Economic growth, public safety gains highlight annual State of the City event Tuesday evening

Palm Springs Mayor Ron deHarte presented an optimistic vision of a thriving city Tuesday, highlighting economic growth, public safety improvements and major infrastructure investments during his 2025 State of the City address at the Palm Springs Convention Center.

The annual address, attended by a record 500-plus residents, city staff and elected officials, showcased a city rebounding from challenges with tourism spending reaching $1.9 billion annually while violent crime dropped 17% year-over-year.

DeHarte opened his remarks by paying tribute to the late Harold Matzner, the philanthropist and business leader who died in September. Matzner transformed the struggling Palm Springs International Film Festival into one of the country’s most successful cultural events and a powerful economic engine for the region.

“Harold Matzner was unequivocally our greatest champion. No one has done more to support Palm Springs and the entire Coachella Valley, and there will never be another like Harold Matzner,” deHarte said.

In the roughly 90-minute speech that followed, accompanied by multiple high-quality videos, audience members were taken on a journey of the the city’s biggest accomplishments of 2025.

The tourism and hospitality sector remains the city’s largest economic engine, supporting 11,343 jobs and generating $80 million to $85 million in local tax revenue. Palm Springs International Airport reported 2.7 million passengers year-to-date, with five new direct flight routes including service to Santa Rosa, Austin, Newark and Charlotte.

DeHarte highlighted the reopening of the renovated Plaza Theatre as a significant economic driver for the downtown area. The restored historic venue is projected to generate 50,000 hotel nights per year, $40 million in incremental spending and $4 million in direct economic impact through sales taxes and transient occupancy taxes.

“The Plaza Theatre is more than a building. It’s really part of our history and part of our community,” deHarte said, noting the meticulous restoration work to match the theater’s original 1936 design.

The city is moving forward with a $125 million renovation of the Convention Center designed to modernize the facility and enhance its competitiveness in attracting conferences and events.

Public safety improvements featured prominently in the address.

The Palm Springs Police Department reported a 17% reduction in many crimes, including some violent offenses, compared to the previous fiscal year. Homicides were down 25%, vehicular homicides down 50%, robbery down 3%, assault down 8%, burglary down 32%, larceny theft down 20%, motor vehicle theft down 12% and arson down 40%.

The department launched Operation Rearview Mirror, a traffic safety initiative that increased hazardous traffic violation citations from 400 to 1,500 per month. The city also opened a new downtown police substation to increase visibility and response times in the urban core.

The Palm Springs Fire Department invested in new equipment and personnel while maintaining rapid response capabilities at the airport and throughout the community.

The city’s Navigation Center, which serves the homeless community in conjunction with its Early Entry Facility and Access Center, has linked 72 individuals to stable housing. The center, which operates 80 independent modular units and 55 overnight beds, has served 62,035 total meals since opening.

“We’ve seen a visible reduction in homelessness,” deHarte said, noting the city’s $4.9 million investment in Navigation Center operations.

Measure J infrastructure investments totaled $24 million this year, including $6 million in street paving that brought the total to 113 miles of roads repaved.

Major projects included LED lighting installation at park recreation fields for $4.7 million, new pickleball courts at Demuth Park for $2.5 million, police department renovation for $3.4 million, downtown park development for $4.1 million and Plaza Theatre restoration for $7.5 million.

The city completed playground renovations at Baristo Park and Ruth Hardy Park, with work beginning on Desert Highland Park playground improvements.

Palm Springs approved approximately 800 new housing units during the year, including 250 affordable units and 40 accessory dwelling units. The city also entitled 25,000 square feet of new commercial and retail space to support local job creation and preserved over 160 acres of land.

College of the Desert is on track for a new Palm Springs campus to open in Fall 2027, providing expanded higher education access for valley residents.

The airport received approval for its master plan, outlining long-term expansion and modernization. Airlines added direct flights to Santa Rosa on Alaska Airlines, Austin on both Delta and Southwest, Newark on United, and Charlotte on American. New airport concessions opened including local favorites Trio and Las Casuelas Terraza.

The mayor closed the event by recognizing the community’s response to a medical center explosion that damaged the American Reproductive Centers facilities along North Indian Canyon Drive in May. Residents raised $158,000 through the Rebuild Palm Springs effort, while the city established a $50,000 fund to support affected businesses.

In an emotional moment, deHarte brought families on stage who benefit from the work of the fertility clinic, including women who are pregnant with embryos that survived the bombing. As Dr. Maher Abdullah and staff from the fertility clinic stood alongside patients whose dreams of parenthood had nearly been destroyed, deHarte emphasized the resilience that defines Palm Springs.

“Who we are as a city isn’t defined by tragedy. We’re defined by how we rise from it,” deHarte said. “It’s not just about what we build or achieve. It’s about how we care for each other and how we draw strength from our incredible community to move us forward together.”

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