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Lancaster approves $1.25 million "Shop, Drive, Earn" incentive program to boost local spending
Summary
Council adopted Resolution 25-15 to fund a vehicle-purchase rewards program tied to the city's Open Rewards app, with $1,000,000 going into user rewards and $250,000 for marketing; council voted unanimously.
Lancaster City Council voted unanimously to adopt Resolution 25-15 and launch the "Shop, Drive, Earn" economic incentive program, directing $1,250,000 toward rewards to encourage vehicle buyers to spend in city businesses.
The program will issue $175 in Open Rewards app credits for customers who purchase or lease a new vehicle from a Lancaster dealership and $100 for purchasers of used vehicles. Staff said $1,000,000 of the allocation will be loaded into the app for user rewards and $250,000 will fund program marketing.
City economic development staff presented past performance data for the city's Open Rewards shop-local program, saying it had generated more than $3,000,000 in economic impact since launch and described that figure as an "8 times" return on investment compared with prior program funding. When a council member asked how the 8x figure was calculated, staff replied that the calculation was based on receipts recorded through the app and prior program investment ($500,000) and clarified the return represents money driven into the local economy; when pressed whether the 8x was only economic activity or included recovered tax dollars, staff said "Both."
Staff framed the new vehicle incentive as a way to keep sales tax revenue and spending inside Lancaster, which the presentation said would support public safety, parks and other local projects. The council approved the recommendation and the resolution without further amendment.
Votes and formal action: the council adopted Resolution 25-15 (Shop, Drive, Earn) by unanimous vote. The motion and second were recorded in the meeting audio but not tied to a named mover or seconder in the transcript record provided.
The program will be administered through the city's Open Rewards app (partner: Blue Dot Technologies). Staff said the city will monitor participation and economic impact through receipts uploaded to the app.
The council did not specify an implementation start date at the meeting; staff presentation outlined the program structure and recommended the funding authorization in the resolution.
