The Indio City Council voted unanimously on December 3 to impose a 45-day urgency moratorium on new gas station applications, citing the need to reassess land use priorities, evaluate saturation in key corridors, and develop clearer standards for future development. Ordinance 1828, introduced under the state’s emergency zoning provisions, immediately suspends new permits or applications for new stations, as well as expansions of existing ones, while allowing six previously approved or pending projects to proceed.
The decision was the culmination of more than six months of debate prompted by a series of contested projects, including the approval of a Maverik station on appeal after the Planning Commission had denied it. That reversal led the council to direct the Planning Commission to study the broader issue. In September, the commission recommended both a moratorium and a feasibility study in order to prevent further approvals that could conflict with future zoning reform.
City staff presented a detailed analysis at the December 3 meeting. Community Development Director Brian Halvorson noted that Indio has experienced unusually rapid growth in its fuel station sector. The city had 17 stations in 2020. It now has 31 operating stations, with five more approved but not yet built and one pending review. Halvorson told the council that, while the urgency ordinance is limited to 45 days, the allotted period is insufficient to complete a full analysis or develop comprehensive recommendations.
City Manager Bryan Montgomery added that staff would need council guidance to begin more extensive study immediately. He noted that extended studies of saturation, environmental considerations and corridor-specific land use could require consultant assistance and a longer moratorium.
Growth Outpacing Demand in Indio
During the public comment period, speakers highlighted the scale and speed of recent growth. Among them was Toni Merrihew, Senior Vice President and Chief Financial Officer for Chandi Group USA, a major operator in the regional fuel market. She stated that over the past 2.5 years, the number of gas stations in Indio had increased from 22 to more than 31. She added that this represents a 40 percent increase that far exceeds population growth, traffic increases or any reasonable projection of fueling demand.
Merrihew emphasized that Chandi Group’s support for the moratorium does not stem from a desire to limit competition. She described the company’s founder as someone who welcomes competition, viewing it as motivation to compete even harder. Her concern instead focused on the rapid expansion of stations across the city and the absence of up-to-date planning tools that would allow Indio to make informed decisions.
She also raised questions about a previously cited estimate of $18 million in annual unmet demand for fuel services. According to that analysis, the city would require additional stations to meet projected market capacity. Merrihew challenged the methodology behind that figure and stated that she would be surprised if the city’s recently approved Walmart gas station alone does not generate that amount in annual revenue once operational. She used this point to argue that the data used to justify additional projects is incomplete and that the moratorium provides the city with a necessary opportunity to review those assumptions. She also noted the issue of basing unmet demand on dollars rather than gallons of fuel, as gasoline prices can fluctuate significantly.
Merrihew also warned that unchecked growth might lead to long-term vacancies as smaller independent operators are strained by increased competition from larger, more modern facilities. Abandoned gas stations, she said, pose environmental and redevelopment challenges that the city should anticipate before granting additional approvals.
Calls for Modern Zoning Tools
Former Indio Planning Commissioner Jackelyn Lopez, a longtime resident, provided detailed remarks urging the council to use the moratorium as the first step toward comprehensive zoning reform. Lopez noted that other California cities, including Petaluma, Rohnert Park and Santa Rosa, have implemented successful long-term strategies after first establishing temporary pauses similar to the one under consideration in Indio.
Lopez pointed to specific corridors where saturation is already evident. Highway 111, she said, is heavily built out with fueling stations. Indio Boulevard, an older commercial corridor, faces ongoing compatibility challenges because stations back up to homes and other sensitive uses. She added that Jackson Street, Monroe Street, and the areas along Avenues 44 and 50 continue to face new development pressure without spacing standards, corridor caps, residential buffers, electric-vehicle infrastructure requirements, or saturation thresholds.
She stated that these regulatory tools are common throughout California and essential to ensuring that new stations align with long-term planning goals. Lopez also addressed the unmet demand figure referenced in earlier presentations. She explained that the number was provided without a clear methodology, corridor-level mapping or real-world context. Like Merrihew, Lopez explained that modern fuel stations typically generate between $12 and $16 million in annual gasoline sales revenue, meaning the cited figure could cover only one or two stations. Without a full saturation study, she argued, the number cannot be used responsibly to justify continued construction.
Lopez concluded that doing nothing would expose neighborhoods across all five city council districts to inconsistent decisions. She described the moratorium as a tool to restore stability and enable Indio to develop zoning rules that reflect community values and future transportation needs.
Indio City Council Seeks Clarity Before Approving More Stations
Council members expressed consensus that the city must step back and gather more data before making additional decisions. Several members commented that some areas of the city appear overbuilt, while others may still have capacity for stations, particularly near future growth areas or highway interchanges. At the same time, they noted that stations should not back up directly to homes and that the city must prevent patterns in which residents find industrial uses directly behind their backyards.
Some council members also discussed amenities, stating that new stations should serve broader community needs. They cited examples of stations that offer fresh food, produce, or neighborhood market functions in addition to fuel. Some members suggested that stations should include electric vehicle chargers and higher design standards, including enhanced landscaping and building quality.
Others also acknowledged that staff workload is already significant and that the moratorium is necessary to allow proper study. The council also agreed that 45 days is insufficient to complete the required work and indicated they would likely extend the moratorium at the next meeting.
Next Steps
Staff will return to the council on December 17 with an update and recommendations to extend the moratorium beyond its initial term. The extension could be granted for up to 10 months and 15 days, with the option to extend by an additional year if needed.
The council emphasized that the purpose of the moratorium is not to restrict business activity but to ensure responsible planning rooted in clear data and modern zoning principles. Both Merrihew and Lopez echoed this view. Merrihew described the moratorium as a reasonable, temporary measure that allows Indio to protect land resources and prevent future closures of small independent stations. Lopez described the pause as a pro-data, pro-planning and pro-fairness measure designed to prevent decisions that would undermine neighborhood compatibility and long-term land use goals.
As the city prepares for its December review, officials and residents appear united in at least one respect. Indio must understand the full implications of its rapid growth in fuel stations before approving any additional projects. The moratorium marks the first formal step in that process. It signals a shift toward a more cautious, data-driven approach to shaping the city’s commercial corridors and its evolving transportation landscape.
