HomeMy WebLinkAboutItem 3EFrom:James Hansen
To:City Clerk
Subject:Written Comments for the 7-24-23 City Council Meeting
Date:Monday, July 24, 2023 2:53:27 PM
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Madam Mayor and Councilmembers,
Thank you for the opportunity to address Agenda Item E – Amendments to the
Hotel Operations Incentive Program. I am one of the owners of three small
hotels in the City of Palm Springs: Santiago Resort, Descanso Resort and the
newly re-opened Twin Palms Resort on Camino Real. After several years of
sitting abandoned and becoming a neighborhood eye-sore, our group purchased
and restored the Twin Palms Resort. We’re proud to say the restored property
has now become a neighborhood asset and is once again generating TOT
income for the City.
In the past three years, we’ve invested millions of dollars in building
renovations, furniture and equipment, safety improvements, landscaping,
marketing and operations costs. One of the very significant factors that led us
to invest this capital is the Hotel Operations Incentive program which allows
business owners to share with the City the newly derived TOT income
generated by the renovation. This program is a “win-win” for both the City and
for business owners.
The proposed amendment carves out a small group from the Program and limits
their incentive payments. This carved out group includes properties that have
been long shuttered or are required to close in order to complete renovations.
These are the very properties the City has the highest interest in seeing
renovated. The Twin Palms Resort is a good example. After several years of
decline, the property was closed in 2018 and languished becoming an eye sore
and a public safety hazard. Today it is a beautifully restored property
welcoming guests from around the world to Palm Springs. And it is generating
significant TOT income for the City.
The effect of the proposed amendment will be to disincentivize investment in
these properties. It will leave underperforming hotels as is and in some cases,
leave shuttered properties to sit becoming eye-sores and public safety
07/24/2023
Public Comment
Item 3E
problems.
I ask you to please reconsider the proposed amendment carving out closed
properties and limiting their incentive. Keeping the full incentive in place will
do exactly what it is intended to do – turn closed and under performing
properties into tax generating properties.
Thank you.
07/24/2023
Public Comment
Item 3E