Palm Springs officials present $135 million convention-center modernization plan and proposed 1% lodging assessment

The Measure J Oversight Commission on Jan. 15 heard a presentation from consultants and city staff outlining a two-phase plan to renovate and expand the Palm Springs Convention Center and improve pedestrian “connectivity” to downtown, with a preliminary price tag of about $135 million.

Mark Wear, a consultant with Daily Strategies, said the proposal splits into a west-side renovation (approximately $52 million), an east-side expansion (about $60 million) and roughly $23.4 million for pedestrian and streetscape connectivity, for a total project cost of about $135 million. "The total project cost of $135 million," Wear said in his presentation, adding that the renderings shown are preliminary and that the architect and urban planner were recently contracted.

The plan pairs facility upgrades with a proposed Tourism Improvement District (TID) that would levy a 1% assessment on lodging (large hotels, small hotels and short-term rentals) and is projected to raise approximately $4 million annually. "This would be an assessment ... 1% of room revenue. It will bring in approximately $4 million annually," Wear said. The working group removed restaurants from the proposed district in recent weeks, a change presenters said reduces projected revenue by a little more than $2 million.

Why it matters: city and consultant materials argue that modernizing the convention center and creating a walkable convention district will help Palm Springs compete for larger events, restore lost business and increase tax receipts. Presenters cited a futures report that estimated more than 278,000 room nights were lost in the market between 2010 and 2023 and displayed 10- and 30-year economic projections tied to the upgrades.

Commissioners asked detailed questions about construction impacts, governance, petition mechanics, and who will pay debt service. Staff said design costs already have $10 million in Measure J funding for design, and that the city expects the TID to cover administration and a large portion of future debt issuance, with Measure J asked to cover some portion of debt service when final numbers are available. City staff also noted the general fund currently pays about $4.6 million a year on existing convention-center debt through 2034 and described how issuance timing and waterfalls would be structured.

Several commissioners pressed for clearer financial detail and said they were surprised not to have been consulted before council approvals of recent contracts. Commissioners expressed concern that diverting Measure J dollars to convention-center debt service could reduce funds available for other community projects; presenters replied that the city intends to continue funding prior Measure J commitments but acknowledged Measure J allocations would change if the commission recommends support for the new debt.

Next steps and timing: presenters described an aggressive schedule aiming for project completion by 2028 and said the TID petition drive could begin within a week, with signature collection targeted to finish by March. The TID would be initiated by an owners association and requires weighted signatures totaling 50% plus one of lodging revenue to activate collection. Staff said they will provide monthly updates to the Measure J commission and will return with more detailed debt-service scenarios before requesting a Measure J recommendation.

Votes and actions at the meeting were procedural: the commission approved the meeting agenda and the Dec. 18, 2025 minutes (Chair Sipkins abstained from the minutes vote because he was not present). The convention-center item was an informational briefing and no formal Measure J funding decision was made at the meeting.