THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JOSE DATE:

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1 BOARD AGENDA: 6/23/09 TEM: 3.1 THE REDEVELOPMENT AGENCY OF THE CTY OF SAN JOSE MEMORANDUM SUBJECT: REDEVELOPMENT AGENCY BOARD SEE BELOW DATE: HARRY S. MAVROGENES EXECUTVE DRECTOR JUNE 1 1,2009 SUBJECT: AGREEMENT WTH THE SAN JOSE DOWNTOWN ASSOCATON FOR MARKETNGPROMOTONAL SERVCES AND FOR PUBLC SPACE PROGRAMMNG RECOMMENDATON t is recommended that the Redevelopment Agency Board approve an agreement with the San Jose Downtown Association, in an amount not to exceed $525,000, for promotional and marketing services and public space programming for the period July 1,2009, through June 30,2010. OUTCOME Approval will provide essential marketing, promotional and public space programming services to promote and enhance the vitality and livability of redevelopment project areas in Downtown San Jose..-. BACKGROUND With a proposed budget of $3.5 million in FY and a mission to enhance the vitality and livability of Downtown San Jose, the San Jose Downtown Association (Association) provides valuable resources to the Downtown community. n addition to promotional and marketing efforts, the Association works with and assists businesses and property owners with specific issues and concerns, including construction impacts kom development and infrastructure projects, and serves as a clearinghouse for information on government processes and business assistance programs. The Association keeps members and key stakeholders informed through weekly and monthly online & print newsletters, an informative wehsite, marketing collateral, information forums and through a number of committees that are open to the public.

2 DOWNTOWN ASSOCATON AGREEMENT Page 2 The Association also administers the City's Downtown Business mprovement District (BD). BD funds represented approximately 18% ($620,000) of the Association's FY revenue. n addition to the BD funds, the Association receives financial support from private sponsors, membership dues and public and private contract services. The Agency has contracted with the Association to provide Downtown promotional and marketing services since 1,988. Due to Agency budget constraints, the Agency agreement with the Association has been reduced over the last five years from $979,150 in FY to $525,000 in FY , of which $400,000 was allocated to promotional and marketing services and $125,000 to public space programming. For FY , the Agency is proposing that the total contract amount remain the same as last year at $525,000. ANALYSS The scope of services provided by the Association for the proposed agreement includes two components: promotional and marketing services, and public space programming. PROMOTONALiMARKETNG SERVCES: The proposed services include the production, advertising and promotion of events and programs such as the Farmers' Market, Music in the Park, Dine Downtown, & - Downtown ce, public parking and neighborhood specific programs. Additional services include the vroduction of collateral-material such as event brochures, walking maps and entertainment guides. Many programs include collaborative marketing efforts with partner agencies such as the City's Department of Transportation and the San Jose Convention and Visitors Bureau. The Agency and Association will participate in a Communications Working Group recently proposed by the Mayor's Office following direction approved by Council in the Mayor's March budget message. At the February 19th Downtown Summit, coordinated marketing of the Downtown was one of three top priorities. The Communications Working Group will be comprised of different marketing partners including: the City, Agency, Association, Convention and Visitors Bureau and Chamber of Commerce. This group will work to increase coordination and eliminate duplication in existing efforts to market San Jose and the Downtown.

3 DOWNTOWN ASSOCATON AGREEMENT Page 3 New initiatives in the FY contract.include: Develop a new year-round media campaign to generate awareness about all the amenities Downtown has to offer, such as dining, nightlife and the urban lifestyle. This campaign will include radio, print, cinema and online advertising to market Downtown San Jose as a unique regional destination and a vibrant, evolving urban center. Research and implement a Search Engine Marketing campaign, otherwise known as pay-per-click advertising, or other online marketing opportunities. Vehicles such as Google AdWords allow advertisements to be associated with certain keyword phrases, maximizing online exposure. The Association will coordinate all promotional efforts with the Agency, as well as with Association committees and consultants to maximize cross-marketing potential. PUBLC SPACE PROGRAMMNG: Since 2002, the Association has managed the Agency's Public Space Programming. Active public spaces encourage retail activity and are a key ingredient to creating a vibrant urban core within the redevelopment project areas located in the Downtown. The proposed FY contract will again include successful programming such as outdoor movies, holiday caroling and installation of art work in vacant storefronts. Specifically, the scope of services includes the following: Starlight Cinema: outdoor movie screenings in San Pedro Square, SoFA (South First Area) and on Post Street in the Historic District (three screenings in each district) with pre-screening activities before each movie; Third Space Entertainment: "European Cafk Style" street musicians and holiday caroling in the Historic District, San Pedro Square and SoFA six months out of the year; Phantom Galleries: eight installations of window displays in transitional spaces and murals on construction fences throughout Downtown; SoFA Street Market: art for sale by local artists, live music performances and Pedicab service to supplement the popular monthly "South First Fridays" gallery crawl during the months of August and September 2009, May and June 2010.

4 DOWNTOWN ASSOCATON AGREEMENT Page 4 Downtown Pedicabs: increased visibility and promotion of the Pedicab service through stepped up marketing and public relations efforts via sjdowntown.com, ecocitycycles.com and collaboration with Downtown events. The Association will solicit feedback on promotional and marketing efforts in a number of ways, including neighborhood committee meetings, member surveys and event attendee surveys. n all of these instances the Association asks for input on the effectiveness of its promotions, events and marketing programs and collects economic impact data when possible. The Agency has had and will continue to have access to the results of these surveys.,- The Association manages both the and the websites and, at specific times of the year when promotions or events occur that are intended to drive visitors to the sites, the Association is able to document related increases in traffic on the sites. EVALUATON AND FOLLOW-UP The Association will submit a detailed quarterly activity report to the Agency, which will be included in the Agency monthly reports to the Board and posted on the Agency website. 1 PUBLC OUTREACHNTEREST The proposed action does not meet any of the criteria for added outreach efforts. This staff report will be posted on the Agency's website and made available for public review in the Agency's public lobby area.. G" O Criterion 1: Requires Council action on the use of public funds equal to $1 million or greater. - O Criterion 2: Adoption of a new or revised policy that may have implications for public health, safety, quality of life, or financialleconomic vitality of the City. Criterion 3: Consideration of proposed changes to service delivery, programs, or staffing that may have impacts to community services and have been identified by staff, the Board or Council, or a community group that requires special outreach.,

5 DOWNTOWN ASSOCATON AGREEMENT Page 5 June 11,2009 COORDNATON This action has been coordinated with the Agency's General Counsel. FSCAL MPACT Funding for the proposed agreement in the amount of $525,000 is provided for in FY of the Agency's Adopted Two-Year Spending Plan and is contingent upon Board approval of the project appropriations included as a separate action on today's Agenda. Funding is provided for as follows: $400,000 from San Jose Downtown Association project line and $125,000 fiom Public Space Programs project line in Merged Area. Exempt File No. PP i xecutive Director