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Mounds View City Council June 11, 2001 <br />Regular Meeting Page 12 <br /> <br />three (3%) local lodging tax to allow for participation in the Minneapolis North Convention and <br />Visitors Bureau. <br /> <br />Council Member Stigney asked if three percent (3%) was the maximum allowed by state. <br /> <br />Economic Development Coordinator Parrish indicated that three percent (3%) was the maximum <br />allowed by state. <br /> <br />Council Member Stigney asked what the actual projected revenue would be from the rooms that <br />will be available at the Mermaid and Days Inn. <br /> <br />Economic Development Coordinator Parrish indicated he did not have good figures but <br />speculated approximately $30,000 for every $1 million in revenue. <br /> <br />Council Member Stigney asked how much grant money would be put into the project. <br /> <br />Economic Development Coordinator Parrish indicated that no grant money would be used but <br />noted that the Ordinance would establish a tax to be levied by the City. <br /> <br />Council Member Stigney indicated he would prefer to know actual dollar amounts rather than <br />percentages. <br /> <br />Economic Development Coordinator Parrish indicated that the Ordinance would establish the <br />three percent (3%) tax and noted the other issues would be resolved with the use agreement. <br /> <br />Council Member Stigney inquired as to how much the business contributes. <br /> <br />Economic Development Coordinator Parrish indicated the business does not contribute anything <br />but acts as a conduit for paying the tax. He then noted that a lodging tax is fairly common. <br /> <br />Council Member Stigney asked if the City could implement its own local lodging tax and put the <br />funds in the general fund. <br /> <br />Economic Development Coordinator Parrish indicated that the law says that 95% of the funds <br />need to be used for Convention and Visitor’s Bureau or local marketing efforts. He then noted <br />that Staff could do it in house but noted the advantage of joining the Convention and Visitor’s <br />Bureau would be their expertise in marketing the area to tourists. <br /> <br />Council Member Marty indicated that the lodging tax would not generate much revenue for the <br />City but indicated it would be a good tool for marketing the City to tourists which, in turn, <br />benefits the community. <br /> <br />Council Member Thomas indicated that the pool dollars are based on revenue and noted that if <br />people are not using the lodging then the City is not paying anything. <br />