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HomeMy WebLinkAboutDWGR - Dinner Service - Kemper Sports MgmtSTAFF REPORT CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT MEETING DATE: September 24, 2020 PREPARED BY: Martin Alvarez, Director of Economic Development REQUEST: Authorize Kemper Sports Management to Offer Dinner Service at Desert Willow Golf Resort Recommendation By Minute Motion: Authorize Kemper Sports Management to offer dinner service at Desert Willow Golf Resort on the Lakeview Terrace, October 1 — December 31, 2020. Background The City of Palm Desert opened the Desert Willow Golf Resort Firecliff Golf Course in 1997 and the Mountain View Golf Course in 1999. The opening of the Desert Willow clubhouse followed in 2000. Since its inception, Desert Willow Golf Resort was intended to be an economic development tool to attract hospitality development to Palm Desert (such as hotels and timeshares) as well as a recreational opportunity for residents. The clubhouse was designed and constructed to provide amenities such as a pro shop, locker rooms, restaurant/bar, banquet space, and an outdoor terrace. The restaurant component specifically has always been limited to breakfast, lunch, bar, and a limited dinner menu for golfers completing their rounds of golf. The restaurant has traditionally closed by 6:00 p.m. and was intended not to compete with existing Palm Desert restaurants. Discussion The COVID-19 pandemic has caused severe disruption and impact on all businesses. The City of Palm Desert and its businesses have been adhering to Riverside County and the State of California COVID-19 restrictions and safety protocols for re -opening businesses. Under the current California COVID-19 industry guidance, restaurants are allowed to operate in outdoor dining settings with proper social distancing and safety protocols. A large part of Desert Willow's food and beverage revenues come from catering special events such as business banquets, corporate meetings, weddings, and special events like "Dining Under the Stars" that provide food and entertainment. WAStaff Reports - Shared\Staff Reports 09-24-2020\4 - City Clerk 9-24-20\DW Dinner Service PRINTED\SR 9.24-20 DW Outdoor Dining.doc Staff Report Desert Willow Evening Dinner at DWGR September 24, 2020 Page 2of2 Kemper Sports Management, the City's golf resort operator, has requested approval by the City to allow outdoor dinner service for residents, guests, and golfers on the Lakeview Terrace. The dinner concept is designed to be a temporary pivot due to the current restrictions on indoor dining and banquet events. The outdoor dinner service would be offered October 1 — December 31, 2020, Thursday — Sunday (4:00 p.m.- 8:00 p.m.). The dinner menu would be an extension of the pre-COVID-19 twilight menu and would be consistent with favorite lunch items, combined with weekly chef dinner specials and enhanced appetizer options. Given the current restrictions on indoor dining and limited options for outdoor dining in Palm Desert, staff believes that allowing outdoor dinner service to residents, visitors and golfers would offer the community a great outdoor dining venue during the fall months. The Lakeview Terrance provides is a unique outdoor venue with a shade cover, outdoor fire pit, fireplace and provides views of both the golf course lake and the Little San Bernardino Mountains. If the dinner service is allowed during the fall months, staff and Kemper Sports will evaluate the operations and collect input from residents, guests, and Palm Desert restaurateurs. Once COVID-19 restrictions are lifted, Desert Willow will return to focused efforts to selling weddings, banquet events as well as offering feature events such as "Dining Under the Stars". Fiscal Impact Allowing dinner service at Desert Willow Golf Resort will generate additional revenue to help offset lost revenue from canceled internal and external events. These additional revenues will help cover Desert Willow's fixed operating costs. Staff will continue to evaluate the cost benefits of providing dinner service and will report monthly to the City's Presidents' Committee. LEGAL REVIEW N/A Robert W. Hargreaves City Attorney DEPT. REVIEW M aV f{- A Gvare�z. Martin Alvarez Director of Economic Development FINANCIAL REVIEW Janet M. Moore Director of Finance Interim City Manager Randy Bynder: Randy 8yhdor ASSISTANT CITY MANAGER .Andy 'Firestine Andy Firestine Assistant City Manager WAStaff Reports - Shared\Staff Reports 09-24-2020\4 - City Clerk 9-24-20\DW Dinner Service PRINTED\SR 9-24-20 DW Outdoor Dining.doc