(2.4) 2035 LQ General Plan - Chapter II (11.19.13) - ECONOMIC DEVELOPMENT
ECONOMIC
DEVELOPMENT
II-‐163
ECONOMIC
DEVELOPMENT
PURPOSE
The
Economic
Development
Element
is
intended
to
establish
a
framework
for
the
maintenance
and
expansion
of
a
healthy
economic
climate
in
La
Quinta.
The
City’s
economic
health
is
vital
to
everyone
–
residents,
business
people,
and
visitors.
As
such,
this
Element
is
intended
to
guide
decision
makers
to
assure
that
the
City
offers
a
balanced
job
market
for
its
residents;
high
quality
retail
and
office
developments
for
business
owners;
and
healthy
sales
and
property
tax
revenues
to
fund
City
services,
programs
and
activities.
This
Element
has
been
prepared
at
a
time
when
the
City’
economy
has
been
significantly
impacted
by
the
recession
of
2008-‐2012.
Economic
cycles,
however,
will
result
in
good
and
bad
economic
times
in
the
City
during
the
life
of
this
General
Plan.
In
2012,
the
City
has
the
opportunity
to
plan
for
the
next
economic
upturn
and
assure
that
the
City’s
economy
expands
and
is
successful
when
growth
once
again
occurs.
This
Element
also
provides
guidance
to
assure
that
the
City’s
economy
provides
sufficient
revenues
to
maintain
and
improve
City
services
through
2035.
The
Economic
Development
Element
is
most
closely
tied
to
the
Land
Use
Element,
insofar
as
the
pattern
and
balance
of
land
uses
in
the
City
are
key
to
assuring
a
healthy
economy.
It
is
also
associated
with
the
Circulation
Element
–
both
in
the
need
to
provide
easy
access
to
job
centers
and
shopping,
and
the
need
to
generate
adequate
revenue
to
fund
the
high
cost
of
roadway
maintenance
and
improvements;
the
Livable
Community
Element,
which
strives
to
establish
a
framework
for
a
resource
efficient
environment
in
all
aspects
of
City
life;
and
other
Elements,
including
Parks
and
Recreation,
Open
Space
and
Housing,
which
all
are
associated
with
quality
of
life.
ECONOMIC
DEVELOPMENT
II-‐164
The
goals,
policies
and
programs
provided
in
this
Element
are
intended
to
guide
future
economic
growth
in
the
City
in
the
broadest
sense.
The
City
utilizes
a
number
of
tools
to
foster
economic
growth.
In
particular,
the
City
adopts
an
annual
Economic
Development
Plan,
which
contains
goals
and
activities
to
help
stimulate
the
local
economy
and
bring
new
investment
to
La
Quinta.
BACKGROUND
The
City
has
evolved
from
a
small
residential
suburb
providing
affordable
housing
and
limited
commercial
opportunities,
to
a
community
that
provides
a
broad
range
of
housing
for
permanent
and
seasonal
residents;
and
one
that
is
a
destination
for
regional
shopping.
The
City
has
historically
had
three
dominant
economic
sectors
around
which
its
economy
has
revolved:
resort
hotels,
golf
and
retail
commercial.
The
growth
in
these
sectors
have
spurred
development
of
all
types
in
the
City.
They
will
continue
to
be
an
important
part
of
the
City’s
economy.
As
a
basis
for
this
Element,
a
brief
summary
of
statistical
data
on
the
City’s
population,
housing
and
employment
growth
is
provided
below.
This
demographic
data
clearly
demonstrates
the
significant
growth
the
City
has
experienced
in
the
recent
past.
Population
According
to
the
US
Census,
population
in
the
City
increased
from
12,470
in
1990,
to
24,084
in
2000,
and
37,467
in
2010.
This
represents
a
93.1%
increase
between
1990
and
2000,
and
a
55.5%
increase
between
2000
and
2010.
The
Southern
California
Association
of
Governments
(SCAG)
estimates
that
the
City’s
population
will
reach
41,625
in
2020,
and
46,297
in
2035.
The
median
age
of
the
City’s
population,
45.6
years,
shows
that
La
Quinta
is
home
to
a
number
of
families,
particularly
since
24%
of
the
City’s
total
population
is
under
19
years
of
age.
Housing
Units
The
2010
Census
determined
that
there
are
23,489
housing
units
in
the
City,
and
that
the
total
housing
vacancy
rate
stands
at
36.9%.
It
is
important
to
note
that
the
Census
estimates
the
seasonal
vacancy
rate
at
27.5%,
and
that
the
City’s
net
vacancy
rate
is
12.4%.
The
vacancy
rate
highlights
the
importance
of
the
seasonal
resident
to
La
Quinta’s
housing
market.
ECONOMIC
DEVELOPMENT
II-‐165
The
vast
majority
of
housing
units
(90%)
are
attached
or
detached
single
family
homes.
The
balance
are
multi-‐family
homes
(9%),
and
mobile
homes
(1%).
As
with
other
economic
sectors,
the
City
has
experienced
a
significant
decrease
in
the
number
of
new
homes
constructed
in
recent
years.
From
2010
to
January
2012,
there
were
96
housing
units
of
all
types
(single
family
homes,
apartments
and
condominiums)
built
in
the
City.
By
comparison,
8,473
housing
units
were
built
from
2000
to
2009,
or
an
average
of
almost
850
units
annually.
As
growth
in
residential
development
will
spur
commercial
growth,
the
housing
market’s
recovery
will
be
an
indicator
of
improved
economic
conditions
throughout
all
market
segments.
Households
and
Income
The
2010
Census
identified
14,820
households
in
the
City,
which
translates
to
an
average
household
size
of
2.5
persons.
SCAG
estimates
that
there
will
be
16,580
households
in
La
Quinta
in
2020,
and
17,948
households
in
the
City
in
2035.
It
is
estimated
that
the
City’s
median
household
income
in
2010
was
$72,181,
and
per
capita
income
stood
at
$43,450.
The
median
household
income
has
increased
significantly
in
the
last
twenty
years,
and
the
City
now
ranks
higher
than
the
County
median
household
income,
which
stood
at
$54,296
in
2010.
Employment
In
1990,
there
were
5,368
employed
residents
in
La
Quinta.
By
2010,
that
number
had
risen
to
over
19,700.
As
shown
in
Table
II-‐13,
the
majority
of
residents,
or
61.6%,
work
in
white-‐collar
jobs,
followed
by
service
and
sales
jobs,
and
blue
collar
jobs.
The
largest
sector
of
employment
is
Sales
(14.61%),
followed
by
Management
(13.25%).
Please
note
that
this
Table
shows
employment
regardless
of
whether
the
job
is
in
La
Quinta
or
elsewhere.
ECONOMIC
DEVELOPMENT
II-‐166
Table
II-‐13
Employment
by
Occupation,
2010
Occupation
Employed
%
of
Employed
Architect/Engineer
189
0.96%
Arts/Entertainment/Sports
646
3.27%
Building
Grounds
Maintenance
1,002
5.07%
Business/Financial
Operations
958
4.85%
Community/Social
Services
430
2.18%
Computer/Mathematical
125
0.63%
Construction/Extraction
1,343
6.79%
Education/Training/Library
1,031
5.22%
Farm/Fish/Forestry
73
0.37%
Food
Prep/Serving
1,758
8.89%
Health
Practitioner/Technicians
872
4.41%
Healthcare
Support
268
1.36%
Maintenance/Repair
430
2.18%
Legal
248
1.25%
Life/Physical/Social
Science
85
0.43%
Management
2,620
13.25%
Office/Admin
Support
2,080
10.52%
Production
442
2.24%
Protective
Services
618
3.13%
Sales/Related
2,889
14.61%
Personal
Care/Service
1,168
5.91%
Transportation/Moving
494
2.50%
Total
19,769
100.00%
Source:
Nielsen
Claritas,
December,
2010.
The
major
employers
in
La
Quinta
are
shown
in
Table
II-‐14.
The
recent
economic
downturn
will
have
affected
the
data
in
this
Table,
as
the
school
district
has
experienced
significant
budgetary
reductions,
but
the
importance
of
retail
and
resort
industry
employers
is
still
clearly
significant
in
the
City.
ECONOMIC
DEVELOPMENT
II-‐167
Table
II-‐14
Major
Employers
in
La
Quinta
Employer
Employment
Desert
Sands
Unified
School
District
2,471
La
Quinta
Resort
&
Club
1,600
WalMart
Supercenter
800
Rancho
La
Quinta
700
PGA
West
285
Imperial
Irrigation
District
150
Lowe’s
Home
Improvement
150
Home
Depot
100
Stater
Brothers
100
Tradition
Golf
Club
100
Source:
County
of
Riverside
EDA
2009
Economic
Drivers
Three
economic
sectors
have
been
key
to
the
City’s
growth:
tourism,
golf
and
retail
sales.
Tourism
and
the
Resort
Industry
La
Quinta
has
benefited
from
the
Coachella
Valley’s
climate,
physical
environment
and
reputation
in
the
tourism
industry.
Although
for
many
years
the
City
battled
the
perception
of
“Palm
Springs”
as
the
only
tourism
destination
in
the
region,
a
number
of
factors,
and
aggressive
marketing,
have
allowed
the
City
to
develop
its
own
identity
as
a
tourist
destination.
The
relatively
low
intensity
of
development
in
the
City
and
region,
its
wildlife
and
open
space,
and
the
lack
of
congestion
throughout
the
Valley
relative
to
more
urban
areas
have
all
served
to
promote
short
and
long
term
visitors’
interest
in
the
City.
Tourism
in
the
City
is
not
limited
to
hotel
development.
Resort
residential
development
is
also
an
important
economic
driver
in
the
City.
The
regional
demand
for
second
homes
and
vacation
homes,
as
well
as
retirement
housing,
have
resulted
in
a
number
of
golf
and
recreation
oriented
projects
geared
to
part-‐time
residency.
The
City
is
home
to
a
number
of
seasonal
residences,
which
represent
27.5%
of
the
City’s
housing
stock
and
increase
the
population
by
almost
50%
each
winter;
and
fractional
ownership
or
timeshare
projects,
which
attract
tourists
for
shorter
periods,
ranging
from
a
week
to
a
month.
Resort
residential
development
began
at
PGA
West,
but
has
expanded
to
include
golf
course
country
club
developments
such
as
Rancho
La
Quinta,
retirement
communities
such
as
Trilogy,
and
exclusive
communities
such
as
The
Hideaway.
The
City's
growing
reputation
as
a
ECONOMIC
DEVELOPMENT
II-‐168
destination
resort
community
adds
depth
to
the
economy,
while
generating
lower
annualized
demand
for
roads,
public
services
and
utilities.
Golf
Courses
and
SilverRock
Resort
The
City’s
winter
residents
and
visitors
have
long
been
attracted
to
the
many
golf
courses
that
have
been
developed
in
the
City.
Much
of
the
single
family
residential
development
in
the
City
is
built
around
these
golf
courses.
Golf
is
a
revenue
generating
industry
in
the
City,
both
in
terms
of
retail
sales,
and
in
terms
of
the
increased
disposable
income
golf-‐oriented
visitors
and
residents
bring
to
the
City.
Golf
has
also
been
a
successful
marketing
tool
for
the
City.
The
City
promotes
golf
and
recreation
in
its
marketing
efforts
across
the
country.
In
addition,
professional
golf
tournaments
in
La
Quinta
have
raised
the
public
awareness
of
the
City
as
a
destination.
The
SilverRock
Resort
represents
a
potentially
significant
economic
development
opportunity
for
the
City.
SilverRock
is
a
525
acre
property
on
which
the
City’s
golf
course
has
been
developed.
The
course
has
hosted
professional
and
amateur
tournaments,
and
has
been
a
featured
course
in
the
PGA’s
Bob
Hope
Classic
in
the
past
(the
tournament
is
now
the
Humana
Challenge).
The
golf
course
is
the
first
phase
of
an
adopted
Specific
Plan
for
the
entire
property.
The
Specific
Plan
includes
two
hotels,
one
a
boutique
hotel,
as
well
as
resort
retail
and
related
development.
Prior
to
the
current
economic
downturn,
the
City
had
actively
marketed
the
hotel
and
resort
commercial
development,
and
was
actively
working
toward
its
implementation.
The
current
market
has
stalled
these
development
plans,
but
the
City
can
expect
that
in
the
next
economic
cycle,
the
development
opportunities
offered
by
SilverRock
will
be
significant.
It
will
be
important
to
conduct
outreach
activities
with
potential
developers,
local
stakeholders,
event
sponsors,
and
the
local
community
to
ensure
future
development
of
SilverRock
embraces
current
and
future
trends,
such
as
health
and
wellness,
in
order
to
remain
relevant.
As
the
revenue
potential
for
this
property
is
tied
to
golf,
the
City’s
continued
marketing
of
the
golf
course,
and
its
use
for
professional
and
amateur
events,
will
continue
to
be
significant
to
the
City’s
long
term
economic
health.
The
land
around
the
existing
golf
course
is
planned
for
hotel
and
resort
retail
development.
ECONOMIC
DEVELOPMENT
II-‐169
Retail
Commercial
Development
In
the
last
two
decades,
the
most
significant
growth
in
the
City
has
been
its
retail
sales.
In
1995,
there
were
$121
million
in
taxable
sales
in
the
City.
By
the
year
2000,
that
number
had
grown
to
$318
million;
and
to
$683
million
in
2005.
Even
in
recessionary
times,
the
City’s
total
taxable
sales
in
2009,
the
last
year
for
which
full
year
data
is
available,
were
$623
million.
Commercial
lands
are
identified
throughout
the
City.
Approximately
65%
of
all
commercial
land
in
the
City
is
developed
in
2012.
There
are
184
acres
of
vacant
General
Commercial
land
in
the
City,
139
acres
of
vacant
Tourist
Commercial
land,
and
13
acres
of
vacant
Village
Commercial
land.
In
the
future,
the
expansion
of
commercial
development
will
include
not
only
Highway
111,
Washington
Street
and
Jefferson
Street,
but
also
commercial
lands
identified
on
the
Land
Use
Map
in
the
southeastern
portion
of
the
City,
including
lands
on
Madison
Street,
and
on
the
east
side
of
Monroe
Street,
in
the
Sphere
of
Influence.
Retail
commercial
development
has
focused
historically
in
two
areas:
the
most
significant
expansion
has
occurred
along
Highway
111,
and
the
Village
has
developed
a
reputation
as
a
specialty
retail
center.
Both
these
areas
will
continue
to
play
an
important
role
in
the
City’s
economy.
Highway
111
The
Highway
111
corridor
represents
the
majority
of
retail
activity
in
the
City.
It
has
been,
and
will
continue
to
be
the
focus
of
regional
shopping,
and
can
be
expected
to
continue
to
attract
national
retailers.
The
challenge
in
the
long
term
will
be
its
redevelopment,
as
the
majority
of
the
corridor
is
now
developed,
and
pressure
for
expansion
will
continue
as
the
City
and
region
grows.
Development
along
Highway
111
has
been
dominated
by
shopping
centers,
auto
dealerships
and
big-‐box
retail
pads.
As
retail
development
continues
to
change
in
the
future,
the
pattern
of
development
along
Highway
111
may
change
as
well.
Automobile
dealerships
contribute
significantly
to
the
City’s
revenues.
In
2010,
there
were
$43.3
million
dollars
in
vehicle
and
auto
parts
sales
in
the
City,
down
significantly
from
2005’s
$121.9
million.
In
the
recent
recession,
the
difficulties
of
the
auto
industry
as
a
whole
were
reflected
in
the
City’s
dealerships
as
well.
The
City
has
traditionally
supported
existing
dealerships,
and
actively
recruited
new
ones,
and
will
continue
to
do
so.
Their
continued
success
and
expansion
will
ECONOMIC
DEVELOPMENT
II-‐170
contribute
to
the
City’s
long
term
financial
health.
Vacant
land
within
the
La
Quinta
Auto
Center,
and
lands
planned
for
auto
dealerships
in
the
Dune
Palms
and
Highway
111
Specific
Plan
must
be
preserved
for
these
uses;
and
active
recruiting
to
develop
these
properties
will
continue
to
be
an
important
economic
development
strategy.
Highway
111
also
provides
the
City
with
the
best
opportunity
for
Mixed
Use
development
–
or
more
specifically
the
integration
of
more
intense
residential
development.
Its
access
to
transit,
and
proximity
to
employment
centers,
schools
and
other
services
make
it
ideal
for
mixed
use
projects.
These
projects
in
the
future
may
include
retail
below
residential
units,
but
could
also
include
residential
projects
next
to
existing
or
future
commercial
development.
Mixed
Use
projects
serve
multiple
purposes:
they
bring
residents
close
to
shopping
and
employment
opportunities,
which
is
good
for
the
businesses
because
their
customers
are
close
at
hand;
they
lower
the
number
of
vehicle
trips
by
allowing
people
to
walk
between
home
and
work
or
home
and
shopping;
and
they
help
the
City
meet
its
regional
planning
goals
established
in
the
Southern
California
Association
of
Governments
Sustainable
Community
Strategies.
The
Land
Use
Element
and
the
Livable
Community
Element
provide
greater
detail
on
Mixed
Use
development
in
the
Highway
111
corridor.
The
Village
The
City
has
also
seen
the
expansion
of
the
Village
as
a
specialty
retail
district
with
a
focus
on
cultural
and
special
events
and
venues.
The
Village
has
established
its
identity
in
part
through
the
Civic
Center
and
Park,
which
also
includes
the
Library
and
Senior
Center;
the
La
Quinta
Arts
Festival,
which
occurs
on
the
Civic
Center
campus
annually;
the
development
of
the
Old
Town
shopping
and
dining
area,
which
has
provided
a
focus
for
the
specialty
retail
market;
and
through
the
conversion
of
single
family
homes
to
offices
and
restaurants.
Critical
to
its
economic
health
is
the
expansion
of
this
retail
niche,
and
the
continued
attractiveness
of
residential
living
in
a
pedestrian-‐friendly
environment.
The
Village
can
provide
another
opportunity
for
Mixed
Use
development
in
the
City,
but
on
a
completely
different
scale
than
the
Highway
111
corridor.
Mixed
Use
development
in
this
neighborhood
will
be
of
a
smaller
scale,
consistent
with
the
commercial
development
in
the
area,
and
will
integrate
with
the
existing
mix
of
single
family
homes
and
smaller
apartment
projects
that
already
exist
in
the
area.
The
Village
is
also
the
commercial
area
for
the
Cove,
being
located
at
the
base
of
the
Cove.
It
has
taken
advantage
of
this
position
in
the
past,
and
will
continue
to
do
so
into
the
future.
ECONOMIC
DEVELOPMENT
II-‐171
The
Village
will
continue
to
be
challenged
by
its
isolated
location,
and
its
small
land
area.
It
has
not
yet
developed
to
its
full
potential,
and
can
provide
La
Quinta’s
residents
and
visitors
with
a
greater
range
of
shops
and
businesses,
all
located
in
easy
walking
distance
for
most.
As
it
expands,
the
Village
will
need
to
include
pedestrian
and
golf
cart
facilities,
shaded
paseos
and
seating,
and
an
interconnection
of
projects
that
make
it
an
all
day
destination
for
shoppers
and
business
people.
The
Village
also
will
benefit
from
offering
full
time
residents
jobs,
shopping
and
entertainment
opportunities,
so
that
activity
and
revenues
are
not
dependent
on
visitors
and
part-‐time
residents.
Please
also
see
the
Land
Use
and
Livable
Community
Elements.
The
City’s
Economic
Development
Plan
The
City
maintains
an
Economic
Development
Plan,
updated
annually,
that
helps
guide
its
economic
development
efforts.
The
Plan’s
primary
focus
is
on
the
long
term
economic
health
of
the
City,
as
opposed
to
immediate
short
term
economic
influences.
As
such,
it
provides
the
City’s
decision
makers
and
staff
with
a
vision
for
the
economic
future
of
the
City.
However,
since
the
Plan
is
updated
annually,
it
allows
the
City
to
consider
changes
to
its
economic
development
policies
based
on
current
trends.
The
Plan
supports
the
City’s
active
involvement
in
economic
development.
Historically,
this
has
included
active
recruiting
of
businesses,
the
commitment
of
funds
to
assist
with
infrastructure
and
other
costs,
and
working
closely
with
property
owners,
developers,
and
brokers
in
the
recruitment
and
retention
of
businesses,
and
the
diversification
of
the
City’s
economy
to
take
advantage
of
emerging
economic
trends,
and
fill
gaps
in
the
existing
market.
As
the
City
continues
to
grow
and
mature,
the
Plan
must
also
address
changes
in
the
Highway
111
corridor,
and
the
reuse
and
redevelopment
of
retail
centers
in
this
area.
Changing
Municipal
Revenues
The
most
significant
challenge
for
the
City
in
the
short
term
implementation
of
the
Economic
Development
Plan
is
the
2012
loss
of
the
La
Quinta
Redevelopment
Agency.
The
Agency
contributed
significantly
to
the
City’s
ability
to
promote
economic
development
projects,
and
its
elimination
will
significantly
impact
the
City’s
ability
to
participate
in
economic
development
through
infrastructure
investment
and
land
acquisition.
The
City
must
look
to
creative
ECONOMIC
DEVELOPMENT
II-‐172
partnerships
and
financing
models
in
the
future
to
replace
the
Agency’s
efforts.
In
addition,
the
City
has
a
vested
interest
in
encouraging
legislative
efforts
to
reintroduce
redevelopment
or
another
economic
development
tool
at
the
State
level
in
the
future.
The
City’s
economy
directly
impacts
government’s
ability
to
provide
services.
La
Quinta
relies
on
a
large
number
of
revenue
sources
from
regional
and
state
programs
and
agencies,
but
is
dependent
on
three
sources
of
revenue
for
general
services:
sales
tax,
property
tax
and
transient
occupancy
tax.
Although
all
revenues
have
been
reduced
in
recent
years,
Table
II-‐15
shows
the
major
sources
of
revenue
received
by
the
City.
Table
II-‐15
Major
General
Fund
Revenue
Sources,
2008-‐2012
2008-‐09
2009-‐10
2010-‐11
2011-‐12
Property
Tax
$5,681,900
$5,406,000
$6,509,500
$5,957,300
Sales
Tax
$9,062,000
$7,490,000
$6,637,000
$7,136,000
Transient
Occupancy
Tax
$5,600,000
$4,128,000
$4,000,000
$4,500,000
Motor
Vehicle
In
Lieu
Fees
$3,942,100
$3,931,500
$3,627,800
$3,315,000
Franchise
Fees
$1,764,400
$1,584,500
$1,454,600
$1,457,730
Total
$26,050,400
$22,540,000
$22,228,900
$22,366,030
Source:
2011-‐2012
City
Budget
Because
of
the
current
recession,
all
income
sources
have
been
significantly
reduced.
As
a
result,
the
City
has
considered
and
implemented
revenue
enhancements
and
reductions
in
expenditures
to
counter
the
revenue
losses.
Although
through
the
life
of
this
General
Plan
economic
downturns
and
upturns
will
continue
to
occur,
the
City’s
ability
to
carefully
plan
for
downturns
by
expanding
reserves
during
upturns
will
be
critical
to
the
City’s
long
term
economic
health.
As
described
in
the
Parks
and
Recreation
and
Public
Facilities
elements
of
this
document,
the
City
still
intends
to
provide
its
residents
with
a
full
range
of
services,
and
preserve
its
quality
of
life
in
the
long
term.
In
order
to
meet
the
demand,
the
City
must
assure
that
sufficient
revenue
is
generated
to
provide
these
services.
ECONOMIC
DEVELOPMENT
II-‐173
PLANNING
FOR
THE
FUTURE
The
City
will
continue
to
experience
economic
growth
and
downturns
throughout
the
life
of
this
General
Plan.
In
order
to
protect
the
services
the
City
provides
its
residents,
the
City
will
need
to
continue
to
adapt
and
grow
to
stabilize
its
revenues
and
expenditures.
An
economic
analysis
was
conducted
to
determine
the
costs
and
revenues
associated
with
the
build
out
of
the
Land
Use
Map.
That
analysis
found
that
the
City’s
revenues
could
increase
to
$115.1
million
annually,
including
considerable
increases
in
transient
occupancy
tax
and
sales
tax.
The
analysis
also
found,
however,
that
expenditures
could
rise
to
$121.2
million,
including
general
services,
public
safety
and
recreation.
This
is
primarily
due
to
the
costs
associated
with
providing
services
to
residential
development,
which
does
not
‘pay
for
itself’
in
terms
of
revenue
generation
to
the
City.
As
a
result
of
the
high
number
of
residential
units
in
the
City,
revenue
generating
land
uses,
including
commercial
and
resort
development
in
particular,
may
need
to
be
expanded
and
enhanced
to
assure
long
term
economic
stability.
The
Land
Use
Element
identifies
the
potential
for
3.2
million
square
feet
of
commercial
space,
including
resort
hotel,
retail
and
office
space
in
the
City
limits
at
build
out.
The
effective
use
of
this
space,
particularly
for
revenue
generating
businesses,
hotels
and
resorts,
is
key
to
the
City’s
economic
health.
At
build
out
of
the
City,
the
660
acres
of
General
Commercial
and
Village
Commercial
land
could
generate
$24.1
million
annually
in
sales
tax
revenue
to
the
City,
more
than
tripling
that
revenue
source.
However,
it
is
critical
that
the
uses
that
develop
on
these
lands
be
primarily
focused
upon
generating
sales
tax
revenue,
such
as
retail
uses,
while
carefully
balancing
other
important
land
uses
with
less
revenue
potential,
such
as
professional
office
developments.
The
City
must
also
consider
the
potential
for
the
redevelopment
and
expansion
of
existing
retail
centers
over
the
life
of
the
General
Plan,
to
assure
that
under-‐performing
projects
do
not
limit
the
potential
for
revenue
in
the
long
term.
The
incorporation
of
Mixed
Use
in
the
Zoning
Ordinance
for
all
General
Commercial
and
Village
Commercial
lands
also
provides
the
City
with
an
opportunity
to
increase
revenues
and
limit
costs.
The
synergies
associated
with
Mixed
Use
can
reduce
vehicle
trips
(and
the
associated
road
maintenance
costs),
increase
the
use
of
transit,
and
allow
the
addition
of
residential
units
in
tandem
with
higher
revenue
commercial
projects.
Mixed
Use
development
in
the
future
may
facilitate
a
more
ECONOMIC
DEVELOPMENT
II-‐174
balanced
cost-‐revenue
for
the
City,
and
should
be
considered
on
that
basis
as
projects
are
proposed.
The
ability
of
the
City
to
provide
a
full
range
of
services
and
a
high
quality
of
life
is
directly
tied
to
its
annual
budget.
The
Land
Use
Map
establishes
the
development
potential
of
lands
within
the
City
and
its
Sphere
of
Influence.
Based
on
this
Map
and
the
development
potential
associated
with
it,
an
analysis
of
potential
revenues
and
costs
to
the
City’s
General
Fund
was
prepared.
The
assumptions
included
the
following
components:
For
residential
development
in
the
City,
a
total
of
31,603
units,
and
a
build
out
population
of
79,956
at
100%
occupancy.
For
residential
development
in
the
Sphere,
a
total
of
21,500
units,
and
a
build
out
population
of
54,395
at
100%
occupancy.
For
commercial
development
throughout
the
City
and
Sphere,
building
coverage
of
22%.
For
industrial
development
in
the
Sphere,
building
coverage
of
22%.
For
Tourist
Commercial
lands,
a
total
of
3,074
hotel
rooms
(including
1,160
rooms
at
SilverRock
Resort
and
500
rooms
at
the
Travertine
project),
with
an
average
occupancy
rate
of
65%,
and
a
hotel
room
rate
averaging
$184.
As
shown
in
Table
II-‐16
below,
the
analysis
concludes
a
negative
cash
flow
to
the
City.
The
analysis
then
added
the
build
out
of
the
Sphere
of
Influence,
based
on
the
Land
Use
designations
assigned
on
the
La
Quinta
Land
Use
Map.
As
shown
in
Table
II-‐17,
below,
the
analysis
identifies
that
build
out
of
the
Sphere
of
Influence
significantly
increases
the
negative
cash
flow
the
City
will
experience.
ECONOMIC
DEVELOPMENT
II-‐175
Table
II-‐16
Buildout
Revenues
and
Costs
City
Limits
Only
REVENUES
TAXES
Property
Tax
$14,139,771
Document
Transfer
Tax
$826,658
Sales
Tax
$
24,088,281
Transient
Occupancy
Tax
$
40,529,562
Franchise
Tax
$
7,098,909
LICENSES
AND
FEES
Business
License
$
953,993
Animal
License
$
151,964
Development
Permits
$472,444
Miscellaneous
Permits
$
225,801
General
Government
Fees
$
21,709
Community
Service
Fees
$
1,649,899
Departmental
Fees
$
1,888,387
INTERGOVERNMENTAL
Motor
Vehicle
In-‐Lieu
$
8,833,184
MVLF
$
424,302
Fines
and
Forefeitures
$
1,584,772
Other
$852,944
OTHER
REVENUE
Miscellaneous
Revenue
$
434,184
REIMBURSEMENTS
Gas
Tax
Fund
$
5,369,673
Landscaping
&
Lighting
$
1,040,606
Library
&
Museum
$
4,327,862
TOTAL
REVENUES
$114,914,907
EXPENDITURES
GENERAL
GOVERNMENT
Legislative
$
2,395,945
City
Manager
$
1,135,769
Development
Services
$
4,534,437
Management
Services
$
3,659,078
City
Clerk
$
1,849,570
Finance
$
3,195,626
Community
Services
$14,388,927
Building
&
Safety
$
11,713,218
Planning
$
4,564,809
Public
Works
$
15,245,973
POLICE
$
58,468,000
TOTAL
EXPENDITURES
$121,151,351
Net
Impact
$(6,236,444)
ECONOMIC
DEVELOPMENT
II-‐176
Table
II-‐17
Buildout
Revenues
and
Costs
City
and
Sphere
of
Influence
REVENUES
TAXES
Property
Tax
$24,149,225
Document
Transfer
Tax
$1,361,634
Sales
Tax
$
34,496,740
Transient
Occupancy
Tax
$
40,529,562
Franchise
Tax
$
12,243,046
LICENSES
AND
FEES
Business
License
$
1,086,151
Animal
License
$
262,084
Development
Permits
$
814,795
Miscellaneous
Permits
$
389,424
General
Government
Fees
$
37,441
Community
Service
Fees
$
2,845,479
Departmental
Fees
$
3,256,784
INTERGOVERNMENTAL
Motor
Vehicle
In-‐Lieu
$
15,086,138
MVLF
$
731,768
Fines
and
Forefeitures
$
2,733,157
Other
$1,299,247
OTHER
REVENUE
Miscellaneous
Revenue
$
748,810
REIMBURSEMENTS
Gas
Tax
Fund
$
9,257,806
Landscaping
&
Lighting
$
1,040,606
Library
&
Museum
$
4,327,862
TOTAL
REVENUES
$156,697,758
EXPENDITURES
GENERAL
GOVERNMENT
Legislative
2,395,945
City
Manager
1,135,769
Development
Services
4,534,437
Management
Services
3,659,078
City
Clerk
2,132,733
Finance
3,195,625
Community
Services
19,847,690
Building
&
Safety
17,459,664
Planning
6,719,998
Public
Works
16,737,998
POLICE
92,817,000
TOTAL
EXPENDITURES
$170,635,905
Net
Impact
$(13,938,147)
ECONOMIC
DEVELOPMENT
II-‐177
In
order
to
assure
that
the
City
continues
to
receive
at
least
as
much
revenue
as
it
has
expenses,
the
fiscal
impacts
of
future
development
projects
and
annexations
must
be
carefully
monitored.
The
City
must
continue
to
fully
consider
the
importance
of
the
resort
industry
in
its
planning.
Catering
to
a
broad
range
of
visitors
–
from
hotel
guests
to
winter
residents
–
and
assuring
that
their
needs
are
met
is
vital
to
the
City’s
economy.
The
land
designated
for
tourist
commercial
development,
particularly
the
hotel
sites
at
SilverRock
Resort,
have
the
potential
to
increase
transient
occupancy
tax
from
its
current
$4.5
million
annually
to
as
much
as
$40.5
million.
The
City’s
Economic
Development
Plan
has
focused
on
SilverRock’s
hotel
and
tourist
retail
development
in
the
past,
and
the
City
must
continue
to
promote
and
market
the
property
for
these
uses
in
the
future.
By
2035,
the
City’s
core
will
likely
be
built
out
and
the
Highway
111
corridor
will
have
experienced
significant
reuse
and
redevelopment.
Care
must
be
taken
to
assure
that
the
development
that
replaces
existing
projects
is
geared
to
meet
future
trends
and
opportunities.
The
City
must
also
consider
carefully
the
balance
of
costs
and
revenues
when
considering
expansion
of
its
boundaries
into
its
Sphere
of
Influence.
Although
the
recent
elimination
of
redevelopment
in
California
will
have
changed
the
revenue
potential
for
this
area,
the
City
must
fully
consider
costs
and
revenues
when
contemplating
future
annexations.
The
annexation
of
the
Sphere
of
Influence
has
the
potential
to
be
a
financial
drain
on
the
City,
if
development
is
primarily
residential
in
nature.
Of
particular
concern
is
that
this
area
will
not
generate
any
property
tax
revenue
for
many
years
to
come,
due
to
bonded
indebtedness
of
Riverside
County.
If
residential
lands
are
to
be
annexed,
these
lands
will
need
to
offset
their
fiscal
impact
to
the
City
to
assure
that
the
annexation
is
revenue
neutral.
The
Master
Plan
for
the
east
Sphere,
and
annexation
proposals
in
the
future,
must
demonstrate
a
balance
between
costs
and
revenues,
and
may
need
to
be
revenue-‐positive
in
order
to
be
supportable.
The
City’s
Economic
Development
Plan
will
continue
to
be
a
valuable
tool
to
guide
future
revenue
expansion
in
the
City.
As
an
annually
updated
document,
it
can
respond
quickly
to
changes
in
market
trends,
and
direct
the
City’s
focus
to
take
advantage
of
these
opportunities.
ECONOMIC
DEVELOPMENT
II-‐178
GOALS,
POLICIES
AND
PROGRAMS
GOAL
ED-‐1
A
balanced
and
varied
economic
base
which
provides
fiscal
stability
to
the
City,
and
a
broad
range
of
goods
and
services
to
its
residents
and
the
region.
v Policy
ED-‐1.1
The
Land
Use
Element
shall
maintain
a
balance
of
land
use
designations
to
address
economic
needs,
meet
market
demand,
and
assure
a
wide
range
of
development
opportunities.
Program
ED-‐1.1.a:
Use
the
City’s
GIS
capabilities
to
annually
monitor
the
remaining
capacity
of
vacant
and
under-‐utilized
lands
to
assure
that
sufficient
inventory
exists
to
address
market
needs.
Program
ED-‐1.1.b:
Development
proposal
review
for
commercial
development
shall
include
consideration
of
the
proposal’s
compatibility
with
surrounding
existing
uses,
its
efficient
and
revenue-‐generating
use
of
the
land,
and
its
compatibility
with
the
City’s
Economic
Development
Plan.
v Policy
ED-‐1.2
Support
and
assist
in
the
retention
of
existing
businesses,
and
the
recruitment
of
new
businesses.
Program
ED-‐1.2.a:
Continue
to
annually
update
and
implement
the
City’s
Economic
Development
Plan.
Program
ED-‐1.2.b:
Participate,
where
feasible
and
justifiable,
in
public/private
partnerships
or
other
means
for
the
retention
of
existing
businesses,
and
the
development
of
new
projects
which
generate
significant
economic
activity.
Program
ED-‐1.2.c:
Focus
marketing
and
publicity
efforts
on
the
commercial
and
resort
sectors,
as
revenue
generation
sources.
Program
ED-‐1.2.d:
Every
five
years,
in
the
Economic
Development
Plan,
complete
an
analysis
of
existing
commercial
projects
to
identify
under-‐performing
locations,
and
develop
ECONOMIC
DEVELOPMENT
II-‐179
strategies
and
public/private
partnerships
to
improve
or
redevelop
these
projects.
Program
ED-‐1.2.e:
Establish
a
program
to
regularly
monitor
City
costs
and
revenues
based
on
existing
development
and
projected
development
allowed
under
the
Land
Use
Map.
Consider
amendments
to
the
Land
Use
Map
to
increase
revenue
generation
potential,
based
on
the
cost
revenue
analysis
and
sound
economic
forecasting.
Program
ED-‐1.2.f:
Improve
and
enhance
the
City’s
application
process
for
commercial
development
proposals.
v Policy
ED-‐1.3
Encourage
the
expansion
of
the
Village
as
a
specialty
retail,
dining
and
residential
destination.
Program
ED-‐1.3.a:
Maintain,
in
the
Zoning
Ordinance,
standards
and
guidelines
that
encourage
the
development
of
a
pedestrian-‐friendly,
interconnected
neighborhood
with
a
balance
of
residential
and
commercial
development.
Program
ED-‐1.3.b:
Include
the
Village
in
the
Mixed
Use
Overlay
in
the
Zoning
Ordinance.
Program
ED-‐1.3.c:
Continue
to
sponsor
and
support
special
events
in
the
Village
and
at
the
Civic
Center,
as
a
means
of
attracting
visitors
to
the
area.
v Policy
ED-‐1.4
Support
and
facilitate
the
reuse
and
redevelopment
of
commercial
projects
on
Highway
111.
Program
ED-‐1.4.a:
As
provided
in
the
Land
Use
Element,
establish
comprehensive
standards
for
Mixed
Use
development
in
commercial
zones.
Program
ED-‐1.4.b:
Development
proposals
for
the
reuse
and
redevelopment
of
existing
projects
shall
be
encouraged
to
implement
creative
design,
include
pedestrian
access,
and
facilitate
transit
and
alternative
transportation.
ECONOMIC
DEVELOPMENT
II-‐180
v Policy
ED-‐1.5
Projects
proposed
on
commercial
land
shall
be
evaluated
for
their
job
creating
and
revenue
generating
potential.
Program
ED-‐1.5.a:
The
City
may
require
the
preparation
of
fiscal
impact
analyses
for
commercial
projects
when
deemed
appropriate
in
the
application
review
process.
v Policy
ED-‐1.6
Assure
that
all
revenues
due
to
the
City
are
collected.
Program
ED-‐1.6.a:
Establish
and
maintain
a
comprehensive
program
to
enforce
the
payment
of
transient
occupancy
tax,
sales
tax,
and
other
fees
and
licenses
due
to
the
City.
v Policy
ED-‐1.7
All
annexation
applications
by
land
owners
shall
include
a
fiscal
analysis
that
fully
addresses
the
fiscal
impact
of
the
proposed
annexation.
Subsequently,
all
annexation
applications
shall
also
include
a
Development
Agreement
application
or
other
mechanism
that
demonstrates
how
the
annexation
will
be
revenue
neutral
or
revenue
positive
for
the
City.
v Policy
ED-‐1.8
Aggressively
lobby
for
the
passage
of
legislation
that
restores
redevelopment
funds
to
local
jurisdictions,
or
provides
other
equivalent
economic
development
tools.
GOAL
ED-‐2
The
continued
growth
of
the
tourism
and
resort
industries
in
the
C ity.
v Policy
ED-‐2.1
Actively
pursue
the
build
out
of
the
SilverRock
Resort.
Program
ED-‐2.1.a:
Through
the
City’s
Economic
Development
Plan,
annually
review
the
land
use
allocation
within
SilverRock’s
Specific
Plan
to
assure
that
future
development
meets
market
needs
and
generates
a
long
term
revenue
stream
for
the
City.
Program
ED-‐2.1.b:
Continue
to
promote
professional
and
amateur
golf
tournaments,
activities
and
events
that
publicize
SilverRock
in
the
local,
state
and
national
media.
ECONOMIC
DEVELOPMENT
II-‐181
v Policy
ED-‐2.2
Support
increased
room
occupancy
at
the
City’s
existing
hotels
and
resorts.
Program
ED-‐2.2.a:
Continue
to
participate
in
co-‐op
marketing,
and
include
the
City’s
resorts
and
hotels
in
City-‐sponsored
marketing
and
advertising
efforts.
Program
ED-‐2.2.b:
Incorporate
short
term
vacation
rentals
into
the
City’s
transient
occupancy
tax
revenues.
Program
ED-‐2.2.c:
Consider
incentive
programs
for
hotel
remodeling
and
refurbishing,
tied
to
increased
transient
occupancy
tax
revenue
generation
in
the
future.
v Policy
ED-‐2.3
Actively
pursue
the
development
of
additional
hotel
properties
in
all
economic
ranges,
to
accommodate
all
segments
of
the
visitor
market.
RELATED
GOALS
GOAL
LU-‐2:
High
quality
design
that
complements
and
enhances
the
City.
GOAL
CIR-‐1:
A
transportation
and
circulation
network
that
efficiently,
safely
and
economically
moves
people,
vehicles,
and
goods
using
facilities
that
meet
the
current
demands
and
projected
needs
of
the
City.
GOAL
LU-‐6:
A
balanced
and
varied
economic
base
which
provides
a
broad
range
of
goods
and
services
to
the
City’s
residents
and
the
region.
GOAL
SC-‐1:
A
community
that
provides
the
best
possible
quality
of
life
for
all
its
residents.