HomeMy WebLinkAbout[06b] Hospitality Tax Update - Creation of CVB
EDA Agenda Item 6b
MEETING DATE: November 22, 2017
AGENDA ITEM: Convention Visitor Bureau (CVB)
SUBMITTED BY: Administration
BOARD/COMMISSION/COMMITTEE/COUNCIL RECOMMENDATION: In 2016 the
EDA recommended, and the City Council approved the implementation of Ordinance 610 allowing for
the collection of a lodging tax.
PREVIOUS EDA ACTION: Recommended implementation of a lodging tax
BACKGROUND INFORMATION: The City has been collecting a lodging tax for over one year and
the current fund balance in the lodging tax is $ 18,821. These funds can only be use for promoting the
City and increasing tourism. When the Ordinance was established, the authority was given to the EDA to
manage the funds. Previously the EDA has heard from the St. Cloud CVB and what services they offer.
Since that time the City of Sartell has opted to create their own CVB. Included with the meeting material
is the resolution adopted by Sartell enabling their CVB. It can be seen from the material that the City
Council is the oversight body, which is different than what St. Joseph adopted. Staff has discussed some
potential CVB members which can be discussed at the EDA meeting.
Also included with the meeting material is the contract that has been proposed to the City of Waite Park
for partnership with the St. Cloud CVB. It appears they may create their own as well.
BUDGET/FISCAL IMPACT:
ATTACHMENTS: Draft Enabling Resolution
Sartell Enabling Resolution
Draft Waite Park Agreement
REQUESTED BOARD ACTION: Provide Direction
Resolution No. 2017-001
Resolution Establishing Convention and Visitor’s Bureau Advisory Board
and Appointing Initial Members and Terms
WHEREAS, the laws of Minnesota, Chapter 469.190 authorized the City to impose a tax on
lodging (referred to as the “Tax”); and
WHEREAS, on May 2, 2016, the City has established a mechanism for imposition and collection
of the Tax as authorized by stated law by adopting Ordinance 610, Lodging Tax; and
WHEREAS, the purpose of the collection of the Tax is to establish a source of funds whereby
95% of the gross proceeds are used for the purpose of marketing and promoting the City as a tourist and
convention center; and
WHEREAS, the purpose of the St. Joseph Economic Development Authority (herein after
referred to the “Board”) is to encourage, attract, promote and develop economically sound industry and
commerce within the City of St. Joseph; and
WHEREAS, Ordinance 610 section 11 identifies the that the Distribution of all revenues
collected pursuant to said Ordinance will be in accordance with the percentages established in Section
610.04 shall be under budget approved annually by the St. Joseph Economic Development Authority and
will be used for the purpose of the advancement of the City of St. Joseph as a tourist and convention
center. The City may retain a sum not to exceed the actual amount of its costs incurred in the collection
and administration of this tax; and
WHEREAS, the By-laws of the St. Joseph Economic Development Authority provides the
authority to create advisory committees to assist in the transaction of business. Committee Members may
be members of the Board of Directors, members of the Council, or other interested individuals. The Board
of Directors shall establish each advisory committee and appoint its initial members. In the event a
vacancy occurs during an advisory committee member's term, the President shall have the power to fill
such vacancy for the unexpired portion of any term.
Every advisory committee member's term shall expire at the close of the year next following the date of
appointment or as soon thereafter as a successor has been appointed. The Chair of each committee shall
be appointed by the President of the Authority. The studies, findings, and recommendations of all
advisory committees shall be reported to the Board of Directors for consideration and action except
otherwise ordered by the Board of Directors. Advisory committees may adopt such rules for the conduct
of business as are appropriate and consistent with these By-Laws, the Act, the Resolution, or other state
law. Minutes of the advisory committee meetings shall be kept and made a part of the official records of
the Authority. A quorum shall consist of a majority of the incumbent advisory committee members.
NOW, THEREFORE, BE IT RESOLVED BY THE ST. JOSEPH EDA OF ST. JOSEPH,
MINNESOTA, AS FOLLOWS:
1) ESTABLISHMENT: The St. Joseph EDA hereby recommends the St. Joseph City Council
authorizes the establishment of the St. Joseph Convention & Visitor’s Bureau (referred to as
“CVB”), which by St. Joseph Ordinance 610 is managed by the St. Joseph Economic
Development Authority. The purpose of the CVB is to make recommendations to the St.
Joseph Economic Development Authority on the expenditures of Tax funds received in
accordance with MN Statute 469.190.
2) MEMBERSHIP: The CVB shall consist of _____ members representing the St. Joseph
Business owners who have a direct interest in promoting the City as a tourist and convention
center. As each member’s term expires his/her successor shall be appointed for a term of
three (3) years. Each member shall serve not more than three (3) consecutive full three (3)
year terms. Vacancies during the term shall be filled by the Board President/Chair for the
unexpired portion of the term.
3) INITIAL BOARD AND TERMS: The initial CVB shall consist of the following members
with the following terms:
Name Term
1.
2.
3.
4.
5.
6.
7.
8.
9.
4) MEETINGS: The CVB shall select from its members a chairperson and a vice chairperson.
The CVB shall hold meetings as necessitated and shall adopt rules of order and procedure for
the transaction of business, and its findings, which record shall be public record.
5) GENERAL DUTIES: The CVB will offer recommendations to the Board on the
expenditures of the Tax funds for the purpose of marketing and promoting the City as a
tourist and convention center in accordance with MN Statues.
Adopted by the St. Joseph EDA this day of , 2017.
ATTEST Dale Wick, Chair
Judy Weyrens, EDA Director/Administrator
RESOLUTION NO. 92-2015
RESOLUTIC)N ESTABLISHING CONVENTION & VISITOR'S
BUREAU ADVISORY BOARD AND APPOINTING INITIAL
MEMBERS AND TERMS
WHEREAS, the laws of Minnesota, Chapter 469.190 authorized the City to impose a tax on
lodging{referred to as the "Tax"); and
WHEREAS, the City has established a rnechanism far imposition and collection of the Taac
as authorized by state law; and
WHEREAS,the purpose of the collection of the Tax is to establish a source of funds
whereby 95% of the gross proceeds are used for the purpose of marketing and promoting the City as a
tourist and convention center; and
NOW, THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF SARTELL,
MINNESOTA,AS Ft�LLOWS:
1) ESTABLISHMENT: The City hereby establishes a Convention&Visitor's
Bureau Advisory Board(refened to as the"Board") for the purposes of making
recommendations to the City Council on the expenditure of Tax funds received in
accordance with Minnesota Statutes.
2) MEMBERSHIP; TERM: The Board shall consist of seven{?)members
representing the Sartell Chamber of Commerce, Sartell hospitality businesses,
Sartell medical businesses, Sartell recreational associations, andJor other entities
with a direct interest in promoting the City as a tourist and convention center. As
each member's ternl expires, his/her successor shall be appointed for a term of
three (3) years. Each member shall serve not more than three(3) cansecutive full
three(3)year terms. Vacancies during the term shall be filled by the Council for
the unexpired portion of the term.
3) INITIAL BOARD & TERMS: The initial Board shall consist of the following
members with the following terms:
Name Term
Sonja Babich 1-1-16 to 12-31-16
Bill Worzala 1-1-16 to 12-31-16
Jason Mathiasen 1-1-16 to 12-31-17
Scott Widor 1-1-16 to 12-31-17
Brandon Testa 1-1-16 to 12-31-17
Jon Erickson 1-1-16 to 12-31-18
Jason Peterson 1-1-16 to 12-31-18
4) MEETINGS: The Board shall select frorn its members a chairperson and a vice
chair. The Board shall hold ineetings as necessitated and shall adopt rules of
order and procedure for the transaction of business, and its findings, which record
shall be public record.
5} GENERAL DUTIES: The Board will offer recommendations to the Council on
the expenditure of Tax funds for the purpose of marketing and promoting the City
as a tourist and convention center in accordance with Minnesota Statutes.
ADOPTED BY THE SARTELL CITY COUNCIL THIS 23�d DAY OF NOVEMBER,
2015.
�:� --���,�.�
� OR
ATTEST:
�� �ITY"C'GZa�v�t
CITY AD INISTRATOR �
SEAL
— ADVERTISING AND PUBLICITY AGREEMENT
This agreement made this day of , 2015 between the City of
Waite Park, Minnesota, a municipal corporation, in this agreement referred to as the"City" and
the St. Cloud Area Chamber of Commerce, in this agreement referred to as the"Chamber",
conducting and operating as a division of the Chamber,the Convention and Visitors Bureau, in
this agreement referred to as the"Bureau".
WHEREAS, the laws of Minnesota, 1983, Chapter 477A, authorized the City to impose a
tax on a gross receipt of the furnishing of certain lodging; and
WHEREAS,the purpose of the collection of tax is to establish a source of funds whereby
95%is to be expended for the advertising and promoting of the City as a tourist and convention
center; and
WHEREAS,the Chamber has established the Bureau and has developed a staff, facility
and experience to carry out those objectives.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Term. The term of this agreement shall commence upon approval and continue until the
council takes action to void this contract.
2. Service Rendered by Bureau. The Bureau shall furnish to the City the following
services:
a. Full-time,professionally trained staff, with organization management, strong
knowledge of the area, and sale skills to develop the City's hospitality industry.
b. Full-time sale representatives to travel state-wide to conduct sales calls to attract
more meetings, group tour, leisure travel and special events to the Waite Park
area..
c. Support/clerical staff to provide informational services in answering inquiries
about the"City"via mail,telephone, online, social media, and personal contacts.
d. Access to the resources of the directors, staff, and members of the Chamber.
e. Provide conference planning and coordinating assistance to organizations and
businesses.
f. Provide registration personnel to service conventions and sport events held in the
City.
g. Supply convention support material, i.e. name badges, city maps, city brochures,
sites and attraction lists, accommodation lists, etc.
h. Provide representation at tradeshows, conventions and exhibits to attract new
visitors to the City.
i. Promote the City as a tourism destination by national, regional and state-wide
promotion of the City's hospitality industry and attractions.
3. Bu�a et. On or before January 1,the Bureau shall submit to the Mayor of the City a
budget of the Bureau's activities for the next fiscal year. The terms of this agreement are
contingent upon review and approval of the Bureau's budget by the Bureau's advisory
board and Chamber of Commerce Board of Directors.
4. �enditures. It is understood by the parties that the Bureau shall have the discretion to
vary expenditures from the budget provided herein where in its judgement the funds will
best promote the tourist and convention activities within the City. Funds will be spent
jointly with the room tax revenues from developing the entire area's hospitality industry.
The Bureau shall not expend for services rendered under this agreement a sum in excess
of 95 percent of revenue collected by the City under Ordinance Number 80 in any fiscal
year.
5. Transfer of Funds. Acceptance of properly itemized budget, the city shall forward to the
Bureau each month the sum specified in paragraph 4.
6. Verification of Expenditures. The Bureau shall submit to the City an itemized monthly
statement of expenditures. This shall be due on the 15th of each month following the
month for which this statement covers.
7. Hold Harmless. Any or all employees of the Chamber or Bureau, or any other persons,
while engaged in the performance of any service required by the Chamber under this
agreement, shall not be considered employees of the City, and all claims made by the
third party as a consequence of any breach of contract or negligent act or omission on the
part of the Chamber, or its agents or employees or other persons while so engaged in any
services provided to be rendered herein, shall in no way be the obligation or the
responsibility of the City. And in the connection therewith,the Chamber hereby agrees
to indemnify, save and hold harmless, defend the City and all of its agents and employees
hereof, from any and all negligence or breach of contract, claims, demands, actions or
causes of action of whatever nature or character arising out of or by reason of the '
execution or the performance of the services provided in accordance with this agreement.
IN WITNESS WHEREOF,the parties hereto have executed this agreement the day and year
first above written.
ST. CLOUD AREA CHAMBER CITY OF WAITE PARK
OF COMMERCE
BY BY
Teresa Bohnen, President Richard E. Miller, Mayor
BY BY •
Julie Lunning, Executive Director Shaunna Johnson, City Administrator
Convention&Visitors Bureau