Adopt Ordinance #24-17 Implementing Lodging Tax 

The purpose of this case is to consider adoption of Ordinance 24-17 Implementing Lodging Tax .  Al Staufafacher has provided a draft model ordinance as a starting template that has been modified to be put in the City of Ramsey form.  The proposed ordinance implements a lodging tax for hotels and motels, except where such lodging shall be for a continuous period of thirty (30) days or more to the same lodger in the City of Ramsey; effective January 6, 2025.  The lodging tax is not applicable to rooming houses, campgrounds, air B&B, VRBO, tourist courts, resorts or other places of overnight lodging, except hotels and motels as outlined above.  At the October 22, 2024 City Council work session, the Council discussed the concept of implementing the lodging tax and entering into an agreement with Twin Cities Gateway and there was not a consensus to move it forward that evening.   Council Member Specht and Council Member Olson have requested that this item be reconsidered by the full City Council after they held additional discussion with the local hotels. Ordinance #24-17 was introduced at the November 12, 2024 City Council Meeting.

Ordinance #24-17 will be posted and published as required by City Charter.

The City Council reviewed this item at the October 22 Work Session and Ordinance #24-17 was introduced at the November 12, 2024 City Council Meeting.  Both hotels (Comfort Suites and Hilton Home2 Suites) have communicated their support for implementation of a lodging tax as referenced in their letters of support.  Draft Ordinance #24-17 is presented for consideration this evening.

Timeframe for Ordinance Adoption
November 12, 2024: Introduction of Ordinance
November 26, 2024: Adoption of Ordinance: 30 day publication (See below)
January 6, 2025: Effective date

If the ordinance is formally adopted on November 26th, due to the Thanksgiving Holiday the ordinance would be published December 6, 2024 and Ordinance #24-17 and Lodging Tax would not go into effect until January 6, 2025.

Alternatives include: 
1) Adoption of Ordinance 24-17 (as presented); subject to City Attorney review
2) Adoption of Ordinance 24-17 (with changes); subject to City Attorney review
3) Something else

Nominal staff time by Finance and Economic Development is required to process the collection and distribution of lodging taxes and an annual grant agreement with Twin Cities Gateway to support marketing activities for city events in the city..

Staff recommends Adoption of Ordinance 24-17 (as presented); subject to City Attorney review.

The EDA met on October 10th and recommended that the City Council implement a lodging tax. (minutes attached)

Motion to Adopt Ordinance #24-17 to Implement Lodging Tax.

Roll Call Vote:
Councilmember Olson
Councilmember Woestehoff
Councilmember Specht
Councilmember Musgrove
Councilmember Howell
Councilmember Riley
Mayor Kuzma