Palm Springs Approves Sales Tax Hike Ballot Measure

The fate of a desert eye-sore rests in the hands of the voters.

The Palm Springs City Council approved a tax hike ballot measure on Wednesday night intended to generate renovation funds for the Desert Fashion Plaza.

“Make downtown happen again,” said Keith McCormick, owner of McCormick’s Classic Cars.

More than a dozen people spoke from the podium — each was given three minutes to make their plea.

An overwhelming majority were business leaders.

Most, if not all of them, gave their support for a tax increase to reach the ballot.

“(It’s) a way to help revitalize downtown Palm Springs,” said Hanna Scholla, the business manager of Spencer’s Restaurant.

But some said ‘no’ to the tax.

Bruce Tominello has only lived in Palm Springs for four years, but he said he’s already heard enough of the discussions over the mostly vacant lot.

“How much more shopping do we need when we have empty stores up and down the avenue,” said Tominello.

He didn’t speak, but John Wessman, owner of Wessman Development and the Desert Fashion Plaza developer, sat patiently in the council chambers, as the vote to place a 1-percent sales and use tax measure on the Novemer ballot passed unanimously, 5-0.

The measure will need only a simple majority to pass in November.

If voters approve, the tax will go into effect on April 1, 2012.

The council also approved a sunset on the tax — it would expire in 25 years.

“Downtown is bubbling somewhat underneath right now,” said McCormick. “This would be the final pin to really make it rock and roll downtown.”

The tax is expected to generate more than $8 million per year, for a public private renovation project expected to cost more than $100 million.

But the council made it clear that the added tax revenue will go straight to the general fund and could be used for other capitol improvement projects, which is worrisome for Tomenillo, who doesn’t expect much at the plaza to change.

“It reminds me of throwing dice in a craps game,” he said. “No matter how you throw them, the dots remain the same, falling in different patterns, but always adding up between two and 12.”

The council also decided to postpone the vote on a development financial agreement on the Desert Fashion Plaza.

It said it still wants more input from the community.