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City Council Item 7C – Opt Out of CVB April 13, 2009 Page 2 of 2 the Twin Cities North Chamber) and four cities (Arden Hills, Blaine, Coon Rapids and Shoreview) have opted out of VMN. These groups are discussing the formation of a new CVB. The potential new CVB would represent cities east of the Mississippi River. VMN would continue to represent the cities west of the Mississippi River (Brooklyn Center, Brooklyn Park and Maple Grove). On March 18, 2009, the VMN Board of Directors voted to allow cities that have not yet opted out of their agreements with VMN to opt out no later than April 30, 2009. The Executive Director of VMN alerted City staff last week that if the Mounds View City Council does not opt out, Brooklyn Center, Brooklyn Park and Maple Grove will probably ask Mounds View to opt out of VMN. Next Steps The National Sports Center and the Metro North Chamber are working on bylaws and creating a budget for the potential new CVB. The City Managers and Administrators of the cities east of the river also are discussing a budget and a potential governance structure. The cities impose the lodging tax; therefore, the City Managers and Administrators agree that the cities should govern the new CVB. Mounds View’s involvement with a CVB is crucial since the City itself has limited funds to spend on tourism marketing and the potential new CVB should be a better fit geographically for Mounds View. In addition, staff invited representatives from the Mounds View Days Inn and AmericInn to the April 13, 2009 City Council meeting to provide input on this matter. Recommendation Staff recommends that the City Council consider approving Resolution 7430 Approving Intent to Exercise the Opt Out Clause of the Contract with Visit Minneapolis North effective December 31, 2009. Respectfully submitted, ____________________________ Heidi Steinmetz Economic Development Specialist Attachments • Memo to VMN Board of Directors Re: the VMN Executive Committee’s Recommendation to Allow Cities Early Opt Out of Agreements (2 pages) • Mounds View City Council Resolution 7430 (1 page)