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ATTACHMENT A
Ordinance Establishing
City of Palm Springs Tourism
Improvement District Law
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7 ORDINANCE NO. 2124
AN ORDINANCE 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
City Attorney’s Summary
This ordinance supplements the Property and Business
Improvement District Law of 1994 for purposes of financing improvements to enhance tourism and business within the City.
WHEREAS, the City Council of the City of Palm Springs does hereby find, determine and declare that:
(a) the City of Palm Springs (the “City”) is a municipal corporation and charter city duly organized and existing under a charter pursuant to which the City has the right and power to make and enforce all laws and regulations in respect to municipal affairs and certain other matters in accordance with and as more particularly provided in Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 102 of Article 1 of the Charter of the City (the “Charter”); and
(b) the City Council of the City acting under and pursuant to the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 102 of Article 1 of the Charter, finds that the public interest and necessity require the establishment by this procedural ordinance of a procedure for the authorization of the levy of assessments and the issuance of special assessment bonds by the City for the purpose of providing financing or refinancing for certain purposes as specified herein.
WHEREAS, A procedural ordinance for the authorization of the levy of special taxes and the issuance of special tax bonds is hereby enacted to read as follows:
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. A new Chapter 3.29 of the Palm Springs Municipal Code is hereby added to read as follows:
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7 “Chapter 3.29 Palm Springs Tourism Infrastructure District No. 2026- 01 Section 3.29.010 Property and Business Improvement District Law of 1994.
In conducting proceedings for the establishment of a property and improvement business district for the purpose of financing certain improvements and activities, the city council may employ the provisions of the Property and Business Improvement District Law of 1994 (Section 36600, et seq., Streets and Highways Code) (the “PBID Law”). Whenever the city council elects to employ that statute, the city council shall have the authority to enact, by ordinance, provisions different than, supplemental to, or in addition to the PBID Law.
Section 3.29.020 Palm Springs Tourism Infrastructure District No. 2026-01.
(a) This section modifies the PBID Law with respect to Palm Springs Tourism Infrastructure District No. 2026-01 (the "District").
(b) Section 36640 of the PBID Law is hereby amended to provide 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").
(c) A pledge of assessment revenues to the payment of an Obligation must be evidenced by the indenture, trust
agreement, loan agreement, lease, installment-purchase
agreement, revolving-credit agreement, credit or liquidity agreement, or other instrument or agreement under which the city issues or incurs the Obligation.
(d) 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 hereby amended 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 09960.00000\44333132.1
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7 delinquencies on the outstanding Obligations arising from such non-payment of assessments.
(e) This section, being necessary for the health, welfare, and safety of the city and its residents, is to be liberally interpreted to carry out its purposes.
(f) This section provides a complete, additional, and alternative method for doing the things authorized, and it is supplemental and additional to the powers conferred by other laws,
including the PBID Law.
(g) The validity of any Obligation does not depend on, and is not affected in any way by, any city proceedings to acquire, construct, or complete any properties or projects for which the Obligation is issued or any agreements made in connection with the acquisition, construction, or operation of those properties or projects. An Obligation will be incontestable, and its issuance or incurrence and delivery will conclusively establish the due performance of all conditions precedent to its issuance, incurrence, and delivery.
(h) This section may not be amended to have a material, adverse effect upon the rights of any holder of any outstanding Obligation without the holder's written consent, except as follows: this section may be amended at any time (1) if the amendment is needed to cure an ambiguity or to correct or supplement a defective provision; (2) if the city council finds that the amendment will not materially impair or adversely affect the city's interests or the interests of the holder; (3) if the city council finds that the amendment is necessary or desirable to assure the exemption from gross federal income taxation of interest on an Obligation, if applicable; or (4) if the amendment will apply solely to Obligations issued after its effective date.
(i) To the extent this section is inconsistent with any general statute or special act, including the PBID Law, this section will control.
(j) If, for any reason, any part of this section is invalid, then all valid parts that are severable from the invalid part remain in effect.”
SECTION 2. This Ordinance is exempt from the requirements of the California Environmental Quality Act (Public Resources Code, §§ 21000 et seq.)(“CEQA”) because it involves the adoption of a governmental funding mechanism, which is not subject to 09960.00000\44333132.1
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7 CEQA. (Kaufman & Broad-South Bay, Inc. v. Morgan Hill Unified School District, (1993) 9 Cal.App.4th 464).
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL this 11th day of February 2026.
Naomi Soto
Mayor
ATTEST:
Brenda Pree, MMC
City Clerk
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7 CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 2124 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on January 14, 2026, and adopted at a regular meeting of the City Council held on February 11, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of February 2026.
Brenda Pree, MMC
City Clerk