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2018 Highway 111 Corridor Study by ULI Techinical Assistance Panel 2018-07-23Orange County/Inland Orange County/inland Empire CITY OF LA QUINTA HIGHWAY 111 CORRIDOR STUDY ULI TECHNICAL ASSISTANCE PANEL JULY 23, 2018 a.. adittai i= h;{�=DESERT piUrban land Institute PARTICIPANTS ULI OC/ IE LEADERSHIP John R. Williams, Chair, Denise Ashton, Vice Chair, CO-CHAIRS Oscar Uranga, IMG Carol Mentor McDermott, Entitlement Advisors PANELISTS Manuel Bouza, MG2 Andrew Bowden, Land Concern Sheila Cedervall, PlaceWorks Vaughan Davies, Perkins Eastman Stephen Nieto, Southwest Concepts Anthony Petros, LSA Associates Sergio Ramirez, City of Lang Beach Robert Reicher, The Reicher Company Carl Rieger, Eastdil Secured Spencer Wampole, The Wampole Group ULI STAFF & SUPPORT Kendra Chandler, Executive Director ULI OC/IE Stacy Greer, District Council Manager, ULI OC/IE Katie Hoist, Senior Associate, ULI OC/IE CITY OF LA QUINTA Frank Spevacek, City Manager Gabriel Perez, Planning Manager Karla Campos, Finance Director Brian McKinney, City Engineer STAKE HOLDERS Carter McLarand, Shopoff Realty Kevin McCune, LQ Planning Commission Pablo Rodriguez, Coldwell Banker Tom Kirk, CVAG Martin Magana, CVAG Les Johnson, City of Indio Josh Bonner, Greater CV Chamber of Commerce David Gassaway, City of Indian Wells Jack Tarr, Lee and Associates Maggie Montez, Lee and Associates Michael Proctor, LQ Planning Commission Robert Wright, LQ Planning Commission, East Valley Coalition Brian Tracy, Retail Net Lease Properties Michael Walsh, Rivco Housing Authority Anita Petke, Sunline Transit Agency Philip Bettencourt, LQ Planning Commission James Brownyard, Desert Valley Builders Association Steven Chaffee, Harsch Investment Properties Jeff Robinson, Coldwell Banker Brian Tracy, Retail Net Lease Properties GUIDING PRINCIPLE The final outcome of every TAP is that it is transparent, objective, and unique.. TABLE OF CONTENTS 1. INTRODUCTION 1 The Urban Land Institute 2 The TAP Process 2 Scope of Work 4 2. OBSERVATIONS 5 Study Area Characteristics 6 Market Findings 9 Implications / Conclusions 17 Focus Groups 21 CV Link 22 3. RECOMMENDATIONS 25 Land Use Analysis 27 Urbanization Mechanisms 28 Landscape Design 34 Public Policy Recommendations 40 Finance Recommendations 41 4. IMPLEMENTATION 43 Current Trends 44 Final Analysis 46 5. BIOGRAPHIES 49 LIST OF FIGURES 1. THE TAP PROCESS 1 2. REGIONAL CONTEXT MAP 5 3. HWY 1 1 1 STUDY AREA 7 4. STUDY AREA SURFACE PARKING 8 5. 10 MILE RADIUS TRADE AREA 9 6. ECOMMERCE VS STORES 10 7. HWY 1 1 1 RETAIL LOCATIONS 12 8. AUTO DEALERSHIP LOCATIONS 13 9. ECOMMERCE SALES BY CATEGORY 16 10. PROPOSED CENTER LA QUINTA 19 11. PROPOSED CV LINK ALIGNMENT 22 12. PRELIMINARY STUDIES 24 13. PHASED CATALYST SITES 27 14. PEDESTRIAN THEMED DISTRICTS 29 15. EVENT DISTRICT OPPORTUNITIES 31 16. STREET CONNECTIONS 34 17. LANDSCAPE FRAMEWORK 35 18. HWY. 1 1 1 SECTION 35 19. HWY. 1 1 1 INTERSECTION TREATMENT 36 20. INTERIOR GREEN STREET SECTION 37 21. PLANTS: TREES & SHRUBS 38 22. PLANTS: SUCCULENTS &GROUND COVER 39 LIST OF TABLES 1. RENTABLE RETAIL SPACE 11 1. INTRODUCTION Technological advancements have brought many changes in the way we live our daily lives. This trend is likely to continue as major shifts continue to come forth. These changes have affected consumer spending habits, with more and more single purchase "chore shopping" moving online, disrupting the traditional big box retail shopping model. This disruption of spending habits raises many questions about the future of retail and the subsequent loss of municipal sales tax revenues. Digital commerce is likely to take over a larger share of retail transactions in the future, as advantages like same day delivery, one -tap purchases, and no charge shipping become the norm. However, strategically positioned municipalities can benefit from anticipating future trends. The City of La Quinta approached the Urban Land Institute (ULI) in January 2018 about the possibility of conducting a Technical Assistance Panel (TAP) to study several aspects of the Highway 1 1 1 Corridor. Because sales taxes collected from purchases within the Corridor account for 70 percent of the City's annual fiscal budget, the City contracted with ULI to evaluate the 460 -acre area surrounding Highway 1 1 1 (Study Area), and recommend potential mechanisms to position it for long term economic viability. Twelve panelists participated in the ULI study, representing a wide range of professions within the real estate development industry, including architecture, landscape architecture, urban planning, marketing, transportation engineering, finance, land development and policy planning. The panelists began their work April 25th, when they gathered for a site tour conducted by City staff members and interviewed local stakeholders. The findings and recommendations of the TAP were presented May 30, 2018 during a Study Session attended by the La Quinta City Council and Planning Commission, as well as members of the public. This report represents a summary of the TAP findings and ideas developed during the process as well as recommendations for future implementation strategies. TECHNICAL ASSISTANCE PANEL pm 1 THE URBAN LAND INSTITUTE The Urban Land Institute (ULI) was founded in 1936, as a non-profit research and education organization. ULI is the oldest and largest network of cross -disciplinary real estate and land use experts in the world The mission of the organization is to provide leadership in the responsible use of land in creating and sustaining thriving communities worldwide. As a nonpartisan organization, ULI has long been recognized as one of America's most respected and widely quoted sources of objective information on urban planning, growth and development. Representing membership of over 30,000 worldwide public and private sector professionals ULI is active in all aspects of land use planning and real estate development. Our members form a spectrum of land use and development disciplines, including developers, investors, designers, public officials, planners, attorneys, engineers, academics and students. ULI Orange County/Inland Empire is one of the largest District Councils in the world. hiQtd,aw 2 HIGHWAY 111 CORRIDOR STUDY THE TAP PROCESS Technical Assistance Panels have been a part of the ULI Advisory services since 1947. Most TAPs are organized at the local level (vs. a national panel) with members volunteering their time as a way of giving back to the community. The process provides the public sector with a tool to solve complex real estate and land use issues in a uniquely objective, transparent way. Local professionals are selected who collectively have varied experience and knowledge applicable to the particular problems to be considered. Panels are organized as one -day or two-day projects, depending on the complexity of the scope of work. Figure 1 at right shows a simplified diagram of the TAP process. The final presentation and report is a joint effort between ULI and the public agency. An implementation strategy is produced based on sound information, community realities, and best practices so that the community receives the best possible result. THE TAP PROCESS FIGURE 1 TAP REQUEST IS SUBMITTED Develop Potential Solutions Establish a scope of work Brainstorm Incorporate Feedback From Presentation Meet with Stakeholders Due Diligence Create the Final Report TECHNICAL ASSISTANCE PANEL 3 SCOPE OF WORK The purpose of the La Quinta TAP effort is to evaluate the Highway 111 Corridor (Study Area) and position it for long-term economic viability. The City is considering the following options for future Corridor planning from the least to most intensive in scope: Option 1: Update Existing Highway 1 1 1 Design Guidelines (landscape, lighting and entry ways). Option 2: Create a Corridor Area Plan which would provide a set of Design Guidelines, traffic analysis and code revisions to guide development along the Corridor. Option 3: Create a Highway 1 1 1 Specific Plan that consolidates all the existing Specific Plans into one plan. The City recently adopted a mixed use overlay for the Study Area, with the La Quinta 2035 General Plan (LQGP). The LQGP's goals and policies call for innovative land uses and mixed use development for the Highway 111 Corridor area. The option that is chosen will carry out the intention of this overlay by specifying the details necessary to implement the vision of the LQGP. The TAP effort is intended to be instrumental in guiding City leaders in best practices and information to make an informed decision on the best path forward for Highway 111 Corridor planning efforts. 4 HIGHWAY 111 CORRIDOR STUDY CITY OF LA QUINTA TAP QUESTIONS TO BE CONSIDERED: 1. What are funding or partnership strategies for improving Corridor aesthetics should the City consider? What is the right design to improve aesthetics and promote business visibility and access? 2. There is concern about the future viability of commercial along Highway 111, the largest tax revenue generator for the City. a. What are the appropriate size and mix of uses? b. What can the City do to promote a vibrant business community? c. How can the City assist commercial uses as e-commerce continues to consume more market share? 3. How could rapidly changing technologies affect the Corridor (autonomous and electric vehicles, Uber / Lyft)? 4. Is vertical mixed use development in the corridor the highest and best use from a City Economic Viability standpoint? 5. What opportunities should City consider when CV Link multi -use trail is constructed? 6. What are the costs and benefits of a complete streets redesign of the Highway 111 Corridor? 7. What policy, land use and development strategies could be implemented now to position the Corridor for the future? REGIONAL CONTEXT MAP FIGURE 2 EmpirePu' aac ells Music • Festival 2. OBSERVATIONS La Quinta is one of seven cities of the Coachella Valley, which is surrounded on three sides by mountains. This geography creates a unique climate characterized by the warmest winters west of the Rocky Mountains, and hot, dry summers. The valley's population varies seasonally from 200,000 in July to around 800,000 by January. Another 3.5 million conventioneers, festival visitors and tourists descend on the valley annually (please refer to Figure 2, Regional Context Map). La Quinta is situated near several world-class destinations including the Indian Wells Tennis Garden, Empire Polo Club, Silver Rock Resort, as well as the annual Coachella Music Festival. These destinations draw an enormous volume of visitors from around the globe needing food and lodging, and having discretionary income to spend. These characteristics provide unique opportunities for potential economic development. TECHNICAL ASSISTANCE PANEL 5 1 Existing placemaking elements, natural features, and monuments along the Highway 111 Corridor. STUDY AREA CHARACTERISTICS The Study Area encompasses approximately 460 acres on both sides of the Highway 111 Corridor, directly south of the Coachella Valley Stormwater Channel. Highway 111 is the major arterial through La Quinta, acting as the gateway to the City and setting the tone for a visitor's experience of the City (please refer to Figure 3, Highway 111 Study Area). The Study Area is surrounded predominantly by single family residential development. La Quinta High School is across the channel, accessible by bridges along Adams Street and Dune Palms Road. The Highway 111 Corridor is a critical, centrally located component of intra regional travel through the Coachella Valley, accommodating 35,000-40,000 vehicles per day. The intersection of Highway 111 and Washington Street is one of the highest volume intersections in the Coachella Valley, carrying over 70,000 vehicles per day. Seventy percent of the total 2016 La Quinta sales tax revenue ($5,785,466.00) was generated by Corridor businesses. Within the Corridor, seventy-five retail, service, and restaurant establishments are currently located within twenty-one commercial and hiQtd,aw 6 HIGHWAY 111 CORRIDOR STUDY office centers employing up to 4,000 people. Existing establishments include Home Depot, Lowe's, Walmart, Kohl's, Cost Plus World Market, Kohl's, Trader Joe's, Sprouts, Best Buy, and Century Theaters. Ensuring the Corridor's economic resilience is essential to the City's future. Other uses within the Study Area include Coral Mountain Apartments, Storquest Self Storage, a vacant Sam's Club location, and several vacant lots including a parcel owned by the City. A large portion of the Study Area is composed of surface parking lots, as shown in Figure 4, Study Area Existing Parking. Parking in some cases was installed in excess of the minimum amount required by local City zoning ordinances. This higher ratio was stipulated by the retailer in most cases to meet peak demand. A major feature of the Study Area is the adjacent CV Link, a forty-nine mile long regional, multi modal pathway planned for the Coachella Valley. The trail will extend along the Coachella Valley Channel from Palm Springs to Thermal. The La Quinta segment of the CV Link is projected to attract 13,500- 16,000 pedestrians, bicyclists, and other users annually. HIGHWAY 111 STUDY AREA FIGURE 3 17, .L.1% EiNiefrnlilli•Ifi 1. 4i 111 'VkaESks 0 CSIO Legend Highway111 Area Boundary Highway 111 Highway 111 Intaserimr; 65' Landscape Setback CV LINK ROUTE (F1JTURE) CV Link Frontage Opporkrnity Vacan Properties - <1rnP throughs Specific P W ns 1. 4Yaslirgton Park 2. Ore Ekren Shelving Center • 3. Jefferson Pias ■ 4. Dune Palms Plaza • Centre at La Out= • 9. La Ouir4 Coryaate Centre .7- Pain! Happy Shopping Career 8- La L7lanla Cott a9 -The Pamlico a! La Ouinta 19. Kolar Desert Gender 11. Dune Palos and EP wday 111 City of La Quinta Planning Division Design old De nrpmena Department January 2D18 TECHNICAL ASSISTANCE PANEL U LI 7 STUDY AREA SURFACE PARKING FIGURE 4 H X0' f'`�IY• r11**Y� 3 1•• it it3 IlYil}}a�HreNfefr Parking lots, potential development opportunities within the Study Area. a HIGHWAY 111 CORRIDOR STUDY 10 MILE RADIUS TRADE AREA BOUNDARY FIGURE 5 ihn.narvl Palms J Aandio M n �q c Pyr.., u�xn 10 MILES tler711.Dutn miles Lo neustar MARKET FINDINGS A marketing report prepared by the Panel defines several economic characteristics of the Coachella Valley "Trade Area" a defined boundary within a ten -mile radius, as shown above in Figure 5. The following section refers to data both within the Trade Area and within the City of La Quinta as noted below. DEMOGRAPHICS A common perception of Coachella Valley residents is that active adults over the age of 65 constitute the majority of the population. However, data shows that this age group represents only 24.6% of all residents, with those age 20 - 64 at 50.9% and the population below age 19 at 24.6%. Those dwelling full time within the Trade Area consist of 298,600 people, which is projected to increase by 6%, or approximately 18,200 persons over the next five years. The share of the population aged 65+ will increase slightly to 25.6 by 2023. Median household income within the trade area is $58,500 per year, and the median home value is $377,450. Average incomes and home values are projected to remain generally flat over the 5 -year period. Data from the 2010 US Census showed owner - occupied homes at 48.9% of the total, with renter units at 21.7% and vacant homes at 29.4%. Seasonal homes make up 20.5% of the dwelling units, with other housing constituting 8.9%. This seasonal flux is a factor that has an effect on the economy in the trade area, with the reduction of summer population resulting in reduced retail activity. TECHNICAL ASSISTANCE PANEL irrn 9 ECOMMERCE VS BRICK AND MORTAR SALES FIGURE 6 RETAIL FINDINGS: OVERALL COACHELLA VALLEY Retail activity plays a key role in the overall economic climate of Coachella Valley. Space inventory for retail totals 30.9 million square feet, of which 4.4 million square feet (14.4%) is currently available for lease. Average asking rent across Coachella Valley is $20.56 per square foot per year, ranging from $13.74 in Coachella to $27.00 in Indian Wells. Retail construction activity across Coachella Valley has been limited since 2008, when more than 1.5 million square feet of space was delivered. In 2014, nearly 1.0 million square feet were completed, but deliveries in all other years during the period were well below 200,000 square feet per year. Net absorption of retail space has been modest, averaging about 123,000 square feet annually valley wide and 9,400 square feet annually in the Trade Area over the past 10 10 HIGHWAY 111 CORRIDOR STUDY years. Retail vacancy rates peaked around 13% in 2011, but have slowly decreased since then, currently standing at 11%. Retail purchases (including food and beverage) by residents of Coachella Valley will total over $7.4 billion during 2018, according to Environics. According to a 2015 Visitor Survey, all Coachella Valley tourist parties spent an average of $121 per day on dining and $115 on retail expenditures. On-line purchases currently represent 8.3% of total retail sales (excluding automotive and fuel sales). Please refer to Figure 6 above, Ecommerce Versus Brick and Mortar Sales. This share is expected to increase to 10.8% by 2020, meaning 89.2% of retail sales will still occur in traditional settings. 12.046- 10.8%? - Q4 2020 e 11.0% - m 0 O z 10.0%- 9046 - 8.0%Q4 7.0% - 8.3% 2016 6.0% - ECOMMERCE TOTAL SHARE OF 4.2% Q1 2009 US RETAIL SALES IS ROUGHLY 9.5% (EXCLUDING AUTOMOTIVE AND FUEL SALES) 3046 p� p� �� S� ^� e'� ^, �A t`1 .'N :9 : ,ry �ry A� \ t'� �� \� 1� �� sb ,y ,y • ,y �� 16 \'% "' �� . K1 11 '� 1� ,� t �� . ,4 " r1..2'S ..4. RO.:1:.i'S . Sl �0.:1:.�S 0: ,A �:ti .!'1 ..D( � .:i:.:Y ..DC �O .:1:.."S .A: �A .:1:.."i : 9[ � ._i: �"� �9 .. �l..:s . L� .1 .:1..:5 ..b� .1 .:1. 3 .� .. RETAIL FINDINGS: OVERALL COACHELLA VALLEY Retail activity plays a key role in the overall economic climate of Coachella Valley. Space inventory for retail totals 30.9 million square feet, of which 4.4 million square feet (14.4%) is currently available for lease. Average asking rent across Coachella Valley is $20.56 per square foot per year, ranging from $13.74 in Coachella to $27.00 in Indian Wells. Retail construction activity across Coachella Valley has been limited since 2008, when more than 1.5 million square feet of space was delivered. In 2014, nearly 1.0 million square feet were completed, but deliveries in all other years during the period were well below 200,000 square feet per year. Net absorption of retail space has been modest, averaging about 123,000 square feet annually valley wide and 9,400 square feet annually in the Trade Area over the past 10 10 HIGHWAY 111 CORRIDOR STUDY years. Retail vacancy rates peaked around 13% in 2011, but have slowly decreased since then, currently standing at 11%. Retail purchases (including food and beverage) by residents of Coachella Valley will total over $7.4 billion during 2018, according to Environics. According to a 2015 Visitor Survey, all Coachella Valley tourist parties spent an average of $121 per day on dining and $115 on retail expenditures. On-line purchases currently represent 8.3% of total retail sales (excluding automotive and fuel sales). Please refer to Figure 6 above, Ecommerce Versus Brick and Mortar Sales. This share is expected to increase to 10.8% by 2020, meaning 89.2% of retail sales will still occur in traditional settings. RENTABLE RETAIL SPACE WITHIN LA QUINTA TABLE 1 SUMMARY OF RETAIL FINDINGS: CITY OF LA QUINTA La Quinta (particularly the Highway 111 Corridor) plays an important role in the retail world of Coachella Valley. Residents of the defined Trade Area will spend an estimated $4.9 billion in retail sales (including food and beverage) during 2018, equal to about two thirds of all Coachella Valley retail sales. According to a 2015 Visitor Survey, tourist parties staying in La Quinta spent an average of $178 per day on dining and $515 on retail expenditures, well above overall Coachella Valley tourist averages. Figure 7, Highway 1 11 Retail Locations depicts the retail locations within the Study Area. Space inventory in La Quinta totals 3.9 million square feet (3.5 million square feet located in the 111 Corridor), equal to 12.6% of all retail space in Coachella Valley. Of the total La Quinta inventory, about 523,000 square feet (13.5%) is currently available for lease. Power centers along Highway 1 1 1 contain 1.6 million square feet of rentable building area, equal to 40% of the total La Quinta retail space inventory; over 60% of available Corridor retail space is in power centers. Overall availability rate in La Quinta is 13.5%, but the rate varies by type of center. Highest availability rates are found in Neighborhood Centers (20.0%), Power Centers (18.1%) and Strip Centers (15.0%). The majority of available square footage is found in Power Centers (283,000 square feet) and Neighborhood Centers (116,000 square feet). Average rent in La Quinta is $23.00 per square foot per year, third-highest (after Indian Wells and Rancho Mirage) of any city in Coachella Valley. Although the Study Area includes a full range of business types among its tenants, by far the largest share of businesses are in retail trade and food services. Of the 465 businesses and 5,651 employees, retail trade accounts for 19% of businesses and 44% of employees, while food services are 14% of businesses and 25% of employees. The Auto Centre of LaQuinta is composed of three dealerships (refer to Figure 8, Auto Dealership Locations). These establishments employ 172 people, comprising 3.04% of the labor force within the Study Area. The sales tax revenue generated by this sector makes TECHNICAL ASSISTANCE PANEL 11 Center Type Rentable Building Area (SF) Total Available Space (SF) Availability Rate Average Weighted Rent (Annual) General Retail 421,742 51,046 12.1% $21.00 General Retail (Community Center) 564,503 13,660 2.4% $29.93 General Retail (Neighborhood Center) 578,621 115,599 20.0% $17.91 General Retail (Power Center) 1,559,072 282,590 18.1% $21.33 General Retail (Regional Mall) 649,230 43,934 6.8% $26.87 General Retail (Strip Center) 107,066 16,023 15.0% NA Grand Total 3,880,234 522,852 13.5% $23.00 SUMMARY OF RETAIL FINDINGS: CITY OF LA QUINTA La Quinta (particularly the Highway 111 Corridor) plays an important role in the retail world of Coachella Valley. Residents of the defined Trade Area will spend an estimated $4.9 billion in retail sales (including food and beverage) during 2018, equal to about two thirds of all Coachella Valley retail sales. According to a 2015 Visitor Survey, tourist parties staying in La Quinta spent an average of $178 per day on dining and $515 on retail expenditures, well above overall Coachella Valley tourist averages. Figure 7, Highway 1 11 Retail Locations depicts the retail locations within the Study Area. Space inventory in La Quinta totals 3.9 million square feet (3.5 million square feet located in the 111 Corridor), equal to 12.6% of all retail space in Coachella Valley. Of the total La Quinta inventory, about 523,000 square feet (13.5%) is currently available for lease. Power centers along Highway 1 1 1 contain 1.6 million square feet of rentable building area, equal to 40% of the total La Quinta retail space inventory; over 60% of available Corridor retail space is in power centers. Overall availability rate in La Quinta is 13.5%, but the rate varies by type of center. Highest availability rates are found in Neighborhood Centers (20.0%), Power Centers (18.1%) and Strip Centers (15.0%). The majority of available square footage is found in Power Centers (283,000 square feet) and Neighborhood Centers (116,000 square feet). Average rent in La Quinta is $23.00 per square foot per year, third-highest (after Indian Wells and Rancho Mirage) of any city in Coachella Valley. Although the Study Area includes a full range of business types among its tenants, by far the largest share of businesses are in retail trade and food services. Of the 465 businesses and 5,651 employees, retail trade accounts for 19% of businesses and 44% of employees, while food services are 14% of businesses and 25% of employees. The Auto Centre of LaQuinta is composed of three dealerships (refer to Figure 8, Auto Dealership Locations). These establishments employ 172 people, comprising 3.04% of the labor force within the Study Area. The sales tax revenue generated by this sector makes TECHNICAL ASSISTANCE PANEL 11 HIGHWAY 111 RETAIL LOCATIONS FIGURE 7 •kL�TRYIMI //�,, 11iP i41l%■ i �1► riit+rvl '�rlryfF{4dyMi {5 5 d►b - - . 4 �afvey � rli A m flipl iFfilauso Jest Ha 69444 Cm , Orta{aINF Cb 11.1 Clkiiffrb pure ar War.h.egeon w • Ciert L'HQ C17�?�4k�1 CM Extol iPG. Stvrgpe rJf ALS Peal Prbfrss•arvi Kaaa Lki Ix cP 3'3hrs Fusial prom 11 Ci.rpo9ide Crnber femF4i.l13,sa 1.7 WarrdiGyir- 1-3 eiw P.irelhar, at L Citions It I. 64.111-nli Money uia;.a Citrivrat Lei Pate I*?# 5a: wge:A 3! K xvrater i4 OWa i limitless Park - 3 RETAIL LOCATIONS • Two clusters: 111 Corridor and La Quinta Village 35,000 - 45,000 vehicles per day along 111 Corridor • 70% of city sales tax revenue • 75 retail, service, and restaurant facilities in 21 developments The vacant former am s ' • • ' l ding offers an opportunity for a "Retailtainment" center. HIGHWAY 111 CORRIDOR STUDY AUTO DEALERSHIP LOCATIONS FIGURE 8 Three automotive dealerships have a prominent presence along Highway 111 in La Quinta. TECHNICAL ASSISTANCE PANEL 13 POTENTIAL RETAILTAINMENT USES GOLF / SPORTS ARCADE THEMES BarCades (Dave & Busters, Punch Bowl) Top Golf / Glow Golf Miniature Golf (Indoor) Ping Pong (Susan Sarandon) Bowling Alleys (Lucky Strike, ect.) Duck Pin Bowling Indoor Go Cart Tracks Indoor Shooting Galleries NOUVEAU THEATERS IMAX Children's Themed Theaters Hipster / Art House Theaters ATHLETIC SPACES Aquatic Parks Trampoline Rooms Indoor Rock Climbing Indoor Skydiving Velodromes (indoor cycling) Culture / Performing Arts Space Art Galleries Museum Space Live Theater Space Dinner Theaters Cirque Space Stand Up Comedy Clubs Live Music Venues Float Rooms Experiential retail centers attract patrons with playful, participatory environments. is HIGHWAY 111 CORRIDOR STUDY Entrance to the Waldorf Astoria La Quinta Resort and Club, an iconic a substantial contribution to the City's annual budget. Visually, the aesthetic character of the Corridor at the dealership locations is dominated by a view of cars, with vehicles parked within the landscaped area. HOSPITALITY FINDINGS The commercial lodging inventory in La Quinta is limited, consisting of just four properties with a total of 1,095 rooms. The vast majority of available hotel rooms within La Quinta (nearly 800, accounting for 73%) are at a single property, the iconic Waldorf Astoria La Quinta Resort and Club (a Hilton brand). Two of the other properties, both under Hilton flags, are limited service, which, in most markets typically cater to business travelers or budget -oriented leisure travelers. Room rates (Average Daily Rate - ADR) in all properties vary significantly by time of year, with high season rates (November through May) often twice those in low season. In addition, weekend rates are higher than weekday rates by about 12%, on average. Due to limited number of rooms, localized performance information about room rates and occupancy levels is only available for the 2,400 combined total rooms in the cities of Indian Wells (3 properties, 1,305 rooms), and La Quinta (4 properties, 1,095 rooms). Occupancy rates in La Quinta/Indian Wells (LQ/IW) are second -lowest of all Coachella Valleysubmarkets. Weekend occupancy rates in LQ/IW average 76% annually (compared to the Valley average of 79%), while weekday rates in LQ/IW average 51% (compared to 55% valleywide). ADR within La Quinta facilities is $218 ($209 weekday, $233 weekend), about $50 lower than overall Coachella Valley rates for both weekday and weekend. The vast majority of trips were for leisure purposes, a fact that points to an opportunity to encourage tourism and promote the hospitality industry within the City. TECHNICAL ASSISTANCE PANEL HI U LI 15 Visitor survey data (collected in 2015 by the Greater Palm Springs CVB, from hotel guests only) show that those staying in La Quinta hotels spent well above average amounts during their visits to Coachella Valley. Average daily Dining spending for La Quinta guest parties was $178, compared to $121 for valleywide guests. Average daily shopping spending for La Quinta guest parties was $515, compared to $115 for valleywide guests. RESIDENTIAL FINDINGS RENTAL APARTMENTS The rental market in Coachella Valley is multi- faceted, including rental apartments, single family homes and mobile homes. Apartment developers generally have shunned Coachella Valley for more productive areas closer in to the employment and population bases of Inland Empire. The last significant market rate apartment project in Coachella Valley was delivered in 2010 in Palm Springs. Coachella Valley contains 9,500 affordable apartment units, including over 800 delivered since 2010, mostly in Indio and Coachella. The newest apartment project in La Quinta (built in 2014), 176 -unit Coral Mountain Apartments, is an affordable housing community. Average apartment occupancy across Coachella Valley is 97.9%, with average rents of $1.16 per square foot per month. Although nearly one in four Trade Area residences are renter -occupied, rental apartment project choices in La Quinta are limited. Among 12 apartment projects in La Quinta, the 1,696 units (including 898 affordable) showed an average occupancy of 98.4%, with average rents of $0.73 per square foot per month for affordable units and $1.41 for market rate. 16 HIGHWAY 111 CORRIDOR STUDY FOR -SALE HOUSING The Trade Area for -sale market is dominated by resales, which accounted for over 87% of all residential transactions in the most recent 3 -month period. New homes captured less than 3% of transactions in the same period. Average transaction price was $473,294, an average of $204.89 per square foot. Nearly 90% of all transactions were priced between $300,000 and $400,000. Over three of four sales transactions were for detached homes. Five new home projects were active in La Quinta during Second Quarter 2018. Average price for new home projects in La Quinta is $730,000 ($251 per square foot). ECOMMERCE SHARE OF SALES BY CATEGORY FIGURE 9 Clothing & accessories Health & personal care Electronics, appliances, computers Food & beverage .Furniture & home furnishings Media, sporting & hobby goods 2005 2006 2007 2008 2009 2010 2011 2012 2013 E2014 E2015 E2016 Cushman & Wakefield Research. US Department of Commerce 60% 40% 20% 0% IMPLICATIONS / CONCLUSIONS GENERAL MARKET TRENDS Tourism is the leading economic force in Coachella Valley, with tourists directly spending more than $5.1 billion in 2017. Counting direct and indirect benefits, tourism led to $7 billion in business sales in the Valley. Approximately 22% of all Valley jobs are tied to tourism. Home values are forecast to grow only modestly over the next five years. Ecommerce will be highest for media, sporting, and hobby goods as shown in Figure 9, Ecommerce Share of Sales By Category. Food and beverage sales will not be significantly impacted by ecommerce. RETAIL CONDITIONS & OPPORTUNITIES Retail activity is strong throughout the Valley. In 2018, retail sales are expected to total $7.4 billion across Coachella Valley, including $4.9 billion in the Trade Area defined by a 10 -mile radius circle around the La Quinta Highway 111 Corridor. The 1 1 1 Corridor accounts for over 70% of La Quinta's retail activity. Existing businesses in the 111 Corridor range over a wide spectrum of NAICS codes, but two categories, retail and food service dominate, with a combined 33% of establishments and 69% of employees in the Corridor. TECHNICAL ASSISTANCE PANEL 17 Non -retail attractions and facilities can play an important role in the future viability of retail along the corridor. The future of retail will be heavily dependent on freestanding experiential facilities, as well as those incorporated within the retail spaces themselves. Some of the currently vacant parcels in the Corridor could be developed (even on an interim basis) as attractions and public use spaces, with the goal of bringing potential customers for the retail spaces that already exist or may exist in the future along the Corridor. While certain categories of retail are over- represented in the Trade Area, there are opportunities for additional facilities in a number of retail categories, including new, experiential versions of traditional retail including: building and gardening materials and supplies, specialty food stores, sporting goods, hobby, musical instruments and book stores, drinking establishments, and full service restaurants. Some, but not all, of this opportunity might be accommodated in existing vacant space. HOSPITALITY CONDITIONS & OPPORTUNITIES Commercial lodging facilities are limited in La Quinta, with just four properties identified, including two limited service hotels, one boutique, and one major resort. The hospitality business is strongly leisure -oriented and cyclical, both in terms of seasonality (high season is November through April/May) and day of week. La Quinta properties tend to perform on par and compete with other properties throughout Coachella Valley. The 22 -acre approved Shopoff development in the Centre of La Quinta Specific Plan area includes a 125 -room limited service hotel along with residential development (refer to Figure 10, Centre of La Quinta Conceptual Site Plan). Other planned hospitality projects include SilverRock Luxury Resort, a proposal scheduled to open in October 2019 that will bring the Montage and Pendry brands to La Quinta. RESORT 6.CL1 The La Quinta Resort property accounts for 73% of all the available hotel rooms within La Quinta 18 HIGHWAY 111 CORRIDOR STUDY PROPOSED CENTRE OF LA QUINTA FIGURE 10 RESIDENTIAL CONDITIONS & OPPORTUNITIES Coachella Valley has seen modest population and housing growth since the Great Recession, and growth will be moderate over the next five years. Existing apartment projects, particularly affordable communities, tend to run close to or at 100% occupancy, with relatively low rents that are resistant to upward pressure due to the lower -wage nature of the area's economic base. The proposed Shopoff development in the Centre of La Quinta Specific Plan area includes small lot single family and multi -family homes ranging from 1,500 to 2,059 square feet. This project will introduce market rate for - sale homes to the Study Area, within walking distance of the centrally located retail establishments. TECHNICAL ASSISTANCE PANEL 19 MARKETING REPORT KEY FINDINGS • Tourism is the leading economic force in Coachella Valley. • Experiential retail continues to grow, providing a tool to attract brick and mortar business lost to cyber shopping. • Other retail opportunities: farmer's market, new generation hobby, music & book stores that incorporate participatory experiences, building and gardening supplies, drinking establishments, and full service restaurants. • La Quinta's hospitality properties perform on par & compete with others in Coachella Valley. Currently hospitality demand exceeds supply. Residential growth will remain moderate over the next five years. Demand for higher -end rental apartments is limited due to competition from a shadow inventory of homes and condominiums for rent. Existing apartments run at approximately 100% occupancy with lower rents due to lower -wage nature of the area's economic base. Tourism is the major economic driver of the Coachella Valley, an under served market segment. 4 Qa HIGHWAY 111 CORRIDOR STUDY FOCUS GROUPS The Technical Assistance Panel met with focus group members during an outreach session held at La Quinta City Hall on April 25, 2018. Twenty-five members of the community participated including several Planning Commissioners, staff members from public agencies of other communities, and local property owners and businessmen. A desire to for the Panel to address the Study Area with a long range viewpoint was voiced, in light of rapidly changing technology. The fact that these advances are having an effect on consumer behavior and spending habits was discussed. Ultimately, this change in spending habits may affect the future economic viability of the City. Big box retail has been successful in the past, however with the recent bankruptcy and closure nationwide of many retailers, the importance of careful consideration other types of retail and other uses was emphasized. A great deal of interest in activating the pedestrian character of the Study Area was expressed, with a high emphasis on multi- modal transportation and connections to CV Link. The fact that many communities have successfully incorporated electric bike sharing makes this option a desirable opportunity to engage community members who may not otherwise participate in enjoyment of the trail. Additional discussion included methods of dealing with the extreme climate conditions to increase pedestrian activity such as providing shading, seating and drinking fountains. It was suggested that a pedestrian scaled enhanced mobility district would likely draw a multiple consumer mind set rather than single purpose big box shoppers who will likely purchase on- line in the future. Concerns about maintenance were also voiced, with participants citing a lack of visibility as one of the challenges. A central maintenance mechanism was suggested to achieve a uniform level of aesthetic quality throughout the Study Area. Suggested alternative uses were daycare, dog park, indoor tennis center or other sports to bring people for other reasons than retail. Flexible space, including sub -leasing of tenant space during festivals was suggested to capture tourist spending. Incentives to encourage hospitality uses were suggested, which have been successful in other neighboring (and competing) communities within the Coachella Valley. Suggested incentives include relaxing of parking standards, and phased payment of development fees. TECHNICAL ASSISTANCE PANEL 21 PROPOSED CV LINK ALIGNMENT FIGURE 11 PALM SPRINGS" MEIN MIL 6611 ENS 10 CATHEDRA CITY CV Link Alignment - Core Alignment - Alignment Alternative - Future Extension o 1 2 3 d m Miles TiMMIIIILD INDIAN MK= lII. ► '''` IIIIW WELLS /l T Note: the final CV Link route will be chosen once the environmental review is complete. The CVAG (Coachella Valley Association of Governments) has expressed intent that the City of Rancho Mirage be omitted from the project. SITE .■. ..>.= C ELLA 86 Lake Co hailla CV LINK A new spine for alternative transportation in the Coachella Valley, the CV Link is a planned fifty mile multi -modal facility that will transverse the northern edge of the Study Area adjacent to the Whitewater River Channel. Ultimately connecting nine cities and three tribal governments, the CV link will accommodate pedestrians, bicycles, and low speed electrical vehicles such as golf carts and neighborhood electric vehicles. The proposed alignment of the CV link is featured in Figure 11 above. By bringing national recognition to the Coachella Valley, this healthy and sustainable transportation route will benefit La Quinta economically by attracting tourists and overnight visitation. Health based competitive events can be 4,Qtizaw 22 HIGHWAY 111 CORRIDOR STUDY anchored by the trail that will draw nationwide attendance from runners and cyclists. The CV Link will also provide a safer, free alternative to navigation of existing roadways. Local residents will enjoy a connection to schools, jobs, neighborhoods, entertainment, shopping, and public parks. Dual pathways separating pedestrians from lowspeed electric vehicles and cyclists will enhance safety for all types of multi -modal transportation. This new amenity has the potential transform La Quinta if public attention is directed to it by a way finding system. Enhanced connections to existing and proposed properties within the Study Area are also key to capitalizing on this important feature. Artist's rendering of typical segment of CV Link, including EV charging station. The CV Link is a major influence on the Study Area has a high degree of community support. TECHNICAL ASSISTANCE PANEL 23 3. RECOMMENDATIONS The Design Team members of the panel, including architects and landscape architects met April 18th for a brain storming session in La Quinta to evaluate the existing conditions of the Study Area. Current trends in urbanization were touched on as potential solutions were discussed. The team started with defining the distance of a comfortable walk given the climate conditions. Walkability diagrams were delineated, and because of the scale of the Study Area, it was determined that the best approach would be to create pockets of activity where intensification could occur more rapidly than other, more established areas that are currently contributing to the local economy. Focusing on engaging both sides of the Corridor and the most effective ways to tie into the CV Link, a number of rough sketches were completed (see Figure 12, Preliminary Studies). These rough ideas were then refined into three land use exhibits, depicted in Figures 13, 14, and 15. As the team members tested their concepts and presented them to the larger group a clear direction began to emerge, as described on the following pages. TECHNICAL ASSISTANCE PANEL iirl U LI 25 PRELIMINARY STUDIES FIGURE 12 4 Q HIGHWAY 111 CORRIDOR STUDY PHASED CATALYST SITES FIGURE 13 iw YBERRY ti z SHORTERM CATALYST SITE MIDTERM CATALYST SITE LONGTERM CATALYST SITE 1 ""''', ### f OWN Oft 1 0.3 7. 1 I Legend Highway111 Area Boundary Line LAND USE ANALYSIS The Design Team identified areas within the Study Area that have the most potential for development. These were then evaluated in terms of readiness and were assigned within three phasing categories. Sites that could be immediately ready for new opportunities were categorized as "Short Term Catalyst Sites". Development of these could act as a springboard toward energizing and revitalizing the entire Corridor, and are shown in yellow in Figure 13 above. Included in these areas are the vacant former Sam's Club building, the City owned parcel to the east, the movie theater back parking area, the central vacant lot adjacent to the CV Link, and the area connecting the One Eleven Shopping Center to the CV Link. Of these four, the Sam's Club building has the highest potential of being repurposed since it has recently been purchased. Mid term catalyst sites have been identified in orange above, consisting of parking areas or other under utilized spaces that could be activated after the other sites come forward. TECHNICAL ASSISTANCE PANEL Ilf ULI 27 The red sites indicate long term catalyst areas that could become available at a time in the future when less surface parking is needed because a dramatic increase in ride hailing and ride sharing has occurred. As noted in Section 2, the majority of the Study Area is currently used for surface parking, which is the antithesis of vibrant space. Many of these areas exceed the City's minimum parking requirements and were included to fill a need on peak shopping days that occur once or twice a year. These spaces represent a "land bank" of opportunity. Managing these areas collectively rather than individually could be the key to regaining this space, and taking advantage of an important opportunity for activating the Corridor. URBANIZATION MECHANISMS PEDESTRIAN THEMED DISTRICTS As the Design Team studied potential catalyst sites, three areas emerged as separate districts, each within a separate 5 -minute walking distance. These three Districts are depicted in Figure 14 at right, Pedestrian Themed Districts. The western portion of the Study Area was themed as an Arts and Entertainment District anchored by the Century Movie Theater. The north -south connections are vital to the overall functionality of the site, and a pedestrian bridge over Highway 1 1 1 was proposed to link the entire Arts District to the CV Link. A circular multi -modal "Green Street" was proposed joining both sides of the Corridor featuring safe, well defined enhanced pavement and shaded walkways to provide for uses such as an outdoor farmer's market, pedestrian oriented pop-up art festival or a culinary extravaganza. hiQtd,aw 28 HIGHWAY 111 CORRIDOR STUDY • NMI r �L. .-.___._..J u� 1 Lec Enlargement of the central core area. The Arts and Entertainment District. PEDESTRIAN THEMED DISTRICTS FIGURE 14 SINGLE FAMILY RESIDENTIAL • STATE SINGLE FAMILY SPORTS RESIDENTIAL FIELDS • • LEGEND COACHELLA VALLEY WASH GREEN SPACE OPPORTUNITY �Ini) CV LINK HWY 111 MAJOR NS STREETS BUILDING EDGE OPPORTUNITY EXISTING BUILDINGS SHARED STREET / SHADED WALK PLAZA/ COURTYARDS ENHANCED INTERSECTION 0 PEDESTRIAN ACCESS TO CV LINK SINGLE FAMILY RESIDENTIAL • • HOTEL PROPOSED RESIDENTIAL DEVELOPMENT 11 R�L A 'PA NTS MULTI -FAMILY RESIDENTIAL • MULTI -FAMILY RESIDENTIAL Legend Highway111 Area Boundary Lino .002, r.'M1 l`1I - t' let TECHNICAL ASSISTANCE PANEL 11! I U LI 29 • ik • PROPOSED RESTDNTIAL DEVELOPMENT 7.11-' • - '--- -WA Lfv1ART� M U LTt-FAM1 LY --- 1 The Retail and Recreation District. The Hospitality and Mixed Use District. RETAIL AND RECREATION DISTRICT The central portion of the site includes the vacant Sam's Club building and another vacant parcel adjacent to the CV Link. This area was envisioned as a retail and recreational site, The vacant parcel would be a great place for family activities like a splash park that would draw visitors from the CV Link. The Sam's Club building has many potential indoor recreation uses including Top Golf, volleyball, or indoor soccer or batting cages. TheSam'sClub parking area isa prime potential location for an intensified retailtainment area. If correctly implemented, this intensified use could draw tourists to the corridor, especially if vibrant night life and innovative lighting was offered. HOSPITALITY AND MIXED USE DISTRICT The eastern portion of the Study Area, centered on a vacant City owned site, was identified by the Design Team as a Hospitality and Mixed Use District. The central parcel is a potential location for a boutique hotel that could be connected to a major community open space amenity such as an urban plaza. Once established, the hotel would spark urban intensification, possibly leading to vertical mixed use development featuring market rate housing. A pedestrian connection to the CV Link would bring more attention to this location, positioning it as a prime tourism destination once the other areas of the Corridor have been activated. A hotel in this location would bring additional support to the existing and future retail, since tourists tend to spend more on dining and shopping than year-round residents. 30 HIGHWAY 111 CORRIDOR STUDY EVENT DISTRICT OPPORTUNITIES FIGURE 15 �GREENOPEN F - EVENTSSSUITABLE FOR PARK OR PASSIVE SETTING zEURFACELOTS- EVENTS SUITMLE FOR VAST ASPHALT PARKING LOTS COMMUNITY BASED EVENTS - EVENTS RELATED TO LOCAL AND COMMUNITY BASED EVENTS INDOOR EVENTS - EVENTS INSIDE VACANT BIG BOX RETAI ' • C .R f'ORATe t;=kT12F' ),'---� POTENTIAL EVENT DISTRICTS The Study Area has great potential to host events which would energize retail activity. The designers overlaid a central "Events District" over the recreation and retail area. Surface parking areas are large enough to house a typical "retailtainment" area of urban intensification. Imagery of two examples, "Container Park" in Las Vegas, and "The Camp" in Costa Mesa are included in on pages 32 and 33. These examples feature under-utilized parking lots repurposed into lively centers featuring restaurants, specialty retail, artisan spaces, and entertainment. The team envisioned creating a connection from this central hub to the sports fields across the channel adjacent to the high school via the existing Adams Street Bridge. This bridge includes an artful placemaking design reflective of the desert. It is recommended that the pedestrian experience be enhanced through street furniture, shade structures, and other mechanisms to bring a sense of human scale the Corridor. A secondary local gathering space is planned behind the movie theater to activate the connection to the existing residential neighborhood. Valet parking is a tool often implemented to increase the available parking and works well for many retailtainment projects during peak demand and holidays. Because of the scale of the site, wayfinding is a vital tool to facilitate pedestrian connections and unify all of the major features. These monuments and signs would be one of the components that establishes a new identity for the Corridor, creating a perception of La Quinta as the new, thriving, "cool" place. TECHNICAL ASSISTANCE PANEL 31 U 1 ! I},'IIi I:�... 3rl�1111 �pviil AUI II 1i! a .111111ItR;ir Container Park, a retailtainment center constructed from shipping containers in Las Vegas, Nevada 62a, HIGHWAY 111 CORRIDOR STUDY Images of The Camp, a retailtainment example in Costa Mesa, California TECHNICAL ASSISTANCE PANEL 33 STREET CONNECTIONS FIGURE 16 • ()STATE SINGLE FAMILY RESIDENTIAL • LEGEND INGLE FAMILY SPORTS . .. RESIDENTIAL FIELDS • AVE NI. cnc FAIAIFS :. ♦,♦♦♦`♦♦`♦` ice. 1 III♦•`•• ♦ !� ♦♦♦i,� . SPORTS FIELDS • '1 ' _S• RTS FIELDS • `4. COACHELLA VALLEY WASH CV LINK HWY 111 PRIMARY NS STREETS SECONDARY NS STREETS TERTIARY STREETS TREE LINED 1 SHADED STREETS MAJOR INTERSECTION MINOR INTERSECTION 1 PROPOSED "PiESTRIA BRIDGE ETS SINGLE FAMILY RESIDENTIAL • • HOTEL PROPOSED RESIDENTIAL DEVELOPMENT �FI S NTS 11/0111D. , MULTI -FAMILY RESIDENTIAL • LANDSCAPE DESIGN A unified landscape aesthetic is imperative for the future success of the Study Area. The SilverRock Resort serves as a potential source of inspiration for the level of quality to be emulated within the Corridor. Figure 16, Street Connections sets a hierarchy of street types for thematic treatments, setting forth a pattern for design that could create a more engaging and aesthetically -pleasing experience. Figure 17, Landscape Framework depicts a conceptual overall planting plan featuring Date Palms as a central unifying element. Figure 18 shows a typical section of Highway 111 with meandering sidewalks of both sides and a central median. Inclusion of a variety hiQtd,aw 34 HIGHWAY 111 CORRIDOR STUDY MULTI -FAMILY RESIDENTIAL • V. Legend Highway111 Area Boundary Line of drought tolerant plant species will not only result in water savings but will also serve as an inspiration for adjacent business owners. The use of native, environmentally friendly plant species has a positive effect on the overall ecology of a space, resulting in long range environmental benefits. In addition to plantings, shade structures would enhance the pedestrian experience, offering respite from the desert sun. Thematic street lights, benches, trash receptacles, bus stops, and signage will reinforce the design concept. Pages 32 and 33 include imagery of typical shading, paseo treatments, and corner treatments. LANDSCAPE FRAMEWORK FIGURE 17 `.`. STAT • SINGLE FAMILY RESIDENTIAL • SINGLE FAMILY RESIDENTIAL • SPORTS FIELDS • 110 p SPORTS FIELDS • • SINGLE FAMILY RESIDENTIAL • • • Wt. cis SPORTS FIELDS • • - -• . •` :.:**, • �••:• 1 ■HOMEDP� :11. • • i ZIi`• ItUttl HVIHL ...... ........ . • ....f .. �....�. ����; PROPOSED ' !: RESIDENTIAL •� �F�S J DEVELOPMENT::' PANTS .� V.1fJ.1 Vt.V AWAJ/ /.L fAL'f Ii1 4fJ t. • J Srarr SINGLE FAMILY RESIDENTIAL • LEGEND COACHELLA VALLEY WASH HWY 111 - STREET TREES NS STREETS War ROUNDBOUT PALMS O TREE LINED / SHADED STREETS PARKLET SPACES GREEN STREETS MAJOR INTERSECTIONS MINOR INTERSECTIONS MULTI -FAMILY RESIDENTIAL • HIGHWAY 111 SECTION FIGURE 18 MULTI -FAMILY RESIDENTIAL • Legend Highway111 Area Boundary Line LISE OF DOUBLE ROW OF DATE PALMS AS THE UN I FIED STREET TREE MEANDERING SIDEWALK SIY-0" ROM MAIN PORTION OF HWY 111 MEANDERING SIDEWALK SO' -0" R.O.W. TECHNICAL ASSISTANCE PANEL 35 HIGHWAY 111 INTERSECTION TREATMENT FIGURE 19 USE OF DOUBLE ROW OF DATE PALMS AS THE UNIFIED STREET TREE CONER MONUMENTS PUBLIC ART 1 Example of corner treatment. 4Q HIGHWAY 111 CORRIDOR STUDY CONER MONUMENTS PUBLIC ART Example of a palm lined arterial street. INTERIOR GREEN STREET SECTION FIGURE 20 USE OF OF DATE PALMS AND PALO VERDE'S IN SECONDARY AREA'S OF HWY 111 SHADE SAIL ELEMENTS TO HELP CREAT A MORE PEDESTRAIN ENDLY / WALKABLE STREETSCENE Example of a paseo lined with palms Example of a shade structure. TECHNICAL ASSISTANCE PANEL 37 PLANT PALETTE -TREES & SHRUBS FIGURE 21 TREE„ SHRUBS C2a HIGHWAY 111 CORRIDOR STUDY PLANT PALETTE - SUCCULENTS & GROUNDCOVER FIGURE 22 SUCCULENTS GROUNDCOVERS TECHNICAL ASSISTANCE PANEL 39 A • edestrian brid • e across the 111 Hi • hwa Corridor would be a • owerful • lacemakin • element. PUBLIC POLICY RECOMMENDATIONS A community's ability to change destiny begins with intentionality. In large and small cities nationwide, it has been demonstrated that local leadership can be the force that creates a better future. The process of bringing forth positive outcomes has already begun in La Quinta with the advent of the CV Link. Capitalizing on the momentum of this asset is one of the keys to the future success of the Study Area. The creation of a Mixed Use Overlay District for the Corridor within the 2035 General Plan was a major step in the direction of revitalization of the Study Area. In order to implement a unified vision, it is recommended that preparation of a Corridor Area Plan be authorized (Option 2 of the three suggested by the City on page 4). This will be the quickest and most cost effective vehicle for expanding the vision started with the TAP process. This option would allow for writing standards and guidelines to facilitate the creation of a unified identity. Several key components should be covered including: • Enact new Development Regulations, including an allowance for reduced parking standards. • Policy for preferred architectural form for a 40 HIGHWAY 111 CORRIDOR STUDY unified vision and compatible forms. • Allowance for flexibility of uses to meet rapidly changing needs including pods of mixed use urbanization. • Hiring of a nationally recognized firm to initiate a unified branding theme / naming / logo for the Corridor area. Implementation of a commercial signage program including multi -tenant signs. Initiation of a unified wayfinding and monuments program reflecting the central theme of the Study Area. • Engage pedestrians and connect both sides of the Corridor to the CV link with an overpass that would serve as a major entry statement. • Create a welcoming and thematic entry reinforced by transit / trolley stops at both ends to encourage visitors. These recommendations have the potential to catapult the Corridor from a place having a low sense of identity to a sensationally vibrant, unique place with a unified, authentic, readily identifiable aesthetic. FINANCE RECOMMENDATIONS Since California's redevelopment funding has ended, innovative partnerships and financing methods have become necessary to move communities forward. Public financing can be used to catalyze private investment as a tool to initiate redevelopment. The following list are potential mechanisms for combining various sources of funding to facilitate change: • Business Improvement Districts (BID) Assessment to fund improvements and services encouraging business development. • Enhanced Infrastructure Finance District (EIFD) Similar to BID but 55% voter approval / 45 year bond. Increased tax revenue is used to repay bonds. • Infill and Transit Improvement District (NIFTI) Promotes infill housing near transportation centers, pending approval by CA legislature. • Public Private Partnerships (PPP) Investors / city work jointly to improve area, finance partners with vested interest in area. • Participating Ground Leases (PGL) Option for City -owned land to incentivize creative & stimulating development that will draw interest. • Tourism Business Improvement District (TBID) Partner with other CV cities to jointly fund improvements and return a portion of the total to the district to promote tourism. Great cities happen strategically, and positive outcomes require a willingness to move beyond the status quo and adopt a spirit of intentionality. Every City has a choice to either accept things as they are or strive for a better future. These finance mechanisms have the potential to bring the City's dreams, (some of which are outlined in this document) to reality. Imagining a different future is the first step, then putting together the right mix of ingredients to take advantage of coming trends is the key to positioning the Study Area for success. TECHNICAL ASSISTANCE PANEL irrn 41 TAP participants preparing for the Study Session presentation of findings. 4. IMPLEMENTATION The Study Area functions as a stable revenue generator for the city, and this is likely to continue in the immediate future. However, an understanding of changing consumer trends will facilitate the decision-making process in regard to the best future uses for the Corridor. The following discussion involves the relationship of emerging technologies, and demographic influences. CURRENT TRENDS In the next ten years, Amazon.com, and similar on-line purchasing companies will continue to disrupt big box spending, however experts predict that retail experiences of discovering great products and socializing with others will continue. As Millennials mature (born 1981 - 1996, 22-37 years old), demand for vibrant and diverse "cherish" shopping will be stronger. Traditional brands of earlier generations generally do not resonate with them. Millennials are a diverse group that tend to enjoy the expression of their individuality. This segment is drawn to "cool streets" that offer live entertainment, food oriented amenities and craft brewing establishments. Artisan products and retailers that enable customers to customize their TECHNICAL ASSISTANCE PANEL 43 products will prosper. Personalization of unique items that tell a story will become increasingly popular with this age group. Centennials (born 1995 - 2003, age 14 - 21) have never known a world without smart phones. As this group gains more buying power the weaker links in the retail will be washed away and more customer oriented, shopping for value and unique experiences will replace many national retailers currently on the watch list for bankruptcy. TECHNOLOGY Embracing disruptive technology is key to survival for success of retail businesses. Traditional shopping centers are facing multiple problems. In additional to competition from e-commerce, many standard big box retailers expanded too rapidly before the Great Recession, resulting in many locations struggling for attention from a shrinking market share. A promising future trend is the melding of brick and mortar stores and e-commerce where customers are able to browse samples, then order with their phone and have merchandise delivered within 24 hours. This trend holds true for auto dealerships as well - inventory is becoming irrelevant as buyers increasingly want to customize their new vehicles to suit their personal preferences. In the future less space will be needed for Corridor auto dealership locations, freeing land for more engaging uses. Another technology that could benefit the Study Area is geofencing, a location -based service that sets up a virtual boundary around a geographic location. This location could be used for a variety of uses, such as sending text messages to bicyclists along the CV Link who have downloaded an app, alerting them of daily events and specials when they enter the 4,Qtti,aw 44 HIGHWAY 111 CORRIDOR STUDY La Quinta segment of the trail. This could be used to draw interest and build support from festival visitors or other tourists who may not learn of the Corridor area otherwise. PLACEMAKING A vital component to the success of the Study Area is Placemaking - the creation of a unique environment that tells a story that is fresh or draws from the heritage of an area. Millennials and Centennials are drawn to areas perceived as "cool" meaning they are not rubber stamped centers with nationally recognized brands. Art and culture need to be the nucleus of the design concept and an amplification of existing artistic resources will be one of the keys to future success of the Corridor. Engaging artists who reside within the Coachella Valley early on in the placemaking process such as writers, musicians, visual artists, and chefs will foster a sense of local pride that will draw attention to the Corridor. Inclusion of historical references and aspiring local talent will give a sense of authenticity to the placemaking process beyond what can be accomplished by branding alone. Early wins in the design process can be used as a tool to generate public excitement. Timing is critical to the success of any project, and the opening of the first segment of the CV Link Existing placemaking element in La Quinta. (hopefully in La Quinta) could be a strategic time to unveil initial plans for the Highway 1 1 1 Corridor Plan. Pop -ups are another tool to gain engagement - staging a pop-up park contest within the existing unused parking of the Study Area or a culinary art project combining food vendors with an art show could build public support and anticipation. SHARED ECONOMY Uber, Lyft, and Air B & B have recently ushered in the world of shared economy, where an extra room or SUV can become a source of extra income. Ride hailing has become so popular that public transportation is beginning to cancel routes and "curb management", (the planning of drop-off and pick up zones) has become a buzz word in transportation engineering. As this trend continues, and eventually moves into use of autonomous vehicles, traffic is likely to increase, even if 50% of trips are shared. The shared economy emphasizes provision for multiple ways of moving through urban centers rather than primarily with privately owned vehicles. Bicycling is an important element of the shared economy, and represents the fastest-growing means of transportation in the United States. Today, electric bike sharing systems have been installed in over 120 urban centers nationwide. It is predicted that future electric bicycles will have regenerative batteries, recharging as they coast forward. This technology will expand bike sharing to broader groups including older active adults, especially in the warm desert climate. Not only is bicycling good for health and the environment, it is also beneficial for business. According to ULI reports, retail sales increase as much as 46%when bicycle trails are added. Connections to the CV Link, shops oriented toward the trail, and electric bike sharing are vital to the Corridor's on-going success. Electric bicycles are activating retail experiences in metropolitan areas nationwide. TECHNICAL ASSISTANCE PANEL 45 Local merchants recently embraced the shared economy by creating a rest station for Lyft drivers. FINAL ANALYSIS: ANSWERS TO QUESTIONS QUESTION #1 What funding or partnership strategies for improving Corridor aesthetics should the city consider? What is the right design to improve aesthetics and promote business visibility and access? The city should consider a public / private partnership for the city owned parcel as an incentive for a major hotel / mixed use development. A boutique hotel could provide an activity amenity area that would attract tourists and festival visitors to existing and future retail establishments. Hiring a landscape architecture firm to design street improvements and a master signage / monument program is recommended. A cohesive, upscale aesthetic will create a positive experience for motorists and pedestrians. Encourage pockets of urbanism to generate excitement and draw consumers: experiential retail and retailtainment concepts. Engage local artists in the placemaking process to foster a sense of local pride and authenticity. 4,Qtd,aw 46 HIGHWAY 111 CORRIDOR STUDY QUESTION #2 There is concern about the future viability of Hwy. 111, the largest tax revenue generator for the city: What are the appropriate size and mix of uses? The marketing report points to new generation type experiential specialty food stores, hobby, music, and book stores, building and gardening supplies, drinking establishments, and full service restaurants. What can the city do to promote a vibrant business community? The city should encourage flexible uses and parking reduction to create more space. Thematic signage & wayfinding, cohesive, attractive landscaping will create a more upscale appearance. Valet parking can be a way of providing more parking in less space. How can the city assist commercial uses as e-commerce continues to consume more market share? Hybrids between e-commerce and brick and mortar stores are becoming a popular replacement for big box retail. Providing incentives such as reduced or flexible timing for start-up fees and taxes encourage innovative solutions. QUESTION #3 How will rapidly changing technologies affect the Corridor (autonomous vehicles, vehicle electrification, Uber / Lyft)? The shared economy and advent of driverless vehicles will have an impact on physical development of the Study Area. The needs of automotive dealership spaces will change. A move toward showrooms instead of inventory will require less space, freeing areas for other uses. Charging centers will be needed near activity areas for cars, EV's, bicycles, and scooters. QUESTION #4 Is vertical mixed use development the highest and best use from a city economic viability standpoint? Not at the present time but it will make sense at some point in the future so it's important not to have policies that prohibit vertical mixed use development. Flexible standards that allow for a higher intensity of development are recommended. QUESTION #5 What opportunities should the city consider when CV Link multi -use trail is constructed? The CV Link creates new gateways to the city and presents an opportunity to create a new image that will bring a positive "cool" perception of La Quinta. The city should encourage way finding and linkages hat capitalize on the fact that connection to major bicycle trails typically increase foot traffic and retail revenues if correctly amenitized with shade structures and resting areas. Implement a bike sharing program similar to the City of San Diego. Encourage new construction to face toward the channel / CV Link. Investigate new technologies such as geofencing which can propel business to the Corridor. QUESTION #6 What are the costs and benefits of a complete streets redesign of the highway 111 Corridor? A layered network approach to complete streets is an important means to provide choices and encourage active transportation. Costs include coordination and cooperation with private landowners, modest capital investment in paths and trails. Benefits accrued are: no additional right-of- way is required, safety enhancement and hazard avoidance, direct linkage between circulation and land use. QUESTION #7 What policy, land use and development strategies could be implemented now to position the Corridor for the future? Join forces with the Cities of Indio and Indian Wells to capitalize on existing regional draws and develop new attractions. Create policies that enhance the corridor, draw visitors and encourage experiential retail - be flexible with allowed uses. TECHNICAL ASSISTANCE PANEL 47 FINAL CONCLUSIONS ECONOMIC STRATEGIES • Add retail demand by increasing residential densities and capture attention of tourists and seasonal visitors. • Identify unmet demand and then provide supply. This report identified an unmet demand for hospitality, especially as a boutique hotel that could share a community amenity. • Through "invention" create a new product or experience and therefore a new demand. Retailtainment and experiential design could successfully create new energy, excitement, and vitality. MARKET POSITIONING • Existing retail is a stable revenue generator for the city and is geared toward residents. • The Study Area is largely under utilized with undeveloped properties, vast open parking areas, and opportunities for intensification. • The CV Link provides a potential draw if users are successfully engaged though linkages to the Study Area. • More consumer interest would add demand for hospitality uses, and would activate multi -modal transportation methods. BRANDING • Existing city brand already demonstrates high standards which will be elevated further with the introduction of the Montage and Pendry hotels. • Regional branding is critical to attracting tourism (Innovate 78 is a successful example effort of regionally branding five north San Diego County cities). • A brand for the Highway 1 1 1 corridor similar to the El Paseo District in Palm Desert could define the Study Area as the new "cool" area for residents and visitors of all ages to experience. Engaging local artists has the potential to bring authenticity to this new identity • The CV Link is an intrinsic component of the new Corridor identity and should be emphasized in the branding process. iC2a HIGHWAY 111 CORRIDOR STUDY S. BIOGRAPHIES MANUEL BOUZA, AIA, LEED AP, Design Lead, MG2 Manuel Bouza has over 30 years of experience in local and international mixed-use, retail, hospitality, residential and office projects which he brings to his role as design leader for MG2's Irvine office. He is driven to create unique places that exceed the expectations of his clients and create memorable experiences for the end-users. His expertise in designing impactful places is demonstrated in many notable projects in his portfolio, including the Getty Center in Los Angeles. He has built an incredible breadth of knowledge in the field and is passionate about mentoring colleagues while continuing to work hard on his own projects. ANDREW BOWDEN, ASLA, Principal, LAND CONCERN - Landscape Architecture Andy specializes in master planned residential communities, assisted living communities, recreation facilities, and residential development. He has been a member of Building Industry Association of Southern California where he served as the Vice President of Councils and is currently on the Board of Directors for the Council on SAGE. Andy is active in the American Society of Landscape Architects and has been a two-time president of its Southern California Chapter, as well as serving two terms as Chapter Trustee. He was appointed by Governors Schwarzenegger and Brown to the Landscape Architects Technical Committee, and has served three times as the chair. SHEILA CEDERVALL, ASLA, LEED AP, Senior Associate, PLACEWORKS Sheila is an urban designer with more than 25 years of experience bringing vibrant, cohesive, and environmentally friendly communities to life. Her experience includes all phases of design and entitlements—from establishing the initial vision to working closely with local authorities to gain project approval. Sheila also specializes in sustainable building practices with an emphasis on water -wise landscape design. Before coming to PlaceWorks, she completed several transit -oriented projects encouraging multi modal methods of transportation, including SoCo Walk in Fullerton and the Transit District of the Great Park Communities in Irvine. TECHNICAL ASSISTANCE PANEL 49 50 VAUGHAN DAVIES, Principal, Perkins Eastman Vaughan Davies has over 30 years of professional experience producing dynamic plans for downtowns, urban waterfronts, retail, resort and entertainment destinations, transit centers and mixed- use environments with an emphasis on creating vibrant `pedestrian first' urban neighborhoods in cities large and small, nationally and globally. Vaughan develops visionary plans and designs with a solid basis in reality, both in their authenticity and in their ability to be implemented successfully - he is a pragmatic visionary. Collaborating with major developers, cities, and agencies, he has demonstrated a unique ability to create significant added value for all interests involved, by creating one -of -a -kind addresses and focusing his design solutions on the establishment of a superior public realm as a unique and memorable amenity. CAROL MENTOR MCDERMOTT, Founder & Principal, Entitlement Advisors A specialist in land use entitlement and community issues management, Mrs. McDermott offers consulting expertise to the land development and building industries as well as to private individuals seeking assistance in maneuvering multiple jurisdictional hurdles. After serving as a partner in Government Solutions, Inc. (GSI) for 12 years, Mrs. McDermott formed an entity, Entitlement Advisors, to pursue consulting assignments and equity partnerships in the land use entitlement arena. Her experience has covered multiple agencies and communities in Orange, Los Angeles, San Diego, and San Mateo Counties in working with elected and appointed officials, city, county and Coastal Commission staff, community, business, and environmental organizations. Her strength is in directing large and small teams of professionals on complex land use projects, providing project management and conducting community engagement to effectively address community issues, which leads to approvals for clients. STEPHEN NIETO, ASSOC AIA, Senior Urban Designer, South West Concepts With 9 years of experience, urban designer Stephen Nieto has extensive expertise in international and domestic large-scale master planning, urban design, and architectural projects. Stephen has broad experience working with clients in the public and private sector to create implementable master plans, dynamic mixed-use developments, and multi -family residential with a focus on design, sustainability, and pedestrian friendly environments. Stephen approaches each project with great sensibility toward contextual fit and attention to "place making". Most recently Stephen was a team member in the planning and awarding of the 2028 Los Angeles Summer Olympic Bid. HIGHWAY 111 CORRIDOR STUDY ANTHONY "TONY" PETROS, Principal, LSA Associates, Inc. Tony is a Principal with LSA Associates, Inc., a full service planning and engineering firm headquartered in Irvine. He manages the traffic engineering and planning discipline in California. He provided transportation planning and engineering services on major highway corridors, land developments, ports and terminals. He was the Project Manager for the Orange County Sustainable Communities Strategy, a Countywide effort to address greenhouse gas emission reduction, and the Orange County Long Range Transportation Plan, a 20 year vision of mobility for the County. In 2012 Tony was elected to the City of Newport Beach City Council from District 2. He chaired the City's Bicycle Safety Committee, and was responsible for the preparation of a comprehensive Citywide Bicycle Master Plan, a $22 million roadmap to safe cycling in the City. SERGIO RAMIREZ, Deputy Director of Economic & Property Development Department - City of Long Beach Sergio is directly responsible for oversight of the Real Estate and Property Services Division of the City. Previously, Sergio spent 12 years with the City of Anaheim's Community & Economic Development Department, where he was involved in many of the City's high-profile hospitality, retail, mixed-use, residential and sport facility projects. Recently, Sergio was head of the Amazon HQ2 bid representing the City of Long Beach in a dual -pronged submission with both the LAEDC and a partnership with City of Huntington Beach, which received national attention. His out-of-the-box approach towards economic development maximizes highest and best use for properties, Currently he is spearheading the City's LIMITLESS marketing campaign, aimed at marketing the City's countless development opportunities. Sergio brings phenomenal energy to Long Beach along with his incredible economic development smarts. He's passionate about his field and takes great pride in making a difference. ROBERT REICHER, The Reicher Company Robert Reicher has been active in the real estate industry for more than 20 years, holding positions with major developers and builders, as well as acting as an advisor and consultant to many of the most significant builders, developers, major corporations, lenders and government agencies in the nation. Mr. Reicher has overseen the establishment of a program of public/private development for a large Southern California county, prepared studies of fiscal and economic impacts of proposed development, developed capital budgets and fiscal plans, acted as a consultant regarding key real estate related strategic decisions, provided market guidance to redevelopment agencies, prepared management audits of operations of real estate -related government agencies, and presented seminars to government officials responsible for public/ private development.. TECHNICAL ASSISTANCE PANEL ITITI 51 52 HIGHWAY 111 CORRIDOR STUDY CARL W. RIEGER JR.,Managing Director - Eastdil Secured Mr Rieger is currently responsible for structured finance and the capitalization for large scale commercial and residential developments as Managing Director of Eastdil. Mr. Rieger's involvement with the company over the past 25 years has included roles in all four major business lines of Eastdil Secured - institutional property sales, debt placement, loan sales and capital raising. Mr. Rieger's experience is national in scope with significant geographic knowledge and expertise in California, Hawaii and Florida. Throughout his career Mr. Rieger has been involved with many of the largest real estate transactions in the country as well as advising the U.S Government's RTC and FDIC on strategic initiatives and sales. Prior to joining Eastdil Secured in 1993, Mr. Rieger was a Vice President with Arvida Company one of the country's largest community development companies. OSCAR URANGA, Partner - IMG Construction Management Oscar Uranga is a real estate development professional with over 18 years of experience in planning, development, entitlement and construction of various products. He has an extensive background in Real Estate, Planning, Project Management and GIS Technology. Oscar is a partner at IMG Construction Management, a professional real estate services firm which offers advisory and project management services related to land acquisition, underwriting, due diligence, entitlement processing, plancheck, financing, and construction management. He specializes in urban infill multifamily projects throughout Southern California. Oscar also opportunistically participates as a sponsor level development partner on projects that align with his interests SPENCER WAMPOLE, Founder, The Wampole Group, Inc. Spencer is Founder of The Wampole Group, Inc. Dba TRAVLR VACATION HOMES, an up and coming Vacation Rental Property Management company with experience in Commercial, Industrial and Residential Real Estate across Southern California markets. This full-service vacation rental management company is specifically designed to service investment clients and cater to high-end travelers in Indio, CA. We offer Real Estate Investment Syndication Opportunities, Full Service Real Estate Brokerage and Property Management for Luxury Vacation Rental Properties. Spencer is a graduate of USC Marshall School of Business and has his JD/MBA from Chapman University School of Law and George L. Argyros School of Business and Economics.