“Nobody wants this project. You don’t want to live next to it,” said Vice Chair Lauri Aylaian during deliberations. “However, Palm Springs needs money.”
The Palm Springs Planning Commission voted 5-1 Tuesday night to approve a controversial 2 million square foot warehouse development, overriding significant environmental impacts in favor of projected economic benefits.
First Industrial Realty Trust received approval for two warehouse buildings on a 96-acre site at the southeast corner of North Indian Canyon Drive and 18th Street. The project required the commission to adopt a statement of overriding considerations due to unavoidable environmental impacts, particularly related to transportation and traffic.
“Nobody wants this project. You don’t want to live next to it,” said Vice Chair Lauri Aylaian during deliberations. “However, Palm Springs needs money. We need to renovate our convention center, we need to expand our airport, we need to have them build a new fire station.”
The commission certified a final Environmental Impact Report that identified significant and unavoidable transportation impacts from the estimated 750 jobs the project would create. Despite these concerns, commissioners cited economic necessity as the driving factor in their approval.
Community advocates raised environmental justice concerns during public testimony.
“We’re talking about $330 million more profit coming back to us. But I want to talk tonight about who is not represented here tonight,” said Judy Deertrack, representing Advocates for Better Community Development. Deertrack noted the nearby census tract ranks in the 91st percentile for ozone pollution and 60th percentile for traffic burden.
Tamara Diamond, a local resident, told commissioners the area “sits in one of the most biologically diverse deserts in the world” and warned that “unchecked development of large warehouses threatens to destroy the very environment we are entrusted to protect.”
Developer Paul Loubet of First Industrial defended the project, saying the company will pursue LEED Gold certification and has signed agreements with environmental groups including the Sierra Club.
“We’re a consumer driven society. We keep buying product has to go somewhere, and we’re helping to hopefully give a place for those products to go out here in Palm Springs,” Loubet said.
The project is projected to generate approximately $2 million annually in combined property and sales tax revenue for the city. Construction spending of $140 million could generate additional sales tax revenue, though the exact amount flowing to Palm Springs remains uncertain.
Union representatives spoke in favor of the project, citing 285 construction jobs over two years with payroll estimated between $47 million and $55 million.
“Projects like this keeps us home,” said Robert Ramos of Iron Workers Local 416.
Commissioner Robert Rotman cast the lone dissenting vote, expressing skepticism about the economic benefits.
“I’m highly suspect of the economic benefit to the city,” Rotman said, noting concerns about long-term road maintenance costs from heavy truck traffic.
The buildings will reach 53 feet high and include four entry points along North Indian Canyon Drive. The developer will contribute to various traffic improvements including widening Indian Canyon Drive and sharing costs for intersection improvements.
Planning Director Christopher Hadwin acknowledged the project’s environmental impacts but emphasized the economic considerations. “We’re looking at three-plus million square feet in this area, and a lot of employees,” Hadwin said, noting potential future transit service needs.
The approval includes conditions requiring the developer to work with the Architectural Review Committee on final design elements and implement various mitigation measures outlined in the environmental report.
Construction is expected to begin following final approvals, with completion projected around 2029.