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HomeMy WebLinkAbout2A PresentationReview of Hotel Operations Covenant Sonora Group, LLC for Yara Hotel, Palm Springs Palm Springs City Council February 13, 2025 Prepared by: Office of Economic Development Item 2A - Page 1 Overview N 10 Keys, pool and amenities Total $857,122.64 in property improvements Sonora Group, LLC 211 E Sonora Road Historic facts Item 2A - Page 2 Improvements include •Updates to three buildings •New flooring, walls, baths •Guestroom FF&E •Guest room electronic key Item 2A - Page 3 Improvements include •New clubhouse updates •Bathrooms updated, tile and light fixtures •Updated kitchen with updated applicants, cabinets and finishes Item 2A - Page 4 Improvements include •Exterior improvements •Pool area new FF&E •Landscaping updates with irrigation •All new exterior lighting and entry Item 2A - Page 5 Financial summary Fiscal Summary Aggregate project cost must total > $5,000/key of improvements Yara Hotel documented $857,122.64 of reimbursable expenses ($85,712/key) Base of TOT calculation $102,481; increment above that amount is split 50/50 with owner Reimbursed over 10 years or total of project costs, whichever is reached first (to achieve total, must earn $171,424 annually in increment; or $17,142/key/annum additional) Item 2A - Page 6