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Desert Hot Springs Just Said No to More Dollar Stores. Here's What's Filling In Instead

Desert Hot Springs Just Said No to More Dollar Stores. Here's What's Filling In Instead

On the last Saturday of July, Pierson Boulevard between Cactus Drive and West Drive filled with folding chairs, food truck lines, and a country tribute band called Country Nation working through a set of modern and classic hits under string lights. Kids ran between the artisan vendor booths. Someone's dog wore a bandana. By 9 p.m. the block looked like the kind of downtown scene that takes most desert cities a decade of planning documents to fake.

About two months earlier, the city council had voted on something much less photogenic: a temporary freeze on new dollar stores.

Those two facts sitting two months apart tell you more about where Desert Hot Springs actually is right now than any single mural or ribbon cutting. The city is spending real money and real political capital pulling culture and hospitality upmarket, while at the same time admitting, in a public vote, that its everyday retail floor hasn't caught up.

The boulevard has a rhythm now

Desert Nights on the BLVD, the city's free outdoor event series at 66120 Pierson Boulevard, runs on a set cadence: every second Saturday brings DJs and local bands, every last Saturday brings a tribute act, and the whole thing shuts down for the farmers market portion each summer, returning to downtown in October. That's not a one-off block party. That's a resident calendar item.

This year's lineup has already run through a Motown night with singer Tyrell Edwards, a 90s throwback called Y2K2K, and the July country show. Coming up on September 26 is New Doubt, a tribute act built around the ska and alt-rock catalog of No Doubt. None of these are national touring acts. All of them are enough to make a Saturday night on Pierson worth planning around, which is a different thing than it was a few years ago.

What makes the series notable isn't the bands. It's that the city built a recurring, dependable format around it, with a fixed location, a fixed schedule, and enough consistency that residents can treat it the way people in bigger cities treat a regular farmers market or a monthly gallery walk.

The murals arrived faster than the storefronts

Walk that same stretch of Pierson in daylight and the other half of the investment is on the walls. As of a November 2025 economic report from Palm Springs Life, Phase 1 of the city's Art in Public Places program had installed 13 large-scale murals along the corridor. The anchor piece is Shepard Fairey's "Power & Equality," curated by Casey Zoltan of downtown's Known Gallery, alongside work by artists TRAV, Mr. B Baby, and Yanoe. One of the TRAV pieces, at the corner of Palm Drive and Pierson Boulevard, was created with local youth through the same public art program.

A Shepard Fairey mural is not a small thing for a downtown of this size to land. It's the kind of placement that usually shows up in write-ups about Los Angeles arts districts, not a three-block stretch of a Coachella Valley city of about 32,000 people. It signals that whoever is steering the public art budget here is thinking about the corridor as a destination for people who already live nearby, not just as a beautification line item.

The hotels reopening around them

The art and the concerts are the visible layer. Underneath it is a tax incentive doing quieter work. Under the city's Hotel and Spa Revitalization Program, new hotels and spas get their transient occupancy tax fully waived for the first two years and half-waived for years three and four, according to a December 2025 KESQ report on the updated program. City leaders framed the goal plainly: double tourism revenue while diversifying away from a local economy that leans on cannabis tax dollars.

Desert Hot Springs Mayor Pro Tem Gary Gardner put the logic this way when the update passed:

"Growing our TOT to the extent it will be an even leg on our revenue stool will be really important to the city, so we can weather whatever downturn. If there's a downturn in tourism, we'll be ok; if there's a downturn in cannabis, we'll be ok, because we won't lose all of our money in one fell swoop."

That incentive is already changing which properties are open along the corridor:

Property Formerly Status
Hope Springs Resort New build Opened May 2025, 10 rooms, terrace pool, hot tub, kitchenette suites
The Hudson Vista Ventana Motel Under renovation for a boutique repositioning
Soluna Hyundae Resort Being redesigned for an updated guest experience
Relax Inn Same name Renovations underway, original character preserved
Waterland Resort New build Approved by the Planning Commission for wellness and recreation use

That's five properties in some stage of change at once, on top of longer-standing spa destinations like Azure Palm and Two Bunch Palms. For a city working from a shrinking base of legacy spas, that's a meaningful reversal.

What the council wouldn't approve

Set against all of that is the vote that actually made news in late May. According to KESQ's May 26, 2026 report, the city council approved a 45-day ban on new dollar stores, extendable up to two years, because the city already has five of them serving a population of roughly 32,000. Mayor Scott Matas pointed to a familiar resident complaint: too many trips to Palm Springs for clothes, groceries, and basic errands, which means Desert Hot Springs loses that sales tax revenue to a neighboring city instead of collecting it at home.

Compare the two policy moves side by side. The hotel incentive is proactive and generous: a four-year tax holiday designed to pull upscale hospitality operators in. The dollar store freeze is defensive and short: a 45-day pause meant to buy the city time to figure out how to attract something better before another discount chain locks up a storefront. One policy is building toward where the city wants to be. The other is trying to stop the corridor from filling in with more of what it already has too much of.

The gap you actually notice on a Saturday night

This is the part a resident feels before they can name it. You can walk out of a Desert Nights on the BLVD show, past a Shepard Fairey mural, past a hotel that reopened just over a year ago, and still find that your options for a real sit-down dinner or a decent browse afterward are thinner than the evening's entertainment would suggest. The cultural and hospitality layer of downtown Desert Hot Springs has moved faster than the everyday retail layer beneath it. The murals went up. The tribute bands got booked. The boutique hotels started reopening. The five dollar stores stayed exactly where they were until the council finally said enough, at least for now.

That's not a knock on the city. Building a downtown retail base from five dollar stores upward is slower and less glamorous than commissioning a mural or waiving four years of hotel tax. But it does mean the corridor right now is genuinely two different places depending on which hour you're standing on it: a legitimately good Saturday night, and a Tuesday afternoon errand run that still sends you to Palm Springs.

If you're the kind of resident who tracks this stuff because you're curious what it means for your own street or your own property down the line, that's a conversation worth having with someone who watches this market closely rather than someone reading the same press release you did. Nick Miller keeps an eye on exactly this kind of shift across the Coachella Valley, and if you ever want to talk through what it means for a specific address in Desert Hot Springs, reaching out costs nothing and starts with a real conversation, not a form.

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