Coral Mountain will have significant local economic benefits for the City of La Quinta in the areas of job creation and General Fund revenue through tax sources.
- The project will create both temporary and permanent jobs.
- The value of construction is estimated to be $1.2 billion, which will create good-paying jobs for vendors and tradesmen over five to seven years for the first phase alone.
- Operations of the amenities, hotel, and community maintenance and management will create more than 200 permanent jobs.
General Fund revenue for the City will be created from several sources:
- Millions of dollars in development impact and building permit fees for construction will be generated.
- Sales tax from commercial development on the site, including The Corner neighborhood commercial site at Avenue 58 and Madison Street, as well as onsite Wave Basin operations, food and beverage, and hotel retail and services.
- Transient Occupancy Taxes. The hotel rooms and carefully programmed and managed short-term vacation rentals will create significant TOT income for the City.
The Coral Mountain Specific Plan area (including the proposed Wave property, Andalusia, and Trilogy) is within the boundary of the former County Thermal Airport Redevelopment Area (RDA). As such, the County of Riverside retains all property taxes paid for the retirement of outstanding bond debt until at least the mid-2030s.
This means that none of the existing development in the former RDA boundary are paying for City emergency and general services. The cost of these services, estimated at $2,125 per home annually, generates an estimated city budget deficit of approximately $3.7 million. The City currently must make up this deficit from other General Fund revenue sources.
When the Specific Plan area was annexed in the early 2000s, the City studied the fiscal impacts and considered imposing a supplemental tax assessment on all homes. However, it deferred and opted not to take this step.
Now, with Coral Mountain coming forward, it is important that it not exacerbate any existing undesirable conditions and build in land uses that ensure it pays its own way for the cost of City services. The current plan achieves this objective, as studied by the City in a Fiscal Impact Analysis. The study indicates that Coral Mountain’s tax generation exceeds the cost of services and excess proceeds can be applied to budget shortfalls associated with the other Specific Plan area neighborhoods.