How to Challenge Development Fees in Coachella Valley

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When challenging a development fee increase, choosing the right forum can be just as important as presenting the right facts.

For builders, contractors, and developers in the Coachella Valley, development fee increases can affect construction budgets, project timelines, and housing affordability. But raising concerns about these fees doesn’t have to mean creating conflict with local government.

The Desert Valleys Builders Association (DVBA) encourages a constructive, fact-based approach. Sometimes a meeting with city staff is the best first step. Other times, a public hearing is the appropriate place to address concerns.

Understanding the difference can help builders advocate effectively while maintaining productive relationships with local agencies.

Why the Right Forum Matters When Challenging Development Fees

Development fees are an important consideration for construction projects throughout Palm Springs, Palm Desert, Rancho Mirage, La Quinta, Indio, and surrounding Coachella Valley communities.

When a fee increases unexpectedly, or a calculation seems incorrect, frustration is understandable. However, beginning with a public confrontation may not produce the best results.

Before escalating a concern, determine whether the issue involves an administrative question or a broader policy decision.

For example, a fee dispute might involve an incorrect project classification, confusion about the calculation methodology, or uncertainty about when payment is required.

These questions may be resolved through clarification rather than formal opposition.

The goal is to understand how the fee was calculated and applied before deciding on the next step.

When Should Builders Request a Staff-Level Meeting?

For many development fee concerns, a staff-level clarification meeting is a productive starting point.

City planning, building, or permitting staff may be able to explain how a fee applies to a specific project and identify whether an administrative issue needs attention.

A clarification meeting is particularly useful when dealing with:

  • Project misclassification: The project may have been placed in an incorrect fee category.
  • Permitting workflow issues: Questions exist about when a fee is assessed or collected.
  • Unclear methodology: The calculation or supporting documentation needs explanation.

The tone of the conversation matters.

Rather than beginning with an accusation, DVBA recommends a straightforward approach:

“Help us understand how this was calculated and applied, because here’s what it does to the project.”

This keeps the discussion focused on facts and provides an opportunity to explain the financial consequences.

A constructive conversation doesn’t mean accepting an incorrect fee. It means creating an opportunity to resolve the issue without unnecessary conflict.

When Does a Public Hearing Make More Sense?

Not every development fee concern can be addressed through a staff meeting.

A public hearing may be the appropriate forum when a city or agency is considering a formal policy decision or when the issue affects the broader building community.

Three situations may warrant public participation:

1. A New Fee or Increase Is Being Considered

When a local government is formally adopting or increasing a development fee, builders may have an opportunity to explain how the proposed change could affect construction costs and project feasibility.

2. Supporting Documentation Is Incomplete

If questions remain about the fee methodology, supporting documents, or consistency of application, a public discussion may help bring those concerns before decision-makers.

3. The Policy Has Broader Economic Impacts

Some fee increases affect multiple projects or development categories throughout the Coachella Valley.

When a policy decision has widespread consequences, elected officials may need to consider its effects on construction activity and housing affordability.

The key is matching the forum to the decision being made.

Builders should also pay attention to applicable public comment deadlines and agency procedures.

How to Present an Effective Development Fee Challenge

Whether meeting with staff or speaking at a public hearing, DVBA recommends three practical steps.

1. Stick to the Documented Facts

Identify the specific fee, the amount being assessed, and the documentation supporting it.

Review the applicable fee schedule, project classification, calculation methodology, and permitting timeline.

Clear documentation helps decision-makers understand the concern and reduces the likelihood of misunderstandings.

2. Explain the Economic Consequences

Rather than simply stating that a fee is too high, explain what it means for the project.

A development fee increase may affect:

  • Construction budgets and financing
  • Project cash flow
  • Permitting and construction timelines
  • Housing development costs
  • Overall project feasibility

Explaining these consequences in plain language helps connect the fee discussion to practical construction considerations.

3. Offer a Workable Alternative

Constructive advocacy involves more than identifying a problem.

Depending on the circumstances, possible alternatives might include phased implementation, applicable fee credits, clearer project classifications, or adjustments to payment timing.

These options are not guaranteed solutions, but they can provide a starting point for productive discussion.

Frequently Asked Questions About Development Fees

Can Builders Challenge Development Fee Increases?

Builders can raise concerns through appropriate administrative or public processes. The available options depend on the agency, the fee involved, and whether the issue concerns an existing fee or a proposed policy change.

Should I Contact City Staff Before Attending a Public Hearing?

A staff-level meeting is often helpful when the concern involves calculations, classifications, or administrative procedures. However, a public hearing may be appropriate when a fee increase is being formally considered or broader policy issues are involved.

What Documents Should I Review Before Questioning a Fee?

Start with the applicable fee schedule, project classification, calculation methodology, and permitting timeline. These documents can help establish the facts and identify questions that need clarification.

DVBA: Supporting Coachella Valley Builders Through Constructive Advocacy

Development fees and permitting decisions can have significant consequences for the Coachella Valley building industry.

Effective advocacy begins with understanding the facts, choosing the appropriate forum, and explaining how a policy or fee affects real construction projects.

Sometimes that means requesting clarification from city staff. Other times, it means presenting concerns during a public hearing.

In either situation, the objective should remain the same: clear communication, documented facts, and practical solutions.

The Desert Valleys Builders Association works to keep local builders, contractors, and developers informed about issues affecting construction throughout the region.

Visit Desert Valleys Builders Association to learn more about DVBA and its advocacy for the Coachella Valley building community.

Unexpected Permit Fees in the Coachella Valley? What Builders Should Do

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If you build or develop in the Coachella Valley, one of the most frustrating surprises is a fee that appears late in the permit process—after plan check has been moving, after you’ve priced the job, and sometimes after you’ve already aligned your financing and schedule.

Here is the thing: a late fee is rarely “just a fee.” At the end of the day, it can become a schedule problem, a financing problem, and a feasibility problem. And when it’s not clearly documented, it can also become a process problem—because you can’t manage what you can’t clearly identify.

This article is a practical, fact-first guide to responding when a city or agency introduces a new or unexpected charge late in the game. It’s written for builders, developers, and the broader construction ecosystem—trades, designers, engineers, lenders, and suppliers—because everyone downstream feels the impact when a project slows down.

 

1) The practical problem: a “new” fee shows up after you thought you were close

Late-stage fee surprises tend to show up in a few predictable moments:

  • When a project moves from planning to building (or from entitlement to permit issuance) and a different department becomes the gatekeeper.
  • When a condition, note, or requirement is interpreted differently by a reviewer than you expected.
  • When a fee schedule is applied in a way that doesn’t match how the project was described earlier.

– When an agency says a fee is required “before issuance,” but the project team hasn’t seen it in any prior checklist or invoice.

Sometimes the fee is legitimate and simply wasn’t communicated clearly. Sometimes it’s a misapplication, a mismatch in project classification, or a process gap where the project is being asked to pay for something twice.

The goal is not to turn every fee into a fight. The goal is to make sure the fee is lawful, correctly applied, and timed in a way that is fair and predictable.

 

2) First response: get the fee in writing and identify the decision point

When a late fee appears, the most important first step is to slow down just enough to get clarity—without blowing up your timeline.

Ask for these items in writing (email is fine):

  • The exact fee name and amount.
  • The fee schedule, resolution, ordinance, or adopted document that authorizes it.
  • The department or agency imposing it (city building, planning, public works, fire, water, school district, etc.).
  • The trigger: what event causes the fee (plan check submittal, permit issuance, inspection, utility release, certificate of occupancy, etc.).
  • The reason it applies to your project (project type, valuation method, square footage category, number of units, change of use, etc.).

Then identify the decision point:

  • Is the fee required to keep plan check moving?
  • Is it required for permit issuance?
  • Is it required for a release (power, water, fire sign-off)?

This matters because your leverage and options change depending on where the fee sits in the workflow.

Practical tip: If you can’t get a clear written basis, you don’t yet have a fee—you have a conversation. And conversations are where misunderstandings become expensive.

 

3) Cost reality: why late fees are more expensive than they look

Even when the dollar amount is “not huge,” late fees can carry hidden costs.

  • Carrying costs: If a fee delays issuance by weeks, the project may absorb additional interest, overhead, and extended general conditions.
  • Rework costs: If the fee is tied to a design interpretation, you may be forced into redesign, resubmittal, or additional consultant time.
  • Sequencing costs: Trades and suppliers schedule around permit timing. A slip can create a domino effect—missed windows, remobilization, or lost pricing.

Illustrative example (not a quote of any specific project): If a permit is delayed long enough to push a start date, the cost impact can exceed the fee itself—especially on multi-unit work where a single decision affects multiple buildings, inspections, and subcontractor schedules.

This is why DVBA’s approach is to connect the technical issue to the real-world consequence. A late fee isn’t just a line item; it can change the economics of whether a project moves forward.

 

4) How to evaluate the fee: authority, nexus, timing, and consistency

Once you have the fee documented, you can evaluate it without guessing. Here are four practical lenses that keep the discussion fact-based.


A) Authority: What adopted document actually authorizes the fee?

Ask whether the fee is:

  • In an adopted fee schedule (and whether that schedule is current).
  • Supported by an ordinance or resolution.
  • Administered by the correct agency.

If the answer is “it’s just our policy,” that’s a signal to request the adopted basis. Cities and agencies can have internal procedures, but fees generally need an adopted foundation.


B) Nexus and purpose: What is the fee paying for?

Without turning this into a legal brief, you can still ask a plain-language question:

  • What service, review, or infrastructure cost is this fee intended to cover?

If the fee is described as mitigating an impact, ask:

  • What impact, and how is it measured for this project type?

The point is not to argue theory. The point is to make sure the fee is connected to a real, defined purpose and applied proportionally.


C) Timing: Why is it being collected now?

A major source of friction is not only the amount, but the timing. If a fee is introduced late, ask:

  • Why wasn’t it identified earlier in the checklist?
  • What changed in the project description or review path?
  • Is the fee triggered by a milestone that has already passed?

If the fee is being collected earlier than necessary, that can create avoidable financing pressure. Even when a fee is ultimately due, collecting it at the wrong time can magnify the cost of capital and delay project movement.

 

D) Consistency: Is the fee being applied consistently across similar projects?

This is where documentation helps. Ask whether:

  • The project was classified correctly (use, occupancy, valuation method, unit count, etc.).
  • Similar projects have been charged the same way.
  • The fee is being applied uniformly across departments.

Inconsistent application is often a process problem, not a “bad actor” problem. But it still needs to be fixed, because inconsistency is how unpredictable costs become normalized.

 

5) How DVBA helps: fact-based issue framing and constructive agency engagement

DVBA serves the building and development industry across the Coachella Valley, Eastern Riverside County, Imperial County, and the Palo Verde Valley. A core part of that work is monitoring how fees and processes affect real project economics—and then translating that into constructive, local advocacy.

What that looks like in practice (without overstating outcomes):

  • Clarifying the issue: DVBA helps members frame the question in a way a city manager, finance director, or department head can actually evaluate—what is the fee, what authorizes it, what triggers it, and what the project impact is.
  • Separating facts from frustration: Late fees are aggravating. But the fastest path to resolution is usually a clean, documented record and a clear request.
  • Engaging early and locally: Many problems are easier to solve before they become a public blow-up. DVBA’s value is being present, understanding local processes, and engaging the right level of staff or decision-makers.
  • Protecting the broader ecosystem: When a fee or process issue is corrected, it often improves conditions for more than one project. That’s why association-level work matters—members gain leverage and expertise that would be costly to replicate individually.

Important note: DVBA is not a law firm and does not provide legal advice. The association’s role is industry representation, government affairs support, and practical, fact-based problem-solving.

 

6) A simple checklist you can use before you pay (or before you escalate)
If a late permit fee hits your desk, use this checklist to keep your response disciplined and effective.

  1. Get it in writing.
    Request the fee name, amount, and the adopted document that authorizes it.
  2. Identify the trigger point.
    Is it tied to plan check, issuance, inspection, or occupancy? Knowing the trigger tells you how urgent the decision is.
  1. Confirm the project classification.
    Ask how the agency categorized your project (use, valuation, square footage, number of units, change of use). Misclassification is a common cause of “surprise” fees.
  1. Ask what changed.
    If the fee wasn’t on earlier checklists, ask why it is appearing now. Sometimes the answer reveals a process gap that can be fixed.
  1. Document the schedule and cost impact.
    Keep it simple: “This fee was introduced at X stage; it may delay issuance by Y; the delay affects financing and scheduling.” Even if you don’t attach numbers, the consequence should be clear.
  1. Decide whether this is a one-project issue or a system issue.
    If it’s a one-off misunderstanding, it may be resolved quickly with the right documentation. If it’s a recurring workflow problem, it may be worth DVBA engagement so the fix benefits more than one member.
  1. Keep the tone professional.
    The most effective advocacy is usually calm, specific, and evidence-led. You can be direct without being theatrical.

 

Closing thought
Late-stage fee surprises are exactly the kind of issue that can quietly erode project feasibility across the desert communities we serve. The solution is not to assume every fee is wrong. The solution is to insist on clarity: what is the rule, what is the cost, what is the consequence, and what is the fair process.

If you’re dealing with a late permit fee or a process change that doesn’t pencil, DVBA wants to hear about it—because today’s “one project problem” can become tomorrow’s standard practice if nobody documents it and asks the right questions. 

When a Permitting Problem Becomes a Business Problem: How DVBA Helped a Local Contractor

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A permitting issue that looks small on paper can quickly become a major problem for a contractor.

For one Desert Valleys Builders Association member, a condominium re-roofing project in Palm Springs turned into exactly that kind of situation. What should have involved less than $10,000 in permitting costs was coming in at roughly four times that amount.

The issue wasn’t the roofing work itself. It was the way the permitting process was being applied to an unusual project involving more than 60 condominium units.

And it is a good example of an important part of what the Desert Valleys Builders Association does for its members behind the scenes.

A Straightforward Roofing Project Became Complicated
Roofing permits are normally relatively straightforward. A contractor obtains the necessary permit, removes the existing roof, installs the new roofing system, completes inspections, and closes out the project.

Condominium projects, however, can create additional complications.

A condominium development may have individual homeowners and individual addresses while multiple units share portions of the same roof. That can make a project difficult to fit into a permitting system designed around more conventional single-property projects.

In this case, the contractor was re-roofing more than 60 condominium units in Palm Springs.

At the same time, the city was using a newer digital permitting system.

The combination created an unintended problem.

When the Permitting Fees Started Adding Up
The DVBA member initially worked through the normal channels, speaking with people at the counter and department staff in an effort to resolve the issue.

But the problem remained.

Meanwhile, permitting costs continued to increase.

What the contractor expected to cost less than $10,000 in permit fees was coming in at approximately four times that amount.
For any contractor, an unexpected increase of that size can affect much more than a line item on an invoice. It can disrupt project budgets, timelines, customer expectations, staffing, and ultimately the contractor’s ability to complete the work as planned.

That’s when the contractor contacted DVBA.
The Problem Wasn’t Digital Permitting.

It’s important to distinguish between the technology and the process.

The Desert Valleys Builders Association supports local agencies moving toward digital permitting systems. When implemented effectively, digital permitting can help make the process faster, more efficient, and more cost-effective for contractors, property owners, and city staff.

In this situation, however, the process did not fit the particular type of project being permitted.

A system that may work well for many projects was producing an expensive unintended consequence when applied to this large condominium re-roofing project.

That distinction matters.

The goal wasn’t to oppose modernization or digital permitting. It was to identify a specific problem and find a practical solution.

Why Relationships With Local Agencies Matter
One of DVBA’s roles is maintaining productive working relationships with cities and agencies throughout the region.
We work with the people contractors encounter at permit counters. We communicate with department heads. When necessary, we can bring an issue to city management and explain what is happening from the industry’s perspective.

That is what happened in this case.

Rather than turning the situation into a public confrontation, DVBA worked with the appropriate city officials to explain the problem and look for a solution.

Within a matter of weeks, city staff re-evaluated the process and established a better way to handle this type of condominium roofing project.

The contractor could then get back to the work at hand.

Advocacy Doesn’t Always Look Like a Public Fight
When people hear the word “advocacy,” they may think about major legislation, development regulations, impact fees, housing policy, or public hearings.

Those issues are certainly part of DVBA’s work.

But effective industry advocacy can also happen much more quietly.

Sometimes a member encounters a regulation or process that isn’t working as intended. Sometimes a contractor needs help identifying the right person to speak with. Sometimes a new system creates a problem that nobody anticipated until a real-world project exposes it.

In those situations, having an association behind you can make a meaningful difference.

The goal isn’t unnecessary confrontation. It’s communication and problem-solving.

DVBA Represents More Than New Home Construction
The building industry in the Coachella and Imperial Valleys extends far beyond new residential and commercial development.
It includes roofers, remodelers, specialty contractors, skilled tradespeople, suppliers, service providers, and long-established local businesses.

Those companies employ thousands of people and help build, improve, repair, and maintain the communities where we live.
That’s one reason DVBA continues to explore ways to provide additional resources for these businesses, including opportunities available through our relationship with the National Association of Home Builders and the possibility of establishing a Remodelers Council.

The needs of a roofing contractor may be different from those of a homebuilder or commercial developer, but each is part of the larger building industry.

You Don’t Have to Navigate Every Challenge Alone
Some industry challenges require major policy changes.

Others require understanding a local process, identifying an unintended consequence, and knowing who to call to get the right people talking.

Both matter.

For this DVBA member, a permitting problem that threatened to dramatically increase the cost of a large roofing project was resolved through communication and established relationships with local officials.

That’s part of the value of belonging to an industry association.

The Desert Valleys Builders Association is here to support the people and businesses that build, improve, repair, and maintain our communities throughout the Coachella and Imperial Valleys.

If you’re a contractor, remodeler, builder, trade professional, or industry business looking for a stronger voice and additional support, learn more about becoming a member of the Desert Valleys Builders Association at DVBA.org.

DVBA Is Not an Events Organization That Does Advocacy. It Is an Industry Organization That Also Creates Events. Events are visible.

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Government affairs often are not.

That simple difference can create a misleading impression of what a building-industry association actually does.

DVBA hosts networking opportunities, educational programs, meetings and major events because relationships matter. Members benefit when builders, trades, suppliers, professional services, public officials and other industry participants have opportunities to know one another.

But those activities exist alongside a much broader mission.

DVBA’s published membership currently includes builders, engineers, banking organizations, utilities, subcontractors, legal services, consultants, architects, title companies, insurance professionals and many other industries connected to construction and development.

Representing that ecosystem requires work on issues that may never appear in an event photograph.

Government affairs is one example.

Development-fee analysis is another.

Legislative monitoring is another.

Communication with municipalities, agencies and utilities is another.

NAHB’s recognition of DVBA’s Legislative Forum illustrates this role particularly well. The program brings public agencies and industry stakeholders together on a recurring basis to exchange information about current issues, including fee studies and legislative activity.

NAHB has also recognized DVBA’s comprehensive fee-study reporting as a best-in-class member service among similarly sized home-builder associations.

These are not social activities.

They are substantive industry functions.

That does not diminish networking. It explains why networking is more valuable when it occurs inside an organization doing meaningful work on behalf of the industry.

A member is not simply buying a seat at a luncheon.

Membership supports an infrastructure of advocacy, information, relationships and regional representation that operates throughout the year.

Events are where much of the community sees DVBA.

The work between those events is where much of DVBA’s value is created.

You Can Enter a Market Quickly. Local Knowledge Takes Years.

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Technology has made information remarkably accessible.

Within minutes, someone can research a city, locate an ordinance, download an agenda or read a development report.

But information and institutional knowledge are not the same thing.

Local representation matters because building and development are inherently local.

Every community has its own history, priorities, infrastructure constraints, political environment, procedures and relationships.

The Coachella Valley alone contains multiple municipalities with different development environments. Imperial County presents another set of economic and infrastructure considerations, while the Palo Verde Valley has its own circumstances.

DVBA’s role spans these communities.

Its public mission is to represent building-industry professionals across the region and ensure that building remains vibrant and strong.

But representation requires more than geography on an organizational chart.

It requires presence.

DVBA’s monthly Legislative Forum is one practical example. According to NAHB, the forum maintains regular communication among representatives of local, county and state government, utilities, tribal government, transportation organizations and other agencies affecting housing and construction.

DVBA’s model-home sign program provides another. The association says it works with all nine Coachella Valley cities and throughout Imperial County to operate and maintain a coordinated directional-sign program for new-home communities.

These programs represent something larger than the programs themselves.

They create relationships.

They build knowledge.

And they create continuity.

When an issue arises, that continuity can matter enormously.

Knowing the ordinance tells you what the document says.

Knowing the people, the history and the regional context can help explain why it says it and how a workable solution might be reached.

That is the value of a genuinely local industry organization.

It is not that outsiders cannot understand the market.

It is that being present in the market every day creates a depth of understanding that cannot simply be announced into existence.

Development Fees Matter — But So Does How We Get There Growth is not free.

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New development requires roads, public safety infrastructure, utilities, facilities and other investments that allow communities to function.

The Desert Valleys Builders Association understands that.

The question is not whether legitimate costs exist.

The question is how those costs are calculated, allocated and implemented.

That distinction is central to DVBA’s government-affairs work.

When development fees increase, the consequences can extend beyond the line item appearing on a fee schedule. Costs can affect financing, project feasibility, carrying expenses and ultimately the economics of delivering housing or commercial development.

That is why the underlying methodology matters.

A publicly documented example occurred in Cathedral City in 2023. DVBA reported reviewing proposed changes involving land-use and regulatory fees as well as a development-impact fee study. DVBA contested aspects of the proposals and raised questions concerning how certain costs were allocated between new development and the existing community.

Whether one agrees with every position DVBA takes is not the larger point.

The important question is whether somebody is actually reading the studies, examining the assumptions and participating in the process on behalf of the building industry.

DVBA does that work.

In fact, the National Association of Home Builders recognized DVBA’s Tri Annual Comprehensive Fee Study Report with a 2023 Association Excellence Award for Best Service to Members among associations of its size.

That recognition illustrates an important difference between advocacy and opposition.

Responsible advocacy does not begin with a predetermined answer.

It begins with questions.

What is the purpose of the fee?

What service or improvement does it fund?

How was the amount calculated?

Who benefits from the improvement?

What portion is reasonably attributable to new development?

What does the applicable law require?

And what will the practical effect be on future projects?

When those questions produce a reasonable answer, the industry can understand the justification.

When they do not, somebody should be willing to ask more questions.

That is one of the responsibilities DVBA accepts on behalf of the regional building industry.

Good communities need functioning government and a healthy development industry. Effective policy should allow both to succeed.

What Real Building Industry Representation Looks Like Behind the Scenes

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When most people think about a builders association, they may picture networking events, luncheons, golf tournaments and opportunities to meet other professionals.

Those things are valuable. Relationships are an important part of any healthy industry.

But they are not the full story of what the Desert Valleys Builders Association does.

Some of DVBA’s most consequential work happens quietly: reviewing government actions, tracking legislation, examining development and permit fees, communicating with public agencies and maintaining relationships with the people whose decisions affect construction throughout our region.

That distinction matters.

A development project can be influenced long before the first piece of equipment reaches the site. Fees, permitting requirements, utility capacity, infrastructure, municipal policies and legislative changes can all affect feasibility, timing and cost.

That means effective building-industry representation must begin before a problem becomes a crisis.

DVBA’s Legislative Forum is one example. The National Association of Home Builders has recognized the program for bringing representatives from governmental agencies, municipalities, utilities, tribal government, transportation and other regional organizations together with industry stakeholders. The forum provides an ongoing exchange of information concerning issues including fee studies and legislative actions.

That kind of communication creates something difficult to manufacture overnight: institutional knowledge.

Knowing that a policy changed is useful.

Understanding why it changed, who is affected, what came before it and which organizations need to be involved in solving the problem is considerably more valuable.

This is also why DVBA approaches advocacy from a fact-based perspective.

There are occasions when the building industry should oppose a proposal. There are others when an increase or policy change may be justified. Responsible advocacy means understanding the difference.

The objective should not simply be to say “no.”

The objective should be to ask whether a policy is reasonable, supported, transparent and workable for the communities and industries it affects.

That work ultimately extends beyond builders themselves.

Construction supports an extensive ecosystem of contractors, trades, engineers, architects, financial institutions, suppliers, utilities, professional services and other businesses. DVBA’s current membership reflects that diversity.

That is why real representation is rarely defined by the most visible event of the year.

It is defined by who is doing the work throughout the rest of it.

That is the role DVBA intends to continue filling throughout the Coachella, Imperial and Palo Verde Valleys.