CC 2017-06-27_10a Supplemental Information No. 1
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: SUPPLEMENTAL INFORMATION
AGENDA ITEM 10.b. – JUNE 27, 2017 CITY COUNCIL MEETING
CONSIDERATION OF THE ANNUAL PUBLIC HEARING FOR THE
ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT
DATE: JUNE 27, 2017
Attached is supplemental information regarding Item 10.b. on the June 27, 2017 City
Council agenda.
cc: City Manager
City Attorney
City Clerk
Public Review Binder
From: James Guthrie
Date: June 27, 2017 at 2:02:51 PM PDT
To: Kristen Barneich <kbarneich@arroyogrande.org>, Tim Brown <tbrown@arroyogrande.org>, Barbara
Harmon <bharmon@arroyogrande.org>, "Jim Hill" <jhill@arroyogrande.org>, Caren Ray
<cray@arroyogrande.org>
Cc: <jbergman@arroyogrande.org>
Subject: Thoughts on AG TBID
Honorable Mayor and Council members:
Some thoughts on the AG TBID.
A little background first, I was directly involved with the original formation of the TBID in Arroyo
Grande. Earlier attempts failed due to the opposition of one of the principal operators (Casa
Grande Inn). When their was a change in management there, I contacted Kevin Thornton about
the possibility of their support going forward. I met with him several times , he did some
extensive research of how the County BID operated and thought there was some potential but
had 2 specific concerns. Was there enough free management time and interest from the
industry in AG to adequately direct the BID and was there enough money, opportunity and
consensus to implement an effective marketing effort. There were only 2 Hotels with more than
one person in management in AG and his review of the individual BIDs inside the county BID
indicated they were having trouble finding marketing programs and as a result were sitting on
most of their cash. Note: that county BID is not the VISIT SLO BID that includes all the cities .
I was not the council liaison for the first 2 years of the bid operation but when I retired from the
Spyglass Inn I stepped into that role. My experience over the last 2 years leads me to believe
that these 2 concerns were valid and bring into question wether the BID is really performing
adequately to remain in place. On several occasions the committee was unable to meet for
months at a time and ultimately had to hand over several key marketing decisions to the
Chamber because they could not reach an official decision. It is my understanding that the
committee was unable to meet for the first part of the year because there were not enough hotel
operators to form a quorum. I realize this may change going forward by adding 2 members that
are not hotel operators, but given that only one the major hotels (who pay 90 - 95% of the BID
revenue) thinks it is worth a couple of hours a quarter to ensure that the revenues are spent to
benefit them indicates a lack of hotel management time and interest.
While I think the BID has built some infrastructure with the web site and some Face Book
presence along with some interesting data I don’t see any real breakthrough marketing for 4
years and $600,000 in efforts. I don’t think this is a question of competence it just not enough $$
to move the needle and there is so much tourism marketing going on that there not much
opportunity for AG to stand alone. Finally the formation of VISIT SLO 2 years ago makes the AG
Bid potentially duplicative and maybe obsolete.
I doubt there will be any protest from the BID members tonight but I do think there maybe better
uses of the $195,000 a year and the city should be taking a hard look at how well the BID
serves the city and the hotel industry in AG.
Thanks
Jim Guthrie