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Mach 23, 2010 Page 3 of 7 the lack of control the City would have in the event of a subordinate position. Jeff Johnson representing NB Commons LLC, explained the bank and the buyer are advancing significant funds for the proposed transaction. Councilmember Bauman suggested NB LLC obtain an insurance policy where the City of New Brighton is the owner of the policy. Mark Norland representing Ryan Companies commented the City's position would be unchanged if the item was not approved. City Attorney Charlie LeFevere commented the risk associated with the transaction is pretty small, yet significant, and suggested a bond, letter of credit or escrow funds be utilized. Motion by Councilmember Phillips, seconded by Councilmember Bauman to table the item allowing more time for staff to work with the applicant. 5 Ayes, 0 Nays -Motion Carried 2. Consideration of Local Lodging Tax Ordinance, Chapter 34 of the City Code. Report No. 10-076. City Manager Lotter explained City Staffmet with the Homewood Suites Manager to discuss the item. The ordinance would allow the adoption of a lodging tax, resulting in possible revenue of $10,000 annually, 95% of that would go to the Convention and Tourism Bureau, and 5% to the City. Assistant to the City Manager Johnson explained the Convention and Tourism Bureau began January 2010, and is in the process of acquiring staff. City Attorney LeFevere reported the state statute dictates the City can only keep 5% of the proceeds, and the other 95% has to be used to promote tourism in the City. Councilmember Burg questioned if this will allow the City the opportunity to promote its local amenities. Manager Lotter confinned that is the intent. Motion by Councilmember Burg, seconded by Councilmember Bauman to approve a Local Lodging Tax Ordinance -Chapter 34 of the City Code. 5 Ayes, 0 Nays -Motion Carried 3. Consideration of Minnesota Metro North Tourism Convention and Bureau Agreement and Bylaws. Report No. 10-077. Motion by Councilmember Burg, seconded by Councilmember Bauman to approve the Minnesota Metro North Tourism Convention and Tourism Bureau Agreement and Bylaws. 5 Ayes, 0 Nays -Motion Carried 2. Consideration of Local Lodging tax Ordinance, Chapter 34 of the City Code. Report No. 10-076. 3. Consideration of Minnesota Metro North Tourism Convention Bureau Agreement and Bylaws. Report No. 10-077.