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C,4</FO0.N�P CITY COUNCIL STAFF REPORT
DATE: September 3, 2014 PUBLIC HEARING
SUBJECT: CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE
CALIFORNIA GOVERNMENT CODE TO APPROVE TWO HOTEL
OPERATIONS COVENANT AGREEMENTS BETWEEN THE CITY OF
PALM SPRINGS AND PB CONSTRUCTION SERVICES, A CALIFORNIA
LIMITED LIABILITY CORPORATION, (SKYLARK HOTEL) AND AEK
CAPITAL MANAGEMENT, A CALIFORNIA LIMITED LIABILITY
CORPORATION (THE PALM SPRINGS 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 two such
agreements.
RECOMMENDATION:
1) Open the public hearing and receive public testimony
2) Approve a Hotel Operations Covenant Agreement with PB Construction Services,
LLC (Skylark Hotel) located at 1466 North Palm Canyon Drive;
3) Approve a Hotel Operations Covenant Agreement with AEK Capital Management,
LLC (The Palm Springs Hotel) located at 2135 North Palm Canyon Drive,
4) 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 Conventions Q�
ITEM NO. �—
City Council Staff Report
(September 3, 2014) -- Page 2
(Hotel Operations Covenant—Public Hearing)
Center, provide attractive and desirable visitor serving facilities and experiences, and
assist the City in achieving its tourism goals.
PB Construction Services, LLC (Skylark Hotel) has applied for the Program and has
provided satisfactory documentation certifying its recent renovation project as a qualified
renovation under the Program. The Skylark Hotel is located at 1466 North Palm Canyon
Drive and consists of twenty nine (29) total hotel rooms.
AEK Capital Management, LLC (The Palm Springs Hotel) has applied for the Program
and has provided satisfactory documentation certifying its recent renovation project as a
qualified renovation under the Program. The Palm Springs Hotel is located at 2135 North
Palm Canyon Drive and consists of fifteen (15) total hotel rooms.
Consistent with the provisions of the Program, the two Operators now agree to place
restrictions upon the use and operation of the hotels, in order to ensure that the Project
shall be operated and maintained continuously as a hotel available for short-term rentals.
The two hotel operators also agreed in the Covenants to participate in the Palm Springs
Convention Center's Committable Rooms Program and each 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.
Changes in State Law
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 PB Construction Services, LLC (Skylark Hotel), the information is as follows:
1. The business entity that is the beneficiary of the economic development subsidy: PB
Construction Services, LLC, 35 Mitchell Blvd., Unit 14, San Rafael, CA 94901.
2. The start and end dates and schedule, if applicable, for the economic development
subsidy: The Operations Covenant Starts on March 1, 2014 and ends February 28,
2024. 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
(September 3, 2014) -- Page 3
(Hotel Operations Covenant-Public 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 calculated as
follows: after the start date (3/1/14) the subsidy is based on TOT collections for the
year, subtracted from the established base; 50% of any increment is payable to PB
Construction Services, LLC.
4. A statement of the public purposes for the economic development subsidy: The City
has confirmed that PB Construction Services, LLC, 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 $17,603 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, and a number of construction jobs during
the remodel period.
For AEK Capital Management, LLC (The Palm Springs Hotel), the information is as follows:
1. The business entity that is the beneficiary of the economic development subsidy:
AEK Capital Management, LLC, 13207 Weddington Street, Sherman Oaks, CA
91401.
2. The start and end dates and schedule, if applicable, for the economic development
subsidy: The Operations Covenant Starts on October 1 , 2014 and ends September
30, 2024. 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.
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 calculated as
follows: after the start date (1011114) the subsidy is based on TOT collections for
the year, subtracted from the established base; 50% of any increment is payable to
AEK Capital Management, LLC.
4. A statement of the public purposes for the economic development subsidy: The City
has confirmed that AEK Capital Management, LLC, operation and maintenance of
the Hotel facilities improvements, enhances the tourist and travel experience for 03
City Council Staff Report
(September 3, 2014) -- Page 4
(Hotel Operations Covenant—Public Hearing)
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 $16,650 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 2 full-time and 2 part-time positions, and 50 jobs were created during
the construction period.
FISCAL IMPACT:
An amount equal to 50% of transient occupancy tax increment derived from the Skylark
Hotel, and The Palm Springs Hotel, over the annual base amount, will be paid to each
Operator for a ten year period.
(ohn Ra nd, irector Cathy Van It rn, Administrator
mm ity onomic DQ=Lploment Community & Economic Development
David H. Ready, City Manager
Attachments:
Hotel Operations Covenant Agreement
PB Construction Services, LLC (Skylark Hotel)
AEK Capital Management, LLC (The Palm Springs Hotel)
04
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&Office Use Only)
OPERATIONS COVENANT
THIS OPERATIONS COVENANT AND DECLARATION OF COVENANTS AND
RESTRICTIONS ("Agreement") is made and entered into this 1st day of March 2014, by and
between the CITY OF PALM SPRINGS, a municipal corporation and charter city ("City"), and
PB Construction Services, a California Limited Liability Corporation ("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. Owner has applied for the Program and has provided satisfactory documentation
certifying its recent renovation project as a qualified renovation program under the Program.
Skylark Hotel ("Owner's Hotel" or "Project"), generally located at 1466 North Palm Canyon
Drive, Palm Springs, California, consists of Twenty Nine (29) 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 two (2) 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
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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 1
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 conform to requirements of this Agreement and Palm Springs Municipal Code.
1.2. HOTEL USE. The Owner hereby agrees that the Project is to be owned,
managed, and operated as a hotel 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"),
I. 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:
I. 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 $34,654.95, and the
Owner accepts such Transient Occupancy Tax Base.
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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 two (2)
rooms for one (1) night(or I 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 Motel 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; (h) 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.
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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.
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ARTICLE 4
COMPLIANCE WITH LAWS
ordinances all h
4.1. COMPLIANCE WITH LAWS. Owner shall comply with a ,
regulations and standards of the Cityand City applicable to the Site. Owner shall comply with
y pp
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.
915119.0310C OPERATIONS COVENANT
370971-00003/2-10-I I/dme/lry-5-3-13/cvh FOR HOTEL INCENTIVE PROGRAM 09
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:
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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: PB Construction Services, LLC
35 Mitchell Blvd., Unit 14
San Rafael, CA 94901
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. Inte:,ration. 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.
7.6. GOVERNING LAW. This Agreement shall be governed by the laws of the State
of California.
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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.
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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 chatter city
By:
David H. Ready, Esq., Ph.D.
City Manager
ATTEST:
James Thompson
City Clerk
APPROVED AS TO FORM:
WOODRUFF, SPRADLIN & SMART
By:
Douglas C. Holland, Esq.
City Attorney
"OWNER"
PB Construction Services, LLC
By:
Name,
Title:
By:
Name:
Title:
[END OF SIGNATURES]
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ACKNOWLEDGMENT
State of California )
County of >
On before me,
(insert name of notary)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
ACKNOWLEDGMENT
State of California )
County of )
On before me,
(Insert name of notary)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
915229.0/OC OPERA'I IONS COVENANT
3]09]I-00003/2-10-11/dIr&4-5-2-13/cvh FOR HOTEL I\CENTIVE PROGRAM 14
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:
APN 505-184-006-5
Lot(s) 6,7,30 and 31 of Palm Springs Estates NO.3, As Sown by Map on file in Book 17 Page(s)
34, of Maps, Records of Riverside County, California
Except the right to any deposit of oil, gas or other hydrocarbon substances underlying said land,
as reserved by California"Trust Company, in deed recorded January 14, 1932 in Book 64 page 76
of Official Records as to Lot 31 as reserved by California Trust Company in deed recorded
March 29, 1931 in Book 71 page 115 of Official records as to Lot 30 and as reserved by Security
First National Bank of Los Angeles in Deed Recorded August 29, 1935 in Book 245 page 319 of
Official Records, as to Lots 6 and 7
EXHIBIT„A" OPERATION'S COVENAK'1'
915229 0YOC FOR I IO'1'EL INCEN'I I VE PROGRAM
170971-OW03,2_I O_I ihhnc/hy -1- 15
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'Ili fs Lone Inr Recorder's Office Use Only)
OPERATIONS COVENANT
THIS OPERATIONS COVENANT AND DECLARATION OF COVENANTS AND
RESTRICTIONS ("Agreement") is made and entered into this 1st day of October 2014, by and
between the CITY OF PALM SPRINGS, a municipal corporation and charter city ("City"), and
AEK Capital Management, a California Limited Corporation ("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. Owner has applied for the Program and has provided satisfactory documentation
certifying its recent renovation project as a qualified renovation program under the Program.
The Palm Springs Hotel ("Owner's Hotel" or "Project"), generally located at 2135 North Palm
Canyon Drive, Palm Springs, California, consists of Fifteen (15) 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 two (2) 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
91 i2290310C OPERATIONS COVENANT
370971-00003/2-10-1 Vdnsgiy FOR HOT EL INCEN'I IVE PROGRAM 16
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 l
STATEMENT OF OPERATING COVENANTS
I.I. 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 conform to requirements of this Agreement and Palm Springs Municipal Code,
1.2. HOTEL USE. The Owner hereby agrees that the Project is to be owned,
managed, and operated as a hotel 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:
I. 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 $2,283.58, and the
Owner accepts such Transient Occupancy Tax Base.
915229,03/OC OPERATIONS COVENANT
370971-000032-I0-I I/dine/Iry-5-2-13kvh '2- FOR HOTEL INCENTIVE PROGRAM 7
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 two (2)
rooms for one (1) night (or 1 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 COVENANT
370971-00003/2-10-11/dnie/h,5-2-13/cvh -3- FOR HOTEL INCENTIVE PROGRAM 18
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
maxinwm 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 OPERATIONS COVEVANT
370991-000032-10-II/dme/1ry.5-2-13/cvh -4- FOR 1101 EL INCEN HIVE PROGRAM 19
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.
915229.03/OC OPERA 'I ONS COVENANT
37D971-OD003/2-10-11/dinehry-5-3-13/cvh -5- FOR HOTEL INC FNTI VF PROGR AN I 20
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:
915229.03/OC OPERATIONS COVENANT
370971-00001/2.10-I I/dmc/Iry-5-2-U/cvL -6- FOR HOTEL INCEN9'IVE PROGRAM 21
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: AEK Capital Management
13207 Weddington Street
Sherman Oaks, CA 91401
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
I. 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.
7.6. GOVERNING LAW. This Agreement shall be governed by the laws of the State
of California.
91532903/0C OPERATIONS COVENANT
370971-0000312-10-11/dine/I,-52-13/cvh -7- FOR IIOTEL INCEN'I IVE PROGRAM 22
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]
9152190310C OPERATIONS COVENANT
370971-00003/2-10-II/d,mWky-5-2-13/c,h -8' FOR 110'1 EL INCENTIVE PROGRAM 23
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: AEK Capital Management, LLC
13207 Weddington Street
Sherman Oaks, CA 91401
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.
7.6. GOVERNING LAW. This Agreement shall be governed by the laws of the State
of California.
24
915229.03/OC OPERATIONS COVENAN'1
370971-000032-10-1IldnieA,-5-2-IYcvh -7- FOR HOTEL INCENTIVE PROGRAM
ACKNOWLEDGMENT
State of California )
County of )
On before me,
(Insert name of notary)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
ACKNOWLEDGMENT
State of California )
County of )
On before me,
(insert name of notary)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
915229.0310C OPERATIONS COVENAN 1
3]09]I-00003/3-10-II/dnlc/try-5-2-134rh -to- FOR 110'1EL INCENTIVE PROGRAM 25
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:
APN: 504-242-001-2
Address: 2135 North Palm Canyon Drive
Pahn Springs, CA 92262
Legal Description:
Lots I, 2, 3, and 4 and all that portion of Lot 5 of Palm Springs Village Tract, as shown by map
on file in Book 19, Page 3 of Maps, in the Office of the County Recorder of said county,
described as follows:
Beginning at the Southeasterly corner of said Lot; thence Northwesterly along the Easterly line
of said Lot, 5 feet thence Westerly and parallel with the Southerly line of said Lot, 128.25 feet
more or less, to the point on the Westerly line of said Lot; thence southerly along the Westerly
line of said Lot, 5 feet to the Southwesterly corner of said Lot thence Easterly along the
Southerly line of said Lot, 128.55 feet to the true point of beginning.
EXHIBIT"A" OPERA'I IONS COVENANT
915 2 29 01/OC I`OR HOTEL INCENTIVE PROGRAM
170971-00003/2-10-I I/dmc/I y -I"
CITY OF PALM SPRINGS
PUBLIC HEARING NOTIFICATION
Date: September 3, 2014
Subject: Hotel Operations Covenant Agreements
AFFIDAVIT OF PUBLICATION
I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby
certify that the attached Public Hearing Notice was published in the Desert Sun on
August 23, 2014.
1 declare under penalty of perjury that the foregoing is true and correct.
Kathie Hart, MMC
Chief Deputy City Clerk
AFFIDAVIT OF POSTING
I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby
certify that the attached Public Hearing Notice 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 August 21, 2014.
1 declare under penalty of perjury that the foregoing is true and correct.
�
Kathie Hart, MMC
Chief Deputy City Clerk
AFFIDAVIT OF MAILING
1, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby
certify that a copy of the attached Notice of Public Hearing was mailed to each and every
person on the attached list on August 21, 2014, in a sealed envelope, with postage prepaid,
and depositing same in the U.S. Mail at Palm Springs, California. (6 notices)
I declare under penalty of perjury that the foregoing is true and correct.
ILA
Kathie Hart, MMC
Chief Deputy City Clerk
27
The Desert Sun Certificate of Publication
750 N Gene Autry Trail
Palm Springs, CA 92262 r r-I y
760-778-4578/Fax 760-778-4731 '-�` R A L N .;
1014 AUG 26 AM 8: 01
State Of California ss: JAI ` � [Hui :t' .. ;
County of Riverside CITY CLERK
Advertiser:
CITY OF PALM SPRINGS/LEGALS
PO BOX 2743
PALM SPRINGS CA 922632
2000457634
1 am over the age of 18 years old, a citizen of the United No 1370
States and not a party I0, Of have interest In this matter. I
NOTICE OCITY F PUBLIC HEARING
Cm PALM CITY BR
hereby certify that the attached advertisement appeared
in said newspaper (set in type not smaller than non panel) HOTEL OPEERATIONS COVENANT
VENO�
in each and entire Issue Of Said newspaper and not in any ECONOMIC DEVELOPMENT SUBSIDY.
supplement thereof on the following dales,to wit: NOTICE 19 HEREBY GIVEN that the CIIv
CWld nCll7of the City m Palm 5pmgs,California,will
Newspaper: .The Desert Sun 3.22014.nhThe C ty renal mmeel n-g 6eoins atm8e00r
77 m.,m the Council Chamber at cart lTel
Tshguitz Canyon Way,Palm Springs.
The arp(o(m of Iles hearing is m consider aApppmw
9/23/2014 ments wkh Hotel CCCnstructio oSen�(Skylark HHoo-
tel at 1466 North,Palm Canwn Drive)antl AEK
North lPalmreCenyon(Palm
Dare) in rings Hotel
Chapter 526 of the Palen Span9a Municipal Code
to provide a Hotel Operetions Incentive Program
for the operation and maintenance of hdel feclli-
tes that enhance the tourist and travel experismai
for visitors to the C'dy, maximize the use of tla
City's Convention Center;provide attractive and
acknowledge that I am a principal clerk of the printer of deekable visitor facilities and experiences,and as,the City in achieving its tounsm goals.
The Desert Sun, printed and published weekly in the City REVIEW OF INFORMATION: The staff re-
of Palm Springs, County of Riverside, State of California. port and other sup
panir9 documents regarding
th'rs matter are available for public review at CCirtyy
The Desert Sun was adjudicated a newspaper of general Hell between the hours of 8:00 a.m. entl 6:00
circulation on March 24, 1988 by the Superior Court of the m. Monda throu h Thursday Planes contact
Pisa tMfioe o yhe C�w Clerk at(760)323-8204
County of Riverside, Stale of California Case No. you would like m echedue an aMmment to re-
191236. New these documents.
COMMENTS: Atthebearingarry person may
present oral or written testimony.The C'ny .TZ
will consider all op'actions or protests, g ary,m
I declare under penalty of perjury that the foregoing is true me Agreerrhems. Rea�lmae to this notce may ho
made vebalty at me ut is Hearing arlNw in wm-
and Correct. Executed on this 23rd day of August, 2014 in ing before ne hearing.Written comments may be
made to the City Council by later(for mall or hand
delivery)m.
Palm Springs,Calif ia.
James Thompson City Cleric
_ 3200 E.TainqSprings,
CA 22 Way
Palm Springs,CA 92262
Arty challenge of the Imposed in court maY be
tinted to mairg any Iham Issues raised at the
public hearing d6wribbe i this be�or in Clerk written
en
prior, or
the ppublic hearing. (Govemment Code
50ttwn 65009fb)(2)).
Declare s Signature An opportunity will be gwen at mid hearing for all
interested persona to be heard.Questions regard-
in this case may be directed to John Raymond at
f7V 323-8228,
Si retests ayuda con esta Carla,porlavor Ilame a
Is Ciudad de Palm Spargss 9q ppuetla heeler can
Nadine Fieger telefono(7W)323-8245. .
James Thompson,Cry Clerk
Published:8123114
NOTICE OF PUBLIC HEARING
CITY COUNCIL
CITY OF PALM SPRINGS
HOTEL OPERATIONS COVENANT AGREEMENTS
APPROVAL OF ECONOMIC DEVELOPMENT SUBSIDY
NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs,
California, will hold a public hearing at its meeting of September 3, 2014. 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 two (2) Hotel Operations Covenant
Agreements with PB Construction Services (Skylark Hotel at 1466 North Palm Canyon
Drive) and AEK Capital Management (Palm Springs Hotel at 2135 North Palm Canyon
Drive) 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.
REVIEW OF INFORMATION: The staff report and other supporting documents
regarding this matter are available for public review at 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.
COMMENTS: At the hearing any person may present oral or written testimony. The
City Council will consider all objections or protests, if any, to the Agreements.
Response to this notice may be made verbally at the Public Hearing and/or in writing
before the hearing. Written comments may 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 of the proposed in court 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 John Raymond at (760) 323-8228.
Si necesita ayuda con esta carta, porfavor Ilame a la Ciudad de Palm Springs y puede
hablar con Nadine Fieger telefono (760) 323-8245.
II/Imes Thompson, City Clerk
28
- MR PETE MORUZZI
ri.
PALM SPRINGS MODERN COMMITTEE
_ P.O. BOX 4738
°- PALM SPRINGS, CA 92263-4738
�1uk21 O?h
CITY OF PALM SPRINGS CASE 5.1344 ZTA
PLANNING SERVICES DEPARTMENT MRS.JOANNE BRUGGEMANS
_' � • t - - _. ATTN SECRETARY/5.1344 ZTA 506 W. SANTA CATALINA ROAD
PO BOX 2743 PALM SPRINGS, CA 92262
PALM SPRINGS, CA 92263-2743
MS PATRICIA GARCIA
MS MARGARET PARK, DIRECTOR TRIBAL HISTORIC PRESERVATION
AGUA CALIENTE BAND OF CAHUILLA OFFICER
INDIANS AGUA CALIENTE BAND OF CAHUILLA
PLANNING& DEVELOPMENT DEPT. INDIANS
5401 DINAH SHORE DRIVE 5401 DINAH SHORE DRIVE
PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92264
SOBOBA BAND OF LUISEIJO INDIANS _«_p
N ATTN: JOSEPH ONTIVEROS errni� o�runon r WA n❑ ononi or_n
CULTURAL RESOURCES MANAGER 7A�A 4u STR,. rnni
.. P.O. BOX 487 i n uro ni ❑i ini iooni is AiAn
o710
AINGunc n
SAN JACINTO, CA 92581 nc o
�l•3. 1�
1�
Kathie Hart
From: Lee A. Bonno
Sent: Thursday,August 21, 2014 3:44 PM
To: Lee A. Bon no
Cc: Kathie Hart
Subject: Two public hearing notices for Sept.3 City Council meeting
Attachments: 1197_001.pdf
Good afternoon,
Attached is a document with two public hearing notices for the Sept. 3 City Council meeting.
• One public hearing is being held to consider the issuance of a fourth medical cannabis collective or cooperative
permit in the City of Palm Springs. The City has received eight(8)applications as follows:
1. Brown Dog Farm Inc. 2050 Executive Dr Unit A
2. Palm Springs Organica 400 E Sunny Dunes Rd
3. Palm Springs Safe Access 1247 S Gene Autry Trail
4.Southern C's Inc. 63738 Orr Way
5. Oasis Wellness and Living Collective 4810 E Camino Parocela
6. Palm Springs Premier Care 180 W Oasis Rd
7.Jade Organics Corporation 1478 N Palm Canyon Dr
8. Palm Springs Natural Healing Center Inc. 903-913 Crossley Rd
Only one (1) permit may be issued at this time.
REVIEW OF INFORMATION: The staff report and other supporting documents regarding this matter will
available for public review at City Hall starting 6:00 p.m.,Thursday,
August 28, 2014, 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.
• Another public hearing will be held to consider approving two Hotel Operations Covenant Agreements with PB
Construction Services (Skylark Hotel at 1466 North Palm Canyon Drive)and AEK Capital Management (Palm
Springs Hotel at 2135 North Palm Canyon Drive) 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.
I will be sending out the ONI Weekly Update later today.
Best,
Lee
Lee Bonno
Director of Neighborhood and Community Relations
City of Palm Springs
3200 E.Tahquitz Canyon Way
Palm Springs, Ca. 92262
760-323-8255
Please note that City Hall hours are from 8 a.m. to 6 p.m Mon. -Thurs. and closed on Fridays
1