Mayor touts tourism recovery and unveils $125 million convention center plan, $2.9 billion airport modernization

Palm Springs Mayor (as introduced in the transcript) delivered a program‑style State of the City presentation on Dec. 2 that centered on tourism recovery, major capital investments and a new economic development plan meant to diversify the local economy.

In his remarks, the mayor said tourism supports 11,343 local jobs and that visitor spending topped $1.9 billion last year, generating an estimated $80 million to $85 million in local tax revenue. He described a new $125,000,000 plan to renovate and expand the Palm Springs Convention Center and said the council has approved an airport master plan initiating a $2,900,000,000 modernization of Palm Springs International Airport; the airport project is in environmental review expected to continue through 2026.

The mayor framed both projects as investments in the city’s competitiveness: the convention center overhaul will create a pedestrian‑friendly district linking downtown to the center, while the airport modernization aims to improve passenger flow and add amenities as passenger traffic grows. He said PSP (Palm Springs International Airport) recently served 3,200,000 passengers and has added new nonstop routes.

Measure J, the city’s 1% sales tax, was highlighted as the principal local revenue source for capital work. The mayor said Measure J generated $24,000,000 this year and $215,000,000 since inception, and that funds have supported street paving (113 of roughly 250 miles completed), $42,000,000 toward the library project, $6,000,000 for street paving and slurry work this year, and other capital needs.

The mayor also announced a new economic development strategic plan built around five guiding principles to expand capacity, modernize policy, support core industries (tourism, arts, hospitality) and seed emerging sectors such as clean energy and biomedical tech.

The presentation noted near‑term fiscal caution: general fund revenues grew by roughly $7 million (4%) in the prior year, but the FY2026 general fund is budgeted at $173,000,000, a projected 6.5% decline tied to an expected economic softening. The mayor said council will receive quarterly reports and stand ready to take corrective actions.

The council is moving many capital projects forward; the convention center renovation and the airport master plan were presented as priorities, with the airport’s environmental analysis continuing into 2026. No formal council votes on those projects were recorded during the special meeting.

The mayor closed by urging the city to leverage tourism while building a more diversified local economy and invited the public to join nonprofit and business partners at a post‑program ice cream social.