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Council approves $200,000 subsidy to help Papa Dan's reopen after fire
Summary
The council approved a $200,000 Invest Palm Desert subsidy to support relocation and reopening of Papa Dan's Pizza & Pasta after a fire destroyed its previous space; staff estimated the city would recoup the investment in roughly ten years if the restaurant remains in operation.
Palm Desert city council approved a $200,000 economic subsidy through the Invest Palm Desert program to help Papa Dan's Pizza & Pasta relocate and reopen after a fire destroyed its former tenant space last year.
Staff said the restaurant will invest approximately $1.4 million in tenant improvements, furniture, fixtures and equipment at the new location in the Monterey and Country Club shopping center. The proposed subsidy agreement requires a minimum $1.2 million capital investment, a five-year operation covenant and the use of Palm Desert contractors and suppliers. If the business ceases operations before five years, the owner would be required to repay half of the $200,000 subsidy.
City staff estimated 45 jobs would return to the Palm Desert location and projected the city would recoup the $200,000 subsidy over roughly 10 years through sales and other local tax revenues if the business remains operating.
The council opened a public hearing; owner Ira Mosley thanked the council and staff for assistance during the recovery and relocation process. Mosley said insurance had provided a payment and that he appreciated the city's help making the relocation smooth.
The council voted to approve the subsidy; Mayor Harnick recused herself from the vote because of a potential conflict, and the motion passed 4-0.
Anthony Mejia and staff told the council the Invest Palm Desert fund had approximately $500,000 available for incentives at the time of the discussion and that the fund has been used for other small-business incentive programs such as security camera rebates and bike-rack programs.
