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HomeMy WebLinkAboutHotel and Special Events Advisory CmteCITY OF PALM DESERT CITY MANAGER'S OFFICE STAFF REPORT REQUEST: CONSIDERATION OF THE ESTABLISHMENT OF A HOTEL AND SPECIAL EVENT COMMITTEE SUBMITTED BY: John M. Wohlmuth, City Manager DATE: October 10, 2013 CONTENTS: Palm Desert Hotels Map Recommendation By Minute Motion: 1) Direct staff to draft a resolution for future City Council consideration establishing a Hotel Committee; 2) Consider combining the Council Hotel Committee with the new Hotel Committee, comprised of hotel general managers from Palm Desert hotels, possibly a CVB designee, and others suggested by the City Council. Background There has been significant interest recently in the Desert Willow lot pads, as the City looks at selling the parcels due to the dissolution of RDA. The parcels cannot be sold until the State Department of Finance (DOF) approves our Long Range Property Management Plan (LRPMP), which will likely occur in November 2013. Additionally, there has been considerable interest in boutique hotel properties in and around El Paseo, specifically the Rosewood Hotel entitlement and the El Paseo Hotel interest on Larkspur. The Envision Palm Desert Strategic Plan process has provided volunteer citizen comments regarding hotel development and special events in our city. The Strategic Plan will continue developing goals, but based on the comments, it appears additional hotel properties and special events will likely be goals. Staff Report Consideration of Establishment of Hotel and Special Events Committee Page 2 October 10, 2013 I believe a revamped Hotel Committee could benefit the City by: 1) Utilizing trained hotel professionals to provide input to staff and the City Council; 2) Determining what type of events will bring tourism to our city, if adding more special events is a goal; 3) Assisting staff in developing planning and financial incentive standards for Palm Desert; 4) If the City Council places a Transient Occupancy Tax (TOT) increase of 2% on the ballot for November 2014, the Committee could assist by: a) Soliciting support from hoteliers on the ballot measure; b) Developing criteria for creation of a hotel revitalization and hotel attraction financing; c) Developing criteria for City -assisted special events. 5) Guidance from industry professionals regarding appropriate staff expertise for hotel economic development and special event coordination; 6) Determining what information and data library is required to gain interest from hotel and special event professionals. In conclusion, the roles and strategies for economic development, tourism and marketing, and financing have changed dramatically over the last decade. The City has lost redevelopment, has reduced staffing by 30%, and has lost 20% of its General Fund revenues from its peak. I would like to get input on: • What tools are needed? • What staffing and on what departments should additional assistance be placed? • How can Palm Desert compete better in this and future tourism markets? In FY 2008/2009, the City spent $1.5 million on Special Events. Again, significant budget cuts have been made starting in the FY 2009/2010 budget, both with staff and line item budgets to balance the City's General Fund budget. Staff Report Consideration of Establishment of Hotel and Special Events Committee Page 3 October 10, 2013 Obviously, such a committee would be an advisory committee to the City Council and perhaps to the Marketing Committee or others if appropriate. I would envision a nine - member committee comprised of: • Two Councilmembers • Two General Managers of hotels with over 100 rooms • General Manager of hotel with under 100 rooms • Representative from Palm Springs Life • Representative from The Living Desert or McCallum Theatre • Representative from the CVB • Others members suggested by the City Council Submitted By: CITY COUNCIL AQTION APPROVED '-" Ded�r�r, RECEIVED OTHER hn M. Wohlmuth, City Manager MEET /C) -C)G/ AYES , /eyi11On/VT, I 1 f10117 NOES: /U-0/141 ABSENT: Ai())(- ABSTAIN: ,.&(J � VERIFIED BY:,. Original on File with City t1rk's Office FAIRFIELD IN N 113 Rooms ►a. - 0 i z 0 GERAUD FORD IpmERANKKSINA MAGNESI FALL"S1D CASA LARREA RESORT TRES PALMAS BED AND BREAKFAST 4 Rooms ri HAMPTON INN & SUITES 88 Rooms 'FLED WARIINGG DR SHADOW MOUNTAIN RESORT AND RACQUET CLUB 125 Rooms HOMEWOOD SUITES BY HILTON 129 Rooms COURTYARD BY MARRIOTT 151 Rooms 'O EMBASSY SUITES 198 Rooms I BEST WESTERN PALM J DESERT RESORT 152 Rooms HOLIDAY INN EXPRESS 129 Rooms THE INN AT DEEP CANYON 32 Rooms RESIDENCE INN BY MARRIOTT 130 Rooms 'abgR�s�S-. •UNTRY CGUB_!D PALM DESERT HOTELS & NUMBER OF ROOMS HOVLEYTN it MARRIOTT'S DESERT SPRINGS RESORT AND SPA 895 Rooms Fida, - LtFORNI`A`p` DWRING DR R DATE: APRs L. 2013