BROOKVILLE: Jefferson County has filed a civil lawsuit against the Northwest Pennsylvania Great Outdoors Visitors Bureau, Inc. — commonly known as PAGO — alleging breach of agreement and seeking recovery of $156,920.37 that county officials claim was withheld during the period PAGO served as the county’s designated tourist promotion agency.

The complaint, filed on behalf of the county, centers on the administration and distribution of hotel tax revenues intended to promote tourism within Jefferson County.

Background: Hotel Tax Ordinance And Tourism Agreement

According to court filings, Jefferson County enacted Ordinance 2004-02, establishing a hotel occupancy tax to generate funding dedicated to tourism promotion efforts within the county.

Following adoption of the ordinance, Jefferson County designated PAGO as its official tourist promotion agency (TPA). At the time, PAGO was also serving in a similar role for multiple surrounding counties in northwest Pennsylvania.

Under the arrangement outlined in the lawsuit:

  • Jefferson County collected hotel tax revenue locally.
  • The county retained an administrative fee.
  • The remaining funds were forwarded to PAGO.
  • PAGO was responsible for using those funds to market and promote tourism opportunities specifically within Jefferson County.

County officials allege the agreement required that collected funds be directed toward advancing tourism-related initiatives benefiting Jefferson County.

Dispute Over Grant Funds

A key point in the lawsuit involves a grant program administered by PAGO during its tenure as Jefferson County’s TPA.

According to the complaint, PAGO offered a structure in which a portion of the hotel tax revenue provided by Jefferson County would be reserved exclusively for Jefferson County-based projects through a competitive grant program.

Jefferson County alleges that:

  • The county agreed to participate in the grant structure.
  • The agreement entitled Jefferson County to have 25 percent of the funds it provided set aside for grants benefiting Jefferson County entities.
  • PAGO also retained portions of the revenue to cover operational and administrative expenses.

The lawsuit contends that $156,920.37 in funds were not properly allocated or returned as required under the agreement.

Alleged Breach Of Agreement

In filing suit, Jefferson County claims PAGO failed to comply with the terms of the agreement governing how hotel tax funds were to be distributed and reserved.

The county is seeking recovery of the disputed amount and resolution of the alleged contractual breach.

PAGO has not yet publicly responded to the allegations at the time of this writing. As with all civil litigation, the claims outlined in the complaint represent Jefferson County’s position, and the matter will proceed through the court system unless resolved by settlement.

What Happens Next

The case will move forward through the appropriate judicial process, where both parties will have the opportunity to present documentation, financial records, and contractual interpretations related to the hotel tax agreement and grant allocations.

The outcome could clarify financial responsibilities and procedures tied to tourism promotion funding within Jefferson County.

DuBoisLIVE will continue to monitor developments in this case.