Indio approves 45-day moratorium on new gas stations

The number of gas stations in Indio increased from 17 in 2020 to now 31 gas stations, five of which have been approved but not built, and one that is pending approval.

The Indio City Council unanimously approved a 45-day emergency moratorium on new gas station applications to allow time for the city to study saturation and develop zoning standards.

The council voted 5-0 at its Dec. 3 meeting to introduce the ordinance, which pauses approval of new gas station projects while allowing six pending or approved applications to move forward.

The pause, which can be extended for another 10 months and 15 days, gives the city a chance to do more thorough research into existing geographic and demographic data to see where gas stations are concentrated and in what populations. It also gives city staff time to research possible updates to the zoning code by looking to other cities that have already limited gas stations.

Community Development Director Brian Halvorson said the moratorium would not affect existing gas stations seeking minor repairs, maintenance or interior improvements, but would prevent applications that intensify use by adding more pumps.

The moratorium comes after the number of gas stations in Indio increased from 17 in 2020 to now 31 gas stations, five of which have been approved but not built, and one that is pending approval.

Indio residents spoke in support of the moratorium, including Toni Merrihew, senior vice president and chief financial officer for Chandi Group USA, which owns several local gas stations.

While insisting that the company’s support of the moratorium was not related to limiting competition from rival gas stations, Merrihew said the growth in gas stations outpaces both the population growth in Indio and the demands of the market.

Merrihew also took issue with data presented to the Planning Commission in July that claimed the city was facing $18 million in unmet demand for gas stations. Economic Development Director Miguel Ramirez-Cornejo explained at the time the figure is based on data from Placer AI, which tracks consumer spending and locations through partnerships with more than 500 mobile apps.

“There’s something wrong with those numbers,” she said.

“Quite frankly, I’m not at liberty to discuss Mr. Chandi’s financials – or what those gas stations do – but I will be very surprised if that Walmart alone doesn’t produce $18 million in annual revenue,” referencing the Walmart gas station approved in August to be located on Avenue 42 – about a thousand feet away from another gas station.

Former Indio Planning Commissioner Jackie Lopez told the council that key corridors including Highway 111, Indio Boulevard, Jackson and Monroe need spacing standards or residential buffers.

“Just look at our key corridors: Highway 111, heavily saturated. Indio Boulevard, an aging infrastructure corridor with compatibility challenges.” Lopez said. “There are basic zoning tools used by cities across the state, and Indio should develop them before approving additional stations.”

The councilmembers were in agreement that the moratorium will help the city gather data, hear from more residents, and take their time before making a more permanent decision on gas stations.

City staff will return to the next City Council meeting on Dec. 17 with their findings, including information about commissioning a consultant to do deeper research into the issue.