UPDATE: Palm Springs cuts ties with Well In The Desert; Well President responds

The City of Palm Springs cut its ties with a homeless services agency Well In The Desert Thursday evening.

The city council voted in agreement in part due to an ongoing discussion about the organization's conditional-use permit for its main location on Calle Encilia.

Councilmembers voted to revoke Well In The Desert's permit to operate the center.

Former City Manager David Ready told KESQ News Channel 3 in March, complaints about homeless in the city, and complaints about Well clients had increased over the past year.

On Thursday, the city council raised other issues about the organization which according to its website is a 501c3 non-profit organization which provides clothing, showers and a cooling center 7 days a week, plus hot meals 5 days a week.

Councilmember Geoff Kors brought up a $700 dollar a month stipend the organization pays employees instead of earned wages.

City staff also reported that Well In The Desert had not filed tax returns since 2018.

Well In The Desert also advocates for those affected by poverty, including the working poor, the homeless, seniors, veterans, the handicapped. It has had a rocky relationship with the city, and neighboring residents and businesses who have objected to its impacts on neighboring homes and stores.

Arlene Rosenthal, president of Well in the Desert, told News Channel 3's Karen Devine the following night:

"All the information that council offered last night was unfounded, except the part about stipends, which was allowed years ago. The state just changed that ruling and we have to address that. But, all the other statements were unfounded."

Rosenthal went on to say they have all the tax records and have an audit annually. She said they are in good standing with the state. Now Rosenthal says the organization will see what will be offered, meet as a board and figure out the best way to continue to serve the homeless in the community.

This is a developing story. KESQ News Channel 3 will have continuing coverage on-air and online.