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HomeMy WebLinkAbout2A - PresentationREVIEW OF HOTEL OPERATIONS COVENANT PS Ventures I, LLC for The Dunes Hotel, Palm Springs Palm Springs City Council February 27, 2025 Prepared by: Office of Economic Development 1 127 Keys, structural, building envelope, new guest rooms, pool, pool deck and building systems $7,893,278 total in property improvements PS Ventures I, LLC 390 S. Indian Canyon PROJECT OVERVIEW 2 IMPROVEMENTS INCLUDE •Comprehensive structural updates •Installation of new plumbing •Enhanced IT experience •Property enclosure 3 IMPROVEMENTS INCLUDE •Guest room redesign •New flooring, lighting, bath, and fixtures •New case goods & soft goods •Pool and spa, gym •Exterior landscaping 4 FINANCIAL SUMMARY Aggregate project cost must total > $5,000/key of improvements Yara Hotel documented $7,893,278 (62,151$/key); meets base qualification for participation Base of TOT calculation $142,387; 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 $789,327 annually in increment; or $6,215/key/annum additional) 5