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Home My WebLink AboutMinutes - 1/24/2012 - Community Development Committee SPECIAL COMMUNITY DEVELOPMENT COMMITTEE MEETING �'" Tuesday,January 24,2012 Aldermen's Conference Room, 7:00 p.m. In Attendance: Committee Members: Chairman Alderman Condon, Alderman Peterson, �;nd Alderman Santi. Absent: None. Also in Attendance: Deputy City Administrator Martin and City Clerk Jones. Also in Attendance: Kay Bates, McHenry Area Chamber of Commerce Darrellynn Hanes, Worldwide Travelers and McHenry Area Chamber of Commerce Chairman Alderman Condon called the meeting to order at 7:10 p.m. Discussion Resarding Economic Develonment Partnership with McHenry Area Chamber of Commerce for the Creation of a Smartphone App to Promote Local Business Deputy City Administrator Martin reiterated to the Committee that in October 2010, the Committee had discussed various economic development and incentives for small and medium-size businesses. Continuing economic development efforts, such as promoting local shopping and assisting existing businesses has been an ongoing partnership effort between the City and the McHenry Area Chamber of Commerce (the"Chamber"). �-- Over the past months, the City and the Chamber have been researching a concept developed by a group of former Northwestern University students, which transitioned into a permanent business called Sweet Perk (www.sweetperk.com). Sweet Perk is a subscriber service that would enable McHenry retailers and service providers to create perks or incentives to attract customers using a uniquely designed City of McHenry "Shop Local App." For a minimum monthly fee of$20, subscribers will be assigned a Shop Local App account to create perks or coupons using a quick-response or"QR" bar code provided by Sweet Perk. Shoppers can login to the merchant website and scan the QR code using an IPhone 3G or Android 2.2 with a camera and redeem the "perk" at point of sale. The QR code can also be offered in print ads and on business cards. Sweet Perk also enables retailers to interact with customers using instant messaging and to track consumer shopping habits when the"perk" is redeemed. Deputy City Administrator Martin outlined the following advantages to support the creation of a McHenry smart phone app: • 50% of all cellular phone users have smart phones and 10% of all black Friday purchases were made using mobile phone technology; • Creates a distinctive shop local identity for the City; • Promotes loyalty between consumers and producers; • Businesses can track customer patterns as part of their subscription to the service; • Businesses can market instantly and creatively; � Special Community Development Committee Meeting January 24, 2012 Page 2 � • Transactions and incentives can occur the same day and be redeemed at point of sale froni customers' smart phones; • Start-up costs, training and individual subscriptions to the service are relatively inexpensive; • Tax dollars stay in the City; and • Strengthened partnership between the City, Chamber, residents and businesses. Deputy Cit.✓ Administrator Martin informed the Committee he has ascertained that several communitie s and organizations have engaged the services of Sweet Perk, including: • Downtown Oak Park; • Rogers Park; • City of Lake Forest; • Downtown Evanston; and • Downtown Naperville. Evanston has been live with their App for six months. 3,716 people use the service and nearly 1,500 perks have been redeemed. Oak Park and Naperville have been live for approximately two months. Oak Park has over 1,800 users and 175 perks redeemed and Naperville has over 2,600 users with 228 perks redeemed. An initial f-ee of $7,500 is charged, which includes an I-PAD II for community hosting `.- purposes, ten days of training for businesses, City staff, Chamber staff and ongoing support provided by Sweet Perk. A monthly hosting fee of $30 is paid to Sweet Perk and each business subscribing to the service pays $20 per month, with the option of adding unlimited messaging for an additional $5 per month. The City and the Chamber have been working on this proposal cooperatively and have received training and information from Sweet Perk using web-based communication. Deputy City Administrator Martin informed the Committee that the Chamber Board considered the proposal at their meeting, which was held on January 24, 2012. Kay Bates, Executive Director of the McHenry Area Chamber of Commerce and Darrellynn Hanes, past Chamber Board President and Shop Local Committee Chair are in attendance to address any inquiries the Committee might have. Staff is proposing this economic tool be offered Citywide. Staff is seeking feedback on the overall concept and support for a cost-sharing arrangement with the Chamber to implement the program. The Chamber would likely be responsible and acting as the City of McHenry business liaison, which requires assisting businesses with the program and making periodic changes or updates to the application. Responding to inquiries from Chairman Alderman Condon, Ms. Hanes stated the app is available via a computer website in addition to smartphones; however, currently only the IPhone 3G or Android 2.2 accept the app. Additionally, subscribers have the capacity to opt � out of the messaging portion of the app. Special Community Development Committee Meeting January 24, 2012 Page 3 � Chairman Alderman Condon opined that she likes the concept and finds it innovative. Executive ;�irector Bates stated that statistics indicate 20% of the big chain stores are involved in a"perks"program. Alderman I'eterson inquired about the start-up fee and asked who would be responsible for that cost. P,�Is. Hanes stated that while the concept was received favorably by the Board at today's me�,ting there was no firm commitment as the Boazd is awaiting input from the City following tliis meeting. However, Ms. Hanes indicated the Chamber would like the City to pay the start-up fee of$7,500 and then the Chamber would pay the monthly maintenance fee of$30. Responding to an inquiry from Alderman Santi, Deputy City Administrator Martin stated that the term of the agreement is three years. Alderman Santi voiced concern that the current ternis would change upon expiration of the 3-year term. Executive Director Bates concurred with Alderman Santi's concerns. Alderman Santi inquired whether each business had to sign an agreement, whether there is a minimum number of businesses that are required to subscribe and whether there is a cost to the individual user. Ms. Hanes stated that there is no cost to the individual user. Alderman � Santi stated he likes the concept, but would like to review a copy of Sweet Perk's contract to become more familiar with the details of the proposal. Chairman Alderman Condon stated emphatically that if the City pays the start-up fee for Sweet Perk the benefit would be for City businesses only. Executive Director Bates agreed. Alderman Santi opined that if businesses outside the City wished to take part they could pay a fee. Alderman Peterson inquired whether the app would only be available to Chamber members. Executive Director Bates indicated the app would be available to both members and non- members. Alderman Santi opined he would be interested in reviewing some information from Naperville and Lake Forest. Alderman Peterson inquired whether any other entity was offering something like Sweet Perk. Ms. Hanes stated that she is unaware of a similar vendor, but that successful copycats are likely to follow. It is the consensus of the Committee that additional information is necessary prior to making a decision regarding this concept. � Special Community Development Committee Meeting January 24, 2012 Page 4 �... Deputy Citv Administrator Martin assured the Committee that he would obtain a copy of the Agreement for review. Chairman Alderman Condon suggested another Special Meeting of the Community Development Committee, with members of the Chamber Board and representatives of Sweet Perk in attE�ndance. The dates suggested for the Special Meeting are February 7, 2012 at 7:00 p.m. o�February 28, 2012 at 7:00 p.m. in the Alderman's Conference Room. Adiournment Motion by Santi, seconded by Peterson to adjourn the meeting at 8:06 p.m. Aye: Condon, Santi, Peterson Nay: None. Absent: None. Motion carried. Respectfully submitted, ��-�'l/ Y �i��V�� Geri Condon, Chairman � �