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Celebrating 70 Years As An International Star

By Lydia Kremer

Seen Right: The popular Indian Canyons Golf Resort.
Photo by SG Photo

At the graceful age of 70, the city of Palm Springs is undergoing a rejuvenation and facelift that would be the envy of any spa patron. The city’s rich historical past and promising future will give Palm Springs much to celebrate in 2008 as it commemorates the 70th anniversary of its 1938 founding.

Although it’s a relatively small city of 47,000, Palm Springs already has enormous international stature with its celebrity history and spectacular natural beauty. But it just might be poised to eclipse its enviable reputation with a new ambitious master plan whose impact will be felt for its next 70 years.

Robust Economic Development

As one of the earliest communities in the Coachella Valley to develop, the city of Palm Springs today has limited developable land on which to build. Despite this, the city is undergoing a tremendous development boom, including a number of significant projects that are strategic “in-fill” projects. The wide range of projects, which vary from hotels, residential, and commercial to retail and mixed-use, is at once impressive and ambitious.

The city’s sales tax collections have increased 78 percent since 2003, in part due to the opening of the Wal-Mart Supercenter in late 2005. Under construction today is The Springs, a 393,000- square-foot shopping center at Gene Autry Trail and Ramon Road, anchored by Home Depot, and Smoketree Commons, a 175,000-square-foot shopping center adjacent to the Smoke Tree Shopping Center. Anchors include: Jensen’s Fine Foods, Michaels, Linens-n-Things, and Cost Plus World Market. Estimated completion of both centers is spring 2008.

Other types of development are springing up, including new office space on Ramon Road and Gene Autry Trail. BMW of Palm Springs is investing more than $15 million to build a new dealership, which will also allow Mercedes and Infiniti to expand. That project will be completed late 2007.

One factor that has spurred development is the growth of Palm Springs International Airport, which has seen a 48 percent growth in passenger levels in the past five years and is 22 percent above its pre-9/11 levels. The airport is the sixth fastest-growing airport in the United States. Recently, the airport opened its new regional terminal, providing a better quality experience for passengers departing on regional jets.

The Airport expansion will result in the number of airlines and routes increasing, further aiding the city’s tourism. Currently, the airport is serviced by 13 airlines with year-round and seasonal direct nonstop flights to more than 18 cities, including Chicago, Dallas, Houston, Vancouver, San Francisco, and Seattle.

Residential Development

The key to residential development in the city is its quality and variety. Even “entry” products in Palm Springs, such as condominiums designed for young singles or couples, are long on style and architecture that make them appealing. Examples of this are the 211-unit Palermo and Pedregal, 132 condominium units at Tramway Road and North Palm Canyon Drive, now under construction.

Other enticing infill projects include Vista San Jacinto, 36 townhomes, now under construction; Palomino and Terra Vita, under construction; and Village Traditions, 102 condominium units on Ramon Road and El Segundo, a partnership with the Agua Caliente Band of Cahuilla Indians and local builder D.L. Freeman.

New “higher end” luxury properties include the 12-townhome Tangerine project; Alta, 67 single-family homes, and Monte Sereno, 89 single-family homes, located in the South Palm Canyon Drive area.

Tourism is Heating Up

There’s no doubt that Palm Springs is becoming a year-round destination. Marketing efforts by the Palm Springs Bureau of Tourism have produced positive news: the 18 percent increase in transient occupancy tax in June over last year; attendance at the Palm Springs Visitors Center increasing 20 percent in June and July; and, of course, higher traffic at the airport.

The bureau recently embarked on a venture to debut Palm Springs videos on a new travel and leisure channel, Journey TV, which reaches 54 cities nationwide with more than 7 million digital households. The bureau also created a partnership with Travelocity, which allows Palm Springs the opportunity to reach 15 million Travelocity users each month. “Our goal is to reach as many potential new visitors to Palm Springs as we can. Our market research has told us that once a visitor makes their way here, the chance that they will return is very high,” says Mary Jo Ginther, director of the Bureau of Tourism.

No discussion of tourism can ignore the tremendous interest in Palm Springs by several major hotel brands, including Hard Rock and Mondrian. Hard Rock is known for its high-energy hotels. The Hard Rock Hotel is proposed as a 490-room hotel near the Convention Center on Tahquitz Canyon Way. Construction is estimated to start in mid-2008, with completion by early 2010.

Mondrian is best known for its ultra-hip hotel in West Hollywood, home of the well-known Skybar. Mondrian Palm Springs will also be near the Convention Center and feature a 200-room hotel and up to 150 condos, some of which would be in a hotel rental program. Construction will also start in 2008, with the hotel completed by the end of 2009.

In addition, major renovations to the Ramada Inn (now Holiday Inn) and the Riviera will be completed in 2008. This will return nearly 700 hotel rooms back into the city’s inventory.

With the new hotel projects coming online, the city will be well prepared for its growing reputation as a hot travel destination. By late 2009, the city will increase the number of hotel rooms to more than 7,600 rooms.

Midcentury modern architecture remains a hot tourist attraction in Palm Springs, as its concentration here is unrivaled anywhere. In 2006, the National Trust for Historic Preservation named Palm Springs as one of America’s Distinctive Destinations. “Palm Springs contains an astonishing wealth of architectural styles and building types reflective of the city’s 100-year history as a desert resort,” says Richard Moe, president of the National Trust.

“We have seen a huge demand and interest in our midcentury modern architecture,” Ginther says. “Architecture tours are now an important tourism component and will continue to grow.” The City of Palm Springs will be the presenting sponsor of the annual Modernism Week in February 2008, which draws thousands of architectural historians, preservationists, and modernism aficionados from around the world.

A Dynamic Downtown Vision

After focusing on reinventing downtown Palm Springs for more than 15 years as an “arts and entertainment center,” the city is on the threshold of change that will dramatically reinvent the downtown in ways that are more positive and sustainable than previously imagined.

The big shift is the approval of major mixed-use projects in the downtown, which will introduce new residents into the urban lifestyle — “Palm Springs Style.” The first project approved is Port Lawrence, with 118 condo units (including live/work units) and 25,000 square feet of retail space at North Palm Canyon Drive and Alejo Road.

At the other end of downtown, The Palm Canyon, with 125 condo units and 39,000 square feet of ground floor retail, located at Palm Canyon Drive and Ramon Road, was also approved. These projects, along with the future redevelopment of the former Desert Fashion Plaza (now called Museum Market Plaza), will help make the downtown a 24/7 place with people living, working, dining, and shopping in the area year-round. Museum Market Plaza plans call for a new east-west street from Palm Springs Art Museum to the proposed expanded Spa Hotel and Casino, connecting downtown to the new resort hotels and the Palm Springs Convention Center.

As a result of the momentum, downtown merchants gave a vote of confidence in their future, initiating a Business Improvement District program to improve the quality of life and economic vitality of the area. The BID is an assessment on the business license fee to be used for marketing and promotion of the downtown and uptown areas.

Industry opinion makers have noticed all this economic development activity. “Our Standard & Poors and Fitch’s bond ratings have just been raised to an A from an A-,” says David Ready, city manager. That means a significant reduction in rates and upfront fees when the Redevelopment Agency borrows money for its projects. “This is indicative of the resurgence of Palm Springs’ economic development and growth,” Ready adds.

Tribal Partners

Visitors to Palm Springs may not readily understand that there is more here than meets the eye. Yes, the city has abundant beauty and charm, but Palm Springs is special for something entirely unique. A large portion of the city sits on an Indian reservation. Thus, Palm Springs is governed by two entities that work hand in hand: the City of Palm Springs and the Agua Caliente Band of Cahuilla Indians.

“The City of Palm Springs and the tribe have had a long track record of working together closely on our shared vision,” says Mayor Ron Oden. “Now more than ever, it is important to protect this relationship to ensure that our partnership will continue to be a positive force as we create a truly exciting downtown.”

This summer, the tribe moved into its new 40,000-square-foot Tribal Administration Plaza building on Dinah Shore Drive. The dazzling building marks a new benchmark for the tribe as it pursues some ambitious economic development initiatives of its own. “Our major focus will be to enhance the future vitality of the Spa Hotel and Casino and integrate it in downtown Palm Springs as a premier destination resort,” says Todd Hooks, the tribe’s economic development director.

Currently the tribe is conducting an environmental impact study on a plan to create a major destination resort downtown with a new Spa Hotel that will incorporate the Spa Resort Casino and an expanded entertainment complex. It would include a 2,000-seat showroom, ballroom, and numerous restaurants and will extend from Tahquitz Canyon Way to Andreas Road along Indian Canyon Drive, infusing new energy downtown.

“The tribe is integral to downtown. We think ultimately the hub of the wheel will be the new Spa Hotel,” notes John Raymond, the city’s director of economic development. “What happens on Indian Canyon Drive will help determine what happens with the rest of downtown and Section 14.”

As part of the overall reinvention of downtown, the city and the tribe are considering a joint venture to build a parking structure to provide parking for the casino, the downtown, and the convention center. “The tribe, as a prominent community member, has always been committed to developing facilities and projects that enhance the visitor experience and which augment the quality of life in Palm Springs,” states Tom Davis, chief planning officer for the tribe. “This is one of the tribe’s overriding principles and will continue to guide all of our future plans for development.”

Mayor Ron Oden Mayor Pro Tem Steve Pougnet	Council Members Ginny Foat Mike McCulloch Chris Mills	Year Incorporated 1938 Population 46,858	Median Household Income $47,383
		Interior view of a new single-family home in Alta. Courtesy ALTA Construction, LP
		Proposed Hard Rock Hotel viewed from Tahquitz Canyon Way. SB Architects
		Tribal Administration Plaza on Dinah Shore Drive. Photo by Chris Miller