PALM DESERT CITY COUNCIL
STUDY SESSION MEETING
AGENDA
Thursday, January 8, 2026
3:40 p.m.
Council Chamber, City Hall
73-510 Fred Waring Drive
Palm Desert, California
NOTICE IS HEREBY GIVEN that the purpose of the Study Session is to review the items listed on the agenda. No action will be taken.
This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, Palm Desert Housing Authority, and Palm Desert Board of Library Trustees.
Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public access via teleconference or in person, and up to two Councilmembers may attend remotely.
WATCH THE MEETING LIVE: Watch the City Council meeting live at the City’s website:
https://palmdesert.zoom.us/ or on the City's YouTube Channel.
OPTIONS FOR PARTICIPATING IN THIS MEETING:
Send your comments by email to: [email protected].
Emails received prior to 10:00 a.m. on the day of the City Council meeting will be made part of the record and distributed to the City Council. Emails will not be read aloud at the meeting.
Pages
1. CALL TO ORDER - STUDY SESSION
2. STUDY SESSION TOPICS
2.a RECEIVE AND FILE AN UPDATE ON THE CITY’S RETAIL BUSINESS
RECRUITMENT EFFORTS
3 RECOMMENDATION:
Receive and file the update on efforts to attract retail businesses to Palm Desert.
3. ADJOURNMENT
4. PUBLIC NOTICES
NOTE: Pursuant to Assembly Bill 2449, this meeting may be conducted by teleconference. Study Session is accessible in person or on the City’s website:
www.palmdesert.gov under the Council Agenda link at the top of the page.
Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the designated office for inspection of records in connection with this meeting is the Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert. Staff reports for all agenda items considered in open session, and documents provided to a majority of the legislative bodies are available for public inspection at City Hall and on the City’s website at www.palmdesert.gov by clicking “Council Agenda” at the top of the page.
Americans with Disabilities Act: It is the intention of the City of Palm Desert to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible.
AFFIDAVIT OF POSTING
I, Michelle Nance, Acting Assistant City Clerk of the City of Palm Desert, do hereby certify, under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert City Council, Successor Agency for the Palm Desert Redevelopment Agency, and Housing Authority, was posted on the City Hall bulletin board and City website www.palmdesert.gov no less than 72 hours prior to the meeting.
/S/ Michelle Nance
Acting Assistant City Clerk
City Council Study Session
January 8, 2026.
2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: January 8, 2026
PREPARED BY: Vanessa Mager, Economic Development Coordinator Jill Mendoza, Economic Development Manager
SUBJECT: RECEIVE AND FILE AN UPDATE ON THE CITY’S RETAIL BUSINESS
RECRUITMENT EFFORTS
RECOMMENDATION:
Receive and file the update on efforts to attract retail businesses to Palm Desert.
BACKGROUND/ANALYSIS:
On March 9, 2023, the City Council adopted "Business Retail Recruitment" as a key component of the 2023 City Council Goals, directing staff to proactively attract retail businesses that align with Palm Desert’s evolving economic and community needs.
To advance this goal, the City entered into a professional services agreement with The Retail Coach in November 2023 to provide retail market analysis and recruitment services. This scope of work included a market gap analysis, identification of targeted retail concepts, outreach at International Council of Shopping Centers (ICSC) events, and coordination with commercial brokers and developers.
Through this partnership, the City gained market intelligence and exposure to national and regional retailers. The Retail Coach generated several prospective leads, including preliminary engagement with brands such as Escapology, Kura Sushi, and North Italia, and represented the City at multiple ICSC events. While these efforts helped raise Palm Desert’s profile within the retail development community, translating interest into executed leases proved challenging due to factors such as limited site availability, market demographics, and seasonal perceptions of Palm Desert’s trade area.
Based on these insights, the Economic Development Department has elected not to extend the contract with The Retail Coach. Instead, the City will transition retail recruitment efforts in-house, utilizing recently expanded staff capacity and local market knowledge to pursue a more customized, relationship-driven approach. This shift positions the City to build on lessons learned and continue advancing retail opportunities that best serve the Palm Desert community.
To support this transition, the City has hired a new Economic Development Manager who will work closely with the existing Economic Development Coordinator. Together, they will lead an active retail recruitment program based on recognized industry best practices, including:
Data-Driven Recruitment: Utilizing internal and third-party tools to analyze demographic, psychographic, and mobility data.
Targeted Outreach: Proactive communication with targeted retail brands and brokers. 3 City of Palm Desert
Receive And File an Update on the City’s Retail Business Recruitment Efforts
Trade Show Engagement: Attendance at ICSC and other industry events to promote Palm Desert and meet directly with retailers.
Site Promotion: Creation of marketing collateral for key opportunity sites, including custom site profiles and real estate briefs.
Stakeholder Coordination: Regular meetings with commercial brokers, property owners, and the development community to share market insights and match business prospects to available locations.
Business Support: Staff is evaluating potential tools and strategies to support retail recruitment objectives, which may include tenant improvement assistance and other mechanisms, subject to future City Council consideration and approval.
Staff is prepared to implement a more focused and responsive retail recruitment strategy that leverages Palm Desert’s distinct market position and supports measurable progress toward City Council goals.
Legal Review:
This report has been reviewed by the City Attorney’s office.
Appointed Body Recommendation:
The Economic Development Subcommittee met on December 11, 2025. Feedback from the committee included the following:
Ensure that the north sphere area is prioritized. Staff to identify retail gaps and opportunities in that growing area.
They were supportive of the new retail recruitment approach.
FINANCIAL IMPACT:
There is no financial impact associated with this receive and file action. The expiration of the professional services agreement with The Retail Coach will result in budget savings. Any future appropriation of funds to support in-house retail recruitment efforts will be brought to the City Council for approval.
ATTACHMENTS:
1. Retail Recruitment Update Presentation
2. 2025 Retail Update from The Retail Coach
4 City of Palm Desert
Receive And File an Update on the City’s Retail Business Recruitment Efforts
CONFLICT OF INTEREST AWARENESS CHECKLIST:
☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts.
Applicant(s)/Appellant(s): _________________________
Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308).
Note: These indicators are informational and do not constitute a legal determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 5 6
Retail Recruitment
Update
Data, Trends and
Strategies
Economic Development
7 2025 Retail Recruitment Update
Contract with The Retail Coach 2023–2025
• Conducted gap analysis and prepared site marketing materials • Generated targeted list of prospects
• Coordinated successful retailer meetings at ICSC
Transition to Staff-led Model for FY 2025–26
• Recruitment will be led by City Economic Development staff to strengthen control, accountability, and results
• Integrated approach will allow for direct coordination across planning, marketing/communications, and broker engagement 8 • Love Sac (El Paseo)
• Murasaki Kakurega (Cook St.)
• Rutina (San Pablo)
• 85°C Bakery Cafe (Desert Gateway)
• Vibrations Ohana (The Gardens)
• J.Crew Factory (Town Center)
• Nobibi (Monterey & Gerald Ford)
• Visual Comfort & Co. (El Paseo)
• Diamond Wish (El Paseo)
• Red Barn (Highway 111)
• Project Burger (Country Club)
Opening by End of Month
• Birrieria Sinaloa (Monterey Crossings)
• Winston Pies (El Paseo)
Notable Openings in 2025
Data Source: Inventory compiled from site audits and broker engagement 9 • El Paseo Coffee (El Paseo)
• Woof Gang Bakery & Grooming (Deep Canyon & Highway 111) • H&H Bagel (Monterey & Country Club)
• RH (El Paseo)
• A-Bakery (Highway 111)
• Desert Kids Coffee (San Pablo)
• Hope Diamonds (Monterey & Highway 111)
• DSRT Surf (Country Club & Desert Willow Dr.)
• Wilson (El Paseo)
• El Paseo Chophouse (Highway 111 & El Paseo)
Coming in 2026
Data Source: Inventory compiled from site audits and broker engagement 10 Retail Vacancy Rates (Q4 2025)
Area Vacancy Rate
Palm Desert (Citywide) 8.3 %
The Shops at Palm Desert 9.0 %
El Paseo 6.1 %
Coachella Valley Average 8.1 %
Riverside County Average 6.9 %
Data Source:
CoStar
11 Greenfield Sites
• Available for near-term development.
Infill Opportunities
• Sites suitable for redevelopment, intensification, or repositioning.
Re-Tenanting Priorities
• Focus areas include The Shops at Palm Desert, El Paseo, and Town Center.
Key Commercial Corridors
• El Paseo, Highway 111, and Monterey Avenue remain primary corridors for investment and redevelopment activity.
Overview of Retail Opportunities
Data Source: Inventory compiled from site audits and broker engagement 12 Strategic Advantages
Regional Leader in Retail Sales Tax
• Palm Desert consistently generates the highest retail sales tax revenue in the Coachella Valley, underscoring its strong market performance.
Committed to Small Business Success
• Provide support to help small and local businesses
succeed from startup to sustainability.
Recognized Visitor Retail Hub
• The city benefits from strong national
and international visibility as a
shopping and tourism destination,
reinforcing its competitive position.
Unmatched Luxury Cluster
• El Paseo stands as the region’s premier
luxury retail destination, offering a best-inclass tenant mix and brand draw. 13 Strategies to Overcome Retail Barriers
Legacy Big-Box Formats
• Encourage redevelopment, adaptive reuse, and flexible site planning to support modern retail, entertainment, and mixed-use concepts.
Use Restrictions
• Update zoning tables and revise use limitations to expand tenant eligibility and improve leasing outcomes.
Non-Local / Absentee Ownership
• Increase proactive engagement, provide clearer development pathways, and incentivize reinvestment to re-activate
underperforming properties.
Infrastructure Constraints
• Prioritize improvements to utilities, access, circulation, and site functionality to support new tenant delivery and redevelopment feasibility.
Market Perception Challenges
• Strengthen branding and marketing efforts, highlight data on yearround demand, and promote success stories to reshape retailer perceptions.
14 Current Tactics Informed by Best Practices
Broker Coordination
• Standing monthly touchpoints with major leasing agents Performance Tracking
• Internal database to track prospect pipeline and touchpoints Targeted Outreach
• Targeted communication to prospective tenants
• Engagement timed around ICSC and regional leasing cycles Site Readiness
• Custom site summaries available with zoning, demographics, and mobility data
• Available properties list shared with broker network
Aligned with IEDC and ICSC retail recruitment frameworks 15 2025 - 2026 Strategic Focus Areas
Retail Real Estate Assessment
• Create a parcel-level dashboard detailing ownership,
infrastructure, and zoning.
• Prioritize sites based on development readiness and market demand.
Branding & Market Visibility
• Strengthen the City’s market presence to attract quality retail investment.
• Refresh marketing materials for trade shows, site selectors, and tenant representatives.
Business Support
• Provide guidance to help streamline permitting and accelerate TI approvals to reduce time to occupancy.
• Evaluate existing programs and propose new strategies to support retail recruitment efforts.
16 Q1 2026 Activities and Deliverables
Acquire Recruitment Tools
• Evaluate and procure data platforms (Retail Strategies, Placer AI, CRM, etc.) to strengthen outreach.
Secure Branding Support
• Bring on a consultant team to develop updated branding and marketing materials.
Launch a Retail Brand Campaign
• Promote Palm Desert’s retail strengths, opportunities, and overall market advantages through strong storytelling and proactive engagement.
Elevate City Narrative
• Showcase economic strengths, business vitality, and quality of life through strategic storytelling.
Prepare for ICSC Outreach
• Finalize a targeted engagement plan for ICSC, including priority tenants, broker meetings, and supporting collateral.
17 Timeline 2025 - 2026
18 • No formal action requested
• Staff available to respond to questions or provide clarification Questions
19 20
662.844.2155 | [email protected] | THERETAILCOACH.NET | AUSTIN, TEXAS • TUPELO, MISSISSIPPI Retail Update
Palm Desert, CA
Recruitment Efforts
Entertainment Concepts
• The Retail Coach has generated an extensive list of potential entertainment concepts consisting of 120 leads, from which we refined down even further to a group of about 50 concepts that we believed would be a good fit for Palm Desert.
• With this group of 50 leads, we created a targeted marketing campaign, highlighting new retail additions to the market, underscoring high performing retail units, the revitalization efforts of The Shops at Palm Desert, and noting the extensive residential growth in the trade area. • From this effort, we have generated positive responses from Escapology, Apple Cinema, FunCity, and Funbox, all of which are family entertainment concepts. • Additionally, we have also had very preliminary conversations with the head of national site selection for Top Golf who let us know that they have been watching the market closely and have local brokers tracking the market. We plan to follow-up and check in every few months to stay in front of them without being overly persistent.
• Additionally, The Retail Coach team has put together a targeted list of prospects specifically tailored towards the El Paseo district. We highlighted the extremely strong co-tenancy of luxury designer brands and high-end restaurants at El Paseo, along with the strong demographics the district boasts.
El Paseo District
• The Retail Coach team has put together a targeted list of prospects specifically tailored towards the El Paseo district. We highlighted the extremely strong co-tenancy of luxury designer brands and high-end restaurants at El Paseo, along with the strong demographics the district boasts. • We have strategically put turnkey sites in front of leads that we feel would be fits for the market, one of which being the the 7,500 Class A restaurant site in El Paseo Plaza that just became available at the beginning of July.
Leads Interested In Palm Desert
• BarK: Our team has had initial conversations with BarK who has told us that the market is not a primary focus as of now but will look at any strong opportunities we have. • Kura Sushi Bar: They have let us know that they believe Palm Desert is only a 6-month market but are happy to look at strong opportunities. We have provided them with extensive demographic reports, cell phone studies, and data analytics to indicate that there is in fact ample demand yearround in the trade area. • Monster Shakes: Their team has told us that they are evaluating a franchisee for the area and would be interested in a potential location at the zoo, if permitted by the zoo management. • Oggi’s Sports Brewhouse: Their team has also let us know that they are evaluating franchisee options.
21 662.844.2155 | [email protected] | THERETAILCOACH.NET | AUSTIN, TEXAS • TUPELO, MISSISSIPPI Retail Update
Palm Desert, CA
Leads Interested In Palm Desert
• Larsen’s Steakhouse: The owner of the company has told us that he will consider the desert if the deal economics make sense. We this would be a strong fit for the El Paseo Plaza restaurant and have sent him that site. We are currently awaiting feedback and staying in front of him regularly. • Lazy Dog Bar & Restaurant: They are interested in the market, but they have very specific real estate requirements for their sites and have been unable to approve any of the available sites in the market that we have sent them.
• North Italia: They are interested in the market, and we have been in contact with them regarding multiple sites; as of now, none of them have been a fit for them. • TKB Bakery: They had interest back in 2024 but have not had much activity in 2025. We are staying in front of them on a regular basis as new sites become available. • Aritzia: Our team had a call with the regional real estate director for this area of the country that stated that Palm Desert is on their radar for 2026-2027 and is planning a market visit in late 2026 • Trader Joes: Broker has expressed a long term interest in a second location in Palm Desert, once a location in Palm Springs has opened and matured.
• Harkins Theatres: TRC met with representatives in November 2026 to gauge ongoing interest in the mall redevelopment. Harkins still has an interest and is willing to discuss incorporating more of their “Backlot” concept, comprised of bowling, virtual games, arcade, etc...
ICSC Las Vegas + ICSC Western + ICSC Retail Forward 2025
• On May 18th – 20th, we will attended ICSC Las Vegas in Las Vegas where we met with multiple brokers, developers, and national retailers on Palm Desert’s behalf. Full agenda was submitted to City Staff.
• On September 28th – 30th, we attended ICSC Western in Palm Springs where we met with multiple brokers, developers, and national retailers on Palm Desert’s behalf. Full agenda was submitted to City Staff.
• On November 13, TRC attended the first ICSC Retail Forward event in Long Beach, a more informal networking event for commercial real estate brokers, tenants, and developers. Harkins Theatres, 7brew Coffee, Kids Empire were among the brands that expressed a willingness to explore new location opportunities in Palm Desert.
22 662.844.2155 | [email protected] | THERETAILCOACH.NET | AUSTIN, TEXAS • TUPELO, MISSISSIPPI Retail Update
Palm Desert, CA
Feedback on Market Perceptions
• The majority of the feedback recieved from various brokers, retailers and developers can be broker up into three categories. First, a few groups didn’t prefer the age demographic in Palm Desert, as the median age is 56.08. This sentiment can stem from multiple reasons, ranging from reduced demand for certain product categories, labor market challenges, less frequent shopping, lower foot traffic, and more. Specifically, Kura Revolving Sushi Bar stated that they target 24-36 year olds, ruling out this market based on that alone. TRC provided data to help update the perception of the tenant rep and illustrate the presence of their key demographic, despite overall older median age. • Secondly, a lot of the retail activity we have seen over the last has been driven by restaurants, many of which require a drive through. There have been a few sites that fit that mold in Palm Desert, however, overall, there has been a lack of that specific type of availability in the market. Additionally, there were many groups interested in El Paseo, there was common disconnect on specific sites on El Paseo. They would typically need to be in very close proximity to the Saks Fifth Avenue building, with a large amount of square footage. Unfortunately, what was on the market did not meet their requirements.
• Lastly, there was a common sentiment on the location of Palm Desert itself. This was more in regards to the higher end brands that only have a presence in the Los Angeles/Inland Empire MSA.
These groups stated that they didn’t have any plans to expand their operations into the desert. Many still see this area of California as a seasonal market, where there is a higher degree of non-primary residences. TRC has attempted to combat the “seasonal” narrative with foot traffic studies showing more consistent visitation than years past.
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