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8.B.
City Council Meeting - FINAL (AMENDED)
Meeting Date:
06/02/2020
Co-Submitter:
Heidi Hansen
From:
Lori Pappas, Marketing and Media Relations Mgr.

Information

TITLE:

Consideration and Approval: Legends Entertainment District Agreement (Advertising for Discover Flagstaff/CVB)

STAFF RECOMMENDED ACTION:

Approve the two-year renewal of the Legends Entertainment District advertising agreement with Discover Flagstaff in the amount of $78,000 per year for FY ’21 and FY ’22.  This is the same amount as previously approved by City Council for FY’s 18 – 20 for the same downtown Phoenix billboard placement.

Executive Summary:

Discover Flagstaff is requesting the renewal of a two-year contract for an outdoor billboard located in downtown Phoenix to inspire and motivate Flagstaff visitation from our #1 drive market.  And now, more than ever, this tactic supports the marketing plan to target metro-Phoenix as they will be the very first market to visit Flagstaff as we recover from the COVID set-backs.
The static board measures 18’ x 84’ and is strategically located to capture visitors and residents alike delivering an audience of 13.7 million annual impressions.  The board is in a premiere intersection at 4th Street and Jefferson, between Talking Stick Resort Arena (Phoenix Suns, high profile concerts and events) and Chase Field (AZ Diamondbacks).
The Legends Entertainment District operates within a special City of Phoenix entitlement area called the Jefferson Street Signage District.  This advertising is being procured as a sole source since the types of displays managed within Legends Entertainment District are not permitted around any nearby surrounding areas in Phoenix.

The renewal of the Legends Entertainment District partnership was discussed and unanimously supported and recommended by the Tourism Commission retreat in December 2019.

Financial Impact:

The cost agreed upon represents a 25% discount from the established market rate and staff has negotiated a rate with no price increase from the previous agreement.  Additionally, our vendor would cover vinyl production costs for one new creative change-out.

Policy Impact:

Economic Development:  Grow and strengthen a more equitable and resilient economy.

Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:  Economic Development:  Grow and strengthen a more equitable and resilient economy.

Has there been previous Council decision on this:  There was Council discussion and approval of the previous two-year contract. This installation continues to be successful, so staff and the Tourism Commission are recommending to continue in the Legends Entertainment District due to the attention it garners, an appreciation for the size, the ability to have a unique and special 3-D element, and the premiere location we receive.

Connection to Council Goal, Regional Plan, CAAP, and/or Strategic Plan:

Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:  Economic Development:  Grow and strengthen a more equitable and resilient economy.

Previous Council Decision on This:

There was Council discussion and approval of the previous two-year contract. This installation continues to be successful, so staff and the Tourism Commission are recommending to continue in the Legends Entertainment District due to the attention it garners, an appreciation for the size, the ability to have a unique and special 3-D element, and the premiere location we receive.

Options and Alternatives:

1) Approve the two-year agreement with Legends Entertainment District
2) Ask Discover Flagstaff to sign a one-year agreement with Legends Entertainment District (this option would not provide a 25% discount or vinyl installation)
3)  Not approve the agreement with Legends Entertainment District

Background and History:

Discover Flagstaff (Flagstaff CVB) contracted with Legends Entertainment District for FY ’16 to install a vinyl wrap on one of the main entrances for AZ Diamondbacks/Chase Field with images of the San Francisco Peaks, zip lining, hiking in the Ponderosa pine forest, historic downtown Flagstaff and other tourism-related imagery.  The installation included outdoor cooling misters and was branded “The Cool Zone.”  This proved successful in reaching the traveling public within the Phoenix metro area, giving Discover Flagstaff an area where they could do live activation with industry partners, a platform for discussion on social media, and allowed us to receive nearly 12 million impressions from foot and auto traffic.
 

Key Considerations:

Discover Flagstaff’s mission is to encourage visitation, as our stakeholders rely on our year-round marketing efforts.  Results or ROI metrics from the installation have provided:
  • 13.7M annual impressions
  • 7M annual visitors
  • 3M sports venue attendees
  • 1.1M theater attendees
  • 66K employees within a one-mile radius
  • 130K employees within a two-mile radius
  • 9K residential population within Legends Entertainment District area of 1.7 square miles

Community Benefits and Considerations:

This billboard installation is already budgeted in the base tourism budget so no additional expenses will be needed.  This contract is budgeted in account 053-07-214-0851-4-4271.
 

Community Involvement:

 
The community benefit is this installation helps assist our stakeholders and partners (accommodations, bars, restaurants, campgrounds, and attractions) with marketing the destination year-round to the city’s largest target audience in the Phoenix area that has historically demonstrated high foot and auto traffic.
 

Expanded Options and Alternatives:

In December 2019, the Tourism Commission unanimously recommended the continuation of this out-of-home tactic.
 

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