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AGENDA RECOMMENDATION |
6.E.
City Council Regular Meeting
- Meeting Date:
- 11/25/2024
Agenda Item:
Resolution authorizing the City Manager to execute the Greater Mankato Convention and Visitors Bureau Operating Agreement.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The 2019 Operating Agreement with the Greater Mankato Convention and Visitor’s Bureau expired in 2023. The City Council authorized two extensions to the agreement, running through the end of 2024. Staff have been working with Visit Mankato, the renamed organization, on a new Operating Agreement. Attached is the proposed new agreement. This agreement has been approved by the Visit Mankato Board and is scheduled to be considered by the Greater Mankato Growth Board on Thursday, November 21, 2024.
This agreement is different from the prior agreement in that it provides clearer language about how the funds are distributed, it is clear that the taxes collected from all lodging in the community are part of the split vs. the prior agreement which was less clear about which lodging facilities were shared and which were not. Consistent with MN Statutes, the City may distribute 95% of the proceeds for the purposes of marketing and promotion services of the City as a tourist or convention center.
The agreement notes that the proceeds will be split as follows:
The remaining 5% of the proceeds are retained by the City for administrative costs.
The agreement is proposed for a new five-year term, starting on January 1, 2025, ending on December 31, 2029.
Staff recommends approval of the Resolution, pending the outcome of the Greater Mankato Growth Board meeting.
This agreement is different from the prior agreement in that it provides clearer language about how the funds are distributed, it is clear that the taxes collected from all lodging in the community are part of the split vs. the prior agreement which was less clear about which lodging facilities were shared and which were not. Consistent with MN Statutes, the City may distribute 95% of the proceeds for the purposes of marketing and promotion services of the City as a tourist or convention center.
The agreement notes that the proceeds will be split as follows:
- Eighty percent (80%) of ninety-five percent (95%) of the gross proceeds collected shall be distributed to Visit Mankato for the purposes of marketing and promoting the city or town as a tourist or convention center; and
- Twenty percent (20%) of ninety-five percent (95%) of the gross proceeds collected shall be distributed to the city to go into a Lodging Tax fund for the purposes of marketing and promotion of the City’s Convention Center, known as the Mayo Clinic Health System Event Center.
The remaining 5% of the proceeds are retained by the City for administrative costs.
The agreement is proposed for a new five-year term, starting on January 1, 2025, ending on December 31, 2029.
Staff recommends approval of the Resolution, pending the outcome of the Greater Mankato Growth Board meeting.