2001 AGN DEC 18 I17 - Laserfiche WebLink

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City Council Report Re: Extension of RV Ad Campaign December 18, 2001 Page 3 of 4 On the surface, it appears that the 2001 Miracle Mile of RV's Advertising Campaign has been somewhat successful in helping to retain sales taxes and increasing the number of sales from outside the area. However, when compared to the significant decreases in sales within the RV industry in California itself, it can be argued that the advertising campaign has been extremely successful. If it can be assumed that the advertising campaign was successful in retaining the difference between the 29.2% decline in the RV sales in the State versus the 5% decline experienced in Colton, then the $75,000 investment by the Agency actually retumed/retained $238,000 in sales taxes (24% of $992,000). Discussion The RV Dealers are currently planning on continuing the Miracle Mile Advertising Campaign starting in January 2002. Attached as Exhibit "A" to the staff report is a copy of the proposed advertising program for 2002. The proposed budget for next year's advertising campaign is $318,024.84. The RV dealers have requested the continued financial participation of the Agency/City in next year's advertising campaign. The RV Dealers Association has requested that the Agency/City of Colton pay for one-third of the costs as in the previous year. This level of support would equal approximately $106,000. On Monday, December 10, 2001, the Redevelopment Executive Advisory Committee (the "REAC") met to discuss the possibility of continuing the advertising campaign. The REAC group discussed the matter and after due consideration made a recommendation that the City Council support the advertising campaign in an amount of $75,000 as in the previous year. In addition, the committee recommended that the Agency staff continue its efforts to install various directional signs and also seek a commitment from the RV Dealers to support the restaurants in the Cooley Ranch area by handing out coupons or literature to their customers. Because of the current financial constraints in the Cooley Ranch Project, the Agency does not have sufficient funds to support the advertising campaign. As such, the item is being brought to the City Council for consideration and possible funding. Although the City has not budgeted for this expenditure the City Council may consider funding the continuation of the RV advertising campaign using unrestricted City funds This could be accomplished by allocating of $45,000 in unencumbered funds for FY 2001/02 and appropriate the remaining $30,000 during FY 2002/03. If approved this action would require a budget adjustment to provide the necessary funding. Additionally, the City Council may consider lending these funds to the Cooley Ranch Project Area. In doing so, the funds could be repaid to the City at such time that the Agency has sufficient revenues within the Cooley Ranch Project Area to repay this obligation Environmental Imoact The proposed advertising campaign will not have any environmental impact. Financial Impact The $75,000 recommended by the REAL Committee could be paid for in the following manner ❑ $45,000 for FY 2001/02 Act. No. 100-1280 ❑ $30,000 for FY 2002/03 Act. No. 100-1280