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HomeMy WebLinkAboutPrelim - SA-RDA - 12-11-2014�DRAFT PRELIMINARY MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, DECEMBER 11, 2014 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 CALL TO ORDER - 3:00 P.M. II. ROLL CALL Present: Director Jean M. Benson Director Jan C. Harnik Director Robert A. Spiegel Vice Chair Susan Marie Weber Chair Van G. Tanner Present at 4:00 p.m. Reconvening: Director-elect Sabby Jonathan Also Present: John M. Wohlmuth, Executive Director David J. Erwin, City Attorney Rudy P. Acosta, Assistant City Manager Rachelle D. Klassen, Secretary Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager Casey Hartman, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bi(I Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. SherifPs Department Grace L. Mendoza, Deputy City Clerk PRELIMINARY MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING III. ADJOURN TO CLOSED SESSION Request for Closed Session: DECEMBER 11, 2014 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Prope�ty: 42455 Washington Street (APN 637-017-002), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Rudy P. Acosta/Martin Alvarez/ Successor Agency to the Palm Desert Redevelopment Agency Property Owner: Successor Agency to the Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment With Successor Agency Board concurrence, Chair Tanner adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:04 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None Note: During the Palm Desert City Council Meeting conducted immediately prior to this SuccessorAgency Board Meeting, declaration of the 2014 General Municipal Election was made, reorganization of the City Council and annual Mayoral Rotation occurred, with Susan Marie Weber being appointed Mayor (Chair of the Successor Agency Board), and Robert A. Spiegel being appointed Mayor Pro Tem (Vice Chair of the Successor Agency Board), and the rest of the roster was set, including Directors Jan C. Harnik, Sabby Jonathan, and Van G. Tanner. V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None DRAFT 2 PRELIMINARY MINUTES �� � � � SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 11, 2014 VI. CONSENT CALENDAR A. MINUTES of the November 13 and November 27, 2014, Regular Meetings of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrant Nos. 116SA, 122SA, 127SA, and 132SA. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Month of October 2014 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. Upon a motion by Spiegel, second by Tanner, and 4-0-1 vote of the Board of Directors of the Successor Agency (AYES: Hamik, Spiegel, Tanner, and Weber; NOES: None; ABSTAINING: Jonathan), the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. NEW BUSINESS A. CONSIDERATION OF A REQUEST FOR SEPARATE FUNDING FOR THE FOOD & WINE FESTIVAL PALM DESERT 2015 AND RELATED EVENT AUTHORIZATIONS (CONTRACT NO. C34090) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Economic Development Manager Ruth Ann Moore stated the Food & Wine Festival Palm Desert began four years ago in 2012, which uses the tents during Fashion Week in March of each year. The Festival consists of three afternoons over the weekend. Friday aftemoon includes a five-course luncheon that features one of the national chefs in cooking and wine pairing, and on Saturday and Sunday afternoon is the grand tasting event. The Festival has grown in stature 3 PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 11, 2014 and cache with its alliance of the James Beard Foundation. Last year's event included 23 celebrity chefs, including four of the top chefs in America as rated by the Food + Wine Magazine; these chefs provide multiple cooking demonstrations featured throughout the festival. As part of the event, there are 36 restaurants sampling food, 43 wineries sample their varieties of wine, 5 wine seminars, 6 craft beers, and 4 craft beer seminars. She provided a two-minute video that showcased the Food & Wine Festival Palm Desert. After the video was shown, she went on to say attendance was now 3,000, which was a 23% increase over 2013. However, with success also came challenges, stating it was not an exaggeration that the event in its current configuration is busting at the seams. She said that with these crowds the tents have become overly warm and very noisy. In order to continue to grow the event and attract the desired demographic that typically attends these festival, the experience requires enhancements to the facilities. Palm Springs Life (PS�) is requesting additional funding of $75,000 to improve the air conditioning in its tents and erect three new one to be used exclusively for chef demonstrations. She said these tents will seat 100 attendees each, but they will also provide adequate audio visual and air conditioning. The funding will also provide for a new entrance tent to accommodate a"marketplace" where sampled wines from the grand tasting will be sold. She said there was no other Southern California festival providing this benefit. Staff is also working with PSL to host a City concierge area where attendees can find information about City amenities and book restaurants during their stay. She said both Fashion Week and Food & Wine Festival Palm Desert will be moving from its current location in 2016. While City staff and PSL staff are working on a new location, there have been discussions to separate the festival into its own major event, which can take place at a different time in the year and in a different location than Fashion Week. Staff hopes to expand the event in both the variety and number of activities, making it another signature event in the City, which meets several of the priorities within Envision Palm Desert, the City's strategic plan to create and attract entertainment and events to enhance the experience of Palm Desert for both its economy and lifestyle. She said Frank Jones and Michael Mathews from Palm Springs Life were in attendance and available to answer any questions. Councilman/Director Jonathan said the staff report included the minutes from the Marketing Committee wherein the members shared their concern to have staff work with PSL for measurable processes to recoup the investment. He asked staff if that was part of the plan moving forward as the City invests the proposed significant amount, that staff will monitor and try to find ways to create a return. Ms. Moore answered yes, stating the City hopes to expand the event in 2016 into possibly its own signature event. However, if the City entered into a partnership agreement, staff needed to make sure everything was reviewed with attorneys to see what actually becomes a liability to the City versus just being a sponsor. 4 PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 11, 2014 Councilman/DirectorJonathan explained there is an expectation thatthe additional investment will result in additional participants, which will in turn result in additional sales tax and Transient Occupancy Tax (T.O.T.). Therefore, he asked staff to think about establishing a mechanism to gauge that cause and effect relationship. Ms. Moore agreed to work with PSL on that aspect. Mayor/Chair Weber asked if staff had any way of quantifying the increase from the hotels' regular business, and if it could be narrowed for both the hotels and restaurants. Ms. Moore said not for the hotels, but staff has been able to measure the traffic increase in the parking garages across the street from the events, stating specific traffic counts are kept. However, it's very difficult to get information from the stores, because individual sales didn't have to be disclosed to the City, but there is different information that is disclosed to their landlord, and staff has indications from the landlord that during both events, sales increased in the City. Mayor Pro TemNice Chair Spiegel pointed out this was by far the largest City event that attracts a lot of people to spend their money in Palm Desert. Mayor Pro TemNice Chair Spiegel moved to, by Minute Motion: 1) Approve a separate funding of $75,000 for Food & Wine Festival Palm Desert 2015 to be used toward expansion of event facilities; 2) appropriate an additional $75,000 from Unobligated General Funds to Community Sponsorships for FY 2014-2015, Account No. 110-4416-414-3062; 3) authorize use of Successor Agency to the Palm Desert Redevelopment Agency-owned lot at the northeast corner of Shadow Mountain Drive/Larkspur Lane for the events in March 2015; 4) authorize closing a portion of Larkspur Lane in the evenings from 5:00 p.m. - 10:00 p.m. during events in March 2015; 5) authorize use of the north side of Shadow Mountain Drive behind The Gardens On EI Paseo and the event for valet parking; 6) permit the consumption of alcoholic beverages on Successor Agency-owned property; 7) authorize City Manager to execute the additional sponsorship agreement and allow City Attorney to make non-substantive changes. Motion was seconded by Hamik. Councilmember/Director Harnik agreed measuring and quantifying was important, but a lot of the effects and benefits are intangible. She and Mayor Pro Tem Spiegel sit on the Marketing and the Hotel & Special Events Committee, and they are always looking for these signature events, which are needed to generate revenue to support this wonderful life in Palm Desert. She said these high profile events raise the image of Palm Desert, and every year she attends Fashion Week, and last year for the first time attended the Food & Wine event. She was amazed as to how wonderful it was, but she also noticed how warm the tent was as well. She said wheneverthe City sponsors any event, the immediate multiplierwon't be seen, but what happened with Fashion Week will happen with the Food & Wine 5 PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 11, 2014 Palm Desert event. However, Food & Wine has grown organically without the City having to work hard to tum it into what it is today. Councilman/Director Tanner stated the comment that jumped out at him from the Marketing Committee minutes was for people not look at the City continuously for X amount of dollars. He understands that if the City contributes $75,000, the opportunity for additional sponsorships will come, and he didn't want that effort to stop. He asked PSL to continue to get sponsorships to get a larger return on investment for everyone involved. He said he loved both events. Councilman/Director Jonathan concurred with previous comments, but if the City can demonstrate to its constituents that there is a financial return on the investment and partnership with Palm Springs Life, so much the better. MR. MICHAEL MATHEWS, Palm Springs Life, thanked the Council for its support, stating they truly believe in what they have been able to accomplish in conjunction with the City. In response to Councilman Tanner's concem, he said they never ease up on trying to find sponsorships, noting they have secured Aqua Caliente Resort Spa & Casino as the presenting sponsor, which they didn't have previously. However, it takes a lot of sponsorships to make an event like this work. With respect to the tents, the upgrade includes flooring, infrastructure, labor, etc., and the air conditioning is a crucial part. If there was any real criticism of Food & Wine, it was about the heat and wanting cooler tents. He can say with a lot of enthusiasm, right now versus last year, they have double their ticket sales, which meant people are responding to this event. Previously, the event had 3,000 attendees, and he believed it will grow to about 4,500 next year. Mayor/Chair Weber said staff pointed out it was Palm Desert's name on the event, even though the City is sponsoring, which is an advantage to the City of Palm Desert for a signature event. Ms. Moore agreed, stating Palm Desert is named in all the advertising for this event, including the national Sunset Magazine. Mayor/Chair Weber called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Jonathan, Spiegel, Tanner, and Weber; NOES: None). X. CONTINUED BUSINESS None XI. OLD BUSINESS None 0 PRELIMINARY MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING -� =7� - DECEMBER 11, 2014 XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, SUCCESSORAGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None :l SUCCESSOR AGENCY COUNSEL None C CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ADJOURNMENT On a motion by Spiegel and unanimous consent of the Successor Agency Board, Chair Weber adjourned the meeting at 6:51 p.m. ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY SUSAN MARIE WEBER, CHAIR 7