HomeMy WebLinkAboutA3198 - AGUA CALIENTE DEVELOPMENT AUTHORITY - TOTfi a
RESOLUTION NO.26-03
TRIBAL GOUT' L .
CM" "am n WHEREAS, the Agua Callente Band of Cahullia Indians (the "Tribe') Is a federally-
wmawr m Nm wry recognized Indian Tribe governing Itself according to a Constitution and By -Laws
MMEMMMM MMAM I °"` M and exercising sovereign authority over the lands of the Agua Callente Indian
mom lmfi m 01 GoiK" MOM mom" Reservation; and
WHEREAS, even though the Tribe has no legal obligation to do so, the Tribe
wishes to assist and support the efforts of the City of Palm Springs to promote
tourism and tourist- related facilities in general on the Ague Callente Indian
Reservation, regarding the Spa Resort and Casino In particular; and
WHEREAS, the funds which the Tribe wishes to devote to such support of tourism
will be derived from the operations of the Spa Resort; and
WHEREAS, In order to provide additional convenient parking, including valet
parking, for the Spa Resort & Casino, the Tribe has approached the City of Palm
Springs and has tentatively agreed on advantageous terms for the Tribe's use of
the parcel of land owned by the Palm Springs Redevelopment Agency known as
the Prairie Schooner parcels, consisting of approximately 5.7 usable acres, subject
to the approval of the Tribal Council;
NOW THEREFORE BE IT RESOLVED by the Tribal Council of the Agua Callente
Band of Cahuille Indians that:
1. Subject to the conditions described below, for a period of twenty years,
beginning on July 1, 2003 and ending on June 30, 2023, the Tribe will make
a voluntary annual contribution of $700,000.00, to be paid monthly, to the
City of Palm Springs for the sole and express purpose of promoting tourism
and tourist -related facilities in general within the City of Palm Springs, and
the Spa Resort and Casino in particular as a destination; and
2. The above voluntary contribution will be subject to the following conditions:
a. The City of Palm Springs must provide advance written assurance that
all funds so provided to it will be used only for the purposes described
above, and will permit representatives of the Tribe to verify that the said
funds are in fact so expanded; such verification need not be by formal
audit, but may be by informal means satisfactory to the Tribe;
b. During the first halves of the years 2009, 2014 and 2019 representatives
of the Tribe and the City of Palm Springs will meet in person to discuss
any modifications to the amount so contributed by the Tribe; and
60D E. TAHQUITZ CANYON WAY • PALM SPRINGS. CA 99962 • (760) 3956400 • .FtM. (760) 325-0593
Page No; 2
Resolutlon No: 26-03
3. ,Subject to the approval of appropriate documents for this purpose by the Tribal Council, the
Tribe will lease the Prairie Schooner -parcels from the Palm Springs Redevelopment
Agency for a nominal amount per year for a term of 20 years. During the period of this
lease either the City of Palm Springs or the Palm Springs Redevelopment Agency will pay
to the Tribe the Tribe's actual costs of construction and other Improvements needed to use
the Prairie Schooner parcels for parking. These costs are estimated to be $2,000,00% to
be amortized by payments of approximately $200,000 per year for each of the first 10 years
of the term of this lease. Such lease, and any other needed entitlements from elther the
City of Palm Springs or the Palm springs Redevelopment Agency, will call for a' level of
landscaping for the Prairie Schooner parcels which Is not so extensive or Intensive as
called for by the City's ordinances, but which Instead concentrates on the exterior perimeter
of the Prairie Schooner parcels rather than their Interiors, and still produces a satisfactory
landscaping effect, while also allowing for approximately 600 parking spaces,
4. Except for 200 of the above 600 spaces which will be reserved for the exclusive use of
parking for the Spa Resort and Casino, the remaining approximately 400 parking spaces to
be located on the Prairie Schooner parcels will be open for the use of the general public.
5. All improvements so constructed on the Prairie Schooner parcels will remain on the leased
property at the end of the lease term. However, the lease will also provide that the Tribe
will have a right of first refusal for the sale or lease of the Prairie Schooner parcels at the
expiration of the lease term.
Dated: June 24, 2003
Zi.h.,,d .ilanovich, Tribal Chairman
CERTIFICATION
I, the undersigned, the Secretary of the Agua Caliente Band of Cahuilla Indians, hereby certify
that the Tribal Council is composed of five members of whom 3, constituting a quorum, were
present at a meeting whereof, duly called, and noticed, convened and held this 20 day of June,
2003; that the foregoing resolution was duly adopted at such meeting by a vote with an affirmative
roll call vote of 3-M members and that said resolution has not been rescinded or amended In any
way.
c
Moralnb J. Patel-clo ecretary Treasurer
Agua Caliente
Development
Authority
A Subsldfary, of Agua Caliente
Rand of CabulBa Indians
901 East Tabquitz Way
Suite C-104
Palm Springs, CA 92262
(619) 325-2279
Fax (619) 325 0963
lk
June 9, 1993
Mr. Rob Parkins
City Manager
City of Palm Springs
Community Redevelopment Agency
300 Tahquitz Canyon
Palm Springs, CA 92262
RE: TOT Agreement
Dear Mr. Parkins:
We are herewith submitting seven signed copies of the TOT
agreement for signature from the City of Palm Springs and
the Redevelopment Agency.
While we have signed the agreement, we wish to clarify
our understanding of paragraph "F" (page 3) and paragraph
3 (page 4) referring to the portion of the TOT pledged to
the Valley CVB.
We have agreed to the 1.4% being deducted from the total
and 50% of the balance or 4.7% being rebated. However,
we want it understood that in the event the City of Palm
Springs changes the level of commitment, the Tribe will
have the right to approve the new percentage and that in
the event the City of Palm Springs elects to withdraw
from the Valley CVB, the deduction will no longer be
operative.
With the execution of this agreement, we wi' be
expecting to receive the rebated tax plus intere-- ier
the terms of the agreement forthwith.
Sincerely,
--__ -Fred R. Razzar
Executive Director
Agua Caliente Development Authority
FRR/pm
Encs.
cc: Tribal Council
ACDA Board
Art Bunce
Agua Caliente Dev Authorit.,
Remittance of Transient
Occupancy Taxes - Spa Hotel
AGREEMENT #3198 A313
M05151, 3-17-93 R879
AGREEMENT REGARDING COLLECTION
AND REMITTANCE OF
TRANSIENT OCCUPANCY TAXES
This Agreement Regarding Collection and Remittance of
Transient Occupancy Taxes ("Agreement") is entered into this I
day of � , 1993, by and between the City of Palm
Springs ("City"), Community Redevelopment Agency of the City of
Palm Springs ("Agency") and the Agua Caliente Development Authority
("ACDA"). This Agreement is entered into in consideration of all
of the following:
R E C I T A L S:
A. Agency is a community redevelopment agency duly formed
and existing pursuant to the provisions of the California Community
Development Law, California Health and Safety Code Sections 33000
et sec., and exercising all powers incident thereto within the
boundaries of the City of Palm Springs.
B. ACDA is an arm of the Tribal government of the Agua
Caliente Band of Cahuilla Indians ("Tribe") duly formed and created
by Ordinance No. 11 of the Tribal Council. ACDA was created to
manage and operate certain real estate holdings of the Tribe, and
enjoys all sovereign immunities of the Tribe.
C. Among the real estate holdings falling within the
jurisdiction of the ACDA is the Spa Hotel, a hotel located on
unallocated tribal land, providing transient occupancy at specified
rental rates. The Spa Hotel was formerly operated by a private
entity, but that entity has defaulted on its lease obligations.
ACDA has now assumed responsibility for the operation of the hotel.
D. Under the City's Municipal Code, the City has imposed a
series of transient occupancy taxes on transient hotel occupancies
within City boundaries. These taxes appear at Chapter 3.24 of the
Municipal Code. The taxes are in the amount of 10.8% of the amount
of the rent charged for the transient occupancy, and is charged
against all non --exempt transients. Under the taxes, the hotel
operator bears the responsibility for collecting the tax and
remitting all amounts collected to the City.
E. Under authority granted by California Revenue and
Taxation Code 7280.5, the Agency is considering the imposition of
a transient occupancy tax on transient hotel occupancies within
redevelopment area boundaries, for hotels operating on tribal land.
A proposed copy of this ordinance is attached as Exhibit "A"
hereto. This tax is in the amount of 10.8% of the amount of rent
charged for the transient occupancy and is charged against all non-
exempt transients. Under the tax, the hotel operator will bear the
responsibility for collecting the tax and remitting all amounts
collected to the Agency. Under the proposed ordinance, any amounts
paid to the Agency will be credited against the transient occupancy
tax amounts which would otherwise be paid over to the City.
PS211591014084.000112029589.5 03/19/93 - 2 -
F. In connection with the transient occupancy taxes which
the City currently collects, and any transient occupancy tax to be
collected by the Agency, some 1.4% is currently paid over to the
Palm Springs Desert Resorts Convention and Visitors Bureau ("CVB").
The CVB is a joint powers agency formed by a number of cities in
the Coachella Valley, whose purpose is to promote tourism in the
region.
G. ACDA has contested the right of the Agency, the City, or
any local governmental body to require it to collect transient
occupancy taxes on behalf of such bodies, and remit same, based
upon the sovereign immunity of the Tribe. City and Agency have
disputed this claim. Notwithstanding this dispute, ACDA has
indicated its willingness to enter into an agreement whereby ACDA
will collect transient occupancy taxes on behalf of the City and
the Agency, with reimbursement by the City or Agency of one-half of
all amounts so collected. City and Agency have agreed to enter
into such an arrangement for a defined period, in order to settle
a legitimate controversy regarding the collectability of these
transient occupancy taxes.
NOW, THEREFORE, IN CONSIDERATION OF ALL OF THE FOREGOING, THE
PARTIES DO HEREBY AGREE AS FOLLOWS:
1. Recitals. The foregoing recitals are true and correct.
FS211591014084-0M112029589.5 03/18/91 " 3
2. ACDA Collection of Transient Occupancy Tax. ACDA agrees,
on behalf of itself and any agent, assignee, contractor, or other
operator ("ACDA operator") of the Spa Hotel that it will collect
and remit to the City or the Agency, all transient occupancy taxes
currently levied under the Municipal Code, or as may be levied by
the Agency pursuant to the ordinance attached as Exhibit "A"
hereto, according to all procedures for such collection and
remittance set forth in Chapter 3.24 of the Palm Springs Municipal
Code. In connection with such collection and remittance, ACDA and
any ACDA operator shall keep accurate records of all transient
occupancies in such hotels, and shall submit monthly reports and
remittances of same pursuant to Section 3.24.080 of the Municipal
Code.
3. City/Agency Reimbursement. Upon receipt of the reports
and remittances of transient occupancy taxes collected by ACDA or
the ACDA operator, as set forth in paragraph 2 above, City or
Agency, depending on which entity is levying the tax pursuant to
paragraph 2 above, shall promptly, and in no event within more than
thirty days after receipt, reimburse ACDA in the amount of one-half
(1/2) of all amounts so collected and remitted, after deduction
from the amounts so collected and remitted any amounts paid to the
CVB (currently 1.4 percent). Any amounts owing from the City or
Agency to the Tribe under this reimbursement which have not been
paid within thirty (30) days upon receipt of remittance by the ACDA
or ACDA operator shall be subject to a late charge of one percent
(1%) per month, for all amounts remaining unpaid after such thirty
FS211591014084-000112029589.5 03l18/43 - 4 -
(30) days. The provisions of this paragraph shall apply only so
long as the Spa Hotel is operated by the ACDA or an ACDA operator.
4. Term. This Agreement shall be effective for a period of
ten (10) years from January 1, 1993. After such ten year period,
this Agreement shall be of no further force and effect, unless
extended by way of written agreement signed by the parties.
5. Binding on Successors. This Agreement shall be binding
on the successors in interest, if any, of all parties. The rights
and obligations under this Agreement shall not be assigned by
either party without the express written consent of the other,
which consent shall not be unreasonably withheld.
6. Notices. Any notice, consent, report, document, or other
communication shall be given in writing and personally delivered to
an authorized agent of the applicable party, or upon delivery by
the United States Postal Service, first class, registered, or
certified mail, postage prepaid, or by overnight courier, such as
Federal Express, at the time of delivery shown upon receipt; in any
case, delivered to the address, addresses, and persons as each
party may from time to time designate to the other, and who
initially are:
City: City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Attention: Dallas Flicek
PS211591014094-000112029589.5 03/18/93 - 5
Agency: Community Redevelopment Agency
of City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Attention: Dallas Flicek
Copy to: Rutan & Tucker
611 Anton Boulevard, Suite 1400
Costa Mesa, CA 92626
Attention: David J. Aleshire, Esq.
ACDA: Agua Caliente Development Authority
P.O. Box 2444
Palm Springs, CA 92263
Tribe: Tribal Council
960 E. Tahquitz Way, Ste. 106
Palm Springs, CA 92262
Copy to: Art Bunce, Esq.
P.O. Box 1416
Escondido, CA 92033
7. Modifications. Any alteration, change or modification of
or to this Agreement, in order to become effective, shall be made
by written instrument or endorsement thereon and in each such
instance executed on behalf of each party hereto.
S. Integration. This Agreement contains the entire
understanding between the parties relating to the transactions
contemplated hereby. All prior or contemporaneous understandings,
representations and statements, oral or written, related thereto
are merged herein and shall be of no further force or effect.
9. Corporate Authority. The persons executing this
Agreement on behalf of the party for whom the signature appears
hereto warrant that (i) the party is duly organized and existing,
(ii) they are duly authorized to execute and deliver this Agreement
FS2115%014084-000112029589.5 03/18/93 - 6 -
on behalf of such party, (iii) by so executing this Agreement, such
party is formally bound to the provision of this Agreement, and
(iv) the entering into this Agreement does not violate any
provision of any other agreement to which said party is bound.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date set forth above.
ATTEST:
see y JUDITH SUMICH
CITY CLERK
ATTEST:
qs�� t
O-Nd Secre ry
APPROVED AS TO FORM
Qy,Aftanoy
FS211591014084-0001r20M89.5 03119/93
CITY OF PALM SPRINGS
By:
.L dL.4�
May
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
By: a."
Ch it an
AGUA CALI N E DEVELOPMENT UTHORITY
By
Its
-7-
f1-313�
ORDINANCE No. 1438
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ADDING SECTION 3.24.038 TO THE
PALM SPRINGS MUNICIPAL CODE, PROVIDING FOR
CREDIT FOR THE PAYMENT OF TRANSIENT OCCUPANCY
TAXES TO THE COMMUNITY REDEVELOPMENT AGENCY
AGAINST TRANSIENT OCCUPANCY TAXES OTHERWISE
OWING UNDER CHAPTER 3.24 OF THE MUNICIPAL
CODE, AND ADDING SECTION 3.24.295 TO THE PALM
SPRINGS MUNICIPAL CODE, AUTHORIZING
AGREEMENTS FOR A CREDIT OF TRANSIENT
OCCUPANCY TAXES PAID BY CERTAIN INDIAN OWNERS
AND OPERATORS OF HOTELS SUBJECT TO SUCH TAXES
WHEREAS, pursuant to authority granted by State law, the City of
Palm Springs imposes a series of transient occupancy taxes on
transient occupancy of hotels within City limits; and
WHEREAS, pursuant to authority granted by California Revenue and
Taxation Code Section 7280.5, the Community Redevelopment Agency
of the City of Palm Springs is considering adoption of an
ordinance under which the Community Redevelopment Agency would
impose a transient occupancy tax on transient occupancies
occurring in hotels which are located within the Canyon
Redevelopment Project Area; and
WHEREAS, under California Revenue and Taxation Code Section
7280.5, such a transient occupancy tax by a community
redevelopment agency is effective only if the city's underlying
transient occupancy tax ordinance provides a mechanism for
crediting the amounts of transient occupancy tax paid pursuant to
the redevelopment agency tax against transient occupancy tax
amount otherwise owing under the eity's ordinance; and
WHEREAS, the City Council wishes to amend the Municipal Code to
provide for such a credit, and to allow inclusion within the
Municipal Code of the provisions of any transient occupancy tax
which may be imposed by the Community Redevelopment Agency, to
provide ready access to the terms of any such ordinance for all
persons reviewing and operating under Chapter 3.24 of the
Municipal Code; and
WHEREAS, certain hotels within the City of Palm Springs are owned
and operated by the Agua Caliente Band of Cahuilla Indians, which
under federal law enjoys certain sovereign immunities regarding
local regulation and taxation; and
WHEREAS, both the City of Palm Springs and the Tribe will benefit
from the ability to enter a cooperative agreement regarding
collection and remission of transient occupancy taxes.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES
ORDAIN AS FOLLOWS;
SECTION 1. Chapter 3.24 of the Palm Springs Municipal Code
relating to transient occupancy tax is hereby amended by adding
thereto a new section to be numbered 3.24.038, and reading as
follows.
v 3 ,.24.Qag Credit for Payments of Tax Imposed By
_oq Cg_mr&pity Redeveloment Agency.
),-A. -
,r (a) Pursuant to Section 7280.5 of the California
11' Revenue and Taxation Code, a community redevelopment
!:� _ agency is authorized to levy a transient occupancy tax �17
for its purposes if such transient occupancy taxes are
by ordinance credited against the city's transient
occupancy taxes. Any person subject to the transient
occupancy tax under this section is entitled to credit
the amount of transient occupancy taxes due to the
Community Redevelopment Agency of the City of Palm
Springs pursuant to Revenue and Taxation Code Section
72BO.5 against the payment of taxes otherwise due under
this Chapter. Upon, the effective date of an ordinance
passed by the Community Redevelopment Agency of the
City of Palm Springs, the amount of any tax due
pursuant to said ordinance by any transient occupying a
hotel subject to such ordinance, and collected and
remitted to the Community Redevelopment Agency of the
City of Palm Springs, levying a transient occupancy tax
pursuant to Part 1.7 of Division 2 of the Revenue and
Taxation Code, shall be credited against any transient
occupancy tax otherwise due by the transient under
Sections 3.24.030, 3.24.035, and 3.24.036.
(b) In the event that the Community Redevelopment
Agency of the City of Palm Springs adopts an ordinance
pursuant to Revenue and Taxation Code Section 7280.5
imposing a transient occupancy tax, such ordinance
shall be codified in the Palm Springs Municipal Code as
Section 3.24.039, to provide ready access to such
ordinance for all persons reviewing Chapter 3.24 of the
Palm Springs Municipal Code.
SECTION 2. Chapter 3.24 of the Palm Springs Municipal Code
relating to 'transient Occupancy Tax is hereby amended by adding
thereto a new section to be numbered 3.24.295, and reading as
follows:
The City is empowered to enter into an agreement
with the Aqua Caliente Band of Cahuilla Indians,
whereby a portion of the transient occupancy taxes
collected from transients whose taxable occupancy
occurs in a hotel owned and operated by such Tribe,
will be rebated to the Tribe to facilitate development
or rehabilitation of such hotels. Such agreements may
include the Community Redevelopment Agency as a party
if the Community Redevelopment Agency adopts an
ordinance pursuant to Revenue and Taxation Code Section
7280.5.
SECTION 3. EFFECTIVE DATE. This Ordinance shall be in full
force and effect thirty (30) days after passage.
SECTION 4. PUBLICATION. The City Clerk is hereby ordered and
directed to certify to the passage of this Ordinance, and to
cause the same or a summary thereof or a display advertisement,
duly prepared according to be published in accordance with law.
ADOPTED this 7th day of April , 1993.
AYES: Members Hodges, Lyons, Reller-Sprugin, Schlendorf and Mayor Maryanov
NOES: None
ABSENT: None
ATTEST:
By i ty C l e-rc
REVIEWED & APPROVED Ax; ' ...
.. j
WY OF PALM SPRINGS, CALIFORNIA
mayor
I HEREBY CERTIFY THAT THE foregoing Ordinance 1438 was duly
adopted by the City Council of the City of Palm Springs,
California, in a meeting held on the ith day of April, 1993,
and that same was duly published in the DESERT SUN, a newspaper
of general circulation on April 12, 1993.
JUDITH SUMICH
City Clerk