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Planning Commission grants extension for mixed-use project on Sunny Dunes

Developer seeks two more years after cannabis tenant withdrawal, construction partner bankruptcy derailed timeline.

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A downturn in the cannabis industry is one of the factors stalling the completion of this building on a vacant Sunny Dunes Road lot, planning commissioners were told Tuesday evening.

A rare undeveloped parcel on Sunny Dunes Road might need to wait a little longer before a planned mixed-use project is built out.

The Palm Springs Planning Commission on Tuesday approved a requested two-year extension on their previous approval of a development at 605 Sunny Dunes Rd., described in a city staff report as “the last undeveloped lot on this block of Sunny Dunes Road.”

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The extension applies to both the Planning Commission’s and the Architectural Review Committee’s (ARC) previous approvals.

The two-story, mixed-use commercial building was first approved by the Planning Commission and ARC in July 2023. Applicant Jim Lande, who separately serves on the city’s Public Arts Commission, purchased the site in 2022.

At that time, a cannabis dispensary and lounge was already connected to the project, Lande said Tuesday. Palm Springs Coffeeshop, LLC, had already secured regulatory permits from the city to operate the cannabis lounge.

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But the company unexpectedly withdrew from the project due to the downturn in the cannabis industry, according to a letter from the applicant about the requested extension. The project also faced challenges including the bankruptcy of the construction company that had signed on.

“This project has not moved as quickly as I originally hoped. That is not for lack of commitment. It is because the circumstances surrounding the original tenant and construction partner changed and that required me to reassess the building carefully, rather than push forward imprudently,” Lande said Tuesday.

While the project was first approved as fully commercial, Lande is now interested in making it a mixed-use project with affordable multi-family residential units on the second floor and commercial retail uses on the first floor. The city staff report notes that at least three dwelling units would be possible on the second floor.

The specifics regarding that change in uses wasn’t part of the Planning Commission’s deliberations on Tuesday, since the commissioners were focused solely on extending their previous approval.

But depending on what option the applicant takes, such as if he utilizes the state’s Density Bonus Law, the project could come back to the ARC or the Planning Commission at a later date.

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Lande had originally envisioned an art gallery on the second floor, and said that incorporating art at the building would still be a goal, although the gallery “may not be financially possible” at this time.

Over the past few years, the vacant lot has hosted popular public art installations, including “The Popsicles” in 2021 and “The Neighbors” in 2025.

The requested extension passed unanimously.


Author

Erin Rode is a freelance journalist based in and from Southern California, where she covers housing, homelessness, the environment and climate change.

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