Duluth Approves $300,000 of Tourism Tax Budget for Spirit Mountain

Funding Approved for Spirit Mountain

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The Duluth City Council approved $300,000 for Spirit Mountain at Monday night’s meeting. 

Unseasonable weather is being blamed for financial trouble at the tourist destination, and Monday night, Executive Director Brandy Ream turned to the city of Duluth for help.

Ream’s proposal included taking $300,000 of the tourism tax budget and allocating it to Spirit Mountain, arguing that – just like the aquarium and zoo – Spirit Mountain is a tourist attraction in Duluth.

The funding was approved by a vote of 8-1.

Councilor Julsrud opposed.

At last Thursday’s agenda session, there was a lot of discussion between Ream and city councilors, some whom recognize that Spirit Mountain draws thousands of tourists each year – both locally and regionally – and say it’s appropriate that tourism tax dollars would go towards the ski hill.

Duluth Chief Administrative Officer Dave Montgomery says with any seasonal business, there are going to be up and down years, and right now they are only in year one of a multi–year recovery effort to help Spirit Mountain gain a financial cushion and ride out those bad months.

“What we’re trying to do is get Spirit Mountain into a place financially where they’ve got a solid foundation under them,” Montgomery explained. “They have a cost structure, which includes labor structure and organizational structure, that can be flexible.”

This past year, management staff at Spirit Mountain took pay cuts in response to the slow season.

Also, right now the ski hill still owes the city $1.2 million in loans from the past two years.

Brandi Ream will be holding a press conference Tuesday morning to address the outcome of Monday’s decision.