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HomeMy WebLinkAboutTUP Westfield Shoppingtown Auto Sales Special Event . CITY OF PALM DESERT COMMUNITY SERVICES DEPARTMENT b 4. . INTEROFFICE MEMORANDUM TO: Carlos Ortega, City Manager FROM: Phil Drell, Director, Community Development DATE: October 10, 2001 SUBJECT: Westfield Shoppingtown Request for Auto Sales Special Event Temporary Use Permit Under Chapter 25.64 of the Zoning Ordinance, the Director of Community Development may approve temporary use permits for special sales events totaling ten days in any calendar year. Conditions are applied to insure that the events will not adversely impact adjacent properties and that internal circulation, public safety and convenience are preserved. Over the summer, Westfield Shoppingtown received approval for two three-day car sale events in their north parking lot. While there was some misunderstandings concerning restrictions on signage and balloons, the operator was generally responsive when problems were brought to his attention. Under the ordinance, Westfield Shoppingtown is eligible for one more event this year._ _.. Does the Council wish to provide specific directions concerning the approval of then— , events? R ' ed and Ap v CS- Phil Drell Richard Folkers Director, Community Development Assistant City Manager Development Services /gs Attachment CITY COUNCIL CTION: APPROVED ✓ DENIED, , RECEIVED OTHER MEETING DATE _ l l`5 I AYES:-- .�, NOES: aAl k Avu ABSENT: Au a) ABSTAIN: 'TERIFIED BY: 'AT..) Original on File with Cio, qerk's Office By Minute Motion, direct that there be no Temporary Use Permits approved for Westfield Shoppingtown from the time period of Thanksgiving through Easter so as not to impede shoppers at the center during the high season. ........ ...... CITY Of P . ffl DESERT 73-510 FRED WARING DRIVE ,. PALM DESERT, CALIFORNIA 9 2 260-2 5 7 8 Ite TEL: 760 346-061 I 'tea °• • FAX: 760 340-0574 cityhall@ci.palm-desert.ca.us OFFICE OF THE CITY COUNCIL October 1, 2001 Ms. Norine A. Bowen General Manager Ms. Nicole Boggs Specialty Leasing Representative Westfield Shoppingtown Palm Desert 72840 Highway 111 Palm Desert, California 92260 Dear Ms. Bowen and Ms. Boggs: Thank you for your letter of September 26, 2001, regarding the used car show at Westfield Shoppingtown Palm Desert. I have asked that this item be placed on the City Council agenda for October 11, 2001, for Council's review and action. You will be notified in writing of any decision made by City Council on this item. You are welcome to attend the meeting at 4:00 p.m. Again, thank you for your correspondence and for being a great community partner. Sincerely, ROBERT A. SPIEGEL COUNCILMEMBER RAS:wjm cc: City Council Carlos Ortega Phil Drell 0 ruxnoox.IcrcuoPAPER • September 26,2001 i3esti1e[t1 SHOPPINGTOWN PALM DESERT 72840 Highway 111 Councilman Robert Spiegel Palm Desert,CA 92260 • City of Palm Desert Telephone (760)346-2121 73-510 Fred Waring Drive Facsimile (760)341-7979 Palm Desert,CA 92260-2578 Dear Councilman Spiegel: By way of this letter,we would like to solicit your assistance in helping us continue our used car show events.Mr.Phil Drell brought to our attention,that during the first day of the show over the Labor Day weekend,you had objections to both the balloons and the signage. While we understand the sensitivity of both of your issues,we,at the same time,need to entertain events such as these for additional revenue,as well as for our community. In the spirit of cooperation, we are confident that we can work towards a compromise that will satisfy all parties involved. With that in mind,we are proposing the following: 1. No balloons of any sort will be utilized going forward(balloons were taken down immediately,upon mention),2. The signage will be submitted to Mr.Phil Drell for pre-approval,and,Westfield will incur the cost of the signs.Please note that these signs will be exclusively for Westfield Shoppingtown Palm Desert. As previously stated these were the only two objections that were mentioned to us. Attached please find a recap that we believe you will find very interesting. It highlights the overall event from a tax revenue standpoint for the City of Palm Desert,as well as provides details as to the overall monies spent by the operators themselves during the event. As time is of the essence for us in booking an additional show this November as well as solidifying our 2002 budget by October 5th,we would appreciate your immediate attention to this matter. For those of you who have not seen our redevelopment efforts thus far,we would be more than happy to conduct tours for each of you. We have received very positive compliments from both our customers and retailers as well. Thank you in advance for your assistance and immediate consideration in this matter. We look forward to your response as soon as possible. Very truly yours, ("hcrutAuli. ,696LA-1,—) --YA/Q:4/9A-) Norine A. Bowen Nicole Boggs General Manager Specialty Leasing Representative Enclosure CC:Mayor James Ferguson Mayor Pro-Tem Richard Kelly Councilman Buford Crites Councilwoman Jean Benson Mr.Phil Drell ?W t.4 t.1 S.111-11 AT ;3 9S I Lid 8z d�S T0. L3A1303111 Dear Nicole: Hi and thank you for letting us present our used-car tent sale at your mall. It was an absolute pleasure working with you and your staff. As usual, you did an excellent job. We are very pleased with our relationship with Palm Dessert. That was the second sale that we had there and are looking forward to having many more. Our staff, as well as all of our dealers, are always very excited to come to your community. Not only do we find it a beautiful place to spend the weekend, but the people have also proven themselves to become more than just customers and vendors, but to become our friends as well. We very much hope this relationship continues. With that said, I want to bring up a couple of points. First of all, because of the success of our shows in the area, we now are having local and surrounding dealers coming to us to participate. Actually during our last show there, I had a manager from one of the local shows come down and sit with me on three of the four days we were out there. He was very impressed with our operation and wants to be a part of future shows. In the very competitive auto industry, that speaks loads. As I mentioned above, we truly love your community and want to become a part of it. I'm currently working on a project that will generate money towards the Palm Dessert high school. With my extensive background in sports entertainment, I'm proposing putting on a wrestling show and donating the funds to a scholarship program to try and help local athletes who may not be fortunate enough to fully handle the financial burden of continuing his or her education. I would like to do one of these shows every time we come in. I want to make this work on an on-going basis. We realize that there are a number of different promotion companies in our business and you have the option of working with any of them, but I think you would be hard pressed to find one that sincerely wants to make an effort to do more than just business with the community. But this is what we are about. Hopefully we will have a chance to prove this in the future. I understand that you are meeting with your city counsel. I hope all goes well and would welcome any calls from members with regards to our intentions. Again, thank you very much for your time and effort. It has been a real pleasure doing business with both yourself and your company. Yours truly, Dan Turner Economic Impact of an Auto Tent Sale: Congratulations for wanting to host a Provantage used-car tent sale at your venue or in your city. We are sure you will be very happy with the results. Our tent sales have been proven to be a very effective way to inject a large boost of real dollars into a community not only the days of the event, but for many more to follow as well. Taking a recent sale where we did approximately $3 million in sales, the city received their one percent as a tax on that which equaled $30,000 from the weekend event. But even though that is a nice influx of capital from a weekend, we are much more than that. So how does a show impact a community? There are a number of ways. They are broken down as such (we'll look at a show with six dealers): 1. Each dealer has a managerial staff of eight people and two porters. Add to that approximately 35 sales people and this will equal 45 people per dealer. Take six of those and that adds up to 270 people from the dealers alone. On top of this come approximately another 60 people from Provantage staff to truck drivers and laborers. The final number adds up to well over 300 working people on a weekend. It comes in at close to 330. If each person spends only $5 per day in the mall that comes out to approximately $7,000 of extra income for the mall including our set-up and teardown days. Let's not forget that there are taxes to be taken out of this that goes directly to the city. 2. Meals: If the average lunch costs $7 and the average dinner $12, then the area restaurants are looking to gain $8,930 on lunches from Thursday until Monday. Dinners will come in at $14,880. This totals up to $23,810. Throw in another $5,000 on breakfasts and it comes out to $28,810 on food. 3. Hotels: With the average price of a hotel to be at $65 including taxes, the hotels will break down to about 100 rooms for management and 115 rooms for sales staff. That equals $41,925. Because of the rates during tourist season in the desert you can safely double that rate to equal about $84,000 for the weekend. Again, a portion of this goes in city taxes. 4. Sales: If you take an average sale of 150 autos at an average price of $20,000 after taxes, the total comes to a staggering $3,000,000 in business. 5. The Mall: Finally let's not forget that we pay the mall itself$15,000 per rental. If we do four shows per year that comes out to $60,000. 6. Customer Draw: In the past we have been told by venues that having us on their property has drawn an increase of potential customers by $30 percent. These would be people who have come to the show and then decided to visit the hosting site's properties. 7. Ongoing Community Effect: Customers are purchasing autos. These autos in the future will need to be maintained. This will mean things such as oil changes, brake inspections etc. This will be money that will stay in the local community. It will also allow some of these customers to continue to buy automobiles down the road from the local dealers as they will have established credit with the banks which some will not already have. As you can see, Provantage coming into a neighborhood is a very good situation for all involved from a number of different standpoints. This is certainly not a one-way street. Your community and city stands to gain in numerous ways. We value our relationships with the cities and towns that invite us into their communities. We treat them with respect and strive to make everybody happy. We look forward to working with you in the future.