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HomeMy WebLinkAbout2B - PresentationREVIEW OF HOTEL OPERATIONS COVENANT New Church II, LLC et. al. Palm Springs City Council April 23, 2025 Prepared by: Office of Economic Development New Church II, LLC; Arenas Belardo PS, LLC; Cahuilla Church, LLC Original Covenant Agreement approved in April of 2019 Amended and Restated Covenant Agreement (#8449) approved in January of 2020 Amendment No. 1 of the Amended and Restated Covenant Agreement September of 2022 Amendment No. 3 of the Amended and Restated Covenant Agreement in July of 2023 2845 Cahuilla Road & in exhibits PROJECT OVERVIEW NEW CONSTRUCTION PROJECT INCLUDES •New construction of 66 keys* •Renovation of Class I structures •8 historic bungalows •Historic 2-story church •Add’l 16 condos •Luxury brand •Underground parking •Underground back of house *Updated from staff report FINANCIAL SUMMARY •Amendment to original Covenant Agreement •Must provide documented evidence of the construction of a luxury brand hotel •Base of increment is $0, therefore all TOT generated will be considered increment shared 75% to developer •Reimbursed over 30 years or $50,000,000, whichever comes first; estimated sales tax generation of $26.5M* over same term *Updated from staff report