PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
1. Name of Entity
2. Address of Entity (Principle Place of Business)
3. Local or California Address (if different than #2)
4. State where Entity is Registered with Secretary of State
If other than California, is the Entity also registered in California? F Yes F No
5. Type of Entity
F Corporation F Limited Liability Company F Partnership F Trust F Other (please specify)
6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other ent ity
_______________________________________________ F Officer F Director F Member F Manager
[name]
F General Partner F Limited Partner
F Other __
_____________________________
_______________________________________________ F Officer F Director F Member F Manager [name]
F General Partner F Limited Partner
F
Other _________________________________
______________________________________________ F Officer F Director F Member F Manager [name]
F General Partner F Limited Partner
Dudek
605 Third Street, Encinitas, CA 92024
78-075 Main Street, Suite G-203, La Quinta, CA 92253
California
X
Frank Dudek
X
Mark Girard, Member
Joseph Monaco, Member
Peter Quinlan, Member
Robert Ohlund, Member
Gerry Salontai, Member
Tom Larkin, Member
X
X
Item 3A - Page 10
F Other _______________________________
7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity
EXAMPLE
JANE DOE
[name of owner/investor]
50%, ABC COMPANY, Inc.
[percentage of beneficial interest in entity
and name of entity]
A.
[name of owner/investor]
[percentage of beneficial interest in
entity and name of entity]
B.
[name of owner/investor]
[percentage of beneficial interest in
entity and name of entity]
C.
[name of owner/investor]
[percentage of beneficial interest in
entity and name of entity]
D.
[name of owner/investor]
[percentage of beneficial interest in
entity and name of entity]
E.
[name of owner/investor]
[percentage of beneficial interest in entity
and name of entity]
I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signature of Disclosing Party, Printed Name, Title
Date
Frank Dudek 24%
ESOP 35%
George Litzinger
CM Division manager April 24, 2020
Item 3A - Page 11
Attachment B
Item 3A - Page 12
Item 3A - Page 13
Attachment C
Item 3A - Page 14
March 11, 2025
Francisco J. Jaime, P.E.
Senior Civil Engineer
City of Palm Springs, Engineering Services Department
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
RE: Scope of Work Revisions, Palm Springs Plaza Theatre- Entry Courtyard Improvements & Additional CA Phase Services
Francisco,
We are happy to continue our work with the City of Palm Springs on the Plaza Theatre Rehabilitation project.
Please find attached our proposals for the Entry Courtyard Improvements, and Additional CA Phase Services.
We propose to provide these additional services for an additional fixed fee of $270,761, per the following breakdown:
New Entry Courtyard $108,898
Extended CA Phase $161,863
See the attached detailed proposals for additional breakdown.
Sincerely,
Jason Currie
Architect, Senior Associate
Item 3A - Page 15
March 11, 2025
Francisco J. Jaime, P.E.
Senior Civil Engineer
City of Palm Springs, Engineering Services Department
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
RE: Scope of Work Revisions, Palm Spring Plaza Theatre- Entry Courtyard Improvements
Francisco,
We are happy to continue our work with the City of Palm Springs on the Plaza Theatre Rehabilitation project. The reworking of the entry courtyard gives us an opportunity to design an inviting approach to the theater, which will have a positive contribution to the overall theatergoing experience.
ARG and our consultants will provide the following scope of work and services:
1) Architectural (ARG):
a) Overall project management and consultant coordination b) Two concept design schemes for a new configuration of ramps and stairs, eliminating the existing guardrail and raised seating area, in the form of concept level site plan drawings
c) See attached limits of work plan
d) Design review meetings (3) with the Foundation and City e) Construction Documents for selected scheme, including; Site plan, and site demo plan
Details for ramp, stairs, handrails, and paving
Product selection and specification for paving materials 2) Civil (ERSC) :
a) Design of a grading & drainage plan
Level landings at all adjacent building entrances, and accessible path of travel from Theater to Public Way
b) Coordination of underground utilities
Storm drain
Undergrounding gas that is currently surface mounted on buildings Undergrounding power
• Reconnecting two existing monument signs
Item 3A - Page 16
• Replacing the overhead power to the freestanding marquee sign
Power to new lighting
3) Electrical and Architectural Lighting (AMA and AKA, from theater rehabilitation team):
a) Verify existing conditions light levels from public way b) Provide new code required lighting at patio stairs and ramp, including; fixture selection, details and power
c) Provide a photometric plan confirming requirements
d) Power plan for new lighting and reconnecting existing free standing signs to theater building power
4) Renderings (Brick Visual, Foundation’s consultant for promotional renderings) a) Provide an updated site view rendering
It’s our understanding that this work will be change-ordered into the current construction project, with the goal of completing the construction work coinciding with the opening of the theater. This proposal includes extended Construction Administration services for this scope of work, which is estimate to be 3 months.
The City will coordinate an over-the-counter review of the plans with the Building Department, and HSPB.
We propose to provide these additional services for an additional fixed fee of $108,898, per the attached breakdown.
We anticipate it will take 6 weeks to complete the Concept Design Phase, and 6 weeks to complete the Construction Document Phase, and we can start immediately with your authorization. Please let us know if you have any comments or questions on this proposal.
Exclusions
- Landscaping – ARG will show some potted plants on the site plan, but will need the City to provide specification of the planting materials, sizes, and locations. - Site furnishings
- Presentations to City Council
- As-builts
Sincerely,
Jason Currie
Architect, Senior Associate
Item 3A - Page 17
Architectural Resources Group
Palm Springs, CA March 11, 2025
ARG Project: 220602
Proposed Scope and Fee
Principal
Architect/
PM Designer
Task: $260 $190 $145 Cost
Project Startup 0.5 4 2 $1,180
(1) one site visit for as-built measurements (1) initial visit for one staff, to measure exterior site conditions and existing fence. 0 8 8 $2,680
Prepare base drawings, using survey, and as-built measurements 0 4 16 $3,080 Schematic Design
Two concept design schemes for a new configuration of ramps and stairs, eliminating the existing guardrail and raised seating area 2 8 16 $4,360
(2) two design review meetings with City and Foundation 4 4 0 $1,800 Construction Documents
Site plan, and site demo plan 0 4 16 $3,080
Details for ramp, stairs, handrails, and paving 0 12 24 $5,760 (1) one progress meeting with client to finalize design. 2 2 0 $900 Building Department Coordination 0 2 4 $960
HSPB coordination 0 2 4 $960
Coordinate Estimate 0 2 0 $380
Coordinate Renderings 1 2 4 $1,220
Construction Administration (3 months, 4hrs per week) 6 48 24 $14,160 E. Project Coordination
1. QC Review 4 4 8 $2,960
2. Coordinate with consultants, and project management 1 8 0 $1,780 Labor Hours Totals: 20.5 114 126
Lump sum Fee $45,260
Reimbursables (estimated)** $2,400
ARG Fee (Labor+ Reimbursables): $47,660
15% Markup*
ERSC Civil Engineering Services $ 33,650 5,047.50$ 38,697.50$ AMA Group - Electrical Services $ 10,500 1,575.00 $ 12,075.00 $ AKA Architectural Lighting - Lighting Services $ 7,450 1,117.50 $ 8,567.50$ Brick- Renderings $ 1,650.00 247.50 $ 1,897.50$ Total Proposed Services $108,898
Notes
Billing will occur monthly based on percentage of work completed. *Includes ARG's administrative fee.
**Reimbursables may include, but are not limited to communication, delivery, postage, travel, and research fees.
220602 Plaza Theatre Entry Courtyard
Y:\Projects\22_PROJ_LA\220602 Plaza Theatre Palm Springs\00_general\Fee_Proposals\2025 Courtyard\220602 Plaza Theatre Entry Courtyard FEE PROPOSAL- R1 03112025.xlsx Item 3A - Page 18
March 11, 2025
Francisco J. Jaime, P.E.
Senior Civil Engineer
City of Palm Springs, Engineering Services Department
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
RE: Scope of Work Revisions, Palm Spring Plaza Theatre- Additional CA Phase Services
Dear Francisco,
Thank you for your consideration of the following additional services request for the Plaza Theatre Rehabilitation project.
In June 2024, we submitted an additional service request for the extended construction administration phase. That add service covered an increase in the construction schedule from an anticipated 12 months to 15 months when the anticipated construction completion was May 2, 2025.
The contractor has since revised the schedule to extend to November 2025 (with the opening planned for December 2025), an additional 6 months.
We are proposing additional services for the following reasons:
- An extended duration, an additional 6 months
o Additional site visits for ARG; site visit frequency increased from once a month to two or three times a month as needed, from December 2024 through March 2025 (an estimated 8 additional site visits)
- Additional unknown existing structural conditions uncovered during construction, including;
o Unknown structural conditions
o The redesign for the Restrooms was initiated because of the unknown condition of the existing water lines, which needed to be replaced - Design changes, including; Bar, and Projection Screen We propose to provide these additional services for an additional fixed fee of $161,863, per the attached breakdown.
Please let us know if you have any comments or questions on this proposal.
Sincerely,
Jason Currie
Architect, Senior Associate
Item 3A - Page 19
Architectural Resources Group
Palm Springs, CA March 11, 2025
ARG Project: 220602
Proposed Scope and Fee
Original
Contract
Fee
Previously
Approved
Additional
CA Phase
Fee
Previously
Approved 2024
adjusted CA Phase
fee
2025 Additional
CA Phase Fee
2025 Adjusted CA
Phase fee
Construction Administration- Extended Duration
ARG 179,500 $ 45,340 $ 224,840$ 65,000$ 289,840$ MCH- Acoustical 18,638 $ 13,398 $ 32,035$ 3,048$ 35,083$ AKA- Architectural Lighting 17,850 $ 2,300 $ 20,150$ -$ 20,150$ Structural Focus- structural engineers 31,500 $ 11,500 $ 43,000$ 7,590$ 50,590$ AMA Group - Mechanical, Electrical, and Plumbing Services 26,250 $ 14,375 $ 40,625$ 19,550$ 60,175$ Unknown Existing Conditions Uncovered During Construciton Structural Focus- structural engineers (unknown structural conditions) 41,400 $ 41,400 $ ARG (restroom redesign, for unknown condition of existing water lines) 6,000 $ 6,000 $ Design Revisions; Bar & Screen
ARG (Bar redesign) 6,000 $ 6,000 $
ARG (Screen redesign) 1,000 $ 1,000 $ Structural Focus- structural engineers (Screen redesign) 4,025 $ 4,025 $ AMA Group - Mechanical, Electrical, and Plumbing Services (Screen redesign) 3,450 $ 3,450 $ Lump sum Fee $273,738 $86,913 360,650$ 157,063$ 517,713$ Reimbursables (estimated)** $5,423 $2,400 7,823$ $4,800 12,623$ ToTal CA Fee (Labor+ Reimbursables): $279,161 $89,313 $368,473 $161,863 $530,336 Notes
Theatre Projects- theatrical and A/V (under separate contract directly with Foundation)
Includes ARG's administrative fee 15% markup on consultants **Reimbursables may include, but are not limited to communication, delivery, postage, travel, and research fees.
220602 Plaza Theatre - Additional CA Phase Sevices
Y:\Projects\22_PROJ_LA\220602 Plaza Theatre Palm Springs\00_general\Fee_Proposals\2025 additional services for CA phase\2025-0115 Plaza Theatre Additional CA Phase Services FEE PROPOSAL V2.xlsx Item 3A - Page 20
STANDARD BILLING RATES
1. Direct personnel expense shall be billed at the following rates, including time for meetings, public meetings, and presentations:
Principal $260 to $330/hour
Senior Project Manager $200 to $250/hour
Project Manager $180 to $210/hour
Senior Architect $190 to $240/hour
Architect 3 $180 to $210/hour
Designer 3 $175 to $210/hour
Historian/ Planner 3 $175 to $210/hour
Conservator 3 $175 to $210/hour
Architect 2 $165 to $175/hour
Designer 2 $155 to $170/hour
Historian/ Planner 2 $155 to $170/hour
Conservator 2 $155 to $170/hour
Architect 1 $145 to $160/hour
Designer 1 $145 to $150/hour
Historian/ Planner 1 $145 to $150/hour
Conservator 1 $145 to $150/hour
Intern $100 to $140/hour
Administrative Personnel $100 to $140/hour
2. Reimbursable Expenses shall be billed at cost plus 15% and shall include the following:
a. Reproduction costs such as printing or duplication of drawings, specifications, and written reports. b. Lodging, subsistence, and out-of-pocket expenses for authorized travel in connection with work. c. Travel: (including local) IRS allowable rate plus tolls and parking, or cost of air travel. d. Special teleconference or database access charges.
e. Cost of models, special renderings, photography, special process printing, special printed reports or publications and maps.
f. Postage and delivery charges.
g. Professional consultants retained with client approval. h. Specialized equipment rental (required by the project).
3. Equipment Use Fee of $300 shall be charged for specialized equipment like the Thermal Imaging Camera, 3D Camera, or Binocular Microscope.
4. Rates shall increase 5% each year until the project is completed.
5. Rates effective January 1, 2025 thru December 31, 2025.
Item 3A - Page 21
CITY COUNCIL STAFF REPORT
DATE: MARCH 27, 2025 BUSINESS & LEGISLATIVE
SUBJECT: PALM SPRINGS CONVENTION CENTER INITIATIVES SUMMARY AND
OVERVIEW
FROM: Scott C. Stiles, City Manager
BY: Wayne Olson, Chief Economic Development Officer
EXECUTIVE SUMMARY:
Several initiatives are underway in and around the Palm Springs Convention Center District (PSCC). They include:
• Master planning and district improvements evaluation; • PSCC facility renovation and enhancement of the facility; • Review and urban redesign of “connectors,” the roadways and pedestrian access between the PSCC and downtown;
• On January 23, 2025 The City Council directed the City Manager to gather a working group of stakeholders to move the PSCC and other district projects forward;
• On March 17, 2025 an RFP was released for the Operation and Management of the PSCC and Palm Springs Tourism;
• Evaluation of the hospitality resources in and around the PSCC; • Financial and fiscal analysis and modeling of revenue structures to pay for the associated costs of these initiatives.
This report will summarize and elaborate on each of these and other relevant topics.
BACKGROUND:
The original Palm Springs Convention Center was completed and dedicated December 31, 1987 and contained approximately 110,000 square feet. Future additions are detailed below. The site upon which the Convention Center and the East Parking Lot are located is leased pursuant to a ground lease with allottees of the Agua Caliente Band of Cahuilla Indians ((PSL-315) February 28, 1984 ). The term of the Ground Lease expires on December 31, 2083. The City makes payments to the allottees in the amount of $1.7M annually.
Item 3B - Page 1
City Council Staff Report
March 27, 2025 -- Page 2
Palm Springs Convention Center Overview
To date, the PSCC has been operated and managed by the City’s management company, ASM Global (AEG Management Palm Springs, LLC), a subsidiary of Legends, a major sports venue management company with facilities worldwide. The City’s convention center consultant, CSL, is now also owned by Legends and therefore future PSCC consulting work is being handled by Conventi onal Wisdom, a convention center consulting firm. ASM Global also manages Palm Springs Tourism, the group responsible for the marketing of Palm Sp rings to our drive markets as well as to our larger markets both nationally and internationally.
The adjacent Renaissance Hotel, a 410 -key Marriott branded convention style hotel is also located on the PSL-315 lease, however their lease is governed by a sub-lease to the Ashford Group, the ownership group of the hotel, for which the City receives $1.3M annually. The Renaissance is managed by Remington Group, a subsidiary of the Ashford Group. Other nearby hotels are private hospitality projects and include the under - construction Dream Hotel, a Hyatt brand resort, with 156 keys and 57 condo-hotel rooms (projected completion 2027) and the Nexus-planned project for 125 keys and 135 condo hotel rooms (Prairie Schooner site).
PALM SPRINGS CONVENTION CENTER
As mentioned earlier, the original Convention Center was completed and dedicated December 31, 1987 and contained approximately 110,000 square feet. In 1992, the City completed an expansion of the facility. In 2006, the City added another 115,000 square feet expansion of the Convention Center that resulted in the current total building area of 261,000 square feet and another 35,000 square feet of outdoor function area. The square footage by purpose of the Convention Center space is summarized as follows:
Space Square Footage (appx)
Exhibit/Convention Space 112,000
Meeting/Function Rooms 31,000
Food Service 10,000
Support/Circulation 108,000
Total (excluding outdoor areas) 261,000
Jackie Lee Houston Plaza 20,000
East Lot Parking Lot 386,000
Total Outdoor space 405,940
Total gross sf 667,940
The City’s objective in originally building and expanding the Convention Center was to support and enhance the tourist and convention business. Looking ahead, by 2030, Palm Springs’ aspiration is to be the desert's premier center for commerce, community an d culture by:
Item 3B - Page 2
City Council Staff Report
March 27, 2025 -- Page 3
Palm Springs Convention Center Overview
• Leading the way in immersive event technology and sustainable flexible spaces, attracting diverse indoor and outdoor gatherings that exceed visitor expectations; • Creating a lively, pedestrian -friendly district that celebrates local art, culture, and mid-century architecture while offering seamless access to dining, shopping, and community experiences;
• Developing an integrated campus with exceptional accommodations and cutting - edge event venues, designed to elevate every occasion;
• Serving as a driving force for regional economic growth, generating tax revenues to support infrastructure investments for sustained competitiveness, and to establish strategic partnerships that promote cultural exchange and benefit Palm Springs residents and businesses.
O&M AGREEMENT:
On July 27, 2019, the City executed an agreement with AEG Management Palm Springs, LLC (now ASM Global) for operation and management services with a term of 5 years from the effective date, defined as 60-days from the City’s date of execution. An additional year was added to the contract due to COVID. AEG’s contract therefore expires on September 29, 2025.
The agreement also includes management of the Palm Springs Bureau of Tourism. The City pays ASM Global approximately $2.6M annually to provide tourism services via staff assigned from Visit Greater Palm Springs as well as their own internal staff. The operation and management of the two visitors centers are also included in the agreement which include the Welwood Murray Memorial Library (100 S. Palm Canyon Dr.), and the Palm Springs Visitor Center (2901 N. Palm Canyon Drive).
In addition to the acquisition of ASM Global Corporation by Legends, several other changes in the industry have occurred since the last contract was drafted in addition to the mergers and acquisitions detailed above. Staff recommended that with the pending expiration of the contract that the services be let for bid to the greater market.
On October 24, 2024, the City Council authorized staff to issue a Request for Proposals (RFP) for the Operation and Management contractor, given the pending expiration of the current management contract. The RFP was released on March 17, 2025. The RFP covers several obligations the O&M contractor will comply with including booking of the convention center, maintenance of the facility, management of the facility during construction or declared emergency, and vendor contracts (i.e., food service).
A panel of City employees and relevant industry participants will be convened to interview and review the applications of respondents. A recommendation for the PSCC operation and management vendor is slated to be brought to the City Council for approval in late Item 3B - Page 3
City Council Staff Report
March 27, 2025 -- Page 4
Palm Springs Convention Center Overview
May of 2025. In the time between the selection and expiration, the new contract will be finalized.
FUTURES STUDY & MASTER PLAN:
In Late 2023, Convention Sports and Leisure (“CSL”), a national convention center consultant, and subsidiary of Legends (the parent company of ASM Global) delivered a Futures Study report that indicated several changes to industry trends, which concluded that a master plan and upgrades were warranted for the PSCC to keep pace with the emerging trends. Immediately following the PSCC Master Plan was developed by HMC Architects, a sub-contractor of ASM Global.
The Palm Springs Convention Center Master Plan presents a comprehensive strategy for the revitalization and expansion of the current facility. The plan was the result of consideration of the evolving requirements of the local community, the dynamic event industry, and the regional economy as identified in the CSL Futures Study. The master plan “envisions positioning the Convention Center as a world -class venue that not only serves as a central hub for events but also plays a pivotal role in stimulating econ omic growth, fostering tourism, and enhancing community.”
The Master Plan calls for a complete rehaul of the interior of the PSCC and includes redevelopment of outdoor space to maximize programming when season allows. A list of projects includes:
• Interior exhibit, hallway and meeting room space refresh • West lobby and connecting corridor refresh
• Restroom refresh
• New east building addition which includes Oasis 4 interior access • Replace mechanical, including roof, chiller and all doors and hardware • Kitchen improvements
• Landscaping and exterior site improvements including updates to Jackie Lee Houston Plaza and the “east lawn patio”
• Exterior paint and signage.
Recognizing the importance that public art plays in the City of Palm Springs, the current analysis does not include public art as part of the overall plan and should be incorporated early into design so that both budget and scope can be considered as part of the overall plan.
The work by CSL and HMC Architects includes recommendations to identify the area as a “district” and suggests enhanced pedestrian connectivity to downtown to and from the Convention Center on several street corridors. No recent design has been developed for this concept; however, the area is governed by the Section 14 Specific Plan which includes a section on “Smart Streets.” The recommendation is for shaded walkways, Item 3B - Page 4
City Council Staff Report
March 27, 2025 -- Page 5
Palm Springs Convention Center Overview
streetscape, reduction in vehicular traffic, public art and an overall enhanced and improved experience for conventioneers and visitors to get to and from the convention center to eat, shop and entertain in downtown.
CURRENT AND FUTURE CAPITAL PROJECTS PROGRAM:
Several PSCC update projects have been undertaken already by ASM Global on behalf of the City. Those include removal and replacement of the carpet in the trade show floor and ballroom, remove and replace lighting systems in areas of the building, building automation systems and network infrastructure upgrades. In addition, the east and west LED marquees were replaced. These projects were funded in part by capital reserves and Measure J dollars committed at earlier dates.
In late 2024, staff worked with ASM Global and HMC to develop a capital improvement schedule which provided both details of the future projects as well as order of magnitude cost estimates. The overall PSCC facility upgrade project was projected to be arou nd $100M which included the owner’s soft costs, owner’s contingencies and inflationary adjustments due to the time projected for improvements.
The initial projects capital program envisioned projects lasting 8 -9 years; however, in its January 23, 2025 meeting the City Council directed the City Manager to create a stakeholder working group to accelerate that process and shorten the timeline of improvements. The net effect of an “accelerated project” conducted over 3 -4 years is a reduction of nearly $7M of public costs from the 8–9-year schedule.
The HMC scope of the improvements include only the PSCC facility and grounds since this is the only asset that ASM Global is contractually responsible for. Therefore, the connectors (i.e., street improvements) still require updated urban design, and the need for additional hospitality product should be analyzed by contracting a feasibility analysis.
The PSCC capital schedule and improvements sequencing was provided at a recent City Manager’s workgroup and found in Attachment A.
CITY MANAGER’S WORKING GROUP:
At the direction of the City Council from its January 23, 2025 meeting, the City Manager has convened working group meetings that include hospitality, convention and tribal stakeholders. It meets ad hoc to discuss the PSCC enhancement project, the “connectors” street project(s), as well as potential hospitality projects within the area.
Several workgroups have been identified and include topics covering:
• Urban design
• City Project Management
• TBID/TOT Analysis
Item 3B - Page 5
City Council Staff Report
March 27, 2025 -- Page 6
Palm Springs Convention Center Overview
• PSCC Design/Construction
• Finance and Budget
The workgroups are responsible for gathering relevant information regarding their topic and reporting back to the larger working group to keep the project progress on schedule.
In the last meeting, it was concluded that the City may benefit from the services of an “Owner’s Representative” to oversee a to -be-developed implementation plan that will guide the district improvements over the next several years.
The City has contracted with Conventional Wisdom for convention center consulting services, including recommendations for the O&M RFP process. Conventional Wisdom is currently in the process of peer reviewing the documentation provided by all of the City’s PSCC consultants. They will recommend an implementation guide once that peer review is completed.
Under his current procurement rules, the City Manager has the authority to expand that scope to a not -to-exceed amount of $150,000 to include implementation planning and strategic communications services. However, the services will likely require an RFP fo r future services once the not -to-exceed amount is reached later in early calendar -year 2026. Due to limited staff resources for a project of this scope and complexity, the City requires ongoing Owner’s Representation services and therefore may require tha t Council consider conducting an RFP for these services once the not -to-exceed limit is reached.
FISCAL OVERVIEW:
The original PSCC construction was funded by a lease revenue bond. Subsequently, the City’s Financing Authority has conducted several refinancings, the most recent being in 2021 in which it issued a new round of bonds . Current debt on the building is $47.765M (as of June 2025) that results in about $4.665M in annual debt service, fed by the lease income of the property (the City makes lease payments to the City’s Financing Authority, the board of which is comprised of the sitting City Council). And, in orde r to meet the obligations of the current debt, the PSCC must remain operative and open in some capacity throughout the improvement project’s timeline.
To date, no additional City revenue has been approved for the project. However, in order to fund the project, it is likely the City will require debt financing (i.e., new bond issuance(s)) in order to cover the costs of the PSCC and district improvements. Early order-of-magnitude budgeting of the PSCC improvements are currently projected at approximately $93M as of this report. The costs will fluctuate depending on project scope and current and future pressure on construction costs (including international tariffs, as well as regional labor and supply pressure from the Palisades and Altadena fires).
In the meantime, staff, along with a consulting team of Harrell Associates and Conventional Wisdom, is evaluating and identifying several potential sources for future Item 3B - Page 6
City Council Staff Report
March 27, 2025 -- Page 7
Palm Springs Convention Center Overview
PSCC and district improvement funding options. To date, several potential revenue sources have been evaluated including:
• Measure J proceeds beyond current obligations (i.e., community -based projects, the City’s CIP, and future debt for a library and fire station); • Measure A funds for connector project(s);
• Revenue “capture” mechanisms such as infrastructure financing districts, tourism business improvement districts and transient occupancy taxes; • City’s general fund
• Project based incremental revenue (such as TOT for hotel renovations or new construction).
Several months of additional investigation, analysis and financial modeling will be required to gather a deeper understanding of the funding required for the PSCC project costs, the scope of the connector projects and the feasibility of hotel expansion opportunities in the area. In addition, staff needs to make updates to the current Hotel Incentive Program ordinance (Muni Code 5.26.00) and expects to bring that for review by Council in the next 90 days.
The City Council can expect that with a project of this scope and complexity that future debt financing and budgets may differ from costs identified in this early development stage. Additionally, other potential requests from the owner (i.e. the City), community feedback and to -date, unidentified public art improvements will have impact on overall project budget.
If the City Council continues to direct staff to proceed with the project, a series of future reports will investigate and describe specific fiscal impacts to the City’s budget depending on the sources, uses and instruments of financing.
ECONOMIC IMPACT:
CSL conducted an updated economic impact evaluating the difference in impact among three potential scenarios (presented to the Council in late 2024). Those scenarios include:
“Do nothing” (i.e., continue to operate the facility as -is; “Partial improvements ” (i.e., implement the “lower tier” improvements such as interior improvements that do not include outdoor reprogramming or a new east entrance); and “Full investment” which is the entirety of the improvements required to modernize the facility and distric t (including a new headquarters hotel).
The estimated impact of each scenario is listed on the following page:
Item 3B - Page 7
City Council Staff Report
March 27, 2025 -- Page 8
Palm Springs Convention Center Overview
Scenario Conventioneer direct
spend projections ($44.5M in 2023)
Jobs
(892 in 2023)
“Do nothing” $43M (-3.4%) 842 (-5.6%)
“Partial investment” $57.2M (28.5%) 1118 (25.3%)
“Full investment” $66.6M (49.7%) 1302 (46.0%)
Additional economic impact analysis should be conducted to ensure PSCC and district project costs and feasibility analysis for hospitality supply are up to date throughout the life of the project(s).
SUMMARY:
The Palm Springs Convention “District” requires several improvements and processes over the next several years for the City’s investment to remain relevant to future convention markets. Approximately $100M of improvements are required at the PSCC facility and grounds, and additional funding will be required for the public infrastructure “connectors” recommended by the future study and master plan.
For now, the City Manager’s working group is overseeing gathering background and information require Owner’s Representation oversight is required now and over the next several years to manage all of the improvements contemplated, which include:
• A comprehensive implementation plan;
• An updated, enhanced convention center facility;
• Updated and enhanced grounds for new programming space and an expanded conventioneer and visitor experience;
• Updates to connecting infrastructure including streetscape, public art and enhanced pedestrian experience of East Tahquitz Canyon Way, E Andreas Road, E Amado Road and East Alejo Road between downtown and the Convention Center;
• Renovation and possible new supply of headquarter convention center hospitality rooms, including updates to the City’s Hotel TOT Incentive Program (Muni Code
5.26.00);
• Continued cooperation and coordination with Tribal partners for any updates to the Section 14 specific plan, as well as future Tribal investments in the area; • Opportunities for comprehensive community input and communication at the commission, stakeholder and citizen levels; and
• Financial and fiscal analysis of funding structures and subsequent reporting.
No staff recommendation is being made at this time.
Item 3B - Page 8
City Council Staff Report
March 27, 2025 -- Page 9
Palm Springs Convention Center Overview
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environme nt, or a reasonably foreseeable indirect physical change in the environment. The requested action is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
1: Quality of Life; 1D – Economic Development & 2: Community Infrastructure; 2A Improve City Facilities.
REVIEWED BY:
Department Director: Wayne Olson
City Manager: Scott Stiles
ATTACHMENTS:
A. Capital Improvement Sequencing Overview
Item 3B - Page 9
ATTACHMENT A
Item 3B - Page 10
MODERNIZATION & ADDITION:
SCHEDULE & SEQUENCING
PALM SPRINGS CONVENTION CENTER
MARCH 11, 2025
Proudly Managed By
Item 3B - Page 11
CONSTRUCTION SEQUENCING DIAGRAMS02
RENDERINGS03
PROJECT COSTS04
AGENDA
PROJECT SCHEDULE01
Proudly Managed By
Item 3B - Page 12
DESIGN
Mc FOR
H GOOD
Architects
PROJECT SCHEDULE
Proudly Managed By
Item 3B - Page 13
DESIGN
Mc FOR
H GOOD
Architects
Task Name Duration Start Finish
Design 12 Months July 2025 June 2026
Plan Check 4 Months June 2026 Sept 2026
Bidding 2 Months Sept 2026 Nov 2026
Construction – Sequence 1 18 Months Nov 2026 April 2028 Construction – Sequence 2 12 Months April 2028 Mar 2029 2025 2026 2027 2028 2029
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M Design
Plan Check
Bidding
Construction Sequence 1
Construction Sequence 2
March 11, 2025
Item 3B - Page 14
CONSTRUCTION SEQUENCING DIAGRAMS
Proudly Managed By
Item 3B - Page 15
DESIGN
Mc FOR
H GOOD
Architects
CONSTRUCTION SEQUENCING
• Single Construction Phase Prioritizes
Improvements over a Shorter Timeframe
• Sequencing Allows for Facility to Remain
in Operation During Construction
• 2 Construction Sequences:
• Total Construction Duration – 30 Months
• Sequence 1 (East) – 18 Month Duration
• Sequence 2 (West) – 12 Month Duration
Item 3B - Page 16
SEQ 2 SEQ 1
SEQ 2 SEQ 1
Item 3B - Page 17
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SEQ 1
18 MONTHS
Item 3B - Page 18
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AVAILABLE FOR USE
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Item 3B - Page 19
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Item 3B - Page 20
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PRIMROSE
BALLROOOM
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CONNECTING CORRIDOR
EXHIBIT HALL
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MEETING ROOM JI,...,. ,:.,l , __ M_E_ET_i_NG_R_o_o_M __
RENDERINGS
Proudly Managed By
Item 3B - Page 21
DESIGN
Mc FOR
H GOOD
Architects
RENDERINGS
• Preliminary Conceptual Visualizations
• Additional Visualizations and Detailed
Design & Specifications will Occur During
Future Design Phases
Item 3B - Page 22
NEW EAST ENTRY & PLAZA ADDITIONS
Item 3B - Page 23
NEW EAST ENTRY & PLAZA ADDITIONS
Item 3B - Page 24
MODERNIZED CORRIDOR
Item 3B - Page 25
MODERNIZED EXHIBIT HALL
Item 3B - Page 26
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PROJECT COSTS
Proudly Managed By
Item 3B - Page 27else'M
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~~~~~~:~N CENTER
DESIGN
Mc FOR
H GOOD
Architects
PROJECT COSTS
Project # Description Project Cost
A Current Capital Improvements $ 3,311,429
B Comprehensive Modernization & Addition $ 88,318,330 Total Cost $ 91,629,759
Item 3B - Page 28
PROJECT COSTS
Year Cost
FY2024 $ 1,374,243
FY2025 $ 1,937,186
FY2026 $ 5,299,100
FY2027 $ 27,378,682
FY2028 $ 27,757,189
FY2029 $ 27,883,358
Total $ 91,629,759
Delta $ 6,994,725
Item 3B - Page 29
Questions?
Proudly Managed By
Item 3B - Page 30
TOURISM IMPROVEMENT TAXES
Item 3B - Page 31
TOURISM IMPROVEMENT TAXES
Tax NotesTotal TaxConvention
Center TaxTourism Improvement Tax/AssessmentTOT/TLTCity
12.5%No2% TMD (Tourism Marketing District -
Applied on properties with 70+ Rooms
10.5% - all lodging
accommodations including short
term rentals, RV Parks and
Campgrounds
San Diego
17.95%
2.2% ATID (Anaheim Tourism Improvement
District). Soon to be 2.95% -
on hotels within
it's boundaries. (94 hotels in total)
15%Anaheim
16%
3% LBTBIA (Long Beach Tourism & Business
Improvement Area) - In addition to TOT,
some hotels and motels are subject to an
additional assessment if they are located
within the Long Beach Tourism and
Business Improvement Area (LBTBIA). Only
30+ rooms
13% - Hotels, motels, or bed and
breakfast. On stays under 30 days.
Long
Beach*
City-
wide Conference Center Finance District Fee
that is a % added on to every sleeping room in
Monterey that is used to pay City-backed bond
specific to Conference Center renovations
completed in 2018.
13.40%2.90%10.50%Monterey
Item 3B - Page 32
TOURISM IMPROVEMENT TAXES
Tax NotesTotal TaxConvention
Center Tax
Tourism Improvement
Tax/AssessmentTOT/TLTCity
18%No2.3% STIA (Seattle Tourism Improvement
Area). 60 rooms or more15.7% - 60 rooms or moreSeattle
14.15% -
16.45%No
STMD (Sacramento Tourism Marketing
District) 1.15%-3.45% depending on
what zone you are in.
STID (Sacramento Tourism Infrastructure
District) 1% - (instituted in 2018 to
provide funding for capital
improvements, specifically the
construction of a ballroom for the
convention center)
12% - all lodging under 30 days. Sacramento
Tucson does not have any convention center fees,
and no TOT/TMD taxes. Presently there is a bill in
the state legislature to allow municipalities to
develop TIAs – Tourism Improvement Districts, but if
that passes, we may or may not decide to create
one and it would be a few years away.
NoneNoNoneNoneTucson
12.57%
The City’s tax rate for Hotel/Motel
activity is 5.3% (non-transient hotel
lodging tax rate is 2.3% and transient
hotel lodging tax rate is 3%); the
combined rate (including State &
County taxes) is 12.57%
Phoenix
Item 3B - Page 33
TOURISM IMPROVEMENT TAXES
Tax NotesTotal TaxConvention
Center Tax
Tourism Improvement
Tax/AssessmentTOT/TLTCity
We have three distinct areas in our county that
participate in the assessment areas.
There are approximately 65 hotels in assessment
areas which is about half of the hotels we
represent. The convention district generates by
far the most money and is easier to develop
plans for spending the money.
6.25%No
2% SLCo CTAA (Salt Lake County
Convention and Tourism
Assessment Area) - Applied on
properties with 35+ Rooms, on
stays under 29 days.
4.25% - on stays under 30 days.Salt Lake
15.75%
1% TID (Tourism Improvement
District) - imposed on lodging with
more than 50 rooms and are
located in the city and county of
Denver.
-General Fund, Denver: 3.25%
-National Western Center & Convention Center
Bonds: 4.75%
-Denver Metro CVB: 2.75%
-Tourism Improvement District: 1%
-Cultural Facilities District: 0.10%
-Colorado State Tax: 2.90%
Denver
We have another appropriation that comes out
of TLT to support our Visitor Venues (Convention
Center, Arena, Performing Arts). 2.5% of TLT and a
matching 2.5% of the car rental tax goes toward
a Visitors Facilities Trust Account. Allocations from
this account support stadium bonds,
headquarter hotel bonds, and facilities. Travel
Portland also receives $2.5 million annually from
this account to support business buy-downs for
the convention center.
16% - 21%3% TID (Portland Tourism
Improvement District)- fee on 13% - Hotels and short-term rentalsPortland Item 3B - Page 34
How is a TBID Formed?
1. Define the Purpose & Boundaries
2. Draft a Management District Plan
3. Gather Business Support
4. City Approval Process
5. Formal Adoption
6. Imple
mentation & Administration
Item 3B - Page 35
1. Purpose & Boundaries
Identify the need for a TBID & define its
goals (e.g., increasing tourism)
Establish the proposed boundaries
(2016 TBID?)
Determine the assessment structure;
(Hotel/STVR? Restaurant? Retail?)
Item 3B - Page 36
2. Management District Plan
Boundaries of the district
Businesses subject to assessments
Assessment rates and calculation method
Services and activities funded by the TBID
Governance structure (e.g., a board of tourism)
Term length (5–10 years; but can go longer)
Collection method
Item 3B - Page 37
3. Gather Support
Collect petitions signed by businesses
representing > 50% of proposed
assessments
Petition serves as formal request City to
establish the TBID
Item 3B - Page 38
4. City Approval Process
Resolution of Intention: City Council must adopt a
resolution of intention to form the TBID
Public Notification & Hearing:
• A public hearing is scheduled
• Affected businesses are notified and allowed to protest • Majority Protest Rule:
If businesses representing more than 50% of the
assessment amount protest, the TBID cannot proceed
Item 3B - Page 39
5. Adoption
If there is no majority protest, City adopts a
Resolution of Formation, officially creating the
TBID
Assessment collection process begins as
outlined in the Management District Plan
Item 3B - Page 40
6. Administration
Establish a governing body (typically a
nonprofit or advisory board of assessed
businesses)
Start collecting assessments and funding
approved programs
Provide annual reports to the local government
on expenditures and outcomes
Item 3B - Page 41
Measure A
• .5 % Sales Tax managed by Riverside County
• All projects to be approved by Riverside County Transportation Commission (RCTC) 2025 2026 2032
Beginning Fund Balance $ 12,728,629 $ 12,537,731 $ 10,227,935 Sales and Use Taxes 3,483,495 3,553,165 4,001,441 CVAG Regional Funds - Project Reimbursement 1,970,032 4,719,112 1,929,527 Interest Income 100,000 100,000 100,000 Total Revenue 5,553,527 8,372,277 6,030,968 Road Maintenance - Striping and Stencling - Public Works 500,000 500,000 500,000 CVAG Regional Measure A 1,970,032 4,719,112 1,929,527 Loan Principal - Mesquite 10,421 10,421 10,421 Capital Improvement Projects - Road & Bridge 2,047,469 3,119,525 686,485 Capital Improvement Projects - Gene Autry Wind Wall 2,538,197 Capital Improvement Projects - Traffic Communication Upgrade 472,228 Capital Improvement Projects - Western CV Flood and Blowsand Capital Improvement Projects - Pedestrian Streets Master Plan 462,344 1,091,354 458,333 Capital Improvement Projects - Annual Slurry Seal 407,978 1,040,956 618,750 Capital Improvement Projects -Traffic Calming 346,180 775,694 229,167 Total Expense 5,744,425 14,267,489 4,432,683 Net Income: (190,898) (5,895,211) 1,598,285 Ending Fund Balance $ 12,537,731 $ 6,642,520 $ 11,826,220 Measure A Income Statement
Item 3B - Page 42
Measure J
• Downtown Revitalization - $45M (total debt service $65 M) • Annual Street Paving - $38.3 M & 103 miles paved, since inception ($9 M & 33 miles in FY24)
• Plaza Theatre Restoration (partially funded) - $7.5 M • Downtown Park - $4.1 M
• LED Lighting at Park Recreation Fields - $4.7 M
• Police Department Renovation - $3.4 M
• Fire Station #4 Renovation - $1.4 M
• Main Library Renovation -
• Demuth Dog Park Improvements - $2.5 M
• Public Safety Computer Aided Dispatch - $2.75 M
• Pickleball Court renovation at Demuth Park - $2.6 M
• Future Airport Projects – currently $3 M set aside
• Victoria Park & Ruth Hardy Park Restroom Upgrades - $1.6 M Item 3B - Page 43
PSCC APPRAISAL
Must Have Use and Occupancy of Sufficient SF of
Facility to Support Lease Payment
Annual Lease Payment is $4,665,000
Determine Fair Rental Value (FRV) of portions of facility to be closed by Appraisal or by other reasonable method
Appraisal of FRV likely to take 90 days and still may not show support for total closure
Other reasonable method:
Maximum Daily Rental of all rentable space x Rental Days = Fair Value Rent
Debt Service/FRV = Portion of Facility to Remain Open
Likely Exceptions Allowed:
Closure less than 6 months
City appropriates lease payment in advance of closure
Subject to Bond Counsel approval
Item 3B - Page 44
1876 |May 15
Agua Caliente Reservation was established by President Ulysses S.
Grant. Originally Section 14 & the northeast ¼ and east ½ of the southeast ¼ of Section 22, T4S, R4E.
Reservation was expanded by President Rutherford B. Hayes to t
he even number sections in three townships (odd numbers were previously granted to the railroad).
1877 |September 29
Item 3B - Page 45
Riverside County
City of Palm Springs
City of Rancho Mirage
City of Cathedral City
Item 3B - Page 46
1973
Riverside County
City of Palm Springs
WHY IS LAND STATUS
IMPORTANT?
Determines land use jurisdiction,
authority, and procedures
Identify lands that are:
• Beneficially owned by the Tribe
• Beneficially owned by Allottees
• Represented by the Bureau of Indian
Affair
s
• Now in Fee (private) ownership
• Subject to Tribal or City jurisdiction
Item 3B - Page 47
WY S LA D STA US
MPORTANT?
De er ·nes land use • risdiction
a
1 tho ity a d proced res
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P+-
19 30
18 19
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31 28---------
32 33
17 16 15 14
20 21 22 23
29 28 27 26
32 33 35
34 36
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111
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12 13
24 IJ 6
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36 31
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25-
35 36
AGUA CALIE:NTE: INDIAN RE:<iE:R\JATION
RIVERSIDE COUNTY, CALIFORNIA
LAND STATUS AS OF 2024
c::J c,ryorCou11tyBour1da ry
LJ Ai iotte<lar>dNot l ease<l
LJ Ai rone<lar>d l e ased
□ ,~
□ Triba l
LJ r ri bal Outs,deRese rvonon
14 Reserva11on Sections
r Tarnar,.,kRd
Enlargement of Sections
9, 70, 75, & 76, T3S R3E
Land Under Tribal Jurisdiction
Beyond Reservation Boundary
N
.J?r
0 0.5
Mi les
Enlargement of Section 79, T45 R6E
City is Tribe’s agent on Allotted Trust land
City collects fees to cover costs
City consults with Tribe
Decisions can be appealed to Tribal Council
1977 TRIBAL-CITY
LAND USE AGREEMENT:
DELEGATION OF TRIBAL AUTHORITY
Item 3B - Page 48
CALii
• •
~ ~ ¥:
CAHU\\.'J
30-day notice to cancel ... 48 years strong
Only 23 appeals since 1977
Color Land Status
Green Fee/Private
Blue Agua Caliente
Tribal Government
Yellow Allotted & Leased (BIA)
Pink Allotted & Not Leased (BIA)
Item 3B - Page 49
AGUA CALIE:NTE: INDIAN RE:~E:R\JATION
T4S, R4E, Section 14
Convention Center 81 Surrounding R/O/Ws
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._I /•,ll~necl • Not Le3sed
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iiiiiil It.:,,,~,.,,:.,,
CREATION OF A
CONVENTION
CENTER
DISTRICT:
o DESIGN
o CONNECTION
o FINANCE
Item 3B - Page 50
LAND USE CONCEPT
Vision Agua Caliente
Master Plan
Land Use Coordination
Development of Tribal Government land
Land Use Coordination Agreement:
Tribe develops project
Tribe retains authority
City provide recommendations
Item 3B - Page 51
Item 3B - Page 52
AGUA CALIENTE INDIAN RES'ER\IATION
T4S, R4E, Section 14
Convention Center & Surrounding R/O/Ws
~ Allotted - Leased
~ Allotted - Not Leased
~ Fee
~ Tribal
... \\GIS\Project_Files\Planning-General\APRXs\T4SR4E_Sec14\Convention_Cenler_ROWs\Convention_Center_ROWs.aprx ~ Street R/O/W
~ Street Vacation
~ Additional R/O/W Needed
N
+
0 50 100 200 300
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Agua Caliente Band of Cahuilla Indians
GIS Depart ment
5401 Dinah Shore Drive Palm Springs CA, 92264
(760) 883-1937
Boundary data in this map is for representation purposes only.
It does not cover questions of location which a survey map may disclose.