Measure J commission hears timeline and finance plan for $135 million Palm Springs convention center project
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Summary
Commission staff updated the Measure J Oversight Commission on the convention center redevelopment plan, the Tourism Improvement District (TID) being formed to fund it and a possible May–June timetable for debt issuance; staff will present a 10‑year Measure J forecast at the April meeting.
Commission staff told the Measure J Oversight Commission on March 19 that the city’s convention center renovation program is advancing toward financing and design work, but key decisions depend on formation of a Tourism Improvement District (TID) and a recommendation from the commission.
The commission heard that the city has engaged three architect teams for different pieces of the program — walkability/connectivity (budgeted about $25 million), renovations to the existing building and a rebranding consultant — and that a community stakeholders group has been meeting to set the project vision. Staff said the overall program is being planned at an approximate $135 million scale and that architects have begun design and initial cost estimating.
Staff briefed the commission on the proposed TID, which would assess roughly 1% of gross revenues on participating large hotels, small hotels and short‑term rentals. The formation threshold is 50% of gross revenues from the affected business population; staff said the initiative is close to that mark and that, if the threshold is met, the city would take a resolution of intent to council and hold public hearings in May and possibly June. Collections could begin later in the year, and staff said the city could proceed to bond markets in July–August to issue debt to cover phase‑one construction and renovations.
Commissioners asked about interest‑rate assumptions and cost estimating. Staff said current models assume bond rates in the roughly 4%–5% range but emphasized the market is volatile; consultants and an owner’s representative will provide further, more current cost estimates before the city issues bonds. Staff also said it will bring a 10‑year forecast to the commission at its April meeting to show how convention center debt service would affect Measure J balances and other priorities.
A next procedural step: staff will return in April with the 10‑year forecast and additional cost detail, then the commission is expected to form a recommendation about whether the council should move forward with debt issuance in the May–June window.
