Palm Springs City Council
November 12, 2025

o If an employee is diagnosed with Valley Fever, a physician must determine if the employee should be taken off work, when they may return to work, and what type of work activities they may perform.

Standard dust control measures are insufficient for preventing Valley Fever exposure, and only concrete, enforceable steps like those listed above will safeguard both onsite workers and surrounding communities. The City should adopt these evidence-based mitigation measures, which are proven to be effective in similar construction projects in Valley Fever-endemic areas, in an EIR to ensure comprehensive protection of public health.

Response 6:

The commenter’s assertions are noted. However, since Riverside County comprises a population of 2.5 million people, and according to the map below produced by the CDC, Riverside County experiences 0-5.9 cases of Valley Fever per 100,000 population annually, there is no evidence that Valley Fever is a significant health risk in Palm Springs.

Furthermore, the commenter fails to point out that Valley Fever cases in Riverside County have gone down, from 206 in 2023, to 181 in 20241.

According to the federal CDC, there has been no
outbreak of Valley fever in the Coachella Valley (or
in Palm Springs) between 1940 and 2015, as shown
in this published map.
2 Therefore, although the
commenter makes claims that Valley Fever is a
significant health issue in Palm Springs, the
evidence they provide is not supported by fact.

Valley Fever is not a significant health issue in Palm
Springs, and the MND requires no amendment.
1 CDPH, Cumulative Reported Suspect, Probable, and Confirmed Annual Cases of Coccidioidomycosis by Local Health Jurisdiction and Year of Estimated Onset, California, 2022-2024 2 https://www.cdc.gov/fungal/diseases/coccidioidomycosis/maps.html

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Comment 7:

3. The Air Quality Analysis Incorrectly States that the Construction Phase Does Not Exceed the Local Significance Thresholds (LSTs).

The IS/MND’s air quality analysis wrongly claims that the construction phase will not exceed the LSTs. Dr. Clark demonstrates that this claim is erroneous. Therefore, an EIR is required to address the health risks posed by emissions exceeding the LSTs.

The IS/MND states that:
“The nearest sensitive receptor is Plaza Villa, located 86.94± feet across E. Andreas Road to the north. The analysis shows that both construction and operational emissions will not exceed localized significance thresholds. Therefore, sensitive receptors in proximity to the project site, including residents at Plaza Villa, will not be adversely affected by air emissions during either phase. No further mitigation measures are required . . . “[b]ased on the Project’s proximity to existing housing, the 5-acre site tables at a distance of 25 meters (nearest measurement option in LST table) were used for LST analysis. Table 4 shows on- site emission concentrations for Project construction and operation will not exceed LST thresholds. Overall, the impacts will be less than significant.”
However, Dr. Clark observes that in Table 4 of the IS/MND, the City’s LST analysis shows that there are exceedances of the LST for both PM10 and PM2.5. Clearly, the construction phase will result in emissions of particulate matter above the site specific LSTs. The City must correct this flaw in an EIR and additionally prepare a site-specific health risk analysis to ensure the safety of sensitive receptors identified by the City in the IS/MND.

Since the Project will have air emissions of PM10 and PM2.5 that exceed adopted LST thresholds, the Project will have significant air quality impacts that must be analyzed and mitigated in an EIR. When a project exceeds a duly adopted CEQA significance threshold, as here, this alone establishes substantial evidence that the project will have a significant adverse environmental impact. Indeed, in many instances, such air quality thresholds are the only criteria reviewed and treated as dispositive in evaluating the significance of a project’s air quality impacts. (See, e.g. Schenck v. County of Sonoma (2011) 198 Cal.App.4th 949, 960 [County applies Air District’s “published CEQA quantitative criteria” and “threshold level of cumulative significance”]; see also Communities for a Better Environment v. California Resources Agency (2002) 103 Cal.App.4th 98, 110-11 [“A ‘threshold of significance’ for a given environmental effect is simply that level at which the lead agency finds the effects of the project to be significant”].) The California Supreme Court has shown the importance an air district significance threshold has in providing substantial evidence of a significant adverse impact. (Communities for a Better Environment v. South Coast Air Quality Management Dist. (2010) 48 Cal.4th 310, 327 [estimated emissions in excess of air district’s significance thresholds “constitute substantial evidence supporting a fair argument for a significant adverse impact”].) Since expert evidence shows the Project will exceed the SCAQMD’s LST significance threshold, there is substantial evidence that an “unstudied, potentially significant environmental effect[]” exists. (See Friends of Coll. of San Mateo Gardens v. San Mateo Cty. Cmty. Coll. Dist. (2016) 1 Cal.5th 937, 958.) An EIR is required to analyze and mitigate these impacts.

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Response 7:

The comment is substantially the same as Comment 3 of the commenter’s January 31, 2025 letter, which was addressed in the Response to Comments prepared for the Planning Commission. Response 3 of that letter stated:

The comment correctly notes that the Initial Study (Table 4) indicates PM10 and PM2.5 emissions would exceed LST thresholds. However, the emissions presented in the Initial Study contain inaccuracies that were previously overlooked. The initial CalEEMod model run failed to properly apply standard dust control measures during the grading and material hauling phase, leading to incorrect and inflated emission estimates. A corrected CalEEMod model run, incorporating the standard dust control measures, shows PM10 and PM2.5 emissions below LST thresholds. Consequently, the Project’s impacts remain less than significant, and an EIR is not required for further analysis or mitigation. The corrected CalEEMod model run and detailed report is provided in Appendix B of this document.

Below is a screenshot of the revised Table 4 showing no LST exceedances:

The corrected PM10 and PM2.5 construction emissions were also updated in Table 2, as shown in the screenshot below:

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Therefore, the IS was corrected prior to the Planning Commission, the above Response was provided to the Planning Commission prior to its deliberations on the matter, and the IS does not require any further amendment, impacts remain less than significant, and no EIR is required.

Comment 8:

4. The City’s Air Quality Analysis Fails to Include a Quantitative Health Risk Analysis of the Impacts of Toxic Air Contaminants from the Construction Phase And Operational Phase of the Project for the Nearest Sensitive Receptor(s).

The determination of a significance threshold for construction activities and operational activities is based on a quantitative risk analysis that requires the City to perform a multistep, quantitative health risk analysis for toxic air contaminants (TACs) from the construction and operational phases of the Project. No effort is made in the IS/MND to quantify the potential health impacts from TACs generated by construction activities or operational activities from the Project on these sensitive receptors. Given that the closest receptor to the Project site is the residence located less than 25 meters from the edge of the Project Site, there is sufficient evidence to warrant a quantitative analysis of the potential health risks to the residents.

In addition to TACs from diesel exhaust (assumed to be diesel particulate matter or DPM), the California Air Resources Board’s (CARB’s) analysis of tailpipe emissions shows that in addition to simple alkane hydrocarbons, the emissions also contain benzene (human carcinogen), 1,3- butadiene (human carcinogen), ethylbenzene (human carcinogen), toluene (neurotoxin), acetaldehyde (respiratory irritant), and formaldehyde (human carcinogen), and other air toxins.

These air toxins make up approximately 22% of the total organic gases (TOGs) emitted from vehicles. Dr. Clark concludes that the majority of emissions of these compounds from the surrounding sites to the Project site will be associated with passenger vehicles, resulting in significant human exposure to the above chemicals.

The inherent toxicity of TACs requires the City to first quantify the concentration of each TAC released into the environment at each of the sensitive receptor locations through air dispersion modeling, calculate the dose of each TAC at that location, and quantify the cancer risk and hazard index for each of the chemicals of concern. Following that analysis, then the City can make a determination of the relative significance of the emissions. The results should then be presented in an EIR prior to approving any agreements with the Proponent or issuing any permits for the Project.

The City did not perform this analysis, and thus lacks supporting evidence for its conclusion that the emissions from the Project would not result in significant health effects. The City’s failure to perform such an analysis is clearly a major flaw in the IS/MND, and further analysis via an EIR is warranted.

Response 8:

The commenter provides no substantial evidence that the Project will generate either DPM or TAC to levels which would increase cancer risk. On the contrary, as demonstrated in the Initial Study, pages 35 through 41, the Project will not generate any emissions which approach the

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SCAQMD’s thresholds for the preparation of an HRA. Pursuant to Rule 1401, 1401.1, and 212 of the SCAQMD rulebook, the District requires the preparation of an HRA for specific facilities associated with high levels of toxic air contaminants. To reduce exposure to toxic air contaminants (TACs), CARB recommends minimum separation distances between new sensitive land uses, such as residences, and eight categories of existing sources of TACs: hightraffic freeways and roads (100,000 trips per day), distribution centers, rail yards, ports, refineries, chrome plating facilities, perchloroethylene dry cleaners, and large gas stations. As shown in the Traffic Impact Analysis prepared for the Project, Tahquitz Canyon experiences average daily traffic (ADT) volumes of up to 10,100 trips, and Calle El Segundo 5,300 trips per day. This represents only a fraction of the volume which would require the preparation of an HRA under SCAQMD’s guidance. The preparation of an HRA is therefore not required. Also see Table 4 in Response 7.

The Project will not exceed local significance thresholds under either construction or operation conditions. Therefore, the MND does quantify the potential impacts to surrounding sensitive receptors, and provides quantified results which clearly demonstrate that surrounding sensitive receptors will not be significantly impacted by construction or operation of the proposed Project.

Comment 9:

5. The Air Quality Analysis Fails to Include DPM Emissions from the Fire Pumps and/or Back-Up Generators that Will Be Installed Onsite.

The Air Quality Analysis in the IS/MND fails to include the fire pumps that will be required for the Project as well as the back-up generator (BUG) that will need to be included for the Project. A review of the South Coast Air Quality Management District’s (SCAQMD’s) FIND website shows that the Hilton Palm Springs, immediately west of the Project Site, and of a similar size to the Project has an active permit from SCAQMD for a BUG. Fire pumps are powered generally by diesel powered BUGs. BUGs are allowed to operate up to 200 hours per year for testing and maintenance. The operation of a 500 horsepower (hp) backup generator operated for an hour will add up to 0.12 pounds of DPM per day. A 150 hp fire pump operating for one hour will add

0.04 lbs. of DPM per day. However, these factors are not included in the IS/MND’s estimate of DPM in the air quality analysis or health risk analysis. This additional DPM output could result in significant impacts. Therefore, an EIR is required for the City to update the air quality analysis to include the use of BUGs and fire pumps in the Project.

Response 9:

See Response 8. The hotel and residential use does not meet any of the definitions of uses for which a Health Risk Assessment is required, because a hotel use does not generate significant operational TACs or DPM. The Project may include a fire pump and an emergency generator, but by definition, both are operated only in emergencies, or for a few hours per year for testing and maintenance. As a result, their emissions would not increase daily emissions of criteria pollutants, as calculated for SCAQMD thresholds, and would not significantly increase long term daily exposure to DPM, which is the appropriate measure for DPM impacts, to determine cancer risk.

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Comment 10:

II. THERE IS SUBSTANTIAL EVIDENCE OF A FAIR ARGUMENT THAT THE PROJECT WILL HAVE POTENTIALLY SIGNIFICANT IMPACTS ON BIOLOGICAL RESOURCES.

An EIR is required because substantial evidence in the record indicates a fair argument that the Project will have significant biological impacts. Specifically, expert wildlife biologist Dr. Shawn Smallwood, Ph.D. has concluded that the Project site has value as a habitat for special status species and that the Project will have significant impacts on biological resources. Dr.

Smallwood’s comments and CV are attached as Exhibit B. The City therefore must prepare an EIR for the Project. Dr. Smallwood’s comments are supported by a site visit by wildlife biologist Noriko Smallwood (“Ms. Smallwood”). Ms. Smallwood visited the site for 3.17 hours on February 15, 2025, starting at 6:36 am. She walked the site’s perimeter, using binoculars to scan for and a camera to capture wildlife.

Response 11:

The commenter’s opinion is not supported by substantial evidence, and does not support the assertion that an EIR must be prepared. Specific responses are provided below. It is also noted that the biologist who prepared the report and makes the claims cited by the commenter did not participate in the field assessment, and has not been to the site.

Comment 12:

1. The MND Fails to Adequately Describe the Project’s Environmental Setting.

The City inadequately characterized the existing environmental setting by failing to conduct adequate field surveys and desktop review. Every CEQA document must start from a “baseline” assumption. The CEQA “baseline” is the set of environmental conditions against which to compare a project’s anticipated impacts. Communities for a Better Envt. v. So. Coast Air Qual.

Mgmt. Dist. (2010) 48 Cal. 4th 310, 321. Section 15125(a) of the CEQA Guidelines (14 C.C.R., § 15125(a)) states in pertinent part that a lead agency’s environmental review under CEQA:
“…must include a description of the physical environmental conditions in the vicinity of the project, as they exist at the time [environmental analysis] is commenced, from both a local and regional perspective. This environmental setting will normally constitute the baseline physical conditions by which a Lead Agency determines whether an impact is significant.” (Emphasis added.)
(See, Save Our Peninsula Committee v. County of Monterey (2001) 87 Cal.App.4th 99, 124- 125.) As the court of appeal has explained, “the impacts of the project must be measured against the ‘real conditions on the ground,’” and not against hypothetical permitted levels. (Save Our Peninsula, supra, 87 Cal.App.4th 99, 121-123.)
Here, the IS/MND’s conclusion that there is no suitable habitat for sensitive native species on or around the site is unsubstantiated because no physical survey was conducted at the site.

Surveys are necessary to characterize diurnal and nocturnal bird flights, and Dr. Smallwood

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states that the “lack of surveys leaves the City of Palm Springs blind to any potential project impacts to birds, because without a survey there is no sound basis for characterizing the existing environmental setting.” Similarly, no desktop review was conducted to assess avian species’ occurrence likelihoods in or near the airspace that would be displaced by the proposed project.

Dr. Smallwood’s conclusion regarding the lack of physical survey is supported by the fact that during her physical survey of the Project site, Ms. Smallwood identified 18 different vertebrate species at or near the project, of which three were “special status” species. These species include the Costa’s hummingbird, Cooper’s hawk, and Verdin. Dr. Smallwood’s data modeling predicts that there should be at least 13 special status species using the site. Dr. Smallwood states that based on the survey and database review, there are 100 special status species of birds with known occurrence near the project site to warrant analysis of occurrence potential. Of these species, four have been recorded on or adjacent to the project site, 38 have been documented within 1.5 miles of the site, 10 between 1.5 and 4 miles, and another 46 within 4 to 30 miles. The Project site is known to exist within bird migration corridors, with known special status species using these corridors.

The IS/MND dismissed the possibility of special status species on the Project site because it is currently developed. However, the site is immediately adjacent to lush habitat and open space areas. As such the site provides habitat for several special status species as documented by Dr.

Smallwood.

Clearly, the IS/MND fails to accurately describe the Project’s environmental setting. Thus, an EIR is necessary to appropriately characterize the existing environmental setting.

Response 12:

First, the baseline for the Project is clearly stated in the IS, starting in the Project Description, and repeated throughout the document: the site is a parking lot that has existed for decades in the middle of Palm Springs’ downtown. It is surrounded by urban development, including streets on three sides, commercial development, a condominium project, hotels and the City’s Convention Center. There is no “lush habitat” or open space adjacent to or in proximity to the Project site.

As the comment relates to identified special status species, the commenter is incorrect in their basic assertion. First, the biologist identified two, not three, species on the Project site. The Cooper’s hawk was identified “just off site,” a characterization which defies scientific analysis and cannot be relied upon. Second, neither Costa’s hummingbird nor verdin have any special status designation in California, and are only designated as birds of conservation concern at the federal level. Further, contrary to the standard practice used by professional biologists, the commenter’s expert fails to characterize the species’ likelihood of occurrence (Absent, Low, Moderate, Present on Site) based on professionally accepted factors, including appropriate soils and native habitat, the existence of burrows or other natural features which define the potential for species to occur in all biological resource reports. The commenter’s expert instead relies on a mathematical equation to “predict” the occurrence of species. This method is entirely speculative, and has no basis in science or biological resource investigation. The commenter’s opinion that there “should be” 13 special status species using the site is completely unsupported

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by fact. Further, the assertion that there could be 100 special status species of birds on the project site because they have been identified within 1.5 to 30 miles from the site completely ignores the most important and basic concepts associated with biological resources:
appropriateness of native habitat. An asphalt parking lot with scattered ornamental landscaping is not appropriate native habitat in the Coachella Valley. As correctly stated in the IS, it is expected that birds may nest in the ornamental landscaping, and as a result, pre-construction nesting bird surveys are required in Mitigation Measure BIO-1 on page 44.

Comment 13:

2. The IS/MND Failed to Adequately Analyze the Project’s Substantial Interference with Wildlife Movement.

An EIR is required if any substantial evidence in the record indicates that a project may have an adverse environmental effect—even if contrary evidence exists to support the agency’s decision. (CEQA Guidelines § 15064(f)(1); Stanislaus Audubon v. Stanislaus (1995) 33 Cal.App.4th 144, 150-151 (1995)).

The IS/MND states that “[a]ny suitable habitat for any native species has been completely degraded due to the area’s development. Additionally, the site lacks connections to other native habitats. Therefore, the site does not experience the migration of native wildlife and does not substantially interfere with the movement of any species, nor does it limit the use of native wildlife nursery sites.” As discussed supra, this conclusion is not supported by a survey or appropriate desktop review. Dr. Smallwood concludes that the Project will adversely impacts wildlife movement.

The project would block airspace that has been used by birds on migration, dispersal, home range patrol, and foraging. Ms. Smallwood recorded 121 bird flights during her survey. Those birds were able to navigate to, away, and across the project site due to the remaining habitat connection: the aerosphere. The Project would insert 85.67’ and 99.67’ buildings into this aerosphere and consequently interfere with wildlife movement in the region. Thus, an EIR is required to appropriately analyze the project’s potential impacts to volant wildlife, as well as potential mitigation strategies.

Response 13:

The commenter’s opinion is noted, but is not substantiated. The site is adjacent to buildings which currently exceed 50 feet in height, and occurs in the City’s urban core. Birds certainly fly through the area, and will continue to do so, either above or next to the proposed buildings.

Given the narrow footprint and size of the site, the Project does not substantially reduce the potential for birds to fly through the City, whether foraging or migrating.

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Comment 14:

3. The IS/MND Failed to Adequately Analyze the Project’s Impacts from Bird- Window Collisions.

The IS/MND fails to analyze the Project’s impacts due to bird-window collisions. Dr. Smallwood concludes that the extensive use of glass in the 7 and 9-story buildings will lead to increased bird-window collisions. He notes that there are 100 special status species with potential to use the site’s aerosphere. Many of these birds are likely to experience window collisions due to the Project. Dr. Smallwood calculates that the Project will cause 493 bird deaths due to windowcollisions each year. The vast majority of these birds are protected under the Migratory Bird Treaty Act. And the recently revised California Migratory Bird Protection Act.

The IS/MND fails to analyze the Project’s impacts related to project-generated traffic fatalities.

The IS/MND predicts that the Project will generate 6,990,190 annual VMT. Dr. Smallwood predicts that this will result in 1,189 vertebrate wildlife fatalities per year.

Dr. Smallwood proposes numerous mitigation measures that could vastly reduce the above impacts, such as avoiding construction during nesting season, applying bird-safe window treatments, landscaping measures and many others. Since there is substantial evidence that the Project will have adverse biological impacts, an EIR is required to analyze and mitigate those impacts.

Response 14:

The comment is noted but unsupported. As clearly described and shown in the IS (Exhibits 5a and 5B, 6A through 6C), the building’s glass is almost all behind deep balconies, and broken up by walls and screens between rooms. Birds will not be exposed to large expanses of glass, but rather to recessed balconies that do not provide a way through. It is further noted, as described in Response 12, that there is no evidence of 100 special status species of birds at the site. The commenter’s expert’s determination regarding the number of bird strikes is speculation, and not based on historic studies of buildings with balconies and screens, or other credible quantified data on the matter.

As it relates to traffic fatalities, the Project occurs on existing streets in downtown Palm Springs.

The Project does not significantly increase traffic on these streets, as demonstrated in Section XVII of the IS. There is no evidence that traffic fatalities are occurring on these streets at significant rates, nor is there evidence that the Project would result in significant increases in these rates.

There is no substantial evidence that the Project will have a significant impact on bird and animal fatalities, and an EIR is not required.

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Comment 15:

4. There is a Fair Argument that the Project Will Adversely Affect Special Status Species.

Numerous special status species will be adversely affected by the Project. "Special Status Species" is a universal term used in the scientific community for species that are considered sufficiently rare that they require special consideration and/or protection and should be, or have been, listed as rare, threatened or endangered by the Federal and/or State governments. Here, Ms. Smallwood’s brief site visit survey identified 3 special status species on the proposed Project site: two species on the U.S. Fish and Wildlife Service Bird of Conservation Concern (BCC), and one on Bird of Prey (BOP) listed under California Fish and Game Code 3503.5. Further, Dr.

Smallwood’s modeling based on Ms. Smallwood’s data predicts that there should be 13 specialstatus species using the site.

As applied to the Project, the California Fish & Game Code, also known as the Birds of Prey Code, includes the Cooper’s hawk (Falco sparverius) as a protected raptor. (See, California Fish & Game Code, § 3503.5.) Additionally, both the Costa’s hummingbird and Verdin are listed as Birds of Conservation Concern (BCC).

The IS/MND fails to analyze the impact that the Project will have on wildlife movement. Dr.

Smallwood points out that the project will adversely impact wildlife movement. He notes that the project will impact the birds’ migration, dispersal, home range patrol and foraging.

The IS/MND also fails to analyze the Project’s impacts due to bird-window collisions. Dr.

Smallwood concludes that the extensive use of glass in the Project will lead to extensive birdwindow collision deaths. He notes that there are “100 special-status species of birds” with the potential to fly within the aerosphere of the project site. Many of these birds are likely to experience window collisions due to the Project. Dr. Smallwood predicts annual bird deaths of 493, the vast majority of which would be of birds protected under the Migratory Bird Treaty Act and the California Migratory Bird Projection Act.

The IS/MND fails to analyze the Project’s impacts related to wildlife traffic fatalities. Dr.

Smallwood calculates that the Project will generate 6,990,190 VMT, which would generate 1,189 wildlife fatalities per year.

Dr. Smallwood proposes numerous mitigations measures that could vastly reduce the above impacts, such as guidelines on building design to minimize bird-window collisions, compensatory mitigation for road mortality, funding of wildlife rehabilitation facilities, and native landscaping.

These mitigation measures should be analyzed in an EIR and imposed if feasible.

Therefore, the Project will have a substantial adverse effect on special status species, and continuation of the Project without preparing and circulating an EIR will lead to habitat disturbance and modifications that will directly and indirectly affect special status species.

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Response 15:

There is no evidence that the Project will significantly impact special status species. See Response 12 regarding the unsupported speculation regarding the number of species that “should” occur on the site, and the fact that Cooper’s hawk was not identified on the site, contrary to the commenter’s continued assertions. See Response 13 regarding the unsubstantiated assertion that the Project will significantly impact wildlife movement. See Response 14 regarding the unsubstantiated assertion that the Project will cause bird-window collisions and wildlife traffic fatalities. Because there will not be significant impacts associated with these topics, there is no need for mitigation, and no need for an EIR. The IS correctly determines that the impact to biological resources will occur only as it relates to nesting birds in the parking lot’s landscaping, and mitigates those impacts through compliance with MBTA, which requires pre-construction surveys for nesting birds (see Mitigation Measure BIO-1).

Comment 16:

III. THE IS/MND’S PROPOSED BIOLOGICAL MITIGATION MEASURES ARE INSUFFICIENT

TO BRING THE BIOLOGICAL RESOURCES IMPACTS TO A LEVEL BELOW SIGNIFICANCE.

An MND is improper because the Project’s proposed mitigation measures will not avoid or mitigate the potentially significant biological resources impacts “to a point where clearly no significant effect on the environment would occur, and…there is no substantial evidence in light of the whole record before the public agency that the project, as revised, may have a significant effect on the environment.” PRC §§ 21064.5 and 21080(c)(2). The MND requires only a preconstruction survey for breeding birds and the establishment of construction buffer zones around any active nests that are discovered.59 However, the proposed mitigation measures are insufficient for a few reasons and therefore cannot guarantee that proposed measures will reduce the impacts below significance.

1. The City Fails to Implement Mitigation Measures to Protect Non-Migratory Birds Species Observed on the Project Site.

Where feasibility of mitigation is uncertain, an agency may not defer it. And where feasibility is called into question, the agency must demonstrate feasibility. In Sundstrom v County of Mendocino (1988) 202 Cal.App.3d 296, 308-309, mitigation calling for a future use permit for sludge disposal was improperly deferred because there was no evidence of feasibility in the face of uncertainty: “the record discloses that the applicant presented no plans for sludge disposal and that no solution was readily available.” Id. at 308.

As explained above, the MND did not prepare any analysis or surveys of wildlife in the area. The City’s response to Dr. Smallwood suggests that the Project site has habitat value for migratory birds, and so the proposed mitigation measure is shaped around nesting migratory birds.

However, the MND also recognizes that “the [California Fish and Game Code (“CFGC”)] extends protection to non‐migratory birds identified as resident game birds (CFGC Section 3500) and any birds in the orders Falconiformes or Strigiformes (birds‐of‐prey) (CFGC Section 3503).”

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Yet, the proposed mitigation measure only discusses protections for migratory birds during the migratory birds’ nesting season. This means that no mitigation measures have been proposed to protect non-migratory birds, such as the many that Dr. Smallwood’s report indicated on the Project site. Given how the Project site is not being utilized merely for migratory birds or during the nesting season for migratory birds, the MND it is unclear how feasible the mitigation measure will protect the remaining bird species found on the site. As such, the proposed mitigation measure will not feasibly resolve the potentially significant impacts on biological resources.

Response 16:

The commenter’s opinion is noted, but unsubstantiated. First, to the City’s knowledge, the IS preparer has had no contact with Dr. Smallwood, and has not responded to him, in the IS or elsewhere. Second, the citation claimed by the commenter to be from the IS regarding game birds does not exist in the IS. It is unclear what the document the commenter is referring to, and because of that, no response is possible.

Finally, as relates to Mitigation Measure BIO-1. First, the MBTA covers almost all birds, common or special status, and is not limited to migratory birds. Second, if a qualified biologist were to identify a nesting bird within the ornamental landscaping prior to construction, the commenter’s implication that the biologist would ignore the nest is absurd. The Mitigation Measure will protect nesting birds on the site, and no infeasibility occurs.

Comment 17:

2. The City Cannot Defer Mitigation Measures Related to Biological Resource Impacts.

An agency may only defer the formulation of mitigation measures when it possesses “‘meaningful information’ reasonably justifying an expectation of compliance.” (Sundstrom v.

County of Mendocino (1988) 202 Cal.App.3d 296, 308-309; see also, Sacramento Old City Association v. City Council of Sacramento (1991) 229 Cal.App.3d 1011, 1028-29 (mitigation measures may be deferred only “for kinds of impacts for which mitigation is known to be feasible”).) A lead agency is precluded from making the required CEQA findings unless the record shows that all uncertainties regarding the mitigation of impacts have been resolved; an agency may not rely on mitigation measures of uncertain efficacy or feasibility (Kings County Farm Bureau v. City of Hanford (1990) 221 Cal.App.3d 692, 727 (finding groundwater purchase agreement inadequate mitigation because there was no evidence that replacement water was available).) This approach helps “ensure the integrity of the process of decisionmaking by precluding stubborn problems or serious criticism from being swept under the rug.” (Concerned Citizens of Costa Mesa, Inc. v. 32nd Dist. Agricultural Assn. (1986) 42 Cal.3d 929, 935.) As applied here, the proposed mitigation measure related to addressing construction impacts during migratory bird nesting season cannot be deferred.

First, and as explained above, the proposed mitigation measure is not clear regarding the efficacy of protecting non-migratory bird species of conservation concern as well as birds of prey that protected under CEQA. Dr. Smallwood’s reporting shows the presence of these species, but the MND’s proposed mitigation measure merely aims to address protections surrounding migratory birds during the nesting season. Therefore, it is unclear as to how the mitigation measure will adequately and feasibly protect the remainder of the protected species that utilize the Project site.

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However, CEQA prohibits this approach. As explained by the Sundstrom court, CEQA documents are “subject to review by the public and interested agencies. This requirement of “public and agency review” has been called “the strongest assurance of the adequacy of a [CEQA document].” (Sundstrom, 202 Cal.App.3d at 308). Dr. Smallwood notes that the MND’s mitigation measures should be implemented if the project goes forward, but that it will not avoid the negative biological impacts he predicts.

Dr. Smallwood proposes several additional mitigation measures beyond BIO-1. These mitigation measures include:
• Guidelines on building design to minimize bird-window collisions • Compensatory mitigation funding research to identify fatality patterns and effective impact reduction measures such as reduced speed limits and wildlife under-crossings or overcrossings of particularly dangerous road segments
• Compensatory mitigation to fund wildlife rehabilitation facilities • California native plant landscaping.

Therefore, the MND’S proposed mitigation measures will not feasibly or effectively protect migratory birds or special status species As such, these mitigation measures are inadequate, and the City must prepare an EIR pursuant to CEQA to measure the potentially significant impacts on biological resources.

Response 17:

The commenter’s opinion regarding deferred mitigation in general is noted. As it relates to the efficacy of protecting non-migratory birds, see Response 16. As it relates to mitigation associated with bird collisions, see Response 12. As it relates to funding research regarding fatality patterns, there is absolutely no correlation between the fatalities the commenter presumes will occur on existing busy urban streets and the need for research. As it relates to mitigation to fund wildlife rehabilitation facilities, the same applies: there is no correlation between the presumed, unsubstantiated impacts asserted by the commenter and a need for wildlife rehabilitation center funding. Finally, as it relates to native plant landscaping, the City’s and DWA’s landscaping requirements, which place a particular focus on native drought tolerant landscaping are a requirement imposed on the Project, and do not require a mitigation measure.

The commenter has not presented any evidence, other than speculation and conjecture, that the mitigation measure included in the IS is insufficient, infeasible or inadequate.

Comment 18:

IV. THERE IS SUFFICIENT EVIDENCE OF A FAIR ARGUMENT THAT THE PROJECT WILL CREATE SIGNFICANT TRANSPORTATION ISSUES.

The Project’s IS/MND fails to provide comprehensive analysis regarding transportation issues, inconsistencies and deficiencies. Traffic and transportation engineer Tom Brohard, P.E., provided an independent analysis of the January 26, 2025, IS/MND, as well as the September

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12, 2024 Traffic Analysis and June 24, 2024 memorandum regarding vehicle miles traveled (VMT) prepared by Urban Crossroads. Mr. Brohard contrasted these documents with the July 2020 City of Palm Springs Traffic Impact Analysis (TIA Guidelines). Mr. Brohard’s analysis identified several key issues which indicate that the Project’s conclusions regarding traffic impacts are unsupported and warrant that an EIR is required to address these concerns.

1. The Revised Scoping Form Lacks City Approval.

The TIA Guidelines state that “. . . the applicant submit and have approved a scoping form prior to the preparation and submittal of a draft TIA.” Appendix 1.1 of the TIA provides an April 11, 2024, Memorandum containing a revised traffic study scoping agreement in response to the City’s December 12, 2023, comments on a “Trip Generation Assessment.” However, the Project’s Revised Scoping Form lacks City of Palm Springs approval.

However, there is no indication that the revised TIA Scoping Agreement was accepted and approved by the City, or that it fully addressed the City’s December 12, 2023, comments.

Therefore, the Project fails to comply with the TIA Guidelines’ procedural and substantive rules regarding scoping forms.

Response 18:

The commenter’s opinion is noted. However, the scoping form was revised and approved by the City, as was the traffic study. No further response is warranted.

Comment 19:

2. The Project Access Description Falsely Describes the Project Site.

Project Access Description inaccurately describes the existing streets and the project site. The MND states that “[a]lley ways border the site on its south and east sides,” however, this is contradicted later in the MND, which clearly shows that the alleys do not currently exist. The north-south alley along the east side of the site is currently unimproved and has a dirt surface.

It is also about 4 feet above the existing alley to the south and it is physically separated from the Project site by a 4-foot-tall concrete block wall. Additionally, there is an east-west alley within the private property to the south of the site, but it is physically separated from the site by a 4-foottall concrete block wall that is several feet below the existing parking lot on the Project site.

According to Mr. Brohard, access to these adjacent alleys would greatly improve circulation for the Project; however, this would require significant grading and reconstruction which does not appear feasible. The incorrect description of project access is likely to cause significant impact, thus an EIS is required.

Response 19:

First, the description of the location of the roadways and alleys in the IS is correct. What the commenter fails to identify is that the alley along the south side of the site is currently part of the parking lot, and that the alley on the east side is currently in use by the Convention Center and the hotel to the east of the site. The grade differential will be rectified during grading, and does

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not pose an impediment to the alley’s development. The wall around the parking lot will be demolished as part of the parking lot demolition. Finally, the traffic analysis (Appendix C of the IS), specifically studies the driveway at the east side (Driveway 3) and the south (Driveway 2), contrary to the commenter’s assertion. See Exhibit 1-2 of Appendix A for a diagram of the studied intersections. Location 5 is the Driveway 2 intersection with Calle El Segundo, and location 7 is the intersection of Driveway 3 and Andreas Road. There are no inconsistencies, and no EIR is required.

Comment 20:

3. Site Access Has Not Been Analyzed.

The City’s TIA Guidelines state that “[a] project’s TIA should analyze access and safety around the project and on adjacent streets.” Mr. Brohard identified numerous access and circulation issues requiring action, which left unaddressed will create safety issues, both on the perimeter streets and within the site itself. These safety issues include:
i. Primary Garage Access
The Project proposes four hundred (400) parking spaces in the five-level primary parking garage, which would be remotely located at the southeast corner of the site. Proposed access to the garage comes via new 24’ wide alleys through a two-way driveway about 150 feet south of Andreas Road and a second two-way driveway just around a corner on another alley. Mr.

Brohard states that the primary garage will function very poorly based upon many design deficiencies shown on the Project Site Plan of the Ground Level.

The primary garage will be difficult to locate based upon its remote position in the southeast corner of the property. Further, neither of the two narrow access driveways have areas that could provide access to control equipment, or that could provide a throat to prevent entering traffic from queuing and blocking the alleys. Neither of the driveways have radius curb returns to facilitate vehicle turns in to and out of the narrow alleys that provide access.

Finally, the inappropriately designed access driveways for the primary garage will require threepoint turns for entry and for exit, creating congestion where the stopping sight distance is limited, and resulting in high risks of collisions.

None of these factors are addressed by the IS/MND or supporting documents. Therefore, further analysis is required to address the safety issues with respect to the proposed primary garage.

Response 20:

The garage is not “remotely located.” It is located on the Project site. The commenter’s opinions regarding access to the garage are noted, but are not substantiated. Contrary to the commenter’s assertion, a throat is clearly shown on the south access point. Further, it is common for the entry equipment on garages to be located within the structure, not outside it. Therefore, there is no evidence that queuing could not occur, or that the access points are insufficient, particularly since the driveways will be used for garage access, and are not thoroughfares. The commenter’s opinion that access to the garage will require three point turns is noted, but not

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substantiated. The driveways are two-way, 24 foot wide roads that provide sufficient width to allow single movement turns into and out of the garage.

Comment 21:
ii. Underground Garage Access
The Project also proposes an underground garage with one hundred (100) parking spaces underneath the hotel in the north central portion of the site. Vehicle access will occur through a pair of two-way driveways on the south side of Andreas Road in the middle of the Project. Mr.

Brohard notes underground garage will also function very poorly based upon the many design deficiencies in the Project Site Plan of the Ground Level, which also present significant safety issues.

The driveway shows a 16% downgrade in to and out of the garage, which is a very steep slope for hotel guests and valets to negotiate. The plans also include a pair of two-way driveways providing access to the shared hotel and residential lobby, with the steep driveway to the underground garage barely beyond a 90-degree curve with limited stopping sight distance. The plans include another pair of two-way driveways providing access to the residential drop-off to the east, which is isolated from and inconvenient to both parking garages. Final, the internal connector for the on-site drive-through for the residences is too narrow, and it will be blocked by parking on both sides of the internal connector.

These problems are not addressed by the IS/MND. Consequently, further analysis is necessary to address the current safety and design issues.

Response 21:

The commenter’s opinion is noted, but not substantiated. The City Engineer will review detailed site plans when improvement plans are submitted, and will assure that the design meets all of the City’s safety standards. The commenter’s perceived “inconvenient” access to the garages is noted, but is not a CEQA issue. Finally, there are no drive-though uses in this Project, so the reference to the “on-site drive-through for the residences” cannot be identified, and cannot be commented upon. As noted herein, and in the Response above and below, the commenter’s opinion do not substantiate that impacts associated with access will be significant, and no change to the IS is required.

Comment 22:

4. The Project VMT Incorrectly Excludes Elimination of Current Parking Lot.

The Project will eliminate the 700 parking spaces that presently cover the entire hotel and residential site. This parking lot provides over 40% of the 1,700 off-street parking spaces that support Convention Center events. Removal of the parking lot is the first activity that will occur as part of the construction of the Project. The VMT Analysis and the MND fail to evaluate the displaced parking issue and further study with detailed evaluation is required as suggested below.

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Events at the Convention Center range widely in attendance and resulting required parking.

During Mr. Brohard’s recent field review, the California Automatic Fire Alarm Association annual one-day conference generated 120 parked vehicles in the existing west parking lot that will be removed. Parking also occurred on both sides of Andreas Road and there were only a very few vehicles parked in the large parking lot to the East. The vehicle parking that Mr. Brohard observed on February 6, 2025, was similar to the aerial photograph taken on November 30, 2023, that is shown in the MND (pictured below).
(picture omitted – see Appendix A)
When construction of the Project begins, vehicle parking for the Convention Center will shift into the large parking lot east of Avenida Caballeros and south of Amado Road. Additional VMT will be generated by the closure of the west parking lot when attending an event at the Convention Center. Mr. Brohard used current Google Earth photos to measure distances, as well as the same vehicle trip distribution that has been used in the Traffic Analysis for the Project. Mr.

Brohard reached the following conclusions regarding VMT impacts:
• Trips to/from the North – 50% of the trips to/from the North to the east parking lot will experience slightly longer trips.
• Trips to/from the West - 30% of the trips to/from the West to the east parking lot will experience longer trips.
• Trips to/from the South – 10% of the trips to/from the South to the east parking lot will experience longer trips.
• Trips to/from the East - 10% of the trips to/from the East to the east parking lot will experience slightly shorter trips.

Thus, each Convention Center oriented vehicle to/from the North, West, and South will relocate from the west parking lot to the east parking lot, comprising 90% of the total traffic. This will increase VMT for the overall Project. The parking lot demolition must be carefully considered as part of the Project, not less as is purported in the VMT analysis. The VMT analysis must be revised accordingly to reflect the removal of the existing parking lot on the Project site, and further mitigation measures are needed. An EIR is required to further address these potential impacts.

Response 22:

The commenter’s opinion is noted, but does not reflect Project VMT analysis. First, neither the TIA nor the VMT analysis (Appendices C and D to the IS), analyzed Convention Center traffic movements, as they were not required to – they analyzed hotel and residential traffic generated by the Project. Furthermore, guests at the Project hotel are more likely to walk to the Convention Center than they are to drive, given its adjacency. Second, the assumption that trips will be elongated assumes that the trips originate from the west, which is not based on fact. Travelers to the Convention Center coming from the north, south and east, for example, would travel directly to Avenida Caballeros from their origination point, and would not need to backtrack to reach the east parking lot at the Convention Center. Only trips coming from the west will have to travel about 1,500 feet further east to reach the east Convention Center lot. Finally, VMT analysis for the Project clearly shows that the Project (not the Convention Center) exceeds the

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baseline VMT, but not the cumulative VMT. Given that baseline analysis does not consider surrounding land uses, and the efficiencies potentially created by these land uses, the baseline is less reliable than the cumulative. Nonetheless, the IS correctly identified that the impact under baseline conditions could be significant, and identified three methods to reduce that impact. With implementation of these measures, which are measurable and enforceable, baseline VMT is reduced to acceptable levels. See pages 96 through 98 of the IS. The VMT analysis was undertaken correctly, and no change to the IS is required, and an EIR is not warranted.

Comment 23:

5. VMT Mitigation Requires Monitoring and Enforcement.

The MND states that “The Project’s resort hotel and residential component generated VMT per service population would exceed the City’s impact threshold of 36.7 VMT per service population.

Therefore, the Project would need to reduce its VMT impact by 1.5% to achieve a finding of less than significant in the baseline condition.” Mr. Brohard suggests the following strategies that could achieve the necessary reduction:
• Commute Trip Reduction Plan – The MND states the following features (or similar alternatives) of the marketing strategy are essential for effectiveness:
o Onsite or online commuter information services.
o Employee transportation coordinators.
o Onsite or online transit pass sales
o Guaranteed ride home service.
• End-of-trip Bicycle Facilities – The MND states this design feature to install and maintain bicycle facilities such as bike parking, bike lockers, showers, and personal lockers is expected to reduce VMT by 0.1%.
• Unbundled Hotel Guest Parking – The MND states “…all guests of the hotel will be required to self-park or valet park,” although this strategy does not result in a quantifiable reduction in VMT.84
Mitigation Measure TRANS.2 states:
“…the Project is required to enforce the Commute Trip Reduction (CTR) Marketing strategy as described in the Handbook for Analyzing Greenhouse Gas Emission Reductions… (CAPCOA, 2021) because it will achieve a 3.6% reduction in VMT impacts, which exceeds the required

1.5% reduction. The hotel operator will submit a CTR marketing strategy to the City prior to receipt of a certificate of occupancy for the Project.” The VMT Analysis prepared for the Project repeats these statements but fails to provide a specific commute trip reduction plan with details of the marketing strategy. TRANS.2 also fails to include a regular routine monitoring plan with schedule for updates and reports, as well as specific penalties for non-compliance. Mr. Brohard thus concludes that without these enforcement provisions, compliance with the plan will not be achieved.

While the MND also puts forth both “End-of-trip Bicycle Facilities” and “Unbundled Hotel Guest Parking”, both of these potential strategies are then dismissed as part of Mitigation Measure TRANS.2 as being ineffective. It is unclear why these two strategies are even mentioned as they

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will not be used and are not effective, particularly bicycle commuting during the peak summer season between May and October when temperatures routinely exceed 110 degrees every day.

Therefore, without monitoring and enforcement, the proposed VMT reduction strategies will not be effective.

Response 23:

The comment is noted. The three mitigation measures listed for VMT are those already included in the IS. As described in the IS, the second and third are either only minimally effective or unquantifiable, respectively. However, the first reduces VMT impacts by 3.6%, which exceeds the 1.5% reduction needed to meet the City’s standard (pages 97-98 of the IS). Therefore, Mitigation Measure TRANS-2 requires the implementation of a Commute Trip Reduction Plan.

The IS further guarantees its implementation, by requiring the submittal of the Plan prior to receipt of the certificate of occupancy for the hotel (Monitoring TRANS.B, page 99). The Plan will include implementation reporting requirements to assure that it is implemented in the long term. The IS correctly analyzes VMT for the Project, and provides feasible mitigation for the baseline impacts. No change to the IS is required.

Comment 24:

Ultimately, there are several transportation issues and deficiencies likely to cause significant impact associated with the MND and the supporting documents prepared for the Nexus Hotel and Residential Project. Most critically, the MND has failed to consider the various impacts pointed out in this letter of the removal of 700 parking spaces from the Project site as the first phase of construction. Project VMT will not be mitigated by the Commute Trip Reduction Marketing Plan to be developed but then not monitored or enforced. Furthermore, there are other transportation access issues associate with the Proposed Site Plan that require further study, analysis, and redesign. Thus, Mr. Brohard’s analysis supports the conclusion that an EIR is necessary for the Project to continue.

Response 24:

As described above, there are no issues or deficiencies in the IS (see Responses 18 through 23), and traffic and VMT impacts have been correctly analyzed, level of impact determined, and feasible mitigation measures included that reduce all traffic impacts to less than significant levels. There is no factual support for the preparation of an EIR.

Comment 25:

CONCLUSION
For the foregoing reasons, SAFER requests that the City prepare an Environmental Impact Report (“EIR”) to analyze and mitigate the Project’s significant adverse environmental impacts.

Thank you.

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Response 25:

The comment is noted, but based on Responses 1 through 24, is not supported by substantial evidence. The Project represents an urban infill project on a significantly impacted site. The Project’s impacts have been thoroughly analyzed, and significant impacts have been mitigated with feasible mitigation measures, and the City was correct in determining that a Mitigated Negative Declaration is the correct CEQA document for this Project.

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APPENDIX A

COMMENT LETTER

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ATTACHMENT
M

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CITY COUNCIL STAFF REPORT
DATE: November 12, 2025 PUBLIC HEARING
SUBJECT: A PUBLIC HEARING REGARDING THE CONSIDERATION OF

ECONOMIC SUBSIDY REPORTS BETWEEN THE CITY OF PALM

SPRINGS AND EIGHT HOTEL OWNERS/OPERATORS PURSUANT TO
GOVERNMENT CODE SECTION 53083
FROM: Scott C. Stiles, City Manager
BY: Office of Economic Development
SUMMARY:

As a condition of compliance with the reporting requirements established under Assembly Bill 562 (Gov. Code, § 53083), the City is required to prepare and make publicly available Economic Development Subsidy Reports for qualifying economic development agreements. These reports provide transparency regarding public subsidies granted by the City and include information on the amount of each subsidy, the purpose, projected and actual tax revenues, and job creation outcomes.

The Economic Development Subsidy Reports were prepared in accordance with Gov.

Code, § 53083. Each report covers a hotel project that participates or participated in the City’s Hotel Operations Incentive Program and reflects data on Transient Occupancy Tax (TOT) revenues, incentive payments, and net tax revenues accruing to the City over the reporting period.

Additionally, a housekeeping matter is included in the form of revising a Covenant Agreement for the Yara Hotel adjusting the baseline to revised data. (The Yara Hotel incentive is not yet subject to the AB562 because it has not yet participated in the program for a full five year term.)
RECOMMENDATION:
1) Conduct a public hearing;
2) Approve and accept the Economic Development Subsidy Reports prepared pursuant to Gov. Code, § 5308 (Attachments A through H); and, 3) Authorize the City Manager to execute any necessary steps to implement. 4) Approve a Covenant Agreement baseline adjustment from $102,481.21 to $38,396.99 for the Yara Hotel, originally approved by the City Council in February of 2025 (Attachment I) and to be dated to the approval date of February 13, 2025

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and authorize the City Manager and City Attorney to make conforming and nonconforming changes to effectuate the Agreement.

STAFF ANALYSIS:

The City Council adopted Chapter 5.26 of the Palm Springs Municipal Code in December 2007 (amended on May 15, 2013) to provide a Hotel Operations Incentive Program, (the "Program"), for the operation and maintenance of hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. The program was subsequently extended to December 31, 2028 in following actions by the City Council.

Each participating hotel operator applied to participate in the City’s Hotel Operations Incentive Program and provided documentation demonstrating eligibility under the program’s criteria. The participating hotels have completed qualifying renovation or construction projects intended to enhance the City’s visitor-serving accommodations and support continued economic activity within the hospitality sector. Each property operates under an executed Hotel Operations Covenant Agreement ensuring the hotel will be operated and maintained in accordance with the program requirements.

Consistent with the provisions of the Program, and as a condition of the Hotel Operations Covenant Agreement, each participating hotel operator was required to place restrictions upon the use and operation of the hotel, in order to ensure that the hotel was operated and maintained continuously as a hotel available for short-term rentals. Pursuant to the Program guidelines, each qualifying renovation project was eligible for a fifty percent (50%) incentive payment based on the increase in Transient Occupancy Tax (“TOT”) revenues generated in excess of the TOT revenues paid to the City annually prior to commencement of the renovation (the “TOT Base”).

The TOT Base established the benchmark for calculating the incremental TOT revenues eligible for an incentive payment under the Program. The term of each Hotel Operations Covenant Agreement was determined based on the date the qualifying improvements were completed and made operational, consistent with the Program guidelines governing the duration of incentive participation.

State Law Requirement
In accordance with the reporting requirements under Gov. Code, § 53083, the City is required to prepare and make publicly available Economic Development Subsidy Reports for each project receiving an economic development subsidy. These reports provide transparency regarding the public benefits and fiscal impacts of the City’s Hotel Operations Incentive Program and must include information related to the amount of the subsidy, the public purpose served, the projected and actual TOT revenues, and job creation outcomes. Pursuant to state law, a five-year report is required within five years of the approval of each subsidy, and for subsidies with a term of ten years or more, a final

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report and public hearing are required at the conclusion of the subsidy term. Each report must be made available to the public and presented at a duly noticed public hearing before the City Council.

Pursuant to state law, a five-year report is required within five years of the approval of each subsidy. The five-year report must include:
• The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiaries of the economic development subsidy;
• The start and end dates and schedule for the economic development subsidy; • A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the City as a result of the subsidy;
• The net tax revenue accruing to the City as a result of the economic development subsidy; and
• The net number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

For an economic development subsidy with a term of ten (10) years or more, Section 53083(e)(2) requires that the City hold a public hearing at the conclusion of the subsidy and prepare a written report containing the information described above, in written form available to the public and through the City’s website, if applicable. This final report shall summarize the cumulative results of the subsidy over its entire term, including the total amount of the subsidy provided, the total tax revenue generated, and the overall employment impact resulting from the project.

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 environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is limited to approving and excepting the subsidy reports, and 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:

Approval of this action supports City Council strategic plan to provide quality of life, and well maintained community infrastructure for City residents.

FISCAL IMPACT:

Pursuant to the Agreements, the City rebated $13,282,849.11 to the participating hotels.

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After accounting for the rebate, the net tax revenue retained by the City totaled $10,262,572.40.

Hotel Name City Rebated Revenue Retained
By The City
Palm Mountain Resort $ 1,225,258.61 $ 1,225,258.60
Triada Palm Springs, Autograph
Collection $779,142.29 $779,142.33
Palm Springs Hotel $492,322.91 $492,322.91
Alcazar Palm Springs $428,821.35 $428,821.35
Rowan Hotel $8,681,262.66 $5,532,532.58
Skylark Hotel $188,606.41 $188,606.42
The Arrive Hotel $1,166,783.87 $1,295,237.19
Dive Palm Springs $320,651.01 $320,651.02
Total $ 13,282,849.11 $ 10,262,572.40
REVIEWED BY:

Department Director: Wayne Olson
City Attorney; Jeffrey S. Ballinger
City Manager: Scott Stiles
ATTACHMENTS:

A. Triada Palm Springs, Autograph Collection, Economic Development Subsidy Report B. Palm Mountain Economic Development Subsidy Report
C. Palm Springs Hotel Economic Development Subsidy Report D. Skylark Hotel Economic Development Subsidy Report
E. Rowan Hotel Economic Development Subsidy Report
F. Dive Palm Springs Economic Development Subsidy Report G. The Arrive Hotel Economic Development Subsidy Report H. Alcazar Palm Springs Economic Development Subsidy Report I. Corrected Covenant Agreement for Yara Hotel

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ATTACHMENT A

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TRIADA PALM SPRINGS, AUTOGRAPH COLLECTION,

FINAL ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN OPERATING COVENANT AGREEMENT

BY AND BETWEEN

CITY OF PALM SPRINGS
AND

PACIFICA COMPANIES, LLC
The following Five-Year Report has been prepared pursuant to California Government Code Section 53083. Section 53083 requires that for economic development subsidy agreements approved on or after January 1, 2014, the City must hold a public hearing within five years to provide an update on the project. Although the statutory five-year reporting period has passed, this report has been prepared to ensure compliance with the intent of the statute and to provide transparency regarding the performance of the subsidy. As required, this report reiterates details of the Operations Covenant and Declaration of Covenants and Restrictions (Agreement) between the City of Palm Springs (“City”) and Pacifica L 39, LLC (“Pacifica”) and provides information on subsidy payments to date.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

Pacifica L 39, LLC
1775 Hancock Street, Suite 200
San Diego, CA 92110
Deepak Israni, President
Note: The Agreement was initially entered into between the City and Pacifica Companies LLC, a California limited liability company. Pacifica is Pacifica Companies, LLC’s successor in interest to the Agreement.

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The Agreement started on November 1, 2014 and ended October 31, 2019. The "start date" of the Agreement was the date at which the renovation project was deemed fully completed and the calculation of the Transient Occupancy Tax (TOT) increment commences.

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3. A description of the economic development subsidy, including the estimated total amount of the expenditures of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The subsidy was the rebate of 50% share of Transient Occupancy Tax (TOT) increment collected annually calculated as follows: after the start date November 1, 2014, the subsidy was based on TOT collections for the year, subtracted from the established base; 50% of any increment is payable to Pacifica. In accordance with the Agreement, the City rebated $779,142.29 to Pacifica.

4. A statement of the public purposes for the economic development subsidy.

The City has confirmed that Pacifica's operation and maintenance of the hotel facilities improvements enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals.

5. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

The net tax revenue retained by the City totaled $779,142.33.

6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

This information was not provided.

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ATTACHMENT B

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PALM MOUNTAIN RESORT AND SPA

FINAL ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN OPERATING COVENANT AGREEMENT

BY AND BETWEEN

CITY OF PALM SPRINGS
AND
WR PALM MOUNTAIN RESORT, LP.

The following Final Report has been prepared pursuant to California Government Code Section 53083. Section 53083 requires that for economic development subsidy agreements approved on or after January 1, 2014, the City must hold a public hearing at the end of the subsidy with a term of 10 years or more and provide an update on the project. As required, this report reiterates details of the Operations Covenant and Declaration of Covenants and Restrictions (Agreement) between the City of Palm Springs (“City”) and WR Palm Mountain Resort, LP. (“WR Palm Mountain”) and provides information on subsidy payments to date.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

WR Palm Mountain Resort, LP.
1111 Third Avenue, Suite 3030
Seattle, WA 98101
Note: The Agreement was initially entered into between the City and Palm Mountain Resort, LP, a California limited partnership. WR Palm Mountain is Palm Mountain Resort, LP’s successor in interest to the Agreement.

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The Agreement started on October 1, 2015 and ended September 30, 2025. The "start date" of the Agreement was the date at which the renovation project was deemed fully completed and the calculation of the Transient Occupancy Tax (TOT) increment commences.

3. A description of the economic development subsidy, including the estimated total amount of the expenditures of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The subsidy was the rebate of 50% share of the TOT increment collected annually and calculated as follows: after the start date October 1, 2015, the subsidy was based on TOT collections for the year, subtracted from the established base; 50% of any increment was

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payable to WR Palm Mountain. Without the TOT incentive, the project would not have been done and there would be no shared TOT increment expenditure or revenue loss. Under the terms of the Agreement, the City rebated $1,225,258.61 to WR Palm Mountain.

4. A statement of the public purposes for the economic development subsidy.

The City has confirmed that WR Palm Mountain's, operation and maintenance of the hotel facilities improvements enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals.

5. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

The net tax revenue retained by the City was $1,225,258.60.

6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The hotel increased employment by six (6) full time positions, one (1) part time position, and twenty (20) construction jobs during the remodel period.

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ATTACHMENT C

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55575.18270\44344449.2

THE PALM SPRINGS HOTEL

FINAL ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN OPERATING COVENANT AGREEMENT

BY AND BETWEEN

CITY OF PALM SPRINGS
AND

AEK CAPITAL MANAGEMENT, LLC
The following Final Report has been prepared pursuant to California Government Code Section 53083. Section 53083 requires that for economic development subsidy agreements approved on or after January 1, 2014, the City must hold a public hearing at the end of the subsidy with a term of 10 years or more and provide an update on the project. As required, this report reiterates details of the Operations Covenant and Declaration of Covenants and Restrictions (Agreement) between the City of Palm Springs (“City”) and AEK Capital Management. LLC (“Capital Management”) and provides information on subsidy payments to date.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

AEK Capital Management, LLC
13207 Weddington Street
Sherman Oaks, CA 9140

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The Agreement started on November 1, 2014 and ended October 31, 2024. The "start date" of the Agreement was the date at which the renovation project was deemed fully completed and the calculation of the Transient Occupancy Tax (TOT) increment commences.

3. A description of the economic development subsidy, including the estimated total amount of the expenditures of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The subsidy was the rebate of 50% share of TOT increment collected annually calculated as follows: after the start date November 1, 2014 the subsidy was based on TOT collections for the year, subtracted from the established base; 50% of any increment was payable to Capital Management. Pursuant to the Agreement, the City rebated $492,322.91 to Capital Management.

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4. A statement of the public purposes for the economic development subsidy.

The has confirmed the Capital Management’s operation and maintenance of the hotel facilities improvements, enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals.

5. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

The net tax revenue retained by the City totaled $492,322.91.

6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The hotel had not change in employment and 50 jobs were created during the construction period.

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ATTACHMENT D

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55575.18270\44344451.2

THE SKYLARK

FINAL ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN OPERATING COVENANT AGREEMENT

BY AND BETWEEN

CITY OF PALM SPRINGS
AND

PB CONSTRUCTION SERVICES, LLC
The following Final Report has been prepared pursuant to California Government Code Section 53083. Section 53083 requires that for economic development subsidy agreements approved on or after January 1, 2014, the City must hold a public hearing at the end of the subsidy with a term of 10 years or more and provide an update on the project. As required, this report reiterates details of the Operations Covenant and Declaration of Covenants and Restrictions (Agreement) between the City of Palm Springs (“City”) and PB Construction Services, LLC (“PB Construction”) and provides information on subsidy payments to date.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

PB Construction Services, LLC
35 Mitchell Blvd., Unit 14
San Rafael, CA 94901

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The Agreement started on March 1, 2014 and ended February 28, 2024. The "start date" of the Agreement was the date at which the renovation project was deemed fully completed and the calculation of the Transient Occupancy Tax (TOT) increment commences.

3. A description of the economic development subsidy, including the estimated total amount of the expenditures of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The subsidy was the rebate of 50% share of the TOT increment collected annually calculated as follows: after the start date March 1, 2014, the subsidy was based on TOT collections for the year, subtracted from the established base; 50% of any increment was payable to PB Construction. Under the Agreement, the City rebated $188,606.41 to PB Construction.

4. A statement of the public purposes for the economic development subsidy.

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The City has confirmed that PB Construction’s operation and maintenance of the hotel facilities improvements, enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals.

5. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

The net tax revenue retained by the City totaled $188,606.42.

6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The Hotel increased employment by six (6) full time positions, and a number of construction jobs during the remodel period.

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ATTACHMENT E

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55575.18270\44344450.2

KIMPTON ROWAN PALM SPRINGS HOTEL

EIGHT-YEAR ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN OPERATING COVENANT AGREEMENT

BY AND BETWEEN

CITY OF PALM SPRINGS
AND

PALM SPRINGS PROMENADE, LLC
The following Eight Year Report has been prepared pursuant to California Government Code Section 53083. Section 53083 requires that for economic development subsidy agreements approved on or after January 1, 2014, the City must hold a public hearing within five years to provide an update on the project. As required, this report reiterates details of the Operations Covenant and Declaration of Covenants and Restrictions (Agreement) between the City of Palm Springs (“City”) and Palm Springs Promenade, LLC (“Palm Springs Promenade”) and provides information on subsidy payments to date.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

Palm Springs Promenade, LLC
555 South Sunrise Way, Suite 200
Palm Springs, CA 92264

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The subsidy starts on November 1, 2017 and ends October 31, 2047. The "start date" of the subsidy is the date at which the construction project is deemed fully completed and the collection of the Transient Occupancy Tax (TOT) commences.

3. A description of the economic development subsidy, including the estimated total amount of the expenditures of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The subsidy is the rebate of 75% share of TOT collected annually calculated as follows:
after the start date estimated November 1, 2017, the subsidy is based on TOT collections for the year, excluding TOT on resort fees; 75% of the TOT is payable to Palm Springs Promenade. In accordance with the Agreement, the City rebated $8,681,262.66 to Palm Springs Promenade over the 95 Month Period.

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4. A statement of the public purposes for the economic development subsidy.

The City has confirmed that Palm Springs Promenade’s operation and maintenance of the hotel facilities improvements, enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals.

5. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

The net tax revenue retained by the City totaled $5,532,532.58.

6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The development of the hotel will create no fewer than 100 positions, and a number of construction jobs during the construction period.

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ATTACHMENT F

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55575.18270\44344446.2

DIVE PALM SPRINGS

FINAL ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN OPERATING COVENANT AGREEMENT

BY AND BETWEEN

CITY OF PALM SPRINGS
AND
COLT’S LODGE, LLC
The following Final Report has been prepared pursuant to California Government Code Section 53083. Section 53083 requires that for economic development subsidy agreements approved on or after January 1, 2014, the City must hold a public hearing at the end of the subsidy with a term of 10 years or more and provide an update on the project. As required, this report reiterates details of the Operations Covenant and Declaration of Covenants and Restrictions (Agreement) between the City of Palm Springs (“City”) and Colt’s Lodge, LLC (“Colt’s Lodge”) and provides information on subsidy payments to date.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

Colt's Lodge, LLC
1586 East Palm Canyon Drive
Palm Springs, CA 92262
Jon R. Nelson or Frank M. Young

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The Agreement started on July 1, 2015 and ended June 30, 2025. The "start date" of the Agreement was the date at which the renovation project was deemed fully completed and the calculation of the Transient Occupancy Tax (TOT) increment commences.

3. A description of the economic development subsidy, including the estimated total amount of the expenditures of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The subsidy was the rebate of a 50% share of Transient Occupancy Tax (TOT) increment collected annually and calculated as follows: after the start date July 1, 2015 the subsidy was based on TOT collections for the year, minus the established base; 50% of any increment is payable to Colt’s Lodge. Pursuant to the terms of the Agreement, the City rebated $320,651.01 to Colt’s Lodge.

4. A statement of the public purposes for the economic development subsidy.

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The City has confirmed that Colt's Lodge’s operation and maintenance of the hotel facilities improvements enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals.

5. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

The net tax revenue retained by the City totaled $320,651.02.

6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The hotel increased employment by three (3) full time positions, one (1) part time position, and twenty nine (29) construction jobs during the remodel period.

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ATTACHMENT G

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55575.18270\44344452.2

ARRIVE PALM SPRINGS

NINE-YEAR ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN OPERATING COVENANT AGREEMENT

BY AND BETWEEN

CITY OF PALM SPRINGS
AND

PALM GROVE GROUP, LLC
The following Nine Year Report has been prepared pursuant to California Government Code Section 53083. Section 53083 requires that for economic development subsidy agreements approved on or after January 1, 2014, the City must hold a public hearing within five years to provide an update on the project. As required, this report reiterates details of the Operations Covenant and Declaration of Covenants and Restrictions (Agreement) between the City of Palm Springs (“City”) and Palm Grove Group, LLC (“Palm Grove Group”) and provides information on subsidy payments to date.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

Palm Grove Group LLC
P.O. Box 93217
Pasadena, CA 91109
Attn: Matt Steinberg

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The Agreement started on March 1, 2016 and ends February 28, 2026. The "start date" of the Agreement was the date at which the project was deemed fully completed and the calculation of the Transient Occupancy Tax (TOT) increment commences.

3. A description of the economic development subsidy, including the estimated total amount of the expenditures of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The subsidy is the rebate of 50% of the TOT collected annually and calculated as follows:
after the start date March 1, 2026, the subsidy is based on TOT collections for each calendar year. 50% of the TOT is payable to Palm Grove Group. Pursuant to the Agreement, the City rebated $1,166,783.87 to Palm Grove Group.

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4. A statement of the public purposes for the economic development subsidy.

The City has confirmed that Palm Grove Group’s operation and maintenance of the hotel facilities improvements enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals.

5. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

The net tax revenue retained by the City totaled $1,295,237.19.

6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The development of the hotel created thirty four (34) full time positions, seventeen (17) part time positions, and three hundred fourteen (314) jobs during the construction period.

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ATTACHMENT H

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55575.18270\44344444.2

ALCAZAR PALM SPRINGS

NINE-YEAR ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN OPERATING COVENANT AGREEMENT

BY AND BETWEEN

CITY OF PALM SPRINGS
AND

ALCAZAR PALM SPRINGS, LLC
The following nine Year Report has been prepared pursuant to California Government Code Section 53083. Section 53083 requires that for economic development subsidy agreements approved on or after January 1, 2014, the City must hold a public hearing within five years to provide an update on the project. As required, this report reiterates details of the Operations Covenant and Declaration of Covenants and Restrictions (Agreement) between the City of Palm Springs (“City”) and Alcazar Palm Springs, LLC (“Alcazar Palm”) and provides information on subsidy payments to date.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

Alcazar Palm Springs, LLC
622 North Palm Canyon Drive
Palm Springs, CA 92262

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The Agreement started on January 1, 2016, and ends December 31, 2025. The "start date" of the Agreement is the date at which the renovation project was deemed fully completed and the calculation of the Transient Occupancy Tax (TOT) increment commences.

3. A description of the economic development subsidy, including the estimated total amount of the expenditures of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

Commencing January 1, 2016, and through the termination on December 31, 2025, the subsidy shall be based on annual TOT collections, subtracted from the established TOT Base; 50% of any TOT increment above the TOT Base shall be payable directly to Alcazar Palm. Under the terms of the Agreement, the City rebated $428,821.35 to the Alcazar Palm.

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4. A statement of the public purposes for the economic development subsidy.

The City has confirmed that Alcazar Palm’s operation and maintenance of the hotel facilities improvements enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals.

5. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

The net tax revenue retained by the City was $428,821.35.

6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

Alcazar Palm, has reported that the renovations to the Alcazar Hotel increased employment by 1 full-time position and generated 157 construction positions.

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ATTACHMENT I

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1 FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

THE CITY OF PALM SPRINGS
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: City Clerk
(Space Above This Line for Recorder's Office Use Only)

OPERATIONS COVENANT

THIS OPERATIONS COVENANT AND DECLARATION OF COVENANTS AND RESTRICTIONS ("Agreement" or “Covenant”) is made and entered into this day of , 2025, by and between the CITY OF PALM SPRINGS, a municipal corporation and charter city ("City"), and SONORA GROUP, LLC, a California Limited Company ("Owner" or “Participant”).

R E C I T A L S:

A. The City of Palm Springs adopted Chapter 5.26 of its Municipal Code in December, 2007 to provide a Hotel Operations Incentive Program ("Program") for the operation and maintenance of Hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. (Chapter 5.26 of the Municipal code is incorporated herein by reference and defined terms therein shall, unless otherwise indicated, have the same meanings herein.)
B. On February 6, 2019, the City of Palm Springs amended Chapter 5.26 of its Municipal Code (“PSMC”) to re-establish the Program for Renovation Hotels as defined in Chapter

5.26 of the PSMC for the operation and maintenance of Hotel facilities that enhance the tourist and travel experience for visitors to the City, that assist the City in achieving its tourism goals.

C. On September 14, 2023, the City of Palm Springs amended Chapter 5.26 of its Municipal Code (“PSMC”) to extend the Program until December 31, 2028.

D. On May 29, 2024, Owner applied for the Program and has provided satisfactory documentation certifying its renovation project as a qualified renovation program under the Program.

YARA HOTEL ("Owner's Hotel" or "Project"), generally located at 221 E Sonora Road, Palm Springs, California, consists of ten (10) total hotel rooms on that certain real property located in the City of Palm Springs, County of Riverside, State of California, legally described on the Legal Description of Real Property attached hereto as Exhibit "A" and incorporated herein by reference (the "Site").

E. City and Owner now desire to place restrictions upon the use and operation of the Project, in order to ensure that the Project shall be operated continuously as a hotel available for short-term rental for the term of this Agreement.

F. City and Owner also agree that in return for participation in the Program, Owner shall

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2 agree to operate the Project as a hotel; participate in the Palm Springs Convention Center's Committable Rooms Program; and provide City with a minimum of two (2) room-nights per month for official City use; and, City agrees to share a percentage of Transient Occupancy Tax Increment with Owner pursuant to the Program guidelines.

G. The City finds that the approval of this Covenant is Categorically Exempt from CEQA under Section 15301 of the California Administrative Code as the Hotel Operations Incentive Program applicable to Owner's Hotel applies to the operation, repair, maintenance, or minor alteration of existing structures, facilities, mechanical equipment involving no material expansion of use beyond that previously existing.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Participant hereby conveys to the City the Operating Covenants described herein and City hereby agrees to provide Owner with funds as provided under the Program and as set forth hereinafter.

ARTICLE 1

STATEMENT OF OPERATING COVENANTS

1.1. OPERATION AND USE COVENANT. Upon occupancy, Owner covenants to operate, maintain, and use the YARA HOTEL in accordance with this Agreement. All uses conducted on the Site, including, without limitation, all activities undertaken by the Owner pursuant to this Agreement shall, in all material respects, conform to requirements of this Agreement and Palm Springs Municipal Code (PSMC).

1.2. HOTEL USE. The Owner hereby agrees that the Project is to be owned, managed, and operated as a hotel (as defined by 5.36.020 of the PSMC) in a first-class manner, and the Project's participation in the Program shall continue in accordance with the terms of the Program, for a term equal to ten (10) years, commencing upon the date Owner first receives from the City the Owner's share of transient occupancy tax revenues pursuant to the Program unless and until Owner's participation in the Program is terminated prior thereto in accordance with this Agreement (the "Term").

1. Housing Uses Prohibited. None of the rooms in the Project will at any time be utilized as a non-transient residential property including dormitory, fraternity or sorority house, rooming house, nursing home, hospital, sanitarium, or trailer court or park without the City's prior consent which consent may be given or withheld in its sole and absolute discretion.

2. Conversion of Project. No part of the Project will at any time be owned by a cooperative housing corporation, nor shall the Owner take any steps in connection with the conversion to such ownership or uses to condominiums, or to any other form of ownership, without the prior written approval of the City Council which approval may be given or withheld in its sole and absolute discretion.

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3 ARTICLE 2

WARRANTIES AND COVENANTS

2.1. WARRANTIES AND COVENANTS. For the Term of this Agreement, the Owner hereby represents, covenants, warrants and agrees as follows:

1. Owner has completed the City's application for the Hotel Operations Incentive Program. The City has determined the Transient Occupancy Tax Base to be used to calculate the Transient Occupancy Tax Increment shall be $38,396.99$102,481.21, and the Owner accepts such Transient Occupancy Tax Base.

2. Owner hereby agrees to subscribe to the Palm Springs Convention Center's Committable Rooms Program or any similar successor program as identified by the City Manager without being obligated to incur any additional costs or expenses.

3. Upon City's prior request, Owner shall provide the City at no cost two (2) rooms for one (1) night (or 1 room for 2 nights) other than Friday or Saturday nights each month for use for City purposes as approved or designated by the City Manager, provided that such use by the City shall be subject to the rooms being available at the time of the City's request. Such accommodations shall include all services and amenities for which the Owner would normally collect transient occupancy taxes but will not include services and amenities that are optional to the transient and for which the transient is not required to pay a transient occupancy taxes. City shall be responsible for any transient occupancy taxes for any occupancy provided to City under the provisions of this paragraph. Notwithstanding anything in this Agreement to the contrary, if the City does not use rooms during any month, then its right to use rooms with respect to that month shall expire at the end of that month and shall not accrue; provided, however, if the City was unable to use rooms solely because Owner's Hotel had no rooms available when the City requested a room in accordance with this Section

2.1.3, then, the City's right to use rooms shall not expire and may be used by the City in the next subsequent month.

ARTICLE 3

MAINTENANCE

3.1. MAINTENANCE.

1. Maintenance Obligation. Owner, for itself and its successors and assigns, hereby covenants and agrees to maintain and repair or cause to be maintained and repaired the Site and all related on-site improvements and landscaping thereon, including, without limitation, buildings, amenities, parking areas, lighting, signs and walls in a first class condition and repair, free of rubbish, debris and other hazards to persons using the same, and in accordance with all applicable laws, rules, ordinances and regulations of all federal, state, and local bodies and agencies having jurisdiction, at Owner's sole cost and expense. Such maintenance and repair shall include, but not be limited to, the following:
(i) sweeping and trash removal; (ii) the care and replacement of all irrigation, shrubbery, plantings, and other landscaping to maintain it in a healthy condition; and (iii) the repair,

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4 replacement and restriping of asphalt or concrete paving using the same type of material originally installed, to the end that such paving at all times be kept clearly marked and in a level and smooth condition. In addition, Owner shall be required to maintain the Property in such a manner as to avoid the reasonable determination of a duly authorized official of the City that a public nuisance has been created by the absence of adequate maintenance such as to be detrimental to the public health, safety or general welfare or that such a condition of deterioration or disrepair causes appreciable harm or is materially detrimental to property or improvements within one thousand (1,000) feet of such portion of the Site.

2. Parking and Driveways. The driveways and traffic aisles on the Site shall be kept clear and unobstructed at all times.

3. Right of Entry. In the event Owner fails to maintain the Site in the abovementioned condition, and satisfactory progress is not made in correcting the condition within thirty (30) days from the date of written notice from City (which notice shall reasonably identify the required maintenance), City may, at City's option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter, either City or its employees, contractors, or agents, may cure Owner's default by entering upon the Site and performing the necessary landscaping and/or maintenance in accordance with Section 3.1.1 above. The City shall give Owner, its representative, or the residential manager reasonable notice of the time and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out this Agreement. Owner shall pay such costs as are reasonably incurred by City for such maintenance, including attorneys' fees and costs.

4. Lien. If any costs incurred by City under Section 3 above are not reimbursed within thirty (30) days after Owner's receipt of City's written request for reimbursement, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of the lower of ten percent (10%) per annum or the legal maximum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney's fees, shall be an obligation of Owner as well as a lien and charge, with power of sale, upon the property interests of Owner, and the rents, issues and profits of such property. City may bring an action at law against Owner obligated to pay any such sums or foreclose the lien against Owner's property interests. Any such lien may be enforced by sale by the City following recordation of a Notice of Default of Sale given in the manner and time required by law as in the case of a deed of trust; such sale to be conducted in accordance with the provisions of Section 2924, et seq., of the California Civil Code, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law.

Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust covering an ownership interest or leasehold or subleasehold estate in and to any Site approved by City pursuant to the Agreement, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof; provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incurred subsequent to such foreclosure,

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5 assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject Site after the date of such foreclosure sale, shall become a lien upon such Site upon recordation of a Notice of Assessment or Notice of Claim of Lien as herein provided.

ARTICLE 4

COMPLIANCE WITH LAWS

4.1. COMPLIANCE WITH LAWS. Owner shall comply with all ordinances, regulations, and standards of the City applicable to the Site. Owner shall comply with all rules and regulations of any assessment district of the City with jurisdiction over the Site.

4.2. PREVAILING WAGE. In accordance with California Labor Code section 1781(a)(2), the Participant acknowledges that the City has expressly indicated to the Participant and persons associated with the Participant that laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et seq. and Palm Springs Municipal Code Section

7.06.030(1). The Participant agrees with the City that the Participant shall assume the responsibility and be solely responsible for payment of the prevailing per diem wage rate for their labor classification.

The Participant, on behalf of itself, its successors, and assigns, waives and releases the City from any right of action that may be available to it pursuant to California Labor Code Sections 1726 and 1781.

The Participant acknowledges the protections of Civil Code Section 1542 relative to the waiver and releases contained in this section 4.2, which reads as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR

OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR

HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF

KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED THE PARTY.”

BY INITIALING BELOW, THE PARTICIPANT KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 SOLELY IN CONNECTION WITH THE WAIVERS AND RELEASES OF THIS SECTION 4.2.
____________
Participant’s Initials
Additionally, in accordance with this section 4.2, the Participant shall indemnify, defend with counsel acceptable to the City, and hold the City harmless against any claims pursuant to California Labor Code Sections 1726 and 1781 arising from this Covenant or the construction or operation of the Project.

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6 ARTICLE 5

NONDISCRIMINATION

5.1. NONDISCRIMINATION. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, gender, sexual orientation, gender identity, gender expression, marital status, national origin, ancestry, physical or mental disability, or medical condition in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, or any part thereof, nor shall Owner, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of guests or vendees of the Site, or any part thereof.

ARTICLE 6

COVENANTS TO RUN WITH THE LAND

6.1. COVENANTS TO RUN WITH THE LAND. Owner hereby subjects the Site to the covenants, reservations, and restrictions set forth in this Agreement. City and Owner hereby declare their express intent that all such covenants, reservations, and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Site; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions shall expire. All covenants without regard to technical classification or designation shall be binding for the benefit of the City, and such covenants shall run in favor of the City for the entire term of this Agreement, without regard to whether the City is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Site or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed or other instrument.

City and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner's legal interest in the Site is rendered less valuable thereby. City and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and includes the enjoyment and use of the Project by the intended beneficiaries of such covenants, reservations, and restrictions, and by furthering the public purposes for which the City was formed.

Owner, in exchange for the City entering into the Agreement, hereby agrees to hold, sell, and convey the Site subject to the terms of this Agreement. Owner also grants to the City the right and power to enforce the terms of this Agreement against the Owner and all persons having any right, title or interest in the Site or any part thereof while such party owns the Site. No party shall have any liability or obligation in connection with any breach occurring while such party is not the owner of the Site.

Within fifteen (15) business days after request of Owner, City shall execute and provide to Owner an estoppel certificate, in the form approved by the City Attorney of the City, confirming whether or not Owner is in breach of any obligations under this Agreement and identifying any required cure.

D – Page 1804 of 1899
7 ARTICLE 7

INDEMNIFICATION

7.1. GENERAL INDEMNIFICATION. Participant agrees, for itself and for its successors and assigns, to indemnify, defend with counsel acceptable to the City, and hold the City, together with its officers, members, officials, employees, agents, volunteers, and representatives, harmless from and against any loss, liability, claim or judgment arising from or related to Participant’s participation in the Hotel Operations Incentive Program pursuant to Palm Springs Municipal Code Chapter 5.26.

7.2. ATTORNEYS' FEES. In the event that a party to this Agreement brings an action against the other party hereto by reason of the breach of any condition, covenant, representation or warranty in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable expert witness fees, and its reasonable attorney's fees and costs. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery.

7.3. AMENDMENTS. This Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside.

7.4. NOTICE. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto:

City: City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Manager
Copy to: Office of the City Attorney
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Attorney
Owner: YARA HOTEL
221 E Sonora Road Drive
Palm Springs, CA 92264
Attn: David J. Jornelli
The notice shall be deemed given three (3) business days after the date of mailing, or, if personally delivered, when received.

D – Page 1805 of 1899
7 D – Page 1806 of 1899
8 7.5. SEVERABILITY/WAIVER/INTEGRATION

1. Severability. If any provision of this Agreement or portion thereof, or the application to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of the provisions, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby; provided, that if any material terms or provisions of these Operating Covenants are rendered invalid, void and/or unenforceable, or due to changes in the law such terms or provisions would materially alter the terms of the transactions contemplated herein, the parties agree to meet and negotiate in good faith to attempt to reform these Operating Covenants to accomplish the intent of the parties.

2. Waiver. A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right.

3. Integration. This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement.

4. Third Parties. No third-party beneficiaries are intended, and the only parties who are entitled to enforce the provisions of these Operating Covenants are the City, Mortgagees, Participant and their respective successors and assigns.

7.6. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California and is subject to the provisions of Government Code Section 53083.

7.7. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall constitute one original and all of which shall be one and the same instrument.

7.8. TERMINATION. This Agreement may be terminated only (i) by and upon expiration of the Term, (ii) by mutual written agreement of the parties, and (iii) by and pursuant to the provisions of Section 7.9 or 7.10 below. In the event of any termination of this Covenant, Owner (or its successor, as applicable) shall not be obligated to return any amounts previously paid to it by the City pursuant to the Program.

7.9. DEFAULT BY OWNER. If at any time during the Term, City contends that Owner has committed a material default with respect this Agreement, e.g., by failing to operate the Hotel as a Hotel, City shall deliver to Owner written notice of default which specifies in detail all facts alleged by City to constitute such default. For a period of thirty days thereafter, Owner will have the right to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty days to cure, and the Parties so agree, Owner will have such addition time as is reasonably necessary to complete such cure. Subject to Section 7.11 below, if Owner fails to timely cure such default, City shall then have the right to terminate this Agreement. (To the extent of any inconsistency between the provisions of this Section

7.9 and the provisions of Section 3.1 above, the provisions of this Section 7.9 shall prevail.)

D – Page 1807 of 1899
9 7.10 DEFAULT BY CITY. If at any time during the Term, Owner contends that City has committed a material default with respect this Agreement, Owner may deliver to City written notice of default that specifies in detail all facts alleged by Owner to constitute such default. For a period of thirty days thereafter, City will have the right to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty days to cure, and the Parties so agree, City will have such addition time as is reasonably necessary to complete such cure. Subject to Section 7.11 below, if City fails to timely cure such default, Owner shall then have the right to terminate this Agreement or exercise any and all other rights and remedies available at law and in equity, and each of such rights and remedies shall be cumulative and not exclusive.

7.11 MORTGAGE PROVISONS. Anything in this Agreement to the contrary notwithstanding, with respect to any recorded mortgage or deed of trust given in good faith and for value and encumbering the Hotel (“Mortgage”), any holder thereof that has delivered to City a copy of such recorded Mortgage and current contact information (“Mortgagee”) will be entitled rights and benefits in accordance with the following:

1. City acknowledges and agrees that the rights and obligations of Owner under this Agreement may, with or without approval by City, be conditionally assigned by Owner to any Mortgagee as security for performance of Mortgage obligations.

2. While any Mortgage remains in effect, City will not amend or modify this Agreement in any material respect without receiving prior written approval from Mortgagee, which approval may not be unreasonably withheld, delayed or conditioned; provided, however, failure by Mortgagee to provide written approval or disapproval (and if disapproval the reasons therefor) within thirty days of delivery of request therefor shall be deemed to constitute approval by Mortgagee.

3. While any Mortgage remains in effect, in the event City delivers to Owner of any notice of default as referenced in either Section 3.1 or 7.9 above, City shall concurrently deliver a copy thereof to Mortgagee.

4. Delivery of any such notice of default notwithstanding, City will not terminate or initiate or pursue any action to terminate this Agreement as long as Mortgagee diligently (i) declares a default by Owner under the Mortgage, (ii) pursues foreclosure and/or other appropriate actions under the Mortgage, (iii) pays to City all amounts that would otherwise have been payable by Owner to City, and (iv) cures non-monetary defaults.

7.12 Operator Provisions. City acknowledges and agrees that operational obligations of Owner may, with or without consent of City, be assigned by Owner to any entity owned or wholly controlled by Owner or its Members or Hotel Operator of Owner’s choice, and, in connection therewith, such Hotel Operator may assume all or part of Owner’s Hotel operation obligations under this Agreement; provided, however, Owner shall retain ultimate responsibility for such Hotel operation obligations. City agrees that while any Hotel Operator agreement is in effect, and provided that City has been put on notice of such agreement and received contact information for such Operator, in the event City delivers to Owner of any notice of default as referenced in either Section

3.1 or 7.9 above, City shall concurrently deliver a copy thereof to the Operator.

D – Page 1808 of 1899
10 7.13 RESERVED.

7.14 Cooperation. Each party agrees to and shall do and perform such other and further acts and properly execute and deliver such other and further documents as may be reasonably necessary, expedient or convenient to implement and/or effectuate the intents and purposes hereof.

City and Owner agree to cooperate with each other and/or with any Mortgagee or proposed Mortgagee, in a manner consistent with concepts and principles of good faith, fair dealing and commercial reasonableness, with respect to consideration, implementation and execution of any modification(s) to this Agreement reasonably requested by the City, Owner, Mortgagee or proposed Mortgagee.

7.15 Reasonable Approvals. Whenever this Agreement requires or calls for the approval or consent of any party hereto, such approval shall not be unreasonably withheld, delayed or conditioned.

7.16 Binding Arbitration. In the event of any dispute or controversy arising out of or relating to this Agreement, or the breach or performance of it, the parties shall reasonably attempt to resolve such dispute or controversy without resort to third party review or resolution. The parties shall first meet and confer on any such dispute or controversy. Such meeting(s) shall include any principal of the Owner and, at the discretion of the City, may include the City Manager and/or the City Council, either as a whole or through an ad hoc subcommittee designated by the City Council.

Upon a determination by the parties that they are or will be unable to resolve the dispute or controversy on their own, then the parties shall submit the dispute, controversy or any remaining unresolved matter to binding arbitration, to be held in the Coachella Valley, and be conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association.

7.17 Incorporation of Recitals and Exhibits. Each of the recitals set forth above and each of the exhibits attached hereto are agreed to and made part of this Agreement.

7.18 Authority. Each party represents and warrants to the other that such party has full right, power and authority to sign, execute and enter into this Agreement. [END -- SIGNATURES ON NEXT PAGE]

D – Page 1809 of 1899
10 D – Page 1810 of 1899
11 IN WITNESS WHEREOF, the City and Owner have executed this Operations Covenant by duly authorized representatives on the date first written hereinabove. "CITY"

THE CITY OF PALM SPRINGS,
a municipal corporation and charter city
By:

ATTEST:

Scott C. Stiles, ICMA-CM
City Manager
Brenda Pree, MMC, CERA
City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER
By:

Jeffrey Ballinger, Esq.

City Attorney
"OWNER"
By:

Name: David J. Fornelli
Title: Founder
By:

Name: Oscar Bustos
Title: Founder
[END OF SIGNATURES]

D – Page 1811 of 1899
12 D – Page 1812 of 1899
12 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 State of California )
County of )
On before me, ,
Date Here Insert Name and Title of the Officer
personally appeared
Name(s) of Signer(s)
,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
Signature of Notary Public
Place Notary Seal Above

OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description of Attached Document
Title or Type of Document: Document Date:

Number of Pages: Signer(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer’s Name:

Corporate Officer — Title(s):

Signer’s Name:

Corporate Officer — Title(s):

Partner — Limited General Partner — Limited General
Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other:

Signer Is Representing:

Other:

Signer Is Representing:
©2014 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

D – Page 1813 of 1899
13 D – Page 1814 of 1899

EXHIBIT A

LEGAL DESCRIPTION OF REAL PROPERTY
POR LOT 33 MB 014/652 SD PALM VALLEY COLONY LANDS THAT PORTION OF LOT 33 IN SECTION 23, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SAN BERNARDINO BASE AND MERDIAN, AS SHOWN BY MAP ON FILE OF PALM VALLEY COLONY LAND IN BOOK 14, PAGE 652, OF MAPS, SAN DIEGO COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTH LINE OF THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION WHICH BEARS NORTH 89 DEGREES 34 FEET EAST, 240 FEET FROM THE NORTHWEST CORNER OF SAID SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION; THENCE CONTINUING NORTH 89 DEGREES 34 FEET EAST, 100 FEET; THENCE SOUTH 00 DEGREES 03 FEET WEST AND PARALLEL WITH WEST QUARTER OF SAID SECTION 165 FEET; THENCE SOUTH 89 DEGREES 34’WEST AND PARALLEL WITH SAID NORTH LINE, 100 FEET; THENCE NORTH 00 DEGREES 03’ EAST AND PARALLEL WITH SAID WEST LINE 165 FEET TO THE POINT OF BEGINNING. EXCEPT THE NORTH 30 FEET FOR ROAD PURPOSES.

OPERATIONS COVENANT

FOR HOTEL INCENTIVE PROGRAM
1 D – Page 1815 of 1899

CITY COUNCIL STAFF REPORT
DATE: November 12, 2025 BUSINESS & LEGISLATIVE
SUBJECT: ECONOMIC DEVELOPMENT STRATEGIC FRAMEWORK
FROM: Scott C. Stiles, City Manager
BY: Wayne Olson, Chief Economic Development Officer
SUMMARY:

The Palm Springs Economic Development Strategic Framework (EDSF) is a comprehensive plan designed to guide the City’s economic growth and diversification over the next decade or so (Attachment A). The EDSF outlines a long-term vision that blends Palm Springs’ legacy as a world-class tourism destination with new opportunities in technology, sustainability, and the creative economy. It was developed through extensive data analysis and community engagement to address current challenges (e.g. reliance on tourism, rising costs) and to capitalize on emerging opportunities (e.g. medical growth, renewable energy, tech sector growth). Staff recommends the City Council approve the EDSF and direct staff to initiate implementation.

RECOMMENDATION:

Approve the Palm Springs Economic Development Strategic Framework and adopt its strategic priorities as a guiding policy document.

BACKGROUND:

Palm Springs is a world-class branded City, renowned for tourism and hospitality.

However, our tourism-driven prosperity underscores the City’s strengths but also highlights a key challenge: a tax base heavily reliant on tourism and visitor spending. City leadership recognized that such reliance, coupled with rising business costs and housing prices, increasing regional competition, and seasonal workforce fluctuations, could pose long-term risk to the local Palm Springs economy. In response, the City Council in 2024 opened the Office of Economic Development and directed staff to develop a strategic economic plan to support the current economic contributors while diversifying the local economy and sustaining growth.

Following a competitive procurement process, the City issued RFP 09-24 for economic development consulting services on May 20, 2024. Five proposals were received by June

A – Page 1816 of 1899
City Council Staff Report
November 12, 2025 -- Page 2
Economic Development Strategic Framework
25, 2024, and an evaluation committee of City staff shortlisted two firms for interviews.

The top-ranked firm, CVL Economics LLC, was awarded the contract in July 2024 to facilitate the creation of the Economic Development Strategic Plan (renamed here as EDSF).

Work began in late 2024 on the two-part project: (1) the Economic Development Strategic Framework for the City, and (2) an economic impact analysis for Palm Springs International Airport. The purpose of the EDSF was defined as providing a “roadmap” of strategies, incentives, and interventions to maintain and enhance economic growth in Palm Springs over the near-term (1–2 years), mid-term (3–5 years), and long-term (10+ years).

The EDSF builds upon the City’s vision of a robust and diversified local economy and identifies key Principles, Initiatives, and Actions to drive economic vitality while improving resident well-being. Each of the Actions correlates to a “partner” which defines who would likely be responsible for the action throughout our City’s economic ecosystem.

Plan Development Process – Timeline & Engagement: The EDSF was developed through a collaborative, data-driven process led by the consultant in partnership with the Office of Economic Development. Over the course of the last year, hundreds of stakeholders participated, ensuring the framework reflects community and regional input.

Major milestones in the process were as follow:

1. Project Kickoff (Late 2024 – Jan 2025): Formation of the project team and review of existing documents and plans. In January 2025, the consultant began intensive outreach, including stakeholder interviews and surveys with City officials, business leaders, and community representatives (over 550 responses were received) (Attachment B). Baseline economic data was collected and analyzed, covering employment, demographics, housing, tourism metrics, and more. Early SWOT analysis confirmed Palm Springs’ strong brand, robust tourism sector, and cultural assets as key strengths, while noting weaknesses such as overreliance on hospitality, high housing costs, and workforce constraints. This initial phase established consensus on the urgent need to diversify the economy and improve sustainability. This phase also included the identification of an economic committee to oversee and support the development of the framework.

2. Community Engagement (Feb – Apr 2025): Through February and March, the team held a series of focus groups, roundtables, and community workshops to gather broader input. Industry-specific focus groups (e.g. technology, arts, hospitality, sustainability) and neighborhood forums were convened to surface ideas and concerns. The City Council completed their study session in April that endorsed Economic Development as one of four City priorities. Throughout this period, outreach was inclusive of diverse stakeholders – from small business owners and major employers to residents, nonprofits, tribal representatives, and regional partners – reflecting the collective approach underlying the EDSF.

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City Council Staff Report
November 12, 2025 -- Page 3
Economic Development Strategic Framework
Importantly, the Mayor convened several meetings of the Economic Council to discuss the vision of the plan.

3. Plan Drafting (May – July 2025): Using the input gathered, the consultant and staff developed the strategic framework. In May, a detailed SWOT Analysis was finalized, identifying key opportunities (such as growing a local technology ecosystem, promoting climate innovation, and leveraging remote work trends) and threats (such as climate change impacts on water and heat, growing regional competition, and a declining working-age population). These insights shaped the plan’s strategic priorities. By June 2025, an initial draft EDSF – including vision, strategic pillars, and proposed initiatives – was produced for internal review. A public draft was released in July for community comment, allowing residents and stakeholders to provide feedback on the proposed strategies.

4. Finalization and Approvals (Aug – Oct 2025): Over late summer 2025, public comments were incorporated and the plan was refined into its final form. The Economic Development Strategic Framework now being presented to Council reflects this extensive vetting and consensus-building process. Notably, the EDSF has been crafted to complement regional economic initiatives – for example, it aligns with Greater Palm Springs’ regional diversification efforts (such as Visit GPS’s new “Thrive and Shine” economic development campaign) and Riverside County’s Comprehensive Economic Development Strategy, positioning Palm Springs as a key partner in the broader diversification of the Coachella Valley economy. The final step in the planning process is City Council approval, which will establish the EDSF as an official guiding document for Palm Springs’ economic development. Upon adoption, staff will disseminate the EDSF to the public and begin executing the priority actions.

STAFF ANALYSIS:

Strategic Principles: The EDSF articulates five overarching strategic principles that will drive Palm Springs’ economic development efforts. Each pillar encompasses specific initiatives and action items (short-, medium-, and long-term) to achieve the stated goals:

1. Expand the City’s Economic Development Capacity: Build the City’s internal capacity and partnerships to effectively implement economic development initiatives. This includes aligning City regulations and policies with economic goals, enhancing staffing and resources dedicated to economic development, and exploring new structures such as an Economic Development Authority or publicprivate partnerships to leverage investment. The plan also recommends launching a dedicated economic development website/portal to serve as a “front door” for business resources and information. By boosting organizational capacity and regional collaboration, Palm Springs can more proactively shape its economic future.

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City Council Staff Report
November 12, 2025 -- Page 4
Economic Development Strategic Framework

2. Reinvigorate the Business Climate: Improve the overall business environment to make it easier to start and grow a business in Palm Springs. Key actions include streamlining permitting and regulatory processes, expanding business incentives, creating formal business districts, and supporting extendedhours economy (night-time and off-peak activities). By reducing barriers to entry and actively marketing the city’s opportunities, Palm Springs aims to attract new investment and retain existing businesses, thereby increasing its economic resilience.

3. Bolster Existing Industries: Reinforce and expand Palm Springs’ established sectors – particularly tourism, hospitality, and arts & culture – to sustain the city’s competitive advantage as a premier destination. This includes initiatives to enhance the visitor experience, promote the Convention Center and events, and leverage recent investments like new hotels and attractions. Strengthening these core industries will ensure the city’s legacy economic drivers continue to thrive in a changing market.

4. Seed and Nurture Emerging Clusters: Diversify the economy by developing new industry clusters in technology, innovation, healthcare/wellness, and the creative economy. Palm Springs’ quality of life and unique environment can attract entrepreneurs and remote workers; the plan calls for building a robust tech ecosystem, supporting startups, promoting climate-related innovation, and positioning the city as a hub for health and wellness technology. These efforts will create year-round high-paying jobs and reduce reliance on seasonal tourism.

5. Strengthen Community Assets & Infrastructure: Invest in the critical infrastructure and community resources that underpin economic development and quality of life. This pillar focuses on improving transportation and mobility, expanding affordable and workforce housing, upgrading utilities and broadband, and implementing climate-resilient infrastructure (e.g. cooling and green energy solutions). It also emphasizes creating vibrant public spaces and cultural amenities. By modernizing infrastructure and addressing housing needs, the City will better support residents, workers, and businesses, making Palm Springs a more livable and attractive city for all.

Each strategic pillar is supported by a set of concrete initiatives and action steps (approximately 4–7 initiatives per pillar) which are detailed in the full EDSF document.

The plan assigns time horizons for actions – short-term (1–2 years), medium-term (3–5 years), and long-term (5–10 years) – to facilitate phased implementation and prioritization. This structured approach ensures that “quick wins” (such as process improvements or marketing campaigns) are undertaken in the near term, while more complex projects (like infrastructure upgrades or industry cluster development) are planned over a longer horizon with appropriate resources.

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City Council Staff Report
November 12, 2025 -- Page 5
Economic Development Strategic Framework
The EDSF’s recommendations are also aligned with existing City policies and regional plans to maximize coherence and impact. By pursuing these strategic priorities, Palm Springs seeks to foster a vibrant, inclusive economy that balances growth with quality of life, sustaining the City’s prosperity for decades to come.

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 environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is limited to approving and excepting the subsidy reports, and 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:

Economic Development: Support a vibrant economy, including tourism, and new and existing businesses.

FISCAL IMPACT:

There is no direct fiscal impact in adopting the EDSF itself, but implementation of most strategies will require future budget allocations or grant funding, which would be presented to Council for approval on a case-by-case basis. The current FY2026 budget for Economic Development is approximately $1.3M, which includes earmarks for several of the initiatives described in this report. Of that $1.3M, staff has earmarked $450,000 to implement the immediate priorities (excluding the Convention Center which has its own fiscal plan, separate from Economic Development) by contracting with a management firm for a process and code audit, and for a marketing team for the economic development marketing plan both requiring separate RFP processes. Budget and approval of those contractors will come before the Council as needed. In addition, any new or updates to incentives will come before the Council as a matter of adoption of the policies pursuant to City requirements. Remaining funds are programmed for standing economic development programs, sponsorships and annual departmental costs, excluding staffing.

REVIEWED BY:

Department Director: Wayne Olson
City Manager: Scott Stiles

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City Council Staff Report
November 12, 2025 -- Page 5
Economic Development Strategic Framework

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City Council Staff Report
November 12, 2025 -- Page 6
Economic Development Strategic Framework
ATTACHMENTS:

A. Palm Springs Office of Economic Development Economic Development Strategic Framework – 2025
B. Community survey results – late Spring 2025

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ATTACHMENT A

A – Page 1823 of 1899
1 PALM SPRINGS ECONOMIC DEVELOPMENT STRATEGIC FRAMEWORK: A BLUEPRINT FOR

MODERN INNOVATION, SUSTAINABLE GROWTH, AND COMMUNITY WELL-BEING NOVEMBER 5, 2025 • VERSION 2

EXECUTIVE SUMMARY
Palm Springs faces a defining moment. What began as success—a powerful brand, thriving tourism, cultural cachet—has created new pressures that threaten long-term viability. The city's economic foundation rests on a narrow set of industries, its workforce and housing markets are out of balance, and its infrastructure is strained by climate, cost, and growth.

Between its celebrated past and uncertain future, Palm Springs faces a choice that goes beyond economics. The question is not whether the city will change; external forces guarantee that it will. The question is whether Palm Springs will direct that change or be reshaped by it. This framework argues for the former: a deliberate, community-driven transformation that preserves what makes Palm Springs distinctive while building the fiscal and organizational capacity to meet 21st-century challenges.

The Economic Development Strategic Framework (EDSF) charts a decade-long path to rebalance the local economy, strengthen public capacity, and reimagine the city as a year-round hub for creativity, health, and innovation. This is not about abandoning Palm Springs' identity. It is about reclaiming the experimental, forward-looking spirit that created that identity in the first place.

Developed through extensive stakeholder engagement (including interviews with business leaders, multiple surveys, several community meetings, and collaboration with regional partners) this framework reflects both data-driven analysis and community priorities. The EDSF organizes the city's approach around five guiding principles, each crafted to directly address a core structural challenge:
1 PROBLEM RESPONSE OUTCOME
Principle A: Expand
the City's economic
development capacity
Limited capacity to manage
growth: City systems,
permitting processes, and
administrative coordination
have not kept pace with
development demands,
slowing investment and
eroding confidence.

Strengthen internal capacity,
digital systems, and
interdepartmental
coordination to improve
service delivery, accelerate
project timelines, and
enhance accountability.

A city that operates at the
speed of business—efficient,
transparent, and responsive.

Principle B: Reinvigorate
the business climate
Fragmented business
environment: Entrepreneurs
and investors face a
fragmented landscape —
Create a unified business
environment through
targeted incentives, technical
assistance, and partnerships
A more dynamic, inclusive,
and growth-oriented
business ecosystem that
supports both small
1 The framework encompasses 93 specific actions across three implementation phases: 38 short-term actions (1-2 years), 43 medium-term actions (3-5 years), and 22 long-term transformational investments (5-10 years).

A – Page 1824 of 1899
2 limited incentives,
inconsistent communication,
and uneven access to
resources.
with chambers, tourism
organizations, and Tribal
enterprises.
enterprises and strategic
investment.

Principle C: Bolster core
industries
Overreliance on tourism:

Palm Springs' economic base
is overly reliant on tourism,
hospitality, and events,
leaving the city vulnerable to
seasonality and shocks.

Modernize the tourism and
cultural economy by
expanding group business,
live performance, and
nighttime activity; leverage
arts, design, and LGBTQ+
identity as competitive
advantages.

A year-round economy
rooted in creativity,
experience, and cultural
distinction.

Principle D: Seed and
nurture emerging clusters
Underdeveloped emerging
sectors: The city's futurefacing industries — health,
wellness, creative
technology, and climate
innovation — remain
underdeveloped due to
limited coordination and
educational pathways.

Partner with colleges, health
providers, and private
investors to grow new
clusters in creative economy,
climate adaptation, and
healthcare and wellness
technology, and; align
training and workforce
programs with these sectors.

A diversified economy that
offers higher-wage jobs,
attracts next-generation
talent, and strengthens
regional competitiveness.

Principle E: Strengthen
community assets and
infrastructure
Strained infrastructure and
livability: Rising housing
costs, transportation gaps,
and heat exposure threaten
livability, workforce retention,
and business continuity.

Invest in workforce housing,
multimodal mobility,
renewable energy,
broadband, and shade
infrastructure to support
year-round activity.

A city built for the future—
equitable, connected, and
resilient in the face of climate
and demographic change.

These five principles are interdependent: institutional capacity enables business growth; business growth funds infrastructure; infrastructure supports emerging industries; and emerging industries create the year-round economy that strengthens the city's core assets. The result is a future where Palm Springs is not only a world-class destination, but a community where residents can build lives, careers, and belonging.

WHAT SUCCESS REQUIRES
This framework will succeed or fail based on three factors that transcend policy design:
§ INSTITUTIONAL WILL: The City must maintain focus across electoral cycles, staff transitions, and competing priorities. Economic development operates on timelines that exceed political calendars, and momentum lost is rarely recovered.
§ RESOURCE ALIGNMENT: Many initiatives in this framework require no new funding—only coordination and reprioritization. Others demand significant investment. The City must make

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3 hard choices about where to deploy limited capital and staff capacity, recognizing that attempting everything guarantees achieving nothing.
§ COMMUNITY TOLERANCE FOR EXPERIMENTATION: Not every initiative will succeed. Some partnerships will disappoint. Some businesses will fail despite support. The framework's value lies not in eliminating risk but in creating systematic approaches to manage it. Progress requires permission to try, fail, learn, and adjust.

THE PATH FORWARD
Together, these principles form a cohesive strategy: build institutional capacity, unlock business growth, elevate cultural assets, diversify into emerging industries, and sustain livability. The framework comprises 21 initiatives and 93 actions, each with defined timelines, lead entities, and measurable outcomes. Early wins in years 1-2 will build momentum; sustained progress in years 3-5 will establish new programs; and transformational investments in years 5-10 will define Palm Springs' economic future.

Palm Springs once led the world in redefining modern living. With this framework, it can do so again — not by recreating mid-century optimism, but by applying that era's experimental spirit to contemporary challenges. The city that pioneered new ways of living in the desert can pioneer new models for economic resilience, climate adaptation, and inclusive prosperity. But only if it acts with the same courage that built its reputation in the first place.

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4 INTRODUCTION
In 1963, architect Albert Frey designed a house that seemed to float impossibly above the desert floor, its steel frame and glass walls framing the San Jacinto Mountains like a living photograph. The structure embodied everything Palm Springs represented: bold innovation, seamless integration with the natural environment, and an unwavering belief that thoughtful design could transform how people lived.

The house still stands today, a testament to Palm Springs' identity as fundamentally rooted in modernism—an approach that celebrates the power of human beings to create, improve, and reshape their environment through practical experimentation, scientific knowledge, and technology. Palm Springs emerged into the public consciousness in the 1930s as a glamorous escape for Hollywood stars, but there was so much more incubating behind that facade. What started as a convenient desert retreat evolved into America's first experiment in modern living, where venues like the Chi Chi Club and Racquet Club the alongside Frank Sinatra's Twin Palms residence signaled a place where culture, leisure, and new ways of life converged.

By the mid-century, Palm Springs had blossomed into the undisputed capital of American modernism.

The movement's core principles—infectious optimism, function-driven design, and democratic accessibility—found their fullest expression in the desert city's architecture and lifestyle. This embodied a radical belief that good design could democratize comfort and connect people more deeply to their environment as well as to each other. That legacy made Palm Springs a global icon, not just in design circles, but among the LGBTQ+ community, outdoor enthusiasts, and creatives of all stripes. [CALLOUT BOX #1]. Yet a cultural brand alone does not translate to sustained economic prosperity, and a sense of complacency eventually set in. Over time the city shifted toward a tourism-dominated economy, leaving behind much of the innovation ethos that fueled its rise.

Today, Palm Springs stands at a crossroads. If mid-century modernism was born from a desire for renewal, reinvention, and progress in the post-war era, that same philosophy must be embraced as the city faces significant contemporary challenges. Palm Springs can remain a showcase of mid-century dreams or reassert itself as a living laboratory for redesigning modern life. This strategy seeks to rekindle the city's founding spirit—not by preserving it in amber, but by building a resilient economy, modernizing its systems, and creating space for a new generation of thinkers and creators to redefine what the good life looks like in the desert.

PURPOSE
In 2024, the Palm Springs City Council approved a motion to produce the city’s first Economic Development Strategic Framework (EDSF) under the direction of its newly appointed Chief Economic Development Officer [CALLOUT BOX #2]. This initiative emerges from a critical need to shift from reactive governance to proactive leadership. The city must address the multifaceted challenges that have emerged in recent years through coordinated, strategic action rather than constant crisis management.

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5 The framework provides an overarching vision for Palm Springs' short-, medium-, and long-term future, serving as a coordination mechanism among public and private sector entities, regional bodies, and residents. The development of the EDSF represents a collaborative and systematic process designed to set priorities, allocate resources, and develop policies, programs, and initiatives that improve resident wellbeing while promoting sustainable growth. Rather than accepting the constraints of the current economic model, this framework charts a path toward diversification, innovation, and year-round vitality that honors Palm Springs' unique character while preparing it for future challenges.

WHY NOW?
Palm Springs faces mounting pressures that threaten its long-term economic viability and stability. While the city benefits from a strong identity as a premier leisure destination, these pressures—ranging from housing and workforce issues to climate change, business conditions, and regional competition— underscore the urgent need for comprehensive strategic planning:

§ ECONOMIC CONCENTRATION AND VULNERABILITY: Palm Springs' economy continues to rely heavily on tourism, hospitality, and events. While these sectors remain pillars of the city's identity, overdependence exposes Palm Springs to seasonal volatility and external shocks such as recessions, pandemics, and shifts in travel patterns. In a survey of Palm Springs businesses conducted in the summer of 2025, 82% of respondents said tourism is important to their bottom line, with 68% stating that tourism was either “essential” or “very important”. This concentration limits resilience and constrains opportunities for year-round economic stability. [CALLOUT BOX #3]

§ EVOLVING MARKET DYNAMICS: Travelers' preferences continue to evolve toward flexible, experience-driven offerings, while competing destinations both in the Coachella Valley and beyond are innovating to capture these markets. Both vacation rentals and hotels showed declining tax revenue in May 2025. Short-term rental taxes dropped to $942,525, nearly $160,000 below the prior year and the lowest collection in five years. Hotel taxes, at approximately $3 million, fell to their weakest level in four years. Without strategic adaptation, Palm Springs risks losing market share to more agile competitors. § CHALLENGING BUSINESS ENVIRONMENT: Local businesses frequently cite difficulties navigating permitting, compliance, and regulatory processes. Over two-thirds (68%) of respondents in the business survey stated they have difficulty navigating permitting or licensing requirements, and 50% said the high costs associated with regulatory compliance were major challenges. Complex rules and overly restrictive policies slow expansion, discourage entrepreneurship, and place Palm Springs at a competitive disadvantage compared to neighboring cities with more streamlined systems. This regulatory burden undermines the city's ability to retain existing businesses and attract new investment.

§ HOUSING CRISIS AND WORKFORCE CHALLENGES: Housing costs increased by 83% between 2018 and 2023, fueled in part by demand for short-term rentals and speculative investment, while

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6 wages rose by just under 30%. Many workers are priced out of living local—the median home price in Palm Springs exceeds $1.0 million, compared to an average annual wage of around $46,000—creating persistent labor shortages, long commutes, and retention issues across key industries. Indeed, only 15.5% of Palms Springs workers actually live in Palm Springs. This housing-workforce disconnect threatens the sustainability of the local economy and quality of life for residents.

§ CLIMATE AND ENVIRONMENTAL PRESSURES: Extreme heat, drought, and rising energy costs present pressing concerns for residents, businesses, and the tourism sector alike. These climatedriven challenges threaten livability, increase operational costs, and require proactive investment in resilience and sustainability infrastructure. [CALLOUT BOX #4]

§ REGIONAL COMPETITION: Nearby cities are pursuing aggressive economic development strategies, investing in new infrastructure, and cultivating reputations as business-friendly hubs.

Without a comprehensive plan, Palm Springs risks losing investment, talent, and visitors to regional competitors who are actively courting these opportunities.

§ DEMOGRAPHIC TRANSITIONS: An influx of retirees, remote workers, and creative professionals is reshaping Palm Springs' economic and social landscape. While these groups bring new opportunities, they also increase housing demand and reveal gaps in career pathways for younger residents and mid-career workers seeking local employment. [CALLOUT BOX #5].

§ INFRASTRUCTURE DEFICITS: Aging infrastructure, limited mobility options, and uneven downtown recovery remain barriers to inclusive growth. Strategic investment and coordination are needed to ensure revitalization benefits both residents and small businesses while supporting broader economic development goals.

§ EXTERNAL UNCERTAINTIES: Finally, ongoing economic and policy uncertainty at the national level continue to create ripple effects in Palm Springs, influencing international tourism, driving up costs, and reshaping workforce availability in hospitality. These external pressures underscore the need for strong local and regional strategies to build resilience.

Together, these pressures make clear that Palm Springs cannot rely on past strengths alone to secure its future. The city must act with urgency to diversify its economic base, modernize its operations, and create conditions that support year-round stability for residents, businesses, and visitors alike.

UNDERSTANDING TRADE-OFFS
To address these challenges effectively, stakeholders must acknowledge that meaningful progress requires difficult tradeoffs. Improving economic and social conditions for residents, workers, and businesses will not be possible without deliberate efforts to promote growth and development. Palm Springs confronts fiscal deficits and structural revenue constraints that limit its ability to invest in

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7 infrastructure, housing, and quality-of-life improvements. Simply maintaining the status quo will not generate the resources necessary to tackle rising costs, climate adaptation, or workforce retention.

The reality is stark: without proactive economic development, Palm Springs will lack the fiscal capacity to address its most pressing challenges. Housing affordability, infrastructure modernization, climate adaptation, and workforce development all require substantial public and private investment. These investments can only be sustained through a more diversified, resilient economic base that generates revenue throughout the year rather than relying primarily on seasonal tourism. [CALLOUT BOX #6] Expanding the city's revenue base is therefore essential, and stronger fiscal health cannot be achieved without embracing change. This means making strategic choices about land use, business regulations, and regional partnerships; welcoming new industries alongside tourism; and balancing preservation of Palm Springs' unique character with the flexibility needed to adapt to a shifting economy. By facing these tradeoffs directly, the city can chart a course that secures fiscal stability, strengthens resilience, and ensures long-term prosperity for the entire community. The alternative—maintaining the status quo while hoping external pressures will diminish—risks further erosion of the city's competitive position and, by extension, overall well-being.

MAPPING THE PLANNING PROCESS
The economic development strategic planning process began in September 2024 and spanned several distinct phases, each designed to gather comprehensive input and build consensus around strategic priorities. The process followed a systematic methodology that combined quantitative analysis with extensive stakeholder engagement to ensure the resulting plan reflects both data-driven insights and community priorities.

The process began with a document review and several rounds of data analysis, which examined existing plans, policies, and economic indicators to establish baseline conditions. This phase included analysis of demographic trends, economic performance metrics, fiscal conditions, and regional comparative data to understand Palm Springs' current position and trajectory.

Interviews and focus groups represented the core of the preliminary stakeholder engagement process, involving dozens of conversations with business leaders, residents, city staff, elected officials, and regional partners. These discussions identified key challenges, opportunities, and priorities from multiple perspectives, ensuring the plan addresses real-world concerns and builds on existing assets.

The Office of Economic Development also administered surveys to local businesses and residents to capture broader community perspectives on economic challenges and opportunities. Additional surveys were conducted with participants at major Palm Springs events including Greater Palm Springs Pride Festival, Modernism Week, and VillageFest to understand visitor experiences, spending patterns, and perceptions of the city's economic offerings.

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8 Findings from previous phases were finally synthesized into a coherent framework of principles, initiatives, and actions, with clear timelines and implementation pathways (see the “Strategic Framework Plan” that follows this narrative). This phase included examination of successful economic development strategies from comparable communities, identifying innovative approaches and proven methodologies that could be adapted to Palm Springs' unique context and challenges.

Central to the strategic planning effort was the development of a comprehensive SWOT (strengths, weaknesses, opportunities, and threats) analysis. By examining internal advantages and limitations alongside external trends and risks, it provides a balanced picture of the factors shaping Palm Springs’ economy and identifies where the city can build on existing assets, address vulnerabilities, and position itself to seize emerging opportunities while mitigating potential challenges. Key stakeholder insights that frequently emerged included the following:
§ STRENGTHS: Palm Springs has a powerful brand and established tourism infrastructure that money can't buy. The airport connects directly to major markets. Festivals and cultural events create year-round activity. Demographic diversity and outdoor recreation access enhance quality of life for residents and visitors.
§ WEAKNESSES: Housing costs are pricing out essential workers. Tourism dependence creates seasonal volatility. Business owners cite permitting and regulatory challenges that neighboring cities have largely solved. Limited public transit and aging infrastructure constrain growth potential.
§ OPPORTUNITIES: Business tourism represents immediate revenue potential. Technology ecosystem development can capitalize on remote work trends. Creative economy initiatives can leverage the city's cultural assets. Regional partnerships can address shared challenges while reimagined zoning can unlock development potential.
§ THREATS: Climate change impacts are accelerating. Regional competition is intensifying.

Consumer preferences continue shifting toward flexible, experience-driven options. Limited public sector capacity and fiscal pressures constrain response options.

In short, the SWOT analysis reveals a city at an inflection point. Strengths provide a foundation for growth, but weaknesses and threats are gaining ground. The window for proactive change is open, but it won't stay open indefinitely.

DEVELOPING THE STRATEGIC FRAMEWORK
Building on SWOT analysis insights, the EDSF translates identified strengths, weaknesses, opportunities, and threats into a clear set of initiatives and actions across short-, medium-, and long-term time horizons.

The framework's purpose is to provide an actionable roadmap that responds to immediate challenges while positioning Palm Springs for long-term, inclusive prosperity. Organized around five guiding

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9 principles, the framework balances the need to strengthen core industries with the imperative to diversify into emerging sectors, while enhancing community assets and institutional capacity:
§ PRINCIPLE A: EXPAND THE CITY'S ECONOMIC DEVELOPMENT CAPACITY focuses on building the organizational foundation necessary for effective economic development. This includes aligning city resources, modernizing policies and regulations, strengthening cross-departmental coordination, and developing the staffing and partnerships needed to implement ambitious economic development initiatives.

§ PRINCIPLE B: REINVIGORATE THE BUSINESS CLIMATE emphasizes creating conditions that support business formation, expansion, and retention. Key elements include streamlining permitting processes, expanding financial incentives for priority industries, establishing designated business districts, supporting nighttime economy development, and improving business resilience through emergency preparedness and recovery assistance.

§ PRINCIPLE C: BOLSTER EXISTING INDUSTRIES builds strategically on Palm Springs' established strengths in tourism, arts and culture, and hospitality. Rather than simply maintaining these sectors, this principle focuses on enhancing visitor experiences, leveraging key assets like the Convention Center and airport expansion, and developing Palm Springs' position as a premier destination for business tourism and cultural experiences.

§ PRINCIPLE D: SEED AND NURTURE EMERGING CLUSTERS represents the plan's most ambitious economic diversification component. This principle focuses on developing interconnected industry clusters in technology, climate innovation, health and wellness, and the creative economy. By leveraging geographic advantages, quality of life assets, and emerging remote work trends, these initiatives aim to create sustainable, year-round economic opportunities through cross-sector collaboration and inclusive growth strategies.

§ PRINCIPLE E: STRENGTHEN COMMUNITY ASSETS AND INFRASTRUCTURE recognizes that sustainable economic development requires supportive infrastructure and quality of life amenities. This principle addresses essential foundations including multimodal transportation, climate-adaptive infrastructure, expanded housing options with emphasis on workforce housing, upgraded telecommunications capabilities, enhanced energy resilience, and vibrant public spaces that support both community life and economic activity.

The framework's five principles are divided into 21 initiatives, each with their own set of actions organized by implementation timeline: 38 short-term actions (1-2 years) provide immediate momentum and demonstrate progress, 43 medium-term actions (3-5 years) build capacity and establish new programs, while 22 long-term actions (5-10 years) represent transformational investments and institutional changes that will define Palm Springs' economic future. This comprehensive approach ensures that immediate needs are addressed while building toward long-term transformation, creating a balanced strategy that can adapt to changing conditions while maintaining focus on core objectives of economic diversification, fiscal sustainability, and inclusive prosperity.

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10 WHAT DOES SUCCESS LOOKING LIKE?
A strategic framework should answer not just "what will we do?" but "what will be different?" The initiatives outlined in this framework span a decade and touch every aspect of Palm Springs' economy.

To understand their cumulative impact, it helps to see them not as a checklist but as a transformation unfolding in stages—each phase delivering visible improvements while laying groundwork for what comes next.
§ YEARS 1-2: THE FOUNDATION | The first changes are practical but consequential. Business owners log into a redesigned permitting portal that cuts approval times from months to weeks, discover tax incentives explained in plain language, and access pre-approved permit packages for common business types. An entrepreneur pitches to a new angel investor network and secures early-stage funding. City Hall operates differently—an internal task force coordinates economic development across departments, and studies launch on workforce housing, heat resilience, and technology ecosystems, replacing guesswork with data. The Convention Center District gets formally defined through zoning updates. College of the Desert begins training programs for virtual production specialists and renewable energy technicians—jobs that don't exist in Palm Springs yet but will soon. The airport announces terminal expansion plans while Visit Greater Palm Springs secures commitments for new air routes. These aren't transformative yet, but the signal is clear: Palm Springs is building capacity to move at the speed of business. § YEARS 3-5: THE STRUCTURE | The investments compound visibly. The airport expansion opens with new direct routes extending the tourism season and bringing year-round business travelers.

A graduate from new medical assistant training earns $23/hour at expanding healthcare facilities, made viable by workforce housing projects breaking ground citywide. Palm Canyon Drive transforms with complete streets—shade structures, wider sidewalks, better lighting—while an Entertainment Zone activates evening business. The Convention Center District hums with coordinated improvements and midweek bookings climb 35%. Streamlined permitting makes development predictable. A creative technology hub, climate innovation showcase, and arts accelerator open their doors. Innovation fund grants bridge startup financing gaps. The Office of Economic Development expands from one person to a full team managing partnerships across sectors. Summer no longer means shuttered businesses—nighttime incentives and climateadapted programming create year-round vitality. § YEARS 5-10: THE LEGACY | By decade's end, transformation is undeniable. The airport's expanded terminal handles international traffic. A health innovation campus attracts medical tourists from Canada and Europe. A climate tech company with 50 employees has chosen Palm Springs for its headquarters, drawn by talent pipelines and renewable energy infrastructure. The Convention Center anchors a mixed-use district where conference attendees walk to restaurants and immersive evening experiences. Digital infrastructure upgrades support remote workers and tech businesses. Workforce housing near employment centers has stabilized labor markets. A high school senior faces a choice her older siblings didn't have: leave for opportunities elsewhere, or stay and build a career in health care, technology, or creative industries that didn't

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11 exist when they graduated. That choice—the ability to build a life in Palm Springs beyond serving tourists—is the clearest measure of success.

What hasn't changed: Palm Springs' identity is stronger than ever. Modernism Week, Greater Palm Springs Pride, and the LGBTQ+ community that defined the city's character continue to shape its economy and culture. The difference is that this foundation now supports an economy diverse enough to weather any shock.

UNDERSTANDING THE RISKS
This narrative is ambitious by necessity, and ambition carries risk. Not every initiative will succeed on the proposed timeline. Some partnerships may take longer to form than anticipated. Market conditions may shift. Political priorities may change. These are not reasons to avoid action—they are reasons to build adaptability into implementation. The framework balances quick wins (permitting reforms, business incentives) with longer-term bets (innovation campuses, new industry clusters). Early initiatives are designed to demonstrate progress and build momentum while the city develops capacity for more complex work. The goal of this framework is not to eliminate uncertainty but to manage it deliberately, acknowledging where obstacles are likely to arise and building the adaptive capacity to respond. If not proactively managed, impediments to progress may include:
§ INSTITUTIONAL RISKS: Implementation depends on consistent leadership, dedicated staff, and stable funding. Changes in priorities, turnover, or constrained budgets could slow progress.

Strengthening interdepartmental coordination, diversifying revenue streams, and pursuing state, federal, and private partnerships will help sustain momentum. § ECONOMIC RISKS: Broader economic forces—rising costs, tourism shifts, or downturns—could alter project timelines and feasibility. Building flexibility into implementation, prioritizing quick wins, and stress-testing major investments against multiple scenarios will help maintain resilience.
§ COORDINATION RISKS: Many initiatives require collaboration with regional partners such as Visit Greater Palm Springs, SunLine Transit, and the Coachella Valley Association of Governments.

Misalignment of priorities or unclear accountability could hinder progress. Establishing formal agreements and shared metrics can reduce this risk.
§ POLITICAL RISKS: Growth and change may generate public concern, particularly around affordability, housing, and preservation of local character. Transparent communication, visible early successes, and opportunities for residents to shape implementation will be essential for maintaining trust and support.
§ EQUITY RISKS: Without intentional design, new economic growth could bypass historically underserved communities and deepen disparities. Workforce programs, housing initiatives, and small-business supports must be structured to ensure broad access to opportunity and prevent further economic polarization.

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12 MOVING FORWARD
The path ahead requires more than good intentions—it demands collective action from every corner of the Palm Springs community. This strategic framework provides direction, but success depends on businesses willing to invest in local workforce development, residents who support balanced growth that strengthens the fiscal foundation, city leaders who prioritize implementation over politics, and regional partners who recognize shared challenges require coordinated solutions.

By embracing the opportunities outlined in the following pages, Palm Springs can position itself as a model for cities facing similar challenges nationwide and around the world. It has the chance to pioneer climate-adaptive tourism, demonstrating how destinations can remain vibrant even as rising temperatures challenge the global travel industry. It can show how a community can evolve from a tourism-dependent economy to an innovation-driven economy that amplifies and complements its hospitality strengths rather than replacing them. Most importantly, it can illustrate how cultural and historical preservation can coexist with progress, ensuring that Palm Springs' unique identity is safeguarded while the city adapts to an evolving economic landscape.

The modernist pioneers who shaped Palm Springs in the 1940s and 1950s didn't simply preserve what came before—they imagined something better and built it. They understood that respecting the past while embracing the future requires courage, creativity, and collaboration. Today's challenges are different, but the opportunity for transformational thinking remains the same.

Economic development isn't a zero-sum game where growth comes at the expense of community character. Done thoughtfully, it can strengthen what residents value most: quality of life, cultural vibrancy, and fiscal stability that supports essential services. The choice isn't between change and preservation—it's between strategic change that serves community priorities or reactive change imposed by external forces.

Palm Springs has the assets, the expertise, and the community engagement to succeed. The strategic framework provides direction. The timeline creates urgency without unrealistic expectations. The only missing ingredient is sustained commitment from stakeholders across the community to turn these plans into reality. This desert city that once pioneered modern living can pioneer sustainable, inclusive economic development for the 21st century. But that future won't create itself; it requires the same bold experimentation and collaborative spirit that built Palm Springs' original reputation as a place where innovation and the good life thrive.

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13 CALLOUT BOXES

1. IDENTITY AS INFRASTRUCTURE: Palm Springs' cultural significance extends far beyond architecture. The city's LGBTQ+ identity represents its most distinctive competitive advantage—a joyful, creative, and inclusive community that attracts visitors, workers, and businesses seeking authenticity and belonging. This is not merely a social characteristic; it is an economic differentiator that drives medical tourism, supports specialized healthcare services, anchors cultural festivals, and creates an environment where creativity and innovation thrive. Any economic strategy that overlooks this asset risks losing what makes Palm Springs irreplaceable.

2. WHY ECONOMIC DEVELOPMENT MATTERS: Economic development is how a city builds the foundation for long-term success. It is not a single program or department—it is the strategic approach dedicated to aligning a city’s businesses, workforce, land, infrastructure, and institutions toward a shared vision of opportunity. When done well, economic development ensures that progress in one area—housing, tourism, innovation—reinforces progress in others. For Palm Springs, expanding this capacity means moving from reaction to direction, from managing day-to-day challenges to intentionally shaping the city’s future. It is the work that makes every other kind of progress possible, turning creativity, investment, and collaboration into lasting public value.

3. FOUR SECTORS, HALF THE ECONOMY: More than half of Palm Springs' jobs concentrate in just four industries. three are growing: healthcare (+10.3% over four years, averaging $43,516) and government (+52.2%, averaging $79,938), and retail trade (+8.6%, averaging $38,082). However, the government sector's recent growth is unlikely to continue—revenue constraints and fiscal pressures will limit public sector expansion in the coming years. And while retail trade jobs may be on the rise, their low wages and seasonal nature do not provide strong economic security for industry workers.

Meanwhile, the city’s second largest sector, accommodation and food services, contracted by 13.2% between 2019 and 2023, and worked only earned $32,620 in annual wages on average. When a city's economic foundation rests on four sectors—two of which pay below-median wages and face headwinds, and a third constrained by budget realities—a single shock can ripple through the entire workforce. This concentration amplifies the case for strategic diversification.

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14 4. THE CLIMATE INFLECTION POINT: For four decades (1950-1990), Palm Springs experienced relatively stable extreme heat patterns—averaging 40-60 days per year with occasional spikes. Then, around 2000, the pattern shifted permanently. Extreme heat days jumped to 80-110 annually and have remained elevated ever since. This represents a fundamental change in Palm Springs' climate baseline, not cyclical variation. Businesses designed for 50 days of extreme heat now operate in an environment with twice that exposure. Economic development strategy must account for this new reality through infrastructure investment, programming adaptation, and industry diversification that works WITH extreme heat rather than against it.

5. A GRAYING ECONOMY: Palm Springs' age distribution diverges sharply from regional norms, creating both significant opportunity and urgent challenges. With nearly 40% of residents aged 65+—double Riverside County's rate—Palm Springs has one of the oldest populations in Southern California. While Riverside County's largest cohorts fall in the prime working years (40-54), Palm Springs concentrates heavily in the 70-84 age range, with the 70-79 cohort alone representing roughly 20% of the city's population.

This demographic reality creates substantial economic opportunity. As 11,000 Americans turn 65 daily, demand for specialized healthcare, senior living, wellness services, and aging-in-place solutions will only intensify. But the opportunity comes with a structural challenge: Palm Springs shows a pronounced shortage of residents in their prime working years (25-44), the very cohort needed to staff healthcare facilities, hospitality businesses, and service industries that serve an aging population.

Without strategic intervention (namely, workforce housing, career pathways, family-friendly amenities) Palm Springs risks becoming a retirement community unable to staff its own service economy. Economic diversification must simultaneously capture the silver economy opportunity while creating conditions that attract and retain younger workers essential to sustaining it.

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15 6. THE FISCAL ROLLERCOASTER: Palm Springs' largest revenue source—transient occupancy tax from hotels and short-term rentals—swings wildly year to year. After plummeting to $32 million during the pandemic, TOT revenue spiked to $62 million in FY2021-22, then declined to $51 million by FY2024-

25. These $10-30 million swings make long-term capital planning nearly impossible. Meanwhile, property tax—the most stable revenue source—has remained essentially flat at $31 million for seven years despite inflation and growing infrastructure needs. Aggregate tax revenue in FY2024-25 sits at $190 million in inflation-adjusted dollars—barely above pre-pandemic levels despite rising costs for climate adaptation, workforce housing, and infrastructure modernization. This volatility and stagnation explain why diversification isn't optional: the City cannot fund 21st-century challenges with a revenue base stuck in 2018.

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16 HOW TO USE THIS DOCUMENT
This Economic Development Strategic Framework is organized as a hierarchical structure designed to connect high-level vision with specific, actionable steps. Understanding this structure will help you navigate the document and see how individual actions contribute to broader economic goals. * * *

Strategic Framework: The overarching structure that organizes the framework's vision, principles, initiatives, and actions into a coherent roadmap for advancing the Palm Springs economy. The framework provides the "big picture" and shows how different components work together.

Principles: Five high-level goals that define what the City seeks to achieve in support of economic development. Each principle addresses a core need or opportunity:
§ Principle A: Expand the City's Economic Development Capacity § Principle B: Reinvigorate the Business Climate
§ Principle C: Bolster Core Industries
§ Principle D: Seed and Nurture Emerging Clusters
§ Principle E: Strengthen Community Assets and Infrastructure

Initiatives: Focused approaches or methods for achieving each principle's objectives. The framework contains 21 initiatives that outline the "how" and provide thematic direction to guide implementation.

For example, under Principle B (Reinvigorate the Business Climate), initiatives include "Simplify permitting and improve ongoing engagement with the business community" and "Expand incentives for businesses in priority industries."

Actions: Specific, practical steps that implement each initiative. Actions are time-bound, measurable, and designed to drive tangible progress. The framework includes 93 actions distributed across three time horizons:
§ Short Term (1-2 years): 38 actions that provide immediate momentum and demonstrate progress § Medium Term (3-5 years): 43 actions that build capacity and establish new programs § Long Term (5-10 years): 22 actions representing transformational investments and institutional changes
Each action in the Strategic Framework section includes a designated time horizon and identifies a lead entity responsible for implementation. This structure allows readers to understand both the strategic intent behind each action and the practical steps required to achieve it.

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17 THE ECONOMIC DEVELOPMENT STRATEGIC FRAMEWORK
VISION: Palm Springs aims to build an economic ecosystem that blends its legacy as a world-class tourism destination with emerging opportunities in technology, sustainability, and the creative sectors.

By developing climate-resilient infrastructure, cultivating year-round economic activity, and promoting a business-friendly environment, Palm Springs will transform into a diverse, export-oriented economy where established local industries thrive alongside innovative clusters with global reach. This balanced approach will enhance the city's distinctive character while creating equitable opportunities and increased quality of life for residents of all ages, sustainable prosperity for businesses, and superlative experiences for visitors during both peak and off-peak seasons.

PRINCIPLE A: EXPAND THE CITY’S ECONOMIC DEVELOPMENT CAPACITY | PAGE 19 Expanding economic development capacity involves aligning city resources, strengthening organizational infrastructure, and enhancing cross-departmental coordination. Improvements to regulatory frameworks, dedicated staffing investments, and public-private partnerships will build a strategic foundation for proactively shaping the city's economic future.

Initiative A1: Streamline City services and permitting processes Initiative A2: Modernize municipal code and land use policies to support economic development Initiative A3: Develop internal coordination mechanisms and build staffing pipeline Initiative A4: Launch economic development website and marketing campaign Initiative A5: Scale economic development beyond City-funded staffing and investments PRINCIPLE B: REINVIGORATE THE BUSINESS CLIMATE | PAGE 23 Barriers to entry will be reduced while expanding economic incentives to foster a resilient commercial environment during both peak and off-peak seasons. Streamlined permitting processes, support for priority industries, enhanced nighttime business opportunities, and targeted marketing efforts will attract new businesses while strengthening existing enterprises throughout Palm Springs.

Initiative B1: Simplify permitting and improve ongoing engagement with the business community Initiative B2: Expand incentives for businesses in priority industries Initiative B3: Establish designated business districts and support policies Initiative B4: Support and expand nighttime business opportunities Initiative B5: Improve business resilience through emergency preparedness, mitigation measures, and recovery assistance
PRINCIPLE C: BOLSTER CORE INDUSTRIES | PAGE 27
Strengthening the tourism, arts and culture, and hospitality sectors remains a continued priority through expanded visitor engagement options and a commitment to promoting the city as an inclusive and

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18 experiential destination. By leveraging key infrastructure investments, these initiatives will build upon existing foundations to support long-term growth while reinforcing Palm Springs' unique character and appeal.

Initiative C1: Establish the Palm Springs Convention Center District Initiative C2: Promote Palm Springs as a premier destination for business tourism Initiative C3: Strengthen and activate the Palm Springs arts and culture Ecosystem Initiative C4: Leverage Palm Springs International Airport expansion Initiative C5: Expand Palm Springs' roster of visitor attractions and hospitality businesses PRINCIPLE D: SEED AND NURTURE EMERGING CLUSTERS | PAGE 32 The plan envisions diversifying the local economy through interconnected industry clusters in technology, climate innovation, health and wellness, and the creative economy. Leveraging geographic advantages and quality of life, Palm Springs aims to become an innovation hub addressing desertspecific challenges while creating sustainable, year-round opportunities through cross-sector collaboration and inclusive growth.

Initiative D1: Build a robust technology ecosystem in Palm Springs Initiative D2: Build equitable talent pipelines and educational pathways to support emerging industries Initiative D3: Establish Palm Springs as a health and wellness technology hub Initiative D4: Expand Palm Springs' creative technology footprint Initiative D5: Promote Palm Springs as an industry leader in desert climate and energy innovation Initiative D6: Develop innovation funds and financing mechanisms PRINCIPLE E: STRENGTHEN COMMUNITY ASSETS AND INFRASTRUCTURE | PAGE 37 Essential infrastructure supporting sustainable economic development requires enhancement through improved transportation options, innovative cooling solutions, and expanded housing accessibility.

Upgraded telecommunications, bolstered energy resilience, and vibrant community spaces will create a more livable, connected community that attracts and retains businesses, workers, and residents.

Initiative E1: Improve multimodal transportation, circulation, and walkability to drive economic growth Initiative E2: Design, promote, and install climate-adaptive infrastructure citywide Initiative E3: Expand housing options with emphasis on workforce housing and live-work spaces Initiative E4: Upgrade telecommunications infrastructure to support business and community needs Initiative E5: Create vibrant public spaces that support community and economic activity SUMMARY OF ACTIONS BY TIME HORIZON | PAGE 42

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19 PRINCIPLE A: EXPAND THE CITY’S ECONOMIC DEVELOPMENT CAPACITY These strategies focus on expanding Palm Springs’ economic development capacity by aligning city resources, strengthening organizational infrastructure, and enhancing coordination across departments and stakeholders. By improving regulatory frameworks, investing in dedicated economic development staffing, establishing a citywide calendar, and exploring the creation of an Economic Development Authority, these initiatives aim to build a more agile, strategic, and well-resourced foundation for longterm economic growth. Through these efforts, Palm Springs can better support businesses, attract investment, and proactively shape the city’s economic future.

Initiative A1: Streamline City services and permitting processes To be an effective and responsive partner to the business community, City Hall must minimize procedural barriers to business development. Streamlined processes, digital systems, and specialized frameworks should provide City departments with efficient tools for consistent service delivery that support economic goals while maintaining necessary oversight. This alignment reduces friction between regulatory responsibilities and business formation, creating a municipal environment where compliance and growth operate as complementary rather than competing priorities.

ACTION TIME HORIZON LEAD ENTITY
Action A1.1: Conduct a system, process, and technology
audit to improve City service delivery and minimize
ongoing costs of doing business.

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Action A1.2: Implement an internal digital business
licensing and permitting system that improves application processing times, automates routine approvals, and
creates a centralized database of business information.

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Action A1.3: Consolidate requirements across
departments, reduce excessive fees, and enhance
permitting portal user-friendliness for business owners with real-time tracking and digital submission.

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Action A1.4: Implement a program to accelerate approvals for businesses in priority sectors, especially those that bolster sales tax revenues and foster high-quality local employment opportunities.

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20 Initiative A2: Modernize Municipal Code and land use policies to support economic development Modernizing the Municipal Code means identifying and removing unintentional regulatory barriers to development. This comprehensive approach addresses zoning, business regulations, and other ordinances that impact business attraction, formation, and operations. Updated codes, integrated incentives, and innovative land use policies provide clear direction for development decisions that support economic goals while maintaining community standards. This regulatory alignment reduces conflicts between Municipal Code requirements and economic objectives, creating an operating environment where regulations support rather than hinder business formation and growth.

ACTION TIME HORIZON LEAD ENTITY
Action A2.1: Conduct a review of existing Municipal Code to identify ordinances and regulations that inhibit the implementation of economic development priorities.

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Action A2.2: Integrate development incentives into the
zoning code to offset development fees and other costs
impacting the feasibility of housing and commercial
development.

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Action A2.3: Develop an “accessory commercial unit”
designation for specified residential-only districts where homeowners or permanent tenants can add a small-format
food or retail shop on their property.

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Action A2.4: Expand the Foreign Trade Zone to increase
geographic coverage and eligibility, enhancing its capacity to attract investment and support trade-related industries M
Initiative A3: Develop internal coordination mechanisms and build staffing pipeline Strengthening the City’s capacity to design and implement effective economic initiatives requires building cross-departmental capabilities and dedicated expertise. An internal economic development task force embeds an economic development lens throughout municipal operations, allowing departments to identify opportunities within their normal functions. Moreover, leveraging academic partnerships extend bandwidth currently beyond reach (enabling planning and implementation without dramatically increasing permanent overhead) until it is feasible to hire additional staff.

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21 ACTION TIME HORIZON LEAD ENTITY
Action A3.1: Establish an internal cross-departmental task force to embed economic development considerations
into routine city operations and coordinate collaborative implementation of citywide economic development
priorities.

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Action A3.2: Partner with College of the Desert and
regional universities to establish an economic
development fellowship or internship program to channel advanced students into career-track public sector roles.

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Action A3.3: Increase the size of the Office of Economic Development to scale operations as the department’s
portfolio expands and the city’s economic base grows
more diversified.

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Initiative A4: Launch economic development website and marketing campaign The development of robust digital infrastructure transforms how City staff communicate economic opportunities to the public and respond to business needs. A comprehensive online platform reduces repetitive information requests (making routine information self-service), provides 24/7 access to resources, and creates consistent frameworks for presenting economic data across departments.

Moreover, a strategic marketing campaign will showcase Palm Springs' competitive advantages to investors, entrepreneurs, and talent while educating residents about economic development services.

ACTION TIME HORIZON LEAD ENTITY
Action A4.1: Develop digital toolkits that provide step-bystep guidance for businesses at every stage as well as workforce development resources that connect residents
with emerging job opportunities.

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Action A4.2: Draft public education materials to inform residents, local businesses, and workers about the Office of Economic Development's services, programs, and
resources.

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22 Action A4.3: Develop and implement a comprehensive
economic development marketing strategy and brand
identity to highlight Palm Springs' competitive advantages and attract priority industries, businesses, investors, and talent.

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Action A4.4: Build an interactive and publicly accessible data dashboard with regularly updated metrics on key
economic indicators, business activity, and development trends.

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Initiative A5: Scale economic development beyond City-funded staffing and investments Effective economic development requires capabilities and resources that often exceed municipal capacity. By creating strategic partnerships, specialized financing mechanisms, and dedicated authorities with expanded powers, the City can dramatically extend its economic development reach and amplify impact. By allowing the Office of Economic Development to operate with a more expansive toolkit, these capacity-building mechanisms enable Palm Springs to pursue ambitious economic initiatives despite limited internal staffing and budgetary constraints.

ACTION TIME HORIZON LEAD ENTITY
Action A5.1: Formalize partnerships with regional
economic development organizations and neighboring
jurisdictions to share resources, coordinate efforts, and leverage specialized expertise.

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Action A5.2: Explore the feasibility of implementing an Enhanced Infrastructure Financing District (EIFD) to
support the funding of economic development projects.

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Action A5.3. Establish an Economic Development
Authority with powers to define economic districts,
purchase property, enter limited partnerships, and operate select facilities/infrastructure.

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23 PRINCIPLE B: REINVIGORATE THE BUSINESS CLIMATE
These strategies focus on strengthening Palm Springs' business climate by reducing barriers to entry, expanding economic incentives, and fostering a more resilient and dynamic commercial environment that thrives year-round. By streamlining the permitting process, supporting priority industries, enhancing nighttime business opportunities, and launching targeted investment marketing efforts, these initiatives aim to attract new businesses, retain existing ones, and create a more business-friendly ecosystem.

Initiative B1: Simplify permitting and improve ongoing engagement with the business community Clear, predictable permitting processes are essential for business confidence and investment decisions.

At the same time the City’s broader regulatory framework and internal processes are being streamlined, immediate improvements to the user experience can provide tangible benefits to entrepreneurs and small business owners. By creating standardized packages, establishing dedicated support services, and implementing business-driven feedback mechanisms, the City can eliminate common pain points that discourage business formation while maintaining regulatory standards that protect community interests.

ACTION TIME HORIZON LEAD ENTITY
Action B1.1: Launch a formal business advisory group with local entrepreneurs and small businesses to identify
ongoing challenges and recommend process
improvements.

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Action B1.2: Deploy a customer relationship management
(CRM) tool to track business inquiries and interactions, provide updates to the business community, and improve
engagement.

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Action B1.3: Create pre-approved permit packages for
common business types (restaurants, retail, service
businesses, home-based businesses) that bundle required permits and provide clear timelines and requirements.

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Action B1.4: Establish a permitting concierge service (that features a combination of live and automated interfaces) to provide direct assistance to businesses navigating the
permitting and licensing process.

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Initiative B2: Expand incentives for businesses in priority industries Financial considerations heavily influence business location and expansion decisions, particularly for enterprises in competitive or emerging sectors. Strategic incentives and cost reduction measures can

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24 position Palm Springs as a preferred destination by improving business cash flow, reducing startup barriers, and demonstrating the city's commitment to enterprise success. By implementing targeted tax benefits, utility assistance, and specialized district designations, the City can create meaningful financial advantages that attract investment while maximizing return on public resources.

ACTION TIME HORIZON LEAD ENTITY
Action B2.1: Create a comprehensive guide detailing all available city and county-level business incentives
including grants, tax benefits, fee waivers, and
development programs.

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Action B2.2: Update the hotel operations incentive
program by refining classifications and structuring share agreements that align with evolving short-term rental (STR) capital market dynamics to enhance financial feasibility and industry competitiveness
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Action B2.3: Implement a business tax incentive program offering reduced tax rates for new businesses in priority industries, including a first-year business tax exemption and a reduced tax rate in the second year to encourage
business growth and investment.

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Initiative B3: Establish designated business districts and support policies Strategic district designations create focused investment zones that strengthen commercial identity, encourage complementary business clusters, and streamline targeted support policies. By formalizing these districts, Palm Springs can concentrate resources to address unique area needs, improve visitor navigation, and create distinctive commercial environments that enhance both economic activity and community character.

ACTION TIME HORIZON LEAD ENTITY
Action B3.1: Conduct a citywide assessment to identify
distinct business concentrations, evaluate unique
characteristics and needs, and establish potential
boundaries for formal district designations.

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Action B3.2: Develop district-specific development
guidelines tailored to each area's identity, economic role, and growth potential to ensure coordinated investment
and coherent placemaking.

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25 Action B3.3: Establish district-based business associations that facilitate collaboration among district businesses, promote capacity building, coordinate joint marketing
initiatives, and serve as liaisons with the Office of
Economic Development.

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Initiative B4: Support and expand nighttime business opportunities The nighttime economy represents a significant untapped growth opportunity that aligns perfectly with Palm Springs' tourism strengths and extreme daytime temperatures. Extending commercial activity beyond traditional business hours creates additional revenue potential for existing businesses, generates new entrepreneurial niches, and enhances the visitor experience. Through coordinated infrastructure improvements, regulatory adjustments, and marketing initiatives, Palm Springs can transform evening hours into a distinctive economic advantage while creating vibrant, safe nighttime districts that benefit residents and visitors alike.

ACTION TIME HORIZON LEAD ENTITY
Action B4.1: Develop a nighttime business incentive
program, offering grants or tax breaks for businesses that extend operating hours, particularly in hospitality, retail, and entertainment.

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Action B4.2: Market Palm Springs during the summer
months as a nighttime destination with extended hours,
special events, and promotions to offset heat-related
daytime business slowdowns.

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Action B4.3: Improve infrastructure for nighttime
commerce and community activity by enhancing
pedestrian-friendly areas with increased lighting and a free nighttime shuttle service to connect key entertainment and commercial district.

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Action B4.4: Designate specific nighttime business zones to streamline permitting for late-night vendors,
entertainment venues, and pop-up experiences;
concentrate businesses in walkable districts to facilitate foot traffic; and create vibrant late-night hubs for dining, entertainment, and retail.

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Action B4.5: Develop a public safety enhancement
program in key business districts with improved lighting, security cameras, emergency call boxes, and increased
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26 police presence to create visibly safer environments that encourage evening economic activity and pedestrian
traffic.

Initiative B5: Improve business resilience through emergency preparedness, mitigation measures, and recovery assistance
Business disruptions from natural disasters, public health emergencies, or economic shocks can devastate individual enterprises and entire commercial districts. Proactive resilience planning combined with responsive recovery resources helps businesses navigate challenges that might otherwise force closures. By developing comprehensive preparedness frameworks, resource hubs, and financial assistance mechanisms, Palm Springs can strengthen its economic foundation, minimize disaster-related business losses, and demonstrate the City's commitment to supporting enterprises through unforeseen circumstances.

ACTION TIME HORIZON LEAD ENTITY
Action B5.1: Develop a business emergency preparedness
plan that outlines protocols and resources to help
businesses mitigate risks and respond effectively to
economic shocks.

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Action B5.2: Partner with utility companies to create a small business utility assistance program, providing grants or subsidies to offset energy, water, and operational costs during summer months.

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Action B5.3: Create a dedicated resource hub offering
online and in-person guidance on business continuity
planning, insurance options, and financial assistance
programs.

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Action B5.4: Collaborate with County, State, and Federal agencies to develop infrastructure to administer business recovery and rapid response programs.

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Action B5.5: Develop an integrated Emergency
Management System connecting City departments,
convention facilities, hotels, and commercial districts to improve coordination during emergencies, share real-time hazard information, and accelerate recovery efforts
following disruptive events.

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27 PRINCIPLE C: BOLSTER CORE INDUSTRIES
These strategies focus on bolstering existing industries—tourism, arts and culture, and hospitality—as key mechanisms to drive economic development in Palm Springs. By expanding visitor engagement and options for consumer spending, enhancing Palm Springs’ distinct identity as an avant-garde cuttingedge destination, and leveraging key infrastructure investments, these initiatives aim to leverage and enhance existing foundations to support long-term growth and sustainability.

Initiative C1: Establish the Palm Springs Convention Center District A formalized Convention Center District creates a vibrant hub connecting hospitality, entertainment, and commercial activities around this key economic asset. By coordinating development, infrastructure improvements, and programming in this strategic area, Palm Springs can maximize visitor spending, enhance the convention experience, and create year-round economic benefits that extend throughout the city's tourism economy.

ACTION TIME HORIZON LEAD ENTITY
Action C1.1: Define a new downtown Convention Center
District through zoning updates that establish
development standards, permitted uses, and design
guidelines supporting an integrated convention and
hospitality ecosystem.

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Action C1.2: Develop a comprehensive Convention
Center District improvement plan that upgrades and
positions outdoor event spaces, indoor/outdoor social
areas, and local food and beverage facilities to enhance both attendee experience and revenue generation
opportunities.

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Action C1.3: Implement a transportation connectivity plan that creates a seamless visitor experience between the
Convention Center, downtown Palm Springs, nearby
hotels, and the airport.

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Action C1.4: Develop targeted business attraction
strategies for food and beverage, retail, and entertainment venues within the district based on consumer preferences for goods and services within walking distance.

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28 Initiative C2: Promote Palm Springs as a premier destination for corporate and group business tourism Business travel represents a significant, and to date underleveraged, opportunity to diversify Palm Springs' visitor economy with higher-spending, midweek, and off-season guests. Through targeted marketing, strategic partnerships with industry sectors, and infrastructure enhancements, the city can position itself as an ideal venue for conferences, corporate retreats, and incentive travel. These business visitors not only generate substantial economic impact during their stays but often return as leisure travelers, creating a sustainable pipeline of high-value tourism.

ACTION TIME HORIZON LEAD ENTITY
Action C2.1: Develop targeted marketing campaigns
promoting Palm Springs as a business tourism destination for target industries emphasizing its unique blend of
luxury, recreational, and cultural experiences.

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Action C2.2: Launch partnership programs for corporate
entities to host their conferences, retreats, and related events in Palm Springs.

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Action C2.3: Develop strategic partnerships with business event industry organizations, travel management
companies, and event planning platforms to increase Palm Springs' visibility in business travel booking channels and attract new corporate clients.

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Action C2.4: Establish a dedicated business tourism
support team to provide personalized concierge services for meeting planners and offering site selection assistance, vendor coordination, and specialized local knowledge to enhance the business event experience.

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Initiative C3: Strengthen and activate the Palm Springs arts and culture ecosystem Palm Springs’ arts and culture ecosystem remains a cornerstone of its economic and cultural identity. To sustain growth and year-round engagement, the City will focus on programmatic development, ecosystem coordination, and creative entrepreneurship that amplify both community vitality and tourism.

This initiative aims to create a unified, inclusive, and data-informed framework that supports artists, venues, and cultural organizations through coordinated programming, shared infrastructure, and expanded access to resources.

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29 ACTION TIME HORIZON LEAD ENTITY
Action C3.1: Conduct a comprehensive arts and culture
ecosystem assessment to map creative assets, identify
programming gaps, and inform targeted investment
strategies.

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Action C3.2: Establish an arts and culture program
development fund to support collaborative programming,
shared marketing, and cross-sector partnerships between arts, tourism, and hospitality sectors.

S
Action C3.3: Develop coordinated programming and
venue activation initiatives that link arts organizations, hospitality partners, and cultural districts to deliver yearround events, exhibitions, and residencies.

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Action C3.4: Launch an accelerator program providing
business training, mentorship, marketing support, technical assistance, and financing pathways for artists, cultural producers, and creative entrepreneurs.

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Action C3.5: Host an annual Palm Springs Arts & Culture Summit to convene artists, galleries, Tribal cultural leaders, LGBTQ+ arts organizations, hospitality partners, and
funders to highlight Palm Springs as a premier creative destination.

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Initiative C4: Leverage Palm Springs International Airport expansion Airport connectivity directly correlates with economic development potential, particularly for tourismfocused economies. The expansion of Palm Springs International Airport creates opportunities to strengthen the visitor economy through improved access, while also supporting complementary industry development. Strategic integration of local arts, targeted route development, and future-oriented planning can transform the airport from simply a transportation facility into a powerful economic development asset that showcases the city's distinctive character from the moment visitors arrive.

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30 ACTION TIME HORIZON LEAD ENTITY
Action C4.1: Partner with airlines, tourism boards, and business organizations to secure new direct flight routes from high-value domestic and international markets.

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Action C4.2: Establish partnerships with local aviation schools, flight training programs, and industry leaders to create job training pathways in aviation and airport
logistics.

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Action C4.3. Develop the airport-adjacent Foreign Trade Zone to attract and expand logistics, manufacturing, and distribution operations for companies seeking to leverage air transportation connectivity and strengthen supplychains.

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Action C4.4. Partner with local academic institutions and regional businesses to develop training programs in
aviation technology to position Palm Springs as a hub for next-generation aviation workforce development.

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Initiative C5: Expand Palm Springs' roster of visitor attractions and hospitality businesses Palm Springs' tourism strength depends on continuously refreshing its appeal to emerging audience segments while honoring its iconic heritage. Transforming Palm Springs into a desert laboratory for cutting-edge creative expression creates powerful differentiation in the competitive tourism landscape.

By incentivizing immersive experiences, nighttime activation, and experimental events that merge art, music, and technology, the city can cultivate a reputation as an avant-garde cultural destination. These distinctive offerings not only attract visitors seeking unique experiences but also extend the tourism season by creating compelling attractions that thrive regardless of seasonal temperatures.

ACTION TIME HORIZON LEAD ENTITY
Action C4.1: Partner with airlines, tourism boards, and business organizations to secure new direct flight routes from high-value domestic and international markets.

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Action C4.2: Establish partnerships with local aviation schools, flight training programs, and industry leaders to S

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31 create job training pathways in aviation and airport logistics.

Action C4.3. Develop the airport-adjacent Foreign Trade Zone to attract and expand logistics, manufacturing, and distribution operations for companies seeking to leverage air transportation connectivity and strengthen supplychains.

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Action C4.4. Partner with local academic institutions and regional businesses to develop training programs in
aviation technology to position Palm Springs as a hub for next-generation aviation workforce development.

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Action C5.5: Develop an indoor or nighttime outdoor
immersive art experience and incubation space that
combines digital technology, interactive installations, and local artistic influences and can be enjoyed during the summer months.

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32 PRINCIPLE D: SEED AND NURTURE EMERGING CLUSTERS
These strategies focus on diversifying Palm Springs' economy beyond its traditional strengths by cultivating vibrant, interconnected industry clusters across technology, climate innovation, health and wellness, and the creative sectors (which include industries beyond arts and culture). By leveraging Palm Springs' unique geographic advantages, quality of life, and existing talent pool, these initiatives aim to position the city as a hub for innovation that addresses desert-specific challenges while creating sustainable, year-round economic opportunities. This approach emphasizes cross-sector collaboration, practical technology adoption for local businesses, strong educational partnerships, and accessible funding mechanisms to ensure inclusive growth that complements and amplifies rather than minimizes or replaces Palm Springs' established identity.

Initiative D1: Build a robust technology ecosystem in Palm Springs Palm Springs will connect and nurture its existing tech talent to promote economic diversification and boost competitiveness. By fostering collaborative networks, mapping local expertise, and creating practical adoption programs, the city will leverage technology as a multiplier for traditional industries while cultivating new entrepreneurial opportunities that create high-wage employment opportunities.

ACTION TIME HORIZON LEAD ENTITY
Action D1.1: Conduct a comprehensive assessment of
Palm Springs' existing technology ecosystem assets,
capabilities, opportunities, and gaps and develop a cluster development roadmap.

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Action D1.2: Support local initiatives that connect local tech professionals, businesses, and educators through
regular meetups, a digital platform, and industry events to leverage existing talent and create awareness of local tech capabilities and commercial opportunities.

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Action D1.3: Develop educational programs for businesses and entrepreneurs to learn about emerging tech
opportunities and how to build the necessary skills to
leverage them, with a special focus on underrepresented communities.

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Action D1.4: Launch a business technology adoption
program offering workshops, consulting services, and
resources to help local businesses effectively implement digital tools, analytics, and automation technologies in partnership with organizations like the U.S. SBA (Palm
Desert) and the SBDC (Inland Empire and Orange County).

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33 Action D1.5: Establish innovation summits connecting technology companies with traditional hospitality, retail, and cultural organizations to develop new opportunities, solutions and experiences.

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Initiative D2: Build equitable talent pipelines and educational pathways to support emerging industries Investing in Palm Springs' human capital forms the foundation for sustainable economic diversification.

By forging partnerships between educational institutions and industry leaders, creating practical skillbuilding opportunities, and developing pathways that allow existing workers to enhance their capabilities, Palm Springs will cultivate a workforce ecosystem where traditional and emerging sectors mutually reinforce one another, expanding opportunities for residents at all career stages.

ACTION TIME HORIZON LEAD ENTITY
Action D2.1: Establish a formal a working group with
representatives from College of the Desert, K-12 schools, and local tech professionals to co-develop industryrelevant courses, curricula, and training programs.

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Action D2.2: Build partnerships with higher education
institutions and research centers across the Inland Empire (and beyond) that have established technology and
sustainability programs that align with the city’s emerging sectors.

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Action D2.3: Develop a residency program placing priority industry experts in educational institutions to provide mentorship and real-world insights to students.

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Action D2.4: Launch a skills integration initiative that identifies complementary capabilities between
hospitality/retail sectors and emerging industries and
provides targeted upskilling for small business owners and workers.

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Initiative D3: Establish Palm Springs as a health and wellness technology hub Palm Springs has many unique advantages as a health and wellness: a robust hospitality industry catering to wellness-focused travelers, an established health care infrastructure, an older demographic that creates a natural test market for aging-in-place technologies, and a climate that has historically attracted those seeking health benefits from desert living. Positioning the city as a health and wellness

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34 technology hub will build on this health and wellness footprint and expand opportunities for medical advances, preventive care innovations, lifestyle enhancement solutions, and the design of digital platforms that empower individuals to manage their wellbeing.

ACTION TIME HORIZON LEAD ENTITY
Action D3.1: Conduct a health and wellness technology
market assessment to identify specific opportunities in LGBTQ+ health services, behavioral health, medical
tourism, and related disciplines.

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Action D3.2: Establish a wellness innovation lab facilitating collaboration between academic institutions, health care providers, technology companies, wellness centers, and
local resorts.

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Action D3.3: Develop aging-focused wellness and
technology initiatives that address the needs of older
populations, including telehealth, mobility aids, senior housing innovations, and preventive care programs linking healthcare providers, wellness resorts, and research
institutions.

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Action D3.4: Create a dedicated innovation campus with
specialized facilities, clinical spaces, and R&D resources for health and wellness technology companies and hospitalitydriven enterprises.

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Initiative D4: Expand Palm Springs’ creative technology footprint Harnessing Palm Springs' cultural vibrancy and creative heritage can encourage the growth of thriving creative sector that feeds into the broader regional entertainment ecosystem. Mapping existing resources, showcasing talent, creating specialized support systems, and leveraging the city's ties to Hollywood and Silicon Valley will attract creative technology businesses and professionals while cultivating a more skilled local workforce.

ACTION TIME HORIZON LEAD ENTITY
Action D4.1: Promote the development of creative
technology production infrastructure (virtual production studios, digital content creation labs, audio/podcast
production facilities, and collaborative maker spaces) by converting underutilized commercial properties and
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35 implementing streamlined permitting for creative
technology businesses and location-based productions.

Action D4.2: Launch a creative technology infrastructure network providing co-working space, technical resources, mentorship from industry professionals, and seed funding for startups developing gaming, XR applications, digital art platforms, and entertainment technology solutions.

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Action D4.3. Establish workforce development
partnerships with regional colleges to train local talent in creative technology skills including 3D modeling, game
development, virtual production, and digital content
creation to supply the growing creative tech sector.

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Action D4.4. Host an annual creative technology exhibition showcasing cutting-edge creative technology, attracting industry professionals for business development, and
positioning Palm Springs as an emerging creative tech
destination for investment and talent recruitment.

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Initiative D5: Promote Palm Springs as an industry leader in desert climate and energy innovation Palm Springs' desert location positions it perfectly to become a specialized technology development center for arid environment solutions with global market potential. By cultivating industry partnerships in renewable energy, water conservation, and heat mitigation technologies, the city can lead an emerging climate tech sector addressing challenges shared by desert regions worldwide, establishing Palm Springs as the premier commercialization hub for climate-adaptive technologies.

ACTION TIME HORIZON LEAD ENTITY
Action D5.1: Conduct a renewable energy potential
assessment to identify optimal sites and technologies for clean energy development within city boundaries.

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Action D5.2: Develop specialized business attraction
strategy targeting companies in renewable energy, heat
mitigation, water conservation, and sustainable building technologies.

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Action D5.3: Create a climate innovation district and
establish an annual showcase event that demonstrates
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36 environments, featuring locally developed solutions and technologies.

Initiative D6: Develop innovation funds and financing mechanisms Access to capital remains the most critical barrier to technology ecosystem development, particularly in emerging markets outside major tech hubs. Palm Springs must create a comprehensive capital stack that addresses financing needs at every stage of business growth—from concept to scale-up. By developing diverse funding mechanisms that include angel networks, institutional partnerships, public-private collaborations, and specialized investment vehicles, the City can overcome the financing gaps that typically stifle innovation while ensuring capital deployment aligns with strategic economic priorities.

ACTION TIME HORIZON LEAD ENTITY
Action D6.1: Establish a network of angel investors and mentors interested in supporting Palm Springs-based
ventures, with regular pitch events showcasing local
entrepreneurs.

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Action D6.2: Forge partnerships with Community
Development Financial Institutions (CDFIs) and regional banks to establish a specialized financing program
providing low-interest loans and flexible capital for tech startups and scale-ups.

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Action D6.3: Create a public-private innovation fund with matched contributions from corporate partners,
foundations, and public sources to provide matching small business grants and subsidize attendance by local tech
entrepreneurs at national conferences.

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37 PRINCIPLE E: STRENGTHEN COMMUNITY ASSETS AND INFRASTRUCTURE These strategies focus on enhancing Palm Springs' essential infrastructure and quality of life elements that support sustainable economic development. By improving transportation and mobility options, addressing extreme heat through innovative cooling solutions, expanding housing accessibility, upgrading telecommunications capabilities, bolstering energy resilience, and creating more vibrant community spaces, Palm Springs can become an even more livable and connected community that attracts and retains businesses, workers, and residents while improving overall wellbeing and economic vitality.

Initiative E1: Improve multimodal transportation, circulation, and walkability to drive economic growth Palm Springs will leverage strategic improvements to its transportation network to create economic development opportunities, enhance visitor experiences, and improve quality of life for residents. By building on its existing General Plan’s Circulation Element, the City can facilitate targeted investments that connect key economic assets, strengthen regional rail connectivity to Southern California's major population centers, and develop complete streets. In short, greater accessibility will translate to more cultivate vibrant commercial districts and neighborhoods that support economic vitality during both peak and off-peak seasons.

ACTION TIME HORIZON LEAD ENTITY
Action E1.1: Conduct a multimodal connectivity
assessment identifying high-priority economic corridors where improved transportation access would stimulate
business growth, focusing on connections between
downtown, the airport, convention center, and emerging
commercial districts.

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Action E1.2: Implement a complete streets program in key commercial corridors that enhances both pedestrian
experience and business visibility through coordinated
improvements to sidewalks, street furniture, shade
structures, and façade enhancement incentives.

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Action E.1.3: Create a gateway enhancement program
focusing on transportation improvements, signage, and
landscaping at key city entry points to establish strong first impressions for visitors, reinforce city limits, and create development opportunities at these high-visibility
locations.

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Action E1.4: Develop a summer mobility plan with
targeted transportation improvements to support year- M

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38 round economic activity, including covered walkways, cooling stations, and evening-oriented transportation
options connecting residential neighborhoods and
hospitality areas to commercial districts.

Action E1.5: Advocate for and partner with regional
transportation authorities to maintain and enhance rail service frequency and reliability between Palm Springs and Los Angeles, Orange, and San Diego counties, supporting tourism growth, workforce mobility, and reduced car
dependency.

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Initiative E2: Design, promote, and install climate-adaptive infrastructure citywide Palm Springs can retain its residential base during the summer months and position itself as a global pioneer in climate-adaptive tourism by transforming its extreme heat challenges into opportunities for innovation and market differentiation. By implementing cutting-edge cooling strategies, expanding shade coverage, and showcasing desert-appropriate climate adaptation, the city will demonstrate how high-heat destinations can extend outdoor activity seasons, enhance resident and visitor comfort, and create signature experiences that turn climate challenges into competitive advantages.

ACTION TIME HORIZON LEAD ENTITY
Action E2.1: Conduct a community heat resilience
assessment identifying residential neighborhoods, hotel and resort districts, and commercial areas most impacted by summer temperatures.

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Action E2.2: Create community heat relief infrastructure plan including expanded cooling centers, public realm
misting stations and shade structures, enhanced tree
canopy along pedestrian corridors, and public water
features to provide residents and visitors with accessible cooling options during summer months.

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Action E2.3: Launch a clean energy initiative to streamline permitting and provide incentives for residential and
commercial renewable energy installations.

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Action E2.4: Develop a grant program for local businesses to implement innovative cooling technologies that reduce energy costs while creating comfortable environments for both residents and visitors during summer months.

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39 Action E2.5: Implement a pilot microgrid project serving a key commercial district or residential neighborhood with renewable energy generation, storage, and smart
distribution capabilities.

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Initiative E3: Expand housing options with emphasis on workforce housing and live-work spaces Addressing Palm Springs' housing challenges will support economic development by ensuring workers can live near employment centers, entrepreneurs can access affordable spaces, and businesses can attract and retain talent. By promoting diverse housing types and mixed-use developments, Palm Springs will create more vibrant neighborhoods and strengthen connections between residential and commercial activities.

ACTION TIME HORIZON LEAD ENTITY
Action E3.1: Conduct a workforce housing needs
assessment to quantify demand, identify gaps, and
establish targets for housing production at various
affordability levels relative to local wages.

S
Action E3.2: Ensure revised zoning regulations facilitate the development of live-work spaces, mixed-use buildings, and adaptive reuse of underutilized commercial properties for housing.

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Action E3.3: Design density bonuses and streamlined
permitting processes for developments that include
workforce housing, live-work spaces, and housing near
transit and employment centers.

M
Action E3.4: Develop public-private partnerships to create demonstration projects showcasing innovative housing
models such as missing middle housing, workforce
housing, and creative live-work communities
L
Initiative E4: Upgrade telecommunications infrastructure to support business and community needs Expanding and improving telecommunications capabilities will position Palm Springs as a connected desert community where businesses can operate efficiently and residents can access digital opportunities. By addressing gaps in coverage, ensuring reliability, and promoting digital inclusion, Palm Springs will strengthen its appeal for technology businesses, remote workers, and traditional industries.

A – Page 1862 of 1899
40 ACTION TIME HORIZON LEAD ENTITY
Action E4.1: Conduct a comprehensive digital
infrastructure assessment identifying gaps in high-speed internet access, including fiber, 5G coverage, and public Wi-Fi, with analysis of how these gaps impact business
operations and remote work capabilities.

S
Action E4.2: Develop a digital downtown initiative
expanding free public Wi-Fi, interactive wayfinding kiosks, and digitally-enabled public spaces to enhance visitor
experiences and support businesses in key commercial
districts.

M
Action E4.3: Establish public-private partnerships to
develop community digital inclusion programs and
technology hubs that provide free internet access, digital literacy training, and technology resources in
disadvantaged neighborhoods.

M
Action E4.4: Implement a comprehensive citywide data
platform integrating information from city services, utilities, transportation systems, and environmental monitoring to improve operational efficiency, support data-driven
business decisions, and create new entrepreneurial
opportunities.

L
Initiative E5: Create vibrant public spaces that support community and economic activity Thoughtfully designed public spaces can serve as economic catalysts while enhancing quality of life for residents and visitors. By developing climate-adapted gathering places, cultural venues, and flexible-use areas, Palm Springs can strengthen its sense of community while creating spaces for commerce, events, and social interaction throughout the year.

ACTION TIME HORIZON LEAD ENTITY
Action E5.1: Identify underutilized public spaces with
potential for activation through a community-driven
placemaking assessment process.

S
Action E5.2: Implement a placemaking pilot program
creating pop-up community spaces with shade, seating, S

A – Page 1863 of 1899
41 public art, and flexible infrastructure for events and commerce.

Action E5.3: Develop design guidelines and toolkits for climate-adapted public spaces that can be implemented
by businesses, neighborhood groups, and developers.

M
Action E5.4: Create a network of connected public spaces along key corridors featuring consistent amenities,
wayfinding, public art, and programming to encourage
exploration and economic activity.

M

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42 SUMMARY OF ACTIONS BY TIME HORIZON
Principle A: Expand the City's economic development capacity Principle B: Reinvigorate the business climate
Principle C: Bolster core industries
Principle D: Seed and nurture emerging clusters
Principle E: Strengthen community assets and infrastructure SHORT TERM (1-2 YEARS): 38 ACTIONS
A1.1: Conduct a system, process, and technology audit
A1.2: Implement an internal digital business licensing and permitting system A2.1: Conduct a review of existing Municipal Code
A2.2: Integrate development incentives into the zoning code A2.3: Develop an "accessory commercial unit" designation A3.1: Establish an internal cross-departmental task force A4.1: Develop digital toolkits for businesses
A4.2: Draft public education materials
A5.1: Formalize partnerships with regional economic development organizations B1.1: Launch a formal business advisory group
B2.1: Create a comprehensive guide detailing all available business incentives B2.2: Update the hotel operations incentive program
B2.3: Implement a business tax incentive program
B3.1: Conduct a citywide assessment to identify distinct business concentrations B4.1: Develop a nighttime business incentive program
B4.2: Market Palm Springs during summer months as a nighttime destination B5.1: Develop a business emergency preparedness plan
B5.2: Partner with utility companies to create a small business utility assistance program B5.3: Create a dedicated resource hub for business continuity C1.1: Define a new downtown Convention Center District through zoning updates C1.2: Develop a comprehensive Convention Center District improvement plan C2.1: Develop targeted marketing campaigns for business tourism C3.1: Conduct a comprehensive arts and culture ecosystem assessment C3.2: Develop coordinated programming and venue activation initiatives C5.1: Create an inventory of Palm Springs' visitor experiences D1.1: Conduct a comprehensive assessment of Palm Springs' existing technology ecosystem D1.2: Support local initiatives that connect local tech professionals D2.1: Establish a formal working group with College of the Desert and K-12 schools D3.1: Conduct a health and wellness technology market assessment D5.1: Conduct a renewable energy potential assessment

A – Page 1865 of 1899
43 D6.1: Establish a network of angel investors and mentors E1.1: Conduct a multimodal connectivity assessment
E2.1: Conduct a community heat resilience assessment
E3.1: Conduct a workforce housing needs assessment
E3.2: Ensure revised zoning regulations facilitate live-work spaces E4.1: Conduct a comprehensive digital infrastructure assessment E5.1: Identify underutilized public spaces
E5.2: Implement a placemaking pilot program
MEDIUM TERM (3-5 YEARS): 43 ACTIONS
A1.3: Consolidate requirements across departments
A1.4: Accelerate approvals for businesses in priority sectors A3.2: Partner with College of the Desert for economic development fellowship program A4.3: Develop and implement a comprehensive economic development marketing strategy A4.4: Build an interactive and publicly accessible data dashboard A5.2: Explore the feasibility of implementing an Enhanced Infrastructure Financing District B1.2: Deploy a customer relationship management (CRM) tool B1.3: Create pre-approved permit packages for common business types B1.4: Establish a permitting concierge service
B3.2: Develop district-specific development guidelines
B4.3: Improve infrastructure for nighttime commerce
B4.4: Designate specific nighttime business zones
B5.4: Collaborate with County, State, and Federal agencies C1.3: Implement a transportation connectivity plan
C1.4: Develop targeted business attraction strategies
C2.2: Launch partnership programs for corporate entities C2.3: Develop strategic partnerships with business event industry organizations C2.4: Establish a dedicated business tourism support team C3.3: Establish an arts and culture program development fund C3.4: Launch arts and culture accelerator program
C4.1: Partner with airlines to secure new direct flight routes C4.2: Establish partnerships with local aviation schools C5.2: Connect cultural organizations with hospitality businesses C5.3: Expedite permitting for festival promoters
D1.3: Develop educational programs for businesses and entrepreneurs D1.4: Launch a business technology adoption program
D2.2: Build partnerships with higher education institutions

A – Page 1866 of 1899
44 D2.3: Develop a residency program placing priority industry experts D3.2: Establish a wellness innovation lab
D3.3: Develop aging-focused wellness and technology initiatives D4.1: Promote the development of creative technology production infrastructure D4.2: Launch a creative technology infrastructure network D5.2: Develop specialized business attraction strategy for renewable energy companies D6.2: Forge partnerships with Community Development Financial Institutions E1.2: Implement a complete streets program
E1.3: Create a gateway enhancement program
E1.4: Develop a summer mobility plan
E2.3: Launch a clean energy initiative
E2.4: Develop a grant program for local businesses to implement cooling technologies E3.3: Design density bonuses and streamlined permitting processes E4.2: Develop a digital downtown initiative
E4.3: Establish public-private partnerships for digital inclusion programs E5.3: Develop design guidelines for climate-adapted public spaces LONG TERM (5-10 YEARS): 22 ACTIONS
A3.3: Increase the size of the Office of Economic Development A5.3: Establish an Economic Development Authority
B3.3: Establish district-based business associations
B5.5: Develop an integrated Emergency Management System C3.4: Develop an accelerator program for artists and cultural organizations C3.5: Host an annual Palm Springs Arts & Culture Summit C4.3: Develop the airport-adjacent Foreign Trade Zone
C4.4: Partner with local academic institutions for aviation technology training C5.4: Develop an Entertainment Zone ordinance
C5.5: Develop an indoor or nighttime outdoor immersive art experience D1.5: Establish innovation summits connecting technology companies D2.4: Launch a skills integration initiative
D3.3: Create a dedicated health innovation campus
D4.3: Establish workforce development partnerships with regional colleges D4.4: Host an annual creative technology exhibition
D5.3: Create a climate innovation district
D6.3: Create a public-private innovation fund
E1.5: Advocate for enhanced rail service frequency

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45 E2.5: Implement a pilot microgrid project
E3.4: Develop public-private partnerships for demonstration housing projects E4.4: Implement a comprehensive citywide data platform
E5.4: Create a network of connected public spaces

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ATTACHMENT B

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ECONOMIC DEVELOPMENT STRATEGIC PLAN
1 BUSINESS SURVEY INTRODUCTION
The business survey serves as a critical diagnostic tool for the City of Palm Springs to understand the current
state of its local business ecosystem and identify
opportunities for strategic economic development. The
survey is designed to gather detailed insights from
business owners across various sectors about their
operational experiences, challenges, and perspectives on the city's business climate. By collecting data on
business demographics, ownership structures, industry
sectors, and company sizes, the city can build a complete picture of its economic landscape and understand which
types of businesses are thriving and which may be
struggling.

The survey's deeper purpose extends beyond simple
data collection to inform evidence-based policy decisions and economic development strategies. Through
questions about operational challenges, regulatory
barriers, seasonal impacts, and relocation considerations, the city can identify specific pain points that may be
hindering business growth or driving enterprises away.

This information becomes particularly valuable when
viewed alongside the EDSP strategic framework, as it
helps validate assumptions about business needs and
priorities while revealing gaps between current
conditions and desired outcomes.

The survey also explores the relationship between
businesses and Palm Springs' tourism economy, which is
essential for understanding how to leverage this key
economic driver while supporting business diversification efforts. Ultimately, this feedback enables City leadership to prioritize resources, refine economic development
initiatives, and create targeted support programs that
address the most pressing needs of the local business
community.

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ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
2 TENURE
BUSINESS SURVEY | N=192
How long has your business operated in Palm Springs?
0%
5%
10%
15%
20%
25%
30%
Less than 1 year 1 to 5 years 6 to 10 years 11 to 20 years More than 20 years 33%
post-pandemic
starts

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ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
3 INDUSTRY MIX
BUSINESS SURVEY | N=182
What industry does your business primarily operate in?
24%
18%
12%
8%
7%
5%
4%
3%
2%
3%
14%
Hospitality
Retail
Arts, Culture, and Entertainment
Professional Services
Food and Beverage
Real Estate & Property
Design & Architecture
Technology
Recreation
Health & Wellness
Other

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ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
4 FIRM SIZE | EMPLOYMENT

BUSINESS SURVEY
Including owners, how many full-time/part-time employees and/or seasonal workers does your business have? FULL-TIME EMPLOYEES | N=184
0%
10%
20%
30%
40%
50%
60%
70%
80%
None 1-5 6-10 11-25 26-50 50+
PART-TIME EMPLOYEES | N=182 SEASONAL WORKERS PER YEAR | N=180 0%
10%
20%
30%
40%
50%
60%
70%
80%
None 1-5 6-10 11-25 26-50 50+
0%
10%
20%
30%
40%
50%
60%
70%
80%
None 1-5 6-10 11-25 25+
80%
≤ 5 Employees
85%
≤ 5 Employees
79%
No Workers

A – Page 1873 of 1899
0%
10%
20%
30%
40%
50%
60%
Under
$250,000
Between $250,000
and $500,000
Between $500,000
and $1 Million
Between $1 Million
and $5 Million
Between $5 Million
and $10 Million
Over
$10 Million
Prefer not
to say

ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
5 FIRM SIZE | REVENUE
BUSINESS SURVEY | N=173
What was your gross revenue in 2024?
62%
Under $500K

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ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
6 BUSINESS OWNERSHIP DEMOGRAPHICS
BUSINESS SURVEY | N=170
Which of the following best describes the demographic makeup of your business ownership? Select all that apply.

RACE AND ETHNICITY DBE IDENTIFICATION
0%
10%
20%
30%
40%
50%
60%
70%
80%
American Indian or
Alaska Native
Black or African Asian
American
Hispanic, Latine, or
Spanish Origin
White or
Caucasian
0%
10%
20%
30%
40%
50%
60%
70%
80%
WomenOwnedVeteranOwnedLGBTQ+
Owned

A – Page 1875 of 1899
0%
5%
10%
15%
20%
25%
30%
35%
40%
Very positive Positive Neutral Negative Very negative

ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
7 BUSINESS SURVEY
BUSINESS SURVEY | N=168
How would you describe the current business environment in Palm Springs? 44%
Very Positive
or Positive
27%
Negative
or Very
Negative

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ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
8 BENEFITS OF LOCATING IN PALM SPRINGS
BUSINESS SURVEY | N=151
What are the main benefits of operating a business in Palm Springs? Select your top three. 52%
48%
46%
39%
27%
26%
25%
14%
13%
Reputation and appeal as a destination
Unique character of the city
Access to a strong tourist market
Scenic location and quality of life
Personal connection to Palm Springs
Supportive and engaged local community
High demand for products or services in the area
Networking with other business and entrepreneurs
Opportunities to participate in events and festivals

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ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
9 OPERATING ENVIRONMENT | LIKES
BUSINESS SURVEY | N=157
Why do you operate your business in Palm Springs rather than neighboring cities or regions? Select all that apply. 39%
32%
32%
31%
28%
22%
10%
9%
8%
3%
2%
Higher customer traffic or tourism exposure
Better alignment with target customer demographics
Cultural fit with your business brand/identity
Strategic location advantages
Quality of life considerations for you and your employees Historical connection to Palm Springs
Local government support for your industry
More favorable business climate/regulations
Better networking opportunities with complementary businesses Lower operational costs compared to neighboring areas
Greater access to qualified workforce
Areas within City
Hall’s power to
address

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10 OPERATING ENVIRONMENT | DISLIKES
BUSINESS SURVEY | N=141
What are the primary challenges your business faces operating in Palm Springs. Rank your top three. 60%
High
Operating Costs
60% 46% 33%
Finding Affordable
or Available Space
Seasonal Demand
Fluctuations
Local
Regulations

ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY

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11 REGULATORY CHALLENGES
BUSINESS SURVEY | N=130
What are the major challenges your business faces related to local regulation in Palm Springs. Rank your top three. 68%
Difficulty Navigating
Permitting or Licensing
Requirements
50% 31% 22%
Restrictions Related
to Noise or Public
Disturbances
Higher Costs
Associated with
Regulatory Compliance
Limitations on
Signage or
Advertising

ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY

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12 CONSEQUENCES OF THE STATUS QUO
BUSINESS SURVEY | N=129
Share of business owners who have considered
relocating to another city in the Coachella Valley
29%
Primary Reasons:
51%: Local Regulations
35%: High Operating Costs
27%: Finding Space
BUSINESS SURVEY | N=129
Share of business owners who have considered
closing down entirely
34%
Primary Reasons:
48%: Local Regulations
41%: High Operating Costs
39%: Seasonal Fluctuations

ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY

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13 BUSINESS SURVEY
I BEG you to please stop layering on more and more committees, boards, and bureaucratic regulations on local businesses that require additional taxes, fees, permitting, inspection, and paperwork. It is soul crushing. The City of Palm Springs has a REPUTATION throughout the valley with service providers, vendors and contractors as being the most difficult to deal with.

Please be FAR MORE business friendly in mindset. Shrink the regulations, bureaucracy, and all the paperwork that goes with it. It is killing goodwill with local businesses that want to do business in Palm Springs. Instead, think about how you might make it EASIER, FASTER and LESS COSTLY to run a small business in Palm Springs and welcome capitalism and commerce as a way to lift the quality of life of everyone in town.
“
”
Respondent from BUSINESS SURVEY

ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY

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14 IMPORTANCE OF TOURISM
BUSINESS SURVEY | N=129
How important is tourism to your business?

ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
0%
10%
20%
30%
40%
50%
Essential Very important Somewhat important Not important 82%

A – Page 1883 of 1899
0%
5%
10%
15%
20%
25%
30%
35%
No Slowdown at All Minimal Slowdown Moderate Slowdown Significant Slowdown Severe Slowdown 15 SUMMER IMPACT
BUSINESS SURVEY | N=129
To what extent does your business slow down during the summer months?

ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
50%
Significant or
Severe Slowdown

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ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
16 SUMMER STRATEGIES
BUSINESS SURVEY | N=128
What strategies, if any, does your business use to adapt to the summer season? Select all that apply. 40%
38%
33%
23%
32%
12%
4%
None, we operate business as usual
Offering seasonal discounts or promotions
Adjusting business hours or reducing services
Expanding or adjusting marketing efforts to attract customers Focusing on repeat local customers
Focusing on e-commerce to expand customer base
My business closes down entirely during the summer months

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ECONOMIC DEVELOPMENT STRATEGIC PLAN BUSINESS SURVEY
17 EXPECTATIONS FOR THE FUTURE
BUSINESS SURVEY | N=129
Do you expect your gross revenue
in 2025 to be higher than in 2024?
BUSINESS SURVEY | N=129
How optimistic are you about the long-term success of your business in Palm Springs?
No
45%
Yes
24%
About
the Same
31%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Very
Optimistic
Somewhat
Optimistic
Neutral Somewhat
Pessimistic
Very
Pessimistic
53%
Very or
Somewhat
Optimistic

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ECONOMIC DEVELOPMENT STRATEGIC PLAN
18 RESIDENT SURVEY INTRODUCTION
The resident survey serves as the essential companion
piece to the business survey, creating a complete 360-
degree view of Palm Springs' community landscape from
the perspective of those who call the city home. The
survey is strategically designed to capture the lived
experiences of residents across diverse demographics,
housing situations, and life circumstances, providing city leadership with critical insights into how well current services, infrastructure, and quality of life measures are meeting community needs.

When analyzed alongside the business survey data, these resident insights reveal the interconnections between
economic development initiatives and community
wellbeing, helping city leaders understand whether
business-friendly policies are also serving residents
effectively. The survey's focus areas—from neighborhood amenities and services to employment patterns—
directly align with many of the strategic priorities
outlined in the EDSP strategic framework, particularly
around community infrastructure investment and
inclusive growth.

This dual perspective becomes especially valuable when
considering initiatives like affordable housing
development, public transportation improvements, or
business district enhancements, as leaders can evaluate whether proposed changes serve both economic
development goals and resident quality of life
simultaneously. Ultimately, Palm Springs' economic
development efforts must remain grounded in the needs
and experiences of the people who make the city their
home, creating a foundation for sustainable growth that benefits the entire community.

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19 TENURE
RESIDENT SURVEY | N=610
How long have you lived in Palm Springs?

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
0%
5%
10%
15%
20%
25%
30%
Less than 1 year 1 to 5 years 6 to 10 years 11 to 20 years More than 20 years 28%
of respondents
moved to Palm
Springs during or
after the pandemic

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20 PRIMARY RESIDENCE VERSUS SEASONAL RESIDENCE
RESIDENT SURVEY | N=627
Is Palm Springs your primary residence?

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
Yes
89%
No
11%
Elsewhere in the United States 93%
Canada
7%

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21 HOUSING CHARACTERISTICS
RESIDENT SURVEY | N=611
Do you rent or own your Palm Springs residence?

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
Own
89%
Rent
11%
Yes
80%
Sometimes
12%
No
8%
RESIDENT SURVEY | N=611
Do you reside in Palm Springs during the summer?

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22 PALM SPRINGS VALUE PROPOSITION
RESIDENT SURVEY | N=604
What aspect of living in Palm Springs do you most appreciate? Select all that apply.

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
85%
82%
79%
72%
63%
60%
57%
52%
50%
48%
44%
Natural beauty and landscape
Climate and weather
Quality of life and overall livability
Inclusive and diverse environment
Walkable neighborhoods and downtown area
Arts, cutlure, and entertainment
Dining and nightlife options
Sense of community and belonging
Mid-century modern architecture and design aesthetic
Access to outdoor activities and natural areas
Recreational opportunities

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23 PALM SPRINGS VALUE PROPOSITION
RESIDENT SURVEY | N=566
What types of businesses, if any, do you wish to see more of in your neighborhood? Select all that apply.

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
55%
36%
34%
24%
21%
14%
14%
8%
Restaurants and dining
Arts, Culture, and Entertainment
Retail shops
Health care
Recreation and leisure
Nightlife activities
Personal services
Financial services

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ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
24 COMPETING PREFERENCES AND PRIORITIES
“I moved here because I like the feel of a small
community. Adding more and more businesses
fills our quiet village [and will] turn it into a small, yet congested big city feel.”
“Anything, the nearest businesses are 4 or more
blocks away.”
“More unique local businesses related to design,
architecture, better quality restaurants, higher
end retail apparel stores. Make this place special
and lean into the arts community.”
“I like having a strictly residential neighborhood.”
“Fewer big box chain stores and fast-food joints.

Let's make Palm Springs special and unique. Not
a cardboard cut-out of every other city.”
§ “Trader Joe’s”
§ “Winco Foods”
§ “Supermarket”
§ “Specialty Grocery”
§ “Movie Theater”
§ “Bowling Alley”
§ “Dry Cleaner”
§ “Nail Salon”
VS
RESIDENT SURVEY | SELECTED COMMENTS
What types of businesses, if any, do you wish to see more of in your neighborhood?

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25 SERVICES AND INFRASTRUCTURE ASSESSMENT

RESIDENT SURVEY
How would you rate the availability of the following infrastructure or services?

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
Housing
Public
Transport
K-12
Education
Job
Training
Community
Spaces
Public
Safety
Health
Services
Emergency
Services Utilities
N=588 N=583 N=575 N=574 N=587 N=589 N=590 N=583 N=587
Very Good
or Good 56% 23% 28% 12% 67% 79% 63% 74% 53%
Neutral 31% 55% 69% 77% 25% 14% 20% 23% 28%
Poor or
Very Poor 13% 22% 3% 11% 8% 7% 17% 3% 19%

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26 SERVICES AND INFRASTRUCTURE NEEDS
RESIDENT SURVEY | N=582
What infrastructure or services do you think Palm Springs is most in need of? Very Much in Need of …
0%
10%
20%
30%
40%
50%
60%
70%
Public Realm
Shading
Broadband
Reliability
Public Realm
Lighting
Affordable
Housing
Health
Care Access
Public Safety
Somewhat in Need of …
0%
10%
20%
30%
40%
50%
60%
70%
Community
Spaces
Public
Transportation
Public
Safety
Adult
Education
Social
Services
Bike
Lanes

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY

A – Page 1895 of 1899
27 SERVICES AND INFRASTRUCTURE NEEDS
RESIDENT SURVEY | N=582
Infrastructure or services residents said they are either “very much in need of” or ”somewhat in need of” … 87%
Public Realm Shading
82% 79% 71%
Health Care Access Public Realm Lighting Community Spaces 84%
Affordable Housing
82% 73% 60%
Public Safety Social Services Bike Lanes
82% 72% 60%
Broadband Reliability Public Transportation Adult Education

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY

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28 EMPLOYMENT
RESIDENT SURVEY | N=588
Are you currently employed?

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
RESIDENT SURVEY | N=227
What is your employment status?
RESIDENT SURVEY | N=227
How many jobs do you have?
Yes
39%
No
61%
Note: Of respondents who said “No,” 95% are retired.
87% of all survey respondents were age 55 or older.

Part-Time
23%
Full-Time
77%
2 10%
3+
1%
1 89%

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29 INDUSTRY MIX
RESIDENT SURVEY | N=227
What is the industry of your primary job?

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
15%
11%
11%
9%
8%
6%
6%
5%
4%
3%
3%
3%
Technology
Arts, Entertainment, and Recreation
Health Care & Wellness
Hospitality
Retail
Goverement
Real Estate
Finance & Insurance
Professional Services
Transportation
Education
Food and Beverage

A – Page 1898 of 1899
30 JOB LOCATION
RESIDENT SURVEY | N=227
Is your primary job based in Palm Springs?

ECONOMIC DEVELOPMENT STRATEGIC PLAN RESIDENT SURVEY
0%
10%
20%
30%
40%
50%
Yes, I work
in Palm Springs
No, I work elsewhere
in the Coachella Valley
No, I work remotely and
my job is based outside
of the Coachella Valley

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