Approximately 6.7 million people annually visit Duluth. The city’s tourism creates well over $780 million a year, according to the Duluth area chamber of commerce. However, the Duluth City Council has a difficult decision to make. They need to decide whether or not they move forward with an out-of-state company marketing Duluth’s tourism.

A selection committee appointed by city administrator David Montgomery, chose Madden Media. It’s a tourism-marketing firm based in Arizona, which the committee chose compared to other local agencies in a request for proposal (rfp) process. Madden would receive a two-year, $3.6 Million marketing contract. However, many residents and other local marketing agencies are frustrated by the outcome.

One of the finalists in the request for proposal process was AIMCLEAR. Marty Weintraub, the founder and CEO, says having an out of state marketing firm advertise the city’s tourism would hurt Duluth’s economy.

“The city contract will reasonably support five to eight high paying jobs. There would be new hires or existing staffers at the agency that wins the contract,” Weintraub said. “So instead of investing in Duluth companies that hire, bank, spend, volunteer, work with nonprofits, along with their employees, in our hometown, this moves those jobs to an Arizona based company.”

Weintraub says others are frustrated the City of Duluth wouldn’t stick with more local media advertising company marketing Duluth’s tourism.

“The city council needs to hit the pause button,” Weintraub said. “We trusted it would be different this time, especially with three highly competent and experienced Duluth agencies among five finalists. We took the mayor and the city at their word.”

There were a few city councilors dissatisfied about the tourism marketing deal going to Madden. The City of Duluth’s Attorney Terri Lehr says Madden was successful in the competitive process. Now the city code requires the contract to the marketing agency that fit all the specifications.

“Under the case law on Minnesota, once an entity chooses a competitive process, they are required to complete that competitive process to its conclusion and award the contract to the entity that meets the specifications under that contract,” Lehr said. “If the council does not follow the process that has been selected by the city, then that does open the city and the public body to potential litigation.”

Councilor Arik Forsman says the Duluth City Council has its hands tied. If the council votes no the city would face potential litigation.

“Sometimes legal liability is a bit of a gray area and you can make a case,” Forsman said. “Maybe that the risk is worth the reward. In this case, it seems like there’s a whole lot of risk.”

Councilor Forsman says it’s a moot point for picking a different marketing agency. He says the city council should focus growing successful business relationship with Madden to have a better tourism industry in Duluth.

“But at the end of the day, whoever was the successful applicant, we need them to be successful,” Forsman said. “If they’re not, we not only pay more, but our infrastructure, our services suffer from that too.”

This a developing story. WDIO News will update the outcome of the city council’s decision at their next meeting on Monday December 9th.