CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 BUSINESS & LEGISLATIVE
SUBJECT: INTRODUCTION OF AN ORDINANCE ADDING A NEW CHAPTER 3.29
TO THE PALM SPRINGS MUNICIPAL CODE, PROVIDING FOR
ESTABLISHMENT OF CITY OF PALM SPRINGS TOURISM
IMPROVEMENT DISTRICT LAW
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:
As a charter city, the City Council may adopt a procedure for the authorization of the levy of assessments and the issuance of special assessment bonds. This ordinance would establish the City of Palm Springs Tourism Improvement District Law, which will allow the City to pledge assessments from the Palm Springs Tourism Infrastructure District No. 2026-01 to obligations issued as part of the Palm Springs Convention Center (PSCC) Modernization Project (Project).
RECOMMENDATION:
Introduce and conduct a first reading, by title only, of an ordinance entitled, “AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING A NEW CHAPTER 3.29 TO THE PALM SPRINGS MUNICIPAL
CODE, PROVIDING FOR THE CITY OF PALM SPRINGS TOURISM IMPROVEMENT
DISTRICT LAW INCLUDING GENERAL PROVISIONS AND DEFINITIONS, POWERS
AND PROCEDURES TO ISSUE BONDS FOR THE PURPOSE OF PROVIDING
FINANCING FOR SPECIFIED PURPOSES, AND CERTAIN OTHER SUPPLEMENTAL PROVISIONS”
BACKGROUND:
The Project was presented conceptually to the City Council on September 10, 2025. The Project includes two major elements: design, renovation, expansion and construction of the PSCC facility; and design and construction of the “urban connectors” between downtown and the PSCC.
City Council Staff Report
January 14, 2026 -- Page 2
Introduction of an Ordinance to Establish Tourism Improvement District Law The City Manager’s Stakeholder Group has been meeting to oversee the broad conceptualization of the overall PSCC Facility modernization plans and the urban design as well as the development and branding of the district identity. Recently, the group has begun to focus on the specifics of implementation. One of the City Manager Stakeholder Group working groups is the Tourism Infrastructure District Working Group. This Working Group was tasked with researching and exploring using a Tourism Infrastructure District (TID) as a potential revenue source for bond debt financing for the Project.
STAFF ANALYSIS:
The TID Working Group worked closely with City staff and Civitas Advisors to prepare a proposal to establish a Tourism Infrastructure District. Before that occurs, it is necessary to adopt modifications to the Property and Business Improvement District Law of 1994 (Section 36600, et seq., Streets and Highways Code) (the “PBID Law”) in order to implement the Project and its financing as contemplated by the staff and the City Manager Stakeholder Group.
The City is authorized to employ the provisions of the PBID Law to establish a TID.
Whenever the City Council elects to employ that statute, the City Council has the authority to enact, by ordinance, provisions different than, supplemental to, or in addition to the PBID Law. The Ordinance presented at this meeting would modify the PBID Law with respect to Palm Springs Tourism Infrastructure District No. 2026-01 (the "District").
The Ordinance provides that the City Council may, by resolution, pledge any assessment revenues the District generates to the payment of any bonds, notes, loans, interim certificates, debentures, installment-purchase agreements, leases, or other obligations the City issues or incurs (each, an "Obligation," and collectively, the "Obligations").
The Ordinance also provides that an Obligation may extend for more than 30 years, but will not exceed 40 years, and may be payable from assessments and other revenues.
Accordingly, section 36640(b) of the PBID Law is amended by the Ordinance to provide that the amount of debt service to retire an Obligation may not be more than the amount of revenue estimated to be raised from assessments in the District over 30 years but not more than 40 years, provided, however, that the assessments in the District shall be extended on delinquent assessees in order to pay any delinquencies on the outstanding Obligations arising from such non-payment of assessments.
The primary benefit of adopting the City of Palm Springs Tourism Improvement District Law is to allow a longer period of time to collect assessments than provided in the PBID Law, which is a primary credit factor for the issuance of any Obligations secured by the assessments.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Foundation: Economic Development.
City Council Staff Report
January 14, 2026 -- Page 3
Introduction of an Ordinance to Establish Tourism Improvement District Law FISCAL IMPACT:
None.
REVIEWED BY:
Chief Economic Development Officer: Wayne Olson
Director of Finance & Treasurer: Kristopher J. Mooney
City Manager: Scott Stiles
ATTACHMENTS:
A. Ordinance Establishing City of Palm Springs Tourism Improvement District Law