REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Damaris Abraham, Community Development Director Date:October 8, 2024
Subject:Lake Elsinore Carwash Market Analysis and Findings Recommendation
Receive and File the Lake Elsinore Carwash Market Analysis Report and Adopt the Report’s Findings that the City of Lake Elsinore is oversaturated with carwash businesses.
Background
At the May 14, 2024 City Council meeting, Council Member Magee requested that staff prepare a carwash saturation study detailing the number and the location of existing operating carwashes, approved carwashes that are yet to be constructed (including their status), and any proposed applications or pre-applications that are in process. The purpose of the requested study is to give City staff and the City Council a tool when reviewing entitlement applications for carwashes. The City staff contracted with The Natelson Dale Group, Inc. (TNDG) to better understand the current market and short and long-term demands.
Discussion
Findings from the analysis provides a citywide framework for anticipating the need for new carwash businesses over the next 11 years (through 2035). The analysis considers the existing inventory of carwashes in Lake Elsinore and the larger South Riverside County (SRC) market area for comparison, and also quantified carwash projects currently planned/approved, or under construction in the market area. Tables 1 and 2 below depict existing and known carwashes within Lake Elsinore and the SRC region.
Lake Elsinore Carwash Market Analysis and Findings
Table 1: Carwashes within Lake Elsinore and surrounding region Table 2: Existing and known planned carwashes by type within Lake Elsinore and SRC region
Lake Elsinore Carwash Market Analysis and Findings
As of 2024, the City has 9 existing and 9 potential (under construction, entitled, or application in process) carwash businesses. Based on the population and future population demand analysis, the Report finds a total demand for 12 carwashes in 2030 and 13 carwashes in 2035. Based on the demand analysis and assuming the potential businesses are built, the Report finds that the City is oversaturated by 6 carwashes through 2030 and by 5 carwashes through 2035.
Table 3: Estimates of current and future carwash demand In addition to the carwash supply/demand analysis, the analysis also evaluated potential demand for new convenience markets/gas stations through 2035, finding these uses are also oversupplied in the City.
Fiscal Impact
No direct additional fiscal impact.
Attachments
Attachment 1 – TNDG Carwash Market Analysis dated 09.13.2024 Attachment 2 – Lake Elsinore and Surrounding Cities Car Wash Analysis Attachment 3 – Listing of Carwash Facilities by Application Status - August 30, 2024 Community Development