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HomeMy WebLinkAboutFinal_Palm_Desert_Rail_Feasibility_StudyPALM DESERT RAIL FEASIBILITY STUDY ACKNOWLEDGEMENTS This study wouldn’t be possible without the hard work and support of the following teams and people: City of Palm Desert Karina Quintanilla - Mayor Jan Harnik – Mayor Pro Tem Eric Ceja – Director of Economic Development/Public Affairs Vanessa Mager – Business and Community Outreach Coordinator Project Team Kimley-Horn Perkins Eastman Kosmont Community Stakeholders Riverside County Regional Rail Commission California State University San Berandino The Berger Partnership and Acrisure Arena Local Homeowner Associations The City of Palm Desert Local Transit Service Operators  i Palm Desert Rail Feasibility Study Table of Contents 1. Introduction, Background and Purpose ..................................1 1.1. Introduction ................................................................................1 1.2. Background and Project Purpose .................................................2 1.3. Purpose of Report .......................................................................2 2. Literature Review ...................................................................3 2.1. Riverside County Transportation Commission (RCTC) Coachella Valley – San Gorgonio Pass Rail Corridor Service Project (Tier 1 EIR and Project Factsheet) ..................................................................................................3 2.2. City of Palm Desert Local Road Safety Plan (LRSP) (May 2021) .....3 2.3. Palm Desert General Plan ............................................................4 2.4. California State University, San Bernardino – Palm Desert Campus Master Plan 4 2.5. Current Planning Efforts .............................................................4 2.6. Future Planning Efforts ................................................................5 3. Existing Condition Analysis ....................................................6 3.1. Current Rail Service and Existing Rail Plan .............................................6 3.2. Location Context .........................................................................8 3.3. Existing Land Uses ......................................................................9 3.4. Zoning ......................................................................................11 3.5. Roadway Volumes ....................................................................12 3.6. Existing Transit Facilities and Ridership ......................................13 3.7. Ridership Estimates ..................................................................16 Table of Contents 4. Community Meetings and Stakeholder Engagement Summary 17 4.1. Consulted Interest Holders ........................................................19 5. Prioritization of Project Implementation ...............................20 5.1. Site Preparation ........................................................................20 5.2. Site Circulation and Parking ......................................................20 5.3. Station Facilities .......................................................................20 5.4. Rail Platforms and Vertical Circulation .......................................21 5.5. Transit Oriented Development (TOD) Improvements ....................21 6. Station Site Selection and Feasibility Analysis ....................22 6.1. Station Site Design Considerations ............................................22 6.2. Station Location Preliminary Selection and Screening .................23 6.3. The Palm Desert Transit Hub Vision ............................................33 6.4. CEQA Preliminary Environmental Study .....................................41 6.5. Cost Estimate ...........................................................................44 7. Potential Funding Sources ....................................................46 7.1. Grant Funding Sources .............................................................46 7.2. Value Capture and Other Financing Mechanisms ..............................................................47 7.3. Funding Partners ......................................................................48 8. Conclusion and Next Steps ...................................................50 Appendix A: Station Ridership Density Methodology and Results ....A1 Appendix B: Value Capture Financing Analysis Summary .........A2 Letters of Support .....................................................................L1  ii Figure 1: Proposed Service within the California Rail Plan .............6 Figure 2: RCTC Rail Study Map .....................................................7 Figure 3: Local Context Map .........................................................8 Figure 4: Existing Land Uses in Project Area .................................9 Figure 5: Unbuilt Land Ownership along Project Corridor .............10 Figure 6: Zoning in Project Area ..................................................11 Figure 7: Annual Average Daily Traffic (AADT) Volumes in Project Area .....12 Figure 8: Existing SunLine Transit Routes and Stops in Palm Desert .....14 Figure 9: Transit Boardings in FY 22 ............................................15 Figure 10: Identified Station Sites ...............................................24 Figure 11: Station Platform and Track Design Assumptions .........28 Figure 12: Anticipated profile for Gerald Ford Drive .....................30 Figure 13: Cook Street Site Evaluation Map ................................31 Figure 14: Palm Desert Transit Hub Visioning Sketch ...................33 Figure 15: Palm Desert Transit Facility Conceptual Site Plan ........34 Figure 17: Palm Desert Transit Facility Rendering ........................35 Figure 16: Palm Desert Transit Facility Conceptual Site Plan #2 ...35 Figure 18: Palm Desert Transit Facility Rendering #2 ...................35 Figure 19: Example of Envisioned Programs for the Palm Desert Rail Station .............................................38 List of Tables Table 1: SunLine Ridership Figures (Fiscal Year 2022) .................13 Table 2: Station Ridership Estimates (2028) ................................16 Table 3: Key Themes from the Public Meetings ...........................18 Table 4: Station Site Assessment, July 2023 Open House ............25 Table 5: Palm Desert CEQA Site Evaluation ..................................42 Palm Desert Rail Feasibility Study List of Figures  1 1. INTRODUCTION, BACKGROUND AND PURPOSE 1.1. INTRODUCTION Nestled in the vibrant heart of California’s Coachella Valley, Palm Desert shines as a regional hub among eight municipalities. Here, opportunities converge, beckoning residents, students, and tourists to experience Palm Desert firsthand. Situated just 120 miles east of Los Angeles and a mere 15 miles from Palm Springs, this dynamic city serves as the educational center for communities from San Bernadino to Imperial Counties. With two esteemed university campuses and a thriving community college within close proximity to the proposed rail station site, Palm Desert proudly nurtures a culture of learning, particularly among those from underserved communities. But Palm Desert offers more than just academic prowess. Its vibrant tapestry of recreational, shopping, and entertainment amenities, set against the backdrop of a uniquely beautiful desert landscape, provides an unparalleled quality of life for residents and visitors. The City has the largest workforce in the Coachella Valley and is home to many cultural activities and world-class events. This premier resort destination thrives as a safe and sustainable community, drawing inquisitive minds and innovative employers alike. With a stable population of approximately 53,000 year-round residents, an additional 32,000 seasonal dwellers add to the vibrancy of our community each year. Yet, it’s the influx of visitors that truly sets the Coachella Valley apart from our neighboring communities. Welcoming a staggering 14.1 million tourists annually, the Valley is a tourist hotspot, and Palm Desert is in the middle of the action. Among these visitors, 50% are from the Los Angeles area, many for only a day trip or weekend getaway, a perfect audience for regular rail service between our two regions. Palm Desert prides itself on a robust transportation network, boasting dedicated bike lanes, golf cart infrastructure, and SunLine Transit bus services, all complemented by well-maintained roads. Yet, despite these amenities, access to the city remains largely reliant on Interstate 10 and Palm Springs International Airport, which welcomed 3.2 million passengers in 2023, alongside limited Amtrak passenger rail service. While neighboring Palm Springs is a stop on Amtrak routes to Los Angeles, New Orleans, and Chicago, trains are only scheduled for overnight stops. The absence of regular commuter passenger rail service underscores a crucial gap in connectivity. Introducing such a service would not only enhance transportation capacity but also offer a sustainable, accessible option for local commuters, regional students, and visitors alike, facilitating seamless journeys to the heart of the Coachella Valley, Palm Desert. Palm Desert Rail Feasibility Study  2 1.2. BACKGROUND AND PROJECT PURPOSE Residents of Palm Desert, and the Coachella Valley as a whole, have long expressed a desire for inter-city rail service. This would provide residents and tourists the option to travel to destinations such as the Inland Empire or Greater Los Angeles area without using I-10. The Coachella Valley Association of Governments (CVAG), Riverside County Transportation Commission (RCTC), and the California State Transportation Agency (CalSTA) have also expressed their support for daily intercity passenger rail service in the Coachella Valley in various existing plans. As the population and tourism to Palm Desert and the Coachella Valley increases, a rail station would create multiple benefits for the region. These include decreasing the overall vehicle miles traveled (VMT) of the region, lowering carbon emissions, increasing the mobility of non-drivers or those without vehicles, and serving as an alternative transportation method to events, such as concerts and sporting events at the Acrisure Arena and the Coachella Arts & Music Festival. This study analyzes the existing and future market for a passenger rail station in Palm Desert, the candidate locations for a station, and the existing and future connectivity to the site. This study aligns with the previous RCTC Coachella Valley/San Gorgonio Rail Study adopted in 2022. This report describes the available land in Palm Desert that could house the station and the process used to identify one locally preferred station location for new rail service near Cook Street and Gerald Ford Drive. SunLine currently provides limited weekday commuter service through the San Gorgonio pass to San Bernardino that draws tens of thousands of riders per year. The proposed rail service will broaden and enhance that connection to draw more types of users, trip purposes with faster, more reliable, and farther reaching service. This study expands on the Coachella Valley/San Gorgonio Rail Study by identifying the ideal sites for the rail station and includes a conceptual, or “blue-sky,” envisioning of connections between the proposed station and the existing transportation network in Palm Desert. This includes a Multimodal Transport Hub to support all travel modes throughout Palm Desert and the Coachella Valley, with potential connections to bus transit, bicycle travel, pedestrian travel, shuttle buses, ride hailing services, and a pedestrian bridge across I-10. With input from local officials and residents of Palm Desert, the City of Palm Desert Rail Station Feasibility Study represents the collective vision for rail service in the City. 1.3. PURPOSE OF REPORT This report is the culmination of all the previous efforts conducted for the Palm Desert Rail Station Feasibility Study compiled in one document. It includes the following components: ◢Review of Existing Conditions ◢Relevant Literature Review ◢Summary of Community Engagement Efforts ◢Development of the Site Selection Criteria and Subsequent Evaluation ◢Initial Cost Estimates ◢Implementation Plan ◢Potential Funding Mechanisms. This report will also recommend next steps that the City and its partners should take in beginning design and construction of a new station and securing passenger service. Palm Desert Rail Feasibility Study  3 Palm Desert Rail Feasibility Study 2. LITERATURE REVIEW The Palm Desert Rail Feasibility Study incorporates regional and local planning efforts that relate to the potential station location near Cook Street and Gerald Ford Drive. These efforts range from long-range regional planning to local specific plans. The following literature review sections summarize some of the planning documents that were evaluated for any improvements to the Monterey Avenue and Cook Street corridors, as well as any areas that complement or conflict with the rail service. They include a variety of land use and transportation planning projects that can contribute to a comprehensive understanding of Palm Desert’s existing and future transportation conditions to the Monterey Avenue and Cook Street Corridors. There is already a significant number of transit oriented, development-supportive land uses in the potential station area that could directly serve and be served by station operations including 4,056 hotel rooms, 5,766 units of multifamily housing, and over 6 million square feet of built retail space. The plans that were reviewed support the continued creation of transit-oriented development opportunities in the station area. 2.1. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) COACHELLA VALLEY – SAN GORGONIO PASS RAIL CORRIDOR SERVICE PROJECT (TIER 1 EIR AND PROJECT FACTSHEET) The San Gorgonio Pass Rail Corridor Service Project serves the many communities of the Coachella Valley with daily intercity passenger rail service between Indio in the Coachella Valley through San Gorgonio Pass to Los Angeles Union Station and assists with coordination of all public transportation services within Riverside County. The San Gorgonio Pass Rail Corridor Service Project addresses the first phase of initial service development planning and alternative analysis to identify potential routes in the Coachella Valley – San Gorgonio Pass Corridor. The regional intercity passenger rail service will provide customers in these communities with an alternate mode of travel that will link them to the Coachella Valley and the Pass Area. This plan provides an overarching vision and strategic guidance for buildable alternatives for daily intercity rail service for the Coachella Valley. The goal is to ensure an easement of congestion on local roads and freeways, and provide new economic opportunity, mobility, and quality of life. 2.2. CITY OF PALM DESERT LOCAL ROAD SAFETY PLAN (LRSP) (MAY 2021) The City of Palm Desert Local Road Safety Plan (LRSP) outlines a series of systemic infrastructure improvements and policy enhancements to improve roadway safety and reduce vehicle collisions in the City of Palm Desert. The plan analyzes all reported crashes that occurred in Palm Desert from 2015 to 2019 and identifies intersections and roadway segments with a high risk for collisions. The plan then proposes improvements for the near-, middle-, and long-term, as well as opportunities to apply for funding programs such as the Highway Safety Improvement Plan (HSIP).  4 2.3. PALM DESERT GENERAL PLAN The Palm Desert General Plan is a document designed to guide the growth and development of Palm Desert. The document provides goals and policies which will assist the City in achieving its economic and community development objectives. The General Plan describes the City’s goals and strategies related to transportation in the mobility element. The plan envisions an interconnected multimodal transportation system consisting of automobiles, public transit, golf carts, bicycling, and walking. The element focuses on providing a balanced transportation system that serves all modes of travel safely and efficiently. 2.4. CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO – PALM DESERT CAMPUS MASTER PLAN The California State University San Bernardino Palm Desert Campus (CSUSB PDC) Master Plan represents a vision of the opportunities in which the intellectual and creative pursuits of the University and the surrounding community could support and advance the CSUSB education mission. The goal is to ensure that there is transportation and pedestrian/bicycle connectivity to access the campus and its facilities. 2.5. CURRENT PLANNING EFFORTS A review of several additional planning documents was completed to make sure previous efforts were built upon. The following is a list of the documents that were reviewed: ◢California State Rail Plan ◢Better Connected Indio: Indio Multi-Modal Feasibility Study ◢SunLine Transit Short Range Transit Plan (SRTP) FY23-25 ◢SunLine Transit Agency Zero-Emission Bus Rollout Plan ◢Coachella Valley Association of Governments (CVAG) Active Transportation Plan (ATP) ◢RCTC Next Generation Rail Study ◢Riverside County Long Range Transportation Plan (2016) ◢Cotino Project Site (Disney Master – Planned Community in Rancho Mirage) ◢CV Link Coachella Valley Active Transportation Route ◢CV Link Neighborhood Electric Vehicle Transportation Plan Palm Desert Rail Feasibility Study  5 2.6. FUTURE PLANNING EFFORTS The literature review conducted for this study included 18 development plans ranging from new residential developments to hotels and commercial projects. These are described in more detail in the literature review memorandum. The potential impact and benefits of these developments continue to support the preferred station location as they will provide additional housing and services in the station service area, while not overburdening the transportation infrastructure needed for station access and community mobility. An economic analysis of proposed station operations and activity suggest that 14,000 square feet of additional convenience and quick service food and beverage, 100 additional hotel rooms near the station site, and 100 more units of workforce housing will be needed to take full advantage of the station’s potential and would generate approximately $500,000 per year in 2023 dollars which could in turn provide much of the needed support for station operations and maintenance. Palm Desert Rail Feasibility Study  6 Palm Desert Rail Feasibility Study 3. EXISTING CONDITION ANALYSIS Figure 1: Proposed Service within the California Rail Plan 3.1. CURRENT RAIL SERVICE AND EXISTING RAIL PLAN The Coachella Valley is currently served by Amtrak rail service at the Palm Springs Station. This station is served by the Texas Eagle and Sunset Limited services, which run as a combined train on this portion of the route, three times per week in each direction. In FY 2022, the Texas Eagle Service served 253,491 riders and the Sunset Limited served 73,904 riders along the entire route. The Palm Springs Amtrak Station and the roads that access it carried 2,294 riders in FY 2022 on these Amtrak services. However, the Palm Springs Amtrak station faces issues with inclement weather, such as heavy winds and blowing sand, which can affect operations. Indian Canyon Road is also vulnerable to closures and service disruptions due to sand intrusion and flooding during both rain and wind events. These issues have led to lengthy station closures in 2021 and 2023 and make the Palm Springs station a less reliable location for passenger rail service to continue Amtrak service. A station with Amtrak service in Palm Desert would better serve the region, as it is less likely to face inclement weather, is central to Coachella Valley population centers, and has better access to wider valley communities. Additional passenger rail service between the Coachella Valley and Los Angeles is part of the California Rail Plan. The Plan proposed operations between the Coachella Valley and Los Angeles by 2040 with hourly service to San Bernardino and Riverside.  7 RCTC has studied rail operations in more detail through their rail study and Tier 1 Environmental Impact Report (EIR) and has identified a route that parallels I-10 through Coachella Valley to Colton, Interstate 215 (I-215) and State Route 91 (SR-91) to Fullerton, and Interstate 5 (I-5) to Los Angeles Union Station. The plan proposes to use the existing rail stations in Palm Springs, Riverside, Fullerton, and Los Angeles. It also suggests potential new stations in the Coachella, Indio, Palm Desert (Mid-Valley), Beaumont, Pass Area, and Loma Linda areas. Figure 2 shows the proposed service and potential stations as outlined in the RCTC rail study. Figure 2: RCTC Rail Study Map All funds have been secured toward a Tier 2 EIR, which will study specific stations and detailed engineering concepts along the rail corridor. The proposed service will be two daily roundtrips between Los Angeles and Coachella with an approximate trip time of 3 hours and 15 minutes. There may be additional tracks installed at selected locations to enhance train travel speeds, minimize delays, and maintain safety. The RCTC plan calls for service within 10 years, dependent upon funding. Palm Desert Rail Feasibility Study  8 3.2. LOCATION CONTEXT The City of Palm Desert is located approximately 120 miles east of Los Angeles and approximately 150 miles west of Yuma, Arizona. The existing rail line is situated parallel to the I-10 freeway and is located along the northern boundary of the City of Palm Desert. The potential stations analyzed in this study included six sites with sufficient open space to house the station along the rail line in the City of Palm Desert. Ultimately, the Cook Street/Gerald Ford Drive location located near CSUSB PDC and Acrisure Arena was selected as the most suitable locally preferred location. Acrisure Arena had just under 1 million visitors in 2023. CSUSB PDC currently has about 2,200 students enrolled; however, the campus master plan projects an enrollment of 8,000 by 2035. Residential growth will also be seen within a 2.5-mile radius, with an additional 6,221 units under construction. The City of Palm Desert is also in process of building two parks in the area, one 20-acre community park and one regional park, all within one mile of the Cook Street/Gerald Ford Drive station location. This increase in enrollment, along with increased events at the arena, would provide additional potential ridership for a rail station in Palm Desert. Figure 3 shows the local context of the project. Figure 3: Local Context Map Palm Desert Rail Feasibility Study  9 3.3. EXISTING LAND USES Data from the Southern California Association of Governments’ (SCAG) 2021 Land Use Model was used to explore the existing land uses in the project area. There are several vacant parcels along the existing rail line near both the Monterey Avenue/Dinah Shore Drive and Cook Street/Gerald Ford Drive sites; however, the Cook Street/Gerald Ford Drive site has more vacant land that fronts an access road, whereas the vacant land at Monterey Avenue/ Dinah Shore Drive is further from an access road. Figure 4 on the following page shows the existing land uses in the project area. Figure 4: Existing Land Uses in Project Area Palm Desert Rail Feasibility Study  10 The existing Amtrak station at Palm Springs occupies approximately four acres of land. As shown by Figure 5, assuming the Palm Desert station will need to be at least as large as the Palm Springs station, there are no sites east of the Eldorado Drive area that could accommodate a sufficiently large station. Figure 5: Unbuilt Land Ownership along Project Corridor Palm Desert Rail Feasibility Study  11 Figure 6: Zoning in Project Area Palm Desert Rail Feasibility Study 3.4. ZONING Zoning data was obtained from the City of Palm Desert’s Interactive Zoning Map to explore the current zoning scheme in the project area. The parcels near the Monterey Avenue/Dinah Shore Drive site are zoned primarily for commercial use with some service industry. The parcels near the Cook Street/Gerald Ford Drive site are zoned for commercial, service industry and residential use. Figure 6 below shows the current zoning for the project areas.  12 3.5. ROADWAY VOLUMES Annual average daily traffic (AADT) volumes for 2022 were obtained for the project area from the Replica platform (gathered from anonymized cell phone data) and verified with AADT figures gathered in March 2022 for other projects in Palm Desert. Monterey Avenue has the highest AADT figures in the project area, with particularly high volumes south of the I-10 freeway, near the Monterey Avenue/Dinah Shore Drive site. Cook Street also has high volumes, particularly south of the I-10 freeway. The Monterey Avenue/Dinah Shore Drive intersection is one of the busiest intersections in the project area, while the Cook Street/Gerald Ford Drive intersection has significantly less volume. Figure 7 shows the AADT volumes in the project area. This data will inform the traffic analysis that will be performed later in the feasibility study. Figure 7: Annual Average Daily Traffic (AADT) Volumes in Project Area Palm Desert Rail Feasibility Study  13 3.6. EXISTING TRANSIT FACILITIES AND RIDERSHIP SunLine Transit is the agency that provides transit service for the Coachella Valley. Data from SunLine was obtained to examine the current state of transit service in the City. Palm Desert is currently served by SunLine Transit routes 1, 4, 5, 6, 7, and 10. Routes 1-7 are local routes, while Route 10 is the Commuter Link line that connects Indio, Palm Desert and other Coachella Valley communities with San Bernardino and the Metrolink rail system. Route 10 provides service similar to that of the proposed rail service and demonstrates that there is existing demand for transit connections to the Inland Empire and connecting rail services to Los Angeles and Orange County. There is connectivity with Route 4 at the Monterey Avenue/Dinah Shore Drive site. This connects Palm Springs International Airport with the Shops at Palm Desert—with stops serving Downtown Palm Springs, Desert Highland Gateway Estates, Desert Park Estates, Thousand Palms, Monterey Marketplace Shopping Center, and Rancho Mirage, and College of the Desert. Table 1: SunLine Ridership Figures (Fiscal Year 2022) Palm Desert Rail Feasibility Study  14 There is connectivity with Routes 5 and 10 near the Cook Street/Gerald Ford Drive site. Route 5 runs from Desert Hot Springs to Desert Crossing Shopping Center in Palm Desert with stops serving CSUSB PDC and University of California Riverside-Palm Desert (UC-Riverside PD). Figure 8 shows the current transit service and stops in Palm Desert. The proposed rail station would provide an opportunity to form a new transit hub that SunLine can use to coordinate local services and provide a nexus for campus, station, resident, and commercial transportation uses with high potential for new transit-oriented development. The ridership figures from Fiscal Year 2022 for the routes in Palm Desert are shown in Table 1. Route 1 has the highest yearly ridership, followed by Route 4, and Route 6. Figure 8: Existing SunLine Transit Routes and Stops in Palm Desert Route 1 4 5 6 7 10 Passengers 898,073 188,347 12,676 78,443 64,168 19,948 Palm Desert Rail Feasibility Study  15 Boardings in FY 2022 at each bus stop in Palm Desert are shown in Figure 9. The stops near CSUSB PDC had a total of 5,203 boardings. The stop with the highest ridership was at Town Center Way and Hahn Road, with a total of 81,892 boardings. This stop includes service on the Amtrak Thruway bus to Fullerton Station, which has the potential for inclusion in the proposed rail station. Providing a seamless connection between Amtrak Thruway Service and the proposed rail service would improve the ease of transfer for thousands of riders per year. The terminus stop of the Route 7 service at Washington Street and Harris Lane had 14,934 boardings. There is also the potential to extend this service to the proposed rail station. Figure 9: Transit Boardings in FY 22 Palm Desert Rail Feasibility Study *Additional ridership analysis located in the appendix. 16 Table 2: Station Ridership Estimates (2028) Station Number of All Trips (Origin and Destination) Percent of Trips Captured by Rail Service Daily Ridership Estimates Coachella 13,371 0.50% 67 Indio 51,014 0.50% 255 Loma Linda 164 0.50% 1 Riverside 2,257 0.50% 11 Fullerton 46 0.50% 1 Los Angeles 1,416 0.50% 7 Total Daily Ridership Estimate (2028)350 3.7. RIDERSHIP ESTIMATES Based on figures from the origin-destination analysis of the Existing Conditions Report, projections for future daily ridership figures in 2028 were created for the Palm Desert rail station, as well as additional stations that may be constructed as part of new rail service from Los Angeles to the Coachella Valley. These estimates assume that the rail service would capture 0.5% of the trips between Palm Desert and the other station areas. Table 2 below shows the ridership from each rail station and the percentage of all trips that the service is projected to capture. This is intended to be a conservative estimate that does not take into account some of the additional draws such as events at Acrisure Arena, more connectivity between CSUSB campuses, and increases in capture due to future service enhancements. This shows that regional transit use over the San Gorgonio pass could increase by ten times the current ridership on SunLine Commuter Link, largely attributable to the ability to by-pass congestion and the increased reach of a single seat ride.* Palm Desert Rail Feasibility Study  17 4. COMMUNITY MEETINGS AND STAKEHOLDER ENGAGEMENT SUMMARY The City and project team held two public meetings to gather input on a preferred station location for the RCTC Mid Valley Station. Topics discussed included information about the future Transit Hub’s design principles, context, fit, adjacencies, and site constraints. Meetings also collected information about who a new passenger rail station could benefit—from residents to visitors. Materials related to each public open house was also posted on the City’s website “engagepalmdesert.com.” A sample of Online comments are shown below, as well as key themes from the public meetings in Table 3: ◢“I think this project would be great for residents and visitors alike. It will help attract younger folks to the desert and minimize traffic.” ◢“Ideal for both tourism and commuting; I am among the remote workers who moved to the valley from LA in 2020. I regularly travel back, and I would love to have rail as an option for the commute.” ◢“We need this and have needed it for at least 30 years. Our Valley needs to join the 21st Century. Less air pollution and A win for all.” ◢“A must for future growth and combatting climate change.” Palm Desert Rail Feasibility Study  18 Table 3: Key Themes from the Public Meetings Topics Key Themes July 2023 In Person Open House • Overall project timeframe, the planned route, and role of RCTC in selecting a station in the Mid-Valley Region • City of Palm Desert station location options (six options shown) • Station selection design principles (see Chapter 5) • Prototypical characteristics of a desired station facility or “Transit Hub” including examples of non-motorized facilities, parking access and passenger amenity • Considerations of local service connections and supporting transportation modes, such as micro mobility, cycle routes, shuttles etc. • Review of conceptual station location nearby existing and proposed development • Recommendation at the Open House One to move forward three Cook Street sites • Support for the Cook Street Corridor locations, interest in leveraging a partnership with the CSUSB planned campus expansion • Interest and support for station locations that are accessible to the Acrisure Arena • Support for complementary non-motorized access improvements and connecting into a future CV Link • Support for station locations with good regional access, and proximity to existing City commercial areas • Support for the “Transit Hub” concept and provision of adequate passenger amenities – shaded waiting areas • Interest and support for the provision of parking supply; questions on how much parking and type of parking • Strong support for the rail line generally November 2023 In person Open House • Site selection results: two of the Cook Street sites (C1 and C2) accommodate a future RCTC station • Conceptual site plans for the Cook Street sites highlighting potential facility programs and elements including station facility, parking structures and transit-oriented development • A Vision for the Valley: key best practices and design ideas to make the passenger rail station a new gateway to the valley • Community programming opportunities • Next Steps • Interest and support for rail station in the Cook Street vicinity both in online comments, at the City’s Engage Page, and from Open House participants. Many comments included a desire to see the line completed quickly; “desperately needed” to mitigate traffic • Interest and support for rail station for remote work and commuters to LA and to support those who cannot or do not wish to drive. • Concern about stormwater at Cook Street Site due to the impacts of recent flooding • An individual voiced concern about crime; discussion of activated site design to mitigate • Interest in improving Coachella Valley connectedness, seeking future rail coordination with local transit service, and first/last mile options • Interest and support for a staffed passenger facility and access to parking Palm Desert Rail Feasibility Study  19 4.1. CONSULTED INTEREST HOLDERS During this project, the project team and City of Palm Desert met with the following: 1. Riverside County Regional Rail Commission: Several meetings were held to understand RCTC project goals, high level design constraints for platform access, operations, and site assumptions in support of conceptual site plans. 2. California State University San Bernadino. Discussion of proposed rail station locations and discussion of opportunities to coordinate planning with the future campus expansion. The University issued a letter of support for the Cook Street sites. 3. The Berger Partnership and Acrisure Arena: Discussion of proposed rail station locations. Exploration and discussion of partnership opportunities associated with the Transit Hub vision, initial exploration of existing and projected demand for event-related parking, and desired access improvements. There was support for a Palm Desert passenger rail facility at the Cook Street locations. 4. Local Homeowner Associations: Discussion of site boundaries, ownership, and potential impacts at Cook Street, and all potential station site locations. General support for locations that is not adjacent to residential development. Portola and Monterey Avenue site locations were not preferred. 5. The City of Palm Desert conducted meetings with other select property owners who might be impacted by changes at all potential host locations, including the site C1 property owner. 6. Local Transit Service Operators – SunLine and Greyhound: Discussion about preferred site programs, design constraints, and operations requirements. Discussion of several scenarios for bus facility lay out, access, and lay over space. Palm Desert Rail Feasibility Study  20 Palm Desert Rail Feasibility Study 5. PRIORITIZATION OF PROJECT IMPLEMENTATION The Palm Desert Transit Hub’s development should be strategically prioritized, aligning with the initiation schedules of services from the collective cities, regions, and RCTC. The foundational premise is that the site will serve as a multimodal hub catering to local and regional needs, even before the commencement of rail services. It will initially support basic functionalities for buses, shuttles, and parking, with provisions for expansion in anticipation of rail services. Should the City decide to commence site enhancements ahead of rail operations, the following prioritization framework is proposed: 5.1. SITE PREPARATION The initial step involves executing preliminary site work and establishing the City’s stormwater management system. Early construction efforts will focus on rough grading, soil stabilization, and the installation of essential site utilities, including sewer, stormwater management systems, water, power, and communication infrastructure such as fiber optics. 5.2. SITE CIRCULATION AND PARKING Development of site access and internal circulation routes to support the transit services initially provided. This encompasses constructing roundabouts at station entry points on Gerald Ford Drive, facilitating ingress to parking spaces, and arranging drop-off/pick-up lanes. The infrastructure would also extend to bikeways and facilities; multi-use paths; associated utilities encompassing site and path lighting, solar installations, charging stations; and sidewalks. The development of parking facilities can be scaled to align with passenger volume and potential shared use by Acrisure Arena and/or CSUSB. A surface parking lot can be provisioned initially with structured parking planned to coincide with rail service. The full buildout of anticipated structured parking needs would be required to be built at once if a single garage is proposed. The construction of bus access points and passenger zones may proceed simultaneously or be deferred based on the anticipated services. Initially, regional and local bus services could share the designated passenger pick-up/drop-off areas. With the increase in bus service coinciding with the start of rail operations, dedicated bus loops and stops could be established. 5.3. STATION FACILITIES The station facilities and supporting amenities could be introduced prior to or simultaneously with the introduction of rail service. The facilities would include the Station Building, incorporating air-conditioned waiting areas, ticketing and information services, restrooms, concessions, and back of house. The facilities would be developed to accommodate RCTC, SunLine, and the City of Palm Desert. Together with the station building, the bike station, and vehicle rental service kiosks would be built along with exterior waiting areas, shade structures, and landscaping.  21 5.4. RAIL PLATFORMS AND VERTICAL CIRCULATION Predicated on the development of the RCTC rail services, this phase would see the construction of rail platforms, shelters, passenger amenities, pedestrian overcrossing, elevators, and stairs, supported by necessary services, including signage and wayfinding, and utilities such as lighting, power, and water. 5.5. TRANSIT ORIENTED DEVELOPMENT (TOD) IMPROVEMENTS TOD Improvements could be prioritized based on the timing of the collective cities, regions, and RCTC services are scheduled to begin. The base assumption is rough utility stub outs and services to the TOD sites would be constructed during the site preparation phase and each site would be developed by their respective developers. This structured approach allows the Palm Desert Transit Hub to evolve in phases, integrating with future transportation services while catering to immediate and future mobility demands. Palm Desert Rail Feasibility Study  22 Palm Desert Rail Feasibility Study 6. STATION SITE SELECTION AND FEASIBILITY ANALYSIS 6.1. STATION SITE DESIGN CONSIDERATIONS Palm Desert occupies a strategic position in the heart of the Coachella Valley, located at the midpoint of the RCTC’s “Mid Valley” station geography. It is equidistant, about 15 miles, from both the existing Palm Springs Station and the future Indio/Coachella terminus station. The City envisions a new RCTC station location and facility design that leverages this centrality, facilitating valley accessibility for residents and visitors alike, and creating a new, convenient gateway for its many destinations. The site locations describe connections with vital regional transportation routes; are adjacent to land uses such as employment, education, healthcare, culture, and leisure; and are accessible to a wide range of amenities. All sites benefit from excellent access notably the Cook Street multimodal corridor connecting I-10 with State Route 111 (SR-111)—the main north-south transit route and retail corridor serving the Coachella Valley. The site considerations aim to: ◢Establish the best site that will serve all residents and accommodate other transportation modes, including SunLine Transit Agency ◢Identify and test a preliminary design on the selected site, suitable for intercity passenger rail service ◢Demonstrate how an accessible station would function Design goals for the future station location are: Community Serving. The station location should provide equitable access for all communities in the Coachella Valley, local and regional visitors, and vulnerable populations. Accessible. A future station location should have excellent site access for vehicles, buses, and pedestrians. It should be proximate to major streets, Coachella Valley assets, and key destinations. Intuitive Arrival. The future station should be highly visible with a functional site configuration. Connected. A future station should enable future connections to local transit service providers and support a range of transportation alternatives. Supports Economic Development. The selected station location should facilitate partnerships with other Valley stakeholders and be attractive to uses that can complement a future station. Future Flexibility. The site location should provide adequate space for an appropriately scaled facility and the ability to expand in the future.  23 6.2. STATION LOCATION PRELIMINARY SELECTION AND SCREENING The project team identified site areas suitable for a future RCTC Mid-Valley Station. All preliminary station locations exhibit the following attributes: ◢Location adjacent to the Union Pacific Railroad (UPRR) Right-of-Way (ROW) that will support 1000’ long platforms ◢Available undeveloped parcels along the ROW boundary edge of sufficient size to enable adequate site circulation, parking, and facilities (+/- 4 acres) ◢Adjacency to existing or planned commercial, retail, and transit supportive land uses (e.g., services, educational, hospitality, medical, leisure, recreational facilities, etic.) ◢Excellent access to regional street networks and access to nearby local transit service The team focused on the locations with direct access to north-south multimodal corridors connecting I-10 with SR-111, supporting regional connectivity. Multimodal corridors assessed: ◢Monterey Avenue, a north-south corridor with direct I-10 access with auto-oriented commercial, retail, and shopping near the station area ◢Portola Avenue, a street with a planned I-10 freeway connection adjacent to hospitality and residential areas and a new city park ◢Cook Street corridor, an area with existing entertainment, retail and residential uses, and a planned expansion of the CSUSB Palm Desert, and UCR PD campus. Cook Street is also designated for a future micro- mobility network and planned “complete street” roadway improvements The pre-screened identified sites are shown in Figure 10. This screening was presented in a City of Palm Desert Public Open House in July 2023. The screening focused on topics related to improved connectivity for riders, mobility and access, site challenges, and future development opportunities. The site assessment process from the July 2023 open house shown in Table 4 resulted in the three Cook Street sites ranking the highest. Qualitative assessment and key questions included: Rider Experience: Does the station option enable direct and safe connections to I-10 and the local/regional street network? Does it connect to bikeways, cart paths, and pedestrian infrastructure? Does the site present an opportunity for reducing reliance on personal vehicles? Is its location visible and prominent? Mobility and Access: Does the option improve on traffic and other modes’ circulation and management needs (access to parking, station, or entertainment activities)? Challenges: Is the project consistent with the City’s vision and land use goals? Do adjacent land uses support a station location? Is there construction, geometric, or technical feasibility challenges? Do specific spatial or other constraints preclude a station? Is there infrastructure to support it? Future Investment: Is the location favorable for development? What partnership opportunities are available? Does the station location fit into the City’s or stakeholder’s identified goals and priorities? Palm Desert Rail Feasibility Study  24 Figure 10: Identified Station Sites Palm Desert Rail Feasibility Study  25 Palm Desert Rail Feasibility Study Table 4: Station Site Assessment, July 2023 Open House Station Site Locations Rider Experience Mobility and Access Challenges Future Investment Advance? Monterey Ave M1 Limited visibility into proposed site, adjacent development is less walkable. Monterey Ave is a higher traffic volume, auto-oriented corridor connecting to the I-10. The intersection of Monterey Ave and Dinah Shore Dr has the third highest number of collisions in the City. Micro-mobility connections are challenging along Monterey due to the higher traffic volumes and speeds. Site is space constrained for passenger drop off and arrival via car. Less connected for local bus service. Redevelopment of adjacent parcels to transit-oriented uses requires collaboration of adjacent private landowners. No Portola Avenue P1 Site has good connections to south and central Palm Desert. Adjacent to planned developments to the south and east. Portola connects a series of residential neighborhoods. It has separated bike facilities and lower traffic volumes. Site is adjacent to a future Portola freeway over crossing and exit for site access. Portola is a lower intensity roadway which could allow for micro-mobility network connections. Adjacent to residential development; transit uses may be incongruous. Potential for new Portola Avenue I-10 crossing. Low TOD opportunity. Located within lower scale residential neighborhood. No P2 Limited quick access to the site due to reliance on smaller secondary roads. Station site is located within a planned city park. Requires use of land planned for city park/open space. Site is adjacent to residential uses which could be sensitive to station noise. Limited opportunity for denser housing. Potential opportunity to coordinate with future public park to create a “park station”. No  26 Station Site Locations Rider Experience Mobility and Access Challenges Future Investment Advance? Cook Street C1 Adjacent to retail, good visibility from Cook Street and I-10 Cook Street is identified in the General Plan as a “multimodal corridor.” Cook Street is transitioning to become an important connector across the city, connecting the University area, the resorts along Cook Street, and downtown Palm Desert via Fred Waring and Highway 111. Challenged vehicle circulation and entry approach. Location is further from core of CSUSB campus and Arisure Arena. Cook Street bridge structure over tracks poses constraints onto rail alignment and platform positioning. Redevelopment of adjacent parcels to transit oriented uses requires collaboration of adjacent private landowners. Yes C2 Well connected to proposed CSUSB Palm Desert Campus expansion. Visibility from freeway. Location is further from Acrisure Arena. More constrained site development between two already developed sites. High TOD opportunity. Supports General Plan goal to facilitate the development of a university- oriented neighborhood and “town center” Yes C3 Well connected to proposed CSUSB Palm Desert Campus expansion. Visibility from freeway. Potential for future bridge crossing to the north side of I-10 with a connection to Acrisure Arena. Access to Acrisure Arena is contingent on a future bridge crossing over the 1-10. High TOD opportunity. Supports General Plan goal to facilitate the development of a university- oriented neighborhood and “town center.” Closest location to Acrisure Arena with potential for coordination of on/off site shared parking and future connection crossing I-10 to the arena. Yes Due to various challenges, the city decided to not move forward with sites M1, P1, and P2. Though they are vacant, M1 is adjacent to the highest collision intersection in the city, making micro mobility and transit options limited and challenging. Meanwhile, P1 and P2 sit along Portola Ave., a lower volume residential street and a future planned park area, making a popular station area incongruous with surrounding uses. Palm Desert Rail Feasibility Study  27 Transit Facility Design Assumptions To assess suitability of the station sites moving forward (C1, C2, and C3), the project team established high-level assumptions including platform criteria, transit facility requirements, parking, bus accommodations, and transit-oriented development objectives. Critical siting parameters for the rail platform and station structures were developed in coordination with RCTC. The assumptions led to preliminary concept plans for sites C2 and C3. Preliminary concept plans were shared in a second Public Open House in November 2023. Building from comments on C2 and C3 and further study of the assumptions below, a preferred conceptual site plan was developed and is shown in Section 5.3. Siting Constraints Future rail platforms and stations must meet RCTC technical requirements and its forthcoming station design criteria. All facilities sited within the Union Pacific Railroad (UPRR) right-of-way (ROW) are subject to UPRR approval. RCTC is coordinating directly with UPRR to clarify these constraints. Final platform and track configurations remain unresolved at this time and will evolve during subsequent phases of this project led by RCTC. Design assumptions, listed below in Figure 11, build from the RCTC San Gorgonio Passenger Rail Corridor Service Program Tier 1 EIS/EIR, and incorporate accessibility, fire and life safety standards, and Amtrak passenger facility design standards1. ◢Trackway: The RCTC San Gorgonio Pass Project will provide three mainline tracks vs the two currently located in the UPRR ROW. UPRR’s ROW is 150 feet wide, and with the addition of the new mainline, additional ROW will be required at the station platform locations to accommodate two platforms and the required access roads etc. For purposes of the facility concept development and station siting, the team assumed the north mainline track will relocate to accommodate the 3rd mainline track while the south mainline track will be modified to accommodate a new center passenger platform. ◢Operations: Operating passenger rail services within a UPRR freight corridor presents constraints due to the different operational, safety, and infrastructure requirements of freight service. To preserve operational flexibility for both freight and passenger operator’s platforms allow for RCTC trains operating on any of the main line tracks in either direction to arrive at the platform. Both a center and side platform configuration have been considered. ◢Crossings: UPPR does not allow at grade crossings of the mainline track. All passenger access to the center platform will require a grade-separated crossing to access the platform including elevators, and bridge connection. A side platform can be accessed at-grade, passengers may board and alight into the station building directly. While either an undercrossing or overcrossing is acceptable, an overcrossing is the assumed alternative for this study. ◢Clearances and Protections: UPRR requires a clearance envelope of 23’-4” above top of rail, 5‘-6” from center line of track to the edge of platform and 12’-4” inches from the centerline of track to any permanent structure. 1AMTRAK Station and Development Guidelines, January 2022, v.4 Palm Desert Rail Feasibility Study  28 Platform Assumptions: ◢(1) 36-foot-wide center platform serving passengers in both directions located between the two northerly mainline tracks ◢(1) 20’ wide side platform served outside of the third mainline track ◢A pedestrian bridge spans the two most southerly tracks providing platform access and egress to the center platform ◢Platform length: 1,000-foot platforms accommodate up to 10 cars ◢Providing shade and mitigating wind are important for passenger comfort and have been included as a design assumption for the platform. A 36-foot-wide center platform allows up to 16 feet of shelter width. Maximizing the canopy width will address low sun angles Additional site constraints: ◢The City of Palm Desert owns and manages an open storm drainage channel that extends along the boundary between the UPRR ROW and the Cook Street station sites. The open storm drainage channel may preclude an underpass or below grade platform connections due to flood mitigation and conflicts with the channel construction and management ◢Stormwater management will include an on-site stormwater retention area on the C3 site ◢High voltage power transmission lines run along the south edge of the ROW within city-owned property at the north end of the C- sites. Further study will be required to assess the cost and feasibility to underground the power lines to accommodate the pedestrian overcrossing to the platform. Design assumptions assume undergrounding to avoid interference ◢All sites are susceptible to high winds and blowing sand. Mitigating sand accumulation is a consideration for building and passenger amenity siting ◢Heat and sun require mitigation with large outdoor shade canopies at all outdoor passenger waiting areas and pedestrian walkways. Figure 11: Station Platform and Track Design Assumptions PREFERRED SCHEME SCHEME B ACCESS ROAD VARIES PER SITE SELECTI0N 30' 30' 100'1000' 46' - 8" 20' 100+00 106+00 118+00 124+00 36' 20' 20' 100' 108' 20' 20'ML 1ML 2 ML 3 ACCESS ROAD CO O K S T UPRR ROW INTERSTATE 10 LEGEND Existing Rail New Rail Station Platform Access Bridge Palm Desert Rail Feasibility Study  29 Vertical Circulation and Connectivity Assumptions A pedestrian overcrossing to the center platform vs an undercrossing for the reasons cited above form the basis of the conceptual design. To meet accessibility requirements to the platform, both ramps and elevators were considered. The UPRR height clearances above top of rail to the underside of the pedestrian overcrossing is 23’-4” with a total vertical distance of ~ 30’ from the station level. The preferred solution is installing elevators over ramps for the above grade crossing. This preference is based on several factors, including space constraints, the impact on the platform’s usability, and the overall efficiency of passenger movement. Long ramps, extending over 400 feet on either side of the bridge, were considered impractical for several reasons: ◢Space Constraints: The platform space is limited, and long ramps would significantly encroach upon areas intended for passengers and amenities—such as seating areas, information boards, and other facilities ◢Passenger Experience: The use of long ramps would adversely affect the travel time for passengers, making it more time- consuming and physically taxing to access the train platform. This could be especially challenging for those with mobility issues or those carrying luggage, potentially making the station less accessible to a portion of the public Given these considerations, elevators are seen as the preferred solution to provide an accessible route to the center platform. Elevators would occupy less space, have minimal impact on the platform’s functional areas, and offer a quicker, more efficient way for all passengers, including those with disabilities, to access the platform. This aligns with the goal of making public transportation systems accessible to everyone, following principles of universal design and compliance with the Americans with Disabilities Act (ADA) It is proposed that the pedestrian bridge provide direct connections to both the parking structure and the station building to minimize walking distances and reduce the potential need to go up and down multiple times between destinations. This shared use of elevators can also enhance convenience for commuter passengers by providing a seamless transition between parking, the station, and train services. Ancillary Uses and Structures The site selection processes considered both the potential and ease for on-site transit-oriented development at the Cook Street sites to enhance site functionality and convenience. Various scenarios were evaluated for buildings, public space, parking, access routes, and use mix. The City of Palm Desert Zoning and Land Use policies will determine the type, scale, and volume of permitted development. Local Transit Service This study assumes a maximum coach/bus length of 45-feet and no future articulated buses (this would require larger turning radii and maneuvering space). Straight curbs are preferred over sawtooth bus geometries. No fueling or charging infrastructure needs are anticipated in the current program. A dedicated bus loop and dedicated curb space should be included to avoid conflicts with vehicular traffic. Palm Desert Rail Feasibility Study  30 Local Road Access Gerald Ford Drive is the primary access point to the station site via Cook Street, which in turn provides access to other Palm Desert neighborhoods and I-10, or Frank Sinatra Drive. Traffic analysis has shown that there is sufficient roadway capacity on Cook Street and the I-10 interchange to support new development and station activity. Gerald Ford Drive will need to be expanded to allow 2 travel lanes in both directions with appropriate turn lanes and intersection control at major campus entrances, the station entrance, and for the proposed new fire station. The station design concept and cost estimates assume construction of a roundabout at the station entrance. Figure 12 shows the anticipated profile for Gerald Ford Drive that will support a multimodal friendly neighborhood access route. 5 Sustainability PPoo tteenn tt ii aa ll cc oo nnddii tt ii oo nnss:: •‘Right-sized’ street •Environment for walking and biking •Wide sidewalks and two-way cycle track •Supportive of transit-oriented development Figure 12: Anticipated profile for Gerald Ford Drive Palm Desert Rail Feasibility Study  31 Other Physical Design Constraints The City of Palm Desert owns and manages an open storm drainage channel that abuts the UPRR ROW to the south. It is assumed that the open storm drainage channel may preclude an underpass or below grade platform connections due to flood mitigation and conflicts with the channel construction and management. The City of Palm Desert is also exploring approaches to mitigate stormwater—especially in the Cook Street corridor. Options for stormwater management may include a new stormwater retention area on the C3 site. The design of this area is outside the scope of this study. High- powered transmission lines line the south edge of the ROW within city-owned property. Further study will be required to assess the cost and feasibility to underground elevated power lines. This feasibility study assumes power lines are underground to avoid interference with a bridge overcrossing to the platforms. Selecting the Preferred Site Location The project team applied the design assumptions to the three Cook Street Sites to understand the potential for each site to host the station facility. Findings are summarized below and shown in Figure 13. Figure 13: Cook Street Site Evaluation Map Palm Desert Rail Feasibility Study  32 Palm Desert Rail Feasibility Study Cook Street evaluation findings: Both C2 and C3 have the technical ability to host the rail platform and ancillary station structure. C1: While the site is of sufficient size and strategically located near Cook Street, it faces significant challenges. Access to the site from Gerald Ford Drive and the CSUSB campus is indirect, which complicates access to the site for vehicles and buses and creates circulation challenges. The site is constrained from the Cook Street overcrossing bridge abutments and columns that restrict where a rail turnout can begin for the start of the platform. The site visibility from both Cook Street and the I-10 freeway is also negatively impacted due to the overcrossing ramp structures. C2: While smallest in size, C2 provides adequate area for a transit facility and offers good connections to the CSUSB campus planned expansion, and good site visibility. A drawback is a planned development on the site at of the time of this report’s publication which may eliminate it as a viable option. C3: This is the largest site and offers more area than C1/C2. C3 meets all design assumptions and offers flexibility for a variety of complementary programs/development. The C3 site is directly accessible from the CSUSB campus expansion and may offer a “Gateway” opportunity to welcome visitors to the campus. The site has high TOD opportunity and potential to coordinate for on or-off-site parking for Arena. There is potential for future bridge crossing to north side of I-10 and connection to Acrisure Arena. There is also potential to coordinate for on or-off-site parking for Arena. This location supports the City of Palm Desert’s General Plan goal to facilitate the development of a university-oriented neighborhood. A stormwater mitigation study is currently underway. C3 is the preferred location. This site offers not only flexibility for a future station platform but has the potential to support broader city goals and leverages the potential expansion of the CSUSB campus and access to Acrisure Arena. The City is in discussions with the property owner to purchase the parcel.  33 Palm Desert’s vision for a future RCTC station is to create a “transit hub” serving the Coachella Valley and provide options for all Coachella Valley residents and visitors integrated travel options to connect where they work, learn, live, shop, and play. The vision for the Transit-Hub is to create a safe, vibrant, and accessible station area providing users access to community- oriented services and affordable housing, together with compatible off-peak secondary uses to create resource-efficient, high-quality, and environmentally healthy developments that maximize the social and economic vitality of the region. The conceptual Transit Hub design will serve RCTC rail passengers and future Amtrak passengers as well. The design accommodates local bus and shuttle transfers, facilitates park and ride uses, transfers between micro-mobility options, and connects to the City’s bike network extending to CV Link. The site can also be developed incrementally, and in coordination with its adjacent landowners – UCR and CSUSB. Key elements to be considered for a successful station area include (see Figure 14): Figure 14: Palm Desert Transit Hub Visioning Sketch 6.3. THE PALM DESERT TRANSIT HUB VISION Palm Desert Rail Feasibility Study  34 Transit Facility Program Building from the vision above and meeting the design assumptions listed in section 5.2., a conceptual site plan and station renderings (Figures 14, 15, 16, and 17) illustrates the transit facility’s core components and includes opportunities for a future final build out scenario. Core components shown on the site plan are: 1. Center and Side Rail Platforms 2. Dedicated Local and Regional Bus Pick Up and Drop Off 3. Passenger Amenity Spaces and Shade Covered Outdoor Waiting Area and Pedestrian Circulation 4. Station Services/TOD Development Opportunities 5. Structured Parking 6. On-Site Stormwater Retention Basin 7. Multimodal Connections to CSUSB Campus Cycling, rideshare, transit, shuttles, private buses, event mobility, micro-mobility, car share, and pedestrian access are accommodated in the transit hub concept. Figure 15: Palm Desert Transit Facility Conceptual Site Plan Palm Desert Rail Feasibility Study  35 Figure 17: Palm Desert Transit Facility Rendering Figure 16: Palm Desert Transit Facility Conceptual Site Plan #2 Figure 18: Palm Desert Transit Facility Rendering #2 Palm Desert Rail Feasibility Study  36 Identifying Opportunities ᇷ Create a destination through placemaking: Passengers will alight from the train and platform into an activated station building and welcoming “station square”. The concept illustrated above focuses on the arrival experience that accentuates relaxed easy access into “the heart of the Coachella Valley”. The station will be designed to host quality, hospitality-conscious visitors and residents. The building will encompass ticketing functions, wayfinding, and passenger amenity space (e.g., concierge/visitor center, bathrooms, waiting areas, etc). Plantings serve a useful passenger comfort function by providing shading and visual interest. Future designs should consider strategically incorporating plantings to provide shade for walking and waiting areas as well as reduce heat island effects of paved areas. Water elements and passive evaporative cooling should also be incorporated. Native plants will be selected to support local biomes and flora/fauna. Preliminary concepts for the station facility are described as follows: ◢Generous conditioned space for waiting, ticketing, and support spaces ◢Integrated retail and passenger amenities (e.g. concierge (security), bathrooms, coffee kiosk, etc.) ◢Ancillary administrative spaces are included as components of the station building ◢A shaded porte cochere, drop off area, and landscaped plaza area support passenger comfort for those leaving and arriving at the station ◢Comfortable outdoor waiting space incorporated into the station site ◢Flexible curb space will facilitate the transfer to multiple transportation modes ◢At least 200 feet to facilitate transportation network companies (TNC) and shuttle drop offs as well as passenger vehicle drop offs ᇷ Explore Opportunities for Transit Oriented and Joint Development: Land uses on the site should support/compliment transit and visitor- serving usage. This might include walkable convenience retail, food and beverage, and other activities that contribute to create an active environment. Land uses may also be oriented to pre- or post-event visitors and can make the area a destination for evening event goers at the nearby arena. A hotel, and on-site hospitality functions, may have some potential to encourage rail service passengers to stay overnight and be able to visit the valley car-free. The project team explored the opportunity for leasable square footage to be incorporated into the station building or into the ground-floor of the parking garage. The anticipated growth of the CSUSB campus is certain to be augmented by the arrival of rail service, and offer greater and more convenient access for students throughout the region. Additionally, the “town square” with complementary uses identified above broadens the campus offering for both students and faculty. ᇷ Planning for Regional Bus Service: SunLine does not operate on Gerald Ford Drive; however, growth may enable future direct services or interchanges at the proposed transit facility. SunLine’s Number 10 Bus Line is a commuter service with a stop at CSUSB and along I-10. In the future, SunLine service could complement both the new passenger rail commuters and the expanded campus, including reoriented routes. There is an opportunity to include a bus layover at the station facility, as well as a future driver breakroom. In the case of mechanical breakdowns or bus exchanges, a parking zone for disabled buses should be considered if space allows. Palm Desert Rail Feasibility Study  37 Based on meetings with SunLine, the draft concept plan assumes a 45- foot coach/bus maximum length and no future articulated buses (which would require larger turning radii and maneuvering space). Straight curbs are slightly preferred over sawtooth bus geometries. Future fleets may include hydrogen or electric operation, but no fueling or charging infrastructure needs are anticipated. A dedicated bus loop and dedicated curb space is shown to avoid conflicts and delays with private vehicular traffic. POTENTIAL NEXT STEPS: ◢Further discussions with SunLine will ensure the new station site fits into the future SunLine network and creates those first/last mile connections with the surrounding Coachella Valley. Palm Desert Rail Feasibility Study  38 ᇷ Beyond Traditional Transit Operations: The Palm Desert Station facility could offer opportunities for partnerships with regional institutions, event operators, and destinations. For example, the transit facility can serve as a connection point for rail passengers to resorts, local casinos, event spaces such as Acrisure, annual festivals, sports events, local and regional tour operators, and others. The site design can support passengers arriving on foot, by car, transit, micro-mobility, or other means. Programs envisioned for the future station are listed below, and shown in Figure 19. ◢Bus exchange to local transit providers (SunLine) ◢Flexible curb space for rideshare such as TNCs, Drop Off/Pick Ups, Taxis ◢Shuttles and private buses (ex: events) ◢Micro-mobility and rental/share programs (ex: E-bike, golf cart parking or rental) ◢On-demand car rental parking and pick up/drop off ◢Passenger amenity spaces such as protected waiting areas ◢Complementary site uses such as convenience, retail, or eateries. ◢Parking for long-term and short-term users Facilitating these connections would require planning for appropriate curb space for peak passenger loads meeting arriving trains. Exploring partnerships to mode-shift visitors to rail travel can help facilitate a reduction in VMT for visitors and residents of the Coachella Valley. Private operators may own and maintain their own vehicle fleets or sub-contract at specific times for special events. Figure 19: Example of Envisioned Programs for the Palm Desert Rail Station Palm Desert Rail Feasibility Study  39 POTENTIAL NEXT STEPS: ◢Continue to coordinate with SunLine on future service network expansion to serve a future transit facility ◢Explore options to connect existing commuter services with on-site parking and other mobility connections ◢Plan future micro-mobility networks (golf cart paths, bike lanes, etc) into the buildout of the transit facility ◢Explore opportunities for partnerships with shared parking, shuttles, and intermodal transfer to leverage public and private investment with institutions, neighbors, key valley destinations, and stakeholders ᇷ Park-and-Ride Facilities Parking can be phased to expand as service increases. Commuter and short-term parking will become more desirable as rail service increases in frequency. Lower frequency train schedules are less attractive for commuter riders, but would be appropriate for CSUSB students, day trips, weekend trips, leisure trips, or longer periods of time. At full rail service in the future, a structured parking garage is assumed on the site to allow for shaded and protected parking and to free up adjacent land for transit supportive/complementary uses and facilitate the establishment of a new “town center.” A parking garage serving riders is also assumed in the final configuration. POTENTIAL NEXT STEPS: ◢Further study is required to confirm phased parking quantities, types, and arrangement in coordination with RCTC passenger ridership estimates and potential site users ◢Identify opportunities for shared off-site parking for Acrisure Arena, or with CSUSB. These alternative parking uses can leverage investments and improve the return on investment (ROI) for built parking infrastructure ᇷ Opportunities for Connections and Improvements to the Street Network: A new Class-I bikeway assumed along the rail alignment will complement the Coachella Valley’s network of E-vehicle (ex: Golf Cart) and multimodal pathways (Ex: Coachella Valley Link). POTENTIAL NEXT STEPS: ◢Coordinate multimodal connections to the south to adjacent developments and the CSUSB campus core ◢Consider opportunities to tie into valley networks more broadly (i.e. such as along the Cook Street corridor). ᇷ Public Improvements: Gerald Ford Drive is the key access road that will provide access to the station site. Today Gerald Ford Drive has two lanes heading westbound and one lane heading eastbound. With the changes proposed for the CSUSB campus expansion, and a potential transit hub, this street could be redesigned to included landscape buffers, wide sidewalks, and incorporate traffic calming features to facilitate walking, biking, and micro-mobility network safety to support a walkable “town center.” Gerald Ford Drive’s character (e.g., width, pathways, mobility networks, pedestrian safety) can be considered to strengthen walkability and connectivity between the transit hub location and adjacent development and complementary uses. Palm Desert Rail Feasibility Study  40 POTENTIAL NEXT STEPS: ◢Lane quantities and level of service (LOS) analysis should be confirmed especially as planning for the CSUSB campus and adjacent development gets confirmed to support future traffic volumes ◢Additional pedestrian amenities or dedicated infrastructure for bikes and micro-mobility networks can be included in any future roadway redesign ◢Consider roundabout or traffic circle options for new intersections along Gerald Ford Drive. Similar circles have been incorporated on roadways elsewhere within the City of Palm Desert (e.g., Dinah Shore Drive and Pacific Avenue) and provided requisite traffic calming and moderated speeds to facilitate safe vehicular travel of all modes ◢Use public realm improvements to include placemaking opportunities (e.g., traffic circles, prominent urban corners, and view corridors) that can be incorporated into future design thinking to establish “a sense of place” for the new station area and “town center”. ◢If traffic circles are incorporated into a future Gerald Ford Drive design, coordinate with planned vehicular circulation needs (e.g., Buses, shuttles, emergency vehicle, etc. turning radii) and available site area for station site development areas. ᇷ Future Gateway Bridge: A future connection opportunity includes a bridge connection across I-10 to Acrisure Arena. This connection is envisioned as a pedestrian/ micro-mobility network connector that could facilitate pedestrian access all the way up to small scale shuttle vehicles. This connection dramatically shortens the distance on the local road network between the station and the arena from about 2.5 miles via Cook Street to approximately 0.5 miles. The connection also supports reducing auto traffic associated with large events and could facilitate the utilization of on-site station parking during off-peak times for use by arena event goers. Solving for a connection to the arena may also provide additional revenue streams to the city through parking fees or additional tax receipts from local businesses. POTENTIAL NEXT STEPS: ◢Continue to explore with Caltrans and RCTC an opportunity for a future connection to Acrisure Arena. ◢Continued outreach with Acrisure Arena for future transportation integration ◢Lastly, future provisioning of an I-10 bridge crossing should be considered with future planning and opportunities for grant funding ᇷ Partnerships: Ongoing coordination with CSUSB / UCR campus planning can ensure the long-term campus vision is coordinated with any proposed transit hub planning. POTENTIAL NEXT STEPS: ◢Continue discussions with local property owners and institutions (ex: CSUSB) to synergize site planning, uses, and development opportunities. ◢New streets transportation linkages from the transit facility and through the campus should be coordinated with future campus planning. ◢Coordinate with the planned fire station and street design along Gerald Ford Dr. Palm Desert Rail Feasibility Study  41 6.4. CEQA PRELIMINARY ENVIRONMENTAL STUDY The next steps in the RCTC San Gorgonio Pass Project will be a Tier 2 EIR/ EIS review. During this phase, a detailed assessment description of the selected project site will be developed—including location, background, objectives, and technical details. This phase also often includes necessary permits and approvals. During environmental review, the project will focus on potential impacts and unique issues not covered (or were only covered generally) in the now complete Tier 1 analysis. During Tier 2, the project will identify and assess the “footprint” of potential station sites. As necessary, mitigation measures will address the new or more severe impacts identified. Topics within the EIR are comprised of areas such as: ◢Air Quality and Climate Change: Analysis of emissions resulting from construction and operation, including greenhouse gas emissions and their contribution to climate change, as well as conformity with state and federal air quality standards, appear to be within state guidelines with a net benefit from supporting multimodal alternatives to driving private vehicles ◢Water Resources: Analysis of the project’s impact on local water supply, quality, and hydrology, including stormwater management and potential flood risks indicates the site can support potential storm water management best management practices (BMP). A further study is being conducted by the City of Palm Desert assessing this ◢Biological Resources: Evaluation of impacts on local wildlife, habitats, and ecosystems, especially considering the Coachella Valley’s diverse desert ecology. This includes potential effects on endangered species and sensitive habitats. Initial assessment showed no adverse impacts ◢Cultural and Historical Resources: Consideration of impacts on archaeological sites, historic buildings, and cultural landscapes, ensuring compliance with relevant preservation laws, revealed no adverse impacts ◢Socioeconomic Impacts and Environmental Justice: Analysis of how the project affects local economies, property values, and particularly, the distribution of environmental benefits and burdens across different socioeconomic groups; ensuring equitable outcomes showed a positive impact ◢Transportation and Traffic: Evaluation of the project’s impact on local and regional transportation networks, including traffic congestion, changes in traffic patterns, and integration with existing transportation modes showed no significant adverse impacts ◢Noise and Vibration: Assessment of noise and vibration impacts on nearby communities from construction activities and the operation of trains, including potential mitigation measures were not assessed ◢Land Use and Planning: An initial assessment of how the C3 project site project aligns with existing land use plans and zoning ordinances showed no adverse impacts with community benefits, including promoting sustainable land uses ◢Visual and Aesthetic Resources: Assessment of the project’s visual impact on the surrounding landscape and urban environment, including views and community character, indicate a positive impact ◢Public Health and Safety: Examination of how the project affects local communities’ health and safety, including emergency services accessibility, showed no adverse impacts. A preliminary screening of both site locations, C2 and C3, showed significant environmental impacts beyond the typical are not projected. Palm Desert Rail Feasibility Study  42 An area that will require further resolution in the next phase of work is assessment of cultural resources. The sites are located beyond the scope of the most recent maps conducted for the City of Palm Desert General Plan2. Consultation and coordination with local tribal entities will also be conducted during Tier 2 studies. Site Prominence C1 C2 C3 Visual Resources/ Aesthetics Visibility from Street Poor Excellent Excellent From I-10 EB – Obscured EB – Good EB – good WB - good WB - good WB - good From Cook obscured by ramp poor poor From Gerald Ford obscured by development good good Direct Connection to Primary Travel Corridors C1 C2 C3 Traffic and Transportation Vehicular and Transit Access Fair Excellent Good Distance from Arterial Cook Street .38 mi Cook Street .28 mi Cook Street .55 mi Gerald Ford .18 mi Gerald Ford 0 mi Gerald Ford 0 mi Transit Connections Cook Street .38 mi Cook Street .28 mi Cook Street .55 mi Number of turns in / out of property Cook St: 5 Cook St: 2 Cook St: 2 Gerald Ford 3 Gerald Ford 1 Gerald Ford 1 Connection to CSUSB Palm Desert Campus Indirect Direct Direct Vehicular Connection - Acrisure Arena Cook Street 1. 70 mi Cook Street 1.96 mi Cook Street 2.24 mi Pedestrian and Bicycle Access Good Good Good Table 5: Palm Desert CEQA Site Evaluation 2 https://www.palmdesert.gov/home/showpublisheddocument/34535/638373010609730000 p. 90 Palm Desert Rail Feasibility Study  43 Site Prominence C1 C2 C3 Traffic and Transportation (continued) Bicycle & Golf Cart Network Direct to Cook, indirect to Gerald Ford Indirect to Cook, direct to Gerald Ford Direct to Cook, indirect to Gerald Ford CV Link from Cook,from Cook,N/A CSUSB Palm Desert Campus Connection Not aligned Alignment with primary axis Alignment with primary axis Acrisure Arena Cook Street 1.70mi Cook Street 1.96 mi Cook Street 2.24 mi Ped Bridge .90 mi Ped Bridge .61 mi Ped Bridge .29 mi Site Suitability C1 C2 C3 Socioeconomic Impact Transit Oriented Development (TOD) Potential Good Good Good Buildable Area 7.1 acres 4.6 acres 8.2 acres Mixed Use Viability Good Fair Fair Shopping,hospitality, recreation, services, employment and arts and culture. Good Fair Fair Parcel Acquisition / Joint Dev Opportunity Fair Poor Good Parcel Availability Existing Development Plans Existing Development Plans N/A Parcel Cost $$$$$$$$ Highest and Best Use No Yes Yes Joint Development Opportunity Yes N/A N/A Potential Infrastructure Costs High Fair Fair Trackwork, geometry constraints High Low Low Palm Desert Rail Feasibility Study  44 Site Prominence C1 C2 C3 Socioeconomic Impact (Continued) Bridge Abutments / RR ROW High Low Low Utilities N/A N/A N/A Controlled intersections 2 1 1 Land Use Compatibility C1 C2 C3 Land Use and Planning Site Adjacencies Good Good Good Town Center Neighborhoods Good Fair Fair Employment District Good Good Good Public Facility / Institutional District Good Good Good CSUSB Interface Fair Good Good Environmental Consequences C1 C2 C3 Environmental Impacts Good Good Good Air Quality (Sand Mitigation)Good Fair Fair Storm Water Management Good Good Good Noise Good Good Fair Biological resources Good Good Good 6.5. COST ESTIMATE Construction of a rail station suitable for the estimated level of traffic and the resort gateway architecture that is needed to provide the visitor experience expected of the Coachella Valley is a significant investment for a local community. The City of Palm Desert plans to partner with state and federal agencies as well as other local agencies and private-sector partners to share the cost of station development, operations, and maintenance so local taxpayers aren’t bearing the full burden of this important part of the regional transportation infrastructure. Section 7 describes some of the funding opportunities that the City is exploring to share station costs. Palm Desert Rail Feasibility Study  45 The cost estimates presented here are Rough Order of Magnitude (ROM) or planning level costs with an accuracy range of -25% to +80%. This estimate uses ballpark costing based on professional opinion using limited available conceptual information and the costs to construct similar stations elsewhere in California. Actual construction costs may vary significantly from this estimate depending upon the timing of construction, volatility of material costs, design elements that are chosen as part of the architectural process, etc. The ultimate station concept can be built in phases which will allow the cost to be spread over a longer period of time with some station elements being needed as soon as train service starts, while others will be needed later as station ridership and multimodal connections increase. For example, the parking structure is one of the most expensive parts of the station construction and likely won’t be needed until rail ridership reaches a certain threshold or other shared uses create enough demand that a surface lot can no longer provide the needed capacity. The new Multimodal Transit HUB on a 10-acre site include: ◢Site access and circulation, utilities, and station buildings ◢Two train platforms including a pedestrian overcrossing spanning UPRR ROW with stairs and elevators ◢Sitework including passenger plazas, dedicated bus loop, lighting, and landscape ◢Project also includes TOD site opportunities Total construction costs for the ultimate station design are expected to be around $190 million in 2023 dollars. This includes $13.5 million to build the internal roads and landscaping, $63 million for the ultimate parking structure (assumed 3-levels), $32 million for the platform, access bridge, and passenger plaza, and $13 million for station buildings and signage. An additional $40 million will be needed for design, engineering, and contracting services, and $30 million for contingency costs to account for unexpected challenges or delays. The cost estimate uses the following assumptions: 1. Cost estimate based on year of construction of 2026 2. Construction management and construction administration costs are not included 3. Agency review fees and permit fees are not included. 4. Railroad and track work costs by others 5. Phased construction, multiple contractor, or mobilization costs are not included. In addition to station development, Gerald Ford Drive is currently incomplete and will need to be widened to accommodate 2 lanes in each direction with appropriate turning and intersection control. Similarly, the City will seek partnerships with public and private entities to assist with construction costs. The roadway improvements are expected to cost approximately $41M, including a roundabout at the station entrance. Palm Desert Rail Feasibility Study  46 7. POTENTIAL FUNDING SOURCES This section identifies funding programs available for agencies in California from Federal, State, and regional sources and how they can be implemented for transportation infrastructure. Competitive funding resources are available to assist in the development and implementation of rail infrastructure in the City of Palm Desert. The following is a high-level introduction into some of the main funding programs and grants the City of Palm Desert can apply. 7.1. GRANT FUNDING SOURCES Infrastructure and Jobs Act The Infrastructure and Jobs Act is a federal investment for transportation and infrastructure. The investment allocates funds for intermodal transportation system to enhance the nation’s rail network. This investment is to rebuild the nation’s water, road, transit, and broadband systems, grow our economy, and create good-paying jobs. Funding opportunities for infrastructure include: ◢Roads, bridges, and major projects ◢Passenger and freight rail ◢Highway and pedestrian safety ◢Public transit ◢Broadband ◢Ports and waterways ◢Airports ◢Water infrastructure ◢Power and grid reliability and resiliency ◢Resiliency, including funding for coastal resiliency, ecosystem restoration, and weatherization ◢Clean school buses and ferries ◢Electric vehicle charging ◢Addressing legacy pollution by cleaning up Brownfield and Superfund sites and reclaiming abandoned mines ◢Western water infrastructure The Infrastructure and Jobs Act offers opportunities for local governments and communities to secure competitive federal grants and improve infrastructure. Additional information regarding this program at the federal level can be found online at: https://www.phmsa.dot. gov/legislative-mandates/bipartisan-infrastructure-law-bil- infrastructure-investment-and-jobs-act-iija California’s Transit and Intercity Rail Capital Program (TIRCP) Grants from the Greenhouse Gas Reduction Fund to fund transformative capital improvements that will modernize California’s intercity, commuter, and urban rail; bus; and ferry transit systems to significantly reduce emissions of greenhouse gases, vehicle miles traveled, and congestion. Federal Railroad Administration’s Corridor Identification and Development Program A comprehensive intercity passenger rail planning and development program that will help guide intercity passenger rail development throughout the country and create a pipeline of intercity passenger rail projects ready for implementation. Palm Desert Rail Feasibility Study  47 Consolidated Rail Infrastructure and Safety Improvements This program funds a wide range of projects that improve the safety, efficiency, and reliability of intercity passenger and freight rail to enhance multimodal connections. This program invests in railroad infrastructure projects that improve safety, support economic growth, develop jobs, increase capacity and supply chain resilience, apply innovative technology, climate change, and equity. Mega Grant for Grade Separations This program supports large, complex projects that are difficult to fund by other means and likely to generate national or regional economic, mobility, or safety benefits. 7.2. VALUE CAPTURE AND OTHER FINANCING MECHANISMS Transportation infrastructure has historically proven to be a catalyst for economic development in the immediate environs of station areas, as well as further throughout the local communities. This circumstance presents the City with an opportunity to utilize available “value capture” funding and financing tools to capture the value of that future economic development and create funding for those infrastructure costs, including initial capital expenditures and maintenance costs, as well as potential funding for related community benefits and amenities. A funding and financing strategy that includes financing districts, monetization of public agency owned assets (e.g., new parking facilities in the station area), grants, and other complementary sources may be well-suited to capture value from new development to fund the targeted infrastructure, as well as related transit-oriented first-/last- mile infrastructure improvements, and even affordable housing in the station area. Consulting team member Kosmont Companies has prepared a Value Capture Feasibility Analysis that estimates approximately $22 million to $94 million in present-value funding capacity from a financing district such as an Enhanced Infrastructure Financing District (EIFD), not including potential complementary funding available from monetization of public assets and grants. The financing district would represent the sustainable, ongoing revenue stream that could directly support initial infrastructure capital expenditures, as well as maintenance of the infrastructure. Part of the overall financing strategy would then be to leverage the capacity of financing districts to increase scoring and priority for other complementary funding, such as state transportation, transit- oriented development, housing, climate resilience grants, and federal transportation and economic development grants, on an opportunistic basis. While the financing district would make the City more competitive for such grants, the grants would also in turn improve the financial viability of the financing district, solving initial cash flow needs while the funding capacity of the financing district builds up. Analysis considered a range of financing district boundary scenarios (i.e., smaller boundaries focused on the immediate environs of the station area versus larger boundaries encapsulating opportunity sites farther from the station), district durations (i.e., 30 years, 45 years), and very importantly, taxing entity partnership scenarios. While a City-only Palm Desert Rail Feasibility Study  48 financing district strategy can achieve favorable “return on investment” for the City (e.g., evaluated to be $0.5 to $3.1 million in annual net fiscal revenues), a broader partnership including the County of Riverside, for example, would further improve financial feasibility and funding capacity. Subject to confirmation of other components of rail station feasibility and eventual station site selection, implementation of such a financing strategy would require a series of public meetings and hearings for approval, pursuant to state law. 7.3. FUNDING PARTNERS Due to the significant local and regional benefits of transportation infrastructure, as well as the significant cost associated with such improvements, the funding plan for these projects typically involves myriad partners from the public, private, and non-profit sectors. Based on the consulting team’s similar experience in other communities across the state, county, and internationally, the coalition of funding partners could include, but not be limited to, the following types of organizations: Local Public Agencies ◢Local city (City of Palm Desert) ◢Local county (County of Riverside) ◢Local transportation authority(ies) (e.g., Riverside County Transportation Commission, SunLine Transit Agency) ◢Local association of governments (e.g., Coachella Valley Association of Governments) Local Private Sector and Non-Profit Partners ◢Local landowners and real estate developers ◢Local businesses and visitor destinations (e.g., Acrisure Arena, local hotels, etc.) ◢Affordable housing developers and related partners (e.g., Lift to Rise) ◢Potential private sector infrastructure developers ◢Local educational institutions (e.g., California State University San Bernardino, University of California Riverside, College of the Desert, California Indian Nations College) ◢Local medical institutions (e.g., Kaiser Permanente) ◢Philanthropic individuals and organizations Potential State Grant / Loan Sources ◢State of California Department of Housing and Community Development (HCD) ◢California Department of Transportation (CalTrans) ◢Governor’s Office of Planning and Research (OPR) ◢Strategic Growth Council (SGC) ◢California Infrastructure and Economic Development Bank (IBank) Potential Federal Grant Sources ◢U.S. Department of Transportation (USDOT) ◢U.S. Economic Development Administration (EDA) ◢U.S Environmental Protection Agency (EPA) Palm Desert Rail Feasibility Study  49 The form of funding partnership typically varies highly by partner and circumstance, but could include frameworks such as participation in local financing districts (EIFDs, Community Facilities Districts, Tourism Business Improvement Districts), one-time monetary contributions, ongoing allocations of recurring revenues (e.g., sales taxes, transient occupancy taxes, fees), contributions of land, low- cost and/or conduit financing, loan guarantees, support in applications and related pursuit of third-party funding (e.g., grant writing, letters of support), and other means. Palm Desert Rail Feasibility Study  50 Palm Desert Rail Feasibility Study 8. CONCLUSION AND NEXT STEPS The existing conditions and public opinion support the addition of a rail station in Palm Desert. As this study progresses into future planning, design, and implementation phases, stakeholder engagement will remain a critical component of the process. Key stakeholders include the City of Palm Desert, CSU San Bernardino, Acrisure Arena, Local Homeowners Associations, SunLine Transit, Greyhound, Amtrak, Metrolink, Union Pacific, and residents of Palm Desert. Additional key stakeholders may be consulted as this project progresses. Further feasibility analysis will be conducted to finalize a location and layout of the station. This may be supported through accompanying projects to improve roads, transit service, and parking at or near the station. In addition, incentives to attract transit-oriented development should be considered to create a greater number of destinations in proximity to the rail station. All funding avenues for the station, and by extension for transit operators, should be considered and scrutinized. This includes, but is not limited to, the local and regional tax base, grants, and value capture. Preliminary engineering and final design plans will also need to be prepared and obtain environmental clearance. Negotiations will also need to be conducted with Union Pacific for construction within the right-of-way, and an operating agreement will need to be developed with rail service providers such as Metrolink and Amtrak. A rail station in Palm Desert will create significant benefits to the City and Coachella Valley region by reducing overall VMT and air pollution, providing an alternative long-distance travel option for non-drivers, and creating opportunities for transit-oriented development and walkable communities. The station will also benefit visitors to Palm Desert and the region through a potential direct connection to the Acrisure Arena, and by providing better access to Palm Desert’s universities, local events, and festivals. While this study represents the collective vision for rail service in the City of Palm Desert, further study and design will refine the proposed improvements in this document. Subsequent phases will ensure the successful implementation of a rail station with regular passenger service to Palm Desert. APPENDIX A: STATION RIDERSHIP DENSITY METHODOLOGY AND RESULTS Palm Desert Rail Station Feasibility Study – Final Report | Appendix A  Page A‐1    Appendix A: Station Ridership Density Methodology and Results    Introduction:  An analysis was conducted to determine the ridership potential along the existing Union Pacific Railroad  (UPRR) corridor in the central Coachella Valley. This analysis determined which sections of the rail  corridor could potentially serve the most residents, workers and visitors based on nearby land uses.   Methodology:  The methodology evaluated the number of residents, jobs, and special uses or activities with a half‐mile  and three‐mile radius of proposed station locations along the corridor. Data was sourced from the US  Census, Longitudinal Employer‐Household Dynamics data, and existing land uses and was examined at  the census block level. In order to determine the service potential of each of these census blocks, the  following data were obtained for inclusion in the analysis.   Population of Census Blocks (from 2020 US Decennial Census)   Location of Employment and Number Employed (from 2021 Longitudinal Employer‐Household  Dynamics (LEHD) data)   Additional “Special Activities” such as Large Gathering Sites (includes Casinos, Theatres/Concert  Venues, and Universities/Trade Schools)  The information regarding any “special activities” that occur in each block was added based on capacity  information obtained from local universities, casinos, and concert venues. A heatmap of the total  residents, jobs, and special activities was then generated using the Inverse Distance Weighting (IDW)  method in GIS (See Figure 1).  The analysis was conducted at half mile intervals along the rail line resulting in 15 total sites. The GIS  system counted the number of residents, jobs, and special activity seats that were within 3 miles of each  site. It then counted the same information within a half mile of each site. Residents, jobs, and special  uses within ½ a mile of the site were weighted at double those that are further out to reflect the  increase in potential attraction to the station site.   The points representing the station locations were then ranked from 1‐15, with 1 being the segment  with the highest number of weighted residents, jobs, and visitors, and 15 being the one with the least,  with color coding assigned to each (see Figure 1).  Results:   The potential station sites ranged from 38,222 weighted residents, jobs, and visitors up to 77,086  weighted residents, jobs, and visitors. The locally preferred site location selected as part of the Palm  Desert Rail Station Feasibility Study is located at the number 1‐ranked site.   Palm Desert Rail Station Feasibility Study – Final Report | Appendix A  Page A‐2      Figure 1: Ridership Potential from Pedestrians and Transit Users Along Rail Corridor in Palm Desert, California  APPENDIX B: VALUE CAPTURE FINANCING ANALYSIS SUMMARY Prepared by: Kosmont Companies Preliminary Rail Station Value Capture Financing Analysis Summary December 2023 Introduction and Background 2 •As part of its evaluation of the feasibility of a rail station within the City of Palm Desert, the City should consider the applicability of various “value capture” funding and financing tools to facilitate the relevant infrastructure installation and operations and maintenance costs •A financing strategy that includes Tax Increment Financing (“TIF”) financing, new potential parking assets, and other complementary sources may be well-suited to capture value from new development to fund the targeted infrastructure •This analysis estimates ~$22M to $94M in TIF funding capacity alone, while still generating a positive General Fund fiscal impact of ~$528K to $3.1M annually •While a City-only financing district strategy can achieve favorable “return on investment” for the City, a broader partnership including the County of Riverside would further improve financial feasibility •Subject to confirmation of other components of rail station feasibility and eventual station site selection, implementation of such a financing strategy would require a series of public meetings and hearings for approval Presentation Outline Communicating in a Digital World 3 1.Overview of Funding and Financing Tools 2.Funding and Financing Analysis for Palm Desert 3.Potential Next Steps and Timing 4 Overview of Primary Development Finance Tools Infrastructure Funding & Financing Tools Tax Increment Financing (TIF) Community Facilities Districts (CFD) General Fund Financings (I- Bank, GO Bonds, Lease Revenue Bonds) Grants Impact Fees, State Budget Surplus, Other 5 $0M $100M $200M $300M $400M $500M $600M 0 5 10 15 20 25 30 35 40 45 50 55 Baseline Property Value Property taxes continue to flow to City / County / Schools / Other Taxing Entities as normal New Property Value from New Development / Rehabilitation Available to TIF District Years from District Formation Assessed Property Value (A/V) within TIF District Boundaries New Total Value After TIF District Benefits all Taxing Entities Period of New Development Note: Illustrative. Conservative 2% growth of existing assessed value (A/V) shown; does not include mark-to-market increases associated with property sales. What is Tax Increment Financing (TIF) – Not a New Tax TIF Alternatives in California Today Communicating in a Digital World 6 Affordable Housing Authorities (AHA) Community Revitalization & Inv. Authority (CRIA) Enhanced Infrastructure Financing District (EIFD) Neighborhood Infill Finance & Transit Improvements Act (NIFTI) NIFTI-2 Coterminous requirement and other requirements have made NIFTI & NIFTI-2 infeasible in other communities Restriction to fund ONLY affordable housing (and not infrastructure) has been deemed to restrictive to be feasible in other communities Infrastructure & Revitalization Financing District (IRFD) Most flexible, most widely used More emphasis on affordable housing (25% set-aside) Climate Resilience District (CRD) NEW, limited focus on certain infrastructure Flexible, voter-approval still required EIFD Fundamentals Communicating in a Digital World 7 45 years from first bond issuanceLong Term Districts Public Financing Authority (PFA) implements Infrastructure Financing Plan (IFP)Governance Mandatory public hearings for formation with protest opportunity; no public voteApprovals Any property with useful life of 15+ years & of communitywide significance; purchase, construction, expansion, improvement, seismic retrofit, rehabilitation, and maintenance Eligible Projects Eligible Projects Partial List 8 Roadway / Parking / Transit Brownfield Remediation Storm / Flood / Public Facilities Parks / Open Space / Recreation Libraries & Childcare Facilities Affordable Housing Broadband Small Business / Wildfire Prevention / Other Value Capture TIF Districts in Progress Statewide (Partial List) Relevant Examples: •County of Riverside Unincorporated EIFDs (Highway 74, Temecula Valley Wine County, East Coachella Valley) •City of La Verne + County of Los Angles TOD EIFD •City of Placentia + County of Orange TOD EIFD Why are Public Agencies Authorizing Value Capture Districts? Communicating in a Digital World 10 1.Return on Investment: Private sector investment induced by district commitment accelerates growth of net fiscal revenues, job creation, housing production, essential infrastructure improvements 2.Ability to attract additional funds / other public money (“OPM”) – tax increment from other entities (county, special districts), federal / state grants / loans (e.g., for transit oriented development, water, housing, parks, remediation) Other Value Capture Tools Communicating in a Digital World 11 1.Monetization of public agency owned land, such as new parking created 2.Parking revenue financing 3.Community Facilities District (CFD) financing 4.General Fund public financings (e.g., lease revenue financing) Comparison of Various Public Financing Tools Communicating in a Digital World 12 District Type Description Revenue Source Approval Structure Use of Funds TIF (e.g., EIFD, CRIA, IFD, IRFD) Incremental property tax revenues from new development used to fund local infrastructure. Max term is 45 years from approval to issue debt. Incremental (new development) property tax revenues (incl. VLF) –does not increase taxes District formation –No vote, but majority protest opportunity by landowners and registered voters Bond issuance –None •Infrastructure of regional or communitywide significance •Maintenance •Affordable housing Mello-Roos Community Facilities District (CFD) and/or Assessment District Additional assessment or “special tax” used to fund infrastructure / services that benefit property. Max term is 40 years from date of debt issuance. New property assessment or tax –appears as separate line item on tax bill District formation –2/3 vote of landowners or registered voters in district* Bond issuance –vote of elected body (City) •Infrastructure capital expenditures of benefit to landowners •Maintenance •Public services (e.g., safety, programs) General Obligation Voter-approved debt that is repaid with “override” to 1% tax levy; City-wide Direct property tax levied on all properties at same millage rate 2/3 vote of registered voters in entire City •In accordance with bond plebiscite Lease Revenue / COPs General Fund-supported borrowing, generally utilizing City-owned assets to be leased and leased back General Fund (or other legally available revenues as determined by City) Vote of elected body (City)•In accordance with bond authorization Potential funding strategy can utilize MULTIPLE mechanisms * For CFD formation, a vote of registered voters within the district boundary is required if 12 or more registered voters live therein (otherwise a vote of landowners prorated by acreage). 13Note: Does not include projects completed or already under construction. Source: City of Palm Desert Current Economic Development Projects, Updated Sept 2023 Potential Station Area TOD Only 100 units residential 100-room hotel 14,000 SF commercial Value Capture Boundary Scenario #1 Value Capture Boundary Scenario #1 Station Area TOD Only 14Note: Does not include projects completed or already under construction. Source: City of Palm Desert Current Economic Development Projects, Updated Sept 2023 #Potential Development Projects Approved or Under Review 3 Staybridge Hotel –96 rooms 6 Spanish Walk Apartments –150 units, affordable apartments 8 Palm Villas Apartments -241 units,affordable apartments 18 University Village Pad 3 -Restaurant 21 Millenium Specific Plan –166 single-family lots, commercial, business park + 29 University Neighborhood Specific Plan -remaining components 30 University Park –1100 housing units, public parks, private open space 31 University Park Townhomes –110 Townhomes 32 University Park Multifamily –336 apartment units Value Capture Boundary Scenario #2 + CSUSB Palm Desert Campus Master Plan Value Capture Boundary Scenario #2 Immediately Adjacent Opportunity Sites •Availability of new parking may additionally support new development in adjacent properties 15 Value Capture Boundary Scenario #3 Broader Value Capture Area Note: Does not include projects completed or already under construction. Source: City of Palm Desert Current Economic Development Projects, Updated Sept 2023 #Potential Development Projects Approved or Under Review 1 DSRT Surf –Lagoon and surf center, 92 hotel rooms, 83 villas + 3 Staybridge Hotel –96 rooms 4 CarMax Auto Superstore Expansion–Carwash tunnel 6 Spanish Walk Apartments –150 units, affordable apartments 7 The Crossings at Palm Desert –176 units,affordable apartments 8 Palm Villas Apartments -241 units,affordable apartments 10 Frank Sinatra Drive/ Portola Ave. Apartments -394 multi-family units 11 West Coast Self-Storage –self-storage facility 15 Santa Barbara Condominiums –32 units, pool, recreation 18 University Village Pad 3 -Restaurant 20 MCP Specific Plan –384 multi-family units, planned commercial 21 Millenium Specific Plan –166 single-family lots, commercial, business park + 25 Alpha Holdings Building –multi-tenant, light industrial 26 Landmark Specific Plan –1500 residential, commercial retail, storage facility 27 Refuge Specific Plan –969 mixed residential units 29 University Neighborhood Specific Plan -remaining components 30 University Park –1100 housing units, public parks, private open space 31 University Park Townhomes –110 Townhomes 32 University Park Multifamily –336 apartment units Value Capture Boundary Scenario #3 + CSUSB Palm Desert Campus Master Plan 16 Future Development Assumptions – Scenario #1 Absorption Assumed over 5-20 Years Note: AV at buildout values in current 2023 dollars. Affordable housing excluded from calculations (typically property tax-exempt) Sources: City of Palm Desert Current Economic Development Projects, updated Sept 2023, CoStar (Accessed January 2023) Area # SF or Units Estimated AV Factor Estimated Total AV at Buildout Residential –For-sale 0 units $500K per unit $0 Residential –Rental 100 units $250K per unit $25 million Hotel 100 rooms $250K per room $25 million Commercial / Retail / Office 14,000 SF $300 per SF $4 million Industrial / Flex 0 SF $195 per SF $0 Total New Development Assumed within Value Capture Study Area $54 million 17 Future Development Assumptions – Scenario #2 Absorption Assumed over 5-20 Years Note: AV at buildout values in current 2023 dollars. Affordable housing excluded from calculations (typically property tax-exempt) Sources: City of Palm Desert Current Economic Development Projects, updated Sept 2023, CoStar (Accessed January 2023) Area # SF or Units Estimated AV Factor Estimated Total AV at Buildout Residential –For-sale 1,497 units $500K per unit $748 million Residential –Rental 934 units $250K per unit $233 million Hotel 196 rooms $250K per room $49 million Commercial / Retail / Office 23,000 SF $300 per SF $7 million Industrial / Flex 0 SF $195 per SF $0 Total New Development Assumed within Value Capture Study Area $1.04 billion 18 Future Development Assumptions – Scenario #3 Absorption Assumed over 5-20 Years Note: AV at buildout values in current 2023 dollars. Affordable housing excluded from calculations (typically property tax-exempt) Sources: City of Palm Desert Current Economic Development Projects, updated Sept 2023, CoStar (Accessed January 2023) Area # SF or Units Estimated AV Factor Estimated Total AV at Buildout Residential –For-sale 2,362 units $500K per unit $1.18 billion Residential –Rental 3,431 units $250K per unit $858 million Hotel 288 rooms $250K per room $72 million Commercial / Retail / Office 220,900 SF $300 per SF $66 million Industrial / Flex 312,410 SF $195 per SF $61 million Total New Development Assumed within Value Capture Study Area $2.24 billion 19 Summary of Potential City General Fund Fiscal Revenue Impacts Note: Assumes installation of necessary public infrastructure. $2023 •Additional benefits related to housing production, jobs, wages Value Capture Boundary Scenario #1 (TOD Site) Value Capture Boundary Scenario #2 (Immediately Adjacent Opportunity Sites) Value Capture Boundary Scenario #3 (Broader Value Capture Area) Property Tax $38,000 $694,200 $1,502,100 Property Tax In-Lieu of MVLF $15,200 $291,000 $627,500 Sales and Use Tax -Direct / On-Site $28,200 $46,400 $445,300 Sales and Use Tax -Indirect / Off-Site $9,100 $122,800 $236,000 Transient Occupancy Tax $463,700 $908,900 $1,335,500 Estimated Total ANNUAL Revenues $554,200 $2,063,300 $4,146,400 20 a)First-mile / last-mile connectivity improvements (bike, pedestrian, bus connectivity) b)Parking, circulation improvements c)Water, sewer, and other utility capacity enhancements d)Affordable housing e)Parks & open space Potential Projects for Special District Funding in Palm Desert 21 •Primary potential contributors of property tax increment are the City of Palm Desert and County of Riverside •City is a no/low property tax city and averages ~7% of every $1 collected in property taxes within the Value Capture Study Area City additionally receives equivalent of ~3% of property tax in lieu of Motor Vehicle License Fees (MVLF), also available to TIF districts •County share varies by area and averages ~13% County additionally receives equivalent of ~9% of property tax in lieu of MVLF, also available to TIF, but not incorporated into this analysis to be conservative •Other entities (e.g., County Fire, CV Water, Desert Hospital, County Library) receive small shares, carry restrictions on available revenues •School-related entities cannot participate As counties tend to rely more heavily on property tax revenue sources generated by new development within incorporated jurisdictions, it is Kosmont’s experience that it is not reasonable to assume allocation of property tax in lieu of MVLF by the County. As cities benefit from additional non-property tax revenue sources (e.g., sales tax, transient occupancy tax) from new development, it is Kosmont’s experience that it is reasonable for cities to consider contributing property tax in lieu of MVLF. Sample Property Tax Distributions within Value Capture Study Area Property Tax Revenues Available to TIF Districts Tax Rate Area (TRA) >>>18-165 18-227 18-082*61-165 Sample Projects >>>Spanish Walk Crossings Desert Surf Arena PALM SPRINGS UNIFIED SCHOOL 30.63%30.63%30.18% DESERT SANDS UNIFIED SCHOOL 36.88% EDUCATIONAL REVENUE AUG FUND (ERAF)16.94%16.59%15.81%18.39% COUNTY GENERAL FUND 12.92%12.26%11.32%16.11% DESERT COMMUNITY COLLEGE 8.74%8.74%7.66%8.61% COUNTY STRUCTURE FIRE PROTECTION 6.82%6.82%5.98%6.72% CITY OF PALM DESERT 6.40%7.33%5.61%0.00% RIVCO OFFICE OF EDUCATION 4.76%4.76%4.17%4.69% CVWD STORM WATER UNIT 4.02%4.02%3.53%3.96% CV WATER DISTRICT STATE WTR PROJ 3.18%3.18%2.79%3.13% DESERT HOSPITAL 2.32%2.32%2.03%2.29% COUNTY FREE LIBRARY 1.67%1.67%1.46%1.64% CV MOSQUITO & VECTOR CONTROL 1.14%1.14%1.00%1.12% COACHELLA VALLEY REC AND PARK 1.21% RIVCO REGIONAL PARK & OPEN SP 0.32%0.40%0.28%0.40% COACHELLA VALLEY PUBLIC CEMETARY 0.23% COACHELLA VALLEY RESOURCE CONSER 0.04%0.04%0.04%0.04% PALM SPRINGS PUBLIC CEMETERY 0.11%0.11%0.11% SUPERVISORIAL ROAD DISTRICT 4 1.15% CVWD IMP DIST 1 DS 1.46% TOTAL 1% PROPERTY TAX GEN LEVY 100.00%100.00%100.00%100.00% 22 EIFD Revenue Allocation Scenario Year 5 Accumulated Revenue + Bonding Capacity* Year 10 Accumulated Revenue + Bonding Capacity* 50-Year Present-Value @ 3% Discount Rate 50-Year Nominal Total A) City 50%N/A $136,000 $1,161,000 $2,891,000 B) City 50% + County Dollar Match (~37% of County share)N/A $272,000 $2,323,000 $5,782,000 City allocation includes allocation from both AB8 + MVLF in-lieu. County allocation does not include MVLF in-lieu. * Bonding capacity assumes Year 5 is first bond issuance for EIFD. “Year 5 means fifth year of revenue following district formation. Net proceeds shown. Bondable revenue assumes $25,000 admin charge, 150% debt service coverage. 6.5% interest rate; 30-year term. Proceeds net of 2% underwriter's discount, estimated reserve fund (maximum annual debt service), costs of issuance estimated at $350,000.Source: Kosmont Financial Services (KFS), registered municipal advisor. Revenue and Bonding Capacity Scenarios Scenario #1 23 EIFD Revenue Allocation Scenario Year 5 Accumulated Revenue + Bonding Capacity* Year 10 Accumulated Revenue + Bonding Capacity* 50-Year Present-Value @ 3% Discount Rate 50-Year Nominal Total A) City 50%$1,155,000 $4,344,000 $22,603,000 $58,380,000 B) City 50% + County Dollar Match (~37% of County share)$2,955,000 $9,333,000 $45,207,000 $116,760,000 City allocation includes allocation from both AB8 + MVLF in-lieu. County allocation does not include MVLF in-lieu. * Bonding capacity assumes Year 5 is first bond issuance for EIFD. “Year 5 means fifth year of revenue following district formation. Net proceeds shown. Bondable revenue assumes $25,000 admin charge, 150% debt service coverage. 6.5% interest rate; 30-year term. Proceeds net of 2% underwriter's discount, estimated reserve fund (maximum annual debt service), costs of issuance estimated at $350,000.Source: Kosmont Financial Services (KFS), registered municipal advisor. Revenue and Bonding Capacity Scenarios Scenario #2 24 EIFD Revenue Allocation Scenario Year 5 Accumulated Revenue + Bonding Capacity* Year 10 Accumulated Revenue + Bonding Capacity* 50-Year Present-Value @ 3% Discount Rate 50-Year Nominal Total A) City 50%$3,134,000 $9,645,000 $46,791,000 $120,643,000 B) City 50% + County Dollar Match (~37% of County share)$6,913,000 $19,934,000 $93,583,000 $241,285,000 City allocation includes allocation from both AB8 + MVLF in-lieu. County allocation does not include MVLF in-lieu. * Bonding capacity assumes Year 5 is first bond issuance for EIFD. “Year 5 means fifth year of revenue following district formation. Net proceeds shown. Bondable revenue assumes $25,000 admin charge, 150% debt service coverage. 6.5% interest rate; 30-year term. Proceeds net of 2% underwriter's discount, estimated reserve fund (maximum annual debt service), costs of issuance estimated at $350,000.Source: Kosmont Financial Services (KFS), registered municipal advisor. Revenue and Bonding Capacity Scenarios Scenario #3 25 Potential Cash Flow / Debt Issuance Approaches •Kosmont Financial Services is in active discussions with public finance underwriters regarding EIFD debt issuances in other jurisdictions •Underwriters have proposed several approaches for the leverage of EIFD tax increment for accelerated debt issuance (e.g., 2-3 years from EIFD formation), for example: a)EIFD increment only, based on completed (or nearly completed) improvements (no immediate capacity) b)EIFD increment only, based on completed improvements PLUS near-term growth c)Overlapping EIFD and CFD (CFD Backstop) – landowners / developers must be willing to pay CFD special taxes in the short term (e.g., 5-10 years) until EIFD increment reaches a level to cover debt service d)EIFD increment with City or County general fund backstop •There are advantages and disadvantages with each approach (e.g., upfront proceeds available, public agency risk, cost of capital) •Additional alternatives are available if private sector partners (e.g., landowners / developers are willing to advance infrastructure funding in exchange for reimbursement from EIFD proceeds) 26 EIFDs work better with a Multi-Agency Partnership & Attract Other Funding Other Public Sources Cap-and-Trade / HCD grant & loan programs (AHSC, IIG, TCC,CERF) Prop 68 parks & open space grants Prop 1 water/sewer funds Caltrans ATP / HSIP grants Federal EDA / DOT / EPA funding Federal ARPA, Invest Act, IIJ Act Other Private Sources Development Agreement / impact fees Benefit assessments (e.g., contribution from CFD) Statewide Community Infrastructure Program (SCIP) pooled financing Private investment •Ideal strategy includes City and County partnership •EIFDs which involve a City / County joint effort are more likely to win state grant funding sources •EIFDs explicitly increase scoring for CA state housing grants (e.g., IIG, AHSC, TCC) 27 Summary of Potential Fiscal Revenue Impacts Net of Potential 50% Increment Contribution to TIF District Note: Assumes installation of necessary public infrastructure. $2023 •Additional benefits related to housing production, jobs, wages Value Capture Boundary Scenario #1 Value Capture Boundary Scenario #2 Value Capture Boundary Scenario #3 City of Palm Desert General Fund Property Tax $38,000 $694,200 $1,502,100 Property Tax Allocation to TIF District ($19,000)($347,100)($751,000) Property Tax In-Lieu of MVLF $15,200 $291,000 $627,500 Property Tax In-Lieu of MVLF Allocation to TIF District ($7,600)($145,500)($313,750) Sales and Use Tax -Direct / On-Site $28,200 $46,400 $445,300 Sales and Use Tax -Indirect / Off-Site $9,100 $122,800 $236,000 Transient Occupancy Tax $463,700 $908,900 $1,335,500 Estimated Total Revenues $527,600 $1,570,700 $3,081,650 28 Illustrative Financing District Formation Schedule Tax increment allocation begins fiscal year following district formation Debt issuance, if desired, would occur after a stabilized level of tax increment has been established (may be 3-5 years) Target Date Task Q1 2024 a) Conduct outreach / discussion among City staff and Council, County staff and Board of Supervisors, other relevant stakeholders b)Final determination of TIF district boundaries, targeted projects, governing Public Financing Authority (PFA) Board composition Q1 2024 c)Participating taxing agencies adopt Resolution(s) of Intention (ROI) to form EIFD and formally establish PFA Board Q1 2024 d) PFA directs the drafting of the Infrastructure Financing Plan (IFP) Q2 2024 e)Distribute draft IFP to property owners, affected taxing entities, City Council, County Board of Supervisors, planning commission, with corresponding project-related CEQA documentation Q2 2024 f) PFA holds an initial public meeting to present the draft IFP to the public and property owners Q2/Q3 2024 g)PFA holds first “official” public hearing to hear written and oral comments but take no action (noticing must occur at least 30 days after “f”) Q3 2024 h)City Council / legislative bodies of other affected taxing entity contributing increment adopt resolution(s) approving IFP Q3 2024 i) PFA holds second public hearing to hear additional comments and take action to modify or reject IFP or CRIA Plan (at least 30 days after “g”) Q3/Q4 2024 j) PFA holds third public hearing to consider oral and written protests and take action to terminate proceedings or adopt IFP and form the EIFD by resolution (at least 30 days after “i”) 29 Next Steps •Address questions, receive and incorporate feedback from City •If there is City support for mechanisms such as TIF, approach County to discuss potential partnership •Subject to confirmation of other components of rail station feasibility and eventual station site selection, implementation of such a financing strategy would require a series of public meetings and hearings for approval 30 THANK YOU Questions? Kosmont Companies 1601 N. Sepulveda Blvd. #382 Manhattan Beach, CA 90266 Ph: (424) 297-1070 | Fax: (424) 286-4632 www.kosmont.com Disclaimer 31 The analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project pro forma and tax analyses are projections only. Actual results may differ from those expressed in this analysis. Discussions or descriptions of potential financial tools that may be available to the City are included for informational purposes only and are not intended to be to be “advice” within the context of this Analysis. Municipal Advisory activities are conducted through Kosmont Companies’ affiliate, Kosmont Financial Services, which is Registered as a Municipal Advisor with the SEC and MSRB. 32 TIF Today versus Former Redevelopment Agencies Sample of Differences Former RDAs TIF in 2023 (e.g., EIFD) Eligible Use of Funds •Infrastructure and affordable housing •Mixed-income housing •Land clearing and parcel assembly •Tax and other private business / developer subsidies •Public infrastructure (e.g., roads, flood control, open space, utilities) •Public facilities •Affordable housing Eminent Domain / Condemnation •Allowed •Not allowed Eligible Areas •Must qualify as “blighted”•No “blight” finding required Governance •City Council or County Board •School entity participation •Public Financing Authority including Public Members (no school entities) Formation •Vote of governing body •3 public hearings, majority protest opportunity from landowners and registered voters within EIFD TIF as a Component of the Economic Development and Public Financing Toolkit Communicating in a Digital World 33 •There are advantages / disadvantages to TIF Districts compared to other mechanisms, such as general obligation (GO) bonds, lease revenue bonds / COPs, Mello-Roos Community Facilities District (CFD) financing, assessment districts, and other tools •Advantages of TIF include no encumbrance of existing City/county resources, can attract tax increment contributions from other taxing entities, increased priority for grant funding, ability to demonstrate commitment to multiple infrastructure (and/or affordable housing) projects to catalyze private sector development, capacity to fund maintenance, no additional taxes to property owners / residents / businesses, and ease of voter approval •Disadvantages of TIF include lack of comparable financings thus far, statutory vs. constitutional authority to issue debt, and subordination to redevelopment successor agency obligations •Complementary Tool: TIF should not be considered a replacement for other useful financing mechanisms, but rather a complementary tool; other jurisdictions have been successful in utilizing TIF as well as other tools for different projects within the same community LETTERS OF SUPPORT