Consideration and Approval of Contract: Legends Entertainment District with the Convention and Visitors Bureau (CVB)

The CVB is requesting the renewal of a two-year contract for an outdoor billboard located in downtown Phoenix in an effort to inspire and motivate Flagstaff visitation from our #1 drive market.  The static board measures 18' x 84' and is strategically located to capture visitors and local residents alike delivering an audience of 13.7 million annual impressions.  The board is located 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.  The types of displays managed within Legends are not permitted or found around any other thoroughfares around Phoenix.

The renewal of the Legends partnership was discussed and unanimously supported and recommended by the Tourism Commission during the March 27, 2018 meeting.

The cost agreed upon represents a 25% discount from the established market rate.  We have negotiated a rate with no price increase from the previous contract. Additionally, our vendor would cover production hard costs.

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There was Council discussion and approval of the previous two-year contract. We had a wall wrap in the district that was called the "Cool Zone" which included misters that ran throughout the day to cool the walking public as well as a real-time thermometer that told the temperature in Flagstaff. This installation was successful so we decided to continue in the Legends Entertainment District with another billboard location with two different treatments this past year, one included a 3-D element which was well received.

1.  Approve the two-year agreement with Legends Entertainment District.
2.  Ask CVB to sign a one-year agreement with the Legends Entertainment District (This option would not give us a 25% discount).
3.  Not approve the agreement with Legends Entertainment District.

The Flagstaff CVB contracted with the Legends District for FY16 to install a vinyl wrap on one of the main entrances for Arizona Diamondbacks/Chase Field with images of the San Francisco Peaks, ziplining, hiking in 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 the CVB an area where they could do live activations with industry partners, a platform for discussion on social media and received nearly 12 million impressions from foot and auto traffic.
 
The CVB wanted to continue to engage with the Legends Entertainment District visitor, which proved a perfect demographic for Flagstaff, by negotiating a preferred deal for an 18' x 84’ billboard facing south toward Chase Field, popular restaurants, and Talking Stick Arena. This installation has gone through two creative treatments and is currently receiving nearly 14 million impressions and lots of buzz on social media. Additionally, due to the superb location, all activations from Chase Field (EX: opening day festivities) are located right under our installation. The two-year contract would expire June 30, 2018.
 

The CVB's mission is to encourage visitation, and our stakeholders rely on our year-round marketing efforts.  Results or ROI metrics from the installation have provided: 

• 13.7M annual audited impressions
• 7M annual visitors
• 3M sports venue attendees
• 1.1M theater attendees
• 66K employees with a one-mile radius
• 130K employees with a two-mile radius

Industry standard tourism metrics have also increased year-over-year:

• Average Daily Rate (ADR) 2017 was $101.58 compared to 2016 at $97.21
• Revenue per available room (RevPAR) 2017 was $76.41 compared to 2016 at $72.48
• Occupancy 2017 was 75.2% compared to 2016 at 74.9%
• Bed, Board, and Beverage (BBB) tax revenues increased by 17.48% to $7.9 million dollars

 

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.

The community benefit is we are assisting our stakeholders and partners -- accommodations, bars, restaurants, and attractions--  in marketing the destination year-round to the city's largest target audience in a Phoenix area that demonstrates high foot and auto traffic.

On March 27, the Tourism Commission unanimously recommended the continuation of this out-of-home marketing tactic.