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HomeMy WebLinkAboutItem 09e - ARPA Allocation for Merry & Bright Program DATE: September 5, 2023 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director SUBJECT: ALLOCATE AMERICAN RESCUE PLAN ACT (“ARPA”) FUNDS FOR THE 2023 MERRY & BRIGHT HOLIDAY SHOPPING PROGRAM IN THE AMOUNT OF $200,000 CEQA: Not a Project Recommendation: Approve SUMMARY For the past two years, the City Council has partnered with the Shops at Santa Anita (formerly Westfield Santa Anita), and the Chamber of Commerce on the “Merry and Bright” Holiday Shopping Program. This successful program is directed toward incentivizing in-person shopping at Arcadia brick-and-mortar businesses through a gift card redemption process. The program was implemented in 2021 and 2022, utilizing American Rescue Plan Act (“ARPA”) funds to stimulate the local economy. It is recommended that the City Council allocate ARPA funds for the 2023 Merry and Bright Holiday Shopping Program in the amount of $200,000. BACKGROUND Since the end of the COVID-19 pandemic, American Rescue Plan Act funding has been available for use for various purposes, including economic development and financial assistance for businesses. To date, the City Council has allocated funds for several important and well-received economic development programs, including the Small Business Grant Program, the Business Assistance Program (reimbursing City permit fees), a Downtown Broadband Study, the Chamber of Commerce Membership Program, and the Merry and Bright Holiday Shopping Program. The Merry and Bright Program was first implemented for the holiday season in 2021, when a total of $100,000 was allocated. The funding is utilized to purchase gift cards valued at $25, $50, and $75, for the purpose of incentivizing in-person shopping at Arcadia brick-and-mortar businesses. Customers who spend a minimum of $150 combined at three or more Arcadia brick-and-mortar businesses are eligible to submit receipts to the Shops at Santa Anita Mall Concierge Desk and redeem a gift card valued at $25. They will receive a $50 gift card for $300 in purchases, or $75 with $500 in total ARPA Allocation for Merry and Bright Program September 5, 2023 Page 2 of 3 combined spend. The gift cards issued will be Visa, Master Card, or American Express and usable at any location in or outside of the City that accepts this form of payment; however, they will be branded with City of Arcadia and Shops at Santa Anita imagery to encourage local spending of those funds. The project has been very successful in its first two years. In 2021, a total of 1,810 customers participated, with receipts submitted for gift card redemption totaling $986,738 in local spending. The program received very positive feedback from both the business community and program participants, and there were no significant issues or problems with administration. The City Council authorized the allocation of an additional $100,000 in ARPA funds in 2022 and the program reported 1,747 participants in the program with a total spend of $1,130,698. DISCUSSION Based on the success of the program over the past two years, it is recommended that the program be continued for the 2023 Holiday Season. If approved, the program is tentatively scheduled to run December 1-24, 2023, or until all gift cards have been issued. Along these lines, all gift cards have been issued prior to the final posted date of the program in both program years. In fact, in 2022, all gift cards were exhausted about one week before Christmas. In order to stimulate additional local spending, it is recommended that the allocation of ARPA funds be expanded to $200,000 for the 2023 season. Although the ownership has changed from Westfield to the Shops at Santa Anita, current staff are familiar with the program and, in some cases, were previously employed by Westfield. As in past years, mall staff will oversee the submittal of receipts, issuance of gift cards, and customer service for the program from their on-site concierge desk. The Chamber of Commerce will once again promote the program to their members and assist in spreading the news that these gift cards can be used citywide for spending. Additional program terms, conditions, and details are provided in the Merry & Bright Program Summary, included as Attachment “A” to this report. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The City was originally allocated a total of $8,865,000 in ARPA funding available to use for various purposes, including economic assistance. As of the date of this staff report, approximately $1.6 million of these funds remain unallocated. Providing an additional $200,000 in ARPA funds for this project is an appropriate use of ARPA funding consistent ARPA Allocation for Merry and Bright Program September 5, 2023 Page 3 of 3 with its objective to provide economic assistance to residents and businesses impacted by the COVID-19 pandemic. No General Fund dollars, other than staff time already budgeted, will be utilized for this program. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project and is, therefore, exempt under, the California Environmental Quality Act (“CEQA”); and allocate American Rescue Plan Act (“ARPA”) funds for the 2023 Merry & Bright Holiday Shopping Program in the amount of $200,000. Attachment “A”: 2023 Merry & Bright Program Summary 2023 Merry & Bright Program Summary From December 1st through December 24th, 2023, shoppers who spend money at three or more brick-and-mortar retailers or restaurants in Arcadia, including one at the Shops at Santa Anita will be gifted up to $75 in Gift Cards from the City to Shop and Dine in Arcadia. Redeem at the Shops at Santa Anita Concierge Desk while supplies last. Terms and conditions apply, visit www.Arcadia.gov/MerryandBright for details. Reward Thresholds (based on combined spend) •Spend $150 or more, and get a $25 gift card •Spend $300 or more, and get a $50 gift card •Spend $500 or more, and get a $75 gift card Terms and Conditions While supplies last and awarded on a first-come, first-serve basis. Must make purchases at a minimum of three different brick-and-mortar business located in the City of Arcadia between December 1-24, 2023 to qualify. At least one of the three purchases must be made at a brick-and-mortar business located at the Shops at Santa Anita. In-person purchases only. No minimum purchase required at any particular business, but total receipts must be over the required threshold before taxes. Purchases of gift card are not valid and will not count toward total required spend. Receipts from qualifying purchases must be uploaded to the Shop at Santa Anita’s system no later than December 31, 2023 to qualify. No duplicate receipts accepted. Receipts can be uploaded via QR codes located at Santa Anita's concierge desk. Gift cards can only be obtained in person at the Shops at Santa Anita’s concierge desk. Use of gift cards subject to terms on back of gift card. Deposits for financed or layaway purchases must be over the promotional amount before taxes to apply. The Shops at Santa Anita reserves the right to reject any receipt in its sole and absolute discretion. A total of $200,000 in funding has been allocated to this program. Valid ID must be presented and any credit card purchases must match the ID. Limit one gift card redemption per person per giveaway with purchase. 18+ only. Frequently Asked Questions Who is eligible to receive a Merry & Bright Program Gift Card? Anyone who spends a combined $150+ at three or more Arcadia businesses between December 1-24, 2023, provided at least one of the businesses is located at the Shops at Santa Anita. You do not need to be an Arcadia resident to participate. What shopping, dining, and other purchases qualify as eligible spending under this program? Shopping and dining receipts dated December 1-24, 2023 from any brick-and-mortar business located in the City of Arcadia (i.e. any business with a physical storefront in Attachment "A" Arcadia) will be accepted as eligible purchases under this program. For example, spending at any Arcadia-based retail store, restaurant or other food and beverage business, retail service establishment, entertainment-related business, or other business that sells products and/or services direct to the general public is eligible to submit under this program. At least one receipt is required to be from a business located at the Shops at Santa Anita. How and where do I redeem my Gift Card? All Gift Cards are required to be redeemed in person at the Shops at Santa Anita Concierge Desk beginning December 1, 2023 during the hours of ( 12:00 pm – 8:00 pm, 7 days per week) . Please bring all eligible receipts to the Concierge Desk and then follow the on-site instructions to use your smartphone to upload receipts for verification and receive your Gift Card. Please note that a maximum of 2,000 Gift Cards will be issued through this program on a first-come, first-serve basis. Specific amounts and denominations of these Gift Cards are listed in the Program Terms and Conditions provided above. Where can I spend my Gift Card? Gift cards can be used at any store that accepts this form of payment, both at the Shops at Santa Anita and outside of the mall. What happens after all the Gift Cards have been issued? Can receipts still be submitted to participate in this program or another promotion? A total of $200,000 in funding has been dedicated to this program and gift cards will be issued on a first-come, first-served basis to qualified recipients. No additional funding for gift cards is planned to be funded at this time. All program participation is subject to gift card availability, and once the initial supply has been distributed no additional receipts will be accepted or available to submit for the Merry & Bright Gift Card Program. At this time, there is no plan for additional offerings or other promotional offers after the initial Merry & Bright Card Program funding has been expended and all gift cards have been issued. Are there any additional program restrictions or limitations to be aware of? For additional program information and restrictions, please review the terms and conditions section above. Who can I contact with any further questions? For questions relating to the Gift Card redemption process, please contact the Shops at Santa Anita Call Center at (626-462-8510). For other inquiries or comments related to this program, please contact the Arcadia Economic Development Division by email at EconDev@ArcadiaCA.gov and an Arcadia City Staff Member will respond to your message within 1-to-2 business days.