John RaymondCity of Palm Springs

May 17, 2013

Budget and Impact of TOT

Tourism in Palm Springs

Convention Center

Attractions

Events

Hotels – New and Existing

PS International Airport

Downtown/Uptown

Downtown Project

Palomar Hotel

Unique Features

Architecture/History

Indian Land Impacts

Economic Development

CViHub/Accelerator

Changes/Challenges

Budget Summary

Actuals Adopted Projected

2011-2012 2012-2013 2012-2013

Revenues $71,268,550 $76,428,275 $76,697,703

Savings Carryforward

from 11-12 to 12-13 1,740,590 1,740,590

Expenditures (68,605,934) (78,168,865) (78,168,865)

Net Surplus / (Deficit) $2,662,616 $0 $269,428

Projected Unrestricted

Ending Balance $11,779,373 $13,041,689 $13,311,117

Reserve % Equivalency 17% 17% 17%

TOT and Sales Taxes Summary

08-09 Actual 09-10 Actual 10-11 Actual 11-12 Actual 12-13 Budget

Hotel Tax $12,751,478 $13,367,685 $15,662,280 $17,861,268 $18,200,000

Sales Tax 8,796,538 8,221,763 9,633,250 10,179,526 10,629,504

Measure J 0 0 0 1,950,533 8,000,000

TOT + Sales $21,548,016 $21,589,448 $25,295,530 $29,991,327 $36,829,504

% of Total Rev 32% 32% 36% 42% 48%

Airline Service

Attractions

Special Events

History

Architecture

Natural Beauty

Native American Culture

Hotel Inventory

Downtown and Uptown

1,300,000

1,350,000

1,400,000

1,450,000

1,500,000

1,550,000

1,600,000

1,650,000

1,700,000

1,750,000

2008 2009 2010 2011 2012

+14.3%

Pop

Rank Metropolitan Area Year-round Seasonal

1 New York

2 Los Angeles Y

3 Chicago Y

4 Washington/Baltimore

5 San Francisco Y

6 Philadelphia

7 Boston

8 Detroit

9 Dallas/Fort Worth Y

10 Houston Y

11 Atlanta Y

12 Miami/Ft Lauderdale

13 Seattle Y

14 Phoenix Y

15 Minneapolis Y

PSP Service

Downtown’s street-level door front vacancy rate has dropped from 10% last year to 7.5%.

For the first time in over 5 years the Tahquitz Canyon corridor between Indian and Palm Canyon Drive has maintained 95% occupancy for over 8 months.

Uptown Pioneer Trina Turk expanded her flagship store in Palm Springs and celebrated a national partnership with Banana Republic which fostered national recognition nationwide touting “Palm Springs Style”.

With an astounding 90% participation rate among its merchant base, the Uptown District undertook its third year of managing its own branding with a brochure, billboard and Airport advertising campaigns which have solidified this area as the “chic” retro retail area, and garnered worldwide press.

• 13 Businesses Currently in Program

• 3 Clients Chosen to Present at “World’s Best Tech” Conference

• Recognized as Best Practices iHub by State, Co-Authored California iHub Plan

• Partnering with National Renewable Energy Lab in Golden, CO for Tech Transfer

Phase 1 - Accelerator Campus to open with 4 companies in April, 2013 (13,000 square feet)

Phase 2 - Accelerator in Planning/Fundraising Stage (40,000 square feet)

CViHub Accelerator “Investment Grade” Start-Ups

2012

Heppolt LLC

John S. RaymondDirector of Community & Economic Development

City of Palm Springs

office phone: 760.323.8228

cell phone: 760.902.1903

e-mail: John.Raymond@palmspringsca.gov