CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 CONSENT CALENDAR
SUBJECT: PURCHASE OF PROPERTY LOCATED AT 550 PASEO DOROTEA TO
SERVE AS AN ADMINISTRATION BUILDING FOR THE PALM SPRINGS
INTERNATIONAL AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This item is to report on the purchase of real property located at 550 Paseo Dorotea, Palm Springs, to serve as an administration building for the Palm Springs International Airport (Airport).
RECOMMENDATION:
Receive and file report on the April 9, 2026, acquisition of real property located at 550 Paseo Dorotea (Property) to serve as an administration building for the Palm Springs International Airport.
STAFF ANALYSIS:
As Airport operations continue to expand, the administrative team has outgrown the current 8,665 square feet of space on the second floor of the terminal building.
Additionally, utilizing prime terminal real estate for administrative functions limits opportunities for revenue-generation and providing for passenger service needs. To accommodate both travelers and Airport staff, the Airport determined that acquiring an office building of approximately 10,000 square feet would provide a solution to both needs while providing the Airport opportunity to generate additional revenue.
The property is a single-story Class B office building constructed in 2007. It consists of 9,444 square feet on a 1.26-acre lot within the Desert Springs Professional Office Park.
The property is zoned P (Professional), which permits the Airport to use the building for administrative office space. An independent appraisal of the property was completed on November 21, 2025. The appraised value was $1,950,000.
On September 16, 2025, the Airport Commission recommended utilizing Measure D
City Council Staff Report
May 27, 2026 -- Page 2
Purchase of 550 Paseo Dorotea for Airport Administrative Offices Aviation Fuel Tax funds ($1,338,188) and Airport Fund Balance ($411,812) for the acquisition of 550 Paseo Dorotea. Subsequently, the City Council authorized staff during closed session to negotiate and execute a Purchase and Sale Agreement (PSA) with Paseo Dorotea Management, LLC, for the property.
On October 22, 2025, Airport staff presented to City Council in closed session the price and terms of a potential acquisition of the real property at 550 Paseo Dorotea for the purpose of administration office space for Airport staff. On February 11, 2026, Airport staff presented price and terms of that acquisition to City Council in closed session in accordance with the Brown Act.
On April 9, 2026, the City of Palm Springs closed on the purchase of 550 Paseo Dorotea for a total purchase amount of $1,780,335.88, inclusive of closing costs and other considerations (Attachment A).
FISCAL IMPACT:
The purchase of 550 Paseo Dorotea included the approved purchase price of $1,750,000 and closing costs and other considerations of $30,335.88. The closing costs included an escrow fee of $1,350 and $25 electronic service fee. The purchase required the proration of county taxes of $5,990.13 for the period of April 9, 2026 through July 1, 2026 and HOA Association Dues of $3,410.32 for the period of April 9, 2026 through May 1, 2026.
Upon closing, additional disbursements included May HOA Association Dues of $4,650.43 to Desert Springs Professional Office Park, professional service fees to CBRE of $2,450, project management services fee to Turner & Townsend Heery, LLC of $5,110 and pro forma fees of $7,350 to Turner & Townsend Inc. Capital expenses posted to Airport Account 4167056-80000. Future operating expenses will be budgeted to Airport Contractual Services Account 4157056-40105.
REVIEWED BY:
Interim Executive Director of Aviation: Victoria Carpenter City Attorney: Geremy Holm
City Manager: Scott Stiles
ATTACHMENTS:
A. Buyer’s Final Settlement Statement