Item # F-2 Extending Advertising Campaign/ American RV Expo and Giant RV during 2002

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Agency Report Re: Extension of RV Ad Campaign December 1 R, 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 returned/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. Environmental Im The proposed advertising campaign will not have any environmental impact. Financial Impact The Redevelopment Agency currently has insufficient funds within the Cooley Ranch project Area to continue to fund this cooperative advertising campaign. As such, this item is agendized for consideration by the City Council for possible funding using City funds. The City may consider funding the $75,000 for the Advertising Campaign by budgeting $45,000 in FY 2001/02 and $30,0000 in FY 2002/03. The City Council may also deem this $75,000 to be a loan to the Agency , as such the Agency may be required to repay this amount to the City at such time as the Cooley Ranch has sufficient funds. Recommendations 1. Receive and file report