CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 25, 2026 BUSINESS & LEGISLATIVE
SUBJECT: UPDATE ON OFFICE OF ECONOMIC DEVELOPMENT STRATEGIC
FRAMEWORK IMPLEMENTATION PLANNING
FROM: Scott C. Stiles, City Manager
BY: Economic Development
SUMMARY:
On November 24, 2025, the City Council approved the Palm Springs Economic Development Strategic Framework (EDSF) (Attachment A) and directed staff to initiate implementation. The EDSF established a clear, multi-year roadmap to diversify the local economy, modernize City systems, strengthen core industries, and improve the overall business climate.
This report presents a proposed implementation strategy prepared by CVL Economics that translates the adopted EDSF into a coordinated, execution-focused work program.
The strategy organizes implementation around four integrated activation areas: (1) a Digital Economic Development Hub, (2) targeted Municipal Code and regulatory review, (3) a citywide Business Districts framework, and (4) development of a practical fiscal toolkit. Together, these efforts are intended to deliver early, tangible improvements while building durable internal capacity for long-term economic development.
Staff recommends that the City Council support the implementation strategy proposed by CVL Economics and approve funding for implementation consulting services to ensure disciplined execution, cross-departmental coordination, and timely delivery of priority actions identified in the EDSF.
RECOMMENDATION:
1. Approve the implementation strategy proposed by CVL Economics for the implementation of the Palm Springs Economic Strategic Framework; and,
2. Approve the amount of $285,750 for implementation consulting services from the Economic Development FY 2026 budget.
City Council Staff Report
February 25, 2026 -- Page 2
Update on Economic Development Strategic Framework Implementation Planning 7 3
2 BACKGROUND:
The City opened its Office of Economic Development in January of 2024. At that time, a Chief Economic Development Officer was hired, along with the Business District Administrator, to set forth on enhancing Economic Development activities, policies and programs to address the pent up demands of business within the Palm Springs community. Due to the high volume of external and internal constituent requests, it quickly became apparent that an organizing framework would be beneficial to structure available staff time and resources under agreed upon priorities.
The City hired CVL Economics in late 2025, who embarked on the development of the EDSF vision, principles and initiatives. They worked with City Leadership, Staff and hundreds of businesses and citizens via surveys and meetings to encourage participation in formulation of the plan. The Mayor’s Council on Economic Development was formed in early 2025, to shepherd the early development of the plan which evolved into nearly 100 stakeholders being polled on their thoughts on the framework.
In November of 2025, the City Council convened a special session to review the EDSF and approve the plan as the City’s guiding document for economic development activities.
While the EDSF established principles, initiatives, and actions across short-, medium-, and long-term horizons, the next phase requires focused implementation support. Many of the framework’s highest-priority actions involve regulatory coordination, program design, and cross-functional alignment that extend beyond routine departmental operations. To address this need, CVL Economics prepared an integrated implementation plan that consolidates priority actions into a unified, time-bound work program. (Attachment B)
STAFF ANALYSIS:
Implementation Planning:
The proposed implementation strategy is structured as a single, coordinated program rather than a series of independent initiatives. The approach emphasizes early execution, internal alignment, and capacity-building so that improvements are both visible and sustainable. The implementation effort is organized around four activation strategies:
1.Digital Economic Development Hub – Development of a centralized, business-facing digital platform that serves as Palm Springs’ primary “front door” for entrepreneurs, investors, and businesses. This platform will consolidate resources, clarify processes, and communicate economic opportunity in a clear, action-oriented format.
2.Municipal Code and Regulatory Review – A targeted review of selected municipal code provisions and permitting processes that directly affect economic development outcomes. The work will identify and prioritize barriers, distinguish City Council Staff Report
February 25, 2026 -- Page 3
Update on Economic Development Strategic Framework Implementation Planning 7 3
2 quick administrative wins from items requiring Council action, and produce implementation-ready recommendations.
3.Business District Framework – Establishment of a citywide framework for defining, supporting, and activating Palm Springs’ commercial districts. This includes district typologies, governance and funding options, and prototype district concepts that can be scaled over time.
4.Fiscal Toolkit Development – Preparation of a practical, City-specific fiscal toolkit that aligns incentive and financing mechanisms with defined economic development use cases, improving consistency, transparency, and decision-making.
These activation areas are intentionally interdependent: regulatory reforms support district activation, fiscal tools help catalyze investment, and the digital platform communicates improvements to the market. Executing them in parallel allows the City to maximize efficiency and momentum.
Short Term Action Items:
As seen on November 24, 2026, the EDSF is organized into a hierarchy of principles, discussed above, as well as initiatives and action items. The action items were identified in two key elements:
1. Time Horizon (Short, Medium and Long), and
2. Lead Entity.
Attachment B is a comprehensive list of the first 38 action items that are recommended to be implemented within two years of the establishment of the implementation framework. Some of these can be accomplished with Economic Development staff and resources, however, in order to accomplish all 38, other departments and, in some cases, external agencies, will need to be designated as Lead Entity for that action item. Several of the items included in this list are already underway.
Looking ahead:
And while the above occurs, the day-to-day activities and business of the department must continue (e.g., enrolling applicants in the Hotel Incentive Program, business communications, etc.) as well as developing other policy updates that emerge from regulatory review of department activities. For example, the Façade Program will likely require policy updates which in turn will require additional administration of the program.
So, to summarize, in CY 2026/2027, the department will manage:
1. EDSF Implementation Activation Strategies;
2. Oversight, management and tracking of EDSF action items; and,
3. Day-to-day Economic Development activities in business retention, expansion and attraction (i.e., program administration, business communications, etc.).
City Council Staff Report
February 25, 2026 -- Page 4
Update on Economic Development Strategic Framework Implementation Planning 7 3
2 Role of the Consultant
CVL Economics will serve as the lead implementation consultant, working closely with the Office of Economic Development and other City departments. The consultant’s role is focused on project management, policy and program design, facilitation of interdepartmental coordination, and preparation of implementation-ready materials that can be carried forward by City staff and to Council for review as required.
ENVIRONMENTAL ASSESSMENT:
The requested action is not a “project” as defined by the California Environmental Quality Act (CEQA). Pursuant to CEQA Guidelines Section 15378(b), organizational or administrative activities of government that do not result in direct or indirect physical changes to the environment are not considered projects subject to CEQA.
ALIGNMENT WITH STRATEGIC PLANNING:
Citywide Goal: Economic Development - support a vibrant economy, including tourism, and new and existing businesses
FISCAL IMPACT:
The Office of Economic Development budget was increased by City Council $500,000 in each of FY26 and FY27.
In Attachment B you will see an update of fiscal activity of the Office of Economic Development in support of furthering the Vision and Principles of the EDSF. Business retention, expansion and attraction grants and sponsorships were made in consultation with the City Manager’s office along with evaluation of the overall economic impact of the requesting entity.
Moving forward, staff is working with the City Attorney’s office to bring forward a formal EDSF Business Retention Expansion and Recruitment grantmaking program sometime later this year. During the program’s development, staff is using metrics based in population, media reach, as well as general business impact to the community. These dollars are discrete in FY26 and FY27. As a result, FY26 agreements are coming to a close but will include those listed under “earmarked” on Attachment B.
REVIEWED BY:
Department Director: Wayne Olson
City Manager: Scott Stiles
City Council Staff Report
February 25, 2026 -- Page 4
Update on Economic Development Strategic Framework Implementation Planning 7 3
2 City Council Staff Report
February 25, 2026 -- Page 5
Update on Economic Development Strategic Framework Implementation Planning 7 3
2 ATTACHMENTS:
A. Economic Development Strategic Framework
B. CVL Economics – EDSF Implementation Proposal and Economic Development list of fiscal activities