R-2000 - 01/25/2022 - MARKETING - Resolutions Supporting Documents ITEM 9.A.3
BOARD OF TRUSTEES MEETING
VILLAGE of SAMUEL E. DEAN BOARD ROOM
OAK BR , K BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
January 25,2022
SUBJECT: Oak Brook Magazine—Hotel And Tourism Advertising
FROM: Greg Summers, Village Manager 6--S.
BUDGET SOURCE/BUDGET IMPACT: $40,000 from 171-73600 "Hotel/Motel -
Promotional"
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RECOMMENDED MOTION: I move the Village Board adopt Resolution 2022-
MRTKG-AG-R-2000 "An Resolution Approving and Authorizing the Execution of an
Agreement By and Between The Village of Oak Brook and Hinsdale Magazine"
Backaround/History:
Scott Jonlich, the founder of Hinsdale Magazine and Downers Grove Magazine, has
expressed an interest in starting up a new local magazine for the Oak Brook, to be known
as Oak Brook Magazine. The magazine would focus on telling the "story of Oak Brook"
and would do so in print instead of exclusively social media or digital,although they would
also have a presence in the digital sphere. The magazine content would focus on persons
and stories of local interest and Oak Brook journalist Chuck Fieldman would join the team
for local reporting. In order to start up the publication, Oak Brook Magazine needs
commitments for advertising to cover the initial costs.
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Jim Pehta, Scott Jonlich and Larry Atseff presented to the Hotel Committee on October 14,
2021. At that time they presented that Oak Brook Magazine would be distributed to Oak
Brook homes, businesses and hotel rooms, estimated at 6,500 copies per issue. At that
presentation,the magazine was intended to be quarterly,but has now been updated to every
other month. Content and advertising from the Oak Brook Magazine will cross over with
both Hinsdale and Downers Grove Magazines.
Oak Brook Magazine would be an opportunity to not only promote the hotels and
restaurants but to also promote Oak Brook as a community. The proposal from Oak Brook
BOT AGENDA page 1
G-S.
Magazine requests $40,000 in 2022, which dollars would be applied to advertising
including three (3) pages for hotel and tourism advertising in each of the six (6) editions
across all three (3) magazines (Hinsdale, Downers Grove, and Oak Brook Magazines).
Based upon the promotional materials provided by Mr. Jonlich, the retail value of this
advertising is listed as $75,986;with the $40,000 ask them representing a 48%discount.
Staff expressed a concern with fronting $40,000 for a new startup, albeit from a publisher
with an established track record in nearby communities. In response, Mr. Jonlich agreed
to a staggered payment schedules as outlined below:
• February 1, 2022 $10,000
• April 1, 2022 $6,000
• June 1, 2022 $6,000
• August 1, 2022 $6,000
• October 1, 2022 $6,000
• December 1,2022 $6,000
$40,000
Having a staggered payment plan, aligned with the publication cycle, assures the Village
that we are paying for advertising per issue actually delivered as committed to,and that do
not pre-pay for issues that are never published.
The Village's approved 2022 Budget allocates $200,000 for Hotel Fund promotional
adverting in account 171-73600. That budget figure was derived based upon the Village's
prior hotel advertising consultant's annual costs, so approval of this expenditure would
reduce that expenditure accordingly.
Recommendation:
Approve Resolution 2022-MRTKG-AG-R-2000 approving an agreement for advertising
with Oak Brook Magazine, in the amount of$40,000.00 inclusive of three (3) pages of
hotel and tourism advertising per edition for six(6)2022 editions of Oak Brook,Hinsdale,
and Downers Grove Magazines.
BOT AGENDA page 2
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