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Optimistic signs abound in our valley economy

The Desert Sun Editorial Board • November 6, 2009

It's easy to continue to wring our hands about the worst recession in 80 years. But, while recent developments in the valley don't mark an end to our economic struggles, it is worth celebrating positive news.


Vons in Rancho Las Palmas: It was a significant loss to see the Vons in Rancho Las Palmas close, and unexpected in an affluent town like Rancho Mirage. Grocery stores employ lots of people at decent wages and customers become comfortable with a nearby store.

The center is now 20 percent vacant in the number of stores but nearly 40 percent of its square feet are empty with the closure of Vons.

Nevertheless, merchants in the center are optimistic — for good reason. Bandini Toffee plans to move its kitchen there and open a storefront. CVS Pharmacy has renewed its lease and a wig shop plans to open soon.

El Paseo Village: Construction began this week on the expansion of The Gardens on El Paseo in Palm Desert. Also, two chic shops — Eileen Fisher and Stuart Weitzman — are opening this week.

The Village won't be as big as originally planned, but 41,000 square feet in retail and restaurant space in an upscale area is good news.

Starbucks at the Palm Springs International Airport: The opening of another outlet for the ubiquitous coffee chain is not big news, but this one is part of a $3 million effort by HMSHost Corp. to improve the experience of flying in and out of our world-class airport. A La Brea Bakery and Zia Juice are scheduled to open by the end of the month.

A new fire station in La Quinta: The city broke ground Wednesday on a $6.8 million project that includes the first phase of the its corporate yard. Nearly two-thirds of the work was awarded to Coachella Valley companies.

Hyundai of La Quinta: The former Dodge City Chrysler Jeep, one of 789 dealerships shut down by Chrysler in the summer, has new life with a new brand. Many of the 75 employees who lost their jobs could return.

Desert Fashion Plaza: There is renewed hope that mostly empty 12-acre centerpiece of renewal for downtown Palm Springs could finally be approved. City officials say changes to its Museum Market Plaza Specific Plan would allow owner John Wessman to develop the property as he sees fit.

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Wessman representatives are still insisting on an east-west street, a key to attracting a developer interested in opening a 14-screen movie theater and a bowling alley. After all the rhetoric in the City Council campaign about the lack of progress, we hope the council can get the $50 million project off the ground.


Port Lawrence: The Palm Springs Planning Commission gave the owners of a mixed-use development pitched as the gateway to downtown Palm Springs another year to get it off the ground. It would bring 118 condos, 25,000 square feet of retail space and new life to the area.

Freeway interchanges: Construction is expected to begin January on the Gene Autry Trail/Palm Drive interchange at Interstate 10. Work on the Bob Hope Drive/Ramon Road interchange will soon follow. It is the first of five interchanges that will be built in the next few years at a total cost of $200 million.

Natural gas plant: And soon, construction will begin on a $900 million power plant north of Palm Springs. That will bring 350 construction jobs and 35 permanent jobs.

There's plenty of reason for skepticism. The county unemployment rate is nearly 15 percent and there are far too many empty stores. But there also is good reason for optimism. The recession won't last forever.

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