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HomeMy WebLinkAbout5/18/2005 - STAFF REPORTS (10) COMMUNITY REDEVELOPMENT AGENCY MAY 18, 2005 CONSENT CALENDAR SUBJECT: APPROVAL OF AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH DESIGN WITHIN REACH FOR A PROPERTY LOCATED AT 296 NORTH INDIAN CANYON DRIVE, MERGED PROJECT AREA #2 FROM: David H. Ready, Executive Director BY: Community & Economic Development SUMMARY: This action approves an Exclusive Agreement to Negotiate with Design Within Reach for a property located at 296 North Indian Canyon Drive in Merged Area #2. The business is a designer furnishings company that has signed a lease on the former Plaza Motors location. There are a number of zoning and general plan issues to work through, which could necessitate Agency and developer participation in an Owner Participation Agreement. The developer has applied for a Conditional Use Permit for the use. This Agreement is for six months, during which the Agency and Developer would negotiate the terms of an OPA. RECOMMENDATION: 1. Adopt Resolution No. "A RESOLUTION OF THE CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH DESIGN WITHIN REACH FOR A PROPERTY LOCATED AT 296 NORTH INDIAN CANYON DRIVE, MERGED PROJECT AREA #2 STAFF ANALYSIS: Plaza Motors vacated their downtown Palm Springs location over a period of two years during 1998 and 1998, when they moved to Cathedral City. They have a number of years (approximately five) remaining on the Indian lease, at which point the improvements (without a lease renegotiation) would revert to the allottees. The uncertainty of the lease term and the specialized nature (as an auto dealer) and generally depressed conditions of the structure, as well as the size of the property, have reduced the number of potential tenants interested in leasing the property over the past several years. The last serious tenant the Agency negotiated with was an exotic car dealer nearly four years ago. Design Within Reach is a high-design furnishings store. Their plan is to use the existing showroom as a showroom and, in Phase ll, enclose the overhang at the south edge of Community Redevelopment Agency May 18,2005 Page 2 the property as conditioned space for additional floor area. Staff feels that the use, as a higher-end retail use along Indian, replacing a dilapidated auto dealership is a boon to downtown and to Section 14. The complication is the land use process due to the changes in allowable land use resulting from the adoption of the Section 14 master Plan in 2004. City Planning staff point out that the Tribal Planning staff had no issues with the application. The Section 14 Plan zoning of Resort Attraction (RA) does require a Conditional Use permit due to the retail nature of the use in the RA zone. The applicant would like to move inventory into the vacant space, at their risk, while the CUP is being processed since they only have a five year lease and the time clock is running. Entering an Exclusive Agreement to Negotiate would allow the Building Department to issue a temporary Certificate of Occupancy to allow them to commence on the interior improvements. This is a five year lease; it is likely that after that term, no matter how successful the tenant is, the site will be slated for a more appropriate Resort Attraction use. Nevertheless, the development on Indian Canyon Drive has lagged behind the rest of downtown and this business could be the first of several in this corridor. The action before the Agency is to approve an Exclusive Agreement to Negotiate with Design Within Reach, to be prepared by the Agency Counsel, for a period of six months during which we would negotiate an OPA, if necessary. FISCAL IMPACT: This Amendment does not have any fiscal impact to the Agency. John S. aymon Director of Community & David H. Ready„ t manager Economic Devv lo.. ment �" � community Redevelopment Agency May18,2005 Page 3 RESOLUTION NO. A RESOLUTION OF THE CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH DESIGN WITHIN REACH FOR A PROPERTY LOCATED AT 296 NORTH INDIAN CANYON DRIVE, MERGED PROJECT AREA #2 NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs that an Exclusive Agreement to Negotiate with Design Within Reach for a property located at 296 North Indian Canyon Drive, Merged Project Area #2, is hereby approved. ADOPTED this day of 12005. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By: Chairman Assistant Secretary REVIEWED &APPROVED RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS APPROVING AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH DESIGN WITHIN REACH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. An Exclusive Agreement to Negotiate with Design Within Reach for the property located at 296 North Indian Canyon Drive, Merged Project Area No. 2, is hereby approved for the term of six (6) months. ADOPTED THIS 18'h day of May, 2005. Chair ATTEST: James Thompson, Assistant Secretary CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, Assistant Secretary of the Community Redevelopment Agency of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the Community Redevelopment Agency of the City of Palm Springs on May 18, 2005, by the following vote: AYES: NOES: ABSENT: James Thompson, Assistant Secretary Community Redevelopment Agency of The City of Palm Springs, California _c ,fl If_A I am here to voice my support of RA.7. for Design Within Reach to locate a showroom at 296 NORTH INDIAN CANYON DRIVE, the old Plaza Motors. I am also here to show my support of Jerry Ogburn who has had a direct hand in helping bring this to Palm Springs. Indian Canyon needs a shot in the arm and DWR is a perfect fit. Some facts about DWR and why they fit in Palm Springs (copies for council) 1 . Nationally known: Their catalog is distributed to over 1,000,000 people per month. 2. A growing California company: 2004 sales were over $120 million dollars 3. One website described DWR like their products, "smart, stylish, and gaining rapidly in popularity." 4. Financially strong enough to have the own store credit card 5. Stores in major markets such as Chicago, Atlanta, Boston, 6. Stores in California cities like Newport Beach, L.A., San Diego, Palo Alto, Berkeley Please support this showroom entering our market and locating on a site that is a current blight to both visitors and residents. Attracting a store like this will only help us attract other high end stores. Please do not let it get held up in any more red tape. We keep saying we want these types of businesses, let's prove it from tonight all the way to the Grand Opening date. _j_TF 110V VOl J V1ll1110 - LGJlb'll VV Mull I\Vavlll 111V. 10.�jt' 1 V1 L MSN Nome I My MSN I Hotmail I Shopping I Money I People P.Chat Web Search: �Z� L Moneym Rome $nVP'.6Ung Banking I Planning I Taxes I dUlonay liars Investing Home Portfolio Markets Stocks Funds Insight Brokers CNBC Tv IPO Center Upcoming IPOs View IPOs IPO Performance New Filings Highlights IPO Basics powered by JCompany Overview Financials :;EC Ftlingp IPO Search pp unf I � � I GO �—��- Design Within Reach, Inc. Key Numbers advertisement 225 Bush St.,20th FI. Phone:415-676-6500 San Francisco,CA Fax:415-676-6871 Company Type: Public 94104 Toll Free:BOM44- Get a Company Web Site 2233 NASDAQ: DWRI $i iJCO'ooO Fiscal Year-End: December 2004 Sales(mil.):$120.6 1-Year Sales Growth:48.7% Loan for Design Within Reach (commonly referred to 2004 Net Income(mil.(:$3.7 as DWR) may be just out of reach for the 1-Year Net Income $625/month average Joe's pocketbook. Founded by Growth:23.3% professional designer Rob Forbes in 1998, 2004 Employees: 269 the company sells European-style home furnishings (sofas, lounge chairs, coffee Key People and end tables, shelving units, dining tables, office chairs, rugs, lighting, Sonno mattresses, and related accessories) and chairman has been featured on popular television John Hansen series Queer Eye for the Straight Guy and President,CEO,and Director Trading Spaces. Its contemporary goods Wayne L. Badovinus are sold through more than 30 retail studios nationwide (primarily located in California), CFO a catalog (nearly a million copies distributed Ken La Honta per month), and online through its Web site. CIO Vincent Barriero VP,Human Resources Carmela Krantz IPO Information Date Went Public: Jun 30, 2004 Mortgage rates are at Filing Date: Mar 24, 2004 record lows. Save $1000s 01-1 your Proposed Offer Price: $10.00 to $12.00 mortgage payment. Actual Offer Price: $12.00 Free quotes. You clon't First Day Open: $14.80 have to have perfect First Day Close: $16.43 credit to get a low rate loan. Shares Offered(mil.): 4.10 Offering Amount(mil.): $49.20 Post-Offering Shares (mil.): 12.85 Underwriters: CIBC World Markets Corp.; William Blair& Company; SG Cowen Securities Corporation;A.G. Edwards & Sons, Inc.; Legg Mason Wood Walker, Incorporated; Parker/Hunter Incorporated; Raymond James& http://moncycentral.hoovers.com/global/msn/factsheet.xhtml?COID=l13624 5/18/2005 May 18, 2005 a� �d ,ASPECT IN ACTION Design Within Reach Putting a call center in place today that will meet the the customer }ABOUT ASPECT needs of a rapid-growth company tomorrow Design Within RI *PRODUCTS a preeminent pri distinctive mode *INDUSTRY SOLUTIONS Design Within Reach is a lot like the products it sells—smart, furnishings and }GOVERNMENT SOLUTIONS stylish, and gaining rapidly in popularity. Founded in San Francisco }SERVICES, TRAINING & SUPPORT in 1998, Design Within Reach is an integrated multichannel The challenge provider of distinctive modern design furnishings and accessories. }NEWS AND EVENTS undatic The company markets and sells more than 725 innovative and Build e o }INVESTOR RELATIONS hard-to-find products in numerous categories to both residential excellentt custom that will scale to r. :i,,,._ and commercial customers nationwide, making distinctive modern CUSTOMER LIST furnishings more easily available to businesses and consumers company's rapid than ever before. The solution EXCELLENCE AWARDS A quickly installe }PARTNER PROGRAM packaged call ce An innovative approach to selling innovative designs with high-end ca Previously, well designed home furnishings, workspace furniture, and a seamless floor coverings, bathroom fixtures, and similar stylish products were difficult to obtain for the average consumer. Buyers who Solution compon wanted to see the work of top designers had to go to showrooms in a few large cities in North America and Europe, and orders took The results an average of four months to arrive. •Increased call h without adding a -Reduced operat Design Within Reach entered the market with an Innovative -Effective measu approach. Combining catalog sales, a shopping Web site, retail reporting of cont studios, a direct sales force, and an inventory system that makes performance •Hii it possible to ship products as soon as orders are placed, Design productivity Within Reach brought a new phrase to the world of designer furnishings—In Stock and Ready to Ship. The viability of the concept can be seen in the company's success �, IS and rapid growth. Since the first studio opened in San Francisco in 2001, Design Within Reach has added three more studios in the San Francisco Bay Area and others in New York, Los Angeles, Chicago, Dallas, Miami, Boston, and Portland. , A call center to support soaring catalog sales As new studios opened up across the country, the catalog end of View PDF the business was growing too, creating the need for a contact center that could efficiently handle high order volumes. Not just any call center system would do. Design Within Reach needed to start small with an easily installed solution with high-end - capabilities that could meet customer needs right away. Because the company is planning for expansion, however, the solution also "Our call center had to be able to scale seamlessly. costs per order contact droppe The answer was Aspect Iphinity Call Center, an out-of-Lhe-box call percent, and w center solution based on an award-winning enterprise system meeting our se used by major companies around the world. In addition to simple installation, Iphimty Call Center came packaged with a hardware goals without a platform and agent telephones, professional services for onsite agents. We atti installation and project management, education courses, a these results tc support plan, and reporting tools. productivity ga ability to bettei Measuring and managing for peak productivity manage our ca The reporting software in particular met Design Within Reach's and agent reso requirements. Before Iphinity Call Center, callers sometimes the Iphinity Ca waited in queues, often hanging up before calls were answered. http://www.aspect.com/customers/storyview.cfm?story_id=33 5/18/2005 LG51�11 VY lUllll AG(U:11-L YY A JlULL1UJ a nsa. a aia c Sign up for newsletter and email updates name@providecc Shop Designers Newsletter Wish List Viewed Items Viet My Account Studio Locator Catalog Quick Shop Online Catalog Customer Service DM `In 'Stockand DWR Studio Ready to Ship . go �w• y� cmm IT �r i DWR Studios provide you with a firsthand experience of our products and personalized servi available products can be test-driven on site and will either ship directly from our warehouse from the vendor(cash and carry is not available). Look for our Studios in major cities across States. Get your local studio events and openings when you sign-up for the DWR newsletter. St€ d"lo Locations LJpIsoining Events Opening Soon: Maryland May Adams Morgan Bethesda 05,13.05-05.22.05 Sign up to be notified Take a Tour of Urban Interic Massachusetts Pearl CitySpaces Arizona Boston Location: Portland Scottsdale Cambridge 05.18.05 California Michigan Kirkland Performance CentE Berkeley Birmingham Location: Kirkland Beverly Hills Los Angeles-Beverly Blvd. Minnesota 05.18.05 Mill Valley Minneapolis Designer Tom Dukich Visits Newport Beach Location, Seattle Palo Alto New Jersey Pasadena Princeton 05.18.05 San Diego Iconic Designing Women wi San Francisco- Fikkmore New York Elizabeth Grossman San Francisco-Jackson NYC-SoHo Location. Providence San Jose NYC-Brooklyn Hts Santa Monica NYC-Columbus Ave 05,19.05 NYC- East 62nd St Mutts&Mousers Meet Mod, Colorado NYC-West 14th Location: San Diego Boulder Denver Oregon 05.19.05 Portland DWR Westport Opening Ew Connecticut Location. Westport Westport Pennsylvania Philadelphia 05.19.05 District of Columbia Landscape in the Urban Fat Georgetown Rhode Island ILASLA Florida Providence Location: Chicago-Tiee St( http://www.dwr.com/dwrstudio.efm 5/18/2005 uestgn w i nm rceacn - L w rc 3LULLIUJ rago a ui Coral Gables Texas 05.21.05 South Beach Dallas Summer Planting with Serra West Palm Beach Houston Location: Dallas Georgia Washington 05.21.05 Atlanta Ktrkland Green Thumb 101 Seattle Location: Cambridge Illinois Chicago- North Ave 05.26.05 Chicago-Tree Studios DWR Champagne Chair To Evanston Comes to Town Location: Houston 05.26.05 DWR Princeton Opening Ev Location, Princeton 05.26.05 Modern Gardening 101 with Serralunga Location: South Beach 05.26.05 Modern Gardening 101 with Serralunga Location: Coral Gables 05.2605 San Jose State Industrial DE Junior/Senior Show Location: San Jose As well as being product galleries, our Studios serve as community centers for modern desig giving you the opportunity to share your passion for design through conversation,events and Many of our Studios are located in unique buildings, chosen for their architectural relevance historical context. Our Studio representatives hail from design backgrounds to provide you w and friendly assistance. Each Studio is a singular experience with varying products on displa call ahead for availabiity.We hope to see you soon. All Studio purchases are either shipped our warehouse in Kentucky or directly from the vendor. _ About DWR Contact Us Commercial Clients Terms r Press and Media Phone:800.944.2233 Affiliate Program Privacy Copyright©1999-2005 Design Within Reach.All AZ,CA,CO,CT,DC,FL,GA,IL,MD,MA,MI,MN,NJ,NY,OR,PA,RI,TX,WA http://www.dwr.com/dwrstudio.cftn 5/18/2005 Licbigii vv iu,ui neauu -L vv ix�ieuir�cuu Sign up for newsletter and email updates Iname@providers t Shop Designers Newsletter Wish List Viewed Items Vlet My Account Studio Locator Catalog Quick Shop Online Catalog Customer Service 611NP In Stock and DWR Credit Card Ready to Ship - - go I t took a century to nl fak'e +Open a DWR credit card acct +Marra ¢ our a- I"nC1C� r�i design this accessible. online y The whole point of a credit card is to make your life easier and to provide you with a world of possibilities. The DWR Credit Card account does both, with straightforward payment options APR Equal Payment Plan and numerous exciting ways to access the international design col THE DWR OPEN AN ACCOUNT TODAY CREDIT Apply today for a DWR Credit Card account using our online application for CARD annual fee. SAVE 25% ON SHIPPING Save 25%on shipping charges when you purchase using your DWR Credit Subject to credit approval.Applicable to both new and existing accounts. SIMPLE AND UP FRONT Spend a minimum of$499 and you may be eligible for an equal payment pL over 12 months, at a low APR of 9.9%." Spend a minimum of$1499 and you may be eligible for an equal payment F months, at a low APR of 9.9%." ONLINE ACCOUNT MANAGEMENT Manage your DWR credit card account.online- check account balance, pay contact a customer service representative or update your information CONVENIENT SHOPPING Use your DWR Credit Card to purchase online, by phone and in our Studio: Apply online. Anytir,e. APPLY CONVENIENT ONLINE APPLICATION ONLINE Fill out the online application form. You will receive immediate notice on ar NOW approved, your credit card account(and applicable savings)will be availat Immediately. HAVE YOU BEEN PRE-APPROVED? If you have received a pre-approved offer, click here Have your pre-apprc available. Take a few minutes to complete the online application MANAGE YOUR ACCOUNT ONLINE • Convenient online bill pay • Check your balance • Contact Customer Service Representatives • Update personal account information http://www.dwr.com/dwrCard.cfin 5/18/2005 LGJlb'll YV lUllll 1\G<R.11� L YY 1\\.1liLL1L li¢lLL 1¢b'L*L Vl L Laud 19.9°'0 APR Equal Payment Plan Monthly Payment Estimates" Amount of Purchase 12 Months 24 Months $499 $45 NA $999 $89 NA $1,499 $134 $71 $1,999 $178 $94 $2,500 $222 $117 $3,000 $267 $141 $3,500 $311 $164 $4,000 $356 $188 $5.000 $444 $234 $5,500 $489 $258 $6,000 $533 $281 *Credit Terms, Conditions and Details. When you use your Design Within Reach Credit Card account, Finance Charges are assessed on or credit plan purchases from the date of purchase through the end of the promotional period. Payment required during the promotional period. If the promotional credit plan purchase is not paid in full befo promotional period ends,the remaining balance will be included in your regular revolving balance an credit terms will apply. During the promotional period,the promotional credit plan purchase is subject of 9.9%.After the promotional period ends regular credit terms will apply and accounts are subject tc 22.8%,minimum FINANCE CHARGE of$1.00 based on Average Daily Balance. **DWR reserves the right, in its sole discretion,to change,modify,add or remove any portion of this whole or in part,at any time. ***The minimum payment due shown reflects the amount due if your previous balance is zero. Purcl be made using the Design Within Reach Credit Card. If previous balance is not zero,the minimum p, will be the greater of:(a)$10.00;or(b)3%(rounded to the nearest$1.00)of the New Balance show] Statement. Subject to credit approval. About DWR Contact Us Commercial Clients Terms c Press and Media Phone:800.944.2233 Affiliate Program Privacy Copyright©1999-2005 Design Within Reach.All http://www.dwr.com/dwrCard.cfin 5/18/2005 11 Design Within Reach to Open Four Additional Studios in 2004 San Francisco, CA (November 1, 2004)— Design Within Reach (NASDAQ: DWRI) announces the opening of retail Studios in Atlanta, Minneapolis and San Diego, as well as the Upper West Side of Manhattan. These openings are part of a nationwide rollout of retail locations and will join existing DWR Studios in Boston, Cambridge, Chicago, Dallas, Denver, Houston, the Los Angeles area, Miami, New York City, Portland, San Francisco and the East Bay, San Jose, Seattle, the Washington D.C. area and West Palm Beach. DWR is not entirely new to residents of these communities since many are already customers via DWR's popular catalog and web site (www.dwr.com). The addition of these Studios will provide existing and new customers in the markets the opportunity to interact and experience first-hand the classics, while introducing what is new and exciting in modern design. The Studios, designed by architect Alberto Rivera of L.A.-based Dax Studios, are each unique in their aesthetic but are all geared toward interaction between the customer and the designs. Frequently hosting events and speakers, the Studios also serve as local design centers in the community. DWR selects areas that reflect the vibrancy of the design community. Each Studio will carry designs by such modern legends as Charles and Ray Eames, George Nelson, Isamu Noguchi and Ludwig Mies van der Rohe, along with products by such young designers as Pablo Pardo, Ted Boerner and Angela Adams. -more- Minneapolis Studio Located at 2939 Hennepin Avenue South (phone 612-827-0990), the 5,000 square foot Studio is part of Minneapolis' burgeoning Uptown community, near popular Calhoun Square. DWR's Studio will bring a little modernism to the community that is an eclectic mix of artist studios, residences and shops that are interspersed with established businesses. The Studio is now open. San Diego Studio Located in the Simon Levi Building, at 715 J Street, Suite 102 (phone 619-744-9900), the 5,200 square foot studio is in San Diego's East Village neighborhood. The area has benefited greatly from urban renewal and is being transformed with residential lofts, artists' studios, restaurants and shops. The building is listed on the National Register of Historic Places and was originally a grocery warehouse. Just prior to housing the DWR Studio, the space was the home of the San Diego Padres Preview Center. The Studio is scheduled to open early in the first week of November 2004. Atlanta Studio Located at 295 East Paces Ferry Road (phone 404-841-2471), the 5,000 square foot location is in the heart of Atlanta's thriving and affluent Buckhead Village. Even before the development of Lenox Square Mall, designed by modernist architect Joe Amisano, the area had grown to be the city's most desirable community in which to reside, and is often considered the shopping mecca of the Southeast. The Studio is scheduled to open in the second week of November 2004. -more- New York City—Manhattan Located at 341 Columbus Avenue (phone 212-799-5900), the 1,800 square foot studio will be DWR's fourth location in Manhattan and the fifth in New York City. The blocks around the new Studio have recently become home to Barney's Co-Op, among other notable retailers. The location was most recently a Gap Kids. New York City continues to be a tremendous market for DWR since the opening of the first Studio in SoHo, in early 2003. Design Within Reach was founded in San Francisco in 1998. The company is an integrated multi-channel provider of distinctive modern design, which it markets and sells through retail studios, a catalog, a web site and a direct sales force. Contact: Mark Major 415/676-6571 mmalor aadwr.com