Coachella Valley’s industrial future in focus as Palm Springs reviews proposed mega-warehouse

Days before the Palm Springs Planning Commission is set to vote to move construction of a proposed 739,360-square-foot fulfillment center forward, concerns are being raised about the region’s industrial future. The project comes as nearby markets may have reached capacity for large-scale warehouse developments.

On Wednesday evening, the commission will hold a public hearing before considering approval of a Final Environmental Impact Report (EIR) and the adoption of a Statement of Overriding Considerations (SOC) for the project slated for a 38-acre parcel within the city limits east of Interstate 10 at the northwest corner of North Indian Canyon Drive and 19th Avenue.

Those actions are necessary due to significant unavoidable impacts identified in greenhouse gas emissions and transportation, even with proposed mitigation measures, according to a staff report prepared for the commission.

Among those raising red flags prior to the meeting is Peter Moruzzi, a former planning commissioner, who expressed concerns about the project’s environmental and quality of life impacts in a letter sent to the commission last week.

“Just because the developer can build by right doesn’t mean that you are required to approve the EIR’s Statement of Overriding Considerations,” Moruzzi wrote. “You have the option of not certifying the SOC for a variety of valid reasons as part of the environmental review required under our ordinance.”

The project, proposed by PS Canyon Development, LLC, would include 727,360 square feet for warehouse uses and 12,000 square feet for office space. It also features 306 stalls for trucks and trailers, 110 loading docks, and 736 parking stalls. As designed, it complies with current city zoning and General Plan designations, requiring no conditional use permits.

Supporters maintain the development will bring economic benefits to Palm Springs — perhaps tens of millions of dollars in additional tax revenue. The SOC cites the creation of 718 permanent jobs and increased annual property tax revenues as key advantages. An exact tenant for the warehouse has not been announced, but it is similar in size and scope as those used by Amazon elsewhere in the Inland Empire.

Moruzzi challenged some of the supporters’ claims, noting that without knowing the ultimate tenant, the number of permanent jobs and level of automation remain uncertain. He also questioned the project’s potential sales tax revenue, citing recent revisions to similar projects in nearby communities.

“Recall the dramatic drop in expected revenues from Amazon’s recent project revision in Desert Hot Springs,” Moruzzi stated in his letter, referencing a nearby warehouse project.

The proposed fulfillment center reflects a growing trend of industrial development spreading east of major cities. The SOC notes that markets in Los Angeles, Orange, and San Bernardino counties are “running out of space to support more industrial facilities.”

Still, the move toward warehouse development here raises questions about the region’s role in accommodating future demand. Moruzzi expressed concern about the trend, wondering if the Coachella Valley would become the “next Moreno Valley as a repository for future warehouses.”

The project’s environmental impact report identified several areas of concern, including aesthetics, air quality, biological resources, and cultural resources. While many impacts can be mitigated, greenhouse gas emissions and transportation effects remain significant and unavoidable, according to the report.

To address these issues, the developer has proposed several mitigation measures. They include implementing a VMT (Vehicle Miles Traveled) Reduction Program during operations, which would feature a rideshare program, opportunities for telecommuting, and on-site bicycle facilities.

The Planning Commission meeting and possible vote is scheduled for Wednesday at 5:30 p.m. in Council Chambers of City Hall. The public is invited to attend and offer comments on the project. A 75-page staff report about the project can be viewed here.

---