ATTACHMENT A
Resolution
RESOLUTION NO. ____________
A RESOLUTION OF THE CITY COUNCIL (COUNCIL) OF THE CITY OF
PALM SPRINGS (CITY) DECLARING RESULTS OF MAJORITY
PROTEST PROCEEDINGS AND ESTABLISH ING THE PALM SPRINGS
TOURISM INFRASTRUCTURE DISTRICT (PSTID)
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq. (94 Law), authorizes the City of Palm Springs (City) to establish business improvement districts upon petition by a weighted majority of the business owners located within the boundaries of the district; and
WHEREAS, on February 11, 2026, the Council adopted Ordinance No. 2124 (Ordinance), adding Chapter 3.29 to the Palm Springs Municipal Code, which establishes the “City of Palm Springs Tourism Improvement District Law” and authorizes the Council to enact provisions different than, supplemental to, or in addition to the 94 Law, including the authority to pledge assessment revenues to bonds and other obligations for a term not to exceed forty (40) years; and
WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the PSTID have petitioned the City Council (Council) to establish the PSTID; and
WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on lodging businesses, existing and in the future, within the PSTID to pay for capital improvements and debt service programs, specifically the construction of an expansion and modernization of the Palm Springs Convention Center and marketing activities (if funds allow), and other improvements and activities set forth in the Plan; and
WHEREAS, the assessed lodging businesses within the PSTID will receive a specific benefit from the activities and improvements set forth in the Plan; and
WHEREAS, on April 8, 2026 at 5:30 PM at the Council Chambers located at 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262, the Council adopted a Resolution of Intention, Resolution No. 25389; and
WHEREAS, the public meeting and public hearing to consider the establishment of the PSTID have been properly noticed in accordance with Streets and Highways Code §36623; and
WHEREAS, on May 12, 2026 at 5:30 PM at the Council Chambers located at 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262, the Council held a public meeting regarding the establishment of the PSTID, and the Council heard and received objections Resolution No. ____
2 and protests, if any, to the establishment of the PSTID and the levy of the proposed assessment; and
WHEREAS, on May 27, 2026 at 5:30 PM at the Council Chambers located at 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262, the Council held a public hearing regarding the establishment of the PSTID, and the City Council heard and received all objections and protests, if any, to the establishment of the PSTID and the levy of the proposed assessment; and
WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the proposed PSTID which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and
WHEREAS, the City bears the burden of proving by a preponderance of the evidence that an assessment imposed for a specific benefit or specific government service is not a tax, that the amount is no more than necessary t o cover the costs to the City in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the specific benefits or specific government services received by the payor.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:
1. The recitals set forth herein are adopted by the City Council as findings and they are true and correct.
2. The PSTID is hereby established for a term equal to the number of years necessary to pay off the bonds, which is expected to occur thirty (30) years after the effective date of the assessment, but in no event will occur beyond forty (40) years from the date of issuance of the first series of bonds, beginning July 1, 2026, or as soon as possible thereafter. The PSTID may be renewed pursuant to Streets and Highways Code § 36660.
3. The Plan dated January 26, 2026 is hereby adopted and approved.
4. The activities to be provided to benefit businesses in the PSTID will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the PSTID ; to provide activities or improvements outside the PSTID ; or for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, the Ordinance, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the PSTID boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the PSTID.
Resolution No. ____
3 5. The Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the PSTID that is not provided to those not paying the assessment.
b) The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.
c) The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.
d) Assessments imposed pursuant to the PSTID are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. If the owner chooses to collect any portion of the assessment from a transient, that portion shall be specifically called out and identified for the transient in any and all communications from the business owner as the “PSTID Assessment” or “Tourism Assessments” as specified in the Plan.
6. Bonds, notes, loans, interim certificates, debentures, installment purchase agreement and other evidences of indebtedness of the PSTID may be issued to finance the cost to construct an expansion and modernization of the Palm Springs Convention Center, in a n amount and for the term described in the Plan. Assessments to pay the principal and interest on any bond or other evdence of indebtedness shall not be reduced or terminated if doing so would interfere with the timely repayment of the debt.
7. The assessments levied for the PSTID shall be applied towards capital improvements and debt service programs , specifically the construction of an expansion and modernization of the Palm Springs Convention Center, and marketing activities (if funds allow), to drive visitation to Palm Springs lodging businesses and increase demand for room night sales, and other improvements and activities as set forth in the Plan.
8. Assessments levied on lodging businesses pursuant to this resolution shall be levied on the basis of benefit. Because the services provided are intended to increase demand for visitation and room night sales , an assessment based on gross short -term sleeping room rental revenue is the best measure of benefit.
9. The annual assessment rate is one percent (1%) of gross short -term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than twenty -eight (28) consecutive days; any person as to whom or any occupa ncy as to which it is beyond the power of the City to impose the Resolution No. ____
4 assessment herein provided; any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays pursuant to contracts executed prior to July 1, 2026.
10. The assessments for the entire PSTID will total approximately $4,100,000 in year one (1).
11. The PSTID shall include all lodging businesses available for public occupancy, existing and in the future, located within the boundaries of the City. A boundary map is attached hereto and incorporated herein by reference.
12. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which the PSTID assessment is levied as long as they are used consistent with the requirements set forth herein.
13. The assessments to fund the activities and improvements for the PSTID will be collected by the City on a monthly basis, and in accordance with Streets and Highways Code §36631.
14. The Council, through adoption of this Resolution and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the PSTID as defined in Streets and Highways Code §36612. The Council has determined that PS Resorts shall be the PSTID Owners’ Association.
15. PS Resorts, pursuant to Streets and Highways Code §36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities described in the report. The first report shall be due after the first year of operation of the PSTID.
16. The PSTID established pursuant to this Resolution will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.).
17. The City Clerk , or his or her designee, is directed to take all necessary actions to complete the establishment of the PSTID and to levy the assessments.
18. This Resolution shall take effect immediately upon its adoption by the Council.
ADOPTED THIS 27th DAY OF MAY, 2026.
____________________________
Resolution No. ____
5 Scott Stiles, City Manager
ATTEST:
Brenda Pree, MMC, CERA
City Clerk
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 the 27th day of May, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of May, 2026.
Brenda Pree, MMC, CERA
City Clerk
Boundary Map
Resolution No. ____
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