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Washington County Chamber of Commerce calls for $460K payout after contract termination

WASHINGTON, Pa. — The battle between Washington County commissioners and the Chamber of Commerce escalated Thursday, with the Chamber now claiming the county violated its economic development contract and owes nearly half a million dollars.

Last month, commissioners voted 2–1 to terminate the county’s long-standing contract with the Chamber. In a letter sent on Thursday, Chamber President Jeff Kotula said the county was contractually required to give one year’s notice but only gave 51 days, a move he says constitutes a breach and triggers a payout of roughly $460,000.

Kotula told Channel 11 the Chamber has consistently delivered a strong return on the county’s investment.

“Last year the county contributed $140,000 and we matched that,” Kotula said. “The Chamber brought in $35.5 million in new investments and jobs. There’s no way the county could replicate that for the same cost.”

Commissioner Nick Sherman disputes that, saying the Chamber has not provided adequate transparency.

“If you’re going to claim you brought in $30 million, specifically, how? They’ve never been able to answer those questions,” Sherman said. He added that he hasn’t received a single economic development email or meeting from the Chamber in more than a year. “I owe it to the taxpayer to demand accountability.”

Kotula pushed back, saying commissioners serve on the Chamber’s board, approve its budget each year, and already have full access to financial information.

“It’s a misleading argument,” he said. “They know where the money goes. They simply wanted to cancel the contract, and now they’re looking for a way out without taxpayers paying half a million dollars.”

Commissioner Larry Maggi supports the chamber, saying, “With my colleagues abruptly cancelling the economic development contract with the chamber without the agreed-upon one year’s notice, county taxpayers are now faced with the potential of paying $460,000 in damages for the county violating the contract we agreed upon. All this could have been prevented by communication and an interest in working together with the business community as we have for 26 years.”

The Chamber says it hopes the county honors the contract, but is prepared to explore litigation if necessary.

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