WHAT’S HAPPENING IN

PALM SPRINGS? (PSSST….IT’S GOOD)

Presentation to the Palm Springs Hospitality

Association

May 19, 2011

I FOCUS ON DEVELOPMENT

PROJECTS, NOT PROGRAMS

Hotels

Shopping Centers/Other Retail

Residential Development/Mixed Use Projects

Public Projects

Downtown

RECENT HOTEL PROJECTS

Riviera/Renaissance/Hyatt/Riviera

Hard Rock/Mondrian

Los Arboles (Indian Manor)

RIVIERA RENOVATION

RENAISSANCE/HYATT RENOVATIONS

Renaissance Hyatt

HARD ROCK HOTEL

MONDRIAN

LOS ARBOLES (INDIAN MANOR)

LOS ARBOLES

NET RESULT – TOT IS UP!

Fiscal Year Fiscal Year Fiscal Year Fiscal Year 09/10 v. 10/11

Month 2007-08 2008-09 2009-10 2010-11 % Change

July 693,328$ 727,810$ 681,421$ 893,586$ 31.14%

August 799,308 790,148 627,625 715,061 13.93%

September 840,200 741,931 708,714 835,392 17.87%

October 1,142,584 957,351 1,084,333 1,074,067 (0.95%)

November 1,344,172 1,108,968 1,151,258 1,162,232 0.95%

December 1,010,671 800,528 790,820 966,193 22.18%

January 1,335,151 1,092,858 1,137,727 1,307,064 14.88%

February 1,622,198 1,277,158 1,377,860 1,550,262 12.51%

March 2,081,218 1,622,398 1,808,229

April 1,670,021 1,773,237 1,952,692

May 1,218,972 1,118,319 1,268,493

June 708,657 740,772 778,513

14,466,480$ 12,751,478$ 13,367,685$ 8,503,857$ 12.49%

OVERALL REVENUE PICTURE

Total Property Sales

Revenues Revenues Taxes TOT * UUT Taxes

09-10 9 Months $38,790,476 $10,269,044 $7,559,758 $4,341,688 $5,022,204

10-11 9 Months $40,433,885 $9,393,210 $8,503,857 $4,811,318 $5,430,699

09-10 Actuals $65,791,021 $17,803,811 $13,367,685 $6,575,901 $8,221,763

10-11 Projected $66,623,839 $17,043,345 $14,300,000 $6,525,000 $8,540,000

* TOT reflects only 8 months of revenue

SHOPPING CENTERS/SALES TAX

Smoketree Commons/Smoketree Village

The Springs/Gene Autry Retail Center

New Rite Aid/Palm Springs Mall

Mercedes Benz Expansion

SMOKETREE COMMONS

SMOKETREE COMMONS

THE SPRINGS

THE SPRINGS

RITE AID/OTHER RETAIL

PALM SPRINGS MALL

MERCEDES BENZ EXPANSION

OVERALL - SALES TAX RETURNING TO PS!

Comparisons: 09-10 10-11 3Qs

Palm Springs ↓ –2.4% ↑ +7.9%

Coachella Valley ↓ –10.9% ↑ +5.3%

Riverside County ↓ –10.8% ↑ +5.2%

Inland Empire ↓ –10.9% ↑ +5.2%

Southern California ↓ –10.9% ↑ +5.4%

State of California ↓ –11.0% ↑ +5.8%

RESIDENTIAL DEVELOPMENT

Standing inventory (Tangerine, Palermo, Palomino)

Escena – course and clubhouse open, building homes

The Morrison under construction and selling

Affordable housing projects in the pipeline

ESCENA CLUBHOUSE

THE MORRISON – UNDER CONSTRUCTION

ROSA GARDENS

SUNSET PALMS

MIXED USE PROJECTS

Port Lawrence

The Palm Canyon (Ramon/SPC)

The Cameron Center (Mesquite/SPC)

Art Colony (Racquet Club/NPC)

Desert Fashion Plaza

PORT LAWRENCE

THE PALM CANYON

PUBLIC PROJECTS

College of the Desert Campus

iHub/CVEP Headquarters

Animal Shelter

School District Maintenance Facility

Jackie Lee Houston Plaza

COLLEGE OF THE DESERT CAMPUS

COACHELLA VALLEY INNOVATION HUB

CVEP/IHUB HEADQUARTERS

JACKIE LEE HOUSTON PLAZA

DOWNTOWN AND UPTOWN

Vacancy Reduced/Occupancy Up

Recent New Restaurants and upcoming: Lulu California Bistro

Growth and Success of Uptown, Entry Corridor: Dink’s, Blue Pear, Dickie O’Neal’s, Toucan’s

City/Agency helped over 100 façade improvements and interior remodels

NEW-RECENT-RENOVATED RESTAURANTS

Dink’s

Dickie O’Neal’s

Blue Pear

Cowboy Way

Trio

El Mirasol

Birba

Grind Brgr Bar

Rio Azul

Bill’s Pizza

Café Zini Med

Cielo Coffee

Johnny Costa’s

Woody’s Burgers

NEW RESTAURANTS

LULU CALIFORNIA BISTRO

UPTOWN PALM SPRINGS

UPTOWN RENOVATION – EL PASEO BUILDING

DESERT FASHION PLAZA

Community Design Workshops

Development Agreement to Planning Commission/Council

Project Financing Agreement/Ballot Measure to Council in June

DESERT FASHION PLAZA

Plan includes elements that came out of the

Community Design Workshops:

East-west connections/mountain views

Open space/courtyards

Museum expansion site

Movie theaters

Other entertainment uses

Class A retail

Other cultural uses

COMMUNITY DESIGN WORKSHOPS

COMMUNITY DESIGN WORKSHOPS

CONCEPTUAL PLAN