Council adopts resolution of intent to study enhanced infrastructure financing district for downtown and freeway corridor

The Desert Hot Springs City Council voted to adopt a non‑binding resolution of intent on June 16 to pursue analysis and next steps toward forming an Enhanced Infrastructure Financing District (EIFD) covering downtown and parts of the freeway corridor.

Consultant Cosmont presented a SCAG‑funded feasibility study that modeled multiple scenarios for capturing a portion of future property‑tax increment from targeted areas and using that revenue to fund public infrastructure. Cosmont estimated present‑value funding capacity in the study’s scenarios ranging from roughly $58 million to higher nominal sums depending on the percentage of growth captured and whether Riverside County agreed to partner.

Joe Diegas of Cosmont described the tool as a way to “earmark a piece of my future property‑tax paycheck within this boundary” for infrastructure—water, sewer, roads, parks and affordable housing—without increasing tax rates. He noted that partnerships with counties are optional but can materially increase funding capacity.

Councilmembers supported moving forward with outreach and appointed members to the next steps. They emphasized the opportunity to attract state grant funding and to finance projects that would catalyze housing and economic development in priority corridors while preserving general‑fund revenues for day‑to‑day operations.

The council’s resolution does not create the district. It authorizes staff and consultants to pursue the statutory sequence of studies, public notices and hearings required for formation and, if desired later, for bond financing and project execution. The SCAG grant will fund the next phases of analysis if the city pursues formation and, if county partnership is sought, staff will begin those discussions.