HomeMy WebLinkAboutHotel-Signature Evnts Cmte - 06-08-201503
PALM DESERT
APPROVED MINUTES
PALM DESERT HOTEL AND SIGNATURE EVENTS COMMITTEE
ADJOURNED MEETING
Monday, June 8, 2015 — 4 p.m.
North Wing Conference Room — Palm Desert Civic Center
73510 Fred Waring Drive, Palm Desert, CA 92260
I. CALL TO ORDER
Ralph Scatena called the meeting to order at 4:00 p.m.
II. ROLL CALL
Members Present: Members Absent:
Ralph Scatena None
Jan Harnik
Marilyn Dyer
Arnold Kirschenbaum
Robert Spiegel
Scott White
Staff /Others Present:
John Wohlmuth, City Manager
Rudy Acosta, Assistant City Manager
Martin Alvarez, Director of Economic Development
Lauri Aylaian, Director of Community Development
Donna Gomez, Tourism & Marketing Manager
Ruth Ann Moore, Economic Development Manager
David Hermann, Management Analyst
Brian Grantham and Associate
Robin McCormick, Recording Secretary
III. ORAL COMMUNICATIONS
None
APPROVED MINUTES
ADJOURNED PALM DESERT HOTEL & SIGNATURE EVENTS
COMMITTEE MEETING June 8, 2015
IV. CONSENT CALENDAR
A. MINUTES OF THE SPECIAL MEETING OF MARCH 4, 2015
Robert Spiegel moved, by Minute Motion, to approve the minutes of the March 4,
2015, meeting as presented. Motion was seconded by Scott White and carried by 5-0-1
(AYES: Scatena, Harnik, White, Dyer and Spiegel; NOES: None; ABSTAIN:
Kirschenbaum).
V. CONSENT ITEMS HELD OVER
None
VI. NEW BUSINESS
A. REVIEW OF SPONSORSHIP FOR 2016 TOUCH MUDDER EVENT
Scott White introduced Brian Grantham, who has been meeting with
Tough Mudder representatives regarding sponsoring a Tough Mudder
event in Palm Desert. Mr. Grantham has reviewed several locations with
Tough Mudder and they feel the Classic Club location works well and is
centrally located. Tout/ Mudder and the Classic Club have agreed that
an event on October 8t and 9"', 2016 is possible and are negotiating the
terms, but Tough Mudder is looking for a shared contribution from the City,
as well as from CVB.
Mr. Grantham explained details of a typical Tough Mudder event. Events
held at other locations have attracted 12 to 22 thousand participants with
another ten to fifteen thousand spectators for this two day event,
generating several thousand room nights. The participants average in age
from 22 to 40 years old and have an approximate income of $80,000
annually. The average Site Fee that Tough Mudder pays is $20,000 to
$30,000 to secure a location. The Berger Foundation (Classic Club) is
asking for a Site Fee of $100,000 due to the amount of work that would
need to be done in and around the golf course to prepare the event and to
restore the golf course back to its original condition.
There was much discussion of other events that could be held prior to and
during the weekend long event with possible pre and post -parties held at
other locations to boost revenue. This event, after the first year, would be
a five year commitment.
Mr. White added that this was a preliminary introduction to this committee
to see if there is interest or not. There are many details that would need to
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APPROVED MINUTES
ADJOURNED PALM DESERT HOTEL & SIGNATURE EVENTS
COMMITTEE MEETING June 8, 2015
be discussed once there is a mutual agreement to hold the event at the
Classic Club with City and CVB sponsorship.
Mr. White suggested that there be a list compiled of questions and in kind
items. Mr. Alvarez, Ms. Gomez and Ms. Moore will work together with Mr.
White to gather the questions and prepare a list that can be discussed
with representatives of Tough Mudder in the next month or so.
Mr. Wohlmuth asked when the contribution would be due. Mr. White
thought the City's portion of the sponsorship could be given after the CVB
and Tough Mudder so it would fall in the later part of the FY 15/16 budget.
Mr. Wohlmuth added that the City is building two homes for the Wounded
Warrior's project and asked if Tough Mudder would participate in the
construction of the homes. Mr. Grantham said he could not answer for
them but would certainly ask and will get back with Mr. Wohlmuth.
Ms. Harnik asked how many events does Tough Mudder put on yearly?
Mr. Grantham explained the Tough Mudder has over 60 events, with
about 2 million participants in the last four years and approximately 40
global events. Mr. Bagato added that there are only two events yearly in
Northern California and two events in Southern California.
Mr. Grantham feels Tough Mudder will want to move forward with an
agreement in the next two to three months in order to produce an event in
2016 otherwise it would not occur until 2017. Mr. Grantham added that
Berger Foundation has said they are ready to move forward and finalize
more of the details on their portion of the $100,000 site fee, in -kind
contributions, etc.
Mr. Alvarez asked the Committee their thoughts or comments on this
event or a recommendation to move forward. Mr. Spiegel, Ms. Dyer and
Ms. Harnik all commented that it was a great idea and perfect time of year.
Mr. White feels it has the potential to bring thousands of people here for
this event and future events as well.
Robert Spiegel moved, by Minute Motion, to proceed with investigating the
opportunity to participate in sponsoring the Tough Mudder event. Motion was seconded
by Ralph Scatena and carried by 6-0 vote (AYES: Scatena, Hamik, White, Dyer,
Kirschenbaum and Spiegel; NOES: None).
VI1. CONTINUED BUSINESS
None
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APPROVED MINUTES
ADJOURNED PALM DESERT HOTEL & SIGNATURE EVENTS
COMMITTEE MEETING June 8, 2015
VIII. OLD BUSINESS
A. UPDATE ON TOT BALLOT MEASURE PROPOSAL BY LEW EDWARDS
GROUP — VERBAL UPDATE BY RUTH ANN MOORE
Ruth Ann Moore explained that due to the lack of a quorum the last few
meetings there was not an opportunity to bring the proposal to the
committee. Since timing was short, the first phase of the proposal was
presented to Council outlining the background research and formulation of
education and an opinion on the issue. Council approved the expenditure
at their meeting on April 23, 2015.
She further explained that the Lew Edwards Group is an expert consultant
in ballot measure preparation, education and working with city
governments. Staff has been working closely with them and the first
phase is an internet and/or phone survey with the residents. The surveyor
starts out asking how the resident feels about city government, do they
see things that we could do better, they get general background
information about the resident, and then they begin the conversation about
the TOT number. By doing the survey, the City is trying to find out what
areas are important to the residents. The survey also covered other
questions regarding General Plan updating and zoning on Highway 111, if
the drought was an issue and also the residents' opinions of the CV link.
Ms. Moore stated that the survey was complete and waiting for the report
to be finished.
John Wohlmuth reported that he received verbal survey information from
the Lew Edwards Group. The report will be written up next week and a
conference call will be scheduled to discuss the results. Also, he is trying
to schedule an in person meeting with Catherine Lew and Council, which
may happen the week of July 9"'.
He read some of the results which included:
• +/- 70% rate of success to increase the TOT
• 90% of the residents surveyed wanted high level of service in
Palm Desert
• 78% indicated Palm Desert is going in the right direction
• Public safety, protection of City's financial stability, streets and
roads, water conservation
• Marketing Palm Desert was not an issue at all
• Bike Path (CV Link) concerns
• Golfs future in the valley
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APPROVED MINUTES
ADJOURNED PALM DESERT HOTEL & SIGNATURE EVENTS
COMMITTEE MEETING June 8, 2015
• Opposition of further Highway 111 development
• 46% undergrounding was important, 56% indicated it was not
important
Mr. Wohlmuth continued to explain that this was part one of a three part
project if we decide to go forward. Part two would be for Lew Edwards to
assist in drafting the language of the ordinance to increase the TOT and
part three would be the public education and outreach. There are some
options/restrictions on spending money on this in order to educate the
public.
B. REVIEW OF REVISED EL PASEO FLEX EVENT CONCEPT — MARTIN
ALVAREZ
Martin Alvarez shared an updated concept drawing combining options 1
and 3 from the three previous concepts presented. This concept is the
most flexible and simplest one to achieve without major impact on
drainage, infrastructure and engineering costs.
Mr. Spiegel asked if this event area would be for Fashion Week, which Mr.
Alvarez responded that the space would be for other potential events as it
is not wide enough for the Fashion Week tents. The Food & Wine event
may eventually work in this area.
Mr. Scatena asked if there were other signature type events that the City
has approached for this area. Mr. Alvarez said staff has talked about a
few other events, First Weekend being one of them. Also, the Gardens is
very excited to have the event center and staff will be exploring other
possibilities. There will be several things to consider with this space; how
often are events held, types of events, hours and cost of use of space.
Arnold Kirschenbaum inquired on the approximate costs of a project like
this and Mr. Alvarez said he does not have costs at this time, but it would
be the next step if the decision is made to move forward. Mr. Wohlmuth
added that there are may be some bond proceeds remaining that may
could utilized.
Mr. Alvarez asked the committee if they would like to see this project
move forward. Mr. Wohlmuth said that staff would talk with the El Paseo
APPROVED MINUTES
ADJOURNED PALM DESERT HOTEL & SIGNATURE EVENTS
COMMITTEE MEETING June 8, 2015
merchants; get cost estimates and funding options to bring back to the
committee for further discussion and review. The committee as a whole
feels this would be a great venue.
Ralph Scatena moved, by Minute Motion, to recommend to the City Council
proceeding with the El Paseo Flex event center. Motion was seconded by Scott White
and carried by 6-0 vote. (AYES: Scatena, Harnik, White, Dyer, Kirschenbaum and
Spiegel; NOES: None.)
IX. REPORTS FROM CITY COUNCIL LIAISONS
None
X. REPORTS AND REMARKS
A. Chairman
None
B. Committee Members
None
C. Staff
None
XI. INFORMATIONAL ITEMS
None
XII. NEXT MEETING DATE —August 5, 2015 at 4:00 p.m.
With Committee concurrence, there will be a Special Committee Meeting held Monday,
July 6, 2015 at 4:00 p.m.
XIII. ADJOURNMENT
With Committee concurrence, the meeting was adjourned at 5:04 p.m.
Robin McCormick, Recording Secretary
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