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HomeMy WebLinkAboutParticipation in the PSDRCCVA Jt Powers Authority - 11/12/09 CITY OF PALM DESERT OFFICE OF THE CITY MANAGER STAFF REPORT REQUEST: CONSIDERATION OF CITY OF PALM DESERT PARTICIPATION IN THE PALM SPRINGS DESERT RESORTS COMMUNITIES CONVENTION AND VISITORS AUTHORITY (CVA) JOINT POWERS AUTHORITY (JPA) SUBMITTED BY: John M. Wohlmuth, City Manager DATE: November 12, 2009 CONTENTS: Letter from Kenneth C. Kinsey, Desert Springs JW Marriott Resort & Spa CVA bookings for Palm Desert CVA 2009 Executive Summary of Sales & Marketing Plan CVA 2008 Annual Report Table B-5, City of Palm Desert Largest Employers City of Scottsdale February and September 2009 Visitor Statistics Reports — excerpts Recommendation By Minute Motion, remain a participating member in the Palm Springs Desert Resorts Communities Convention and Visitors Authority (CVA) Joint Powers Authority (JPA) and reconsider the BID in February 2010, after a study session discussion with the CVA and the Hospitality Industry and Business Council, Inc. (HIBC) to be held in January, 2010. Commission Recommendation At the May 27, 2009 meeting of the Palm Desert Marketing Committee, Mr. Beckelman and Senior Vice President of Sales and Marketing Robert Enriquez of the CVA gave a detailed presentation of the CVA's history, the Board's expectations of the organization's goals, and an explanation of the recently formed BID. The Committee unanimously voted to recommend that the City remain in the CVA and become a part of the BID to save the City approximately $600,000 annually. Executive Summary Over the past few years, the City Council has reviewed the prospect of withdrawing its membership from the CVA, issuing a notice of Intent to Withdraw in 2005, and Consideration of Withdrawal from CVA Staff Report November 12, 2009 Page 2 of 7 rescinding the notice in 2006. In February of this year, the Council declined to join the CVA Business Improvement District, formed as a mechanism to increase the CVA budget by 58 percent while decreasing the financial burden on the cities. The issue of whether to remain a member of the CVA is before the Council for consideration. Backqround The Palm Springs Desert Resorts Convention and Visitors Authority (CVA) Joint Powers Authority (JPA) and the Hospitality Industry and Business Council (HIBC) have instituted a BID for the region. The purpose of the BID is to boost CVA funding by increasing the financial and operational participation of valley hotels and decreasing cities' Transient Occupancy Tax (TOT) contributions. The BID and the newly formed HIBC allow more input and shared expense from the private sector that benefits from the CVA. On February 26, 2009, the City Council voted not to join the BID and now must decide whether withdrawing from the CVA is beneficial as Palm Desert moves forward in these challenging economic times. According to the bylaws governing the JPA, withdrawal from the CVA requires the following: • Thirteen months is the minimum notice required to withdraw. This notice should be issued to CVA no later than November 30, 2009 in order to take effect on December 31, 2010. • When notice to withdraw is issued by November 30, complete withdrawal becomes effective on December 31 of the following year. Therefore, if notice is issued later than November 30, withdrawal would not occur until December 31, 2011. • Full payment is required until the effective date of withdrawal. Therefore, the City would be required to pay dues not only for the current year, but also throughout following calendar year. The City and its businesses would lose the right to vote during the period of withdrawal with the exception of operating budget items. • If the City chooses to leave and rejoin the CVA, it would be responsible for all dues that were payable during the time that the City was not a participating member. A meeting was held on October 19, 2009 with representatives from the Desert Springs JW Marriott Resort & Spa, CVA, and City staff. Desert Springs General Manager Ken Schwartz and Director of Group Sales Kenneth Kinsey voiced their strong desire for the City to remain a part of the CVA and provided the following reasons: Consideration of Withdrawal from CVA Staff Report November 12, 2009 Page 3 of 7 • The CVA brings significant business to Desert Springs. As this and other large hotels fill up, business overflows to smaller hotels, increasing occupancy throughout the area. • Withdrawing from the CVA during an economic downturn would be detrimental to Palm Desert hotels and Desert Springs in particular. • Desert Springs is projecting 54°/a occupancy this year and only 50% next year. Withdrawing from the CVA would result in a loss of sales leads, leading to even lower occupancy and a severe drop in business in future years. • Desert Springs accounts for roughly 50% of Palm Desert's hotel rooms. • Desert Springs representatives stated that the City could not develop a program that would equal the business generated by the CVA. The CVA has many relationships with meeting planners and travel and tour operators that bring additional business to Palm Desert. The CVA also facilitates tours of the area by hosting meeting planners and media. These programs would represent a significant financial burden on the City if undertaken alone. • Marriott properties are voluntarily paying the 2% tax to participate in the BID and not one customer has expressed a negative opinion about the additional tax. • In 2008, Desert Springs received approximately 500 leads from the CVA resulting in the booking of 60,000 room nights. The CVA leads accounted for 25% of the resort's convention business. Of the 50,000 hits on the CVA's website in 2008, Desert Springs received a 14% click through rate to its website. If the City withdraws, Desert Springs would suffer from the loss of these leads, including leads from China, Germany, Australia, and Canada, as well as conventions and other business. • Major cities generally have a CVA that works to provide sales leads and business to local hotels. It is the hope of Desert Springs staff that the City would not "cut off one of the sales engines." • Desert Springs management questioned why Palm Desert would want to exclude itself from the CVA when it is the center of the valley. They stated that Palm Desert is part of a whole, the Coachella Valley, and that cities in such close proximity should work together. Consideration of Withdrawal from CVA Staff Report November 12, 2009 Page 4 of 7 Mr. Schwartz requested that Palm Desert examine what it would cost to pull out of the CVA and start a new venture that would provide the same results. He suggested that the City should work more closely with the CVA to bring additional business to Palm Desert instead of starting its own entity. Convention sales are aimed at securing business up to four years in advance. If the City withdraws, it could take up to two years to establish a comprehensive program and several more to start obtaining bookable leads. The resulting gap in sales efforts would damage local hotels, especially Desert Springs. When staff met with Mr. Jeff Beckelman, CEO of the CVA, he echoed many of the sentiments expressed by Mr. Schwartz, and cited the following as additional reasons why Palm Desert should remain a CVA member: • The CVA is currently working with Westjet, a Canadian low-cost airline, to bring more direct flights to the Palm Springs area. Regions targeted include Vancouver and Edmonton to increase visibility on the Canadian route. • When added to Embassy Suites, Marriott properties including Desert Springs, Residence Inn, and Courtyard, represent 85% of total rooms in Palm Desert. All of these hotels are voluntarily paying the 2°/a tax to participate in the BID. • Hotels, restaurants and other businesses are able to provide more direction on CVA initiatives and programs under the structure of the new BID. Staff has researched the potential impact of both withdrawing from the CVA and remaining a part of the organization, and has summarized those points in the following table: Action Pros Cons Withdraw Palm Desert can develop the program Withdrawal from CVA threatens local from CVA of its choice, one that specifically caters hotels, that might not withstand the loss of to Palm DeserYs branding and name leads and its negative impact on business recognition as a separate entity from No CVA voting privilege in decisions Palm Springs affecting the City After December 2010, no dues City responsible for approximately $800,000 payment necessary; funds can be in dues through December 2010 for notice reallocated for program development given prior to December 1, 2009 making Palm Desert the CVA's largest dues payer. Hotels are not required to pay the 2% Time to develop and implement a program tax for participation in the BID — it would take two to three years before a City program could benefit Palm Desert hotels Consideration of Withdrawal from CVA Staff Report November 12, 2009 Page 5 of 7 Action Pros Cons Palm Desert CVA members would lose leads provided in the interim years Local hotels might not withstand withdrawal and resulting loss of business leads from CVA City would require more staff to develop and implement a comparable program The City would not realize cost savings offered by joining the BID Increase in cost to conduct independent marketing programs, bearing entire cost instead of co-op ads Remain in Voting privileges remain intact If Palm Desert joins the BID, the 2% tax CVA would be mandatory for all Palm Desert By joining the BID, dues would hotels with 50 rooms or more decrease by about 70% to an annual cost of approximately $250,000 — making $600,000 available for the City's General Fund. City would receive the same services at reduced cost. Desert Springs continues to book groups and conventions, maintaining their occupancy projections Marketing benefit to Palm Desert hotels and businesses from the CVA far outweighs anything that the City could produce at similar cost Meeting planners continue to be exposed to Palm Desert through tours sponsored by the CVA Convention and leisure overflow will continue to fill Palm Desert hotels Continue to experience cost savings by participating in valley-wide CVA cooperative marketing programs rather than bearing that expense alone Consideration of Withdrawal from CVA Staff Report November 12, 2009 Page 6 of 7 Action Pros Cons Remain competitive with three biggest challengers — San Diego, Scottsdale, and Las Vegas Guests continue to bear the minimal cost of the BID's 2% tax. When combined with the City's 9% TOT, Palm Desert's total room taxes remain the lowest in the Coachella Valle Research has shown that most smaller cities partner with neighboring communities to market their entire region as a tourist destination. Near San Diego, communities such as Del Mar, La Jolla, Carlsbad, and Rancho Santa Fe have combined their sales and marketing efforts in the San Diego North Convention and Visitors Authority. Other examples of this type of partnership can be found in Santa Barbara, San Luis Obispo, and Naples, Florida. Newport Beach, with a population of approximately 86,000, is one of the few cities that has chosen to form a CVA/CVB under sole contract to the City of Newport Beach, and as such has an annual budget of $3.15 million, and a staff of 14 plus two contracts with a full-service advertising agency and an international marketing representative. Newport Beach has 9 major hotels and/or resorts, and 9 small inns, totaling 3,040 rooms. Leaving the CVA to pursue a solo convention and visitors sales and marketing strategy would pose significant challenges for both the City and its hotels. Palm Desert currently has only one convention-sized hotel, Desert Springs JW Marriott Resort & Spa. The City's shortage of convention-scale hotels would severely hamper efforts to market Palm Desert as a standalone convention destination. The number of conventions compatible with Palm Desert's hotel product would be extremely limited. As a participating member of the CVA, the City and its hotels benefit from the organization's promotion of Palm Desert as part of a region that carries the familiar and highly marketable "Palm Springs" brand. Coupled with Palm Desert's reputation as the shopping, educational, and cultural center of the Coachella Valley, the promotional benefits to the City's hotels and business increase exponentially. Through the CVA, this regional destination offers ample convention hotel space, including Desert Springs JW Marriott, rivaling competing destinations such as Scottsdale and San Diego. Palm Desert would not receive these benefits without the CVA and would be forced to compete against an established convention and visitors entity in its own backyard. This new rival would be equipped with a better-known brand, a much larger staff, an expansive hotel product offering, and significantly greater financial resources. Consideration of Withdrawal from CVA Staff Report November 12, 2009 Page 7 of 7 While the CVA's focus is driving lodging and hotel occupancy, there are additional benefits to the hotel occupancy promoted by the CVA's efforts. These include additional golf, shopping and restaurant patronage. For example, during the past twelve months over $586,000 of hotel related business has been booked at Desert Willow. This includes direct wholesale golf sales to hotels for their guests; plus, events held at Desert Willow that were booked by groups staying at local hotels. Further, Desert Willow staff estimate that a matching amount of business may accrue to Desert Willow from hotel guests who independently book rounds of golf. While the above cannot be directly correlated with the efforts of the CVA, it does highlight the interdependent nature of hotel occupancy and patronage at other businesses within the community that generate sales tax and other revenues. Therefore, to the extent that the CVA fills hotel rooms, investment in the CVA indirectly helps many other retail-related businesses throughout the City. Staff believes that the CVA benefits the entire area and provides a service that Palm Desert cannot affordably replicate. Additionally, it is more beneficial for the City and its hotels, restaurants and other businesses to remain a part of an organization that promotes and generates business for the entire region. Therefore, staff respectfully requests that the City Council determine that it is in the best interest of the City to remain a participating member of the CVA. Fiscal Analvsis There is no immediate financial savings should the City choose to withdraw from the CVA. The City is required to pay its membership dues of approximately $800,000 for the 2010 calendar year whether or not it will continue to be a member. The true cost of withdrawal will be in the establishment and maintenance of the City's equivalent to the CVA. If the City were to follow a model similar to Newport Beach, it could expect a similar annual budget, which is approximately of$3.15 million. Su mi te y CiTY COUNCILAC,�'f�ON � APPROVED � � DENiF.D RECEIVED OTHER Jo . ohlmuth, City Manager MEETI DATE e ewed by: AYES: r' ' Q� %l�/ NOE5: � . � ABSENT: AIi5TAIN: usti McCarthy AC ed velopment VF,RtFIED BY: �� ' Original on File with City erk's Office * By Minute Motien: 1) Remain a participating member in the Palm Springs Desert Resort Ca�nnities Convention and Visitors Authority (CVA) Joint Pawers Authority Paul Gibson, Director of Finance and reconsider the BID in February 201Q, after a Study Session discussion with the CVA and the Hospitality Irqdustry and Business Council, Inc. (HIBC), to be held in January 2010; 2) agpoint Councilman Ferguso� as the City's representative to the CVA effective immediately. 3-2 (Relly, Spiegel NO) October 26, 2009 Mr. John Wohlmuth City Manager City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Mr. Wohlmuth, Per your request I have prepared the following summary regarding the benefits Desert Springs, A JW Marriott Resort& Spa receives from being a member of the Desert Resorts Convention & Visitors Authority. The Desert Resorts CVA has been a valuable partner for Desert Springs, a JW Marriott Resort& Spa in both the Leisure and Group segments. From a Leisure perspective, it is reported that the Desert Resorts CVA generates over 50,000 unique visitors to their main website per month and, on average, 12% of these guests have clicked to visit Desert Springs'website in 2009. The Desert Resorts CVA continually runs marketing campaigns to draw attention to our destination, both virtual and print. The Desert Resorts CVA and Desert Springs have worked closely together on several regional marketing promotions to stimulate occupancy in low demand periods. The most recent regional promotion was"Palm Springs Half-OfP'which generated 36,727 visits to their signature site, (www.pshalfoff.com), of which 17% clicked to book Desert Springs. The Desert Resorts CVA has been, and will continue to be, a strong partner for Desert Springs in the International Leisure Market. Throughout 2009, Desert Springs, through our partnership with the Desert Resorts CVA, has hosted tour operators from China, Australia, Germany and Canada exposing the resort to a broad new audience. From a Group perspective, the Desert Resorts CVA has been a beneficial partner. By utilizing our partnership, we have been able to expand our trade show calendar, touching more perspective clients, while maintaining our historical trade show budget. The CVA recently expanded its sales force to ten Sales Executives focusing on the major market segments, with significant redeployment against the West Coast and Canada. The following represents the room nights and revenue the Desert Resorts CVA assisted or generated for Desert Springs in each of the consecutive years for all years: 1. 2006 33,688 room nights $4,467,140.00 2. 2007 20,184 room nights $3,232,378.00 3. 2008 67,587 room nights $3,002,128.00 (this does not include Bikram Yoga) 4. 2009 10,211 room nights $2,048,835.00 Desert Springs continuously receives leads from the Desert Resorts CVA for group business, historically the resort has received: 1. 2006 557 leads 610,986 room nights 2. 2007 693 leads 630,022 room nights 3. 2008 695 leads 598,077 room nights 4. 2009 341 leads 251,867 room nights"year to date The Desert Resorts CVA has provided Desert Springs with the opportunity to host several meeting planner familiarization tours in 2009. These events allowed us to showcase our resort to 92 qualified meeting planners and, to date, have generated three contracts (2010/2011/2013) producing 3,130 room nights for$742,744.00 in revenue. City of Palm Desert, Summary Report on CVA Page 2. In summary, the Desert Resorts CVA has been, and will remain, a valuable marketing partner for Desert Springs. While many destinations are reducing their marketing efforts due to reductions in TOT tax from declining occupancies, the CVA has maintained their marketing and sales efforts through the BID tax introduced in 2009. The combination of increased financial resources and experienced sales and marketing professionals makes the Desert Resorts CVA a valuable asset for Desert Springs. If you have any questions, please do not hesitate to contact me. Regards, �enneth C. xinsey(�C•) �irector of SaCes _�;� ., � � !f f�'`t�!l�l(,3 .�� _-�_ � r I�esert Springs ��GV�larriott�,esort c�Spa 74855 Country CCu6 Inrive �1'a�m Inesert, �A 92260 ZVk. 760.341.171 S �Fa.x 760341.1730 �ururw.deserts�ringsresort.com _......- -....-- __.... - - ........- -- -- - -....... -- --_.... - - - -.._....._-- - _ - -- - -.....__ , � I�Ot�, S � S I.�P.Sent `�P,S(��tS p'�J � CONVENTION AND VISITORS AUTHORITY MEMORANDUM TO: John Wohlmuth, City Manager City of Palm Desert, CA FROM: Jeff Beckelman, President& CEO , DATE: October 26, 2009 ' SUBJECT: Palm Desert/CVA Report ' John, Attached are reports of the results achieved and CVA program participation by , the City of Palm Desert and Palm Desert businesses. There are currently 127 businesses and the City of Palm Desert that are CVA Members. The Convention Sales report identifies room nights booked by all Palm Desert hotels for the last three years. �� The Leisure Sales report identified with an"X"the programs in which the City of Palm Desert and/or Palm Desert businesses participated in 2009. ' I have also included our 2009 Sales & Marketing Summary and the 2008 Annual ' Report. I will be out of the Valley early next week, but available to answer questions next Friday. Thank you. Serving the Desert Resort Communities of Riverside County Cathedral City • Desert Hot Springs • Indian Wells • Indio • La Quinta • Palm Desert • Palm Springs • Rancho Mirage ' -- _. . - _.._.... ___ _.._.. -- - - _ - _ -.... - -- _..... --- 70-100 Highway 111 • Rancho Mirage, CA 92270 • TF: 800-967-3767 • T: 760-770-9000 • F: 760-770-9001 • palmspringsusa.com Washington, DC Sales Office • 515 King Street, Suite 315 • Alexandria, VA 22314 • T: 703-549-8026 • F: 703-519-7579 ' - __ - ___- _ -..___. -- --.. -- - - - - -....... _ - - _ __- -.: � 0 N � N O O � � � � � N N N N O O O O O O O O CO 00 �1 � � O cD � � � � �D � a � � y � � � � � � O � � � N � � ° v N c�oo � � Q n Z � c c� o D y 3 � z � �� C) � � � N � � � � � � v r � N CN?t O � N � �D y C71 � W Q' �' O�D � � � O O � Z cQ s rt � X X X X X X X X X X X cn w w N N .+ u .-� u �C �C C"�. '� P \ Cn Cn ? ? ? \ \ \ \ N '�' \ \ \ \ \ \ \ \ \ .+ \ \ \ � \ ^ .-+ N N \ \ w Cn --' �-' ^ ,—, �+ G� u �-' . 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'Y� �Ym� �� . 4 = „�-'tY :S ,7 '+1 ,,. . .. ,:, . . .. ,._. �... - - • �n: ... ...,,,._._.._. � .. � .. .. . .. . .._.. . . ._.,.,a.:...._._.. _.. ���e-"'�'.','3P*' „ ... - ..._rn.,a.....�_........,..�... ..�. . ..._.,.,,.r-•—�-------- �,�,,,,...,�-.•�.� *^.�..' .. -.v.M.' t �.,r . -�,«.��..:.� } ,��, .»- ,y_, ._ . ._... .. .+ ���� .�.:.,. K...:. � �^WltPi�*i.:::.. .:. . '_ .� . .. .t9Y:i,;,ik*.. ` :>9 � ,'�"iz"W' . , � . ` - • - "�'9,:. r-,: .m�+t'�.�Y'�M� r .. � � .� ` � � � � � .. • • ' � � ' . � . • � • • • � • � • � � Dear Hospitality Business Associates: This Executive Summary contains a synopsis of the various convention sales and marketing, travel industry sales, advertising, media relations and membership � �. opportunities found in the Palm Springs Desert Resort Communities Convention and � Visitors Authority's 2009 Marketing Plan. J' These marketing programs serve to unify the local hospitality community through , the CVA's efforts by providing increased leverage as we together promote our destination's brand and your individual businesses. Now more than ever, we � encourage CVA members to partner with us in direct sales programs that allow a greater reach to customers and clients at a fraction of the cost it would take to participate individually. This document also lists the many 2009 CVA convention and tourism trade shows and missions. Many permit member participation while others are scheduled for ` staff attendance only. Listed also are 2009 Membership activities that provide CVA Members networking and educational opportunities. Like the CVA Marketing Plan, this is a living document that changes with market conditions. The CVA will communicate additional opportunities as they develop throughout the year. As always, the CVA's mission is to provide the hospitality community with a broad scope of marketing initiatives that would not otherwise occur without a joint effort. We hope you as CVA Members will use this schedule to maximize your own marketing programs and will join with the CVA to explore new opportunities to fulfill your own goals and objectives. � . We wish you a wonderful and productive 2009. ' JANUARY rt�KUAKY , nnHrc�h ANx�L 4-7 • PS International Film 24 • MPI-NCC 4-5 • ConferenceDirect 1-2 • HSMAI's AfFordak Festival FAM �an Fr�r � �isco, ��;� ��a � ' �it��o, C,�ti Meetings Mid-Am � � .��- ' ' �:�; `�'� 25-26 • Northern CA Road � 25 • MPI-SCC Annual Meeting ��I ic�_��-;o IL 0 11-14 • PCMA Show &Tradeshow 5-7 • NEMICO 2009 � '� - - - ��A , _ �-r,�nc� _,� �o�'� �� � . c , ���r< �� _ _ '�..�,- � , �; � , i <, � ��,� � � y - „ _ � � 27-30 • RCMA 26 • Destinations Showcase 26-28 • California FAM 16 • Springtime in the P � o �� �r� , ':." k��. . GWSAE a V �r-,� ;c�, , _. �. ., , - �� ,�,r_ ,.i �_,'�_�� � V °� 19-22 • Third Party FAh � �N 1 Q� � � � . . ._.i �,., , i` �c� 27-29 • CaISAE 4th An a� � Conference , n,�, a' � _ _ _ _._. __ _ _ _ 5-9 • PS International Film 2-3 • Black Diamond Planning 2-4 • Expo Vacaciones/CTTC TBD • LA Receptive Op Festival FAM Meeting � "' Event � x . � � . _ . �� �eti� F�a�" �i��"�,� �,_� �k'���� �-� 9 • CTTC- UK Trade & Mec�ia �� ' ���� ' '� ' 7-12 • ABA Marketplace 19-21 • Bank Travel Conference Sales Day 16-20 • Coachella Musi =I���a �. rte >��� i,rr. E; � �� �� ', ���'�;n�l Festival FAM 20-23 • TAP Regional Show 22-24 • TAP Regional Show 11-15 • ITB/CTTC 24-27 • Stagecoach Mi ,� F i,_,. ,. . ;�_ � ��� , ��_� E,�Ir�� �"%� r_�n,� Festival FAM a� � 0 22-26 • Bob Hope Chrysler 27-3/1 • L.A. Travel Agent 25-28 • AAA FAM -a N Classic FAM FAM 30-4/2 • TIA Travelcom � � � 23-26 • AMEX FAM �� TBD • Sales Calls � �;�I��,r;,, ����, � i.s �'�A � V � 26-29 • Go West Summit 30 4/2 • Sales Mission � c �,��,,,� ,,,� � ,,,� � TBD • Sales Mission i ,� � �I�i�,� ;� �:i : a � 27-28 • CTTC Commision � o Meeting �� ���� f i � , � , .�. . � 28-30 • WestJet Call Center Training ,'�-_, ��a� ,d�7 � � _ _ ___: _ _ __ _ _ __ _ __---- —_ 2009 California Visitors Guide 8 • Los Angeles Times Travel 8 • Los Angeles Times Travel 19 • Los Angeles Times Section Section Section 2009 CA Visitors Guide Air Service Development Los Angeles Magazine: Campaign , Getaway o Southern CaliEornia Radio & �A-Palm Springs � Television Barter Air Service Developmen a� � Campaign Campaign a� �.�j E Drive Market Billboard Southern CaliFornia Rad rn � . Campaign Television Barter '� U Expedia Online Campaign Campaign a� CTTC Banner Advertising Drive Market Billboard ,� Campaign a Expedia Online Campai CTTC Banner Advertisinc � - . _ _ _ __ . _ _ _ _ _ 15 • Meet & See 5 • Meet & See: Extreme Home 5 • Meet & See: Chakra 3 • Meet & See: Indian a 22 • Membership Orientation Fitness 19 • Meet& See: The Art Place Art Festival � s 18 • Meet& See: Montage 26 • Membership Orientation 23 • Membership Orier � -°o � Healing Arts 23 • Spring Mixer c W d � 18 • Membership Orientation U � 26 • Annual Luncheon - , 1 _��� . ����a � - _ _ _ _. ___. _ __ _ _ __ _ ---- _ _ _ . __ _ _ _ N 1-3 • CTTC NYC Press Event & 9-13 • CTTC UK Press Event & 21 • CTTC LA Press Eve a o Media Calls Media Calls 27-30 • Pacific Northwc � 'o , 24-26 •CTTC Inbound German Calls � � Press FAM � n�AY i _ �u�t . .� �u�r I ; ,y��u�i � . � ; 4-7 • Spring FAM • 10-11 • HSMAI's Affordable., . � 11-14 • MPI-WEC "�`- i 15-18 • ASAE Annual Meeting �a PSDRCCVA � � Meetings West j Salt Lake Ciiy, UT i i & Exposition i San�ose, CA TBD • Northeast Sales Nlission i Toronto, Canada ' 13 • lbth Annual Incentive ! Invifational FAM, � 22-24 • Pacific Northwest , II Boston/Pittsburgh TBD • Southeast Sales Mission ! PSDRCCVA I Road Show � I Atlanta, GA � Pacific Northwest � � , ; TaD 5 Dallas Sales Mission � TBD • D.C. Sales Mis�jon � � i Washington, D.C. � � � � � � ' TBD • Northern CA Road Show j r � San Francisco/San Jose, CA ; - - � :! � : I � � j � � ��. : � :-� .�� _ _, , ` j �` I — . tor � 16-20 • Pow Wow �I 1-4 • TAP Dance 2009 � � 13-17 • Sales Calls ; ! 28-9/1 • SYTA ' Miami, FL TBD f Norfhwest � � Norfolk, VA , i*' ' TBD • Sales Calls � 4-6 • NTA Spring Meet�� , i 4 ' I TBD • Sales Calls � ; Los Angeles, CA . Monterey, CA �� ` j Los Angeles, CA � 29-31 • Travel,Agent FAM 12-14 • Receptive Tour j ', ` TBD • German FAM ' , � Operator FAM i � � � " . i i , � � � � ..-� - � � ' ., � _... � ` ` ` :. , s .� . ,.. i �,- i ' � { • � i � . I , � _ I , , � � ' ; . , ; I � , _' � , vel • Los Angeles Times Travel ; 7 • Los Angeles Times Travel � 12 • Los Angeles Times Travel � 9 • Los Angeles Times Travel - Section Section Section Section -- i Air Service Developmen#� ;: 21 • Los Angeles Times Trave{ 26 • Los Angeles Times Trdvel 23 • Los Angeles Times Travel i Campaign Section • � Section Section • . Southern CaliFornia Radio&. Air Service Development � Air Service Development Air Service Development Television Barter Campaign I Compaign Campaign Compaign Southern California Radio &' Southern California Radio 8� Expedia Online Campaign � � Drive Market Billboard � Television Barter � I Television Barter -° � CTTC Banner Advertising Campaign Campaign, Campaign � Expedia Online Campaign , ' Expedia Online Campaign Expedia Online Campaign - � •-_. '} � CTTC Banner Advertising CTTC Banner Advertising " � CTTC Banner Advertising , ' i i CTTC Summer Trips -.{ , 1 ' � L.A. Confidential � i � t� �, -- ---- — - . : i _ _ _ Ils 7 • Meet& See: TBD � 11 • Meet&See: TBCS '- , 23 • Membership Orientation 6 • Meet&See:TBD � 21 • Membership Orientation` 25 • Meet&See:TBD � 23 • Summer Mixer 20 • Meet&See: TBD �� � , 28 • Meet&See: BL Ranch &- 25 • Membership Orientation � ```' - 27 • Membership Orientatior� ' Jordans Catering - ; - ' ' ,� - � . i ;� ` _ i i � ' f ; ,. -- � � _ � ` � --.�- _... � , �,�_� ; . � � 18 • TIA Pow Wow Media � � ' � ! Marketplace � � • � ress � I . , � _ -j � I � , ; , _I � i � � � I , � . __ . _: , _ _ „ �_ . ,` . , , . , , , y, , 1 , , . . Jtl'I tMtSCK � VI..I VDCR. i I�kJV CIVIDCR � VCI.CMDCK � . � � , � i � I 9-10 • HSMAI's Affordable i 7-10 • Insurance FAM �'� 8-11 • Pacific Northwest/B.C;`" 2-5 • Incentive FAM Meetings National, 'i PSDRCCVA I FAM '� PSDRCCVA '. ,;h�nglon, D.C. ' TBD • DC Sales Mission &Golf ! PSDRCCVA � ��'! 9 • CaISAE Seasonal � 14-16 • Southern E-aliFornia �'i Event- Desert Invitational �', 15-19 • F.I.C.P. I Spectacular Road Show ' Washington, D.C. Toronto, Canada � Sacramento, CA � ;,;I,�m Cal�fornia TBD • Fall FAM , 27-29 • LG Skins Game FAM �5 • Holiday Showcase 2009 29-10/1 • IT&ME, The ', PSDRCCVA . j Indian Wells, CA II Chicago, IL Motivation Show I i ��_a��o, IL . � I ' � � � � � '; _. , � , I , � � I --{-- —4--—--- — i-- -�-- - -- �5D • Addison Travel Show/ � 2-4 • SYTA FAM , 14-18 • NTA Annual '' 8-10 • USTOA CTTC-Fall Series � 15-18 • Canadian FAM ` ! Conference ! Banff, Alberfa, Canada �" ora<a ! ,_ � � i TBD • TIA Marketing Outlook ' 1923NVUTM/CTTC " ' � �� Forum � Shanghai, China � � TBD • Sales Calls � � � � �� Los Angeles, CA � TBD • UK FAM � � � � . � � _ , � � �i � � � I � � ' � - � � , - .i ; � 7 , ' � . � , .. - �� -- ________ 13 • Los Angeles Times Travel 4 • Los Angeles Times Travel 1 • Los Angeles Times-Travel � Los Angeles Magazine: Section � Section Section Getaway Air Service Development �! Expedia Online Campaign � Expedia Online Campaign LA-Palm Spri�lgs Campaign I CTTC Banner Advertising CTTC BannerAdvertising 1 Expedia Online Campaign Expedia Online Campaign � CTTC Banner Advertising CTTC Banner Advertising � - I , . i � . _- I � �. � � � _. �1 I � i ,l i � , � �,.. �� : i � � ----� . , � - -_. -- -----1 _ ___ --_---- __---- � . ------ ------- -- 10 • Meet&See: TBD � 22 • Membership Orientation�� 12 • Meet& See: TBD TBD • Holiday Business 24 • Meet& See: TBD ' `� 29 • Fall Mixer ! 19 • Membership Orientatiort ! Reception + 24 • Membership Orientation ', ` i i , i . ! , , i ��I ' i , i ------- --- � ,_ ___------ �---- -- --r-------- 15 • CTTC San Francisco Press ' 4-8 • CTTC Inbound UK Press 1 Event FAM I � � ` , � � � � ` i , � � � � �i �' ; � " � ¢y�`. l N�{�d�t�d �- �'�'�` C . rs w����,,.._ � � � �:>�°s t , ',.h,� �rs�;: �.. sss '' r."'e..',`. ;,� 1 �t,�t�a;, . �R"�;� �. ��. . , �a F �� � ,'��r . . . ��. t �` �' .� .t'�'.r�y ,;.,r,.... � 9' ! 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' , r ' � ••'y,� � ��� , ����� � � � _ , .!�• ��. �. - ., ,_ ..., � � ���, • + r� .. � " � � •��� ��- � '` # �. ��,. � .,•.. .,� L . � R •� �rsb^.�es5'�•,..,.; .... ...�..�.. .nsu+��,�s',,.,w�.a��wr� �. ��� ro_� ��im�a�m�ac�m.e�srr.u.�- �..:�:�<�. •vw ; � � « . „ ... .. ,.»w-.. .. . . � �` `.. ._.. ��� _ ��. . _ �.� ,� � . � . ;�`° . - - � ..E , - , - . . .. . � - .. `,�'�, y § s ' ��} �� �i ` . '"'"� V � �£ „.. � . . •. .. .r�` .. � " ' . +. .%� � �� ���� . .., � - .. x"�§'. . . �. ..� ��. t � :.. �. . ` � � � ° ,,t.... ,+, . . .......�..... .. ,�.... • �. . . �.m ... r,. . ' 4"-. ,.r�: � � � � � � � � .. � � � • • ' � • • • • • � � � � • � MEETING THE CHALLENGE Service • Val ve • Experience DEAR CVA MEMBERS AND FRIENDS, � Zb describe 2008 as a turbulent year would indeed be an understatement. Given the state o our nation's economy and its dire impact on consumer and business spending, tourism throughout not only the United States but the world has experienced great setbacks over the last 12 months. However, the CVA as an organization has continued to forge ahead and accomplish some rather remarkable achievements in a year marked by adversiry. Of note, CVA staff and our hotel partners surpassed their 2008 goal for convention room night sales by reaching more than 108 percent. While the outlook for 2009 bookings remains as challenging as ever, the success of 2008 gives staff great momentum as we move into the New Year. [n December, the CVA hosted the desert's largest-ever international travel conference, when more than 700 travel buyers and sellers from over �0 countries attended the United States Tour Operators Associati�n's (USTOA) Annual Conference. The three-day event gave high-profile exposure to participating CVA Members and attracted press coverage throughout the region. 'To date five tour operator companies have added PSDR to their product lines, one of which represents a 1,�50 room ni�ht per year program that has booked the desert for five years. 'I'he CVA also made history in 2008 by establishing the first-ever Palm Springs Desert Resort Communities Tourism Business [mprovement District (BID). The BID, which hinds the CVA through a new 2 percent assessment of gross hotel room sales, allows for a major reduction in the ��rganization's traditional funding method from '1"ransient Occupancy Ta�c ("I'OT). 'The result is a much- needed increase in the CVAs budget, from about �66.2 million to an estimated $9.8 millicm, allowing for a broader scope of future sales and marketing initiatives that will benefit the destination. Such landmark achievements cleserve to be recognizeci on behalf of an organization that is not ��nly meeting new challenges, but continues to reposition its leaciership role in the Valley's tourism inciustry. In this report, you will find figures and highlights from an accomplished year. Make no mistake, however, that the CVA remains successful because of its Members, whc�se personal involvement allows us to fulfill our mission of bringing new and returning business to a world-cenowned resort destination. VUe look forward to working with you in 200), and wish all CV�� Members continued success. , G. C�C� H��r]�Y i�-� ��.%�';�C'�J� �'='ri Q ��K��f���,Ql"I i �h i ��,��n �f�al man N F ��� r�` P � FO !��. E�i;ri�� �c �'� ml `;F' f�OS��t ��1 ��,ff', 'J(� �US �SS , � _ i , � r� COUnCII ���I"^ JpIN���jS �i�SE�f `� �r)f ���f�.r��r'iIF�S ��IL' \ . . - a . . . � . . - 2008 HIGHLIGHTS CONVE NTION SALES • 'Che CV.1 and Members attended TL1s:lnnual POW V4'OW in:lnaheim,C:�. • Comention Sales Staff,together with liotef partners,confirmed meeting and ���otal y9 appointments were conducted anci 48 leads geiierated. convention bookings resulting in 263,322 room nights for the Valley. • TIS staff attended 14 tradeshows,conducted 6't7 personal meetings,and • Stuff distributed 880 sales leads,totaling 818,7>7 room nights for�otential generated 147 leads. • TI5 staff hosted 13 F:4Y1s/site visits for l92 clients,from eight countries. firture business. • Con�ention Serviees Staff rovided services to more than l05 rou�s ' P��m Springs Producers,an accredited educational website created for P g 1 travel agents in?007,generated 1,603 travcl agent enroilees,and 97R representing 75,744 attendees. - • In February,)une,and September,the CV.a held California RoucLshows in graduations,representing 48�5 States and eight cowitries. Vorthern and Southern California.9pproximately 15-�0 meeting plamlers • The Desert communities hosted CaITLKs Conference on Tourism.The CV9 attended each event. hosted the Opening Reception Teoilrght/o iGhite:�'ight—d CelebrrNioit of • In May,18 corporate and association meeting planners attended the CV�1 Desert G'hu.Ca(TL1 President Ross Hutchings said"the event�vas possibly Spring FAM,��hich generated approsimately 3,500 tentative room nights. the best reception ever producect for C�dTU1." � • ln October,?5 meeting planners attended the CV�1 Fall F.�t which generated • '►'he Desert communities hosted L'STO:Cs:�nnual Conference.ind approrimutely 2,000 tentative room nights. 1�Iarketplace.The GVA hosted the reception:V�t�lnrght at fhe Oasis.Robert • In October,the CVA sponsored a 1r�ashington DC Sales:Nission and 2nd W"hidey,President—[;ST0�1 said,";NfAnigl�t at tbe Oasis was the best :�nmial client Golf[nvitutional for 20 meeting planners. industry e��ent I have been to in the 30 vears of this organiiation." � • Concention Sales Staff and nine desert partners attended December's �`- � CuISAE's Seasonal spectacular in Sacrumento,generating more than 1,300 �EMBERSH�P � tentative room nights.Delegates enjoyed escellent foot traffic and lead • 183 Members joined the CVA in 2008,brin�ing total Niembership to i2Z � � production thanks in part ro the presence of a li�e reindeer in the PSDR • The CVa obtained 344 renewal Memberships in 2008,up l7%from?007. booth. � • The blembership Dept.obtained IO146 of overall budgeted revenue in 2008 from b�embership ancl udvertising. MARKET�NG �' • 13 CVa Meet an¢See,Nini Misers were held,allowing Cv:1 Members to � DR/VE:NIRKET PRINT promote their businesses to 479 CVA Members. �� • The CV\ran print ad�•ertisements in the L.A.Times,San Diego Union � • 11 CV:1 Member Orientations were held at CV:a headquarters,���ith a total -� � Tribune,Orange Counry Register,.arizona Republic,Sunset Magazine and attendance of 3>0 C��4�Ylembers. Los:�ngeles Confidential,reaching a total of 2,163,000 readers. • The CVA hosted quarterly mi�ers and a�lnual events with 774 attendees. • The CV�1 underwrote a nine week Barter Ad�ertising Program valued at ; � $250,000.Participating hotels traded.>%of unsold hotel rooms in return A�M�N�STRAT��N �-. � � for radio and television advertising in the SoCal drive market. • Increased CV.a funding beginning in 20O9 by the creatiun of a Tourism :�IR Sh.R6'ICE DEVELOYYIENT CtLtifPA1G1V Business Improvement District(BID).The BID secures a broader scope of . • The CVA launched the 2008�ir Ser�•ice Development Campaign to increase f�rture sales and marketing initiatives and give the Desert's tourism industry uir ser��ice to PSP and boost tourism during low seasons.The campaign more competitive positioning with similar Southwest destinations like Las � targeted key Pacific vorthwest markets,promoting�11aska�tirlines via radio �'egas,Phoenix/Scottsdale,San Diego,and 1licson. and online advertisin�and promotions.L`pon completion of this campaign, • [nitiated steps to increase contributions to the CV�1s reser��e fimd for the microsites had received 7?,557'page�iews,36,052 first time visitors, improced tinancial stabiliry. au�d 11,454 returning visitors • Launched�n upgraded computerized general ledger system to keep CV,1 (,�4L/FORNIA TRt3VEL v TOURIS,Yt CO�Y1�Y1/SS70N(CTTC)PROlYIOTlON,S accounting methocis current ti°ith technology. • :�s a cooperati�e effort with participating city partners and CTTC,the • Fine-tuned the ne��ly etpanded CVA website with search engine optimizxtion, �, destination has reached 1,715,000 readers with the?009 California Visitor's pay-per-click adcertising,and micro-sites for bieeting Sales and Travel Guide,'fravei&Leisure,�Iational Geographic Traveler,Food&Wine,the (ndusiry promotions. �ne�v Expedia booking engine was launched on the Vancouver Sun,und an:American Express Direct Mail piece (,�!.1 homepage,allowing Members and visitors a one-stop web tool. • For the first year,the CV9 ran banner ad��ertising on the CTTC website, • Began steps to improve the CVAs server hardware and software by keeping ��tivw.�isitculifornia.com.The advertisement received 880,000 impressions staff current with the latest email and networking capabilities.Sreps�vill througho�rt the year with a J8%click thru rate. also be made to improve teehnology for the CVA�1rt Department with design O.NL/NEdDVL'K"T/S/NG sofhvare and printer upgrades. � • The Expedia Summer Campuign ran from March—June:008 and included � � 17 participating properties. At the conclusion of this campaign,the MEDIA RELATIONS � � destination was up 17.44%in room nighCs and 11.96%in room re��enue on � crpedia.com.In��pril—May,the destination had exposure on the homepage • N1eld in-bound press trips for editors and writers from major national as 23 properties participated in the Homepage Spotlight Campaign. meeting ai�d travel industry oudets,includmg Successful bleetiny,s, Meetings West,SmaM yeetings,:tssociation Ne�vs,and Travel:Age W'est, �� TRAVE� �N�USTRY SA�ES Tra�el��Veekl,v,Vacation:�ent.andLuxuryTravcl:ldvisormagarines. � • In:Ipril,represented die desert at the Tra�el Industry of:Lnerica's:lnnual � • TIS staff and nine desert partners hosted the I lth:lnnual Los.ingeles pOW�C'OV4'in Las�'egas,Ve�ada.Fleld press appointments witl128 writers Recepti��e Reception and!4tini Tradeshow for 5?inbound tour operators. from arounct the globe. • The CV:1 attended the:lmwal 1�arriott[nternatiomal Sales 1lission, • :�tisisted 601 domestic and international press requests�vith press trips conducting 40 sales meetings�aith top international tour operators. and/or storti de��elopment for a total�S'�,404,458 advertising equivalency. I � �Palm Springs Desert Resorf Comm�mities CONVENTION AND VISITORS AUTHORITY � The Ceserf Resort Ccmmunities of Riverside County: � G"I HE�Pi-L U i( DFS� `,FRn:C�S� ii�vir 7`,w..._ f��i� �A..�.� _.. _,E�CvT r P , .,r Blt� -� ;�IC i . ..�ut-�:;E � . ,,, � - .� . E _ .: . �. . � �� �- ;�v � t .. .--- , ,. , ` , , , _ ; . ; ;y ,. ECONOMIC RED FLAGS CALL FOR CREATIVE AND AGGRESSIVE TOURISM MARKETING /�1'Buh_llrrri'u. lY'1.����h�r:�'_llUrkel/�tl��//r�,��iri�� \lith economic��aes highlighted e�er����here one looks these d:ns. it'�difficu(t tu ��he cit�of Indi�tn�lells.home tu futn•resort hotels. is projecting simil:u•results. consider��hut tu espect in the��e.u•:ihead���ith a"gla;s half full" appniuch..1n "\1�e are anticipatii�;a'S"�,reduction in tourism bttsed re��enue in the current fiscal exumination uf ke��performance indicator,along��ith di,cussiuns���ith hu;pitalin� ��e;u•.";u}�s Cin�lana�er Gn;�luhnson.".1nd���e e�pect it��ill prubabl�sta�the same Ie.tdeis iu the rc;�ion fi�om�:u�iouti sectuis of the indu;u•� re�eals a�er��stressed for the fullo«im�fiscal��ear.,.,I'he pruj�cted drop isn't slu���ing do�cn Indian Uclls� m:u•ketplace.in most respects.l�es.there.u•e sume�er��uod thin�;s huppenin!�out ��ell-respected nr.u•ketin;m�tchine. "�Ce:u�e uctu.dl} incn.tsing our 7'1�ad��ertising there—frum cuntinuing enhaneements ut PtiP to the hundreds of millions of dullurs effurts and�eo-targeted p.n�per clich lnternet m:u�ketin��and doim�e�en more � «�orth uf hoteL entertainment:tnd dining��enue reno�atiuns und ne��de�elupments co-up m.u�ketin� �cith otn� hotels. iucludim� the promotion uf puckuge uffu� � recentl�cnmpleted or in the pipelint to th��ne�� Business Imprucement 1)isn�ict c��mbinin!,ruom ni;hts�uid gulf at Indian A1i�lls Gulf Resort.":tdds►uhnson. (BID)th:it«ill s;reatl��bul,ter the C��-�'s m:u•keting budget. � Othrr,. likc Brad Poncher. General �lana�er of Hiiton Hume���ood Suites iu La � � � � �)uinta..ur plannim;for a flut��c.u•in salc;und Re�1'\R in?uU9 but not a bi,�drop. � .���e�cere in ramp up mode�cith a ne�� hotel throu�huut?008 so ir�s hau•d to �<' , ���,,, `'`�� e,timate��actic hu��«e'll conipare guim�fur��.�rd bec�ui����e're,till ruinping up." � � ��,.''~� _� 3 a :".� , ' �� � �� ?. q .:tid Pon�her.��\1e�lid e�tremels���ell in�:inu�u•��(�0�19)and louk;�ond tur the rest ��-=.° � �`�.' � :3'� �,;;'�': . � uf lhe;e.�,un in I,vge p.u�t due tu the ma�ur e�rnt.,uch ts the La l)uinta �•ts �� �� �� � � Festi�al.t'r.inh Sinatr.t;ulf tnurn.tment.Bob Hupe Chr��sler(I.is>ic.the B.AP P:u�ibus • Upen tennis tournamrnt.thi Cuachella:u�d Sta��ecu:tch Festi�:ils.:uid n�:u�}�i�thers. `'�;; � In R�uichu�lira��e.the ci��';�(.u�ketinn�Lin.i!.;er Ruhert Barreit nute,tha�thruu�h Vo�i uiber last����.u•the cit��s�fU'I'��;is 9°�„ahead of_'UU�and ui�cupanc}�held,nvnk. ,, .,�'� .1Ce're s�ill nut�r�here�ce���:uit to he hecause of Ih�!�enerul econumic cunditiuns, B;u•rett suid. "Hu���e�er.���ith nee��pruduct u�ail<ibie like ih�:A��ua Cali��nte Resurt tlutel�Spa and 1'he tihu�� (the ne«�:1�ua C.tlirnte Huiel cuncert��enue) :tnd:t cuntinu�d marketim�cmph:isis un ���ell tur;eted se��ments���ithin the Suuthern C:tlifurni:t th•i��e m.u�ktt���e e�pect tu cuntinue duing���ell... � U tlie buutiyue hotel le��el,L;wra 51ip�,ik,u�vner uF�fhe�IOU Resurt.s;ns�h:t[?00�) n�ill likel�not be us;oud of a y�eur us last�rar.��hich��as e�cellent tur her.'Becuuse � _ ,. of uw•publicity�in numeruus�,�ublic.ttiun>and��rbsite,and rrcent�nr:u•�Is fi•om a,'.-++,;�<��� �N ` Trip.1d��i,or.�ce ha��e!�cnerded.t lut of buokings.'sa��s 5lipak. �� "'~�:.�, _.. Fur the!�ruup bu;iness. the added pres;ure uf recent media,crutim�uf mujur corpor,uiuu meetiugs make,thim�s e��en more ch;dienging.���I'he perceptiun ia th.tt 7'he consensus umong industr�� leuders is th.it!.;roup businrs, �rill be se��erel�� re;urt based meetin,�s are ezn:nugant." s.ns)tie Ue�re, Uirector uf tiales and impacted for:tt least the remainder of?009.and the independent Ieisure tr.i�eler �����'hetirn�at Il�att Grand Champions Resurt in Indi:u��C'ells.'�Our fi�cuti is keeping �e��ment is likel�tu fall uff substuntiall��tuo. thou�;h results might be helped b� ��� tuuch��ith people���ho ha�e meetin��,lined up in the tuture tu muke sure���e . prutect��h;u�r�e;tlreud��h:i�e, rrdirected. a�!�ressi��e el�forts tu atn:�ct e��en more Suuthern Californians to the � desert. �1t's>ur�i��al nf the iittest ri�ht no���in the��ruup busincss."s.n�s D.id:i."\Ce need tu fhruu!�huut inost nf?002i.ihe Cuachella���ille��'s totu�hm industr��.�is measured b�� �lelicer top le��el;er��icr:ind ezceed e�ptetanun,and���e ha�e tu be prcpared to du de�ert resurts huleJ metrics, farrd tiurprisin��l�����ell!�i��en the difticult economic "�hate��er���e cin�it the I:ut minute tu,ccure custumers.�����ho:u�e uften huukin�,:�t clim:tte. Occupanc��. acera��e dail� rute faDR) and re�enue per :n�uilablr ruom the last minute. f Ile�P\R)�cere;tll in line�cith Ihe de,ert'�competi[ice set uf cities.drstinatiuns>uch ,tti Phutnn L ts 1t�as. Lo, 1n�eles. Vii.uni.,tnd tian Ui<<<� Here in Ihe�:tlle�. the �IIU�u�uip inc�� r.tte (thruu�h�oremher) ��,tti du���n ju,[6.6'�,uccr the precinus ��� �'� � �car.«hil< <tccr.t};e ilxil�r.ite.in�l Kr�I?\R fcll u,����.:uitl h 9 ietip<<ti�elt. ite�� ' �'I� \u�� lhe bad ne���s: A�utenihrr uf?UII;�sa�c a 16����.declinr in uccup:tnc�prrcenta��e rump.urd lu Au�ember of?011,an�l.AUR fur the month��:is du���n.�.;°„fi•om 3U0- Ir�cls.��hil�Re�P111 fell IS S°,,.�fhe,e;uberin��fi�wrs su�,�e,t thu�ne:u•It�all uf las[ � ��car�s duline cume in thc fin:tl munth>of the�c;u�, pus[-meltdu��n. and paint a discuncer(in;picturc fur 31)09. �,�';���� i I �;, 1 , lccurding tu�irtu�ill� ecer�une inter��ie��ed fur this.u•ticle,the ke�s to���inninr the h:utic;iguinst the nc�.ui�e ccunomic furce;that.u•c slu���in;;both the Icisurc and i �„ruup m:u•I:ets ure re-doublim�cust�,mer,er�ice��nd enhuncin�nuu�ketin�efforts � �o hct�cr t�u��et thuse that r,tn aiid��ant tu bunk�ac:itions and meetin!�s. � I�\cn>u.mam indutiu•�Ic.tdus arc pl:inning fur.t��c.u•:ihc:id in��hich pu•form�incc � r � i � � is m,uched inore clo,el� ��ith the latter p�u•t of 300R th��n the �.u•lier pur�inn. .,� �.�.' � lcrur�lin;�tu_AICib D;ida.fenei:il�l:ui:iger uf[he Ililtun Palm Springs.his hotel,a« � �U°� dcrlinca n�unfh to munih in d�e fall bc�innin;;in ticp�cmbcr.Uada nu�c;.��\II Ccrtuinl�.the re�ions in thc simc compctiti��e sei.�s thc Co.tchella 1allc�.u�e!�oin!; � ru,iun�crs—c�cn uur In�al repc:it�ucsis—:u�e asl<in��ior bi,;di>coun�s:uid b,u�!�ain tu bc duin!,��hatc��cr thc� r,in tu bolster��itiih�tiun in ihc cumim�}c:u•and hc��ond. � � �I�•als su��c;u•c pruje��tim„t?0"„decre:ise fur the fir,t ti munths ol_'U0�)and c�pect Hut the� heiter he re;�d� for a b:itlle��ith the desert��here the indusn�� is>I:uidin� I tu be du«n�"��din�ln,�c.ich ofthe LuC+munih�of lhe��ear.�� iip ro thr chullen;e;ind«�url�ln!�h:u•d tu t;�ke m;u•F.�t nh,u•e cueh;ind r��er�d:i�. � � i 1 � i I GOALS & ATTAI NME NTS 2008 Annual: Goal Attainment Attainment CONVENTION SALES Room Nights 242,750 263,322 108% Tentative Room Nights 850,000 818,757 96% I Leads 993 880 89% I CONVENTION SERVICES Registration provided to more than 205 groups. Attendees: 75,744 TOURISM SALES & MARKETING Leads Total Leads 150 147 98% FAM Tours* 12 1 1 92% `RcpiesenGs 1�18 cl�ent particpan�_<.from I 0 cou��tries Sales Promotions/Advertising Industry Buy-in Co-op $471 ,225 $441 ,660 94% MEMBERSHIP Membership Income Renewal $334,000 $370,437 110% New $ 140,000 $ 1 15,013 82% Total Membership Income $474,000 $485,450 103% Total Membership: 522t ��� : � � � ,.�:�,s �F��.���,� � � MEDIA RELATIONS Print �alue $5, 100,000 $4,404,458 86% Media Assists 550 601 109% Circulation 60,000,000 73,363,026 122/0 � FINANCIAL HIGHLIGHTS _ __ _ _ _ _ _ _ REVENUE 2008 Actual Revenue % of Total 2008 Budget Revenue % of Total Public Sources $4,546,094 74.67% Public Sources $4,666,640 74.98Go Private Sources Private Sources Membership Dues $485,450 7.97% Membership Dues $502,400 8.07�0 Advertising $741 ,038 12. 17% Advertising $750 510 12.06% Other Revenue $ l 02,524 1 .68% Other Revenue $9l ,759 1 .47% Board Approved Reserves $212,851 3.51 % Board Approved Reserves $212,851 3.42°� Total Revenue $6,087,957 100.00% Total Revenue $6,224,160 100.00% EXPENSES 2008 Actual Expense % of Total 2008 Budget Expense % of Total Administration $ 1 ,570,371 25.84% Administration $1 ,813, 126 29. 13% Membership $433,012 7. 12�o Membership $412,405 6.63% Market Development $1 , 127,703 18.55% Market Development $1 , 170,705 18.81 °� Travel Industry Sales $904,569 14.88% Travel Industry Sales $868,014 1 3.95°0 Convention Services $ 144,430 2.38% Convention Services $ 150,667 2.42°0 Convention Sales $1 ,898,01 1 31 .23% Convention Sales $ 1 ,809,243 29.07°io Total Expenses $6,078,096 100.00% Total Expenses $6,224,160 100.00% fiP?in 7 e OI'a L 1 7JCYi�r"�d��7Jf2ti, ti� ,,.�ibe":O!r F�ri. � � :UC�! � �5h�l.�,y! VALLEYWIDE PERFORMANCE * 2008 2007 % Change Occupancy Percent 57. 1 % 61 .3% - 6.8% Average Room Rate $ 129.8 3 $13 l . 10 - 1 .0% RevPAR $74. 19 $80.42 - 7.7 `Source:Smi�h Travel Reseaich Table B-5 describes the largest employers in the City. Table B-5 CITY OF PALM DESERTt LARGEST EMPLOYERS (As of August 2009) Estimated Companv Product/Service Number of Emplo.�es JW Marriott Desert Springs Resort Hospitality 2,000 Heckmann Corp. Non-Bank Holding Company 1,811 Guthy Renker Corp. Call Centers 825 Securitas Security Svc USA Inc. Security Services 700 College of the Desert Education 711 Desert Valley Industries Screen Printing 400 WalMart Super Center Department Store 350 William Bower Associates Security and Patrol Services 350 Macy's West Department Stores 300 Bighorn Golf Club Golf Resort 250 Costo Wholesale Clubs 250 KDI Elements Tile Contractors 250 Breanne At J. Russell Beauty Salons and Services 200 Indian Ridge Country Club Private Golf Course Community 200 Marriott Shadow Ridge Hospitality—Vacation Rentals 200 Palm Valley Country Club Golf Course Community 200 Riverside County Sheriff's Department Sheriff's Department 200 WasteManagement Inc. Solid Waste Disposal and Recycling 200 �' Federal and State Government not included. Source: I InfoUSA.com,a service of infOGROUP. � � III. EXECUTIVE SUMMARY o Scottsdale's bed tax revenues o Annual occupancy for the totaled $9,278,713 in 2008, down Scottsdale/Paradise Valley market 4.8 percent from 2007. area in 2008 was 61.0 percent, down from 66.6 percent in 2007. o The market area has absorbed o The percentage of room revenue to nearly 3,500 rooms since 1999, total hotel revenues in 2008 was 62 reflecting the overall health of the percent. local tourism industry. o The average room rate in 2008 was o In the past 10 years, the bed tax has $172.26, an increase from the 2007 generated over $79 million in average of$170.59 per room. revenue for the City of Scottsdale. o Hotel/motel sales tax revenues for Scottsdale in 2008 fell 6.1 percent from last year, totaling $8,698,169 in collections. • • �,'�;g���p - � 1 1' •� • • - �• � • � . ��'°sYQ'+''=fras.2 . . . • . . . . • . - _ ' ��' � � - '�• 1 ' Best 1Nestern Papagolnn 7017 E. McDowell'Rd. BestWestem.com 58 2 The Boulders 34631 N. Tom Darlington Wyndham.com 160 3 Chaparral'Suites 5001 N. Scottsdale Rd. Chaparralsuites.com 311 4 i Comfort Inn 7350 E. Gold Dust Ave. Choicehotels.com 123 5 ' Comfort Suites 3275 N. Drinkwater Blud. Choicehotels.com 60 �. .�...,,,, .., _ . .. �., _ 6 Country Inn& Suites 10801 N. 89th PL Choicehotels.com 162 7 ; Courtyard by Marriott (Mayo) 13444 E. Shea Blvd. Marriott.com 124 8 ' Courtyard by Marriott (Old Town) 3311 N. Scottsdale Rd. Marriott.com 180 9 ; Days Inn 4710 N. Scottsdale Rd. Daysinn.com 167 10 ` Extended Stay America 15501 N. Scottsdale Rd. Extendedstay com 120 ;__ ,,..., m ...� ,,.� ....... . .. ... _. ..._, �..,...,� ,.,... . ... . 11 ; Extended Stay Deluxe � 10660 N. 69th St. Sierrasuites.com 106 12 Fairmont Resort 7575 E. Princess Dr. Fairmont.com 649 13 ; FireSky Resort& Spa 4925 N. Scottsdale Rd. Caleoresort.com 204 14 `' Four Seasons Resort 10600 E. Crescent Moon Fourseasons.com/scottsdale 210 15 Gainey Suites , 7300wE Gamey Suites Dr Gaineysuiteshotel.com 162 .... ... _ ......... ......... 16 Hampton Inn Scottsdale 10101 N. Scottsdale Rd. Hamptoninn.com 130 17 ;: Hilton Garden Inn(Old Town) 7324 E. Indian School Rd. Hiiton.com 199 18 ; Hilton Garden Inn (Perimeter Ctr.) 8550 E. Princess Dr Hilton.com 122 19 ', Holiday lnn Express 3131 N. Scottsdale Rd. Holidayinnarizona.com 170 20 Homestead Scottsdale 3560 N. Marshall Way stayhsd.com 121 m,..n��m .�... , ._.,._�,. . __r �,._ �,r.. �.,,. .....,, 21 ' Homewood Suites by.Hilton 9880 N. Scottsdale Rd. Homewood-su�tes.com 114 22 ; Hospitality Suites 409 N. Scottsdale Rd. Hospitalitysuites.com 210 23 ; Hotel lndigo Scottsdale 4415 N. Civic Center Plaza Hamptoninn.com 126 24 Hotel Scottsdale 5101 N. Scottsdale Rd. thehotelscottsdale.com 218 25 Hotel Valley Ho 6902 E. 1st St. Hotel�ralleyho.com 193 26 Hyatt Place (Old Town) 7300 E. 3rd A�. hyatt.com 127 27 �; Hyatt Regency Scottsdale 7500 E. Doubletree Ranch scottsdale.hyatt.com 490 28 " The Inn at Pima 7330 N. Pima Rd. zmchotels.com/az/pima.html 123 29 La Quinta 8888 E. Shea Blvd. Iq.com 140 30 ; Marriott at McDowell Mountain 16770 N. Perimeter Dr. scottsdalemarriott.com 270 ,._�.m�.-.��.._m�.,..._.�� „ �n,n�� —�� .�.. n...,._F.��m� __ 31 S Marriott TownePlace 10740 N. 90th St. Marriott.com 131 32 ; Millennium (McCormick Ranch) 7401 N. Scottsdale Rd. Millenniumhotels.com 160 33 ' Mondrian Scottsdale 7353 E. Indian School Rd. Mondrianscottsdale.com 189 34 : Motel 6 6848 E. Camelback Rd. Motel6.com 122 35 i' Ramada Limited 6935 E. 5th Ave. Ramadascoftsdale.com 92 ._. _ ._ 36 Residence Inn Scottsdale North 17011 N. Scottsdale Rd. Marriott.com 120 37 � Residence Inn Scottsdale/PV 6040 N. Scottsdale Rd. Marriott.com 122 38 i' Scottsdale Hilton Resort &Villa 6333 N. Scottsdale Rd. Hilton.com 235 39 � Scottsdale Marriott Suites' 7325 E. 3rd Ave. marriottsuitesscottsdale.com 243 40 i Scottsdale Park Suites 1251 N. Miller Rd. scottsdaleparksuites.com 95 ;.. _..._ _. _ _ 41 c Scottsdale Resort& Conference Ctr. 7700 E. McCormick Pkwy. thescottsdaleresort.com 326 42 i Scottsdale Resort &Athletic Club 8235 E. Indian Bend Rd. scottsdaleresortandathleticclub.com 85 43 ; Scottsdale Thunderbird Suites 751b E. Butherus Dr. thunderbirdsuiteshotel.com 120 44 : Scottsdale Links Resort 16858 N. Perimeter Dr. scottsdalelinks.com 228 45 ;; Scottsdale Villa Mirage 7887 E. Princess Blvd. Villa-mirage.com 224 • +. . - • 11' �• � � � - �• � • � . 1 � . � . - . . . . . . . � . . - 46 Sheraton's Desert Oasis 17700 N Hayden Rtl. starwoodhotels.com[sheraton 300 47 ' Summefield Suites 4245 N. Drinkwater Dr. Wyndham.com 164 48 ' Three Palms Resort 0asis 7707 E. McDowell Rd. scottsdale-resort-hotels.com 115 49 I W Hotel 7277 E. Camelback Rd. starwoodhotels.com/whotels 224 50 ; Wingate Inn&;Suites 14255 N. 87th St Scottsdalewingate.com 117 51 Xona Resort Suites 7677 E. Princess Blvrl. Resortsuites.com 483 Total Scottsdale Properties 9,444 52 ': Doubletree Paradise Valley Resort 5401 N. Scottstlale Rd. Doubletree.com 378 53 Hermosa Inn"' 5532 N. Palo Cristi Dr. Hermosainn.com 35 54 : InterContinental Montelucia 4949 E. Lincoln Dr. icmontelucia.com 293 55 Marriott JW Camelback Inn 5402 E. Lincoln Dr. Marriott.com 453 56 '; Sanctuary Resort on Camelback 5700 E McDonald Dr. Sanctuaryaz com 105 _. . -.._._ _ _ . .._; ..... _ � ___. 57 Scottsdale Cottonwoods Resort 6160 N. Scottsdale Rd. scottsdalecottonwoods.com 171 58 : Scottsdale Plaza Resort `' 7200 N. Scottsdale Rd. Scottsdaleplaza.com 404 59 ' Smoke Tree Resort 7101 E. Lincoln Dr. Smoketreeresort.com 26 Total Paradise Valley Properties 1,865 60 f aloft Tempe 951 E. Playa del Norte Dr. starwoodhotels.com/aloft 136 61 ' Best Westem 1nn of Tempe 630 N. Scottsdale Rd. bestwesternarizona.com 103 62 ' Carefree Resort&Villas 37220 N. Mule Train Rd. Carefree-resort.com 369 63 Comfort Inn (Fountain Hills) 17105 E. Shea Blvd. Choicehotels.com 48 64 i CopperWynd (Fountain Hills) 13225 Eagle Mountain Dr. Copperwynd.com 42 65 ; Country Inn & Suites (Tempe) 808 N. Scottsdale Rd. countryinns.com 83 66 Courtyard by Marriott (North) 17010 N. Scottsdale Rd. Marriott.com 153 67 ; Desert Ridge Marriott (Phoenix) 5350 E. Marriott Dr. Desertridgeresort.com 950 68 : Faifield Inn (North) 13440 N. Scottsdale Rd. Marriott.com 132 69 ; Hampton Inn/Suites (North) 16620 N. Scottsdale Rd. Hamptoninn.com 123 .,. .� __. ..._.._.�. . . ._�. _ �._. . . 70 , Hampton Inn/Suites (Tempe) 1429 N. Scottsdale Rd. Hamptoninn.com 162 71 ; Holiday Inn (Fountain Hills) 12800 N. Saguaro-6lvd. Holidayinn.com/fountainhills 104 72 Inn at Eagle Mountain 9800 Summer Hill Bl�d. innateaglemountain.com 42 73 ,: Motel 6(Tempe) 1612 N: Scottsdale Rd. Motel6.com 100 74 Orange Tree Golf Resort (Phoenix) 10601 N. 56th St. Orangetreegolfresort.com 160 75 The Phoenician (Phoenix) 6000 E. Camelback Rd. thephoenician.com 643 76 Quality Suites 1635 N. Scottsdale Rd. qualityinn.com 140 77 ; Radisson (Fort McDowell) 10438 N. Ft.McDowelF Rd. radisson.com/ftmcdowellaz 246 78 ' Royal Palms Inn (Phoenix) 5200 E. Camelback Rd. royalpalmshotel.com 119 79 Scottsdale Camelback Resort (Phx) 6302 E. Camelback Rd. Scottsdalecamelback.com 111 I _m _ __ _ . - _ _ -- 80 Sleep Inn (Phoenix) 16630 N. Scottsdale Rd. Choicehotels.com 107 81 ' Springhill Suites (Phoenix) 17020 N. Scottstlale Rd. Marriott:com 123 82 Westin Kierland Resort (Phoenix) 6902 E. Greenway Pkwy. Kierlandresort.com 732 Total Other Market Properties 4,928 Source:City of Scottsdale,Economic Utality Department *These properties do not pay bed taxes or hotel sales taxes to the City of Scottsdale,&not all are included in the Scottsdale market data. **Currentlyunderrenovation. Completion expected Fa112009. ��9g ;, ��p - � 11• •� • • - �• • • • . • cy�:' y. VI. TRENDS IN ROOM INVENTORY Room Supply Table 4 reflects hotel room supply inventory for the study market area since 1999. The market area room inventory expanded every year from 1999 to 2003. Market area room inventory declined in 2004 and 2005 for the first time since 1996. However, the market overall has grown by over 27 percent—nearly 3,500 rooms— during the past ten years Table 5 shows the room inventory of the City of Scottsdale by category. . . - . . . � � ..- 1999 ' 8,313 2,174 2,268 12,755 2000 8,731 2,174 2,245 13,150 2001 8,732 2,172 2,344 13,248 2002 8,769 ; 2,174 4,149 15,092 2003 9,035 (' 2,172 4,277 15;484 2004 8,848 � 1,835 4,166 14,849 2005 8,932 � 1,598 4;141 14,671 2006 9,021 1,564 4,679 15,264 2007 9,167 1,572 4,606 15,345 2008 9,444 1,865 4,928 16,237 Source:Smith Travel Research(STR�;City of Scottsdale,Economic Vitality Department Note:Only hotel properties with 25 or more rooms are included . � - ' • • • � - � • • • i. - / I: Resort 3,939 42% . ,,, Full Service 2,080 22°/a , . _ _.... Limited Service 3,425 36% Total 9,444 100% Sou rce:Smith Travel Research,Economic Vtality Department *Only Scottsdale bed-tax paying properties counted. "�.��, - . 11• . � � � - •. . . � . .�s!� ���. . . - . - - . . .. - ,;,.. . . - . . �- - .- ��: s Resort 61% 56% �I 65% ` � _. _ _ j ,;<. Full Service 19% 20% 18% " ... . . ..... . .. . . . ....�_..... . Limited Service 21% 24% 17% \ Total 100% 100% 100% Sou rce:City of Scottsdale,Financial Services Department,Tax Audit Division � Note:Percentages may not add up to I00%due to rounding I��, Chart 2 � 2008 Hotel Revenue Streams City of Scottsdale i Privilege Tax Paid , , �< i� Bed Tax Paid , , ' Total Revenues Paid � 0% 20% 40% 60% 80% 100°/a ! ■Resort�Full Service�Limited Service • .��d��l�� • 5�$� ���, - � 11' •� • � - �• • � � . '�ii3i�9jNil�� a�afi9;3aesa,. III. EXECUTIVE SUMMARY o Scottsdale hosted an estimated o The top ten activities participated 8.1 million visitors in 2008, with in by Scottsdale visitors are (in an economic impact of $3.6 order):shopping, day trips, art billion. galleries & museums, Native American arts & culture, o The City of Scottsdale was Western culture & attractions, visited by nearly 6.9 million day outdoor desert activities, special visitors in 2008. events, nightlife, sporting events, and spas. o The typical overnight leisure traveler to Scottsdale is 57 years o The total number of visitor-nights old with a median household spent in Scottsdale hotels in 2008 income of $101,600. These was 6.5 million. visitors come primarily from the West, the Midwest, and the o The average room rate for market Northeastern regions of the United area hotels in 2008 was $172.26, States. and occupancy was 61.0 percent. o Tourists to the Scottsdale area o Scottsdale received a fiscal return have a tremendous impact on of about $1.20 from visitors for revenue for the City. Privilege tax every $1 spent in operating costs collections attributable to visitors in 2008/09. This is significantly for FY08/09 totaled an estimated lower than in previous years, $29.4 million. primarily due to the national economic downturn. �' ��'r��,��A;r�;.. ��, �ye • aPo. 9A ��'s�9 ' � �' 11' • ' � � � � � . �,, III. EXECUTIVE SUMMARY o Scottsdale hosted an estimated o The top ten activities participated 8.1 million visitors in 2008, with in by Scottsdale visitors are (in an economic impact of $3.6 order):shopping, day trips, art billion. galleries & museums, Native American arts & culture, o The City of Scottsdale was Western culture & attractions, visited by nearly 6.9 million day outdoor desert activities, special visitors in 2008. events, nightlife, sporting events, and spas. o The typical overnight leisure traveler to Scottsdale is 57 years o The total number of visitor-nights old with a median household spent in Scottsdale hotels in 2008 income of $101,600. These was 6.5 million. visitors come primarily from the West, the Midwest, and the o The average room rate for market Northeastern regions of the United area hotels in 2008 was $172.26, States. and occupancy was 61.0 percent. o Tourists to the Scottsdale area o Scottsdale received a fiscal return have a tremendous impact on of about $1.20 from visitors for revenue for the City. Privilege tax every $1 spent in operating costs collections attributable to visitors in 2008/09. This is significantly for FY08/09 totaled an estimated lower than in previous years, $29.4 million. primarily due to the national economic downturn. � � �, �; m�,. • '4$'9�EIiS���6 ���:�€���� • � �• 1 1' • - �• • � � . w :��,,. �;;�:.:. Total Visitor Expenditures Table 4 (p. 17) summarizes total visitor The total direct expenditures by visitors in expenditures in Scottsdale in 2008. The the City of Scottsdale in 2008 amounted daily expenditure rate per person from to over $1.4 billion. By applying a Table 3 is multiplied by the percentage of multiplier of 1.5 in additional indirect those expenditures that are actually expenditures, the total direct and indirect made in the City of Scottsdale. The figure spending by visitors in Scottsdale in 2008 is then multiplied by the total number of was approximately $3.6 billion. visitor nights, from Table 2, to determine the total expenditures made by Scottsdale visitors. Did . ou know? ��The visi�pr.l�idustry provides ' an esfimated$29.4 rnillicrn : (approximately 20 percerit)of tatal privilege tax colle�tic�ns ! ' ,�. �;t!%i� � � � �:� � �; � ����, � a'; y , �' i� , �V � �:�. � dr� � � p'�i�� � i kr�� �i��'li � i , x � �^,..""r �y£�� I i i,..: pl i � �`�.,M� . 1 t�?31� �' � �I, • 6�'iS;l�:�.� • �'��E'�s;°d;�'':i - • •- 1 1• • - �• • � • . �v�—�,'1,�;j�' . � - � . • � - � • � � . � • • • • i. - / / : / / • Resident 89.9% $216,213,447 - - Hotel Visitor 6.6% - $15,906,371 - Day Visitor 3.5% - $8,426,877 - Tota I 100% $216,213,447 $24,333,247 $240,546,694 Source: City of Scottsdale, Economic Vitality Department �`Refer to Table 6 *�`FY 2008/09 General Fund adopted budget for direct public service City departments (i.e., police,fire, community service, and municipal services) totaled $240,546,694. �°'�'°Resident Share plus Visitor Share Cost/Benefit Analysis Scottsdale visitors make a significant than the tax revenues received by the contribution to the community's economy. market area from visitors (refer to Table Even with the difficult economic 5). In fact, it is estimated that the environment that strongly affected Scottsdale treasury received about $5 tourism worldwide, direct expenditures by million more than it expended in support visitors to Scottsdale totaled an of visitors, resulting in a benefit/cost ratio estimated $1.4 billion for 2008 (refer to of$29,386,984 to $24,333,247 or 1.2:1. Table 4). Using a 1.5 multiplier, the total economic contribution (direct and indirect The Scottsdale visitor is a cost-effective expenditures) of visitors to the addition to the community because for community is approximately $3.6 billion. every $1 the City spends in operating costs to serve its annual visitor Sales tax and bed tax payments by population, it receives $1.20 in return. Scottsdale visitors in FY08/09 amounted Historically, this ratio has been to about $29.4 million. These are actual significantly higher, but the 2008 dollars that go into the City treasury. recession impacted Scottsdale resorts Visitor sales tax and bed tax represented and hotels especially hard. However, approximately 20 percent of Scottsdale's despite the recession, tourism remains a total sales, use, and bed taxes. key Scottsdale economic component with a strong return on investment to the city. In FY08/09, the City of Scottsdale spent an estimated $24,333,247 million in operation costs to support its visitors (refer to Table �. The cost of supporting market area visitors is substantially less �F� �I;:'a'a�Ea S�::��; • � 1 1 • �• • • � '='JR�`Y�'..;�. Gibson, Paul From: Jermain Presnell-Lowe[JPresnell-Lowe@palmspringsusa.com� Sent: Friday, November 06, 2009 10:40 AM To: Gibson, Paul Subject: FW: CVA Information requested by Councilmember Attachments: all member palm desert11 09.xis ,}{L�cut.L. �f o��tT�u%he,l��: �ri,ra�a.i�ea�,L'cuue ?lfce.%'�eeiuleat aad C.I�ie�.tu��0�� .%'afin Sp�e 17eeex�./?eanxl�'ammua�liea L'?lll 70-700��fuyi 7>1 ./�a,rclfa✓lfi�ra�e, L'lZ 92270 ,17�%recE�760-969->303 .fa�•7G0-969-1310 u�wu�¢ureurfaflfedeae�.ccrin ----------------------------------------------------------------------------------------------------------------------------- The information in this message and any attachments may be proprietary andlor confidential,and protected from disclosure. If the reader of this message is not the intended recipient,or an employee or agent responsibie for delivering this message to the intended recipient,you are hereby notified that any dissemination, distribution or copying of this communication is strictiy prohibited. If you have received this communication in error,please notify the sender immediately by replying to this message and deleting it from your computer. -----Original Message----- From: pgibson@cityofpalmdesert.org [mailto:pgibson@cityofpalmdesert.org] Sent: Friday, November 06, 2009 8:55 AM To: Jermain Presnell-Lowe Subject: CVA Information requested by Councilmember lermain: Mayor Pro-Temp Cindy Finerty requested the following information: 1. List of hotels currently participating and hotels that have indicated that they will participate. T1�.i.�l.i�t"i�fv'avvv�c�.i,wi�De.�e.►'t. �e�i,w l�ai,c�arPi co-vLt�-i,lrci.t'�va�u.ntcu�i,Ly. Embassy Suites Hotel= f 198 74-700 Hwy I11' : Palm Desert,CA 92260` - Marriott Desert Springa � 895 74855 Eountry Club Drive Palm Desert,CA 9226Q; ' , Residence Inn by Marriott 130 3&308 Cook Street '� Palm Resert,CA 92Z11 Shadow Mountain Resort 125 i 75-750 San Luis Rey Palm Desert,CA 92260 Best Western-Palm Desert Resort 152 74-695 Hwy 111 Palm Desert,CA 92260 Total 1500 1Von-Convention Pro�erties Agency Name #of Rooms Courtyard by Ma�riott :>. . •- _ : . .'151 i 7¢89S Frank Sinatra ITriv� `. :� , . - , Palm Desert,EA 9221�-"`' , � Fairfield Inn 113 72-322 Hwy 111 Palm Desert,CA 92260 Hampton Inn&Suites gg 74-900 Gerald Ford Drive Palm Desert,CA 92211 Holiday Inn Express 129 74-675 Hwy 111 Palm Desert 92260 Homewood Suites 12g 36999 Cook St Palm Desert,CA 92211 International Lodge 52 74-380 El Camino Palm Desert,CA 92260 Which ones do not want to participate and is there a means that the City could cover that cost. l�O�i vLdt i,w UaicL ar�►�.at co�vi,tYax,c�i,vu�vo�lu�vt,tari,l�y. C�,urrent�y thP,r�i�vw-ntiea,w�1�' th�Ci.ty to-cantv�alu.t�thP,i,r po�rt'w-vv o f th�BID. 2. How much is the current group paying into the 2% BID? WPiGWei fOYeCl.�.�'wt,c�$T60,000. �TY th.Pi ,ye.�W Of 2009. How much extra would the additional hotels pay in if they participated? rh+��-i�aw u�v�w w h,��at thi.�t'�.me�, hawe�ver i,t co�.+.ld�l�b-etweP,w z $300,000. av�$410,000. c�epe���c�wvcc�an,� ancL�lD►2 1�3�'h�».ra a.r��p ro�ri,e,tary, the.re fo-r'��to-fvreca�t a,c,cu�'ateLy. 3. How much reserves do you have within the CVA and BID? I understand that the BID is only one year old, so that you may not have any extra reserves due to that program. 01.t.y' CU.�'YP.YI�"v'P�P.�''VPi YP.G�U.i.�''P,G�i� �v���lo� ofror�z-w�t��4To,000. o� �►-�z-p�,�o-w t►�a.c�to-pu.t- Lw e�c,ce�o f$Soo,000. ad,d,i,t'�o-vtia.L�,w r�ewe.�lrri�u�(�,n,�o�.r r�erve.� ta- a}�p ra�u:vh.a�eLy $1,3 00,000. by yea.�' P,v�.di. 4. Comparison between our current method of payment to you versus if we switch to the BID methodology? c r,urr�►�x�y yo�w cwPi Iri;u�,�eted�to-pay t�i cv�l $s 2 2,z 2 2. Lw fot�r q u.art-e,rl y pa�yvrtie,nt�o f 205,5 55.50; thi�i�o f ca�+�r'�d�e�^���A�c�u.c�'G°�leC'�''-°'�' a,v�c�tru.�u�; u� ar d.aw w. I f yo-w pa�'�ate�i,w th� BI� alL�ID v�u�vLi,�.�woy,�cQvn�fro�m�th�hatel� a�.cL th�Ci,ty pcy'w�.ev�t wo�t,tilaL lr�a�v�.iy o�v�qu.a�v'tef- a f tI�a.v�,h.u.a,L a.��,ot,i.h.t ar $2 0 5,5 5 5.5 0 ( o f co�r.u�'�i b�a�e,cL owv w r �owv av►,d'A�v�u.+.aL tv'►,�.e'u� of� ) 5. It appears that under the CVA Joint Powers agreement that no matter which program you belong to CVA or BID the methodology to leave the program would be the same 13 month notice. Is this correct? YP�r 6. Who are the non-hotel business participants from Palm Desert in the CVA? We will need this by the beginning of next week. Please email that you received this. Sincerely, J au� S. C�oart Finance Director/City Treasurer City oF Palm Desert 73-510 Fred Waring Drive Palm Desert, C�192260 (760) 3�6-06ll, Ext. 320 New e-mail address: pgibson@eityofpalmdesert.org ----------------------------------------------------------------------------------------------------------------------------- The infortnation in this message and any attachments may be proprietary and/or confidential,and protected from disclosure. If the reader of this message is not the intended recipient,or an employee or agent responsible for delivering this message to the intended recipient,you are hereby notified that any dissemination, distribution or copying of this communication is stridly prohibited. If you have received this communication in ercor,please notify the sender immediately by replying to this message and deleGng it from your computer. 3 Account Address 1 � The Penta Building Group 44-250 Monterey Avenue The Art Place 41-801 Corporate Way DESERT ADVENTURES TCP#007028S/Activities& Events on 74-794 Lennon Place Suite A The Living Desert 47-900 Portola Avenue COD Alumni Street Fair 43-500 Monterey Avenue Big Wheel Tours/TCP#21325 PO Box 4185 Santa Rosa & San Jacinto Mountains National Monument 51-500 Highway 74 Adventure Hummer Tours/TCP#21791 42-335 Washington Street Suite F121 Five Star Adventures, Inc. /TCP#21937 42-335 Washington Street Suite F 369 LakeView/Desert Springs, A JW Marriott Resort&Spa 74-855 Country Club Drive Mikado/Desert Springs, A JW Marriott Resort& Spa 74-855 Country Club Drive Ristorante Tuscany/Desert Springs, A JW Marriott Resort&Sp�74-855 Country Club Drive Castelli's Ristorante 73-098 Highway 111 Ruth's Chris Steak House 74-740 Highway 111 California Pizza Kitchen/Palm Desert 73-080 EI Paseo Suite 8 Morton's The Steakhouse 74-880 Country Club Drive Tommy Bahama's Tropical Caf�and Emporium/The Gardens o 73-595 EI Paseo Suite 2200 Sullivan's Steakhouse 73-505 EI Paseo Suite 2600 Pacifica Seafood Restaurant at The Gardens on EI Paseo 73-505 EI Paseo Suite F 2608 Chop House/Palm Desert 74-040 Highway 111 Oasis Bar&Grille/Desert Springs, A JW Marriott Resort&Spa 74-855 Country Club Drive The Lobby Bar/Desert Springs, A JW Marriott Resort& Spa 74-855 Country Club Drive Castelli's Ristorante 73-098 Highway 111 Costas/Desert Springs, A JW Marriott Resort&Spa 74-855 Country Club Drive Tommy Bahama's Tropical Caf� and Emporium/The Gardens o 73-595 EI Paseo Suite 2200 Desert Map 8 Aerial Photo 73-612 Highway 111 Desert Springs, A JW Marriott Resort& Spa 74-855 Country Club Drive Desert Falls Country Club 1111 Desert Falls Parkway Desert Willow Golf Resort 38-995 Desert Willow Drive Big Wheel Tours/TCP#21325 PO Box 4185 Marriott's Shadow Ridge Resort 9003 Shadow Ridge Road Classic Club • 75-200 Classic Club Boulevard Five Star Adventures, Inc. /TCP#21937 42-335 Washington Street Suite F 369 Funseekers 73-865 Highway 111 Desert Map &Aerial Photo 73-612 Highway 111 DESERT ADVENTURES TCP#007028S/Activities& Events on 74-794 Lennon Place Suite A The Living Desert 47-900 Portola Avenue Wes�eld Palm Desert 72-840 Highway 111 Castelli's Ristorante 73-098 Highway 111 California Pizza Kitchen/Palm Desert 73-080 EI Paseo Suite 8 Sun Dunes Villas 40-215 Harris Lane Desert Falls Country Club 1111 Desert Falls Parkway TMM-The Meeting Manager 77-570 Springfield Lane Suite D Leeds& Son Fine Jewelers 73-670 EI Paseo Desert Wllow Golf Resort 38-995 Desert Willow Drive Hotel Timeshare Resales 74-924 Country Club Drive Suite 120 The Gardens on EI Paseo 73-545 EI Paseo Suite 2500 Tommy Bahama's Tropical Caf� and Emporium/The Gardens o 73-595 EI Paseo Suite 2200 Pacifica Seafood Restaurant at The Gardens on EI Paseo 73-505 EI Paseo Suite F 2608 TRAVELHOST Magazine PO Box 4568 Marriott's Shadow Ridge Resort 9003 Shadow Ridge Road Desert Entertainer 41-995 Boardwalk Suite L2 Rochelle Marie's Events by Design PO Box 11941 EI Paseo Shopping Avenue 74-333 Highway 111 Suite 106 First California Bank 78-000 Fred Waring Drive Suite 100 Kaiser Restaurant Group 74-361 Highway 111 Suite 5 Classic Club 75-200 Classic Club Boulevard Five Star Adventures, Inc. /TCP#21937 42-335 Washington Street Suite F 369 Saks Fifth Avenue/The Gardens on EI Paseo 73-555 EI Paseo Executive Errands PO Box 2782 Wells Fargo 74-199 EI Paseo Suite 100 Desert Empire Insurance Services 77-564 Country Club Drive Suite B401 S.I.R Palm Springs-Studio Instrument Rentals 74-830 Velie Way Suite E planit reprographics 77-738 Flora Road Quantum Event Hosting PO Box 386 All About Massage, Inc. 74-125 Highway 111 About Face Medical/Vein Specialists Institute 44-530 San Pablo Avenue Suite 100 Spa Desert Springs, A JW Marriott Resort 8�Spa 74-855 Country Club Drive Cardiff Limousine &Transportation/TCP#6941 75-255 Sheryl Avenue Desert Springs, A JW Marriott Resort& Spa 74-855 Country Club Drive Embassy Suites Palm Desert 74-700 Highway 111 Fai�eld Inn by Marriott 72-322 Highway 111 Sun Dunes Villas 40-215 Harris Lane Mojave Resort 73-721 Shadow Mountain Drive Casa Larrea Inn 73-771 Larrea Street International Lodge/Studio Condos 74-380 EI Camino Inn at Deep Canyon � 74-470 Abronia Trail The MOD Resort 73-758 Shadow Mountain Drive Holiday Inn Express/Palm Desert 74-675 Highway 111 Hotel Timeshare Resales 74-924 Country Club Drive Suite 120 Residence Inn by Marriott 38-305 Cook Street Club Intrawest 1 Willow Ridge Courtyard by Marriott/Palm Desert 74-895 Frank Sinatra Drive Marriott's Shadow Ridge Resort 9003 Shadow Ridge Road Hampton Inn &Suites 74-900 Gerald Ford Drive Desert Vacation Rentals and Sales 74-133 EI Paseo Suite 7 Executive Errands PO Box 2782 Homewood Suites by Hilton 36-999 Cook Street Cardiff Limousine &Transportation/TCP#6941 75-255 Sheryl Avenue The Art Place 41-801 Corporate Way Desert Map &Aerial Photo 73-612 Highway 111 DESERT ADVENTURES TCP#007028S/Activities& Events on 74-794 Lennon Place Suite A The Living Desert 47-900 Portola Avenue COD Alumni Street Fair 43-500 Monterey Avenue The Gardens on EI Paseo 73-545 EI Paseo Suite 2500 Big Wheel Tours/TCP#21325 PO Box 4185 Santa Rosa 8�San Jacinto Mountains National Monument 51-500 Highway 74 Adventure Hummer Tours/TCP#21791 42-335 Washington Street Suite F121 Five Star Adventures, Inc. /TCP#21937 42-335 Washington Street Suite F 369 Funseekers 73-865 Highway 111 Desert Cities Woman's Show 44-220 Grand Canyon Lane Quantum Event Hosting PO Box 386 The Printing Place 41-651 Corporate Way OCB Reprographics 77-734 Country Club Drive Suite G-2 TRAVELHOST Magazine PO Box 4568 First California Bank 78-000 Fred Waring Drive Suite 100 Building Industry Association Desert Chapter 77-570 Springfield Lane Suite E Wells Fargo 74-199 EI Paseo Suite 100 Desert Empire Insurance Services 77-564 Country Club Drive Suite B401 Globally Locally Online Marketing Solutions PO Box 4435 Point Loma Credit Union 34-460 Monterey Ave Suite 105 AAmonte, Inc. 42-580 Caroline Court Suite B WCBS4Color.com 38-180 Del Webb Boulevard Suite 115 Defined Image, Inc. 77-622 Country Club Drive Suite P planit reprographics 77-738 Flora Road Kimco Staffing Services 44-100 Monterey Avenue Suite 202 DESERT ADVENTURES TCP#007028S/Activities& Events on 74-794 Lennon Place Suite A The Living Desert 47-900 Portola Avenue Brier& Dunn 74-333 Highway 111 Suite 103 Castelli's Ristorante 73-098 Highway 111 ' PRA Destination Management 41-625 Eclectic Street Suite 01 FedEx Kinko's 72-795 Highway 111 California Pizza Kitchen/Palm Desert 73-080 EI Paseo Suite 8 Presentation Services Audio Visual 78-015 Wildcat Road Suite 106 Desert FaIIs Country Club 1111 Desert Falls Parkway TMM -The Meeting Manager 77-570 Springfield Lane Suite D Arrangements Floral & Party Designs 73-816 Dinah Shore Drive Spherion Staffing 73-140 Highway 111 Suite 7 Epic Entertainment 77-622 Country Club Drive Suite N Destinations by Marriott/Desert Springs, A JW Marriott Resort 8 74-855 Country Club Drive Desert Willow Golf Resort 38-995 Desert Willow Drive The Gardens on EI Paseo 73-545 EI Paseo Suite 2500 Desert Personnel Service, Inc. 73-350 EI Paseo Suite 205 Tommy Bahama's Tropical Caf�and Emporium/The Gardens o 73-595 EI Paseo Suite 2200 Floral Design 77-682 Country Club Drive Suite H ACCESS Destination Services 77-530 Enfield Lane Suite C1 IceMagic PO Box 10899 TriCord Tradeshow Services 77-919 Las Montanas Road Adventure Hummer Tours/TCP#21791 42-335 Washington Street Suite F121 Palm Springs Destination Services 73-091 Country Club Drive A4-75 Kaiser Restaurant Group 74-361 Highway 111 Suite 5 Classic Club 75-200 Classic Club Boulevard Five Star Adventures, Inc. /TCP#21937 42-335 Washington Street Suite F 369 Event Support Services, Inc. 77-622 Country Club Drive Suite P Imagine Imagery 278 Strada Nova Windy City Sandwich Co. 75-110 St. Charfes Place Suite 9 Signs By Tomorrow 73-850 Dinah Shore Drive Suite 101 Daryl Frazier 42-335 Washington Street Suite 385 Fisher Wireless Services 41-995 Boardwalk Suite I PAS Services, Inc. 77-530 Enfield Lane Building H-1 Enchanted Memories 72-270 Highway 111 Suite B7 Steele Tradeshow Services 77-775 Jackal Drive Suite F The Branded Basket 74-074 Jeri Lane S.I.R Palm Springs-Studio Instrument Rentals 74-830 Velie Way Suite E ComSerCo Communications 39-665 Entrepreneur Lane Suite A Palm Springs Plastics 41-910 Boardwalk Suite A-5 Quantum Event Hosting PO Box 386 DMG Promotions 78-206 Varner Road Suite D132 LakeView/Desert Springs, A JW Marriott Resort& Spa 74-855 Country Club Drive Mikado/ Desert Springs, A JW Marriott Resort&Spa 74-855 Country Club Drive Ristorante Tuscany/Desert Springs, A JW Marriott Resort&Sp�74-855 Country Club Drive Castelli's Ristorante 73-098 Highway 111 Costas/Desert Springs, A JW Marriott Resort& Spa 74-855 Country Club Drive LG's Prime Steakhouse/Palm Desert 74-225 Highway 111 Ruth's Chris Steak House 74-740 Highway 111 California Pizza Kitchen/Palm Desert 73-080 EI Paseo Suite 8 Morton's The Steakhouse 74-880 Country Club Drive Cuistot 72-595 EI Paseo Tommy Bahama's Tropical Caf�and Emporium/The Gardens o 73-595 EI Paseo Suite 2200 Sullivan's Steakhouse 73-505 EI Paseo Suite 2600 Pacifica Seafood Restaurant at The Gardens on EI Paseo 73-505 EI Paseo Suite F 2608 Chop House/ Palm Desert 74-040 Highway 111 Kaiser Restaurant Group 74-361 Highway 111 Suite 5 The Cork Tree 74-950 Country Club Drive Oasis Bar&Grille/ Desert Springs, A JW Marriott Resort& Spa 74-855 Country Club Drive The Lobby Bar/Desert Springs, A JW Marriott Resort& Spa 74-855 Country Club Drive Applebee's/ Palm Desert 74-999 Frank Sinatra Drive McCallum Theatre 73-000 Fred Waring Drive Sing Along Productions 38-180 Del Webb Boulevard PMB 45 Virginia Waring International Piano Competition 73-710 Fred Waring Drive Suite 201 Dancing with Our Stars PO Box 11712 GG Promotional Model &Talent Agency 77-777 Country Club Drive Suite 314 Desert Springs, A JW Marriott Resort&Spa 74-855 Country Club Drive Desert Falls Country Club 1111 Desert Falls Parkway Stand-By Golf 41-905 Boardwalk Suite G Desert Willow Golf Resort 38-995 Desert Willow Drive Marriott's Shadow Ridge Resort 9003 Shadow Ridge Road Classic Club 75-2Q0 Classic Club Boulevard Eric Redd's Golf Event Company 74-430 Abronia Trail Golfsmith 72-700 Dinah Shore Suite 200 Costco 72-800 Dinah Shore Drive Westfield Palm Desert 72-840 Highway 111 Leeds & Son Fine Jewelers 73-670 EI Paseo Tommy Bahama's Tropical Caf�and Emporium/The Gardens o 73-595 EI Paseo Suite 2200 EI Paseo Shopping Avenue 74-333 Highway 111 Suite 106 Saks Fifth Avenue/The Gardens on EI Paseo 73-555 EI Paseo Wal-Mart/Palm Desert 34-500 Monterey Avenue All About Massage, Inc. 74-125 Highway 111 Greenberg Medical Group 44-300 Monterey Avenue Suite B About Face Medical/Vein Specialists Institute 44-530 San Pablo Avenue Suite 100 Spa Desert Springs, A JW Marriott Resort& Spa 74-855 Country Club Drive Best City Nails III 74-520 Highway 111 Suite B-2 First California Bank 78-000 F�ed Waring Drive Suite 100 Building Industry Association Desert Chapter 77-570 Springfield Lane Suite E Wells Fargo 74-199 EI Paseo Suite 100 Desert Map 8�Aerial Photo 73-612 Highway 111 Palm Desert Chamber of Commerce 72-559 Highway 111 City of Palm Desert 73-510 Fred Waring Drive County of Riverside 73-710 Fred Waring Drive Suite 222 Coachella Valley Economic Partnership 73-710 Fred Waring Drive Suite 106 College of the Desert/Center for Training and Development 43-500 Monterey Avenue TRAVELHOST Magazine PO Box 4568 Desert Entertainer 41-995 Boardwalk Suite L2 Palm Desert Visitor Center 72-567 Highway 111 Castino's Restaurant Equipment Supply 77-804 Wildcat Drive Suite B Protravel International Inc. 73-730 EI Paseo Suite B Senator John Benoit 73-710 Fred Waring Drive Choice Travel Care 74-333 Highway 111 Desert Falls Country Club 1111 Desert Falls Parkway Desert Willow Golf Resort 38-995 Desert Willow Drive Wayne Foster Entertainment 74-140 EI Paseo Suite 4-234 Madison Workshop West 73-812 Dinah Shore Drive Rochelle Marie's Events by Design PO Box 11941 Five Star Adventures, Inc. /TCP#21937 42-335 Washington Street Suite F 369 S.I.R Palm Springs- Studio Instrument Rentals 74-830 Velie Way Suite E Ashley Video Productions 44-489 Town Center Way From the Desk of Judy Vossler 760-776-6688 Q c`: judyvossler@aol.com � ��,--� x ,_-� o �.�A�� � i L:��ti�. , November 6, 2009 "' `"�`'' tr- . . � `;Y;<.�� . ....1�`,;:::' ,r. - ... City Council ._ `�'-'� ��;-: City of Palm Desert ^� ��, 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Mayor and City Council Members, As a resident of Palm Desert and a business person with deep roots in the tourism industry of the Coachella Valley, I ask you to show your support for continuing our city's membership in the CVA through the Joint Powers Agreement. The CVA Bylaws require that for businesses to be CVA Members, their city must also be a CVA Member. If our City of Palm Desert resigns, no business in Palm Desert will be allowed membership in the CVA nor will they be allowed to participate in any CVA activities or receive any CVA marketing assistance or benefits. The CVA provides a valuable service for destination sales and marketing programs in both the convention and leisure markets. Tourism is the backbone of Palm Desert; and, thereby has a drastic effect on our property values. Before February 2010, I hope you will reconsider the Business Improvement District (BID) funding plan for the CVA and vote in favor of joining with other valley cities to support this effort. The Coachella Valley tourism industry contributes nearly $1 billion to our economy each year and provides jobs for almost 23,000 people. We must maintain this industry and help it to grow by working through the CVA. Please acknowledge receipt of this letter at the November 12, 2009, City Council meeting and include this in the Council Meeting minutes. Thank you. Sincerely, ;. ; , / ' i ',� , � � udy Vossler 73-280 C Shadow Mountain Drive Palm Desert, CA 92260 CARDIFF LIMOUSINE &TRANSPORTATION o C.� � �� �b b � ���. 0 - �t. . 75-255 Sheryl Ave. i �`;��; Palm Desert,CA 92211 `� `�''��' u' . . (760) 568-1403 -v �' '• " (800) 669-0355 Outside CA � ��'� .` FAX (760) 568-0895 � _����l C�-r; info@cardifflimo.com � �^C� www.cardifflimo.com r*'+ November 6, 2009 Dear Councilman Spiegel: As a member of the CVA and the Palm Desert Business Community, I am asking you today to please continue our City's membership in the CVA through the Joint Powers Agreement. The CVA bylaws require that for businesses to be CVA members, their city must also be a CVA Member. If our City of Palm Desert resigns, no member of our business community will be allowed to participate in any CVA activities or receive any CVA marketing assistance or benefits. The CVA provides a valuable service to all of our Desert Cities by including all in destination sales and marketing efforts. Before February 2010, I hope you will reconsider the Business Improvement District (BID)funding plan for the CVA and vote in favor of joining with our other valley cities to support this effort. The BID Funding Plan increases the annual budget of our CVA, which makes our valley more competitive with added convention and tourism programming. Also, the BID reduces the City's Transient Occupancy Tax commitment to the CVA by 75%. In 2010, the City would save over$600,000.00 that could be retained in ±h�e general f�!!?d. The Coachella Valley Tourism industry contributes nearly$1 billion to our economy each year and provides jobs for almost 23,000 people. We must maintain this industry and help it grow by working through the CVA. Please acknowledge receipt of this letter at the November 12 City Council Meeting and include it in the Council meeting minutes. Thank you. Sinc rely, � � Gary E. ardiff President, Cardiff Limousine &Transportation Michelson, Wilma From: Stacey Johnson [sjohnson@livingdesert.org] Sent: Tuesday, November 10, 2009 2:42 PM To: CityhallMail Subject: Convention and Visitors'Authority Dear Mayor Spiegel and City Council Members Benson, Ferguson, Finerty and Kelly, I am writing today to urge your support for Palm Desert continuing as a member of the Palm Desert Resort Communities Convention and Visitors Authority and, in fact, to ask you to vote in favor of joining the Business Improvement District. Not only does it seem to me a prudent fiscal decision because of the way in which Transient Occupancy Tax monies will be collected and then allocated beginning next year, it strengthens the City of Palm Desert's efforts to increase tourism. As a new resident of the Coacheila Valley, I can tell you that prior to eight months ago I had no idea that there are eight diverse communities in the area. And, my friends and family who come to Palm Desert from across the United States to stay and play at the golf resorts continue to refer to it as the Palm Springs area. Being the CEO of a tourist attraction I know well how important branding is—and if there is a brand for the Valley that already works, why fight it? Several lessons I learned from zoology apply directly to business, too: First, there is strength in numbers. (Success is better assured by working toward a common goal; and when traveling with a group, your chances of getting eaten by a predator today are less!) Second, it is wise to keep one's options open. (Diverse strategies pay better dividends in the long run. A critter with a wide menu of foods it can eat is better off when the environment gets tough, as opposed to a giant panda that is completely dependent on bamboo.) The Living Desert has benefited by its membership in the CVA. In the past 18 months, eleven FAM tours have visited our park from groups all over the worid. In addition more than 30 group tours have been booked since 2008 resulting from leads provided by our collaboration with the CVA. Without the City of Palm Desert's participation in the Convention and Visitors Authority, we would be ineligible to develop those (and more) contacts with tour groups coming to the Coachella Valley. So, if you choose to opt out of the group it will have a direct negative impact on our business. Given the current economic climate, in which my coileagues at zoos outside of California are seeing double-digit percentage increases in attendance because families are staying at home and in which our park's attendance in the past year has mirrored the Valley-wide trend in being nearly 20 percent down, it seems a critical time to take advantage of every opportunity to compete for tours and tourists to choose the Coachella Valley as a destination. I have spoken with a number of hotel and resort managers in Palm Desert over the past week; and they unanimously support Palm Desert joining the BID and staying in the CVA. They believe the 2% BID assessment to be a valuable investment in the future, and I am glad they see it that way. I hope you will, too. I plan to attend the City Council meeting this Thursday afternoon in support of your consideration to remain a participant in the CVA and Joint Powers Authority. I look forward to the opportunity to introduce myself and visit with each of you. Sincerely, Stacey Johnson President/CEO The Living Desert 47900 Portola Avenue Palm Desert, CA 92260 Tel: 760-346-5694 ext. 2100 Fax: 760-568-9685 1 PENTA The PENTA Building Group, LP November 9,2009 Mayor Robert A.Spiegel The City of Palm Desert Palm Desert Civic Center 73-510 Fred Waring Drive Palm Desert,CA 92260 RE: Membership Continuation in the CVA Dear Mayor Spiegel, As a member of the CVA,the Palm Desert Chamber of Commerce,and the Palm Desert business community,[am asking you to continue our City's membership in the CVA through the Joint Powers Agreement The CVA Bylaws require that for businesses to be CVA Members,their City must also be a CVA Member.[f our City of Palm Desert resigns,no member of our business community will be allowed to participate in any CVA Activities or receive any CVA marketing assistance or benefits. We firmly believe that the CVA provides a valuable service to all of our Desert Cities by including all in destination sales and marketing efforts.The joining of all the local cities to market and service the Coachella Valley as a whole fits in directly with the Economic Blueprint for the Coachella Valley that was just unveiled by the Coachella Valley Economic Partnership. The Coachella Valley tourism industry contributes nearly$1 billion to our economy each year and provides jobs for almost 23,000 people.We must maintain this industry and help it to grow by working through the CVA,and not independently.Before February 2010,I hope you will reconsider the Business Improvement District(BID)funding for the CVA and vote in favor of joining with our other Valley Cities to support this effort. Please acknowledge receipt of this letter at the November 12�City Council meeting and include it in the Council meeting minutes.Thank you. Sincerely, Chris Brooks The PENTA Building Group ti � c-. CC: Ms.Cindy Finerty,Mayor Pro Tem � ;;`, Ms.Jean M.Benson,Councilwoman � �''-� Mr.Jim Ferguson,Councilman '� r� � _. ;� Mr.Richard S.Kelly,Councilman � t-"�;�• Mr.]eff Beckelman,CVA O r;: ; �;:.. . 'U r;'� . ; '� ., G" � N - `'-'��. . Q � .�� im; 44250 Monterev Avenue ■ Yalm Desert, CA 92260 ■ 760-176-6111 ■ Fax i 60-7 i 6-6628 California Cont. License#928543