Ron deHarte

Friend,

 

This week, our hearts remain heavy and burdened by the horrific act of violence May 17. We are a community built on warmth, acceptance, and diversity, yet our grief stretches across the region and a profound tragedy reverberates far into our very core. I ask all residents to stand together, united in our shared humanity, where understanding replaces ignorance, and where the dignity of every individual is respected and celebrated and empathy overcomes apathy, and where love always, always, conquers hate.

Many in the community are answering the call to raise funds to support those grappling with damage not covered by their insurance and $107,000 has been raised! Estimated uninsured window and structural damage for our small businesses is $1.5 to $2 million. Picture a small business owner whose daily sales are their family's lifeline, now facing unforeseen repair costs for their storefront and inventory, with no insurance coverage to soften the blow. These are the silent struggles unfolding within our beloved community. Please report structural damage you may have from the blast to 

business.info@palmspringsca.gov.

 

Charitable Tax Deductible Donations are being collected online – Click Here.

Council actions at the May 28th meeting and my work since our last update.

Beyond our formal meetings, I'm making sure to be present in various community settings. My goal is to be transparent and accessible to everyone in our city, and this update is part of that effort!

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Interviews and Media Outreach

My interviews and quotes on the May 17 bombing were included media outlets around the world.

• ABC News Australia

• Aljazeera

• BBC NEWS

• Business Times, London, UK

• Business Times, NYC

• Coachella Valley Independent

• Colorado Gazette

• CNN - Frederica Whitfield

• Daily Tribune, Philippines

• Desert Sun, Palm Springs, CA

• Deutsche Welle – Germany

• France24.com

• Hindustan Times

• KESQ Palm Springs

• KTLA – Chip Yost

• KTLA.com

• MSN.com

• Mynewsla.com

• Navi – Mumbai

• NBC Palm Springs

• New York Times

• News Nation now, Nextstar media USA

• Newsbreak.com

• Newsweek

• NPR’s AirTalk

• NYpost.com

• Palm Springs Post

• Palm Springs Tribune

• Patch.com

• Reuters New Zealand

• Reuters.com

• Sky.com, London, UK

• Spectrum News 1

• The Jerusalem Post

• The Sentinel.com

• The Sun Malaysia

• TheHill.com

• Times of Israel

• Timesnownews.com, India

• USNews.com

• Yahoo.com

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Other Media  

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KESQ interview w/ Peter Daut to discuss the City’s survey to collect information from residents and business owners to that will shape the City’s economy in the future.

KESQ with Athena Jreij to discuss safety and community conversations about closing Arenas Rd.

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Press Conference at American Reproductive Centers - I praised the swift and courageous response of our Fire, Police, and emergency crews. Their virtually instantaneous arrival from the moment of the blast filled our community with an overwhelming sense of reassurance, reminding us that we would indeed be alright. Their presence was a powerful testament to Palm Springs' unwavering preparedness, a resounding declaration that no one will ever stand in the way of our freedom and peace.

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Interviews discussing the Rebuild Palm Springs Fundraiser launched to support small businesses who are facing significant bills to rebuild from the bombing but lack terrorism insurance coverage.

• KESQ

• NBC Palm Springs

• The Post

• The Desert Sun

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Community Outreach

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Attended the NBC Palm Springs Drive-Thru fundraiser benefiting Rebuild Palm Springs on May 23. $14,214 was raised.

I presented Palm Springs resident Ron Oliver a proclamation in recognition of his star on the Palm Springs Walk of Stars. Oliver broke into show business by writing the cult horror film Hello Mary Lou: Prom Night II. He has written and/or directed over 30 Hallmark movies.

 

 

I presented a recognition certificate to Emylee Covell and Pieter Vodden of Pharos Athletic Club at the grand opening and ribbon cutting ceremony. The club is located 3455 N Indian Canyon Dr, Palm Springs 92262.

Presented a proclamation honoring the American Legion Auxiliary on National Poppy Day May 24.

I was invited to speak at the Palm Springs Sunup Rotary Club and was surprised the club held a fundraiser and collected $2,400 for the Rebuild Palm Springs effort.

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As Mayor, I presented Spirit of Palm Springs Awards to:

• Angie Chua - founder of bobo design studio where she designs and creates wanderlust and travel-inspired stationery that encourages and enables people to explore the world around them.

• Jerry Keller – community business and tourism leader, philanthropist and founder of Lulu California Bistro. Jerry is celebrated for his contributions to Palm Springs including service with Visit Greater Palm Springs and PS Resorts.

• David Freedman - a sustainability legal expert and former Sustainability Commissioner. He retired from CVAG in January as the program manager for Desert Community Energy and currently serves as consultant to the Office of Sustainability.

• Aaron Jay Young - Palm Springs / Los Angeles photographer. Published book of his portraits entitled Queen - culmination of over four years of work and marks his photography book debut. He captures the beauty, elegance, and humor of some of the drag community's most prominent performers in portraits that unequivocally encapsulate the diverse and inclusive nature of the art of drag.

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Meetings

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The day the FBI released the crime scene, and Indian Canyon was open to traffic, I toured the site where the bomb exploded outside the American Reproductive Centers. Chief Mills and Chief Alvarado were on hand as we witnessed the destruction resulting from the powerful blast.

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Joint meeting with the Measure J Commission to review community-initiated project recommendations the commission is submitting to council for consideration. The commission’s report may be the most thorough and detailed report I have read. A key criterion I follow for projects is, “Does this project benefit the majority of residents, guests, and/or tourists in our city?” I shared concern for several projects and a request to replace an elevator which don’t meet the criterion of benefiting the majority of residents, guests and/or tourists in our city.

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City Council Budget Study Session was an opportunity for a high-level review of the 2026 and 2027 budget by councilmembers. I expressed my concern with the uncertainty in the economy that we are being too optimistic. We were told the budget is conservative on the revenue side with a 1% increase in TOT and Sales Tax. I don’t think we will see a 1% increase in TOT. We need to proceed with caution and plan on a decrease in tourism and sales tax revenues. Our revenue projections need to be adjusted down for both the 2026 and 2027 budget. The draft budget is showing a $10M shortfall with a notable drop in general fund balance. We must deliver a balanced budget. Feel a little pain today or wait two years and be in a world of hurt.

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Attended the Palm Springs Sister Cities joint educational program with students from San Miguel de Allende and students from Vista Del Monte Elementary School. I was inspired to see the students presenting their architecture and design projects to each other.

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Participated in making a Palm Springs Power promotional video with Andrew Starke, president of Power Baseball. The video is promotion the City of Palm Springs night at the Power Baseball game on June 13 at 7 pm. All residents receive free hotdog, chips and soda.

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I was invited to speak at the Temple Isaiah memorial dedicated to fighting hate. Days after the May 17th bombing, we learned of the senseless killing of Yaron Lischinsky and Sarah Milgrim, a young Israeli couple, in front of the Capital Jewish Museum in Washington D.C. It was a powerful reminder that even in our darkest moments, we can find strength in unity and compassion. My heart aches for every single victim, for their families, and for everyone struggling with the pain of this horrific tragedy. There's simply no justification for hate.

 

 

Other

• Convention Center Public Finance Working Group learning about financing mechanisms available for convention center modernization.

• PS Resorts to discuss their expiring contract with the city.

• City of Palm Springs Auditor Meeting with CliftonLarsonAllen to review processes for the city’s annual audit.

• I was briefed on the outcome of the Convention Center management agreement RFP process.

• Hotel/tourism General Manager Call.

• PS Resorts Board Meeting.

• Boards and Commissions Ad Hoc Subcommittee Application Review.

• Capital Improvements & Construction Working Group for the convention center modernization.

• Meeting with Rancho Mirage Council Member Michael O'Keefe.

• Participated in a panel Interview for the PS Director of Tourism position.

Now, these are the highlights from this weeks council meeting.

Palm Springs City Council Meeting | May 28, 2025

 

Key Highlights

• Disaster Relief and Recovery

• City Projects and Financing

• Pickle Ball Court update

• Desert Community Energy's (DCE) line of credit

• Library and Swim Center update

• Modifying flood damage prevention requirements

• Palm Springs Convention Center Management

• Plaza Theater Renovation Financing

 

The Pledge of Allegiance was led by Ben Miller, a senior at Palm Springs High School.

 

MAJOR DECISIONS & UPDATES

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Disaster Relief and Recovery - An update was provided, by the Fire Chief Alvarado and Police Lieutenant Mike Villegas, on the May 17th bombing incident, described as a "horrific event" and an "intentional act of violence". This included details on the swift response by the Fire Department, Police Department, and FBI.

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The city is actively involved in assisting businesses impacted by a recent disaster.

Director of economic development, Wayne Olson, assisted Dr. Abdallah, whose practice, American Reproductive Centers was impacted, to secure office and storage space allowing the doctor to continue providing services to the community. Grit Development donated eight months of free space (an additional 3000 sq ft) to Dr. Abdallah. Dr. Abdalla's practice was resuming normal operations less than a week after the incident.

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Estimated damages are reported to be roughly $6 to $12 million total, 27 businesses are damaged, five buildings are a complete loss. Rebuilding the fertility clinic and surrounding buildings is estimated at $5 to $10 million, and the other 52 buildings at $1.5 to $2 million.

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"Rebuild Palm Springs," has raised $107,000 to support small businesses who are facing significant bills to rebuild from the bombing but lack terrorism insurance coverage. The current fundraising goal is $250,000. Click Here to make charitable tax deductible donations online.

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A key action item was the creation of a Disaster Overlay Zone. This zone is intended to facilitate the recovery process for properties within the designated area that experienced damage. The initial boundaries of the overlay zone were based on fire and building inspection surveys of damaged properties. Property owners with damage in the zone would qualify for low permit and building fees, expedited permit review times, and accelerating inspections and for affected businesses. The proposed duration is six months, with the possibility of extension.

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The Disaster Overlay Zone has a limited lifespan, initially proposed for two years, but with the ability to extend it.

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City Projects and Financing:

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Pickle Ball Court - Discussion occurred regarding the rejection of bids and the need to re-bid the pickleball court project (Item 1K) due to issues with the three lowest bids, with a significant cost difference of over $700,000 between the lowest and third lowest bids. This would delay the project by about one to two months.

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An application for the state's Pro-Housing Designation (Item 1N) was discussed, highlighting that the city's existing efforts, such as Housing Element updates, an inclusionary housing ordinance, and affordable housing set-asides, position them well for the designation. The designation would provide additional standing for funding applications and access to a dedicated incentive program. The application requires a resolution and a detailed submission within about four weeks. Council members expressed pride in the city's efforts and the potential for this designation to serve as a state model and attract more funding.

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The city's role as guarantor for Desert Community Energy's (DCE) line of credit expansion to $20 million (Item 1P) was discussed. DCE's financial stability was noted, with over $27 million in liquid cash and a significant increase in financial position since the city's initial support. The expansion is needed to secure long-term power agreements, support operations (by freeing up cash used as collateral), and maintain liquidity ratios favorable to rating agencies. DCE's financial position was described as strong, with ample cash and fund balance, making the risk to the city "zero" unless something drastic occurred statewide.

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The Mitigated Negative Declaration for the Sun Community Federal Credit Union project was adopted as an adequate environmental document, and the ordinance approving the change of zone was adopted. (Item 2A)

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Library Renovations and Swim Center Financing: A joint public hearing of the City Council and Palm Springs Financing Authority was held to authorize issuance of lease revenue bonds (Item 2C) to fund the library renovation/expansion and swim center building renovation. The estimated cost for the library project is $40-45 million, with $15 million committed from grants and Measure J; the financing would cover the remaining $25-30 million.

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The swim center renovation is estimated at $7 million, originally funded by Measure J, but financing it now would free up Measure J funds for other projects. Lease revenue bonds are traditional for city infrastructure and secured by lease payments for city assets like the library and other parts of Sunrise Park. Interest would be capitalized during the library's two-year construction period.

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Total project cost is over $40 million. Bond issuance is expected around June 24th, with market volatility noted. Annual debt service for the library would be about $2.15 million starting in fiscal year 2027-28, and for the swim center component starting in 2025.

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Additional potential projects like the pavilion or future pool work were discussed but deemed not ready for inclusion in this financing due to timeline and design status.

An ordinance modifying flood damage prevention requirements (Item 3A) was introduced for its first reading. This amendment is to align with FEMA's Community Rating System (CRS) prerequisites to maintain the city's Class 6 rating, which provides residents with a 20% flood insurance discount. The changes involve specific language regarding freeboard requirements for mechanical equipment and manufactured homes. Staff does not anticipate existing homes will require modifications.

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Palm Springs Convention Center Management: Authorization for contract negotiations for convention center and tourism management services (Item 3B) was discussed and approved, as the current agreement expires on September 27th, 2025. An RFP process resulted in proposals from two firms, ASM Global (the current manager) and Oak View Group. A selection panel including city staff, PS Resorts, and Agua Caliente tribal representation evaluated the proposals and interviews. The panel recommended negotiating with Oak View Group, who offered a lower cost, higher capital contribution, and a plan to increase occupancy.

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Concerns were raised about ensuring the city's needs are met, including potentially expanding the number of "city days" for use when it doesn't compete with revenue-generating events and exploring a potential nonprofit rate. Along with the inclusion of ‘City flavor” referring to on site venues provided by local restaurants, coffee shops, breweries, etc.

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Council members stressed the need for clear, measurable performance metrics and regular reporting from the new management team.

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Plaza Theater Renovation Financing: The city is pursuing Historic Tax Credits (HTCs) to help finance the renovation of the Plaza Theater. (Item 1R)

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This involves a complex structure where tax ownership is transferred to a private entity through a long-term lease for federal tax purposes, but the title remains with the city. The legal structure involves leases and operating agreements, with "no transfer of title" of the theater property.

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The city anticipates a net benefit of approximately $2.8 million from this transaction, receiving a significant portion upfront ($2.5 million within 18 months of the deal's origination).

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The structure involves an investor making three distributions, with amounts going to both the foundation and the city. The process is described as the "first of two steps," with a second step involving more detailed legal structures coming back to the council.

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Examples of other municipalities and entities using similar tax credit structures for historic preservation and facilities were provided.

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While complex and not common for all cities, it was confirmed that this is a viable method that has been used before.

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Displaying the POW/MIA flag

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Last week I requested the POW flag be displayed at city hall on Memorial Day. I was not able to have the flag displayed because our Flag Ordinance does not include the POW flag as an approved flag. At this meeting, I requested the Flag policy be updated and returned to council to include displaying the POW/MIA flag on Armed Forces Day, Memorial Day, Flag Day, Independence Day, National POW/MIA Recognition Day, and Veterans Day.

 

Upcoming Items -

June 11th: 2025-2026 and 2026-2027 Draft Budgets & Co-owned housing ordinance.

June 17th: Joint meeting with all Boards and Commissions

June 25th: Approval of the 2025-2026 & 2026 – 2027 Budgets

July 9th: College of the Desert campus update presentation, appeal of approval for commercial expansion, and the PS Resorts Agreement Extension

 

Helpful Links & Contacts:

• Mayors Website – Read past updates on the Mayors Website

• PSPD App - to report law enforcement and non-emergency issues.

• MyPalmSprings App - to report issues within City limits, including homelessness, graffiti, and code compliance.

• Engagepalmsprings.com - This website was created as a space for residents to share ideas, discuss important topics, ask questions and receive updates about City projects.

• ONE-PS - is a network of Palm Springs neighborhoods that gives voice to the issues and concerns of our community.

• To submit public comment, contact the City Clerk's office @ CityClerk@PalmSpringsCA.gov.

• For other City-related issues, please visit our website

Send this link to invite others to join our Newsletter list - Join Mayor's Newsletter list.

 

 

Best regards,

Ron deHarte - Mayor of Palm Springs