HomeMy WebLinkAboutUpdate - Economic Development Strategic Plan Goals-ObjectivesSTAFF REPORT
CITY OF PALM DESERT
Economic Development Department
MEETING DATE: November 19, 2020
PREPARED BY: Martin Alvarez, Director of Economic Development
REQUEST: Receive and file the Update on the Economic Development
Strategic Plan Goal and Objectives
Recommendation
Receive and file the Update on the Economic Development Strategic Plan Goals and
Objectives
Strateqic Plan Obiective
The approval of the 2018 Economic Development Strategic Plan (EDSP) aligns with the
City's Envision Palm Desert Strategic Plan, Priority 1: Expand job and business creation
opportunities, and Priority 4: Expand and raise awareness of business -friendly services
in order to retain and attract business.
Backaround
In February of 2018, the City Council approved the Palm Desert Economic Strategic
Plan. The EDSP was developed to provide a detailed framework to guide the City of
Palm Desert's economic development policies and programs over the next five to ten
years. The EDSP was based on a comprehensive research and stakeholder outreach
process and reflects consensus views on the most promising opportunities and the most
pressing challenges facing Palm Desert's economy. The plan included an overarching
goal to grow and diversify the City's economy by focusing on new job creation in target
industry clusters that will lead to higher earning jobs. The EDSP also provided tactical
priorities and initiatives in the following categories.
• Economic Development Marketing
• Business Retention / Expansion Program
• Revitalization of Key Commercial Districts
• Entrepreneurial Development / Business Incubation Program
November 19, 2020 — Staff Report
Economic Development Strategic Plan Progress Update
Page 2 of 4
During the last three years, the Economic Department staff has been working with City
departments, the community, and regional partners to implement the goals and
objectives of the plan in order to foster the growth and diversification of the Palm Desert
Economy. The following section will provide an update on the progress staff has made
in meeting the goals and objectives of the EDSP.
Discussion
EDSP Progress Update:
The EDSP's overarching goal is to foster quality growth of the Palm Desert economy.
The plan identified the following key objectives that will assist in achieving the EDSP's
overarching goal.
• Maintaining the City's fiscal strength, in order to continue providing exceptional
municipal services
• Encouraging optimal land -use patterns to ensure the long-term viability of Palm
Desert's commercial centers and districts, and institutional assets
• Creating new employment opportunities for Palm Desert residents, with a focus
on higher -wage industries and occupations
• Securing Palm Desert's position as a full-time/full-service community and as the
Coachella Valley's center for shopping/dining/entertainment, higher education,
and innovation -oriented entrepreneurial development.
The EDSP identified an action plan that provides tactical priority initiatives that include a
mix of new and existing economic development programs for the City. The priorities are
listed below.
High -Priority Initiative
Economic Development Marketing. Within the framework of the City's existing
Marketing and Tourism Division, broaden marketing efforts to include a more explicit
focus on targeted economic development. Recommended areas for new/expanded
marketing resources include:
• Promoting Palm Desert is a place to live (full-time/full-service community)
• New collateral materials and advertising to support focused business attraction
(promoting Palm Desert's excellent business climate for targeted industries; not
necessarily focused on marketing to specific companies)
• New collateral materials (minimal cost) for promotion of key development sites
Business Retention/Expansion Program. Establish a proactive business outreach
program focused on retention/expansion of existing Palm Desert companies. To be
fully implemented, this work (involving substantial direct interface with the business
community) may require a new staff position (or a significant portion of an existing
staff member's time); staff will investigate the most effective approach to
implementation.
W.1Staff Reports-Shared\Staff Reports 11-19-2020\4- City Clerk- 11-19-2020\EDSP Progress Update\01 EDSP Progress SR-11.19.20 doe
November 19, 2020 — Staff Report
Economic Development Strategic Plan Progress Update
Page 3 of 4
High -Priority Initiative
Revitalization of Key Commercial Districts. In tandem with business
retention/expansion/attraction efforts, focus infrastructure investments, and other
policies on ensuring the long-term strength of key commercial districts. The
recommended highest -priority areas are:
• El Paseo
• Highway 111 / San Pablo
The Westfield mall is recognized as another potential priority for revitalization.
However, until the mall's ownership determines a strategic direction for the property,
the City is not in a position to propose specific actions.
Entrepreneurial Development / Business Incubation Program. This initiative
would focus on positioning Palm Desert as a prime location of technology -oriented
startups, which has job creation value in its own right and also has the potential to
enhance subsequent business attraction efforts (i.e., to the extent Palm Desert
becomes known as an emerging tech center, a larger range of existing [external] firms
will consider it an attractive business location). The City's entrepreneurial
development program should include the following components:
• Collaboration with CVEP's current strategic focus/investment in technology -
oriented entrepreneurial development
• Facilitating development of business incubator/accelerator space (potentially in
surplus office space within City's municipal center)
• Coordination with regional entities (in tandem with specific local initiatives) to
expand broadband capacity in Palm Desert
Attached to this report, please find the Progress and Update Report for each of the
above initiatives. We are pleased to report that we have made significant progress in
each of the EDSP's priority initiates. As we come out of COVID-19, it is going to
continue to be critical that we stay focused on these key initiatives, goals, and
objectives of the EDSP. Diversifying the City economy, education expansion, and
retaining/expanding existing businesses will be critical. We will continue to monitor the
effects of COVID-19 on our local economy and we will return to the City Council at the
end of the fiscal year with new initiatives required to sustain our economy as a result of
the pandemic.
WAStaff Reports. ShareE\Staff Reports 11-19-2020\6- City Clerk- 11-19.2020\EDSP Progress Update\01 EDSP Progress SR-11-19.20.doc
November 19, 2020 — Staff Report
Economic Development Strategic Plan Progress Update
Page 4 of 4
Fiscal Analvsis
There is no fiscal impact as a result of this progress report on the EDSP.
LEGAL REVIEW
N/A
Robert W.
Hargreaves
City Attorney
DEPT. REVIEW
Mav-t-,H Abva4-&z
Martin Alvarez
Director of
Economic
Development
Interim City Manager: handy Synder
ATTACHMENT: EDSP Progress Update
2018 EDSP
FINANCIAL
REVIEW
Janet M. Moore
Director of
Finance
ASSISTANT
CITY MANAGER
.Andy firestine
Andy Firestine
Assistant City
Manager
W1Staii Reports-ShareolStaH Reports 11-18-2020\4. City Clerk- 11-19.2020\EOSP Progress Update\01 EDSP Progress SR-11-19-20eoc
High -Priority Initiative
Economic Development Marketing. Within the framework of the
City's existing Marketing and Tourism Division, broaden marketing
efforts to include a more explicit focus on targeted economic
development. Recommended areas for new/expanded marketing
resources include:
• Promoting Palm Desert is a place to live (full-time/full-service
community)
• New collateral materials and advertising to support focused
business attraction (promoting Palm Desert's excellent
business climate for targeted industries; not necessarily
focused on marketing to specific companies)
• New collateral materials (minimal cost) for promotion of key
development sites
Progress
Marketing
One of the key marketing takeaways from the EDSP was the
recommendation to present the City in a holistic manner that
highlights Palm Desert's allure to tourists, residents, and
businesses alike.
Working closely with the Economic Development team, the
Marketing Department has created a new visual identity in order to
thematically connect Economic Development collateral across uses
with the unifying message that "Palm Desert Welcomes You!"
This approach has been utilized to establish the foundation of a new
Economic Development marketing platform that includes rack
cards, pamphlets, emails, and a new stand-alone website to support
the Business Support Hotline and other efforts of the Economic
Development Department. As the City's Economic Development
efforts progress, new elements will continue to be added to this
platform.
In addition, Economic Development -friendly messaging is now
being included in the tourism campaign, as a subtle way to support
the overall message. This campaign will be deployed in both the
drive market as well as locally, highlighting and building on the City's
array of attractions, including the Living Desert, El Paseo, Westfield
Mall, the Farmers' Market, San Pablo, outdoor dining, the McCallum
and more. This expansion of quality -of -life messaging appeals not
only to tourists but also to anyone who might want to live, work, or
do business in Palm Desert.
Although unforeseen at the time the EDSP was developed, the
COVID-19 pandemic has provided an opportunity to create the
Unite Palm Desert campaign, which is not only a platform for the
creation of Economic Development programs for economic relief but
also an organized way to present the City's Economic Development
efforts in the broader context of the work being done across City
Hall, complementing the overall Economic Development marketing
already in place.
ECONOMIC DEVELOPMENT STRATEGIC PLAN
PROGRESS UPDATE
High -Priority Initiative
Business Retention/Expansion Program. Establish a proactive
business outreach program focused on retention/expansion of
existing Palm Desert companies. To be fully implemented, this work
(involving substantial direct interface with the business community)
Progress
In October 2018, a Business Advocate was hired into the Economic
Development Department to act as a liaison between the City and
the business community. In this capacity, the Business Advocate
conducts direct outreach to Palm Desert business owners and
operators, property owners, and real estate brokers to develop
relationships. These relationships allow for the City to better
understand the business community needs. The Business
Advocate also assists existing and new businesses to navigate the
City's permitting and business license process and assists
perspective businesses find new locations to operate that are
consistent with our zoning requirements.
Prior to the onset of the COVID-19 pandemic, the Business
Advocate reached out to all of the businesses in Palm Desert with
a survey to better understand their future plans in terms of
expansion, retraction, or relocation and to learn how the City can
assist them with their needs. Postcards with a link to an online
survey were sent to more than 3,500 businesses in the City and
were followed -up with a combination of approximately 700 letters,
phone calls, and visits to businesses to request a response to the
survey and to conduct one-on-one informational meetings with the
Business Advocate. With the COVID-19 pandemic, the survey
efforts were put on hold and most of the information that was
gleaned no longer represents Palm Desert businesses' current
needs.
As a result of the shift in business needs, the Economic
Development staff created a Business Support Hotline that can be
accessed via phone or email. This hotline has allowed businesses
direct support from Economic Development staff on topics such as
State and County COVID-19 related direction, locating funding
assistance, marketing tools, and numerous other types of
assistance.
2
High -Priority Initiative
ECONOMIC DEVELOPMENT STRATEGIC PLAN
PROGRESS UPDATE
Progress
In addition to the business survey and hotline, since October 2018
staff has increased its presence at Palm Desert Area Chamber of
Commerce and other local chambers at events and meetings to
conduct outreach to the City's businesses. Along with working
through the Chambers, staff has strengthened its relationships'with
the Small Business Development Center, the Coachella Valley
Women's Business Center, and the Small Business Administration,
and is able to refer businesses to them as needed for assistance
with business plans, funding, and other facets of running a
business.
Commercial Tenant Recruitment
Staff regularly reaches out to real estate brokers and property
owners to learn about their needs and what types of tenants they
are seeking. From 2018 — 2020, the City contracted with Buxton
to assist with commercial tenant recruitment. With its contract,
Buxton provided the City a list of twenty business matches for
potential businesses to locate in Palm Desert based on the
community's demographic and psychographic data and
expansion trends by these businesses.
The Economic Development staff conducted outreach to the Top
20 Matches utilizing the contact information and
email/letter/phone templates and timelines provided by Buxton.
Additionally, Buxton assisted with contacts for setting up
meetings with candidates at ICSC Recon in Las Vegas in 2019.
Staff feels that its work with Buxton was most effective in
providing viable contacts with several outdoor and indoor
entertainment/dining businesses looking in the Palm Desert
ECONOMIC DEVELOPMENT STRATEGIC PLAN
PROGRESS UPDATE
High -Priority Initiative
Revitalization of Key Commercial Districts. In tandem with
business retention/expansion/attraction efforts, focus infrastructure
investments, and other policies on ensuring the long-term strength
of key commercial districts. The recommended highest -priority
areas are:
• El Paseo
• Highway 111 / San Pablo
The Westfield mall is recognized as another potential priority for
revitalization.
Progress
Market and, discussions with them continue. As the City comes
out of the pandemic, staff will again turn their attention to
recruiting new businesses with the help of local real estate
brokers and agents. Staff plans on setting up meetings, either
virtually or in -person (when allowed), to share the Buxton
matches with the brokers and property owners seeking new
tenants.
As an on -going goal of the EDSP and the City's General Plan, the
City has invested $9Mof capital improvement funds for the
renovation of the San Pablo Corridor. Phase 1 of the San Pablo
Improvement Project transformed the corridor from Highway 111 to
Fred Waring Drive. The goal of the improvements was to facilitate
the creation of a downtown/city center. The mile -long project
succeeds in connecting shopping, restaurants, and other
commercial services at El Paseo and Highway 111 with residential
neighborhood, the Civic Center, College of the Desert, and
eventually the CV Link project. The project provides new parking,
outdoor dining/seating areas, landscaping, sidewalks, bike lanes,
and a round -about. Phase II of the San Pablo Improvement Project
is scheduled to begin at the end of this year. In addition, the
Economic Development is under contract with a developer to sell
the City owned property at the corner of Fred Waring and San
Pablo. This developer is currently in the entitlement process to
secure approval of the City's first mixed -use project that will include
14,000 square feet of ground -floor commercial use and two stories
of apartments above.
Westfield: City staff has been in contact with the Westfield
ownership. Staff is currently in discussions with the mall ownership
and other property owners such as Seritage (former Sears) and JC
Penny's to strategize a path forward to develop a master plan for
the entire mall site. A master plan should envision the renovation
of the mall and should include alternate land uses such as housing,
hospitality, entertainment, and additional restaurants.
0
ECONOMIC DEVELOPMENT STRATEGIC PLAN
PROGRESS UPDATE
High -Priority Initiative
Entrepreneurial Development / Business Incubation Program.
This initiative would focus on positioning Palm Desert as a prime
location of technology -oriented startups, which has job creation
value in its own right and also has the potential to enhance
subsequent business attraction efforts (i.e., to the extent Palm
Desert becomes known as an emerging tech center, a larger range
of existing [external] firms will consider it an attractive business
location). The City's entrepreneurial development program should
include the following components:
• Collaboration with CVEP's current strategic
focus/investment in technology -oriented entrepreneurial
development
• Facilitating development of business incubator/accelerator
space (potentially in surplus office space within City's
municipal center)
• Coordination with regional entities (in tandem with specific
local initiatives) to expand broadband capacity in Palm
Desert
Progress
In February 2020, the City Council approved the Invest Palm
Desert Economic Development Incentive Program. The City
Council committed $2M from the Economic Development Reserve
Fund to seed economic incentives in 5 categories, including fagade
and capital improvement grants, permit fee rebates, high wage job
creation, revenue sharing, and new development project
assistance. A marketing plan was under development prior to the
COVID-19 pandemic. The $2M in funding has been since
reprogrammed to the Unite Palm Desert Economic Relief Program
that has helped businesses with forgivable loans ($1 M), our
hospitality partners with incentives ($900K), and our community
partners with funding to survive the economic stresses caused by
the pandemic.
As a result of the Economic Development Strategic Plan, the City
has created the Palm Desert iHUB. The City Council invested $1 M
in the tenant improvement for a 10,000 square foot leased space
and committed to a seven-year lease at 37023 Cook Street. The
location of the PD iHUB is directly across the street from California
State University San Bernardino, Palm Desert Campus (CSUSB-
PDC). The goal of the iHUB is to leverage CSUSB-PDC's access
to high-speed broadband via the CENIC line to provide internet
access with 1 G speed. The iHUB is envisioned as an incubator for
the tech -based industry in order to attract high paying year-round
industry. The City has partnered with the Coachella Valley
Economic Partnership (CVEP) for the management of the iHUB
facility and the recruitment and mentoring of the incubating
businesses. In addition, the City has partnered with CSUSB-PDC
to sublease 3,000 square feet of the !HUB to CSUSB-PDC. CSUSB
will be utilizing the facility to house its Entrepreneurial, Hospitality,
and Cybersecurity programs as well as their faculty. The launch of
the iHUB is on hold due to the COVID-19 restrictions. Staff
11
ECONOMIC DEVELOPMENT STRATEGIC PLAN
PROGRESS UPDATE
High -Priority Initiative Progress
anticipates being able to officially launch the PD iHUB in January
2021 or as soon as COVID-19 restrictions are lifted.
Broadband/Fiber Master Plan: Staff is underway to develop a
Request for Proposals (RFP) to hire a consultant to assist the City
in developing a master plan to facilitate the future deployment of
fiber optic cable and conduit infrastructure to improve the speed of
internet connectivity for our residents and businesses. The ultimate
goal of the Broadband/Fiber Master Plan is to make Palm Desert a
conduit ready and fiber -rich City that is able to spur economic
development by attracting/creating technology -based jobs to
diversify our economy. The RFP will be released in early 2021.
NNEN
PALM DESERT ECONOMIC DEVELOPMENT
STRATEGIC PLAN
Prepared for:
City of Palm Desert, California
February 22, 2018
PREPARED BY:
NT H E N A T E L S O N D A L E G R O U P I N C
1835 LA PALMA AVE SUITE I • YORBA LINDA, CA 92887
O: 714.692.9596 • F: 714,692.9597 • www.natelsondole.com
Table of Contents
1. Introduction...........................................................................................1
2. Executive Summary..............................................................................5
3. Highlights of Background/Technical Studies.....................................9
4. Action Plan Highlights........................................................................22
5. Detailed Action Plan...........................................................................27
Cover Photo Credit: Tom Brewster
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
1. Introduction
This document provides a strategic framework to guide the City of Palm Desert's economic development
policies and programs over the next 5 to 10 years. The Economic Development Strategic Plan (EDSP) is
based on a comprehensive research and stakeholder outreach process, and reflects consensus views on
the most promising opportunities and the most pressing challenges facing Palm Desert's economy.
While the EDSP places primary emphasis on actions and initiatives to be pursued by the City, it
recognizes that a wide array of public- and private -sector entities have roles in influencing the economic
vitality of Palm Desert. In this regard, some of the recommended actions will be carried out through
partnerships with other entities. Even for those action items in which the City's role is essentially
coordination, this function can take many forms and is often critical to solving problems that may not
otherwise have a clear constituency or single responsible entity assigned to resolving them.
Overview of the Strategic Planning Process
The recommended policies and program activities are based on an extensive planning process that
included the following components:
• An analysis of Palm Desert's existing and projected demographic profile, providing an
understanding of underlying trends that may affect economic growth potentials.
• A series of stakeholder workshops (the "Palm Desert Economic Development Summit") involving
approximately 30 participants representing key local businesses/industries and civic
organizations.
• A review of the various public- and private -sector entities involved in different aspects of
economic development (or related activities), along with a summary of their existing program
offerings.
• An industry "cluster" analysis to identify the industry groups that are the most important
"engines" of the existing local economy, as well as the industry groups that are likely to offer the
most attractive growth potentials in the future.
• A real estate market analysis to identify potential future demand for commercial and industrial
development in the City.
Where relevant, key findings of the background and technical studies are referenced in the EDSP. The
full studies are provided as separate reports.
Summary of Key "SWOT" Issues
The technical studies and stakeholder input provided the basis for identification of important SWOT
(strength -weakness -opportunity -threat) issues affecting Palm Desert's economic development
potentials. These issues are briefly summarized as follows:
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
Kev Assets and Selling Points 1*items that are especially or uniauelv strong in Palm Desert as
comoared to the larger Coachella Vallev are identified with an asterisk)
Quality of Life
• Excellent climate
• Diversity of recreational activities/facilities*
• Diversity of special events/festivals
• Housing affordability; wide range of housing options*
• World class shopping/dining*
• Concentration of higher education*
• Quality health care
Attractive Factors for Business/Development:
• Central location within Coachella Valley*
• Land capacity
• Available development sites owned/influenced by City*
• Updated General and Specific Plans facilitate development approvals*
• Overall reputation for business/development friendliness*
• Visibility to corporate decision makers (e.g., visitors and seasonal residents who are high-level
business executives)
• Market access to larger region (Southern California, Phoenix, Las Vegas)
• Airports (local and regional, including Ontario)
• Rail infrastructure/capacity
Key Partnerships and Institutional Assets:
• Palm Desert Area Chamber of Commerce (PDACC)*
• El Paseo Business Improvement District*
• Coachella Valley Economic Partnership (CVEP)
• Greater Palm Springs Convention and Visitors Bureau (CVB)
• University of California, Riverside (Palm Desert Campus)*
• California State University, San Bernardino (Palm Desert Campus)*
• College of the Desert (COD)*
• Riverside County Workforce Development Center (based in Indio)
Maior Needs / Potential Constraints
• Local (Palm Springs) airport is underutilized / air service is relatively limited
• Workforce retention (need to address "brain drain" or loss of local talent)
• Need to attract larger numbers of students to area colleges/universities
• Seasonality of the economy
• Global changes in retail industry are a threat to one of City's core strengths
• Other cities in Coachella Valley are not as committed to regional partnerships
• Image issues (false perceptions that need to be systematically addressed)
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
2
o Palm Desert is only for retirees and tourists
o Water supply is restrictive to development
o Heat makes it infeasible to live here year-round
• Housing affordability can be a challenge for first-time buyers
• Need to expand entertainment options attractive to young adults
• Need to improve attractiveness as a place for young professionals to live
• Need to improve transportation systems (ground, air)
• Utility costs associated with business development
Economic Development Context
Figure 1 on the next page is a representation of aspects of the context in which economic development
will continue to occur in Palm Desert and the Coachella Valley. The intent of the figure is to explicitly
recognize what is common knowledge in the Coachella Valley but may not always be reflected in
strategic positioning. In essence, the traditional, historic role of the region and its relationship to greater
Southern California to the west is evolving. The region is becoming an increasingly economically (and
demographically) diversified, self-contained urban core in its own right.
Simultaneously, the distance between urbanized portions of the Coachella Valley and the rest of
Southern California continues to shrink. All markets surrounding the Coachella Valley are expanding,
including Arizona markets to the east, and infrastructure that once primarily served visitors and the
hospitality industry is transitioning to serve a broader range of purposes.
The figure identifies basic interrelationships among three components of the historic/regional context:
1) The legacy of the past,
2) Business -type attributes of market access and size, etc., and
3) The maturing of the region into a more self-contained metropolitan area.
Each of these three components can be addressed through a tailored strategic focus. The various
strategic directions can all be reflected through marketing messages that integrate the conditions
through which the region is naturally changing, and being guided to change, while still recognizing the
rich legacy of the past.
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
FIGURE 1
Expanding Southern
California region
Historic and regional context
Legacy of past Other, business -type attributes
• Amenity -rich area • Have market access to larger region
• Destination status • Central location within Coachella
Valley
• Development capacity, some
through city properties
• Proactive business climate
Strategic Directions
Expand role and build on Use planning/urban design, to
existing maximize available capacity
Integrated marketing messages
Maturing CV urban region
Historic Coachella Valley
Maturing City/Region
• Educational and other institutions
• Existing economic base supports expansion
• Expanding populations
• Expanding complement of business support
for residents and other businesses
• Foundational elements broaden to serve
additional purposes, e.g. airport
• Retirement communities experience
resident -age cycles
• Use planning/urban design, to facilitate
meaningful expansions
• Reinvigorate aging elements, and
neighborhoods
• Support expanded use of foundational
infrastructure
Palm Desert embodies
City is managing transition to
all aspects of Coachella
community with expanded
Valley's historic and
options for youth, revitalized
regional context
properties and neighborhoods,
and evolving retirement
communities
(Messages are for outsiders and also to help residents have
a better grasp of what City is doing and why)
Palm Desert Economic Development Strategic Plan
The Na:....+
4
2. Executive Summary
Overarching Goal: Growing the Palm Desert Economy
The overarching goal of the EDSP is to foster growth of the Palm Desert economy in ways that achieve
the following objectives:
• Maintaining the City's fiscal strength, in order to continue providing exceptional municipal
services;
• Encouraging optimal land use patterns to ensure the long-term viability of Palm Desert's
commercial centers and districts, and institutional assets;
• Creating new employment opportunities for Palm Desert residents, with a focus on higher -wage
industries and occupations;
• Securing Palm Desert's position as a full-time/full-service community and as the Coachella
Valley's center for shopping/dining/entertainment, higher education, and innovation -oriented
entrepreneurial development.
Target Industries: Balancing Established Strengths and Emerging Opportunities
The EDSP recommends strategic focus on nine major industry clusters. There are currently a total of
approximately 36,000 jobs based in Palm Desert. The nine target clusters collectively account for nearly
26,000 jobs, or just over 70% of the total. Key information about the nine clusters is summarized as
follows (clusters are listed in order of their average annual wage, highest to lowest):
Number of
Existing Jobs
Average
Industry Cluster
in Palm Desert
Annual Wage
Information Technology
16
$102,123
Health Services
2,492
$67,446
Education and Knowledge Creation
1,434
$65,849
Financial Services
279
$63,867
Marketing, Design and Publishing
290
$59,080
Real Estate, Construction, Development
4,262
$57,797
Entertainment
720
$33,208
Retail/Restaurant
9,980
$26,889
Hospitality and Tourism
6,264
$26,132
Subtotal/ Weighted Average for Target Clusters
25,737
$38,907
Total/Weighted Average for All Jobs in City
36,425
$47,810
Each of the nine target clusters is important, but for different reasons. And, the different reasons that
they are of interest to the City will, in turn, lead to unique strategic approaches for each cluster. Overall,
it is notable that the two largest clusters in terms of existing jobs (retail/restaurant and hospitality/
tourism) are, by far, the lowest -paying. A key strategic challenge for the City will be to pursue
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
opportunities to expand employment in higher -paying industries, thereby raising the overall average
wage for jobs based in Palm Desert. At the same time, the clusters associated with lower wage levels are
critical to the City from the standpoint of fiscal revenue (i.e., sales and transient occupancy taxes) and
from the perspective of providing amenities important to Palm Desert's residents, businesses and
visitors. The need for the EDSP to balance these differing strategic objectives is characterized as follows:
Industry Cluster
Information Technology
Health Services
Education and Knowledge
Creation
Financial Services
Marketing, Design and
Publishing
Real Estate, Construction,
Development
Entertainment
Retail/Restaurant
Hospitality and Tourism
Why it's important
to the City
• Very high wage
• Significant spinoff and
placemaking potentials
• Large existing cluster
• High wage
• High growth
• Significant contributor to
residential quality of life
• Presence of UCR; CSUSB
and COD gives Palm Desert
significant advantages in
the region
• High wage
• High growth
• High wage
• Emerging cluster in City/CV
• Complements focus on
innovation
• High wage (and good mix of
job types)
• Grows in proportion to
overall economic growth
• Strong and growing cluster
in City and CV
• Important links to other key
clusters (retail and tourism)
• Largest existing cluster
• Sales tax revenue
• Community amenity/
quality of life (QOL)
• Important part of
visual/built environment
• 2"d largest existing cluster
• Sales tax and TOT
• Amenity/QOLvalue
• Important part of
visual/built environment
Recommended
Strategic Focus
Entrepreneurial development
Expansion of existing firms;
Attraction of new firms
Support expansion of higher
education and leverage for
business incubation
Expansion of existing firms;
Attraction of new firms
Attraction of new firms;
Entrepreneurial development
Workforce development (for
construction trades)
Focused business attraction to
help strengthen and reposition
retail centers
Business retention/expansion;
Focused business attraction to
strengthen existing retail
centers
Marketing to enhance/retain
existing hotels;
Attraction of new hotels
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc. '
0
"Tactical" Priorities: Recommended New Initiatives to Achieve the EDSP Objectives
The EDSP Action Plan provided in Chapters 4 and 5 includes a mix of existing and new economic
development programs for the City. It is important to acknowledge that the City has been successful in
many aspects of community and economic development for a long time. The City's long-term attention
to high -quality economic and community development has resulted in the balanced, high -amenity,
fiscally strong community that Palm Desert is today.
Many of the strategies/programs included in the Action Plan represent continuations of "business as
usual"' for the City. That is, the EDSP is structured around the City's existing programs and investments
related to economic development. Some of the recommended strategies, however, will require
additional budget resources in order to be effectively implemented. These new, highest -priority
initiatives are highlighted below and further detailed in Chapters 4 and 5.
High -Priority Initiative
Potential Budget Need
Economic Development Marketing. Within the framework of the City's
$25,000 one-time
existing Marketing and Tourism Division, broaden marketing efforts to
investment in new
include a more explicit focus on targeted economic development.
marketing plan /
Recommended areas for new/expanded marketing resources include:
collateral materials
• Promoting Palm Desert is a place to live (full-time/full-service
community)
$10,000 - $25,000 per
• New collateral materials and advertising to support focused
year in additional
business attraction (promoting Palm Desert's excellent business
marketing investment
climate for targeted industries; not necessarily focused on
(over and above City's
marketing to specific companies)
existing marketing
• New collateral materials (minimal cost) for promotion of key
budget)
development sites
Business Retention/Expansion Program. Establish a proactive business
$90,000 - $120,000
outreach program focused on retention/expansion of existing Palm Desert
annually (if
companies. To be fully implemented, this work (involving substantial direct
implemented through
interface with the business community) may require a new staff position (or
a new, full-time staff
a significant portion of an existing staff member's time); staff will
person); no cost if
investigate most effective approach to implementation.
managed by existing
staff
Revitalization of Key Commercial Districts. In tandem with business
El Paseo budget to be
retention/expansion/attraction efforts, focus infrastructure investments
determined based on
and other policies on ensuring the long-term strength of key commercial
recommendations of
districts. The recommended highest -priority areas are:
pending Urban
• El Paseo
Revitalization Plan
• Highway ill/ San Pablo
The Westfield mall is recognized as another potential priority for
Recommended budget
revitalization. However, until the mall's ownership determines a strategic
of up to $10,000 per
direction for the property, the City is not in a position to propose specific
year to coordinate
actions.
revitalization of
Highway 111/San Pablo
(this budget would
mostly be directed
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
High -Priority Initiative
Entrepreneurial Development/Business Incubation Program. This
initiative would focus on positioning Palm Desert as a prime location of
technology -oriented startups, which has job creation value in its own right
and also has the potential to enhance subsequent business attraction
efforts (i.e., to the extent Palm Desert becomes known as an emerging tech
center, a larger range of existing [external] firms will consider it an
attractive business location). The City's entrepreneurial development
program should include the following components:
• Collaboration with CVEP's current strategic focus/investment in
technology -oriented entrepreneurial development
• Facilitating development of business incubator/accelerator space
(potentially in surplus office space within City's municipal center)
• Coordination with regional entities (in tandem with specific local
initiatives) to expand broadband capacity in Palm Desert
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
Potential Budget Need
toward information
dissemination, printing
of new collateral
materials, etc.)
$100,000 estimated
one-time cost for
tenant improvements,
fiber optics
In -kind provision of
surplus City -owned
office space if possible
Potential ongoing
investment of
$350,000 to support
marketing and
administration based
on costs associated
with existing incubator
in Palm Springs
3. Highlights of Background/Technical Studies
Demographic Profile
The highlights of the demographic report selected for this summary include the following elements:
• A summary table that includes a variety of data for Palm Desert and also for other Coachella
Valley cities, along with Riverside County and California.
• Projected growth of population and jobs by city.
• Labor force participation rate by age, by city and by the county and state.
• Taxable sales, by city and the county, for 2005 (pre -recession) and 2015.
• Discussions of seasonal homeowners and senior residents as special populations/industry
segments in Palm Desert.
Table 1 summarizes a range of demographic and economic variables. Note that Palm Desert generally
lies within the middle of the range for most of the variables compared with the other communities,
county, and the state. There are a few noteworthy exceptions. Palm Desert's percent change in
population growth was lower than all the other communities except Cathedral City and Palm Springs.
Palm Desert's percent change in jobs was negative and lower than all other communities except Palm
Springs. The ratio of jobs to people in Palm Desert is at the top end of the range, which indicates that
Palm Desert retains an advantage even given the high proportion of retirement -age persons in the
community.
TABLE 1. DEMOGRAPHIC SUMMARY
Riverside County
2,384,783
16.3%
999,200
17.9%
0.42
$56,603
$23,783
44.4%1
Palm Desert
50,740
8.3%
22,800
-6.9%
0.45
$52,892
$39,219
46.9%1
Cathedral City
54,557
7.7%
24,400
0.0%
0.45
$39,872
$19,649
46.9%1
Coachella
45,551
23.6%
17,200
65.4%
0.38
$37,497
$12,260
41.5%1
1 Desert Hot Springs
29,111
20.7%
10,600
27.7%
0.36
$33,027
$13,828
39.2%1
1Indian Wells
5,450
14.0%
1,700
0.0%
0.31
$93,625
$90,749
33.0%1
Indio
88,718
25.0%
36,700
46.2%
0.41
$50,525
$21,581
44.1%1
1LaQuinta
40,677
13.6%
17,600
20.5%
0.43
$71,091
$40,664
44.7%1
1Palm Springs
47,379
7.3%
21,300
-15.1%
0.45
$44,075
$35,799
47.1%1
Rancho Mirage
18,295
9.0%
6,600
8.2%
0.36
$66,086
$61,391
37.7%1
Sources: California Department
of
Jnance, City/County/State
Population
and Housing Estimates;
California Department of
Employment Development, Labor Force and Unemployment Rates for
Cities/Counties/State; Census American Community Survey,
2015 5-Year Estimates; The Natelson
Dale Group, Inc.
(TNDG).
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
Figure 2 shows the projected population and number of jobs in each of the Coachella Valley cities for the
period of 2012 to 2035. The chart reveals the wide variation in projected growth among the nine
communities, perhaps the most notable being the high rates of population growth for both Indio and
Coachella. The nine cities are all projected to experience job growth through 2035, at higher rates of
growth than the population growth rates. Palm Desert has the most jobs of all the cities in 2012, and is
also expected to have the most in 2035; although both population and employment will be distributed
more generally across the Coachella Valley in the future, which would be what we would expect for a
maturing region.
Rapid growth in Coachella and Indio will change some aspects of the "attraction power' of Palm Desert
within the region. For example, for Palm Desert to remain a center of regional shopping, existing
regional centers and stores must be kept up-to-date.
FIGURE 2. PROJECTED POPULATION AND EMPLOYMENT IN COACHELLA VALLEY CITIES, 2012-2035
140,000 —
120,000
Z� 100,000
iJ
C
80,000
0
N
c 60,000
w
v
z 40,000
20,000
no
Ir,f l OFT -in
Cathedral Coachella Desert Indian
City Hot Wells
Springs
Indio La Quinta Palm Palm Rancho
Desert Springs Mirage
■ Population 2012 ■ Population 2035 ❑ Employment 2012 ■ Employment 2035
Sources: Southern California Association of Governments, Adopted 2016 RTP Growth Forecast; TNDG.
As Table 2 indicates, many of the Coachella Valley cities have labor force participation rates (for all ages
combined) below the rates for California and Riverside County. However, when looking at participation
by age, the differences are less pronounced, and in Palm Desert participation rates are higher or within
the range of the rates for California and Riverside County. Statistically, what this means is that even
though Palm Desert residents participate in the labor force similarly to the state and Riverside County,
the preponderance of older workers pulls the overall participation rate down. The same situation would
appear to apply similarly for the other Coachella Valley cities with low overall participation rates.
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
10
TABLE 2. LABOR FORCE PARTICIPATION RATE By RESIDENT AGE
Riverside County
Palm Desert
Cathedral City
Coachella
Desert Hot Springs
Indian Wells
Indio
�La Quinta
Palm Springs
Rancho Mirage
52.7% 59.6% 77.8% 16.4%1
61.0% 50.8% 75.6% 18.1%I
71.6% 60.6% 80.5% 12.6%1
56.5% 45.1% 67.9% 15.0%1
36.7%
62.7%
68.9%
17.6%1
62.6%
56.9%
78.7%
13.8%I
54.5%
52.3%
74.1%
16.2%I
52.7%
61.3%
70.3%
16.1%I
37.3%
48.3%
64.0%
14.7%I
Sources: Census American Community Survey, 2015 5-Near Estimates; i NDG.
Table 3, showing taxable sales in 2015 and the percent change from 2005, indicates that all places in
Coachella Valley and Riverside County overall experienced decreased taxable transactions in 2015
compared to 2005. Palm Desert's rate of decrease was not as severe as some of the other cities, and
taxable sales per capita in 2015 far exceeded per capita sales in the other cities.
TABLE 3. TAXABLE $ALES TRENDS ADJUSTED FOR INFLATION
� Palm Desert
-18.4% $34,043
$26,5951
Cathedral City
-30.3% $20,210
$13,0611
Coachella
-4.5% $8,272
$5,2471
1 Desert Hot Springs
7.9% $5,344
$4,0821
Indian Wells
-3.3%
$7,309
$6,2381
Indio
-6.5%
$13,350
$8,9911
�LaQuinta
-15.6%
$22,701
$15,7901
Palm Springs
1.8%
$18,197
$17,5531
Rancho Mirage
-37.5%
$31,952
$18,1921
1. Numbers for 2005.iave been adjusted to account for effects of inflation, nationally.
Sources: California State Board of Equalization, Taxable Sales by City, Years 2005-2015; TNDG.
Two special -population "industries" in Palm Desert should be noted: high levels of seasonal home
residents and unusually high levels of senior households. For purposes of this discussion, "special
populations" are those in excess of what would be expected based on state average proportions. In
other words, even though all places have some senior -age households and some homes used primarily
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
11
for recreational or seasonal housing, unusually high levels of these populations each constitute a unique
economic segment that should be recognized.
Based on analysis of these two groups in Palm Desert, the Seasonal Home Population consists of an
"extra" 5,100 units. (Note that Seasonal residents are not part of the official Census count for a
community). This produces local spending estimated at $130 million annually. The Senior Household
Population consists of an "extra" 2,300 households, resulting in local spending (much in the form of
"imported" dollars, or those not earned in the local economy) estimated at $62.9 million.
Commercial/Industrial Real Estate Market Analysis
As part of the EDSP process, The Natelson Dale Group, Inc. (TNDG) completed areal estate market
demand forecast for Palm Desert. The following tables provide an abbreviated summary of TNDG's real
estate demand forecasts through 2027.
The preliminary projections are largely based on the official demographic forecasts adopted in 2016 by
the Southern California Association of Governments (SCAG). The SCAG projections indicate the following
levels of growth between now and 2027:
Citv of Palm Desert
• 4,500 new residents (average of 450 per year)
• 7,500 new jobs (750 per year)
The demand estimates were further calibrated based on additional information from local Costar real
estate market reports, along with input from key committee stakeholders with expertise on local real
estate market conditions.
Table 4 summarizes the overall demand projections for the three major land use categories under
consideration: retail (including restaurants), office, and industrial. These projections are specific to the
City of Palm Desert. The projections recognize existing vacancies and recent trends in absorption.
TABLE 4. SUMMARY OF REAL ESTATE DEMAND PROJECTIONS, CITY OF PALM DESERT, THROUGH 2O27
Projected DemandLand Use •. . • •. Space
Retail 2017-2027 200,000 — 250,000
Office 2017-2027 130,000 — 230,000
Industrial 2017-2027 375,000 — 500,000
Source: The Natelson Dale Group, Inc. (TNDG).
Tables 5 and 6 show the projections of total demand for new retail space in Palm Desert for the 10-year
period, 2017-2027.
Palm Desert Economic Development Strategic Plan -
The Natelson Dale Group, Inc.
12
TABLE 5. PROJECTED DEMAND FOR NEW
Retail Space Absorption (square feet)
AURANT SPACE, PALM DESERT, 2017-2027
Average Annual
40,000
50,0001
10-year Total
400,000
500,0001
Retail Space Absorption (square feet) — Market Constrained'
Average Annual
20,000
25,0001
10-year Total
200,0001
250,0001
Sources: Emsi; Southern California Association of Governments; Costar; TNDG.
1. Unconstrained market projections adjusted based on a 50% reduction factor, accounting for recent 5-year net
absorption trends.
Table 6 shows the breakdown of Palm Desert's projected retail demand by major retail sales category.
TABLE 6. PROJECTED DEMAND FOR NEW RETAIL/RESTAU RANT SPACE
BY MAJOR RETAIL SALES CATEGORY, PALM DESERT, 2017-2027
Food and Beverage 20,0001
Food Services and Drinking 20,0001
Hardware and Building Materials 10,0001
Auto Parts 30,000
Service Businesses in Retail Space 20,000
Total) 200,0001
1. GAFO = General Merchandise, Apparel, Furniture/Appliances, Other Specialty
Sources: Ems!; Southern California Association of Governments; CoStar; TNDG.
Tables 7 and 8 on the following page provide TNDG's projections of demand for new office and
industrial space in Palm Desert for the 10-year period from 2017 to 2027.
Palm Desert Economic Development Strategic Plan
25,0001
25,0001
12,5001
37,5001
25,0001
250,0001
13
;Office Space Absorption (square feet)
Average Annual (4,700) 30,000 40,000
1 10-year Projection Total N/A 300,000 400,0001
Office Space Absorption (square feet) — Market Constrained'
Average Annual (4,700) I 13,000 23,0001
10-year Projection Total N/A I 130,000 230,0001
Sources: Emsi; Southern California Association of Governments; Costar; TNDG.
1. Unconstrained market projections adjusted based on initial absorption of existing vacant office
space. Demand for new office construction assumed once market reaches 8.0% equilibrium
vacancy rate. Although 10-year averages are provided for illustrative purposes, initial demand for
new office construction would occur sometime between years 2022 (Aggressive) and 2024
(Conservative).
TABLE 8. PROJECTED DEMAND FOR NEW INDUSTRIAL
Average Annual Job Growth 1 900
Industrial Space Absorption (square feet)
j Average Annual 1 24,000
PALM DESERT. 2017-2027
750
37,500
10-year Projection Total I N/A 1 375,000
Sources: Emsi; Southern California Association of Governments; Costar; TNDG.
Industry Cluster (Target Industry) Study
1,000
50,0001
500,0001
As part of the EDSP process, TNDG also completed an analysis of industry growth/retraction trends in
Palm Desert, comparing the local economy's recent and longer -term performance to state and national
benchmarks. TNDG's analysis illustrates Palm Desert's economic/employment base in terms of industry
"clusters." Clusters are groups of interrelated industry sectors whose growth potentials within a region
tend to be closely aligned. The tendency of individual industries to co -locate within these clusters
reflects linkages through supply -chain relationships, as well as commonalities in terms of workforce
requirements and infrastructure needs. The cluster analysis is fully documented in a separate
companion document.
The clusters analyzed in TNDG's study are based on definitions (i.e., industry groupings) from the U.S.
Cluster Mapping Project, an economic development initiative which is led by Harvard Business School's
Palm Desert Economic Development Strategic Plan
The Natelson Dale Group, Inc.
14
Institute for Strategy and Competitiveness'. Nationally, the Cluster Mapping Project recognizes a total of
67 clusters, with 16 classified as "local" clusters and 51 classified as "traded" clusters.
• Local clusters typically form the core of a region's economy and are prevalent in all regions of
the U.S.; they primarily provide goods and services for the local (resident) population. They tend
to account for the majority of jobs in a region (in the case of Palm Desert, local clusters
represent 80% of total jobs), and support a high quality of life by ensuring the availability of a
diverse range of goods and services. These clusters include a wide array of business
opportunities of all sizes and are generally expected to grow in proportion to overall growth in
the economy.
• Traded clusters are "export -oriented" in the sense that they include industries that are engaged
in producing goods and services for end customers outside the region (in this case, outside Palm
Desert). Although traded clusters represent only 17% of the jobs in the city (note that the local
and traded jobs do not total 100% because some industries lie outside of either category'), they
are still important from an economic development perspective given that they tend to have
higher wages and higher "multiplier impacts" compared to local clusters. That is, they have a
strong potential to inject new dollars into the local economy and thereby serve as "drivers" for
broader economic growth.
Beginning on the following pages, Tables 9 and 10 list all "local" and "traded" clusters that had 200 or
more jobs in Palm Desert in 2016 and 500 or more jobs in the Coachella Valley region, respectively. The
tables provide the following information about each listed cluster:
• Total number of jobs in Palm Desert and the Coachella Valley in 2016 (the latest full year for
which data are available)
• Location quotient (compared to U.S. benchmark) in 2016'
• Change in the number of jobs between 2001-2016
Table 11 includes the following data for the clusters same clusters evaluated in Tables 9 and 10:
• Projected absolute change in jobs between 2016 and 2027 for the Coachella Valley
• Projected percentage change in jobs between 2016 and 2027 at the national level
• Average annual wage in the Coachella Valley (in 2016)
' See the following website for an overview of the project: http://www.clustermapping.us/
z Primarily local, state, and federal government jobs.
'The location quotient (LQ) measures how concentrated/important an industry cluster is in a region compared to
national benchmarks. An LQvalue greater than 1.0 indicates that a cluster is more concentrated in the region than
it is nationally. This is generally regarded as an indication that the region has a comparative advantage in a
particular cluster.
Palm Desert Economic Development Strategic Plan
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15
TABLE 9. SUMMARY CHARACTERISTICS AND TRENDS, PALM DESERTS LARGEST INDUSTRY CLUSTERS
(LIST INCLUDES WITH MORE THAN 200 JOBS IN 2016)
Local Hospitality Establishments
Local
6,264
2.01
2,1831
Local Real Estate, Construction, and Development
Local
4,262
1.81
2031
Local Retailing of Clothing and General Merchandise
Local
3,715
3.17
7121
Local Commercial Services
Local
3,382
1.59
1,9741
Local Community and Civic Organizations
Local
3,227
2.49
2,61.51
Local Health Services
Local
2,492 0.59
9981
Hospitality and Tourism
Traded
2,362
3.09
2321
Education and Knowledge Creation
Traded
1,434
0.89
2261
Local Food and Beverage Processing and Distribution
Local
1,120
1.09
3901
Local Household Goods and Services
Local
1,009
2.29
1801
Local Personal Services (Non -Medical)
Local
836
1.23
3341
Business Services
Traded
813
0.38
2901
Local Education and Training
Local
780
0.36
3441
Local Entertainment and Media
Local
720
1.85
901
Local Motor Vehicle Products and Services
Local
543
0.51
901
Distribution and Electronic Commerce
Traded
452
0.32
1221
Local Financial Services
Local
445
0.64
1691
Marketing, Design, and Publishing
Traded
290
0.84
361
Financial services
Traded
279
0.57
(119)I
Local Logistical Services
Local
257
0.45
981
Local Utilities
Local
225
0.79
1331
Total Traded Cluster
6,251
0.56
1
7021
1Total Local Cluster
29,288
1.35
10,5121
Source: EMSI; Cluster Mapping Project; TNDG
Palm Desert Economic Development Strategic Plan
16
TABLE 10. SUMMARY CHARACTERISTICS AND TRENDS, COACHELLA VALLEY'S LARGEST INDUSTRY CLUSTERS
Local Health Services
Local
15,828
0.92
5,4941
( Local Real Estate, Construction, and Development
Local
14,249
1.49
1,3501
Hospitality and Tourism
Traded
10,744
3.46
1,3501
Local Education and Training
Local
9,791
1.11
2,6861
Local Community and Civic Organizations
Local
8,478
1.61
6,2221
Local Retailing of Clothing and General Merchandise
Local
7,333
1.54
2,9131
Local Commercial Services
Local
6,529
0.76
2,7061
Local Motor Vehicle Products and Services
Local
5,427
1.25
8911
Local Food and Beverage Processing and Distribution
Local
5,005
1.20
1,7151
Local Household Goods and Services
Local
4,762
2.65
9621
(Agricultural inputs and Services
Traded
3,797
7.29
(1,378)I
Local Personal Services (Non -Medical)
Local
2,689
0.97
1,0051
Business services
Traded
2,594
0.30
9281
Distribution and Electronic Commerce
Traded
2,073
0.36
7691
Local Entertainment and Media
Local
1,911
1.21
541
�Local Logistical Services
Local
1,626
0.70
6291
Education and Knowledge Creation
Traded
1,601
0.24
3111
(Local Financial Services
Local
1,420
0.50
537
ITransportation and Logistics
Traded
994
0.60
2891
IFinancial Services
Traded
744
0.37
(229)I
I Marketing, Design, and Publishing
Traded
743
0.53
1441
ILocal Utilities
Local
676
0.58
3601
Total Traded Cluster 26,485 0.58 1,4621
ITotal Local Cluster 109,198 1.24 36,0061
Source: EMSI; Cluster Mapping Project; TNDG.
Notes: CV = Coachella Valley
Palm Desert Economic Development Strategic Plan
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TABLE 11. PROJECTED GROvrrH TRENDS AND WAGES FOR COACHELLA VALLEYS LARGEST CLUSTERS 2016-27
Local Hospitality Establishments
Local
3,680
11%
$26,1321
Local Health Services
Local
5,060
23%
$64,9981
Local Real Estate, Construction, and Development
Local
2,402
12%
$57,7971
Hospitality and Tourism
Traded
937
11%
$34,6981
Local Community and Civic Organizations
Local
3,385
15%
$23,6451
Local Retailing of Clothing and General Merchandise
Local
2,096
10%
$28,1641
Local Commercial Services
Local
1,493
11%
$36,5701
Local Motor Vehicle Products and Services
Local
965
11%
$47,0061
Local Food and Beverage Processing and Distribution
Local
888
7%
$40,1171
Local Household Goods and Services
Local
350
5%
$37,6851
(Agricultural Inputs and Services
Traded
(527)
17%
$34,3281
(Local Personal Services (Non -Medical)
Local
426
13%
$31,7741
Business services
Traded
260
18%
$57,2811
� Distribution and Electronic Commerce
Traded
167
13%
$58,6761
Local Entertainment and Media
Local
(3)
1%
$33,2081
Local Logistical Services
Local
364
12%
$49,2291
Local Financial Services
Local
93
7%
$63,8671
Transportation and Logistics
Traded
219
7%
$56,3781
1 Financial Services
Traded
(57)
15%
$97,7091
Local Education and Training
Local
58
9%
$37,2151
( Marketing, Design, and Publishing
Traded
(40)
13%
$59,0801
Local Utilities
Local
159
-7%
$90,5511
Total Traded Cluster
918
10%
1
$47,8101
Total Local Cluster
21,525
13%
$41,3341
Source: EMSI; Cluster Mapping Project; TNDG.
Notes: CV = Coachella Valley
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Recommended Target Industry Clusters
The industry cluster analysis summarized above highlights the following facts relevant to Palm Desert's
potential targeting of future growth industries:
• Consistent with the rest of the Coachella Valley, Palm Desert's existing economy is largely
dominated by a few key industry clusters (hospitality/tourism, retail, health care, real estate and
local services).
• With the notable exception of hospitality/tourism, most of Palm Desert's industries are local -
serving in nature (i.e., local -serving in the sense that they do not "import" money from outside
the region).
• The City's largest industry clusters (hospitality/tourism and retail), while important from a
"placemaking" perspective (and also from the standpoint of City revenue generation), are
generally associated with below -average wage levels.
In a region that has a limited existing base of export -oriented industries (e.g., manufacturing firms),
traditional approaches to business "attraction" are challenging since such efforts are typically premised
on attracting additional firms in clusters that have an established presence in a region. Given this factor
(and also consistent with contemporary best practices nationally), the regional economic development
organization (CVEP) appropriately places more emphasis on "economic gardening" (developing
businesses from within by promoting a strong "startup culture") than on recruitment of external firms.
Similarly, the recommended business development strategy for Palm Desert includes a mix of
retaining/growing existing firms, selected attraction of new firms, and technology -oriented
entrepreneurial development.
Based on the trends and projections summarized in the industry cluster analysis, TNDG recommends
that the EDSP consider the following clusters (listed in order of their average annual wages, from highest
to lowest) as strategic priorities/targets (Table 12):
Palm Desert Economic Development Strategic Plan
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Information
Technology
Health Services
Education and
Knowledge Creation
Financial Services
Marketing, Design
and Publishing
TABLE 12. RECOMMENDED CLUSTERS
• Consistent with
regional (CVEP) focus
on business incubation
• Leverages key Palm
Desert assets
(especially higher
education)
• High wage
• Significant spinoff and
placemaking potentials
• Large existing cluster
• High growth in CV
and nationally
• High wage
• Significant
contributor to
residential quality of
life
• Important existing
"cluster" in City
based on
concentration of
higher education
• Substantial expansion
of CSUSB planned
• High growth
nationally
• High wage
• Emerging presence in
City and CV
• Above -average
growth nationally
• High wage
Entrepreneurial There is a small but growing
development / business concentration of tech firms/
incubation workers in Coachella Valley;
timing appears to be good
for Palm Desert to increase
its share of this emerging
cluster
Expansion of existing
firms;
Attraction to fill
"gaps" in local
services available
Coordination with
institutional partners
to maximize growth
opportunities and
"spinoff' potentials in
local economy
Retention/expansion
of existing firms;
Attraction of new
firms
Attraction of new
firms
Presence of CSUSB and UCR
potentially gives Palm Desert
a significant advantage for
attracting startups (possibly
through
incubator/accelerator-type
facilities)
Palm Desert is currently
somewhat "under -served"
compared to CV as a whole
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In addition to providing
direct (high wage) jobs,
higher educational facilities
make the City potentially
attractive to a broad range
of industry/employer types
Relatively small cluster in
City and CV, but provides
high wage jobs and creates
demand for office space
Complements focus on
being a "creative place"
and creates demand for
office space;
Complements other
important clusters (e.g.,
hospitality and real estate)
20
Real Estate,
Construction,
Development
Entertainment
Retail/Restaurant°
Hospitality and
Tourism
• Large existing cluster
• Moderate growth in
CV and nationally
• High wage
• Strong and growing
cluster in City and
Coachella Valley (CV)
• Important links to
other important
clusters (especially
Tourism and Retail)
• Largest existing
cluster in City
• Projected to grow in
response to overall
population growth,
although the
sustainability of this
growth is
questionable given
the ongoing
evolution of the retail
industry
• Important existing
cluster in City and CV
• Moderate growth in
CV and nationally
Retention/expansion
Targeted attraction of
new tenants/uses in
support of other EDSP
goals
Should increasingly be
integrated with retail
development (with
entertainment
businesses potentially
filling voids left by
traditional retail
anchor tenants, and in
keeping with trends
for retail centers to
make shopping more
"experiential")
Retention/expansion
(and possibly focused
attraction) in
collaboration with
commercial property
owners
Marketing to
enhance/retain
existing facilities;
Attraction of new
facilities
These industries tend to be
vulnerable to market
fluctuations
Generally not high -wage,
but important as an
amenity that makes area
attractive to both residents
and visitors
Not high wage, but
important from the
standpoint of tax base and
maintaining a high -amenity
community
Not high wage, but
important from the
standpoint of tax base and
maintaining a high -amenity
community
Includes two clusters: Local Hospitality Establishments and Retailing of Clothing and General Merchandise.
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4. Action Plan Highlights
The framework for implementing the EDSP is summarized in this chapter and detailed in the remainder
of the document.
OVERVIEW OF STRATEGY CATEGORIES
The EDSP includes a total of five major strategy groups that are detailed in terms of 22 individual
strategies. The five strategy categories are outlined below.
Strategy Group I: Marketing/Outreach
Strategy Group Il: Land Use / Development / Revitalization
Strategy Group III: Infrastructure
Strategy Group IV: Workforce Development
Strategy Group V: quality of Life
Implementation Priorities. The identified action items have been prioritized on a scale of 1 to 3, as
follows:
1: High -priority program requiring new budget resources (new initiative or substantial
budget increase for existing program)
2: Existing initiative that will be continued at current budget/staffing levels
3: New, lower -priority initiative potentially requiring additional budget resources
(implementation likely to be deferred for 2-3 years)
The recommended priority levels reflect the input of stakeholders participating in the planning process,
as well as recognized best practices for comprehensive economic development programming.
City Lead. This column on Table 13 shows the recommended City department(s) to lead each strategy or
action item.
Partner Entities. This column indicates the external (public or private) "partner' entities that are
recommended as resources to support implementation of selected strategies and action items.
New Resources Needed. In order to give a sense of the extent to which new resources may be required
for implementation, Table 13 denotes items that are closely related to existing programs as follows:
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"continue existing," "refocus existing," or "expand existing," Action items that are likely to require new
City funding resources are classified according to the following ranges of estimated costs:
$:
Less than $10,000 (one-time or annually, as noted for each item)
$$:
$10,000 to $25,000 (one-time or annually, as noted)
$$$:
$25,000 to $50,000 (one-time or annually, as noted)
$$$$:
More than $50,000 (one-time or annually, as noted)
TABLE 13. ACTION ITEM SUMMARY AND PRIORITIZATION
A. Core Marketing Framework. Establish a
promotional framework for Palm Desert,
focused on the concept of Placemaking,
intended to position Palm Desert as full-
time/full-service community.
B. Business Retention/Expansion. To demonstrate
support for the local business community,
establish a Retention/Expansion program.
C. Business Attraction. Establish an industry -
specific Business Attraction function appropriate
for the City.
D. Visitor Marketing. Continue City's role in
promoting Palm Desert as a visitor destination.
E. Marketing of Key Development Sites. Continue
to actively market City -owned development
opportunity sites (as well as privately -owned
underperforming properties), focusing on
priority/targeted land uses identified through
this planning process and other City initiatives.
F. Commercial Tenant Recruitment. Collaborate
with commercial property owners to recruit
targeted tenants.
LAND USE / DEVELOPMENT / REVITALIZATION
A. Westfield Mall. Encourage/facilitate market
repositioning of Westfield mall (consider
including mixed -use, higher density
1 M&T
ED
1 ED
1 ED
M&T
2 ED
VS
$$ (one-
CVB
time)
CVEP
$$ per
PDACC
year
annually (if
PDACC
a new staff
CVEP
position is
needed)
CVEP
$
PDACC
CVB
PDACC
ED
2 SA CVEP
Planning
Property
2 ED Owners
72 ED Unibail-
Planning Rodamco
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Continue
existing
(may need
minimal $
for new
brochures,
etc.)
Continue
existing
TBD (once
City knows
new
23
development on portions of site), while also
considering the potential for Palm Desert to
maintain its strength as a focus of regional
shopping.
B. El Paseo District. Facilitate long-term market
strengthening of El Paseo District.
C. Highway 111 Corridor / San Pablo. Facilitate
revitalization of Highway 111 Corridor.
D. CSUSB Area Development Coordination.
Facilitate optimization of development
opportunities in the vicinity of the CSUSB
campus. _
E. Other Key Districts/Neighborhoods. Implement
development/revitalization initiatives for other
key districts/neighborhoods (not mentioned
above), including Desert Willow.
INFRASTRUCTURE
A. City Infrastructure Priorities. Align City
placemaking and other development plans and
strategies with key City -designated
infrastructure elements, existing and particularly
planned improvements, as expressed in the
City's Capital Improvement Plans.
B. Coordination with Regional Broadband
Initiatives. Actively support regional and any
other efforts to expand broadband
development, and ensure that City's policies
facilitate links to regional infrastructure.
C. Airport / Air Service. Coordinate with regional
partners to expand local air service and
otherwise maximize the potential for the Palm
Springs International Airport to support
economic development (currently supported
financially through BID).
D. Other Regional Transportation Issues.
Coordinate with regional partners on other
major transportation issues (e.g. investigating
the potential for converting some of the region's
excess rail capacity to a local light rail system;
adopting policies to maximize advantages to the
1
1
2
2
Planning
Property
ED
Owners
Planning
Property
ED
Owners
Planning
CSUSB
ED
UCR
Planning
ED
IPW
1 Planning
ED CVEP
1 PW County
Planning Utilities
Cl
7
Airpor
ED CVB
CVEP
owner's
plans &
goals
TBD
(pending
URP)
$ or
refocus
existing
$ or
refocus
existing
Refocus
existing /
re -
prioritize
CIP
ED RCTC Refocus
PW existing
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region of autonomous vehicles; etc.). Would like
to emphasize potential AV demonstration
project in ElPaseo
WORKFORCE DEVELOPMENT
A. Assess Workforce Development Needs and
Align with Business Attraction Efforts.
Coordinate with CVEP, local industry, and
workforce training providers to establish and
maintain alignment of industry needs and the
community/regional workforce.
B. Leverage Presence of Higher Educational
Institutions. Actively collaborate with COD,
CSUSB, UCR on future academic and expansion
plans (potentially including support on issues
such as housing, transportation, etc.).
C. Entrepreneurial Development. Facilitate
entrepreneurial attraction/development.
QUALITY OF LIFE
A. Placemaking. Tie actions on behalf of targeted
development projects and special events to
benefits they offer to the concept of
"placemaking."
B. Millennial Attraction. Encourage development
of new businesses/events attractive to young
adults (i.e., Millennials).
C. Facilitate Expanded Housing Options. Use City's
ordinances, policies, and other resources to
expand opportunities for development of
housing that is affordable to a range of income
levels and that expands the range of housing
prices generally in the Palm Desert market.
City Departments
ED = Economic Development Department
Housing = Affordable Housing Department
CVEP
WDC
DSUSD
Refocus
2 ED
COD
existing
CSUSB
UCR
COD
ED
CSUSB
2
Planning
UCR
SunLine
CVEP
iHUB
Accelerator
ED
$$$$+
1
Planning
IECE
SBA
SCORE
Planning
ED
CVB Refocus
2
REC
CVEP existing
Vs
$ annually
(assumed
ED
CVB to be an
3
Planning
CVEP added
REC
amount to
Planning
LA budget)
Refocus
3
Housing
existing
ED
Partner Entities
Accelerator = Accelerator Campus (Palm Springs)
Airport = Palm Springs International Airport
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M&T= Marketing and Tourism Division
Planning= Planning Department
PW = Public Works Department
REC = Parks and Recreation Department
SA = Successor Agency to the Redevelopment Agency
VS = Visitor Services Department
URP— Urban Revitalization Plan for El Paseo District
Suggested Initial Steps
COD = College of the Desert
CSUSB = California State University, San Bernardino
CVB = Greater Palm Springs Convention and Visitors
Bureau
CVEP = Coachella Valley Economic Partnership
CVWBC= Coachella Valley Women's Business Center
DSUSD = Desert Sands Unified School District
EPBID = El Paseo Business Improvement District
IECE = Inland Empire Center for Entrepreneurship
!HUB = Palm Springs NUB (incubator)
PDACC = Palm Desert Area Chamber of Commerce
RCTC = Riverside County Transportation Commission
SBA= US Small Business Administration
SCORE = Service Corps of Retired Executives
UCR = University of California, Riverside
WDC = Riverside County Workforce Development
Center
The numbered items below show suggested initial steps for the EDSP. These steps are provided for
consideration by the City, and in some cases may serve as a point of departure for preparing more
detailed implementation plans.
1. Set up system for EDSP implementation, to ensure maximum involvement of multiple
stakeholders, sustained momentum, and sufficient attention is applied to critical, time -sensitive
issues such as specific plan implementation processes, infrastructure priorities, and the like.
2. Determine City's position on industry attraction/economic development marketing role, and
regardless of position taken, maximize the potential to coordinate economic development
marketing with other marketing efforts throughout the City and the Coachella Valley, pertaining
to visitors, development sites, institutions, etc.
3. Coordinate multiple strategic action items/tasks to set up a manageable, sustainable approach
to maximizing Palm Desert's image as a "business accommodating place," establishing priorities,
phasing, and other considerations.
4. Identify and implement internal priorities with respect to the multiple districts/neighborhoods
described in strategy category II (Land Use / Development / Revitalization) and adjust
CIP/infrastructure priorities accordingly.
5. Ramp up business retention/expansion programming.
6. Coordinate with key partners (CVEP, CSUSB, etc.) to define immediate objectives for an
entrepreneurial development initiative (including potential development of
incubator/accelerator facilities).
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5. Detailed Action Plan
I. MARKETING AND OUTREACH
A. Core Eponomic Development Marketing Framework. Establish a
promotional framework for Palm Desert, focused on the concept of
Placemaking, intended to position Palm Desert as full-time/full-service
community.
A.1 Promote development/placemaking concepts to Palm Desert residents, focusing on various
aspects of why it is important for the community to evolve.
A.2 Design City's promotional system to include, at a minimum, the following topics. existing and
planned infrastructure capacity, opportunity sites and development focus areas (see Action
Item I.E.), City incentives, other departmental collateral materials, and educational resources.
Where practical, make use of GIS "story maps" within the system.
A.3 Prepare operational plan for implementing promotional system, considering budget and
staffing, coordination with other entities, priorities, and similar considerations.
A.4 Collaborate with CVB and other regional entities as appropriate on the creation of marketing
initiatives to increase attractiveness of Coachella Valley as a place to live and work year-round
(especially for targeted populations such as Millennials/ young professionals).
Because Palm Desert and the Coachella Valley in general are involved in transitioning their
image from a primarily resort environment to that of a more diversified urban area, marketing
strategies and efforts are particularly crucial to the design and execution of overall economic
development programs within the city and region. For this reason, we have combined marketing
action items focused on expanding the image of the area into a Core Marketing Framework.
Marketing considerations include the following:
• Recognizing that Coachella Valley, with all its attractive attributes, has cost advantages
relative to California locations that include:
o Silicon Valley
o Orange County
o Silicon Beach, Los Angeles
• Integrating marketing messages for visitors with marketing the region as a business
location, to help ensure that 1) business prospects are aware of the region's amenities,
even for those amenities for which visitors are the primary marketing target, and 2)
minimizing the distinction between positioning the region as a visitor destination and as
a home for a wide range of business types.
• Making certain that prospects are aware of City -owned development opportunity sites,
which can offer them certain advantages.
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• Considering the potential for designating districts or "branded neighborhoods' within
Palm Desert, in a manner similar to Palm Springs. This could add an element of
exclusivity to such areas and also define geographic areas in which marketing messages
pertaining to positioning Palm Desert as a full-time/full-service community could be
more meaningfully focused (in the sense that certain areas could more credibly have the
look and feel of a "typical' rather than resort or seasonally oriented community).
The Core Marketing Framework includes promoting the idea of an increasingly diversified Palm
Desert to existing residents, calling their attention to the general advantages of a more
diversified economy, and specific advantages, including having expanded employment options
for youth, and the fact that retirement communities must evolve in order to continue to thrive
(and tools can be made available to facilitate such processes).
B. Business Retention/Expansion. To demonstrate support for the local
business community, establish a Retention/Expansion program.
B.1 Review best practices for Retention/ Expansion programs in light of overall economic
development framework, evaluate alternative approaches, and prepare recommendations.
BRE role within overall economic developments
A fundamental function of local economic development is to respond to inquiries from,
commonly, outside prospects, which tends to result in a "reactive" operational mode.
In a business retention/expansion (BRE) program, local economic development officials may be
contacted by existing firms for assistance, but a BRE program is most likely to be proactively
reaching out to existing businesses to achieve various purposes, one of which is to identify
possible assistance roles.
An ED Strategic Plan sets the framework for the most effective forms, content, etc. of outreach.
Simultaneously, a BRE program will feed into the development and updating of ED strategic
plans. In other words, strategies and actions that are helpful for existing firms are likely to also
be relevant to prospective employers.
BRE tends to be the more visible form of local economic development activity, and so by default
becomes a form of self -promotion for ED while also serving the primary purposes for which the
outreach is conducted.
BRE can also readily be perceived, by existing businesses and also the general public, as
balancing a community's efforts toward attracting new businesses.
Primary purposes include:
5 Resources for this section include the publication: Beyond the Survey: How EDOs Add Value through Business
Retention and Expansion. International Economic Development Council (IEDQ, 2017.
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• Discovering community -level issues that may be helping or hindering a particular
business, group of businesses or entire industry/cluster, or a geographic concentration
of businesses.
Discovering issues outside the community's purview affecting the health of businesses,
in response to which the community could consider a range of responses, from offering
remedial action to generating contingency plans in the face of possible downsizing or
loss of such businesses.
What is the range of the kinds of issues affecting local businesses that a BRE function can
effectively address?
Locally focused:
• Worker retention/recruitment, which could reflect a range of issues from the need for
supplemental training resources to the ability of the community to accommodate
segments of the required workforce, due to limited affordable housing or similar
challenges.
• Land supply or land -use permitting issues, related to the need to expand or to change
operational characteristics.
Broadly focused:
• Disruption or other types of changes within an industry, including trends of outsourcing,
automation, technological innovations, etc., which might require additional training,
funding for retooling, assistance in attracting specific suppliers or services to the
community, etc.
• Assistance in identifying and implementing export opportunities.
• Unavoidable downsizing, in which the BRE role would be to help displaced workers
locate alternative employment, and to retain displaced employees in the area if
practical.
Implementing the BRE function
Basic outreach functions have traditionally been handled through surveys, in which business
owners/managers are asked to identify specific challenges, positive and negative influences
exerted by the community, and the like. Many examples of these surveys are available from
economic development organizations, and the activity has also been systematized through
organizations such as Blane Canada.' Inherent in any outreach approach is the notion that the
ED people are developing relationships with the business community. Some of these
relationships will involve people at the headquarters of companies with branches in Palm
Desert, but located elsewhere.
6 http://www.blanecanada.com/product_Synchronist.htmi
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Finally, major business decisions, such as downsizing, relocation, etc. are sometimes made at
the margins, where even relatively minor interventions can make a difference.
Surveys are frequently supplemented by one-on-one interviews.
Firms to be surveyed/interviewed can be selected and prioritized based on a number of criteria:
• Size of firm.
• Importance of the firm or industry to the local economy, where such firms may or may
not also be tied to industries/clusters formally targeted for community support.
• Awareness that certain industries are especially threatened by global changes.
• Relative importance of entrepreneurially oriented businesses, compared to other
business types.
• Findings from monitoring a specific group of firms, relative to such things as job
postings, social media messages, etc.
Especially in communities where the BRE function is limited, BRE professionals are most likely to
serve in a coordinating role, bringing various partners in workforce development, business
organizations such as the Chamber of Commerce, finance, marketing, etc. in contact with the
firm desiring assistance.
Some communities formalize their partnering arrangements in anticipation of various kinds of
business needs, entering into agreements with selected service providers about procedures,
protocols, etc.
81 Prepare operational plan for implementing program, considering budget and staffing,
coordination with other economic development functions and strategic priorities, and similar
considerations.
C. Business Attraction. Establish an industry -specific Business Attraction
function appropriate for the City.
C.1 Review options by which Palm Desert could effectively participate in focused, industry -specific
business attraction activities, in the context of the City's and other regional entities' other
promotion/marketing efforts and in recognition of typical/best economic development
practices, and prepare recommendations.
Attraction programs throughout the US address a wide range of alternative program focus areas
and activities, ranging from outreach to specific firms, and specific locations (perhaps within a
set of targeted industries) to general regional marketing, offering and managing incentives, and
responding to inquiries from prospects.'
In Palm Desert, the working assumption is that attraction efforts will not be directed to
individual firms in specific targeted industries, but focused on promoting Palm Desert as a
' Resources for this section include the publication: Current Approaches to Business Attraction and Retention.
Second Edition, by Steven G. Koven & Thomas S. Lyons. International Economic Development Council (IEDC), 2010.
Palm Desert Economic Development Strategic Plan
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desirable location for business activity — with some types of business activity emphasized as
most desired. Under this scenario, the Attraction program is understood to overlap with many
other aspects of the Economic Development Strategic Plan, because of its emphasis on
promoting the value of various community assets, existing and emerging that may be
represented throughout the Plan.
Linkages of the attraction program to various aspects of the EDSP are summarized below:
• Marketing, in which general promotional materials are customized to focus on
community assets (discussed below) considered particularly attractive to prospective
employers (and also tailored to one or more specific sets of preferred
employers/industries). In this sense, marketing is intended to demonstrate the
community's capacity to accommodate, and also be generally attractive to, desired
types of employers.
• Targeted development/improvement areas within the community, different ones of
which may be particularly suited to certain types of businesses, including areas
particularly appropriate for "placemaking" efforts.
• Entrepreneurial support organizations and facilities.
• Education and job training resources.
• Existing business -category strengths, such as high -end regional retail in Palm Desert.
Other components of an attraction strategy that have broad community applicability include the
following:
• An inventory and assessment of business support service industries in or accessible to
Palm Desert can be used to both promote this asset to prospects and identify any gaps
or other weaknesses within this group of service providers that needs to be remediated
through support activities or recruitment of missing components.
• Institutionalizing a process by which the city and other key stakeholders periodically
take on the role of "futurists" would serve notice that businesses will have a local
resource that understands at least some of the dynamics of the globally changing
business and governmental climate, and would therefore be in a position to take
appropriate actions.
The variety of Attraction -related strategic topics also emphasizes the importance of cross-
referencing action items within the EDSP.
Citylncentives. Monetary and other incentives can also play an important role in the City's
business attraction efforts. In terms of monetary/financial incentives, Palm Desert has (or is
currently considering) the following programs:
• The City's existing Fagade Enhancement Program (FEP) assists building owners with
improvements to commercial properties. For qualifying projects, the City currently will
contribute up to half the costs of construction improvements up to $75,000 (depending
on property size). Currently the program covers businesses located along Highway 111
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(Monterey Avenue to Deep Canyon Road), and El Paseo (east of Monterey) and soon to
include San Pablo Avenue.
• The City is currently designing a Hotel Incentive Program to incentivize development of
new hotels in targeted areas of Palm Desert (e.g., El Paseo, the Highway 111 Downtown
Core and Desert Willow Golf Resort). The program will provide a framework for tax -
sharing agreements whereby a participating new hotel can recoup a portion of
development/investment costs through a sharing of TOT and/or sales tax revenues
generated by the new development.
• The City is also planning to implement a program to financially assist new businesses in
paying for the permitting requirements of the Coachella Valley Water District (CVWD),
which can otherwise be cost prohibitive for some business types (e.g., restaurants). It is
anticipated that this incentive program will be focused on targeted areas of the City
(e.g., Highway 111 /El Paseo/ San Pablo).
In addition to the direct monetary incentives listed above, the City can further enhance the
effectiveness of its business attraction program through the following types of low-cost or
no -cost "incentives":
• Demonstrating how various aspects of livability in the community supports the growth
and functionality of a particular business type, or businesses in general.
• Providing networking or organizational -support opportunities for industries focused on
their particular cluster. A local Manufacturers Association, although probably more
narrowly focused than most cluster -based groups, exemplifies this approach.
• Making facilities available, or otherwise supporting the creation of facilities, for business
incubation, or other types of entrepreneurial or research and development support.
• Demonstrating that local educational and job training resources are in alignment with
desired industries' missions. In this case, partnerships with relevant institutions would
be paired with marketing messages.
C.2 Prepare operational plan for implementing the Business Attraction program, considering
budget and (if required) staffing, coordination with other economic development functions
and strategic priorities, and similar considerations.
Industries targeted for expansion within a locality are generally derived based on a combination
of their likelihood of being successfully expanded within the region, and stakeholders' interests
in diversifying local economies along certain lines.
For small cities, business attraction activities can be delegated to an economic development
entity that represents the larger surrounding region. Larger employers who are likely to be
making use of these kinds of services will in any case first need to be satisfied that the larger
region is a suitable location, and the regional entity will be in the best position to convey these
facts. Consideration of individual cities within that region then becomes a second -level
deliberation process undertaken by the prospect.
CVEP provides a range of services to support existing and new business development in the
Coachella Valley, including support for the Coachella Valley Regional Plan for College and Career
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Readiness (see programs related to action Item IV.A). Three industry clusters are associated with
this effort: Healthcare, Advance Technology, and Arts, Media & Entertainment'
D. Visitor Marketing. Continue the City's role in promoting Palm Desert as a
visitor destination.
D.1 Continue coordination with hospitality and tourism -retail sector spokespersons to confirm or
refine the City's role, which would include holding discussions with representatives of
organizations such as CVB, trade groups, and business districts. Also investigate specific
measures by which the City can best leverage marketing efforts undertaken by CVB.
D.1 Hold discussions with representatives of cultural organizations such as The Living Desert and
McCallum Theatre, to gain their perspective on how the City can support visitor marketing
efforts, broadly and/or in terms of specific facilities.
Action items within the Visitor Marketing framework can be designed and implemented to be
fully complementary to the Core Marketing Framework discussed above. Visitor and hospitality -
oriented marketing will extend the tradition of promoting the City and region as a destination
for recreation, seasonal living, and retirement, while also including messages related to the
expanded role of the city/region as a full -service urban complex. In the latter context, visitor
amenities are understo6d to also be attractive to residents and workers (and their employers).
E. Marketing of Key Development Sites. Continue to actively market City -
owned development opportunity sites (as well as privately -owned
underperforming properties), focusing on priority/targeted land uses
identified through this planning process and other city initiatives.
E.1 As part of ongoing efforts to market and otherwise facilitate the development/redevelopment
of suitable properties, incorporate priority/targeted land uses identified through this (EDSP)
planning process.
E2 Continue efforts to attract additional hotel, recreational, and entertainment uses, particularly
those that complement existing uses of these types, and specifically recognizing the need for
multiple hotels within the El Poseo area.
E.3 Support marketing and other efforts related to building out the remaining development
capacity at Desert Willow.
E.4 Periodically update feasibility analyses related to the PKF (hotel) study and other relevant
studies.
Developable land that is also desirable, and available at a reasonable price, is a relatively scarce
commodity throughout Southern California, and so provides a very tangible advantage to Palm
Desert. By offering such properties within the context of a location, Palm Desert, that is
' http://portal.onefuturecv.org/home
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becoming increasingly desirable in part because of actions initiated or encouraged by the City,
the EDSP and property marketing materials become mutually complementary. Uses developed
on these sites can complement the strategic objectives within the EDSP, and the EDSP becomes
an integral part of the value proposition for these sites.
F. Commercial Tenant Recruitment. Collaborate with commercial property
owners to recruit targeted tenants.
F.1 Focus on retail/restaurant/entertainment tenants.
F.2 Focus on employers in other (other than tourist -related) industry sectors.
F.3 Investigate options for improving freeway (1-10) signage to attract additional visitors to Palm
Desert's retail/restaurant/entertainment businesses.
The economic development function can serve as an additional channel by which real estate
brokers, property owners, etc. are put in touch with employer/investor prospects coming into or
expanding in Palm Desert. Some communities choose to maintain databases of available
property, working in cooperation with local real estate professionals, and these are sometimes
set up and managed by third -party providers such as GIS Planning.
II. LAND USE / DEVELOPMENT/ REVITALIZATION
Several overarching objectives can be associated with this strategy category:
• Expedite development that contributes to the transition of Palm Desert into a year-round,
economically diversified community, which can be accomplished through a combination of
designating appropriate land uses in new or redevelopment -ready areas of the community
and defining supportive programs.
• Helping to preserve and enhance the value of existing commercial and residential
neighborhoods and facilities, especially areas challenged by changing trends in how such
areas/facilities are used.
• While the City has plans and codes applicable to certain specific areas, additional areas may
need to be identified in which 1) desired land uses, such as light industrial, could be more
readily accommodated, and 2) special attention is needed to preserve/maximize value.
• While industry targeting will play a role in identifying demand for property development,
are there institutional uses, such as hospitals, that are needed and otherwise feasible in
Palm Desert?
A. Westfield Mall. Encourage/facilitate market repositioning of Westfield mall
(consider including mixed -use, higher density development on portions of
site), while also considering the potential for Palm Desert to maintain its
strength as a focus of regional shopping.
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A.1 Identify the essential coordinating elements for aligning the EDSP plus the overall economic
development program with plans and policies related to Westfield Mall.
A.2 The EDSP should anticipate that, if major tenants vacate the mall, the City will forma
partnership with mall owners to develop a master plan to redesign/repurpose all or portions
of the site.
A.3 Draft any recommended special coordinating actions for Westfield Mall (from preceding Sub -
Action Items) and submit for review and potential approval.
The retail industry is changing in fundamental ways, and some of these changes are influencing
the design of new retail centers and the viability of certain types of existing centers, particularly
the traditional enclosed regional mall. Methods of reinvigorating these malls include: 1)
redesigning and reconfiguring them into more contemporary formats, which often includes
attempting to convert malls into something more like traditional main streets; 2) introducing
different kinds of uses, such as offices, residential, hotels, or institutional uses, which may occur
at higher densities; 3) changing the retail focus, for example from traditional department store
anchors to discount department or other "big -box' stores.
Palm Desert has virtually monopolized regional shopping trade with the Coachella Valley up to
this point. While other parts of the Valley will increase in population at a faster rate than Palm
Desert, the city's central location could allow it to maintain this trade area advantage.
Consequently, repositioning of the Westfield Mall and other regional -level retail concentrations
can be approached with this potential in mind.
B. El Paseo District. Facilitate long-term market strengthening of El Paseo
district.
B.1 Identify the essential coordinating elements for aligning the EDSP plus the overall economic
development program with plans and policies related to the El Paseo district.
B.2 Draft any recommended special coordinating actions for the El Paseo District (from preceding
task) and submit for review and potential approval.
C. Highway 111 Corridor / San Pablo. Facilitate revitalization/redevelopment
of Highway 111 corridor.
CA Identify the essential coordinating elements for aligning the EDSP plus the overall economic
development program with plans and policies related to the Highway 111 corridor.
C.2 Draft any recommended special coordinating actions for the Highway 111 corridor (from
preceding task) and submit for review and potential approval.
The Highway 111 corridor is vitally important to the physical business environment of Palm
Desert because of its linkages to El Paseo, Westfield Mall, and other business and institutional
features. Balancing the function of a major thoroughfare with the development potential along
it is a common challenge in urban planning and design, so the potential of areas such as the
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corridor always involve compromises. Corridors such as this tend to benefit from targeted
government investment (in buildings as well as streetscape and other infrastructure
improvements), flexibility in zoning and other land use requirements, rehabilitation programs,
and special events/promotions and incentives. For many visitors as well as residents in the area,
the corridor will be the gateway to Palm Desert.
A number of specific improvements to Highway 111 are outlined in the 2016 Palm Desert
General Plan, related to Implementation steps involving the City Center Area Plan (Chapter 10).
These improvements (phased according to funding availability) include:
• New frontage road access points
• Cycle tracks
• Landscaping in the median and elsewhere
• Gateway monument signage
• Crosswalks
• Technical improvements such as striping and traffic signal synchronization
Design standards will enhance the aesthetics and functionality of the 111 Corridor properties.
The phasing of improvements will begin at the intersection of Highway 111 with San Pablo
Avenue and extend outward east and west from there, emphasizing Highway 111 as an entry
point to the City Center area.
D. CSUSB Area Development Coordination. Facilitate optimization of
development opportunities in the vicinity of the CSUSB campus.
D.1 Establish a partnership with CSUSB to maximize development potential,
suitability/compatibility, and timing, for vacant land areas surrounding the master -planned
property (the master -planned property includes developed and as yet undeveloped portions of
the campus) shown in the Campus Master plan 2017 for CSU, Palm Desert Campus.
Options for this could range from having the city commit to various principles, standards, etc.
for the vacant property outside the master plan ("unplanned property") to working with CSU to
develop a specific plan for the relevant area. The intent of such efforts is to recognize the value
of the University presence and the unique opportunities to support campus development
through appropriate planning and development measures. These points are set forth in the
2016 Palm Desert General Plan, which states that:
The City needs to be certain that planning helps support the presence of "enough land
in the vicinity of the universities to accommodate new students, faculty, and university -
supportive businesses.... and to ensure that all new development in the area is
interconnected so as to form a cohesive university area" (page 22).
D.2 Identify the essential coordinating elements for aligning the EDSP plus the overall economic
development program with plans and policies related to the University/Cook area, and
describe the rationale for recommending any coordinating steps.
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For the Cook Street corridor near the University, the need for coordinating with the presence
and expansion of the CSUSB campus applies, as in Sub -Action Item D.I. above. Also, Cook Street
in this area needs to be configured so that its effect, as a major street, on dividing the campus
from the rest of the University area is minimized. This issue is addressed in the 2016 Palm Desert
General Plan, including guidance on how the configuration of the street can change over time,
as needed, while minimizing the "barrier" effect in the interim (page 59).
The 2016 University Neighborhood Specific Plan "provides a vision, standards, and
implementation strategies for the University Neighborhoods in the westerly half of the
University District." The vision is characterized by "a synthesis of traditional American neigh-
borhood patterns" —typified by spatial definition, integration of varied housing types and uses,
and a strong sense of place —"with the modern design and desert landscape heritage and
sensibilities of Palm Desert and the Coachella Valley (page 2-1)."
Standards in the Specific Plan describe the required urban and architectural design patterns,
regulate uses and densities, and regulate the design of the public space network that forms the
framework of the Plan area. The standards focus on encouraging a "circulation network that
balances the use of all travel modes, including automobiles, pedestrians, bicycles and public
transit (page 1-7)."
D.3 Draft any recommended special coordinating actions for the University/Cook area (from
preceding task) and submit for review and potential approval.
E. Other Key Districts/Neighborhoods. Implement development/
revitalization initiatives for other key districts/neighborhoods.
E.1 Identify the essential coordinating elements for aligning the EDSP plus the overall economic
development program with plans and policies related to the other key
districts/neighborhoods, and describe the rationale for recommending any coordinating steps.
E.2 Draft any recommended special coordinating actions for the other key districts/neighborhoods
(from preceding task) and submit for review and potential approval.
Development/revitalization initiatives in other key locations within Palm Desert can be
identified in recognition of the following conditions:
• Projects at key locations within a struggling area can seed other property enhancements.
• "Key locations" include consideration of visibility, existing levels of distress, capacity and
other suitability for uses that tend to generate additional beneficial activity, potential to
contribute to a "chain of relationships" among separate improved properties, the need to
encourage a transition of activities concentrated in an area to more productive ones,
potentially involving one or more targeted industries.
• Revitalization target areas are not always obvious. For example, specialized communities
such as those accommodating senior residents do not necessarily follow a typical lifestyle
transition pattern, since they begin life serving a narrowly focused demographic group. As
the initial cohort of already -elderly residents continue to age in place, community facilities
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and infrastructure may need to adapt, aging residents may want to generate plans and
repurpose facilities for encouraging younger population segments, and other changes may
be needed to take advantage of change happening outside the community/neighborhood.
Homeowners' associations in such communities may need technical and other support in
addressing these kinds of challenges.
III. INFRASTRUCTURE
A. City Infrastructure Priorities. Align City placemaking and other
development plans and strategies with key City -designated infrastructure
elements, existing and particularly planned elements, as expressed in the
City's Capital Improvement Plans.
A.1 Coordinate San Pablo Street Improvements, such as those identified in the Proposed Five -Year
Capital Improvement Program (Fiscal Year 2017-2018 to 2021-2022) with the vision in the
2016 Palm Desert General Plan of a revitalized San Pablo Corridor.
The General Plan identifies San Pablo Avenue as a key area for transformational change to
facilitate the creation of a downtown/city center for Palm Desert.
A.2 Establish an inter -departmental committee to annually review the City's infrastructure
priorities based on the potential economic development benefits of potential capital
improvements
A.3 Establish a framework through which infrastructure development and planning is coordinated
with plans for property development/revitalization, where economic development interests
apply.
Coordinated and timely infrastructure improvements can be key to achieving strategic plan
objectives that involve property development, and because at least some infrastructure
elements are under the control of the City, it is a relatively straightforward process to achieve
this kind of coordination.
B. Coordination with Regional Broadband Initiatives. Actively support
regional and any other efforts to expand broadband development, and
ensure that City policies facilitate links to regional infrastructure.
B.1 Document regional efforts, current and planned, to secure and expand broadband services,
and assess level of effort, timing, etc.
B.2 Explore City options, if any, beyond support of any regional efforts, and recommend options
for consideration, with supporting rationale.
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Strategies to enhance broadband service are hampered almost everywhere because of service
providers' reluctance to share information and thereby compromise some potential competitive
advantage. Policymakers have a tendency to end -run this problem by targeting broadband
development to special populations or institutions. Alert stakeholders can piggyback on such
initiatives by encouraging providers (other than those involved in the targeted improvement) to
take advantage of the opportunities provided by such programs to expand service, for example
by running additional lines in an open trench. As these kinds of programs tend to have limited
lifecycles, they need to be closely monitored.
The RivCo Connect Broadband Master Plan for Riverside County offers several low-cost
strategies that could be implemented to assist in the execution of this action item initiative. A
summary of these strategies includes:
• Requiring dedicated conduit on major arterials when issuing encroachment permits (Dig
Once Concept).
• Allowing public facilities to be used for technology purposes.
• Creating and maintaining an accessible database of infrastructure assets that could
potentially be used by broadband providers.
• Coordinating with private entities (e.g. Southern California Edison) in order to utilize
their broadband assets while other entities, existing or new, are developing broadband
infrastructure citywide.
• Developing an informational resource to spread awareness of broadband expansion to
indirectly market or identify companies that are participants in this process.
In the City of Rancho Cucamonga, Rancho Cucamonga Municipal Utilities (RCMU) maintains a
fiber-optic system that has been primarily used by the City. Rancho Cucamonga adopted a Fiber
Master Plan on September 20, 2017. The Plan outlines how the city, along with a public private
partnership, will provide high speed broadband gigabit service to Rancho Cucamonga. The Plan
"provides staff with the framework and tools to implement the goal of providing gigabit
broadband service in the future to the business community as well as a fiber-to-the-
premise/home project."'
C. Airport / Air Service. Coordinate with regional partners to expand local air
service and otherwise maximize the potential for the airport to support
economic development.
C.1 Explore and identify options currently under consideration by Palm Springs and elsewhere in
region, for expanding air service or any other function that would serve Palm Desert of other
regional economic development interests as outlined in the EDSP.
s https://www.cityofrc.us/cityhall/engineering/rcmu/fiber—optic/default.asp
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C.2 Explore and identify any new, additional options for expanding the Airport's role in economic
development, and if options are found, identify potential partners and other strategic matters
that would need to be considered.
The City of Palm Springs, which operates the Palm Springs International Airport, completed the
Palm Springs International Airport Master Plan Update in September of 2015. The master plan
deals primarily with various enhancements to the Airport's operational capabilities. The City of
Palm Springs General Plan, General Plan Land Use Detail map (Central Area, updated December
2014) shows land designated for industrial use, some developed and much of it currently vacant,
surrounding the Airport. Some of the industrial -designated land to the south of the airport is
also within a redevelopment area identified by the City. In general, however, residential uses are
also abundant near the airport including, at the north end, areas directly under the flight path.
In such circumstances, it is reasonable to expect conflicting interests to arise with any planned
or actual increase in air traffic.
Securing additional scheduled air service is an ongoing challenge for small cities, requiring
regional cooperation and both short and long-term strategic direction and championing of this
objective. Air carriers complicate this challenge through continuous tinkering of their business
plans, the necessity to update aircraft and other systems that then have different capabilities
and compatibilities with small airports, and similar considerations. Regulatory measures also
affect the potential for small cities to retain air service. The resulting general lack of certainty in
air service at small cities can be a serious detriment to local economic development.
D. Other Regional Transportation Issues. Coordinate with regional partners
on other major transportation issues (e.g. investigating the potential for
converting some of the region's excess rail capacity to a local light rail
system; adopting policies to maximize advantages to the region of
autonomous vehicles; etc.).
D.1 Monitor the progress of regional plans and make periodic recommendations on how to
respond to progress, changes of plans, etc., in context of the EDSP.
D.2 Provide input, as part of regional planning for transportation, with a focus on how best to
align with EDSP strategic objectives. Also, monitor "big picture" trends, such as autonomous
vehicles, and see that these kinds of trends are considered as part of plan development.
Official regional transportation coordination tends to be a fairly bureaucratic process,
thoroughly systematized and generally long range in terms of major investments. This may be
particularly applicable in relation to rail -related projects. The following material, summarizing
the status of plans to: 1) evaluate the potential of future commuter rail service to the Coachella
Valley, and 2) bring additional Amtrak intercity rail service to the Coachella Valley from Los
Angeles, is summarized in Table 4, EDSP Elements and Programs.
Local stakeholders can, however, continue to identify and advocate for innovative approaches
to improving transportation systems, while being mindful of regional projects unfolding after
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years in the pipeline. Creative thinking related to transportation should involve at least the
following considerations:
• Improved transit service could extend, although minimally at this time, the Coachella Valley
labor shed, although it must be noted that workers can commute out of the area as easily as
they can commute in.
• Good transit services can help attract younger workers, who seem to be more amenable to
this type of commuting.
• An efficiently functioning bus system is probably the most cost-effective near -term transit
improvement to examine for Coachella Valley. Investigations of enhanced bus service could
include the concept of express buses to city hubs.
• Self -driving cars and trucks (and recreational vehicles, etc.) will change many aspects of the
relationship between transportation and land use, and therefore between where people live
and where they work, shop, recreate, etc. The nature, extent, and pace of this change are
unknown at this time, but policymakers can closely monitor the technological, policy, and
other trends that will foreshadow what we should expect to be an imminent major overhaul
in how transportation services are provided. Effects could be felt in, for example: 1) an
overall increase in the general attractiveness of the region to the extent it is perceived as
being more readily accessible; 2) the flexibility of working with areas targeted for
revitalization if parking space and access requirements are significantly reduced; 3) the need
to repurpose certain auto -oriented uses (e.g. parking garages) in order to maintain basic
functionality.
IV. WORKFORCE DEVELOPMENT
A. Assess Workforce Development Needs and Align with Business Attraction
Efforts. Coordinate with CVEP, local industry, and workforce training
providers to establish and maintain alignment of industry needs and the
community/regional workforce.
A.1 Conduct interviews or establish other system for obtaining input from industry
representatives, to identify gaps in skills that they are facing, through difficulty in recruiting or
finding people whose skills do not fully match their needs.
A.2 Meet with CVEP and training providers to assess and document their perceptions of alignment
of industry needs with training programs and facilities that are available.
A.3 Through interviews or other input from industry representative and workforce training
providers, inventory issues directly or indirectly related to attracting and accommodating the
required workforce, including barriers to recruitment and the capacity of the community to
support the range of workers required to sustain economic growth.
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A.4 Actively integrate industry attraction efforts with local education/workforce development
systems. (See Action Item N.A.).
Mismatches between the workforce -skills requirements of local industries and the available
workforce and workforce training resources are common throughout the country, in some cases
in spite of focused efforts to align these conditions. Some of the dimensions of this challenge
include the following:
• The rapid pace of change in workforce requirements, with increasing use of automation
across virtually all industries, means that workers face the challenge of frequently updating
their existing skills or even cross -training into other skill sets. Meanwhile education/training
institutions attempt to keep their teaching expertise up-to-date and also obtain new
technology essential for training purposes —some while facing the usual budget constraints
of public institutions.
• Employers in manufacturing and other blue-collar sectors, throughout the US, frequently
express concern about our educational (K-12) system's focus college preparation when
there are many well -paying technical jobs that require training and general job preparation
that differ from most university curricula. High school students tend to be unaware of these
opportunities, and in some places manufacturing organizations and individual firms conduct
special outreach programs to help remedy this.
Especially for small cities, a lack of critical mass in any particular industry that requires
specific skill sets means that workers with those skills are less likely to be both found in the
area initially and be attracted to the area, if they do not perceive that opportunities are
sufficiently plentiful for them to risk relocation. In this sense, the measure of "critical mass"
varies primarily on the basis of the perception of the skilled workers (although it also carries
over into prospective employers' perceptions). This issue is one reason why target -industry
analysts include criteria measuring the relative strength of industries already in an area.
While low scores in this particular measure do not automatically preclude an industry from
being targeted, depending on other factors, potential limitations in workforce availability
must always be considered.
• A limited supply of affordable housing is a common barrier to a diversified
economy/workforce, especially in high -amenity communities such as Palm Desert. Because
this problem is so widespread in California, there are numerous best practices that can be
called upon to help address the issue, even though comprehensive solutions seem to remain
elusive.
CVEP is involved in workforce development through the Coachella Valley Regional Plan for
College and Career Readiness a partnership between industry, economic development, and
education professionals, along with students throughoutthe Coachella Valley, with the overall
goal of aligning programs in students with economic opportunities in the Valley.
An area's competitive advantage can sometimes be a function of specialized expertise, unique
programs, etc. within local institutions of higher learning or other job -training resources.
Similarly, the simple presence or lack of certain kinds of education/training resources can
influence the selection of target industries. In Palm Desert, the general perception is that
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students are graduating from institutions and have very limited options for local employment in
fields related to the training they have acquired.
B. Leverage Presence of Higher Educational Institutions. Coordinate with
COD, CSUSB, UCR on future academic and expansion plans (potentially
including issues such as housing, transportation, etc.).
B.1 Compile expansion plans of institutions, assess how these relate to one another and how they
potentially support EDSP objectives.
B.2 Investigate what direct support is needed by these institutions, and what options are available
to the City to provide these kinds of support, which might include coordinating with other
entities in the region.
B.3 Investigate what types of indirect support (e.g. Specific Plan coordination) would help the
institutions implement their expansion plans, and what options are available to the City to
provide these kinds of support.
B.4 Advocate for increased funding for local colleges.
An economic development strategic plan can provide traditional forms of support to the
expansion plans of local institutions of higher learning (rallying stakeholders, political action,
etc.), and play a key role in providing peripheral support to campus expansion plans, involving
matters such as infrastructure development, production of suitable housing, and expansion of
transit systems.
The City of Palm Desert, through creation of the University Neighborhood Specific Plan, provides
both direct and indirect support to CSUSB's expansion plans. This Plan can be further
coordinated through the Economic Development Strategic Plan.
Institutions of higher learning also face competitive pressure, competing for staff, students, and
resources to maintain and expand services. Local colleges and universities can also be major
influences on the attractiveness of a place for economic activity, especially for high wage, high
value functions.
C. Entrepreneurial Development. Facilitate entrepreneurial
attraction/development.
C.1 Establish coordination protocols between the City and existing programs in the region.
C.2 Investigate the potential for Palm Desert to become the second Coachella Valley location for
the Accelerator Campus currently located in Palm Springs.
C.3 Promote development of co -working facilities in Palm Desert, which can bridge the gap for
entrepreneurs between formal office space and working from home.
Providing support for entrepreneurs is an accepted integral part of economic development
practice, in keeping with the generally accepted observation that start-up and expanding local
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businesses are a major source of local job creation, especially for small cities. The practice is
especially justifiable in amenity -rich communities such as Palm Desert, where individuals with
the means to do so may choose to live and sometimes work independently, choosing a place
that is attractive to them without necessarily having to rely on other existing locally based
economic opportunities. While not all entrepreneurs in this general category will need business -
development support or incubators, the presence of support services can help enterprising
individuals take their independent businesses to a higher level than they might otherwise attain.
A number of facilities and organizations provide support for entrepreneurs in the Coachella
Valley, as shown on Table 4, EDSP Elements and Programs.
V. QUALITY OF LIFE
A. Placemaking. Tie actions on behalf of targeted development projects and
special events to benefits they offer to the concept of "placemaking."
A.1 Establish criteria related to placemaking and incorporate it into processes by which priorities
for promoting and otherwise encouraging specific development projects are determined.
A.2 Specifically incorporate placemaking into supportfor, and planning/coordination efforts
related to, special events.
According to the Project for Public Spaces, placemaking has to do with "strengthening the
connection between people and the places they share." As a function, placemaking represents
"a collaborative process by which we can shape our public realm in order to maximize shared
value." As a concept, placemaking encourages a creative, comprehensive approach to fostering
people's identification with a place, and is therefore understood to include consideration of
anything from physical enhancements to giving expression to cultural values.10
B. Millennial Attraction. Encourage development of new businesses/events
attractive to young adults (i.e., Millennials).
B.1 Establish a system for investigating options and use that system, which may include creative
outreach efforts, to develop a list of businesses/events considered to be attractive to young
adults, and which could include existing establishments or business types as well as those not
currently present in Palm Desert.
B.2 Review priority sites/areas and other locations in the City, and evaluate and prioritize their
suitability as locations for businesses/events attractive to young adults.
10 https://www.pps.org/reference/what_is_placemaking/
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8.3 Establish policies aligned with promoting the development of businesses/events attractive to
young adults, including incentives or other methods for encouraging, recommended practices
for such businesses (e.g. hours of operation), adjustments to codes, and similar considerations.
Having these kinds of facilities and activities can contribute to placemaking efforts and round
out other "destination" amenities already present in Palm Desert, including other visitor -
oriented amenities, some of which are attractive to local residents as well as tourists and
seasonal residents. By carefully considering other such facilities/venues in Coachella Valley,
Palm Desert can cultivate a unique niche for this sort of activity. The location of these types of
functions must take into consideration neighborhoods' resilience for such activities.
C. Facilitate Expanded Housing Options. Use City's ordinances, policies, and
other resources to expand opportunities for development of housing that is
affordable to a range of income levels and that expands the range of
housing prices generally in the Palm Desert market.
C.1 Review City development ordinances/policies to identify alternative strategies by which
ordinances could be used, as given (e.g., form based code) or modified, to encourage
development of housing that expands market choices.
C.2 Review City priority sites/areas and other locations in the City, and evaluate and prioritize
their potential as locations for encouraging the development of appropriate market -
expanding housing.
C.3 Investigate options outside of the City's purview for promoting the development of affordable
housing, which might involve coordinating with other entities.
The problem of maintaining housing affordability in "high amenity" areas is pervasive
throughout the US. Some people who have'the means to live in desirable areas such as Palm
Desert exist independently of the local economy, which tends to put additional upward pressure
on home prices. To some extent government programs, including some federal programs that
subsidize housing costs, can help with this issue, but these are generally intended to serve
"traditionally disadvantaged" populations (e.g. those with incomes at some percentage below
the area median).
This action item can focus on the need to accommodate a younger and otherwise more diverse
workforce both to meet the needs of existing businesses and in anticipation of the Palm Desert
economy maturing into a broader economic base. The action item will need to include raising
public awareness of the critical connection between housing issues and Palm Desert's potential
to remain economically competitive and achieve goals of economic diversification (this is also
true for other cities in Coachella Valley). Public awareness efforts should directly address
NIMBYism" and related public opinions that frequently arise in discussions related to the
provision of affordable housing.
u NIMBY: Not In My Back Yard.
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Because affordable housing is not only an economic issue but also relates to social services and
overall public health and welfare, strategic actions typically involve a consortium/coalition of
interest groups, including economic developers and other City departments.
Potential specific strategies related to this action item include the following:
• Minimize housing costs associated with regulatory processes where possible, through
expediting approvals, minimizing uncertainty within the approval process, and similar
measures.
• Directly incentivize affordable housing, whether such housing is developed within market
rate projects or separately. Incentives can include increased density in carefully designated
areas (which might include redevelopment areas) and in mixed -use projects.
• Consider adopting accessory dwelling unit (ADU) and other innovative supply -augmenting
programs.
• Target publicly funded infrastructure improvements for places where the new infrastructure
can have the effect of lowering housing development costs.
Action Item Interactions - Highlighting Actions that Support Multiple Objectives
The Table 14 matrix displays the action items listed in a series of rows in the left-hand columns and the
numbers corresponding to those same action items in the series of right-hand columns. The matrix
indicates action items (in the numbered column headings) that potentially interrelate with each of the
action items listed in the rows. The matrix can serve two purposes: 1) to prioritize overall management
of EDSP implementation (by identifying actions that are potentially most "productive" in terms of
supporting multiple objectives), and 2) alert parties involved in anyone particular action item to be
aware of what others might be doing with regard to potentially related action items. A simple way to
interpret this table is that multiple X's in a column indicate that an action is also helping to enhance or
make progress on the other line items that are marked with an X. Thus, the more X's in a column, the
more "productive" a potential action item potentially is across multiple EDSP objectives.
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TABLE 14. MATRIXOF ACTION ITEM I NTERRELATIONSNIPS
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Existing Programs/Activities Relevant to the EDSP
Table 15 below provides a summary of existing City (and partner entity) programs that are relevant to each
EDSP strategy and action item.
TABLE 15. EDSP ELEMENTS AND PROGRAMS
A. Core Marketing Framework. Establish a
promotional framework for Palm Desert, focused
on the concept of Placemaking, and intended to
position Palm Desert as full-time/full-service
community.
A.1 Promote development/placemaking concepts
to Palm Desert residents, focusing on various
aspects of why it is important for the
community to evolve in these ways.
A.2 Design City's promotional system to include, at
a minimum, the following topics: existing and
planned infrastructure capacity, opportunity
sites and development focus areas (see Action
Item I.E.), City incentives, and educational
resources.
A.3 Prepare operational plan for implementing
promotional system.
A.4 Collaborate with CVB and other regional
entities as appropriate on the creation of
marketing initiatives to increase attractiveness
of Coachella Valley as a place to live and work
year-round (especially for targeted populations
such as Millennials / young professionals)
The City of Palm Desert publishes the bi-monthly
BrightSide newsletter, providing residents and
businesses information on local events and City
news. The City also disseminates information
through Facebook and a City mobile app. An existing
program, Palm Desert Welcomes you, could be
expanded to extend to businesses and to generally
extending the City's brand.
Approaches to implementing this task should be
directly tied to the ongoing implementation of the
General Plan update (a continuation of processes
that work integral to the update process itself). This
task might incorporate online platforms such as
Open City Hall.
The Palm Desert Area Chamber of Commerce
(PDACC) promotes the region internally through
maintaining information about the local business
community and through various networking events.
Other region wide events could attract outsiders as
well as locals (see continuation text in Note 1
following this table).
The Greater Palm Springs Convention and Visitors
Bureau (CVB) maintains information that focuses on
providing visitors with insights into certain unique
characteristics and events related to tourism in the
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B. Business Retention/Expansion. To demonstrate
support for the local business community, establish
a Retention/Expansion program.
B.1 Review best practices for Retention/ Expansion
programs in light of overall economic
development framework, evaluate alternative
approaches, and prepare recommendations.
B.2 Prepare operational plan for implementing
program, considering budget and staffing,
coordination with other economic
development functions and strategic priorities,
and similar considerations.
C. Business Attraction. Establish an industry -specific
Business Attraction function appropriate for the
City.
CA Review options by which Palm Desert could
effectively participate in focused, industry -
specific business attraction activities.
C.2 Prepare operational plan for implementing the
Business Attraction program.
D. Visitor Marketing. Continue the City's role in
promoting Palm Desert as a visitor destination.
D.1 Continue coordination with hospitality and
tourism -retail sector spokespersons to confirm
or refine the City's role, and leverage marketing
efforts undertaken by CVB.
D.2 Hold discussions with representatives of
cultural organizations such as The Living Desert
and McCallum Theatre, to gain their
perspective on how the City can support visitor
marketing efforts, broadly and/or in terms of
specific facilities.
following this table).
Other groups contributing to this effort include:
• The Coachella Valley Economic Partnership
(CVEP)
• The City of Palm Desert (basic information
about the community plus a promotional
video, plus sponsorship of key events). See
continuation text included in Note 1
following this table.
The City has an existing cooperative marketing
program with major local destinations and hotels
(to support public relations and marketing efforts).
Palm Desert Economic Development Strategic Plan
IPi
actively market City -owned development
opportunity sites (as well as privately -owned
underperforming properties), focusing on
priority/targeted land uses identified through this
planning process and other city initiatives.
E.1 As part of ongoing efforts to market and
otherwise facilitate the
development/redevelopment of suitable
properties, incorporate priority/targeted land
uses identified through this (EDSP) planning
process.
E.2 Continue efforts to attract additional hotel,
recreational, and entertainment uses,
particularly those that complement existing
uses of these types.
E.3 Support marketing and other efforts related to
building out the remaining development
capacity at Desert Willow.
EA Periodically update feasibility analyses related
to the PKF (hotel) study and other relevant
studies.
F. Commercial Tenant Recruitment. Collaborate with ` tfie t 6' zes Costar and Loop Net (subscription
commercial property owners to recruit targeted real estate databases) to research and promote
tenants.
available site locations.
FA Focus on retail/restaurant/entertainment
tenants.
F.2 Focus on employers in other (other than
tourist -related) industry sectors.
F.3 Investigate options for improving freeway (1-10) The City recently adopted a Freeway Sign
signage to attract additional visitors to Palm Monument Ordinance, which specifies conditions
Desert's retail/restaurant/entertainment for the height, spacing and size of freeway
businesses.
A. Westfield Mall. Encourage/facilitate market
repositioning of Westfield mall (consider including
mixed -use, higher density development on portions
of site), while also considering the potential for
Palm Desert to maintain its strength as a focus of
regional shopping
monument
The City has taken steps to facilitate potential future
enhancements or other changes (e.g., reduced
required parking ratios, built parking structures,
changed allowable building heights).
City Council and staff have met with Westfield
corporate representatives to convey the City's
readiness to support repositioning of the mall as
changes continue to occur in the retail industry.
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A.1 Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
development program with plans and policies
related to Westfield Mall.
A.2 The EDSP should anticipate that, if major
tenants vacate the mall, the City will form a
partnership with mall owners to develop a
master plan to redesign/repurpose all or
portions of the site.
A.3 Draft any recommended special coordinating
actions for Westfield Mall (from preceding Sub -
Action Items) and submit for review and
potential approval.
B. El Paseo District. Facilitate long-term market
strengthening of El Paseo district
B.1 Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
development program with plans and policies
related to the El Paseo district.
B.2 Draft any recommended special coordinating
actions for the El Paseo district (from preceding
task) and submit for review and potential
approval.
C. Highway 111 Corridor / San Pablo. Facilitate
revitalization/redevelopment of Highway 111
corridor
"free Pest" celebrating street art, music, food and
fashion. STREET is held under the stars on The Deck,
the mall's third level parking area.
The El Paseo Business Improvement District,
established by the City of Palm Desert, is the
governing board overseeing the promotion of the
District. The District's Board of Directors is
appointed by the City Council from within the group
of El Paseo merchants.
The City is currently working on an Urban
Revitalization Plan for El Paseo to help improve
walkability and create a sense of place for the
district.
The City of Palm Desert adopted the One Eleven
Development Code (dated January, 2017), which
uses new zoning districts and development
standards to facilitate creation of a "Downtown
Palm Desert." New zoning districts for "Downtown"
and "Downtown Edge" allow for multi -story mixed
use buildings along Highway 111, El Paseo, and San
Pablo Avenue. Two new overlay districts,
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C.1 Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
development program with plans and policies
related to the Highway 111 corridor.
C.2 Draft any recommended special coordinating
actions for the 111 corridor (from preceding
task) and submit for review and potential
approval.
D. CSUSB Area Development Coordination. Facilitate
optimization of development opportunities in the
vicinity of the CSUSB campus.
D.1 Establish a partnership with CSUSB to maximize
development potential,
suitability/compatibility, and timing, for vacant
land areas surrounding the master -planned
property (the master -planned property
includes developed and as yet undeveloped
portions of the campus) shown in the Campus
Master plan 2017 for CSU, Palm Desert
Campus.
D.2 Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
development program with plans and policies
related to the University/Cook area, and
describe the rationale for recommending any
coordinating steps.
D.3 Draft any recommended special coordinating
actions for the University/Cook area (from
Transition," recognize the need to contain higher
densities within areas that are not close to existing
single-family residential."
The University Neighborhood Specific Plan "will
provide detailed design guidance for the
neighborhoods near the universities and the roads
that connect the area internally and with the rest of
the city." The campuses of CSU and UC can be
viewed as a way of providing the City with new
opportunities for educating residents, attracting
new talent to the valley by way of both faculty and
students, and attracting investment related to
university operations.
According to the 2016 Palm Desert General Plan:
The City needs to be certain that planning helps
support the presence of "enough land in the vicinity
of the universities to accommodate new students,
faculty, and university -supportive businesses....
and to ensure that all new development in the area
is interconnected so as to form a cohesive university
area" (page 22).
The 2016 Palm Desert General Plan provides
guidance on how the physical configuration of the
street can change over time, as needed, while
minimizing, in the interim, the "barrier" effect
between the main campus and related areas to the
west of Cook (page 59).
" http://www.cityofpalmdesert.org/our-city/departments/one-el even-dvelopment-code
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Niowunig uunj anu 3uu1111i ,ui icvicw anu
potential approval.
E. Other Key Districts/Neighborhoods. Implement
development/revitalization initiatives for other key
districts/neighborhoods (not mentioned above),
including Desert Willow.
EA Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
development program with plans and policies
related to the other key
districts/neighborhoods, and describe the
rationale for recommending any coordinating
steps. _
E.2 Draft any recommended special coordinating
actions for other key districts/neighborhoods
(from preceding task) and submit for review
and potential approval.
A. City Infrastructure Priorities. Align City
placemaking and other development plans and
strategies with key City -designated infrastructure
elements, existing and particularly planned
elements, as expressed in the City's Capital
Improvement Plans.
A.1 Coordinate San Pablo Street Improvements,
such as those identified in the Proposed Five -
Year Capital Improvement Program (Fiscal Year
2017-2018 to 2021-2022) with the vision in the
2016 Palm Desert General Plan of a revitalized
San Pablo Corridor.
A.2 Establish an inter -departmental committee to
annually review the City's infrastructure
priorities based on the potential economic
development benefits of potential capital
improvements
The City's newly updated General Plan (adopted
November 10, 2016) identifies San Pablo Avenue as
a key area for transformational change to facilitate
the creation of a downtown/city center. The mile -
long corridor connects shopping, restaurants, and
other commercial services at El Paseo and Highway
111 with residential neighborhoods and civic uses
including Palm Desert City Hall, College of the
Desert, Civic Center Park, and eventually, CVLink.
http://www.cityofpa lmdesert.org/our-
city/departments/planning/sa n-pablo-
improvements)
The 2016 Palm Desert General Plan identifies San
Pablo Avenue as a key area for transformational
change to facilitate the creation of a downtown/city
center for Palm Desert.
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A.3 Establish a framework through which
infrastructure development and planning is
coordinated with plans for property
development/revitalization, where economic
development interests apply.
B. Coordination with Regional Broadband Initiatives.
Actively support regional and any other efforts to
expand broadband development, and ensure that
City's policies facilitate links to regional
infrastructure.
B.1 Document regional efforts, current and
planned, to secure and expand broadband
services, and assess level of effort, timing, etc.
B.2 Explore City options, if any, beyond support of
any regional efforts, and recommend options
for consideration, with supporting rationale.
C. Airport / Air Service. Coordinate with regional
partners to expand local air service and otherwise
maximize the potential for the Airport to support
economic development.
CA Explore and identify options currently under
consideration by Palm Springs and elsewhere in
region, for expanding air service or any other .
function that would serve Palm Desert of other
regional economic development interests as
outlined in the EDSP.
C.2 Explore and identify any new, additional
options for expanding the Airport's role in
economic development, and identify potential
partners and other strategic matters.
D. Other Regional Transportation Issues. Coordinate
with regional partners on other major
transportation issues (e.g. investigating the
potential for converting some of the region 's excess
rail capacity to a local light rail system; adopting
policies to maximize advantages to the region of
autonomous vehicles; etc.)
The City of Palm Springs, which operates the Palm
Springs International Airport, completed the Palm
Springs International Airport Master Plan Update in
September of 2015, which deals primarily with
various and enhancements to the Airport's
operational capabilities.
The following material is taken directly from the
Riverside County Transportation Commission
website,13 and summarizes the status of plans to: 1)
evaluate the potential of future commuter rail
service to the Coachella Valley, and 2) bring
additional Amtrak intercity rail service to the
Coachella Valley from Los Angeles (see full text in
Note 2 following this table).
11 htto://rctcdev.info/rail/2005-commuter-rail-feasibility-studv: htto://rctcdev.info/raii/coachella-vallev-
rail-service accessed Nov. 1, 2017.
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D.1 Monitor the progress of regional plans and
make periodic recommendations on how to
respond to progress, changes of plans, etc., in
context of the EDSP.
D.2 Provide input as part of regional planning for
transportation, with a focus on how best to
align with EDSP strategic objectives.
A. Assess Workforce Development Needs and Align
with Business Attraction Efforts. Coordinate with
CVEP, local industry, and workforce training
providers to establish and maintain alignment of
industry needs and the community/regional
workforce
A.1 Conduct interviews or establish other system
for obtaining input from industry
representatives, to identify gaps in skills that
they are facing.
A.2 Meet with CVEP and training providers to
assess and document their perceptions of
alignment of industry needs with training
programs and facilities that are available.
A.3 Through interviews or other input from
industry representative and workforce training
providers, inventory issues directly or indirectly
related to attracting and accommodating the
required workforce.
A.4 Actively integrate industry attraction efforts
with local education/workforce development
systems. (See Action Item IV.A.)
B. Leverage Presence of Higher Educational
Institutions. Actively collaborate with COD, CSUSB,
UCR on future academic and expansion plans
(potentially including support on issues such as
housing, transportation, etc.).
3.1 Compile expansion plans of institutions, assess
how these relate to one another and how they
potentially support EDSP objectives.
CVEP is involved in workforce development through
the Coachella Valley Regional Plan for College and
Career Readiness a partnership between industry,
economic development, and education
professionals, along with students throughout the
Coachella Valley, with the overall goal of aligning
programs and students with economic
opportunities in the Valley.
The City of Palm Desert, through creation of the
University Neighborhood Specific Plan, provides
both direct and indirect support to CSUSB's
expansion plans. This Plan can be further
coordinated through the Economic Development
Strategic Plan. The City is currently in the process of
developing an MOU with CSUSB to actively support
the expansion plan.
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B.2 Investigate what direct support is needed by
these institutions, and what options are
available to the City to provide these kinds of
support.
B.3 Investigate what types of indirect support (e.g.
Specific Plan coordination) would help the
institutions implement their expansion plans.
B.4 Advocate for increased funding for local
colleges,
A number of facilities and organizations provide
support for entrepreneurs in the Coachella Valley,
including the following:
• The CVEP Business Services Center assists
start-up and established operations.
• The Palm Springs iHub incubator provides
programs, physical space, and incentives to
start-up businesses focused on clean
technology and renewable energy.
• The Accelerator Campus, located within the
Foreign Trade Zone at the Palm Springs
International Airport, provides companies
C. Entrepreneurial Development. Facilitate with access to the business support network
entrepreneurial attraction/development of the iHub after they begin production and
earn revenues.
• The Coachella Valley Women's Business
Center (CVWBC) is a cooperative program
between the Inland Empire Center for
Entrepreneurship (IECE) and the US Small
Business Administration (SBA)
• SCORE is a nonprofit organization dedicated
to helping small businesses startup, growth
and achieve their goals through education
and mentorship.
See full text relating to these programs in Note 3
following this table.
CA Establish coordination protocols between the
City and existing programs in the region.
C.2 Investigate the potential for Palm Desert to
become the second Coachella Valley location
for the Accelerator Campus currently located in
Palm Springs.
C.3 Promote development of co -working facilities
in Palm Desert.
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A. Placemaking. Tie actions on behalf of targeted
development projects and special events to
benefits they offer to the concept of
"placemaking."
A.1 Establish criteria related to placemaking and
incorporate into processes by which priorities
for promoting and otherwise encouraging
specific development projects are determined.
A.2 Specifically incorporate placemaking into
support for, and planning/coordination efforts
related to, special events.
B. Millennial Attraction. Encourage development of
new businesses/events attractive to young adults
(i.e., Millennials)
B.1 Establish a system for investigating options and
use that system to develop a list of
businesses/events considered to be attractive
to young adults.
B.2 Review priority sites/areas and other locations
in the City, and evaluate and prioritize their
suitability as locations for businesses/events
attractive to young adults.
B.3 Establish policies aligned with promoting the
development of businesses/events attractive to
young adults.
C. Facilitate Expanded Housing Options. Use City's
ordinances, policies, and other resources to expand
opportunities for development of housing that is
affordable to a range of income levels and that
expands the range of housing prices generally in
the Palm Desert market.
CA Review City development ordinances/policies
to identify alternative strategies by which
ordinances could be used, as given or modified,
to encourage development of housing that
expands market choices.
Existing projects relevant to this action item include
Desert Willow, San Pablo, El Paseo, Highway 111,
and the University/Cook area. Relevant events
include El Paseo Fashion Week, Palm Desert Food &
Wine, STREET and First Weekend. See Task LA for
discussion of regional events that could potentially
be leveraged within the framework of this action
item.
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C.2 Review City priority sites/areas and other
locations in the City, and evaluate and prioritize
their potential as locations for encouraging the
development of appropriate market -expanding
housing.
C.3 Investigate options outside of the City's
purview for promoting the development of
affordable housing, which might involve
coordinating with other entities.
Note 1. Full text for Existing Initiatives/Programs, for 1.A.4
The Coachella Valley Housing Coalition (CVHC) is
a nonprofit affordable housing development
organization involved in constructing and operating
affordable housing, in combination with relevant
resident services programs.14 This type of housing
typically involves some form of public subsidy, and
does not directly address market -related challenges
of affordability.
The Palm Desert Area Chamber of Commerce (PDACC) promotes the region internally through maintaining
information about the local business community and through various networking events (e.g., the Profit
Connection Leads lunches). Other region wide events that could attract outsiders as well as locals include the
following (and the Chamber also helps coordinate a number of city -specific events):
• Annual Golf Tournament
• Palm Desert Golf Cart Parade
• Live, Love and Play Business Showcase
The Greater Palm Springs Convention and Visitors Bureau (CVB) maintains information that focuses on providing
visitors with insights into certain unique characteristics and events related to tourism in the region (e.g. Modernism
Week), along with facts to enhance visitors' trips to the region, for the region and city by city, and much of this
information is also useful to residents. Important CVB initiatives include:
• Preparation of the Destination Development Plan
• Sales & tourism missions
• Participation in Visit CA (including international marketing component)
The Coachella Valley Economic Partnership (CVEP) currently hosts a major informational/marketing event, the
annual Greater Palm Springs Economic Summit. Other programs that help promote the region primarily to an
internal audience include the Renewable Energy Roundtable and forums for small business and lenders/investors.
CVEP also maintains information about the region on its website and tools, specifically GIS, to help interested
parties access and make use of data.
The City of Palm Desert maintains basic information about the community plus a promotional video (Economic
Development webpage) that summarizes key attributes of the community including a number of its unique
qualities, and emphasizes the City's strategic approach to business friendliness.
The City of Palm Desert is a major sponsor of Fashion Week El Paseo —the largest consumer fashion show on the
West Coast, held at The Gardens on El Paseo in Palm Desert. The City of Palm Desert also sponsors the Palm Desert
14 http://www.cvhc.org
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Food & Wine Festival held at the same time as Fashion Week at The Gardens on El Paseo.
Note 2. Full text for Existing Initiatives/Programs, For III.D
The following material is taken directly from the Riverside County Transportation Commission website, and
summarizes the status of plans to: 1) evaluate the potential of future commuter rail service to the Coachella Valley,
and 2) bring additional Amtrak intercity rail service to the Coachella Valley from Los Angeles.
Commuter rail. The [2005] Rail Feasibility Study evaluated the potential of future commuter and intra-county rail
lines in Riverside County [included in the study was a route from Indio to Riverside and points west] and
recommended further evaluation of [only] routes to San Jacinto/Hemet and Murrieta/Temecula. [Subsequent
studies have been conducted involving these routes.] Feasibility was determined by examining operations,
ridership, and costs, including the physical, operational, and financial feasibility of each major capital investment
and its operating subsidy projections.
Additional Amtrak service. In July 2016, the Riverside County Transportation Commission (RCTC), in coordination
with Caltrans and the Federal Railroad Administration (FRA), prepared and completed the Coachella Valley — San
Gorgonio Pass Rail Corridor Service Study Alternatives Analysis Final Report, which evaluated a reasonable range of
alternatives for a new intercity rail service between Los Angeles and Indio. Work is underway to prepare a Program
Environmental Impact Statement (EIS)/Program Environmental Impact Report (EIR) document consistent with
federal and state requirements.... After completing the Draft EIS/EIR, a Service Development Plan will be
prepared to conceptualize how the service would operate and what infrastructure improvements would be needed
to accommodate the new intercity passenger rail service.
Note 3. Full text for Existing Initiatives/Programs, For IV.0
A number of facilities and organizations provide support for entrepreneurs in the Coachella Valley, including the
following:
The CVEP Business Services Center assists start-up and established operations through the following service
categories:
• Loan packaging
• Equity investment preparation
• Business plan development
• Marketing plan development
• Geographic information systems (GIS), combining economic and demographic data with geographical data.
• Free monthly business development discussion series.
The Palm Springs Nub incubator provides programs, physical space, and incentives to start-up businesses focused
on clean technology and renewable energy. Businesses located there are engaged in solar energy, wind power,
geothermal, and smart grid technologies, as well as green building materials and techniques, biofuels/biomaterials,
water filtration, and conservation and storage technologies. !Hub -supported businesses can operate at other
locations besides the Palm Springs Nub, including the Palm Springs Accelerator Campus, or off -site.
The Accelerator Campus, located within the Foreign Trade Zone at the Palm Springs International Airport, provides
companies with access to the business support network of the iHub after they begin production and earn revenues.
The Campus now also includes the Health & Medical Innovation Center, for firms focused on medical technology as
well as new concepts in the delivery of healthcare services. A future Nub is planned for the eastern Coachella
Valley with an emphasis on advanced manufacturing.
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The Coachella Valley Women's Business Center (CVWBC) is a cooperative program between the Inland Empire
Center for Entrepreneurship (IECE) and the US Small Business Administration (SBA). CVWBC's It's Your Time
program focuses on training, counseling, mentoring and supporting female entrepreneurs.
SCORE is a nonprofit organization dedicated to helping small businesses startup, growth and achieve their goals
through education and mentorship. SCORE's regional offices for the Coachella Valley are located in Palm Desert.
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Implementation 7imeframes
I able 16 shows suggested tanefrarnes for starting and completing each Sub -Action Item.
TABLE 16. IMPLEMENTATION TIMEFRAMES
A. Core Marketing Framework. Establish a
promotional framework for Palm Desert, focused
on the concept of Placemaking, intended to
position Palm Desert as full-time/full-service
community.
A.1 Promote development/placemaking concepts to
Palm Desert residents, focusing on various
aspects of why it is important for the community Beginning of
to evolve. Year 2
A.2 Design City's promotional system to include, at a
minimum, the following topics: existing and
planned infrastructure capacity, opportunity
sites and development focus areas (see Action
Item I.E.), City incentives, and educational
resources. Where practical, make use of GIS
"story maps" within the system.
A.3 Prepare operational plan for implementing
promotional system, considering budget and
staffing, coordination with other entities,
priorities, and similar considerations.
A.4 Collaborate with CVB and other regional entities
as appropriate on the creation of marketing
initiatives to increase attractiveness of Coachella
Valley as a place to live and work year-round
(especially for targeted populations such as
Millennials / young professionals).
B. Business Retention/Expansion. To demonstrate
support for the local business community,
eqLablish a R&Wntion/Expansion program.
6.1 Review best practices for Retention/ Expansion
programs in light of overall economic
development framework, evaluate alternative
Beginning of
Year 1
Middle of
Year 1
Beginning of
Year 1
Middle of
approaches, and prepare recommendations. Year 1
B.2 Prepare operational plan for implementing
program, considering budget and staffing, Middle of
coordination with other economic development Year 1
Ongoing
Middle of
Year 1
Beginning
of Year 2
Ongoing
Beginning
of Year 2
Beginning
of Year 2
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C. Business Attraction. Establish an industry-
specific Business Attraction function appropriate
for the City.
CA Review options by which Palm Desert could
effectively participate in focused, industry -
specific business attraction activities, in the
context of the City's and other regional entities'
other promotion/marketing efforts and in
recognition of typical/best economic
development practices, and prepare
Middle of Beginning
recommendations.
Year 1 of Year 2
C.2 Prepare operational plan for implementing the
Business Attraction program, considering
budget and (if required) staffing, coordination
with other economic development functions
and strategic priorities, and similar
Beginning of Middle of
considerations.
Year 2 Year 2
D. Visitor Marketing. Continue the City's role in
promoting Palm Desert as a visitor destination.
Ongoing, existing program
D.1 Continue coordination with hospitality and
tourism -retail sector spokespersons to confirm
or refine the City's role, which would include
holding discussions with representatives of
organizations such as CVB, trade groups, and
business districts. Also investigate specific
measures by which the City can best leverage
Beginning of Middle of
marketing efforts undertaken by CVB.
Year 2 Year 2
D.2 Hold discussions with representatives of cultural
organizations such as The Living Desert and
McCallum Theatre, to gain their perspective on
how the City can support visitor marketing
efforts, broadly and/or in terms of specific
Beginning of Middle of
facilities.
Year Year
E. Marketing of Key Development Sites. Continue
to actively market City -owned development
opportunity sites (as well as privately -owned
underperforming properties), focusing on
priority/targeted land uses identified through
this planning process and other City initiatives. Ongoing, existing program
E.1 As part of ongoing efforts to market and Beginning of Middle of
otherwise facilitate the Year 2 Year 2
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properties, incorporate priority/targeted land
uses identified through this (EDSP) planning
process.
E.2 Continue efforts to attract additional hotel,
recreational, and entertainment uses,
particularly those that complement existing uses
of these types, and specifically recognizing the
need for multiple hotels within the El Paseo Beginning of
area.
Year 2
Ongoing
E.3 Support marketing and other efforts related to
building out the remaining development
Beginning of
capacity at Desert Willow.
Year 2
As needed
E.4 Periodically update feasibility analyses related
to the PKF (hotel) study and other relevant
studies.
(As needed)
Ongoing
F. Commercial Tenant Recruitment. Collaborate
with commercial property owners to recruit
targeted tenants.
Ongoing, exis jng program;,
F.1 Focus on retail/restaurant/entertainment
Middle of
)
tenants.
Year 1
Ongoing
F.2 Focus on employers in other (other than tourist-
Middle of
related) industry sectors.
Year 1
Ongoing
F.3 Investigate options for improving freeway (1-10)
signage to attract additional visitors to Palm
Desert's retail/restaurant/entertainment
Beginning of
Middle of
businesses.
Year 2
Year 2
A. Westfield Mall. Encourage/facilitate market
repositioning of Westfield mall (consider
including mixed -use, higher density
development on portions of site), while also
considering the potential for Palm Desert to
maintain its strength as a focus of regional
shopping.
A.1 Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
development program with plans and policies
related to Westfield Mall.
A.2 The EDSP should anticipate that, if major
tenants vacate the mall, the City will form a
partnership with mall owners to develop a
Timing to be determined based on
direction of mall's ownershi-t
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A.3 Draft any recommended special coordinating
actions for Westfield Mall (from preceding Sub -
Action Items) and submit for review and
potential approval.
B. El Paseo District. Facilitate long-term market
strengthening of El Paseo District.
B.1 Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
development program with plans and policies
Beginning of Middle of
related to the El Paseo district.
Year 1 Year 1
B.2 Draft any recommended special coordinating
actions for the El Paseo district (from preceding
task) and submit for review and potential
Middle of Beginning
approval.
Year 1 of Year 2
C. Highway 111 Corridor / San Pablo. Facilitate
revitalization of Highway 111 Corridor.
CA Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
development program with plans and policies
Beginning of Middle of
related to the Highway 111 corridor.
Year 1 Year 1
C.2 Draft any recommended special coordinating
actions for the 111 corridor (from preceding
task) and submit for review and potential
Middle of Beginning
approval.
Year ofYear 2
D. CSUSB Area Development Coordination.
Facilitate optimization of development
opportunities in the Vicinity of the CSUSB
campus.
D.1 Establish a partnership with CSUSB to maximize
development potential, suitability/compatibility,
and timing, forvacant land areas surrounding
the master -planned property (the master -
planned property includes developed and as yet
undeveloped portions of the campus) shown in
the Campus Master plan 2017 for CSU, Palm
Desert Campus.
D.2 Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
Ongoing, existing program
Middle of Middle of
Year 1 Year 2
development program with plans and policies Beginning of Middle of
related to the University/Cook area, and Year 2 Year 3
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describe the rationale for recommending any
coordinating steps.
D.3 Draft any recommended special coordinating
actions for the University/Cook area (from
preceding task) and submit for review and Beginning of Middle of
potential approval. Year 2 I Year 2
E. Other Key Districts/Neighborhoods. Imple
development/revitalization initiatives for other
key districts/neighborhoods (not mentioned
above), including Desert Willow. _
E.1 Identify the essential coordinating elements for
aligning the EDSP plus the overall economic
development program with plans and policies
related to the other key
districts/neighborhoods, and describe the
rationale for recommending any coordinating
steps.
Ongoing, existing program
Beginning of Beginning
Year 1 of Year 2
E.2 Draft any recommended special coordinating
actions for other key districts/neighborhoods
(from preceding task) and submit for review and Beginning of I Middle of
A. City Infrastructure Priorities. Align City
placemaking and other development plans and;
strategies with key City -designated
infrastructure elements, existing and
particularly planned improvements, as
expressed in the City's Capital Improvement
Plans.
A.1 Coordinate San Pablo Street Improvements,
such as those identified in the Proposed Five -
Year 2 1 Year 2
Ongoing, existing program
Year Capital Improvement Program (Fiscal Year
2017-2018 to 2021-2022) with the vision in the
2016 Palm Desert General Plan of a revitalized Beginning of
San Pablo Corridor.
A.2 Establish an inter -departmental committee to
annually review the City's infrastructure
priorities based on the potential economic
development benefits of potential capital
improvements
A.3 Establish a framework through which
Year Asneeded
Beginning of
Year As needed
infrastructure development and planning is Beginning of Middle of
coordinated with plans for property Year 2 Year 2
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development/revitalization, where economic
development interests apply.
B. Coordination with Regional Broadband
Initiatives. Actively support regional and any
other efforts to expand broadband
development, and ensure that City's policies
facilitate links to regionll infrastruc;We,
B.1 Document regional efforts, current and planned,
to secure and expand broadband services,
assess level of effort, timing, etc.
B.2 Explore City options, if any, beyond support of
any regional efforts, and recommend options for
consideration, with supporting rationale.
C. Airport / Air Service. Coordinate with regional
partners to expand local air service and
otherwise maximize the potential for the Palm
Springs international Airport to support
economic development.
CA Explore and identify options currently under
consideration by Palm Springs and elsewhere in
region, for expanding air service or any other
function that would serve Palm Desert of other
regional economic development interests as
outlined in the EDSP.
C.2 Explore and identify any new, additional options
for expanding the Airport's role in economic
development, and if options are found, identify
potential partners and other strategic matters
that would need to be considered.
D. Other Regional Transportation Issues.
Coordinate with regional partners on other
major transportation issues (e.g. investigating
the potential for converting some of the region's
excess rail capacity to a local light rail system;
adopting policies to maximize advantages to the
region of autonomous vehicles; etc.).
D.1 Monitor the progress of regional plans and
make periodic recommendations on how to
respond to progress, changes of plans, etc., in
context of the EDSP.
D.2 Provide input as part of regional planning for
transportation, with a focus on how best to align
with EDSP strategic objectives. Also, monitor
Beginning of
Year 1 Ongoing
Middle of
Year 1 Ongoing
Lower -priority strategy; timing TBD
Lower -priority strategy; timing TBD
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"big picture" trends, such as autonomous
vehicles, and see that these kinds of trends are
considered as part of
A. Assess Workforce Development Needs and
Align with Business Attraction Efforts.
Coordinate with CVEP, local industry, and
workforce training providers to establish and
maintain alignment of industry needs and the
community/regional workforce.
Ongoing, exis ing program
A.1 Conduct interviews or establish other system for
obtaining input from industry representatives,
to identify gaps in skills that they are facing,
through difficulty in recruiting or finding people
Beginning of
whose skills are not fully matching their needs.
Year 2 Ongoing
A.2 Meet with CVEP and training providers to assess
and document their perceptions of alignment of
industry needs with training programs and
Middle of Beginning
facilities that are available.
Year 2 of Year 3
A.3 Through interviews or other input from industry
representative and workforce training providers,
inventory issues directly or indirectly related to
attracting and accommodating the required
workforce, including barriers to recruitment and
the capacity of the community to support the
range of workers required to sustain economic
Beginning of Middle of
growth.
Year 2 Year 2
A.4 Actively integrate industry attraction efforts
with local education/workforce development
Middle of
systems. (See Action Item IV.A).
Year 2 Ongoing
B. Leverage Presence of Higher Educational
Institutions. Actively collaborate with COD,
CSUSB, UCR on future academic and expansion
plans (potentially including support on issues
such as housing, transportation, etc.).
Ongoing, exis•ing program
B.1 Compile expansion plans of institutions, assess
how these relate to one another and how they
Beginning of Middle of
potentially support EDSP objectives.
Year 2 Year 2
B.2 Investigate what direct support is needed by
these institutions, and what options are
available to the City to provide these kinds of
support, which might include coordinating with
Middle of Beginning
other entities in the region.
Year 2 of Year 3
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Specific Plan coordination) would help the
institutions implement their expansion plans,
and what options are available to the City to
provide these kinds of support.
BA Advocate for increased funding for local
colleges.
Middle of
Beginning
Year 2
of Year 3
Beginning of
Year 1
Ongoing
C. Entrepreneurial Development. Facilitate
entrepreneurial attraction/development.
C.1 Establish coordination protocols between the Beginning of Middle of
City and existing programs in the region. Year 1 Year'
C.2 Investigate the potential for Palm Desert to
become the second Coachella Valley location for
the Accelerator Campus currently located in Beginning of
Palm Springs.
Year 1
C.3 Promote development of co -working facilities in
Palm Desert, which can bridge the gap for
entrepreneurs between formal office space and Beginning of
working from home. Year 2
A. Placemaking. Tie actions on behalf of targeted
development projects and special events to
benefits they offer to the concept of
Beginning
of Year 2
"placemaking." Ongoing, existing program
A.1 Establish criteria related to placemaking and
incorporate into processes by which priorities
for promoting and otherwise encouraging
specific development projects are determined.
A.2 Specifically incorporate placemaking into
support for, and planning/coordination efforts
related to, special events.
B. Millennial Attraction. Encourage development
Beginning of Middle of
Year 2 1 Year 2
Beginning of I
Year Ongoing
of new businesses/events attractive to young
adults (i.e., Millennials). Lower-prioriU strategy; timing TBD
B.1 Establish a system for investigating options and
use that system, which may include creative
outreach efforts, to develop a list of
businesses/events considered to be attractive to
young adults, and which could include existing
establishments or business types as well as
those not currently present in Palm Desert.
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B.2 Review priority sites/areas and other locations
in the City, and evaluate and prioritize their
suitability as locations for businesses/events
attractive to young adults.
B.3 Establish policies aligned with promoting the
development of businesses/events attractive to
young adults, including incentives or other
methods for encouraging, recommended
practices for such businesses (e.g. hours of
operation), adjustments to codes, and similar
considerations.
C. Facilitate Expanded Housing Options. Use City's
ordinances, policies, and other resources to
expand opportunities for development of
housing that is affordable to a range of income
levels. Lower-priorito strategy; timing TBD
CA Review City development ordinances/policies to
identify alternative strategies by which
ordinances could be used, as given (e.g., form
based code) or modified, to encourage
development of housing that expands market
choices.
C.2 Review City priority sites/areas and other
locations in the City, and evaluate and prioritize
their potential as locations for encouraging the
development of appropriate market -expanding
housing.
C.3 Investigate options outside of the City's purview
for promoting the development of affordable
housing, which might involve coordinating with
other entities.
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