Palm Springs Continues to Benefit From Downtown Development Despite The Past

After nearly a decade of legal proceedings, a sentencing date has finally been scheduled for former Palm Springs Mayor Steve Pougnet. He is set to appear in court on July 2nd to face consequences for his role in a wide-ranging corruption scandal that shook the city’s leadership and prompted a federal investigation. Pougnet pleaded guilty to eight counts of bribery, eight counts of conflict of interest, and one count of conspiracy—a total of 17 felony charges. He was initially facing 21 charges, including three counts of perjury, which he did not plead guilty to.

The case stems from Pougnet's acceptance of hundreds of thousands of dollars in bribes from developers, including one behind the Kimpton Rowan Hotel, a signature property that helped usher in the dramatic revitalization of downtown Palm Springs. Despite the scandal, public opinion about Pougnet’s legacy remains mixed. Residents and business owners downtown acknowledged the lasting positive impact of the city’s redevelopment projects—even as they condemned the former mayor’s conduct. Kristen Eldar, owner of Gold Store Jewelry, recalls the days when downtown storefronts were frequently vacant.

“Every other month there was a business closing. There was a sign up saying ‘for lease,’” she said. “Now people have seemed to stabilize here.”

The FBI raided Palm Springs City Hall in 2015, marking the beginning of a major investigation into municipal corruption. Just two months later, Geoff Kors was sworn in as mayor. Speaking to NBC Palm Springs, Kors acknowledged the damage done by the scandal but emphasized that the downtown developments were not born of corruption.

“Former Mayor Pougnet’s actions were awful,” Kors said. “But he did help push forward key projects, including the downtown development and Measure J, the sales tax that funded parks, the library, and restoration of the Plaza Theatre.”

Kors, with a lawyer background, explained that while Pougnet’s crimes were serious, the city council had already approved many of the development plans. “There were some people who wanted everything to stop, but the vast majority supported us moving forward,” he noted.

Geoff Kors had acknowledged as the July 2nd sentencing date approaches, the court will consider a range of possible outcomes—from long-term probation to significant financial penalties. NBC Palm Springs will continue to follow the case as new details emerge. For more information tune into NBC Palm Springs.