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Council renews Chamber of Commerce contract to run tourism bureau, funded by lodging tax
Summary
Council approved an update to the contract with the Chamber of Commerce to administer the city's tourism and visitors bureau using lodging tax revenues; the contract runs through 2028 at $20,000 for 2026 with 3% increases thereafter and requires regular budget reporting.
The St. Peter City Council voted Oct. 13 to enter an updated contract with the Chamber of Commerce to administer the city's Tourism and Visitors Bureau using lodging (hotel‑motel) tax revenues.
Staff explained the arrangement has existed for more than 30 years and that lodging tax revenue is the funding source for the contract; state statute restricts how lodging tax dollars may be spent, staff said, and they cannot generally be used for capital projects. The contract included a requirement that the Chamber provide a budget and quarterly reports to the city (staff said that practice is consistent with past arrangements and that those materials are available online).
Under the contract terms in the packet, staff said the contract would run through the end of 2028, covering the remainder of 2025 and providing $20,000 for 2026 with 3% increases in 2027 and 2028. Council members asked how reporting would be provided; staff said the tourism bureau and its materials are posted and that staff can tag council members to access them.
After brief discussion and encouragement for event organizers to apply for tourism grants, the council approved the resolution updating the contract by roll call.
