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<br />Page 2 of2 <br /> <br />. Partnership with local chamber of commerce <br />. Overall sales and marketing activities which include: shows, direct mail, print ads, sales . <br />calls, telemarketing, and WEB site marketing <br />. Partnership with ten other cities in the North Metro area <br />. Public relations with local and statewide media <br />. Affiliation with dozens of industry associations and other Bureaus to promote the Twin <br />Cities <br /> <br />The MMNCVB is funded by a 3% local lodging tax. This is levied on hotels/motels by a <br />municipality on gross room receipts. State Statute requires that 95% of the funds be utilized "to <br />fund a local convention or tourism bureau for the purpose of marketing and promoting the city or <br />town as a tourist or convention center." Five percent of the funds are retained by the <br />municipality for administrative purposes. Additionally, $2000 is made available on an annual <br />basis to a local community festival, and to the local chamber of commerce. <br /> <br />Mr. Musil has been initiating conversations with the two hotels in Arden Hills to assess their <br />interested in the program. He will be able to provide a verbal update on the status of those <br />discussions. <br /> <br />It is my understari4ing that the City staff time involved in processing this would be minimal. I <br />have asked Finance Director Siddiqui to investigate this further by speaking to Finance staff in <br />other cities. <br /> <br />I've included some background materials for your information: <br /> <br />. <br /> <br />. Asset Appraisal prepared by MMNCVB <br />. Relevant St"ate Statute <br />. Sample Or~inance establishing a local lodging tax (from Shoreview) <br />. Sample CVB Agreement (from Shoreview) <br /> <br />REQUESTED ACTION <br /> <br />Receivc the materials and information presented and provide direction to staff as to whether you <br />wish to continue' consideration of a local lodging tax and participation in the MMNCVB. <br />Options include: <br /> <br />. No further consideration at this time <br />. Keep working with the MMNCVB and hotel owners and bring a proposal to a future <br />Council meeting <br />. Keep working with the MMNCVB and hotel owners and include a proposal as part of the <br />2005 budget process <br />. Hold as a topic for the Economic Development Commission to consider <br /> <br />Attachments <br /> <br />\\EarthlAdminICity Administralorl,Memo\2004\6-21-04 Work Session eVB.doc <br /> <br />. <br />