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