Le Mars nonprofit seeks MOU with city, ties funding to Nov. 4 hotel‑motel tax vote

The Hometown Le Mars Heritage Foundation (HLHF), a newly formed 501(c)(3), asked the Le Mars City Council on June 17 to enter a memorandum of understanding that would establish a formal partnership with the city and make the nonprofit eligible to receive revenue if voters approve a proposed 2% hotel‑motel tax increase on Nov. 4, 2025.

The request matters because the MOU would set initial governance and oversight, provide two years of office space in the former convention‑visitor bureau (CVB) office, and tie city funding to voter approval of the tax increase. If voters approve the increase, the council was told, the city’s estimated contribution to HLHF would be about $90,000 based on current collections; if the measure fails the MOU would be void and any funding would require further discussion.

Danielle Props, representing ISG, introduced the presentation and said the consultants worked with a steering committee to develop the organization and its operating documents. Eric Mucke, CEO and founder of PASC, described the work as “the culmination of the past 6 months or so of community engagement and task force meetings,” and said the consultants produced bylaws, a draft MOU, a volunteer plan, a budget and operating model, and an initial hiring plan for an executive director.

Mucke said the foundation’s stated mission is to “attract visitors to Le Mars and deliver experiences that delight the community and make everyone wanna come back,” and the consultants recommended four strategic priorities: build organizational capacity, coordinate with the CVB and chamber without replacing them, leverage signature events, and create new tourism opportunities.

Mike Wells, identified as the HLHF chair, said family‑run enterprises have already been drawing visitors and funding some events. Wells told the council, “25 years ago, the Wells family decided to open an ice cream parlor that today draws over 400,000 people to your community,” and described the MOU as a way to set those activities on a sustainable footing beyond private funding.

Council members asked clarifying questions. One member asked whether the controlling‑law language in the MOU should reference district rather than circuit court. City staff replied that auditors will require a separate contract if the voters approve the tax increase and that further legal and dollar‑amount details would be negotiated when converting the proposed 18‑month MOU to a contract. A council member asked what would happen if voters did not approve the increase; presenters said the MOU as drafted would be null and void in that case and other forms of support could be discussed later.

Presenters said the HLHF board is a starting slate with room for expansion; the initial board officers identified were Mike Wells (chair), Adam Baumgartner (vice chair), Michaela Brown (secretary/treasurer), Cheryl Wells (at‑large), and another at‑large member. Presenters also said the Wells family and other private donors have made initial financial commitments to support startup costs.

The presenters repeatedly emphasized that the HLHF would be an independent nonprofit employer (the executive director would be employed by the HLHF, not the city) and that the organization would not replace the chamber or CVB. The MOU before council would grant the HLHF use of the old CVB office for an initial two years and include a city ex‑officio board seat for a city council representative.

The council did not take a final vote on the MOU during the portion of the meeting captured in the transcript. Presenters recommended council approval of the MOU contingent on voter passage of the hotel‑motel tax increase, with the understanding that the MOU would be converted into a contract and that the precise dollar amount and contract terms would be defined after the election.

The HLHF materials provided to the council include draft bylaws, an MOU, a budget and operating model, committee charters, a volunteer plan, and a hiring plan for an executive director. Presenters said outreach included interviews and surveys of local stakeholders and that the Plymouth County Fair and other existing events were considered part of the local tourism footprint.