Business deals on the agenda
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Forget American Express.
You might be able to charge it to your Costa Mesa credit card if
the City Council likes one of a number of new marketing schemes being
pitched as fundraisers for the city’s coffers.
The basic concept of the plan is to use the city’s assets to pool
community support and attract corporate deals and sponsorships -- all
with the goal of supporting city amenities such as parks, youth
programs and community services.
The ideas are detailed in a report to the council from Active
Public Enterprise Group, a Huntington Beach-based consulting firm.
The previous council commissioned the report, and it will be
discussed for the first time at a Tuesday study session.
With the help of the consultant, Costa Mesa already has inked one
sponsorship deal -- a 10-year, $300,000 pact with homegrown
skateboard clothing company Volcom for the city’s skate park. The
company gets its name and logo on the park and can hold a few events
a year there, and the city gets money to pay the costs of running the
park.
“I think that the skate park sponsorship demonstrated how you
could have a tasteful and integrated partnership that wasn’t totally
in your face,” city recreation manager Jana Ransom said.
The new report suggests other ways the city could raise money
through partnerships with businesses -- finding sponsors for the Bark
Park and TeWinkle Park, placing advertisements on the tailgates of
city trucks, selling exclusive rights to a beverage or snack company
for city vending machines, or making a deal with a bank that would
serve the city and put its cash machines in city facilities.
City credit or debit cards are another idea. They would be issued
through a partnership with a bank or credit union, and could be
MasterCard or Visa-type credit cards or cards that carry a set amount
of money like store gift cards. When the cards are used, a percentage
of the transaction fee charged would be kicked back to the city.
More cities are starting to market themselves and make corporate
deals as a way to pay for services without hiking taxes, and
residents have been supportive said Don Schulte, president of Active
Public Enterprise Group.
“People said, ‘Look, if I know where the money’s going and we’re
raising money to reduce taxes, I like it -- as long as there’s not
big, blazing signs everywhere,’” Schulte said.
Among his clients are the city of Long Beach, the New York and New
Jersey Port Authority, and California State Parks.
One of his first municipal contracts was a 1999 beverage deal the
company worked out for Huntington Beach. Today that city has
contracts for its lifeguard vehicles, bank machines in city
buildings, and six or seven other deals that rack up between $1
million and $1.5 million a year, Schulte said.
But one drawback is that people are afraid of overcommercializing.
Schulte said they rarely complain once ad programs are in place, but
Ransom said some people think Huntington Beach has “gone overboard”
with advertising.
So, should we expect to see “Welcome to the city of Costa Mesa --
a subsidiary of Wal-Mart” signs someday?
Ransom said that depends on the City Council. She has no idea how
receptive council members will be to making their city a marketing
tool.
Corporate partnerships could support something people care about
-- youth sports programs or more athletic facilities -- she said.
“I don’t think you’ll see great changes,” Ransom said. “You may
see somebody’s logos on all our trash cans.”
* ALICIA ROBINSON covers government and politics. She may be
reached at (714) 966-4626 or by e-mail at o7alicia.robinson
@latimes.comf7.
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