January 24, 2025

Palm Springs City Council Rejects Appeal of Controversial Warehouse Project

By Bob Marra

Rendering of an approved 739,360-square-foot warehouse in Palm Springs

After a contentious debate, the Palm Springs City Council voted 4-0 on January 23 to reject an appeal opposing the construction of a massive 739,360-square-foot warehouse at the northwest corner of North Indian Canyon Drive and 19th Avenue. Councilmember Grace Garner was absent for the vote.

The project, spearheaded by PS Canyon Development, has faced significant community pushback due to environmental and health concerns. An environmental impact report (EIR) concluded the warehouse’s greenhouse gas emissions and transportation demands would result in “significant impacts to the environment that cannot be mitigated.” Despite these findings, the Planning Commission, which approved the project in December, adopted a Statement of Overriding Considerations, citing the economic benefits of the development.

Community Concerns and the Appeal

The appeal, led by local historian and author Peter Moruzzi, challenged the Planning Commission’s decision, arguing that the stated benefits, including job creation and potential tax revenue, do not outweigh the environmental harm. “We will be stuck with these massive, polluting concrete boxes for decades to come,” said Moruzzi. He and other community members highlighted the detrimental effects similar warehouses have had in the Inland Empire, such as increased traffic, worsening air quality, and higher cancer rates.

During the public hearing, several residents voiced concerns about the project’s impact on the city’s air quality, health outcomes, and scenic desert views. Critics also questioned whether the warehouse’s potential revenue—a projected $1 million in property tax annually, with additional taxes if used as a fulfillment center—justified the long-term environmental costs.

The City’s Position

City officials defended the project, emphasizing that the site is within a zone north of Interstate 10 designated for industrial development. Mayor Ron deHarte underscored the city’s efforts to contain such large-scale developments to this area, saying, “The council has limited the area we could possibly have one of these large-scale warehouses to this space.”

The council also cited legal considerations, stating that the developers followed all zoning and environmental guidelines established in 2022 when the city amended its Municipal Code to allow large warehouses by right in the M-2 industrial zone.

Mitigation Measures and Commitments

To address environmental concerns, the project includes several mitigation measures. The developers have committed to using carbon-free power, installing solar panels across all available roof space, and transitioning to an electrified truck fleet in alignment with state mandates. Additional features, such as bike storage and employee-friendly amenities, were added at the Planning Commission’s request.

The Sierra Club, often critical of such developments, supported the project after securing agreements with the developer to enhance environmental measures.

Broader Context

The new warehouse is part of a broader surge in industrial development across Southern California. The Inland Empire alone has seen over 1 billion square feet of land converted to warehouses in recent years, with significant economic and environmental implications.

City officials view the project as a pivotal opportunity to diversify Palm Springs’ economy, which has traditionally relied on tourism. Former City Manager Justin Clifton previously noted the potential for industrial development to double the city’s sales tax revenue.

Looking Forward

With the council’s decision, the project is able to proceed, promising 700 permanent jobs and substantial tax revenue. However, lingering community concerns suggest ongoing scrutiny as the project moves into the construction phase.

The decision illustrates the tension between economic growth and environmental stewardship in rapidly developing regions like Palm Springs. While the council has closed the chapter on this appeal, the debate over large-scale industrial projects in the desert is far from over.

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