City presents broad economic development plan: hotels, action sports, downtown revitalization

Gina Gonzales, the city’s Economic Development Director, gave the Lake Elsinore City Council a wide‑ranging update on economic development programs and prospective projects on Aug. 13, outlining targets that include hotels, specialty grocers, action‑sports tourism, a proposed entertainment district and support for medical providers.

Gonzales told the council the department is focused on business attraction, retention and expansion through programs that include an ombudsman service for developers, monthly merchant outreach and a broker breakfast. “So when people are saying, are you guys going after warehousing? No. We are not,” Gonzales said, emphasizing the city is seeking employers that provide stable, “mortgage‑paying” jobs and that the strategy is not centered on large‑box industrial uses.

The presentation listed active and prospective projects: preapprovals from major hotel brands, a request for proposals or letters of intent for retail and specialty grocers, an indoor family‑entertainment park and a proposed site for two hotels with a rooftop bar in a potential entertainment district. Gonzales said a study commissioned by the city’s hospitality consultant HVS identified a need for roughly 400 hotel rooms in the market area and that representatives from Hilton, IHG, Marriott and Choice have approved interest in city sites; Wyndham was said to be processing approvals.

Gonzales also reviewed efforts to expand action‑sports tourism and local manufacturing tied to that industry, citing the city’s first Lake Elsinore Extreme Regatta and discussions about an Elsinore Yacht Club sailing school and a surf‑park feasibility study. She described coordination with veterans of motorsports and with community stakeholders on design, permitting and infrastructure constraints.

The director reported progress on medical services: a new urgent care on Diamond Drive, outreach to Rady Children’s Hospital and other medical providers, and ongoing efforts to find an appropriate site and tenant to replace a vacant drugstore property that the city has struggled to fill because the property owner currently prefers leasing over selling.

Gonzales said the economic development team is working to streamline processing and coordinate multi‑departmental reviews, including weekly development‑team meetings and a development stakeholders group that meets quarterly. She noted a pause and re‑prioritization of grant work at the federal level and said the city had negotiated reimbursement changes while seeking federal funding related to its comprehensive economic development strategy.

Council feedback and next steps

Councilmembers responded with appreciation and asked the director to present the material to the public in smaller, digestible summaries. Councilmember Johnson asked staff to find ways to drip out highlights through the city’s communications channels so residents can track progress. Councilmembers Manos and Sheridan emphasized the importance of showcasing projects that are close to reality and timing communications to when names and locations are available.

Gonzales said staff will work with communications to share updates and noted that several projects remain in design, feasibility or permitting stages. She offered to answer additional questions after the meeting.

Ending

The presentation provided councilmembers a progress report rather than final approvals. Several projects identified by Gonzales will require further environmental review, entitlements or private investment before they proceed to construction.