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cg41FORN�P CITY COUNCIL STAFF REPORT
DATE: July 21, 2010 UNFINISHED BUSINESS
SUBJECT: CITY MANAGER — SIX MONTH UPDATE — ECONOMIC RECOVERY
AND DEVELOPMENT PLAN
FROM: David H. Ready, City Manager
BY: Thomas J. Wilson, Assistant City Manager
SULAIdARY
At the January 20, 2010, Palm Springs City Council Meeting the City Council adopted a
ONE MILLION DOLLAR Economic Recovery and Development Plan for implementation
in the 2010 calendar year. Staff will present the update and status report on the first six
months of the Plan.
RECOMMENDATION-
1. Receive and file the update and status report.
2. Approve supplemental funding in the amount of $100,000 each for the Fagade
Improvement Program and the Commercial Interior Remodel Program.
3. Approve and initiate a "New Residential Construction Incentive Program" with
funding of$400,000.
STAFF ANALYSIS:
Staffs update and status report demonstrates the implementation of programs which
have been well received by the development community and embraced by the public.
Two elements of the Plan have been so successful that Staff recommends that
supplemental funding be designated to continue the programs.
The Facade Improvement Program has completed 95 projects with 15 additional
projects underway, for a total of 110 individual fagade projects. It is proposed that an
additional $100,000 be provided for the program. Similarly the Commercial Interior
Remodel Program has also demonstrated strong interest with 7 projects underway with
the initial $100,000 funding. At present there are 3 worthy projects on a waiting list, and
staff recommends $100,000 in supplemental funding for the program.
ITEM, NO. —
City Council Staff Report
July 21, 2010--Page 2
City Manager—Six Month Update—Economic Recovery and Development Plan
Finally, Staff has received input from Palm Springs residential developers who believe
that, with some assistance, new residential development which has been stalled due to
the depressed economy can be now successfully initiated. Based on this input and the
recent renewal of some new residential in Coachella Valley, Staff recommends that the
Council consider establishing a New Residential Construction Incentive Program.
The new incentive program would provide the following:
■ City waiver of Park In-Lieu Fees and Public Art Fees.
■ City contribution of 50% of a project's "Plan Check" fees, not to exceed
$50,000 per project.
■ City contribution of$4,000 per unit in "off-site" public improvement.
The incentive program would be available for new construction residential projects only,
of no less than 20 units and no more than 100 units. The incentive program would be
available for one year beginning August 1, 2010 and would only apply to units in
projects which are fully permitted for construction and begin vertical construction no
later than July 31, 2011.
Staff would recommend an initial funding of the incentive program at $400,000.
FISCAL IMPACT:
Funds for these programs are available from the sale of White Water stock to the Desert
Water Agency, with the transfer of funds from the City's Trust & Agency Account to the
General Fund Revenue Account#001-37802.
David H. Ready, City ger
Dougl s C. Holland, City Attomey Thomas J. WilsonyAssistgM City Manager