Each year, around 6.7 million individuals travel to Duluth. The tourism sector generates over $780 million annually, as per the Duluth Area Chamber of Commerce. Nonetheless, the Duluth City Council faces a significant decision: whether to partner with an external company for marketing Duluth’s tourism.

A selection panel designated by city administrator David Montgomery opted for Madden Media, an Arizona-based tourism marketing firm, during their request for proposal (RFP) process over competing local agencies. Madden is proposed to receive a $3.6 million marketing contract spanning two years. However, this decision has left many local residents and marketing agencies feeling frustrated.

AIMCLEAR was one of the RFP finalists. Its founder and CEO, Marty Weintraub, argues that utilizing an out-of-state marketing firm to promote the city could harm Duluth’s economy.

“The city contract will reasonably support five to eight high-paying jobs. There would be new hires or existing personnel at the agency awarded the contract,” Weintraub explained. “This means that rather than investing in Duluth businesses that employ, bank, spend, engage in volunteer work, and collaborate with nonprofits in our community, we are shifting those jobs to a company based in Arizona.”

Weintraub expresses disappointment that the City of Duluth chose not to engage more local media advertising firms for promoting Duluth’s tourism.

“The city council needs to pause,” Weintraub stated. “We had hoped for a different outcome this time, particularly with three highly qualified Duluth agencies among the five finalists. We believed the mayor and the city were being truthful.”

Several city councilors expressed dissatisfaction regarding the decision to award the tourism marketing contract to Madden. City Attorney Terri Lehr mentioned that Madden excelled in the competitive selection process, and the city code mandates awarding the contract to the agency that meets all specified criteria.

“According to Minnesota case law, once an entity opts for a competitive process, it is obligated to see the process through to its conclusion and award the contract to the entity that meets those specifications,” Lehr noted. “Should the council deviate from the process designated by the city, it exposes the city and the public entity to possible litigation.”

Councilor Arik Forsman highlighted that the Duluth City Council has limited options. A no vote could lead to potential legal consequences for the city.

“Legal liability can sometimes be ambiguous and open to interpretation,” Forsman said. “Perhaps there is a valid argument to weigh the risk against the potential reward. In this situation, it appears that the risks are significant.”

Councilor Forsman believes that selecting a different marketing agency is no longer viable. He emphasizes that the city council should focus on fostering a productive partnership with Madden to enhance Duluth’s tourism industry.

“Ultimately, regardless of who was awarded the contract, their success is crucial,” Forsman emphasized. “Failure on their part means not only higher costs for us but also a decline in our services and infrastructure.”

This story is developing. WDIO News will provide updates on the city council’s decision at their next meeting on Monday, December 9th.