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HomeMy WebLinkAbout6/18/2008 - STAFF REPORTS - 4.C. Hilton Palm Springs Resort The Honorable Mayor Steve Pougnet and City Council Over the past seven years,the American Heat Motor Cycle Weekend,produced by Road Shows, Inc., has held their yearly event in Palm Springs. The first three years of events were staged on Palm Canyon Drive and were extremely successful for the event planner, local merchants, hotels and restaurants_ In 2003,the event was moved to the Tennis Annex at the Hilton and subsequently to the Spa Casino/Prairie Schooner parcel. Unfortunately, because of the"off main street" location, we have seen a steady decrease in attendance and most importantly a steady decline in"dollars". Palm Springs is an enormously popular destination for the Harley Davidson Motorcycle enthusiast and we strongly feel that the road show event should be held back on Palm Canyon Drive which is the ideal location for the exhibitors, and visitors. With the current economy, and a very noticeable decrease in our transient weekend visitors, it is extremely important to have the American Heat Motorcycle event take place on Palm Canyon Dive on October 101h—October 12"', 2008. Considering the weekend event generates the highest weekend rate and occupancy in the Fall Season, it will have a considerable incremental impact on the T.O.T. The Board of Directors of our Association unanimously support this event. ards, b a Ge eral Manager 400 EaslTahquitz Canyon Way, Palm Springs, CA 92262 Tel:+1 760 320 6868 Fax:+1 760 320 2126 www.palmsprings.hiltonxom For Reservations Only Call: 1 800 522 6900 in USA 1 800 527 8020 in Canada Reservations:www.hilton.com or 1-800-1-1ILTONS FACTS OF BIKER EVENT FOR OCTOSSR 1 011 1112 2000 This is a new merchant friendly concept of this event ,with piker related products displayed In the middle of Palm Cyn... giving our merchants a good shot of foot traffic. Under the new special event grant process ,this event would qualify handsomely. MainStreet, Hotel association ,restaurant association ,and hospitality association all approved It. This event is held early October at shoulder season time when we need the business. MainStreet within the past 2 weeks e-mail out a survey on special events with heavy emphasis on the new biker event concept on Palm Cyn. 83% were in favor. Presume a low ball attendance of only 3000 bikers staying in local hotels for Friday and Saturday night at an average night rate of $125..... TOT would cowrie in at over $100000 ,talus Food and Hev.,other related Sales tax collected. Iti your projected $44000 subsicty is correct ,then the event holds it's own quite nicely Yours Keith McCormick �- MainStreet Special Events Chair d N -LU co P r F- a N OF ?ALM 9 pi ti u' c FORN,P' City Council Staff Report DATE: June 11, 2008 �UNEV ii81 ZFJZ7$ (]�JFtfrtiSh9> .04 i o�lU SUBJECT: DIRECTION TO STAFF ON SUSPENSION OF CERTAIN REGULATORY ORDINANCES TO FACILITATE THE 2008 AMERICAN HEAT - PALM SPRINGS MOTORCYCLE WEEKEND, AND REQUEST FOR SPONSORSHIP FROM: David H. Ready, City Manager BY: Department of Parks and Recreation SUMMARY Road Shows, Inc. has produced the American Heat - Palm Springs Motorcycle Weekend, since 2000. Previously, the event was on Palm Canyon Drive, however, for the last three years, it has been held at the Spa Resort Casino parking lot. Following the 2007 motorcycle weekend, the promoter received notification from Spa Resort Casino staff that the parking lot would not be available for the event's use. In response to a request from the Main Street Executive Board, the promoter is proposing to hold the event on Palm Canyon Drive for three (3) days, from October 10th through October 12th. Palm Canyon Drive would be closed between Alejo and Baristo roads. Additionally, a Resolution is required to temporarily suspend the City's Noise Ordinance, Noise Nuisance, Dance Permits, Zoning Ordinance, and Sign Ordinance. Finally, the promoter is also seeking sponsorship funding assistance to offset the cost for City services. The estimate of subsidy requested is $44,000. RECOMMENDATION: 1. Adopt Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, SUSPENDING CERTAIN REGULATORY ORDINANCES FROM OCTOBER 10 THROUGH OCTOBER 12 TO FACILITATE THE 2008 AMERICAN HEAT - PALM SPRINGS MOTORCYCLE WEEKEND. 2. Provide budget direction to staff regarding promoter's request to cover in-kind services above $24,000; for a total subsidy of approximately $44,000 (Note: Given the potential budget deficit from the Governor's decision to withhold Special Distribution Funds for Gaming impact mitigation for the 08109 fiscal year, the City Manager's recommendation is to ask RSI to provide full funding for City services). ITEM NO, 4' G' 2008 American Heat - Halm bprings o orcyc e o o ee en Page Two STAFF ANALYSIS: Road Shows, Inc. (RSI) is a fully-licensed entertainment booking agency and event production company based in Reno, Nevada. RSI produces several well-known motorcycle and hot rod events throughout the country. The 2007 event was held at the Spa Resort Casino parking lot. The Spa Resort Casino gave notice to the promoter last year, following the event, that its property would no longer be available for the event. The promoter has been meeting with various parties to secure a location for the 2008 American Heat weekend. The Main Street Executive Board is in full support of placing American Heat- Palm Springs Motorcycle Weekend on Palm Canyon Drive and has been working with the promoter on this move. The new location on Palm Canyon will require a street closure in the downtown for three days. The setup and load-in for the event will begin at 8:00 a.m. on Friday, October 12, and Palm Canyon will remain closed through Sunday, October 14, until approximately 9:00 p.m. Arrangements will be coordinated through Main Streetto allow for merchant product deliveries, U.S. Postal Service, Fed EX, UPS, DHL and other mail delivery services. Main Street representatives and the Downtown Administrator will work directly with the promoter to handle any merchant issues or complaints that arise as a result of the closure both prior to and onsite during the event. The event layout will include entertainment stages, bike parking, and vendors. In coordination with Main Street, the promoter has agreed that no food vendors will be permitted. All vendors will be set up in the center of Palm Canyon Drive, with emergency access provided on the east and west sides of the street. The layout has been approved by the Palm Springs Fire Department (PSFD) with specific conditions for the street closure listed in the Event Promotion Agreement. For the 2007 event,the Council allocated $40,000 for in-kind services and the promoter was paid $24,000 toward those expenses. Actual expenses were approximately $14,000 related to the event site and $20,600 for extra coverage by the Police Department in the downtown area and on main thoroughfares throughout Palm Springs due to the influx of bikers. Additionally, PSFD received free supplemental assistance and support from the California Highway Patrol, California Department of Justice, Riverside County Regional Gang Task Force Unit, Bureau of Alcohol, Tobacco and Firearms, Riverside County Sheriff, San Bernardino County Sheriff and other southern California law enforcement agencies at no cost to the City. Although these agencies have participated in the Bike Weekend event for the past eight years, at this early date, it is not known whether these law enforcement agencies will continue to provide such services at no cost to the City. The value of the outside law enforcement support for 2007 is estimated at $84,000. 2008 American Heat - Palm Springs Motorcycle & Hot Rod Weekend Page Three For the proposed 2008 event, City services are expected to increase due to the venue being changed back to Palm Canyon Drive. RSI is again requesting that their fees for services be capped at $24,000, with the City participating as a sponsor to cover the remaining in-kind costs. The City service expenditure estimates are as follows: Parks Division —Trash management and event clean up $ 8,000 Public Works — Street closures & monitoring, signage, traffic control $ 4,400 Fire Department— First aid, fire inspection, on-duty Fire Marshal $ 5,300 Special Events staff— Oversight $ 1,200 Police Department— Public safety $49,100 Total $68,000 FISCAL IMPACT: The request to supplement in-kind City services is approximately $44,000 ($68,000 minus $24,000 from RSI). Mr. Randy Burke, RSI owner, will be present at the Council Meeting to discuss the anticipated "return on investment" to the City, in terms of anticipated hotel rooms, economic impact, etc. In the alternative, RSI is may consider a two day event. City expenses would be approximately $12,800 less. Sharon Heider, Director Thomas Wilson, Assistant City Manager Department of Parks and Recreation Development Services David H. Ready, CityMarr Attachments: 1. Resolution Suspending Certain Regulatory Ordinances 2. Letter of Request from Road Shows, Inc. QQ9 ©13 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL. OF THE CITY OF PALM SPRINGS TEMPORARILY SUSPENDING CERTAIN REGULATORY ORDINANCES TO FACILITATE THE 2008 AMERICAN HEAT PALM SPRINGS MOTORCYCLE WEEKEND. WHEREAS, the City of Palm Springs designated the American Heat - Palm Springs Motorcycle Weekend as a City-sponsored event; and WHEREAS, the City Council desires to facilitate the staging of the City-sponsored event to maximize revenue production; and WHEREAS, the City Council finds that certain regulatory ordinances, which are generally deemed desirable and necessary, may, nonetheless, impede the conduct of special events, and WHEREAS, the City Council finds that in holding special events,the public interest and the benefits derived therefrom outweigh the temporary public inconvenience; and WHEREAS the City Council has enacted Ordinance #1310 authorizing temporary suspension of regulatory ordinances, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A. The American Heat - Palm Springs Motorcycle Weekend is a special event beneficial to the community and its visitor-oriented economy. B. The dates of the 2008 American Heat - Palm Springs Motorcycle Weekend are from October 12 through October 14, C. Road Shows, Inc. is the event promoter, along with its construction and concession personnel and staff- D. The venue of the American Heat- Palm Springs Motorcycle Weekend is Palm Canyon Drive between Alejo and Baristo roads. SECTION 2. That the following ordinances are hereby temporarily suspended for the special event designated in Section 1 above: Noise Ordinance, Noise Nuisance, Dance Permits, Zoning Ordinance and Sign Ordinance. Resolution No. Page Two. SECTION 3. That the regulatory ordinances designated in Section 2 above shall remain in full force and effect except as to the event dates and persons or organizations designated in Section 1 above. ADOPTED this 11�' day of June, 2008. David H. Ready, City Manager ATTEST: James Thompson, City Clerk