The city of Palm Desert is navigating the complexities of maintaining its popular dining deck program along El Paseo while planning significant street improvements. The City Council’s recent meeting on May 23 shed light on this delicate balancing act, highlighting both the economic benefits of outdoor dining and the logistical challenges posed by upcoming street rehabilitation projects.
Background
The dining deck program, which extends outdoor seating onto public rights-of-way, was initially introduced to support local businesses and enhance the dining experience. In November 2023, the City Council extended the program through June 2026, updated design guidelines, and directed staff to develop a licensing agreement for using the public right-of-way.
Street Rehabilitation Project
The El Paseo Street Rehabilitation Project aims to resurface the roadway from Highway 74 to Highway 111, improve mid-block crossings, and enhance overall accessibility. This project is divided into two phases to minimize disruption:
- Phase One (Summer 2024): Focuses on ADA curb ramps, driveways, sidewalks, and drainage structures.
- Phase Two (Summer 2025): Includes improvements to the asphalt roadway and installation of additional mid-block crosswalks.
Dining deck operators expressed concerns about the removal and reconstruction costs associated with the project. To address these concerns, the City has decided to extend the project over two summers, allowing operators to budget and plan for deck removal by mid-2025.
Dining Deck Lease and Licensing Agreement
Another significant aspect discussed was the lease rate for using the public right-of-way. Initially, a 50% market lease rate was proposed. However, after meetings with dining deck operators, who raised concerns about costs and the seasonal nature of deck use, staff recommended a 25% market lease rate. The city council approved the staff recommendation for the 25% rate on a three-to-two vote. Mayor Karen Quintanilla and Councilmember Kathleen Kelly voted against the rate as they preferred a higher one.
The blended average market rate, based on comparable areas like San Pablo Avenue and Highway 111, was calculated at $28.31 per square foot per year. Under the proposed 25% rate, restaurants would pay $7.08 per square foot annually, generating an estimated $29,039 for the General Fund for FY 2024-25.
Here is an overview of the projected annual lease costs for several restaurants under the 25% rate:
- Armando’s Bar and Grill: $6,292
- Daily Grill: $1,798
- Kitchen 86: $4,494
- Mamma Gina: $3,921
- Piero’s Pizza Vino: $2,251
- Sweet Basil: $4,225
- The Fix: $6,058
