Forwarded on behalf of Karen Gruenberg of the Greater Mpls Convention and
Visitors Assn:

I am writing to clarify the recent article published in the Star Tribune
regarding the presentation made to the City Council by the Greater
Minneapolis Convention & Visitors Association for a three year strategic
plan.  The article reported incomplete information.

The GMCVA presented a first time - three year plan to the City Council to
explain the strategic plan that will generate more visitors and
conventioneers to Minneapolis in the coming years, which in effect results
in more general fund revenue to the city. The purpose, of course, is to
create new sources of revenue (through taxes charged to visitors outside the
Minnesota market) to create more additional financial sources for
Minneapolis improvements.  Last year convention attendees, alone,  spent
$450 million in the market creating $12.8 million in unencumbered general
fund revenue for the city. These are new dollars, dollars that would not
have been brought to this city if we did not book conventions for the
Minneapolis Convention Center.

This is the first time a long-range plan has been presented.  The Star
Tribune article mentioned only two items on the plan, one which is a
different initiative then the norm of  how we have done business and the
second an idea.  A small portion of the of $1.5 million dollars would be set
aside to create a fund to help offset the cost for conventions that fill
slow periods for the hotel industry.  The impact of securing these
conventions directly impacts the pockets of all Minneapolis businesses, not
just hotels and will generate million of dollars in spending.

If we had been able to help offset an operational cost of the Barbershop
Convention, an additional  $13.7 million would have landed in Minneapolis
during historically slow time, business that would have filled restaurants,
hotel rooms and generated retail traffic - all elements of our city that
makes it remain a prime city in which to work and live.

Regarding the issue of parolees entering the hospitality work force.  With
such a low unemployment rate in the Twin Cities the GMCVA announced that it
will EVALUATE all options to assist in finding employees that will help us
serve the visitor.

One such program suggested was to explore opportunities for using people
just entering the work force - parolees.  What was missing  in the article
were other options that we will be evaluating such as daycare options to
attract parents to work in the hospitality industry, the expansion of
training programs called Pathways and the Minneapolis  Academy of Travel and
Tourism or the exploration of union training programs.

We built the convention center and now are expanding it for the purpose -
generating more traffic to Minneapolis resulting in more monies to the
marketplace including taxes brought in from outside Minnesota which allows
our city more dollars to pay for improvements in Minneapolis.  The
additional dollars are placed in the General Fund which reduces pressure on
property tax.  The additional 1% we are seeking comes from the tax on hotels
which goes directly into the General Fund, where ALL our funds come from and
are dedicated revenues for the visitor industry.

We  need to tell people about our product, that is what the bulk of the
increase will be spent on.  Unfortunately that was not mentioned in the
article.

Thank you!

Karen Gruenberg
Greater Mpls Convention and Visitors Association

VISIT MINNEAPOLIS - THE COOLEST PLACE ON EARTH

--forwarded by David Brauer, List manager, Mpls-issues

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