Scottsdale City Council voted Dec. 2 to deny awarding a contract for Old Town Scottsdale marketing to The James Agency after a contentious public and council debate about transparency and how much of the budget would be spent on actual media buys.

City staff presented the results of a recent RFP and said the city’s FY25/26 Old Town marketing appropriation is $1,300,000; roughly $300,000 had been spent to date this fiscal year, staff said. The selection followed a Keane merchant engagement study that city staff folded into the RFP to improve local outreach and performance reporting. Rachel Smetana of the city’s economic development office told the council The James Agency was chosen because it is a full‑service local firm with a track record in hospitality and a public‑facing dashboard for campaign KPIs. "We really are excited to start this work with the James Agency," Smetana said.

But the award drew immediate pushback from merchants and council members. Several speakers representing Old Town businesses said the previous vendor had not been sufficiently transparent and welcomed a new approach, but others asked for clarity about how much of the contract is devoted to creative and staff fees versus media placement. Bob Petchman, an Old Town business representative, said the area "needs a lot of help" and urged that more of the contract be allocated to advertising placements rather than firm overhead.

Council members pressed staff on the contract details and on redactions in the proposal packet presented to the public; several said the public record should be clearer. One concern that recurred during the hearing was that about 40% of the proposal’s projected investment was earmarked for creative and related services (what some described as overhead), leaving a smaller share for actual ad placements — a split several council members and merchants said they found inconsistent with expectations.

The city attorney warned that procurement rules limit what the council can do while a procurement is pending, and advised care in sending the matter to ad hoc council groups. After extended discussion — including multiple alternate motions to continue review, send the item to a subcommittee, or deny the contract outright — a majority voted to deny resolution 13562, the contract award to The James Agency. The denial leaves the FY25/26 Old Town marketing appropriation in place but without a new vendor under that resolution; staff said the prior cooperative agreement with the previous vendor remains in place for a limited period while the city determines next steps.

Stakeholders who testified at the meeting urged a combination of transparency, stronger KPIs and a larger share of funds directed at paid advertising; others urged patience to craft a contract that maximizes local merchant benefit. City staff told the council the proposal included scope items — stakeholder engagement, campaign creative, and performance metrics — that can be negotiated if the council directs.