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Redevelopment Agency

The Redevelopment Process

Redevelopment is one of the most complex, difficult, misunderstood, yet rewarding programs a community can undertake. The Rancho Mirage Redevelopment Agency, governed by Community Redevelopment Law, has many tools at its disposal. Tax increments and bond financing allow the Agency to generate funding for off-site improvements such as street improvements, sewer and water. The Agency also facilitates development by acquiring and consolidating unrelated parcels into larger, usable sites, and assisting developers with the acquisition of land. Since the inception of the Economic Development Program in 1989, the Rancho Mirage Redevelopment Agency has committed significant funds toward the development of commercial office buildings and retail centers through reimbursement for off-site expenses, payment of development fees to the City, reimbursement to landowners for demolition of vacant/substandard buildings and payments to developers to offset the costs of making desired developments economically feasible.

The Rancho Mirage Redevelopment Agency actively encourages developers to invest in the City.

The Redevelopment Agency's major objectives are:

• To seek out desirable new developments
• The rejuvenation of existing public infrastructure
• To construct new public facilities

The City of Rancho Mirage has two Redevelopment Project Areas - Whitewater and Northside.

• View the Redevelopment Project map

The Redevelopment Agency aggressively works with developers, land owners and the community on a project by project basis. Each development proposal is evaluated on its own individual merits; each prospective project receives the attention it requires to be successful.

Redevelopment Activities

The Redevelopment Agency has the authority, scope and policy direction to provide the needed stimulus to reverse deteriorating trends, remedy blight, create new images for the community and stimulate/encourage private economic development investment. The Redevelopment Agency is also empowered to provide affordable housing opportunities for low- and moderate-income families, and expand employment opportunities. The Agency may consider paying for, installing or constructing the following facilities including, but not limited to:

• Streets, Gutters, Sidewalks
• Storm Drains and Flood Control Channels
• Water and Sewer Extensions
• Landscaping
• Utilities
• Median Islands
• Open Space
• Street Lighting
• Underground utilities
• Community Facilities
• Public Buildings
• Highway widening
• Street Furniture
• Public Parking Facilities

The Rancho Mirage Redevelopment Agency is experienced and has a demonstrated track record in negotiating and effectively utilizing Disposition and Development Agreements (DDA), Owner Participation Agreements (OPA), Ground Leases, and Commercial Rehabilitation Loans. Before contemplating ways to assist the private sector with Redevelopment and/or financial assistance, the City of Rancho Mirage requests that a developer or business undertake three important steps.

1. The first, and a very important, step is to create a site plan to ensure that your development needs can be attained with the site that you are considering. The City suggests retaining an architect or planning professional to assist you with ascertaining your building size needs, parking requirements, City development standards, etc. It's important to consult with the City's Planning Division during this step.
2. The second step is to prepare a development proforma for your proposed project. It is critical to properly formulate your hard and soft costs for your desired development opportunity. Preparation of a proforma is vital for the City to evaluate your project for possible financial assistance, but also something that will help you identify any development challenges for your proposed project.
3. The third step is to provide the City with a narrative background on your business and/or development experience. A brief company history, number of employees and financial statement are necessary before considering assisting a proposed project.

Assembly Bill 975 requires developers and/or contractors that obtain financial assistance from a Redevelopment Agency to adhere to State prevailing wage requirements. More information regarding prevailing wages can be sought from the California Department of Industrial Relations website at www.dir.ca.gov.  The City is willing to explore cost-effective ways to help proven businesses and quality projects move forward. Please feel free to call Economic Development Director, Curt Watts at (760) 324-4511 with any questions regarding this process. 

Assembly Bill 987 requires the recordation of a separate document, called "Notice of Affordability Restrictions on Transfer of Property," for all new or substantially rehabilitated units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund on or after January 1, 2008.  AB 987 establishes specific procedures for the recordation of the covenants and restrictions and the notice of affordability restrictions document.  AB 987 also requires a Redevelopment Agency to compile and maintain a database on an annual basis of existing, new and substantially rehabilitated, housing units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund which is available to the public on the Internet via the City's Affordable Housing Page.

Highway 111-Redevelopment

Rancho Mirage prides itself in being a prestigious community. Addressing conditions of blight within the City is a major objective of the Redevelopment Agency. A 1996 survey of Highway 111 properties revealed that 50% were underdeveloped and approximately 50% of what was developed was constructed prior to the time Rancho Mirage was incorporated, thereby not meeting current design standards. When contrasted against new development, old buildings do not match the desired community image. Interested developers can quickly observe the quality of construction the City requires with new development proposals.

Since the 1996 survey, the City has taken part in a variety of activities to attract new businesses to the community and meet the needs of those currently here. This proactive approach to development has resulted in the revitalization of the Highway 111 corridor and surrounding areas. Understanding the need for proper infrastructure, the Redevelopment Agency has invested $70 million in storm water management projects. The Agency has also funded $25 million in roadway widening, traffic light synchronization, landscape beautification along Highway 111. The "stage" has been set for commercial development to flourish along the Highway 111 corridor.

There are a number of developments that helped "jump-start" and sustain this revitalization effort. The most prominent being the 30-acres of waterfront shopping, dining and entertainment known as The River. A Country Inn & Suites and Hilton Garden Inn & Suites, located just west of The River, opened in recent years. A number of mixed use and office developments, such as the Plaza Agua Blanca, Patio's Plus and the White Brothers center (resulting in Lamps Plus and Opus - Collection -Scottsdale Art Factory) were completed and/or expanded. The "Restaurant Row" has been a huge success with the opening of such restaurants as Mimi's Cafe, Ruby's Diner, Roy's of Hawaii, Amici's, Hibachi's Japanese Steakhouse, Grand China Wok and the many great establishments located at The River. The demand for quality office space is also being addressed by a number of mixed-use developments currently in the works aimed at providing additional office space.

It's not only new development that has spawned the revitalization of commercial activity in Rancho Mirage. Redevelopment of existing businesses has also played a key role. Desert European Motorcars, Rancho Mirage's only automobile dealership, completed a $15 million redevelopment/expansion in 2003. The $3 million renovation of what is now the Northern Trust Bank and $1 million upgrade of the accompanying mixed-use plaza has increased activity in the Northern Trust Plaza located at Highway 111 and Frank Sinatra Drive. Rancho Mirage Plaza (NE corner of Highway 111 and Indian Trail) also completed façade, signage, hardscape/landscape improvements to keep up with newer surrounding development.

This summary of development activity in the City of Rancho Mirage is not all-inclusive. Many other activities have taken place or are currently being planned. Yet, opportunities still abound for the redevelopment of commercial properties in prime locations. To promote the development of encouraged land uses and selected business activities consistent with the Economic Development Plan, the Redevelopment Agency will consider paying developers the cost of installing public improvements for the following developments:

• Hotels
• Restaurants
• Furniture Stores and Design Centers
• Neighborhood Commercial
• Specialty Retail
• High-End Auto Dealerships

Possible additional incentives the Agency will consider include land assemblage/lot consolidation; land write down; City-assisted or expedited Environmental Impact Reports; fast-track approval processes; Redevelopment Agency paid fees for development tax, school, parkland, lizard transportation mitigation, water/sewer standby and utility undergrounding. Note: Agency financial assistance would trigger adherence to State of California prevailing wage requirements.

Assessment District Bonds

The City will work with developers to form assessment districts where property is assessed in accordance with the proportionate benefit derived from the improvements being financed. Public improvements benefiting private projects such as streets, utilities, sewer and water lines may be financed by low interest, tax-exempt assessment district bonds.

Community Facilities District (MELLO-ROOS DISTRICT)

Districts can be formed under the Mello-Roos Community Facilities Act of 1982 for the purpose of financing off-site capital construction projects. The program is very effective in areas needing facilities too large for one developer to undertake. Using this method, a special tax is levied to pay debt service on bond financing for the new capital improvements.

Rancho Mirage Chamber of Commerce

Originally, the Rancho Mirage Chamber of Commerce acted as a pseudo planning commission for the County of Riverside from its inception in 1953 until the City's incorporation in 1973. In the business of providing service, networking and information, the Rancho Mirage Chamber of Commerce makes the connections to help people do business through public relations, planning and executing events, and creating and disseminating publications and information for residents and destination management entities alike. Furthermore, the Chamber works in concert with the previously mentioned Rancho Mirage Restaurant Association to simply and effectively breed more business and send out the message that Rancho Mirage is the place to dine. If you would like additional information regarding the City of Rancho Mirage Chamber of Commerce and any of its activities, please contact Stuart Ackley at (760) 568-9351. Being the first chamber in the Coachella Valley to remain open on Saturdays, you're guaranteed to receive assistance in a timely manner.

Rancho Mirage Restaurant Association

The Rancho Mirage Restaurant Association was created in 1998 as a means for restaurants to coordinate marketing activities to benefit all local establishments. In a collaborative manner, the City of Rancho Mirage, the Chamber of Commerce and the Restaurant Association publish and maintain the Rancho Mirage Restaurant Guide. Rancho Mirage currently boasts 42 restaurants. Any restaurant located in the City of Rancho Mirage is eligible to join the association. Interested parties should contact Stuart Ackley at (760) 568-9351 for more information.

Small Business Administration Financing

A federal program created by Congress in 1953, the United States Small Business Administration (SBA) exists to aid small businesses with financing, training and advocacy. SBA works with a number of lending institutions in order to provide entrepreneurs with funding by guaranteeing major portions of loans made to such businesses. To see whether or not your business would qualify for assistance, or for additional information, please visit the SBA website at www.sba.gov. Or contact one of the many local financial institutions to inquire about SBA 504 financing opportunities.

Job Training Partnership (JTPA)

Riverside County staff can assist employers in obtaining JTPA funds through the Private Industry Council (PIC). The PIC provides employers with a trained workforce of screened people. Supplements up to 50% of the employee's wages, tax incentives and customized training programs are available to employers.

For information on Redevelopment or Economic Development, please call Curt Watts at (760) 324-4511.