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<br />Item No: 7B <br />Meeting Date: August 10, 2009 <br />Type of Business: Council Business <br />Administrator Review : ____ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Heidi Steinmetz, Economic Development Specialist <br />Item Title/Subject: Resolution 7483, Approving the Articles of Incorporation and <br />By-Laws authorizing the establishment of and Mounds View’s <br />participation in a new regional Convention and Visitors Bureau. <br />Background <br />Earlier this year, the City Council decided to leave the local Convention and Visitor’s <br />Bureau (CVB), Visit Minneapolis North (VMN). Six other cities also chose to leave VMN. <br />VMN will no longer represent the seven cities listed below, effective December 31, 2009. <br />VMN will continue to represent Maple Grove, Brooklyn Park and Brooklyn Center beyond <br />2009. <br />1. Fridley <br />2. Blaine <br />3. Coon Rapids <br />4. Anoka <br />5. Shoreview <br />6. Mounds View <br />7. Ham Lake <br /> <br />Discussion <br />At the August 3rd Work Session, the City Council reviewed and discussed the draft Articles <br />of Incorporation and By-Laws for a new CVB. This new CVB would represent the above <br />listed seven cities and potentially the City of New Brighton once their new hotel is <br />completed. <br /> <br />The City of Coon Rapids Attorney’s office drafted the proposed Articles of Incorporation <br />and By-laws with input from the seven cities, New Brighton and the respective lodging <br />properties. Both documents have been updated since the Council reviewed them on <br />August 3rd. The latest versions of these documents are attached for the Council’s review. <br /> <br />The City Councils for each of the seven cities are currently (or soon will be) considering <br />resolutions to approve the draft Articles of Incorporation and By-Laws. Once all of the <br />cities have passed these resolutions, the City Councils from each City will appoint the first <br />Board of Directors for the new CVB. The purpose of each City Council approving draft <br />Articles of Incorporation and By-Laws is to establish the CVB. The new Board of Directors <br />will finalize the By-Laws. <br /> <br />The new CVB will be funded the same way as VMN is now funded. VMN is funded by a <br />3% lodging tax. Per State Statute, this tax is collected from the respective lodging <br />properties and 95% of those funds are passed onto the CVB. The remaining five percent <br />is used by each City to cover administrative expenses.