Redmond Chamber, City of Redmond Spar Over Tourism Tax Dollars

The Redmond Chamber of Commerce, which operates Visit Redmond, is pushing for a new collaborative partnership with the City of Redmond to continue offering destination services to both visitors and residents.

In June, City of Redmond officials decided to redirect tourism tax dollars to a Portland-based agency to develop a more robust marketing effort. This was carried out through a City of Redmond Request for Proposals, looking for additional marketing services.

According to the Chamber, which received about $350,000 in tourism tax dollars in the 23/24 fiscal year when under a contract with the City, this change in allocation has created a gap in the services Redmond can provide to visitors.

Among a number of specific holiday events, the Chamber asks that the City help support services like Redmond’s Free Summer Concert Series, Music On The Green, the Official Redmond Visitor Guide, Welcome Center services and more.

“These events and services are the heartbeat of our community, from our signature summer concerts to our beloved holiday traditions,” said Executive Director Eric Sande in a press release. “Partnering with the City of Redmond will ensure that we can continue to serve both our visitors and residents.”

On Oct. 24, the Chamber sent the Council a proposal, requesting the City award the Chamber $150,000 per year from the general fund, or any available Transient Room Tax reserves, to ensure the continuation of services. According to the proposal, continued funding from the City would prevent the Chamber from having to cut services and events.

On Oct. 28, the City of Redmond sent a response to the Chamber, recommending a joint meeting in early 2025. The Council noted that because of limitations and lack of availability of lodging tax dollars, the resources the Chamber is requesting would come from the General Fund, the same dollars used to fund public safety, parks and other essential services.

The response also stated that it met with the Chamber many times over the years to discuss goals.

“Since we just learned of this most recent request, we look forward to understanding what their actual need is, since the City already provides, and will continue to provide support for many community traditions,” read the response.

The Council’s letter said the City will continue allocating $5,000 of in-kind street closures and traffic management for parades, $20,000 in flower baskets and banners and $7,000 for in-kind storage, setup and support for the holiday tree and market.

The Council’s response to the Chamber also detailed the events leading up to the new contract with the Portland-based marketing firm, stating that the Chamber did not submit a proposal.

In a letter to the Redmond City Council on April 22, the Chamber said that after careful consideration, they decided not to submit an application for the Destination Marketing and Management Services RFP.

“The Current RFP does not align with our beliefs in our industry standards. We have decades of experience in destination management and our goal is to continue to expand and grow,” read a statement in the letter from Jake Waardenburg, president of the Redmond Chamber Board of Directors.

In the same letter, the Chamber requested the Council’s support through financial contributions – $100,000 – from any dedicated TRT funds toward the continued operation of its local Visitors Center.

“With continued financial support, we can ensure the Visitor Center remains a cornerstone of our community’s prosperity and appeal,” read a statement from Waardenburg from April 22.

The Chamber’s most recent press release, and requests to the City on Oct. 28, suggested that funds could also help support several seasonal events.

“It’s a fine line. You can’t fund all events with the tourism dollars, but you can have events that definitely increase the visitor experience, or might be a draw for them to come here,” Sande told the Source Weekly.

A financial audit from 2023, conducted by the City of Redmond, concluded that the Chamber misallocated City room tax resources into ineligible activities.

“Among the reasons for opening a TRT contract, was the results of a 2023 financial audit of the Chamber. The audit raised concerns about the Chamber’s misappropriation of City lodging tax dollars,” read a statement from the City of Redmond.

The City sent a notice to terminate its contract with the Chamber on June 14.

According to Sande, the City has approved the Chamber’s budget every year, and said he’d never heard about the misappropriation of funds.

“The previous councils, the previous mayors have always agreed that what we’re doing was appropriate. So, it’s just a new city council and a new legal team that has a different perspective of what tourism dollars are meant to be spent on,” said Sande, adding that they have approval from Travel Oregon. “We follow the Oregon Revised Statutes Guidelines, and we follow industry standards, so we’ve always spent appropriately.”

Disclosure: Source Weekly Publisher Aaron Switzer sits on the Redmond Tourism and Lodging Advisory Committee.

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