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HomeMy WebLinkAbout00012C - G CHRISTOPHER DAVIS MARKET STUDY DOWNTOWN AREA ~ �RA - G. Christopher Davis Market Study in Downtown Area AGREEMENT #12 - Res. #045 12-3-75 AGREEMENT NO. 12 BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AND G. CHRISTOPHER DAVIS FOR A MARKET STUDY IN THE DOWNTOWN REDEVELOPMENT AREA WHEREAS the Downtown Development Advisory Commission of the City of Palm Springs at their meeting of June 26, 1975, concurred with the need for proposals for a market study in the project area; and WHEREAS the DDAC in addition concurred that the services include sup- portable retail and hotel usage; and WHEREAS the firm of G. Christopher Davis has agreed to perform a market study in the Downtown Redevelopment area, NOW THEREFORE this Agreement is entered into with G. Christopher Davis (hereinafter referred to as Consultant) and the Community Redevelopment Agency of the City of Palm Springs (hereinafter called Agency) for a market study, the parties do mutually agree as follows : ARTICLE I CONSULTANT'S SERVICES 1 .1 Retail Evaluation 1 . An update with new projections will be provided for the employ- ment, population and income elements of the economic base. The update will involve updating these economic segments from the 1970 census to the year 1975. The projection will forecast increases or decreases in population, employment and income to the year 1980. The depth of detail , where possible, will be made to the census tract level . The influence of limiting or enhancing factors affecting growth such as airport facilities, surface transportation, or water and power availability will be identified and analyzed. 2. Tourism and business related activity will be updated and pro- jection will identify the business cycle, especially as related to tourist activity. An evaluation will be made to determine hotel management's plans for attracting additional tourist dollars into Palm Springs. 3. The retail trading area for the Palm Springs Central Business District will be defined. This definition will identify market areas for both specialty and conventional retail presentations. 4. A detailed inventory of both traditional and specialty retail stores will be generated. The inventories will include both existing and planned competitive retail outlets. The details of the inventory will encompass identifying, locating geographically, sizing and evaluating all retail establishments judged to have an impact on the Palm Springs Central Business District trading area. 5. Retail sales potentials which will support the Palm Springs CBD will be determined. These potentials will identify the con- tribution in retail sales from both local resident and transient (tourist and business related) sources. Agreement No. Page -2- 1 .1 Retail Evaluation (continued) 6. Sets of alternative retail futures will be developed for the Palm Springs CBD. These retail futures will include alternatives in size and content for both conventional and specialty retailing. The Palm Springs City staff will be given full involvement in the alternative retail futures development process . 7. A computerized retail model will be employed for the purpose of calculating the retail sales volumes for the alternative retail futures. These sales volumes will be expressed in dollars by tenant by alternative retail future. Sales volumes for the first and fifth year levels will be forecast based on changes in popu-• lation, incomes , tourism, and shares of market. 8. The retail model will also be used to describe the impact of the alternative retail futures on existing retailing and total retailing in downtown Palm Springs. The impact on existing mer- chants will be further expressed in terms of dollar retail sales transfer on sales gain. 1 .2 Hotel Evaluation 1 . Identify the geographic limits of the primary and secondary market areas using correlations of travel time and distance to the major activity centers of the greater Palm Springs area. 2. Inventory all quality hotel facilities (as defined by the Mobil Guide and the AAA) in the primary and secondary market areas , and identify them geographically as each relates to the downtown area. 3. Survey all hotels identified in Task 2 above to determine de- tails regarding their market performance and characteristics. Data will be gathered on average daily room rates, number of rooms , year built or remodeled, room sizes and amenities, length of stay, seasonality, sources of business , restaurants and/or lounges, meeting and banquet facilities , and marketing techniques. 4 . From the results of the survey of hotels , identify those facil- ities thought to be the most competitive with a new downtown facility, and highlight their characteristics and performance. 5, Determine, through discussions with rental brokers , the details concerning competitive rental residential units (e.g. , condominiums) which will also impact the performance of a downtown facility. 6. Calculate demand for quality hotel facilities in the greater Palm Springs area. Using data from the City regarding demographical characteristics of residents, from the Convention and Visitors Bureau regarding convention, group and tourist characteristics. Airport passenger arrival/departure statistics will also be used in this portion of the analysis . Seasonal patterns will receive special attention in this analysis . Estimates will be provided for 1970 and 1975 together with detailed projections to 1980. More general projections of hotel demand by user segment will also be made through 1985. These calculations will be checked for validity and reasonableness with the actual performance figures gathered during the survey of quality hotel units. CRA 1 a 13 • • CP.A 1 a, 14 Agreement No. Page -3- 1 .2 Hotel Evaluation (continued) 7. The penetration of the projected market will be estimated for alternative hotel sites identified by the Agency staff as possible parcels. The impact of a new hotel facility downtown on existing developments (both in and out of the City) will also be simulated to provide information on which to optimize the Agency's interests by determining the best hotel sites and optimal size configurations. This site analysis will also take into consideration the conclusions reached in the retail demand portion of this wort: program. 8. A matrix of supply and demand depicting the present situation as well as projected for the future will be developed. This matrix will be used to simulate both sets of alternative futures with regard to effect on existing developments and scenarios regarding additional new hotel facilities (both in and out of the City) in the primary and secondary market areas . The matrix will also esti- mate the net effect on the City of alternative futures regarding hotel development. 9. Recommendations drawn From the hotel market demand analysis will be given to the Agency in complete detail . Sizing, possible phasing of development, rate structure, amenity packages and other details such as a suggested marketing strategy considering the elements of demand analyzed during this study will also be for- warded to the Agency in the final report. 10. Data necessary for the Agency's financial consultants to perform cost/benefit analysis , proforma financial studies and tax increment analysis will be forwarded to the Agency. An interim meeting will be held with the financial consultants as part of the work program to ensure that these data will be in a form compatible with their needs. 11 . Data and material of sufficient detail for staff production of a development package will be provided to the Agency if desired. 1 .3 Coordination with Others 1 . In consultation with Stone & Youngberg provide information on square footage of supportable retail by type, probable rental range by retail type. 2. Includes all research, travel , correspondence, discussions and management performed by the Consultant including three progress meetings , coordination with Stone & Youngberg, and two presentations to the Community Redevelopment Agency Board. ARTICLE 2 THE AGENCY'S RESPONSIBILITIES 2.1 The Agency shall provide full information regarding its requirements -for the Project. 2.2 The Agency shall designate the Redevelopment Director or other repre- sentative agreeable to the Consultant to act in its behalf with respect to the study. The Agency or its representative shall examine documents submitted by the Consultant and shall render decisions per- taining thereto promptly, to avoid unreasonable delay in the progress of the Consultant's work. Agreement No. Page -4- ARTICLE 2 (continued) 2.3 The Agency shall furnish a description of the area giving, as appli- cable, lines of streets, alleys , pavements and property; zoning, boundaries of the area; locations and data pertaining to existing buildings . 2.4 The Agency shall furnish the services of a financial consultant or other consultant when such services are deemed necessary by the Consultant, and shall assist Consultant in gaining relevant infor- mation from the Convention and Visitors Bureau and other such organ- izations. Report publication will be the responsibility of the Agency. 2.5 The services , information , surveys and reports required by Paragraphs 2.3 and 2.4 inclusive shall be furnished at the Agency's expense, and the Consultant shll be entitled to rely upon the accuracy and completeness thereof, ARTICLE 3 PAYMENTS TO CONSULTANT 3.1 Payments for Consultant Services shall be made monthly upon submis- sion of invoices accompanied by supporting documentation with a written statement of services and proportionate amount of work per- formed. 3.2 For the Consultant's basic services , as described in Article 1 , Paragraphs 1 .1 through 1 .3,2, a fee not to exceed $14,895. It is understood that the compensation for work to be performed under Article 1 , Paragraphs 1 .1 through 1 .3.2 represents a maximum expend- iture by the Agency to perform a full service. For purposes of this Agreement, the Principal is : G. Christopher Davis 4224 Via Pinzon Palos Verdes Estates, CA. 90274 For purposes of this Agreement, the Consultants are: Donahue, Hoghaug and Associates James Hoghaug, Principal in Charge ARTICLE 4 TERMINATION OF AGREEMENT This Agreement may be terminated by either party upon seven days ' written notice should the other party fail substantially to perform in accordance with its terms through no fault of the other. In the event of termination due to the fault of others than the Consultant, the Consultant shall be paid his compensation for services performed to termination date. ARTICLE 5 OWNERSHIP OF DOCUMENTS The results of this study are and shall remain the property of the Agency. They are not to be used by the Consultant on other projects except by agreement in writing. The Consultant shall provide the Agency one original copy of the report in reproducible form for representational purposes. CRA 1 a 15 • CRA 1 a 16 Agreement No. Page -5- ARTICLE 6 SUCCESSORS AND ASSIGNS The Agency and the Consultant each binds himself, his partners, suc- cessors, assigns and legal representatives to the other party of this Agreement and to the partners, successors , assigns and legal represent- atives of such other party with respect to all covenants of this Agree- ment. Neither the Agency nor the Consultant shall assign, sublet or transfer his interest in this Agreement without the written consent of the other. ARTICLE 7 EXTENT OF AGREEMENT This Agreement represents the entire and integrated agreement between the Agency and the Consultant and supersedes all prior negotiations, repre- sentations or agreements , either written or oral . This Agreement may be amended only by written instrument signed by both Agency and Consultant. ARTICLE 8 SCHEDULE OF WORK In view of the Agency's desire to proceed immediately with this study and recognizing that it interrelates to other on-going projects , it is neces- sary that this report be concluded within ten weeks of execution of this Agreement. ARTICLE 9 MISCELLANEOUS In the event a dispute arises out of this Agreement between Agency and the Consultant, whether resolved by arbitration or legal proceedings , the prevailing party shall receive all reasonable attornney's fees and costs. Dated at Palm Springs , California, this /J — day o ,bCyiLy , 1975. ATTEST - COMMUNITY REDEVELOPMENT AGENCY By A. F00 &r, Secretary ` " Executive Director REVIEWED AND APPROVED ���� CONSULTANT By APPROVED BY CRA RES. NO. 05, 12-3-75.