HomeMy WebLinkAboutRequest for Funding - Bighorn Golf Club's Samsung ChampionshipsCITY OF PALM DESERT
COMMUNITY SERVICES
STAFF REPORT
REQUEST: For funding for BIGHORN Golf Club's Samsung World Championships
LPGA's tournament in the amount of $225,000.
DATE: June 10, 2004
CONTENT: Request
Recommendation:
By Minute Motion: 1) Concur with the Marketing Committee's recommendation and
approve funding of BIGHORN Golf Club's Samsung World Championships LPGA's
toumament in the amount of $125,000; 2) Appropriate $125,000 from the unobligated
General Fund Reserve to Account number 110-4417-414-3222.
Background:
Attached please find BIGHORN Golf Club's request for funding in the amount of
$225,000 for the sponsorship of their Samsung World Championships LPGA's
toumament. The tournament will be held October 14 —17, 2004, and includes an elite
20-player field of women golfers.
BIGHORN Golf Club has presented two major golf championships in the last ten years in
which the City has provided funding. The history is as follows:
Year Event Participation
2002 Battle at BIGHORN $125,000
2001 Battle at BIGHORN $125,000
2000 Battle at BIGHORN $50,000
1994 The Skins Game $100,000
1993 The Skins Game $100,000
These events offer the City a unique opportunity for promotion and advertising in that it
presents the City as an upscale, destination resort in a forum not otherwise affordable.
However, it is difficult to qualify and quantify support of the $225,000 amount requested.
The City has a history of supporting events that benefit the entire Coachella Valley. The
marketing plan, approved by this Committee, begins with a mission statement that sets
out to promote Palm Desert as a destination resort, desirable place to live, and to
promote businesses. The Samsung is an event that meets all three of our marketing
objectives and goes a step beyond.
As a shoulder season event, the Samsung does something very important for our
community and businesses; it establishes Palm Desert as a year-round destination
resort and community. Finding effective marketing vehicles which provide the City with
an opportunity to assist its business in the early fall are few and far between. During its
three year run, the Battle at BIGHORN was successful for both BIGHORN and for the
City of Palm Desert, its residents, and businesses. Staff sees the Samsung as an
equally impressive opportunity.
While the addition of proposed events such as a block party and a concert in the park
are sure to add to the festivities of the long weekend, they would have to be produced by
an outside agency, as City staff does not have the time to organize such events.
Recognizing that Palm Desert does receive national television attention for such an
event and that it does have the potential to increase tourism during a shoulder season,
staff is recommending Palm Desert contribute $125,000, a sponsorship in line with that
of the Battle at Bighorn.
The Marketing Committee concurred with staffs recommendation to allocated $125,000
towards the cost of the tournament. Funds are not available in the Marketing budget
and would need to be appropriated
Submitted By:
4 2 v_rU2-
Kristy Kr�e ling
Marketing Manager
Appr I:
Sheila R. Gilliga
Assistant City Manag
Paul Gibson Carlos L. Ortega
Director of Finance
City Manager
us—iu—cuu4 1.14;4ypm
rrom-014 Munn iVLP W.UU
+(bU(TSn25
T-404 P.002/002 F-a41
May 10, 2004
Ms. Shelia Gilligan, Assistant City Manager
Members of the Promotions Committee
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
BIGHORN
Dear Ms. Gilligan and Members of the Promotions Committee:
BIGHORN Golf Club paired with Samsung, NBC and IMG will play host to LPGA's finest at the
Samsung World Championships, October 14-17, 2004. The elite 20-player field is already taking
shape with the addition of 14-year-old amateur Michelle Wie. To date this exciting field includes
defending champion Sofie Gustafson, Kraft Nabisco Champion Grace Park and 2003 LPGA Tour
Player of the Year Annika Sorenstam. Last year's event hosted 25,000 spectators over four days, 2 days
televised on ESPN and 2 days on NBC. This promises to be an exciting event with a talented field of
professional players on one of the most celebrated golf courses in the world. BIGHORN's Canyons
course.
BIGHORN has hosted 8 international events including The Skins Game (1992-1995), the U.S. Senior
Match Play Challenge (1998) and three Battle at BIGHORNs (2000-2002) with the final group including
Tiger Woods, Jack Nicklaus, Lee Trevino and Sergio Garcia. These exciting golf tournaments
introduced approximately 7 million people per tournament to Palm Desert, California and it's supreme
lifestyle. From the United States to Europe, Asia and Australia we're certain that your past sponsorship
dollars has experienced a significant impact in tourism.
With greater understanding of the sponsorship impact your dollars have seen, we are positive that the
City of Palm Desert would like to once again take advantage of the influx of golf fans during October.
Some of the proposed events include a "Block party" on El Paseo, a special concert at the Civic Center
Park, and bringing some exciting talent to the McCallum. These events would encourage people to stay
longer and spend more money while enjoying the supreme Palm Desert lifestyle, thus producing a
significant boost in the economy.
Obviously the costs of bringing an event of this magnitude to BIGHORN Golf Club and Palm Desert are
significant and, therefore, BIGHORN requests making a presentation to the City to help defray some of
these costs. Unlike the Battle at BIGHORN, a one -day event. this event covers five -days including
Wednesday's Pro Am and we anticipate more than 20,000 attendees. The sponsorship we seek is
$225,000. Community benefits would include tourism opportunities to an extremely broad audience
during a slower time of the season, customers patronizing restaurants, hotels, retail businesses and of
course, long term purchase of property.
BIGHORN GOLF GLUE
255 PALOWET DRIVE, PALM DESERT. CALIFORNIA, 92260 U S A
a 76o 341-4653 • FAX 760 776-7125
Received May-10-04 04:52pm From-+7607767126 To -PALM DESERT CITY CLE Page 02
05-10—Z004 04:49pm From —BIG HORN GOLF CLUB
+7607767125 T-404 P.008/003 F-341
Value added publicity, recognition and revenue for the community also results in future home sales at
BIGHORN. Currently, we are at 70% build -out with finished homes at an approximate assessed value
of $850 million. In relation to the total assessed valuation of the City at $6.45 billion, BIGHORN
currently accounts for just over 1O% of the total assessed valuation. At build -out, BIGHORN will
contribute over $1.2 billion to the assessed valuation of Palm Desert. This is significant inasmuch as
BIGHORN is within the Redevelopment Agency's project area and, with the tax increment, is expected
to generate $8.5 - $10 mullion per year. This is an excellent retum for the City particularly since the
residents at BIGHORN, by a very large measure, live here part time, cause very little expense to the
City, and at the same time support the City in numerous ways.
In addition, BIGHORN employs over 350 people with an annual payroll of $5 million; it also, creates
activity for all the building trades from contractors to material suppliers with an average building cost
per home of $1.5 million, and, over the last four years, has paid out over $6 million in real estate
commissions to cooperating brokers.
From our standpoint, and we trust the City feels likewise, we are a part of the community and are a
partner with the City in creating a better community. We have always considered ourselves to be in
partnership with the City and it is in this spirit that we are requesting the City to contribute to the event.
We are not seeking this contribution to be relieved of the cost of the event. BIGHORN would continue
to pay the lion's share of costs for the staging of the event. In fact, at the conclusion of 2002's Battle At
BIGHORN, BIGHORN Golf CIub had paid $6 million in site fees alone hosting nationally televised golf
tournaments, including The Skins Game and the U.S Senior Match Play Challenge. Other costs and
guarantees associated with hosting these events add about half as much to the total costs. This year's
event will be no exception; we expect costs to be approximately $1.5 million
Your consideration of our request is greatly appreciated.
Sincerely,
-44C-Affe-g-)VNeX,
Warren W. Smith
General Manager
Received May-10-04 0412pm From-+760770712S To -PALM DESERT CITY CLE Page 03