The City of Scottsdale is going it alone when it comes to marketing Old Town.
A memo from City Manager Greg Caton dated Dec. 26 to Mayor Lisa Borowsky and the rest of the city council said that instead of contracting with a private company to market all the area has to offer, as it has traditionally done, the city will use staff from the city’s tourism and events department as well the communications department to do the work.
“The in-house model ensures that the vast majority of funding is invested in public-facing marketing rather than administrative overhead, directly addressing council concerns raised during review of the agency proposal,” the memo states. “By leveraging existing staff and limiting outside services to targeted professional support, and adding short-term project management capacity during this period, the city can deliver a more efficient, transparent, and responsive Old Town marketing program that better supports local businesses and residents.”
The city sets aside 5% of the bed tax revenue every year to market Old Town. This year that comes to $1.3 million. There is approximately $1 million left in the fiscal year 2025-26 budget.
The city has used a company named HAPI to conduct the marketing for the last nine years, but unhappy with the results and lack of communication, city leaders recently went out to bid for a new company.
Staff chose Scottsdale-based James Agency for the new contract, but city council members and members of the public took offense at the council’s Dec. 2 meeting to how much money the new agreement would be spent on actual marketing. Based on the company’s fees of $170 per hour, an estimated $600,000 would be left to go to advertising, with the rest going toward administrative costs.
Members of the public were also concerned about how much information about the agreement was redacted from copies the public could read.
So the city council voted down the contract with the James Agency 5-2 with no clear direction on what to do next.
French Thompson, a board member of the Scottsdale Gallery Association, was one of the public speakers who raised concerns at the Dec. 2 meeting over the money and redacted material, said using city staff, along with input from business owners in the area, should be “a good thing.”
City Councilman Barry Graham gave the move cautious approval.
“I think we were getting bad value in the past so I say we let the staff try this,” he said.
However, he also hedged his support by saying, “We can always issue another (request for proposal) at any time.”
Old Town Gallery owner Bob Pejman said he likes the idea of using city staff to market Old Town, but acknowledged not everyone does.
“I was encouraged by the city manager’s memo on Old Town marketing. Old Town’s four distinct districts each offer unique experiences that appeal to different audiences, and when marketed thoughtfully, they create powerful synergy,” Pejman wrote in an email to the Daily Indpendent. “That said, I believe that a successful advertising strategy should highlight each district individually—showcasing its strengths and targeting the audiences it attracts best. While many stakeholders were disappointed that the city did not retain an outside agency, there is strong support for collaborating with city staff to ensure the in-house marketing plan is focused, strategic, and results-driven. “
City Councilwoman Maryann McAllen, who, along with city councilwoman Solange Whitehead, voted for the contract the James Agency said the city simply doesn’t have the staff to take on such a project in-house.
“I sent Greg Caton an email telling him that I thought that was not in the best interest of the businesses in the Old Town area,” she said. “We are already understaffed in that department.
“If we weren’t getting the results that Old Town businesses wanted with (9) years at a marketing firm with more staff, how are we going to get a better result with less staff and no marketing firm?”
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J. Graber
News Editor | Scottsdale
Meet J.
Graber joined Independent Newsmedia, Inc., USA, in February 2023, starting his career as a staff writer covering the City of Scottsdale and was named news editor of the Scottsdale Independent in 2024.
Community: He serves on the alter guild as well as being an usher at St. Mathews Episcopal Church in Chandler.
Education: He earned his BA in creative writing with a minor in journalism from the University of Arizona. He then earned an MS in Mass Communications from the University of Oregon.
Random Fact: He enjoys reading novels by Russian authors.
Hobbies: Playing classical guitar, reading, fishing, going to the gym, watching sports and spending time with his family.