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HomeMy WebLinkAboutInformational Update - Unite PD Economic Relief PgrmSTAFF REPORT CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT MEETING DATE PREPARED BY REQUEST Recommendation August 27, 2020 Martin Alvarez, Director, Economic Development Wayne Olson, Senior Development Analyst, Economic Development Receive and file an update of the Unite Palm Desert Economic Relief Program. 1. Receive and file an update of the Unite Palm Desert Economic Relief Program (UPDERP). Executive Summar�r On May 14, 2020, the City Council approved the Unite Palm Desert Economic Relief Program, allocating $2M in funding. The program is divided into five Focus Areas: • Focus Area 1— Emergency Loan Program ($1 M); � Focus Area 2— Ongoing business support (budgeted staff cost); • Focus Area 3— A hospitality industry program ($900K); • Focus Area 4- Priority One CV — California State University initiative ($50K); and, • Focus Area 5- Community partners program ($50K). Most of the programs have moved ahead and are in various stages of implementation. This report serves to update the City Council on those activities. Focus Area 1— Emeraencv Loan Proaram ($1 M) The loan application period opened on May 27, 2020, and closed on June 3, 2020. Staff received and reviewed 284 applications from a variety of local and small businesses in Palm Desert. With the assistance of the Economic Development subcommittee, a scoring matrix was developed and applied to eligible, complete applications. As of today, 158 loans were approved totaling $1 million. A list of businesses that received loans is attached. Successful applicants have been provided loan documents and have been asked to return them to staff to complete processing and the issuance of loan checks. When the available $1 million was exhausted, there were 124 applicants, who requested a total of $1,857,275, remaining unfunded. These applicants had not scored as highly as did the successful businesses. Instead, staff directed the remaining applicants to a number of local, state, and federal resources for additional, possible funding. Considerable need remains in the community, as evidenced by emails and phone calls from those who did not receive funding. W:\Staff Reports - Shared\Slaff Reports 08-27-2020\4- CITY CLERK 8-27-20�Urnle PD Update�SR 8 27 20 Recerve and Ftle doc Staff Report Unite Palm Desert Economic Relief Program Update August 27, 2020 Page 2 of 4 Focus Area 2— Onctoina business support (budqeted staff cost) The Economic Development Department continues to provide support in the form of resource identification, communication dissemination, and partner marketing. The marketing team developed the Unite Palm Desert brand, and all citywide pandemic recovery programs and efforts have been included within the overall Unite Palm Desert program. Below are several departmental highlights related to pandemic recovery work: • Staff continues to support the Economic Development Business Hotline, which has received over 1,000 inquiries since its creation on April 13, 2020. The majority of the inquiries were questions concerning COVID-19 business guidelines, protocols, loan funding, and status of business operations (i.e., "can I open..."?); • Marketing staff has been active with the EI Paseo Business Improvement District, along with various community partners such as the local Chamber of Commerce; • At the start of the pandemic, local business able to remain open were offered free banners; • Additional economic development work is being implemented by planning staff in the form of evaluating the closing of a local roadway (Lupine Lane) for public outdoor dining for nearby restaurants and businesses; • Staff also attended multiple webinars in order to gather information from the state, regional and valley-wide information resources to share with the local community; • Marketing staff continues to provide updates through social media channels, and has created live webinars with various updates on pandemic recovery assistance; • City staff has partnered with the Drive-in Movie at the Westfield Mall, and to secure back to school supplies for Abraham Lincoln Elementary School; • FIND Food Bank City Hall food donation drive plus a City $10K donation. The City also partnered with Modern Woodmen of America to secure an additional $1 K donation; • Unite Palm Desert community group is being put together to increase the impact of the Unite Palm Desert campaign. Members will include City staff, residents, business owners and more; • Marketing staff continues to reimagine traditional events, as to offer residents & visitors safe alternatives; • Installation of three Unite Palm Desert Murals; • Other City departments are contributing volumes of programs and recovery work under the Unite Palm Desert umbrella. Focus Area 3— A hospitalitv industry propram ($900K) The hospitality industry program is a buy-two-hotel-nights, get-third-night-free program being developed in concert with our local hospitality partners. All the hotels and timeshares within City limits will be invited to participate in the hospitality reimbursement program. Short-term rentals are prohibited from participating. This buy-two, get-third-free benefits the community by attracting visitors back to Palm Desert, and generating a third-night of TOT revenues and potential sales tax that may not otherwise have been generated without the hospitality reimbursement program. Marketing staff is presenting the specifics of the W.\Staff Reports - Shared\Staff Reports 08-27-2020\4- CITY CLERK 8-27-20\Unite PD Updale\SR f3 27 20 Recerve and Fle doc Staff Report Unite Palm Desert Economic Relief Program Update August 27, 2020 Page 3 of 4 program to the City Council under a separate staff report for implementation at future City Council meeting. Focus Area 4- Prioritv One CV — California State Universitv initiative ($50K) The City's newly formed 501 c4, Priority One CV (P1 CV), is now established as an independent corporation with the purpose to enhance the education, arts, environment, and economic resources for the residents and guests of the Greater Coachella Valley region. The primary initiative of the organization in securing a 4-year, standalone campus of the California State University system in Palm Desert. Board members of Priority One CV include: • Two Palm Desert Councilmembers (Harnik & Jonathan) • Palm Desert City Manager (Aylaian) • Coachella Valley Economic Partnership CEO (Wallace) • Greater Palm Springs Convention and Visitors Bureau (CVB) CEO (White) • Two additional board members will be voted upon at an upcoming board meeting To date, P1 CV has been the recipient of City of Palm Desert contributions totaling $150,000 ($100,000 in initial seed money; $50,000 Unite Palm Desert funding), as well as a pledge from the CVB in the amount of $30,000. The Board has engaged lobbying firms Strategies 360 and Gonsalves & Sons as strategic partners to help inform decision making in Sacramento. A written report of their activity will be presented to Council at an upcoming meeting in early 4t" Quarter of this year. Focus Area 5- Communitv aartners proaram ($50K) The community partners program anticipates the distribution of resources to various local community business organizations that would help support recovery efforts Citywide. Programs are being discussed with the Palm Desert Area Chamber of Commerce, as well as with other partners. A future report to Council will offer updates to this program. Invest Palm Desert Capital Improvements Proqram - Update The City Council repurposed the $2M from the Invest Palm Desert economic development incentive program to the UNITE Palm Desert recovery program. Projects that were looking to be funded by Invest Palm Desert, remain unfunded. To date, staff has received serious interest from three capital improvement projects, one of which would total approximately $250,000 of City commitment (using a 50/50 split originally contemplated in the Invest Palm Desert program). The other interest has come from San Pablo businesses that remained open during the reconstruction of the roadway, mrere met with COVID closings immediately following the roadway reopening, and have expressed considerable concern about their long-term viability. To date, no additional funds have been identified for the Invest Palm Desert economic development incentive program. Borrowers may not use the Unite Palm Desert Economic Relief loan dollars for capital improvements due to loan guidelines. W:\Staff Reports - Shared\Staff Reports 08-27-2020\4- CITY CLERK 8-27-20\Unite PD Update\SR 8 27 20 Receive and File.doc Staff Report Unite Palm Desert Economic Relief Program Update August 27, 2020 Page 4 of 4 Summary Since the start of the pandemic and the closure of public access to City Hall on March 17, 2020, Economic Development and Marketing staff have contributed over 6,000 hours to channel the $2M of resources provided by the City Council in the early stages of the pandemic, and work continues. Considerable economic needs continue to be expressed across the community. As various bridge protective policies sunset, such as stays on commercial and residential foreclosures, additional economic needs will arise. The longevity of the closures, and the uncertain path of the pandemic, continue to place closure risk and enormous pressure on the local economy. Fiscal Impact On May 14, 2020, the Council authorized repurposing $2M from the Palm Desert Incentive Program $2M to the UNITE Palm Desert Economic Recovery program. $1 M of those dollars are allocated to the emergency loan program and 100 percent has been committed to business borrowers. Staff is presenting a program to Council this month for the $900,000 committed to the hospitality program. The $50,000 for Focus Area 4 has been donated to the CSU effort and approximately $50,000 remains to be programmed with community partners. The table below offers an illustration of these figures: Program Focus Area 1 - Loans Focus Area 2 — Other Focus Area 3 — Hospitality Focus Area 4— P1 CV Focus Area 5 — Community Totals UPDERP Budget $1M Department budget $900,000 $50,000 $50,000 $2M Programmed $1M NA $900,000 $50,000 $0 $1.95M Given the longevity and depth of the impact on business operations within the community, it is likely additional, as-yet-unidentified resources will be required to mitigate the possibility of permanent closures, commercial vacancies, and service reduction in our local economy. LEGAL REVIEW DEPT. REVIEW Ma,rti.� AINa.�-er� FINANCIAL REVIEW �aM.�?�%?. ?'%?oo2e N/A Robert Hargreaves Martin Alvarez City Attorney Director of Econ. Janet M. Moore Development Director of Finance f-''.�-�'-'',:� City Manager Lauri Aylaian: Attachments: UPDERP Business Loan distribution list ASSISTANT CITY MANAGER N/A Andy Firestine Assistant City Manager W�\Staff Reports - Shared\Staff Reports 08-27-2020\4- CITY CLERK 8-27-20\Unite PD Update\SR 8 27 20 Receive and File.doc Biz Support Call Log - COVID-19 BUSINESS NAME BUSINESS OWNER AWARD BEG Hospitality Inc. dba The Hood Bar & Pizza Brad Guth 5,000.00 DDA Corp dba Café Des Beaux-Arts Didier Bloch 22,000.00 Michael Castelli Inc. dba Castelli's Michael Castelli 25,000.00 Cuistot Restaurant Bernard & Susan Dervieux 25,000.00 Piero's Pizza Vino Sheri Pierattoni / Carla Nutini 25,000.00 Sun Salt San Inc dba Grill A Burger Faruk Nurani 20,000.00 Casuelas Café Raymond & Kathi Rodriguez / Delgado 22,000.00 Cork Tree Raymond & Kathi Rodriguez / Delgado 23,000.00 Chris-Linda Inc., DBA Ristorante Mamma Gina Olivia Pierattoni / Pier Giacomo Pierattoni 22,000.00 Hiru LLC / Aveda Experience Center Manomi Desilva 7,000.00 Scarlight LLC dba Impression Design Group Heath Scarinci & Michael Lightner 7,000.00 Country Club Liquor Majed Kasira / Salam Kasira 5,000.00 Desert Eye Associates Zuan Le-Nguyen / Thanh-Vi Nguyen 7,000.00 Starlight Dance Center Patty Williams 5,000.00 Jolly Rover Restaurants, Inc. DBA Thai Smile of Rancho Mirage Matthew & Irene Creighton 17,500.00 Amy's Apple, LLC dba Solano's Bar & Grill Francisco Solano 18,000.00 Hu-Yu, Inc. dba City Wok Stuart Davis 24,000.00 Sherman's Deli & Bakery Janet & Sam Harris 25,000.00 The Vine Wine Bar Lawrence & Cathy Serif 5,000.00 Alps Village, LLC Blanka Sanin 13,000.00 Tuverson & Co.Sharon Tuverson 5,000.00 JC's Café Case & Michelle Hutchinson 11,000.00 Firemac Inc. dba J Russell Salon Magaret & David Firestone 6,000.00 Grayse El Paseo, LLC Kelly Gray 5,000.00 Keedy's LLC David Chapman 20,000.00 The Kaiser Grille Palm Desert Eric Morcus 25,000.00 Nazemi Chiropratic Corp Stephanie & Navid Nazemi 7,000.00 Le Donne Cucina Italiana Sherri Frame 9,000.00 AD Beauty & Designs DBA Shear Hair Designs El Paseo Alma Diaz 10,000.00 True Serenity Skincare Spa Arlene Stenftenagel 5,000.00 Chartwell Properties, Inc.Sherry Fern 5,000.00 The Lock Shop James & Sandra Hardin 10,000.00 Desert Palms Electric, Inc.Hy & Jacqueline Faulkner 10,000.00 C & S Hospitality Ventures, Inc. dBA Musashi Japanese & Ramen Musashi Stella & Casey Kim 15,000.00 All About Massage, Inc.Kelly & Masaru Yamada 9,000.00 La Casita Restaurant Ana Felix 15,000.00 KGJ Enterprises DBA The JBAR on El Paseo Kenneth Gould 5,000.00 Sun Fantasies, Inc. dbaSpectacular Shades Sonia M. Campbell 5,000.00 Small World Fitness/My Gym Palm Desert Nancy Scott 9,000.00 The Vault Fine Jewelry Stanley Harris 5,000.00 Unite Palm Desert Economic Relief Program Emergency Loan Program Recipients (Focus Area 1) Biz Support Call Log - COVID-19 Desert Serenity Float Michael Reiter / Denise Gilbert 5,000.00 Jamba Juice John Anderson 11,000.00 Consign Design Palm Desert, Inc. Patrick Harkins 12,000.00 Wellness Enterprises LLC DBA (Your CBD Store)Eddie Encinias 5,000.00 Hohmann, Inc.Christian Hohmann 5,000.00 All Tressed Up Blowdry & Beauty Bar Sherry Huff / Shayenne Huff 6,000.00 Bellisimo Home Accents M. Namvar & Sandra Namvar 5,000.00 Fashion Concepts LLC/ Pink Club Pamela Kidd 5,000.00 Innovation Frniture Inc. DBA Rapport International Furniture Peter & Steen Skaaning 25,000.00 Tanpopo Japanese Restaurant Mitsukazu & Taeko Kawaguchi 5,000.00 Intelli-Home Michael Newsom / Kay Newsom 6,000.00 Pearson Architects, Inc.Craig R. Pearson 5,000.00 Zach's Personal Fitness Zachary Adams 3,750.00 Jordan Physical Therapy Center Danny Jordan 6,000.00 Tile Designs By Fina Josephine & Robert Meraz 4,500.00 The Fine Art of Design Nicolas Delgado 3,750.00 The Private Collection Sally J. Anderson / Esther Kuzawa 3,750.00 B.R. Murphy Enterprises, Inc./Jimmy Johns Brian Murphy 8,625.00 Habitat for Humanity ReStore Habitat for Humanity of the CV, Inc.9,375.00 RTM Holdings Inc., dba Distinctive Flooring Brandon O'Brien 9,750.00 Earth Essentials LLC Lakeavia King / Lakkiyah King / Megan Stone 4,500.00 Lunas Pizza Bar & Grill Gustavo Luna / Jorge Luna 3,750.00 Southern California Energy Alternatives Brandon Slater 3,750.00 Coachella Salon Suites II-dba Phenix Salon Suites Marti Alter 3,750.00 Diamond Nails Thu Hoang 7,500.00 LEMCO LLC dba Savory Spice Shop Mary Cardas 3,750.00 Which Wich? Superior Sandwiches Jonathan Kasira / George Kasira 3,750.00 Powers-Groat Ent, Inc. dba Jenny Craig Patricia Powers Groat 3,750.00 Bittner Dental Clinic Blair Bittner Toohey 4,500.00 Dynamic Physical Therapy & Sports Performance Karen Elbert & Jessica Super 4,500.00 Modern iCare Optometry Susan Shahriari 3,750.00 Bang & Olufsen El Paseo Mike Young & Mark Young 3,750.00 C. Pensis, LLC dba The Loft Hair Studio Michael & Casie Osgood 3,750.00 Rommel Lopez Rommel Lopez 3,750.00 Harvest Health Foods Craig Stone / Diane Stone 3,750.00 Brennan & Company Dylan Brennan 4,500.00 Desert Business Interiors Joseph Cason / Cathy Galletta 3,750.00 Ecowize, Inc.Vincent Barbato / Rudy Herrera 16,500.00 All Valley BBQ, Spa & Patio, Inc.ABIR Trust / Leland Berliner 3,000.00 Pellelulu John Phillips & Miriam Gutierrez 3,750.00 Bliss Chakra Spa Inc.William Cordell 3,750.00 Luxury Nails & Spa Ryan Q. Tran 9,750.00 Advanced Institute of Dermatology, Inc.Maryam Sickinger 8,250.00 Biz Support Call Log - COVID-19 Go With The Flow Yoga Kathleen Puckett 3,750.00 The Trainer Connection Roger P. Johnson 3,750.00 First Class Catering Service Inc.Michael & Regina Alcantar 7,500.00 The Nail Gallery Yvonne Le 3,750.00 Monsoon Indian Cuisine Inc.Harpreet & Jodh Singh 3,750.00 AAMA Recycle - Platos Closet Monica Kreizinger 2,500.00 NOMOS INC dba 1D3 by NOMOS & NOMOS RED Guillermo Castaneda 2,500.00 Kaminsky Productions Ethan Kaminsky 2,500.00 Desert Fitness Group dba Orangetheory Fitness Palm Desert Alma J. & Phillip J. Smith 4,500.00 Premier Scapes Corporation Steve McIlroy 11,000.00 Palm Desert Shell Sobhy Yousef 4,000.00 International Designers LLC (Heiress)Nancy Paige Linn 2,500.00 Reign Business Inc.Rachel Van Der Linden / Taylor / Nelson 2,500.00 Retrotel, Inc.Cherise & Brian Sonderman 8,000.00 Desert Springs Tile & Carpet Todd Estenson 2,500.00 Drop It Scott Carter / Jimmy Castillo 2,500.00 Desert Cross Fit Cheryl Cohen 2,500.00 Desert Veterinary Specialists, PC DVM 2,500.00 Brows by Jesa Jesa Harries 2,500.00 Transworld Business Advisors of C V Richard & Julie Rayl 2,500.00 Advanced Center fo Sports & Musculoskeletal Medicine Eric Sickinger 2,500.00 Oriental Thai Massage Charuwan Hammond 2,500.00 HR Advantage, LLC Norma Castaneda 3,500.00 Law Office of Jeremy J. Ofseyer: APC Trust)2,500.00 Country Club Nails Thoai Trung 2,500.00 Pain & Spine Center of the Desert, Inc.Mark Bouffard, MD 2,500.00 Passion Nails & Spa Quyen Cu 2,500.00 Faultline Adventures Inc. DBA Desert Advntres Kimberly Nilsson 12,000.00 Flowers by Veronica Rosa Gonzalez 5,000.00 Om House of Marks Oraldo Mojarro 1,350.00 Coachella Valley Cruises and Travel LLC: DBA: Expedia CruiseShipCenters Gary Kelb 1,500.00 Desert Gate Real Estate Inc.Eddie Sanin 3,000.00 I Pay Solutions, Inc.Robert & Josephine Meraz 3,000.00 Yellow Cab Company of the Desert, Inc.William Meyers / Gad Srulovitz 3,300.00 Forbidden Anchor Tattoo LLC Sean McMillan 1,500.00 II Fiore, LLC IIan Behar 1,500.00 Coachella Valley Collection Service Armando Fernandez 3,900.00 Benchmark Displays LLC JoAnne Frohman 1,500.00 California Property Management Connections Mark Stein 1,500.00 Children's Physical Therapy & Willness Crizel Legaspi-Parto 1,500.00 Cabinets of the Desert, Inc.Edward Pedalino 1,500.00 Samir Rizvanbegovic DDS, Inc./Town Center Dentistry Samir Rizvanbegovic 1,500.00 Evanko's Painting & Remodel Chris Evanko 1,800.00 Biz Support Call Log - COVID-19 Real Property Acquisition Corp aka RPAC Realty Kurtis & Cindy Squyres 1,500.00 Katherine King Special Events & Catering, Inc.Katherine King 1,500.00 Bellows Hearing Institute, LLC Liz Nathan Bellows M.A. CCC Audiologist 1,500.00 Desert Overheard Door Brodie Childers 1,500.00 Event Management Productions Richard DeSantis 1,500.00 Crystal Nails by Amy Ai Hoa Nguyen 1,500.00 Shining Star Ventures LLC dba Radiant Financial Group Gregory Hill 1,500.00 Mad Crisp Foods, Inc.Younhee Choi 1,500.00 De-Cluttering Spaces Melinda Robertson 1,500.00 Desert Satellite Communications LLC Pedro Ivan Hernandez 1,500.00 A Gene Phillips Plumbing Eugene Louis Phillips 1,500.00 ESC Medical Billing LLC Brian Esser 1,500.00 Service Real Estate dba Desert Sands Realty Steve Enlow 1,500.00 Edmunds Jaguar Rolls Royce Service Edmund Celaya 1,500.00 Michael Riley Michael Riley 1,500.00 Hotel Timeshare Resales International, Inc.Joan & Thomas Pickford 1,500.00 Kitsch Pix Pamela Hudgens / James Salisbury 1,500.00 Paul Davis, D.C.Paul Davis 1,500.00 The Anderson Group Uriah Anderson / Natalie Anderson 2,250.00 T.N.V. Towing Oracio Delatorre 1,500.00 Mr. & Mrs. Kleanning Edgar Diaz 1,500.00 Philomusica Center of Music & The Healing Arts Jeffrey Morris Siegel dba Jeff Kingfisher 1,500.00 Desert BBQ Cleaning Steve Koffler 1,500.00 Princess Karine Inc. DBA Touch Screen Centers Karine Gornes 1,500.00 The Cruise Center Palm Desert Letitia Herwig 1,500.00 Reillyworld, Inc.Michael Reiter 1,500.00 Josies Heart Josie Gonzalez 2,500.00 Ann's Nails and Spa Vanan Thi Tran 2,500.00 The Real Italian Deli II, LLC John Davita 15,000.00 Efficient Property Inspeections Joseph Sposari 1,500.00 976,100.00