Visit Cook County outlines 1% lodging-tax budget, grant allocations and COVID-era shifts

Visit Cook County presented its annual 1% lodging-tax budget to the Cook County Committee of the Whole on a work-session agenda and described how the funding is allocated to support local events, arts and trail programming.

Linda, a Visit Cook County representative, told commissioners the grants program funds community events and programming across Cook County and cited a $90,000 annual allocation that supports local musicians. "This money that we allocate through a grant program for events and programming throughout Cook County is very, very much appreciated by the community," Linda said.

The presentation traced the program's history: the 1% lodging-tax grant fund was established in 2008 and later renewed for an extended period, and allocations are separated among three tourism-association areas shown in the materials. Linda explained the packet breakdown is by association area and said totals on pages 10–11 reflect the dollar amounts allocated per association by the percentage of lodging tax collected in each geographic area.

Commissioner Campbell asked whether the distribution percentages are defined by statute or set by Visit Cook County. Linda said association boundaries and distribution inputs were established when the events bureau formed and that allocation decisions are made by the association boards. A committee member added that the association boundaries were established by resolution and do not cover the entire county.

Committee members pressed for procedural transparency: multiple participants asked to see the grant application and asked when grantees receive payments. Linda said the Visit Cook County team will circulate the application and noted the office balances payments to grantees based on seasonal revenue patterns; she said June is typically the lowest month for lodging-tax collections.

The presentation also addressed partner arrangements and revenue fluctuations. Linda described how the Lutsen-area partner (the Lutsen Mountains Corporation, as presented) collects ticket sales and has a payment arrangement with Visit Cook County; she said Grand Portage participates as a branding partner even though it does not collect lodging tax as a sovereign nation. Linda said those partner contributions and pandemic-era revenue swings have led to variable receipts in recent years.

Commissioner Grama asked about the pending sale of the county golf course and the roughly $160,000 that has been used for bond payments. Linda said the county will not recognize sale proceeds until the sale closes, which she said is anticipated at the end of August; she explained the budget was prepared conservatively and staff did not assume the sale revenue until funds are in hand.

A participant clarified that a separate local arrangement diverts up to 2% of a local 3% lodging tax in the Lutsen area and that this separate statutory diversion is not taken from the 1% events/grants fund. Linda and others reiterated the distinction between those different local tax provisions.

Committee members also discussed hiring or using community grant writers and creating staff positions that could secure additional non-levy revenue; speakers cited examples where new positions helped generate funding that paid for the positions themselves.

The committee asked Visit Cook County to provide a tax-organizational chart and a more detailed breakdown of where other related taxes and fees flow, and Linda agreed to circulate that material and the grant application.

The work session ended with thanks to Visit Cook County staff for their presentation and a note that staff will follow up with the requested documents.