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Open application begins for Chelan County lodging tax revenues


Wild flowers overlooking Leavenworth. Photo courtesy: VisitChelanCounty.com.


Nearly a quarter of a million dollars is expected to be made available to Chelan County nonprofit organizations and businesses looking to increase tourism and other tourism-related activity in Chelan County. Application for a portion of the tourism grants can be made now through October 15 through the county website.


As much as $240,000 is expected to be distributed for use between 2025 and 2028 from lodging tax revenues, a fee predominantly placed on hotel-motel bills and paid by visitors to the area.


Chelan County Commissioner Tiffany Gering is chair of the county Lodging Tax Advisory Committee which helps the county commissioners decide where best to spend the revenues for potential tourism-related economic growth in the future.


Chelan County lodging tax revenues have steadily decreased, according to Troy Campbell of the Leavenworth Chamber of Commerce.


"First quarter was down just a slight amount, but the second quarter of 2024 continued to drop by amount 15%," said Campbell. "So with that continued decline and with no changes on the horizon translates to the committee that we need to reinvest and refocus this fund for its intended uses, and those that have a proven track record and performance and reserve the framework for those provided the best ROI (return on investment) for the fund."


Campbell reported to the county commissioners on Monday that since 2021, 76 lodging tax producing businesses have close, citing new Chelan County regulations governing short term rentals.


The lodging tax advisory committee made suggestions on a suggested framework of funding for the next four years and different from previous years, recommended that the county not receive a fixed percentage of grant funds, but instead apply for a grant like all other tourism-related organizations and businesses.


"I will say that I'm actually disappointed that the consideration was not given to Chelan County in putting Chelan County, especially as a governmental entity that has facilities, capital infrastructure that relates to tourism," county commissioner Kevin Overbay said with concern about the committee's recommendation. "I know that Leavenworth takes funding to take care of their facilities that relates to tourism. The City of Chelan basically takes lodging tax funds to take care of their capital facilities and I don't understand why the lodging tax advisory committee would think anything differently of Chelan county."


Commissioners Tiffany Gering and Shon Smith favored the advisory committee notion that the county can still apply for available grant funding through the application process..


Ultimately, its the commissioners that have the authority to decide who gets what.


Lodging tax committee member Eric Campbell noted that the advisory group does its best to recommend where best to spend the tax revenue, "showcasing the amazing assets of Chelan County while helping build new infrastructure for the future. From outdoor recreation to museums to marquee events, this fund has helped many nonprofits, organizations and communities."


"We would also like to note, that the top recipient, when totaled is Chelan County, which has received nearly a quarter of the $3.2 million awarded since 2021," Campbell added.


Applications for the available grant monies, to be spent from 2025 through 2028, are due by Oct. 15. The county says successful grants should “increase tourism and convention activity in Chelan County and boost overnight stays and/or increase retail sales primarily in unincorporated Chelan County."


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