Entertainment Permits

The City of Palm Desert requires any business operating with entertainment on a regular basis as part of the normal course of business to apply for an Entertainment Site Plan, per PDMC Section 5.100.030. Entertainment includes, but is not limited to, any and every form of live entertainment, performance, live music, singing, live disc-jockey-hosted music (DJ), karaoke, dramatic or poetic reading, performance art, or any other act or exhibition in which one or more persons perform for the purpose of entertaining, amusing, and gaining the attention of patrons, guests, or invitees to the business. The Entertainment Site Plan application can be found on the City of Palm Desert’s Planning Division’s Application page, found here and requires information on location, hours, entertainment description, employee information, and a site plan. Businesses can reach out to the City’s Planning division at 760-776-6483 and/or planning@palmdesert.gov for any questions or assistance to complete the Entertainment Site Plan.

Business License

The City of Palm Desert contracted the business license applications and payments with a third-party processor, HDL, back in 2021. The City would like to remind all businesses that you are required to have an active business license to operate in Palm Desert, and you are responsible for renewing the license every year.

Please take a moment to see if you have a business license, or if the license has expired. If so, please reach out to HDL Business License Center online, call (442)325-3954, or email palmdesert@hdlgov.com to apply for a license. If the license expired, you will be responsible for paying late fees. The City is seeing an increase in expired business licenses. Click here (City Site) to learn more and find business license forms.

Code Compliance

The City of Palm Desert’s Code Compliance Division works with property and business owners to preserve the City’s visual and safety standards through property maintenance and adherence to the City’s Municipal Code and ordinances.

As we have been receiving numerous calls and emails concerning prohibited signage and an inflex of outdoor sales, Code Compliance officers will begin surveying commercial properties to ensure compliance with the Municipal Code. Note that outdoor sales are only permitted in certain zones with a permit. For a detailed list of prohibited signs and information regarding the permitting process, please click here (City Site).

The type of business and the merging of suites have unforeseen impacts on the tenant when applying for permits for a remodel of the leased space. The city encourages Landlords and Leasing Agents to encourage potential tenants to discuss any remodels with the Development Services Center (DSC).

Triggers include:

• Planning Division - Zoning
• Is the new type of business allowed at the location. If no, business type cannot open at that location.
• Is the allowing of a business type require a project application with Planning for Land Use or similar requirement imposed by zoning code prior to applying for a Tenant Improvement permit (aka a permit to remodel leased space(s)).
• Is there sufficient parking.
• Building & Safety Division and Fire Department Change of Use
• Building and Fire codes are used to review and approve a remodel.
• The codes have different requirements based on Occupancy.
• Occupancy Types are categories in the code of how a building or suite is being used and the occupant load (aka number of people that can occupy the space).
• When the new business is in a different occupancy type category then the previous business, this is called a Change in Use.
• A change in use may trigger specific aspects of the building or suite to come into compliance with the current codes.
• This may include areas of the building or space not in the remodeled areas. Such are more restrooms and exits.
• In some cases, with Fire Department the installation of a fire suppression system if existing building is not equipped.
• What is standard with all commercial remodels is a review of accessible parking, path of travel, seating, counters, and restrooms.
• CVAG’s TUMF impact fee
• The city must assess and collect TUMF fee for CVAG on Building permits when there is a change of use based on their categories.
• The most common is office space(s) becoming retail. Retail are merchant and restaurant establishments.
• These fees can be very expensive, anywhere from $12,000 and up.
• Opening
• Often, we find that a tenant has a target opening date of about 1 to 3 months when they contact the city and they do not have plans ready to submit for permit.
• Hiring a professional to design a plan may take one or more months.
• The process of getting permit can be 1 to 6 months depending on the design professional to accurately draw plans to code and attain outside agency approvals.
• Outside agencies, such as Fire Department, do not have to adhere to our review timelines. However, their approval is required to release the Building & Safety permit for construction.

Impacts:

• Unforeseen city fees
• Additional construction costs
• Fees and approval from other agencies that require permit
• Non-city related fees
• Delay opening and/or not able to open

Closing the Gap:

• Encourage potential tenants to come to the DSC to discuss their proposed business at the location in mind.
• Is the business allowed with out going through additional applications and/or process.
• What is the cost, and time if additional approvals are needed prior to applying for the remodel permit.
• Be prepared to provide the address and know what the existing or previous business type of the location.
• Inform staff about desired opening date.
• In turn DSC staff will inform the tenant of:
• The allowable use expectation
• If any outside agency approvals are required and provide contact information
• Potential costs that may not be foreseen and code requirements
• Discuss timing and best practices to be able to open by their desired target date.

Contact us at DSCinfo@palmdesert.gov or in person Monday through Friday from 8am to 5pm.

Incentives for Palm Desert Businesses

Click here learn more about the following programs:

• Invest Palm Desert
• Unite Palm Desert Security Camera System Grant Program
• Bicycle Rack Incentive Program
• Childcare Business Resources 

Other funding sources

Whether you are starting a new small business or looking to grow the one you already own, finding funding can be a challenge for businesses of all sizes. We'd like to help give you some resources if you are looking for a small business loan or grant.

Government Grants:

• Employee Retention Credit. The Employee Retention Credit (ERC), sometimes called the Employee Retention Tax Credit, is a stimulus program established by the CARES Act. This refundable tax credit functions as a grant that helps businesses impacted during the COVID-19 pandemic. Eligibility guidelines are available on the IRS website.

• State of California Homeless Hiring Tax Credit. The Homeless Hiring Tax Credit (HHTC) can be accessed for tax years starting from January 1, 2022, until December 31, 2026. Employers are eligible for a tax credit ranging from $2,500 to $10,000 for each qualifying employee, determined by the total hours worked during the tax year. Click here to learn more.

• Riverside County Small Business Thrive Program. Riverside County has been allocated American Rescue Plan Act (ARPA) funding to support and help rebuild the Riverside County business startup ecosystem and support businesses that were negatively impacted by the COVID-19 pandemic. Funding will provide small business startup assistance and support for existing businesses to stabilize and grow by providing needed technical and grant funding for operational costs. To learn more, please visit https://rivcoed.org/thrive-program.

Resources for Veteran Entrepreneurs:

1,713,151 veteran-owned U.S. businesses are contributing $1 trillion in annual revenue. SCORE is dedicated to helping veteran entrepreneurs. Leverage their resources and mentors, some of whom served in the military, and understand the challenges and opportunities. Please visit their website for more information.

Business Rebates:

SoCalGas is offering thousands of dollars in qualifying energy-efficient natural gas equipment rebates. Apply Today!

California Legislation

Reminder – Starting July 1, 2025

With AB 2863, companies offering auto-renewal services must give customers the option to cancel the subscription by the same method they used to subscribe, beginning July 1.

AB 2202 requires short-term rental (STR) operators to disclose all additional fees or charges guests must pay if they don’t perform obligatory cleaning chores at the end of their stay, beginning July 1.

Legislative to Watch

Restaurants

AB 1065 – titled the "Consumer Inflation Reduction and Tax Fairness Act," aims to prohibit credit card companies from charging interchange fees—commonly known as swipe fees—on the tax and gratuity portions of electronic payment transactions. This legislation seeks to alleviate financial burdens on merchants who are currently charged fees on amounts they collect on behalf of the government or as tips for employees.

AB 592 (ordered to third reading) - Seeks to make permanent certain regulatory flexibilities granted to restaurants during the COVID-19 pandemic, particularly concerning outdoor dining and alcohol service. Key provisions include, permanent expansion of alcohol service area, continuation of outdoor dining accommodations and modifications to retail food facility regulations.

AB 1245 - Known as the California Restaurant Reservation Anti-Piracy Act, aims to prohibit unauthorized third-party services from listing or selling restaurant reservations without the establishment's consent. The bill addresses the growing issue of "reservation scalping," where entities use bots to secure high-demand reservations and resell them at inflated prices, leading to consumer deception and financial harm to restaurants.

AB 895 – Know as the Quick-Service Restaurant Affordability Act of 2025, proposes a tax credit to support fast food restaurant operators in California.

AB 671 - Proposes a streamlined process for approving restaurant tenant improvement plans in California. The bill allows licensed architects or engineers, termed "qualified professional certifiers," to self-certify that interior renovation plans for restaurants comply with applicable building, health, and safety codes.

Consumer

SB22 (ordered to third reading) – Introduced in December of 2024, the bill would make a gift certificate with a cash value of less than $25, redeemable in cash for its cash value.

Learn About Surplus Land Sale

The State of California’s Surplus Land Act requires that all City of Palm Desert and Successor Agency to the City of Palm Desert surplus properties be sold through a Notice of Availability process. As properties owned by the City of Palm Desert come onto the market, they will be listed on the Engage Palm Desert website. Please visit the website to learn how to automatically receive a Notice of Availability when a new property comes available.