To: Honorable Mayor and Members of Town Council
From: Kristin Read, Assistant Town Manager
Frank Gray, President/CEO, Castle Rock Economic Development Council
Title
Discussion/Direction: Local Business Support Efforts
Body
________________________________________________________________________________
Discussion
Council at its May 5 meeting heard an update about the Town’s responses to the pandemic, including the four programs being offered that will provide up to $1.3 million in support to the local business community (see Attachment A for an updated one-page summary of those efforts). Council at that time directed staff to bring back for discussion innovative ways to incentivize local shopping. Staff and its economic partners have discussed, and have been mutually engaging in, such efforts and provide the following updates:
Supporting our Castle Rock Community campaign
Following the Council discussion on April 21 about enhancing efforts to support local businesses, staff from the Town, the Castle Rock Chamber of Commerce and the Downtown Alliance collaborated on the development of a brand and hashtag to use as information is shared about local businesses again being open and prepared to safely serve clients. These groups had already been sharing such information, but not with a common brand. The decision was made that each entity would continue to use any previous branding but would enhance that with an overall brand of “Supporting our Castle Rock Community” and hashtag of #CRCommUNITY. Further, profile picture frames were developed for Facebook business users to advertise that they are open, and for others to indicate that they support shopping locally. Examples of content generated to date in association with this campaign are included in Attachment B; thank you to the Chamber for assembling these examples. These groups envision continuing this campaign as the community furthers its way to being fully reopen. Additional options to extend this brand include adding Downtown streetlight banners, paid advertisements, printed materials and more, but these would require financial resources. Current efforts have been accomplished cost free.
In addition to the branding effort, the Economic Development Council intends to partner with a media strategist to get out positive stories via regional media outlets between June and September that Castle Rock is safe and open for business. This effort is expected to cost about $6,000 and should offer a good return on investment as residents from throughout Town and the broader metropolitan area patronize our local businesses.
Assistance for Downtown restaurants and merchants
Almost as soon as the pandemic began impacting Downtown Castle Rock restaurants, staff from the Downtown Alliance and the Town collaborated to offer to the restaurants the chance to apply for a temporary curbside pick-up parking space. About six businesses have requested a space to date.
In attempt to further support Downtown restaurants, Downtown Alliance staff has been working with Town staff and Downtown property owners to explore the possibility of purchasing and placing throughout Downtown sets of tables and chairs at which Downtown restaurant patrons can linger and enjoy carryout meals, as restaurant capacities are expected to continue being restricted under State social distancing guidelines. This lingering could provide a boost to retailers in the area through increased pedestrian activity. The Alliance, which would purchase the furnishings, has identified the type it wishes to buy and potential locations for settings. That team will continue pursuing this effort and will provide updates to Council and the public as milestones are achieved.
Further, the Castle Rock Economic Partnership has discussed whether establishment of a common consumption area, which would allow alcohol to be consumed in broader areas of Downtown, would be beneficial at this time. Other tactics being used or explored by the Downtown Alliance include a “shop local” bingo card online game, with a chance to win gift cards; a Downtown “restaurant week” promotion; and using chalk art to bring color to and spread positive messages within Downtown.
Possibilities for incentive programs
Prior to Council’s May 5 meeting, staff shared a memo summarizing the results of the Town’s 2009 “Rock Your Dollar” program, which aimed to stimulate the Castle Rock economy during the Great Recession. Council reviewed that and other options for further aiding local businesses and directed staff to develop for discussion innovative ways to incentivize local shopping. Staff researched various options including mobile applications that incentivize local shopping; the concept of “cash mobs” - think flash mobs - to concentrate support on certain businesses at set times; and an option for a program in the same vein as “Rock Your Dollar,” which would enable the creation of a currency that could only be spent at participating Castle Rock businesses. Based upon past experience and current constraints, staff’s preference has gravitated toward the latter of these.
Further exploring this idea, if fewer than 350 businesses participate in a “Castle Rock Cash” program, the service would cost $79/month. Staff would suggest keeping the currency valid through 2020, so the software would cost roughly $550 for seven months. Staff believes it could recover this cost by offering to businesses cost-effective advertising opportunities that are built into the software. If this idea should move forward, staff would plan to first advertise to businesses the opportunity to get involved and then to promote the program using various methods, including a Townwide mailer that would contain the names of the participating businesses. The cost for that mailer would be roughly $8,000. Communications to promote the program would continue throughout the period the cash is valid - most at nominal or no cost.
In addition to supporting participating businesses by using Town resources to promote the program, Council might wish to incent the purchase of the “cash” using Town funds - either by offering a percentage match or by using a game-type feature embedded into the hosting website to randomize the amount of any match. Staff has not yet worked out several details related to this overall idea, pending Council feedback and direction - including on the level of financial investment the Town should provide. Should this incentive concept not be the right fit for Council’s vision, the Chamber and other members of the economic partnership have other ideas that can be explored.
Staff welcomes Council’s feedback on the efforts outlined in this memo, as well as thoughts on any others it wishes for the Town, Chamber, EDC and Downtown Alliance to pursue.
Attachments
Attachment A: UPDATED: COVID-19 Business Support Programs In Castle Rock
Attachment B: Examples of Content for “Supporting Our Castle Rock Community” Campaign