The Duluth City Council voted 8-1 Monday night to approve a $3.6 million contract with Madden Media, a Tucson, Arizona-based marketing agency, to orchestrate tourism efforts in Duluth over the next two years. The decision followed a complicated and controversial selection process that included more than two dozen applicants, with six based in Duluth or having an office there. Tourism in Duluth is a nearly $1 billion industry.
Most councilors said they wished they could vote no but felt they had no choice. Council President Roz Randorf called the scored selection process “frustrating” and said she and others worked behind the scenes to soften the blow but found no viable options. City Attorney Teri Lehr mentioned that rejecting a competitively chosen proposal could expose the city to legal liability.
“We need a broader conversation about how important local is,” Randorf said. Outsourcing marketing to out-of-town firms undermines local expertise and siphons money and jobs away from this community.
Councilor Arik Forsman agreed, saying he didn’t like the agency’s location but couldn’t argue with their qualifications. Madden Media CEO Dan Janes told councilors last week that he has an employee who lives in St.
Paul and expects to work with local content creators.
Duluth’s outsourced tourism contract controversy
However, he wouldn’t likely employ someone in Duluth, a decision that concerned several councilors.
Two local marketing agency leaders have also criticized the process, which included two requests for proposals, one issued a couple of weeks after the first, with crucial financial details changed. The contract changed from $6 million over two years to $3.6 million. Swim Creative CEO Patrice Bradley expressed worry about the economic impact of the decision.
My recent conversations with community members have shown widespread concern over our city leadership, particularly the mayor, who promised to bring valuable tax dollars back to our local economy,” she wrote in an email. In 2021, former Mayor Emily Larson picked a Minneapolis-based marketing agency to do work that had long been handled in town by Visit Duluth, a move criticized by others. At a news conference in March, Mayor Roger Reinert addressed the need for local expertise while noting he remained open to considering non-local agencies.
Finalists made presentations to a committee of six that included directors of the Duluth Airport Authority, the Duluth Entertainment Convention Center, and the city’s workforce development director. Duluth Area Chamber of Commerce President Matt Baumgartner indicated support for the choice but had anticipated a local agency. City administration has indicated a return to Visit Duluth overseeing marketing efforts when this two-year contract expires, with plans to search for an executive director to take over then.
