Plaza Theater secures tax credit financing deal, receives technology donations ahead of December reopening

The Historic Plaza Theater in Downtown Palm Springs moved closer to an early December reopening with the City Council approving a $5 million federal tax credit financing deal during its most recent meeting and the Palm Springs Plaza Theatre Foundation announcing donations of state-of-the-art video and audio equipment.

The financing structure will create investor equity through federal historic tax credits, with approximately $2.8 million going to the city and $2 million designated for the foundation to cover operations, maintenance and leasehold payments. An additional $500,000 will cover closing costs.

The foundation separately announced it received cutting-edge technology donations that will elevate the restored theater’s ability to attract performers. SACO Technologies, the company behind the Sphere technology in Las Vegas, donated a state-of-the-art video wall measuring 24.6 feet wide by 13 feet tall to be installed against the back wall of the stage.

Fender Musical Instruments Corporation donated a backline package of high-end amplifiers, which will reduce equipment rental costs for future acts booking the theater.

“The incredible scope of these two important technology donations has significantly increased the ability of the Plaza Theatre to attract acts,” said J.R. Roberts, president of the Plaza Theatre Foundation.

Brian Ray, a foundation board member who arranged the donations, said the video wall features LED panels offering high definition at 1920 by 1080 resolution with a motorized truss to raise and lower the wall as needed.

“If you have been one of the millions who’ve marveled at the incredible technology on display at The Sphere in Las Vegas, then you have been able to experience the genius of Ron Proesel of SACO Technologies,” Ray said.

The Fender donation includes eight amplifiers, two bass cabinets, and speaker cables. Ray said having an industry-standard backline package will help attract acts that do not fly their own amplifiers.

“When an act is looking to broaden their horizons into a new market, their first question is often about the tech package offered at the venue,” Ray said.

The city has been working with the National Trust Community Interest Corporation since May on the tax credit financing arrangement, with Councilmember Jeffrey Bernstein, who served as liaison to the foundation, noting that other cities have contacted Palm Springs to learn how to replicate the tax credit financing structure for their own projects.

The city awarded the construction contract for the theater’s restoration on Dec. 14, 2023.

Built in 1936 , the facility was home to film premieres, nationally broadcast radio programs and the long-running Fabulous Palm Springs Follies. It closed in 2014 and had fallen into disrepair.

The city awarded the construction contract for the theater’s restoration in December 2023. A ribbon cutting ceremony is scheduled Nov. 21 and performances are scheduled to follow.

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