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• <br />• <br />• <br />STAFF ORIGINATOR: <br />MEETING DATE: <br />TOPIC: <br />VOTE REQUIRED: <br />AGENDA ITEM 6A -i <br />Mary Alice Divine <br />October 12, 2009 <br />Second Reading: Ordinance No. 07 -09 Imposing a Tax <br />Upon Lodging <br />3/5 <br />BACKGROUND <br />The City of Lino Lakes has been asked to participate in a new convention and visitors bureau <br />(CVB) called Minnesota Metro North Tourism. This CVB is for the purpose of marketing and <br />promoting the participating cities, which will include Coon Rapids, Blaine, Anoka, Shoreview, <br />Fridley, Ham Lake, New Brighton, Lino Lakes and Mounds View. <br />The funding for CVBs comes from a 3% lodging tax that is collected from lodging properties in <br />the participating communities. Under Minnesota Statutes 469.190, 95% of the funds collected <br />via this tax are passed on to the CVB for the purpose of marketing and promoting the city or <br />town as a tourist or convention center, and the remaining 5% is retained by the city to cover <br />administrative expenses. <br />Both hotels in Lino Lakes have requested that the city impose the lodging tax and participate in <br />the CVB. <br />The ordinance outlines the requirements for the collection of the tax and the process for <br />administration of the tax. If approved the lodging tax would become effective on January 1, <br />2010. <br />RECOMMENDATION <br />Staff is recommending approval of the second reading of Ordinance No. 07 -09 authorizing the <br />imposition of a lodging tax in Lino Lakes to be effective January 1, 2010, <br />ATTACHMENTS <br />1. Ordinance No. 07 -09 <br />2. Letter of Support from Hampton Inn & Suites <br />3. Letter of Support from Country Inn & Suites <br />