City Council upholds approval of a seven-story hotel, nine-story residential development near convention center 

The Palm Springs City Council voted unanimously on Wednesday to uphold the Planning Commission’s September approval of a proposed seven-story resort hotel and nine-story residential development that would likely become the tallest building in the city, rejecting an appeal of the decision from a nearby homeowners association. 

The Palm Springs Planning Commission originally approved the project on September 16, granting both a major development permit and a conditional use permit for the high-rise building, pool bar, and rooftop social club under the Section 14 Specific Plan. Responding to concerns about the project’s size, the commission required developers to cut a 20-by-20-foot section from the corner of the nine-story tower to reduce its overall mass.

The proposed project conforms to the city’s General Plan, Zoning Code, and the Section 14 specific plan that guides development in the area, according to city staff. But the Plaza Villa Homeowners Association appealed the Planning Commission’s decision, mostly highlighting concerns over the project’s height and size. 

“What we are opposed (to) is runaway precedent-setting development, the kind that will impact our community not just now, but for a long time to come. So I want you to think about the other projects that are possibly underway, and all the other empty lots that are in our city,” said Aaron Carter, representing the HOA, at Wednesday’s meeting. 

“We’re not asking the city to stop the Nexus project, we’re just asking for some guard rails conditions to ensure it fits within the city of Palm Springs.”

Whether other empty lots in the city could also be developed into seven- or nine-story buildings depends on the underlying zoning of those parcels. The Section 14 Specific Plan, for example, which was developed in coordination with the Agua Caliente Band of Cahuilla Indians, allows buildings up to 100 feet in height with a conditional use permit. The proposed hotel and residential project would be 99 feet at its highest points. 

The Supporter’s Alliance for Environmental Responsibility (SAFER), an organization backed by a group of construction unions that files lawsuits related to the California Environmental Quality Act up and down the state, had also appealed the project. 

The project is located at 847 East Andreas Rd., just north of Kaptur Plaza and between the Renaissance and Hilton hotels near the Palm Springs Convention Center on land currently used as a parking lot. The hotel portion of the building would be seven stories and include 125 rooms, and a nine-story residential portion would include 132 condo units, which owners would have the option of renting out through the hotel. 

Parking would be available in an underground lot with 100 spaces and a five-level parking garage with 400 spaces attached to the residential tower. Plans also include a 6,040-square-foot standalone restaurant.

The hotel proposal stems from a settlement agreement between the city of Palm Springs and Nexus Development, Inc. following the public corruption case involving a former Nexus employee who allegedly paid former Palm Springs Mayor Steven Pougnet bribes in exchange for the company purchasing the project site at a reduced rate. Under the settlement agreement, a Nexus affiliate company agreed to pursue plans for a hotel at the property. 

Rob Eres, vice president of development for Nexus, stated at both the Planning Commission and City Council meetings that the project’s size and proposed mix of condos and hotel units are what makes it economically feasible. Eres also noted that the nine-story component only represents about 10% of the total site area. 

“We feel this is the right plan at the right time. We’ve addressed the fact that there’s a huge seasonality in the city of Palm Springs, which is a challenge to finance ground-up hotels. By producing the branded residences in the mix of hotel rooms together, we diversify that risk, which is a huge, crucial piece of trying to get this project financed,” said Eres.

“The risk is that any adjustment to this formula affects the economic viability to get this project across the finish line,” Eres continued.  

The City Council ultimately voted unanimously to uphold the Planning Commission’s approval, while adding some of their own additional conditions. These include quarterly community meetings, a beautification plan for the site’s perimeter, secure construction fencing, evidence of financing provided to the city when appropriate, and weekly site inspections to check security and maintenance, among a few others. 

“(This project) conforms with our zoning code, with the Section 14 Specific Plan, it makes sense for what we’re looking for in terms of additional rooms for conventions, and again, any money that we obtain from projects like this goes right back into the community,” said Councilmember Grace Garner. 

The project will next go before the Architectural Review Committee. 

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