Next year, the Palm Springs City Council wants to approve a plan that will guide development at the Desert Fashion Plaza site downtown for years to come.

But owner John Wessman says it's an old plan that he isn't capable of building in these tough economic times. He wants the city to hold off while his architects develop a new plan.

Palm Springs Mayor Steve Pougnet says he understands. But the market could turn around tomorrow and downtown needs a plan today, he said. He also has campaign promises to make good on.

“We do not want to delay (the plan) because it's part of what we told the citizens we would do,” Pougnet said this week.

“In the scheme of things, the new plan has a much better chance of getting built than the old plan,” said John Williams, president of the Palm Springs Neighborhood Involvement Committee, which represents 9,000 households. “We question why we want to be so determined to follow through on the Specific Plan when there's not much chance of that happening.”

Pougnet said, however, there is “no need to stop the process,” despite Wessman's request for a delay.

The Specific Plan includes up to 955 condos, 620 hotel rooms and 400,000 square feet. The new plan involves remodeling the vacant, 335,000-square- foot mall and cutting a street through the center.

It is to “to the city's advantage” however, to move forward with the Specific Plan, Councilman Lee Weigel said.

“It gives us the ultimate possibility so we could move forward and build to the maximum benefit to the city on the property,” Weigel said.

Weigel is adamant that approving the Specific Plan next year would not hamper Wessman's current plans to simply remodel the mall.

“My only objective is to get something done, to make downtown as presentable and as attractive as possible,” Weigel said. “Any version or any way he chooses to present the plan is acceptable to me.”

Financing an issue

If Wessman is unable to build something, the city could step in and do a condemnation, Weigel said. The city paid its downtown master developer Nexus Development Co. $25,000 to come up with an alternative plan for the Desert Fashion Plaza site.

Yet Nexus has been unable to secure financing for its nearby Hard Rock Hotel.

“Until financing gets off the ground, we can't expect anything from them either,” Weigel said. “Our best bet is to support (Wessman) in every way we can and bring him along to make sure we get something done.”

City Manager David Ready said he will suggest that the City Council approve the Specific Plan and then possibly — if they like it — Wessman's new plan. That way, in case one plan fails, there is backup.

“Get them both approved,” Ready said. “Then it's a horse race. If it's all approved, then who steps to the plate first?”

Planning costs

Wessman, however, questions why he should be the one to pony up another $70,000 to $100,000 to complete the Specific Plan and Environmental Impact Report when he isn't going to build that project. He's already spent about $200,000 on the EIR and Specific Plan, Wessman Development Vice President Michael Braun said.

City Attorney Doug Holland said the city will evaluate Wessman's requirement to pay for the documents if the new plan is favored over the Specific Plan.

While some have criticized Wessman's new plan as a stall tactic, attorney Emily Hemphill said it is the Specific Plan that would stall downtown development.

“If he wanted to delay (the project), he could have done it way cheaper than that,” Hemphill said.

Instead, Wessman and his team have been actively promoting the new plan. It's been shown to Main Street Palm Springs, the Palm Springs Hospitality Association and The Desert Sun's Editorial Board.