A Municipal Accommodation Tax (MAT) funding grant program will be established in Sarnia.
The program, which will distribute the required 50 per cent MAT funds to support tourism, was approved by city council Monday.
Economic Development Officer Kelly Provost said it will allow any organization, including Tourism Sarnia-Lambton (TSL), to apply for the funds.
"It is still putting out the required 50 per cent to the community to promote tourism, it's just a different mechanism to do so," she said.
Guests staying at Sarnia’s hotels and motels started paying a four per cent tax on accommodations July 1, 2020.
Terms of the program's financial accountability agreement with TSL are still deadlocked.
Councillor Mike Stark wants more representation at the table.
"We need to have representation of our director of economic development on the executive of TSL," said Stark. "In addition, I believe that all geographic representatives of the City of Sarnia should be appointed, as is our committee system, by the city council, as opposed to TSL making those appointments."
Councillor Brian White thought a one year notice to sever ties with TSL, would provide a "catalyst" to get issues addressed.
Councillor Terry Burrell felt it was disingenuous to not participate with the county in the county-wide program.
"I think that we are getting 50 per cent anyways, to do with what the city may want to do with it and the second 50 per cent that has to go through a tourism organization, I think TSL is as good as any to do that," said Burrell. "They get a lot of money from the county and they are getting MAT tax from other jurisdictions, primarily Point Edward, which actually generates more than the city does."
He didn't want to launch an unnecessary fight with the county.
"I don't think it's going to be helpful to anyone. I think it could actually hurt us because they are generating more money in TSL than just what the city generates."
Both councillors, White and Burrell, voted against Monday's decision.