Palm Springs Plaza Theatre seeks $20 million in additional funding from the city for restoration

The Palm Springs Plaza Theatre foundation is seeking $20 million in additional funding from the City for the restoration of the City-owned 1936 landmark.

After comparing the initial construction cost estimates and current bids to restore the theatre, The Foundation is $10 million short for the project. "I knew construction had gone up about 40% since Covid, but I was just sort of in denial about it and I was trusting our architects," according to J.R. Roberts, President of the Palm Springs Plaza Theatre Foundation.

The original budget with the estimate of construction at $16.5 million is now approximately $26.3 million, plus construction administration of $487,500 for management and inspection services, $70,000 for community workforce agreement administration, a 12.5% contingency on construction itself, startup costs of $2.5 million, and $1.3 million for design services/construction documents, according to a letter submitted to the City by the Foundation's Board of Directors and included in a City Council staff report.

The project is now estimated to cost $34 million, and the Plaza Theatre Foundation has raised approximately $14 million.

On Thursday, The City Council will consider approval of a Funding and Repayment Agreement between
the City of Palm Springs and the Plaza Theatre Foundation for an amount up to $20 million to begin construction and open the theater in 2025.

A staff report prepared for City Council members states that potential funding sources for the restoration project include $15.35 million in current Measure J funds, $5.6 million in budget set-asides, and $10 million in general fun reserves. These funds are currently set aside for other projects, like construction of a new fire station. However, the staff report states that The Council could approve the diversion of funds with the commitment to replenish the money in the FY26 & FY27 budgets.

Watch News Channel 3 at 10:00 p.m. and 11:00 p.m. tonight for more on the story.