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The EDA considered the City of Ramsey's membership in the Twin Cities Gateway CVB at its February 9th regular <br />meeting. On a 6 -1 vote the EDA is recommending to the City Council that it consider and approve membership in <br />the Twin Cities Gateway CVB. Staff recommends that the City Council consider membership in Twin Cities <br />Gateway and direct staff to develop a draft Ordinance for future consideration. <br />Funding Source: <br />In 1983, the Minnesota Legislature passed the Local Option Tax. The law was passed such that 95% of all proceeds <br />from a local option lodging tax must be used to fund a local convention or visitors bureau for the purpose of <br />"marketing and promoting the area as a tourism or convention area." The remaining 5% could be retained by the <br />taxing authority for its administrative costs. <br />Any community desiring to join Twin Cities Gateway, is required to adopt a lodging tax (up to 3.0 %). This is a <br />statewide requirement for any city wishing to join any CVB organization. This would be added to the current sales <br />tax paid by customers. Both management and the owners of the Comfort Suites are supportive of the City joining <br />the CVB and implementing this revenue change (See attached letter). It is estimated that this would generate <br />approximately $24,000 based upon last year's gross revenues. Following discussions with the City Attorney, <br />implementing the lodging tax would not require a public hearing, but would require adoption of an ordinance by the <br />City Council. A simple majority of the Twin Cities Gateway Board of Directors must also approve the admission of <br />the City of Ramsey into the CVB (See attached by -laws and Board Directory). <br />Council Action: <br />City Council consider membership in Twin Cities Gateway and direct staff to develop a draft Ordinance for future <br />consideration. <br />Comfort Suites Letter <br />Twin Cities Gateway Website <br />CVB Community Info <br />CVB Sample Community Info <br />CVB By -Laws 1.18.11 <br />CVB Board of Directors <br />Attachments <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich Jo Thieling 02/16/2012 04:36 PM <br />Form Started By: Aaron Backman Started On: 02/16/2012 02:26 PM <br />Final Approval Date: 02/16/2012 <br />