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Airport staff report on purchase of off‑airport administration building near Palm Springs Airport

Palm Springs Airport Commission · January 21, 2026
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Summary

Staff briefed commissioners on an agreement to buy office property (packet refers to 550 Po Thoretta), negotiated below appraised value (~$1.7M vs $1.9M appraisal), ongoing 60‑day due diligence and plans to relocate ~20 employees; council approval will be required.

Assistant Airport Director Victoria Carpenter told commissioners the airport is under contract to acquire a nearby office property (listed in the packet as 550 Po Thoretta) intended to house airport administrative staff. An appraisal returned about $1.9 million; staff reported a negotiated price of roughly $1.7 million and said the purchase will use a mix of aviation fuel tax (Measure D) and airport funds per a prior commission recommendation.

Carpenter said the city has opened escrow and is conducting a 60‑day due‑diligence period that includes building inspections, environmental assessments, title review and permits. Staff plan for a staged move that would relocate about 20 staff now housed in terminal office space, freeing room in the terminal for potential passenger‑facing uses (concessions, USO, passenger lounge or tenant offices) to be considered and potentially put out to bid.

Commissioners asked whether vehicles for staff transport would be electric; staff said the initial selection is a hybrid Jeep Cherokee due to range needs for trips to regional offices and FAA/CBP meetings but said solar roof options are being explored. Staff said if council approves the purchase, a phased move could be complete by the end of the year.

Why it matters: The acquisition would relocate administrative staff off the terminal and create space that staff and commissioners hope to redeploy for passenger amenities and revenue opportunities. The purchase requires council approval; funding sources and renovation costs will be provided to the council in the staff report.

Next steps: Staff will complete due diligence, finalize renovation cost estimates and transmit the purchase for City Council approval.