Not HAPI: How Bisbee’s DMO Process Went Off Track

On May 5, 2026, the Bisbee City Council voted to enter into a contract with Hackett Advertising Public Relations Interactive, LLC (HAPI) — a Scottsdale-based for-profit marketing firm — to manage the City’s Destination Marketing Organization (DMO) services for $4,000/month. Bisbee Forward, the only nonprofit to submit a proposal, and therefore the only entity eligible to serve as a DMO, was passed over despite offering to do the work pro bono.

Our intention has always been straightforward: invest bed tax revenues in effective marketing for Bisbee, for the benefit of local businesses and in turn the residents who benefit from a city whose sales tax reserves are healthy. In fact, it was the Mayor himself who initially asked us to serve as the DMO, saying it would be easier than the city continuing to do it. For a moment last fall, the Mayor and the businesses were in alignment about what needed to be done. But then the offer of the Fair Building was introduced, and it changed the entire landscape of the discussion.

On Friday, we filed a formal protest of the city’s decision to enter into the contract with HAPI. Here’s what you need to know. Why We're Protesting

We believe the award to HAPI is invalid on multiple grounds.

1. HAPI isn't eligible

The City's own RFP defined a DMO as "a nonprofit organization or governmental entity." HAPI is a for-profit LLC. The contract itself acknowledges this — it states that the City will continue to serve as the designated DMO while HAPI merely manages services. In other words, the City awarded a DMO contract to a company that legally cannot be a DMO.

2. The RFP process was built on a false premise

The entire justification for rescinding our negotiation was that other nonprofits would compete. None did. Having invalidated that justification, the City should have returned to finalizing our contract — not awarded the role to a for-profit firm from Scottsdale that had never visited Bisbee.

3. The Mayor's own words reveal the real reason

Despite City Council voting to acquire the Fair Building on April 7, the Bisbee Restoration Museum ultimately rescinded their offer on April 10, due in part to community opposition, including concerns that bed tax funds would be diverted from tourism promotion to building maintenance. The Mayor blamed Bisbee Forward for this outcome.

And while our RFP evaluation was still ongoing, the Mayor sent an email to the Bisbee Restoration Museum board calling our members self-interested and dismissing our pro bono offer as a money grab. This was written about neighbors who volunteered to serve their community for free. By keeping the DMO designation with the City — and hiring HAPI to manage it — effectively, the Mayor retains full control over how bed tax funds are spent. We believe that is the outcome this process was designed to produce. The Timeline

Apr 15, 2025 — The Mayor asks Bisbee businesses to form a cohesive group to advocate with a unified voice before Council.

July/Aug 2025 — Bisbee Forward is formed. We partner with the City to collect data, analyze current bed tax fund expenditures, and present our findings to Council. We propose flipping the current spending ratio — from approximately 30% marketing / 70% visitor center to a model that makes the fund self-sustaining and prioritizes tourism promotion. Our research and recommendations are well received by Council.

Oct 21, 2025 — Rather than simply advising on marketing strategy, the Mayor asks Bisbee Forward to become the City’s official Destination Marketing Organization. Council votes to negotiate a formal DMO agreement with Bisbee Forward.

Oct 28, 2025 — Mayor receives the first offer of the Fair Building from the Bisbee Restoration Museum

Nov 18, 2025 — Council instructs the city lawyer to finalize a contract funding Bisbee Forward as the DMO with 70% of bed tax revenue and $115,000 to start. Despite the council’s unanimous agreement, the Mayor is visibly upset and tells them “you guys are killing yourselves.” He knows the remaining 30% of bed tax revenue is not enough to make his Fair Building/Visitor Center acquisition workable.

Jan 20, 2026 — The Mayor brings a motion to rescind Bisbee Forward’s DMO offer and instead issue an RFP. The City lawyer states it’s because another nonprofit has come forward, so this can no longer proceed as a sole-source procurement. Despite questions and reservations from council members, the motion to rescind passes.

Feb 24, 2026 — A convoluted RFP conflating a DMO and a marketing agency is issued — submitted by the Mayor himself

March 26, 2026 - Bisbee Forward responds to the RFP. We are the only nonprofit to submit a proposal. The rest of the proposals are from for-profit marketing agencies. Please take a look at our proposal here.

Apr 7, 2026 — Despite much public opposition, council votes to acquire the Fair Building

Apr 10, 2026 — The Restoration Museum decides to rescind its offer to gift the Fair Building to the City

Apr 11, 2026 — The Mayor sends an angry email to board of the Restoration Museum blaming Bisbee Forward for this outcome

Apr 21, 2026 — The committee appointed to evaluate the DMO respondents is made up of two city council members (Lori Reynolds and Trish Damon) and two city employees (interim city manager, Ashlee Coronado, and Queen Mine Tour director, Douglas Graeme). It consists of no lodging stakeholders and very little marketing expertise. They select a for-profit marketing agency from Scottsdale that has never been to Bisbee.

Apr 29, 2026 — Contract terms are made public for the first time in council agenda: $4,000/month to HAPI to perform the work Bisbee Forward had offered to do for free. All marketing agency services (website, advertising campaigns, design work, etc) will be billed on top of this fee.

May 5, 2026 — Council approves the contract with HAPI May 8, 2026 — Bisbee Forward formally protests the bid award

What We're Asking For

Our protest asks the City to:

• Immediately pause the HAPI contract pending resolution of the protest;

• Void the award to HAPI on the grounds that it is legally defective; and

• Restore the status quo by establishing Bisbee Forward as the City's official DMO and returning to the agreed terms from the November 18, 2025 Work Session: 70% of bed tax revenues and an initial $115,000.

The City has 15 days to respond to our protest. If they reject it, we have the right to pursue further remedies including the Arizona Attorney General's office and Cochise County Superior Court.

What You Can Do

• Spread the word. Share this summary with other Bisbee business owners and residents who care about how bed tax dollars are spent.

• Stay informed. We will keep members updated as the protest process unfolds.

• Vote. Informed voters make informed decisions. The Bisbee Primary Election is July 21, 2026. Register by June 22, early voting begins June 24. Make your voice count.