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Council directs city attorney to draft revised Visit Fergus Falls contract with reporting, marketing commitments
Summary
After months of negotiation, Visit Fergus Falls and staff reached broad agreement on a two-year contract that raises the city administrative fee, requires annual marketing plans and quarterly updates, funds an event incubator, and commits to interstate signage to help businesses during Exit 54 construction; council instructed the city attorney to draft the updated agreement.
Fergus Falls — The Committee of the Whole gave staff direction to incorporate negotiated changes into the administrative contract that governs how Visit Fergus Falls administers lodging‑tax funds and promotes the city.
Thomas Bales, a Visit Fergus Falls board member, said the parties were "95%" aligned after months of talks. He described key items the board and staff had agreed to: a two‑year contract term, increasing the city administrative fee from 3% to 5% to cover administrative costs, an annual marketing plan presented to the council, quarterly updates, an event incubator program to seed new local events, and a goal to increase direct marketing spend to roughly 45% of gross revenues. The board also proposed funding temporary interstate signage to help direct travelers during the upcoming Exit 54 closure.
Council members asked for timing details and stronger clarity on where marketing money should go; Laurel asked that the annual marketing plan be presented in the fourth quarter so council and staff can act before peak tourism season. Staff and the Visit Fergus Falls board said the organization can and will share quarterly metrics and that an increased marketing commitment was feasible given an accumulated fund balance.
The council approved a motion to ask the city attorney to draft the revised contract incorporating the outlined bullet points. One councilmember abstained from the vote because of a personal business interest in interstate billboards; the motion otherwise carried.
Why it matters: lodging‑tax funding and the Visit Fergus Falls contract affect how the city markets itself and supports hotels, restaurants and event venues; the contract revisions are intended to increase transparency, direct more revenue to marketing and to help businesses cope with traffic disruption from the exit closure. Next steps: the city attorney will produce a draft contract for council consideration and possible placement on a future consent or regular meeting agenda.
