CITY COUNCIL AND PLANNING COMMISSION Page 1 of 4 SEPTEMBER 26, 2023
SPECIAL JOINT MEETING AGENDA
AGENDA
SPECIAL MEETING
OF THE LA QUINTA CITY COUNCIL
AND PLANNING COMMISSION
CITY HALL COUNCIL CHAMBER
78495 Calle Tampico, La Quinta
TUESDAY, SEPTEMBER 26, 2023, AT 4:00 P.M.
************************************************************* Members of the public may listen to this meeting by tuning-in live via http://laquinta.12milesout.com/video/live.
CALL TO ORDER
ROLL CALL: Councilmembers: Fitzpatrick, McGarrey, Peña, Sanchez, Mayor Evans Commissioners: Caldwell, Guerrero, Hassett, Hernandez, McCune, Tyerman, and Chairperson Nieto
PLEDGE OF ALLEGIANCE
CONFIRMATION OF AGENDA
PUBLIC COMMENTS - INSTRUCTIONS
Members of the public may address the City Council and Planning Commission on any matter listed or not listed on the agenda as follows:
WRITTEN PUBLIC COMMENTS can be provided either in-person during the meeting by submitting 15 copies to the City Clerk, it is requested that this takes place prior to the beginning of the meeting; or can be emailed in advance to [email protected], no later than 12:00 p.m., on the day of the meeting. Written public comments will be distributed to the City Council and Planning Commission, made public, and will be incorporated into the public record of the meeting, but will not be read during the meeting City Council agendas and staff reports
are available on the City’s
web page: www.LaQuintaCA.gov
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CITY COUNCIL AND PLANNING COMMISSION Page 2 of 4 SEPTEMBER 26, 2023
SPECIAL JOINT MEETING AGENDA
unless, upon the request of the Mayor, a brief summary of public comments is asked to be reported.
If written public comments are emailed, the email subject line must clearly state “Written Comments” and should include: 1) full name, 2) city of residence, and 3) subject matter.
VERBAL PUBLIC COMMENTS can be provided in-person during the meeting by completing a “Request to Speak” form and submitting it to the City Clerk; it is requested that this takes place prior to the beginning of the meeting. Please limit your comments to three (3) minutes (or approximately 350 words). Members of the public shall be called upon to speak by the Mayor.
In accordance with City Council Resolution No. 2022-027, a one-time additional speaker time donation of three (3) minutes per individual is permitted; please note that the member of the public donating time must: 1) submit this in writing to the City Clerk by completing a “Request to Speak” form noting the name of the person to whom time is being donated to, and 2) be present at the time the speaker provides verbal comments.
Verbal public comments are defined as comments provided in the speakers’ own voice and may not include video or sound recordings of the speaker or of other individuals or entities, unless permitted by the Mayor.
Public speakers may elect to use printed presentation materials to aid their comments; 15 copies of such printed materials shall be provided to the City Clerk to be disseminated to the City Council, made public, and incorporated into the public record of the meeting; it is requested that the printed materials are provided prior to the beginning of the meeting. There shall be no use of Chamber resources and technology to display visual or audible presentations during public comments, unless permitted by the Mayor.
All writings or documents, including but not limited to emails and attachments to emails, submitted to the City regarding any item(s) listed or not listed on this agenda are public records. All information in such writings and documents is subject to disclosure as being in the public domain and subject to search and review by electronic means, including but not limited to the City’s Internet Web site and any other Internet Web-based platform or other Web-based form of communication. All information in such writings and documents similarly is subject to disclosure pursuant to the California Public Records Act [Government Code § 7920.000 et seq.].
TELECONFERENCE ACCESSIBILITY – INSTRUCTIONS
Teleconference accessibility may be triggered in accordance with AB 2449 (Stats. 2022, Ch. 285), codified in the Brown Act [Government Code § 54953], if a member of the City Council or Planning Commission requests to attend and participate in this meeting remotely due to “just cause” or “emergency circumstances,” as defined, and only if the request is approved.
In such instances, remote public accessibility and participation will be facilitated via Zoom Webinar as detailed at the end of this Agenda.
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CITY COUNCIL AND PLANNING COMMISSION Page 3 of 4 SEPTEMBER 26, 2023
SPECIAL JOINT MEETING AGENDA
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the City Council and Planning Commission on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed above. The City Council and Planning Commission value your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by the Brown Act [Government Code § 54954.2(b)].
STUDY SESSION
PAGE
1. UPDATE ON HIGHWAY 111 CORRIDOR SPECIFIC PLAN – PROJECT NO. 2019-05
5 COUNCIL AND PLANNING COMMISSION MEMBERS’ ITEMS
ADJOURNMENT
*********************************
The next regular meeting of the City Council will be held on October 3, 2023, at 4:00 p.m. at the City Hall Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253. The next regular meeting of the Planning Commission will be held on October 10, 2023, at 5:00 p.m. at the City Hall Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Monika Radeva, City Clerk of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta City Council meeting was posted on the City’s website, near the entrance to the Council Chamber at 78495 Calle Tampico, and the bulletin board at the La Quinta Cove Post Office at 51321 Avenida Bermudas, on September 22, 2023.
DATED: September 22, 2023
MONIKA RADEVA, City Clerk
City of La Quinta, California
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CITY COUNCIL AND PLANNING COMMISSION Page 4 of 4 SEPTEMBER 26, 2023
SPECIAL JOINT MEETING AGENDA
Public Notices
Agenda packet materials are available for public inspection: 1) at the Clerk’s Office at La Quinta City Hall, located at 78495 Calle Tampico, La Quinta, California 92253; and 2) on the City’s website at www.laquintaca.gov/councilagendas, in accordance with the Brown Act [Government Code § 54957.5; AB 2647 (Stats. 2022, Ch. 971)]. The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk’s office at (760) 777-7123, 24- hours in advance of the meeting and accommodations will be made. If background material is to be presented to the City Council and Planning Commission during a City Council meeting, please be advised that 15 copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting.
*** TELECONFERENCE PROCEDURES – PURSUANT TO AB 2449***
APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT Verbal public comments via Teleconference – members of the public may attend and participate in this meeting by teleconference via Zoom and use the “raise your hand” feature when public comments are prompted by the Mayor; the City will facilitate the ability for a member of the public to be audible to the City Council, Planning Commission, and general public and allow him/her/them to speak on the item(s) requested. Please note – members of the public must unmute themselves when prompted upon being recognized by the Mayor, in order to become audible to the City Council, the Planning Commission, and the public.
Only one person at a time may speak by teleconference and only after being recognized by the Mayor.
ZOOM LINK: https://us06web.zoom.us/j/82540879912
Meeting ID: 825 4087 9912
Or join by phone: (253) 215 – 8782
Written public comments – can be provided in person during the meeting or emailed to the City Clerk’s Office at [email protected] any time prior to the adjournment of the meeting, and will be distributed to the City Council and Planning Commission, made public, incorporated into the public record of the meeting, and will not be read during the meeting unless, upon the request of the Mayor, a brief summary of any public comment is asked to be read, to the extent the City Clerk’s Office can accommodate such request.
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STUDY SESSION ITEM NO. 1
City of La Quinta
CITY COUNCIL AND PLANNING COMMISSION JOINT SPECIAL MEETING:
September 26, 2023
STAFF REPORT
AGENDA TITLE: UPDATE ON HIGHWAY 111 CORRIDOR SPECIFIC PLAN – PROJECT NO. 2019-05
RECOMMENDATION
Discuss progress on the Highway 111 Corridor Specific Plan (Corridor Plan).
EXECUTIVE SUMMARY
The Specific Plan will provide the framework for the development of mixed commercial and residential uses, a walkable and active environment, and attractive spaces with a wide range of services, products, entertainment, and activities. In September 2020, Council approved a contract with GHD, Inc. and Lisa Wise Consulting (LWC) to continue planning efforts to implement the 2019 Highway 111 Vision Plan (Vision Plan) including form-based code zoning and roadway design. In November 2020 and May 2021, joint study sessions were held with the Council and Planning Commission regarding zoning of the Corridor. In December 2021, Council approved revised contract scope for the Corridor Plan.
FISCAL IMPACT
The Capital Improvement Projects (CIP) program, beginning in FY 2019/20, has allocated a budget each fiscal year for projects to be implemented along Highway 111, including planning, design and construction. The next 5-year CIP allocates $1,000,000 each fiscal year for future project implementation.
Fiscal Year Budget
2019/20 $1,000,000
2020/21 $250,000
2021/22 $1,000,000
2022/23 $1,000,000
2023/24 $1,000,000
Total: $4,250,000
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The original contract budget for this project is $885,228. The contract has been amended five times to accommodate various added services resulting in a total of $1,457,653. As of August 2023, $750,558.05 has been expended.
BACKGROUND/ANALYSIS
The Highway 111 Corridor (Corridor) has been recognized as a priority by residents and City leaders for several years. The goal of the planning work on the Corridor is to make the Corridor a pedestrian-friendly area and create an atmosphere that invites people to stay, shop, and dine as well as preserve the economic viability of the area. A summary and timeline of the Highway 111 planning process is provided in Attachment 1.
The current contract for planning and engineering services to carry this vision forward consists of four phases:
Phase 1: Form-Based Code (FBC) Assessment and Sample Code. (COMPLETE) Phase 2: Corridor Design Concept includes roadway design concepts for the Corridor and considering right of way availability, utility conflicts, roadway level of service, multimodal connectivity and performance measures, and business access. (UNDERWAY)
Optional Phase 3: Active Transportation Program (ATP) Grant Application and Engineered Plans, Specifications, and Estimates (PS&E). (NOT YET INITIATED) o Prepare ATP grant application and PS&E for the demonstration project area identified in Phase 1.
Phase 4: Highway 111 Corridor Form-Based Code. (UNDERWAY) An overall Specific Plan (SP) for the entire Corridor affords a wholistic plan to create a more cohesive Corridor as is advised in the Vision Plan.
o Repeal multiple existing Specific Plans, integrate effective standards, and remove standards that are no longer effective.
o Develop “Build-out Plan” for Highway 111 to include potential maximum development scenarios to include number of residential units and commercial square footage. Scenarios would be based on a market demand analysis and property owner/developer input. “Build-out Plan” informs environmental analysis.
o Prepare “Highway 111 Code” for the Corridor that introduces Form-Based Code elements and objective design standards, ensures market-ready development block pattern with desired street network and frontages, and incentivizes public realm creation and amenities.
o Environmental review to cover the entire Corridor Build-out.
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Specific Plan
The Specific Plan task is currently underway. A market demand analysis has been prepared and property owner/developer outreach has taken place (Attachment 2). The information gathered from these was used to develop build-out plan scenarios with residential emphasis and mixed-use emphasis. Staff continues to meet with owners and developers on a regular basis. Also, as part of the specific plan effort, conceptual drawings for the City owned properties along the Corridor were created to help guide staff in coordination with potential developers. Goals and policies are being drafted based on these research efforts. Additionally, the environmental report and background technical studies are underway.
Prepared by: Cheri Flores, Planning Manager
Approved by: Danny Castro, Design and Development Director Attachments: 1. Highway 111 Background Summary
2. Market Demand Analysis
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Highway 111 Background Summary
The Highway 111 Corridor (Corridor) has been recognized as a priority by residents and City leaders for several years. Exhibit 1 shows a map of the Corridor area. The goal of the planning work on the Corridor is to make the Corridor a pedestrian-friendly area and create an atmosphere that invites people to stay, shop, and dine as well as preserve the economic viability of the area. What follows is a timeline of the planning process from 2018 to present day.
ULI Planning Study
In Summer 2018, the City commissioned the Urban Land Institute (ULI) to prepare a study on the Corridor. ULI’s Technical Assistance Panel came to La Quinta and conducted several focus groups and site visits of the Corridor and created a study to advise the City with options for improving the Corridor. The effort culminated in a study session with the City Council and Planning Commission, held on October 2, 2023, where the study was presented. The study can be found at the following link:
laquintaca.gov/home/showpublisheddocument/38431/636681075160830000 Vision Planning – Community Workshops, Design Charrettes, Community Survey The ULI study recommended that the city prepare a Corridor Area Plan in order to continue the vision for the Corridor. As part of this plan, a community survey was issued to residents and businesses to augment community workshops, design charettes and study sessions which were conducted to collect community and stakeholder feedback. Through these sessions, the plan was created and presented to Council and Planning Commission in November 2019. The Plan addresses connectivity, pedestrian- and bicycle-friendliness, transit, green infrastructure, economic development, and the retrofitting of the existing suburban fabric. Recommendations from the Vision Plan detail a strategy for improvements, recognizing the dual functions of moving vehicles and creating a safe, walkable environment that will lead to increases in economic competitiveness, neighborhood livability, and sustainability in La Quinta. The Vision Plan document can be found at https://www.laquintaca.gov/home/showdocument?id=43545. • A plan for implementation of this vision was presented in November 2019, where Council and Planning Commission provided guidance to prioritize roadway design and rezoning of the Corridor using form-based code as a way to facilitate place-making.
ATTACHMENT 1
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• In September 2020, Council approved an agreement with GHD, Inc. to provide an investigation into form-based code, prepare a sample form-based code, and prepare roadway designs. The scope of work included four phases, with optional phases to complete a form-based code for the entire Corridor and prepare Plans, Specifications and Estimates (PS&Es) for the roadway if staff was directed by Council to do so.
Phases are summarized below. Meeting video link: La Quinta, CA : City Council Meeting - 9/15/2020 (12milesout.com)
o Phase 1 consists of providing an overview of what form-based codes are and examples of other cities that have implemented them successfully, as well as preparing a sample code for one area of the Corridor as a demonstration project. o Phase 2 includes creation of design concepts for the Corridor including landscape design guidelines, right of way availability, utility conflicts, roadway level of service, and business access.
o Phases 3 and 4 are optional and are contingent upon City Council and Planning Commission direction. If desired, and after the completion of Phases 1 and 2, optional Phase 3 includes preparation of an Active Transportation Program (ATP) grant application and the PS&E for the demonstration project area identified in Phase 1. Optional Phase 4 would entail a deeper review into the multiple existing Specific Plans along the Corridor, with the possibility to repeal them and prepare a form-based code for the entire Corridor.
• In November 2020, an educational session on form-based code zoning was presented to the Council and Planning Commission and included an introduction to form-based code, examples from other cities where this has been implemented and how it could be used in La Quinta to transform and enhance future development of the Corridor.
Meeting link: La Quinta, CA : Special Joint Meeting of the City Council and Planning Commission - 11/10/2020 (12milesout.com)
• In May 2021, a joint study session was held with Council and Planning Commission to review the sample form-based code that was prepared for a portion of the Corridor referred to as the Demonstration Area (637585010668070000 (laquintaca.gov) p. 243).
The sample code showcased three areas of the Demonstration Area which have different levels of need for code updates and gave options of how to implement codes in each area. Meeting link: La Quinta, CA : City Council Meeting and Special Joint Council and Planning Commission Study Session - 5/18/2021 (12milesout.com) Implementation of the Vision
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• In December 2021, Council approved a revised scope for the optional Phase 4 that included creating an overall Specific Plan for the entire Corridor to implement the Highway 111 Vision, resulting in a wholistic plan to create a more cohesive Corridor as is advised in the Vision Plan. Meeting link: La Quinta, CA : Special Joint Meeting of the City Council and Planning Commission - 12/7/2021 (12milesout.com) o The revised Phase 4 scope consists of reviewing the eleven (11) individual specific plans along the Corridor, repealing them, and maintaining applicable existing standards and removing standards that are no longer effective or are not in line with the Highway 111 Vision.
o An overall Specific Plan would be drafted that incorporates these standards and creates a zoning code for the area that includes form-based code concepts. The Specific Plan code would also incorporate the existing Mixed Use and Affordable Housing Overlays to reduce layers of legislation and incorporate housing in the Corridor area to help meet the City’s housing goals.
o An additional item that was not initially considered in the scope is a build-out plan, similar to the Village Build-Out Plan, to be included in the Specific Plan.
This plan would be based on a market study and outreach to property owners along the Corridor. It would also include an environmental analysis consistent with the California Environmental Quality Act (CEQA) of the build-out of the area, thus accounting for environmental review for future developments.
Exhibit 1: Map of Highway 111 Corridor Area
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Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
City of La Quinta
Design and Development Department
Highway 111
Corridor Map
July 2023
®
Planning Division
Legend
Highway 111 Area Boundary
CV Link Route (FUTURE)
Washington Street
Adams Street
Dune Palms Rd
Jefferson Street
Highway 111
CV Link
Westward Ho Dr
Avenue 48
Best
Buy
Kohls
Target
Walmart
Costco
Stater
Bros
Lowe's
Home
Depot
City
Property
Solterra
Post
Office
Marshalls
Vons
Aldi Hobby
Lobby
Okura
Smart &
Final
Mimi's
Dealerships
Planet
Fitness
Sola
Salons
Floor and
Decor
Document Path: J:\MAPS\HIGHWAY 111\3-24-21 HIGHWAY 111 MAP.mxd EXHIBIT 1
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 1 MEMO
To: Jonathan Linkus and Todd Tregenza, GHD
From: Lisa Wise Consulting, Inc.
Date: August 11, 2022
Subject: La Quinta Highway 111 Specific Plan: Market Demand Analysis Introduction
This memo summarizes the Market Demand Analysis (Task 4.2.3), which describes the city’s demographic, economic, and real estate market conditions and trends and evaluates existing constraints to future development through the lens of market supply and demand. The memo also provides an estimate of future demand for retail, office, hotel, and residential space in the Highway 111 Project Area.
Key Findings
Residential Demand
• By the year 2045, La Quinta could have a citywide demand for approximately 4,439 to 5,743 new housing units, or between 193 and 250 new housing units each year. Among the 2045 citywide demand, there could be demand for between 3,520 to 4,554 single-family units and 919 to 1,189 multifamily units.
• From 2022 to 2045, the Highway 111 Plan Area could have demand for approximately 644 to 833 new housing units, or between 28 and 36 new housing units each year.
Office Demand
• By the year 2045, the City of La Quinta could have demand citywide for approximately 24,307 to 81,025 square feet of office space, and the Highway 111 Pan Area could have a demand for approximately 10,209 to 34,030 square feet of office space.
Hotel Demand
• Based on a review of the Highway 111 Plan Area amenities, commercial uses, urban form, and the siting of previous hotel development, it was determined that the Plan Area would most likely attract mid-tier hotels in the future assuming there are no structural changes in the Plan Area. • By the year 2045, La Quinta may have demand for between one and three mid-tier hotels with 100 to 150 rooms, and the Plan Area could absorb up to one mid-tier hotel through the year 2045.
Retail Demand
• By the year 2045, La Quinta could have demand for between 332,886 and 388,290 square feet of retail, and the Highway 111 Plan Area, could have demand for between 163,114 and 190,262 square feet of retail.
ATTACHMENT 2
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 2 Demographic and Household Conditions
This section describes characteristics of La Quinta’s population using data from the American Community Survey (ACS) and HUD’s Comprehensive Housing Affordability Strategy (CHAS). The analysis compares La Quinta with the nine cities represented by the Coachella Valley Association-Government (CVAG)1 and Riverside County to provide a relative understanding of conditions in La Quinta.
Population and Households
• In 2020, La Quinta had an estimated 41,650 residents and 16,292 households (Table 1). • In the last decade, La Quinta’s population grew at a slightly faster pace than in Riverside County and the CVAG Cities. From 2010 to 2020, La Quinta’s population grew by 16.8 percent compared to 15.6 percent in Riverside County and 14.9 percent in the CVAG Cities. During this period, the number of households increased by 19.3 percent in La Quinta, 10.4 percent in the county, and 24 percent in the CVAG Cities.
• La Quinta households are slightly larger than households across the CVAG Cities, but households in La Quinta and the CVAG Cities are much smaller compared to the county overall. In 2020, the average household size was 2.55 in La Quinta, 2.41 for the CVAG Cities, and 3.26 for Riverside County.
1 The CVAG Cities include Desert Hot Springs, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, and Coachella.
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 3 Table 1: Population and Household Trends, 2010 to 2020
2010 2020 Change 2010 to 2020
Number Number Number Percent
La Quinta
Total Population 35,661 41,650 5,989 16.8%
Total Households 13,658 16,292 2,634 19.3%
Average Household Size 2.61 2.55 -0.06 -2.3%
CVAG Cities
Total Population 336,693 386,873 50,180 14.9%
Total Households 128,779 159,722 30,943 24.0%
Average Household Size 2.60 2.41 -0.20 -7.5%
Riverside County
Total Population 2,109,464 2,437,864 328,400 15.6%
Total Households 666,906 736,413 69,507 10.4%
Average Household Size 3.12 3.26 0.14 4.5%
Source: American Community Survey, 5-Year Est., 2010, 2020.
Race and Ethnicity
• La Quinta is less racially and ethnically diverse than Riverside County and the CVAG Cities. In 2020, about 54 percent of La Quinta’s residents identified as Non-Hispanic White compared to 34 percent in the county and 41 percent in CVAG Cities (Table 2). • The Hispanic/Latino population is the second-largest racial and ethnic group in La Quinta (36.2 percent) but is less represented in La Quinta than in the county (49.4 percent) and CVAG Cities (49.6 percent).
Table 2: Race and Ethnicity, 2020
La Quinta CVAG Cities Riverside County
Number Percent Number Percent Number Percent
Non-Hispanic White 22,594 54.2% 159,142 41.1% 837,847 34.4% Hispanic/Latino 15,080 36.2% 191,743 49.6% 1,204,521 49.4% Non-Hispanic Black/African American 714 1.7% 11,927 3.1% 148,003 6.1% Non-Hispanic Asian 1,802 4.3% 14,566 3.8% 159,004 6.5%
Other Race/Ethnicity 1,460 3.5% 9,495 2.5% 88,489 3.6%
Source: American Community Survey, 5-Year Est., 2020.
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 4 Educational Attainment
• Educational attainment is higher in La Quinta than in the county and the CVAG Cities. In La Quinta, an estimated 33.4 percent of residents who are 25 years or older have earned a bachelor’s degree or higher compared to 23.2 percent in Riverside County and 27.2 percent in the CVAG Cities (Table 3).
Table 3: Educational Attainment, 2020
La Quinta CVAG Cities Riverside County
Number Percent Number Percent Number Percent
High School Degree or Less 9,081 30.0% 125,512 43.8% 697,174 43.9% Some College 10,752 35.5% 83,180 29.0% 521,489 32.8%
Bachelor's Degree 6,364 21.0% 46,935 16.4% 236,902 14.9% Advanced Degree 4,048 13.4% 30,911 10.8% 132,238 8.3%
Total Population 25 Years or Older 30,245 286,538 1,587,803 Universe: Population 25 Years or Older.
Source: American Community Survey, 5-Year Est., 2020.
Age Distribution
• La Quinta has a relatively large population of elderly residents (age 65 or older). In 2020, 27.1 percent of La Quinta residents were 65 and older, compared to 24.3 percent in CVAG cities and
14.5 percent in Riverside County (Table 4).
• La Quinta and the CVAG Cities also have a somewhat smaller population of teens and children (age under 18). In 2020, 20.1 percent of La Quinta’s population was under 18 years old compared to 18.6 percent in the CVAG Cities and 25.2 percent in Riverside County.
Table 4: Age Distribution, 2020
La Quinta CVAG Cities Riverside County
Number Percent Number Percent Number Percent
Under 18 8,368 20.1% 71,812 18.6% 613,823 25.2%
18 to 24 3,037 7.3% 28,523 7.4% 236,238 9.7%
25 to 44 7,597 18.2% 89,172 23.0% 654,005 26.8%
45 to 64 11,348 27.2% 103,475 26.7% 581,423 23.8%
65 and older 11,300 27.1% 93,891 24.3% 352,375 14.5%
Source: American Community Survey, 5-Year Est., 2020.
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 5 Household Type and Tenure
• Families with children are less represented in La Quinta and the CVAG Cities than in the county.
In 2020, 23.6 percent of households in La Quinta were families with children, which was slightly higher than in the CVAG Cities (20.8 percent) but lower than in Riverside County (37.2 percent) (Table 5).
• Families without children comprise 43.7 percent of the households in La Quinta, which is a higher share than in the CVAG Cities (35.6 percent) and Riverside County (36.1 percent). • La Quinta has a slightly higher percentage of owner-occupied households (72.4 percent) than the CVAG Cities (67.2 percent) and Riverside County (67.5 percent) (Figure 1).
Table 5: Household by Type, 2020
La Quinta CVAG Cities Riverside County
Number Percent Number Percent Number Percent
Families with Children 3,852 23.6% 33,144 20.8% 273,902 37.2% Families without Children 7,127 43.7% 56,940 35.6% 265,556 36.1% Single-Person Household 4,517 27.7% 58,422 36.6% 156,654 21.3% Other Non-Family Household 796 4.9% 11,216 7.0% 40,301 5.5% Source: American Community Survey, 5-Year Est., 2020.
Figure 1: Housing Tenure, 2020
Source: American Community Survey, 5-Year Est., 2020.
Income
• In 2020, La Quinta’s median income was $75,724 (Table 6). La Quinta’s median income was higher than the CVAG Cities median income of $54,916 and somewhat higher than Riverside County’s median income of $70,732. 72.4%
67.2%
67.5%
27.6%
32.8%
32.5%
0%
20%
40%
60%
80%
100%
La Quinta CVAG Cities Riverside County
% Occupied Households
Owner Occupied Renter Occupied
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 6 • La Quinta also has a larger share of households earning $125,000 or more annually and a smaller share of households earning less than $30,000 per year than the CVAG Cities and Riverside County. In 2020, 17 percent of La Quinta households earned less than $30,000 per year compared to 29 percent of households in the CVAG Cities and 21 percent of households in Riverside County (Table 7). In the same year, 29 percent of La Quinta households earned $125,000 or more each year compared to 19 percent of households in the CVAG Cities and 24 percent of households in Riverside County.
• When controlling for household size, La Quinta has a higher percentage (70.6 percent) of moderate and above moderate-income households (earning 80 percent of the area median income or greater) than CVAG Cities (55.8 percent) and Riverside County (63.3 percent) (Figure 2). Likewise, the shares of households that are low income (14.1 percent), very low income (7.5 percent), and extremely low income (7.8 percent) are less in La Quinta than in the CVAG Cities and Riverside County.
Table 6: Median Income, 2020
Median Income
La Quinta $ 75,724
CVAG Cities $ 54,916
Riverside County $ 70,732
Source: American Community
Survey, 5-Year Est., 2020.
Table 7: Households by Annual Income, 2020
La Quinta CVAG Cities Riverside County
Number Percent Number Percent Number Percent
Less than $30,000 2,725 17% 46,358 29% 151,767 21%
$30,000 to $49,999 2,825 17% 27,657 17% 111,238 15%
$50,000 to $74,999 2,545 16% 26,084 16% 124,844 17%
$75,000 to 124,999 3,458 21% 29,632 19% 172,337 23%
$125,000 or More 4,739 29% 29,991 19% 176,227 24%
Source: American Community Survey, 5-Year Est., 2020.
17 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 7 Figure 2: Households by Adjusted Income, 2018
Source: HUD, Comprehensive Housing Affordability Strategy, 2018.
Demographics and Households Conclusions
• There is likely a demand for a variety of new housing in La Quinta. Overall demand for housing is demonstrated by the significant growth in population and households in La Quinta and by the regional pressures for housing exacerbated by the ongoing housing crisis. (The extent of demand for housing in La Quinta is further explored in the Residential Market Demand Section). • La Quinta’s household demographics suggest there is a demand for a mix of larger housing types to accommodate families with children and smaller housing types to accommodate families without children and single-person households. However, La Quinta has a relatively large population of families without children, which may require less space and drive demand for smaller units.
Demand for smaller units may also be driven by La Quinta’s senior and aging population. And while most city residents are homeowners, a significant portion of households rent their home, indicating demand for both ownership and rental housing. Single-family homes and large condominiums, townhomes, and rental multifamily units are likely needed to support families with children in La Quinta. Smaller for-sale and rental multifamily units would also be needed for families without children, single-person households, and seniors.
Economic Conditions
This section describes La Quinta’s employment trends compared to Riverside County. The analysis uses the publicly available data source, Longitudinal Employer-Household Dynamics (LEHD) and HdL data provided by the city. 7.8%
7.5%
14.1%
70.6%
14.2%
12.3%
17.6%
55.8%
10.7%
10.4%
15.6%
63.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Extremeley Low
(0-30% AMI)
Very Low
(30-50% AMI)
Low
(50-80%)
Moderate and Above
Moderate (>80% AMI)
% Occupied Households
La Quinta CVAG Cities Riverside County
18 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 8 Employment Overview
• In 2019, there were an estimated 11,672 jobs in La Quinta, and 56 percent of these jobs (6,488 jobs) are estimated to be in the Highway 111 Plan Area (Table 8).1 • The total number of jobs in La Quinta accounts for 8.8 percent of total jobs in the CVAG Cities and
1.6 percent of total employment in Riverside County (Table 9). • From 2011 to 2019 total employment in La Quinta decreased by 8 percent, while employment grew by 11 percent in the CVAG Cities and by 28 percent in Riverside County (Table 10).
Table 8: Total La Quinta Employment, 2019
Total Jobs % La Quinta
Highway 111 Plan Area 6,488 56%
La Quinta 11,672 100%
Note: The Highway 111 Plan Area is approximated using the Census Block Group 1, Census Tract 451.21 and Block Group 3, Census Tract 452.15, Riverside County, California.
Source: LEHD, 2019.
1 The Highway 111 Plan Area is approximated using the Census Block Group 1, Census Tract 451.21 and Block Group 3, Census Tract 452.15, Riverside County, California.
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 9 Table 9: Total Employment, CVAG Cities and Riverside County, 2019 Total Jobs % CVAG % Riverside
County
La Quinta 11,672 8.8% 1.6%
Desert Hot Springs 3,687 2.8% 0.5%
Palm Springs 28,521 21.5% 3.8%
Cathedral City 9,934 7.5% 1.3%
Rancho Mirage 16,175 12.2% 2.2%
Palm Desert 29,284 22.0% 3.9%
Indian Wells 3,862 2.9% 0.5%
Indio 20,767 15.6% 2.8%
Coachella 8,973 6.8% 1.2%
CVAG Cities 132,875 100.0% 17.8%
Riverside County 745,957 N/A 100.0%
Note: The Highway 111 Plan Area is approximated using the Census Block Group 1, Census Tract 451.21 and Block Group 3, Census Tract 452.15, Riverside County, California.
Source: LEHD, 2019.
Table 10: Employment Growth, CVAG Cities and Riverside County, 2011 to 2019 2011 2019 Change 2011 to 2019
Number Number Number % Change
La Quinta 12,721 11,672 -1,049 -8%
Desert Hot Springs 3,232 3,687 455 14%
Palm Springs 24,016 28,521 4,505 19%
Cathedral City 9,489 9,934 445 5%
Rancho Mirage 15,033 16,175 1,142 8%
Palm Desert 28,565 29,284 719 3%
Indian Wells 4,724 3,862 -862 -18%
Indio 15,067 20,767 5,700 38%
Coachella 7,105 8,973 1,868 26%
CVAG 119,952 132,875 12,923 11%
Riverside County 581,470 745,957 164,487 28%
Note: The Highway 111 Plan Area is approximated using the Census Block Group 1, Census Tract 451.21 and Block Group 3, Census Tract 452.15, Riverside County, California.
Source: LEHD, 2011, 2019.
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 10 Employment by Industry Sector
• La Quinta’s largest industries include Accommodation & Food Services, Educational Services, Retail Trade, and Health Care & Social Assistance (Table 11). These four industry sectors are also the top industries in Riverside County, although the relative share of employment differs between the city and county for each sector. In 2019, Accommodation & Food Services jobs accounted for
27.7 percent of total jobs in La Quinta and 12.5 percent of jobs in Riverside County. Educational Services jobs accounted for 17.8 percent of jobs in La Quinta and 10.1 percent of jobs in the County. Retail Trade jobs accounted for 15.9 percent of jobs in La Quinta and 11.1 percent of jobs in the county. Lastly, Health Care & Social Assistance jobs account for 9.2 percent of jobs in La Quinta and 14.5 percent of jobs in the county.
• Although the top three industry sectors employing the most people (Accommodation & Food Services, Educational Services, and Retail Trade) remained the largest sectors in La Quinta from 2011 to 2019, the number of jobs in each sector decreased during this period in La Quinta. From 2011 to 2019 the Accommodation & Food Services sector lost 1,107 jobs (25.5 percent decrease), Educational Services lost 151 jobs (6.8 percent decrease), and Retail Trade lost 725 jobs (28.1 percent).
• Health Care & Social Assistance is a large and growing industry in La Quinta. From 2011 to 2019, the sector grew by 674 jobs, an increase of 168.5 percent. La Quinta’s growth in the Health Care & Social Assistance sector outpaced growth in Riverside County where Health Care & Social Assistance employment increased by 76.8 percent from 2011 to 2019. • Arts, Entertainment, and Recreation employment is highly concentrated in La Quinta. While the sector represents a moderate amount of employment in La Quinta (7.6 percent of total jobs) Arts, Entertainment, and Recreation jobs in La Quinta represent an outsized share of jobs in the sector for the county. In 2019, La Quinta’s total employment accounted for 1.6 percent of total employment for the county. However, Arts, Entertainment, and Recreation jobs in La Quinta account for 5.4 percent of jobs in the sector for the county (Figure 3). Accommodation & Food Services is also notably concentrated in La Quinta. Accommodation & Food Services jobs accounted for 3.5 percent of jobs in the sector across the county.
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 11 Table 11: La Quinta Employment by Industry Sector, 2011 to 2019 2011 2019 Change 2011 to 2019
Number Percent Number Percent Number Percent
Accommodation & Food Services 4,342 34.1% 3,235 27.7% -1,107 -25.5% Educational Services 2,225 17.5% 2,074 17.8% -151 -6.8% Retail Trade 2,582 20.3% 1,857 15.9% -725 -28.1%
Health Care & Social Assistance 400 3.1% 1,074 9.2% 674 168.5% Arts, Entertainment, & Recreation 667 5.2% 892 7.6% 225 33.7% Administration & Waste Management 460 3.6% 511 4.4% 51 11.1% Construction 370 2.9% 440 3.8% 70 18.9%
Other Services 425 3.3% 350 3.0% -75 -17.6%
Professional & Technical Services 347 2.7% 321 2.8% -26 -7.5% Real Estate 165 1.3% 217 1.9% 52 31.5%
Finance & Insurance 193 1.5% 148 1.3% -45 -23.3%
Information 49 0.4% 114 1.0% 65 132.7%
Public Administration 136 1.1% 114 1.0% -22 -16.2%
Wholesale Trade 148 1.2% 104 0.9% -44 -29.7%
Manufacturing 46 0.4% 91 0.8% 45 97.8%
Utilities 91 0.7% 77 0.7% -14 -15.4%
Transportation & Warehousing 39 0.3% 31 0.3% -8 -20.5%
Agriculture & Forestry 24 0.2% 22 0.2% -2 -8.3%
Mining - 0.0% - 0.0% 0 0.0%
Management of Companies 12 0.1% - 0.0% -12 -100.0%
Source: LEHD, 2011, 2019
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 12 Table 12: Riverside County Employment by Industry Sector, 2011 to 2019 2011 2019 Change 2011 to 2019
Number Percent Number Percent Number Percent
Health Care & Social Assistance 61,087 10.5% 107,974 14.5% 46,887 76.8% Accommodation & Food Services 68,997 11.9% 93,546 12.5% 24,549 35.6% Retail Trade 82,169 14.1% 82,809 11.1% 640 0.8%
Educational Services 67,761 11.7% 75,087 10.1% 7,326 10.8% Construction 33,602 5.8% 72,131 9.7% 38,529 114.7%
Administration & Waste Management 35,130 6.0% 52,394 7.0% 17,264 49.1% Transportation & Warehousing 20,453 3.5% 48,728 6.5% 28,275 138.2% Manufacturing 39,733 6.8% 45,291 6.1% 5,558 14.0%
Public Administration 34,922 6.0% 32,683 4.4% -2,239 -6.4% Wholesale Trade 22,625 3.9% 26,617 3.6% 3,992 17.6%
Professional & Technical Services 18,789 3.2% 23,064 3.1% 4,275 22.8% Other Services 29,384 5.1% 21,593 2.9% -7,791 -26.5%
Arts, Entertainment, & Recreation 19,543 3.4% 16,588 2.2% -2,955 -15.1% Agriculture & Forestry 13,783 2.4% 12,430 1.7% -1,353 -9.8% Finance & Insurance 10,944 1.9% 10,360 1.4% -584 -5.3%
Real Estate 7,613 1.3% 10,311 1.4% 2,698 35.4%
Information 7,105 1.2% 6,527 0.9% -578 -8.1%
Utilities 4,488 0.8% 4,359 0.6% -129 -2.9%
Management of Companies 2,937 0.5% 3,049 0.4% 112 3.8%
Mining 405 0.1% 416 0.1% 11 2.7%
Source: LEHD, 2011, 2019
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 13 Figure 3: La Quinta Industry Employment Share of Riverside County Industry Employment, 2019 Source: LEHD, 2019
Firms by Industry Sector
• There are an estimated 1,340 firms in La Quinta (Table 13). • Nearly half of the businesses in La Quinta (48.9 percent of total firms) are involved in Retail Trade.
Accommodation & Food Services comprise 11.9 percent of all firms, and Manufacturing is the third most represented industry sector at 6.6 percent of total firms. • According to the city’s most recent comprehensive annual financial report (CAFR, fiscal year 2019/2020), La Quinta’s largest private firms are large retailers, including Wal-Mart, Costco, Home Depot, Lowe’s Home Improvement, and Target (Table 14). Other top employers in La Quinta include the La Quinta Resort and Club and Traditions Golf Club. 5.4% 3.5% 2.8% 2.2% 2.1% 1.8% 1.7% 1.6% 1.4% 1.4% 1.0% 1.0% 0.6%
0.4%
0.3%
0.2%
0.2%
0.1%
0.0%0.0%
1.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
La Quinta Industry % of County Industry
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 14 Table 13: La Quinta Businesses by Industry Sector, 2022 Industry Sector # Firms % Firms
Retail Trade 655 48.9%
Accommodation & Food Services 160 11.9%
Manufacturing 88 6.6%
Professional & Technical Services 84 6.3%
Arts, Entertainment, & Recreation 77 5.7%
Wholesale Trade 70 5.2%
Other Services (except Public Admin) 67 5.0%
Other Industry 27 2.0%
Health Care & Social Assistance 21 1.6%
Administration & Waste Management 18 1.3%
Real Estate 17 1.3%
Educational Services 17 1.3%
Construction 15 1.1%
Agriculture & Forestry 8 0.6%
Information 8 0.6%
Transportation & Warehousing 3 0.2%
Finance and Insurance 3 0.2%
Utilities 2 0.1%
Total Firms 1,340
Source: City of La Quinta, 2022.
Table 14: La Quinta’s Top Private Employers FY 2019/20
Firm Employees
La Quinta Resort & Club/PGA West 1,412
Walmart Supercenter 300
Costco Wholesale 290
The Home Depot 212
Target 180
Lowe's 150
Traditions Golf Club 120
Source: City of La Quinta CAFR, fiscal year 2019/2020
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 15 Residential Market Demand
This section reviews La Quinta’s housing inventory, sales prices and rents, and trends in housing development compared to the CVAG Cities and Riverside County. This section also provides an estimated number of housing units that will be in demand by 2045 in the Highway 111 Project Area. The analysis relies on data from ACS, Redfin, Zillow, and the Southern California Association of Governments (SCAG) growth forecasts, and residential pipeline data from the city.
Residential Market Conditions
• Home prices in La Quinta are much higher than in the overall county. As of April 2022, the median sale price in La Quinta was $821,750, and the median sales price in Riverside County was $602,500 (Figure 4).
• Condominiums in La Quinta are also more expensive than in Riverside County, and as of 2022, the median sales of La Quinta condominiums were slightly higher than single-family homes in Riverside County.
• Over the last decade, the median sales price for single-family homes increased by 91 percent in La Quinta and 101 percent in Riverside County. Prices for condominiums increased at a similar rate during this period. From 2012 to 2022, the median sales price increased by 87 percent in La Quinta and by 106 percent in Riverside County.
• Rents are also higher and increasing at a faster pace in La Quinta than in Riverside County. The average rent in La Quinta is $3,650 compared to $2,518 for Riverside County (Figure 5). From 2014 to 2022, average rent has increased by 116 percent in La Quinta and by 72 percent across all of Riverside County.
Figure 4: Median Single-Family and Condominium Sales Prices, 2012 to 2022 Source: Redfin, April 2022.
$821,750
$602,500
$619,000
$445,750
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
YTD
Nominal Dollars
La Quinta Single-Family Riverside County Single-Family
La Quinta Condo Riverside County Condo
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 16 Figure 5: Average Rent, 2014 to 2022
Note: Data is based on the Zillow Observed Rent Index (ZORI) aggregated by zip code. See www.zillow.com for methodology details.
Source: Zillow, 2022.
Residential Development Trends and Projected Growth
This section examines La Quinta’s estimated share of housing units in the Coachella Valley Region, recent housing unit development trends in the city, and projections for future housing units. • La Quinta’s 2020 occupied-housing unit count of 16,292 units account for 10.2 percent of units in the CVAG Cities and 2.2 percent of Riverside County’s occupied-housing stock (Table 15). • Over the last decade, La Quinta added 2,634 occupied-housing units and the CVAG Cities together added 30,943 units (Table 16). La Quinta’s housing unit growth represents 8.5 percent of the total CVAG unit growth from 2010 to 2020.
• La Quinta has a relatively large number of housing units that are used as a second homes or seasonal housing. In 2020, the CVAG Cities' share of total housing that was used as secondary/seasonal housing was 16.9 percent compared to six percent for Riverside County (Table 17). La Quinta’s share of secondary/seasonal housing is even larger than the CVAG Cities at 21.2 percent.
• From 2010 to 2021, La Quinta granted 1,973 new housing unit construction permits (Table 18).
79.3 percent of permits were for single-family residences and 20.7 were for multifamily units. The share of single-family permits for multifamily units in La Quinta is similar to the share in the CVAG Cities where 83.7 percent of permits were for single-family homes and Riverside County where
81.6 percent of permits were for single-family units.
• There are currently new 20 developments containing a total of 2,080 housing units that are proposed, approved, or under construction in La Quinta (Table 19). • From 2016 through 2045, SCAG estimates that the CVAG Cities will add 96,700 more households, which would represent a 71 percent increase from the 2016 household count (Table 20). $3,650
$2,518
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2014 2015 2016 2017 2018 2019 2020 2021 2022
Nominal Dollars
La Quinta Riverside County
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 17 Table 15: Total Occupied-Housing Units, 2020
Units %CVAG
Cities
% Riverside
County
La Quinta 16,292 10.2% 2.2%
CVAG Cities 159,722 100.0% 21.7%
Riverside County 736,413 N/A 100.0%
Source: American Community Survey, 5-Year Est., 2020.
Table 16: Occupied-Housing Units Growth, 2000 to 2020
2010 2020
Growth
2010 to
2020
% CVAG
Growth
% Riverside
County
Growth
La Quinta 13,658 16,292 2,634 8.5% 3.8%
CVAG Cities 128,779 159,722 30,943 100.0% 44.5%
Riverside County 666,906 736,413 69,507 N/A 100.0%
Source: American Community Survey, 5-Year Est., 2020.
Table 17: Secondary/Seasonal Housing Units, 2020
Occupied
Units
Secondary/
Seasonal
Units
Other
Vacant
Units
Total
Units
% Secondary/
Seasonal of
Total Units
La Quinta 16,292 5,479 4,104 25,875 21.2%
CVAG Cities 159,722 36,865 21,384 217,971 16.9%
Riverside County 736,413 50,655 57,998 845,066 6.0%
Note: “Other Vacant” includes units that are vacant and not used, vacant due to transition period between tenants, vacant and for sale, and vacant but used for migrant workers.
Source: American Community Survey, 5-Year Est., 2020.
Table 18: La Quinta Building Permits for New Housing Construction, 2010 to 2021 La Quinta CVAG Cities Riverside County
Number Percent Number Percent Number Percent
Single-Family Units 1,565 79.3% 11,906 83.7% 67,947 81.6% Multifamily 408 20.7% 2,315 16.3% 15,347 18.4%
Total 1,973 100.0% 14,221 100.0% 83,294 100.0%
Source: Source: HUD SOCDS, 2022
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 18 Table 19: La Quinta Residential Pipeline Projects, 2022 Mixed-Use Residential
Units Projects Units Projects
Proposed 733 2 101 2
Approved 8 1 245 5
Under Construction 993 10
Total 741 3 1,339 17
Total Mixed-Use and Residential Units 2,080
Total Mixed-Use and Residential Projects 20
Source: City of La Quinta, 2022
Table 20: SCAG Household Projections, 2016 to 2045
Households
2016
Households
2045
Household Growth
2016 to 2045
Number Number Number Percent
CVAG Cities 135,800 232,500 96,700 71%
Riverside County 716,000 1,086,000 370,000 52%
Source: Southern California Association of Governments, 2020 Residential Market Demand
Market Demand Methodology
This section describes the methodology used to estimate the demand for additional housing units in the Highway 111 Plan Area by the year 2045. The analysis is based on the latest household projections by SCAG and relies on household trends data from the American Community Survey (ACS) described previously in this report.
The first step for calculating residential demand for the Plan Area was to create a citywide residential demand estimate. To calculate the future residential demand for the entire city, SCAG projections for future households were aggregated by city to create a total estimate for the CVAG Cities Region. To create an estimate for new housing units, one household was assumed to equal one residential unit.
Next, SCAG projections were adjusted from their original projection timeline of 2016 to 2045. A new timeline for 2022 to 2045 was created by taking an annual average and multiplying the result by the number of years between 2022 and 2045.
From the CVAG Cities estimate for future housing units, an estimate for demand for new units in La Quinta was calculated as a low and high range, which were based on two potential scenarios of future housing unit growth in La Quinta as described below.
• The low estimate assumes that through the year 2045, housing unit growth in La Quinta will be proportionate to its share of the CVAG Cities occupied-housing unit growth from 2010 to 2020.
During this period, La Quinta’s share of the CVAG Cities occupied-housing unit growth was 8.5 percent.
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 19 • The high estimate assumes that through the year 2045, housing unit growth in La Quinta will remain proportionate to its current share of the CVAG Cities occupied-housing units. In 2020, La Quinta occupied-housing units accounted for 10.2 percent of units in the CVAG Cities.
Units from La Quinta residential pipeline projects (Table 18), were assumed to reduce the estimated future demand for housing. The total number of units in projects that are proposed, approved, and under construction were subtracted from the low and high demand estimates to create a final citywide demand estimate.
From the citywide demand estimate, an estimate of the demand for different housing types was created.
An estimate of the share of citywide demand for single-family and multifamily development assumed that the city maintained its trend in residential permitting from the previous decade, in which 79.3 percent of total residential development was permitted for single-family homes and 20.7 percent was permitted for multifamily (Table 17).
A final demand estimate for the Highway 111 Plan Area was created by assuming the share of citywide units allocated to the Plan Area would be proportionate to the Plan Area’s current share of the maximum allowed residential densities across the city. The maximum allowed residential densities by parcel are established by the city’s zoning code, which includes the standards set forth by the Mixed-Use Overlay District that applies to most of the Plan Area. Approximately 14.5 percent of the city’s maximum allowed residential density is located in the Plan Area.
Market Demand Estimate
• By the year 2045, La Quinta could have a citywide demand for approximately 4,439 to 5,743 new housing units, or between 193 and 250 new housing units each year (Table 21). • Among the 2045 citywide demand, there is an estimated demand for between 3,520 to 4,554 singlefamily units and 919 to 1,189 multifamily units (Table 22). • From 2022 to 2045, the Highway 111 Plan Area could have demand for approximately 644 to 833 new housing units, or between 28 and 36 new housing units each year (Table 23). • The Highway 111 Plan Area could absorb up to 70 percent of the estimated demand for multifamily units in the city by 2045.
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 20 Table 21: La Quinta Residential Market Demand Estimate, 2022 to 2045 CVAG Cities Assumptions
2016 to 2045 Projected Net New Households 96,700
2016 to 2045 Average Annual Projection 3,334
2022 to 2045 Net New Households 76,693
La Quinta Assumptions
2010 to 2020 City Share of CVAG Household Growth 8.5%
2020 City Share of CVAG Households 10.2%
La Quinta Pipeline Project Units 2,080
La Quinta Demand Estimate 2022 - 2045
Low Estimate, Net New Housing Units 4,439
Annual Average 193
High Estimate, Net New Housing Units 5,743
Annual Average 250
Table 22: La Quinta Single-Family and Multifamily Demand Estimate, 2022 to 2045 Share Low Estimate High Estimate
Single-Family Units 79.3% 3,520 4,554
Multifamily Units 20.7% 919 1,189
Table 23: Highway 111 Plan Area Residential Market Demand Estimate, 2022 to 2045 Highway 111 Plan Area Assumptions
Share of Citywide Multifamily Demand 14.5%
Highway 111 Plan Area Demand Estimate 2022 - 2045
Low Estimate, Net New Housing Units 644
Annual Average 28
High Estimate, Net New Housing Units 833
Annual Average 36
Office Market Demand
This section reviews La Quinta’s employment in office-based industries and provides an estimate of demand for office square feet through the year 2045. The analysis relies on data from LEHD and development pipeline data from the city.
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 21 Office-based Employment
• Office jobs account for a small percentage of total jobs in La Quinta. Office-based jobs generally include jobs in professional and technical services, information, finance and insurance, real estate, and management of companies. Together jobs in these sectors represented 6.9 percent of total jobs in La Quinta (Table 24), which was comparable to the share in Riverside County where officebased jobs account for 7.1 percent of total jobs (Table 12). Office-based firms in La Quinta account for 8.4 percent of total firms in the city.
• Office-based jobs in La Quinta are typically in small professional offices such as design firms, accountants, realtors, and attorneys.
• In the Highway 111 Plan Area, there are an estimated 332, which account for 42 percent of the city’s total office jobs (Table 25).
Table 24: La Quinta Office-based Jobs and Firms, 2019
Jobs % Jobs Firms % Firms
Information 114 1.0% 8 0.6%
Finance & Insurance 148 1.3% 3 0.2%
Real Estate 217 1.9% 17 1.3%
Professional & Technical Services 321 2.8% 84 6.3%
Management of Companies 0 0.0% 0 0.0%
Total 800 6.9% 112 8.4%
Source: LEHD 2019; City of La Quinta, 2022.
Table 25: Office-based Jobs, Highway 111 Plan Area, 2019 Officebased Jobs % La Quinta
Highway 111 Plan Area 332 42%
La Quinta 800 100%
Note: The Highway 111 Plan Area is approximated using the Census Block Group 1, Census Tract 451.21 and Block Group 3, Census Tract 452.15, Riverside County, California.
Source: LEHD, 2019.
Office Development Trends and Projected Growth
• Data from the city shows that there are no office development projects that are currently planned or under construction in La Quinta.
• According to SCAG, the total projected employment for the CVAG Cities is 67,300 net new jobs from 2016 to 2025 (Table 26).
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983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 22 Table 26: SCAG Employment Projections, 2016 to 2045
Jobs
2016
Jobs
2045
Net New Jobs
2016 to 2045
Number Number Number Percent
CVAG Cities 165,200 232,500 67,300 41%
Riverside County 743,000 1,103,000 360,000 48%
Source: Southern California Association of Governments, 2020 Office Demand Estimate
Market Demand Methodology
This section describes the methodology used to estimate the demand for net new office space in the Highway 111 Project Area by the year 2045. The analysis is based on the latest employment projections by SCAG and relies on LEHD employment data described previously in this report.
The first step for calculating office space demand for the Plan Area began with creating a citywide demand estimate. To calculate the future office demand for the entire city, SCAG projections for future employment were aggregated by city to create a total estimate for the CVAG Cities Region. Next, SCAG projections were adjusted from their original projection timeline of 2016 to 2045. A new timeline for 2022 to 2045 was created by taking an annual average and multiplying the result by the number of years between 2022 and 2045.
Using the adjusted CVAG employment projections, an estimate of future new office jobs in La Quinta was created assuming that La Quinta’s share of total CVAG Cities employment (8.8 percent, Table 9) would remain constant in the future and that the share of office-based jobs in La Quinta (6.9, Table 23) would also remain constant.
From the estimate of future La Quinta office jobs, a demand estimate for office square feet was calculated as a low and high range, which were based on two potential scenarios of office growth. The low estimate assumes that each employee will require 75 square feet of office space, and the high estimate assumes that each employee will require 250 square feet of office space.
Lastly, the demand estimate for office space in the Highway 111 Plan Area was calculated assuming that the Plan Area’s share of the city’s office jobs (42 percent, Table 24) would remain constant.
Office Market Demand Estimate
• By the year 2045, the City of La Quinta could have demand citywide for approximately 24,307 to 81,025 square feet of office space (Table 28).
• From 2022 to 2045, the Highway 111 Pan Area could have a demand for approximately 10,209 to 34,030 square feet of office space (Table 29).
• Based on existing office-based employment in La Quinta, the low end of the office demand estimate may be more likely as demand for future office space will likely be limited to smaller office spaces that service small professional firms. The likelihood of needing office space for large employers appears low. However, the exception to this is the potential for La Quinta to attract large medical offices. Based on La Quinta’s older and aging population (Table 4) and the growth of the health care industry sector (Table 11), La Quinta may attract medical offices, such as Kaiser or any other medical group, with large space requirements.
33 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 23 Table 27: La Quinta Office-based Job Projections, 2022 to 2045 CVAG Cities Assumptions
2016 to 2045 Projected Net New Jobs 67,300
2016 to 2045 Average Annual Projection 2,321
2022 to 2045 Net New Jobs 53,376
La Quinta Assumptions
2019 La Quinta Total Jobs Share of Total CVAG Jobs 8.8% 2019 La Quinta Office-based jobs Share of La Quinta Total Jobs 6.9% Projected La Quinta Net New Office-based Jobs
Net New Jobs 2022 to 2045 324
Source: Southern California Association of Governments, 2020; LWC, 2022.
Table 28: La Quinta Office Demand Estimate, 2022 to 2045 Projected La Quinta Net New Office-based Jobs
Net New Jobs 2022 to 2045 324
Office Sf. Assumptions
Low Estimate Office sf. per Employee 75
High Estimate Office sf. per Employee 250
La Quinta Demand Estimate 2022 - 2045
Low Estimate, Net New Office Sf. 24,307
High Estimate, Net New Office Sf. 81,025
Table 29: Highway 111 Plan Area Office Demand Estimate, 2022 to 2045 Highway 111 Plan Area Assumptions
Share of Citywide Office Jobs 42%
Highway 111 Plan Area Demand Estimate 2022 - 2045
Low Estimate, Net New Office Sf. 10,209
High Estimate, Net New Office Sf. 34,030
Hotel Market Demand
This section reviews trends in La Quinta’s hotel room inventory and hotel development compared to Riverside County and cities within Coachella Valley. This section also provides opportunities for hotel development in the form of an estimated number of net new hotel rooms that will be in demand in La Quinta by 2045. The analysis relies on data from the Visit Greater Palm Springs Visitor Bureau, Transient Occupancy Tax Revenues (TOT), and residential pipeline data from the city. 34 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 24 Hotel Room Inventory
• La Quinta has an estimated 1,214 hotel rooms, which accounts for approximately 6.4 percent of the total number of hotel rooms for the Greater Palm Springs Region1 (Table 30). • Lodgings in La Quinta are driven by seasonal, leisure-based tourism with the high season generally beginning in November and ending in May.2 Visitors to La Quinta play golf, attend the Coachella and Stagecoach Music Festivals, engage in outdoor recreational activities, and visit shops and restaurants.
• La Quinta’s largest hotel property is the La Quinta Resort & Club, which contains 785 rooms and represents 65 percent of all hotel rooms in the city. The La Quinta Resort & Club is also the city’s oldest hotel and was built in 1926 (Table 31).
• From 2006 to 2020, La Quinta added a total of five hotels, which together added a total of 429 hotel rooms to La Quinta, an increase of 55 percent in the city’s total hotel inventory. • Three of the hotels (the Embassy Suites, the Homewood Suites, and the Residence Inn) are midtier hotels with between 100 and 150 rooms. One property, Casitas Rosas consists of 13 rental condos. And the Chateau at Lake La Quinta is a small, boutique property with 24 rooms. • La Quinta’s newest hotel, the Residence Inn, was built in 2020 and is the only hotel property within the Highway 111 Plan Area. The Home Suites property is located nearby and sits just outside the northwest corner of the Plan Area boundaries.
1 Greater Palm Springs includes the CVAG Cities expect for the City of Coachella. The Greater Palm Springs cities include La Quinta, Desert Hot Springs, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, and Indio. 2 Urban Land Institute, TAP Report, 2018. 35 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 25 Table 30: Greater Palm Springs Hotel Inventory, 2022
Hotel Rooms Share
La Quinta 1,214 6.4%
Palm Springs 6,243 32.8%
Palm Desert 4,378 23.0%
Rancho Mirage 2,016 10.6%
Indio 1,979 10.4%
Indian Wells 1,506 7.9%
Cathedral City 1,061 5.6%
Desert Hot Springs 627 3.3%
Total 19,024
Note: Greater Palm Springs includes the cities of La Quinta, Desert Hot Springs, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, and Indio.
Source: Visit Greater Palm Springs, 2022.
Table 31: La Quinta Hotel Inventory, 2022
Year
Opened Rooms
La Quinta Resort & Club, Curio Collection by Hilton 1926 785 Embassy Suites La Quinta Hotel & Spa by Hilton 2006 155 Homewood Suites La Quinta by Hilton 2007 129
Casitas Las Rosas 2009 13
The Chateau at Lake La Quinta 2011 24
Residence Inn La Quinta by Marriott 2020 108
Total 1,214
Source: Visit Greater Palm Springs, 2022.
Performance and Development Activity
• Visitation to the Coachella Valley Region has decreased since the COVID-19 Pandemic and has not yet recovered to previous levels. From 2019 to 2020, the total number of visitors to the Coachella Valley shrank from 14.1 million to 8.6 million (Figure 6). From 2020 to 2021, visitation rebounded but was still 1.3 million visitors less than in 2019. • The most recent city budget actuals show that during the 2020/2021 fiscal year, La Quinta collected approximately $12 million in transit occupancy taxes (TOT), which includes collections from hotels, bed and breakfasts, and short-term rentals such as Airbnb rented properties (Figure 7). • TOT revenues during the 2019/2020 fiscal year show a notable drop from the previous year, paralleling trends in visitation to the Coachella Valley and revealing the impacts of the COVID-19 Pandemic on lodging in La Quinta. However, in the 2020/21 fiscal year, TOT revenues in La Quinta 36 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 26 rebounded higher than revenues prior to the pandemic. During the 2018/19 fiscal year La Quinta TOT revenues totaled $10.7 million compared to $12 million in the 2020/21 fiscal year. • From the 2011/2012 fiscal year to the 2020/2021 fiscal year, La Quinta TOT revenues grew by $6.9 million, an increase of 136 percent.
• In recent years, TOT revenues collected from short-term rentals and bed and breakfasts have grown significantly while TOT revenues from hotels decreased somewhat. From the 2016/17 fiscal year to the 2020/21 fiscal year, TOT revenues from short-term rental and bed and breakfasts increased by 152 percent, and TOT revenues from hotels and resorts decreased by 12 percent (Figure 8). In the 2020/21 fiscal year, revenues for short-term rental and bed and breakfasts surpassed those for hotels and resorts.
• There are two luxury hotels under construction in La Quinta: a 134-room luxury hotel and a 200- room lifestyle hotel (Table 32). Both hotels are on the SilverRock Resort property. Additionally, a previously proposed 2.8 hotel acre site was recently sold to a developer and the land may still be positioned for hotel development.1 The hotel site was to be a part of the Centre at La Quinta, an approved development within the Highway 111 Plan Area and west of the Walmart. The hotel development was envisioned to be an extended stay hotel with a nationally recognized hotel brand.
Figure 6: Greater Palm Springs Visitors, 2015 to 2021
Source: Visit Greater Palm Springs, 2022
1 https://www.prnewswire.com/news-releases/shopoff-realty-investments-sells-2-8-acre-hotel-parcel-in-laquinta-ca-301509200.html
12.9 13.4 13.6 13.9 14.1
8.6 12.8
0.0 2.0
4.0 6.0
8.0 10.0
12.0 14.0
16.0 2015 2016 2017 2018 2019 2020 2021
Visitors (millions)
37 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 27 Figure 7: La Quinta Total Transient Occupancy Tax, FY 2011/12 to FY 2020/21 Source: City of La Quinta, 2022.
Figure 8: La Quinta Transient Occupancy Tax by Source
Source: City of La Quinta, 2022.
$5.1 $5.7 $6.3 $6.6 $7.4
$8.9 $9.8 $10.7
$7.6
$12.0
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
Nominal Dollars (Millions)
$6.4
$6.9
$7.1
$4.7
$5.7
$2.5
$2.9
$3.6
$2.9
$6.3
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21
Nominal Dollars (Millions)
Hotels and Resorts Short Term Rentals and Bed and Breakfasts 38 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 28 Table 32: La Quinta Hotel Development Pipeline
Property Name Status Details Hotel Rooms
Former Centre at La
Quinta Hotel Site Proposed
Previously proposed 2.8-acre
hotel site that was recently sold
to a developer and the land
may still be positioned for
development of a mid-tier hotel.
125
SilverRock Under Construction
Two hotels are currently being
built. A 134-room luxury hotel
and a 200-room lifestyle hotel.
334
Source: City of La Quinta, 2022.
Hotel Demand Estimate
Hotel Market Demand Methodology
This section describes the methodology used to estimate demand for future hotel rooms in the Highway 111 Plan Area by the year 2045.
The hotel demand analysis was based on hotel room inventory data provided by the Visit Greater Palm Springs Visitors Bureau and supplemented by data for hotel listings online. Historic hotel inventory trends were analyzed to determine the pace at which hotel rooms were added and for what types of hotel markets.
Based on a review of the Highway 111 Plan Area amenities, commercial uses, urban form, and the siting of previous hotel development, it was determined that the Plan Area would most likely attract mid-tier hotels in the future assuming there are no structural changes in the Plan Area.
The historic trend of development of mid-tier hotels in La Quinta and the Plan Area was used to estimate future demand in the city. The final demand estimate reflects impacts on future demand from hotel pipeline projects, which were assumed to reduce demand for hotel rooms. Data on TOT revenues were also considered as a factor for impacting future hotel inventory demand.
Hotel Market Demand Estimate
• Based on hotel room inventory trends from 2006 to 2020, La Quinta is estimated to add a 100 to 150-room mid-tier hotel every five years (Table 33).
• A 125-room mid-tier hotel was recently proposed in the Highway 111 Plan Area and is likely still planned for development (Table 32). This hotel would likely absorb demand for a mid-tier hotel in La Quinta for the immediate next five years.
• The growing popularity of short-stay vacation rental properties may reduce future demand for midtier hotel rooms and may change past trends of demand for a 100 to 150-room mid-tier hotel in the city to beyond every five years.
• By the year 2045, La Quinta may have demand for between one and three mid-tier hotels with 100 to 150 rooms. Based on the Highway 111 Plan Area’s current share of mid-tier hotels located in the city, the Plan Area may absorb up to one mid-tier hotel through the year 2045. 39 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 29 Table 33: La Quinta Mid-Tier Hotel Trends
Assumption/Estimate
Mid-Tier Hotel Room Growth, 2006 to 2020 392
Average Annual Room Growth 28
Average 5-year Room Growth 140
Retail Demand Estimate
This section reviews La Quinta's retail sales and trends in retail development. This section also provides an estimate of demand for retail square feet by 2045 in the Highway 111 Project Area. The analysis relies on data from the California Department of Tax and Fee Administration, HdL, Esri, and residential pipeline data from the city.
Retail Market Conditions
National Retail Trends
• La Quinta’s local retail market is influenced by larger-scale national trends. Over the last decade, retail markets have been shifting and reorganizing in large part due to the growth of e-commerce.
However, while increased online sales have reduced the demand for in-store sales, there has been an increased demand for experiential retail such as restaurants, bars, and gyms. • Over the last two years, the COVID-19 pandemic disrupted brick and mortar retail stores of all types and accelerated the shifting demand for online sales of physical goods. While the details of the long-term recovery from COVID-19 for the retail market are uncertain, the market will likely rebound while perhaps also changing to accommodate new trends enabled by new technologies and consumer expectations regarding convenience such as contactless shopping. 1 Retail Sales Trends
• Taxable sales per household are higher in La Quinta than in the CVAG Cities. In 2018, La Quinta's taxable sales per household were estimated at $53,405 compared to $45,758 in the CVAG Cities (Figure 9). From 2015 to 2018, taxable sales per household remained higher in La Quinta than in the CVAG Cities. Taxable sales also grew at a faster rate of 10 percent compared to 3 percent for the CVAG Cities.
• High taxable sales per household may demonstrate spending from regional shoppers and tourists in La Quinta. The city contains big box retail stores that attract shoppers from outside the city and within the local region. These stores include Costco, Target, Walmart, Lowe’s, and Home Depot, which are located within the Plan Area.
• Since 2003, La Quinta's sales tax revenues for general consumer goods increased significantly (Figure 10). Revenues from restaurants and hotels also increased steadily over the last two decades. There is a noticeable drop in revenues for most revenue categories in 2020, which aligns with trends due to the COVID pandemic. However, revenues appear to recover or exceed 2019 levels in 2021.
1https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-covid-recession-2020.pdf 40 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 30 Figure 9: Taxable Sales per Household, 2015 to 2018
Note: Data is displayed through the year 2018 due to 2019 data reporting changes by the California Department of Tax and Fee Administration (CDTFA).
Source: American Community Survey 5-year Est. 2015, 2016, 2017, 2018; California Department of Tax and Fee Administration,2022.
Figure 10: Sales Tax Revenues by Spending Category, 2003 to 2021 Source: HdL, 2022.
$53,405
$45,758
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2015 2016 2017 2018
Nominal Dollars
La Quinta CVAG Cities
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Sales Tax Revenues
Autos And Transportation Building And Construction
Business And Industry Food And Drugs
Fuel And Service Stations General Consumer Goods
Restaurants And Hotels
41 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 31 Retail Demand per Household and Worker Estimate
• Taxable spending per La Quinta household is estimated at approximately $27,363 per year (Table 34).
• Due to the city’s high level of taxable sales per household as described previously (Figure 9), and the presence of large retail stores in the city, it is likely that a large share of La Quinta household spending is spent within the city boundaries. The total estimated spending per La Quinta household within the city is estimated at $13,810.86 per year.
• Workers employed in La Quinta but living elsewhere likely make purchases within the city during their workday or before or after they commute. Annual retail spending per worker is estimated to be 3,598 (Table 35).
• Retail sales per square foot of space are typically around $325. Assuming average retail sales per square foot is $325, then the amount of square of retail generated per La Quinta household is approximately 42.49 and the amount of space per worker is 11.07 square feet (Table 36).
Table 34: La Quinta Retail Spending per Household Estimate, 2022 Household-Serving Retail Category Spending per
Household
Capture
Rate
Local Spending
per Household
Groceries $8,470.96 65% $5,506.12
Restaurants $5,892.92 60% $3,535.75
Alcoholic Beverages $1,001.78 60% $601.07
Smoking Products $509.24 60% $305.54
Drug stores $2,829.50 60% $1,697.70
Pets $1,058.93 25% $264.73
Home Furnishings and Equipment $3,106.54 25% $776.64
Apparel and Services $3,256.71 25% $814.18
Computer, TV/Audio $416.93 25% $104.23
Education and Other Entertainment $819.59 25% $204.90
Total $27,363.10 $13,810.86
Source: Retail Goods and Services Expenditures, ESRI, 2022 42 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 32 Table 35: Retail Spending per Worker Estimate
Retail Category
Weekly
Spending per
Worker (2012 $)
Weekly
Spending per
Worker (2022 $)1
Annual Worker per
Spending (2022 $)2
Food & Beverage Stores $21.58 $26.76 $1,337.96
Eating & Drinking Places $28.86 $35.79 $1,789.32
Drug Stores $7.60 $9.42 $471.20
Total $58.04 $71.97 $3,598.48
Source: ICSC Research, 2012; Bureau of Labor Statistics, 2022.
Note:
1 An inflation factor of 1.24 was applied to the 2012 figures. 2 Assumes there are 50 work weeks in a year.
Table 36: Retail sf. per Household and Worker Estimate
Assumptions/Estimate
Local Spending per Household $13,810.86
Local Spending per Worker $3,598.48
Average Retail Sales per Sf. $325.00
Demand Estimate
Retail Sf. per Household 42.49
Retail Sf. per Worker 11.07
Retail Demand per Visitor Estimate
• As described in the previous Hotel Market Demand Section, Figure 6 shows that between 2015 and 2019 total visitors to the Greater Palm Springs Region increased from 12.9 million to 14.1 million. The average annual growth during this period before the COVID-19 pandemic was 300,000 net new visitors (Table 37). Assuming La Quinta reestablishes its average annual growth in new visitors prior to COVID-19, and La Quinta captures the same share of Greater Palm Springs visitors as the city’s share of hotel rooms, then La Quinta could see an additional 441,600 annual visitors by the year 2045.
• Visitor retail spending across the Greater Palm Springs Region totaled $2.58 billion in 2021 and averaged $201.56 per visitor. Assuming that retail sales average $325 per square foot of retail space, then each new visitor to La Quinta would generate demand for 0.62 square feet of retail (Table 38).
43 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 33 Table 37: Estimated Net New Visitors to La Quinta 2022 to 2045 Assumption/Estimate
2015 Greater Palm Springs Visitors 12,900,000
2019 Greater Palm Springs Visitors 14,100,000
Annual Average Growth 300,000
Projected Greater Palm Springs Visitors 2022-2045 6,900,000 La Quinta Share of Hotels 6.4%
La Quinta Visitors 441,600
Table 38: Retail per sf. Visitor Estimate
Assumption/Estimate
Visitor Spending 2021 ($ billions)
Food & Beverage $1.46
Retail $1.12
Total $2.58
Greater Palm Springs Visitors 2021 12,800,000
Annual Retail Spending per Visitor $201.56
Average retail sales per Sf. $325.00
Demand Est. Sf. of Retail per Visitor 0.62
Source: Visit Greater Palm Springs, 2022, LWC
Retail Development Trends
• There are currently three retail developments in the La Quinta development pipeline that together total 137,672 square feet (Table 39).
• The Panera Drive-Through is the only project of the three retail developments that is located in the Highway 111 Plan Area. The Pavilion Palms Shopping Center is proposed at the location 1.5 miles south of the Plan Area.
44 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 34 Table 39: La Quinta Retail Pipeline Development
Property Name Status Details Sf. of Retail
Pavilion Palms
Shopping Center Approved
125,000 square-foot
shopping center including 12
pads for various commercial,
retail, and restaurant uses,
including drive-throughs
125,000
Caleo Bay Park
Commercial Center Approved 8,337
Panera Drive Thru Under construction 4,335 square foot drivethrough Panera restaurant 4,335 Total Sf. of Retail 137,672
Source: City of La Quinta, 2022.
Retail Market Demand Estimate
This section describes the methodology used to estimate demand for future retail space in the Highway 111 Plan Area by the year 2045. The analysis is based on data from Esri, ICSC Research, and Visit Greater Palm Springs.
The first step in the analysis began by creating a citywide retail demand estimate, which was calculated as a low and high range. The upper and lower limit of the estimate is based on the ranges of projected future housing units presented earlier in the report. The demand estimate is also based on previously described projections for future La Quinta workers and visitors.
• The citywide low estimate assumes that by the year 2045, La Quinta could have demand for 4,544 net new housing units, 324 net new office workers, and 441,600 annual visitors. • The citywide high estimate assumes that by the year 2045, La Quinta could have demand for 5,848 net new housing units, 324 net new office workers, and 441,600 annual visitors.
A citywide estimate was created by multiplying the projected number of net new housing units, workers, and visitors by the respective demand per square foot assumptions (Table 36, Table 38). Retail pipeline projects were assumed to reduce demand for future retail square footage, and any square footage of retail projects that are proposed, approved, or under construction were subtracted from the low and high citywide estimates.
From the citywide estimate range, a low and high estimate for the Highway 111 Plan Area was created by assuming that the Plan Area would capture a share of citywide demand based on the Plan Area’s current share of citywide retail and service industry employment.
Retail Demand Estimate
• By the year 2045, La Quinta could have demand for between 332,886 and 388,290 square feet of retail (Table 40).
• By the year 2045, the Highway 111 Plan Area, could have demand for between 163,114 and 190,262 square feet of retail (Table 41). This demand could be absorbed by an additional large big box store or supercenter.
45 Click Here to Return to Agenda
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 35 Table 40: La Quinta Retail Demand Estimate, 2022 to 2045 Demand per Sf. Assumptions
per Household/Housing Unit 42.5
per Worker 11.1
per Visitor 0.54
Net New Shoppers Estimates, 2022 - 2045
Households
Low Estimate 4,544
High Estimate 5,848
Office Workers 324
Visitors 441,600
Pipeline Development
Retail Sf. proposed, approved, or under construction 137,672 La Quinta Demand Estimate 2022 - 2045
Low Estimate, Net New Retail Sf. 332,886
Annual Average 11,889
High Estimate, Net New Retail Sf. 388,290
Annual Average 13,867
Table 41: Highway 111 Plan Area Retail Demand Estimate, 2022-2045 Highway 111 Plan Area Assumptions
Share of Citywide Retail and Service Jobs 49%
Highway 111 Plan Area Demand Estimate 2022 - 2045
Low Estimate, Net New Retail Sf. 163,114
High Estimate, Net New Retail Sf. 190,262
46 Click Here to Return to Agenda