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2003 09 30 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY SPECIAL MEETING MINUTES SEPTEMBER 30, 2003 A special meeting of the La Quinta Redevelopment Agency was called to order by Chairperson Terry Henderson, at the hour of 10:00 a.m. PRESENT: Agency Members Adolph, Osborne, Perkins, Sniff and Chairperson Henderson ABSENT' None Chairperson Henderson reviewed the reason for holding this special meeting is to interview professional groups for the purpose of selecting a public relations/ marketing firm 'for SilverRock Ranch. She indicated each candidate would be allowed a total of one hour for their presentations, starting with a 20-minute presentation by each firm, followed by a question and answer period. She established a time limit of five (5) minutes for each member of the agency to ask questions of the applicants. Presentation by McLaughlin Marketing and Communications Michelle McLaughlin outlined the proposed strategy they have developed for the marketing and public relations for the SilverRock Ranch project. John Hussar then presented the plan they recommend for publicity. He stated they would emphasize SilverRock Ranch is the first Arnold Palmer public golf course. They also would suggest a tie-in with the grand opening of the Palmer Restaurant. Christine Van de Yacht spoke regarding the marketing team's prior invOlvement with redevelopment agencies and the selection of the development team. Ms. McLaughlin explained some of the concepts they've developed such as the pre-promotional projects which would include "stay and play" events and tournament sales. She stated they would recommend the first stage be the "branding process." Agency Member Osborne questioned if the Creative Director David Everett was present and was informed he was on an urgent deadline and was unable to attend this presentation. Agency Member Osborne asked if the firm sees this as an 18- month project or if it was their intention to develop strategies to continue past the first 18 months. Ms. McLaughlin replied that was definitely their intent. Redevelopment Agency Minutes 2 September 30, 2003 Agency Member Sniff asked if their firm "sells the steak or the sizzle?" Ms. Van de Yacht replied the "sizzle" is the branding of the project while the steak represents the project itself. Agency Member Sniff then asked if they "sell the reality or the dream?" Ms. Van de Yacht said, in her opinion, they try to sell the dream as well as the experience. Agency Member Sniff asked who and in what order are the target markets. Mr. Hussar replied their major target markets would be the avid golfer and the Southern California area with the Pacific Northwest area serving as an example of a major secondary market. Agency Member Sniff questioned how they would use Arnold Palmer in their strategy. Ms. McLaughlin replied his name alone carries with it a great deal of "equity." Agency Member Adolph expressed his concern regarding the use of the contract time for Mr. Palmer. Ms. McLaughlin said she hasn't seen the contract but never intended to use time spelled out in the City's agreement with Mr. Palmer. Agency Member Adolph stressed the importance of the hotel and retail properties as key components of the project and its success. Agency Member Perkins questioned how the McLaughlin group would go about working with mixed messages from the Agency Members and possibly staff. Ms. McLaughlin said they would check with and rely on the information and direction they received from the City's project manager. Member Perkins asked for a definition of a FAM trip as mentioned in the proposal. Ms. McLaughlin responded that it stood for a familiarization trip. Agency Member Perkins asked for an explanation of "branding." Ms. Van de Yacht replied branding is a process which creates an emotional response to a particular product or project. She felt it is what makes someone want to see what is happening and creates the image of a truly unique environment rather than just another golf course. Agency Chairperson Henderson asked if the McLaughlin group is currently working with another similar project in the Coachella Valley. Ms. McLaughlin responded, "No, not at this time." Chairperson Henderson asked if, in their opinion, they have the strong connections it would take to reach large hotel developers. Ms. McLaughlin said they have formed connections working on other projects such as the Miramonte Resort, Hyatt Grand Champions and the Renaissance Esmeralda Resort. Redevelopment Agency Minutes 3 September 30, 2003 RECESS The'agency took a recess at 11:00 a.m. and reconvened at 11' 10 a.m. Presentation by In One Advertising and Design Chairperson Henderson invited the personnel of In One Advertising to make their presentation to the agency. Kim Allison, President of In One Advertising stated that she and Mark Tansey, President of Sunrise Golf Group will partner in this venture and stated they have worked together very well in the past while both were with American Golf. She explained that Mr. Tansey will serve as the "point person" and primary liaison with the City because he is a full-time resident of the Coachella Valley. She also introduced Cindy Elliott, Director of Public Relations for In One Advertising and Design. Ms. Alliso. n said the approach they will take is to blend the concrete information about the project with a very'high level of creativity. She felt they can combine their collective experience with input from the City's team of professionals to assure a successful marketing effort. Agency Member Sniff asked if they "sell the steak or the sizzle?" Ms. Allison responded the branding is the sizzle and the project is the steak, so her answer would be they sell the sizzle. Agency Member Sniff asked what resources would be used to do this. Mr. Tansey replied their efforts would center on public relations coverage, print media both local and national, direct mail for communication with residents and for presales of tournaments. He also listed advertising which could possibly utilize television spots, although he felt the cost might not pencil out, and a Grand Opening "Splash." In response to Agency Member Sniff's question he stated the three principle markets would be avid golfers, tourist golfers and local golfers. Agency Member Adolph stated he felt 99% of the presentation from Ms. Allison and Mr. Tansey was on golf. He feels the project is much larger than the golf courses. With regard to the hotels and the retail he asked what they would bring that is special. Mr. Tansey stated they understood all the important elements of the project but they feel at this time the target audience is the golfers. He added they stay in the hotels longer than other visitors and the big draw to the hotels and retail shops will be golf. Redevelopment Agency Minutes 4 September 30, 2003 Agency Member Perkins asked how they would go about attracting high-quality hotel groups. Ms. Allison responded that the draw of the Arnold Palmer name, the beautiful and unique mountain location, and the length of the golf season in La Quinta are all inducements they can be incorporated in their marketing plan. Chairperson Henderson asked if their companies have entree to the hospitality market. Ms. Allison stated their experience while employed with American Golf provided them with a number of good contacts. Chairperson Henderson asked if they are working on any other project in the Valley currently. Mr. Tansey replied not at the present time. Agency Member Osborne asked about their experience in the Coachella Valley. Mr. Tansey listed public relations work with the Golf Resort at Indian Wells, Cimarron Golf Resort and Mesquite Country Club. Agency Member Adolph asked if they have worked on other multi-faceted projects such as this. Mr. Tansey replied he had been involved in all phases of the development and operation of Mansion Ridge in Hershey, Pennsylvania. RECESS: Chairperson Henderson called a lunch recess at 12:10 p.m. 1:00 p.m. Chairperson Henderson reconvened the special meeting of the La Quinta Redevelopment Meeting at 1:02 p.m. with all Agency Members present. Presentation by Kiner/Goodsell Advertising. Scott Kiner, CEO/Managing Partner of Kiner/Goodsell Advertising introduced the presentation and the project team; Lea Goodsell, President/Account Supervisor; Tom Jordan, Public Relations Director, Andrea Carter, Account Executive and Scott Burch, the Director of Graphic Services who was unable to be present. Lea Goodsell outlined the company's philosophy for the approach to marketing this project. She stated they believe a strong media relations campaign to introduce SilverRock to the public would be their initial thrust. The second emphasis during the same time period would be to build up to the opening of the first course by creating the branding and promotion plan. Tom Jordan outlined his experience in public relations and in the media, including work as a broadcast journalist, radio and television news anchor. Redevelopment Agency Minutes 5 September 30, 2003 Andrea Carter gave a history of the relationship Kiner/Goodsell Advertising has had with the City of La Quinta. She also outlined the firm's experience with other clients in the Coachella Valley such as Desert Willow Golf Resort, Morningside, Desert Horizons Country Club, Traditions Golf Club and the Bob Hope Chrysler Classic. Agency Member Perkins questioned the deadline date for the logo creation. Ms. Goodsell said they will fast-track this as much as possible. Member Perkins asked if Kiner/Goodsell has handled any other projects of this size and scope. Ms. Goodsell said from the public relations standpoint they handled the Desert Willow Course PR and have also been involved with the Trilogy project. Agency Member Osborne asked what the relationship was between Kiner/Goodsell and the Tahquitz Course, which is also an Arnold Palmer design. Ms. Goodsell said she served as the advertising account executive for Tahquitz Creek and the Palmer name was the single most important thing in that marketing campaign. Member Osborne asked how they felt they might be of assistance in attracting other investors such as hotel and resort retail .operators. Ms. Goodsell said her involvement with the Tahquitz Creek Resort, Desert Willow Resort, Marriott's Desert Springs and Rancho Las Palmas has given her a number of valuable contacts within the retail and hospitality industries. Agency Member Sniff asked what they sell, "the steak or the sizzle." Ms. Carter responded that they would sell the "experience." Member Sniff then asked if they would sell the "reality or the dream?" Ms. Carter said the experience is real and the approach would be to reach the most likely consumers, i.e. the local residents and when the hotel comes online the shift would be to the broader national audience. Agency Member Sniff asked, "How important is the Palmer name?" Ms. Goodsell said the Palmer name is unique since this will be the first municipal course he has designed and will be the first to offer local residents and tourists the opPortunity to play a Palmer course at a very reasonable cost. Chairperson Henderson asked what other projects, of this sort, is the firm presently working on. Scott Kiner replied they are working on the Trilogy project but that differs in that it is a golf course built to sell real estate while this project will be a multi-segmented project. Agency Member Osborne asked what, in their opinion, would be the three most important ~areas for success in marketing this development. Lea Goodsell said she feels the logo design and branding are very important and the choice of the media selected to promote the project. Redevelopment Agency Minutes 6 September 30, 2003 Agency Member Sniff asked what they feel are the three most important media choices. Ms. Goodsell replied carefully-targeted magazines, television and the internet. Member Sniff asked if there should be a famous, recognizable spokesperson for the project. Ms. Goodsell said she feels that would be in conflict with the emphasis on Arnold Palmer who is a famous, recognizable personality. Chairperson Henderson thanked them for their presentation. Presentation by McMurry, Inc. Stephen Williams, Vice President of Business Development for McMurry, Inc. introduced the presentation team consisting of Bruce Nilsson, General Manager/Vice President and Creative Director and Duane Knapp, principal of BrandStrategy, Inc. Mr. Nilsson outlined the firm's marketing strategy and introduced what he called a McMurry bonus. He advised the agency they currently own and publish the Ritz Carlton monthly magazine and Arrive Magazine. He said since they own these publications they have the ability to design and feature their client's advertisements at very advantageous prices and in the most select positions in the publications. In response to Agency Member Perkins he said the value of this bonus from McMurry would be approximately $725,000. Agency Member Perkins asked how Mr. Williams felt they could assist the City with regard to marketing the project to prominent hotels. Mr. Williams remarked they feel confident they can effectively reach this market segment since they presently market the Ritz Carlton. He felt they would be able to provide excellent contacts and guidance in this area of the project's marketing. Agency Member Osborne questioned who would be leading their marketing team for the SilverRock development. Mr. Nilsson stated they have put together a team of experts which will be lead by Mr. Williams and himself. He said this team of consultants will include: Duane Knapp of BrandStrategy who will head up the branding effort; brand identification and design will be by Mark Palmer of Mark Palmer Design; serving as Cultural and Historical Guardian will be Judy Vossler; local, regional and national public relations will be the responsibility of Carol Ackerman; golf promotions will be lead by Gregory Hood; national and regional tourism and hospitality will be under the oversight of Mark McDermott and the master development consultant will be Gil Martinez of GMA International. Redevelopment AgenCy Minutes 7 September 30, 2003 Agency Member Sniff asked if McMurry, Inc. sells ~the steak or the sizzle?" Mr. Knapp said their approach would be to sell both, the steak being the City of La Quinta and the uniqueness of the property and the sizzle being the lasting impression and experience. Agency Member Adolph commented he was happy that the presentation emphasized the total project, not just the golf aspect. Chairperson Henderson asked if they are marketing any other project of this nature in Southern California. Mr. Nilsson responded they have no other projects in Southern California at this time. Chairperson Henderson stated she is impressed with the ability of this company to produce a high quality magazine that reaches a · large audience through the hospitality industry. Mr. Nilsson responded this is certainly a plus as it relates to addressing the City's project in the print media since McMurry, Inc. is already producing two magazines. Chairperson Henderson asked how they would recommend showcasing the project's hiking trails. Mr. Knapp responded this can be addressed through their database of hiking enthusiasts. He also pointed out that articles about hiking trails are very compatible with publications directed toward boutique spa hotels. Chairperson Henderson thanked the presenting team on behalf of the agency. Printed ballots were distributed to the members of the agency by City Clerk Greek. Upon tallying the results of the votes cast by the members she announced four (4) ballots had been cast for McMurry, Inc., with one ballot cast for Kiner/Goodsell. MOTION -It was moved by Agency Members Osborne/Adolph to authorize staff to negotiate a contract for professional services with McMurry, Inc. The motion was unanimously approved. ADJOURNMENT It was moved and seconded by Agency Members Adolph/Sniff at 3:38 p.m. to adjourn to the next regularly scheduled meeting of the Redevelopment Agency to be held on October 7, 2003 at 3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. The motion was unanimously carried. /. Respectfully submitted' June S. Greek, CMC City Clerk