The gift cards serve as an additional component of the city’s economic development program to support local businesses during the coronavirus pandemic, according to meeting documents.
Funds for this economic development program are available through the city’s Tax Increment Financing fund, per city meeting documents.
During the first round of gift card distribution, about 900 gift cards were redeemed by Colleyville residents at Colleyville restaurants. Other businesses have informed the city they are waiting until the end of the month to redeem the gift cards all at one time. The city is expecting about 400 more gift cards to be redeemed based on those conversations, Assistant City Manager Adrienne Lothery said during the meeting.
Based on this information, the city estimates about 9%-15% of mailed gift cards were used. A second distribution of the gift cards is needed to help the city reach its goal of 30%-40% utilization, according to meeting documents.
“The objective here is to get money into the hands of the businesses because they really need it,” Mayor Richard Newton said.
Assistant City Manager Jerry Ducay said the city has spent an estimated $42,000 on the program so far for the gift cards.
“This is not an extraordinary cost but it does provide a great benefit,” Ducay said. “It combines our two greatest assets—our residents and our businesses, because our residents choose where they go shopping.”
