Five months ago, the Malibu City Council approved $90,000 for the licensing and marketing of the city as a way to bring in more revenue.
Word about the licensing deal with New York-based Excel Corp. has spread, with Malibu Mayor Lou La Monte talking to CNBC this week.
In the interview, La Monte expresses support for Malibu-branded products.
“A lot of people have used our name over the years," La Monte told the business network. "We thought it was time for the city to take advantage of that."
The Malibu City Council voted on Oct. 22 to hire Excel Corp. for the creation and licensing of a new logo.
According to a city staff report, “Malibu is one of a few cities that has world-wide name recognition. Many private companies are currently profiting from the use of the Malibu name. Products such as the Chevy Malibu, Malibu Rum, Malibu Barbie and Malibu Boats are actively being marketed. The city has a unique opportunity to receive a substantial amount of revenue from its own licensing program.”
In the CNBC story, the reporter, Jane Wells, asks the question: “Why would this reclusive enclave want to draw attention to itself by licensing its image for a broad array of Malibu-branded products?”
La Monte responds it is all about providing services.
“Every city needs money. We've got 15 million people who come here a year, and we want the water to be clean for them, we want the streets to be safe for them," La Monte said.
Excel's vice president of licensing, Rob Stone, told CNBC he hopes to have the first Malibu clothing line available by 2014.
“The first collection we are going to be doing is sort of a lifestyle fashion line. Envision Hollister meets Abercrombie meets the Gap, and then mix all those together and sell them at Urban Outfitters," Stone told the network.
The city believes it will be able to generate $3 million in revenue from the program within five years, according to the city staff report.