending amid city budget pressure and to refocus marketing on the convention center. "Our intention is to sit down with Visit Fergus Falls, and negotiate some terms so that we can move forward with a new agreement," Jobe said.
Mayor pro tempore (S1) and other council members discussed the financial context: the city currently subsidizes the convention center by about $150,000 a year, Visit Fergus Falls holds roughly $250,000 in its account, and annual hotel tax receipts are about $160,000 to $170,000. S1 noted that under the city code and Minnesota statute the administrative share of hotel tax revenue can be increased; the council discussed moving the city's administration fee from 3% to the statutorily-allowed 5% to support direct marketing of the convention center.
Council members asked that any future agreement be considered in public session and be returned for council approval. S3 asked whether the new agreement would be discussed publicly; S1 confirmed it would.
After discussion the council approved the resolution by roll call. The motion did not detail the new contract's terms; council members said staff will negotiate and return the proposed agreement for review and approval.
Next steps: staff will meet with Visit Fergus Falls to draft a 2026 agreement and present it to the council in a public setting for approval.

