Fountainhead Development to build new retail project in Cathedral City

Thanks to the leadership of the City Council of Cathedral City, a long-awaited project within the City’s Downtown Arts and Entertainment District is moving forward! Within the next few weeks, the five acres located along the south side of East Palm Canyon across from the Agua Caliente Casino will become a hub of activity. Fountainhead Development (FHD), an Orange County-based commercial development company, will begin the horizontal site work for an exciting new retail project.

The five-acres will become home to a standalone Starbucks, Chipotle, Farmer Boys, and Circle K convenience store and fuel station. A 6,000 square foot building located between Starbucks and Chipotle will house between two to four additional retail businesses. FHD already has several retailers interested in the in-line space and is looking for one or two more tenants before vertical construction on this 6,000 square foot building will begin. The horizontal site work on the five-acre commercial parcel, which includes grading, installing utilities, and paving, will take approximately three months to complete. Vertical development (or actual building construction) should begin in January 2024 and take approximately one year to complete.

FHD is no stranger to the Coachella Valley. One of the most prominent commercial development companies operating within the Coachella Valley, FHD boasts a 28-year history of projects throughout the Low Desert (Coachella Valley) and High Desert (Apple Valley, Victorville, and Barstow). FHD routinely develops within Los Angeles County, Ventura County, San Bernardino County, San Diego County, and Orange County. FHD’s first Coachella Valley project was in Palm Springs in 1996. This project is located just north of East Sunny Dunes Road on South Palm Canyon Drive and was home to Starbucks Coffee’s first drive-thru in Southern California. Fast forward 27-years, FHD is under construction on the 17 acres located in Palm Desert between Interstate 10 freeway, Dinah Shore, and Monterey across from the Costco Palm Desert shopping center. FHD is also building a 10-acre site within the City of Coachella.

FHD’s deep experience base and relationships with national tenants was one of the factors which distinguished FHD from competing developers. FHD and the City’s Economic Development Department are working to attract additional retailers for a future commercial phase 2 along East Palm Canyon between Allen Ave and Van Fleet. FHD and Economic Development are working to identify a residential builder and any other compatible use for the remainder of the 13.5 acres. Given the complexities of commercial development, site planning and entitlements take years to complete. As more details on future developments are available, the Economic Development Department will keep you posted!

To stay on top of Economic Development activities and information, please bookmark You can strengthen our City’s and businesses’ economic future by shopping local. Check out our website, Cathedral City Shop Local, to find categories and lists of all the companies within Cathedral City which need your support. Shopping at our businesses will help our retailers thrive, improve the quality of future retail opportunities, and keep your vitally needed tax dollars within the City. Your tax dollars fund critical services such as Police, Fire, and road maintenance. There is no better way to attract new businesses than to ensure our existing businesses are prosperous.

Dr. Stone James

View posts by Dr. Stone James
Economic Development Director City of Cathedral City 68700 Av. Lalo Guerrero, Cathedral City, CA 92234 Direct: 760-770-0336 | Mobile 760-219-7227 Office Fax: 760-321-4509
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