CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 CONSENT CALENDAR
SUBJECT: EXTENSION OF THE DISASTER OVERLAY ZONE PROGRAMS FROM: Scott C. Stiles, City Manager
BY: Flinn Fagg, Assistant City Manager
SUMMARY:
This is a request to extend the reduced fee schedule for repair and reconstruction of buildings damaged in the May 17, 2025, terrorist attack. The adopting resolution of the Disaster Overlay Zone contained an automatic sunset date of November 30, 2025; staff is requesting to extend the programs and incentives adopted as part of the Overlay Zone as there remains a project under redevelopment that is still in the entitlement and permitting phase.
RECOMMENDATION:
Adopt Resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, EXTENDING PROGRAMS FOR THE DISASTER OVERLAY ZONE AREA.”
BACKGROUND:
On May 17, 2025, a terrorist bomb exploded outside the American Reproductive Centers fertility clinic at 1199 North Indian Canyon Drive resulting in damage to a total of 51 buildings in the general vicinity of the bombing. Of the 51 buildings damaged, eight buildings were impacted to the point that they could not be safely occupied or secured.
In an effort to assist property owners in repairing or rebuilding the damaged structures, the City Council adopted a Disaster Overlay Zone on May 28, 2025, with a variety of programs and incentives designed to facilitate the reconstruction process. These programs and incentives included the following:
1. Disaster Overlay Zone Fee Schedule: Application and permit fees for buildings damaged by the bombing were significantly reduced to minimize financial barriers in the rebuilding effort.
2. Expedited Permit Review Times: The Building & Safety Department, Engineering Department, and Planning Department committed to expedited schedules in
City Council Staff Report
May 27, 2026 -- Page 2
Extension of the Disaster Overlay Zone Programs
reviewing and approving entitlement applications and building permits to allow property owners to make repairs as quickly as possible.
3. Expedited Inspections: Similar to expedited plan review times, the Building & Safety Department has generally performed inspections in less than 24 hours of the inspection request for buildings damaged by the bombing.
4. Expedited Business License Reviews and Reduced Fees: The Finance & Treasury Department offered expedited business licenses for any business that needed to establish a temporary location during the reconstruction process. In addition, license fees for these businesses were reduced to minimize the financial impact of the disaster.
The adopting resolution for the Disaster Overlay Zone included an automatic sunset provision of November 30, 2025. However, the resolution indicates that the Overlay Zone and its accompanying programs may be continued by “…resolution or motion of the City Council.”
STAFF ANALYSIS:
While nearly all of the properties that were damaged in the bombing have been repaired and taken advantage of the incentives offered by the City as part of the Disaster Overlay Zone, the American Reproductive Centers project is still in the building permit review process and is not yet completed. Consequently, staff is requesting an extension of the Disaster Overlay Zone so that expedited reviews, expedited inspections, and reduced fees can still be offered to the property owner. A grading permit has been issued for the redevelopment, and it is anticipated that the building permit will be issued shortly. It is recommended that the Overlay Zone programs be extended through December 2026 to facilitate the completion of this project.
ENVIRONMENTAL ASSESSMENT:
This action is statutorily and categorically exempt from the requirements of the California Environmental Quality Act (Public Resources Code, §§ 21000 et seq.)(“CEQA”) because it involves the adoption of a governmental funding mechanism, which is not subject to CEQA. (Kaufman & Broad-South Bay, Inc. v. Morgan Hill Unified School District, (1993) 9 Cal.App.4th 464).
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.
FISCAL IMPACT:
Impact to the General Fund for the extension of the Disaster Overlay Zone programs will be minimal.
City Council Staff Report
May 27, 2026 -- Page 3
Extension of the Disaster Overlay Zone Programs
REVIEWED BY:
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Draft Resolution
B. Resolution No. 25312