I-Team: Delayed Projects

The ripple effects of coronavirus and the economic shutdown may be felt for a long time to come here in the Coachella Valley.

Last week we reported that plans for a new sports and entertainment arena in downtown Palm Springs are on hold.

Now, we're learning about other projects in the Coachella Valley.

The Delano hotel project in Indian Wells won't be happening because of the pandemic.

The project was due for groundbreaking in May with a hotel, villas, condominiums, restaurants, and a trendy Skybar.

It was going to be built at the corner of Highway 111 and Miles.

Property co-owner Jerry Fogelson says the closing was set for a Monday in March and on the Saturday before the Monday, the deal fell through purely because of the pandemic. 

"They would have closed on the land, and they would be moving ahead with their project," says co-owner Michael Kiner.

They say another party is now interested in the same property, but it's going to be a significant delay.

If that deal comes to fruition, construction could start in 2021 with the project opening in late 2023.

"So, we were looking forward to have the project under construction with the hope that we would start seeing over about $2 million a year in revenue to the city," says Indian Wells City Manager Chris Freeland.

In Palm Desert, there's a delay in another big project.

The Dsrt Surf development at Desert Willow with a hotel, villas and surf park.

"They've been working with us closely at the staff level to work on an extension that would allow them to refine their project," says Palm Desert Economic Development Director Martin Alvarez.

Desert Wave Ventures, LLC asked for a 60 day extension on moving forward on May 14.

On the bright side in Palm Desert, some other developments are moving forward without delay.

A Denny's is going up on Washington Street at Avenue of the States. The Monterey Crossings development at Monterey and Dinah Shore is set to begin grading soon.

The city hopes it will include the first valley's Chick-Fil-A restaurant.

Alvarez also says plans remain on track for the San Pablo corridor including a mixed-used development at the Southeast corner of Fred Waring and San Pablo. 

Both Palm Desert and Indian Wells are hopeful that a change in travel habits with people less willing to fly, could be a silver lining for the valley with major metropolitan areas within two hours of the valley.

They hope for a spike in the drive-in tourism market to help off-set other losses.