City Council
MEETING DATE: 5/13/2015
TITLE:
Title
Economic Development Update
End
FROM:
Leisa Lukes, Economic Development Manager
RECOMMENDATION:
Recommendation
This item is presented for information and discussion.
Body
BACKGROUND:
The 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 retention, business growth, and business attraction are a result of the economic development investment made by the city for the purpose of generating wealth to benefit the community.
The City of Cathedral City is making an investment in the community through the use of a series of economic development tools, including community events, public infrastructure improvements, enforcement of city codes, business outreach and community involvement. In addition to maintaining and growing relationships with businesses, commercial real estate brokers, and the development community, the City will also have a presence at the International Council of Shopping Centers' (ICSC) annual RECon conference this month where retail, hospitality, and development companies will be represented.
Each employee, as a representative of the City, plays a role in the economic development of the city. This report provides an update on the City's use of its economic development tools and current private-sector investments within the city.
DISCUSSION:
Economic Development Tools:
Community Events - With the inclusion of a Communications and Events Manager on staff and the addition of the "Festivals Lawn" event space in Downtown, there has been an increasing number of community events. Some of these events, such as Theater Square Market with gourmet food trucks, products and services, are held weekly throughout season. Other events, such as the Town Square Art Affair organized by West Coast Artists, have occurred on multiple non-consecutive weekends during season. Some of the more significant events like the Cathedral City Hot Air Balloon Festival, Cathedral City LGBT Days, and the Health Fair & Glo Run 5K/1M are held once during season and yet attract some of the largest attendances. These events and others offer activities for our residents and significantly increase the number of visitors to the city. They have enlivened Downtown, increased traffic to existing businesses and are creating a demand for additional restaurant, retail, and service options in the city. Festivals Lawn has demonstrated the benefit it brings to the city and confirms the value that completion of Festival Park will provide as an economic driver to Downtown.
Public Works Projects - In addition to Festivals Lawn, the work being done by the City's Engineering and Public Works staff in the public realm is laying the foundation for private economic investment. From roadway projects that improve the commercial corridors, such as Ramon Road and East Palm Canyon, to enhancing access and facilities in the residential neighborhoods, such as road and sidewalk improvements on San Joaquin and Corregidor Drives and construction of the 5-acre Ocotillo Park in the Whitewater Neighborhood, these capital improvement projects enhance the city. Pubic investment retains and attracts both residential and commercial private investment.
Other completed, ongoing, and future capital improvement projects include protecting and enhancing property via Eagle Canyon Dam and Line 43 spillway; improving circulation and safety with the Cathedral Canyon and Date Palm Drive bridge projects; creating an enhanced gateway into the city's North City area and improving the connection for traffic from Desert Hot Springs into the city by reconstructing Date Palm Drive north of Interstate 10 to Varner; and enhancing the cross connectors in the city by repaving Vista Chino from Whitewater River to Date Palm Drive. Other projects being undertaken include adhering to the Americans with Disabilities Act (ADA) by completing the ADA Transition Plan throughout the city; complying with water restriction guidelines by replacing grass in public medians and parkways with drought-tolerant landscape and decomposed granite; and establishing a city-wide Pavement Management Plan that will serve as a long-term investment in the city's roadway system. Shoring up the city's infrastructure and creating an aesthetically pleasing and socially responsible environment sends a message to the investment community that we are a city that cares what our appearance says about us and we invite investment that furthers that mission.
Code Compliance - This sector of the City's workforce plays a key role in economic development. They work with private property owners to mitigate code violations to improve both property aesthetics and safety. Emphasis is being placed on the city's entryways and commercial corridors; however, complaint-based code compliance cases also direct the officers' work to residential properties throughout the city.
The appearance of blight can result from stray shopping carts, graffiti and unattended donation drop boxes, which drive negative perceptions of the city. To counteract this, Community Development staff is reviewing existing codes and will present suggested updates for Council discussion in late May/June. Mitigating crime is also a key component of economic development. The Police Department continues to maintain the city's low crime rate. In addition, they are furthering their community policing efforts by working to connect the city's homeless population with available resources, which will have a direct positive impact on the city's business community.
City-wide Signage - City entryway signs, vehicular and pedestrian wayfaring signs, and downtown directional signs serve to identify the city's boundaries and guide traffic to key locations throughout the city. These points of interest include Downtown, Cathedral City Auto Center, the library, and multiple visitor-serving uses. A City team led by Economic Development is working with a consultant to develop a coordinated sign program to provide a distinct appearance throughout the city. In addition to enabling drivers and pedestrians to quickly locate these directional assistance tools, they will enable sign consolidation and reduce sign clutter. Several concepts will be presented for Council consideration in June.
Laying the Foundation for Growth - The annexation of approximately 700 acres into the city sets the stage for the city's future growth north of Interstate 10. City engineering staff is working with the property owner to resolve drainage and other infrastructure needs in this area, which will allow the initial phase of development planned for the 9 acres at Bob Hope/Rio Del Sol Road and I-10 to proceed. Staff has taken proactive steps to meet with and tour Coachella Valley Water District (CVWD) representatives to this area and to other parts of the city to discuss future planning efforts. A joint meeting between the City Council and the CVWD Board is also being scheduled for later this year.
The City's Property Management Plan (PMP) lays the foundation for disseminating the property that was held by the former Redevelopment Agency. Staff is taking the steps necessary to ready that land for future sale and development, and to ensure that the vision of the city is carried out by the development of these lands. The appraisals, legal documents, and other necessary matters are being handled that, although time consuming in the near-term, will streamline the overall process.
City staff hosted a Development Forum in April that was attended by about 25 developers, investors, and consultants. The purpose of the Forum was to update the development community on the public and private investment activities in the city and to receive feedback on City processes. The discussion offered insight into today's development world as it relates to the Coachella Valley with its challenges and opportunities. Input received indicates that development activity has picked up significantly in the coastal communities but is lagging behind in the Valley. Investment money also remains tight here. While Cathedral City processes were not identified as the inhibitor to development, suggestions were made regarding the City's pre-application and project review process. The private development projects and public infrastructure projects presented at this meeting are included in Attachments 1 and 2.
Private projects include a number of approved and proposed residential developments: Desert Princess (122 homes); Desert Bloom (98 homes); Stanton Place (17 homes); The District (47 homes); and Downtown Mixed Use (69 apartments and 5000 sf commercial). Commercial projects include the DQ Grill & Chill that is currently under construction at Date Palm and I-10; grading at Uptown Village in preparation of the new Aaron's Furniture store; and a new retail building on a 5,000 square-foot lot on E. Palm Canyon near the westerly city entrance is under review.
Some of the recent additions to the city that fill previously-vacant retail space include the 42,000 square-foot In-Shape Fitness at Mission Plaza; Rita's Italian Ice; Bonta and Taqueria Los Arcos Restaurants at Desert Cinemas Plaza; and Harbor Freight and Big 5 Sporting Goods at Date Palm Plaza.
Community Outreach and Attraction - City staff continues to partner with commercial real estate brokers as they are a key resource for available commercial properties and the knowing who is currently seeking space. Economic Development staff hosted a Broker's Lunch in April and about fifteen commercial brokers attended. They shared updates on their local listings and expressed optimism about Cathedral City, stating that many of the available commercial spaces are now under contract. They provided flyers of their remaining properties, which will be used by staff at the upcoming International Council of Shopping Centers (ICSC) event in May. The brokers appreciated the update on current public improvement projects and on residential projects that are approved or under review. They agree additional "rooftops" are an attractor to new retail.
A contingent of City representatives will be attending the annual ICSC RECon event held in May in Las Vegas. This event is attended by over 300 businesses, both national and international, that are potentially seeking to expand. Shopping center developers and leasing agents, real estate brokers, product marketers, city representatives, and anyone else connected to this industry generally attend this event, with attendance levels approaching nearly 40,000. A host of educational workshops are also held, providing an opportunity to learn about current trends in shopping center development.
The event provides for business attraction, business retention, and overall relationship building. It enables city representatives to establish relationships with those businesses it desires to have locate in the city. Meetings are also set with the decision makers of those businesses that already have a presence in the city to affirm business retention. The opportunity to meet with commercial brokers and developers, as well as those businesses that are seeking additional locations is beneficial. One important aspect of the event is having a presence there each year to show that Cathedral City is a city that is ready for business.
The City has partnered with Team Riverside (Riverside County Economic Development) to share a portion of Team Riverside's Pavilion for displaying promotional materials, hosting meetings and sharing the city's attributes with interested attendees. One of the promotional pieces that is being produced for the event is a memory stick that contains a link to a City website that highlights various aspects of the city, including demographics and roadway traffic counts - both of which are key to commercial attraction. This new "About Cathedral City" website is the beginning of an updated economic development website that will be finalized this summer.
FISCAL IMPACT:
None at this time.
ATTACHMENTS:
1. Private Investment Projects
2. Public Infrastructure Projects