Council donates to TA marketing plan

When opportunities arise, grab them…

The Crested Butte Town Council has joined local municipalities Mt. Crested Butte and Gunnison in donating money to an advertising project proposed by the Gunnison-Crested Butte Tourism Association.

The council agreed Monday to allocate up to $8,333 to help pay for an eight-page pull-out in the Colorado Tourism Planner. The project will cost a total of $96,000 and be inserted in 400,000 state travel planners. The planners are sent to people who request information on Colorado tourism.
TA executive director Pamela Loughman told the council that while she did not get a $25,000 state grant to help pay for the project, the county Local Marketing District (LMD, the county commissioners) did award $25,000 toward the promotion.
Loughman said the TA would be selling 21 spots on a page of business listings as part of the eight-page product. That could reduce the amount paid by the three municipalities.
“Our goal was to make this a regional collaboration,” Loughman explained. “The initial concept was a broad partnership. The LMD made it clear their $25,000 donation could impact our budget next year so I am hoping for broad collaboration and erring on the side of caution.”
Councilperson Jim Schmidt asked if the TA had a fund balance reserve that could pay for the promotion. Loughman said the TA had a small contingency fund and the LMD had cash flow issues between tax collections and monthly cash needs. According to county records, The LMD cash reserve at the end of 2012 was $435,525 but cash flow issues take that down significantly throughout the year, especially in the fall.
“I think this is fantastic,” said Councilperson and TA representative John Wirsing. “This is targeted to 400,000 people who request information on traveling to Colorado. It is Pamela’s brainchild and it’s the first time such a pullout is being used in the state planner. If we don’t do it, the state tourism office said they will sell it to someone else because they think it is such a good idea.”
Loughman said the TA has the right of first refusal in future years to continue the pullout promotion. She told the council the cost is just 24 cents per piece and will include unique calls to action to help track the success of the idea.
“I think the idea is great and it is outside the box,” said Schmidt. “I just have a hard time with the town funding the TA. As far as all coming together and being all kumbaya, we did that years ago when we passed the lodging tax to pay for advertising. That’s what it is meant for. I wouldn’t come to the TA and ask for money to expand our ice rink. I know it’s not a lot of money but there are other places in town we could put $8,000.”
“I’d compare it to the $25,000 we set aside for the USA Pro Challenge bike race,” responded Wirsing. “It is money spent on promoting town. It’s exposure. It’s promotion. This is targeted to a group already considering coming to Colorado. I just think it is a unique and interesting idea. It could be a great return on investment.”
“I agree. When opportunities come around we should take advantage of them,” said Councilperson Roland Mason. “I think our businesses in town would appreciate it.”
Loughman said the idea was to showcase the big picture of the valley and seasonality of opportunity to visit but each area of the county would see some play.
Mayor Aaron Huckstep said the town had a precedence of awarding money to organizations like the TA. “When the RTA asked for help in funding the winter flight from Houston, we gave money,” he said. “We are up over 8 percent in sales tax this year and I feel we can take some of that money and put it back in a place that might help continue that growth.”
“I like the idea and the piece, but feel they should adjust their budget this year and pay for it,” said Schmidt.
He voted no for the allocation while the rest of the council voted yes. Councilperson Shaun Matusewicz was not at the meeting.
Town manager Todd Crossett said the town could find money in both the 2013 and 2014 budgets to pay for the $8,333 project. Loughman said she did not plan on coming back to the council next year and asking for funds for the promotion.