Moab City Council approves $250,000 Jeep sponsorship deal and five loaned vehicles

Check your town budget for extra cash this week. The Moab City Council voted 4 to 0 on Tuesday to make Jeep the official four wheel drive of Moab, closing a two year sponsorship deal with FCA US LLC. Jeep was the only company to answer the city vehicle sponsorship request for proposals. City Manager Michael Black pitched it as a two year pilot, rather than a permanent arrangement. FCA sends Moab $125,000 in unrestricted funds annually, with the first payment due within 45 days, for a total of $250,000 across the term. The city also gets five loaned Jeep vehicles. Staff valued the loan at roughly $200,000 over two years in avoided lease, purchase, and insurance costs. Black said the loaned fleet frees Moab to sell several vehicles it already owns, including retired police cruisers, which could bring another $50,000 to $75,000 back into the vehicle fund at auction. Jeep also pledges a $10 million media value support commitment over the two years, though the contract only asks the company to make commercially reasonable efforts toward that number. In exchange, Jeep gets exclusivity as no competing automaker can sponsor the city, plus a worldwide license to use Moab's name and event footage in marketing. Jeep commits to at least two trail maintenance projects on Moab area trails and sponsorship of two community events a year. Councilmember Miles Loftin pushed for a framework letting the council see Jeep marketing before it goes international because residents fear the town will get lost in this. Councilmember Colin Topper said the two year term keeps it in Jeep's interest to show the soul of Moab rather than sell it. For your business, big corporate dollars can rescue local tax bills if you write the right rules into the contract.