City Council
MEETING DATE: 9/14/2016
TITLE:
Title
Economic Development Update
End
FROM:
Curt Watts, Economic Development Director
RECOMMENDATION:
Recommendation
This item is provided for information, discussion and direction only.
Body
BACKGROUND:
At its May 23, 2015 meeting, the City Council received an update from Economic Development Manager Leisa Lukes regarding both the various tools being used at that time to advance economic development within Cathedral City, and the most significant private sector and public works projects underway at the time.
Now, as then, 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, he 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. As part of this effort, 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 has also expanded its efforts to support the private sector investments in the community through special events, public infrastructure improvements, city code enforcement, police & fire services, business outreach and broad involvement in the community's overall activities. All City employees by virtue of their respective job duties, therefore, play an important role in local economic development.
This report provides a brief update on the most recent advancement in private sector developments, as well as public works projects which support overall economic development within the city. 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 and Best Western Plus (The Crossings at I-10 and Bob Hope Drive).
- Residential Projects - Desert Princess Homes, Verano, The District and 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 Plans and The Crossings at I-10 & Bob Hope Drive.
- Downtown - Future Relocation of the CV Repertory Theatre, Pickfair Promenade Ownership Change, Mary Pickford Theatre Renovations, Proposed Downtown Hotel, and Marketing of CURC-Owned Properties for future development
CITY/PUBLIC WORKS PROJECTS
- Recreation Amenities - Cathedral City Bike Trail and Ocotillo Park
- Pavement Repair Projects - Cathedral Canyon Drive, Date Palm Drive and Vista Chino Road.
- Bridge Projects - New Cathedral Canyon Bridge, widened Date Palm Drive & 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. Having just completed my first six months as the City's new Economic Development Director, it's an opportune time for me to reflect upon some of these challenges, to assess the opportunities to further advance our future efforts and to provide a mechanism for the City Council to react and respond as we continue mapping out future strategies.
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. City Council feedback at this juncture will help further refine these assessments and also serve to both educate the community on the challenges we face and to help guide the development of our next steps.
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.
- OPPORTUNTIES - Elements (generally external factors) that could be leveraged to our advantage.
- 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 Study Session presentation.
For example, in listing "Location" as a Strength, it's noteworthy that the City's current full-time residential population is nearly 55,000, but the number of Valley residents within a 5-mile radius of each of our primary commercial zones is roughly 100,000 (due to proximity to residents in adjacent Palm Springs, Rancho Mirage and beyond). 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, 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" negatively impacting primarily the Downtown.
COMMERCIAL ZONE 1-Mile Radius 3-Mile Radius 5-Mile Radius
Downtown 5,288 42,865 98,637
(Ave. Household Income) ($60,116) ($73,475) ($73,956)
Date Palm & Dinah Shore 15,077 51,143 100,699
(Ave. Household Income) ($73,384) ($63,509) ($65,627)
Date Palm & Ramon 18,324 61,182 100,543
(Ave. Household Income) ($60,784) ($67,680) ($70,320)
Date Palm & 30th 16,686 53,771 102,656
(Ave. Household Income) ($73,382) ($63,492) ($66,682)
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.
FISCAL IMPACT:
No immediate cost impact.
ATTACHMENTS:
1. Summary of Private Development & City/Public Works Projects
2. SWOT Analysis - Strengths, Weaknesses, Opportunities and Threats