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ARDEN HILLS CITY COUNCIL - March 10, 2008 16 The motion carried unanimously (5-0). C. Discussion on the Visit Minneapolis North Convention and Visitors Bureau, the City of Arden Hills and the 3% Lodl!:inl!: Tax. Assistant City Administrator Simon stated that the City had received a letter from one of the partners of the Super 8 Motel requesting the City to opt out of the agreement with Visit Minneapolis North Convention and Visitors Bureau and the 3% lodging tax. There is currently only one hotel/motel in Arden Hills at this time, the Super 8 Motel. The purpose of the 3% lodging tax is to promote and attract visitors to this area. It is brought to the City Council to determine if this is an agreement that the City wishes to continue. To answer any questions Mr. Dave Looby from Visit Minneapolis North and Mr. Vik Bhartia from the Super 8 Motel were present. Councilmember McClnng asked Mr. Bhatia for additional information as to why he felt the City should discontinue the agreement with Visit Minneapolis North. Mr. Vik Bhartia, Owner of the Super 8 Motel, stated that the motel has not seen any material benefit from this arrangement, there has not been any additional marketing or additional visitors. He stated that Visit Minneapolis North was more directed to work with bigger hotels and motels that offer more services. He also stated that he was expecting to see more visitors since the Holiday Inn was closed than he could expect from Visit Minneapolis North. He noted that when the Holiday Inn was open the Super 8 Motel did not have a choice in whether this arrangement was continued. Councilmember Holden stated that when the agreement first went into effect the manager of the Super 8 did state that there was an increase in visitors. Mr. Bhartia stated he felt that this was because it was a probationary type period so Visit Minneapolis North pushed business their way. But after a few months, they did not see any additional benefits. Mayor Harpstead asked Mr. Looby if he had any comments on the benefits that the City gets and how the $65,000 in funds collected was being used. Mr. Dave Looby, 6200 Shingle Creek Blvd., Brooklyn Park, Visit Minneapolis North Convention and Visitors Bureau, stated that the company has worked with Mr. Bhartia when the Super 8 has done ads for the guides distributed by Visit Minneapolis North and they had acted as their design group. Visit Minneapolis North also gives a small percentage of the funds collected back to the City. They also contribute to the City's festivals annually, and advertise the cities in all the publications they do. Mayor Harpstead asked Mr. Looby for clarification on what kind of promotion the City gets.