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CALM DESERT
APPROVED MINUTES
PALM DESERT HOTEL AND SIGNATURE EVENTS COMMITTEE
SPECIAL MEETING
Wednesday, November 5, 2014 — 4 p.m.
North Wing Conference Room — Palm Desert Civic Center
73510 Fred Waring Drive, Palm Desert, CA 92260
CALL TO ORDER
Ralph Scatena called the meeting to order at 4:00 p.m.
II. ROLL CALL
Members Present:
Ralph Scatena
Jan Harnik
Arnold Kirschenbaum
Robert Spiegel
Members Absent:
Jeff Kokinacis
Marilyn Dyer
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
Robin McCormick, Recording Secretary
III. ORAL COMMUNICATIONS
None.
IV. CONSENT CALENDAR
A. MINUTES OF THE REGULAR MEETING OF OCTOBER 1, 2014
Jan Harnik moved, by Minute Motion, to approve the minutes of the October 1,
2014, meeting as presented. Motion was seconded by Robert Spiegel and carried by 4-
0-3 (AYES: Scatena, Harnik, Kirshcenbaum and Spiegel; NOES: None; ABSENT:
Kokinacis, Dyer, White).
APPROVED MINUTES
SPECIAL PALM DESERT HOTEL & SIGNATURE EVENTS
COMMITTEE MEETING November 5, 2014
V. CONSENT ITEMS HELD OVER
None.
VI. NEW BUSINESS
A. EL PASEO HOTEL PROJECT — VERBAL UPDATE BY RUTH ANN MOORE
Ruth Ann Moore showed the committee preliminary drawings of the El
Paseo Hotel, located on the northeast corner of Larkspur Lane and
Shadow Mountain Drive, consisting of 154 rooms, with approximately 211
space underground parking structure, restaurants, pool and spa, a
relaxation pool, bar and grill, and meeting rooms. Ms. Moore shared that
this hotel is being approved by Marriott Corporation as an Autograph
Collection hotel. Approval should be finalized next week. The sales
agreement will be signed next week, and then escrow will open. After that
they have a six month window to finish up their due diligence and close
escrow. The approximate opening date is targeted for December 2016 or
January 2017.
Ms. Moore explained that E135 money is being used to help finance this
project. She gave an overview of how the program works.
Mr. Spiegel asked about Fashion Week since the hotel site has been used
for the event. Ms. Moore explained there have been discussions with
Palm Springs Life regarding other locations and staff is working on options
for review.
B. DESERT WILLOW HOTEL LOT PADS — VERBAL UPDATE BY MARTIN
ALVAREZ
Mr. Alvarez gave the committee an update on lots A - E at Desert Willow
Golf Resort. The Successor Agency (former Redevelopment Agency) has
entered into an Exclusive Negotiating Agreement with Quiksilver to
develop lots C & D with a 300-400 room hotel, wave pool, skate park, and
amphitheater. Lot E will be developed as retail including their flagship
stores. Lot A will possibly be villas/timeshare project with 100-120 units.
Mr. Alvarez stated the plans were just preliminary, adding staff has a
meeting with Quiksilver tomorrow and will have a better idea how they will
move forward.
Mr. Scatena asked how Quiksilver feels about JW Marriott being across
the street. Although Quiksilver hasn't voiced an opinion, Mr. Alvarez feels
they are embracing the fact that there is already a synergy and a lot of
activity. There is a huge connection between surfing and golf according to
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APPROVED MINUTES
SPECIAL PALM DESERT HOTEL & SIGNATURE EVENTS
COMMITTEE MEETING November 5, 2014
Quiksilver's research. Mr. Acosta added that Quiksilver's target group will
be different and unique to this type of hotel environment. The
understanding is that it is so unique that it is being discussed throughout
the hotel investment industry.
Mr. Scatena stated that he has an owner's meeting in a couple of weeks
and would like to update them on this project. Mr. Wohlmuth suggested
that staff help set up a meeting with Mr. Scatena and Quiksilver.
C. INTRODUCTION OF CITY OF PALM DESERT'S STRATEGIC PLAN
Mr. Alvarez handed out copies of the Strategic Plan entitled "Envision
Palm Desert — Forward Together". Mr. Wohlmuth explained how it was
developed and the time lines of previous plans, going over a few of the
goals within previous and current reports. Mr. Alvarez encouraged the
committee to read the complete report, but most important the Marketing
& Tourism section as it really addresses the goals for the future of the City
of Palm Desert. Mr. Alvarez suggested there could be a follow-up
discussion next meeting to answer questions and discuss it further.
VII. CONTINUED BUSINESS
None
VIII. OLD BUSINESS
A. PRELIMINARY RESULTS OF MEASURE G AND H — VERBAL UPDATE
BY JOHN WOHLMUTH
Mr. Wohlmuth shared that Measure G and H were both defeated. He
identified some of problems; 1) Late start on educating the residents; 2)
Media portrayed the TOT increase as a 22% increase over the existing tax
instead of the actual 2% increase; 3) Placement on the ballet — the
measures were on the last page by themselves; 4) Next time these items
can be placed on the ballet will be November 2016.
Mr. Wohlmuth asked the committee if these items were put back on the
ballet in 2016 should the language be the same or similar or should it be
modified? Under state law, a "general tax" is fifty plus one vote to approve
it and a "specific tax" where it is actually dedicated to tourism and
marketing, vs. what was on the ballot this time as "advisory" would require
a sixty-six and two third vote. Ms. Harnik feels the wording definitely
needs to be improved with more education to the voters.
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APPROVED MINUTES
SPECIAL PALM DESERT HOTEL & SIGNATURE EVENTS
COMMITTEE MEETING November 5, 2014
Mr. Wohlmuth summarized the discussion with the committee as the
committee feels the TOT increase should be added to the ballot again in
2016, refining the language, and start educating the voters much earlier.
B. SUMMARY OF DISCUSSION OF EVENTS/IDEAS THAT CREATE
HOTEL VISITS
Mr. Alvarez reviewed the list of ideas from last month's discussion stating
that these are great ideas to keep in mind moving forward throughout the
year.
Jan Harnik suggested that the Golf Cart Parade should be looked at and
considered as a weekend community/family event. There was a
discussion of the timing of the parade and Mr. Wohlmuth said there needs
to be a conversation with the Chamber of Commerce regarding expanding
the event and the timing.
Other events discussed with the potential to grow into signature events
were the Rock n Roll Marathon and the Y Be Fit Reverse Triathlon. Mr.
Spiegel suggested the use of an event planner in the future. Mr. Scatena
stated that JW Marriott is using a company called Live it up Productions
for a holiday musical production. It begins after Thanksgiving and runs
through the holidays. It will be on a test basis to see how well it is
received by guests and whether there is enough interest to continue with
other events.
Donna Gomez discussed her intentions and plans with the marketing
budget moving forward. Ms. Gomez stated she will be taking 10-12 items
to the Marketing Committee meeting on the 18th of November, that are
important or missing items from the budget. The committee will be asked
to prioritize the items, with the top two or three being incorporated into the
current budget. Ms. Gomez will report back next month.
IX. REPORTS FROM CITY COUNCIL LIAISONS
None
X. REPORTS AND REMARKS
A. Chairman
Mr. Scatena shared there is a need to focus on ways to bring more groups
back that used to come here years ago. His hotel is working on getting
them back but the challenge is flights and costs to bring more people here.
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APPROVED MINUTES
SPECIAL PALM DESERT HOTEL $ SIGNATURE EVENTS
COMMITTEE MEETING November 5, 2014
He also reported that other cities in the valley have already started
spending dollars toward social influencers to bring visitors in. The City of
Palm Desert needs to tell their story better in a genuine way.
Mr. Wohlmuth offered that the City could establish a better process with
more flexibility on budgeting to get groups here to our City. Mr. Scatena
added that the Los Angeles, Orange, and San Diego County drive market
is a great market and very accessible.
B. Committee Members
None
C. Staff
None
XI. INFORMATIONAL ITEMS
XII. NEXT MEETING DATE —December 3, 2014 at 4:00 p.m.
XIII. ADJOURNMENT
With Committee concurrence, the meeting was adjourned at 5:10 p.m.
o McCormick, Recording Secretary
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