Present: Maureen Bausch, Rob Buntz, Gabe Castaneda, Randy Gutzmann, Nancy Hanson, Tom Maslowski, Greg Ortale, Lisa Paxton, Ingrid Schneider, Representative Dean Simpson, Representative John Ward

Guests: Kathy O’Connell (Great Clips IMAX), Maureen Scallen (Meet Minneapolis/MACVB)

Explore Minnesota Tourism Staff: John Edman, Leann Kispert, Peggy Lindquist, Michele Peters, Colleen Tollefson, Char Vaughan

Welcome and Introductions: Chair John Edman thanked the members for their attendance and support.  Members were asked to introduce themselves and their affiliation.

Half of the Council members’ terms expired in January 2007.  The following members have resigned as of January 2007:
• Wally Heise
• Shawn Radford
• Tom Whelan
• Shawn Mason

New appointments have not yet been announced.

Even if term has expired, the Council member remains on the Council until the vacancy is filled by the Governor’s Office.

The new legislative appointments are:  Senator Amy Koch, Senator Tom Saxhaug and Representative John Ward.  Representative Dean Simpson remains on the Council.

It was suggested by the Council that a two-term limit should be enforced.

Public Policy Meeting Report – Lisa Paxton: The Public Policy Committee met February 13.  Governor Pawlenty has included an increase in Tourism’s budget.  It is less than the recommendation of the Council.

The Public Policy Task Force addressed what issues they should be considering.  If the issue applies to two industry areas or is a statewide issues, they have agreed to consider.

John Edman presented to the agency overview committee in the Senate and will present to the Heritage Finance Committee meeting next week.

The Public Policy Committee presented the following resolution to the full Council to consider for a motion:

“Whereas it is in the best interests of the people of Minnesota to fund Tourism and thereby bring more tax revenue to the State by a factor of approximately 4.6 x $1 spent, the EMT Council supports the Governor’s Budget Initiative for funding for tourism and reaffirms their recommendation and their goal of $20 million per annum by 2010.”

The motion was made by Lisa Paxton and seconded by Rob Buntz.

Discussion by the Council included the following comments:
• Change “their recommendation” to its’ recommendation”
• Speak positive about any increase
• This is an opportunity for the Council to continue its’ visibility
• EMT cannot promote the $20 million by 2010 because it is not part of the Governor’s budget
• Is this a realistic goal, or is it a set up for failure?

The Resolution will be changed to reflect the requested change of “their recommendation” to “its recommendation.”  With this change, the Council passed the Resolution.

Another motion was presented by Lisa Paxton for the Council to consider motions on resort taxes, tourism loan program, shoreland management and post Labor Day school day starts.  Tom Maslowski seconded the motion.  All Council members agreed to consider the motions.

Discussion on Post Labor Day school start.  The following suggestions were made by the Council:
• School year could extend into June
• Extend the school day
• Eliminate some days off
• By adding 30 minutes per day, that amount is equal to 14 additional days per year

School officials state that it costs the state a minimum of $18 million to add ONE day to school year.

The Public Policy Task Force has agreed to check into other options for the school year in order to pursue the Post Labor Day School Start.

RESOLUTION:
Colleen Tollefson and Lisa Paxton will address the words of the resolution and share with entire Council at a future date.  *NOTE:  These resolutions can be found at the end of the full meeting notes.

The resolutions passed at this Council meeting will be addressed in a press release to legislators and Capitol Press, as well as announced in the EMT Express.

Marketing Campaign Update – Leann Kispert: The new marketing campaign was showcased at the Tourism Conference.  The new website will launch March 22.

The focus of advertising will be electronic and specific.

Television ads will begin on March 26 and run through September.  These spots will run in all Minnesota markets, as well as several other markets in the surrounding states.

Thirty-second radio spots will begin March 19 and run through late July.  These spots are in partnership with the Minnesota Broadcasters Association.

Also partnering with Minnesota Twins Network.  Preseason games are underway and two “live reads” occur during each game.  Once the regular season begins, EMT will have two :30 second ads, and two lives reads during each home game.  There will also be in-stadium advertising and an ad on scorecards.

Other advertising includes ½ page ads in Midwest Living and AAA.  An ad will also appear in Frommer’s Budget Travel.  Will also advertise in the May issue of Golf Digest.

Online advertising and banner ads will be done in cooperation with Minnesota Public Radio.

Two direct mails will be sent in late April.  The first will promote fishing; the second will promote summer fun.

Cooperative advertising will be done with the Chicago Sun Times and USA Today Weekend.  The USA Today Weekend piece will appear April 1 in the Midwest region.  The circulation is 1.9 million.

“My Favorite Minnesota” event is scheduled for March 15 from 6 – 9 pm.  This is a chance to introduce the media to the new EMT public relations plan.

Explore Minnesota Tourism will begin a special collaboration with the Minnesota News Network (a state-wide radio network of approximately 80 stations) on April 2.  This effort will provide EMT with one 60-second radio feature each weekday called the “Explore Minnesota Travel Minute.”

Minnesota will celebrate its Sesquicentennial in 2008.  The Governor held a press conference last week.  An Executive Director has been hired and a communications firm - Weber Shandwick – has volunteered to help.  A $2 million request has been submitted to the legislature for Sesquicentennial promotions.

Clarity Coverdale Fury has completed over one dozen webisodes.  The most recent ones are performing arts and romantic getaways.  Shot snowmobiling and snowboarding this past week.  Upon review of the webisodes, Maureen Bausch suggested that these videos be played at the Mall of America.  MOA will have 100 television screens throughout the Mall.  EMT would need to add “exploreminnesota.com” to display.

The webisodes will continue to be developed.  Working on a contest that would run in May for students to create a webisode.  The grand prize would be the opportunity for the student to star in the next commercial.

The Request for Proposal (RFP) for web hosting has been awarded.  Announcement will be made once proposal has been finalized and signed.

Web enhancement sales are being done internally by EMT staff.  Over $50,000 in enhancements have been sold so far.  A direct mail with more detailed information will be sent in early April.

Plans for Phase II of web development are already underway.  Plan for the golf microsite to be incorporated in to the rest of the site by June.  Other plans being looked at are: Ipod downloads, offering travel packages, more involved trip planner, customized web changes, reservation system.

Legislative Update – Dean Simpson: Committee deadline is April 2.  Went from 22 committees to 36.  There is a big appetite for spending this year.  A tourism increase is in the Governor’s proposal.   Legislators are becoming much more educated on the tourism issues.

There is a real push in the legislature to eliminate the Post Labor Day school start. All consumers and industry people affected by this need to contact their local legislators.

Partnership Grant Program – Colleen Tollefson: The Organizational Grant Partnership grants to non-profit tourism promotion organizations, including both statewide and local organizations, to promote and facilitate increased travel to and within the state of Minnesota.  The grants require that at least 60% of the total project cost be contributed by the organization with up to 40% of the costs paid through the partnership program.  Approximately 10% of the Explore Minnesota Tourism general fund budget is assigned to the Partnership program.  Funding was provided to 93 organizations in 2007.  To date, all 2007 applications have been fully funded.

Winter grant applications are due in May and are for projects that occur between October and March.  They do not need to be winter-related.
A separate Scenic Byways Partnership was also made available.  The scenic byways grants had a cap of $2,500.

Some of the questions that the Council needs to address are:
• Is the goal of increased travel to and within the State valid or should it be revised?
• Currently, the program establishes areas and organizational eligibility and funds those that fall within these categories.  Would it be better to have a competitive funding process (not all organizations are funded, others receive greater funding)?
• Should a funding priority be established for new or innovative programs/projects:

Comments from the Council include:
• Partnership program should not be an entitlement program
• A group of industry representatives who do not receive funding from this program should evaluate the entries
• When submitting consideration for funding, should also have to include projected economic impact
• Guidelines should have an element that inspires innovation
• Funding needs to roll forward if not used
• Requests should be made competitive
• Requests should tie in with EMT’s marketing approach
• These grants mean a lot to small, local groups
• It is a chance to get Minnesota out in the marketplace
• Process needs to be streamlined
• Program needs stronger quality control
• Partnerships should not be status quo.  They should challenge and push the industry.
• Is there an opportunity to produce an industry blog to assist and support each other

RESOLUTION:
“Explore Minnesota Tourism should consider raising its grant base to a higher level.  A two tier program should be explored.”  Greg Ortale motioned to pass this resolution.  Randy Gutzmann seconded the motion.  Resolution passed with all members in favor.

Regional Positioning – Colleen Tollefson: A Quad Regional meeting is scheduled on March 16.  Currently, regions are labeled “NorthCentral West,” “Northeastern” etc.  These labels have little impact to a traveler who does not know the state. Discussion will be held on how to best market the different areas/subregions in the state.  Council suggested that Clarity Coverdale Fury or Davidson Peterson do some type of research to address.

Davidson Peterson Studies – John Edman: Davidson Peterson completed a year-long study of economic impact and traveler profile.  Last year, the Council recommended that this year be skipped and do study every other year.   It is time to look for partners and prepare RFP.

Scenic Byways – Colleen Tollefson: There were eight recipients for the scenic byways grant program.

Scenic Byways site has geocoding functions.  This was funded through a federal grant.  It is the hope to use this feature in the future on the entire exploreminnesota.com website.

Current federal grant will be used for on-the-road technology.  This grant is for $50,000.  Submitted a new grant request for $90,000 to continue this project to develop podcasts on the byways.

New Scenic Byway brochures will be printed with a two-year distribution plan.

Working with MnDOT on new highway map.  The back panel will be used for scenic byway information.

Strategic Planning Discussion – John Edman: The Council is needed to address and focus on the overall strategic plan of the office.  The next full Council meeting will be held June 12 and 13.  Strategic plan is the agenda of this Council meeting.

Weather Implications on Tourism – Colleen Tollefson: A drought task force meeting was held recently.  The tourism effect on the drought is the potential of wildfires due to the low precipitation this winter.  There is a need to keep people informed, but must not let perception of the situation override the reality of the situation.

Meeting adjourned.

*At the March 9, 2007 Explore Minnesota Tourism Council meeting, the followings resolutions were passed:

• To recommend an increase in the values for the first tier of class 1c resorts to $1 million;

Rapid property value increases have a significant impact on the ability of small homestead resorts to remain viable.  The Legislature has responded to this by making a significant shift in property tax policy for homestead resorts.  The current system allows for reduced tax rates on the value of the homestead resort in three tiers.  Present efforts are to increase the amount of homestead resort value in the first tier from $500,000 to $1,000,000.  (H.F. 969/S.F. 1594)

• To support the preemption of local zoning to eliminate varied approaches to resort related shoreland management issues throughout the state, specifically to:
o Rebuild and maintain structures at the resort, including in the shore impact zone;
o Expand minimally (no closer to the lake) to meet code requirements; and,
o Clarify that a change of ownership does not constitute a change of “use” for zoning purposes.

Currently, zoning issues may be addressed at the municipal, township or county level, leading to varied responses to the same issue throughout the state.  Efforts to control shoreline have placed pressures on small resort properties to sell.  Some restrictions on resorts are so severe that a resort owner cannot repair storm, fire or other damage.  Code requirements, including ADA and Department of Health requirements, can be in conflict with existing zoning restrictions.  A consistent, statewide policy that allows resort properties to maintain, repair, replace and grow is needed.  (H.F. 849/S.F. 961)

• To support reinstatement of the tourism loan program if funds are available;

During 1990-2003, the Tourism Loan Program made 208 loans to 170 different customers.  The loan program has been a business asset to a great number of lodging properties.  In addition to the favorable interest rate, the program also includes business planning benefits.  The program is no longer capitalized and existing loan repayments are returned to the general fund.

• To continue to support the post Labor Day school start and explore other options to address educational needs:

Increased learning outcomes are compatible with Minnesota’s traditions of summer.  There are many reforms proposed for K-12 education; all day-every day kindergarten, longer school days, increasing the number of education days per year, and many more.  Reforms that compliment students, families and the many businesses that depend on the school calendar can be accomplished.  A change in current law regarding the start of the school year is not necessary to make progressive change in Minnesota’s educational outcomes.  (H.F. 482, H.F. 510/S.F. 465, S.F. 381)

• Whereas it is in the best interest of the people of Minnesota to fund Tourism and thereby bring more tax revenue to the State by a factor of approximately 4.6 x each $1 spent, the EMT Council supports the Governor’s Budget Initiative for funding for tourism and re-affirms its recommendation and goal of $20 million per annum by 2010.

Currently, Minnesota tourism has slipped from 25th to 29th in overall U.S. state tourism budgets.  Minnesota is being severely outspent by many of our competitors.  The Council has established a goal of significantly increased funding to market Minnesota tourism ($20 million per annum by 2010).  Increased funding would be used for increased marketing.  The Governor has recommended an increase in the tourism budget, starting with a base of $9.7 million and providing up to a $1 million incentive fund in FY08 and up to a $2 million incentive fund in FY09.  (H.F. 851/S.F. 797)