01/05/2009 Council Packet - Laserfiche WebLink

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• • • WS — Item 1 WORK SESSION STAFF REPORT Work Session Item 1 Date: January 5, 2009 To: City Council From: Mary Alice Divine Re: Participation in a Convention and Visitor's Bureau Background Representatives from the Hampton Inn and Country Inn & Suites contacted staff recently regarding participation in Visit Minneapolis North Convention and Visitor's Bureau (VMN). Visit Minneapolis North is a destination marketing organization that represents 11 cities in the north and west suburbs of Minneapolis and Saint Paul including Anoka, Arden Hills, Blaine, Brooklyn Center, Brooklyn Park, Coon Rapids, Fridley, Ham Lake, Maple Grove, Mounds View and Shoreview. Cities have statutory authority to charge a 3% lodging tax which is used to market lodging and entertainment opportunities in the north metro. The tax is administrated through the participating cities, which receive 5% of the revenue to cover administration costs. In recent weeks there has been discussion among the Metro North Chamber of Commerce, the National Sports Center, the TPC in Blaine, and participating hotels in cities such as Blaine, Shoreview and Coon Rapids that they would be better served opting out of VMN and creating a new visitor's bureau that focused more on cities that are in closer proximity to the National Sports Center. The two Lino Lakes hotels agree that it would benefit them to join this new organization. The cities that are currently members of VMN and want to opt out must do so one year in advance of creating a new bureau. The cities are being asked to pass a resolution of support to ensure there will be strong participation in a new bureau, which would be established in January of 2010. Al Rolek has communicated with other city finance directors who participate in VMN and sees no problems associated with administrating the tax. It is the responsibility of the participating hotels to manage the collection and reporting. 1