New 'El Paseo' Planned for Desert Community
A proposed retail center and spa that could rival El Paseo Drive in Palm Desert, Calif., has received the green light from city officials in nearby Rancho Mirage, Calif.
The proposed Five Peaks Resort & Spa will feature about 230,000 square feet of retail space and a spa facility. Developer Monte Vista Rancho Mirage LLC, headquartered in Turlock, Calif., envisions a resort supported by a retail element similar to that found on ritzy streets such as Rodeo Drive in Beverly Hills and El Paseo Drive.
“That’s what has been hinted at, but we will have to wait until we see what comes through the door,” said Curt Watts, economic-development director for Rancho Mirage.
The development company, headed by President Timothy Starkweather, will be aiming for high-end tenants in the coming months. The company paid cash for the land, located near Highway 111 and Bob Hope Drive, so it has the luxury of taking its time and waiting out the recession to attract the kinds of tenants that could cater to a well-to-do crowd.
El Paseo itself is undergoing a renovation, which will include new stores such as Bottega Venetta, St. John and Burberry.
Watts said Rancho Mirage has weathered the economic downturn better than most in the Coachella Valley. Hotel occupancy rates are averaging 10 percentage points better than many of the city’s neighbors.
Stuart Ackley, director of the Rancho Mirage Chamber of Commerce, said retailers have also posted some good results.
“We depend more on drive-in traffic [from Los Angeles and San Diego] and are less reliant [on international tourism], so we have had some good months. The River [at Rancho Mirage shopping center] has had some good success. Five Peaks will be across the street from a new $15 million public library, which should help,” he said.
Watts added that Rancho Mirage’s economy has not gone unscathed. A$500 million renovation of the Ritz-Carlton resort was suddenly halted last year because of the bankruptcy filing of its principal lender, Lehman Bros. Holdings.
Monte Vista has an option to build a boutique hotel adjacent to the spa project. Meanwhile, the developers told the city they plan to break ground during the second quarter of 2010 and complete the first phase of development in 2011.
Plans are to build the project using “green” construction methods. Solar-powered panels will be included. Monte Vista hopes to gain LEED (Leadership in Energy and Environmental Design) certification, which may provide tax and other incentives. —Robert McAllister
