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Desert Water Agency Approves $8.4M Interconnection With Coachella Valley Water District Desert Water Agency’s board just voted to spend $8.4 million on a pipeline connecting their system to Coachella Valley Water District — a move that shifts the Valley’s water politics after decades of separate operations. This isn’t just infrastructure; it’s insurance against the next drought and a signal that east valley growth (where CVWD operates) now requires west valley resources. For developers and anyone betting on where the Valley builds next, this pipeline is a map. Riverside County Supervisors Pass $10.7B Budget With 4% Raise for 14,000 Employees Riverside County just locked in a $10.7 billion budget for fiscal year 2025-26, including a 4% cost-of-living raise for roughly 14,000 county workers — many of whom live and spend in the Coachella Valley. That’s real money flowing into local restaurants, retail, and housing demand at a time when wage growth has stalled elsewhere. The county is also hiring aggressively, which means competition for talent in hospitality, healthcare, and trades is about to get stiffer. Indio Planning Commission Greenlights 294-Unit Apartment Complex Near I-10 Indio’s planning commission approved a 294-unit apartment project on the north side of town, near the I-10 corridor — one of the largest multifamily developments proposed in the east valley this cycle. With Palm Springs and Palm Desert pushing back on density, Indio is quietly becoming the Valley’s housing release valve. If you’re tracking where workforce housing actually gets built (not just talked about), watch Indio’s industrial edges. Cathedral City Breaks Ground on $18M Aquatic and Community Center Cathedral City officially broke ground on an $18 million aquatic and community center this week, funded by Measure C sales tax revenue and state grants. The facility includes competition pools, a fitness center, and event space — infrastructure that signals Cat City’s bet on family retention and daytime economy beyond tourism. For a city that’s long played second fiddle to Palm Springs, this is a tangible play for residents who want amenities without the price tag. Palm Springs Unified Faces $12M Budget Shortfall, Considers Campus Closures Palm Springs Unified School District is staring down a $12 million budget gap and has floated the possibility of consolidating or closing campuses to close the gap. Declining enrollment (down 8% since 2020) and rising pension costs are squeezing districts across California, but here it collides with a housing market that’s priced out young families. If schools close, it’s not just a budget story — it’s a signal about who the Valley is building for. Coachella Valley Association of Governments Advances $42M Varner Road Extension CVAG moved forward this week on the $42 million Varner Road extension, connecting Thousand Palms to I-10 and opening up a corridor that’s been on the books for 15 years. The project is backed by state and federal infrastructure dollars, and it’s a bet that the north valley — historically overlooked — is the next growth frontier. For logistics, industrial, and anyone eyeing cheaper land with freeway access, this road is the unlock. La Quinta Approves 120-Room Boutique Hotel Near Old Town La Quinta’s city council approved a 120-room boutique hotel project near Old Town, marking the first new hotel construction in the city since 2019. The developer is pitching “design-forward, locally rooted” — code for competing with Palm Springs’ hotel renaissance without the Spring’s price point or crowds. La Quinta has been the Valley’s quiet luxury play for years; this project tests whether visitors want that vibe at scale. Desert Healthcare District Allocates $3.2M for Mental Health and Substance Abuse Programs Desert Healthcare District approved $3.2 million in grants for mental health and substance abuse programs across the Valley, with a focus on youth services and bilingual outreach in the east valley. This is public health infrastructure that doesn’t make headlines but shapes outcomes — especially in communities where access to care is still measured in drive time. The question: can grants fill the gap left by a provider shortage that’s only getting worse?

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Local Radar

Modernism Week Preview Events Begin February 13 — Modernism Week’s opening events kick off February 13, with home tours, panels, and parties running through February 23. This is the Valley’s economic Super Bowl: $250+ million in visitor spending, packed hotels, and a two-week showcase of what makes Palm Springs a global design brand. If you’re in hospitality, retail, or real estate, this is your moment. Coachella Valley Firebirds Host Ontario Reign January 22 — The Firebirds play Ontario at Acrisure Arena in Palm Desert on January 22, continuing a season that’s drawn consistent crowds and proven the Valley can support minor league sports. Watch whether weeknight games hold attendance as the novelty wears off. Palm Desert Food and Wine Festival March 28-30 — Palm Desert’s Food and Wine Festival returns March 28-30, anchoring a spring calendar that’s increasingly competitive with Coachella and Stagecoach for visitor dollars. The festival has grown every year since launch; this year tests whether it can command premium pricing. CVAG Public Workshop on CV Link Expansion January 27 — CVAG is hosting a public workshop on January 27 to discuss the next phase of CV Link, the Valley’s multi-use pathway. The project has been slow to gain traction outside Palm Desert; this meeting will show whether there’s real momentum or just more renderings. Agua Caliente Cultural Plaza Grand Opening Scheduled for April 2026 — The Agua Caliente Band of Cahuilla Indians’ cultural plaza in downtown Palm Springs is on track for an April opening, adding museum space, event venues, and a new anchor to the north end of Palm Canyon Drive. This is the most significant tribal cultural investment in the Valley’s modern era — and a test of whether Palm Springs’ center of gravity shifts north.