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“The Warehouse Price”: An industry on the move in Palm Springs

From the ports through the Inland Empire, this industry looks like it is just beginning to solidify its foothold in the Coachella Valley. 

California’s trade, transportation, and utilities sector are the second-largest industry in the state.

It flourished at the forefront of the pandemic as lifestyles and consumer buying habits went online.

From its initial surge, the inland empire reaped the rewards of jobs, tax, and revenue.

But some city leaders say they need to get what they bargained for.  And people at home say they're getting more than they expected. 

A study on the transportation and warehousing in shows overall employment in the sector increasing 83 percent in the Inland Empire, and 74 percent in Riverside County. 

Today, the inland empire now has more than 4000 warehouses. In the 1980s - it had less than 300. 

The cascade of industry, in some instances - feels more like a flood. 

Multiple studies have revealed serious environmental and health  problems  associated with these projects. 

INLAND EMPIRE'S 4000 warehouses generate 
Over 300,000 pounds of Diesel PM;
Over 30 million pounds of NOx, and
Over 15 billion pounds of CO2 per year

Source: Robert Redford Conservancy

Frank Tysen has done more than most. He survived a world war, rebuilt Palm Spring's oldest hotel, and has taken on city development projects through his group - Advocates for better community development (ABCD).

Tysen, informed news channel three, of a Palm Springs planning commission meeting on November 13 where city leaders were considering a development permit for a warehouse in Palm Springs. 

That project was described as a 739-square-foot warehouse and fulfillment center on the November 13 agenda. 

"What bothers me about the warehouses  is our leadership has completely acted like it's not happening," Frank Tysen said. "Much of what they call the Inland Empire is the area between Los Angeles and Arizona. It's going to be destroyed."

Frank Tysen explains when he first fell in love with the city of Palm Springs, as he addresses the possibility of new warehouse projects here locally.

Sometimes it's more warehouse, sometime's. more car. I'm glad someone is asking the question.

The commission would have decided to certify a final environmental impact report on the proposed project and adopted a statement of overriding considerations for the P-S fulfillment center. 

The November 13 agenda describes the project as a 739 thousand square foot warehouse and fulfillment center. 

The commission would have decided to certify a final environmental impact report on the proposed project and adopted a statement of overriding considerations for the P-S fulfillment center. 

In other words, saying the good outweighs the bad when moving forward. 

News Channel 3 was told it was due to a minor health issue preventing a commission member from attending, and was since rescheduled.

Peter Moruzzi was one of the attendees slated to speak against the project under the banner "Stop Warehouse Blight." This group of concerned citizens was described as an organization organized to stop the "uncontrolled invasion of gargantuan warehouses in the Coachella Valley." 

Peter Moruzzi, a former Palm Springs Planning Commissioner explains the site of proposed warehouse project

"This is what the Coachella Valley would look like if we just ignore what's happening and let these things come. This is the palm springs area where all these different things are being looked at and in the improve process." 

Moruzzi is forthrightly against the P-S fulfillment center. He's the author of several historical books on Palm Springs, and a former Palm Springs Planning Commissioner.

And a former Palm Springs planning commissioner. 

Since you were on the planning commission, you ever have to consider projects like these in some aspect?
"Not warehouses like this, nothing like this."

"These are so far beyond anything that this city has ever approved. It's it's new," he said.

To learn more about the process and find the pro-development side, News Channel Three reached out to the city of Palm Springs to speak with an official about the project. 

"…this is a private application that still needs to go to the planning commission for consideration, meaning, it's just that, an application. there are no details or anything further the staff can discuss at this time."

An email from the City of Palm Springs on 11/15

News Channel Three contacted who were told was the property of the land of the proposed warehouse several times. We have yet to hear back. 

On Tuesday, November 19, News Channel Three inquired with several business leaders for assistance in finding someone to talk to about the project's positive aspects, covering both sides.

Arguing against the adoption of these warehouse projects has come into two-fold….Pollution.

"it is estimated in the environmental report to have a hundred two thousand truck trips per year," Moruzzi said in referencing the proposal in the Nov. 13 agenda.  

And the case in Desert Hot Springs.

"If the project is like an amazon, yes that's lots of jobs," he explained. 'But in Desert Hot Springs they announced a three million square foot facility. everyone was excited the sales tax revenue, then last year Amazon changed their mind. drastically downsized it. It's not going to be a fulfillment anymore." 

To acquire more details on the situation, News Channel 3 reached out to Mayor Matas, who we spoke to on phone.

Mayor Matas said the situation described is true. Amazon said one thing, and ended up doing another.


"Like it could have been life changing for us," he explained. "In Beaumont, they tripled their budget overnight. So, you know, when a city like ours that our budget is somewhere between, you know, 28 and $30 million. If you tripled our budget, wow, the things we could do with it would be incredible."

He explained that the change was disappointing, but for his town, the scaled-down result is still a huge economic boost for towns similar in size to desert hot springs. 

"It would have been great if it was a fulfillment center, because the tax revenue would have changed our lives," Matas said. "But it is a perfect thing for our community. It's 1800 jobs, people can travel farther to get to work."

Desert Hot Springs Mayor Scott Matas on Amazon's choice to downsize their project to produce one of the biggest fufilment centers in the country. It would have been great if it was a fulfillment center, because the tax revenue would have changed our, our lives and our tax revenue. But it is a really good thing for our community. It's 8800 jobs.

Matas said the arguments for and against these projects are sometimes told on the fringes, and that at the end of the day, people see these are good projects, he said.


"We're in the process of approving another million square feet, but there's no tenant slated for that yet," Matas said. "It's just a spec building by a large warehouse developers building it. So i foresee, you know, us having 5 or 6 larger warehouses up in that area over time."

On Monday, November 25 News Channel Three received an email from Christopher Hadwin, the Director of Planning Services saying the planning commission is considering an application for a major development permit for a 750 thousand sq. ft. ware house on a 38-acre parcel located at the northwest corner of N. Indian Canyon Dr. and 19th Av. The tenet intends to utilize the facility as a fulfillment center, potentially generation 700 jobs per the email. You can view it, in it's entirety below. The next Planning Commission special meeting for Palm Springs officials is scheduled for Dec. 4.

The Planning Commission will be considering a private application for a Major Development Permit and associated Environmental Impact Report to permit an approximately 750,000 square foot warehouse on a 38-acre parcel located at the northwest corner of N. Indian Canyon Dr. and 19th Ave. The applicant has indicated that they intend to operate the facility as a fulfillment center, which has the potential to generate approximately 700 new jobs.
 
In January 2022, the City Council enacted changes to the Zoning Code to direct these large-scale warehouse and fulfillment centers to locate in a specific industrial area in the City’s north end, bound by N. Indian Canyon Dr, 19th Avenue, Karen Drive, and Dillon Rd. The Council intended to permit these uses in this small area adjacent to I-10 to minimize their effects on our established communities. As a result of Council’s 2022 decision, these uses are allowed by-right in this area if they meet certain development standards and comply with all environmental regulations. The Planning Commission’s review is focused on ensuring that the proposed plans comply with those development standards. If approved, the Architectural Review Committee would review final architecture and landscape details.

Email from Chirstoper Hadwin on 11/25
Christoper Hadwin
Director of Planning Services
City of Palm Springs 
The Planning Commission will be considering a private application for a Major Development Permit and associated Environmental Impact Report to permit an approximately 750,000 square foot warehouse on a 38-acre parcel located at the northwest corner of N. Indian Canyon Dr. and 19th Ave.

Meanwhile, a new 8 million square foot warehouse plan is in the works for Cathedral City. For the time being, North of Instate-10, north and south of Varner Road, west of Rio del Sol and east
of future DaVall Drive.

Think link contains a complete project description, an assessment of the proposed project applications, and site plans to show the configuration and layout of the proposed project.

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Garrett Hottle

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