california’s coachella valley

2014•15

Palm Springs Like no place else

Invest, Grow, Succeed!

COACHELLA VALLEY ECONOMIC PARTNERSHIP GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY Palm Springs Like no place else, the city is in demand PALM and ultra-cool! SPRINGS 10

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COACHELLA

PALMSPRINGSSTATS MAYORSteve Pougnet MAYORPROTEM Rick Hutcheson COUNCILMEMBERS Ginny Foat, Paul Lewin, Chris S. Mills YEARINCORPORATED 1938 POPULATION 46,135 AVERAGEHOUSEHOLDINCOME $45,404 WEBSITE www.palmspringsca.gov JAY CALDERON/DESERT SUN CALDERON/DESERT JAY

Above left: Leonardo DiCaprio at the Palm Springs International Film Festival. Above right: Mayor Steve Pougnet greets President Obama at Palm Springs International Airport. Opposite: Fitz and the Tantrums play the 2nd annual Tachevah Block Party.

t’s official: Palm Springs is a magnificent rooftop pool, bar, and the Tantrums. Next year’s event is expected ultra-cool and in demand! signature restaurant along with meeting to be even bigger, according to Aftab Yes, indeed. It has been another space — all wrapped in the City’s iconic Dada, Chairman of P.S. Resorts, who along spectacular year for Southern modern architecture and surrounded by with the City, the Agua Caliente Band of California’s most legendary resort gorgeous mountain vistas. In addition, Cahuilla Indians, community leader Harold playground.I Once a haven to Hollywood the City is working with Wessman Matzner, and The Desert Sun, are the lead megastars like Bob Hope, Frank Sinatra, Development to secure quality retail sponsors of the event. Liberace, Elvis Presley, and Lucille Ball, tenants for the dramatic new outdoor In addition, a host of other exciting Palm Springs has experienced a historic boutique shopping and dining complex. improvement projects are currently transformation over the past several years “After years of hard work by our City underway in Palm Springs thanks to — and is now the hippest, most happening Council, staff, and the developer, real the passage of Measure J. From street resort destination in California and beyond. progress is moving forward on this paving to park and library improvements In fact, there’s no doubt that thanks project, which is so important to the — to a new and much-anticipated free to the City’s transformative Downtown economic success of Palm Springs and trolley, which will transport residents and Revitalization Plan, a host of innovative the entire Coachella Valley,” says Mayor visitors all around town, a plethora of economic development projects, incentive Steve Pougnet. transformational, quality-of-life projects programs, multimillion-dollar hotel Something else everyone is buzzing are breaking ground. renovations, and uniquely original special about is a new events venue across from Another exciting development in Palm events and tourist attractions, the City has the Palm Springs Art Museum. This is Springs is the incredible success of the renewed itself into an ultra-cool destination. expected to be the home of “Tachevah,” summer pool party and music weekend The most exciting project, the a hugely successful music block party Splash House, produced by Goldenvoice redevelopment of the former Desert created by Goldenvoice, the producer of the and LED, which is now in its second year Fashion Plaza, began in earnest last year, world-famous Coachella Valley Music and at three amazing venues: the Hard Rock is now moving full-speed ahead, with Arts Festival. This past April, more than Hotel in downtown Palm Springs, The plans for the opening of a sleek 155- 10,000 music lovers attended the second Saguaro Palm Springs, and the ultra-hip room Kimpton Hotel to break ground annual event in downtown Palm Springs, new Hacienda Cantina and Beach Club in this month. The new hotel will feature featuring world-famous rockers Fitz and South Palm Springs. DRE NAYLOR DRE NAYLOR

Above left: Splash House, a Palm Springs pool party and music weekend. Above right: Mayor Steve Pougnet on location with the Real Housewives of Beverly Hills.

“Splash House is a true summer success wonderful architecture, and phenomenal some of the world’s most acclaimed cinema,” story,” says Mary Jo Ginther, director of the music and film festivals,” says Ginther, according to Ginther, who notes that the Palm Springs Bureau of Tourism. “It went who notes President Barack Obama’s visits festival, beloved by fans and industry from one event last summer to two this to the desert for diplomacy and golf are insiders alike, provides a huge boost to the summer — and it just keeps getting bigger. becoming more and more frequent. local economy and is the biggest and most This summer, more than 3,000 people Not surprisingly, film and television glamorous event of the season. enjoyed the City’s ultra-cool vibe along producers from around the world flock to Another major economic boon to the with some truly talented, up-and-coming Palm Springs to shoot their productions City’s economy is Palm Springs Modernism DJs. Palm Springs is no longer a sleepy — and with that in mind, the City Council Week, a sophisticated 10-day homage to the town in August.” approved a popular “Film Friendly” ideals of midcentury modern architecture. In fact, visit downtown Palm Springs Incentive Program which provides a grant The event, held every February, and you’ll see that it is bustling all year of up to $5,000 for lodging, rentals, food celebrates a renewed appreciation for long with residents and international and beverage, and location assistance. the City’s famed modernist roots as well visitors from all walks of life enjoying Additionally, the Palm Springs Bureau as vintage furniture, jewelry, clothing, eclectic shops, galleries, and unique dining of Tourism developed a new “virtual film and memorabilia. Modernism Week and destinations. Palm Springs continues office” located at PSFilmFriendly.com, organizers have also added a new “Fall to be prominently featured in popular which assists locations managers and Kick-off” in October, featuring a series sitcoms, reality television and travel shows, filmmakers in finding the perfect spot for of double-decker bus and walking tours, fashionable magazines, and Hollywood their production while providing them films, lectures, exhibitions, cool parties, films. Most recently, the tremendous with important introductions to local and much more. success of Palm Springs tourism was tourism partners. Palm Springs is celebrating new and spotlighted in a much-gabbed-about Consistently voted the Coachella Valley’s emerging shops, restaurants, and boutiques feature in The New York Times style section most popular special event, the Palm — many in the City’s flourishing Uptown — and the Real Housewives of Beverly Hills Springs International Film festival — Design District that focus on modern filmed one of their episodes in the City. founded 26 years ago by then–Mayor Sonny décor and interior design. In addition, In addition, Beverly Hills housewife and Bono — draws in thousands of visitors Downtown and Uptown along with South former Queen of the Palm Springs White every January. It features a star-studded Palm Springs continue to see new and Party, Lisa Vanderpump, received a star Awards Gala and has honored some of the expanded eateries, including the Purple on the world-famous Walk of Stars — and best actors, writers, and directors in the Room, Appetito, Hacienda Cantina and let’s not forget Academy Award–nominated world — including George Clooney, Brad Beach Club, L’Atelier Cafe, Gyoro Gyoro actor Leonardo DiCaprio recently Pitt, Clint Eastwood, Bradley Cooper, Ben Japonaise Izakaya, Ernest Coffee, Workshop purchased Dinah Shore’s famed midcentury Affleck, Quentin Tarantino, Helen Mirren, Kitchen + Bar and a new Thai Smile on modern masterpiece in Old Las Palmas. Anne Hathaway, Meryl Streep, Sandra the corner of Tahquitz Canyon and Indian “Palm Springs is in huge demand — and Bullock, Julia Roberts, and many more. Canyon Drive. The new Bootlegger Tiki, stars like Leonardo DiCaprio love our year- “Every year, the film festival and Awards in the former Don the Beachcomber round sunshine, relaxed desert lifestyle, Gala gets bigger and better while showcasing location, and the popular restaurant Above: A rendering of the new Kimpton Hotel as part of the downtown revitalization project.

Dish, moving to Palm Springs from from Palm Springs City Hall, serves as an Springs and the entire Coachella Valley Cathedral City are new additions to Uptown. incubator for green companies to create and, coupled with nearly $100 million in In fact, Palm Springs tourism and new jobs in the region. Now in its fourth improvements over the past several years hospitality are thriving, according to year, the iHub nurtures startup companies along with a new $25 million airport Pougnet, who notes that continued in the fields of wind and solar as well as traffic control tower, new excitement to tourism gains over the past several years high-tech and biotech and continues to Palm Springs International Airport. are the result of more than $200 million be an “economic game-changer” for Palm And finally, let’s not forget the reinvestment in the City’s hotel stock, Springs and the entire Coachella Valley, important impact of the Agua Caliente along with the implementation of the City Pougnet says. Band of Cahuilla Indians, whose Council’s popular Hotel Incentive Program. In fact, the success of the iHub has led community and economic development Perhaps most exciting, the hip, new 163- to a new 41,000-square-foot Accelerator projects continue to boost the City’s room Hard Rock Hotel opened last October Campus at the Palm Springs International economy and play a major force in the in downtown Palm Springs and recently Airport, which currently houses iHub cultural and economic enrichment of their announced that celebrity chef Kerry Simon graduates who are ready to conduct ancestral home. The tribe is steward to will take over the restaurant, a coup for prototype development, manufacturing, 31,500 acres of land, including the popular Palm Springs foodies. and commercialization of products or Indian Canyons, and is one of the City’s Other Palm Springs properties that have services with the goal of creating more local most important partners. recently refreshed their looks include the jobs. The Accelerator recently received a “Rooted in rich history, the City and Hilton Palm Springs, which underwent an $785,000 grant from the U.S. Department Tribal Council are dedicated to working $8 million transformation, and the former of Economic Development for continued together to improve the quality of life for El Rancho Lodge in South Palm Springs expansion and improvements. our residents and visitors through a host is now the beautifully rustic Sparrows And when it comes to stimulating our of community partnerships,” says Pougnet. Lodge. In addition, the former Spanish Inn economy and supporting as many as 1,000 “From the construction of the Richard M. recently opened as the Triada Resort & Spa, local jobs during peak tourism season, Milanovich Bridge on Belardo Road to a a Marriott Autograph property located in the tremendous success of the City’s new median along Tahquitz Canyon Way, Uptown Palm Springs. Airline Marketing Incentive Program the City’s important relationship with the “These new and/or upgraded properties at Palm Springs International Airport Agua Caliente cannot be overstated, and we allow the Palm Springs brand to renew has proven to be another extraordinary thank them for their continued support of itself and reach every generation of visitor,” economic driver for the Coachella Valley. the City of Palm Springs.” Ginther says. The City Council committed $1 million The City is definitely on a roll when it Palm Springs is also a leader when it to the program, and popular Canadian comes to what’s hip, happening, and ultra- comes to local job creation: The City was airline WestJet was the first to take cool, according to Pougnet, “Palm Springs designated by the state of California as advantage, followed by United, Alaska, truly is like no place else!” one of six original “innovation hubs.” The Frontier, Allegiant, and most recently, — Amy Blaisdell “iHub,” operated by the Coachella Valley Virgin America and Air Canada Rouge. Economic Partnership and located across This brings expanded service to Palm

V90 COACHELLA VALLEY VISION | 2014-2015 In 2013, the Splash House summer pool parties at three Palm Springs venues drew 1,500 attendees. GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU SPRINGS & VISITORS CONVENTION PALM GREATER Tourism Reboot World-class events such as the Coachella music festival and the Palm Springs International Film Festival are sparking renewed economic growth in the valley.

By Sheila Grattan

he Coachella Valley Palm Springs Mayor Steve Pougnet. “They The Coachella Effect has its groove back. love the younger vibe and tell me to keep it There would be no renaissance without Defying the myth going. It goes to show that older locals and Goldenvoice CEO Paul Tollett, founder of visitors enjoy a good time, too. They just go Coachella (see page 7), says Palm Springs they had become home earlier.” tourism and civic guru Aftab Dada. extinct east of Los The return of Greater Palm Springs “Because of Coachella fest and Stagecoach, Angeles, 20- and 30-somethings is fueled largely by a slate of events such youthful music fans from around the T as the Coachella Valley Music and Arts world stay here and find they love Palm have returned in full financial force to lead a visitor boom. Festival and the prestigious Palm Springs Springs and come back,” says Dada, general International Film Festival. Major media manager of the Palm Springs Hilton and This growing market has sparked outlets, including The New York Times and chairman of P.S. Resorts. an increase in tourism offerings that Esquire, have recently touted the resort In 2013, more than 180,000 fans encompass world-class experiences for area’s cachet. attended Coachella over its two consecutive film buffs, sports fans, music lovers, New Hollywood is paying attention, April weekends at the polo grounds in history enthusiasts, outdoorsy types, too. Leonardo DiCaprio purchased Indio; Goldenvoice’s Stagecoach Country and couples in love. It also translates Dinah Shore’s Donald Wexler–designed Music Festival drew 45,000 attendees. into significant local economic benefits: estate in 2014, and recent television and The combined events pump more than Overall visitor spending in 2013 totaled film shoots in the valley include The $254 million into the local economy $4.5 billion — a 12.5 percent increase Real Housewives of Beverly Hills, Italy’s annually, according to the Greater Palm from 2011. Donnavventura, Bravo’s Newlyweds, Springs Convention & Visitors Bureau. The Millennial infusion is also acting as and A Christmas in Palm Springs. The Local hotels are among the an elixir for Baby Boomers and middle- area has also seen an uptick in high- beneficiaries — overall room demand aged Gen Xers. “People in their 70s come profile photo shoots for companies such grew 6.9 percent from 2011 to 2013 — up to me all the time when I’m checking as Victoria’s Secret, Nordstrom, and with many festivalgoers staying at Palm out restaurants and nightspots,” says Crate & Barrel. Springs hotels that have been updated to Because of Coachella fest and Stagecoach, youthful music fans from around the world stay here and find they love Palm Springs and come back. GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU SPRINGS & VISITORS CONVENTION PALM GREATER

appeal to Millennials. These include the “Paul and Goldenvoice have done the parent company for the Parker and Saguaro, Curve, Hard Rock Hotel, Viceroy wonders for Palm Springs,” Dada says. Le Méridien hotels. Palm Springs, Riviera Palm Springs, and “He is the most down-to-earth and easiest “Parker Meridien wanted to increase Ace Hotel & Swim Club. The venues attract person you could hope to work with.” its hotel portfolio, and we decided to younger travelers by being dog-friendly The Hyatt Palm Springs, a stalwart on take an old and staid market and shake it and offering such amenities as pool parties, Palm Canyon Drive, is also shifting its up,” Pipes says. To that end, Pipes hired games, car battery charging stations, spa marketing to cater to the under-40 market Jonathan Adler, a darling of midcentury services, offbeat décor, courtesy bicycles, with pet-friendly policies, gourmet pizza, modern décor and global pop art, to create yoga, craft cocktails, tapas, and healthy exotic drinks, and signature Palm Springs– the hotel’s fun yet sophisticated décor. morning-after smoothies. centric mural and photo art, says Hyatt Pipes’ marketing concept was prescient: Other draws include Tachevah, a hotel executive Celeste Brackley. The Parker has always been newsworthy, Palm Springs block party produced by Marking its 10th year, the Parker Palm from its décor to its celeb guests Goldenvoice in conjunction with Coachella Springs, formerly the 13-acre Merv Griffin attending the hotel’s annual Palm Springs fest. In 2013, the Splash House summer Resort Hotel & Givenchy Spa, was the International Film Festival afterparties. pool parties at three Palm Springs area’s first hotel to recognize a niche for locations drew 1,500 attendees and sophisticated young professionals seeking Youthful Buying Power contributed $800,000 to the economy a classy, unstuffy place to relax, says Steven The Hilton’s Dada has been involved in the event’s first year. Pipes, president of Jack Parker Corp., with downtown improvement measures Below left: More than 180,000 concertgoers attended the 2013 Coachella Valley Music and Arts Festival over its two consecutive weekends in Indio. Below right: Rafael Nadal competes at the BNP Paribas Open at Indian Wells Tennis Garden, which unveiled its second stadium in March 2014. Fast Facts

Attendance numbers for Greater Palm Springs festivals and attractions in 2013

BNP Paribas Open 382,227

Coachella Valley Music and Arts Festival 180,000

Dinah Shore Weekend 16,000

Fashion Week El Paseo 13,000

Humana Challenge and Kraft Nabisco Championship 132,000

Joshua Tree National Park 1.4 million

The Living Desert Zoo & Botanical Garden 350,000

Modernism Week 40,000

Palm Springs Aerial Tramway 500,000

Palm Springs International Film

GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU SPRINGS & VISITORS CONVENTION PALM GREATER MACEDA GERRY Festival 135,000

Splash House 1,500

for decades and says the passage of Palm the budgeting woes in 2008-2009 when Stagecoach Country Music Festival Springs’ Measure J two years ago reflects people stopped traveling because of 45,000 the tremendous buying power of the the economy,” he says. “We had budget White Party 30,000 expanded current visitor mix. shortfalls of $12 to $15 million. We had “The 1 percent sales tax increase was to reduce staff to balance the budget. Tourism and the Workforce projected to raise $8 million annually,” The [city’s hotel improvement] incentive he says. “The second year, it exceeded program pumped $200 million into Number of direct and indirect expectations and raised $12.5 million, with the local economy and revamped 3,000 tourism jobs in Greater Palm Springs: 80 percent of that funded by tourism. This hotel rooms.” 46,863 represents an astounding $1.25 billion in annual sales.” Reaching a Younger Market Taxes (indirect and direct) generated Palm Springs’ Pougnet is equally Hip local hotels market mostly via by tourism: $859 million bullish on the city and advises possible the Internet and social networks, and local startups to “ do their homework and customers can offer instant feedback on Source: Greater Palm Springs Convention & consider public-private partnerships.” He Twitter, Facebook, or Yelp, says Mary Jo Visitors Bureau 2013 Economic Impact Report notes that the hotel revival is an example of Ginther, director of the Palm Springs a successful public-private relationship. Bureau of Tourism. “Advertising has been “The City Council was challenged by turned on its head since the younger

V22 COACHELLA VALLEY VISION | 2014-2015 GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU SPRINGS & VISITORS CONVENTION PALM GREATER

market identifies digitally,” she explains. According to Scott White, president of posh affairs at the venerable La Quinta “We have six ways to target the market, the Greater Palm Springs Convention & Resort & Club; the reopened Ritz-Carlton, including phone numbers, desktop IP Visitors Bureau, ecotourism is also growing. Rancho Mirage; and Parker Palm Springs. addresses, computer-use tracking, and Two Bunch Palms in Desert Hot Springs The city of Palm Springs is on board, too: going through networks.” She says that is on its way to becoming the nation’s Its city clerk remains open on Fridays websites are crucial and notes that hits first carbon neutral spa, for example. to process last-minute licenses after on the bureau website have exceeded (See page 26.) Other local eco-friendly other city offices close. Girls-only, bride 2 million since the website domain attractions include the Living Desert Zoo, and bridesmaid getaways, and soothing name, visitpalmsprings.com, became a Cabot’s Pueblo Museum, abundant hiking “babymoon” escapes for expecting call-to-action mini ad. trails, Jeep tours, Palm Springs Aerial moms and dads are also popular new And it’s working. “I noticed a change Tramway, Indian Canyons, Salton Sea, visitor trends. with Modernism Week,” Ginther says. agricultural tours, and the Coachella Valley “Visitors were a good 10 years younger and Thousand Palms preserves. A Global Destination than previous modernism groups. There More visitors, straight and gay, are The international traveler is also a were highly traveled visitors, including coming here to put a ring on it. Since strong market in the desert, contributing active singles and older Baby Boomers who droves of friends and families also attend $870 million in 2013 — more than now had a reason to visit here other than to destination weddings, bells are ringing 19 percent of total tourism spending see friends and family.” for popular hotel venues. Weddings are — and those numbers are projected to GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU SPRINGS & VISITORS CONVENTION PALM GREATER GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU SPRINGS & VISITORS CONVENTION PALM GREATER

keep rising. “Year-to-date passenger presidents of China and the United States Above: The weekly VillageFest in downtown Palm activity is up more than 9 percent, with at Sunnylands in Rancho Mirage, according Springs has been going strong for 20 years. Several blocks of Palm Canyon Drive close every Thursday Palm Springs International Airport one to White and Ginther. evening to host live musical acts and booths selling of the few airports of this size that is Visitors from China, Korea, and Japan food, art, crafts, and more. Opposite: The Palm consistently increasing year over year,” come to the desert with independent tour Springs Aerial Tramway is one of the Coachella Valley’s most popular ecotourism attractions. White says. groups to ride the Palm Springs Aerial German and British visitors love the heat Tramway, play golf, or shop at the Desert and contribute to the growing summer Hills Premium Outlet mall in Cabazon, business, with Canadians leading among Ginther says. international travelers — Air Canada “The overall tourism growth potential added another nonstop flight from for the Chinese market is stratospheric,” Vancouver this year. says Maryanne Coury, media director at Both the CVB and Palm Springs The Jones Agency in Palm Springs. By Bureau of Tourism have maintained 2018, according to U.S. Department of representatives in Europe for years and are Commerce statistics supplied by Coury, looking closely at formalizing business ties outbound visitors from China will reach in Asia. The Chinese market has surged more than 4.8 million, Japan 4.2 million, since the June 2013 meeting between the and Korea 1.8 million.

V24 COACHELLA VALLEY VISION | 2014-2015 Investing in

From proof of concept to going to market, the Coachella Valley iHub helps entrepreneurs parlay great ideas into successful enterprises.

By Ken Alan

Photography by Andy Stolarek Below: Kyle Wagner, assistant director of the iHub and the Coachella Valley Small Business Development Center, left, and Joe Wallace, the iHub’s managing director and CVEP’s chief innovation officer, stand in the recently opened Health and Medical Innovation Center of CVEP’s Palm Springs Accelerator Campus. Opposite: The exterior of the Investing in 43,000-square-foot Palm Springs Accelerator Campus.

ot so long ago, few people had even heard of an iHub. “We’re not physically located there innovation hub. “We didn’t have a clue, really, all the time, but when we do come to the Palm Springs area, or California in general, what it meant,” says Palm Springs Mayor Steve we stop in and I have meetings and consult Pougnet. “There was no money and there was no with people,” Tolen says. federal program.” The company manufactures an energy management component called a NIn 2011, the Coachella Valley iHub Accelerator Campus in Palm Springs, micro-grid that helps businesses optimize launched as a business incubator with the as well as workforce and small business the efficiency of their electrical use. goals of diversifying the region’s economy development offices in Palm Desert and Tolen hopes to relocate Indianapolis, and creating demand for higher-skilled, Indio, respectively. Indiana–based Indy Power Systems to higher-wage professionals. Today, One iHub entrepreneur, Indy Power California in the near future. “It didn’t 22 fledgling enterprises operate in the Systems CEO Steve Tolen, could have take much to recruit us to come out there,” program, and several have advanced from taken his startup to Northern California’s he says. “California has a lot of renewable the iHub to the nearby Palm Springs Silicon Valley but instead chose the energy projects. It’s going to be a good start Accelerator Campus, which accommodates Coachella Valley. “The Coachella Valley for us.” research and development as well as light iHub will give you a helping hand and EV Enterprises, which manufactures manufacturing. “We invested money when advice that you can trust,” he says. “Silicon electric vehicle microelectronics, operates times were tough, and now we’re starting Valley is more into cherry-picking at the iHub’s Palm Springs Accelerator to see the fruits of our labor,” Pougnet says. companies and concepts that are hot.” Campus, a 43,000-square-foot facility in The Coachella Valley Economic Tolen’s firm is one of about a dozen a Foreign Trade Zone adjacent to Palm Partnership operates the iHub and the “virtual companies” operating out of the Springs International Airport. Its sales Below, left and right: CVEP’s iHub supports emerging companies such as Sactec Solar, which designs and manufactures alternative energy solutions, and SunUp Energy, a solar thermal company providing design, manufacturing, and installation services for commercial and industrial applications throughout Southern California.

grew from $60,000 in EV’s first year 12 to 20 companies there at any given to build a business,” she says. “I was a to $300,000 in the second. The firm’s time, so they get to know each other and single mom, so doing things on my own president, Bill Schlanger, projected the all of these companies could actually be would have been nearly impossible. company “could definitely be in the suppliers to one another, too,” Wallace says. Having that support, having the resources, tens of millions” in three years. The EV Enterprises has a contract with having the mentorship, and having other company’s staff has grown from two to neighbor Solaris Power Cells, which entrepreneurs around me gave me the four, but Schlanger forecasts as many as manufactures solar-powered golf carts. confidence to make it happen. It started 30 employees by year’s end. “We’ve collaborated with another company, with just me and one other person; now Of the iHub, he says, “It’s a great place Post Modern, that’s making computer hipS-sister has eight full-time people.” to start your business. There’s a lot of kiosks, and we’ve made some electronics Kanner visited the desert regularly as resources available, a lot of guidance, a lot for them,” Schlanger says. a child and says she never dismissed it of encouragement. There is introduction Not all iHub businesses are high-tech. as merely a tourist resort. “I saw there to capital and all kinds of expertise. The Sonia Kanner manufactures an attractive was a lot of vibrant energy here, like it’s facilities themselves are top-notch. There and sleek alternative to the dowdy fanny just ready to explode,” Kanner says. “It’s are a lot of other entrepreneurs around pack called hipS-sister. She still lives a beautiful place, but it’s mainly the people who have had experiences that you in San Diego, where she launched the and the opportunities, and the networking can share.” business, but she moved her offices and and the collaborations.” Joe Wallace, the iHub’s managing distribution center to the Palm Springs Kyle Wagner, assistant director of the director and CVEP’s chief innovation Accelerator Campus. iHub and the Coachella Valley Small officer, says the resident firms often “What the iHub has provided for me Business Development Center, says the partner with each other. “There will be is basically the tools and the structure overarching concern of most entrepreneurs It’s a great place to start your business. There’s a lot of resources available, a lot of guidance, a lot of encouragement. There is introduction to capital and all kinds of expertise. The facilities themselves are top-notch.

workforce and the natural attributes of the East Valley are different from those in the West Valley,” Wallace says. “The East Valley is a good platform to innovate with respect to the reclamation and resurrection of the Salton Sea. And there is a very strong, healthy defense business down there.” Wallace hopes to leverage the intellectual property owned by the federal government — the public — as a platform to create consumer products. “Some things that came out of Defense Department research include contact lenses, compact discs, data encryption, the Internet, and fiber optics,” he says. According to CVEP’s most recent economic impact study, the iHub is how to access capital. “We don’t award resource in the near future along with program’s 20-year potential is the creation grants or micro-loans, and a lot of the crowdsourcing, once the U.S. Securities of 5,112 direct and indirect jobs, along with companies in the iHub aren’t going to be and Exchange Commission has approved $12.5 billion in total economic activity. The able to qualify for a bank loan — that’s regulations for equity investing. (With average expected wage for a manufacturing just the nature of the game,” Wagner says. crowdfunded investments, people are employee in this region is $48,900, “So we help them find different forms of funding something they’re excited or according to industry data. equity financing.” passionate about, but with no potential for “Having the confidence of a number of The iHub has a relationship with the financial gain.) companies in two iHubs can make [the Inland Empire chapter of Tech Coast The Palm Springs Accelerator region] stronger in attracting a business Angels, a group of independent financiers Campus recently opened its Health that’s looking for a technical workforce,” who have invested more than $120 million and Medical Innovation Center. Wallace says. in over 200 companies. “We’ll help them Funded with a $500,000 grant from “There’s no reason why we should not prepare their pitch deck,” Wagner says. the Desert Healthcare District, the be luring some of those high-tech jobs “They’ll come in and, like on the TV show 12,000-square-foot space includes a clean [from the Silicon Valley]. There’s no reason Shark Tank, we’ll let them give their bench with a DNA sequencer. Several why some of those emerging companies presentation and then we’ll try to poke startups moved into the facility this fall to shouldn’t be doing business in Palm holes in it so they can make it better.” take advantage of the low overhead and Springs,” Pougnet says. “That’s a huge A few iHub clients have tried access to resources. opportunity and one that we’re taking a crowdfunding through websites like Planning and funding have begun for a really serious look at, because the quality Kickstarter.com on their own, but Wagner second accelerator campus in the eastern of life is terrific in the desert — and we can anticipates iHub will embrace this as a Coachella Valley. “The skill sets of the make it happen.”

V18 COACHELLA VALLEY VISION | 2014-2015 EXPERT PERSPECTIVE: SOLAR

A Powerful Asset It’s time for a Coachella Valley industrial renaissance, fueled by the sun.

ince moving to the Coachella investment. The surplus production has 13.05 cents (per 2013 Energy Information Valley in 2012, my wife and I more than o‡ set the water, sewer, gas, and Administration data), a solution that o‡ ers have decided that this is perhaps garbage collection fees associated with power-hungry industrial companies rates the ideal place to live on Planet home ownership. comparable to the rates we achieved at Earth. We purchased a home and Businesses can take advantage of our home could vaporize the opposition to Schose to include a photovoltaic solar system this renewable energy source, too. making things in California insofar as the on our house. Our decision was driven not Unfortunately, California businesses have Coachella Valley is concerned. only by our desire to minimize recurring been wooed by other states such as Texas, With the lowest state average being costs but also to take advantage of the 360 whose governor, Rick Perry, has brazenly Idaho’s 6.44 cents and the highest being days of sunshine annually. recruited companies to relocate principally Hawaii’s 31.59 cents, a solar-fueled Since installing our 9.9-kilowatt PV due to the di‡ erences in the cost of doing industrial park serving the Coachella solar system, our electricity bill has been business. Texas recently convinced Toyota Valley o‡ ering power at between 6 and below zero every month. At the rate that to move its Torrance-based operation to 8 cents would be a great attraction for we self-generate, our cost per kW hour Plano, Texas, partially on the basis of the industrial expansion. over the life of the system is slightly under cost of electricity. It is always good policy to leverage one’s 6 cents. In the Coachella Valley, a solar best assets. In the Coachella Valley, the Coming from Evansville, Indiana, industrial park could leverage the abundant sunshine is one of our best and where the fl at rate is 16 cents and the abundant sunshine to attract and most reliable. As electric rates continue to average residential utility bill is the expand businesses. With the average rise, the cost advantages made available second-highest in the United States, rate for electricity nationwide at 10 cents by solar energy actually get better. The we saw the solar opportunity as a great per kW hour and California’s rate at Coachella Valley Economic Partnership, Closing the Loop With Battery Storage Generous state and federal tax credits offered to install renewable energy solutions have inspired many small industrial companies to invest in self-generation solutions such as solar panels. The effective electrical rates for these light industrial companies are comparable to the rates that residential homeowners have achieved. The caveat with industrial rates is that there is a surcharge for the peak load associated with each meter. Electricity use is metered in two ways by your utility provider: first, based on your total consumption in a given month, and second, your demand, based on the highest capacity you required during the given billing period, typically a 15-minute interval during that billing cycle. In the case of a light industrial company, even if a solar installation meets all of the net consumption, there will still be a charge for any peak demand that happens either at night or when which helps businesses grow and thrive, clouds pass over. incubates solar energy companies in its Dedicated battery storage Coachella Valley iHub and promotes enables light industrial businesses renewable energy education in career to greatly reduce the peak charges academies at area high schools. In the Coachella Valley, associated with industrial rate The Coachella Valley has a well- schedules by using a technique known as “peak shaving” to trained workforce and is a short drive a solar industrial optimally manage the peak to the more than 20 million people in park could leverage the demands during times when the Greater Los Angeles. An industrial park sun is not shining. The Coachella that o ers businesses the lowest-cost abundant sunshine Valley iHub is incubating three electricity available would be a big step to attract and expand companies that offer solutions forward in establishing the Coachella combining solar arrays with Valley as the business crossroads of the businesses. battery storage, designed for United States, and that giant market optimizing energy management of Los Angeles with its ports has the and minimizing industrial potential to make our region the best stop electricity charges. on that two-way highway that fuels the U.S. consumer markets. — Joe J. Wallace, Chief Innovation O cer, Coachella Valley Economic Partnership, and Managing Director, Coachella Valley iHub

V10 COACHELLA VALLEY VISION | -  SUCCESS STORY: WORKFORCE

Career Pathways Local businesses and schools connect student learning to careers.

anel Samuels knew at an early age work-based learning experiences to help expansion, and retention) and workforce that she wanted to become a nurse. students like Samuels achieve their career development initiatives. JHer grandparents, who helped raise goals. Unlike most economic development On the workforce side of the equation, her, su ered from many health problems. agencies across the country, CVEP CVEP facilitates career exploration “Part of the reason I wanted to go into promotes a Workforce Excellence initiative and work-based learning — including the medical fi eld was because as a child that’s integral to economic vitality. “We internships, mentorships, and job I felt so helpless,” she says. “I couldn’t help think backward from the jobs and from shadows — by connecting businesses in them. I couldn’t make them better because the employer needs, then implement these industries with elementary, middle, I didn’t know how.” strategies that get our local students and high schools in all three Coachella While attending middle school, she met prepared for those jobs of the future,” says Valley school districts. The programs help a traveling nurse at an on-campus career Sheila Thornton, CVEP vice president of create a well-prepared local labor force fair. “I remember listening to her talk Workforce Excellence. tailored to meet market needs. “In Desert about her job,” Samuels says. “She loved it The Coachella Valley Economic Sands Unifi ed School District, you have a so much, and it sounded like it embraced Blueprint, drafted in 2009 and currently kindergarten through fi fth grade medical two of the key elements that I always being revised for release in early 2015, magnet academy,” Thornton says. “Those wanted in my life: to travel and to help identifi ed three industry sectors poised students learn all their core academics people. Listening to her and hearing her for growth and job creation: healthcare; and career-themed concepts.” In addition, story inspired me.” arts, media, and entertainment; and local high schools boast 18 career The Coachella Valley Economic advanced technology. CVEP focuses academies — schools within schools — Partnership connects business and on these industries as it aligns its that teach practical, applicable job skills schools to support career pathways and business development (attraction, and encourage college enrollment. Over the past six years, CVEP and matching partners have given out about 1,800 scholarships totaling about $9 million.

Samuels applied for a paid summer internship at CVEP, but the position went to her best friend. Undaunted, she worked — without pay — alongside her friend to develop what is now called the Emerging Health Professionals Work Group. “We got a grant, and now every year we have an annual Emerging Health Professionals Career Showcase where we Career assemble students from the six health career academies across the desert, who present to their peers about that profession ... to inspire these students to get into these professions,” she says. CVEP — through a grant from College Pathways Access Foundation of California and local matching partners — provides about $1.4 million in scholarships to Coachella Valley students each year. “We do a lot of work around counseling for students in terms of capturing fi nancial aid, fi lling out the Free Experiences outside the classroom everything,” she says. “He showed me how Application for Federal Student Aid, and give students a perspective on what it’s to apply to colleges, he showed me how to seeing if we can help them fi nd other schol- like to work in di erent environments. fi ll out a scholarship [application], and arships and grant funding to assure their “Mentorships from businesspeople are he wrote me letters of recommendation. success in college,” Thornton says. “Over the key, because it’s not just the work; it’s Even now, he’s a mentor to me.” past six years, CVEP and matching partners work habits,” says Christine Anderson, By her senior year, Samuels was have given out about 1,800 scholarships superintendent of the Palm Springs president of her school’s chapter of totaling about $9 million.” Unifi ed School District. “It’s coming Health Occupations Students of America CVEP has supported Samuels with in every day on time, with energy and and spoke at CVEP’s Healthcare Industry scholarships throughout her nursing interest in bringing ideas to a business. Council, where she met representatives education. “Not only have they helped me Our students need to hear that from from colleges, hospitals, and CVEP’s fi nancially, they’ve helped me seek out businesspeople, not just from teachers scholarship and support program, health professionals and seek out potential and parents.” which o ers fi nancial resources, college jobs,” she says. “This is probably one of the Samuels pursued her own career readiness and fi nancial management best opportunities that I’ve ever had.” preparation by enrolling in science workshops, and one-on-one counseling. Samuels expects to graduate in the and math courses in high school and At the meeting, she was invited to spring of 2016, then work for two years in then looking to join any club related apply for a scholarship. “They don’t the Coachella Valley before registering for to the medical fi eld. She found the just give you money,” Samuels says. traveling nurse assignments. Eventually, sports medicine club and a new mentor “They give you support. You have the she hopes to return to school to become a in Palm Springs High School teacher mentorship, and they also help connect nurse practitioner. Mike Ventura. “He gave me guidance on you to internships.” — Ken Alan

V8 COACHELLA VALLEY VISION | -  REPRINTED FROM PALM SPRINGS LIFE | OCTOBER 2014 | COACHELLA VALLEY VISION | 2014-2015 (760) 323-8259 • www.palmspringsca.gov