AERIAL VIEW OF THE SUBJECT PARCEL.
EAST ELEVATION FROM SOUTH RIVERSIDE DRIVE, 2024.
Related Relevant City Actions by HSPB, Planning, Fire, Building, etc.
March, 2026 Site inspection by members of the HSPB and City Staff.
Ownership Status
December, 2024 Purchased by the current owner.
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Historic Context Statement “Post-World War II (1945-1969)”
During this post -war period, many civic and institutional buildings were constructed throughout the city including City Hall (HSPB #33), Fire Station #1 (HSPB #39) and the Palm Springs Airport (HSPB #70). These projects clearly demonstrate the growth that was occurring at this time and the influence of prominent architects and designers working in Palm Springs.
Context: Post-World War II Palm Springs (1945-1969)
Theme: Post World War II Civic and Institutional Development (1945-1969) Registration Requirements: To be eligible under this theme, a property must:
Date from the period of significance; and
Reflect important civic or institutional development from the period; or Represent an excellent example of an architectural style or property type; and
Display most of the character-defining features of the property type or style; and
Retain the essential aspects of historic integrity.
Context: Architectural Styles & Local Practitioners
Theme: Modern Styles of the Post-World War II Era
Sub-theme: Desert Modernism
Registration Requirements: To be eligible under this theme as an excellent example of its architectural style, a property must:
Retain most – though not necessarily all – of the character-defining features of the style, and continue to exhibit its historic appearance If important for illustrating a particular architectural style or construction technique, must retain most of the physical features that constitute that style or technique.
ANALYSIS:
A historic resources report (“the report”), site visit, and city documents and forms are the basis of this staff report.
605 S. Riverside Drive is a curved corner site with the building surrounded by desert landscaping to the north and the parking lot wrapping around the east, south , and west sides of the building. The property is adjacent to multi-family residential buildings and small hotel s, with the Tahquitz Creek Channel watercourse area located immediately north of the site.
Historic Preservation activities in Palm Springs are regulated under Municipal Code Section 8.05 (“ Historic Preservation” ). The purpose of the Historic Preservation Ordinance is:
“…to stabilize and improve buildings, structures or areas which are considered to be of historical, architectural, archaeological or ecological
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value, to foster civic beauty, to strengthen the local economy and to promote the use of historic resources for the education and welfare of the citizens.”
Conditions that apply to Class 1 historic sites or resources:
1. It shall meet the definition of a historic site as outlined in Municipal Code Section
8.05.020.
2. An archival file shall be maintained on the property by the City.
3. It may be qualified as ‘historic’ at the federal, state, and/or county level.
4. A marker explaining the historic nature of the site may be installed in a location viewable from the public way.
5. Compliance with all rules and regulations for Historic Resources and Historic Districts under Chapter 8.05 of the Municipal Code.
6. If designated, the findings in support of designation shall be stated in a resolution of the City Council that shall be recorded with the County Recorders’ office within 90 days of the effective date of the Council’s resolution.
Evaluation of the Application. Pursuant to Municipal Code Section 8.05.070 (C,1,a), the HSPB shall evaluate the application and make findings in conformance with the following criteria:
Criteria for the Designation of Class 1 Historic Resources. A site, structure, building or object may be designated as a Class 1 historic resource, provided both of the following findings (“a” and “b”) are met:
a. The site, structure, building or object exhibits exceptional historic significance and meets one or more of the criteria listed below:
The following is an analysis of the criterion and integrity findings for historic designation.
(Criterion i) The resource is associated with events that have made a meaningful contribution to the nation, state or community;
No information was found in the report indicating a ny significant events occurred on this site. The site does not qualify under Criterion i.
(Criterion ii) The resource is associated with the lives of persons who made a meaningful contribution to national, state or local history;
Based on the report and chain of title, the site remained under church ownership until 2024. The new owner, Dezart Performs, intends to operate the site as a performance venue and community space . While both owners demonstrate meaningful uses for the community, the research does not support Criterion ii.
(Criterion iii) The resource reflects or exemplifies a particular period of national, state or local history;
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During the Post-war period between 1945-1969, the city was experiencing unprecedented growth reflected in the number of new r esidential subdivisions and commercial developments built during this time. The First Church of Christ Scientist, classified as institutional development, was one of several religious buildings constructed during this period to meet the needs of the growing population.
The selection of utilitarian building materials, simple forms, and a design that responds to the desert environment are all important characteristics that embody the Mid-century Modern initiative. Locally identified as Desert Modernism, the use of deep overhangs, clerestory windows, concrete blocks and aluminum -framed fenestration resulted in a simple yet responsive design that clearly exemplified the movement . This architectural style was adopted for many civic buildings . Other distinctive characteristics include unadorned exterior surfaces, concrete block wall construction, and compositions with oblique angles instead of a strict grid layout.
As an example of an institutional building demonstrating the local development patterns and its strong association with the Desert Modernist movement, Criterion iii is met.
(Criterion iv) The resource embodies the distinctive characteristics of a type, period or method of construction;
Palm Springs evaluates criterion iv as a distinctive characteristic associated with construction type, construction period, and construction methods. The construction of the church appears to utilize conventional methods and materials. Criterion iv is not met.
(Criterion v) The resource presents the work of a master builder, designer, artist, or architect whose individual genius influenced his age, or that possesses high artistic value;
The architectural firm Clark, Frey & Chambers is credited for designing the First Church of Christ Scientist building, but the report and the National Register nomination further clarifies that this building was designed as a collaborative effort between Albert Frey and Robson Chambers. The later additions are attributed to Frey and many design elements support this association. After training in Europe under Le Corbusier, Frey moved to the United States and practiced architecture in the Coachella Valley for sixty years. He adapted Modernist principles to respond to the desert environment and is considered one of the of the main contributors to the Palm Spring School and Desert Modernism. 1 Frey’s
work in Palm Springs extends from civic projects to single-family residential homes. The First Church of Christ Scientist is a rare example of a religious property he designed that fully embodies Desert Modernism ideals.
By 1956, Robson Chambers became a partner at the firm and was involved in many influential projects like the Palm Springs City Hall building. Although it is difficult to determine the level of contribution Chambers made to the design of 605 S. Riverside
1 Alan Hess, The Palm Springs School: Desert Modernism 1934-1975, (Rizzoli, 2025).
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Drive, reports confirm he was actively involved in the process.
Both architects are valued for their individual genius and the building itself possesses high artistic value. Criterion v is met.
(Criterion vi) The resource represents a significant and distinguishable entity whose components may lack individual distinction, as used in evaluating applications for designation of historic districts, for parcels on which more than one entity exists; or
The resource is not within a historic district and does not qualify under Criterion vi.
(Criterion vii) The resource has yielded or may be likely to yield information important to national, state or local history or prehistory.
No information is available on any pre-historic significance of the site. Criterion vii is not met.
Analysis of Integrity. (PSMC 8.05.070 (C,1,b). The site, structure, building or object retains one or more of the following aspects of integrity, as established in the Secretary of the Interior’s Standards: integrity of design, materials, workmanship, location, setting, feeling, or association.
The First Church of Christ Scientist is evaluated based on the following topics of integrity based on the Secretary of the Interior’s Standards:
Location.
The building’s location has not changed from the original design; therefore, the integrity of location is met.
Design.
The design emphasizes utilitarian aesthetics, simple forms , and durable building materials. The primary entrance is positioned where the street curves on the north side, and concrete sidewalks lead up to the elevated open space in front of the main doors .
This space is hardscaped with concrete pavers and elevated on top of an area created by gravel-filled retaining walls. A deep roof overhang supported on thin metal poles covers the north-facing glazing. The repeating patterns of the floor-to-ceiling fenestration on this elevation is a character-defining feature. The shed roof over the main auditorium slopes southward and clerestory windows are located on the east elevation to bring light into that space. On the east elevation, there is a terrarium screened by a concrete block wall with decorative horizontal openings. The later additions designed by Frey have flat roofs and continue the use of stucco and terra cotta colored concrete blocks in a stack bond pattern.
The transition between building materials shows clean lines and helps accentuate the articulation of the building. Lastly, vehicular circulation enters the site from the street along the east side and proceeds toward the southern exit, which reconnects back to the street.
There are also head-in parking spaces located along a portion of the west elevation. The site plan clearly anticipated vehicular travel to the site, but a strong pedestrian experience
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was created around the north entrance. The overall aesthetic and the use of conventional materials like concrete blocks and aluminum-framed fenestration to create visual interest is a design trait indicative of Frey. The integrity of the original design is intact.
Setting.
The setting surrounding the site has evolved over time. The open space to the west has since been infilled with residential development ; however, the curved street pattern, the watercourse, and the small hotels and multi-family buildings immediately to the east and south remain intact.
Materials.
The building materials selected to construct this building are durable to withstand the hot and arid climate and create a utilitarian appearance. The walls are finished in stucco or sandblasted concrete blocks stacked in a bond pattern, and the windows are aluminum- framed where some areas extend from the floor to the ceiling. Slender steel posts support the deep overhangs above the primary entrance, and the concrete blocks are used as screening material on certain elevations. The integrity of materials remains extant.
Workmanship.
The addition of roof-mounted mechanical equipment, screening, and surface-mounted conduit detracts from the simplicity of the design in areas; however, most of the building largely retains its integrity of workmanship. I ts oblique angles and clean transition s between exterior building materials continue to reflect a high level of workmanship and attention to detail.
Feeling.
The historic character of the property remains intact because the design and material integrity of the site remains in good condition with little to no deviations to the mass and scale of the building.
Association.
The site’s association to Desert Modern as an institutional building from the 1950s is apparent due to the maintained integrity of the original design. Architectural features like the concrete block s, aluminum clad fenestration and deep overhangs are closely associated with the designs of Frey and Chambers. The integrity of association remains visible.
DEFINING HISTORIC CHARACTERISTICS:
In considering a recommendation for historic resource designation it is important to distinguish those physical elements that are original or from the period of significance from alterations, additions or features that were added later . Distinguishing original character-defining features from non-original elements assists the HSPB when it is tasked with evaluating future alterations to the historic resource.
Character-defining features on page 13 of the historic resources report and the staff analysis of important features are listed as follows:
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• Modern unadorned utilitarian design
• Sandblasted terra-cotta-colored concrete block arranged in stack bond pattern • Foyer with north-facing floor to ceiling windows and entry doors • Flat roof covering foyer and boardroom
• Slender metal pipe posts supporting flat roof
• Metal fascia
• Board room addition (1961)
• Shed roof covering auditorium
• Clerestory windows punctuating auditorium’s west elevation • Terrarium enclosed with concrete block with horizontal openings on east elevation • West elevation addition (1961)
• Aluminum-framed metal mesh west-facing windows
• Rear (south) addition (1968)
• Terra-cotta-colored stack bond pattern concrete block retaining walls fronting north sidewalk that enclose planters with mature olive trees
• Concrete steps leading to main entrance with metal pipe railings • Perforated concrete block wall on east elevation sheltering interior planter
Non-contributing elements:
• Recessed wooden screen atop rear addition screening the roof mounted air handling equipment
• Recessed metal screen above the foyer shielding the roof -mounted air handling equipment
• Parking lot light fixture with electrical conduit attached to the surface of the east elevation
• Electrical conduit attached to the west elevation
• Metal rain gutters attached to board room on the north elevation
ENVIRONMENTAL ASSESSMENT:
The proposed historic resource designation is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical changes to the environment, directly or indirectly.
NOTIFICATION:
Pursuant to section 8.05.140 of the Municipal Code of Palm Springs, all residents within five hundred (500) feet of the subject property have been notified and notice was published in a newspaper of general circulation.
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CONCLUSION:
The First Church of Christ Scientist is an exceptional resource that clearly reflects its period of significance by meeting criterion iii and v; therefore, staff recommends Class 1 designation which recognizes the site as a local historic landmark.
PREPARED BY: Sarah Yoon, Associate Planner/Historic Preservation Officer REVIEWED BY: Anthony Riederer, Assistant Director of Planning Services
Attachments:
A. Vicinity Map
B. Draft Resolution
C. A pplication
D. National Register Nomination Form
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EXCERPTS OF MINUTES
At the Historic Site Preservation Board meeting of the City of Palm Springs, held March 3, 2026, the Historic Site Preservation Board took the following action:
2A. AN APPLICATION BY DEZART PERFORMS FOR HISTORIC SITE DESIGNATION OF THE FIRST CHURCH OF CHRIST SCIENTIST LOCATED AT 605 SOUTH RIVERSIDE DRIVE, (APN: 508-191-030) CASE: HSPB #170, (SY).
Historic Preservation Officer Yoon presented the staff report and answered questions of the board.
Motion by Member Herr, seconded by Member Paonessa to adopt a resolution for HSPB #170, that the City Council designate The First Church of Christ Scientist as a historic Class 1 site. This action is not a project pursuant to CEQA.
AYES: Hansen, Herr, Paonessa, Maschka Hitchcock
NOES: None.
ABSENT: Bachman, McCready.
ABSTAIN: Moruzzi.
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CITY COUNCIL STAFF REPORT
DATE: April 22, 2026 PUBLIC HEARING
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT 2026-2027 ANNUAL
ACTION PLAN AND BUDGET ADOPTION PUBLIC HEARING
FROM: Scott C. Stiles, City Manager
BY: Housing and Community Development
SUMMARY:
This is the second of two public hearings for approval of the 2026-2027 Annual Action Plan (AAP, Attachment A). The Community Development Block Grant (CDBG) AAP and Budget is prepared by the City every year pursuant to requirements set forth by the U.S.
Department of Housing & Urban Development (HUD), which mandates that units of government receiving federal housing and community development assistance must prepare an AAP as part of the implementation of the Five-Year Consolidated Plan (ConPlan) which serves as the blueprint for CDBG funded community development activity in the City. This action adopts a resolution to approve the 2026-2027 AAP. The resolution (Attachment B) also authorizes the City Manager or designee to execute all agreements with U.S. Department of Housing & Urban Development (HUD) as well as the Community Development Block Grant (CDBG) program’s subrecipients, including City Departments.
RECOMMENDATION:
1. Open the Public Hearing for public testimony.
2. Adopt Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE 2026-2027
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION
PLAN; APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT
BUDGET FOR FISCAL YEAR 2026-2027 IN THE AMOUNT OF $337,285;
AUTHORIZING THE SUBMITTAL OF THE PLAN AND BUDGET TO THE
UNITED STATES DEPARTMENT OF HOUSING & URBAN DEVELOPMENT (HUD); AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE FUNDING APPROVAL/AGREEMENT WITH HUD – GRANT # B-26-MC- 06-0561 IN THE AMOUNT OF $337,285; AND TO EXECUTE THE
SUBRECIPIENT AGREEMENTS AND ALL NECESSARY DOCUMENTS IN A FORM ACCEPTABLE TO THE CITY ATTORNEY.”
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CDBG 2026–2027 Annual Action Plan
3. Approve the revised CDBG Owner Occupied Home Rehabilitation Program Guidelines.
4. Authorize the City Manager or designee to make minor non-substantive changes and to execute all necessary documents.
BACKGROUND:
Palm Springs is an “entitlement city”, meaning that it is a direct recipient of CDBG funds from the federal government. The CDBG Program was adopted by Congress in 1974 to provide a flexible funding source for local governments to meet the community development needs of their low and moderate-income (Low/Mod) residents and was the first federal block grant. A map showing the City’s Low/Mod areas is provided in Attachment C. This direct grant from HUD enables entitlement units of governments to fund three National Objectives: benefiting Low/Mod persons; preventing or eliminating slums or blight; and meeting urgent need.
On March 11, 2026, the City Council held a public meeting to discuss potential uses for the 2026-2027 CDBG Funds. At this meeting, the City Council was presented with potential Public Service and Residential Rehabilitation projects which meet HUD’s National Objectives. One public comment was received during the public hearing at the March 11th City Council Meeting, stating concerns regarding state and federal sanctuary status, and federal grants data for US citizens and non-citizens.
A draft AAP was made available for public review from March 12, 2026, through April 13, 2026, as required by HUD.
STAFF ANALYSIS:
The Federal statute requires that at least 70% of the expenditures benefit Low/Mod persons. As an entitlement grantee, the City has and will continue to utilize these funds for neighborhood revitalization, preserving decent housing, expanding economic opportunities, and/or improving community facilities and services, principally to benefit Low/Mod persons.
Based on the CDBG allocation of $337,285, and given the statutory limitations on the percentage of CDBG funds that may be utilized for Administration (20%) and Public Services (15%), with the remaining funds to be utilized for Public Facilities and Capital Improvements (including Housing Rehabilitation), the total CDBG resources for 2026- 2027 by eligibility category are proposed as follows (assuming the maximum allowable allocations are applied):
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City Council Staff Report
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CDBG 2026–2027 Annual Action Plan
PROPOSED CDBG 2026–2027 ALLOCATION Percentage Total
Administration 20% $67,457.00
Programmatic Funds:
Public Services (Legal Assistance): $50,592.75
Public Facilities/Residential Rehab.: $219,235.25
80% $269,828.00
Total: 100% $337,285.00
In recent years, the City Council has requested that staff not allocate CDBG funds for Administration and to increase the Programmatic Funds accordingly. For this fiscal year, staff is requesting to allocate 20% of the funding for Administration in accordance with program guidelines to cover administrative overhead due to a reduced departmental budget for the current fiscal year.
Program Guidelines
The Department of Housing and Urban Development (HUD) requires that municipalities have program guidelines for federally funded programs such as the Community Development Block Grant program. The City’s updated Owner-Occupied Home Rehabilitation Program written guidelines (Attachment D) describe implementation specifications and responsibilities that have been utilized historically and conform to the federal requirements specified by HUD.
The 2026-2027 Annual Action Plan program recommendations are as follows:
1.Public Services:
Legal Assistance: The City currently provides a legal assistance program to qualifying residents. Staff recommends working with a local non-profit organization to assist with tenant/landlord issues. These include anti-discrimination investigations, landlord/tenant mediation services, training and technical assistance, workshops and seminars.
The goals for this activity are to provide fair housing services to 500 Palm Springs households citywide. Of those, 500 will be Low- or Moderate-Income Households.
The recommended amount of CDBG funding for this activity is $50,592.75, which is the maximum amount allowed (15%) per federal requirements.
2. Residential Rehabilitation:
Major Home Repair: Under this program, the City would provide grants to qualified low- to moderate-income homeowners to make needed home improvements.
Grants would be available to address code deficiencies, eliminate blight, and improve handicapped accessibility. The maximum grant amount is $35,000 per household. The Major Home Repair Program will be provided on a first come/first- served basis to qualified applicants. To participate, the property must be located
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April 22, 2026 -- Page 4
CDBG 2026–2027 Annual Action Plan
within the City of Palm Springs, must be owner-occupied, and owners must meet income requirements. Grant funds may only be used for costs of services and materials necessary to carry out City approved repair work.
The goals for this activity are to serve approximately 6 Palm Springs households Citywide. Of those, 6 will be Low- or Moderate-Income Households. The recommended amount of CDBG funding for this activity is $219,235.25. A copy of the updated program guidelines is included as Attachment D to this report.
ENVIRONMENTAL ASSESSMENT:
The recommended action does not result in 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. According to Section 15378(b), 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.
FISCAL IMPACT:
There is no direct fiscal impact to the General Fund. These dollars are the City’s allocated federal annual entitlement funds from the U.S. Department of Housing & Urban Development Community Development Block Grant program.
REVIEWED BY:
Department Director: Jay Virata
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Draft 2026-2027 Annual Action Plan
B. Annual Action Plan Resolution
C. Map of CDBG Low/Mod Areas
D. Updated Owner-Occupied Home Rehabilitation Program Guidelines
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ATTACHMENT A
FY 2026-2027 Annual Action Plan
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Annual Action Plan
2026
1 OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
1. Introduction
The City of Palm Springs has been operating as an entitlement community since 1987 under the U.S.
Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program. The Annual Action Plan delineates the City's proposed investment of its allocation in CDBG entitlement funds during the fiscal year 2026 – 2027 spanning July 1, 2026, through June 30, 2027. The Action Plan will serve as the City of Palm Springs's annual application to HUD for federal funds over the next year and is the second year in the five-year (2025 – 2029) Consolidated Plan. The Annual Action Plan builds upon the strategies articulated in the Consolidated Plan. It represents the City's continued effort to provide activities that address the housing and other community-identified priority needs of the very low, low, and moderate-income residents of Palm Springs.
2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.
The Consolidated Plan is the primary tool used by the City to accomplish the goals and objectives outlined therein. The City's goals and objectives address social issues related to public services and housing needs for seniors, youth, homeless, handicapped, and those in general that fall within the very low to low and moderate-income levels. During the FY 2026–2027 program year, Palm Springs will focus CDBG funding on supporting the goal of providing a suitable living environment and decent housing by focusing funds on fair housing and home repairs to income eligible residents through the City's housing rehabilitation program.
3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.
The City of Palm Springs collaborates and partners with many organizations, groups, individuals, and agencies that express an interest in providing input and working with the City to identify and address gaps in the service and the needs of the community. These efforts are mainly for those that experience financial instability, which manifests into many other areas of need.
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Annual Action Plan
2026
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Palm Springs continues to address affordable housing by offering home repair assistance and focusing resources on fair housing. CDBG is a vital funding source and is instrumental in carrying out the programs and projects identified to meet the goals and objectives needed to fill gaps in services. The City of Palm Springs will continue to undertake designated programs and projects in FY 2026/2027 designed to meet the goals and objectives outlined within the Five-Year Consolidated Plan but will also meet the objectives in the Consolidated Plan for 2025-2029, keeping an eye on trends in the housing market and economy.
The economy, homeless epidemic, and housing crisis the State continues to face creates a need greater than the City can address in a single year or possibly even in multiple years. The City choses to use the FY 2026-2027 allocation to fund a significant housing rehabilitation program that will assist low /moderate income citizens, with housing repairs that impact the safety and livability of their housing.
4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.
The City will follow its approved Citizen Participation Plan (CPP) while developing the Action Plan.
The Draft Annual Action Plan was advertised in the local newspaper (Desert Sun) and was available for review in the Office of the City Clerk, City of Palm Springs, 3200 E. Tahquitz Canyon Way, Palm Springs, California, 92262 and on the City’s website (www.palmspringsca.gov). The Draft Annual Action Plan was made available electronically for public review and comment for a minimum of a 30-day period beginning 2/25/26.
Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on April 7, 2026, to advertise upcoming public hearings and the upcoming Action Plans 30 -day availability.
Public Hearing - The City Council held its first of two Public Hearings on 3/25/26.
Internet Outreach - Information regarding the Draft Action Plan was published on the City website event calendar for the encouragement of public participation Internet Outreach. Additionally, the City encouraged feedback from the public through written responses to the City Clerk during the public comment period for the Draft Annual Action Plan. Information regarding the Draft Action Plan was made available on the City's website under CDBG webpage to encourage public participation.
Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on 4/7/26, to advertise a second public hearing on 4/22/26. The City Council held the second required Public Hearing on April 22, 2026.
5. Summary of public comments
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2026
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This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.
<p data-start="0" data-end="336">One public comment was received during the March 11, 2026 City Council public hearing on the proposed Annual Action Plan. The commenter raised concerns regarding the allocation of funds, as well as issues related to state and federal sanctuary status and the distribution of federal grant funding between U.S. citizens and non-citizens.</p><p data-start="338" data-end="860" data-is-last-node="" data-is-only-node="">The City reviewed and considered the comment in the context of its planning and funding framework. The City responded that funding allocations were developed based on priority needs identified in the Consolidated Plan, informed by community outreach and available funding levels. While the comment was acknowledged and taken under consideration, no changes were made to the proposed allocations. The City will continue to evaluate community needs and incorporate public feedback into future planning and funding decisions.</p>
6. Summary of comments or views not accepted and the reasons for not accepting them NA
7. Summary
Through the Citizens Participation Plan process, the City is able to approve programs and projects that meet our designated goals and objectives as outlined in the Consolidated Plan.
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2026
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PR-05 Lead & Responsible Agencies – 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
CDBG Administrator PALM SPRINGS Housing & Community Development Division Table 1 – Responsible Agencies
Narrative (optional)
The Community and Economic Development Department of the City of Palm Springs is the lead department responsible for the 2026-2027 Annual Action Plan. The Community and Economic Development Department coordinates and consults with City Departments, County Agencies and nonprofit organizations, to ensure that the CDBG program provides vital community supports. The City's coordination and consultation efforts began in early fall and have included numerous meetings, phone calls, forums and input sessions. The City of Palm Springs is a local government jurisdiction with a population of 48,518(2019 ACS). The City has been an Entitlement Community for CDBG Program since FY 1987.
Consolidated Plan Public Contact Information
Contact Person: Jay Virata, Community & Economic Development Director Street Address: 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262-6959 Mailing Address: PO Box 2743, Palm Springs, CA 92263-2743
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2026
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AP-10 Consultation – 91.100, 91.200(b), 91.215(l)
1. Introduction
The 2026- 2027 Annual Action Plan is a joint effort between multiple public, private, and non-profit community partners.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City is continuing to seek opportunities in enhancing coordination between public and assisted housing providers and private and governmental health, mental health, and other service agencies:
· The Housing Authority of Riverside County provides residents throughout the County with rental assistance to those that are eligible based on income. The Authority administers the Section 8 Rental Assistance Program. They also own and operate affordable housing projects throughout the County and collaborate with local jurisdictions with rehabilitating and upgrading multi- family housing units.
· Riverside County Continuum of Care is comprised of representatives from public, private, and nonprofit agencies including homeless and formerly homeless individuals that are committed to assisting in facilitating a continuum of care planning process throughout the County. This coalition assesses the need for affordable housing and homeless services countywide to provide a seamless delivery of services to those in need.
· The Department of Public and Social Services administers programs under the anti-poverty umbrella for the County of Riverside. The main goal for residents is to move them towards self- sufficiency and moving poor families from poverty. DPSS assists residents on many levels including childcare, education, employment training, health and human services, homeless and housing.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.
Essential aspects of Plan development and implementation of project objectives involved meeting and coordinating with the CoC. These meetings helped recognize our priority needs as well as what demands there are for various coordinated homeless and housing services. The City of Palm Springs will continue to consult with the CoC, Housing Authority, and other agencies where necessary to address the needs of the homeless populations as well as housing for persons at risk, however, the City of Palm Springs is not directly involved in the CoC. The City is, however, part of the Coachella Valley Association of Governments (CVAG) Homeless committee which is part of the CoC.
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Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS Palm Springs is only eligible for CDBG funds.
2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Riverside County Continuum of Care Agency/Group/Organization Type Housing
Services-Victims of Domestic Violence
Services-homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Essential aspects of Plan development and implementation of project objectives involved meeting and coordinating with the CoC. These meetings helped recognize our priority needs as well as what demands there are for various coordinated homeless and housing services. The City of Palm Springs will continue to consult with the CoC, Housing Authority, and other agencies where necessary to address the needs of the homeless populations as well as housing for persons at risk, however, the City of Palm Springs is not directly involved in the CoC. The City is, however, part of the Coachella Valley Association of Governments (CVAG) Homeless committee which is part of the CoC.
2 Agency/Group/Organization HOUSING AUTHORITY OF COUNTY OF RIVERSIDE Agency/Group/Organization Type Housing
PHA
Services - Housing
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What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Non-Homeless Special Needs
Anti-poverty Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The PHA has the authority to purchase, construct, maintain, operate, improve, extend, or repair their housing facilities within the City and to eliminate housing conditions which are detrimental to peace, health, safety, and morals or welfare of the City.
3 Agency/Group/Organization The County of Riverside Department of Public Social Services (DPSS) Agency/Group/Organization Type Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-Victims of Domestic Violence
Services-homeless
Services-Health
Services-Education
Services-Employment
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What section of the Plan was addressed by
Consultation?
Public Housing Needs
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Non-Homeless Special Needs
Anti-poverty Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Agency assists area residents in securing resources
Identify any Agency Types not consulted and provide rationale for not consulting The City made an effort to consult with all agency types relevant to the development of this Plan.
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care County of Riverside
The County of Riverside is a Continuum of Care grantee and conducts annual homeless counts, surveys of the homeless population, and strategic planning to end homelessness.
Consistent with the goals of the CoC, the City of Palm Springs Strategic Plan supports nonprofits that meet the social services needs of the residents with an emphasis on the homeless.
City of Palm Springs 6th
Cycle Housing Element
(20
City of Palm Springs Identifies strategies to increase affordable housing production and preservation, which are reflected in the Consolidated Plan affordable housing and housing rehabilitation goals.
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Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Riverside County
Housing and Workforce
Solutions S
County of Riverside Emphasizes integrated housing, employment, and supportive services for vulnerable populations; informs local CDBG strategies for services and workforce access.
CVAG Active
Transportation Plan
Coachella Valley
Association of
Governments
Supports connectivity, infrastructure improvements, and goals, which are echoed in Palm Springs CDBG-funded pedestrian safety and ADA improvement projects.
California Department
of Housing and
Community Dev
State of California Informs best practices on fair housing, housing element compliance, and the distribution of state funding aligned with Consolidated Plan goals.
HUD Strategic Plan (FY
2022-2026)
U.S. Department of
Housing and Urban
Development
Reinforces the City commitment to expanding affordable housing, and strengthening community resilience all key themes in the Consolidated Plan.
Table 3 – Other local / regional / federal planning efforts
Narrative (optional)
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AP-12 Participation – 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting
<p data-start="69" data-end="520">The City conducted its citizen participation process in accordance with its adopted Citizen Participation Plan, which included public notice, a public comment period, and a public hearing held on March 11, 2026, before the City Council. These efforts were designed to ensure that residents, stakeholders, and other interested parties had the opportunity to review and provide input on the proposed Annual Action Plan and associated funding priorities.</p><p data-start="522" data-end="1071">Through this process, one public comment was received expressing concerns regarding the allocation of funds and broader issues related to state and federal sanctuary status and the distribution of federal grant funding. The City carefully considered the comment in the context of established priorities identified in the Consolidated Plan, prior community outreach, and available funding levels. While the comment did not result in changes to the proposed allocations, it reflects community perspectives that will inform future planning discussions.</p><p data-start="1073" data-end="1417" data-is- last-node="" data-is-only-node="">Overall, the citizen participation process reinforced the City’s commitment to transparency and inclusive engagement. Input received helped validate that the proposed goals and funding priorities remain aligned with identified community needs, while also highlighting areas for continued evaluation in future goal-setting and funding decisions.</p>
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Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Public Meeting
Non-
targeted/broad
community
One public comment
was received stating
concerns regarding
state and federal
sanctuary status,
federal grants data
for US citizens and
non-citizens.
Comment:One
public comment
was received during
the March 11, 2026
City Council public
hearing regarding
theproposed
Annual Action Plan.
The commenter
expressed concern
about the
allocation of funds
andconcerns
regarding state and
federal sanctuary
status, federal
grants data for US
citizens and non-
citizens.
.Jurisdiction
Response:The City
appreciates the
publicâ¿¿s
input and
consideration of
community needs.
The proposed
fundingallocations
were developed
based on identified
priority needs
outlined in the
C lid t d
All comments were
accepted.
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
2 Public Hearing
Non-
targeted/broad
community
TBD TBD TBD
3 Newspaper Ad
Minorities
Non-English
Speaking - Specify
other language:
Spanish
TBD TBD TBD
4 Newspaper Ad
Non-
targeted/broad
community
TBD TBD TBD
5 Newspaper Ad
Non-
targeted/broad
community
TBD TBD TBD
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
Anticipated Resources
Program Source of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and Planning
Economic
Development
Housing
Public
Improvements
Public Services 337,285.00 0.00 0.00 337,285.00 1,400,000.00
Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
Federal funds such as the Community Development Block Grant (CDBG) support Palm Springs’ housing and community development priorities.
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The city combines these funds with private, state, and local sources to expand the impact of its investments.
Public-private partnerships play a central role. Developers use Low-Income Housing Tax Credits (LIHTC) along with private financing to build and renovate affordable housing. This increases the number of available units and brings long-term investment to neighborhoods that need it most.
In economic development, federal and private funds are used to improve business districts, upgrade infrastructure, and support job creation.
State funds add to federal efforts by helping expand housing and infrastructure programs. State housing trust funds support rental assistance, foreclosure prevention, and homebuyer education. Transportation and public works grants improve roads, transit, and utilities, helping to strengthen local infrastructure.
Local funding further supports these efforts. City dollars are used to develop parks, libraries, and community centers. Public safety is improved through equipment purchases and training, partly funded with federal resources.
Although CDBG does not require a local match, Palm Springs contributes in-kind support— such as staff time, office space, and public services— to extend the reach of its programs. By coordinating different funding sources, the city is able to meet housing needs, improve neighborhoods, and support long-term community development.
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If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan NA
Discussion
The challenges associated with meeting the housing and community development needs in Palm Spring often surpass the available resources. To bridge this gap, the city is proactive in seeking and securing additional funding from local, state, federal, and private sources. By leveraging CDBG funds alongside these supplementary resources, Palm Spring enhances its capacity to undertake and complete projects that might otherwise be unfeasible. This collaborative and resourceful approach underscores the city's dedication to fostering a vibrant and sustainable community for all its residents
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Affordable
Housing
Development
2025 2029 Affordable Housing Community-
wide
Affordable
Housing
CDBG:
$219,235.25
Homeowner Housing Rehabilitated:
6 Household Housing Unit
2 Legal Assistance 2025 2029 Non-Housing
Community
Development
Community-
wide
Supportive
Services
CDBG:
$50,592.75
Public service activities other than
Low/Moderate Income Housing
Benefit: 500 Persons Assisted
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Affordable Housing Development
Goal Description Major rehab for 6 homeowners.
2 Goal Name Legal Assistance
Goal Description Assist 500 residents
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Projects
AP-35 Projects – 91.220(d)
Introduction
The City will utilize funding from the Community Development Block Grant (CDBG) to support two initiatives that enhance the quality of life for low- and moderate-income residents. Each project aligns with the City’s strategic goals and ensures that federal resources are used effectively to meet community needs. This section outlines the funded projects, their objectives, target populations, and expected outcomes, demonstrating Palm Springs’s commitment to building a sustainable, and supportive community.
Projects
# Project Name
1 Major Rehab
2 Legal Assistance
3 Administration
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
These allocations were based on the outcomes of the needs assessment in the consolidated plan as well as emerging needs within the jurisdiction.
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AP-38 Project Summary
Project Summary Information
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1 Project Name Major Rehab
Target Area Community-wide
Goals Supported Affordable Housing Development
Needs Addressed Affordable Housing
Funding CDBG: $219,235.25
Description Major Home Repair: Major Home Repair: Under this program, the City would provide grants to qualified low- to moderate-income homeowners to make needed home improvements. Grants would be available to address code deficiencies, eliminate blight, and improve handicapped accessibility. The maximum grant amount is $35,000 per household. The Major Home Repair Program will be provided on a first come/first-served basis to qualified applicants. To participate, the property must be located within the City of Palm Springs, must be owner-occupied, and owners must meet income requirements. Grant funds may only be used for costs of services and materials necessary to carry out City approved repair work.
The goals for this activity are to serve approximately 6 Palm Springs households Citywide. Of those, 6 will be Low- or Moderate-Income Households. The recommended amount of CDBG funding for this activity is $219,235.25
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
6 low/mod income households.
Location Description Low mod income homeowner homes as identified by application for assistance.
Planned Activities Home Rehab
2 Project Name Legal Assistance Program
Target Area Community-wide
Goals Supported Fair Housing and Anti-Discrimination
Needs Addressed Supportive Services
Funding CDBG: $50,592.75
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Description Legal Assistance: The City currently provides a legal assistance program to qualifying residents. Staff recommends working with a local non-profit fair housing services organization to provide comprehensive services, assisting with tenant/landlord issues. These include anti-discrimination investigations, landlord/tenant mediation services, training and technical assistance, workshops and seminars.The goals for this activity are to provide fair housing services to 500 Palm Springs households citywide. Of those, 500 will be Low- or Moderate-Income Households. The recommended amount of CDBG funding for this activity is $50,592.75.
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
500 households/individuals will seek services from Fair Housing Location Description
Planned Activities Legal Assistance
3 Project Name Administration
Target Area Community-wide
Goals Supported Affordable Housing Development
Legal Assistance
Needs Addressed Affordable Housing
Funding CDBG: $67,457.00
Description Overall Program Administration
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
Location Description Program Administration will take place at the City Hall 3200 E Taquitz Canyon Way, Palm Springs.
Planned Activities Program Admin includes reporting, annual planning, and project oversight.
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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The City of Palm Springs has identified specific geographic areas with high levels of poverty, minority concentration, and housing and economic distress as priority areas for targeted investment. These neighborhoods face significant disparities in access to affordable housing, infrastructure, and economic opportunities, and will be the focus of community development initiatives over the Consolidated Plan period.
Low- and Moderate-Income Areas:
Census tracts with concentrations of low- and moderate-income (LMI) households are prioritized for housing rehabilitation, infrastructure improvements, and public service investments. These areas struggle with poverty and inadequate housing and will benefit from efforts to improve neighborhood conditions, reduce disparities, and enhance residents' quality of life.
Economically Distressed Neighborhoods:
Specific neighborhoods, particularly those near downtown and other high-poverty zones, face overcrowding and substandard housing. These areas will receive targeted programs for residential rehabilitation and accessibility upgrades to address substandard housing conditions and promote neighborhood revitalization.
Areas of Minority Concentration:
Hispanic and Black communities, which experience disproportionately higher rates of housing discrimination and economic hardship, are prioritized for fair housing services, affordable housing development, and job creation programs. In areas— especially in southern Palm Springs— culturally sensitive outreach and housing services will be emphasized.
Strategic Goals for Target Areas Include:
Affordable Housing & Homelessness Prevention: Increased investment in affordable housing units and supportive services for at-risk populations in LMI and minority-concentrated neighborhoods.
Infrastructure & Community Services: Street improvements, water and sewer upgrades, and ADA- compliant sidewalks will enhance accessibility and living conditions.
Economic & Educational Opportunities: Job training, small business support, and economic mobility initiatives will target underserved areas to promote long-term self-sufficiency.
These targeted geographic priorities will ensure federal funds are effectively used to reduce disparities
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and support the most vulnerable Palm Springs residents
Geographic Distribution
Target Area Percentage of Funds
Community-wide
Downtown Palm Springs
Table 8 - Geographic Distribution
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Rationale for the priorities for allocating investments geographically Palm Springs prioritizes geographic allocation of investments to neighborhoods with the highest concentrations of low-income and minority residents. These areas often experience overlapping challenges, including housing cost burdens, overcrowding, and substandard housing conditions.
Targeting resources to these communities ensures that investments address the most critical disparities in housing, infrastructure, and economic opportunity.
Historically, certain areas— particularly parts of Downtown Palm Springs— have experienced disinvestment, resulting in poor housing conditions and limited economic development. By focusing on these neighborhoods, the City aims to correct historic inequities, promote revitalization without displacement, and create stable communities. Affordable housing development is a central priority, as many households in these areas are severely cost-burdened. The City allocates investments toward constructing and rehabilitating affordable housing in high-need areas to ensure low- and moderate- income families have access to quality, safe homes. These efforts are especially targeted in neighborhoods where demand for affordable units is most acute.
Palm Springs also addresses economic disparities by directing job creation and workforce development programs to underserved areas. Investments in local business support, employment services, and training help reduce unemployment and foster economic mobility for residents in historically disadvantaged communities.
Infrastructure upgrades— such as improved sidewalks, street lighting, and drainage— are prioritized in low-income neighborhoods that lack access to essential services. These improvements enhance safety, mobility, and overall quality of life for residents.
Vulnerable populations, including seniors, individuals with disabilities, and families with children, are disproportionately represented in these areas. Investments in accessible housing and wraparound services are essential to preventing displacement and supporting long-term stability.
This geographically targeted strategy is shaped by robust community engagement, including public meetings and stakeholder input, ensuring that investments directly respond to residents’ stated needs and promote outcomes across Palm Springs.
Discussion
The geographic distribution of resources and assistance in Palm Springs is strategically designed to focus on neighborhoods with the greatest needs for housing, infrastructure, and economic development. The City targets areas with high concentrations of low- and moderate-income residents and minority populations, as well as neighborhoods affected by historic disinvestment. This approach ensures that resources are directed where they can generate the most impactful outcomes.
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Key areas of geographic focus include Downtown Palm Springs, Desert Highlands/Gateway, Demuth Park/Veterans Tract, and the Lawrence Crossley Neighborhood. These communities face persistent challenges such as substandard housing conditions, overcrowding, and high housing cost burdens. They also report lower access to economic opportunities and essential services. By targeting investments to these areas, the City aims to address long-standing disparities in housing quality, infrastructure, and employment.
In Downtown Palm Springs, the City is prioritizing affordable housing development, home rehabilitation, and infrastructure upgrades to address displacement risks and rising housing costs. In Desert Highlands/Gateway and Lawrence Crossley, investments will support affordable housing, streetscape improvements, and economic development initiatives aimed at correcting historic patterns of exclusion and marginalization.
Economic development programs, including workforce training, job creation, and small business support, are being directed to these target neighborhoods to combat higher rates of unemployment and income differences. Infrastructure enhancements such as sidewalk repairs, drainage improvements, and street lighting upgrades are also planned to improve safety, accessibility, and overall livability.
Palm Springs is committed to a community-driven approach. Public outreach, including surveys, hearings, and neighborhood meetings, has informed these geographic priorities to ensure that the voices of residents are central to the planning process. This strategy reflects the City’s goal of creating a community for all.
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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
Recognizing the growing need for affordable housing options, the City is committed to using federal funds from the Community Development Block Grant (CDBG) to support affordable housing initiatives for low- and moderate-income households, including special needs populations and those experiencing lessness.
This section highlights the City’s efforts to increase the availability of affordable rental units, provide rental assistance to vulnerable residents, and ensure long-term housing stability through partnerships with developers, nonprofit organizations, and community stakeholders. The AP-55 Affordable Housing section reflects Palm Springs’s dedication to addressing housing challenges, preventing displacement, and fostering communities where all residents can thrive.
One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 4
Special-Needs 2
Total 6
Table 9 - One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 6
Acquisition of Existing Units 0
Total 6
Table 10 - One Year Goals for Affordable Housing by Support Type
Discussion
the City of Palm Springs will prioritize the preservation and support of affordable housing through targeted initiatives funded by the Community Development Block Grant (CDBG) program. Recognizing the growing pressure on housing affordability— especially for low- and moderate-income households, seniors, individuals with disabilities, and other special-needs populations— the City has set clear goals to stabilize households and prevent displacement.
the City will rehabilitate 6 existing housing units, preserving affordability and improving habitability for
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low-income homeowners. These efforts are intended to maintain the quality and longevity of the existing affordable housing stock, especially in older neighborhoods where homes may need safety or code compliance upgrades.
Palm Springs does not anticipate new unit production or acquisition in FY 2026, instead focusing limited resources on direct household support and housing preservation.
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AP-60 Public Housing – 91.220(h)
Introduction
Palm Springs has a limited number of public housing units compared to the growing need, which includes both the preservation of existing units and the improvement of housing quality for low-income households. This section outlines the city’s approach to ensuring that its public housing programs continue to provide sustainable, quality living environments and to address any barriers that may affect access to housing for vulnerable populations, such as seniors, individuals with disabilities, and families facing homelessness.
Additionally, the city is committed to ensuring that public housing programs are integrated into the community and provide residents with access to essential services, economic opportunities, and fair housing practices. By leveraging federal and state resources, the city aims to create long-term solutions to housing instability and support efforts for resilient, and thriving communities. The city's goals include improving the overall quality of public housing, expanding housing opportunities, and removing any barriers to accessing these crucial housing resources.
Actions planned during the next year to address the needs to public housing Over the next year, the City of Palm Springs will continue to work closely with the Palm Springs Housing Authority to support capital improvements, resident services, and housing stability for individuals and families living in public housing. Planned actions include pursuing HUD Capital Fund Program (CFP) resources to complete critical maintenance and modernization projects— such as energy-efficient upgrades, roof repairs, HVAC replacements, and ADA accessibility improvements in aging public housing stock.
The City will also support the Housing Authority’s efforts to enhance the quality of life for public housing residents by strengthening partnerships with local nonprofits to deliver on-site services. These include youth enrichment programs, senior wellness services, financial literacy workshops, and health screenings.
Additionally, Palm Springs plans to explore opportunities for leveraging public housing sites for mixed- income redevelopment where feasible. While preserving current units, the City will evaluate how to add density or create mixed-use spaces that support community amenities, jobs, and long-term sustainability. Tenant relocation and return policies will be implemented in any such effort, ensuring that existing residents are protected and empowered throughout the process.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
The Palm Springs Housing Authority will continue its Resident Advisory Board (RAB) program to
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encourage public housing residents to take an active role in management decisions. Residents are invited to participate in public housing planning processes, provide feedback on modernization projects, and review policies affecting their communities. This fosters transparency and resident empowerment.
To support the path to homeownership, the City partners with agencies to provide housing counseling, credit repair services, and first-time homebuyer education tailored to public housing tenants. For qualifying households, the Section 8 Homeownership Program will be promoted as a tool to transition from rental housing to ownership. These efforts help residents build financial capacity and long-term housing independence.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
As of this writing, the Palm Springs Housing Authority is not designated as a troubled Public Housing Agency (PHA).
Discussion
The Palm Springs Consolidated Plan addresses the city’s efforts and strategies regarding public housing and how it plans to expand, preserve, and improve its public housing stock. Public housing plays a crucial role in ensuring that low-income families, seniors, individuals with disabilities, and other vulnerable populations have access to safe, stable, and affordable housing. The city has committed to leveraging federal and state resources to enhance the quality of public housing, improve accessibility, and expand support services for those living in public housing units.
In Palm Springs, public housing programs face significant challenges, including high demand for affordable housing, aging housing stock, and limited resources for major repairs and renovations.
However, the city has made strides in addressing these issues by prioritizing rehabilitation and maintenance of existing public housing units and working with nonprofit organizations and housing developers to increase housing opportunities. Palm Springs also focuses on providing supportive services to residents of public housing, such as access to employment training, healthcare, and educational opportunities, ensuring that the city’s public housing efforts are not only about providing shelter but also improving the overall quality of life for residents.
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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
Palm Springs is committed to ensuring that its housing strategies are providing not only affordable housing but also the necessary services to help these populations maintain stable housing and improve their quality of life. Special needs populations often face challenges related to accessibility, affordability, and access to essential services such as healthcare, employment opportunities, and legal support. As such, Palm Springs has developed a variety of programs designed to meet the unique needs of these groups, both through housing solutions and supportive services.
This section highlights the city’s goals for expanding housing options for these populations, improving the accessibility of existing housing, and providing critical support services. Palm Springs is also focused on collaborating with local agencies, nonprofits, and other stakeholders to ensure that the needs of special populations are met comprehensively, fostering an environment where all residents, regardless of their circumstances, can thrive. The city recognizes that addressing the needs of these groups requires targeted and strategic interventions, as well as continuous engagement with the community to identify emerging needs and adjust services accordingly.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City of Palm Springs, in partnership with nonprofit organizations and the Coachella Valley Association of Governments (CVAG), will continue its proactive efforts to reach unsheltered homeless individuals through street outreach programs. These initiatives focus on building trust with individuals living in encampments, parks, and public spaces and providing assessments that connect them to shelter, healthcare, and supportive services.
Mobile outreach teams— including case managers, social workers, and behavioral health professionals— conduct regular visits to known encampment areas, especially in the downtown corridor and desert outskirts. These teams assess immediate needs, screen for mental health or substance use disorders, and connect individuals to Coordinated Entry System (CES) assessments. They distribute hygiene kits, food, and referrals for crisis stabilization, shelters, and housing programs.
Palm Springs prioritizes trauma-informed, culturally competent outreach tailored to populations such as LGBTQ+ individuals, veterans, and people with chronic conditions. Bilingual outreach staff help reduce language barriers and improve service access among the city’s Hispanic and migrant populations.
Addressing the emergency shelter and transitional housing needs of homeless persons
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2026
33 OMB Control No: 2506-0117 (exp. 09/30/2021)
The City will support emergency shelters and transitional housing programs operated by local providers, such as Martha’s Village & Kitchen and Coachella Valley Rescue Mission. These programs serve homeless individuals and families by offering temporary, low-barrier shelter with on-site case management and connections to permanent housing pathways.
Non-CDDBG unding will be directed toward expanding shelter capacity during extreme weather events through seasonal warming centers and pop-up shelters. Transitional housing programs will continue supporting youth aging out of foster care, survivors of domestic violence, and veterans with specialized recovery or reintegration needs.
The City will also advocate for regional solutions, including additional shelter beds and wraparound services through CVAG’s Homelessness Action Plan. Emphasis will be placed on integrating transitional programs with employment services and permanent supportive housing pipelines.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
Palm Springs supports a Housing First model to rapidly place individuals and families in stable housing while addressing supportive service needs in parallel. This approach reduces barriers to housing entry and shortens the time spent experiencing homelessness.
Palm Springs will also support permanent supportive housing (PSH) projects that combine long-term rental subsidies with intensive case management and health services for chronically homeless individuals. Partnerships with CVAG and Riverside County allow the City to leverage state and federal resources, including ESG-CV and HOME-ARP funding, to sustain housing placements and expand PSH stock.
Prevention of returns to homelessness involves maintaining regular follow-ups, eviction prevention counseling, and ensuring that formerly homeless households have access to employment training, childcare, and health services.
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.
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Annual Action Plan
2026
34 OMB Control No: 2506-0117 (exp. 09/30/2021)
Palm Springs will focus prevention efforts on individuals at imminent risk of homelessness, particularly those facing eviction, domestic violence, or discharge from institutional settings such as hospitals, jails, or foster care. Prevention programs include short-term rental or utility assistance, legal aid for eviction defense, and mediation between tenants and landlords.
Coordination with healthcare providers and social service agencies will be strengthened to ensure warm handoffs for patients exiting hospitals or mental health facilities. Foster youth and justice-involved individuals will be linked to supportive housing, transitional living programs, and case management through county and nonprofit partnerships.
The City will also expand outreach to families facing economic crises due to job loss or illness, connecting them with wraparound services such as food assistance, financial counseling, and childcare support. These proactive interventions aim to keep vulnerable households stably housed and prevent the escalation to homelessness.
Discussion
Palm Springs is committed to supporting these vulnerable populations by providing a variety of services aimed at reducing housing instability and ensuring long-term solutions to homelessness. This section describes the city’s approach to helping low-income individuals and families avoid homelessness, providing the necessary services, and offering support to special needs groups who require additional assistance to access housing and thrive in their communities.
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Annual Action Plan
2026
35 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:
Barriers can stem from various public policies, including land use controls, tax policies affecting land, zoning ordinances, building codes, development fees, growth limitations, and policies that affect the return on investment for residential development. These factors can increase the cost of housing development or restrict the availability of land for affordable housing, making it difficult for low- and moderate-income households to find suitable and affordable housing. The city acknowledges the need to identify and remove or ameliorate these barriers to create an environment conducive to affordable housing development and availability.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City of Palm Springs has identified several actions aimed at removing or alleviating the negative effects of public policies that create barriers to affordable housing development. These efforts focus on reducing regulatory burdens, incentivizing development, and fostering strategic partnerships to increase the availability of affordable housing for low- and moderate-income households.
Palm Springs will revise its zoning ordinances to allow higher-density and mixed-use development in areas where affordable housing is most needed, including locations near public transit and job centers.
These revisions aim to expand opportunities for multifamily housing and utilize underdeveloped parcels more efficiently.
The City will also continue offering financial incentives— such as reduced development fees, property tax abatements, and direct funding— to developers that incorporate affordable housing units into their projects. These incentives help offset construction costs and improve the financial feasibility of building affordable units.
To reduce development costs further, Palm Springs is committed to reviewing and streamlining building codes to remove outdated or overly burdensome requirements that drive up construction expenses.
Additionally, the City will maintain its policy of offering fee waivers and reductions for affordable housing projects, including permitting and inspection fees.
Recognizing that restrictive growth limitations and land use controls can constrain housing development, the City will revisit these policies to support more flexible development on vacant or underutilized land with existing infrastructure.
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Annual Action Plan
2026
36 OMB Control No: 2506-0117 (exp. 09/30/2021)
Finally, Palm Springs will expand public-private partnerships by leveraging publicly owned land and collaborating with private developers to finance and construct affordable housing. These partnerships are key to addressing the affordability gap and scaling up production.
Collectively, these actions reflect Palm Springs’ strategic commitment to eliminating regulatory barriers and expanding the supply of affordable housing for its most vulnerable residents.
Discussion:
Palm Springs has identified several public policy-related barriers that contribute to the limited supply and high cost of affordable housing in the community. These barriers include restrictive zoning ordinances, outdated land use controls, burdensome development fees, and growth management policies that limit the number or density of new housing units.
Zoning regulations and land use controls, while intended to ensure community character and safety, often restrict the development of multifamily or higher-density housing in areas where affordable units are most needed. This limits the availability of land suitable for affordable housing, driving up costs and reducing development opportunities. To address this, the City is actively working to revise zoning ordinances and encourage higher-density and mixed-use developments near transit corridors and employment centers.
Development fees, such as impact fees and permitting costs, can significantly affect the financial feasibility of affordable housing projects. These fees disproportionately impact developments targeting low- and moderate-income households. In response, Palm Springs is pursuing fee reductions and waivers for qualified affordable housing developments to lower overall costs and promote construction.
Growth limitations have also been identified as a barrier, particularly where policies cap new unit production or restrict development in certain neighborhoods. The City is evaluating and updating these policies to support increased housing production, particularly in areas with existing infrastructure and underutilized land.
Additionally, outdated building codes and lengthy permitting processes can delay affordable housing projects and increase costs. Palm Springs is streamlining its development review processes and aligning building standards with affordability goals to reduce regulatory obstacles. These targeted actions— zoning reform, fee reductions, growth policy updates, and regulatory streamlining— Palm Springs is addressing to affordable housing development. These efforts will expand housing opportunities and ensure access to safe, affordable homes for low- and moderate-income residents.
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Annual Action Plan
2026
37 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions – 91.220(k)
Introduction:
This section focuses on the city's efforts to tackle obstacles to meeting the needs of underserved populations, foster and maintain affordable housing, address environmental concerns like lead-based paint hazards, reduce the number of families living at or below the poverty level, develop an effective institutional structure, and enhance coordination between public and private housing and social service agencies. By implementing a variety of strategies and actions, Palm Springs aims to create an environment where all residents, especially those in vulnerable or disadvantaged populations, have access to affordable, stable, and healthy housing.
Actions planned to address obstacles to meeting underserved needs Palm Springs faces several challenges in meeting the housing and service needs of underserved populations, including low- and moderate-income residents, seniors, individuals with disabilities, and the homeless. To address these obstacles, the city is planning to increase the supply of affordable housing through zoning reforms that allow higher-density development and incentivize developers to build more affordable units. The city also plans to leverage state and federal resources to expand available funding for affordable housing projects, homeless services, and supportive housing programs.
Additionally, Palm Springs is committed to improving access to essential services such as healthcare, employment, education, and transportation by partnering with local nonprofits and social service providers to ensure that marginalized populations have the support they need to thrive.
Actions planned to foster and maintain affordable housing Palm Springs is focused on fostering and maintaining affordable housing by prioritizing the preservation of existing affordable units and promoting the development of new housing. The city plans to implement programs aimed at rehabilitating older affordable housing units to prevent deterioration and maintain their affordability for low-income households. Additionally, Palm Springs will continue to offer financial incentives to developers who build affordable housing, including property tax abatements and reduced development fees, making it financially feasible to create more affordable units. The city is also working to expand rental assistance programs, such as Section 8 vouchers, to help low-income families access and maintain affordable housing in the community.
Actions planned to reduce lead-based paint hazards
Palm Springs is committed to reducing lead-based paint hazards, especially in homes built before 1978 that are inhabited by young children or other vulnerable populations. The city plans to implement lead- paint remediation programs, which will include testing and removal of lead-based paint in these homes.
This effort will be supported by public education campaigns to raise awareness about the risks of lead exposure and provide homeowners with resources to address potential hazards. Through these actions,
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Annual Action Plan
2026
38 OMB Control No: 2506-0117 (exp. 09/30/2021)
Palm Springs aims to protect the health and safety of its residents, particularly young children, from the dangerous effects of lead poisoning.
Actions planned to reduce the number of poverty-level families Reducing the number of families living in poverty is a key goal for Palm Springs. To achieve this, the city plans to expand job training and workforce development programs that help low-income families acquire the skills they need to secure stable and well-paying jobs. Palm Springs will also support economic empowerment initiatives, including financial literacy programs and small business assistance for entrepreneurs from low-income backgrounds. The city is focused on increasing access to childcare services and educational opportunities, particularly for single parents, to ensure they can enter or remain in the workforce while providing for their children.
Actions planned to develop institutional structure
Palm Springs recognizes the importance of a strong institutional structure to effectively address housing and community development needs. To strengthen this structure, the city will continue to foster collaboration among public agencies, nonprofit organizations, and private developers. This includes building the capacity of local service providers to handle growing demand for housing and supportive services by offering technical assistance, training, and resources. Additionally, the city will work to streamline and improve the efficiency of its housing programs, ensuring that resources are allocated effectively and that service delivery is responsive to the needs of the community.
Actions planned to enhance coordination between public and private housing and social service agencies
Effective coordination between public and private agencies is crucial for meeting the housing and social service needs of Palm Springs' residents. The city plans to enhance these efforts by strengthening partnerships with local housing authorities, social service providers, healthcare agencies, and employment services. Palm Springs will continue to utilize the Coordinated Entry System (CES), a centralized process designed to streamline intake, assessments, referrals, and service delivery for individuals experiencing homelessness or housing instability. By improving coordination and ensuring that resources are efficiently allocated, Palm Springs will better address the needs of its residents and help prevent homelessness.
Discussion:
The city's efforts to increase affordable housing, provide rental assistance, reduce lead-based paint hazards, and reduce poverty through workforce development are all critical steps toward building a more stable community. Palm Springs' focus on maintaining affordable housing through rehabilitation programs and incentivizing new development will ensure that the housing needs of low- and moderate- income residents are met.
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Annual Action Plan
2026
39 OMB Control No: 2506-0117 (exp. 09/30/2021)
Additionally, the city's emphasis on developing a strong institutional structure and enhancing coordination between public and private agencies will improve service delivery, ensuring that individuals and families in need are connected with the resources required to achieve housing stability. By working collaboratively with local nonprofits, service providers, and housing developers, Palm Springs is positioning itself to address the complex challenges of affordable housing, homelessness prevention, and economic mobility.
The city's commitment to fostering partnerships and building capacity within the community reflects its long-term vision of creating a resilient thriving a environment for all residents. Through these efforts, Palm Springs aims to reduce homelessness, improve housing quality, and empower low-income families to break the cycle of poverty, ensuring a better quality of life for all.
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Annual Action Plan
2026
40 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0
5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 70.00%
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Annual Action Plan
2026
41 OMB Control No: 2506-0117 (exp. 09/30/2021)
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Annual Action Plan
2026
42 OMB Control No: 2506-0117 (exp. 09/30/2021)
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ATTACHMENT B
FY 2026-2027 CDBG Resolution
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RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, APPROVING THE 202 6-
2027 COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) ANNUAL ACTION PLAN; APPROVING THE
COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET
FOR FISCAL YEAR 202 6-2027 IN THE AMOUNT OF
$337,285; AUTHORIZING THE SUBMITTAL OF THE PLAN
AND BUDGET TO THE UNITED STATES DEPARTMENT OF
HOUSING & URBAN DEVELOPMENT (HUD); AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
APPROVAL/AGREEMENT WITH HUD – GRANT # B-23-MC-
06-0561 IN THE AMOUNT OF $337,285 AND TO EXECUTE
THE SUBRECIPIENT AGREEMENTS.
WHEREAS, as a Community Development Block Grant entitlement community, the City of Palm Springs is required to prepare and submit a F ive-Year Consolidated Plan and Annual Action Plan for the use of the federal funds received; and
WHEREAS, the City of Palm Springs is eligible to receive an entitlement of $ 337,285 of Community Development Block Grant funds under the U.S. Department of Housing & Urban Development regulations; and
WHEREAS, the se funds, totaling $337,285, must be used for eligible activities which principally benefit low- and moderate-income persons; and
WHEREAS, the City Council held two public hearings on March 21, 2026, and April 22, 2026, to receive public input on the allocation of these funds;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The 2026-2027 Annual Action Plan is hereby approved. The City Manager or his designee is authorized to submit the Annual Action Plan, which accurately reflects the 202 6-2027 CDBG budget and projects approved by the City Council to the United States Department of Housing & Urban Development.
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Resolution No. _______
SECTION 2. The total Community Development Block Grants funds available for 20 26- 2027, by authorized category of basic eligibility, are approved as follows:
2026-2027 CDBG FUNDING ELIGIBILITY CATEGORIES
Public Facilities, Capital Improvements, $219,235.25 and Residential Rehabilitation
Public Services $ 50,592.75
TOTAL PROGRAMMATIC FUNDS (80%) $269,828.00
ADMINISTRATION (20%) $ 67,457.00
TOTAL CDBG 2026–2027 FUNDING $337,285.00
SECTION 3. The City Manager is hereby authorized to accept and execute the Funding Approval/Agreement with HUD – Grant #: B-23-MC-06-0561 in the amount of $337,285, for the Fiscal Year 2026-2027 CDBG Program, 52 nd Program
Year.
SECTION 4. The City Manager is hereby authorized to execute the following Subrecipient Agreements and all necessary documents, in a form acceptable to the City Attorney:
2026-2027 CDBG:
City of Palm Springs Department of Housing & Community
Development – Home Repair Program $219,235.25
Riverside Legal Aid – Legal Assistance Program $50,592.75
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Resolution No. _______
ADOPTED this ___ day of April 2026.
Scott C. Stiles, City Manager
ATTEST:
Brenda Pree, City Clerk
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Resolution No. _______
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that Resolution No. ______ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on April __, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Brenda Pree, MMC,CERA, City Clerk
City of Palm Springs, California
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ATTACHMENT C
Map of CDBG Low/Mod Areas
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10 111
111B
111
111
9405002
0448072
0445211
0445242
9405001
0446064
0449043
9412001
9410012
0446061
9410023
9412002
0446054
0448042
9405003
0447021
9407001
0446062
0446053
9411001
0446041
0446022
9414001
0446043
9410022
0446063
0447011
0447012
9410021
9408004
0446051
0448061
9413004
0446023
9407002
0448041
9413002 9413001
0448051
9414003
9414002
0448052
9408003
0446042
9408002
0447013
0448062
9410011
0446052
9408001
0446021
9413003
9407003
0448071
Legend
Centerline
CDBG Area
Above 51% Low Mod
City of Palm Springs
Palm Springs
2026
0 1 20.5
Miles
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ATTACHMENT D
CDBG - Owner Occupied Home Rehabilitation
Program Guidelines
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1 City of Palm Springs
OWNER OCCUPIED HOME REHABILITATION
PROGRAM GUIDELINES
City of Palm Springs | Housing and Community Development Department 3200 E Tahquitz Canyon Way | PO Box 2743 | Palm Springs, CA 92263-2743
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2 Table of Contents
Section 1 - GENERAL AUTHORITY AND DEFINITIONS ......................................................................... 3 Section 2 - PROGRAM PURPOSE ................................................................................................................. 4 Section 3 - PUBLIC AWARENESS ................................................................................................................ 4 Section 4 - QUALIFICATIONS ...................................................................................................................... 5 Section 5 - ELIGIBILITY INCOME GUIDELINES ...................................................................................... 6 Section 6 - PROGRAM LIMITATIONS ......................................................................................................... 6 Section 7 - LOAN PROGRAM REQUIREMENTS ........................................................................................ 6 Section 8 - INFORMATION REQUIRED FROM ALL APPLICANTS ........................................................ 7 Section 10 - PROGRAMS AVAILABLE ....................................................................................................... 7 GRANTS .............................................................................................................................. 7 Section 11 -LEAD BASE PAINT TESTING AND LEAD HAZARD REDUCTION PLAN ........................ 8 Section 12 - PROGRAM IMPLEMENTATION ........................................................................................... 10 Section 13 - CONFLICT OF INTEREST ...................................................................................................... 11 Section 14 - STAFF INSPECTION- PLANS - SPECIFICATIONS ............................................................. 12 Section 15 - REHABILITATION PLANS & SPECIFICATIONS ............................................................... 12 Section 16 - REHABILITATION .................................................................................................................. 13 Section 17 - OBTAINING BIDS FOR CONSTRUCTION .......................................................................... 13 Section 18 - PREPARATION, RECEIPT AND OPENING OF BIDS ......................................................... 14 Section 19 - QUALIFICATIONS OF BIDDERS .......................................................................................... 15 Section 20 - CONSTRUCTION..................................................................................................................... 16 Section 21 - CONTRACTOR REQUIREMENTS AND RESPONSIBILITIES ......................................... 166 Section 22 - GUARANTEES & WARRANTIES ....................................................................................... 188 Section 23 – REHABILITATION DEFICIENCIES ..................................................................................... 18 Section 24 - SUB-CONTRACTORS ............................................................................................................. 19 Section 25 - GRIEVANCE POLICY ............................................................................................................. 19 Section 26 - CONTRACT PROVISIONS ..................................................................................................... 20
Deleted: 6
Deleted: 9
Deleted: 11
Deleted: 12
Deleted: 14
Deleted: 15
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3 Section 1 - GENERAL AUTHORITY AND DEFINITIONS
1. LEGAL AUTHORITY FOR REHABILITATION GRANTS: Housing Rehabilitation grants are authorized under the U.S. Department of Housing and Urban Development Regulations.
2. DEFINITIONS: Following are definitions of various terms as used with respect to housing rehabilitation grants:
a. APPEALS: Housing and Community Development Director will serve to consider written request for reconsideration of staff’s determinations on program guidelines and eligibility.
b. HOUSING AND COMMUNITY DEVELOPMENT: A department of the City of Palm Springs responsible for the general operation of the program, which includes but is not limited to the initial contact with property owners, preparation of plans and specifications, processing of all grant documents, securing contractors for the owners, inspecting the work, and counseling with grant recipients as needed, providing direction and instructions to contractors, processing payments and maintaining all program files..
c. HUD: The United Stated Department of Housing & Urban Development.
d. OWNER-OCCUPIED PROPERTY: A property that is owned and occupied by the applicant and is used entirely for residential purposes.
e. PRIORITY NEED: From the first come first serve list. In the event the home is damaged and habitation is no longer safe, priority will be given for loss due to natural disasters such as hurricane, fire, flood, etc. upon approval of the Housing and Community Development Director.
A separate first come first serve waiting list is established for catastrophic loss.
f. REHABILITATION: term may be used interchangeably to refer to Rehabilitation projects throughout this handbook.
g. REHABILITATION COST: The total cost of repairs and improvements and other associated costs with the rehabilitation project.
h. VARIANCES: The Housing and Community Development Director will serve to consider written variances for exceptions to program guidelines.
i. VOLUNTARY WITHDRAWAL: Applicants who choose to withdraw from the waiting list will be withdrawn immediately from the waiting list. Applicants who reapply for assistance will be considered new applicants.
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4 Section 2 - PROGRAM PURPOSE
The purpose of the City of Palm Springs's Community Development Block Grant Housing Rehabilitation Program is to provide rehabilitation assistance to eligible low and moderate income Homeowners residing in the corporate city limits of the City of Palm Springs. The Program's Objective is to implement a program to arrest the deterioration of substandard single family homes by rehabilitating to conform to the International Property Maintenance Code and its amendments, the City of Palm Springs’ Housing Rehabilitation Performance Manual and other applicable State Laws, City Codes and Ordinances
.
A Housing and Community Development staff person or approved Partner Agency will prioritize the repairs and improvements based on the health, safety, neighborhood enhancement, and needs of the property. Housing and Community Development staff sustains the right and has the discretion to determine and deny the approval of any application based on the reasonableness of the repairs requested for the home.
The goal of this program is to work in partnership with qualified Homeowners to maintain the existing housing stock in decent, safe, sanitary and affordable conditions.
Assistance through any of the programs herein shall be voluntary and relocation assistance shall not be provided.
Assistance is limited to single family residential structures, mobile homes and the inside of condos in HOA associations within the city limits of the City of Palm Springs.
Section 3 - PUBLIC AWARENESS
The Housing and Community Development Department may advertise that it is accepting applications for program assistance through local newspapers or the broadcast media.
Inquiries may be received through a variety of methods, including telephone inquiries, walk-ins and letters. Staff will respond to these inquiries by providing a verbal or written description of program requirements including brochures and other documentation available to the public.
Staff encourages interested and potentially eligible homeowners to schedule a personal interview with a staff member.
Complaints regarding lack of understanding of the program, the level of service provided, the public awareness process, or other matters shall be promptly addressed, if possible, by a staff person. If a complaint cannot be resolved at that level, the complaint will be forwarded to the Housing and Community Development Director for resolution and documentation. If no resolution can be found, the matter will be forwarded to the Deputy City Manager.
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5 Section 4 - QUALIFICATIONS
1. Assistance is limited to single family residential structures, mobile homes and the inside of condos in HOA associations.
2. An applicant must be a resident of the City of Palm Springs, and live in the home to be assisted a minimum of 1 year before applying for assistance.
3. Applicants must also have a warranty deed in their name (or other legal document as stated elsewhere within these guidelines).
4. An applicant/household will not be eligible for assistance if:
a. Non-elderly Head of Household has resources (other than home to be rehabilitated), or cash assets in excess of $10,000.00. b. Elderly Head of Household (62 years of age or older), has resources (other than home to be rehabilitated), or cash assets over $20,000.00. c. Disabled Head of Household has resources (other than home to be rehabilitated), or cash assets over $20,000.00.
d. Resources include but are not limited to the following: real property, vehicles and bank accounts.
e. Exempt resources include:
i. home to be assisted and surrounding property.
ii. first family vehicle, vehicles necessary for employment or training related purposes, and vehicles used to transport a physically handicapped person. f. There has been a transfer of resources within two years of date of application by household members for the purpose of qualifying for the program. g. Subject property must be the only real property owned by the applicant.
An applicant who has more than one dwelling structure on the property to be rehabilitated or reconstructed unless the applicant removes the excess structure. An applicant/household who is operating a business out of said home. i. An applicant/household who has failed to meet their bankruptcy obligations. j. A bankruptcy discharge must be:
i. At least 5 years prior to the date of application for Chapter 7. ii. At least 3 years prior to the date of application for Chapter 13. k. An applicant/household who has outstanding judgments. l. An applicant/household is presently delinquent on any Federal debt or has a lien placed against his/her property for a debt owed to the United States Government.
5. An applicant/household who is accepted for assistance shall first remove all abandoned appliances, junked vehicles, trash, rubbish, etc. from the property before assistance is rendered.
6. An applicant/household must meet the low to moderate income criteria as set forth by the Department of Housing and Urban Development's Part V (Section 8) requirements as they are now or may be adopted by HUD on a yearly basis.
7. Total household income is determined by computing the income as required in 24 CFR Part 5. Income of all the persons residing in the household at the time of the application will be included in the calculation.
8. Applicants shall be eligible to apply for assistance under the Housing Rehabilitation Program no more than once per City fiscal year. Any subsequent application submitted within the same fiscal year shall be deemed ineligible for consideration. The City’s fiscal
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6 year shall be defined as July 1 through June 30
Section 5 - ELIGIBILITY INCOME GUIDELINES
Eligibility for CDBG housing program support is determined in accordance with income limits established by the Department of Housing and Urban Development. These figures are revised annually by the Department of Housing and Urban Development. The most recent income limits are found in Attachment #1.
Section 6 - PROGRAM LIMITATIONS
1. Any applicant, whose property is located within a 100-year flood plain according to current FEMA Flood Insurance Rate Maps, shall not be eligible for assistance for on-site housing rehabilitation assistance programs.
2. In the case where the Community Development Administrator has determined that the costs for rehabilitation exceed program guidelines ($35,000.00), or more than 50% of the appraised after rehabilitation value, the applicant will be referred to other affordable housing providers for possible assistance through their housing programs. In the event of an emergency concerning health and safety or natural disaster, the Community and Economic Developer Director can approve costs exceeding program guidelines.
3. Homeowners are eligible to receive assistance through the CDBG Residential Rehabilitation program only once every five (5) years. This policy is in place to ensure fair and equitable distribution of resources and to maximize the number of households that can benefit from the program. Prior participation will be verified through program records before approving any new application.
4. The Walk Away Policy applies when it is determined that it is not economically feasible or possible to bring a unit into compliance with Residential Rehabilitation Standards (RRS) within the maximum assistance limits established in Section 10 of the Housing Rehabilitation Program Guidelines.
Section 7 - GRANT PROGRAM REQUIREMENTS
All grant programs will require, at a minimum, the following:
1. Title search on property.
2. Proof of Paid City, School and County Taxes.
3. Verification of income and financial analysis.
4. Property to be located inside the City of Palm Springs city Limits.
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7 Section 8 - INFORMATION REQUIRED FROM ALL APPLICANTS
The following information is needed from all adult household members. An application will not be considered complete and processed until all information is received by the CED Staff.
1. Proof of ownership - Warranty Deed or other document as stated herein.
2. Utility receipts with applicant’s name
3. Copies of the following for all household members over the age of 18:
a. W-2's and 1040's (if employed)
b. Income Tax Returns for the past 2 years
c. Social security cards, current driver’s license or California ID
4. Authorization to obtain the following for all household members over 18:
a. Verification of other income, or assets
b. Verification of Employment
c. Verification of Unemployment check
d. Verification of Social Security, SSI, etc., checks
e. Verification of Bank deposits
5. Receipts of paid City, School and County Taxes
6. HUD prohibits providing assistance to persons not lawfully present in the United States. All contributing members of the household receiving Program funds must be either a:
1. Citizen of the United States
2. Permanent Resident Alien
3. Temporary Resident Alien with authorization work in the United States.
The Program reserves the right to request documented verification as a condition to making an eligibility determination of the Applicant.
Section 9 - TEMPORARY RELOCATION
Applicants agree that participation in the program is voluntary and to voluntarily relocate during Lead Based Paint activities and general construction.
Voluntary homeowner rehabilitation does not trigger relocation requirements as per the Uniform Relocation Act for the homeowner.
Section 10 - PROGRAMS AVAILABLE
GRANTS
The Housing and Community Development Department provides grants to qualified homeowners for the rehabilitation of their single-family, condo or substandard mobile homes.
1. Grant applications are accepted in person at the City of Palm Springs Housing and Community Development Department, C/O Noe Arechiga 3200 E Tahquitz Canyon Way, Palm Springs, CA 92263.
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8 2. Applicants must meet the following requirements:
a. Income: Applicant’s total income may not exceed 80% of the median income for the area, adjusted to family size.
b. Ownership: Applicant/Homeowner(s) must live in said home and have clear title to property.
c. Applicant must have an ownership interest in any one of the following types of ownership in the property to be improved:
a) Individual fee ownership with recorded deed (no corporate, trust, legal partnerships, etc.); or
b) Individual fee ownership subject to a mortgage or other lien securing debt; or
c) An ownership interest in a properly recorded land contract; or d) A life estate interest provided the following are met:
1. The life estate person occupying the dwelling to receive assistance must be income eligible.
2. The life estate agreement terms must be written, signed, and recorded in the public records of Riverside County, California.
3. Both the owner of the life estate and the holder(s) of the remainder interest must sign program documents.
4. The holder(s) of the remainder interest must sign the “Life estate Responsibility” form.
d. Taxes: City, School, and County Taxes must be paid and up to date at the time application is submitted.
3. Housing rehabilitation grants are for a maximum of $35,000.00 per home.
4. Qualified Applicants who own a home built prior to 1978 will be provided a grant that covers 100% of the total expense to perform a Lead Base Paint Risk Assessment/Inspection, all lab fees, interim controls and/or abatement procedures, and clearance testing to ensure that the home is lead safe.
5. Any expenses classified as costs related to Lead Base Paint Hazard Evaluation and Reduction Costs shall be covered by a grant and not be included when calculating Rehabilitation costs.
Section 11 -LEAD BASE PAINT TESTING AND LEAD HAZARD REDUCTION PLAN
All Applicants qualifying for assistance under any of the grant programs for rehabilitation will have their homes tested for lead based paint according to HUD guidelines if their home was constructed prior to 1978 except those properties exempt under the following:
Residential structures built after January 1, 1978.
Emergency action activities (Natural Disaster).
Existence of Lead Based Paint unlikely:
Areas where state and local governments banned lead-based paint prior to January 1, 1978.
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9 Properties found not to contain lead-based paint during earlier testing that meets the requirements of prior evaluations.
Properties where all lead-based paint has been identified and removed using approved methods.
Human threat Unlikely:
Unoccupied units that will be demolished.
Property not used for human residential habitation.
Rehabilitation that does not disturb paint.
Homeowners shall be provided with information about the hazards of lead-based paint. Testing shall be completed by a certified lead based paint testing professional. Personnel shall be required to follow all HUD standards regarding the testing of lead base paint.
The following actions must be taken to protect occupants from lead-based paint hazards associated with lead hazard reduction activities.
Occupants may not enter the worksite during lead hazard reduction activities. Reentry is permitted only after lead hazard reduction activities are completed and the dwelling has passed a clearance examination.
Occupants of the unit must temporarily relocate during lead hazard reduction activities.
Relocation shall be voluntary as part of the program assistance to be provided. Relocation must be done before lead hazard reduction activities begin.
Relocation is recommended when lead reduction procedures require that:
1) Utilities such as water, electricity, and gas are turned off for periods exceeding eight hours. 2) Lead reduction takes place in the kitchen or available bathrooms. 3) Extensive lead reduction in several rooms requiring work over several days. 4) Occupants cannot be prevented from entering the containment site after hours. 5) Debris and lead dust cannot be contained in the worksite and may spread to occupied areas. 6) A pregnant woman or a child under the age of six occupies the home.
Circumstances when occupant relocation is not required:
1) Treatment will not disturb lead-based paint or lead-contaminated dust. 2) Treatment of the interior will be completed within one period in eight daytime hours, the site will be contained, and the work will not create other safety, health, or environmental hazards. 3) Only the building’s exterior is treated; the windows, doors, ventilation intakes, and other openings near the worksite are sealed during hazard reduction activities and cleaned afterward; and a lead safe entry is provided.
4) Treatment will be completed within five calendar days; the work area is sealed; at the end of each day, the area within 10 feet of the containment area is cleared of debris; at the end of each day, occupants have safe access to sleeping areas, bathroom, and kitchen facilities; and treatment does not create other safety, health, or environmental hazards.
Occupants belongings should be protected from lead contamination during lead hazard reduction activities by relocating or covering and sealing them and ensure that the worksite is secured.
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10 Section 12 - PROGRAM IMPLEMENTATION
METHOD OF IMPLEMENTATION FOR REHABILITATION AND EMERGENCY GRANT
PROGRAMS
1. Applications for assistance under any of the programs contained herein will be processed and reviewed by the Housing and Community Development Staff.
2. The Housing and Community Development Staff will formally accept or reject all applications for assistance based on meeting program requirements by staff review of submitted information received from the applicant, Title Company, etc.
3. Applications for program assistance will be taken on a "first come first serve" basis, except in emergency assistance cases.
4. Applicants will be chosen for eligibility review from a waiting list.
5. If an applicant is eligible for assistance, the Housing and Community Development Staff will help homeowner, if he/she/they so chooses, through the bidding process by advertising for proposals and receiving bids from general contractors.
6. Bid proposals must be according to the guidelines established by the Housing and Community Development Department to ensure compliance with the requirements applicable to the use of federal funds.
7. Homeowners Insurance shall be required for any home assisted through the Housing and Community Development Department’s Housing Rehabilitation Program.
8. In order to ensure maximum use of CDBG funds, the lowest most responsible bidder will be awarded the rehabilitation project. In cases where the lowest bid exceeds the maximum grant limit, the Homeowner(s) will have the option of:
a. Paying the difference over the maximum grant amount, or b. Reducing the amount of work to be done to comply with the maximum grant limits (although all safety, health and code violations shall not be omitted from specifications), or
c. The home may be rejected from participation in the rehabilitation program as said property will be considered beyond rehabilitation program assistance, and the project may be referred to other affordable housing providers housing programs.
9. After the Contractor has been selected, the Housing and Community Development Staff will fund for assistance through one or more of the programs previously described.
10. All activities undertaken in the Housing Rehabilitation Program are subject to the conditions and provisions set forth in the program's Mechanic's Lien Contract, Rehabilitation Contract, which is signed by both the Contractor and Homeowner(s) before commencement of the work.
11. If an unforeseen problem arises during the construction period, a change order may be submitted.
12. Change orders, if necessary, will be reviewed on a case-by-case basis and must be approved in writing by the City of Palm Springs Staff, Housing and Community Development Director, Contractor and Homeowner(s) before proceeding with the work being requested.
13. Grant amount including change orders may not exceed the maximum grant limits, unless an unforeseen problem arises such as (including, but not limited to):
a. Deteriorated roof decking
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11 b. Deteriorated foundation beams
c. Faulty electrical wiring
d. Damaged plumbing lines (gas, water, sewer)
e. Interior wall and roof framing damage.
14. Change orders for unforeseen items, may not exceed 15% of the maximum grant limit or 25% of the original bid amount.
15. All participants (Applicants and Contractors) must abide by the Housing Rehabilitation Program Guidelines and procedures as established by the Housing and Community Development Housing Program Staff to participate in the program.
16. The City of Palm Springs Staff will:
a. Assist the Homeowner(s) in ensuring that all work is completed and passes city inspection according to established specifications, floor plans and/or City's Building Code and Ordinances.
b. Conduct a final inspection of the structure when notified to do so in writing by the Contractor.
c. When final inspection determines that the rehabilitation work has been satisfactorily completed according to the Specifications, floor plans, construction contract, City of Palm Springs' Housing Rehabilitation Performance Manual and all applicable City Codes and Ordinances, and obtain from the Contractor a signed "Contractor's Affidavit", along with affidavits from the electrician’s and plumber’s if applicable. Warranties for specific items will also be requested from Contractor before final payment is made.
17. Homeowners and Contractors are encouraged to resolve any dispute among themselves.
18. If Homeowner(s) and Contractor are not able to reach a mutual agreeable solution, then the dispute may be brought before the Housing and Community Development Department to review the situation and make a resolution ruling.
19. If the ruling is unacceptable by both parties, then the parties may seek legal recourse. The City of Palm Springs will not be a party to such litigation.
20. Applicants who cancel applications after title search, lead based paint inspection/testing, and/or specifications have been made shall be charged upfront for the soft costs (including staff time) to be expended when they reapply.
21. Applicants who postpone their applications will be placed at the bottom of the waiting list.
22. The City of Palm Springs will maintain all applications and files as required by the U.S.
Department of Housing and Urban Development and will be available for review by the U.S. Department of Housing and Urban Development Staff.
Section 13 - CONFLICT OF INTEREST
The City of Palm Springs covenants that neither member of its organization nor staff member who exercises influence on the decision making process presently has or will have any interest, direct or indirect, with any person, corporation, company or association hired to carry out any program activities or is a beneficiary of any program activity. All program participants will be required to sign a Conflict of Interest statement under which any existing or potential conflict of interest must be revealed.
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12 Section 14 - STAFF INSPECTION- PLANS - SPECIFICATIONS
The City of Palm Springs will visit the site of the proposed project to do an inspection of the home and develop a preliminary work write-up.
1. In regard to rehabilitation, primary areas to be inspected and evaluated will be those outlined in the International Property Maintenance Code. This code provides the minimum requirements necessary to maintain any residential occupancy in a safe and sanitary condition. Compliance with the American Disability Act will be required for those persons assisted with a physical disability.
2. Following the preliminary inspection, the City of Palm Springs will help Homeowner(s) in developing the specifications explaining work that is to be needed to make the home safe, decent, and sanitary.
INSPECTION PHASE
a) Once initial eligibility has been determined, Housing and Community Development Department Staff will schedule an on-site inspection of the property with the appropriate partner agency and homeowner.
b) Housing and Community Development Department Staff/Partner Agency will inspect the property and ensure that homeowner is informed of all program requirements, documents, and terms of program participation.
c) Pictures of the dwelling and yard will be taken. Pictures need to be inclusive of the entire property and should consist of, at a minimum, the following:
a. Direct frontal view taken from across the street;
b. Corner frontal view taken from across the street;
c. Corner frontal view taken from across the street from the opposite direction; d. Same views from any other street frontages if the home is on a corner lot; and e. Localized areas of repair.
d) In cooperation with the applicant, the Housing and Community Development Department Staff/partner agency will prepare a scope of work. The Scope of Work describes the problem(s) identified during the on-site inspection of the property and will be presented to a homeowner for review, comment, and approval. Housing and Community Development Department Staff should understand and be specific in their definition of the scope of work.
Specificity ensures that bids are comparable and enhances the ability of the contractors to accurately respond to the bid request.
e) The Scope of work must address the following priorities of repairs:
i) Health and Safety Issues/Systems
ii) Exterior Improvements
iii) Energy Efficiency Measures
Section 15 - REHABILITATION PLANS & SPECIFICATIONS
After the floor plan and specifications have been completed, the City of Palm Springs Staff will provide applicant with a preliminary cost estimate for all repairs to be made on home.
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13 If the estimated construction cost exceeds the maximum grant limit, and applicant cannot pay for the excess cost to meet codes adopted by the City, the City of Palm Springs Staff shall refer the applicant to other affordable housing providers for consideration in their housing programs.
Section 16 - REHABILITATION
Upon approval of the plans and specifications by Homeowner, the City of Palm Springs Staff will develop detailed bid specifications and floor plans to provide bidding Contractors with a description of all work that is to be completed.
Detailed specifications will include a floor plan of the structure and a detailed description of all work to be done. Applicant will be required to sign a "Certificate of Acceptance" form. This is to confirm their agreement and full understanding of the scope of assistance to be provided.
Section 17 - OBTAINING BIDS FOR CONSTRUCTION
The Housing and Community Development Department will assist Homeowners through the bidding process by advertising for bidders via local newspaper, internet, email, or fax.
1. A maximum of fifteen (15) days will be given to allow Contractors enough time to prepare a bid and meet HUD regulations.
2. Staff will hold a pre-bid conference with all bidding Contractors to discuss any questions regarding specifications, floor plans and site locations.
3. Contractors must submit bids for Housing Rehabilitation projects to the Housing and Community Development Department in a sealed envelope within the time allotted, as specified in advertisement for bids, otherwise bids will not be considered.
4. All bids will be opened at a scheduled bid opening as specified in advertisement for bids.
5. Contractors will be awarded a maximum of two (2) contracts per bidding cycle. This limit may be waived by the Housing and Community Development Director provided that the Contractor has demonstrated capacity and experience on prior projects with the City of Palm Springs Housing and Community Development Department and negotiations with the second lowest bidder have failed. In the case that a Contractor is determined to be the lowest bidder on more than two contracts and does not have the demonstrated experience and capacity, the contracts to be awarded to the next lowest bidder upon determination the bid is reasonable and justifiable. The remaining bids will be awarded to the next lowest qualified bidder(s). Contractors bidding for the first time, and being low bidder on more than one home, will only be awarded one home.
6. Bidders proposals will be in effect for thirty (30) days after correctly submitting bid.
7. Upon award of a bid, Homeowner(s) shall issue a Notice to Proceed to Contractor no later than fifteen (15) days from the bid award date.
8. If the foregoing time limits are exceeded, it shall be the Bidders prerogative to withdraw his/her bid in writing, if he/she so desires.
9. If all bids are over the maximum grant limit amount, bids will be reviewed by the Homeowner(s) and City of Palm Springs Staff to decide what items, if any, listed in the Specifications can be eliminated, but still address all code related repairs.
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14 a. Non code related repairs may be eliminated to bring project within maximum grant limits.
b. If project cannot be reduced to the maximum grant limit amount, the applicant may choose to pay the difference, up to 20% of the grant limit amount.
10. Once a Contractor has been selected, authorization to start construction will be in a Notice to Proceed Order to the Contractor.
11. Contractor will be required to start construction on project within ten (10) working days of contract signing.
12. Following approval of grants by Department, the Housing and Community Development Staff will prepare grant documents and notify applicant of the closing date.
13. During the grant closing process, all necessary grant documents and construction contracts will be signed by Homeowner(s) and Contractor.
14. The Homeowner, Contractor, and Housing and Community Development Staff shall attend the grant closing.
15. Contractors must register to get a Business License and get permits with the Building Department.
Section 18 - PREPARATION, RECEIPT AND OPENING OF BIDS
Each bid must be submitted on the supplied form and be accompanied by:
1. Non-Collusion Affidavit;
2. Agreement to provide the following:
a. Proof of General Contractor’s and Subcontractor’s (plumbers, electricians, etc.) business license with the City of Palm Springs.
b. List of all subcontractors;
c. Proof of General Liability & Automobile Insurance
3. Bids will be received by the Housing and Community Development Department of the City of Palm Springs until date and time specified on public notice, and then publicly opened and read aloud.
4. The envelopes containing the bids must be sealed, addressed to the City of Palm Springs Attn: Noe Arechiga, Housing & Community Development Dept. 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 or via email to Noe Arechiga at [email protected].
5. The City may consider informal any bid not prepared and submitted in accordance with the provisions thereof and may waive any informalities or reject any and all bids. Any bid may be withdrawn prior to the above scheduled time for the opening of bids or authorized postponement thereof.
6. Any bid received after the time and date specified shall not be considered.
7. Two qualified bids correctly submitted as specified above, shall be preferred per bid opening on each project.
8. The City reserves the right to reject any or all bids.
9. All required forms must be submitted at the time of bid opening .
10. Contractor and subcontractors must be in good standing and not be indebted to the City of Palm Springs.
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15 Section 19 - QUALIFICATIONS OF BIDDERS
1. The City may make investigations as deemed necessary to determine the ability of the bidder to perform the rehabilitation work and the bidder shall furnish to the City of Palm Springs all such information and dates for the purpose as the City may request.
2. The City reserves the right to reject any bid if the evidence submitted by or investigation of, such bidder fails to satisfy the City that such bidder is properly qualified to carry out the obligations of the contract and to complete the work contemplated therein.
3. Conditional bids will not be accepted.
4. Bidder must agree to commence work on or before a date to be specified in a written "Notice to Proceed" from the Homeowner(s) and to fully complete the improvements within the time period specified in the contract between the Homeowner(s) and Contractor.
5. Bidder must agree to also pay, as a penalty for not complying with the time specified in the Contract, the sum of $75.00 for each working day beyond the time specified.
6. Each bidder must inform himself/herself fully of the conditions relating to the construction of the project and the employment of labor thereon.
7. Contractor/Bidder will acknowledge that he/she is familiar with conditions enabling him to estimate costs or work as called for.
8. Quantities and dimensions as indicated on specifications and floor plans are approximate.
9. It is the Contractors responsibility to verify all quantities and dimensions for the purpose of estimating. Failure to do so will not relieve a successful bidder of his obligations to furnish all material and labor necessary to carry out the provisions of his/her contract.
10. Insofar as possible, the Contractor, in carrying out his/her work must employ such methods or means as will not cause any interruption of, or interference with the work of any other Contractor.
11. If a Homeowner remains in the home during rehabilitation of the home, and a utility is to be turned off for rehabilitation purposes, and left off for more than twenty-four hours, there will be a fine of $50.00 per day unless temporary facilities are set up on the premises at the Contractor’s expense.
12. No interpretation of the meaning of the plans, specifications or other pre-bid documents will be made to any bidder orally.
13. Any and all such interpretations and any supplemental instructions will be in the form of written addenda to the specifications which, if issued, will be mailed to all prospective bidders or may be distributed at the pre-bid conference.
14. Failure of any bidder to receive any such addendum or interpretation shall not relieve such bidder from any obligation under his/her bid as submitted.
15. All addendums so issued shall become a part of the Contract documents.
16. The Bidder's attention is directed to the fact that all applicable State Laws, Municipal Ordinances and the rules and regulations of all authorities having jurisdiction over construction of the project shall apply to the contract throughout and they will be deemed to be included in the contract the same as though herein written out in full.
17. At the time of opening of bids, each bidder will be presumed to have inspected the site and to have read and to be thoroughly familiar with the plans, specifications and contract documents (including all addendum and/or interpretations).
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16 18. The failure or omission of any bidder to examine any form, instrument or document shall in no way relieve any bidder from obligation in respect of his/her bid.
Section 20 - CONSTRUCTION
During the construction phase, the City of Palm Springs Staff will make periodic inspections to ensure work is completed in a satisfactory manner and to ensure compliance with specifications, floor plans, City codes, City of Palm Springs Housing Rehabilitation Performance Manual and other terms and conditions of the construction contract.
Section 21 - CONTRACTOR REQUIREMENTS AND RESPONSIBILITIES
1. Contractors shall be required to furnish evidence of the following:
a. Commercial General Liability Insurance protecting the Owner(s) in an amount of not less than $500,000.00 Each Occurrence, $500,000.00 General Aggregate; b. $500,000.00 Products & Completed Operations Aggregate in case of bodily injury including death and property damage (inclusion of Builder's Risk Ins.) arising out of the work performed by or on behalf of the Contractor;
c. Automobile Liability Insurance coverage in an amount of at least $20,000.00 each person, $40,000.00 each accident for bodily injury including death and $15,000.00 for property damage, as required by the Texas Safety Responsibility Act.
2. Plumbers and Electricians hired by Contractors must have master license for their respective trades and have their professions registered with the NAME OF GRANTEE.
Plumbers and Electricians will be required to obtain their own permits.
3. General Contractor will not be allowed to pick up permits for their Plumbers or Electricians.
4. Contractor shall be required to obtain all necessary building permits before starting construction.
5. Contractor will also call upon the proper authorities for code compliance inspections and assume the fee for the same.
6. Contractor shall submit sealed bids promptly and accurately to the Housing and Community Development Department at City of Palm Springs, ATTN: Noe Arechiga, 3200 E Tahquitz Canyon Way, Palm Springs, CA 92262, on or before the time specified in the bid packet.
7. Contractors will be allowed to visit proposed construction sites after bid packets are issued.
8. During the pre-bid conference Contractor will clarify if so needed, with the Housing Rehabilitation Staff, any item stated on the specifications, otherwise, the specifications shall remain as written.
9. Contractor shall review specifications with accompanying floor plans so that any item or any work specified in either the specifications or floor plans are to be executed the same as if occurring in both.
10. Any items of labor or articles of materials that are neither directly nor indirectly shown on the drawings or mentioned in the specifications but are nevertheless necessary for proper completion of the obvious intention hereof, are to be provided by the Contractor in his bid.
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17 11. Should any drawings or dimensions be omitted on the scale drawings where are necessary for a clear and comprehensive understanding, or should any errors appear in either, it will be the responsibility of the Contractor to advise the proper parties, but not go on with the work in uncertainty.
12. All materials of all kinds and character, except those materials included in the contract of a subcontractor, are to be furnished by the General Contractor unless otherwise therein described.
13. The Contractor is to furnish all transportation, labor, materials, apparatuses and tools for doing the entire work in the best possible and most rapid manner; and to its entire proper and substantial completion.
14. The Contractor shall be responsible for removal or trimming of any trees, shrubs, etc.
15. The Contractor shall be held responsible for any violation of City Ordinances.
16. The Contractor shall remove all rubbish, waste material and construction material from site no less than once a week, and keep the premises as clean as possible during the process of the rehabilitation work.
17. At the time of project completion, the Contractor shall deliver the building in a broom clean condition.
18. Contractor shall be required to commence work within ten (10) working days from contract signing (or as stated in the Notice to Proceed), and shall meet deadline for completion of project as specified in the Construction Contract.
19. Contractor shall follow Lead Base Paint Safe Work Practices in the event lead base paint is found in the home.
20. Any Contractor exceeding the deadline will be penalized according to the Construction Contract. Contractors will be given one additional work day for every approved rain day during the construction period as specified in the Construction Contract.
21. All labor is to be done in a skillful and thorough manner. All material to be of the dimension, design and grade as specified.
22. Unless specified otherwise, any patented materials specified by trade name are to be applied or installed strictly according to manufacturer's specifications.
23. Contractor shall be responsible for any subcontractors hired to do any part of this contract.
24. Contractor will be allowed one extension on each job, providing said extension is justifiable and requested by Contractor in writing.
25. Any telephone wiring, cables for internet, surveillance equipment, etc., removed or damaged by Contractor or Subcontractor shall be replaced or reinstalled at Contractor's expense.
26. Property items that do not call for removal on the specifications shall be reinstalled or replaced by Contractor before final inspection.
27. Contractor shall request final inspection only when the job is 100% complete.
28. Final inspection shall include among other requirements, trash removal from premises.
29. Plumbing and electrical work will need to be inspected and approved by the City of Palm Springs Building Department before final payment can be made to General Contractor.
30. When job is 100% complete, the Contractor shall submit a General Contractor's notarized sworn affidavit that all material suppliers and subcontractors have been fully paid, and liens against the property have been released.
31. Contractor shall submit all pay requests in writing, no less than five (5) working days before payment being issued.
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18 32. Drawdown requests for contractor payments will not be processed until all documents for payment have been signed by Homeowner, Contractor and Housing and Community Development Staff.
33. Payments to General Contractor for Rehabilitation work will be made out according to completion percentage as specified below:
Draw 1 - 30% completion payment less 10%
Draw 2 - 30% at 60% completion less 10%
Draw 3 - 30% at 100% completion less 10%
Final Draw - 10% after completion of all punch list items.
Section 22 - GUARANTEES & WARRANTIES
1. Contractor shall guarantee all work detailed in the specifications from date of final acceptance by Homeowner(s) and the Housing and Community Development Department.
2. Contractor must respond to life, health, and safety defects within 24 hours.
3. Contractor shall give Homeowner(s) and the Housing and Community Development Department a copy of all manufacturer’s and suppliers written warranties covering material and equipment furnished under the contract from Contractor.
4. Contractor shall present Homeowner(s) and the Housing and Community Development Department, at a minimum, written copies of manufacturer warranties as follows:
a. Shingle Roofing -- Copy of manufacturer’s warranty (Min 25 year) b. Water Heater
c. Air Conditioning/Heating equipment
5. Guarantee periods (beside manufacturers warranties) are as follows:
1 year: for any newly installed sheetrock, framing, insulation, exterior siding and trim, roofing, flooring, foundation (leveling) exterior and interior doors and windows.
2 years: New electrical wiring, plumbing lines and central air conditioning and heating.
Section 23 – REHABILITATION DEFICIENCIES
1. Deficiencies during the 1-to-2-year warranty period must be corrected within ten (10) working days from Contractor being notified by the Homeowner(s) or in some cases from the City of Palm Springs Housing and Community Development Department on behalf of Homeowner, unless a danger exists to Homeowner. In this case repairs shall be done immediately upon notice.
2. If Contractor fails to repair said items after verbal notice, Contractor will be notified via certified mail to correct items within 10 days upon receipt of said notice. However, if a danger exists, repairs shall be done immediately upon notice.
3. If Contractor fails to repair said warranty items within the ten (10) day period in the certified notice, the Homeowner has the option of requesting in writing that the City hire another Contractor to make repairs.
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19 4. If a Contractor fails to honor any work covered during the warranty he shall be deemed ineligible for any future program participation.
5. With respect to all work performed under this contract, the Contractor shall:
a. Comply with the safety standard provisions of applicable laws, building and construction code and the "Manual of Accident prevention in Construction" published by the Associated General Contractors of America," the requirements of the Occupational Safety and Health Act of 1970, (Public law 91-956), and the requirements of Title 29 of the Code of Federal Regulations Sec. l5l8, as published in the Federal Register Vol. 36, #75, Saturday, April 17, 1971. b. Exercise every precaution at all times for the prevention of accidents and the protection of persons (including employees), and property. c. Maintain at his/her office or other well-known place at the job site, all articles necessary to give first aid to the injured, and shall make standing arrangements for the immediate removal to a hospital or a doctors care of persons (including employees who may be injured on the job site.)
d. In no case shall employees be allowed to work at a job site before the employer has arranged for removal of the injured person(s) to a hospital or doctor's care.
Section 24 - SUB-CONTRACTORS
The General Contractors are specifically advised that any person, firm or party to whom it is proposed to award a subcontract under this contract must:
1. Be acceptable to both the Homeowner(s) and the Housing and Community Department.
2. Approval of the proposed contract award cannot be given by the Housing and Community Development Department unless and until the proposed subcontractor has submitted the required documentation stipulated in the bid documents and/or other evidence showing that they have fully complied with any requirements to which they are subject to.
3. Although the bidder is not required to attach such certifications by proposed contractors to his bid, the bidder is hereby advised of this requirement so that appropriate action can be taken to prevent subsequent delay.
4. Electrician, mechanical, and plumbing subcontractors will obtain permits from the Building Inspection office. General Contractors will not be allowed to pick up permits for Plumbers or Electricians.
Section 25 - GRIEVANCE POLICY
1. Any person who has applied for participation and/or received assistance under the Housing Rehabilitation Program may register any complaints in writing with the Housing and Community Development Department.
2. The Housing and Community Development Director shall have thirty (30) days to respond to said complaint.
3. If Housing and Community Development Director’s response is unsatisfactory, Complainant may then request in writing a review of the matter by the Deputy City Manager.
4. The Deputy City Manager shall review complaint as registered in writing. Review will contain:
B – Page 277 of 381
20 a. Initial written complaint submitted to the Housing and Community Development Director
b. Response from the Housing and Community Development Director. c. Complainants request for review by the Deputy City Manager. d. Any information provided by Complainant or Housing Rehabilitation Staff directly related to the written complaint.
5. The Deputy City Manager, upon reviewing all related information to complaint, shall make the final decision on the complaint.
6. The decision shall be provided in writing to Housing and Community Development Director and Complainant within fifteen (15) days.
7. The Deputy City Manager shall act in an advisory capacity to correct the issue being reviewed.
8. If Complainant is dissatisfied with the decision of the Deputy City Manager, Complainant may then write to the U.S. Department of Housing and Urban Development (the funding agency for the Community Development Block Grant Program).
Section 26 - CONTRACT PROVISIONS
1. The City of Palm Springs may make such investigations as deemed necessary to determine the ability of the Contractor to perform the rehabilitation work and the Contractor will furnish to the City all such information and dates for the purpose as the City may request.
2. The City reserves the right to reject any bid if the evidence submitted by or investigation of such Contractor fails to satisfy the City that such Contractor is properly qualified to carry out the obligations of the contract and to complete the work contemplated therein.
3. Failure to comply with all provisions of the Program Guidelines, the Housing Rehabilitation Contract, City of Palm Springs' Contractors Performance Manual and all applicable City Codes' and Ordinances will constitute grounds for corrective action by the City and may disqualify Contractors participation in the Housing Rehabilitation Program.
Section 27 – DOCUMENT MAINTENANCE
These guidelines/policies will undergo the normal periodic process of revisions, corrections, and additions to ensure compliance with federal regulations and the intent of the program. Any changes due to statutory or regulatory requirements or changes to existing policies approved by the City Council to incorporate changes made to existing policies codified in the Code of Federal Regulations are also considered as non-significant and can be approved at the staff level.
Approved this 22 day of April, 2026 Deleted: 3
Deleted: 5
B – Page 278 of 381
21 Affidavit, 11, 14, 22
appeal, 20
Authorization, 6, 22
Bid
proposal, 10, 22
bid proposal, 10
bidder, 10, 13, 14, 15, 19
bidders, 13, 15
cancel, 12
Change orders, 11
Code, 4, 11, 12, 18
contract, 5, 11, 14, 15, 16, 17, 18, 19, 20
Contract, 11, 15, 17, 20
death, 16
demolished, 9
Disabled, 5
electrical, 11, 17
Electricians, 16
Eligibility, 6, 22
eligible, 4, 5, 6, 10
emergency, 8
Emergency
emergency, 8, 9, 10
flood plain, 6
floor plans, 11, 13, 15, 16
grant, 5, 8
Grievance, 4, 19, 20
guarantee, 18
Head of Household, 5
Elderly, 5
Non Elderly, 5
Income, 6, 7
income, 4, 5, 6, 7
income limits, 6
Income Tax, 6
inspection, 6, 8, 11, 12, 17
inspections, 15, 16
Insurance, 6, 16
Lead Base Paint, 8, 17
loan closing, 14
maximum, 8, 10, 11, 12, 13
Notice to Proceed, 13, 15
Occupants
occupants, 8, 9, 10
operating a business, 5
Ownership, 7
payment, 11, 17
Payments, 17
permits, 16, 19
Plumbers, 16
postpone, 12
pre-bid conference, 13, 15, 16
qualified contractor, 10
registration, 14
Relocation, 9
requirements, 4, 5, 7, 8, 9, 10, 12, 17, 18, 19
Social security, 6
specifications, 3, 10, 11, 12, 13, 15, 16, 17
Taxes, 6, 7, 8
Title search, 6
Total family income, 5
Utility receipts, 6
Verification, 6, 22
Verification of
Bank Deposits, 6
Employment, 6
Social Security, 6
Unemployment, 6
W-2's and 1040's, 6
waiting list, 3, 10, 12
warranty, 5, 18
Warranty Deed, 6
B – Page 279 of 381
CITY COUNCIL STAFF REPORT
DATE: April 22, 2026 PUBLIC HEARING
SUBJECT: CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE
CALIFORNIA GOVERNMENT CODE TO APPROVE A HOTEL
OPERATIONS COVENANT BY AND BETWEEN THE CITY OF PALM
SPRINGS AND 888 N. INDIAN CANYON, LLC, THE TERRA PALM
SPRINGS LOCATED AT 888 N INDIAN CANYON DRIVE (APN 507-161- 001) PURSUANT TO MUNICIPAL CODE CHAPTER 5.26 OF THE CITY'S
HOTEL OPERATIONS INCENTIVE PROGRAM
FROM: Scott C. Stiles, City Manager
BY: Economic Development
SUMMARY:
This item satisfies the requirements of California Government Code Section 53083 and requests City Council approval of an economic development subsidy in the form of a Hotel Operations Covenant Agreement (“Covenant”) with 888 North Indian Canyon, LLC, (“Operator”) (Attachment A), in support of a completed hotel renovation project of The Terra Palm Springs at 888 N Indian Canyon Drive (507-161-001 APN) (“Property”).
RECOMMENDATION:
1. Open the public hearing and receive public testimony.
2. Approve a Hotel Operations Covenant Agreement with Terra Palm Springs Hotel located at 888 N Indian Canyon Dr., Palm Springs.
3. Authorize the City Manager and City Attorney to make non-substantive changes as needed and execute all necessary documents
BUSINESS PRINCIPAL DISCLOSURE:
The property is owned by 888 N. Indian Canyon, LLC including Carrick Young, Soli Cayetano, and Diana Ossa. A Public Integrity Disclosure form is provided herein (Attachment B).
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City Council Staff Report
April 22, 2026 -- Page 2
Hotel Operations Covenant – Terra Palm Springs Hotel
BACKGROUND:
The City of Palm Springs adopted Chapter 5.26 of the Palm Springs Municipal Code in 2007 establishing the Hotel Operations Incentive Program (“Program”) to support the operation and maintenance of hotel facilities that enhance tourism, support convention center utilization, and strengthen the local economy. The Program was subsequently amended in 2019 to re-establish eligibility for renovation hotel projects and extended in 2023 through December 31, 2028.
California Government Code Section 53083 requires that prior to approving an economic development subsidy of $100,000 or more, the City must conduct a public hearing and provide specified information regarding the subsidy.
On December 12, 2025, 888 N. Indian Canyon, LLC applied to the Program for its hotel property, The Terra Palm Springs at 888 N. Indian Canyon. The project consists of the renovation of a 12-room boutique hotel into a 13-room boutique hotel and qualifies as a renovation project under the Program terms Section 5.26.
The renovation project commenced in late 2024 and was completed in early 2025.
STAFF ANALYSIS:
The Operator has completed a qualifying renovation project with a total investment of approximately $1,049,150.24, equating to approximately $84,429 per room, exceeding the Program’s minimum requirement of $5,000 per room under Sec 5.26.
Improvements include (photos, Attachment C):
Full interior renovation of guest rooms (finishes, furnishings, fixtures, appliances) Exterior repainting and landscaping improvements
Upgraded signage and guest amenities
Pool and common area enhancements
Pursuant to the Covenant, the Operator agrees to:
Operate the property as a hotel for a term of ten (10) years Maintain the hotel in a first-class condition
Participate in the Palm Springs Convention Center Committable Rooms Program Provide up to two (2) room nights per month for City use, subject to availability
In exchange, the City agrees to provide an economic development subsidy in the form of a Transient Occupancy Tax (TOT) increment rebate, consistent with Program guidelines.
This application is being considered under Sec 5.26 of the Municipal Code because the applicant began the process prior to approval of Sec. 5.27. There is no net effect in consideration under 5.26 since the split in 5.26 is the same under Base Tier in 5.27.
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City Council Staff Report
April 22, 2026 -- Page 3
Hotel Operations Covenant – Terra Palm Springs Hotel
Photo report attached (Attachment C).
HEARING REQUIRED INFORMATION:
Consistent with the provisions of the Program, the Operator now agrees to place restrictions upon the use and operation of the hotel, to ensure that the Project shall be operated and maintained continuously as a hotel available for short-term rentals. The hotel operator also agrees to participate in the Palm Springs Convention Center's Committable Rooms Program and provide designated room-nights per month for official City use. City will share a percentage of Transient Occupancy Tax Increment with Operator pursuant to the Program guidelines.
As noted above, California Government Code Section 53083 requires a public hearing for economic development subsidies where expenditure of public funds is in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency. Accordingly, before approving such economic development subsidies, the local jurisdiction is to provide specific information in written form available to the public, and through its Internet Web site.
For the Terra Palm Springs Hotel, the information is as follows:
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, if applicable.
Operator is a single purpose entity domiciled in the State of California doing business from 888 N. Indian Canyon Drive, Palm Springs, CA 92262. The Agent for service of process to Operator is Terra Palm Springs Hotel, doing business at 888 N. Indian Canyon Drive, Palm Springs, CA 92262.
2. The start and end dates, and schedule, if applicable, for the economic development subsidy.
If approved, the Covenant would provide an economic subsidy to Operator through a term of ten (10) years, or until the Operator has received $1,049,150.24 pursuant to the Program, whichever event occurs first.
3. 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 local agency as a result of the economic development subsidy.
A. The Program provides operating assistance to hotels in the form of a rebate of adjusted transient occupancy tax ("Adjusted TOT") at a fixed level for existing hotels that meet Program criteria. The City Council has adopted the Phase II
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City Council Staff Report
April 22, 2026 -- Page 4
Hotel Operations Covenant – Terra Palm Springs Hotel
Renovation Project Program for improvement projects constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room, including this project.
B. Per the Program, the existing hotel project planned by Operator is rebated 50% of adjusted TOT for ten (10) years or until the rebate totals $1,049,150.24, whichever comes first. For purposes of the Covenant, an existing Hotel is defined as a property improvement project constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room.
The renovation project must commence no more than twelve (12) months after the City's execution of the Operation Covenant Agreement and be completed no later than December 31, 2025.
C. The public funds to be spent if the City approves this Covenant will be the staff costs of administration, and statutorily mandated reporting through the term of the Program rebate/subsidy.
4. A statement of the public purposes for the economic development subsidy.
A. The City Council established the incentive program for the operation and maintenance of quality and first-class hotel facilities which enhance the tourist and travel experience for visitors to the City of Palm Springs, 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. In the implementation of this program, the City Council determined: (1) The general welfare and material wellbeing of the residents of the City of Palm Springs depend in large measure upon the growth and expansion of the tourism and travel industries in the City; (2) The operation, maintenance, and expansion of the inventory of quality hotels and first class hotels in the City of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the City, ensure utilization of the City's convention center, provide employment opportunities for the residents of the City, and promote and enhance the economy of the City; (3) It is in the best interest of the City of Palm Springs to induce and encourage the operation and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the City's general fund which supports the public services that the City provides its residents; and (4) The authority granted and the purposes to be accomplished are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of quality and first class hotels is of paramount importance to the City of Palm Springs, its residents, and businesses. (Ord. 1730 § 2, 2008)
B. No less than five thousand dollars ($5,000) per room, or if the project includes any common area or amenity, or any other area for guest use at the hotel, the amount of the investment shall not be less than the amount, if any, invested in rooms, added to the total number of rooms at the hotel that will exist at the end of the project multiplied by five thousand dollars ($5,000).
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City Council Staff Report
April 22, 2026 -- Page 5
Hotel Operations Covenant – Terra Palm Springs Hotel
C. The Project would help beautify the neighborhood through and implement energy saving and sustainable components.
5.Projected tax revenue to the local agency as a result of the economic development subsidy.
A. Per the Program, the City will receive 50% of Adjusted TOT for ten (10) years or until the rebate to the Operator totals $1,049,150.24, whichever comes first. After ten (10) years, the City will receive 100% of the TOT revenue (Adjusted TOT plus Unadjusted TOT). The Sales Tax the project may potentially generate are projected to be $999,297 over the course of the 10-year term.
6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
The Operator anticipates increasing employment by four (4) full-time positions and six (6) part-time positions, for a total of 10 FTEs. The estimated annual payroll for employees and contracted maintenance services is estimated to be $370,000.
ENVIRONMENTAL ASSESSMENT:
The extension of the Program considered at this time is not a "project" for purposes of the California Environmental Quality Act (CEQA), as that term is defined by CEQA guidelines (Guidelines) section 15378. This action is organizational or administrative activity by the City of Palm Springs in furtherance of its police power and will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines.
ALIGNMENT WITH STRATEGIC PLANNING:
Citywide Goal:
Support a vibrant economy, including tourism and hospitality sectors.
Economic Development Strategic Framework:
Principle C: Bolster Core Industries
Principle 2: Reinvigorate the Business Climate
Activation Priority IV: Economic Development Toolkit
Action Item B2.2: Implement incentive tools to support business investment and expansion
This project directly supports reinvestment in existing hospitality assets and strengthens the City’s tourism economy.
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City Council Staff Report
April 22, 2026 -- Page 6
Hotel Operations Covenant – Terra Palm Springs Hotel
FISCAL IMPACT:
The Operator’s investment of $1,049,150.24 qualifies them for incentive under 5.26:
Illustrative structure:
Baseline: $0
Increment: $X
Years 1 up to 10, City receives: $0 + (X / 2)
Operator receives: X / 2
Beyond maximum payment: City receive 100% of TOT
The total subsidy shall not exceed $1,049,150.24 for not greater than ten (10) years, whichever occurs first.
Following the incentive period, the City will receive 100% of all TOT revenues, including both baseline and incremental amounts.
REVIEWED BY:
Department Director: Wayne Olson
Finance Director: Kristopher J. Mooney
City Manager: Scott Stiles
ATTACHMENTS:
A. Hotel Operations Covenant Agreement
B. Public Integrity Disclosure Form
C. Photo Report
C – Page 285 of 381
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 , 2026, by and between the CITY OF PALM SPRINGS, a municipal corporation and charter city ("City"), and 888 N Indian Canyon, 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 December 12, 2025, Owner applied for the Program and has provided satisfactory documentation certifying its renovation project as a qualified renovation program under the Program. T e r r a P a l m S p r i n g s ("Owner's Hotel" or "Project"), generally located at 888 N Indian Canyon Drive, Palm Springs, California, consists of thirteen (13) 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 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 agree to operate the Project as a hotel; participate in the Palm Springs Convention Center's
C – Page 286 of 381
2 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 Terra Palm Springs Resort 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 $0.00, 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,
C – Page 288 of 381
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 above- mentioned 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 sublease hold 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.
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
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6 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.
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
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7 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. ATTORNEY’S' 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: 888 N. Indian Canyon, LLC
16203 Highland Drive
San Jose, CA 95127
Attn: C a r r i c k Y o u n g
The notice shall be deemed given three (3) business days after the date of mailing, or, if personally delivered, when received.
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
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8 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.)
7.10 DEFAULT BY CITY. If at any time during the Term, Owner contends that City has committed a material default with respect to 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
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9 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.
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
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10 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]
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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
"Terra Palm Springs
By:
Name:
Title:
By:
Name:
Title:
[END OF SIGNATURES]
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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.
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EXHIBIT “A”
LEGAL DESCRIPTION
OPERATIONS COVENANT
FOR HOTEL INCENTIVE PROGRAM
1 C – Page 298 of 381
CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTION FOR APPLICANTS)
(Revised 09 13 18)
CITY OF PALM SPRINGS
PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTIONS FOR APPLICANTS)
Who Must File?
Applicants that are NOT a natural person or group of natural people that will be identified on the application, and seek a City approval determined by a vote of City officials . Examples include corporations, limited liability companies, trusts, etc. that seek a City Council approval, or an approval by one of the City’s board or commissions.
Why Must I File?
The City of Palm Springs Public Integrity Ordinance advances transparency in municipal government and assists public officials in avoiding conflicts of int erest. The City ’s Public Integrity Ordinance, codified in Chapter 2.60 of the municipal code, reflects the City’s interest in ensuring that companies (and other legal entities that are not natural people) doing business in the community are transparent and make disclosure as to their ownership and management, and further that those companies disclose the identity of any person , with an ownership interest worth two thousand dollars ($2,000) or more, who has a material financial relationship with any elected or appointed voting City official, or with the City Manager or City Attorney.
Note: A material financial relationship is a relationship between someone who is an owner/investor in the applic ant entity and a voting official (or the City Manager or City Attorney), which relationship includes any of the following:
(1) the owner/investor and the official have done business together during the year prior to the application;
(2) the official has earned income from the owner/investor during the year prior to the filing of the application;
(3) the owner/investor has given the official gifts worth fifty dollars ($50) or more during the year prior to the filing of the application; or
(4) the official might reasonably be anticipated to gain or lose money or a thing of value, based upon the owner/investor’s interest in the applicant entity, in relation to the application’s outcome.
When Must I File?
You must file this form with the Office of the City Clerk at the same time when you file your application for a City approval determined by a vote of City officials, whether elected or appointed.
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CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTION FOR APPLICANTS)
(Revised 09 13 18)
What Must I Disclose?
A. The names of all natural persons who are officers, directors, members, managers, trustees, and other fiduciaries serving trusts or other types of organizations (attorneys, accountants, etc.).
Note: (1) only trusts or other organizations that are not the fiduciaries, (2) if a second entity that is not a natural person serves the applicant entity (e.g., as a member of an applicant LLC), then all officers, directors, members, managers, trustees, etc., of the second entity must be disclosed).
B. The names of persons owning an interest with a value of two thousand dollars ($2,000) or more who have a material financial relationship with an elected or appointed City official who will vote on the applicant’s application, or with the City Manager or City Attorney.
PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.
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CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
(Revised 09 13 18)
PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
1. Name of Entity
2. Address of Entity (Principle Place of Business)
3. Local or California Address (if different than #2)
4. State where Entity is Registered with Secretary of State
If other than California, is the Entity also registered in California? Yes No
5. Type of Entity
Corporation Limited Liability Company Partnership Trust Other (please specify)
6. Officers, Directors, Members, Managers , Trustees, Other Fiduc iaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity
_________________________________________________ Officer Director Member Manager [name]
General Partner Limited Partner
Other ____________________________________
_________________________________________________ Officer Director Member Manager [name]
General Partner Limited Partner
Other ____________________________________
_________________________________________________ Officer Director Member Manager [name]
General Partner Limited Partner
Other ____________________________________
888 N Indian Canyon LLC
888 N Indian Canyon Rd., Palm Springs, CA 92262
California
Carrick Young
Soli Cayetano
Diana Ossa
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CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
(Revised 09 13 18)
7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity
EXAMPLE
JANE DOE
[name of owner/investor]
50%, ABC COMPANY, Inc.
[percentage of beneficial interest in entity
and name of entity]
A.
[name of owner/investor]
[percentage of beneficial interest in
entity
and name of entity]
B.
[name of owner/investor]
[percentage of beneficial interest in
entity
and name of entity]
C.
[name of owner/investor]
[percentage of beneficial interest in
entity
and name of entity]
D.
[name of owner/investor]
[percentage of beneficial interest in
entity
and name of entity]
E.
[name of owner/investor]
[percentage of beneficial interest in entity
and name of entity]
I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signature of Disclosing Party, Printed Name, Title
Date
January 13, 2026
Carrick Young
General Partner
Carrick Young
Soli Cayetano
Josh Dobken
Diana Ossa
5% - 888 N Indian Canyon LLC
5% - 888 N Indian Canyon LLC
5% - 888 N Indian Canyon LLC
5% - 888 N Indian Canyon LLC
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ATTACHMENT C
PHOTO REPORT
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Terra Palm Springs
Before Photos
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.....
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Terra Palm Springs
After Photos
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The Cactai Hotel
Before Photos
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The Cactai Hotel
After Photos
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I
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CITY COUNCIL STAFF REPORT
DATE: April 22, 2026 PUBLIC HEARING
SUBJECT: CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE
CALIFORNIA GOVERNMENT CODE TO APPROVE A HOTEL
OPERATIONS COVENANT BETWEEN THE CITY OF PALM SPRINGS
AND 312 MONTE VISTA, LLC, DBA THE CACTAI PALM SPRINGS,
PURSUANT TO PALM SPRINGS MUNICIPAL CODE CHAPTER 5.26
(HOTEL OPERATIONS INCENTIVE PROGRAM) AND LOCATED AT 312 CAMINO MONTE VISTA (APN 507-030-008)
FROM: Scott C. Stiles, City Manager
BY: Economic Development
SUMMARY:
This item satisfies the requirements of California Government Code Section 53083 and requests City Council approval of an economic development subsidy in the form of a Hotel Operations Covenant Agreement (“Covenant”) with 312 Monte Vista, LLC, dba The Cactai Palm Springs (“Operator”) (Attachment A), in support of a completed hotel renovation project located at 312 E Camino Monte Vista, Palm Springs (APN 507-030- 008) (“Property”).
RECOMMENDATION:
1. Open the public hearing and receive public testimony.
2. Approve a Hotel Operations Covenant Agreement with 312 Monte Vista, LLC, dba The Cactai Palm Springs.
3. Authorize the City Manager or designee to make non-substantive changes and execute all necessary documents related to the subsidy.
BUSINESS PRINCIPAL DISCLOSURE:
The property is owned by 312 Monte Vista, LLC, a California limited liability company. A Public Integrity Disclosure Form (Attachment B) has been submitted identifying the ownership structure, including Joel Milne, Joey Milne, Brendan Gawlik, and Stanton Properties LLC and its members.
D – Page 336 of 381
City Council Staff Report
April 22, 2026 -- Page 2
Hotel Operations Covenant – The Cactai Palm Springs
BACKGROUND:
The City of Palm Springs adopted Chapter 5.26 of the Palm Springs Municipal Code in 2007 establishing the Hotel Operations Incentive Program (“Program”) to support the operation and maintenance of hotel facilities that enhance tourism, support convention center utilization, and strengthen the local economy. The Program was subsequently amended in 2019 to re-establish eligibility for renovation hotel projects and extended in 2023 through December 31, 2028.
California Government Code Section 53083 requires that prior to approving an economic development subsidy of $100,000 or more, the City must conduct a public hearing and provide specified information regarding the subsidy.
On January 20, 2025, 312 Monte Vista, LLC applied to the Program for its hotel property, The Cactai Palm Springs, located at 312 E Camino Monte Vista. The project consists of a ten (10)-room boutique hotel and qualifies as a renovation project under the Program.
The renovation project commenced in May 2023 and was completed in October 2024.
STAFF ANALYSIS:
The Operator has completed a qualifying renovation project with a total investment of approximately $538,804.26, equating to approximately $53,880 per room, exceeding the Program’s minimum requirement of $5,000 per room under Sec 5.26.
Improvements include (photos, Attachment C):
Full interior renovation of guest rooms (finishes, furnishings, fixtures, appliances) Exterior repainting and landscaping improvements
Upgraded signage and guest amenities
Pool and common area enhancements
Pursuant to the Covenant, the Operator agrees to:
Operate the property as a hotel for a term of ten (10) years Maintain the hotel in a first-class condition
Participate in the Palm Springs Convention Center Committable Rooms Program Provide up to two (2) room nights per month for City use, subject to availability In exchange, the City agrees to provide an economic development subsidy in the form of a Transient Occupancy Tax (TOT) increment rebate, consistent with Program guidelines.
This application is being considered under Sec 5.26 of the Municipal Code because the applicant began the process prior to approval of Sec. 5.27. There is no net effect in consideration under 5.26 since the split in 5.26 is the same under Base Tier in 5.27.
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City Council Staff Report
April 22, 2026 -- Page 3
Hotel Operations Covenant – The Cactai Palm Springs
GOVERNMENT CODE SECTION 53083 DISCLOSURES:
Consistent with the provisions of the Program, the Operator now agrees to place restrictions upon the use and operation of the hotel, to ensure that the Project shall be operated and maintained continuously as a hotel available for short-term rentals. The hotel operator also agrees to participate in the Palm Springs Convention Center's Committable Rooms Program and provide designated room-nights per month for official City use. City will share a percentage of Transient Occupancy Tax Increment with Operator pursuant to the Program guidelines.
As noted above, California Government Code Section 53083 requires a public hearing for economic development subsidies where expenditure of public funds is in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency. Accordingly, before approving such economic development subsidies, the local jurisdiction is to provide specific information in written form available to the public, and through its Internet Web site.
For the Cactai Palm Springs, the information is as follows:
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, if applicable.
Operator is a single purpose entity domiciled in the State of California doing business from 312 E Camino Monte Vista, Palm Springs, CA 92262. The Agent for service of process to Operator is The Cactai Hotel, doing business at 312 E Camino Monte Vista, Palm Springs, CA 92262.
2. The start and end dates, and schedule, if applicable, for the economic development subsidy.
If approved, the Covenant would provide an economic subsidy to Operator through a term of ten (10) years, or until the Operator has received $538,804.26 pursuant to the Program, whichever event occurs first.
3. 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 local agency as a result of the economic development subsidy.
A. The Program provides operating assistance to hotels in the form of a rebate of adjusted transient occupancy tax (“Adjusted TOT”) at a fixed level for existing hotels that meet Program criteria. The City Council has adopted the Phase II Renovation Project Program for improvement projects constructed by an
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City Council Staff Report
April 22, 2026 -- Page 4
Hotel Operations Covenant – The Cactai Palm Springs
existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room, including this project.
B. Per the Program, the existing hotel project planned by Operator is rebated 50% of adjusted TOT for ten (10) years or until the rebate totals $538,804.26, whichever comes first. For purposes of the Covenant, an existing Hotel is defined as a property improvement project constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room.
The renovation project must commence no more than twelve (12) months after the City’s execution of the Operation Covenant Agreement and be completed no later than December 31, 2025.
C. The public funds to be spent if the City approves this Covenant will be the staff costs of administration, and statutorily mandated reporting through the term of the Program rebate/subsidy.
4. A statement of the public purposes for the economic development subsidy.
A. The City Council established an incentive program for the operation and maintenance of quality and first-class hotel facilities which enhance the tourist and travel experience for visitors to the City of Palm Springs, 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. In the implementation of this program, the City Council determined: (1) The general welfare and material wellbeing of the residents of the City of Palm Springs depend in large measure upon the growth and expansion of the tourism and travel industries in the City; (2) The operation, maintenance, and expansion of the inventory of quality hotels and first class hotels in the City of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the City, ensure utilization of the City’s convention center, provide employment opportunities for the residents of the City, and promote and enhance the economy of the City; (3) It is in the best interest of the City of Palm Springs to induce and encourage the operation and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the City’s general fund which supports the public services that the City provides its residents; and (4) The authority granted and the purposes to be accomplished are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of quality and first class hotels is of paramount importance to the City of Palm Springs, its residents, and businesses. (Ord. 1730 § 2, 2008)
B. No less than five thousand dollars ($5,000) per room, or if the project includes any common area or amenity, or any other area for guest use at the hotel, the amount of the investment shall not be less than the amount, if any, invested in rooms, added to the total number of rooms at the hotel that will exist at the end of the project multiplied by five thousand dollars ($5,000).
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City Council Staff Report
April 22, 2026 -- Page 5
Hotel Operations Covenant – The Cactai Palm Springs
C. The Project would help beautify the neighborhood through and implement energy saving and sustainable components.
5. Projected tax revenue to the local agency as a result of the economic development subsidy.
A. Per the Program, the City will receive 50% of Adjusted TOT for ten (10) years or until the rebate to the Operator totals $538,804.26, whichever comes first.
After ten (10) years the City will receive 100% of the TOT revenue (Adjusted TOT plus Unadjusted TOT). Sales tax from the project is projected to be $768,690 over the 10-year term.
6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
The Operator anticipates increasing employment by one (1) full-time position and four (4) part-time positions, for a total of 3 FTEs. The estimated annual payroll for employees and contracted maintenance services is estimated to be $200,000.
ENVIRONMENTAL ASSESSMENT:
This action is not a “project” under the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(5), as it represents administrative activity that will not result in a direct or indirect physical change in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Citywide Goal:
Support a vibrant economy, including tourism and hospitality sectors.
Economic Development Strategic Framework:
Principle C: Bolster Core Industries
Principle 2: Reinvigorate the Business Climate
Activation Priority IV: Economic Development Toolkit
Action Item B2.2: Implement incentive tools to support business investment and expansion
This project directly supports reinvestment in existing hospitality assets and strengthens the City’s tourism economy.
FISCAL IMPACT:
The Operator’s investment of $538,804.26 qualifies them for incentive under 5.26:
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City Council Staff Report
April 22, 2026 -- Page 6
Hotel Operations Covenant – The Cactai Palm Springs
Illustrative structure:
Baseline: $9,804.45
Increment: $X
Years 1 up to 10, City receives: $9,804.45 + (X / 2)
Operator receives: X / 2
Beyond maximum payment: City receive 100% of TOT
The total subsidy shall not exceed $538,804.26 for not greater than ten (10) years, whichever occurs first.
Following the incentive period, the City will receive 100% of all TOT revenues, including both baseline and incremental amounts.
REVIEWED BY:
Department Director: Wayne Olson
Finance Director: Kristopher J. Mooney
City Manager: Scott Stiles
ATTACHMENTS:
A. Covenant Agreement
B. Business Disclosure Form
C. Photos of Project
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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 , 2026, by and between the CITY OF PALM SPRINGS, a municipal corporation and charter city ("City"), and The Cactai Palm Springs, 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 January 20, 2025, Owner applied for the Program and has provided satisfactory documentation certifying its renovation project as a qualified renovation program under the Program. 312 MONTE VISTA, LLC ("Owner's Hotel" or "Project"), generally located at 312 E Camino Monte Vista, 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 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 agree to operate the Project as a hotel; participate in the Palm Springs Convention Center's
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2 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 Cactai Palm Springs 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 $9,804.45, 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 above- mentioned 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 sublease hold 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.
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
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6 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.
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
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7 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. ATTORNEY’S' 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: The Cactai Palm Springs
312 E Camino Monte
Vista
Palm Springs, CA 92262
Attn: Brendan Gawlik
The notice shall be deemed given three (3) business days after the date of mailing, or, if personally delivered, when received.
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
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8 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.)
7.10 DEFAULT BY CITY. If at any time during the Term, Owner contends that City has committed a material default with respect to 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
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9 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.
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
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10 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]
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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" The Cactai Palm Springs
By:
Name:
Title:
By:
Name:
Title:
[END OF SIGNATURES]
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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.
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EXHIBIT “A”
LEGAL DESCRIPTION
OPERATIONS COVENANT
FOR HOTEL INCENTIVE PROGRAM
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CITY COUNCIL STAFF REPORT
DATE: April 22, 2026 BUSINESS & LEGISLATIVE
SUBJECT: DISCUSSION OF CITY MAYORAL POSITION AND REPORT FROM AD
HOC SUBCOMMITTEE
FROM: Scott C. Stiles, City Manager
BY: Brenda Pree, City Clerk
SUMMARY:
This report provides an opportunity for the City Council Mayoral Position Ad Hoc Subcommittee (Garner/deHarte) to provide an update on ongoing discussions regarding the City’s mayoral position.
RECOMMENDATION:
Receive and file this report and provide direction to Staff as appropriate.
BACKGROUND:
At the City Council meeting of April 8, 2026, the City Council created an ad hoc subcommittee to further discussions regarding the City’s mayoral position, and appointed Councilmember Garner and Councilmember deHarte as subcommittee members.
STAFF ANALYSIS:
Staff has consolidated California Voting Rights Act (CVRA) records within the City’s document repository ( Laserfiche) and established a dedicated webpage to enhance public access to historical materials related to the subject matter. This aims to facilitate efficient searches and promote transparency.
ALIGNMENT WITH STRATEGIC PLANNING
This item aligns with the City Council’s Strategic Plan Foundation to advance fiscal sustainability and organizational resilience.
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City Council Staff Report
April 22, 2026 -- Page 2
Discussion of City Mayoral Position
FISCAL IMPACT:
None at this time.
REVIEWED BY:
Department Director: Brenda Pree
City Manager: Scott Stiles
ATTACHMENTS:
A. California Voting Rights Act (CVRA) Document Central Link: California Voting Rights Act (CVRA) and City Webpage
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ATTACHMENT A
California Voting Rights Act (CVRA)
Document Central Link: California Voting Rights
Act (CVRA) & City Webpage
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*These time frames are for internal agenda management purposes only. It should not be relied on by any third party for purposes of establishing when an agenda item may actually be heard.
TENTATIVE UPCOMING MEETING SCHEDULE
Updated Wednesday, April 15, 2026
May 12 – Regular Meeting
• Emergency Operations Update – Presentation (10 minutes) • Navigation Center Update – Presentation (10 minutes)
• Hotel Incentive Agreement, Alcazar Palm Springs – Public Hearing (10 minutes) • Report of Employee Vacancies (AB 2561) – Public Hearing (10 minutes) • TID Public Meeting (No Council Action) – Business & Legislative (30 minutes) • Vacation Rental Ordinance Update – Business & Legislative (30 minutes) • HRC Ordinance Update – Business & Legislative (15 minutes) • Discussion of Tribal Warehouse Project – Business & Legislative (30 minutes) • Report on Mayoral Position – Business & Legislative (10 minutes)
May 27 – Regular Meeting
• Caravanserai Program Update – Presentation (10 minutes) • Delinquent Waste Disposal Charges – Public Hearing (15 minutes) • TID Formation and Levy of Assessments – Public Hearing (15 minutes) • Q3 Financial Update – Business & Legislative (30 minutes) • Convention Center Food/Beverage Contract – Business & Legislative (30 minutes) • Report on Mayoral Position – Business & Legislative (10 minutes)
June 3 – Special Joint Meeting with Tribe (Warehouse Project)
June 10 – Regular Meeting
• Pierce’s Pledge Program – Presentation (10 minutes)
• Authorization to Bond, Convention Center Project – Business & Legislative (30 minutes) • SB 707 Teleconferencing Policy – Business & Legislative (30 minutes) • Report on Mayoral Position – Business & Legislative (10 minutes)
June 24 – Regular Meeting
• FY 2026-27 Continuation Budget Adoption – Public Hearing (60 minutes) • Annual Street Lighting/Parkway Maintenance Districts – Public Hearing (15 minutes) • Report on Mayoral Position – Business & Legislative (10 minutes)
July 8 – Regular Meeting
• Traffic Signal Synchronization Update from CVAG – Presentation (15 minutes) • Report on Mayoral Position – Business & Legislative (10 minutes)
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