City staff presented three paths for the Civic Center sheriff’s substation to the Palm Desert City Council during a Feb. 12 study session and council members gave direction to pursue keeping the building for city use.
Jill Mendoza, the city’s economic development manager, told the council the 25,000‑square‑foot building (about 19,000 sq ft on the main level and roughly 6,000 sq ft in the basement) was built in 1989, renovated in 2007 and has had HVAC upgrades in 2012. Mendoza said the sheriff’s current lease generates about $570,000 annually (reported as $1.87 per sq ft) and the city covers roughly $200,000 a year in operating costs, producing a net operating contribution of about $374,000. Losing that lease would reduce Parkview Fund revenue—Mendoza said the substation provides about 50% of that fund’s revenues—and would create an estimated net operating loss of about $173,500 annually once the lease ends.
Mendoza presented three options: retain the building for city purposes with estimated renovation costs around $974,000 (interior, restrooms, and roof analysis); renovate to make the space competitive for market tenants (estimated base renovation ~$1,700,000 plus tenant improvements and possible vacancy risk); or demolish the building (estimated demolition cost ~$1,090,000) and return the site to a vacant condition. Mendoza noted the basement is typically excluded from marketable square footage and would reduce rentable area for private tenants.
Council members asked about potential unanticipated basement maintenance costs, demolition comparables, and a 'do nothing' option; staff cautioned that holding the building vacant still carries maintenance costs and that market searches for tenants had been unsuccessful in prior attempts.
During the discussion, several council members argued in favor of retaining the substation for city needs—offices, public engagement space, an emergency operations center and secured fleet parking—citing campus proximity and secure parking benefits. Those council members said repurposing preserves a civic asset and supports future growth. Mayor Truby stated that option A appears to be the council’s preference and staff said they will return with a plan to identify funding, detailed renovation analysis and implementation steps.
No formal vote was taken; the council provided direction to continue analysis of renovating and retaining the facility for city purposes.