(Cathedral Cove Center Begins To Come Into Sharper Focus)
Cathedral City, CA
A new project within Downtown Cathedral City — Cathedral Cove Center — will soon be adding new dining options and jobs. It will also increase the tax base, according to Stone James, economic development director.
On May 24, the City Council will be asked to conditionally approve the Improvement Agreement for Parcel Map No. 37876 with Cathedral Cove 1.0, LLC, and authorize its execution when all required surety bonds are received and deemed acceptable.
On April 26, the City Council approved the final parcel map needed to create a five-acre commercial development located on the south side of East Palm Canyon across from the casino. Assuming the construction financing industry remains stable, the first phase of this commercial project will see a newly designed Starbucks, Chipotle, Farmer Boys, and Circle K convenience store and fuel station, according to James.
Future tenants could include a bank, personal care business(es), and a sandwich shop. Fountainhead Development (Coachella Valley’s most active retail developer), is working to attract a multi-family residential housing developer on the rear portion of the property.
The commercial portion of the project is approximately 5.46 acres and will be located along East Palm Canyon Drive. The remaining 7.69 acres, which is located at the rear of the Project site, south of the proposed commercial portion, will be for a future multifamily residential development, according to a staff report. Development plans for this portion have not yet been prepared and this portion of the Project site will remain vacant until such plans are prepared and approved by the city through a separate entitlement process.
Speaking of multi-family residential housing, in the recent General Plan update, the City Council approved increasing residential densities on several multifamily-zoned properties throughout the city, James said. As residential development densities increase, so do retail sales. As retail sales improve, more retailers will want to open a business in Cathedral City. As taxable retail sales increase, the quality of roads, parks, and city services improve.
In addition to increasing retail activity, resale home market is thriving. In March 2023, according to the Valley’s premier residential real estate market analysis company, Market Watch, LLC, Cathedral City led the other nine Valley cities with the highest year-over-year residential home sales price growth of 6.6%. To put this sales price increase into perspective, five Valley cities had year-over-year price declines ranging from -0.3% to -7.2%. Cathedral City’s strong resale home market is driving demand for new home development, according to James.
- Cathedral Cove Center Rendering: City of Cathedral City
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