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HomeMy WebLinkAbout3/16/2016 - STAFF REPORTS - 1.B. ppPLMSp9 .y c 4 N cq�lFORN�P CITY COUNCIL STAFF REPORT DATE: March 16, 2016 PUBLIC HEARING SUBJECT: CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE CALIFORNIA GOVERNMENT CODE TO APPROVE A HOTEL OPERATIONS COVENANT BETWEEN THE CITY OF PALM SPRINGS AND PALM MOUNTAIN RESORT, LP, A CALIFORNIA LIMITED PARTNERSHIP, (PALM MOUNTAIN RESORT HOTEL) PURSUANT TO THE CITY'S HOTEL OPERATIONS INCENTIVE PROGRAM. FROM: David H. Ready, City Manager BY: Community & Economic Development SUMMARY As a condition of receiving the benefits of the City's Hotel Operations Incentive Program, an operator is required to execute and record an Operations Covenant on the property to ensure that the hotel will be operated and maintained continuously as a hotel consistent with the Hotels Operations Incentive Program. This action is to approve one such agreement. RECOMMENDATION: 1) Open the public hearing and receive public testimony 2) Approve a Hotel Operations Covenant Agreement with Palm Mountain Resort, LP located at 155 S. Belardo Road; 3) Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: The City Council adopted Chapter 5.26 of the Palm Springs Municipal Code in December 2007 (amended on May 15, 2013) to provide a Hotel Operations Incentive Program ("Program") for the operation and maintenance of hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. ITEM NO.�_ City Council Staff Report (March 16, 2016) -- Page 2 (Hotel Operations Covenant-Palm Mountain Resort Hotel—Public Hearing) Palm Mountain Resort, LP applied for the Program on January 27, 2014 and has provided satisfactory documentation certifying its recent renovation project as a qualified renovation under the Program. The Palm Mountain Resort Hotel is located at 155 S. Belardo Road and now consists of 142 total hotel rooms. There were 119 existing rooms before the renovations. The renovation project included the demolition of half of an existing restaurant, construction of 20 new guest rooms; and addition of a new lobby area, espresso bar, three offices, and meeting space. Three additional rooms, formerly used as offices, were released for guest use, bringing the total guest room count to 142. The renovation project also included all furniture, fixtures and equipment for the improved and new spaces. Consistent with the provisions of the Program, the Operator now agrees to place restrictions upon the use and operation of the hotel, in order to ensure that the Project shall be operated and maintained continuously as a hotel available for short-term rentals. The hotel operator also agrees to participate in the Palm Springs Convention Center's Committable Rooms Program and provide designated room-nights per month for official City use. City will share a percentage of Transient Occupancy Tax Increment with Owner pursuant to the Program guidelines. State Law Requirement In October, 2013, Section 53083 was added to the California Government Code. Section 53083 states that before granting an economic development subsidy, each local agency shall provide public notice and conduct a hearing regarding the economic development subsidy. "Economic development subsidy" under Section 53083 means any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits. Each local agency shall, before approving any economic development subsidy within its jurisdiction, provide all of the following information in written form available to the public, and through its Internet Web site, if applicable. For Palm Mountain Resort, LP, the information is as follows: 1. The business entity that is the beneficiary of the economic development subsidy: Pacific Hospitality Group, (Fred N. Grand, William H. McWethy, Jr.) 11250 El Camino Real, Suite 100, San Diego, CA 92130 2. The start and end dates and schedule, if applicable, for the economic development subsidy: The Operations Covenant starts on October 1, 2015 and ends September 30, 2025. The "start date" of the Operations Covenant is the date at which the renovation project is deemed fully completed and the calculation of the TOT increment commences. 02 City Council Staff Report (March 16, 2016) -- Page 3 (Hotel Operations Covenant-Palm Mountain Resort HotekPublic Hearing) 3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to the local agency as a result of the economic development subsidy: The subsidy is the rebate of 50% share of Transient Occupancy Tax (TOT) increment collected annually and calculated as follows: after the start date (10/1/2015) the subsidy is based on TOT collections for the year, subtracted from the established base; 50% of any increment is payable to Palm Mountain Resort, LP. Without the TOT incentive, the project would not have been done and there would be no shared TOT increment expenditure or revenue loss. 4. A statement of the public purposes for the economic development subsidy: The City has confirmed that Palm Mountain Resort, LP's, operation and maintenance of the hotel facilities improvements enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals. 5. Projected tax revenue to the local agency as a result of the economic development subsidy: The City keeps its "base' TOT, the average of the prior three years annual TOT collected. Even with a portion of the increment being shared with the applicant, the City conservatively still projects an average of $83,000 net annual increase in TOT revenue over the ten year period. 6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time and temporary positions: The Hotel increased employment by six (6) full time positions, one (1) part time position, and twenty (20) construction jobs during the remodel period. FISCAL IMPACT: An amount equal to 50% of transient occupancy tax increment derived from the Palm Mountain Resort Hotel, over the annual base amount, will be paid to the Operator for a ten year period. i A aian, Director Cathy Van Horn, Administrator Community & Economic Development Community & Economic Development David H. Ready, City r Attachments: Hotel Operations Covenant- Palm Mountain Resort Hotel Vicinity Map 03 FREE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: THE CITY OF PALM SPRINGS 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Attention: City Clerk (Space Above This Line for Recorder's Office Use Only) OPERATIONS COVENANT THIS OPERATIONS COVENANT AND DECLARATION OF COVENANTS AND RESTRICTIONS ("Agreement") is made and entered into this 1 st day of October, 2015, by and between the CITY OF PALM SPRINGS, a municipal corporation and charter city ("City"), and Palm Mountain Resort, LP, a limited partnership ("Owner"). RECITALS : A. The City of Palm Springs adopted Chapter 5.26 of its Municipal Code in December, 2007 to provide a Hotel Operations Incentive Program ("Program") for the operation and maintenance of Hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. B. On January 27, 2014 Owner applied for the Program and has provided satisfactory documentation certifying its recent renovation project as a qualified renovation program under the Program. Palm Mountain Resort ("Owner's Hotel" or "Project"), generally located at 155 S. Belardo Road, Palm Springs, California, consists of one hundred forty two (142) total hotel rooms on that certain real property located in the City of Palm Springs, County of Riverside, State of California, more particularly described in Exhibit "A" attached hereto and incorporated herein by reference (the "Site"). C. City and Owner now desire to place restrictions upon the use and operation of the Project, in order to ensure that the Project shall be operated continuously as a hotel available for short-term rental for the term of this Agreement. D. City and Owner also agree that in return for participation in the Program, Owner shall agree to operate the Project as a hotel; participate in the Palm Springs Convention Center's Committable Rooms Program; and provide City with a minimum of four (4) room-nights per month for official City use; and, City agrees to share a percentage of Transient Occupancy Tax Increment with Owner pursuant to the Program guidelines. E. The City finds that the approval of this Covenant is Categorically Exempt from CEQA under Section 15301 of the California Administrative Code as the Hotel Operations Incentive Program applicable to Owner's Hotel applies to the operation, repair, maintenance, or ry f 915229.03/OC OPERATIONS COVENANT V 3 70 9 7 1-00003'2-10-1 l idmeHry FOR HOTEL INCENTIVE PROGRAM minor alteration of existing structures, facilities, mechanical equipment involving no material expansion of use beyond that previously existing. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Participant hereby conveys to the Agency the Operating Covenants described herein and Agency hereby agrees to provide Participant with funds as provided under the Program and as set forth hereinafter. ARTICLE I STATEMENT OF OPERATING COVENANTS 1.1. OPERATION AND USE COVENANT. Owner covenants to operate, maintain, and use the Owner's Hotel in accordance with this Agreement. All uses conducted on the Site, including, without limitation, all activities undertaken by the Owner pursuant to this Agreement shall confonn to requirements of this Agreement and Palm Springs Municipal Code (PSMC). 1.2. HOTEL USE. The Owner hereby agrees that the Project is to be owned, managed, and operated as a comfort hotel (as defined by 5.36.020 of the PSMC) in a first-class manner, and the Project's participation in the Program shall continue in accordance with the terms of the Program, for a term equal to ten (10) years, commencing upon the date Owner first receives from the City the Owner's share of transient occupancy tax revenues pursuant to the Program unless and until Owner's participation in the Program is terminated prior thereto in accordance with this Agreement (the "Term"). 1. Housing Uses Prohibited. None of the rooms in the Project will at any time be utilized as a non-transient residential property including dormitory, fraternity or sorority house, rooming house, nursing home, hospital, sanitarium, or trailer court or park without the City's prior consent which consent may be given or withheld in its sole and absolute discretion. 2. Conversion of Project. No part of the Project will at any time be owned by a cooperative housing corporation, nor shall the Owner take any steps in connection with the conversion to such ownership or uses to condominiums, or to any other form of ownership, without the prior written approval of the City Council which approval may be given or withheld in its sole and absolute discretion. ARTICLE 2 WARRANTIES AND COVENANTS 2.1. WARRANTIES AND COVENANTS. For the Term of this Agreement, the Owner hereby represents, covenants, warrants and agrees as follows: 1. Owner has completed the City's application for the Hotel Operations Incentive Program. The City has determined the Transient Occupancy Tax Base to be used to calculate the Transient Occupancy Tax Increment shall be $382,201.00, and the Owner accepts such Transient Occupancy Tax Base. 915229.010C OPERATIONS COVENANT 05 370971-00003/2-I0-I Vdme Iry-5-2-13 cvh -2- FOR HOTEL INCENTIVE PROGRAM 2. Owner hereby agrees to subscribe to the Palm Springs Convention Center's Committable Rooms Program or any similar successor program as identified by the City Manager without being obligated to incur any additional costs or expenses. 3. Upon City's prior request, Owner shall provide the City at no cost four (4) rooms for one (1) night (or 2 room for 2 nights) other than Friday or Saturday nights each month for use for City purposes as approved or designated by the City Manager, provided that such use by the City shall be subject to the rooms being available at the time of the City's request. Such accommodations shall include all services and amenities for which the Owner would normally collect transient occupancy taxes but will not include services and amenities that are optional to the transient and for which the transient is not required to pay a transient occupancy taxes. City shall be responsible for any transient occupancy taxes for any occupancy provided to City under the provisions of this paragraph. Notwithstanding anything in this Agreement to the contrary, if the City does not use rooms during any month, then its right to use rooms with respect to that month shall expire at the end of that month and shall not accrue; provided, however, if the City was unable to use rooms solely because Owner's Hotel had no rooms available when the City requested a room in accordance with this Section 2.1.3, then, the City's right to use rooms shall not expire and may be used by the City in a subsequent month. ARTICLE 3 MAINTENANCE 3.1. MAINTENANCE. 1. Maintenance Obligation. Owner, for itself and its successors and assigns, hereby covenants and agrees to maintain and repair or cause to be maintained and repaired the Site and all related on-site improvements and landscaping thereon, including, without limitation, buildings, parking areas, lighting, signs and walls in a first class condition and repair, free of rubbish, debris and other hazards to persons using the same, and in accordance with all applicable laws, rules, ordinances and regulations of all federal, state, and local bodies and agencies having jurisdiction, at Owner's sole cost and expense. Such maintenance and repair shall include, but not be limited to, the following: (i) sweeping and trash removal; (ii) the care and replacement of all shrubbery, plantings, and other landscaping in a healthy condition; and (iii) the repair, replacement and restriping of asphalt or concrete paving using the same type of material originally installed, to the end that such paving at all times be kept in a level and smooth condition. In addition, Owner shall be required to maintain the Property in such a manner as to avoid the reasonable determination of a duly authorized official of the City that a public nuisance has been created by the absence of adequate maintenance such as to be detrimental to the public health, safety or general welfare or that such a condition of deterioration or disrepair causes appreciable harm or is materially detrimental to property or improvements within one thousand (1,000) feet of such portion of the Site. 2. Parking and Driveways. The driveways and traffic aisles on the Site shall be kept clear and unobstructed at all times. 915229.03'OC OPERATIONS COVENAN1 06 370971-00003 2-10-11 dme9ry-5-2-13 cvh -3- FOR HOTEL INCENTIVE PROGRAM 3. Right of Entry. In the event Owner fails to maintain the Site in the above- mentioned condition, and satisfactory progress is not made in correcting the condition within thirty (30) days from the date of written notice from City (such notice shall reasonably identify the required maintenance), City may, at City's option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter, either City or its employees, contractors, or agents, may cure Owner's default by entering upon the Site and performing the necessary landscaping and/or maintenance in accordance with Section 3.1.1 above. The City shall give Owner, its representative, or the residential manager reasonable notice of the time and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out this Agreement. Owner shall pay such costs as are reasonably incurred by City for such maintenance, including attorneys' fees and costs. 4. Lien. If any costs incurred by City under Section 3 above are not reimbursed within thirty (30) days after Owner's receipt of City's written request for reimbursement, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of the lower of ten percent (10%) per annum or the legal maximum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney's fees, shall be an obligation of Owner as well as a lien and charge, with power of sale, upon the property interests of Owner, and the rents, issues and profits of such property. City may bring an action at law against Owner obligated to pay any such sums or foreclose the lien against Owner's property interests. Any such lien may be enforced by sale by the City following recordation of a Notice of Default of Sale given in the manner and time required by law as in the case of a deed of trust; such sale to be conducted in accordance with the provisions of Section 2924, et seq., of the California Civil Code, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law. Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust covering an ownership interest or leasehold or subleasehold estate in and to any Site approved by City pursuant to the Agreement, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof; provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incurred subsequent to such foreclosure, assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject Site after the date of such foreclosure sale, shall become a lien upon such Site upon recordation of a Notice of Assessment or Notice of Claim of Lien as herein provided. 915229.03/0C 07 OPERATIONS COVENANT 3 709 7 1-0 0003'2A 0-1 rdmeary-5-2-13:evh -4- FOR HOTEL INCENTIVE PROGRAM ARTICLE 4 COMPLIANCE WITH LAWS 4.1. COMPLIANCE WITH LAWS. Owner shall comply with all ordinances, regulations and standards of the City and City applicable to the Site. Owner shall comply with all rules and regulations of any assessment district of the City with jurisdiction over the Site. ARTICLE 5 NONDISCRIMINATION 5.1. NONDISCRIMINATION. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, gender, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, or any part thereof, nor shall Owner, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of guests or vendees of the Site, or any part thereof. ARTICLE 6 COVENANTS TO RUN WITH THE LAND 6.1. COVENANTS TO RUN WITH THE LAND. Owner hereby subjects the Site to the covenants, reservations, and restrictions set forth in this Agreement. City and Owner hereby declare their express intent that all such covenants, reservations, and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Site; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions shall expire. All covenants without regard to technical classification or designation shall be binding for the benefit of the City, and such covenants shall run in favor of the City for the entire term of this Agreement, without regard to whether the City is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Site or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed or other instrument. City and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner's legal interest in the Site is rendered less valuable thereby. City and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Project by the intended beneficiaries of such covenants, reservations, and restrictions, and by furthering the public purposes for which the City was formed. 9152291)3.00 OPERATIONS COVENANT 370971-00003!2-10-11 dme'Iry-5-2-13ievh -5- FOR HOTEL INCENTIVE PROGRAM Owner, in exchange for the City entering into the Agreement, hereby agrees to hold, sell, and convey the Site subject to the terms of this Agreement. Owner also grants to the City the right and power to enforce the terms of this Agreement against the Owner and all persons having any right, title or interest in the Site or any part thereof while such party owns the Site. No party shall have any liability or obligation in connection with any breach occurring while such party is not the owner of the Site. Within fifteen (15) business days after request of Owner, City shall execute and provide to Owner an estoppel certificate, in the form approved by the City Attorney of the City, confirming whether or not Owner is in breach of any obligations under this Agreement and identifying any required cure. ARTICLE 7 INDEMNIFICATION 7.1. INDEMNIFICATION. Owner agrees for itself and its successors and assigns to indemnify, defend, and hold harmless City and its respective officers, members, officials, employees, agents, volunteers, and representatives from and against any loss, liability, claim, or judgment relating in any manner to the Project excepting only any such loss, liability, claim, or judgment arising out of the intentional wrongdoing or gross negligence of or its respective officers, officials, employees, members, agents, volunteers, or representatives. Owner, while in possession of the Site, and each successor or assign of Owner while in possession of the Site, shall remain fully obligated for the payment of property taxes and assessments in connection with the Site. The foregoing indemnification, defense, and hold harmless agreement shall only be applicable to and binding upon the party then owning the Site or applicable portion thereof. 7.2. ATTORNEYS' FEES. In the event that a party to this Agreement brings an action against the other party hereto by reason of the breach of any condition, covenant, representation or warranty in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable expert witness fees, and its reasonable attorney's fees and costs. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery. 7.3. AMENDMENTS. This Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside. 7.4. NOTICE. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto: 915229.03OC OPERA770NS COVENANT 09 370971-00003i2-10-1 Udmc/Iry-5-2-13'cvh -6- FOR HOTEL INCENTIVE PROGRAM City: City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Attn: City Manager Copy to: Woodruff, Spradlin & Smart, LLP 555 Anton Boulevard, Suite 1200 Costa Mesa, CA 92626 Attn: Douglas C. Holland, Esq. Owner: Palm Mountain Resort LP Pacific Hospitality Group 11250 El Camino Real, Suite 100 San Diego, CA 92130 Attn: Fred Grand, President The notice shall be deemed given three (3) business days after the date of mailing, or, if personally delivered, when received. 7.5. SEVERABILITY/WAIVER/INTEGRATION 1. Severability. If any provision of this Agreement or portion thereof, or the application to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of the provisions, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby; provided, that if any material terms or provisions of these Operating Covenants are rendered invalid, void and/or unenforceable, or due to changes in the law such terms or provisions would materially alter the terms of the transactions contemplated herein, the parties agree to meet and negotiate in good faith to attempt to reform these Operating Covenants to accomplish the intent of the parties. 2. Waiver. A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right. 3. Integration. This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement. 4. Third Parties. No third party beneficiaries are intended, and the only parties who are entitled to enforce the provisions of these Operating Covenants are the Agency, City, Mortgagees, Participant and their respective successors and assigns. 10 915229,03 OC OPERATIONS COVENAN'1 170971-00003 2-10-1 Ud=ky-5-2-13:cvh -7- FOR HOTEL INCENTIVE.PROGRAM 7.6. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 7.7. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall constitute one original and all of which shall be one and the same instrument. 7.8. TERMINATION. The City may terminate this Covenant by providing written notice to Owner that Owner has failed to comply with its obligations under Articles 1, 2, 3, 4 or 5 of this Agreement but only after the City has provided Owner with (a) written notice of default and (b) thirty(30) days to cure such default. Owner may elect to terminate its participation in the Program and this Covenant by providing written notice to the City if the City fails to deliver to Owner any amounts owed to Owner pursuant to the Program within thirty (30) days after Owner's written request for payment. In the event of any termination of this Covenant, Owner (or its successor, as applicable) shall not be obligated to return any amounts previously paid to it by the City pursuant to the Program. [END -- SIGNATURES ON NEXT PAGE] 11 915229.03,OC 370971-00003,2-10-11(dme/ID 5-2-13,cvh -8- OPERATIONS COVENANT FOR HOTEL INCENTIVE PROGRAM IN WITNESS WHEREOF, the City and Owner have executed this Operations Covenant by duly authorized representatives on the date first written hereinabove. "CITY" THE CITY OF PALM SPRINGS, a municipal corporation and charter city By: City Manager ATTEST: City Clerk APPROVED AS TO FORM: WOODRUFF, SPRADLIN & SMART By: Douglas C. Holland, Esq. City Attorney "OWNER" By: Name: Title: By: Name: Title: [END OF SIGNATURES] 12 915229.03'OC OPLRA'rIONS COVENANT 370971-000032-10-11'dmeary-5-2-13:cvh -9- FOR HOTEL INCENTIVE PROGRAM CALIFORNIA ALL-PURPOSEACKNOWLEDGMENT CIVIL CODE&1189 A notary public or other olhoer coiiipletmg this cetnficate aenhes only the dmtq of the mi dual who shed the 494AptRt to-hich this cem5cate is attached, and not the truthfulness,amracy, a vahkv ofthat doc s rent State of Cahfoaia On before me.. Date Here Insert Name and Title of the Officer perswaAS app_eaLeA Name(s) of Stoner(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is+are subscribed to the Within instrumtent and acknoaiedged to me that he"she;they executed the same in his her their authorized capaciry(te8),and that by his herthei signatures)on the instrument the person(s), or the entity upon behalf of which the person(s)acte& executed the instrument. cer ifv uttdr_,_PZZtV,'a OF PER7URY under the lass of the State of Cahfoma that the foregoing paragraph is true and correct. WITNESS my iland-4.AA official seal. Signature Signature of Notary Public Place Notary SealAbove OPTIONAL Though this section is optional.complebnq this information can deteralteration of the document or f?Ad q&af reattachment of this form to an unintended document_ Description of Attached Document Title or ,T)4p__ef Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: f aDacittyUes)Claimed by Sioner(sl SiPea_s Yams: Si 's `tamg: ❑Corporate Officer—Title(s). ❑Corporate Officer—Title(s): ❑Partner— ❑Limited ❑General ❑Partner— ❑ Limited ❑General ❑ Individutal ❑At_tpvw3r_¢t Fact ❑Individual ❑Attorney in Fact ❑Trustee ❑Guardian or Conservator ❑Trustee ❑ Guardian or Conservator ❑Other: ❑ Other: Representing: " pgp..,s,,Representing: 9201A3N46onvl Notary Association-uux:tiationaiNotaty.ore � 1-800-USNOTARY (1-800 3;6-6%2) Itemt`590' 7 - 0C' OPERATIONS COVENANT 13 3 709710971.0000007.2-10-I Ldmeilry-5-2-13-,vh -10- FOR HOTEL INCENTIVE.PROGRAM EXHIBIT "A" LEGAL DESCRIPTION OF SITE That certain real property located in the City of Palm Springs, County of Riverside, State of California, more particularly described as: LEGAL DESCRIPTION PARCEL A k: APN 13 7-092-,10&31 PARCEL-S I AND 3, IN I HE COUNTY OF SAN DIL6(__), STATE OF CALIFORNIA, AS DE-SCRIBED IN THAT CLR I AIN CER FIFICATEOF COMPLIANCE RECORDED DECEMBER 23, 1993 AS INSTRUMENT NK). AL-46961- OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDEROF SAID COUNTY. EXCEPT THEREFROM THOSE PORTIONS DESCRIBED IN THE QUITCLAIM DEED TO THE,, VISIA IRRIGATION DISTRICT' RECORDED JULY 14, 2014 AS F(LE, No. Z0)4-O2_1N469, OFFICIAL RECORDS, PARCFL A2; APN 137-090-39 1410SE PORTIONS OF TFIF RANCHO SAN JOSE DEI, VALLE, IN THE COUNTY OF SAN DIEGO, STATE 01; CALIFORNIA, AS PER PATENT RECORDED IT13KIJARY 20, 1980 IN BOOK 2 PAGE 73 OF PATENTS, RECORDS Or SAN DJLGO COUNTY, AS DESCRIBED IN _IHF QUITCLAIM DEED FROM I'1(F VISTA IRRIGATION DISTRICI RI'.C_ORDc,D JULY 14, 2014 AS FILE NO, 2014-0290470,OFFICIAL RECORDS. PARCELB: AN EASEMENT OVER A PORTION OF PARCEL 2, IN THE(,',O(,)N]'Y OF SAN DIEGO, STAI E OF CALIFORNIA, AS DESCRIBED THEREIN IN THAT CERTAIN C17K FIFICATE OF COMPLIANCE RLCORDEt) DECEMBER 23, I983 AS INSTRUMEN] NO, OF OFFICIAL RECORDS FOR I HE PURPOSE OF MAINTENANCE INSPIRATION POINT AND ITS LOOP ROAD AND ITS ACCESS ROAD AND GATE, INCLUDING TRASH REMOVAL, PERIODIC REPAVIN(i AND SEALING AND BRUSH CLEARANCE FOR FIRE SAFETY IN PERPETUITY, AS GRANTED rN THE AGREEMENT FOR RF'CIPK0CAL EASEMENT' RLCORDFI) MARCH 2$, 2006 AS INS IRUNIENT NO. 2006-02 11921 OF OFFICIAL RECORDS. PARCH,C, AN EASEMENT FOR WATER STORAGE AND TRANSMISSION' OVER AND ACROSS PORTIONS OF PARCEL 4, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS DESCRIBED THEREIN IN IIIAT CERTAIN CERTIFICATE OF COMPLIANCE RECORDED DECEMBER 23, 1983 AS INSTRUMENT NO. 83.469611 OF OFFICIAL RECORDS, As MORE FULLY SET FORTH AND DESCRIBED IN THE DEED RECORDED DECEMBER 28, 1983 AS FILE NO. 83473226,OFFICIAL RECORDS, EXHIBIT"A" OPERATIONS COVENANT 915229.03,0( FOR HOTEL INCENTIVE PROGRAM 370971-0(003,2-10-11 dme iry LJ- P� E'w�' ill L6 _•cam ' '��.t' •.*.. al a) ;Ll�lllt-�-•• � Q O `° 0 10, F • IF � • • r ins e� . CITY OF PALM SPRINGS NOTIFICATION OF APPEAL Date: March 16, 2016 Subject: Hotel Incentive Program — Palm Mountain Resort, LP AFFIDAVIT OF PUBLICATION I, Cynthia A. Berardi, Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was published in the Desert Sun on March 5, 2016. 1 declare under penalty of perjury that the foregoing is true and correct. f Cynthia A. Berardi, CMC Deputy City Clerk AFFIDAVIT OF POSTING I, Cynthia A. Berardi, Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on March 3, 2016. 1 declare under penalty of perjury that the foregoing is true and correct. Cynthia A. Berardi, CMC Deputy City Clerk �� I NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS HOTEL INCENTIVE PROGRAM PALM MOUNTAIN RESORT, LP 155 SOUTH BELARDO ROAD NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its meeting of March 16, 2016. The City Council meeting begins at 6:00 p.m., in the Council Chamber at City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs. The purpose of this hearing is to consider approving a Hotel Operations Covenant with Palm Mountain Resort, LP, at 155 South Belardo Road in accordance with Chapter 5.26 of the Palm Springs Municipal Code to provide a Hotel Operations Incentive Program for the operation and maintenance of hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor facilities and experiences, and assist the City in achieving its tourism goals. The owner applied for the Hotel Operations Incentive Program on January 27, 2014, and started construction on August 18, 2014. The project included demolition of an existing building and reconstruction of 20 new guest rooms, a new lobby, offices, and espresso bar. Construction was completed and the hotel opened the new guest rooms and lobby on September 18, 2015, thereby complying with the provisions of Chapter 5.26 of the Municipal Code. City and Owner now desire to place restrictions upon the use and operation of the Hotel for a 10 year period, and a 50% share of the increase in transient occupancy tax (TOT) collected. REVIEW OF INFORMATION: The staff report and other supporting documents regarding this matter are available for public review at the City Hall between the hours of 8:00 a.m. and 6:00 p.m., Monday through Thursday. Please contact the Office of the City Clerk at (760) 323-8204 if you would like to schedule an appointment to review these documents. At the hearing any person may present oral or written testimony. The City Council will consider all objections or protests, if any, for approval of the Agreement. Response to this notice can be made verbally at the Public Hearing and/or in writing before the hearing. Written comments can be made to the City Council by letter(for mail or hand delivery) to: James Thompson, City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge in court of the proposal may be limited to raising only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior, to the public hearing. (Government Code Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to Lauri Aylaian at (760) 323-8228. Si necesita ayuda con esta carta, porfavor Ilame a la Ciudad de Palm Springs y puede hablar con Felipe Primera telefono (760) 323-8253. ames Thompson, City Clerk v 17 Q 0. v� s W r y • • • _ q MI 3 07 IMP r ' z ,y rjy. t ,mow c L k k f v i I t c x �a 't �y V d 5 'i .F !(7 s I H UOTIUAoua-d aJoJag — aDuUxlurl Uds urn t�ttrl i i a 1 x ce�y, 3 pA ;mil dY N {r Ae 4 UOn73Aoua-H aLIJ JaI3V — a:)uUxIurj Iaosa-a pll i ti; Alt 1' 4 7 rvt , l{ uouunoua-U ajojag — a:)uujaua juujnpjs;)U PTO Opp- r 41 vW N a Zi + t M l' d , f >It uorJP,noua-Nd QLLL J;)IJV — aauUJIuH JaosaU maN All if 4 a � J I � 0 m uoTjuAoua-d ajojoq — avg aoT.TaiuI 'rIM j t 4 lit fi. .s fk 3 � pk ' A a { � t' y + � �r ✓ k'Nlm. �f )" • �✓" /�✓�1/ j/y f rr r. , x r2` ^q f Ii I}}I I inn I � t r I t,z d 6 e,t h fi t-� IZI r M e � e , . . e , � � � � � ` ' ■ 2 ^ °: ` \ � � \ �/��\� /\ �> \ ��} �\�� \ ��\ ` /��«�\� 2 � / \}\\ ? <��} \ <��\ y2 � m«�»�����\� © xv » �y» » :» .:m«,�����: s +m�d � ��\ \ © \ ��\ . a. � � � y . < . : . . . � ��< : � : < « � ? \ , � � . . < �\ . �\ � � � . � � y� � \ \ ^ : � � � } � � \ � < �w< �< . � � . � � , . . : � � w � � :� 2 � � .�� ©. . < \ ���/ . «. . \ �y= . � �\ � � �� � � \\\ > �� . . � «� : .���» � , . ��z - ��� . . . ■ � ■ , . , , � , @ e . rNt . w\ \ ƒ swc ` cd v � s uOl M O 9' F mass" Q0,4 x V`^ L f } r_ r 6 � 3 y � • Ft F F ,i x 4F .14 �F I kl uop73nouaN ajo3ag — ua.TV juuanujsa-d pip �1 �1 Allr All � � j ow uorJF,AouaU aul, JaI3V — TUUoo-U �?UTJX)W maw I/II1jt/Iu1// 'It�I1t�� onll 1 __ .� �U e x xme 77, 3 A� tl Y -A� • f 1 { f fr a� u "Rowe; 1N ilk m , a ` 3-I cn a f aim ■., 1 � r ZZ J � h � ' W s � v a N�p a 1 .i, i ac UODUAOU;)N ;)14j JaI3V — oT113d jTd QJTJ maw aw t a . aN V J I N uoUUAouaU a.To3ag — iood 2uRuuUTmS Ifinfimolf 'tl�,t� . 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Y'" x ! / I 7 7 gg .w L•� S�s _ • _ � � _ UOTIUAOUQU QLJJ JaI3V — UaJV jooCJ Ap / rr low IF "g - 1 n , t � � "� {• � Yam,� . .N` 7 :�,' `. .. f J f � .. - r � tYt' k � � X O /41 4-4 e 1 t cr�yy a--I 0 C� 0 U s J 'rr NNNN V a S 7 C uouUnoua2I Z)LIJ JaI3V — suorJ73poulu OZ)OV m;)N t�mmml// .ter UOTIUAOUQU 3-LI1, JQjJV - SUOTIEPOLULUODOV maw H ~ ir i J I {{ AL y N .47 wCWbt a y4 S ddS 9 .1- NOS3U ir • fat j The Desert Sun 750 N Gene Autry Trail Certificate of Publication Palm Springs, CA 92262 RECEIVED 760-77844578/Fax 760-778-4731 CITY �O�FpPALM SPRINGS State of California ss: 9M'nRn-9 AN St 45 County of Riverside LAMES THOMPSO" CITY CLERK Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 92263 Order# 0001100405 1 am over the age of 18 years old, a citizen of the United States and not a party to,or have interest in this matter.I hereby certify that the attached advertisement appeared in said newspaper(set in type not smaller than non pariel)in each and entire issue of said !'90�1IR11�1 newspaper and not in any supplement thereof No 0337 On the following dates,to wit: NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS HOTEL INCENTIVE PROGRAM.PALM MOUNTAIN RESORT,LP 155 SOUTH BELARDO ROAD Newspaper: The Desert Sun NOTICE IS,HEREBY GIVEN that the City Council of the City of Palm Sprinys, California,will hold a public hearing at Its meeting of March 6,2016 Tithe Gty- Council meeting begins at 6:00 p.m.,in the Council Chamber at City Hall,320 E.Tahquitz Canyon Way,Palm Springs 3/5/2016 The purpose of this hearing is to consider approving a Hotel Operations COQe- nant with Palm Mountain Resort,LP,at 155 South Belardo Road In accordance ,with Chapter 5.26 of the Palm Springs Municipal Code to provide a Hotel Oper- atons Incentive Program for the operation and maintenance of hotel heal ties that enhance the tourist andtravel experience for visitors to the City,:maximize the use of the cKys Convention Center,provide attractive and desirable visitor facilities and experiences,and assist the Chinn achieving its tourism goals. - I acknowledge that I am a principal clerk of the The owner applied far the Hotel operation incentive Program on January 27, 2014,and started construction on August 18,2014. The project Included demo- printer of The Desert Sun, printed and rtion of an existing building and.reconstruction of 20 new guest rooms,,a new published weekly in the City of Palm Springs, lobby, offices,an espresso bar. Construction was completed and the hotel o ened the new guest rooms and lobby on September 18,2015,thereby com- County Of Riverside, State Of California. The plying with the provisions of Chapter 5.26 of the Municipal Code. City and Owner now desire to place restrictions upon the use and operation of the Hotel Desert Sun was adjudicated a Newspaper of for a 10 year period,and a 50%share of the increase in transient occupancy tax 1 (TOT)collecte - REVIEW ;OF INFORMATION: The staff report and-other sirpporting docu- general circulation On March 24, 1966 by the ments regarding this.matter are available for public review at the City Hall be- Superior Court Of the County Of Riverside, Mean the Tours of B:DD a.m.and 6:00 p.m.,Monday through Thursday.Please contact the Office of the City Clerk at(760)323-82D4 if you would like to sched- State of California Case No, 191236. ule an appointmentto reviewthese documents. At the.hearing any person may present aral or written testlmorry-The City Council will consider all objections or protests,if any,for approval of ffie Agree- ment. Response to this notice can be madeverbally at the Public Hearingg and/or in writing before the hearing.Written comments can be made to the Clty Council by letter(for mail or hand delivery)to; James Thompson,City Clerk 3200 E.Tahgditz Canyon Way,Palm Springs,CA 92262 - 1 declare under penalty Of perjury that the Any challenge in court of the proposal may be limited to raising ally those Is- sues raised at the public hearing described in this notice, or in written Lorre- foregoing Is true and correct- Executed on spondence. 'delivered'm the C' Clerk at,.or prior to,the public Tearing. this 6th day o RICH, 2016 in Palm (Gw parnntCtyodell be given a(said. 9(G odd ortuni will be'given at said heeding for all interested parson to be hear Questions regarding this case may be directed to Lauri Aylaian at(760) Springs, Califo a. 323-822e: ' Si necesita ayuda can esta carts,porfavor Ilame a la Ciudad de Palm Springs y fluede hablar con Felipe Prlmera telefono(760)323-8253. ames Thompson,Csry Clerk. Published:3/5116 Declarant 1�