Attachment 2 - Tuesday Council May 3 - Destination Mktg & Events
Date: May 3, 2021
To: Los Gatos Mayor and Town Council
From: Los Gatos Chamber of Commerce
Subject: Consideration of Chamber’s Request that a portion of the ARPA Funds immediately be
used for Funding for Special Events and Destination Marketing and
Why an Emergency Destination Marketing Plan is important and why Special Events this
Summer are critical to the survival of our entire business community.
Introduction: Outlined below are our positions on our requests for funds for Special Events and
Destination Marketing, in response to the issues raised by Town Staff in their staff report for Item #14
on the scheduled May 4 Agenda. We will attempt to explain why we believe additional funding for
Special Events and Destination Marketing is more essential than ever before. Our local economy is
fragile right now. The ARPA funding is intended to provide immediate funding for recovery such as this.
It is the Town Council’s responsibility to allocate and use those funds in accordance with the directives
within the ARPA.
The staff report raised a number of other issues as well, including the Town’s Annual Agreement with
the Chamber of Commerce to operate the Town Visitor and Information Center. Understanding that
there are three new Council members, as well as the five newly appointed finance commissioners, we
will be providing an outline of that relationship, the associated scope of services, and the actual
agreement for reference under separate cover.
Additionally, the Chamber will submit a statement outlining our overall position on the sources and uses
of the ARPA Funds, other recovery funds the Town has received, and the Town Budget again under
separate cover.
Emergency Destination Marketing
• The Town’s Visitor and Information Center is responsible for all destination marketing to attract
tourists to Town.
• The Town’s grant of $55K barely covers the cost of rent, staff, public restroom, maintenance and
supplies.
• A robust Destination Marketing program would require funds above and beyond that $55K.
• We have recommended more funding specifically for Destination Marketing for the last 4 years.
We believe there is a huge need, as well as a tremendous benefit. However, we have never
received funding for this endeavor.
• The Chamber fills in where it can and generously utilizes a portion of membership and special
event revenue for destination marketing efforts. For example, the Chamber solely funded the
Experience Los Gatos social media platforms for more than 2 years. In January we had to put
that effort on hold as there was not enough funding available.
• The Town typically collects approx. $2.7 million in TOT revenue.
• Our 20/21 Budget show a loss of almost $2million and estimates that the 21/22 budget will be
down almost that much again.
• Business Travel has declined significantly and according to industry experts is not expected to
rebound until Fall of 2022.
• Our local hoteliers believe that if we invest some of the ARPA funding into a Destination
Marketing plan focused more on leisure travel, we can make up for some of that loss.
This investment would include funding for:
o Website/app
o Search engine investment
o Advertising dollars
o Staff time
o Relaunch of the Experience Los Gatos social media platforms
o Brand consulting
• The Chamber is in the best position to take on this responsibility. We already house and manage
the Visitor and Information Center and we already work with all of the stakeholders – the hotels,
the restaurants, and the business community at large, both members and non-members.
• With an immediate use of the ARPA money, the Chamber can quickly implement an Emergency
Destination Marketing Campaign.
• This effort alone will bolster the economy but is more than that. We will be building the
foundation on which we can market and brand Los Gatos and create an identity that will last for
the future. The Chamber and Town Staff have discussed a destination marketing effort at length
on several occasions, however the plans have never come to fruition despite numerous
attempts. The result has always been a lack of funds or labor adequate to take on the task.
• The Town’s Economic Development department has other priorities and does not have the
capability nor the bandwidth to develop a worthwhile marketing program. The Town Staff has a
giant list of priorities to get to that take precedent over a destination marketing program,
whereas the Chamber of Commerce identifies this effort as a top priority and can manage the
effort with ease.
• Because of the lack of success, the Chamber attempted to form a PBID (Property Business
Improvement District), which if successful would have garnered enough money to develop its
own destination marketing plan. Due to the Pandemic, plans to formalize a PBID were put on
hold.
• The Chamber believes $150K set aside for destination marketing will jumpstart this Recovery
Effort.
SUMMER 2021 SPECIAL EVENTS
Please review the attached budget for the proposed special events for summer and fall of 2021. We
believe that the events we are suggesting do not pose any threat to the safety and well-being of our
Town’s residents and visitors.
• The CDC, the State, and thus far the County, have stated publicly that we are moving in the right
direction and that outdoor gatherings are safe. California has the lowest COVID-19 rate in the
entire country. On June 15th the governor’s office plans to lift all restrictions.
• While the Staff refers to Council’s decision made in February about marketing and preparing to
have events for our own residents, 4 months have passed. The Summer is almost here and
increased foot traffic is imperative if our business community is going to survive.
• After polling many residents in Town, The Thursday Promenade with a North Santa Cruz Ave.
closure is by far the best idea to get people back into the downtown. Our small businesses and
restaurants are relying on us to create a reason for people to come. Our residents alone cannot
sustain our fragile economy’s infrastructure.
• By closing North Santa Cruz Avenue, people will be able to safely distance.
• We will modify programming to align with the County guidance as it continues to relax.
• We hand-delivered letters to all University Ave. residents and only two have said they did not
support this economic recovery effort while many more were in support.
• Closing North Santa Cruz Ave. on Thursday nights does not require policing.
• The Chamber will facilitate the closing of N. Santa Cruz with an approved traffic control
company, thus freeing the Town from the burden. The logistics of the closure will become
easier with each passing week.
• All merchant and restaurants with whom we have spoken are in favor of this proposal.
• We are asking Council to waive the Special Event permit 60-day minimum lead time between
applications and events, in order to give us the flexibility to implement plans as soon as state
and county guidelines allow, which as we know is a continually moving target.
Please note – The Chamber is not asking for funds for our regular Chamber events, such as the Wine
Walk or Carriage Rides which we will still host. These are community events, the Chamber will not make
any money. In addition, the Chamber is willing to organize and staff these events, without any
reimbursement.
Contrary to the Town staff, we believe ARPA funds can be used for events as they are a vital component
in drawing people back into these small towns. People will stay, shop, and dine. This spending will
directly result in more sales tax revenue and TOT revenue. This investment will provide immediate
economic aid for our business community. This is exactly what the ARPA funds are meant to do.
Lastly, events are the one tried and true way to open our doors and show that we are a diverse,
welcoming, and inclusive community and that we celebrate all cultures and all people.
In Conclusion, on behalf of the Los Gatos Business Community, we encourage the Council to:
1. Invest at least $150K of the ARPA Funds into Emergency Destination Marketing plan managed by
the Chamber of Commerce.
2. Make a commitment to the Chamber to subsidize the cost of proposed summer 2021 special
events in the amount of $250K.
3. Waive the 60-day special event application rule – understanding that we are coming out of a
pandemic and doing what we can when we can.
4. Recognize the need for “safe” special events this summer and support our proposal in closing
North Santa Cruz at least on Thursday nights throughout the summer.
While we understand that ARPA Funding can be used to balance the Town’s budget and backfill line-
items where we may have experience revenue shortfalls, The Chamber advocates that the Town use
other revenue sources for that balancing and use the ARPA funds for the two ideas proposed above.
The remainder of the funds should be then set aside for necessary infrastructure projects. When we
look back in 5-10 years, let’s be confident in knowing that we did our best in using the ARPA funds
wisely. The Chamber will be submitting another communication on ARPA funds under separate cover.
Upcoming events to promote Economic Recovery and DEI objectives
Thursday Promenades - N. Santa Cruz Avenue
cost 14 times total
bands $ 2,000.00 14 $ 28,000.00
Sound $ 1,540.00 14 $ 21,560.00
traffic control company - for street closure $ 3,000.00 14 $ 42,000.00
Chamber to put up no parking signs & maintain all
summer $ 500.00 1 $ 500.00
special event permit fee $ 227.00 1 $ 227.00
banner permit fee $ 112.86 4 $ 451.44
Portapotties $ 15,000.00 1 $ 15,000.00
Street Cleaning & Garbage pickup $14,000 1 $ 14,000.00
Neighbor Notification $500 1 $ 500.00
Publicity $750 1 $ 750.00
Stage/truck $500 14 $ 7,000.00
Extra Chamber event staffing $300 14 $ 4,200.00
Extra entertainment/ decoration on July 4th $2,000 1 $ 2,000.00
Picnic tables $250 10 $ 2,500.00
$ 138,688.44
Picnic in the Parks
Music/ Performances $ 750.00 5 $ 3,750.00
Additional PPW costs for clean-up $ 1,000.00 5 $ 5,000.00
Portapotties (1 stall, 1 ADA stall, 1 handwashing
station) $ 400.00 5 $ 2,000.00
Neighbor notification $ 200.00 $ 200.00
$ 10,950.00
Town-wide Celebration- September 4
House Rockers/Sound/Stage $ 12,000.00 $ 12,000.00
special event permit fee $ 227.00 $ 227.00
banner permit fee $ 112.86 $ 112.86
Portapotties $ 1,000.00 $ 1,000.00
Neighbor Notification $250 $250
Publicity $750 $750
$ 14,339.86
Street Pole Banners
PPW cost for putting banners up (April 2021) $ 4,000.00
New banners - Spring 2022 $ 6,500.00
PPW cost for putting banners up (April 2022) $ 4,000.00
$ 14,500.00
Cultural Event -Spring 2022 (Town Plaza)
Music (includes sound) $ 3,000.00 $ 3,000.00
Cultural performances $ 2,000.00 $ 2,000.00
Town permits & fees $ 500.00 $ 500.00
Stage $ 1,000.00 $ 1,000.00
Portapotties (2 stalls, 1 ADA stall, 1 handwashing
station) $ 600.00 $ 600.00
Publicity $ 1,000.00 $ 1,000.00
Neighbor notification $ 300.00 $ 300.00
$ 8,400.00 $ 8,400.00
Los Gatos in Lights - Holiday Decorations
More Pole Décor $ 20,000.00 $ 20,000.00
Installation - additional help for PPW $ 20,000.00 $ 20,000.00
One more large light sculpture $ 25,000.00 $ 25,000.00
$ 65,000.00 $ 65,000.00
GRAND TOTAL $ 251,878.30