STAFF REPORT
City of Lancaster
NB 1
4/8/2025
TN
Date: April 8, 2025
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Assistant City Manager
Sydney Yeseta, Manager - Economic Development
Subject:“Shop. Drive. Earn.” Economic Incentive Program Recommendations:
1. Adopt Resolution No. ____ confirming the “Shop. Drive. Earn.” Economic Incentive Program as a valid municipal affair.
2. Appropriate $500,000.00 from General Fund to 101.24000.5312 Special Activity Supplies to administer the program.
G.C. Section 84308: No
Fiscal Impact:
$1,250,000.00 total program expenditure. $500,000.00 will be allocated to 101.24000.5312 in FY 24-25. The remaining $750,000.00 will be allocated to 101.10300.5312 during the FY 25-26 budget cycle.
Background:
Lancaster’s City Council has always been supportive of the local business community. Throughout the COVID-19 pandemic, the City Council remained steadfast in its commitment to creating and supporting a thriving economy. During that time, several award winning programs were developed that supported local business operations, including Operation Jump Start, Stand Strong Business Loan Program, Stand Strong Youth Sports Loan Program, and several iterations of shop local programs that incentivized consumers to spend their dollars locally.
In November 2022, Lancaster launched the Shop Local, Shop Lancaster program in partnership with Bludot Technologies, Inc and its Open Rewards app. This program allows users to earn rewards on purchases made at local businesses through City sponsored rewards. These rewards can then be redeemed when additional purchases are made at eligible businesses within Lancaster City limits.
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To date, the program has generated over $3 million in economic impact, delivering an 8x Return on Investment (ROI). Further, 82% of participants report that the program influenced their decision to shop locally.
The “Shop. Drive. Earn.” program is designed to build on the momentum of the existing shop local initiatives and further encourage patronizing local businesses. Through this program, consumers who purchase or lease new and used vehicles from participating dealerships within Lancaster will be eligible to receive rewards through the Open Rewards app. New car purchases and leases will earn $175 rewards and used car purchases will earn $100.
Participating dealerships are those that sell both new and used vehicles including: Antelope Valley Chevrolet, Antelope Valley Harley Davidson, Diamond Ford, Diamond Mazda, Honda Lancaster, Hunter Dodge Chrysler Jeep Fiat, RAM of the West, Toyota of Lancaster, and Trust Subaru.
These rewards are exclusively redeemable at businesses within Lancaster’s City limits, creating a powerful multiplier effect. As recipients spend their rewards locally, they drive economic activity and keep the sales tax dollars within the City. In turn, these funds are reinvested into essential community initiatives such as public safety programs, park improvements, and other projects that enhance the quality of life for both residents and businesses.
City of Lancaster Staff will work with Bludot Technologies, Inc., the participating vehicle dealerships, and other entities to ensure proper accounting procedures and documentation for the program.
SY/hb
Attachment:
Resolution No.