May 13, 2014 3:52 pm

Penticton spends more than $40,000 in legal costs

PENTICTON — A dispute over marketing money that may have been mishandled is nearing a resolution.

The City of Penticton sued the Penticton Hospitality Association (PHA) alleging breach of contract.

Global News has learned the City has spent $41,769.75 in legal fees since the court action was launched in October.

In 2012, about $400,000 was collected from a special hotel tax which is supposed to be used to market Penticton but the PHA only used a quarter of that.

In court documents, the City alleges “the PHA failed to conduct any meaningful hotel room tax (HRT) marketing in 2012 and has breached all of the forgoing provisions of the HRT Agreement.”

A B.C. Supreme Court judge will provide a verdict by the end of next week.

The City of Penticton is refusing comment saying the matter is still before the courts.

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