Is a gift card giveaway a good way to spend city money?

PORTLAND, Ore. - The City of Portland has a new plan to get you to do your holiday shopping downtown this year.

They are offering free garage parking, and a $50 gift card if you spend $50 at downtown businesses (there are stipulations - details at citycenter.katu.com).

Sounds like a great deal, but we wanted to know - where is this free money coming from?

The answer is that it comes from parking revenue.  And even though it isn't tax money, we asked whether it is the best way to be spending city money.

Chris Finks, President of the Downtown Marketing Initiative, said yes because it is the exact same market tactic that big retailers use.

"These are things that retailers and businesses and attractions and hoteliers have been doing for probably a decade," he said. "I think it's an aggressive way to do it and I think it's a sound business practice."

This is the first time the city has ever tried a giveaway promotion to attract people to downtown Portland. They say it's crucial because businesses really took a hit last season amid the recession and snowstorm.