Planning Commission OKs smaller delivery hub to replace giant warehouse plan

The Palm Springs Planning Commission on Tuesday approved a last-mile delivery facility in city limits north of Interstate 10, which will replace a previously approved large fulfillment center. 

The Planning Commission first approved an Environmental Impact Report and major development permit for a 739,360-square foot warehouse fulfillment center back in December 2024, in spite of some opposition due to greenhouse gas emissions and traffic concerns. The approval was appealed to the City Council, who denied the appeal and upheld the Planning Commission’s decision. 

That project would have been one of the largest warehouse developments in the Coachella Valley. But on Tuesday, the applicant brought back a revised plan for a much smaller, 174,891-square-foot last-mile delivery facility. The last-mile facility would be centered on the 38-acre property, creating large setbacks and landscaped areas. 

Last-mile delivery facilities receive and sort packages from larger fulfillment centers, then delivery packages directly to customers. 

The project site is at the northwest corner of North Indian Canyon Drive and 19th Avenue, in an area the city designated for warehouses and similar large-scale industrial uses in 2022 through zoning changes. “There are several (warehouses) that have been approved in this area. Also, some more to come,” said Glenn Malker, associate planner, during the meeting. 

When they first approved the environmental impact report, commissioners determined that any potential environmental impacts of the project were outweighed by the potential economic benefits. On Tuesday, they were tasked with reconsidering whether that determination still held up, while considering a project with a much smaller footprint but also fewer jobs and other economic benefits. 

The last-mile facility would create 243 permanent jobs, compared with 819 expected for a larger warehouse facility, according to a presentation from the project applicant. But the last-mile facility would also create less heavy-duty truck traffic than a fulfillment center. 

The Planning Commission unanimously approved the last-mile delivery center, citing the potential benefits of a smaller project. 

“I don’t always believe that bigger is better, and in this case, I believe that the community wins on a number of counts,” said Vice Chair Lauri Aylaian, after acknowledging the last-mile project’s smaller overall economic impact and fewer jobs.

“The financial implications are not favorable, but I think that this will better serve and better blend into the community, and it will still provide a large number of jobs.”

The city council previously added a condition to the project that planning staff conduct an air quality study within five years of the project to assess potential impacts and determine any mitigation actions. That requirement, along with other conditions, will carry over to the revised project. 

A representative of the project applicant, PS Canyon Development, LLC, said construction will start in January 2027 and should be complete by early 2028.

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