Palm Desert considers 50% funding hike for Fashion Week and Food & Wine events

The Palm Desert City Council voted recently to pursue a new sponsorship agreement with Palm Springs Life that would increase the city’s annual contribution to two signature El Paseo events from $300,000 to $450,000 — a 50% increase — while the events’ producer warned that without more funding, the scope of both festivals will be cut.

Paulina Larson, marketing and events director for Palm Springs Life, told the council that the events have already begun scaling back and cannot continue at their current level without additional financial support.

“Yes, the event will be happening, but it will be shrinking,” Larson said. She added they have already cut back on some offerings, “We can’t continue to operate an event at this level…we absolutely will be reducing the scope of the events, which is never good.”

The current three-year sponsorship agreement, worth $300,000 annually, expires June 30. Palm Springs Life is requesting $450,000 per year for the next three years, citing $320,000 in new and increased costs that include a $20,000 annual sheriff’s presence at the events and a new $35,000 hosting fee at The Gardens on El Paseo. Additional cost increases in tenting, food, talent, and labor were also cited.

Larson said ticket sales and outside sponsorships have not kept pace with rising costs.

“Our labor costs, our talent costs have gone up,” the speaker said. “We used to be able to get [Chef] Curtis Stone here for a lot less than we have to get him here now. So, we can’t keep up at that.”

Marketing and Tourism Manager Thomas Soule told the council the proposed fiscal year 2026/27 budget includes $300,000 for the sponsorship, with additional contingency funds available depending on council direction. Any final agreement and appropriations would return to the council for approval at a later date.

Soule presented three-year performance data for both events. Fashion Week El Paseo drew 6,403 attendees in 2026 — down from 7,470 in 2024 — but posted its highest economic impact over the three-year period at $2,272,809. Palm Desert Food & Wine drew 4,595 attendees in 2026, down from a high of 7,102 in 2025, though the share of out-of-market visitors rose to 68%, its highest point in the three-year period. The food festival generated $1,912,255 in economic impact in 2026.

As part of the increased sponsorship request, Palm Springs Life also presented plans for a third annual event: the Palm Desert Design Summit, proposed for March 2027. The new event would target Palm Desert’s growing identity as a destination for home design, architecture, and luxury living, and would operate within the same tent infrastructure used for Fashion Week and Food & Wine.

“When you look at this line item [for the tent] in your budget, it’s not just one event, it’s two events,” Larson said.

Mayor Evan Trubee said the events have delivered clear value.

“You’ve delivered on what you promised, and it’s been a huge boon for our city,” Trubee said. “Adding a third event totally justifies to me the additional sponsorship revenue asked.”

Councilmember Gina Nestande expressed support and pointed to the broader economic benefit to El Paseo.

“Our city, as we all said, our number one source of revenue is sales tax,” Nestande said. “We need to do everything we can to support the world-class destination of El Paseo, and these events put Palm Desert on the map.”

Councilmember Karina Moreno abstained from the vote and pressed for more detailed financial data from Palm Springs Life before the council acts on a final agreement.

She acknowledged material from Palm Springs Life touting earned media figures from content creators and local news outlets, “These are great screenshots of the influencers and all of that, but that doesn’t mean anything to me as I’m looking at how has this grown year over year?”

“As one of of our business owners said, I can’t take percentages to the bank” Moreno said.

Councilmember Jan Harnik questioned whether there was room to negotiate costs with The Gardens on El Paseo and the Sheriff’s Department before a final sponsorship figure is set.

“I am quite sure there’s no one up here that wouldn’t like to see as much reduction as possible,” Harnik said.

The council voted 4-0, with Moreno abstaining, directing staff to return with a proposed sponsorship agreement based on the $450,000 ask, or as close to that figure as possible after further cost negotiations.