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HomeMy WebLinkAboutItem 2CFrom:Ron Willison To:City Clerk; Ron deHarte; Naomi Soto; David Ready; Grace Garner; Jeffrey Bernstein; Wayne Olson; Nora Ayala; Scott Stiles Subject:Letter Date:Wednesday, June 25, 2025 12:48:28 PM Attachments:image930319.png letter to the city Council, city manager and director of economic development for the City of Palm Springs.docx NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. City clerk, for inclusion in tonight's city Council budget meeting. I am also CCing all city Council members. Mayor and Council members I would be happy to sit down individually with you to go into more detail about destination events in the City of Palm Springs. The negative economic effects this inclusion of event permits into the vacation rental contract count will create for local businesses is far reaching. This will greatly impact the city's economic future and reputation as a destination location for conferences, weddings, and events. You can review details in the attached document, Warm regards, RON WILLISON​​​​,CMP Group Sales and Events Manager Palm Springs 760-835-1124 r.willison@naturalretreats.com NaturalRetreats.com https://magical-event.com/naturalretreats RON WILLISON Group Sales and Events Manager Palm Springs 760-835-1124 r.willison@naturalretreats.com NaturalRetreats.com 06/25/2025 Public Comment Item 2C Palm Springs Events: Economic Value This document outlines the significant economic contributions of luxury event estate venues in Palm Springs and advocates for a revision of the inclusion of event permits in the proposed reduction in the total of 26 contracts for properties that are vacation rentals. It highlights the potential negative impacts of restrictive policies and proposes streamlined processes to foster continued economic growth and community benefit. The clause referenced is on page 16, clause W “ for any vacation rental, including any junior vacation, that was also also used in the event house as that term is used in Palm Springs municipal code chapter 5.75 each event shall be counted as a contract for purposes of section 5.2 5.070 annual caps on the number of contracts for each property” Economic Impact of Luxury Event Venues Palm Springs' tourism sector is a cornerstone of its economy, generating over $9 billion in economic impact and supporting nearly 51,000 local jobs in 2023. Visitor spending reached $7.4 billion, with a significant portion tied to lodging and related services. Luxury event venues contribute substantially to this, with estate-related events alone accounting for an estimated $3.5 million in Transient Occupancy Tax (TOT) in 2023, representing 20% of the total collected. Annual spending in the Coachella valley for weddings and corporate events is over $50 million. This robust economic foundation underscores the vital role of high-value events in the city's prosperity. Current Regulatory Challenges and Advocacy for Event Permit Revision The City is implementing a new restriction, limiting event permits for vacation rentals and estates to 26 annually starting January 1, 2026, which poses a significant threat to Palm Springs' economic vitality. Advocacy for revising this proposed ordinance change is based on several key arguments: 06/25/2025 Public Comment Item 2C • Revenue Generation for Local Businesses and Vendors: Each event hosted at these luxury venues typically generates an average spend of $150,000 to $200,000 on the event itself, encompassing various services and expenditures. This directly supports local businesses such as caterers, event planners, rental companies, florists, and decorators, contributing millions annually to the local economy. The benefit to the owner and management company is minimal compared to the actual event spend in the local economy. • Tourism and Extended Visitor Spending: Destination events attract high-value visitors who spend significantly on dining, shopping, and activities, often extending their stays and increasing occupancy rates for local accommodations. They also produce millions of media impressions to further Palm Springs image. • Job Creation: Increased demand for event-related services creates job opportunities and stimulates employment in the local hospitality industry, supporting over 800 individuals in Palm Springs who rely on estate events for consistent employment. • Property Owner Rights & Competitiveness: Restricting event permits excessively infringes upon property rights and limits income, potentially making Palm Springs less attractive compared to other destinations with more flexible policies. • Cultural and Social Events & Tourism Promotion: Events at vacation rentals contribute positively to local culture and serve as promotional opportunities for Palm Springs, highlighting its attractions to a wider audience through media and word-of-mouth. • Revenue Generation for the City: Event permits generate added revenue for the city through fees and taxes, which can be reinvested into community infrastructure and services. A revised ordinance permitting more events could generate additional city revenue. This new inclusion would severely limit that revenue. • Sustainable Growth & Community Engagement: Revising the ordinance can help foster sustainable growth by balancing economic benefits with environmental and community considerations, involving stakeholders in the revision process. • Compliance with Regulations: We adhere strictly to all the current vacation rental restrictions as well as the Event permit requirements of notifying Neighbors controlling parking, noise, trash. These processes are already comprehensive and comprehensively, consider all the potential neighbor or city concerns. • Consider a Streamlined Process: The current 60-day period for applying for permits is too restrictive, limiting bookings in slower months. Streamlining the process to allow for a shorter application period, such as 30 days, would make it easier to plan and execute events while adhering to regulatory requirements. this does recreate a major hurdle for business. • The existing permit process for photo shoots and events could be better coordinated in one department with more consistent requirements. The current photo shoot requirement is only three days notice. Planning is handling the Event Permits and Parks and Recreation the photo shoot permit . This isn’t really an efficient process for businesses that bring a huge amount of media attention. 06/25/2025 Public Comment Item 2C • Permit requirements: Required city permits are requested from clients at least 90 days prior to the event, with a minimum timeframe of 60 days to file for the City Permit . A financial impact study commissioned by the Vacation Rental Owners Network (VRON) further highlights the dramatic negative consequences of these permit reductions on both property owners and the City of Palm Springs as a whole. The proposed revision aims to create a welcoming environment for businesses and clients, balancing economic benefits with community concerns. Event Permit Applicant Workflow and Operational Insights Event permit applicants already have in place an existing permit process designed to ensure compliance and minimize community impact. This includes submitting comprehensive documentation, such as detailed floor plans, transportation plans, and insurance certificates, a minimum of 60 days prior to the event. • Permit filings require the following documents: • Indemnity letter • Letter to the Neighbors • Letter to the neighborhood office • Natural Retreats and venue insurance • Parking plan • Shuttle contracts (these are separate documents) • Acknowledgement of conditions • Client Floor plan • Interior floor plan • Mailing list • The city also requires that a letter be sent to the mailing list recipients 30 days prior, notifying them of the event. • Permit filings are now submitted through an online portal to streamline the process and ensure timely approval On-site personnel are mandated to monitor events, strictly enforcing noise restrictions and ensuring all guests and vendors vacate the property by 10:00 PM. Post-event, properties undergo thorough cleanup and inspection. Additionally, event venues actively engage in community partnerships, including Modernism Week and various charitable organizations, leveraging their properties for tourism promotion and local goodwill, further demonstrating their commitment to the city. Our properties has sponsored events for Boys and Girls club of Palm Springs, Palm Springs Art Museum, Palm Springs Plaza, theater foundation, Alzheimer’s foundation and numerous others. Our company is also a platinum sponsor of Modernism Week. 06/25/2025 Public Comment Item 2C Conclusion for City Stakeholders The continued success of luxury event estates is intrinsically linked to the economic vitality of Palm Springs. The data clearly demonstrates the substantial revenue, job creation, and tourism promotion generated by these events and their associated spending across local businesses. The proposed reduction in event permits, coupled with existing restrictive regulations, poses a significant threat to this economic contribution and the city's competitiveness as a premier destination. We urge the City Council, City Manager, and Economic Development Director to carefully consider the comprehensive financial impact study. By collaborating with property owners and industry stakeholders, the city can rectify current oversights, streamline the event permit process, and ensure a welcoming environment that balances community concerns with sustainable economic growth. This collaborative approach will not only benefit property owners but will also amplify the positive ripple effect across the entire Palm Springs economy, supporting local vendors, charitable organizations, and the city's overall brand. 06/25/2025 Public Comment Item 2C From:Jeffrey Bernstein To:City Clerk Subject:Fwd: FY 2025-26 and FY 2026-27 Palm Springs City Budgets Date:Sunday, June 22, 2025 2:57:06 PM Thank you! Jeffrey Jeffrey Bernstein Council Member City of Palm Springs 442-305-9942 Jeffrey.Bernstein@palmspringsca.gov Begin forwarded message: From: "David A Vignolo" <david.vignolo@verizon.net> Subject: FY 2025-26 and FY 2026-27 Palm Springs City Budgets Date: June 22, 2025 at 1:58:51 PM PDT To: <jeffrey.bernstein@palmspringsca.gov> NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. Good afternoon Councilmember Bernstein: We urge you to vote “NO” when the Council meets on Wednesday to discuss the proposed FY 2025-26 and FY 2026-27 Palm Springs City Budgets. Please don’t be misled by staff’s assertions that the deficit for FY 2025-26, which in the prior budget presentation was $4,224,761, now has turned into a surplus of $3,744,186. Likewise, the deficit for FY 2026-27 which was $8,508,459 in the prior budget presentation, has now turned into a surplus of $81,621. After reading the Residents’ Guide to the Budget 2025-2026, we agree with the mayor’s analysis that “…we can’t allow proposals that rely on one-time maneuvers — shifting costs to restricted funds and dipping into savings — that don’t solve the real problem. In fact, they make our problem worse by making the gap harder to close later. With an economic downturn looming, revenue flattening, and employee costs rising, the Council must unite and lead: rein in spending, protect essential services, and invest in the one thing that grows revenue without raising taxes — the local economy.” The latest budget proposal shifts everyday costs into restricted funds, drains the city’s savings, and grows future pension payments — just to stay afloat. If you adopt this version, it is projected that Palm Springs will have a $9.9 million deficit by FY2026–27 and all city reserves will be depleted by 2028. We believe what is being proposed is not sustainable. Using one-time money to cover ongoing costs just delays the pain — and it makes the problem worse later. We urge you to direct city staff to go back and instead of just kicking the can for another council to remedy, come back with solutions to address the hard truths: the City and City staff need to tighten their belts, especially on nonessential capital projects, and invest what little we have in economic development. For example, one element in the new proposed budget that we question is the proposed change to the City’s Allocated Positions. This change would add existing positions in several Departments to “better provide service delivery in those Departments”. The personnel changes under consideration include an increase of 11.5 FTE positions from 656.0 to 667.5 in FY 2025-26 and no FTE increases in FY 2026-27. Exactly what will these individuals be doing and how will their work lead to robust economic development? Thank you for your consideration and we look forward to hearing how you will be voting on Wednesday. Regards, David A. Vignolo and Bill Mitchell 2041 S Madrona Drive Palm Springs, CA 92264-9220 (202) 409-5113 – David / (443) 545-4509 - Bill 06/25/2025 Public Comment Item 2C From:Jeffrey Bernstein To:City Clerk Subject:Fwd: A Concerned Note on the FY25-26 Budget Date:Friday, June 20, 2025 10:45:15 AM Thank you! Jeffrey Jeffrey Bernstein Councilmember City of Palm Springs 442-305-9942 Jeffrey.Bernstein@palmspringsca.gov From: Philip Hodges <philip.hodges@gmail.com> Sent: Friday, June 20, 2025 9:22 AM To: Jeffrey Bernstein <Jeffrey.Bernstein@palmspringsca.gov> Subject: A Concerned Note on the FY25-26 Budget NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe. Dear Councilmember Bernstein, I wanted to reach out and share my concern about the city budget currently under consideration. This doesn’t look like a one-off shortfall. It feels like the start of a more serious, long-term challenge, and we need to treat it that way. With the city’s fiscal health at an inflection point, these are the moments that reveal who’s focused on real solutions, who’s hoping the problem will somehow solve itself, and who will be remembered for doing the right thing. Right now, the budget depends heavily on hope — hope that TOT rebounds, that new grants appear, that this year is just an outlier. But if those hopes don’t pan out, we’re on a path to run out of money by 2028. And no amount of accounting maneuvers or one-time fund shifts will fix that. This isn’t about any one project. I support libraries, and I believe economic development 06/25/2025 Public Comment Item 2C should be a priority. My concern is that this budget doesn’t face the structural imbalance honestly — and delaying real solutions now will only lead to harsher cuts later that really harm the community. I don’t believe the current budget is fixable in its current form. It relies on too many temporary measures and doesn’t address the core problem. It kicks the can and makes everything somebody else’s problem, some other time. I hope you’ll vote it down. Restart the process, and work instead on a real fix — one that reins in costs, grows the economy, and protects essential services. I am fully aware that I may not be your favorite person, but I hope we can agree on one thing: Palm Springs deserves a budget that’s honest, responsible, and sustainable. Thanks for reading, and for your service. Philip Hodges 4426 Vantage Ln 06/25/2025 Public Comment Item 2C