Cathedral City's plan to sell downtown Festival Lawn draws controversy

Cathedral City’s Festival Lawn, a 1.8-acre park downtown used for major events, could become the site of a new affordable housing or commercial development as the city moves to consider selling it.

The city council unanimously declared the Festival Lawn, located at the northwest corner of East Palm Canyon Drive and West Buddy Rogers Avenue, to be "surplus land" in late June. It also directed the city manager’s office to proceed with the requirements in the Surplus Land Act , a state law aimed at helping increase affordable housing in California.

Residents and visitors are likely most familiar with the Festival Lawn as the location of three major annual events: the Taste of Jalisco Festival, LGBT+ Days and the International Hot Air Balloon Festival. It is otherwise over an acre of open lawn located downtown, by the civic center, Coachella Valley Repertory, Cathedral City Community Amphitheater and restaurants.

What does the Surplus Land Act require?

Assistant City Manager Anne Ambrose said the act requires local agencies to prioritize affordable housing, parks and open space when disposing surplus land. This process begins by declaring a piece of land as "surplus."

"And by doing so, we're declaring that we are not going to have a governmental purpose for it," she said. "That we're not going to use it for construction of a city building or for a park or some other city government use."

The next step is putting out a written notice of availability giving anyone 60 days to tell the city they'd like to buy the property. If there are multiple letters of interest, state law requires the city to give priority to anyone planning to develop affordable housing.

Ryan Hunt, the city's communication and events manager, said Cathedral City issued its notice of availability for the Festival Lawn on July 2 . It's sent to low- and moderate-income housing developers, parks, recreation and open space districts, school districts and other agencies, he said.

If there's any interest, the city will negotiate in good faith for at least 90 days over a price or lease terms. But if the two sides don't reach an agreement or no affordable housing group expresses interest, Ambrose said the city may inform the California Department of Housing and Community Development and get a clearance letter allowing the city to sell the property or keep it for a governmental purpose.

Why is the city doing this?

Hunt told The Desert Sun that several commercial developers have spoken with the city about developing the Festival Lawn, but it can't consider offers until it goes through the Surplus Land Act process.

One of the city's goals is to develop its downtown area. A June 26 city staff report states that going through the Surplus Land Act process meets the fiscal stability and sustainability action goal of the city's five-year strategic plan.

Mayor Mark Carnevale said this will fulfill the dream for downtown Cathedral City down the road.

"I think this has been a long time coming and I'm really excited to get this moving forward," he said.

How much could it be sold for?

The Festival Lawn's minimum sales price and last appraised value is $1,260,000, according to the city's notice of availability. Ambrose said the $4,000 to get that appraisal, which was issued June 9, is the only cost the city has incurred so far in the surplus land process.

How will this impact events held on the Festival Lawn?

The council will still prioritize continuing Cathedral City’s events.

Hunt said the city would work around any possible future development to hold the Taste of Jalisco Festival, LGBT+ Days, International Hot Air Balloon Festival and other events.

But some residents are concerned about losing the empty park. A petition, titled “Don't Sell Our Downtown Parks,” requests the city halt actions related to selling the Festival Lawn until it hears from residents during a town hall. The effort had 180 signatures as of Wednesday.

“From LGBT Days and the annual Hot Air Balloon Festival to the Taste of Jalisco Festival, the park plays a vital role in bringing people together, celebrating our diversity, and fostering community pride,” the petition states. “The proposed sale threatens to strip away this valuable asset, diminishing the vibrancy and communal spirit that Festival Lawn embodies.”

What's next?

The city will enter negotiations if a group expresses interest in the Festival Lawn. If no one does, then the city will move forward with getting the state's all-clear to possibly sell or keep it.

"That would mean that we can market the parcel, we can hold onto it and kind of really think about what we would like, what would make the most sense there," Ambrose said.

Even if an affordable housing group doesn't step forward now, there will still be a stipulation for affordable housing attached to the land, in case there is a residential development built there some time in the future. Ambrose said the city will have to record a deed restriction requiring 15% of residential units of developments of 10 or more units to be affordable for 55 years for rented units and 45 years for owned units.

Ani Gasparyan covers the western Coachella Valley cities of Desert Hot Springs and Cathedral City. Reach her at ani.gasparyan@desertsun.com.

This article originally appeared on Palm Springs Desert Sun: Cathedral City's plan to sell downtown Festival Lawn draws controversy