Invest Palm Desert was established to enhance the City of Palm Desert's ability to promote economic development, facilitate the growth of its businesses that provide high-quality jobs, a strong economic base to support services to its residents, aid in the diversification of the City's economy, and promote an improved quality of life within the City.

Through the Invest Palm Desert program, the Palm Desert City Council has set aside $650,000 to assist new and existing businesses located within the city in expanding. The incentives fall into the six categories below:

• Development and Plan Check Fee Rebate
• Capital Improvements Grant
• High Wage “Move-in” Incentives
• Site Specific Revenue Sharing
• New Development Project Assistance
• Other

Apply Today
To apply, please contact businesshotline@palmdesert.gov or call 760-776-5441.

Additional Resources

• Prevailing Wage
• Awarding Bodies

Applications are currently being accepted until the funding is exhausted. Please review the program guidelines for more information. 

A. Minimum Eligibility Criteria

In order to be eligible for the Incentive Program, an applicant must meet the following criteria:

• Be a business, business owner, lessor, developer, or real property owner within the boundaries of the City of Palm Desert, and in good standing with the City of Palm Desert. Improvements must be of architectural significance or must add a minimum of 20% of the current square footage of an existing location, or 1,000 square feet.
• The business, project or development must be located or provide evidence that it will locate within the Desert Willow Golf Resort, University Park areas or the following zoning districts within the boundaries of the City of Palm Desert; Downtown ("O"), Downtown Overlay ("DO"), Downtown Edge ("DE"), Planned Commercial ("PC") or Service Industrial ("SI"}.
• Demonstrate financial need and offer a clear state of public purpose for participation and consideration to the City in the Incentive Program, including documentation demonstrating a feasibility gap analysis, project shortfalls or other evidence stating the public purpose for participation in the Incentive Program. The applicant must acknowledge that participation in the program will trigger prevailing wage.
• Satisfy at least one of two of the following criteria (in addition to program category criteria in part B below):
  • 1 new permanent full-time job with salaries equal to or greater than 100% of the most recently published Area Median Income (AMI) for a 1-person household in Riverside County, as reported by the California Department of Housing and Community Development (HCD) per $100,000 of incentives; or
  • 2 new permanent full-time jobs with salaries equal to or greater than 90% of the most recently published AMI for 1-person household in Riverside County as reported by HCD per $100,000 of incentives.
• Applicants must receive their entitlements and associated permits after the date of adoption of this Resolution by the City Council (July 14, 2022)
• Applicants must receive their entitlements and associated permits within 6-months of funding approval from the City. In the event an applicant is approved for an incentive and does not commence improvements prior to that time, the applicant forfeits the entirety of the awarded incentives.

B. Types of Incentives Offered - by Category (subject to "Requirements and Limitations" in Section E.)

• Development & Plan Check Fee Rebate:
  •  Applicants may request a rebate of certain City-administered development fees in an amount not to exceed 100% of the total City development fees typically required of the applicant and depending on the character of the project. The amount of the applicant's fees to be rebated will be calculated and rebated to the applicant upon completion of the project. Fees that may be rebated are:
    • Initial or Expedited Plan Check Fees
    • Planning Fees
    • Certain Development Fees

• Capital Improvements Grant:
  •  Applicants may apply for a matching grant of 1:1 from the City up to a dollar amount that totals 50% of the requested hard costs of permanent capital improvements or rehabilitation. Permanent capital improvements can include elements such as facade enhancements, interior capital improvements, or other hard costs associated with rehabilitation, renovation, or redevelopment of a commercial or industrial building or structure. The improvements must be constructed within the zoning districts defined in Section A, herein. Approval of participation and terms of the Capital Improvements Grant program is at the sole and case-by-case discretion of the City Council.
    • The San Pablo Capital Improvements Grant: For properties located along the San Pablo commercial corridor improvements (within zoning districts Downtown ("D"), Downtown Edge ("DE") and Downtown Overlay ("DO") Hwy 111 and Fred Waring Drive, and with a portion of site frontage along San Pablo Avenue and located within attached map, Exhibit B), a matching grant of 2:1 up to a dollar amount that totals up to 66% requested hard costs of permanent capital improvements or rehabilitation will be considered.
    •  A lien will be placed upon the real property associated with the project. In addition to the other requirements listed herein, the applicant must continue to own and operate the project for a minimum of two years from the date of Certificate of Occupancy. In the event the applicant does not perform in accordance with the stated terms of the Incentive Agreement, the property owner will be required to refund the City an amount prorated to the number of days deficient of the Incentive Program requirements.
    • In no case shall the City's contribution exceed $500,000 to an individual project within the Capital Improvements Grant, and in no case shall the City's Contribution exceed $200,000 within the San Pablo Capital Improvements Grant.

• High Wage "Move-In" Incentive:
  •  The City may consider on a case-by-case basis providing assistance to a business that relocates its headquarters operations into Palm Desert from outside the City or to entities from the Palm Desert iHub that locate their HQ operations in the City. The City may provide assistance:
    • In the form of moving assistance of $25,000 per employee (in no case shall the total amount of incentive exceed $500,000). The tech business must relocate its headquarters operation in its entirety and remain in operation as a headquarters in its entirety for a minimum of two years. The business will retain its count of employees for a minimum of two years. Payments will be paid in arrears after providing documentation of the following:
      • Jobs must pay 150% of average wage in Palm Desert as of January 1, 2020 ($48,880 x 150% =$73,200). Applicant is required to provide evidence of such salary(ies) in the form of an anonymized salary roll certified by a third-party accountant and delivered for review to the City Finance Director.
    • Applicants for tech innovation incentives must provide evidence of business operations matching NAICS code(s) in the list in Exhibit C herein. Applicants that operate a business with a NAICS code not listed must provide a statement of purpose which clearly identifies the business as tech based. Approval of participation and terms of the tech innovation incentive is at the sole and case-by-base discretion of the City Council.

• Site-Specific Revenue Sharing:
  • Applicants may apply for a partial rebate of new incremental revenue generated by the Applicants business at a specified development site. Rebates will be conditioned on the City's receipt of the new incremental tax revenue and will be calculated based on the actual revenues for the Applicant's business received by the City. Approval of participation and terms of the Site-Specific Revenue Sharing program is at the sole and case-by-case discretion of the City Council.

• New Development Project Assistance: 
  • The City may consider, on a case-by-case basis, providing assistance with new development projects that include, but are not limited to, land purchase assistance, gap financing, and other public infrastructure investments that create, support, or enhance the public uses of the project. Approval of participation and terms of the New Development Project Assistance program is at the sole discretion of the City Council.

• Ongoing & Other Incentives:
  • The City may provide additions and subtractions to the Incentive Program from time-to-time, the terms of which will be provided at the time of approval.

C. Review and Approval Process:

• Any existing Palm Desert business, real property or building owner, lessor (with owner approval) meeting the minimum eligibility qualifications identified in Section A may submit an Incentive Application along with a written proposal to the Economic Development Director. The proposal shall:
  • Highlight the public purpose and consideration to the City (i.e., jobs, elimination of hazardous condition, etc.) and clearly identify the project finance gap, if present.
  • Provide a general description of the proposed project, type of business, location, number, and type of jobs existing and to be added, projected tax revenue generation (see Section B for qualifying revenue sources), and any other criteria the City may use to evaluate the public benefit of the proposed project. This may include both financial benefits as well as enhancements to the community's overall quality of life and diversification of the City's economic base.
  • Financial summary of the project including, total cost of project, including separate identification of hard costs and soft costs and any other costs associated.
  • A preliminary financial plan, whether the project is funded by equity, or debt, or a combination of both.
  • Address of the required qualifications of Section A that are being proposed.
  • Identify the incentives requested and the estimated value of each requested.
• Upon receipt of the proposal, the City Manager will review the request and forward a copy of the application to the Economic Development Director for review. The Economic Development Department will complete a fiscal analysis and review the application and proposal along with the requested incentives.
• Based upon the fiscal analysis and review of project by the Director of Finance, City Attorney and various other City staff, negotiation with the applicant, and consideration of the overall public benefit of the proposal and proposed incentives the Economic Development Director shall prepare a proposed incentive package qualification report for City Manager or City Council consideration and approval.

D. Value of Incentives and Approval Process:

• The total value of the incentives offered to the applicant will depend on the particular attributes of each proposal, and shall be determined on a case-by-case basis, with importance placed on the public economic benefits that will accrue to the City by expansion of the existing business or employees. The City retains the right in its sole discretion to reject any proposal.
• After review of the application by the City's Economic Development Department shall perform an analysis of the applicant's requested incentives. Applicants are encouraged to provide economic impact studies or analysis for the City's consideration. The City may undertake those studies or analyses at the City's or, with consent of the applicant, applicant's cost (to be deducted from the amount received by the applicant and/or reimbursed to the applicant from the City).
• After review by the Economic Development Director, recommendations will be provided to the City Manager or City Council for further qualification consistent with the Incentive Program and any applicable laws. If the applicant meets the criteria established by Section A of Incentive Program and sufficient information is gathered to justify the City's provision of an incentive package, the Economic Development Director shall cause to be prepared an Incentives Funding Agreement that shall be signed by the City Manager, or Mayor, as applicable.
• Applications requesting less than $25,000 may be approved by the City Manager. However, the City Manager may require City Council approval of any applications, including those less than $25,000. Any incentive listed as case-by-case or combination of incentives requested that include those listed as case-by-case will require review and approval by the City Council. City Manager approvals will not exceed
  $250,000 in aggregate for any given year of the Program (however, no one applicant will be approved for more than $25,000 without the City Council's approval).
• Any incentive valued at $100,000 or more must be approved consistent with the requirements of Government Code 53083 (effective January 1, 2014). In no case shall the City provide incentive in violation of 53084 and 53084.5.
• The applicant must receive all other project entitlements and permits as required.

• Incentives are offered on a case-by-case basis and at the sole discretion of the City Council.
• Incentives will be offered and based upon the availability of City funds as appropriate by Council on a year-to-year basis. Applications that qualify when funds are no longer available may be placed on a waitlist for future fund availability but are not guaranteed funding.
• Applicants must commence the project as described within 6 months of City funding approval. In the event an applicant receives entitlements after the date of adoption and does not commence the project within 6 months the applicant is no longer eligible for the incentives and agrees to forfeit any and all incentives awarded.
• The incentives herein may not be applied retroactively except for when allowed as described herein. Applicants should not secure City permits prior to receiving approval of their funding request.
• Incentives and/or incentive packages may trigger a requirement to pay prevailing wages. Applicants are required to abide by prevailing wage laws, which apply to construction projects funded in whole or in part with public funds, by State law. Applicants will be required to agree to indemnify, defend and hold the City harmless for any claim that prevailing wage was applicable and not adhered to. Applicants should seek professional advice regarding prevailing wage requirements.
• City reserves the right to reject any or all proposals.
• Applicants are highly encouraged to seek legal representation to pursue an incentive under this Program.

F. Required Agreement Provisions:

• To receive an incentive under the Incentive Program, Applicants will be required to enter into an agreement with the City.
• Agreements prepared in furtherance of the selected Incentive Program may include the following provisions and others in the discretion of the City:
  • Terms and Conditions of the incentive package, including timelines for payment dues, reimbursements, etc., may be applicable to the incentive package.
  • Annual Monitoring: Sufficient monitoring of the applicant's continued eligibility of the incentives offered under the Incentive Program. For example, applicants receiving incentives for the creation of additional jobs, paycheck stubs or other proof that individuals continue to be employed will be required for a length of time deemed appropriate for the parties. Data provided can support reporting under Government Code 53083 requirements, however, a separate and annual report must be filed with the City and the responsibility of such report lies solely with the applicant. Failure to report can result in forfeit of incentives. Applicants seeking Capital Improvements agree to regular inspections by City staff and will require review upon completion that the design agreed upon was constructed.
  • Records Open to Inspection: The City will have a right to inspect, upon a minimum of 48 hour advance notice, financial records maintained by the applicant pertaining to incentives under the Incentive Program.
  • Indemnification: Applicant shall indemnify the City for claims related to the implementation of the agreement.
  •  Security for any loans, grants or deferrals or other incentives.
  • Contractually agree to continue operation for the duration of the incentive(s) or be required to return the value of the incentive(s) provided or per terms of the mutually negotiated Incentives Agreement.
  • Applicant shall comply with all local and state regulatory requirements, e.g. California Environmental Quality Act, local zoning requirements, etc.

• Any other agreements required by the incentive package shall be approved by the City Council and shall be prepared based on the agreement negotiated by the parties, including but not limited to, deferral and loan agreements, the Incentive Agreement.

G. General Provisions:

• No additional incentives will be offered unless a Resolution expanding the Incentive Program is adopted by the City Council.
• This Program will provide funds as long as they are available and subject to appropriation by the City Council year-to-year, and as applications are deemed eligible by the City. In no case is the City obligated to provide funding to applications it does not deem in the public benefit, nor for any application that exceeds the fund balance. The City, in its sole opinion, reserves the right to reject any application for any reason.
• The Incentive Program may be modified by the City Council at any time.

The Autism Certificate Reimbursement Program (ACRP) is a groundbreaking initiative, making Palm Desert the first in the Coachella Valley to assist businesses in becoming Certified Autism Destinations through the International Board of Credentialing and Continuing Education Standards (IBCCES). This program offers a one-time reimbursement of $2,500 towards the certification fee, providing essential support for businesses to enhance accessibility for individuals with autism. Currently in Phase I, the program focuses on supporting hospitality and attraction-based businesses in obtaining their certification. This initiative reflects the city's commitment to enhancing tourism and ensuring that all visitors feel welcome.

Requirements

• Business must operate within Palm Desert city limits and be in good standing with the City.
• Businesses must first successfully achieve CAC certification through IBCCES to qualify for reimbursement.
• 80% of the business's employees must complete the required training for certification.
• For businesses with more than 25 staff members, a CAC audit is mandatory (except for non-resort hotels).
• Eligible Businesses:
  • Priority I: Hospitality and Tourist Attractions
  • Priority II: Retail and Restaurants
  • Priority Ill: Small Enterprises

Reimbursement Process

• Businesses must submit an application to the City after completing CAC certification.
• The City must receive verification of successful certification from IBCCES.
• Upon confirmation, the business will receive a one-time reimbursement of $2,500 towards the certification fee.

Apply Today
To apply, please contact businesshotline@palmdesert.gov or call 760-776-5441.

The Business Emergency Assistance Program (BEAP) is a key support initiative by the City of Palm Desert designed to help local businesses recover from unforeseen emergencies. With a focus on small to medium-sized businesses, BEAP offers financial relief by waving up to $10,000 in city-imposed fees, including permits, licenses, and inspections.

Additionally, the program provides expedited permit processing and relocation assistance to businesses affected by incidents such as unforeseen disasters. BEAP underscores Palm Desert's commitment to fostering a resilient business environment and supporting local enterprises during times of need.

Apply Today
To apply, please contact businesshotline@palmdesert.gov or call 760-776-5441.

Grantees will be required to do/submit the following:

• Businesses must be licensed and operating within Palm Desert city limits.
• Businesses must demonstrate adverse impact from an emergency (e.g., natural disasters, public health crises, significant structural damage such as fire or flood).
• Priority consideration will be given to small and medium-sized businesses with fewer than 50 employees.
• Business must be established for 3 years and be in good standing with the City of Palm Desert to receive assistance.
• Applicants must provide supporting documents such as financial statements, tax returns, or other relevant records to substantiate their request for fee waivers.

Fee Waivers

• The program will waive a variety of City-imposed fees, including but not limited to:
  • Building permit fees
  • Inspection fees
  • Other regulatory fees imposed by the City
• The maximum waiver per business is $10,000.
• Fee waivers will be granted on a first-come, first-served basis, depending on available funding.

Application Process

• Applications will be reviewed by a committee from the City's Economic Development Department to ensure impartiality and adherence to established guidelines.
• Applicants must clearly demonstrate direct impact from the emergency, such as:
  • Physical damage (photos, repair estimates)
  • Operational disruption (temporary closure records)
• Financial documents, tax returns, and other records will be required to validate the fee waiver request.
• Approved waivers will be applied directly to the applicable City fees related to the business's recovery.

Evaluation Guidelines

Criteria for Assessing Impact

• Applications must demonstrate direct effects from the emergency.
• Provide evidence such as photos, repair estimates, or structural damage documentation.
• Records of temporary closures or major interruptions to business activities.

Financial Documentation

• Recent balance sheets and income statements to showcase financial hardship.
• Business tax returns from the prior year to evaluate overall financial health.
• Bank statements, invoices, or other relevant records detailing the financial impact of the emergency.

Fee Waiver Application and Approval Process

• Applicants must list the City fees they want waived and provide supporting documentation.
• Approved fees will be applied directly to the business's rebuilding or recovery efforts, facilitated by the City Finance Department.

Program Duration

• BEAP will be available for two years from the date of approval. Extensions may be granted based on business community needs and fund availability.
• The program has a total budget of $100,000, with fee waivers allocated on a first-come, first-served basis.

ECONOMIC DEVELOPMENT SUBSIDY REPORT

(GOVERNMENT CODE SECTION 53083) 

REGARDING AGREEMENT FOR DISBURSEMENT AND USE OF FUNDS

BETWEEN THE CITY OF PALM DESERT

AND

IN CONNECTION WITH THE RE-ESTABLUSHMENT OF PAPA DAN’S PIZZA AND PASTA AT 73011 COUNTRY CLUB DRIVE F-1, PALM DESERT, CA 92270

Pursuant to Government Code Section 53083, the City Council of the City of Palm Desert must hold a noticed public hearing and, prior to the public hearing, provide all of the following information in written form available to the public including through the City’s website, regarding a proposed economic development subsidy to be provided by the City of Palm Desert (“City”) pursuant to a Sharing Agreement for Disbursement and Use of Funds (“Agreement”) by and between the City and Fine Quality Foods Inc. dba Papa Dan’s Pizza and Pasta (“Business”).

This Economic Development Subsidy Report (“Report”) is being published on the City’s website in advance of the public meeting to be held on February 27, 2025. The purpose of this Report is to provide the information to inform the public about the subsidy provided under the Agreement, as required pursuant to Government Code Section 53083. This Report shall remain available to the public and posted on the City’s website until the end of the economic development subsidy, as further described in Section 2 below.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

This Agreement is between the City and the Fine Quality Foods Inc. dba Papa Dan’s Pizza and Pasta, who will own and operate the business benefitting from the economic development subsidy.

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The Agreement will go before the City Council on February 27, 2025. The Agreement will commence upon execution by both parties, following approval by City Council. The Business is required to operate for a period of five (5) years. The operational requirements of the agreement will end five (5) years from the commencement of operation of the Business (the deadline for which is July 1, 2025, at the latest), unless earlier terminates pursuant to the terms of the Agreement. The Agreement itself does not have an explicit end-date. The subsidy is provided in a lump-sum up front upon the Business meeting certain conditions of funding.

3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The economic development subsidy to be provided by the City consists of a payment to be made by the City to the President, from the Invest Palm Desert Program for capital improvements. The amount of Two Hundred Thousand ($200,000) will be disbursed once approved by the City Council and once the City staff administering the Agreement have determined the funding conditions are satisfied.

4. A statement of the public purposes for the economic development subsidy.

The public purposes for the economic development subsidy include: (i) restoring a long-lasting community fixture; (ii) the contribution to the economic vitality of the City; (iii) generation of increased transient occupancy, sales and use taxes and other revenue to the City; (iv) creation and provision of additional jobs in the City; and (v) otherwise improve economic and physical conditions in the City. Taken together, these benefits would enhance the quality of facilities, goods and services available to the City and its residents, such as police, fire, street maintenance, and parks and recreation programs.

5. The projected tax revenue to the local agency as a result of the economic development subsidy.

Based on historical sales tax revenues, staff projects that Papa Dan’s will generate approximately $100,000 in sales tax revenue to the City in the next 5 years. The City is anticipated to net over $87,000 in sales tax revenue over the next 5 years. The total amount of $200,000 will be replenished within a 10-year period.

6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

It is anticipated that a total of 40-45 full-time positions will be created as a result of the City’s economic development subsidy of the capital improvement project for the Papa Dan’s Pizza and Pasta Restaurant.

To assist with security for Palm Desert businesses/property owners, the City of Palm Desert has set aside one-time funding for grants of up to $500 per business. Grants will be paid as a reimbursement to businesses/property owners based on actual costs for the purchase and installation of security cameras.

Apply Today
To apply, please contact businesshotline@palmdesert.gov or call 760-776-5441.

Grantees will be required to do/submit the following:

• Camera systems must be purchased and installed after March 10, 2022, to be eligible for the grant.
• Palm Desert Security Camera System (SCS) Grant application to City Economic Development division staff for review of camera placement
• Register the SCS with the Riverside County Sheriff's Department (www.riversidesheriff.org/761/Security-Camera-Registration-Program).
• SCS must remain in place for three (3) years unless replaced by an upgraded system at the sole expense of the business/property owner.
• Complete an agreement with the City of Palm Desert and submit the following
  • A current City of Palm Desert Business License as of application date.
  • A completed W-9.
  • Proof of payment (up to $500) for purchase and installation of SCS.
  • lmage(s) of the installed SCS.
  • Proof of authorization for the signatory to execute legal documents on behalf of the business (i.e. most recent tax return, articles of incorporation, or Statement of Information).
  • Proof that all required City of Palm Desert permits, if any, have been attained. Contact the City's Permit Center to determine if any permits are required.

Fees
There are no fees associated with this grant unless permits are required.

Grants will be issued on a first-come-first-served basis based on receipt and approval date of Unite Palm Desert Security Camera System Grant application. Applications will be accepted as long as funding is available up to $20,000.

The City of Palm Desert is home to many bicycle enthusiasts and, as such, is developing a program to assist commercial property owners in providing bicycle racks to their patrons. The Bicycle Rack Incentive Program provides property owners with a City-funded bicycle rack on their property at no cost. 

Apply Today
To apply, please contact businesshotline@palmdesert.gov or call 760-776-5441.

There are no fees associated with this program, unless there are permits or a prorated repayment is required.

Application Deadline

• Bicycle racks will be purchased and installed on a first-come, first-served basis based on receipt and approval date of an application.
• Applications will be accepted as long as funding is available.

To assist Palm Desert commercial businesses/property owners, the City of Palm Desert has set aside one-time funding for grants in the amount of up to $500 per business to install mister systems. Grants will be paid as a reimbursement to businesses/property owners based on actual costs of the purchase and installation of the system.

Apply Today
To apply, please contact businesshotline@palmdesert.gov or call 760-776-5441.

Grantees will be required to do/submit the following:

• Submit Unite Palm Desert Mister System (MS) Grant application to City Economic Development division staff for review of mister placement.
• MS must be purchased and installed after January 11, 2024 to be eligible for the grant.
• MS must remain in place for three (3) years unless it malfunctions or is replaced by an upgraded system at the sole expense of the business/property owner.
• Complete an agreement with the City of Palm Desert and submit the following
  • A current City of Palm Desert Business License as of application date.
  • A completed W-9.
    • Proof of payment for purchase and installation of MS.
      • lmage(s)/Photographs of the installed MS.
• Grants will be issued on a first-come-first-served basis based on receipt and approval date of Mister System Grant application.
• Applications will be accepted as long as funding is available.
• Proof of authorization for the signatory to execute legal documents on behalf of the business (i.e. most recent tax return, articles of incorporation, or Statement of Information).
• Proof that all required City of Palm Desert permits, if any, have been attained. Contact the City's Permit Center (760-346-0611) to determine if any permits are required.

Fees
There are no fees associated with this grant unless permits are required.

Application Deadline

• Grants will be issued on a first-come-first-served basis based on receipt and approval date of Mister System Grant application.
• Applications will be accepted as long as funding is available.