HomeMy WebLinkAbout2009-10-15 Study Session - DW Clubhouse Project and RD 5yr Implementation Plan ' uz;;��. CITY OF PAL111 DESERT
‘ \ 73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
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fl+., TEL: 760 346-061 I
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info@palm-desert.org
NOTICE OF JOINT STUDY SESSION
OF THE
PALM DESERT CITY COUNCIL
AND
PALM DESERT REDEVELOPMENT AGENCY
NOTICE IS HEREBY GIVEN that the Palm Desert City Council and Palm Desert
Redevelopment Agency will convene Thursday, October 15, 2009, 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 Joint Study Session.
Said Study Session will be held in order to discuss: 1) Desert Willow Clubhouse Terraces
Project; 2) Redevelopment Agency Five-year Implementation Plan.
SS
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
October 9, 2009
NO ACTIONS WILL BE TAKEN AT THE STUDY SESSION.
PURPOSE OF THE STUDY SESSION IS INFORMATION ONLY.
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CI PRINTED OM REEIELED PAPER
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Will.
Golf Resort.
2009/2010
Desert Willow Lakeview and
Ballroom Terraces
Proposed ProJ' ect Overview
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Richard S. Mogensen
General Manager
Submitted 9-28-09
38-995 Desert Willow Drive Palm Desert,California 92260 Telephone 760-346-0015 Fax 760-346-7444
Website:www.desertwillow.com E-mail:info@desertwillow.com
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Desert
Willy
Golf Resort
2009/2010 CAPITAL PROJECT
LAKEVIEW TERRACE/BALLROOM TERRACE
Design Presentation Meeting
September 28, 2009
Anticipated Project Cost for full terrace configuration:
$600,000 to $800,000
Project Return on Investment Estimate:
3 to 5 years
Project Justification
❖ Establishes Desert Willow Golf Resort as a premier F&B venue in the Valley.
Few clubs in the valley will be able to match our venue or capacity.
❖ Maintains the Desert Willow Golf Resort as a showcase to the community.
❖ Complements the existing resort design with a contemporary style,while updating
and enhancing the overall image of Desert Willow. Keeps us competitive with
other newer clubs and facilities in the marketplace.
❖ Expands outside Restaurant Dining by up to 100+seats.
❖ Expands and maximizes the revenue opportunities of the resort from groups for
Golf, F&B, and Catering, by providing a large facility for golf events, dining, and
banquet events (Corporate, Association, Government, Religious, Social, Charity
Events, etc...).
❖ Offers a dramatic setting for Weddings and other major social events.
❖ Provides the citizens of Palm Desert with a spectacular Dining venue with a larger
seating capacity (we routinely turn away dining business daily in the season due
to capacity issues). Also,provides a larger covered dining area for guest comfort.
❖ Offers a venue for up to 500+ guests in an outside setting with extraordinary
views of the golf course and mountain vistas.
❖ Currently no pre-function area for the Ballroom when dining is in service. Allows
the resort to feature one or more large reception areas(inside or outside) for lunch
and dinner events separate from the dining area
❖ Current capacity of the entire Ballroom is 225 guests (maximum seating in one
space).
❖ Provides the resort with the ability to have multiple events simultaneously by
dividing the space both inside and outside the main building. Examples: Dining
and Banquets — multiple, multiple banquets for golf and F&B events, no need to
close dining to accommodate other events. Allows the resort to operate public
dining and banquet events concurrently.
❖ Complements any future hotel development in the adjoining pads.
❖ Does not require an expensive building addition or expansion, as has been
proposed in the past,costing millions of dollars.
Advantages to completing the project this year (2009/2010)
➢ Construction Costs can be minimized in the current economy with aggressive
pricing in the market.
D. The resort has some approved Capital Funds in the Annual Capital Budget.
➢ The return on the project investment is accelerated as the economy improves.
> Splitting the project will increase the cost 20%to 25%. The project can be phased
over two fiscal years if needed, but there is an economy of combining the project
scopes and the benefit we derive from the public impact of doing it all at once.
> Potential ROI improves by doing the project in the slower 2009/2010 period due
to pre-sell opportunities.
> Positions the Desert Willow Golf Resort for the coming recovery in 2010/2011.
> Critical to Future Revenues: allows us to showcase the Club now for future golf
and banquet bookings. The present booking pace/pattern is 6 months to 18 months
out.
> May have an immediate impact on revenues in the 2009/2010 fiscal year.
> Doing the project sooner than later would minimize any business displacement
due to construction. This would be minimal compared to future years.
RSM:mtf 9-28-09
Desert le'
Will
Golf Resort
DESERT WILLOW GOLF RESORT
Capital Expenditure Projects
Projected ROI Analysis
FISCAL YEAR: 2009-2010
PROJECT NAME: Lakeview and Banquet Terraces Renovation
GOAL PROJECT DATE: Fall/Winter 2009
OVERALL BUDGET: $600,000/$800,000
PURPOSE OF THE PROJECT:
• We do not have enough dining seating capacity in season for the present business
model. Adding up to 100+ seats of dining would be very beneficial. We lose potential
Dining due to Guests not wanting to wait for table or services.
• We lack a major pre-function space for the Ballroom for Cocktail Receptions.
• We turn away Banquet business due to size and availability. Additional Banquet
Capacity up to 500 guests for outside events would make us highly competitive in the
market.
• Weddings and other social events would find the terraces more appealing.
• Revenue will increase if the terrace areas are renovated for Dining, Catering and Golf
Events, due to our ability then to handle multiple concurrent events.
• The Renovation would make a spectacular venue even better for residents and guests.
ANTICIPATED REVENUE COMMENTS:
We expect more dining covers, more social banquets, and golf related events if we
improve the terraces. We expect to displace less dining covers and ballroom usage will
increase.
REVENUE ESTIMATES:
Please note attached ROI Financial estimates based on projected Annual increases in
revenues.
Additional Golf Revenues: $ 80,050
Additional F&B Dining: $ 257,200
Additional F&B Catering: $ 365,450
Total=$702,700 in a stabilized full year with normal economic environment.
ROI CALCULATION:
The ROI is based on a 25%overall Gross Profit on additional revenues.
$702,000 in Gross Revenues x 25%= $175.625 per year in additional Gross Profits
PAYBACK ESTIMATE: Estimated ROI is 4 to 5 Years
RSM:mtf 9-28-09
t
DesertWill
Golf Resort
Major Banquet and Dining Competition Overview
September 24, 2009
We evaluated hotel and club properties that are either public or semi-private which
feature a view as part of their marketing ability to sell major dining and banquet events.
The following are key competiiton points:
Marriott Dessert Springs
• Large Capacity Ballrooms up to 1,500 and 1,800 guests. Normal hotel
ballrooms with no windows.
• 210,000 Sq. Ft. Meeting Space
• 21 ,600 Outside Patio for events
• Some outside pool and grass areas for receptions.
• Views are good given the venue.
Tahquitz Golf Club:
• Inside capacity is approximately 30.
• Clubhouse is carpeted with older patio cement outside.
• Limited, uncovered patio area -capacity of 50-70. Has mountain views. View
includes some residential and business areas.
Cimmaron Golf Club:
• Clubhouse has tiled floors throughout and partially covered outdoor patio.
• Facility can seat approximately 75 inside, and 75-100 outside.
• Patio area is in several sections, and views of the mountains and course are
seen from both inside and out. View includes some residential/business areas.
Indian Wells Country Club:
• Ceremony location is on golf course and guests then walk to the Clubhouse
across the access road for the reception.
• Main ballroom seats max 350 guests without a dance floor.
• Outdoor patio off the ballroom is covered (no heaters can be used to maximize
space in inclement weather) and can accommodate approximately 50 at
round tables set in a line.
• The view is of the greens and mountains is challenged, however, due to the
location of the built-in stage, the orientation of the room is focused away from all
the windows (which are covered when AV is in use). The Main Dining and
President's rooms seat approximately 75 and have a view of the golf course.
• The downstairs grill and bar areas can seat approx 50 inside and another 50
outside, which has a golf course view. This area is used for members only.
Page 2
Renaissance Esmeralda:
• Ballrooms are hotel style- largest capacity of 1,120, no window views.
• 100,000 Sq. Ft. Meeting Space
• Pool views from the public dining areas.
• Prefunction areas face the green and pool area.
Rancho Las Palmas:
• Limited pool view from the dining area.
• Patio seating is approx 200.
• Ballrooms are hotel style- no views.
Indian Wells Golf Resort:
• Ballroom capacity only 150. No windows.
• Only small patio on the back of the ballroom - 50 to 75 guests.
• Patio has a view of the parking lot. Ballroom has max capacity of 100
without a view.
Desert Falls Country Club:
• Ballroom capacity of 200 guests.
• Patio capacity is 50 with view of golf course & homes.
• Golf Course grounds can be used for ceremonies.
Mission Hills Country Club
• Clubhouse has course view however it is flanked by access street s to homes
which are also in view.
• Wedding area is on the greens just below the patio.
• Patio capacity is 100, ballroom capacity is 200 with bar as pre-function area.
The Classic Club:
• Ballroom capacity 200- no windows.
• Back patio overlooking the golf course can accommodate 150/200 for events.
•
RSM:mtf 9-28-09