Council votes to terminate Visit Fergus Falls contract to renegotiate fees and marketing obligations

The committee revisited the city’s contract with Visit Fergus Falls, originally executed in 2021. Staff told the committee the existing arrangement includes a city administrative fee set at 3% for collecting lodging‑related funds and that Minnesota statute allows raising the administrative fee up to 5% to cover administrative costs.

Members expressed concern that Visit Fergus Falls’ prior marketing work emphasized "heads and beds" (lodging occupancy) rather than broader city promotion and specific marketing for the Big Wood/Event Center. One council member said on the record: "Visit Fergus Falls is visit Fergus Falls, not heads and bed ... we want our motel rooms full... But we also want to advertise that our city." Another council member said the organization has shifted its mission and is "getting there" but that the city needs a clearer marketing plan and measurable commitment.

The city attorney recommended terminating the existing contract at the correct contract timing and negotiating a new agreement. The tax levy committee and staff said their intention is not to discontinue a partnership but to secure revised terms, a higher administrative fee if warranted, and a dedicated marketing plan and funding commitment for the Big Wood/Event Center (the city currently manages the center and reports roughly $150,000 in net cost to the city).

A motion to terminate the contract to enable renegotiation was offered and seconded; the committee approved the motion by voice vote and placed the matter on the consent agenda for council action.

What’s next: staff will proceed with termination per contract timing and negotiate a new contract with Visit Fergus Falls, with council direction to explore raising the administrative fee, clarify marketing priorities (city promotion plus event center marketing), and consider pricing and nonprofit rates for increased facility use.