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HomeMy WebLinkAbout3D. Economic Development� Cottage � Grove /(/;, \'t05perity Meetere Pride an° Meeting Date 7/27/2022 Department Administration Agenda Category Agenda Item City Council Action Request 3D Title Economic Development Staff Recommendation Budget Implication Attachments Based on Discussion Economic Development Authority Comparison Report Convention and Visitors Bureau Comparison Report Convention and Visitors Bureau Annual Report 7/22/2022 11:55:26 AM Page 1 of 3 Budget Comparison Report Cottage Grove Group Summary Objec… 2020 Total Activity 2021 Total Activity 2022 YTD Activity Through Jul 2022 2022 2023 2023 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2024 2024 FALL 2022 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) Revenue Category: 3010 - PROPERTY TAXES 3011 - CURRENT PROP TAX 0.00%0.00%125,000.00125,000.00 0.00 125,000.00 0.0064,976.80124,709.54124,826.04 3012 - DEL PROP TAXES 0.00%0.00%0.000.00 0.00 0.00 0.00391.66219.77479.26 Total Category: 3010 - PROPERTY TAXES:125,000.0065,368.46 125,000.00 0.00 0.00%125,000.00 0.00 0.00%124,929.31125,305.30 Category: 3809 - INVESTMENT INTEREST 3809 - INTERFUND INTRST 0.00%0.00%0.000.00 0.00 0.00 0.00214.06599.57805.16 3810 - INVEST INTEREST 0.00%0.00%0.000.00 0.00 0.00 0.000.00-2,471.038,448.22 Total Category: 3809 - INVESTMENT INTEREST:0.00214.06 0.00 0.00 0.00%0.00 0.00 0.00%-1,871.469,253.38 Category: 3812 - MISCELLANEOUS 3812 - DONATE & CONTRI 0.00%0.00%0.000.00 0.00 0.00 0.000.000.000.00 3816 - REFUND & REIMBRS 0.00%0.00%0.000.00 0.00 0.00 0.004,000.000.000.00 3829 - MISC - OTHER 0.00%0.00%0.000.00 0.00 0.00 0.000.000.000.00 Total Category: 3812 - MISCELLANEOUS:0.004,000.00 0.00 0.00 0.00%0.00 0.00 0.00%0.000.00 Category: 3999 - TRANSFERS IN 3899 - TRANSFER IN 0.00%0.00%100,000.00100,000.00 0.00 100,000.00 0.0058,333.3575,000.0075,000.00 Total Category: 3999 - TRANSFERS IN:100,000.0058,333.35 100,000.00 0.00 0.00%100,000.00 0.00 0.00%75,000.0075,000.00 Total Revenue:225,000.00127,915.87 225,000.00 0.00 0.00%225,000.00 0.00 0.00%198,057.85209,558.68 Expense Category: 4100 - PERSONAL SERVICES 4100 - SALARY-FULL TIME 17.04%4.51%157,425.00134,510.00 22,915.00 164,525.00 7,100.0060,174.44134,566.81163,099.35 4141 - PERA 16.70%4.88%11,775.0010,090.00 1,685.00 12,350.00 575.004,513.089,999.4212,592.32 4142 - FICA 16.62%4.79%12,000.0010,290.00 1,710.00 12,575.00 575.004,261.489,643.5211,907.37 4144 - HEALTH INSURANCE 106.37%10.34%16,200.007,850.00 8,350.00 17,875.00 1,675.004,579.1912,075.0025,599.96 4148 - WORKERS COMP 4.84%0.00%1,300.001,240.00 60.00 1,300.00 0.00723.31990.00990.00 Total Category: 4100 - PERSONAL SERVICES:198,700.0074,251.50 163,980.00 34,720.00 21.17%208,625.00 9,925.00 4.99%167,274.75214,189.00 Category: 4200 - COMMODITIES 4200 - OFFICE SUPPLIES 2.44%4.76%210.00205.00 5.00 220.00 10.000.00331.4827.50 4210 - OP SUPPLY-OTHER 2.96%3.06%2,780.002,700.00 80.00 2,865.00 85.00507.171,327.87225.00 Total Category: 4200 - COMMODITIES:2,990.00507.17 2,905.00 85.00 2.93%3,085.00 95.00 3.18%1,659.35252.50 EDA Fund without CVB Budget Comparison Report 7/22/2022 11:55:26 AM Page 2 of 3 Objec… 2020 Total Activity 2021 Total Activity 2022 YTD Activity Through Jul 2022 2022 2023 2023 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2024 2024 FALL 2022 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) Category: 4300 - CONTRACTUAL SERVICES 4300 - PROF SERVICES 2.99%3.00%50,000.0048,550.00 1,450.00 51,500.00 1,500.004,518.5912,276.2633,043.91 4301 - ENGINEERING SVS 3.02%2.98%9,550.009,270.00 280.00 9,835.00 285.0015,246.5060,132.00124,813.51 4302 - LEGAL SERVICE 3.39%2.59%5,800.005,610.00 190.00 5,950.00 150.0012,400.395,475.1311,294.81 4305 - FEES FOR SERVICE 3.00%3.00%103,000.00100,000.00 3,000.00 106,090.00 3,090.006,260.73135,595.0016,475.00 4310 - COMMUNICATION 2.27%3.89%900.00880.00 20.00 935.00 35.00495.00540.00850.00 4321 - DATA PROCESSING 173.64%5.98%30,100.0011,000.00 19,100.00 31,900.00 1,800.006,416.6910,929.967,440.00 4340 - PRINTING 0.00%0.00%0.000.00 0.00 0.00 0.000.00107.000.00 4341 - ADVER/PUBLISH 2.94%3.05%5,250.005,100.00 150.00 5,410.00 160.007,164.051,346.542,544.82 4350 - INSURANCE CHARGE 2.88%2.80%1,070.001,040.00 30.00 1,100.00 30.00606.69999.96999.96 4401 - DUES & SUBS 3.02%3.01%11,445.0011,110.00 335.00 11,790.00 345.004,761.006,736.435,691.90 4403 - TRAVEL/TRAIN/CON 3.00%3.00%47,330.0045,950.00 1,380.00 48,750.00 1,420.004,199.40376.414,340.27 4407 - PROPERTY TAXES 2.94%3.07%9,450.009,180.00 270.00 9,740.00 290.007,865.946,417.177,580.39 4434 - SPECIAL EVENTS 3.02%2.98%63,050.0061,200.00 1,850.00 64,930.00 1,880.0023,967.8925,375.0622,693.34 Total Category: 4300 - CONTRACTUAL SERVICES:336,945.0093,902.87 308,890.00 28,055.00 9.08%347,930.00 10,985.00 3.26%266,306.92237,767.91 Category: 4730 - MISCELLANEOUS 4732 - LOSS-FIXED ASSET 0.00%0.00%0.000.00 0.00 0.00 0.000.00182,418.170.00 Total Category: 4730 - MISCELLANEOUS:0.000.00 0.00 0.00 0.00%0.00 0.00 0.00%182,418.170.00 Total Expense:538,635.00168,661.54 475,775.00 62,860.00 13.21%559,640.00 21,005.00 3.90%617,659.19452,209.41 Report Total:25.07%6.70%-313,635.00-40,745.67 -250,775.00 -62,860.00 -334,640.00 -21,005.00-419,601.34-242,650.73 Budget Comparison Report 7/22/2022 11:55:26 AM Page 3 of 3 Fund Summary Fund 2020 Total Activity 2021 Total Activity 2022 YTD Activity Through Jul 2022 2022 2023 2023 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2024 2024 FALL 2022 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) 285 - ECONOMIC DEVELOPMENT AUTHORITY -313,635.00-40,745.67 -250,775.00 -62,860.00 25.07%-334,640.00 -21,005.00 6.70%-419,601.34-242,650.73 Report Total:25.07%6.70%-313,635.00-40,745.67 -250,775.00 -62,860.00 -334,640.00 -21,005.00-419,601.34-242,650.73 TO: Honorable Mayor and City Council FROM: Jennifer Levitt, City Administrator DATE: July 27, 2022 RE: Economic Development Levy Staff has reviewed the steps, process and values related to an EDA levy. We wanted to ensure we understood the process and options, if Council wanted to increase the levy for operations (staffing) and potentially off-set the loan to River Oaks for the golf course improvements. We also know the LSP dollars have diminished from approximately $350K to $150K and will likely stay at the $150K level for the foreseeable future. Therefore, we want to make sure we have sufficient funding to support future economic development projects and provide the Council with options. Our research found that: • No other city in Washington County levies for an EDA levy. • Woodbury does a HRA Levy at $250,000. • South Saint Paul at $340,084 (they are at the maximum amount based on their taxable market value) • Burnsville at $297,500. • West St. Paul does an EDA and HRA levy. Based on our estimated taxable market value of $5,306,706,800, our maximum amount would be $962,000 for a levy. NOTE: We cannot exceed .01815% of the estimated market value based on State Statute. We have confirmed with Washington County on the levy calculation and interpretation of State Statute. The Finance Director has run an analysis to show the impact on residences and business should the levy be increased to $350K. On the residential side, the average homeowner would see an increase of $18 annually. For businesses there would be an average increase of $172 annually. However, even with an increase in the levy, most businesses will see their taxes lowered in 2023 over 2022, because there was no change in their valuations from 2022. In doing the comparison on the commercial side, the $172 average is higher in comparison to what most businesses will pay which is approximately $35 annually when the larger business, with a higher-than-average value, is not included in the calculations. Should the Council choose to increase the levy to $350K or some lesser amount, the following steps would need to take place to do so. Steps to adopt an EDA levy provided by the City Attorney: 1. EDA requests the City to impose an EDA levy in an amount not to exceed 0.01813% of estimated market value. 2. City Council passes a resolution stating the proposed amount of the levy. 3. City publishes the resolution together with a notice of public hearing for 2 successive weeks for a hearing which must be held between 2-4 weeks after the first publication. 4. City Council adopts a resolution authorizing the levy. 5. That resolution must be published and is not effective for 30 days. 6. The levy would be included in the City of Cottage Grove line item on the property taxes. In either case, the EDA Trust Fund would need to provide the subsidy to the EDA Fund to support operations. Recommendation Provide feedback on the possibility of increasing the economic development levy from the current level of $125K per year to a proposed level of $350K or decreasing expenditures from the fund. 2023 EDA Levy 2023 Proposed EDA Levy Revenue $125,000.00 $350,000.00 Transfer In $100,000.00 $100,000.00 Total Revenue $225,000.00 $450,000.00 Expenses Personnel $198,700.00 $198,700.00 Commodities $2,990.00 $2,990.00 Contractual Services $336,945.00 $336,945.00 Total $538,635.00 $538,635.00 Deficit ($313,635.00)($88,635.00) EDA Trust Balance $3,631,747.00 7/22/2022 11:56:11 AM Page 1 of 3 Budget Comparison Report Cottage Grove Group Summary Objec… 2020 Total Activity 2021 Total Activity 2022 YTD Activity Through Jul 2022 2022 2023 2023 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2024 2024 FALL 2022 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) Revenue Category: 3310 - INTERGOVERNMENTAL 3310 - FEDERAL GRANTS 0.00%-22.74%76,200.000.00 76,200.00 58,871.00 -17,329.0068,590.0032,690.000.00 3324 - STATE GRANTS -100.00%0.00%0.0066,175.00 -66,175.00 0.00 0.000.002,250.000.00 3349 - COUNTY AID 0.00%0.00%0.000.00 0.00 0.00 0.000.000.0014,978.00 Total Category: 3310 - INTERGOVERNMENTAL:76,200.0068,590.00 66,175.00 10,025.00 15.15%58,871.00 -17,329.00 -22.74%34,940.0014,978.00 Category: 3400 - CHARGES FOR SERVICES 3574 - ADVERTISING SALES 0.00%0.00%6,290.000.00 6,290.00 6,290.00 0.006,290.000.000.00 Total Category: 3400 - CHARGES FOR SERVICES:6,290.006,290.00 0.00 6,290.00 0.00%6,290.00 0.00 0.00%0.000.00 Category: 3812 - MISCELLANEOUS 3816 - REFUND & REIMBRS 0.00%0.00%0.000.00 0.00 0.00 0.0058.000.000.00 3840 - LODGING TAX 0.00%0.00%66,350.0066,350.00 0.00 66,350.00 0.0022,977.2457,987.1229,757.94 Total Category: 3812 - MISCELLANEOUS:66,350.0023,035.24 66,350.00 0.00 0.00%66,350.00 0.00 0.00%57,987.1229,757.94 Total Revenue:148,840.0097,915.24 132,525.00 16,315.00 12.31%131,511.00 -17,329.00 -11.64%92,927.1244,735.94 Expense Category: 4100 - PERSONAL SERVICES 4100 - SALARY-FULL TIME -12.81%4.56%59,175.0067,870.00 -8,695.00 61,875.00 2,700.0027,377.400.000.00 4141 - PERA -13.06%5.08%4,425.005,090.00 -665.00 4,650.00 225.002,053.240.000.00 4142 - FICA -13.29%5.00%4,500.005,190.00 -690.00 4,725.00 225.002,019.650.000.00 4144 - HEALTH INSURANCE 3.18%10.19%8,100.007,850.00 250.00 8,925.00 825.004,579.190.000.00 Total Category: 4100 - PERSONAL SERVICES:76,200.0036,029.48 86,000.00 -9,800.00 -11.40%80,175.00 3,975.00 5.22%0.000.00 Category: 4200 - COMMODITIES 4200 - OFFICE SUPPLIES 2.44%3.57%420.00410.00 10.00 435.00 15.00167.3888.000.00 4210 - OP SUPPLY-OTHER 0.00%10.00%500.000.00 500.00 550.00 50.003,065.820.000.00 Total Category: 4200 - COMMODITIES:920.003,233.20 410.00 510.00 124.39%985.00 65.00 7.07%88.000.00 Category: 4300 - CONTRACTUAL SERVICES 4300 - PROF SERVICES -26.71%2.34%20,520.0028,000.00 -7,480.00 21,000.00 480.00378.7430,155.576,361.50 4302 - LEGAL SERVICE 0.00%0.00%0.000.00 0.00 0.00 0.000.00698.80605.50 4305 - FEES FOR SERVICE -42.72%-63.68%4,130.007,210.00 -3,080.00 1,500.00 -2,630.00451.749,220.909,819.99 4311 - POSTAGE 3.26%2.74%475.00460.00 15.00 488.00 13.00125.400.000.00 4340 - PRINTING 2,582.93%3.00%11,000.00410.00 10,590.00 11,330.00 330.0010,551.00186.000.00 CVB Budget without EDA Budget Comparison Report 7/22/2022 11:56:11 AM Page 2 of 3 Objec… 2020 Total Activity 2021 Total Activity 2022 YTD Activity Through Jul 2022 2022 2023 2023 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2024 2024 FALL 2022 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) 4341 - ADVER/PUBLISH 3.01%2.99%29,050.0028,200.00 850.00 29,920.00 870.0011,226.268,840.952,000.00 4401 - DUES & SUBS -16.67%0.00%325.00390.00 -65.00 325.00 0.00325.00325.000.00 4403 - TRAVEL/TRAIN/CON 300.00%0.00%1,500.00375.00 1,125.00 1,500.00 0.0039.14188.200.00 4434 - SPECIAL EVENTS 0.00%0.00%3,000.000.00 3,000.00 3,000.00 0.0012,701.760.000.00 Total Category: 4300 - CONTRACTUAL SERVICES:70,000.0035,799.04 65,045.00 4,955.00 7.62%69,063.00 -937.00 -1.34%49,615.4218,786.99 Total Expense:147,120.0075,061.72 151,455.00 -4,335.00 -2.86%150,223.00 3,103.00 2.11%49,703.4218,786.99 Report Total:-109.09%-1,187.91%1,720.0022,853.52 -18,930.00 20,650.00 -18,712.00 -20,432.0043,223.7025,948.95 Budget Comparison Report 7/22/2022 11:56:11 AM Page 3 of 3 Fund Summary Fund 2020 Total Activity 2021 Total Activity 2022 YTD Activity Through Jul 2022 2022 2023 2023 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2024 2024 FALL 2022 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) 285 - ECONOMIC DEVELOPMENT AUTHORITY 1,720.0022,853.52 -18,930.00 20,650.00 -109.09%-18,712.00 -20,432.00 -1,187.91%43,223.7025,948.95 Report Total:-109.09%-1,187.91%1,720.0022,853.52 -18,930.00 20,650.00 -18,712.00 -20,432.0043,223.7025,948.95 Cottage Grove Convention & Visitors Bureau 2021 Annual Report Board of Directors convention & visitors bureau Overview The Convention and Visitors Bureau (CVB) markets and promotes Cottage Grove as a year-round visitor destination, working in partnership with industries, corporate partners, state partners, city departments and regional destination marketing organizations. The CVB serves as the primary marketing organization responsible for the development and implementation of promotional programs to ensure positive economic impact in Cottage Grove through steady growth of the travel industry. Mission The CVB’s mission is to promote Cottage Grove as a premier destination for leisure travelers, weddings, and outdoor enthusiasts, a recognized and successful host city for meetings and conventions, and a prominent and respected venue for sporting events. Staff Steve Dennis, Chair Justin Olsen, Vice Chair Laurie Levine, Director Roshan Patel, Director Christine Costello, Director Taylor Bengtson, Administration Specialist May-Dec. 2021 Jaime Mann, Assistant to the City Administrator Aug. -Dec., 2021 Julie Prior-Miller, Marketing and Communications Specialist July-Dec., 2021 Matt Wolf, Assistant to the City Administrator Jan.-July, 2021 Jennifer Levitt, City Administrator Message from the Convention and Visitors Bureau Chair I am excited to share that the CVB had a successful year promoting Cottage Grove as a year-round visitor destination. We w orked with industries, corporate partners, state partners, city departments and regional destination marketing organizations to showcase the city and ensure positive economic impact in Cottage Grove through the steady growth of tourism. COVID-19 still played a significant role in our world last year. We knew travel and hotel stays would continue to be down worldwide so the CVB laser-focused on bringing people to Cottage Grove for one-day outdoor events and activities. We launched successful ad campaigns for the bike park and our Halloween events, both of which brought in visitors from around the area who visited our retail establishments and restaurants. We continued promoting City events, activities, restaurants and retail opportunities using a multi- faceted approach that included social media advertising, website content, blog posts, videos, photos and creative partnerships. A major focal point of our efforts in 2021 was the 2022 Cottage Grove Visitors Guide. I’m especially proud of this first-ever creation, a 36-page guide that showcases the opportunities for visitors and travelers to discover our unique city. Even if you have lived here your entire life, I am willing to bet you’d find a hidden gem in the Visitors Guide that you never knew existed. We will continue forming relationships with businesses in town. A successful partnership and two-way dialogue are critical to our mission, which is: • Promoting Cottage Grove as a premier destination for leisure travelers, weddings and outdoor enthusiasts. • Ensuring Cottage Grove is a recognized and successful host city for meetings and conventions. • Establishing the city as a prominent and respected venue for sporting events.  To gether, we weathered innumerable challenges, many of which are highlighted in this report and appear alongside the creative solutions and strategies implemented to continue growing tourism. I look forward to 2022 as we continue to discover Cottage Grove. Steve Dennis, Chair of the Cottage Grove CVB 4 | Cottage Grove Convention and Visitors Bureau Accomplishments Visitors Guide Ads Quantitative • 11 total ads in guide • $6,035 in revenue Qualitative • Obtained pricing for ads by comparing with others locally. • Created an ad spec sheet laying out information for potential advertisers. • Connected with local businesses and began to form relationships of trust and mutual benefit. Developing the “first” of anything is a massive undertaking, but the creation of the first Cottage Grove Visitors Guide is exactly what the CVB board intended to do when it first set out. The 36-page guide represents the opportunities for visitors and travelers alike to discover our unique city. From lodging facilities, outdoor parks and recreation, events, meeting venues and more, there’s something inside for everyone. Flipping through the pages is truly a reminder of what people who live here already know: The City is a special place to live, work and play. Quantitative • First publication of its kind for Cottage Grove. • 36 pages full of amenities, activities and information about Cottage Grove. • The online/digital guide is an elevated version of the printed piece, including five videos and 63 links driving traffic to local businesses and the Discover Cottage Grove website. Qualitative • In-house production providing creative direction, control, cost savings and proofing. • Connected with local businesses to form and expand partnerships. 2022 Visitors Guide 2021 Annual Report | 5 Accomplishments Accomplishments The CVB worked with South Washington County Telecommunications Commission (SWCTC) to produce three promotional videos to highlight the City’s unique amenities and offerings. In addition, a “Discover Cottage Grove” playlist is now on the City’s YouTube channel. Videos Discover Cottage Grove Website • Launched Dec. 18, 2020. • Began updating events page with current and upcoming events in the summer of 2021. • Pages added: • A blog page that highlights and markets the unique and diverse offerings in Cottage Grove. • A maps page that includes links to view our bike trails, parks and paths and snowmobiling trails. • A landing page with an embedded online version of the Visitors Guide with a form for potential visitors to fill out to receive a hard- copy edition. • Addition of businesses and other various items/ edits. • Boondocks Vintage Boutique • Cottage Grove Ice Arena • Cottage Grove Ravine Regional Park • Dodge Nature Center • HERO Center • Strawberry Festival • VFW Quantitative Total website visits: 16,300 Cottage Grove Bike Park River Oaks’ annual Santa Breakfast Cottage Grove’s all-inclusive Woodridge Park Website 6 | Cottage Grove Convention and Visitors Bureau Photos Working with professional photographers and businesses not only allows us to form relationships within our community and business sector, it allows us to extend our reach with the best talent available highlighting Cottage Grove’s beautiful and unique amenities at little to no cost to us. Goals of Photos • High-quality, clear images • Displaying authenticity • Highlighting diversity • Race • Gender • Age • Ability • Active shots • Visually engaging • Showcasing Cottage Grove in a positive light Contract Work With Photographers • Nathan Klok • Four photos for use in guide and for promotional materials. • Sievers Creative • All-day photo shoot around Cottage Grove with models to add to our photo library. • Tessa Soukup Photography • Winter wedding photos at River Oaks to use for promotional materials. Nathan Klok (four photos) Sievers Creative (small sampling) Tessa Soukup Photography (small sampling) Accomplishments 2021 Annual Report | 7 Photos Photos In-House Photos •Afton Apple Orchard • Basketball court • Bike Park • City Hall Tree Lighting • Cottage Grove Farmer’s Market • Hale to the Bird 5K • LaMar Park • Monster Bash Parade • Oakwood Park • Pumpkin Chuck • River Oaks Golf Course and Event Center • Santa Breakfast at River Oaks • Whistling Well Farm • Woodridge Park Professional Photographer Photos and Photos From Businesses • Canadian Pacific Railway • C&C Photography • Eric Vest Photography • Highway 61 Haunting Experience • Jeannine Marie • Tessa June Photography • Beyond the Pines Photography • Whitney Abrahamson • Shane Long Photography Discover Cottage Grove’s Photos (small sampling) Photographers and businesses (sampling) Accomplishments 8 | Cottage Grove Convention and Visitors Bureau Social Media Twitter Stats July 27-Dec. 31, 2021 Quantitative • 41 tweets • 16 followers Accomplishments Instagram Stats July 27-Dec. 31, 2021 Quantitative • 4 reels • 2 videos • 5 tags • 68 posts • 5 highlights • 184 followers Qualitative • Promoted businesses within Cottage Grove by re-posting social media stories. • Connected with social media influencers. • Influencers, individuals and businesses share our information and helped broaden our reach. • Sought out and connected to photographers for inclusion in the Visitors Guide. Facebook Stats Jan. 28-Dec. 31, 2021 Quantitative • 416,614 people reached • 43,018 engagements • 17,413 link clicks • 480 comments • 422 shares • 682 followers Qualitative • Sought out and connected to photographers for inclusion in the Visitors Guide. • Connected to local businesses and marketing teams to establish professional relationships (Zywiec’s, Furber Farm, Dodge Nature Center). Effective social media plays a key role in building our brand and bringing people to Cottage Grove. The interactive and visual nature of Facebook, Twitter and Instagram all provide powerful opportunities for people to engage and experience Cottage Grove through video and photos. Giving potential visitors a first-hand look at the City’s restaurants, parks, recreational opportunities, wedding venues and other offerings has been incredibly effective. We’ve reached thousands of people and shown them all the City has to offer. We’ve helped promote businesses through newly created partnerships. The best part? We have had fun doing it — and our followers have also been enjoying the ride. #winning 2021 Annual Report | 9 Accomplishments Quantitative • Ad impressions for 2021: 1,404,806 • Ad engagements: 42,819 • Website traffic directly as a result of the social media ad campaigns: 12,702 visits out of 16,300 total visits. Top Performing Social Ad Campaign Cottage Grove Bike Park • Impressions: 760,249 • Clicks: 20,160 (2.65%) • “Good” industry average: 1% Social Media Ad Campaigns Top Performing Video Cottage Grove Bike Park • Minutes viewed: 981 • 3-second video views: 1,804 • Engagement: 154 • Shares: 18 • Reactions: 125 • Comments: 12 The top performer of all social campaigns this year; The “Discover Our Bike Park” video, created by SWCTC, ran for just under one month from Sept. 29-Oct. 23. Not only does effective social media play a key role in building our brand, but effective social media ad campaigns reach new users, target specific audiences, increases brand visibility and — at a relatively low-cost helps to increase sign ups and lead generation. Some advantages of marketing through social media ads as opposed to “traditional” ads include the fact that social ads allow more actions than conventional online advertising. Not only can people click where to go, they can also “like” and “share” without costing the advertiser anything extra. This also plays into another benefit social ads provide — when users see their contacts have interacted with a post, click rates increase and readers consider the ad to be less intrusive. 10 | Cottage Grove Convention and Visitors Bureau Accomplishments Effectively marketing the City and showcasing it as a recreation, retail and meeting destination requires a multi-faceted approach. Social media, the Visitors Guide and the website are important pieces of the puzzle that are supplemented by other initiatives such as the Discover Cottage Grove blog, a monthly e-newsletter, advertising and other promotional pieces. Discover Cottage Grove Blog • Created and added to website. • 8 blog posts for 2021 from August-December. • Highlights Cottage Grove amenities, businesses and upcoming events. Discover Cottage Grove Monthly Newsletter • August – 32% open rate, 2% clicks • September – 39% open rate, 6% clicks • October – 38% open rate, 5% clicks • November – 36% open rate, 5% clicks • December – 39% open rate, 6% clicks • Total subscribers: 570 • “Good” email open rate by industry standards is: 15-20% Miscellaneous • Advertised with “Have Fun Biking” • Created: • Letterhead and envelopes • Letter to advertisers • Ad sales flyer • Stencils for parks and trails Explore Minnesota Account • Updating events to a broader audience • 3,917 total page views since 2/4/21 • 681 total referrals since 2/4/21 Communications/Marketing 2021 Annual Report | 11 Accomplishments Explore Minnesota Recovery Grant The FY2022 Recovery Grant Program is funded by a one-time $750,000 appropriation from the Minnesota Legislature and is administered by Explore Minnesota for the purpose of aiding immediate economic recovery of Minnesota’s tourism industry. In September, Marketing and Communications Specialist Julie Prior-Miller submitted a request for $10,000 for assistance through the Explore Minnesota FY2022 Recovery Grant Program, which was awarded. Total reimbursement costs will be $10,000 if all funds are used. This grant does not require matching funds. The grant revenue will be applied to the third quarter of the Visitor’s Bureau 2022 budget and the expenses will be applied in the first and second quarters of 2022. Affiliate Welcome Center Program Many community welcome centers across the state are designated as Explore Minnesota Affiliates. Explore Minnesota allows these centers to use the Explore Minnesota logo on signs and state travel brochures to distribute to visitors. Affiliate locations are included in Explore Minnesota publications and online at exploreminnesota.com. The program provides standardized information for “on-the-road” travelers and increases the economic benefits to the state and its communities. Benefits of the program to participating communities include access to state maps, use of the Explore Minnesota Tourism logo in signing, and geographically incorporating Explore Minnesota Affiliate Welcome Center locations on Explore Minnesota Tourism publications and websites to increase visitor awareness. In September, Administration Intern Taylor Bengtson applied and was awarded an Explore Minnesota Affiliate Welcome Center location; the Cottage Grove Ice Arena. Dee Schutte Memorial Scholarship Application Marketing and Communications Specialist Julie Prior-Miller received a scholarship award from the Minnesota Association of Convention and Visitors Bureaus to attend their fall annual conference. 2020-2021 Crisis Marketing Grants Assistant to the City Administrator Matt Wolf, submitted a request that was awarded for $1,250 through the Crisis Marketing Grant. Dollars used were to complete a photography session with Sievers Creative, including drone photography and videography. Grants 12 | Cottage Grove Convention and Visitors Bureau Accomplishments Budget Highlights Revenue: • Budgeted revenue = $44,232 • Total 2021 revenue = $59,987 Revenue Breakdown: • State grant: $1,000 from Explore Minnesota Tourism Crisis Marketing Grant • Lodging Tax: $59,987 Q1 • Budgeted: $11,058 • Actual: $9,468 -14.4% Q2 • Budgeted: $11,058 • Actual: $16,077 45.4% Q3 • Budgeted: $11,058 • Actual: $19,680 78.0% Q4 • Budgeted: $11,058 • Actual: $14,763 33.5% Overall • Budgeted: $44,232 • Actual: $59,987 35.6% Expenses: • Budgeted expenses = $44,582.60 • Total 2021 expenses = $49,703.42 Expense Breakdown: • Marketing expenses • Budgeted: $23,448 • Actual: $22,396.35 • Operations Expenses • Budgeted: $2,105 • Actual: $1,711.07 • EDA Trust/Chamber Payback Expenses • Budgeted: $6,408 • Actual: $6,408 • Administration fee (5% of lodging tax + 25% City contractual services) • Budgeted: $12,711.60 • Actual: $19,188 2021 Annual Report | 13 Accomplishments Visitors Guide // Visitors Guide Ads • Engage with the community, businesses and local partners to see if anything was missed or excluded in the 2022 Visitors Guide they would like to see moving forward. • Review online performance metrics of 2022 guide and adjust/modify marketing techniques as necessary for the distribution of the 2023 guide. • Consider additional testimonial statements for inclusion in the 2023 Visitors Guide. • Consider the impact of additional advertisers in the 2023 Visitors Guide and conduct a cost- benefit analysis based on revenue from ads, cost of additional pages, and if we are able to fill additional pages with content. Website • Lower website bounce rate. • Add more photos of people. • Keep the business directory up to date. Photos and Videos • Increase photo and video library of local events, businesses, restaurants, people in the community, parks, food and more. • Obtain photos of the 2022 Strawberry Fest. • Partner with SWCTC for video footage of outdoor winter activities such as snowshoeing, cross country skiing, ice fishing and snowmobiling. • Partner with SWCTC to obtain video footage of Hale to the Bird 5K, disc golf, the splash pad, skate park and bike park footage aimed toward adults. • Partner with SWCTC to create a 30-60 second Discover Cottage Grove promo video. Social Media // Social Media Ad Campaigns • Grow followers on each social platform by staying regularly active. This will include frequent posting, creating stories or reels, sharing information, tagging, partnering with influencers and more. • Work with Sievers Creative to distribute two different social media ad campaigns per month or on an as-needed basis depending on performance metrics. • Review/analyze data and metrics at various points in the year to re-adjust marketing tactics as needed. • Partner with social media influencers/micro- influencers to gain additional audience reach through testimony. Looking Ahead With an updated website, a Visitors Guide for distribution, healthy activity and followers on social media, and consistent marketing and promotion, the CVB has laid a solid foundation to launch from. As we move forward into the next year, it is important to ensure that base holds steady and we continue to strive for new and creative ways to promote the City of Cottage Grove, its lodging facilities, meeting venues and considerable amenities, including the CVB. Goals 14 | Cottage Grove Convention and Visitors Bureau Goals Communications/Marketing • Grow subscriber list of monthly emails. • Continue blog post production to increase traffic to the website, audience reach and business promotion. • Continue creative and impactful marketing for Cottage Grove and the CVB. • Build out the CVB page for the Cottage Grove Explore Minnesota account. Include photos, bio, social accounts, etc. Be a Service to Local Businesses • Launch a monthly email to business subscribers to inform them of upcoming large-scale events and activities. • Reach out to businesses with letters, in-person visits and phone calls to offer event and activity marketing and advertising. • Create a small business map for the City of Cottage Grove and marketing campaign centered around shopping local and Small Business Saturday. • Continue to look for creative and impactful ways to help area businesses. CVB Board • Fill empty board positions so the CVB can operate at full capacity and full leadership. Partnerships • Partner with the Cottage Grove Athletic Association to utilize facilities for events and activities. • Partner with the Strawberry Fest to showcase Discover Cottage Grove. • Create and strengthen partnerships within the community, with local businesses and with other organizations, to help uplift and support the mission of the CVB. Grants • Continue to apply for grants through Explore Minnesota where eligible. Budget • Continue to monitor and adjust budget as needed. • Continue to make thoughtful and impactful budgetary decisions based on data, the CVB’s mission and vision and any unique opportunities that are presented. Looking Ahead 2021 Annual Report | 15 Goals 2021: A Year of Growth Summary The Cottage Grove CVB had an overall successful year despite COVID-19 pandemic still wreaking havoc on the travel and tourism industry. 2021 Achievement Highlights • Exceeded 2021 budget estimations. • Hired a new marketing and communications specialist. • Received several grants, including $10,000 to help produce and promote the first-ever Cottage Grove Visitors Guide. • Launched an arsenal of communications methods and channels, including the Discover Cottage Grove website, Discover Cottage Grove Twitter and Instagram accounts, and a blog promoting area recreation, amenities and businesses. • Began distributing a monthly newsletter to subscribers to keep them informed of upcoming events. • Bolstered Discover Cottage Grove and Explore Minnesota activity calendars. • Partnered with the South Washington County Telecommunications Commission (SWCTC) to create videos showcasing unique aspects of Cottage Grove. • Created exciting and fun reels and stories on social media. • Sold over $6,000 in additional revuene due to advertising sales in 2021, which will be reflected in the 2022 budget. In addition to these accomplishments, the CVB is proud to have started establishing long-term relationships with its local lodging facilities, area businesses, community members and more. The CVB values these partnerships and remains steadfast in its commitment to effectively promote Cottage Grove as a premier tourist destination. DISCOVER COTTAGE GROVE COTTAGE GROVE CONVENTION & VISITORS BUREAU 12800 Ravine Parkway S., Cottage Grove MN, 55016 Discover our website discovercottagegrove.com Discover us on social @discovercottagegrove #discovercottagegrove