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Regular Agenda Item 4. A.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Approval of Exhibit A Modification #001 to Economic Development Agreement No. 20191203_434/5778 and approval of a new Economic Development Agreement between Gila County and Discover Gila County |
| Background Information |
On March 27, 2018, Gila County Began the process of a coordinated effort to promote all of the events, activities, destination sites, and opportunities that exist within Gila County related to tourism. In March 2019 Discover Gila County, Inc. (DGC) was officially established as a 501(c)3 to ensure that the marketing initiative had sustainability and representation throughout Gila County. On December 3, 2019, a four-year Economic Development Agreement was approved by the Board of Supervisors with Discover Gila County with a set funding of $150,000 per year. The agreement includes a section that states that the County contribution may decrease as other funding opportunities become available to DGC.
What no one could have predicted in December 2019, was the impending worldwide pandemic, and its after-effects, including the struggle for small businesses to survive and the subsequent considerable increase in inflation which has been a second major hurdle for small businesses, and tourists.
At the same time, DGC has continued to promote, advocate and market the many opportunities within Gila County. Thanks to their efforts, Gila County is becoming a destination for tourists instead of a ‘pass-through' county.
Because of the increase in costs and the current lack of opportunities for additional sponsorships from struggling local businesses, DGC would like to request an addendum to the existing agreement to increase the County contribution for the current calendar year, invoke the 30-day cancelation clause, and request a new agreement that factors in inflation while maintaining the language and intention that the County contribution may decrease as other funding opportunities become available.
It is the intention of DGC to pursue sponsorships and partnerships as local businesses recover from the current economic challenges. |
| Evaluation |
The marketing and tourism efforts have been extremely successful in growing tourism in Gila County through a pandemic and inflation costs that are the highest in recent history. DGC has also received several awards over the past two years from the Tourism industry and others who recognize the value of this effort.
Gila County provides funding at the end of each calendar year, for the work that has been accomplished. This ensures that the work has been accomplished and provides operating funds for DGC for the next calendar year. Market conditions are such that an increase in funding for the current year that is just ending will assure that DGC continues to be a successful endeavor. |
| Conclusion |
DGC and Gila County have created and continued a Marketing and Tourism initiative that has been and continues to be extremely successful by a variety of measures. Since its inception on February 14, 2019, social media platforms have grown every year. In the first 10 months of the first year of existence, Discover Gila County Facebook had 5,000 followers and had reached over 64,000 people (Dec. 2019). In the first 8 months of 2022, Facebook had 16,250 followers and reached 2.91 million people (August 2022). In addition, there were 5,100 Instagram followers as of August 2022.
With regards to the Discover Gila County Website, the first 10 months of existence in 2019 saw 19,000 page views. In the first eight months of 2022, there have been 132,870 website visitors.
This interest in Gila County and the amenities and recreation has also translated into increased tourism for the area. According to a report published by the Arizona Office of Tourism, Gila County was one of only two counties that experienced an increase in accommodations and recreation spending during the restrictions attributed to the Covid Pandemic. There was a 23% increase in the hotel, motel, and tourism sectors in 2020.
Additionally, since 2019 this initiative has garnered eight awards from the Tourism Industry and related Associations for the positive impact the initiative is creating. |
| Recommendation |
| Staff recommends approval of Exhibit A Modification #001 to the Economic Development Agreement No. 20191203_434/5778, and approval of a new Economic Development Agreement between Gila County and Discover Gila County, Inc. for a period of four years. |
| Suggested Motion |
| Information/Discussion/Action to approve Exhibit A Modification #001 to the Economic Development Agreement 20191203_434/5778 between Gila County and Discover Gila County, Inc., which increases the funding from $150,000 to $178,036 for 2022 and invokes the 30-day cancelation clause of the existing agreement and approve a new Economic Development Agreement between Gila County and Discover Gila County, Inc. for a period of four years beginning January 1, 2023, in the amount of $180,000 with a 3% per year increase for inflation, for the marketing and tourism initiative that the board has determined to be for the benefit of the public. (James "Mac" Feezor) |
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