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NOTICE OF STUDY SESSION
OF THE
PALM DESERT CITY COUNCIL
NOTICE IS HEREBY GIVEN that the Palm Desert City Council will convene
Thursday, October 11, 2012, at 2:00 p.m. in the Administrative Conference Room of the
Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California 92260, for
the purpose of conducting a Study Session. Said Study Session will be held in order to
discuss the City's Economic Development Strategic Plan.
R HELLE D. KLASSE , CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
October 5, 2012
NO ACTIONS WILL BE TAKEN AT THE STUDY SESSION.
PURPOSE OF THE STUDY SESSION IS INFORMATION ONLY.
MEMORANDUM
TO: John Wohlmuth, City Manager
FROM: Ruth Ann Moore, Economic Development Manager
DATE: September 23, 2012
SUBJECT: October 11, 2012 Study Session
ATTACHED: Economic Development Strategic Plan - Draft
Attached is a copy of the draft for the City's Economic Development Strategic Plan
(EDSP) that will be reviewed at the October 11, 2012 City Council study session.
With the elimination of the Redevelopment, staff was tasked to develop a plan in order
achieve successful, sustainable economic development in Palm Desert.
Staff reviewed the City's primary economic infrastructure and worked with focus groups
to look at the City's strengths, weaknesses, opportunities and threats to determine if the
current course is correct and what new steps should be taken.
From the research, staff developed six primary goals along with actions to accomplish
the goals. Additionally, staff attended conferences and webinars to review potential
funding sources used by other cities and counties.
This document is meant to be presented as a draft to receive input and direction from
the Council.
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City of Palm Desert
Economic Development
Strategic Plan
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Overview
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The Economic Development Strategic Plan (EDSP) provides an assessment of existing
conditions that drive the economy in Palm Desert and is intended to help local
stakeholders and city staff implement strategies that contribute to the City's economic
health. The EDSP includes strategic recommendations to enhance Palm Desert's
business climate and support economic growth that is consistent with the community's
character.
Due to fluctuations in the economy at the national, state, and local levels, the EDSP
should be viewed in a goal achieving timeframe of five years rather than in the long
term, such as with the City's General Plan. With the continual changes in funding due
to ABx1 26, it is recommended that the EDSP be a flexible plan rather than static and
the goals be reviewed each year to take advantage of possible new and upcoming
funding sources.
The following primary goals of the EDSP emerged from the evaluation of issues and
opportunities associated with Palm Desert's primary economic drivers:
• Cultivate Palm Desert's appeal as a tourist destination.
• Work with commercial developers, hoteliers and business entrepreneurs to
create quality shopping, dining, entertainment and stay experiences.
• Work with higher education to provide facilities and curricula to train and
educate our workforce for higher wage jobs that support our community.
• Encourage existing local business to be successful and expand.
Page I2
I. Approach
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In preparing the EDSP, the economic development staff reviewed the community's
primary economic infrastructure and worked with various focus groups and individual
stakeholders to define several guiding values to provide a framework for the
development of this document.
The recent elimination of redevelopment, which previously supported economic
development in Palm Desert and many other communities, provides the City with an
opportunity to start from the beginning and evaluate the City's needs; determine if our
current course is correct; and what new economic development tools can be used or
enhanced to put the limited financial resources to the best use.
While many of the strategies within this document are in use or are in the process of
being implemented, others will need to be researched, developed and funded.
Focus groups and individual meetings were conducted with executive staff, the
business community, and groups of varying interests and age ranges to identify Palm
Desert's key assets and liabilities.
Page 13
A summary of the Strengths, Weaknesses, Opportunities, and Threats is listed below:
Strengths Opportunities
• Central valley location • Work with hoteliers to increase
• Available land for development room occupancy
• Accessible to large drive market • Develop a stronger downtown
• Attractive second home presence for El Paseo
market/affordable residential • Work on zoning for mixed use/live
• Natural beauty/open space and work/parking standards
• Weather • Redevelop HWY 111 Corridor
• Strong K-12, higher education • Promote/expand aspects of culture
• Cultural amenities/ Recreation and recreation
• Shopping mix • Expanding educational
• Accessible activities for tourists opportunities with healthcare
• Strong brand • Look at zoning in north sphere for
• Fiscally strong local government entertainment opportunities
• Accessible medical facilities • Development of hotel/timeshare at
• Quality of life Desert Willow and area
• Sense of community surrounding El Paseo
Weaknesses Threats
• Isolated from large population • Funding opportunities for economic
• Weak labor pool development
• Lack of middle class/professional • Regional competition for
jobs destination retail
• High utility costs • Slow housing recovery/weak
• Seasonal tourism & business property values decrease revenues
• Limited higher education/majors • Competing visions impede new
• Limited diversity development
• Limited activities for 20-30 age • Resurgence of competitive valley
• Hotel product dated & limited to cities
mid-range
• Heavily weighted toward golf
• Mall & Hwy 111 need renovation
• No defined downtown
• Lack of public transportation
Page 14
II. Guiding Considerations
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The following ideals were taken into consideration when forming each objective and
strategy to achieve the primary goals.
• Ensure broad community benefit from economic growth and prosperity.
• Build on existing strengths in areas such as arts, entertainment, retail, dining,
alternative energy, medical, quality of life and the environment.
• Work to support long term jobs for residents and reinforce Palm Desert's key
role in the regional economy.
• Reinforce the message that businesses are a vital part of the Palm Desert
community.
• Fully explore collaborations with the other county, state, education and not-for-
profit groups to create new business programs and increase job opportunities.
• Realize the community's limits and the role of government when implementing
new economic opportunities. Do not create a "new wheel," rather improve upon
the "existing wheel."
Page 15
•
III. Background and Today's Economy
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In 1973 the City incorporated with a population of 10,100 and a budget of only
$241,266. Through its central valley location, available land for development, and its
forward thinking and innovative City Council, Palm Desert has grown into a thriving
community as represented by the information below:
Population Growth : a
2000-2011 0 o
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Source:CA Department of Finance
Palm Desert population grew by 24.33% over the past twelve years. Palm Desert is
now the third largest city in the valley.
Page 16
Age Distribution
Palm Desert& Inland Empire, 2010
Under to:17.a% •Palm Desert Inland Empire
55&Over 47.4%
16.9% 17.1%
15.8%
15.3%
14.6%
13.4% 13.4% 13.5%
12.1%
9.2% 9.7%
9.0% 9.1%
8.2%
7.4
5.8%
5.0% 4.6%
0-9 10-19 20-24 25-34 35-44 45-54 55-64 65-74 Over 75
Source:2010 U.S.Census
Palm Desert has a far greater share of baby boomers and retirees than the Inland
Empire. In 2010, the City's share of those over 55 or older was 47.4% versus 20.1% of
the Inland Empire.
Median Income by City
Coachella Valley Citites, 2009
$134,615
$75,344 $71,833
$55,691
$45,263 $44,219 $42,927 $39,475
$36,933
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Source:2009 American Comm unity Survey and f conomics&Politics,Inc.
Palm Desert has the fourth highest median income in the valley, which is above the
Coachella Valley's total median income of $45,856. The average household income in
Palm Desert is $88,137 as compared to the valley's average household income of
$26,412.
Page 17
Employment Palm Desert
1991-2010
2000-2010 - 32,224 31,874 32,292 32,886
down-1,103-4.0% 29,558 30,441 30,493
27,873 28,661 28,252
26,376
26,769
22,825
20,767
19,251
18,237
17,081
14,466 14,663 15,731
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source,CA Employment Development Department
Employment in Palm Desert grew steadily until its peak in 2007 with 32,886 jobs before
falling off to 26,769 jobs in 2010. During this recession, Palm Desert lost 4% more jobs
than it had gained over the past decade.
Employment Distribution By Sector
Palm Desert,2010
7,869
29.4%
4,000
14.9%
2,448 2,584
1,618 1,747 1,757
1,394 1,403 9.1% 9.7%
5.2% 5.2% 6.0% 6.5% 6.6% 1A3 946
33% 3.5%
Fin/Ins/RE Construction Health Bus.Sv. Education Small Sectors Agriculture Distribution Retail Hotel/Amuse Oth.Serv.
Source:CA Employment Development Departmet
In 2010, almost 45% of all jobs in Palm Desert came from either the retail or
hotel/amusement sectors. The sectors with higher wage jobs such as finance, health,
business and education only account for 24.3% of all jobs in the city
Page 18
Bank Deposits(000) 0
N
Palm Desert, 1992-2010
urirs-
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N N in N .
2000-2010 . N rn v.
Up$1,544 million or 130.9% co 00 to N
N C N N N
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1992 1993 19941995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source:Highline Data
Deposits in Palm Desert's financial institutions have continued to rise with an increase
of 130.9% from 2000 to 2010. Palm Desert ranks second in bank deposits for all cities
in Riverside County and ranks first in the Coachella Valley.
Reported Crime Rate Per 1,000 Residents
Palm Desert, 1993-2010
109.1
1993-2010 Crime Rate Per 1,000 Residents
• 93.4 Down-63.1%
Incidents down-1,047(-34.8%)
87.3 Population up+21,203(+76.9%)
70 70.6
59.5 47.6 56.6 58.9 60.1
54.5 53.8 66.1 52.7
50.2
44.2
39.5 40.2
1993 1994 1995 1996 1997 1998 T 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source:Uniform Crime Report,FBI
Palm Desert's crime rate has fallen dramatically since 1993, despite a population
increase of 21,203 people over the same time period. Palm Desert ties Rancho Mirage
with the lowest violent crime rate reported in the Coachella Valley.
Page 19
0 11/
IV. Palm Desert Economic Drivers
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Retail
A healthy retail sector is critical to Palm Desert's ability to provide goods and services
to its citizens, visitors and business community. Palm Desert has taken advantage of
its central location in the Coachella Valley to establish itself as a powerhouse in this
economic sector with a variety of retail environments including: Westfield Palm Desert
the valley's only regional shopping center; big box centers such as Desert Crossing
and Desert Gateway; El Paseo Shopping District, the City's destination retail district
servicing high-end clients and tourists; and neighborhood centers, servicing the daily
needs of the residential community.
Taxable Retail Sales(000)
2000-2010 Retail Sales Palm Desert, 1990-2010
Up$39.9 million or 3.3% 0,
N � �
Inflation:31.7% o A M M on
N Q, VI V1
Cr, 01
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00 to co ^ V - R on 90
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Source:CA Board of Equalization
In 1973, Palm Desert's retail sales were $8.2 million. With the exception of the recent
recession, the City's retail sales have continued to grow and now reach over $1.2
Page 110
billion. However, to remain competitive, there are some constraints and concerns that
should be addressed.
Issues Opportunities
• Larger boxes are contributing to • Planning staff is working on parking
vacancies studies for requirements specific to
• Hwy 111 area lacks cohesive Palm Desert
development and has an outdated • Developers are aggressively
image recruiting targeted retailers for
• Water Quality Management Plan larger spaces
(WQMP) costs may stifle infill • Developers are working to update
development larger centers in the City
• El Paseo lacks effective destination • As the north sphere begins housing
signage for tourists development, there will be more
retail opportunities
Tourism and Conventions
Each year, Palm Desert and the surrounding cities import over four million visitors who
contribute approximately $2.1 billion into the valley economy. Tourism also is a major
job generator with one in every six jobs within the Coachella Valley attributable to this
industry. Palm Desert has the second largest room inventory in the Valley with over
2,200 hotel rooms and timeshares. Hotel bed taxes are the second largest funding
source for the City's General Fund.
Hotel Room Sales
2,202 Hotels Rooms
98.5
91.1 91.1 92.1
81.3 79.8 77.8 80.9 79.0 78.1 82.4
74.0 76.0
52.0 56.0
60.0 66.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Cal.,Fim,rnc in MITI,,.s Source:City of Palm Desert
Palm Desert's hotel inventory can be categorized by price and by use. The following
are examples of hotel categories:
• Convention and larger hotels — JW Marriott and Embassy Suites
• Extended stay— Homewood Suites and Courtyard by Marriott
• Mid-price accommodations — Holiday Inn Express and Best Western
• Boutique — Shadow Mountain Resort and Tres Palmas Bed & Breakfast
• Timeshare — Marriott Shadow Ridge and The Westin Desert Willow Villas
• Short term rentals — Private homes and condos throughout the City
Page 111
.
Issues Opportunities
• Lack of hotel rooms surrounding El • El Paseo has two parcels with hotel
Paseo shopping district land entitlements
• Hotel products are outdated • The City could assist with
• Mid-week vacancies renovating hotel product through an
incentive program
• Work with hotel management group
to create opportunities to attract
tourists and conventions
• City has the lowest TOT rate (9%)
in the valley. The rate could be
increased by 2% and still be the
lowest in the valley.
Culture and Events
Arts are abundant, both in the City and in surrounding communities. Palm Desert
boasts a multitude of galleries, two arts shopping districts; large-scale art exhibits on El
Paseo, and public art pieces throughout the City's many parks and public spaces. The
City recently welcomed the opening of a satellite museum of the Palm Springs Art
Museum, The Galen, to Entrada del Paseo.
Entertainment and events abound throughout the community and attract tourists
including golfing events, music festivals, cultural events at the McCallum Theater,
monthly Art Walks, the Living Desert Zoo & Botanical Garden, and Fashion Week on El
Paseo.
According to a recent study by Arts Oasis, the arts sector generates over 8,200 jobs, or
7.3% of the total 112,437 jobs in the Coachella Valley. Income for creative workers in
the Coachella Valley is 30% greater than the average. Cultural and entertainment
events drive additional economic impacts for the community from attendees who shop,
dine and stay in hotels. According a 2010 Americans for the Arts economic prosperity
study, local attendees spent an average of $17.42 per person, per event, in addition to
the cost of admission. Nonlocal attendees spent twice this amount, or close to $40 per
person, per event.
Local and part-time residents strongly support the art and entertainment community
making this an economic driver both in its ability to attract tourists and in its potential
for job generation.
Issues Opportunities
• There are multiple arts offerings • Desert Art Oasis is in development
with no apparent coordination of of a master calendar event website
events to promote to • The Galen offers classes and
residents/visitors exhibits for the community and
• A lack of affordable work/live space students
for aspiring artists • Combining various art events and
Page 112
• Funding to grow the public art activities could create larger
collection comes from events to attract visitors at little cost
development, which is currently to the City
stagnant • Grant writing for public art
Educational Institutions
Palm Desert is home to all four major higher educational campuses within the
Coachella Valley including:
• College of the Desert, which provides two-year educational opportunities in
nursing, public safety, agribusiness, alternative-fuels automotive, culinary arts,
early childhood education and other specialized fields.
• California State University, which offers ten bachelors and master degree
programs including nursing, nutrition and food science, criminal justice,
education and business administration.
• University of Riverside, which offers a masters degree in creative writing.
• Brandman University, which offers bachelors degrees in early childhood
development, psychology and sociology; master degrees in psychology and
special education; and teaching credentials.
Adult Education Level,Aged 25 &Over
■High School or Less BA or Above
46.6% 48.3% 46.1%
45.0%
35.3% 34,8% 33.8% 34.6%
30.1% 31A%
28.7%
21.9%
18.6%
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CPa sst�
Source:2009 American Community Survey,Census Bureau
Over 31% of Palm Desert residents have a bachelors or higher degree. This exceeds
the total residents in the valley with a degree (21.9%). According to the California
Department of Finance, more Palm Desert residents with full-time jobs work in the
education and medical fields (20.3%) than any other job sectors. Education provides
both work force training for businesses coming to the valley and living wage jobs for
teachers and administrators who reside in the community.
Page 113
Issues Opportunities
• Land banked for campuses is in • UCR has begun development of a
jeopardy due to AB1x 26 medical university
• State funding for community • CVEP's workforce plan is working
colleges and universities is causing with all education levels to train
a reduction in classes future workers in the medical, arts
• High school dropout rate is 15.9% and technology clusters
(CA Dept. of Education 2009-2010) • Desert Sands Unified has higher
• Education opportunities are limited performance test scores than the
for professions in science and math State average
Other Job Sectors of Note
Medical — According to the Bureau of Labor, the healthcare industry will generate 3.2
million new jobs nationwide over the next ten years, due in part to rapid growth in the
senior population. While none of the three local hospitals are located within Palm
Desert city limits, the community does support a wide variety of medical offices and
treatment facilities. As a community with many retirees that is also home to all of the
Coachella Valley's major higher education facilities, Palm Desert is poised to see
growth in local educational training offerings in the medical field and benefit from the
accompanying jobs that will be generated within the community.
Energy Sector — The passage of AB 811 and subsequent PACE loan programs
nationwide have spurred growth in the solar industry. The clean energy industries
such as solar, can create new higher wage jobs, green jobs, and reduce the amount of
energy consumption in the City.
In August of 2008, the City established its Energy Independence Program (EIP) to
encourage energy conservation and efficiency improvements such as solar panels, air
conditioners and efficient windows for residential and commercial businesses. To date,
the City has committed up to $15 million to the EIP Program and has so far invested
$6.6 million in energy projects.
With over 350 days of sunshine annually, Palm Desert is a prime location to encourage
the development of clean energy industries. Reducing greenhouse gas emissions is
an ideal way to secure the City's quality of life, and preserve its natural and financial
resources.
Home Design/Decor — Housing construction and renovation fueled our region's most
recent growth spurt. While the recession brought this industry to a virtual halt, the
housing market will eventually rebound bringing these jobs back to the desert.
Page 114
V. Guiding Principles
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The City of Palm Desert's guiding principles for economic development are the
foundation for key goals and actions.
1. Support existing businesses through a variety of economic efforts, partnerships,
business outreach and special events.
2. Assist in the creation of new retail opportunities and commercial development.
3. Support expansion of additional resort/hospitality development and improve
competitiveness of existing hotel product to attract tourists and conventions.
4. Provide recreational, cultural and entertainment opportunities and promote Palm
Desert's quality of life amenities to encourage growth and tourism.
5. Support the City's education institutions as an important factor in the continued
and diversified economic growth of Palm Desert and the Coachella Valley.
6. Support the expansion of business through the promotion of new clean and
renewable energy and to protect the City's quality of life and natural and
financial resources.
Page 115
VI. Key Goals & Actions
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1. Support Existing Business
Immediate Actions:
• Continue the promotion of various programs available to small
businesses on the City's government site www.cityofpalmdesert.orq for
Small Business Administration (SBA) loan programs, Service Corps of
Retired Executives (SCORE) services, and the CA Economic
Development Administration's one-stop shop program.
• Continue to work with the Chamber of Commerce to support Palm Desert
businesses.
• Meet with businesses and property managers to address immediate
challenges and concerns.
• Participate with the City's Sustainability Committee to ensure advocacy
for the business community as Palm Desert continues to improve
efficiencies in energy and conservation.
• Follow-up with businesses regarding the recent Coachella Valley
Economic Partnership (CVEP) business survey and conduct personal
visits to local business establishments to determine needs.
Page 116
• Maintain a strong business presence on the City's tourism site
www.palm-desert.orq for hotels, restaurants, shopping districts and
events.
• Continue the out-of-market advertising campaign to attract tourists to
Palm Desert.
• Continue to support Palm Desert's Dine Out program or another similar
program and sponsor Restaurant Week.
• Increase awareness of the Visitor Center among the business community
as a resource for distribution of information.
Mid-term Efforts:
• Evaluate streamlined permitting and other means of business assistance.
• Work with CVEP in the development of a micro-loan program and
promote this opportunity to area businesses.
• Coordinate business programs and services with Small Business
Development Center (SBDC) including an area loan fair.
• Increase the use of social media tools to promote business, attractions
and events.
• Increase co-op advertising opportunities to support business entities and
attractions.
Long-range Strategies:
• Maintain focus on long-term development of businesses that provide
general fund revenues, improve infrastructure and services for residents
and tourists.
• Maintain a strong relationship with CVEP to assist with the growth of
area business clusters and development of an educated workforce.
• Explore funding/grant sources to reinstate a Facade Enhancement
Program for specific areas along the Highway 111 shopping corridor.
2. Create New Retail Development
Immediate Actions:
• Continue to work with the local real estate brokerage community to attract
retail business by providing information on locations, demographics and
sales analyses.
Page 117
• Continue to provide ombudsmen services between new businesses and
the various City departments during the permitting and entitlement
processes.
• Replace the current Commercial Space Inventory Report and contract
with Desert Area Commercial Information Exchange (DACIE) to provide
site selection information and locations in order to eliminate staff time for
information gathering.
• Complete field counts of various parking lots to determine actual needs of
specific shopping areas in Palm Desert.
Mid-term Efforts:
• Create a streetscape standard to provide an improved outdoor dining
experience along El Paseo while continuing to allow adequate sidewalk
accessibility.
• Develop a policy to assist with funding as it pertains to WQMP.
• Assist in the renovation efforts of Westfield Palm Desert and Town
Center Way.
Long-range Strategies:
• Work with the General Plan update to focus on the appropriate
commercial and entertainment development in the north sphere,
specifically the area surrounding the universities.
• Explore the Main Street City designation and what benefits are derived
from the designation.
• Explore funding/grant sources to implement the directional sign program
for El Paseo.
3. Expand Resort/Hotel Development
Immediate Actions:
• Coordinate efforts to develop the Larkspur Lane hotel site.
• Create a quarterly meeting with hoteliers and City staff to develop
coordinated programs pertaining to conferences and conventions and to
assist with property issues.
• Respond to inquiries from potential developers regarding hotel/timeshare
opportunities at Desert Willow Resort.
Page 118
Mid-term Efforts:
• Meet with hoteliers to assess existing hotel product for potential future
updates.
• Develop a shared transient occupancy tax incentive program for hotel
renovations.
Long-term Strategy:
• Continue to explore additional hotel development opportunities around El
Paseo and throughout the City.
4. Provide and Promote Recreation/Culture/Entertainment
Immediate Actions:
• Work with Arts Oasis to determine the depth of the current art community
in Palm Desert.
• Work with various ongoing art events to create a "First Weekend Art
Promotion & Tour" each month from September through May.
• Continue to work with Fashion Week El Paseo as a city signature event.
• Continue the promotion of arts and events on the City's tourism site and
through the Visitor Center and social media.
• Continue to work with the Galen (Palm Springs Art Museum Palm Desert)
to coordinate events and activities for residents and visitors.
Mid-term Efforts:
• Work with hotels and restaurants to provide packages and incentives for
First Weekend Art Promotion & Tour.
• Work with local galleries and the Galen to create a signature art event for
the city.
• Integrate cultural tourism advertising with the existing out-of-market
advertising campaign.
• Explore event opportunities to promote the many area outdoor activities
including biking, hiking, golf and swimming.
Long-term Strategy:
• Brand Palm Desert as an arts and culture community.
• Assist in the recruitment of a professional arts supply store.
Page 1 19
• Research the needs for live/work space or a studio district for the arts
and work with General Plan update to provide zoning for locations.
• Investigate funding for Desertscape's plein air events.
5. Support Education Institutions
Immediate Actions:
• Continue working with Cal State and UCR to ensure the land surrounding
the universities is available for campus expansion.
• Work with CVEP in their ongoing efforts to expand educational
opportunities for youth in the City.
Mid-term Efforts:
• Work with UCR as they develop their medical affiliation with local
hospitals to ensure educational opportunities for residents.
Long-term Strategy:
• Investigate incubator facility funding that can be incorporated into related
fields of study for the upcoming campus expansions.
6. Promote Clean Energy
Immediate Actions:
• Promote the City's Energy Independence Program (EIP) to commercial
property owners through direct mailings, City's Brightside Newsletter and
local media.
• Conduct quarterly meetings with contractors to inform and update them
on the status of the City's EIP, available funding, the Federal Housing
Finance Agency (FHFA) lawsuit and national Property Assessed Clean
Energy (PACE) initiatives.
• Conduct informational meetings with commercial property owners
regarding energy efficiency rebates, renewable energy installations, and
EIP financing opportunities.
Mid-term Efforts:
• Modify the EIP guidelines to address existing program criteria (i.e.
funding cap, consent agreement) that may be limiting commercial
participation in the EIP.
Page 120
• Continue to monitor the national PACE movement, federal PACE
legislation and report implications to the commercial property owners.
• Establish a citywide inventory of potential commercial roof top area
available for solar installations and work with property owners to provide
information on the benefits of solar and available financing.
Long-range Efforts:
• Secure additional funding for EIP.
• Coordinate with CVAG's efforts to establish a regional PACE program.
• Secure a qualified consultant to implement and promote the City's
commercial EIP with third-party funding.
Page 121
VII. POTENTIAL FUNDING SOURCES
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As previously stated, the City's Redevelopment Agency was the major funding source
for economic development in Palm Desert. With the elimination of Redevelopment, the
City must look at other funding mechanisms. The City Council may need to make
policy decisions to accommodate new programs when determining how to fund
economic development projects. The programs should be based on the return-on-
investment to the General Fund that would be gained by participation and a "feasibility
gap analysis" as to the amount of funding the project needs.
The following are funding examples currently available to the City:
• Sales Tax Rebates — A program could be developed for projects that will either
return all or a portion of sales taxes to a developer for a specific period of time in
order to assist with the project's development.
• Sale Tax Increase — A sales tax increase would add to the General Fund.
Resulting revenues could be directed to a line-item in the budget to assist with
the development of projects within the City.
• TOT Rebates — A program could be developed to encourage hotel renovations
and/or new construction that would expand and update the hotel product within
the City therefore, increasing accomodations and TOT to the General Fund.
Page 122
• TOT Increase — TOT could be increased to fund promotional/marketing
programs to attract more visitors to the City and increase revenues to the
General Fund. A program could also be established to work with local hoteliers
to attract conventions to the City that will also increase sales tax.
• General Fund Budgetary Commitment — City Council could elect to create an
"economic development reserve" as a funding resource for various programs
and projects such as; a Façade Enhancement Program, assisting with
renovations to projects as they pertain to WQMP, or funding for amenities that
may not increase the General Fund but attract visitors and enhance the quality
of life for residents.
• Short-term Lines of Credit — loans secured and repaid by new property, TOT or
sales taxes generated by the project.
• City Fees Discounted/Waived/Deferred — can act as an incentive to developing
projects.
• Federal/State Grants or Economic Development Initiatives — These may
become available to increase access to capital for small businesses.
Other funding mechanisms include the following:
• Infrastructure Financing Districts (IFDs) — bonds issued through IFDs require
two-thirds voter approval and can be used to help pay for infrastructure-type
projects by diverting property tax revenues to pay debt service from other local
governments, except schools.
• Revenue bonds — backed by revenue generated from a project funded with
bond proceeds and repaid by earnings from the operations of a revenue-
producing enterprise.
• Conduit Revenue Bonds — tax-exempt bonds issued by charter cities or joint
powers authorities for economic development or multifamily housing. The bond
is payable from loan payments received from the non-governmental developer
on the condition of a public benefit, and it presents no liability for the
governmental entity.
• Community Facilities Districts — bonds used mainly to finance public works
improvements and services or to pay for specific, limited improvements related
to privately-owned or real property. The parcel tax associated with the specific
impromenets requires two-thirds voter approval. This program works best with
undeveloped areas.
• Brownfields Assistance — assistance to assess and remediate abandoned or
underused industrial and commercial property. Funding may be avaiable via the
Environmental Protection Agency and federal/state agencies.
Page 123
VII. Conclusions:
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The EDSP has been created as a guide to achieve successful, sustainable economic
development for the City of Palm Desert. While many of the immediate actions are in
place and ongoing, mid-term efforts and long-term strategies will require research,
development, and possible funding.
As the national and regional economic climate changes, available public resources will
wax and wane. This perpetually shifting fiscal landscape argues for an annual review of
the EDSP to evaluate results and articulate new strategies and programs. As new
funding opportunities emerge, Palm Desert will be able to implement new programs
listed within the City's Economic Development Strategic Plan.
Page 124
Goals & Actions Responsible Staff Timing
Support Existing Business
Continue the promotion of programs available to small business Economic Development Ongoing
Work with Chamber to support Palm Desert business Economic Development Ongoing
Meet with businesses and property managers to address All departments Ongoing
challenges and concerns
Follow-up on CVEP business study Economic Development One year
Maintain strong business presence on City's tourism site Marketing Ongoing
Continue out-of-market advertising to attract visitors Marketing Ongoing
Continue Dine Out promotion Marketing Ongoing
Increase awareness of Visitor Center as resource for businesses Marketing Ongoing
Evaluate Streamlined permitting Planning, Building & One year
Safety, Public Works,
Finance
Work with and promote CVEP's micro-loan program Economic Development Two years
Coordinate services and programs with SBDC Economic Development One year
Increase use of social media tools to promote business entities Marketing Ongoing
and attractions
Increase co-op advertising opportunities Marketing Two years
Focus on long-term development Economic Development Five —ten years
Maintain relationship with CVEP to assist with growth of area Economic Development Five —ten years
business clusters
Goals & Actions Responsible Staff Timing
Create New Retail Development
Continue to work with local real estate community to attract retail Economic Development Ongoing
business by providing information on locations, demographics
and sales analysis
Provide ombudsmen services between businesses and various Economic Development Ongoing
City departments
Replace current Commercial Space Inventory Report with Economic Development Six months
internet program
Complete analysis of field counts for parking lots for update to Planning department Six months
ordinance requirements
Create a streetscape standard for El Paseo sidewalk dinning Planning department Six months
Develop a policy to assist with funding for WQMP Public Works, Financing One year
& Economic
Development
Assist in renovation efforts for Westfield and Town Center Way Economic Development, Two —five years
Planning, Building &
Safety, Public Works
Work with General Plan update to focus on appropriate Planning As required
commercial and entertainment in north sphere
Explore Main Street City designation and determine benefits. Economic Development Two years
Apply for designation if applicable/beneficial.
Explore funding sources to reinstate a Façade Enhancement Economic Development Two years
Program. Apply for grants if applicable.
Goals & Actions Responsible Staff Timing
Expand Resort/Hotel Development
Coordinate efforts to develop Larkspur Lane hotel site Economic Development Two years
Create a quarterly meeting with hoteliers and City staff Economic Development, Six months
to develop coordinated programs for conferences, Marketing, & Planning
conventions, events and assist with property issues
Respond to inquiries from potential developers Economic Development Ongoing
regarding hotel/timeshares at Desert Willow & Planning
Meet with hoteliers to assess existing hotel product for Economic Development One - two years
potential future renovations & Planning
Develop a shared TOT incentive program for hotel Economic Development, One year from
renovations Planning & Finance assessment
Continue to explore additional hotel development Planning & Economic Five — ten years
opportunities for El Paseo and City Development
Goals Responsible Staff Timing
Provide, Promote Recreation/Culture/Entertainment
Work with Arts Oasis to determine the depth of the AIPP, Economic One year
current art community Development, Marketing
Work with ongoing art events to create a "First Weekend AIPP, Marketing, One year
Art Promotion & Tour" Economic Development
Continue Fashion Week Economic Development Ongoing
& Marketing
Promote arts and events on City's tourism site and Marketing, AOPP Ongoing
social media
Work with the Galen to coordinate events and activities Marketing, Economic Ongoing
for residents and visitors Development & AIPP
Work with hotels and restaurants to provide packages Economic Development, Two years
for First Weekend Art Promotion & Tour AIPP & Marketing
Work with local galleries and the Galen to create a Economic Development, Two —five years
signature art event for the City Marketing, AIPP
Integrate cultural tourism advertising to existing out-of- Marketing Two years
market campaign
Explore event opportunities that can use the many Economic Development, Two —five years
outdoor activities — biking, hiking, golf, swimming Special Events
Brand Palm Desert as an arts and cultural community Marketing, PIO, AIPP Five — ten years
Assist in the recruitment of a professional arts supply Economic Development Five —ten years
store & AIPP
Research the market for live/work space or a studio Planning Two —five years
district for the arts and work with General Plan update to
provide zoning for locations
Investigate funding for Desertscape's plein air events AIPP One - two years
Goals Responsible Staff Timing
Support Education Institutions
Continue working with Cal State and UCR to ensure the Economic Development, Ongoing
land surrounding the universities is available for campus Legislative
expansion
Work with CVEP in their ongoing efforts to expand the Economic Development Ongoing
educational opportunities for youth
Work with UCR as they develop their medical affiliation Economic Development Two —five years
to insure educational opportunities
Investigate incubator facility funding that can be Economic Development Five years
incorporated into related fields of study for upcoming
campus expansions. Apply for funding if applicable
Goals Responsible Staff Timing
Promote Clean Energy
Promote EIP to commercial property owners Office of Energy One year
Management (OEM) &
Public Information Officer
(PIO)
Conduct quarterly meeting to update contractors on EIP OEM One year
concerning FHFA and national PACE
Conduct community information meetings for OEM & Economic One year
commercial property owners Development
Modify EIP guidelines to as necessary to address OEM Two years
limitations of commercial property owner's participation
Monitor national PACE and report to commercial OEM Ongoing
property owners
Establish citywide inventory of commercial roof to areas OEM Two —five years
for solar installation and work with property owners
Secure additional funding for EIP OEM Two —five years
Coordinate with CVAG to establish regional PACE OEM Ongoing
program
Secure qualified consultant to implement/promote the OEM Two years
City's commercial EIP with third-party funding