The Chehalis City Council voted 4-1, with Chehalis Mayor Tony Ketchum and Councilor John Six abstaining, to allocate Lodging Tax Advisory Committee (LTAC) funds at its regular meeting on Monday, March 25.
The money was left over from the last round of LTAC funding recommendations approved in October of 2023.
For 2024, Chehalis started off with a total of $570,744 in LTAC funds.
A total of $71,819 went to dedicated debt service for Recreation Park; $50,000 was withheld for the target ending account reserve, and a total of $302,900 in LTAC funds were awarded last October. This left the city with $146,719 that could still be awarded.
City staff opened up LTAC funding applications in February and received three requests from the Lewis County Historical Museum (LCHM), the Centralia-Chehalis Chamber of Commerce and the Washington Association of Culture and Arts (WACA).
The LCHM requested $25,000, the Chamber requested $15,000 and WACA requested $60,000. Following a meeting on March 8, the LTAC recommended the LCHM receive its full request, with some stipulations. It recommended, the Chamber receive $5,000, and it outright denied WACA’s request due to concerns about a potential conflict of interest, according to the meeting minutes.
The stipulations with the $25,000 the LCHM was awarded included using at least $20,000 of the LTAC funds for digital marketing and revamping the museum’s website, with the remaining funds going toward planned events like the upcoming Flying Saucer Party this fall.
While the Chamber requested $15,000, mainly to help keep its visitor center open six days a week, LTAC members believed that since the information in the visitor center is easily accessible online, it wasn’t a proper use of LTAC funds.
Committee members did recommend awarding the Chamber $5,000 to help fund events that promote tourism, like the 3-on-3 Streetball Festival the Chamber organized in downtown Chehalis last August.
As for denying WACA’s request, the committee was worried about a potential conflict of interest stemming from two of WACA’s board members also owning McFiler’s Chehalis Theater, which was set to host 12 shows WACA intended on using LTAC funds to pay performers and musicians.
Additionally, WACA did not submit IRS forms and financial statements required with LTAC funding applications, but Chehalis City Manager Jill Anderson explained during Monday’s meeting WACA, which was formed in fall 2023, hasn’t existed long enough to produce those documents.
Councilor Kevin Carns, who chairs the LTAC, added application requirement amendments will be discussed at a future council meeting, and another application window opened to allocate the remaining 2024 LTAC funds.
Along with the LTAC funding talk, the council also discussed potential conflict of interest concerns of its own raised during the initial round or recommendations in 2023. Six abstained from Monday’s vote as he is currently WACA’s board vice president, and Ketchum serves as the treasurer for the LCHM board.
Chehalis City Attorney Kevin Nelson explained state law required any councilor holding any board position with an organization requesting LTAC funds to recuse themselves from voting on funding recommendations.
“First of all, you need to stop volunteering so much,” Nelson said to the council jokingly.
Anderson said the council will revisit council board appointments and LTAC requirements for possible updates at a future meeting.
Current LTAC members include Carns, Experience Chehalis Executive Director Annalee Tobey, Veterans Memorial Museum Executive Director Chip Duncan, Katie Blurton of Best Western Plus and Lilly Wall of the Stan Hedwall RV Park.
