City: Nearly $18 million in unmet demand for gas stations despite community concerns

Indio has nearly $18 million in unmet consumer demand for gas stations despite ongoing community concerns about the proliferation of these businesses in disadvantaged neighborhoods and near schools, city economic data revealed Tuesday.

The city’s Economic Development Director Miguel Ramirez-Cornejo presented the findings to the Planning Commission, showing $17.93 million in unmet demand for gas stations within city boundaries based on data from Placer AI, which tracks consumer spending and locations through partnerships with more than 500 mobile apps.

The gas station demand represents part of a larger $1.18 billion gap between consumer demand and available retail supply across all sectors in Indio, meaning total consumer demand in the city reaches $2.5 billion while supply stands at $1.07 billion.

“Gas stations in Indio serve both local residents and a steady stream of commuters and travelers,” Ramirez-Cornejo said. “Annually, we have roughly 1.4 million people who come just to visit Indio.”

The data shows 88% of adults purchased gasoline in the last six months, with $110 million in annual consumer spending on gas station purchases already occurring in Indio. The city’s position with development on both sides of Interstate 10 makes it attractive for gas station businesses, Ramirez-Cornejo said.

However, Planning Commission members raised concerns about the locations where gas stations are being approved. Chairperson Christian Rodriguez Ceja questioned whether gas stations are being placed in disadvantaged communities and asked for data comparing Indio’s gas station density to neighboring cities.

“I think we need to go a little further,” Rodriguez Ceja said. “I would like for us to understand where gas stations are in relation to what the CalEnviroScreen is doing. Are we adding [gas stations] in disadvantaged communities?” CalEnviroScreen is a tool from the state’s Office of Environmental Health Hazard Assessment to track communities disproportionately affected by pollution

The presentation stems from a February decision where the Planning Commission initially denied a Maverick gas station application, though their decision was overruled and the station was eventually approved by the City Council. The council directed staff to study potential limitations on gas stations.

Commissioner Gloria Franz said the demand data was higher than expected but emphasized the need for managed growth. “I think we maybe, as a city, we can come up with a balance,” Franz said. “How can we provide this service, keep the sales and the tax dollars in Indio, but yet do it in a managed way so that we control it as much as possible.”

Rodriguez Ceja said he hoped the commission and city would examine the community and its needs beyond just the needs of the market.

“If we’re going to go out of our way to understand the market, we should go out of our way to also understand the community perspective,” he said. “And maybe reach out to environmental groups that are doing work around this topic, because it’s important to know that this is happening across the entire state.”

Ramirez-Cornejo clarified that his department does not actively recruit gas stations like it recruits other businesses, saying the market drives these businesses to apply for permits in Indio.

City staff said they will return with additional analysis on potentially limiting gas stations, including data on current locations, comparison to neighboring cities, and policy options for the commission’s consideration.

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