HomeMy WebLinkAboutCity Council Packet 06-13-2023 SpecialCity Council 1 of 1 June 13, 2023
CITY OF PLYMOUTH
AGENDA
Special City Council
June 13, 2023, 5:00 PM
1.CALL TO ORDER
2.TOPICS
2.1 Discuss Plymouth Destination Marketing Organization (DMO) Business Plan
Plymouth DMO Business Plan
2.2 Review/discuss next steps for the former Four Seasons Mall site, 4200 Lancaster
Lane
Aerial Map
2.3 Set future study sessions
June
July
August
September
3.ADJOURN
1
Special City
Council
June 13, 2023
Agenda
Number:2.1
To:Dave Callister, City Manager
Prepared by:Jennifer Tomlinson, Parks and Recreation Director
Reviewed by:Maria Solano, Deputy City Manager
Item:Discuss Plymouth Destination Marketing Organization (DMO)
Business Plan
1.Action Requested:
Review the attached business plan and provide feedback to staff on next steps.
2.Background:
The City of Plymouth has collected a lodging tax from hotels since the fall of 2020. The funds are
required to be spent with two-thirds (2/3) of the funds to be used for capital improvements to
public recreational facilities and the remaining one-third (1/3) to be used to fund a local convention
and tourism bureau. To best market the community using the lodging tax funds, staff is
recommending the establishment of a Destination Marketing Organization (DMO) as a division of
the Parks and Recreation Department. This division will be financially self-sustaining and will be
responsible for raising awareness of Plymouth as a destination throughout the nation, state and
region.
3.Budget Impact:
The proposed Plymouth DMO will be funded through a lodging tax that is collected by hotels within
the community. There will be no impact on the existing budget.
4.Attachments:
Plymouth DMO Business Plan
2
City ofPlymouth
Adding Quality to Life
DESTINATION MARKETING
ORGANIZATION
Draft Business Plan 2023
3
1
June 13, 2023
Mayor and City Council Members
3400 Plymouth Boulevard
Plymouth, MN 55447
Subject: Plymouth Destination Marketing Organization – Proposed Business Plan
Dear Mayor and Council Members:
The City of Plymouth has a long history of being a city of choice for residents, businesses, organizations,
visitors, and events. Plymouth is a destination that attracts visitors from outside the city for work,
entertainment, sports, events and more. Residents and businesses are “Plymouth Proud” and engage
with city officials to make sure Plymouth continues to add quality to life. Leveraging the assets of
Plymouth for high quality tourism and visitor experiences that result in community investment and
economic development require an improved marketing and promotional effort to maximize the
leverage.
This Destination Marketing Organization (DMO) Business Plan provides the framework for the City
Council’s consideration of a new self-sustaining funding source and the resulting services to be offered
to market and promote the City of Plymouth as a community of choice and destination within the
region.
We look forward to Council’s consideration and feedback about this plan and how to continue to make
Plymouth a leading community in which to live, work and thrive.
Respectfully submitted,
Dave Callister, City Manager
4
2
Recommendation
Since the fall of 2020, the city has collected a three percent (3%) lodging tax that is allowed through
special legislation. Two-thirds (2/3) of the funds are to be used for capital improvements to city
recreational facilities and one-third (1/3) to market the community. To best market the community
using the lodging tax funds, staff is recommending the establishment of a Destination Marketing
Organization (DMO) as a division in the Parks and Recreation Department. This financially self-sustaining
division would be responsible for raising awareness of Plymouth as a destination throughout the nation,
state, and region. It is recommended that the City Council act as the governing body with an advisory
board made up of members of the business community and city staff who provide recommendations.
The following business plan outlines a background on the City of Plymouth, an in-depth
recommendation of the establishment of a DMO, information on the funding source and a draft timeline
of implementation.
Background
According to the 2020 U.S. Census, Plymouth is the state's 7th largest city with a population of 81,026
and approximately 32,000 households. The City of Plymouth has been nationally recognized for its
quality of life by offering extensive trails and parks, picturesque open spaces, strong neighborhoods,
diverse recreation programs, highly regarded school districts, a variety of local businesses, and nearby
shopping and entertainment districts.
In addition to being a popular place to live, Plymouth is also the choice for many businesses. The city is
home to a thriving commercial-industrial base, consisting of approximately 54,000 jobs. Plymouth has
Minnesota’s fourth largest economy, as measured in gross business sales by the Minnesota Department
of Revenue.
Plymouth operates its own transit service, Plymouth MetroLink, and has several major highways running
through or near the city, making it readily accessible to all within the metropolitan area. Interstate 494
and Highway 55 run through Plymouth while Highway 169 is on the city’s eastern border and I-394 is
less than half a mile from the southern border.
Plymouth’s natural amenities include 17 lakes. Medicine Lake, the second largest lake in Hennepin
County, is located in Plymouth. It is a magnet for anglers and boaters. Plymouth is known for its
extensive recreation programing, well-used and maintained facilities, beautiful parks, and a great trail
system including:
• 67 developed parks, totaling over 1,824 acres
• 175 mile network of city, state and regional trails
• 9 playfields
• 3 public beaches
In addition, the following major amenities and features of the city attract visitors year-round:
Plymouth Community Center: the newly renovated Plymouth Community Center has three separate
wings providing spaces for corporate and private meetings, conferences, events, and weddings.
• Active wing – offers the Kids Ultimate Backyard Experience (K.U.B.E.) Indoor Playground - an
accessible play area designed to bring the outdoors, indoors. Other amenities include an indoor
walking track, fitness, gym, fieldhouse, and sensory inclusion space.
5
3
• Education wing – features an art gallery, music rooms, senior/adult spaces, and multipurpose
rooms.
• Event wing – provides conference/meeting rooms, ballroom, black box theater, and outdoor
Millennium Garden venue.
Hilde Performance Center: the Hilde Performance Center is one of Plymouth’s defining landmarks. The
45-foot tall open-air amphitheater facility is built for excellent acoustics in an outdoor setting. A glass
wall in the back of the bandshell allows the audience to view the natural beauty of Plymouth’s wetlands
beyond the stage. The bandshell is home to the Live at the Hilde concert series which has featured Rock
and Roll Hall of Famers, local music legends, and upcoming superstars. The facility also hosts a wide
variety of community events such as Kids Fest, Bark in the Park, Movies in the Park, musicians,
magicians, cultural festivals, and more - drawing tens of thousands to the Hilde each year.
Plymouth Ice Center: In the heart of City Center, the Plymouth Ice Center features three professional
size sheets of ice, 16 locker rooms and two community meeting rooms. The ice center drew 900,000
people in 2022 and serves as a venue for many large tournaments, professional scouting events and
games.
Northwest Greenway: An outdoor recreation corridor which provides space for large scale events
including walking/running races. The Northwest Greenway encompasses approximately 7.5 miles of
paved pathways and 350 acres of protected open space.
City Events: The City of Plymouth is known in the region for its event programing that draw thousands of
visitors to the community every year. Those events include:
• Live at the Hilde - Live at the Hilde is a ticketed concert event held at the Hilde Performance
Center during the summer months in collaboration with Sue McLean and Associates (SMA).
SMA’s Live at the Hilde concerts bring national touring acts and a full concert experience to the
Hilde Performance Center. (Attendance approx. 3,000-6,000)
• Music in Plymouth - A sure sign of summer in the city, Music in Plymouth is held in the
beginning of July each year at the Hilde Performance Center, 3500 Plymouth Blvd. The Plymouth
Civic League presents the free Music in Plymouth event with the support of the City of
Plymouth, Plymouth businesses and residents. The event features performances from the MN
Orchestra and other various artists, family activities, food trucks, sponsor booths and fireworks.
(Attendance approx. 10,000-15,000)
• Plymouth on Parade - The free event includes family activities on the corner of Plymouth
Boulevard and 34th Avenue N and a parade that travels from City Hall to the Plymouth
Community Center. Food trucks offer concessions for purchase. This event is held in September
of each year. (Attendance approx. 3,000-5,000)
• Farmers Market - The 2023 Plymouth Farmers Market is held every Wednesday starting late
June through early October at the Parkers Lake Playfield. Various vendors set up booths and sell
fresh fruits and vegetables, cheeses, honey, olive oil and much more. (Attendance approx.
23,000-25,000 – per season)
6
4
• Fire and Ice Festival - Fire & Ice, Plymouth’s annual winter festival is held the first Saturday in
February at Parkers Lake Park, at County Road 6 and Niagara Lane. The free event offers winter
activities that celebrate the best of the bold north, including sled dog rides, a youth ice fishing
contest, ice games, recycle bin races, horse-drawn trolley rides, pony rides, box hockey, ice
skating, food trucks, bonfire pits, snowshoeing, cross-country skiing and fireworks display,
weather permitting. (Attendance approx. 3,000-5,000)
• Discover Plymouth - Plymouth’s annual community showcase, Discover Plymouth occurs in April
each year at the Fieldhouse dome at the Plymouth Community Center. The free event features
local businesses, community groups, activities for children, nonprofit organizations, and
community services. Attendees can have informal conversations with city staff from various
departments and learn about recreation programs, volunteer opportunities, environmentally
friendly practices, city services and more. (Attendance approx. 1,000-2,000)
• Primavera - Plymouth’s annual springtime celebration of the arts, occurs every April at the
Plymouth Community Center. A partnership of the City of Plymouth and Plymouth Arts Council,
this free event provides an opportunity for the public to view and celebrate fine art. Original
juried artwork by local and regional artists, as well as artwork by Plymouth area high school
students, are featured in the art gallery and nearby classrooms at the community center.
(Attendance approx. 1,000-2,000)
• Date Night - The City of Plymouth holds a Date Night at the Hilde yearly in the summer months.
This event offers an opportunity for adults to enjoy an evening out and includes food trucks,
drinks, lawn games and a live performance. (Attendance approx. 500)
• Bark in the Park - Plymouth’s popular all-about-dogs event, Bark in the Park is held annually in
May at the Hilde Performance Center. The free Bark in the Park event features dog products and
non-profits, pet supply vendors, giveaways, a “pup-arazzi” photo booth, dog caricatures, pup
pools for four-legged friends to cool off, small dog races, Dog Treat Trail, and a stuffy adoption
center (for dogs). (Attendance approx. 800-2,000)
• Summer Beach Series - The beach series consists of three different free events held at Parkers
Lake Beach, East Medicine Lake Beach or West Medicine Lake Beach. The events include a
Beaches and Bonfire event with live music and bonfires, a Parkers Lake Playday featuring water
activities, waterslides, fishing and more, and a Beaches, Band and Brews event featuring live
music and beer. (Attendance approx. 200-500)
• Entertainment in the Parks - During the summer months the city hosts several concert events
free to the public and the Hilde Performance Center. The concerts feature various artists from
local to regional groups. (Attendance approx. 200-3,000)
• Kids Fest - A summer carnival with a splash of learning, Kids Fest features inflatables, games,
prizes and entertainment held on the Hilde stage and surrounding lawn. The event is held during
the month of August on a Thursday evening. (Attendance approx. 2,500-4,000)
• Halloween at the Lake - Halloween at the lake is held the Friday before Halloween at Parkers
Lake Playfield. It is a free event that brings together the best of Plymouth’s Parks and
7
5
Recreation, Police, and Fire departments, Halloween at the Lake features attractions such as
inflatables, food trucks, pumpkin bowling, pumpkin golf, bingo, an apple launcher and treat
stations. The event also includes public safety vehicles for children to view, as well as a sensory
station for hands-on fun. (Attendance approx. 3,000-5,000)
• Holiday at the Hilde – This event features winter holiday favorites including a visit from Santa
Claus and reindeer and is held the first Saturday in December at the Hilde Performance Center.
In addition to meeting the visitors from the North Pole, participants may listen to choir singers,
take home a craft, pet llamas in holiday attire, warm up by a bonfire and more. The event
includes a ceremonial tree lighting. The holiday/winter lights are on display along the grounds of
the Hilde Performance Center through the snowy season for the community to walk around and
enjoy. (Attendance approx. 1,000-2,000)
Dining, Entertainment & Shopping: Plymouth offers 146 eating
establishments with 39 of those restaurants holding on-sale liquor
licenses. Additionally, there are entertainment and shopping
opportunities in and around Plymouth.
Med Tech Hub: Plymouth is home to several leading companies in
the med tech sector, as well as home to the companies that form
the supply chain that supports manufacturing high-tech, life-
changing products. Plymouth has been called “the heart of
Medical Alley” by its statewide trade association.
Location to Regional Amenities: Residents and visitors alike take advantage of the numerous cultural
and recreational amenities of the Twin Cities area with convenient proximity to both Minneapolis and
St. Paul. Museums, galleries, zoos and nature conservatories are abundant in the region. Numerous
historic sites and world-class dining and entertainment are available nearby in addition to an
international airport. Plymouth is also located within driving distance to Minnesota professional sports
team arenas including:
• Minnesota Twins (Major League Baseball)
• Minnesota Vikings (National Football League)
• Minnesota Timberwolves (National Basketball Association)
• Minnesota Wild (National Hockey League)
• Minnesota United FC (Major League Soccer)
As demonstrated above, the City of Plymouth is a destination for its various amenities, events and great
location. As a destination, there are economic benefits to the region and city to ensure it continues to
attract new and returning visitors, business travelers and tourists.
8
6
Recommendations for establishment of a Destination Marketing Organization (DMO)
The recommendation as further detailed within this business plan is for the City of Plymouth to establish
a Destination Marketing Organization (DMO). Within the tourism, destination marketing, and
convention industry, there are several traditional and modern organizational structures or options to
consider. Appendix A provides several websites from regional tourism and destination organizations for
reference.
• Convention and Visitors Bureau (CVB): CVBs are not-for-profit organizations primarily funded by
their local governments, usually through a portion of lodging taxes. Their mission is typically to
promote the long-term development and marketing of a destination, focusing on convention
sales, tourism marketing, and services. The CVB is responsible for creating public awareness
about their destination and assisting in booking the meeting and event business that supports
the destination.
• Destination Marketing Organization (DMO): The terms CVB and DMO are often used
interchangeably. Referred to as CVBs for many decades, destination marketing organizations
began identifying themselves as DMOs to convey a less bureaucratic connotation to the
traveling public. Similarly, many CVBs, such as Meet Minneapolis, have replaced the traditional
“Convention & Visitors Bureau” portion of their name with a more descriptive, action-oriented
name. DMO is generally considered a more contemporary designation.
Every CVB is a DMO, but, technically, not every DMO is a CVB. Some destinations have no
meeting facilities and consequently market to leisure travelers only; some focus solely on
meeting and convention business and leave transient tourism marketing to other entities.
• Destination Management Companies (DMC): DMCs provide their services to a customer for a
fee. According to the Association of Destination Management Executives, a DMC is a
“professional services company possessing extensive local knowledge, expertise and resources,
specializing in the design and implementation of events, activities, tours, transportation and
program logistics.” Engaging the services of a DMC may be valuable after it is confirmed the
hotel and facilities in a specific destination would be advantageous to be “managed” for the
destination. Planners may have a multiyear contract to organize events and provide marketing
services to the destination.
As proposed for this business plan, the classification of DMO is the most fitting to the proposal and is
therefore recommended. The DMO would be an entity within the city’s organizational structure and
would not be operated by an external organization or as a separate non-profit organization.
9
7
Implementation Timeline
Below is an implementation timeline for recommendations as included within this plan.
Task Completion Date
Council Workshop – DMO Business Plan June 13, 2023
*Public – Industry Engagement July - August 2023
Establish DMO Advisory Board September 2023
Council Adopt DMO Ordinance September 2023
Recruit DMO Staff Q4 2023
Begin DMO January 1, 2024
*Staff is recommending consulting with DMO Proz to help with industry engagement
DMO Marketing Name
The name of the DMO, as will be used in marketing materials or for a website, will be determined at a
later date. This will require further analysis of the marketplace for typically used naming conventions,
optimization of search functions, maximizing general recognition by users, etc. For the purpose of this
plan, the name of the DMO organization will be referred to as the Plymouth Destination Marketing
Organization or Plymouth DMO.
Potential Operational Challenges to the DMO
As an internal operation to the City of Plymouth, the DMO may face some operational challenges in
comparison to other DMOs or convention and visitor bureau type operations. Overall, most non-
government organizations run as non-profits or are clearly not an entity of the local government.
As a part of the City of Plymouth, all applicable state laws will be followed including those regarding
purchasing, data practices, public usage of funds, gifts or donations. In addition, employees of the DMO
would be city employees thus subject to our personnel policies and procedures.
These are all challenges that can be overcome and are not considered significant enough obstacles to
change the recommendation. However, should the DMO become directly involved in competitive
processes for booking of events or tournaments there could be instances of the DMO being at a
competitive disadvantage by not being able to offer services, incentives or prices in a manner like other
organizations. There may be marketing or promotional opportunities that are also constrained by
following city required rules or procedures.
The DMO may also be challenged to find experienced staff to work or lead the DMO with a non-
traditional organizational structure. This may be viewed as a riskier professional opportunity to those in
the industry and it may also be constrained by the inability to offer incentives or bonuses that may be
applicable to similar positions. Although the benefits to working as a public sector employee may
outweigh these challenges as full-time city staff would be eligible for benefits and retirement pension
contributions to the Public Employee Retirement Association (PERA).
DMO Purpose and Goals
The overall purpose for creation of a DMO for Plymouth is like that of any CVB or DMO. Travel and
tourism enhance the quality of life in the destination by providing jobs, local spending and
attracting restaurants, shops, festivals, and cultural and sporting events that cater to both visitors and
locals. All of which sustain and grow the local tax base.
10
8
Roles of a DMO
The role of a DMO can be varied and will be refined over time. The roles listed below will have a positive
effect on visitors, current and prospective residents, Plymouth businesses and potential businesses
looking to relocate to the community.
Plymouth DMO Key Goals
The following are suggested key goals regarding DMO operations and finances. These will be further
refined and provide a high-level framework for future analysis and discussion.
Operational Goals
• Complete an in-depth strategic planning process to develop the detailed scope of work for the
DMO as well as mission, vision, values and goals with associated timelines.
• To provide a high quality and innovative marketing plan that raises awareness of Plymouth as a
destination to inspire visitors to visit and return to the community.
• To continue to cultivate partnerships with business establishments supporting tourism and
visitors to Plymouth, supporting their success and ultimately the economic impact to the
community.
• To preserve and enhance future and existing commercial businesses through investments in
tourism and visitor engagement.
• To establish a visitors’ center, potentially in City Center 2.0 vision. Providing materials (digital or
hard copy) and staff to provide a central point of contact for in person destination services.
Financial Goals
• Be a financially self-sustaining entity with a dedicated non-property tax funding source.
• To provide transparent comprehensive financial reporting, planning and analysis.
• To maintain a fund balance appropriate to address any needed emergencies, funding
disruptions or downturns, and unique funding opportunities.
Tell Plymouth Story -Inform, Educate, & Advise
Stimulate Visitor Circulation and Spending
Provide a Platform for local businesses to harvest visitor demand
Steward the Sustainability of Place-based Assets
Spearhead a Consistent Brand Message
Inform Private and Public Development Decisions
11
9
Annual Reporting
An annual report of performance measures and financial results would be produced and reviewed by
the established governing and advisory bodies of the DMO. This should be accomplished prior to annual
budget review or approvals. All reporting should be available on the DMO website.
DMO Revenues and Local Lodging Tax
Establishment of a City of Plymouth Destination Marketing Organization (DMO) and achievement of
marketing and promotion of the city as a tourist or convention center is reliant upon a sustainable
funding source. The necessary funding source will be a local lodging tax as permitted by Minnesota
Statute §469.190 and Plymouth’s special lodging tax legislation (see Appendix B).
Local Lodging Tax
Per Minnesota Statute §469.190, the city may by ordinance impose a tax of up to three percent on
the gross receipts from lodging establishments. Ninety-five percent of the gross proceeds from any
tax imposed shall be used by the city to fund a local convention or tourism bureau for the purposes of
marketing and promoting the city as a tourist or convention center.
Lodging Tax Special Legislation
The state approved a special lodging tax that became effective on October 1, 2020, granting the City of
Plymouth a 3% lodging tax to help create a convention and visitors bureau, fund capital investments and
promote tourism. Two-thirds of the revenues from this special lodging tax helps pay for capital
investments including the Plymouth Community Center and the remaining one-third must be used as
allowed under the law to fund a local destination marketing organization. The special legislation includes
a sunset of 10 years after the tax is imposed (September 30, 2030).
The city is seeking additional legislation to remove the 10-year expiration date of September 30, 2030
for the following reasons:
• No other lodging tax in the state has an expiration date, and Plymouth would like to be treated
the same as other communities.
• Two-thirds of the lodging tax pays for capital investments including the Plymouth Community
Center, which has a 20-year term on financed debt.
• Plymouth Community Center – a regional asset that draws people to Plymouth for conferences
and other events – boosting the local economy through hotel stays, dining and shopping.
• Since opening in January 2022, the Plymouth Community Center has welcomed 425,000 guests
and sold 57,000 tickets for the K.U.B.E., an accessible indoor playground that hosts visitors from
around the metro area.
• In addition to the Plymouth Community Center, the city is home to a variety of other popular
recreational assets – including the Plymouth Ice Center – one of the most heavily utilized public
ice arenas in the area.
• In 2022, the Plymouth Ice Center hosted more than 900,000 visitors for regional, state and
national hockey tournaments and events.
• Plymouth is a unique community as it attracts tourist through a vibrant mix of city-owned and
maintained recreational amenities that generate hotel stays, restaurant visits and retail
shopping.
• The lodging tax approved by the legislature in 2019, allows the city to invest directly in these
regional facilities without putting the entire burden on Plymouth taxpayers. The tax allows the
users of these facilities to help pay for the amenities.
12
10
• Plymouth is not alone, there are several cities that have been authorized to use funds for similar
projects/initiatives.
• Plymouth’s top-notch facilities draw tourism to the region and benefit surrounding communities
and funding for capital investments from the lodging tax helps make that possible.
City of Plymouth Tax Collection
Plymouth Ordinance 2020-05 (Appendix C) establishes the lodging tax and process for collection and
violations. Each operator/lodging establishment shall collect the tax imposed at the time rent is paid and
shall be separately stated from the rent charged for the lodging. The operator shall pay the city no later
than 25 calendar days after the end of the month in which the taxes were collected. The ordinance also
addresses reporting requirements, audits, refunds, failure to file a return, interest, violations, use of
proceeds, and appeals.
Plymouth Lodging Establishments
By Statute, the city may impose a tax of up to three percent on the gross receipts from the furnishing for
consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting
or leasing of it for a continuous period of 30 days or more. By the definitions as included in statute, the
following lodging establishments currently exist in the city totally 1,227 rooms available.
Lodging Establishment Address Number of Rooms
Waterwalk 10000 59th Ave. N. 153
Holiday Inn Express 2955 Empire Ln. N. 97
Crowne Plaza 3131 Campus Dr. 243
Ramada 2705 Annapolis Ln. N. 149
Red Roof Inn 2600 Annapolis Ln. N. 116
Comfort Inn 3000 Harbor Ln. N. 116
Radisson Country Inn & Suites 210 Carlson Pkwy N. 132
Home2 Suites 2990 Harbor Ln. N. 102
Residence Inn 2750 Annapolis Cir. N. 119
DMO Governance
An ordinance is required to establish the lodging tax per State Statute. However, the governance
structure is not dictated by statute and simply states, “…shall be used by the statutory or home rule
charter city or town to fund a local convention or tourism bureau…”
The Minnesota Association of Convention & Visitors Bureaus (MACVB) represents more than 70
destinations statewide and provides a comprehensive list of members on their website. The
organizational structures include primarily convention and visitors bureaus, but also include chambers of
commerce, tourism bureaus, destination marketing organizations, visitor associations, and many non-
profits. While not every organization was reviewed in-depth, it does appear almost all are non-profit
entities who likely have an agreement with their local jurisdiction(s) to operate as their local convention
or tourism bureau.
Although many cities appear to establish a separate non-profit organization to operate and manage a
local convention and tourism bureau, there is no statute or regulation that requires the formation of a
13
11
separate non-profit entity. Therefore, the city is opting to internally budget and manage the operations
of the DMO.
Plymouth Recommended Governance
The recommendation for the structure of the Plymouth DMO is to keep all functions internal and
operated by the City of Plymouth. A separate entity or establishment of a non-profit is not
recommended. An ordinance to that effect is recommended to ensure clarity on the establishment of
the DMO and its assignment as the city’s convention or tourism bureau, providing consistency to the
statute. Essentially, the functions of the DMO are like any other city department division, with a
dedicated staff position and budget. Additionally, the DMO would utilize existing city staff and resources
including finance, human resources, communications, and facilities.
DMO Governing Body
The City of Plymouth City Council will be the governing body of the DMO. The council will approve the
budget and be the final authorizing body for any items of the DMO consistent with existing city codes,
policies, and directives.
DMO Advisory Body
Due to the unique nature of the services of the DMO and the funding structure, it is recommended that
an advisory body be utilized to provide more in-depth analysis, review, and oversight of the DMO with
the capacity to then provide final recommendations to the governing body, the City Council. An advisory
body is typically made up of 7-10 members who commonly represent the following areas:
• Individuals who represent one or two of the local hotels (could rotate between hotel reps)
• City staff representation (could include Park and Recreation, Community and Economic
Development, and City Management staff members)
• Representatives from a few local retail/restaurant/entertainment venue establishments
• Plymouth DMO Coordinator (non-voting)
• Council liaison (non-voting)
Financial Reporting and Tracking
All finances for the DMO would be reported, budgeted and tracked through a newly established Special
Revenue Fund of the city. Special revenue funds are used to account for the proceeds of specific
revenue sources that are legally restricted to expenditures for specified purposes. The city currently
uses special revenue funds for a variety of functions including, but not limited to, Lawful Gambling
Contribution Fund, Housing and Urban Development, and Housing and Redevelopment Authority.
A resolution establishing the special revenue fund would be required. In addition, a future
Administrative or Council Directive may be advisable to address fund balance goals and a process to
address fund balances below or exceeding established goals.
DMO Services and Staffing
To develop a proposed budget for the DMO, it is important to determine what services the DMO will
provide and the staffing necessary to successfully achieve providing such services. Over time, the
services of the DMO will be refined by staff through further strategic planning and general learning
through the start-up process. It is not the purpose of this business plan to fully develop the DMO vision,
mission, values, or destination/marketing vision. The following is a high-level overview of anticipated
services and staffing necessary to develop a proposed budget.
14
12
DMO Services
The services of the DMO are anticipated to fall within the following major categories:
• Visitors Information Center
• Digital Visitors Guide
• Digital Marketing & Communications – website, social media, advertising, promotions
• Event Services, Planning & Experiences – event calendar, event contact & solicitation, site visits
• Destination & Business Partnerships – community marketing, business partnership resource
• General Administration – management, financial, strategic planning, performance measures
Prioritization of service development and an annual scope of services and goals will need to be
developed by staff. It is anticipated that development of the website and establishment of the visitors
information center will be high priorities. Focusing on event/athletic services are then likely the next
priority followed by business partnership efforts which may require several years of operation before
being fully developed.
See Appendix A for some example websites from regional tourism organizations to provide further
context on services typically provided.
DMO Staffing
DMO staffing will include one new City of Plymouth employee who is also supported by existing staff.
The proposed budget includes 1.0 full-time employee strictly assigned to the management and
implementation of the DMO. The DMO Coordinator would report to the Parks and Recreation Director.
Estimated Lodging Tax Revenues
Since Plymouth’s lodging tax collection began in October 2020, the City of Plymouth has collected over
$1 million in lodging tax revenue. The annual average lodging tax collected in 2021 and 2022 was
approximately $520,000. As occupancy rates continue to increase following the pandemic, it is
anticipated there will be approximately $200,000 in annual revenue to administer the DMO.
As noted earlier, Plymouth’s special legislation authorizes the 3% lodging tax to be collected with two-
thirds for capital investments and one-third for the DMO. This special legislation does not preclude
Plymouth from also collecting an additional 3% local lodging tax authorized by Minnesota Statute
§469.190. We have no plans to recommend collecting this additional tax, but it is an option if needed in
the future.
DMO Expenditures
Under Plymouth’s special legislation, two-thirds of these funds are dedicated to capital investments in
the community and the remaining one-third must be spent as authorized in Minnesota Statute 469.190.
Per statue, of the remaining one-third, ninety-five percent of the gross proceeds shall be used by the city
to fund a local convention or tourism bureau for the purposes of marketing and promoting the city as a
tourist or convention center. Therefore, the remaining five percent of these lodging tax revenues
received are unrestricted and can be transfer to the city’s General Fund to help off-set some of the city’s
operating expenses being absorbed in general city operations (examples: use of city facilities and
support from existing city staff).
15
13
DMO Revenue/Expenditure Allocations
2020 2021 2022 Total
Total Lodging Tax
Revenue
$52,884 $449,032 $595,724 $1,097,640
2/3 allocated to
capital projects
$35,256 $299,355 $397,150 $731,760
1/3 allocated to
DMO
$17,628 $149,677 $198,575 $365,880
Below is an example of what the proposed annual operating budget for the DMO could include.
Estimated Annual Operating Expenditures
Year 1 (2024) Year 2 (2025) Year 3 (2026) Year 4 (2027)
5% Unrestricted
Use of Funds to
General Fund
$10,000 $10,000 $10,000 $10,000
DMO Coordinator
salary including
benefits
$125,000 $132,500 $137,800 $143,312
Marketing
Promotional
Materials
$25,000 $25,000 $25,000 $25,000
Website
Maintenance
$10,000 $10,000 $10,000 $10,000
Special Projects
and Community
Events
$20,000 $20,000 $20,000 $20,000
Annual Totals $190,000 $197,500 $202,800 $207,312
The one-time start-up costs including establishment of a website, visitors guide, and other digital
presence items in addition to potential marketing and consultant assistance have been separated from
the annual operating budget as one-time expenditures. As noted in the revenue section, the DMO will
bring in approximately $200,000 in annual revenue, funded with the one-third lodging tax money. The
city has been collecting lodging taxes since October 2020 and has been setting aside these earmarked
funds for the DMO, which has a balance of $365,880 as of the end of fiscal year 2022. This fund balance
will help with start-up costs.
One-time Start-up Expenditures
Consultant to assist in business/community
engagement
$10,000-$15,000
Marketing firm to design initial logo and
promotional materials
$40,000-$60,000
Website Development $20,000-$40,000
Total $70,000-$115,000
16
14
Appendix A: Example Websites
The following are example websites from Convention and Visitor Bureaus or Destination Marking
Organizations within the region (not all-inclusive).
• Explore Albert Lea: https://www.explorealbertlea.com/
• Visit Apple Valley: http://visitapplevalley.com/
• Explore Minneapolis Northwest (Brooklyn Center, Brooklyn Park):
https://www.minneapolisnorthwest.com/
• Experience Burnsville Minnesota: https://burnsvillemn.com/
• Discover Cottage Grove: https://discovercottagegrove.com/
• Enjoy Eagan: https://eaganmn.com/
• Explore Edina: https://exploreedina.com/
• Visit Lakeville: https://visitlakeville.org/
• Experience Maple Grove: New 501(c)6 non-profit DMO.
https://www.maplegrovemn.gov/692/Experience-Maple-Grove
• Visit Red Wing: https://redwing.org/
• Discover Stillwater: https://www.discoverstillwater.com/
• Discover St. Louis Park: https://discoverstlouispark.com/
• Twin Cities Gateway (Anoka, Blaine, Coon Rapids, Fridley, Ham Lake, Lino Lakes, Mounds View,
New Brighton, Shoreview): https://www.tcgateway.com/
17
15
Appendix B: Minnesota Statute §469.190 Local Lodging Tax & Plymouth Special Legislation
18
Appendix C: Ordinance 2020-05 Adding Section 1185 of the City Code Concerning Lodging Tax
19
20
21
Special City
Council
June 13, 2023
Agenda
Number:2.2
To:Dave Callister, City Manager
Prepared by:Grant Fernelius, Community and Economic Development
Director
Reviewed by:
Item:Review/discuss next steps for the former Four Seasons Mall
site, 4200 Lancaster Lane
1.Action Requested:
Discuss and provide staff with direction on next steps for the former Four Seasons Mall site, 4200
Lancaster Lane.
2.Background:
Wellington Management is no longer working on redeveloping the former Four Seasons Mall site. In
light of that, staff is asking the City Council to provide input on planned next steps. Assuming the
City Council wishes to continue pursuing a mixed-use redevelopment of the site consisting of
housing and retail/office uses, the upcoming marketing plan would be as follows:
- The Four Seasons webpage would be updated to announce Wellington’s exit and outline next
steps for redevelopment of the site.
- Rather than another ‘Request for Proposals’ (RFP) process, staff would begin by inviting
developers in for informal discussions to get their perspectives regarding how the site could
successfully be redeveloped.
- Information and feedback collected from the informal meetings with developers would be used to
help the city to devise a plan, financial package, and negotiation strategy that maximizes
development potential on the site.
- A broker would be hired to assist with marketing the site with the goal of securing a purchase
agreement.
- Upon securing a purchase agreement, development review would be coordinated and scheduled
per ordinance.
History:
- The site contains 17.3 acres, of which roughly 12 acres are buildable. The site is a filled wetland
(developed prior to current wetland protection regulations), and therefore has poor soil conditions
requiring pilings for buildings/utilities which will result in extraordinary development costs.
- The former Four Seasons Mall building was constructed in 1978 and contained 117,000 square feet.
The mall was shuttered in 2011 and demolished in 2022.
- The site was purchased by Walmart in 2010 for $10.6M. Walmart considered redeveloping the site
with a 150,000-square-foot superstore but never submitted a development application to the city.
22
- Rock Hill Management received City Council approval of their ‘Agora’ redevelopment project for
the site in 2017 but was unable to secure financing to move forward. That project included two
hotels totaling 195 rooms, a 139-unit senior housing building, 81K square feet of retail and office
use, and a 339-space parking ramp -- 200 spaces of which would accommodate city park-and-ride bus
service.
- Dominium Development received City Council approval to redevelop the site in 2019 but was
unable to secure financing to move forward. That project included three apartment buildings
totaling 418 units (163 affordable units and 255 senior units), 23K square feet of commercial use, and
a 229-space parking ramp that would be shared to accommodate the development and city
park-and-ride bus service.
- The city purchased the site from Walmart in 2021 for $6.9M using transit funds.
- Wellington Management was the only developer that responded to the RFP issued by the city in
the latter part of 2021. Wellington provided an informal sketch showing two apartment buildings
totaling 411 units, 50K square feet of retail and office use, and a 318-space parking ramp that would
be shared to accommodate the development and city park-and-ride bus service. Wellington never
entered into a purchase agreement. Subsequent to preliminary discussions regarding the amount of
financial assistance the city was willing to provide, Wellington decided to abandon their plans.
- Grading work is scheduled to occur on the site in 2023 to accommodate storm water runoff and
utilize watershed grant funds so the site is more ready for future redevelopment.
- The anticipated needs for the city park-and-ride lot on this site is 100 parking spaces, some of
which could potentially be shared for use by the development.
Cost Analysis:
To date, the city has roughly $7.8M invested into the site. This equates to roughly $650,000 per
usable acre. This compares to a land cost of roughly $302,000 per acre for the recently approved and
close-by Enclave mixed-use development at Nathan Ln/Hwy 169. Given the land cost and
extraordinary development costs related to the poor soils on the Four Seasons site, the city may not
be able to recoup dollar-for-dollar on its investment. For redevelopment to occur, the city may need
to consider increasing the amount of TIF that would go to the developer and/or writing down the
cost of the land. Writing down the cost may involve using public dollars.
Discussion Points:
- Desired Uses: Staff believes the best use of the site would be some type of higher density
residential with commercial/retail components. Ideally, any project would include mixed-use
elements (either vertical or horizontal) and amenities. If there are alternative uses the council
would like to see, it would be helpful to identify those now.
- Development Readiness: One option staff is exploring is to plat the property into development
parcels or outlots that would include adequate land to accommodate stormwater ponding. This
process would expedite future development review since the developable areas would be better
defined.
- Redevelopment Assistance: Given the challenges of the site, staff believes it will be necessary to
use a combination of tools to assist in redevelopment, including tax increment financing, grants,
land write downs and reducing some fees (like park dedication). As part of any land write down, the
city would need to find alternate internal sources to repay the transit fund that advanced dollars for
site acquisition in 2021. Staff would like confirmation that these tools would be available. The
details of any assistance package would need to be negotiated and brought back for council
consideration at a future date.
23
3.Budget Impact:
TBD
4.Attachments:
Aerial Map
24
ROCKFORD RD
L
A
N
C
A
S
T
E
R
L
A
SITE
2019-093 -- Aerial Photograph K400 0 400 800200
Feet
City of
Plymouth, Minnesota 25
Special City
Council
June 13, 2023
Agenda
Number:2.3
To:Dave Callister, City Manager
Prepared by:Jodi Gallup, City Clerk/Administrative Coordinator
Reviewed by:Maria Solano, Deputy City Manager
Item:Set future study sessions
1.Action Requested:
Schedule study sessions and/or add topics as desired. Calendars are attached to assist with
scheduling.
2.Background:
Pending study session topics (at least three council members have approved the following study
items on the list):
- Boards and commissions involvement with council to be scheduled Fall 2023.
- Special assessment policy overview.
Other council requests:
- None at this time.
Staff requests for special meeting topics and/or changes:
- Schedule discussion on Plymouth Ice Center (PIC) 4th sheet of ice on August 8 at 6 p.m.
- Change start time to 6 p.m. for July 25 environmental stewardship discussion
Available study session dates:
- August 8
- September 26
- October 10
- December 12
3.Budget Impact:
N/A
4.Attachments:
June
July
August
September
26
27
SUN MON TUE WED THU FRI SAT
1 2 3
4
5 6 7 8 9 10
11 12 13
14 15 16 17
18 19 20 21
22 23 24
25 26 27
28 29 30
June 2023
3400Plymouth Blvd. Plymouth, MN 55447
763-509-5080 plymouthmn.gov
SUN TUES MON WED THUR FRI SAT
CHANGES ARE NOTED IN RED
5:00 PM SPECIAL COUNCIL MEETING Budget Goals and Accessory Dwelling Units (ADUs) Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers
7:00 PM PLANNING COMMISSION MEETING Council Chambers
6:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers
7:00 PM HOUSING AND
REDEVELOPMENT
AUTHORITY
MEETING
Council Chambers
5:00 PM SPECIAL COUNCIL MEETING Plymouth Destination Marketing Organization (DMO) discussion and Former Four Seasons Mall site discussion Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers
OFFICIAL CITY CALENDAR
7:00 PM PLANNING COMMISSION MEETING
Council Chambers
7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room
JUNETEENTH CITY OFFICES CLOSED
28
SUN MON TUE WED THU FRI SAT
1
2 3 4
5 6
7 8
9 10 11
12
13 14 15
16 17 18
19 20 21 22
23 24 25 26 27 28 29
July 2023
3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov
SUN TUES MON WED THUR FRI SAT
5:00 PM SPECIAL COUNCIL MEETING Environmental Stewardship Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers
INDEPENDENCE DAY CITY OFFICES CLOSED
7:00 PM HOUSING AND
REDEVELOPMENT
AUTHORITY
MEETING
Council Chambers
7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room
7:00 PM PLANNING COMMISSION MEETING Council Chambers
30
31
29
SUN MON TUE WED THU FRI SAT
1 2
3 4 5
6 7 8
9 10
11 12
13 14 15
16
17
18 19
20 21 22
23 24 25 26
27 28 29 30 31
August 2023
3400 Plymouth Boulevard Plymouth, MN 55447 763-509-5080 plymouthmn.gov
SUN TUES MON WED THUR FRI SAT
7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room
7:00 PM PLANNING COMMISSION MEETING Council Chambers
7:00 PM REGULAR COUNCIL MEETING Council Chambers
7:00 PM HOUSING AND
REDEVELOPMENT
AUTHORITY
MEETING
Council Chambers
5:00 PM SPECIAL COUNCIL MEETING Budget discussion Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers
OFFICIAL CITY CALENDAR
7:00 PM PLANNING COMMISSION MEETING Council Chambers
30
SUN MON TUE WED THU FRI SAT
1 2
3 4
5
6 7 8 9
10 11 12
13 14 15 16
17 18 19
20
21 22 23
24 25 26 27 28 29 30
September 2023
3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov
SUN TUES MON WED THUR FRI SAT
CHANGES ARE MADE IN RED
LABOR DAY CITY OFFICES CLOSED
7:00 PM REGULAR COUNCIL MEETING Council Chambers
6:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers
7:00 PM HOUSING AND
REDEVELOPMENT
AUTHORITY
MEETING
Council Chambers
7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room
5:00 PM SPECIAL COUNCIL MEETING Budget discussion Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers
7:00 PM PLANNING COMMISSION MEETING Council Chambers
7:00 PM PLANNING COMMISSION MEETING Council Chambers
31