Palm Springs Looks At Other Options For Downtown Mall

A failure to pen agreements on the estimated $50 million renovation of the Desert Fashion Plaza has prompted Palm Springs city officials to seek alternatives for the vacant downtown mall.

The Palm Springs City Council hoped to have a development agreement and an owner participation agreement signed with Wessman Development Co. by June 30 — a deadline that was not met.

“We are considering all of the alternatives,” said Assistant City Manger Tom Wilson, who added the council’s ultimate goal is to “set in motion a way of getting the plaza redeveloped.”

The project is considered central to revitalizing downtown Palm Springs.

Michael Braun, vice president of Wessman, said his company could not enter into an owner participation agreement, outlining the city’s and Wessman’s financial obligations to the project, because the economy had not improved as hoped.

“We want to move full steam ahead … neither the city or we as developers are in control of timing,” Braun said, adding that the company hopes to have a meeting with city officials in the fall.

Wessman is reluctant to make any financial agreements with the city because no leases have been signed, according to a June 10 letter sent by Wessman Development to City Attorney Doug Holland.

Wessman is actively seeking tenants and hopes to have a clearer grasp on potential leases by October, according to the letter.

“While we believe we are making progress, the state of the economy makes that progress slower than we would like,” the letter states.

The developer is aware that the city might consider finding “another developer of the property,” according to the document, which says the “timing of development is not likely to be improved simply by inserting another party into the mix.”

Wilson disagreed with Wessman’s assertion that a lack of tenants has kept the company from the negotiation table.

“It doesn’t take a master tenant or an anchor tenant. It just takes an agreement among us (to move forward),” Wilson said.

Wilson will provide his regular monthly update on the project to the City Council at tonight’s 6 p.m. meeting.