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Home My WebLink AboutVIII-15 Authorize Signature - Tourism Bureau Agreement (2026 - 2028) with Hastings Area Chamber of CommerceTOURISM BUREAU AGREEMENT THIS AGREEMENT made between the City of Hastings, a Minnesota Municipal Corporation (hereinafter "the City"),and the Hastings Area Chamber of Commerce, a Minnesota Non-Profit Corporation (hereinafter "the Chamber"). WHEREAS, pursuant to Minn. Stat. §469.190, the City has enacted an ordinance imposing a three percent lodging tax in order to fund a Tourism Bureau for the purpose of marketing and promoting the City as a tourist destination; and WHEREAS, the Chamber has resolved to establish and maintain a Tourism Bureau with a sufficient facility and staff to carry out the objectives of promoting the City as a tourist destination. NOW,THEREFORE,the parties hereto agree as follows: 1.Tourism Bureau.The Chamber agrees to create and maintain the Hastings Tourism Bureau (hereinafter "the Bureau").The Bureau shall consist of a Board of Advisors, an Executive Director, and employed staff.The Board of Advisors shall have up to ten members, two of whom shall be appointed by the Hastings City Council, with the remaining eight members being appointed by the Chamber Board.The Chamber shall use its best efforts to appoint up to four of its appointees from the lodging industry in Hastings.The Chamber's appointees to the Board of Advisors shall initially serve staggered terms, with two Advisors being appointed for one year, two Advisors being appointed for two years, and four Advisors being appointed for three years.The City's appointees shall be appointed for three years.If appointments after resignations or vacancies would result in non-staggered terms, the Chamber or the City, as the case may be, may subsequently appoint Advisors for terms less than three years to implement staggered terms.The president of the Chamber shall serve as the Executive Director of the VIII-15 2 Bureau.The Chamber after consulting with the Board of Advisors shall have the power to hire staff and to lease,rent or purchase equipment or space as required for the Bureau to carry out its obligations hereunder. 2.Tourism Marketing Services.The Bureau shall develop and administer programs to advance the economic impact of tourism in the City by attracting visitors, conventions, meetings and other like events.The Bureau shall develop and administer such programs in accordance with approved marketing plans developed and/or revised annually. 3.Charges.All services provided pursuant to paragraph 2 of this Agreement shall be without charge to the person or organization using such services except to cover out-of-pocket expenses and any cost of administration as the Bureau deems appropriate. 4.Budget.The Chamber shall submit its annual operating budget for the Bureau for approval by the City by the end of September.Such budget shall detail the uses to which funds shall be spent to provide the services described in paragraph 2 of this Agreement. 5.Funding:,The City shall remit monthly to the Chamber 95%of the City's gross proceeds received from the lodging tax imposed under City ordinance. 6.Verification of Expenditures.The Chamber shall submit to the City a copy of the Bureau's year-end financial statements, itemized and verified by the Executive Director of the Bureau.The City shall have the right of access to the books and records of the Bureau at anytime during normal business hours in order to audit any item of revenue or expenditure. 7.Audit.The Chamber shall have an annual financial audit of the Bureau performed by an independent certified public accounting firm.The Chamber shall furnish a copy of this annual financial audit to the City at no cost to the City. VIII-15 3 8.Indemnification.The Chamber agrees to indemnify, defend and hold the City harmless from any claims, demands, actions or causes of action arising out of any act or omission on the part of the Chamber, its agents,servants or employees in the performance of,or with relation to, any of the work or services performed or furnished by the Chamber or the Bureau under this Agreement. 9.Insurance.The Chamber shall carry appropriate insurance to cover its employees and agents while performing services for the Chamber or for the Bureau pursuant to this Agreement.Such insurance shall provide comprehensive general liability and property damage coverage in such amounts as are comparable with the applicable limits of liability to which the City may be held pursuant to Minnesota Statutes as the same may be amended from time to time.The Chamber shall also carry workers compensation coverage as required under Minn. Stat. Chapter 176. IO.Term of Agreement.The Term of this Agreement shall begin on January 1, 2026 and shall terminate on December 31, 2029 provided either party may terminate the agreement following six months advance written notice given by either party to the other party of their intent to terminate this Agreement. 11.Modifications to Agreement.Any alteration, variation, modification or waiver of any provision of this Agreement shall be valid only after it has been reduced to writing and duly signed by the parties hereto.This Agreement constitutes the entire Agreement between the parties and supersedes all prior oral or written documentation/negotiations relating to the subject matter hereof. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates below given. VIII-15 4 Dated: ,2025 Dated:.,2025 CITY OF HASTINGS Mary D.Fasbender,Mayor HASTINGS AREA CHAMBER OF COMMERCE BY:_ Its President Its Chair VIII-15 Tourism Bureau 2024.2025 Marketing Expense Breakdown: Online Ads: •$4,980.00 –Fall Targeted Email Campaign o Two Target Markets: 60+ mid week travels –280,000 + emails to Rochester & surrounding areas, along with Madison, Eau Claire, Sioux Falls, Dubuque & Davenport, IA. Young family day trips –125,000 + emails to Twin Cities and surrounding areas. •$4,980 –Winter Targeted Email Campaign o Similar markets as the fall campaign. •$1,230 –Spring Break Targeted Email Campaign o Dakota County Cities •$3,200 –Bike Minnesota Monthly Online Banner Ads •$500 –Targeted social media and banner ads in the Rochester area Print Advertising: •$4,450 –Full page ad in Travel, Taste & Tour Winter Addition •$2,176 –Hastings Trail Map and big tour event listing in Minnesota Trails Magazine •$1,925 –Full page ad and two page editorial in St. Croix Valley Magazine •$5,720 –½ page Ad in Minnesota Monthly MN Getaways Addition •$5,000 –Full page ad in MN Twins Yearbook •$478 –½ page ad in Big River Magazine •$1,650 –Rack space for Hastings Visitor Guides in Minneapolis airport & MOA Misc. Tourism Expenses: •Sponsorships of Hastings downtown events like The Holiday Hoopla, Ice Sculpture and Candy crawl events. VIII-15 VIII-15 1:38 PM 10/14/25 Cash Basis Hastings Area Chamber of Commerce & Tourism Bureau Profit & Loss Budget Overview October 2026 through September 2027 Oct '25 - Sep 26 Income Lodging Tax Revenue Tourism Bureau Other Income 900.00 Lodging Tax Revenue - Other 115,000.00 Total Lodging Tax Revenue 115,900.00 Rivertown Days Income Sponsorships 0.00 Total Rivertown Days Income 0.00 Total Income 115,900.00 Gross Profit 115,900.00 Expense Tourism Bureau Expense Website 1,380.00 Online Ads 30,570.00 Print Advertising 30,400.00 Management Fee 30,000.00 Postage 2,000.00 Printing 11,000.00 Rent Expense 8,600.00 Telephone 1,950.00 Total Tourism Bureau Expense 115,900.00 Total Program Expenses 115,900.00 Total Expense Net Income 0.00 Page 1 of 1 VIII-15