(Saint Paul, MN) The governing boards of the RiverCentre Authority and the Saint Paul Convention and Visitors Bureau (CVB) this week passed identical resolutions beginning the process to merge the two organizations. Both votes were unanimous.
"We believe that a unified sales and marketing staff will create greater synergy between our two organizations, allowing us to more effectively focus on our common goal of booking meeting facilities and promoting Saint Paul as a prime Midwest convention and tourism destination," said CVB Board Chair Chuck Paton.
Pending approval by the CVB membership, City Council and state legislature, the two boards expect that the newly merged organization will begin operations this summer.
"Legislative approval is required for the RiverCentre component of the merger because of the use of tax-exempt bonds," said Bill Huepenbecker, executive director of RiverCentre. "We will introduce a bill recommending the merger this spring, and anticipate approval by the end of May."
The new organization does not plan to request any additional monies from the legislature. The CVB is funded by a combination of hotel-motel tax, membership dues, advertising revenues and commissions. RiverCentre?s principal revenue sources are derived from facility rentals and concession sales.
By combining resources and strengthening sales and marketing efforts, the two groups feel they can achieve greater financial stability, allowing them to compete more aggressively in the convention and tourism marketplace.
"By appointing a single CEO to lead the merged organization and by streamlining various financial and administrative operations, we anticipate a cost savings of $250,000 each year," said Tom Triplett, interim CVB president. "This savings will be dedicated to sales and marketing efforts, and will result in more business coming into the city, which will ultimately increase our budget in terms of additional hotel-motel tax revenue."
Triplett also notes that merging the sales staffs of CVBs and convention centers is a national trend, which has served to strengthen city-wide marketing efforts throughout the country.
The new organization will be governed by a board which consolidates the existing CVB and RiverCentre boards. The new board will have a slight majority of mayoral appointments (to meet requirements of federal laws for tax-exempt bonding) with the remainder elected by the CVB membership. Most of the membership representatives are expected to represent the hospitality industry.
"A new board will be appointed or elected this summer," said Lois West Duffy, chair of the RiverCentre Authority. "The new board will name the newly merged organization, hire the President/CEO, and complete any internal restructuring before beginning to operate as a new entity."
Saint Paul Mayor Randy Kelly is very receptive to the plan and has expressed his enthusiasm about the future capabilities of the new organization. Three of St. Paul city councilmembers already serve as members of one or the other of the two current boards.
The new organization will operate as a Section 501(c)(6) nonprofit membership organization. Its common mission and vision will be to market the greater Saint Paul area to visitors, fill RiverCentre will events and meetings, serve the interests of its members, advocate for visitor needs and link other community institutions with visitors.