Why this city is paying residents to shop at local businesses

Colleyville residents have been mailed gift cards from the city to help businesses during construction to widen Colleyville Boulevard to six lanes.

The cards, good for $10 off a purchase of $20 or more, shows an image of Uncle Sam saying, “We want you to shop in Colleyville.”

The gift cards can be used at any Colleyville business, although most of them are along Texas 26. The $38.2 million project should be finished in 2019.

City manager Jerry Ducay said 9,000 gift cards were mailed, and most residents received them last week.

Some businesses are already seeing results. Westlake Ace Hardware general manager Sara Smith said customers had redeemed 49 gift cards as of Monday morning.

“We’ve actually gotten people stopping in who haven’t been coming in as much,” Smith said. “I think this is a really great tool the city is using to help businesses.”

If a business does not accept the gift cards, residents can stop by city hall with a receipt and collect their $10, Ducay said.

Assistant city manager Mark Wood said the gift cards are part of a business promotion program that started in January. In the first quarter, the city gave $1,000 grants to businesses to help with advertising. Colleyville budgeted $100,000 for the advertising program, and 80 businesses got involved.

During the second quarter, schools competed to collect the most receipts from Colleyville businesses. Heritage Middle School won and received $5,000 for its Parent Teacher Association.

Colleyville is using money from its general fund and tax increment financing district to pay for the promotions. Tax increment financing districts are used for economic develoopment.

The city sent 9,000 gift cards to homes in Colleyville meaning that $90,000 will be available to reimburse businesses. However Wood said that some of the gift cards probably won’t be used.

The city is planning for the fourth quarter, and Wood welcomes ideas.

“We want to think outside of the box,” he said.

This story was originally published July 12, 2018 at 2:55 PM.