Planning Commission
MEETING DATE: 11/2/2016
Title
TITLE: Economic Development Update
STAFF: Curt Watts, Economic Development Director
End
RECOMMENDATION:
Recommendation
This item is presented for information and discussion only.
Body
BACKGROUND:
The overall goal of economic development is to create a healthy economy for the community. According to the California Association for Local Economic Development (CALED), it is a concerted effort to influence the direction of private sector investment toward opportunities that can lead to sustained economic growth. Business attraction, retention and growth are impacted by economic development efforts undertaken by the city with the ultimate purpose of generating wealth to benefit the community, including the expansion of local job opportunities, and improving the overall quality of life for residents, including public amenities and convenient access to desired goods and services.
Toward those goals, the City of Cathedral City works on an ongoing basis to maintain and grow relationships with its local businesses, commercial real estate brokers, and the development community. The City also has a regular presence at regional and national conferences of the International Council of Shopping Centers ("ICSC") where retail, hospitality, and development companies are represented. The City supports private sector investments in the community through special events, public infrastructure improvements, code enforcement, police & fire services, business outreach and broad involvement in the community's overall activities. Therefore, all City employees, by virtue of their respective job duties, play an important role in local economic development.
This report provides a brief update on recent advancements in private sector development within the City, as well as public works projects which support overall economic development. In addition, a SWOT Analysis has been prepared summarizing the City's Strengths, Weaknesses, Opportunities and Threats to help facilitate a discussion relative to future economic development efforts.
DISCUSSION:
The attached summary of Private Development & Public Works Projects provides an overview of the many noteworthy private development and public works projects recently completed or under way in the city, including:
PRIVATE DEVELOPMENT:
- HOTELS
- DoubleTree by Hilton Golf Resort Hotel
- Staybridge Suites Hotel
- Best Western Plus (The Crossings at I-10 and Bob Hope Drive)
- Downtown Hotel
- RESIDENTIAL PROJECTS
- Desert Princess Homes
- Verano
- The District
- Infill Single-Family Homes
- COMMERCIAL PROJECTS
- Regency Movie Theatres at Cathedral City Marketplace
- Mission Plaza at Date Palm Drive and Gerald Ford Drive
- Honda of the Desert
- Infrastructure in North City and North City Extended Specific Plan Areas
- The Crossings at I-10 & Bob Hope Drive
- DOWNTOWN
- Future Relocation of the CV Repertory Theatre
- Pickfair Promenade Ownership Change
- Mary Pickford Movie Theatre Renovations
- Proposed Downtown Hotel
- Marketing of CURC-Owned Properties for future development
CITY/PUBLIC WORKS PROJECTS:
- Cathedral City Bike Trail
- Ocotillo Park
- Cathedral Canyon, Date Palm & Vista Chino Pavement Repair Projects
- New Cathedral Canyon Bridge and Widening of Date Palm & Ramon Road Bridges.
These projects are strong evidence of the investments being made in Cathedral City by both the private and public sectors. Many economic development challenges persist however.
The attached SWOT Analysis is an initial analysis of the City's Strengths, Weaknesses, Opportunities and Threats related to their potential impact on our future economic development efforts. Dialogue with decision-making bodies like the Planning Commission will help refine these assessments, guide development of strategic plans and also serve to both educate the community on the challenges we face.
The SWOT Analysis attempts to identify the most significant factors that impact (or may impact) our economic development efforts in the future. They are grouped into four areas including:
- STRENGTHS - Characteristics that give us an advantage over others.
- WEAKNESSES - Characteristics that are a disadvantage relative to others.
- OPPORTUNITIES - Factors (generally external) that may be leveraged to our benefit.
- THREATS - Elements in the environment that could cause trouble for us.
Several of the listed SWOT factors require analysis of statistical documentation to better understand their impacts. To the degree that such statistical evidence is readily available, additional information will be provided during the presentation to the Commission.
For example, in listing Location and Sizeable Resident Population as Strengths, it's necessary to delve deeper. The City's current full-time residential population is nearly 55,000, second largest in the Coachella Valley, and the number of Valley residents within a 5-mile radius of each of our primary commercial zones is roughly 100,000 (including a percentage of residents in adjacent Palm Springs, Rancho Mirage and beyond). So, to the degree that a specific business expects to draw customers from a 5-mile radius (and prior to analyzing income levels), there's no initial apparent advantage or disadvantage between the zones.
However, for businesses expecting to draw customers from only a 1- or 3-mile radius (i.e. businesses like grocery stores, coffee shops, etc. which are more dependent upon frequent repeat customers residing or working in close proximity to the business location), the population numbers for Downtown are significantly lower than in the central or northern developed sections of our City. Therefore, listed under Weaknesses is an "Uneven Concentration of Residential Rooftops" which primarily negatively impacts the Downtown zone.
COMMERCIAL ZONE 5-Mile Radius 3-Mile Radius 1-Mile Radius
Downtown 98,637 42,865 5,288
(Ave. Household Income) ($73,956) ($73,475) ($60,116)
Date Palm & Dinah Shore 100,699 51,143 15,077
(Ave. Household Income) ($65,627) ($63,509) ($73,384)
Date Palm & Ramon 100,543 61,182 18,324
(Ave. Household Income) ($70,320) ($67,680) ($60,784)
Date Palm & 30th 102,656 53,771 16,686
(Ave. Household Income) ($66,682) ($63,492) ($73,382)
This type of detailed analysis is important when trying to attract national or regional retailers. It's one of many significant factors used by site selectors when determining their potential customer draw.
ATTACHMENTS:
Attachment 1. Summary of Private Development & City/Public Works Projects
Attachment 2. SWOT Analysis - Strengths, Weaknesses, Opportunities and Threats