ATT
ACHMENT D
PowerPoint of May 12, 2026
Public Meeting
May 12 Council Presentation
Background
Formation & Strategy
PS Resorts hired Civitas in April 2025 and established a volunteer Working Group representing all lodging sectors.
Primary Objective: Ensure Palm Springs remains a top-tier global destination by increasing demand for room night sales through investing in Convention Center and pedestrian improvements.
Working Group Discussion Topics:
● TOT vs TID
● Overall Competitiveness
● Benefits to Lodging Sector
TOT vs. TID
TOT (General Tax)
Resident Approved
● TOT is a general tax, approved by residents.
● Contributes to the City's General Fund.
● Funds various municipal services.
TID (Targeted Investment)
Industry Controlled & Accountable
● Enhanced accountability and industry control.
● Business-led assessment for tourism purposes,
benefiting contributors.
● Guarantees reinvestment in tourism
infrastructure.
● Boosts visitation, leading to higher occupancy
and rates.
Overall Competitiveness
Even with the proposed TID, Palm Springs remains in the range of competitive convention cities.
Competitive Benchmark (TOT/TID Rates)
Seattle: 18%
Anaheim: 17%
Long Beach: 16%
Portland: 16% + $4/night
Sacramento: 14.15% - 16.65%
Palm Springs: 13.5% - 17.5%*
*Includes proposed PSTID.
TOT + TID Pass-Through
Category TOT (%)
Existing TOT
TBID (%)
VGPS
Initial Total (%) + Additional 1%
Proposed New TID
Final Total (%)
Group Meeting
Hotels
-Min 125 rooms
-Meeting space
-Group meeting
manager
13.5% 3.0% 16.5% +1% 17.5%
Hotels 11.5% 1.0% -
3.0%
12.5% - 14.5% +1% 13.5% - 15.5%
STR 11.5% 1.0% 12.5% +1% 13.5%
TOT + TID Pass-Through
TOT + TID Pass-ThroughBenefits to Lodging Sector
• A stronger Convention Center will attract more conventions which results in more rooms booked which benefits the entire lodging ecosystem — group hotels, small hotels, and STRs alike. • Palm Springs convention demand regularly exceeds traditional hotel room block capacity (“compression factor”). PS does not have enough rooms in any sector to accomodate large scale conventions. Ex: Large scale conventions can host up to 4,500 attendees.
• Our lodging mix of large hotels, small hotels and STRs are a critical part of Palm Springs’ convention lodging inventory and competitive advantage.
• Increased demand creates higher occupancy, longer stays, more midweek demand, more year-round visitation. • Meeting planners increasingly seek flexible lodging options and authentic guest experiences and the Convention Center promotes all sectors to meeting planners.
• A do-nothing model scenario indicates that the City of Palm Springs will lose 17,500 room nights per year. With a full investment scenario in the Convention Center project, we anticipate a gain of 32,000 incremental room nights per year. *Data from Convention, Sports & Leisure International
(CSL) 2023 Futures Report
Civitas
Background
● 30+ Years of Special Assessment District
Creation
● Formation and renewal of over 200
improvement Districts
○ Including Greater Palm Springs TBID
Renewals and recent Modification
● Attorney John Lambeth a primary author of the
Property and Business Improvement District
Law of 1994
● Drafted TID/BID Legislation in 26 states
● Generated $3.6B globally for our clients
● …we are passionate about raising stable,
dependable funding for destinations!
26 STATES
43%
Fixed $ Amount
1%
Fixed-rate
based on # of
hotel rooms
224 TIDs
1%
Fixed-rate per
occupied room per
night that varies by
ADR
55%
Gross Revenue %
Most Recent US TID:
Chicago, IL
(March 2026)
TID Example: Sacramento, CA
• In 2018. used TID funds to build the
Sacramento Ballroom expansion at their
Convention Center.
• Assessment of 1% of room revenue, raises
approx. $3.7 million annually
• City bonded against the TID revenue
stream and raised approximately $52m to
construct the second ballroom.
Proposed PSTID Parameters
Boundaries
• All lodging businesses in the City of Palm Springs
Assessment Rate
• 1% of gross short-term rental revenue
Budget & Services
• Estimate $4.1M annually
• Funds to pay for debt service used to fund PSCC capital improvements • If funds allow, may be used for marketing and sales programs to drive visitation to assessed businesses
Term
• Years necessary to pay off the bonds; Expected be 30 years, but no more than 40 years
Governance
• PS Resorts will be Owners Association; TID Committee to be formed • Charged with providing Annual Reports to Council
• Implement Sales & Mrkt programs, if funds allow
Formation Timeline
Action Date
Civitas Hired for TID Formation by PS Resorts April 2025 Working Group Meetings / Outreach & Consensus Building Fall 2025 – April 2026 Management District Plan (MDP) Drafted & Finalized Sept 2025 – Jan 2026 Petition Drive Feb – April 2026
City Council - Resolution of Intention to Form April 8, 2026 Mail Notice of Public Meeting/Hearing to assessed businesses Completed by April 12, 2026
City Council – Public Meeting – No CC action required May 12, 2026 City Council– Public Hearing, Determination of Majority Protest and Resolution of Formation Consideration May 27, 2026
District begins collecting assessment July 1, 2026
TID Notice
Once the petition threshold is met the City is required to distribute a notice to assessed businesses to the registered address on file. The City of Palm Springs exceeded mandatory notice requirements.
Direct Mail Notices: Official notices were mailed by April 12 to all hotels and STR properties within the district boundaries. Mailed notices were sent to both registered addresses on file and the business address for a combined total of over 5,500 direct mail notices.
2,800+ Digital Notices: Email notices were sent to all assessed businesses using the official email on file.
TID Webinar
Following the notice, two educational webinars were hosted by Civitas to educate and inform. Two webinars were held on May 4th with 68 total attendees and 7 panelists.
Construction
of East Wing
Begin
Renovation /
Continue East
Wing Design
Construction
Pricing
Finalize
Renovation
Program
Project
Kickoff
2026 Q1
Vestibulum
congue
tempus
Vestibulum
congue
tempus
Stakeholder
Engagement
Project
Kickoff:
Urban
Design/
Branding
Finalize Pricing /
Issue Second Tranche
Issue First
Tranche Debt
Debt
Documentation/
Approvals
Finalize
Financial
Model
TID
Outreach
Project
Completion
Vestibulum
congue
tempus
2026 Q22026 Q1 2026 Q3
Concept
Development/
Ongoing
Stakeholder
Engagement
Concept
Refinement Project
Completion
Ongoing for
up to a 40
year term
2027 Q1 2027 Q2 2028 Q3
Convention
Center
Urban
Connectivity
Public
Finance
/TID
Finalize East
Wing Design
Ongoing Urban
Design/ Master
Planning
Project Outreach
OUTREACH DURATION
Dec. 2025 – Present
OUTREACH TO:
30+ Local Orgs
ENGAGEMENT
17 completed - and more on the
way
Completed Outreach
Community Based
● Baristo Neighborhood
● PS Realtors
● Rotary Club
● Plaza Theatre
Business & Govt.
● PS Resorts
● VRON
● PS Hospitality
● Agua Caliente
● Local restaurant &
retail
● Small Hotels
Association
● Measure J
Commission
Elected Officials
● Rep. Ken Calvert
● Sup. Manuel Perez
● Asm. Greg Wallis
● Senator Ochoa Bogh
Future Planned
Business & Community
● Visit Greater PS
● Downtown Business Council
● OnePS
For presentations contact: [email protected]
THANK YOU