Staff Report
City Council
Item No. 2.B
Meeting Date: January 14, 2026
From: Erick Becerril
Title: Cathedral City Auto Center SWOT Analysis
RECOMMENDATION:
Staff recommends that the City Council receive and file the Cathedral City Auto Center SWOT analysis and provide direction on the areas of focus that Council would like staff to explore as part of future planning and capital improvement discussions.
BACKGROUND:
In April 2025, the City contracted with the Kosmont Companies (Kosmont) to perform a strategic analysis of the City’s automotive industry. Although many types of automotive businesses operate throughout Cathedral City, the analysis centers on the dealerships within the Cathedral City Auto Center, which contribute the largest share of automotive related revenue to the City.
The scope of services with Kosmont included data collection and a market assessment; stakeholder engagement; the preparation of a strengths, weaknesses, opportunities and threats (SWOT) analysis; and the development of strategies to sustain and improve industry competitiveness and long-term fiscal performance. It also included a presentation of findings to City Council, which Kosmont will do virtually at the January 14 City Council meeting.
Since April, Kosmont has maintained consistent coordination with City staff, local dealerships, and the Cathedral City Auto Center (CCAC). Following an initial in-person meeting with CCAC members, the economic development manager served as a continuous liaison, relaying committee feedback to Kosmont to shape the project’s direction. This collaboration culminated in the distribution of a draft SWOT analysis on October 20. The CCAC’s direct insights into local market conditions were instrumental in refining the document, with their feedback now fully integrated into the updated report.
In addition to commissioning the SWOT analysis, the City Council has taken several concrete steps over the past decade to support the Cathedral City Auto Center through performance- based incentive agreements, visibility improvements, and coordinated infrastructure efforts.
These actions include negotiated tax-sharing agreements to facilitate dealership reinvestment, City participation in signage and reader board improvements tied to public benefit, and ongoing coordination with the Public Works Department to prioritize maintenance and improvement needs along East Palm Canyon Drive.
Together, these efforts reflect the City’s continued commitment to supporting the Cathedral City Auto Center as a key economic asset, while recognizing that changing market conditions and regional competition now warrant a more comprehensive and forward-looking strategy focused on long-term corridor competitiveness.
DISCUSSION:
Auto dealers identified several consistent themes during their review of the draft SWOT.
Their comments focused on roadway conditions, public safety, the visual appearance of the corridor, and competitive pressures from nearby cities.
Infrastructure issues were repeatedly identified as the highest priority. Auto dealers noted that pavement wear, faded red curbs, limited lighting, and aging landscaping detract from the customer experience and reduce the prominence of the Auto Center. Enhancing these physical elements would help modernize the corridor and improve its visibility.
Public safety challenges were also emphasized. Auto dealers reported ongoing impacts from homelessness, vandalism, and theft, which have led some businesses to increase spending on private security. They expressed interest in stronger coordination with the Cathedral City Police Department to enhance patrol visibility and safety outcomes for staff, customers, and inventory.
Competitive pressure from neighboring cities remains a concern. Other jurisdictions continue to invest in roadway upgrades, dealership facilities, and promotional strategies that strengthen their market share. Auto dealers believe that strategic improvements along East Palm Canyon Drive would support Cathedral City’s position within the regional automotive market.
Auto dealers also discussed financial participation in future improvements. Any future cost sharing proposal or district formation would require additional analysis and guidance from the City Council. Following all auto dealer meetings, staff worked with Kosmont to incorporate these changes into the report.
Focal Areas
The revised SWOT provides a foundation for planning and future action. Based on the findings, several paths are available for Council consideration as part of ongoing budget, capital planning, and policy discussions.
Infrastructure
oCouncil may choose to have staff examine improvement options for roadway resurfacing, restriping, lighting enhancements, red curb maintenance, landscaping updates, or corridor beautification. These improvements would help address the operational and aesthetic concerns raised by dealerships. Public Safety
oCouncil may consider the development of a coordinated public safety approach for the Auto Center that could include enhanced patrols, targeted enforcement strategies, or cross-department collaboration to address homelessness impacts and related safety concerns.
District Identity and Competitiveness
oCouncil may consider directing staff to explore signage improvements, identity features, or branding strategies that increase the visibility of the Auto Center and strengthen its position within the regional market. Funding and Implementation Strategies
oCouncil may also consider whether staff should evaluate possible funding models, including scaled assessment districts, matching contribution programs, capital improvement allocations, or external grant opportunities.
This review would support future decisions regarding the scope and timing of improvements.
These items represent areas where Council direction can guide future work and staff preparation.
City Council has previously authorized and supported substantial, performance-based investments to assist Auto Center dealerships with reinvestment and visibility over the past decade. These actions include approval of tax-sharing agreements to facilitate dealership expansion and modernization, City participation in signage and reader board improvements totaling several hundred thousand dollars in public investment in exchange for long-term public messaging benefits, and amendments to incentive agreements tied to measurable sales tax performance.
In addition to these direct financial commitments, Council has supported ongoing infrastructure maintenance and public safety services along East Palm Canyon Drive through budget and policy direction. Collectively, these actions reflect a meaningful level of City participation intended to support dealership reinvestment, enhance corridor visibility, and protect a key source of sales tax revenue, while recognizing that evolving market conditions now warrant a broader, long-term strategic discussion.
FISCAL IMPACT:
The cost of the SWOT analysis was $29,750 dollars and was funded through the Economic Development Division budget for the current fiscal year. Any future improvements or program development discussed in this report would require separate cost estimates and budget consideration.
FIVE-YEAR STRATEGIC PLAN:
The Cathedral City SWOT Analysis aligns with Goal C of the Cathedral City Five-Year Strategic Plan, Fiscal Stability and Sustainability.
ATTACHMENTS:
1. Cathedral City Auto Center SWOT Analysis, January 2026, prepared by Kosmont Companies