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4,F City Council Staff Report
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DATE: May 15, 2013 CONSENT CALENDAR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1821, AMENDING
THE HOTEL OPERATIONS INCENTIVE PROGRAM
FROM: David H. Ready, City Manager
BY: Office of the City Clerk
SUMMARY:
The City Council will consider adoption of Ordinance No. 1821.
RECOMMENDATION:
Waive the reading of the full text of the ordinance and adopt Ordinance No. 1821, "AN
ORDINANCE OF CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 5.26.020,
5.26.030, AND SECTION 5.26.040 OF THE PALM SPRINGS MUNICIPAL CODE, RELATING
TO THE HOTEL OPERATIONS INCENTIVE PROGRAM."
STAFF ANALYSIS:
On May 1, 2013, Ordinance No. 1821 was introduced for first reading, by the following vote:
ACTION: 1) Waive full reading of the ordinance text and adopt by title only Ordinance
No. 1821, "AN ORDINANCE OF CITY OF PALM SPRINGS, CALIFORNIA, AMENDING
SECTION 5.26.020, 5.26.030, AND SECTION 5.26.040 OF THE PALM SPRINGS
MUNICIPAL CODE, RELATING TO THE HOTEL OPERATIONS INCENTIVE
PROGRAM."
AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Lewin,
Mayor Pro Tern Mills and Mayor Pougnet.
NOES: None.
ABSENT: None.
ABSTAIN: None.
This report provides for the City Council to waive further reading and adopt the ordinance. The
ordinance shall be effective 30-days from adoption.
mes Thompson David H. Ready, Esq.
City Clerk City Manager
/kdh
Attachment: Ordinance No. 1821
Item No. 2. F.
ORDINANCE NO.
AN ORDINANCE OF CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING SECTION 5.26.020, 5.26.030, AND SECTION 5.26.040 OF
THE PALM SPRINGS MUNICIPAL CODE, RELATING TO THE HOTEL
OPERATIONS INCENTIVE PROGRAM
CityAttorney's Summary
This Ordinance amends the existing incentive program for hotel
operations in the City of Palm Springs by combining certain classifications
of hotels into a new general "Comfort Hotel"classification and extending
the incentive periods for defined classifications of hotels.
The City Council of the City of Palm Springs ordains:
Section 1. Section 5.26.020 of the Palm Springs Municipal Code is amended to read:
5.26.020 Definitions.
For the provisions of this Chapter, the following definitions shall apply:
"Adjusted tax rate" means the hotel operations incentive program tax rates which
shall be exclusively utilized for the calculation of the operating assistance to be paid by
the City to qualified operators of hotels participating in the hotel performance incentive
program. For hotels of one hundred twenty-four rooms or less, the adjusted tax rate
shall be ten and nine-tenths percent of the rent charged by the operator of the hotel for
transient occupancies. For hotels of one hundred twenty-five rooms or more, the
adjusted tax rate shall be twelve and one-tenths percent of the rent charged by the
operator of the hotel for transient occupancies. The adjusted tax rate set forth in this
Section shall exclusively apply for the calculation of any and all operating assistance for
the term of the hotel performance incentive program without regard to any increases at
any time in the City of Palm Springs'transient occupancy tax rates.
"Committable rooms program" means the Palm Springs convention center's
committable rooms program which provides the convention center with a list of hotel
properties and a count of hotel rooms available, one year in advance or more, for
potential reservation by meeting groups and/or conventions in the City.
Dele[etlahe minimum
"Comfort hotel" means a hotel which provides appropriate`standards_of physical,,-'
features and operational services established for hotels by the American Automobile
Association, J.D. Power&Associates, Forbes,or Smith's Travel Research Service.
"Existing hotel" means a property that was constructed, occupied, and used as a
hotel on or before January 1, 2006.
02
"First class hotel" means a hotel which provides standards of physical features
and operational services which meet or exceed the higher rating criteria established for
hotels by the American Automobile Association, J.D. Power & Associates, Forbes, or
Smith's Travel Research Service.
"First class hotel standard" means standards of physical features and operation
which qualify a hotel as a first class hotel and which include operation of the hotel on a
twenty-four hours per day/seven day a week basis with housekeeping services, food
and beverage services, room services, banquet and meeting services, concierge and
bellman services, and parking services.
"Fully entitled" means a hotel that has received and/or been issued all
discretionary permits and entitlements from the City required for the construction of a
new hotel.
Deleted:eight
Hotel" means any property containing four (4) or more guest rooms used by four ,C. Deleted:e
(4) or more guests for compensation and where the guest rooms are designed and Dde[ed:eight
intended as transient occupancy accommodations. � ,e
"New hotel,""first class new hotel,"and "comfort new hotel" means a hotel or first
class hotel or comfort hotel that is or was fully entitled as a hotel after January 1, 2008,
but before December 31, 2014 and which is under construction prior to December 31,
2017. The term "new hotel" does not include all, or any portion of, or addition to, an
existing hotel.
"Operating covenants" means the covenants described in Section 5.26.050 of
this Code.
"Operator"means the person who is proprietor of a hotel,whether in the capacity
of owner, lessee, sub-lessee, mortgagee in possession, licensee, franchisee, or any
other capacity, or the assignee or designee of such proprietor.
"Qualified renovation program" means a property improvement program
undertaken by an existing hotel which invests no less than fifteen thousand dollars per
room, or invests no less than one million dollars in ancillary non-hotel room facilities
and/or space. The property improvement program shall be comprehensively executed in
a single renovation project on the property and be under construction no later than
December 31, 2014 and completed no later than December 31,2015.
"Transient occupancy" means an uninterrupted stay of no more than twenty-eight
consecutive calendar days.
"Transient occupancy tax base" means the average of the last thirty-six months
of annualized transient occupancy tax owed to the City by an existing hotel prior to the
commencement of a qualified renovation program.
03
"Transient occupancy tax increment" means the difference between the transient
occupancy tax base and the amount of transient occupancy tax owed to the City by an
existing hotel after the recordation of the operating covenants by the City.
"Under construction" means that all necessary discretionary entitlements have
been approved by the City of Palm Springs, grading and building permits have been
issued, and that inspection approvals by the City of Palm Springs of grading and
foundations to grade level have been obtained, vertical construction of hotel rooms has
begun, and the operating covenants have been recorded.
Section 2. Section 5.26.020 of the Palm Springs Municipal Code is amended to read:
5.26.030 Eligibility for Incentive Program.
(a) To qualify for the hotel operations incentive program for new first class hotels, the
operator shall:
(1) Complete and submit to the City Manager, the City's application for the
hotel operations incentive program;
(2) Subscribe to the Palm Springs convention center's committable rooms
program;
(3) Provide independent, third-party, certification acceptable to the City of the
level of quality of the new hotel as a first class hotel as defined in Section Deleted:
5.26.020;
(4) Participate in the City's convention center hotel shuttle service on a
proportional basis equal to the number of total hotel, or condo-hotel rooms in the
first class new hotel;
(5) Execute the operating covenants which shall include provisions regarding
continuing use, maintenance, non-discrimination, and such other provisions as
the City Council in its sole discretion, may reasonably determine are necessary
or appropriate to preserve the goals and intent of this chapter.
(b) To qualify for the hotel operations incentive program for new comfort hotels, the
operator of each new comfort hotel shall:
(1) Complete and submit to the City Manager, the City's application for
participation in the hotel operations incentive program;
(2) If requested by the City,subscribe to the Palm Springs convention center's
committable rooms program;
04
(3) Execute the operating covenants which shall include provisions regarding
continuing use, maintenance, non-discrimination, and such other provisions as
the City Council in its sole discretion, may reasonably determine are necessary
or appropriate to preserve the goals and intent of this chapter.
(c) To qualify for the hotel operations incentive program for existing hotels, the
operator of each existing hotel shall:
(1) Complete and submit to the City Manager, the City's application for
participation in the hotel operations incentive program, including documentation
satisfactory to the City certifying the renovation project for an existing hotel as a
qualified renovation program;
(2) If requested by the City, subscribe to the Palm Springs Convention
Center's committable rooms program;
(3) Execute the operating covenants which shall include provisions regarding
continuing use, maintenance, non-discrimination, and such other provisions as
the City Council in its sole discretion, may reasonably determine are necessary
or appropriate to preserve the goals and intent of this Chapter.
Section 2. Section 5.26.040 of the Palm Springs Municipal Code is amended to read:
5.26.040 Incentive Program.
(a) First Class New Hotels. The City shall pay to an operator of a first class new
hotel an amount equal to seventy-five percent (75%) of the adjusted tax rate. Such
payments shall be made for thirty years_ or until the operator has been paid fifty million_ _,.. Deleted:
dollars,whichever event occurs first.
The City and a qualified participant under this Section may enter into an
agreement, at the sole discretion of the City, to receive an increase in the percent of the
adjusted tax rate, for no longer than the first two years of the qualified participant's
Incentive program.
Without regard to any preceding conditions of this Section, the program shall
terminate at any point the first class new hotel is not operated as a first class hotel.
(b) Comfort New Hotels. The City shall pay to an operator of a comfort hotel with 125
or more rooms an amount equal to fifty percent of the adjusted tax rate and such
payments shall be made for twenty years or until the operator has received twenty-five
million dollars, whichever event occurs first. The City shall pay to an operator of a
comfort hotel with 51 to 124 rooms an amount equal to fifty percent of the adjusted tax
rate and such payments shall be made for ten years or until the Operator has received
twenty million dollars, whichever event occurs first. The City shall pay to an operator of
a comfort hotel with 49 or fewer rooms an amount equal to fifty percent of the adjusted
o �
tax rate and such payments shall be made for Lctin years, or until the Operator has__ -- Deleted:rve
received fifteen million dollars, whichever event occurs first. Without regard to any
preceding conditions of this Section, the program shall terminate at any point the deluxe
hotel is not operated as a comfort hotel.
(c) Existing Hotels. The City shall pay to an operator of an existing hotel with 125 or
more rooms an amount equal to fifty percent of the transient occupancy tax increment
collected and remitted to the City pursuant to Chapter 3.24 of this Code and such
payments shall be made for ten years, or until the operator has received twenty-five Deleted:The City shall pay to an
million dollars,whichever event occurs first., operator ofan existing hotel with 51
__------ to 124 rooms an amount equal to fifty
percent of the adjusted tax ate and
such payments shall be made for ten
yeas or until the Operator has
received twenty million dollars,
PASSED AND ADOPTED THIS DAY OF 2013. whichever event occurs first. The
City shall pay to an operator of an
existing hotel with 49 or fewer rooms
an amount equal to fifty percent of the
adjusted tax rate and such payments
AYES: shall be made for five years or until
NOES: the Operator has received fifteen
million dollars,whichever event
ABSTAIN: occurs first. Without regard to any
ABSENT: preceding conditions of this Section,
the program shall terminate at any
point the existing hotel is not operated
as a hotel.
STEVE POUGNET, MAYOR
ATTEST:
City Clerk
APPROVED AS TO FORM
City Attorney
CERTIFICATION:
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby
certify that Ordinance No._is a full, true, and correct copy, and was introduced at a
06
regular meeting of the Palm Springs City Council on and adopted at a
regular meeting of the City Council held on by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
07
The Desert Sun Certificate of Publication
750 N Gene Autry Trail
Palm Springs, CA 92262 '
760-7784578/Fax 760-7784731
State Of California ss: C „i
County of Riverside
orb
Advertiser:
CITY OF PALM SPRINGS/LEGALS
PO BOX 2743
PALM SPRINGS CA 922632
2000370573
1 am over the age of 18years 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 NO 1005
in said newspaper (set in type not smaller than non panel) ORDINANCE NO.1620
and not in a AN ORDINANCE OF THE CITY OF PALM
in each and entire issue Of said newspaper
ny SPRINGS CALIFORNIA, ADDING SECTION
supplement thereof on the following dates,to wit: 2.02.035 t0 THE PALM SPRINGS MUNICIPAL
CODE, RELATING TO FILING CANDIDATE
PROFILES AT MUNICIPAL ELECTIONS.
Newspaper: .The Desert Sun Attorney S
California FJedC bna Cotle §g Ina and 13308,
d pertaining tharoathe praoarerotlon�an deCando
mMed in cm u applUNess Ameba sub.
5/24/2013 I ^Dimon with municipal alemrorm in
Palm Sp Tim TNa Ordmance albwe the CIIryry
Elections Oiricial to redact or modify a filed candF
date Profile rather than rebel the Profile,to en-
sure Compllance wM election regulations and
Pnm and Cimutate each oangdkr"poste In the
ballot as redacted or mw les
ORDINANCE NO.1821
AN ORDINANCE OF CITY OF PALM SPRINGS,
CALIFORNIA. AMENDING SECTION 5.26.020
1 acknowledge that I am a principal clerk of the printer of 828.030 AND SECTION PALM BORINGS MUNICIPAL C 5.ODE 26.p/pRELATING OF THt
The Desert Sun, printed and published weekly in the City TO THE M HOTEL OPERATIONS INCENTIVE
of Palm Springs, County of Riverside, State of California.
The Desert Sun was adjudicated a newspaper of general CRY gttomeys Summary
TMe Ordinance a by exlatlngi1" ve pro-
circulation on March 24, 1988 by the Superior Court of the ram for frofel aperetlors in the pN of Palm
County of Riverside, Slate of California Case No. 9grheno maw pgeriegra�Cmdon�Fid a:�sce
191236. Ion andsexten lonng of Incentive periods for ds-
fineCERTIFICATION
I declare under penalty of perjury that the foregoing is true STATE OF CALIFORNIA -
and coned. Executed 24th day of May, 2013 in O�OF PALM SPRINGGSS as.
Palm Springs,Califo la. I JAMFS THOMPSON,2 tark of the City of
I�alm Spnrl�,Ce1'rfomml1aA,dolu)rabyoero'N that Or.
dnancecaNp . 1820 arts 1821 are full,
, IM. and
mee�g of the P Palm Spnr�'gs city CCo hnrOduwd uncil W regC
1st day of MaY 22013,and adopted at a regular
15�M day oflMay 2013,yll a following vote:
AYES: Ccundlmembers Frost, Hutcheson,
Lewin Meyer Pro Tom MDs,and Mayor Pougnel,
Declare is nature NOES: None,
ABSENT: None.
..__. ABSTAIN: Nan,.
JAMES THOMPSON,CITY CLERK
y' Cl d City of Palm Springs,California
Published:6424113
aF �-
CITY OF PALM SPRINGS
NOTIFICATION
City Council
Meeting Date: May 15, 2013
Subject: Ordinance No. 1820 and 1821
AFFIDAVIT OF PUBLICATION
I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby
certify that a copy of the attached Ordinance Summary was published in the Desert Sun on
May 25 2013.
1 declare under penalty of perjury that the foregoing is true and correct.
`L"V'L�
Kathie Hart, CMC
Chief Deputy City Clerk
AFFIDAVIT OF POSTING
1, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby
certify that a copy of the attached Ordinance Summary 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 May 21, 2013.
1 declare under penalty of perjury that the foregoing is true and correct.
A�-�--
Kathie Hart, CMC
Chief Deputy City Clerk
ORDINANCE NO. 1820
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ADDING SECTION 2.02.035 TO THE PALM
SPRINGS MUNICIPAL CODE, RELATING TO FILING
CANDIDATE PROFILES AT MUNICIPAL ELECTIONS.
City Attorney Summary
California Elections Code §§ 13307 and 13308, pertaining to the preparation and form
of a candidate statement, applies to candidate profiles submitted in conjunction with
municipal elections in Palm Springs. This Ordinance allows the City Elections Official to
redact or modify a filed candidate profile, rather than reject the profile, to ensure
compliance with election regulations, and print and circulate each candidate profile in
the sample ballot as redacted or modified.
ORDINANCE NO. 1821
AN ORDINANCE OF CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING SECTION 5.26.020, 5.26.030,
AND SECTION 5.26.040 OF THE PALM SPRINGS
MUNICIPAL CODE, RELATING TO THE HOTEL
OPERATIONS INCENTIVE PROGRAM
City Attorney's Summary
This Ordinance amends the existing incentive program for hotel operations in the City of
Palm Springs by combining certain classifications of hotels into a new general "Comfort
Hotel" classification and extending the incentive periods for defined classifications of
hotels.
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do
hereby certify that Ordinance Nos. 1820 and 1821 are full, true, and correct copies, and
were introduced at a regular meeting of the Palm Springs City Council on the 1st day
of May, 2013, and adopted at a regular meeting of the City Council held on the
151h day of May, 2013, by the following vote:
AYES: Councilmembers Foat, Hutcheson, Lewin, Mayor Pro Tern Mills, and
Mayor Pougnet.
NOES: None.
ABSENT: None.
ABSTAIN: None.
XES THOMPSON, CITY CLERK
ity of Palm Springs, California
ORDINANCE NO. 1821
AN ORDINANCE OF CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING SECTION 5.26.020, 5.26.030, AND SECTION 5.26.040 OF
THE PALM SPRINGS MUNICIPAL CODE, RELATING TO THE HOTEL
OPERATIONS INCENTIVE PROGRAM
CityAttorney's Summary
This Ordinance amends the existing incentive program for hotel
operations in the City of Palm Springs by combining certain classifications
of hotels into a new general "Comfort Hotel" classification and extending
the incentive periods for defined classifications of hotels.
The City Council of the City of Palm Springs ordains:
Section 1. Section 5.26.020 of the Palm Springs Municipal Code is amended to read:
5.26.020 Definitions.
For the provisions of this Chapter, the following definitions shall apply:
"Adjusted tax rate" means the hotel operations incentive program tax rates which
shall be exclusively utilized for the calculation of the operating assistance to be paid by
the City to qualified operators of hotels participating in the hotel performance incentive
program. For hotels of one hundred twenty-four rooms or less, the adjusted tax rate
shall be ten and nine-tenths percent of the rent charged by the operator of the hotel for
transient occupancies. For hotels of one hundred twenty-five rooms or more, the
adjusted tax rate shall be twelve and one-tenths percent of the rent charged by the
operator of the hotel for transient occupancies. The adjusted tax rate set forth in this
Section shall exclusively apply for the calculation of any and all operating assistance for
the term of the hotel performance incentive program without regard to any increases at
anytime in the City of Palm Springs' transient occupancy tax rates.
"Committable rooms program" means the Palm Springs convention center's
committable rooms program which provides the convention center with a list of hotel
properties and a count of hotel rooms available, one year in advance or more, for
potential reservation by meeting groups and/or conventions in the City.
"Comfort hotel" means a hotel which provides appropriate standards of physical
features and operational services established for hotels by the American Automobile
Association, J.D. Power& Associates, Forbes, or Smith's Travel Research Service.
"Existing hotel" means a property that was constructed, occupied, and used as a
hotel on or before January 1, 2006.
"First class hotel" means a hotel which provides standards of physical features
and operational services which meet or exceed the higher rating criteria established for
hotels by the American Automobile Association, J.D. Power & Associates, Forbes, or
Smith's Travel Research Service.
"First class hotel standard" means standards of physical features and operation
which qualify a hotel as a first class hotel and which include operation of the hotel on a
twenty-four hours per day/seven day a week basis with housekeeping services, food
and beverage services, room services, banquet and meeting services, concierge and
bellman services, and parking services.
"Fully entitled" means a hotel that has received and/or been issued all
discretionary permits and entitlements from the City required for the construction of a
new hotel.
"Hotel" means any property containing four (4) or more guest rooms used by four
(4) or more guests for compensation and where the guest rooms are designed and
intended as transient occupancy accommodations.
"New hotel," "first class new hotel," and "comfort new hotel" means a hotel or first
class hotel or comfort hotel that is or was fully entitled as a hotel after January 1, 2008,
but before December 31, 2014 and which is under construction prior to December 31,
2017. The term "new hotel" does not include all, or any portion of, or addition to, an
existing hotel.
"Operating covenants" means the covenants described in Section 5.26.050 of
this Code.
"Operator" means the person who is proprietor of a hotel, whether in the capacity
of owner, lessee, sub-lessee, mortgagee in possession, licensee, franchisee, or any
other capacity, or the assignee or designee of such proprietor.
"Qualified renovation program" means a property improvement program
undertaken by an existing hotel which invests no less than fifteen thousand dollars per
room, or invests no less than one million dollars in ancillary non-hotel room facilities
and/or space. The property improvement program shall be comprehensively executed in
a single renovation project on the property and be under construction no later than
December 31, 2014 and completed no later than December 31, 2015.
"Transient occupancy" means an uninterrupted stay of no more than twenty-eight
consecutive calendar days.
"Transient occupancy tax base" means the average of the last thirty-six months
of annualized transient occupancy tax owed to the City by an existing hotel prior to the
commencement of a qualified renovation program.
"Transient occupancy tax increment" means the difference between the transient
occupancy tax base and the amount of transient occupancy tax owed to the City by an
existing hotel after the recordation of the operating covenants by the City.
"Under construction" means that all necessary discretionary entitlements have
been approved by the City of Palm Springs, grading and building permits have been
issued, and that inspection approvals by the City of Palm Springs of grading and
foundations to grade level have been obtained, vertical construction of hotel rooms has
begun, and the operating covenants have been recorded.
Section 2. Section 5.26.020 of the Palm Springs Municipal Code is amended to read:
5.26.030 Eligibility for Incentive Program.
(a) To qualify for the hotel operations incentive program for new first class hotels, the
operator shall:
(1) Complete and submit to the City Manager, the City's application for the
hotel operations incentive program;
(2) Subscribe to the Palm Springs convention center's committable rooms
program;
(3) Provide independent, third-party, certification acceptable to the City of the
level of quality of the new hotel as a first class hotel as defined in Section
5.26.020;
(4) Participate in the City's convention center hotel shuttle service on a
proportional basis equal to the number of total hotel, or condo-hotel rooms in the
first class new hotel;
(5) Execute the operating covenants which shall include provisions regarding
continuing use, maintenance, non-discrimination, and such other provisions as
the City Council in its sole discretion, may reasonably determine are necessary
or appropriate to preserve the goals and intent of this chapter.
(b) To qualify for the hotel operations incentive program for new comfort hotels, the
operator of each new comfort hotel shall:
(1) Complete and submit to the City Manager, the City's application for
participation in the hotel operations incentive program;
(2) If requested by the City, subscribe to the Palm Springs convention center's
committable rooms program;
(3) Execute the operating covenants which shall include provisions regarding
continuing use, maintenance, non-discrimination, and such other provisions as
the City Council in its sole discretion, may reasonably determine are necessary
or appropriate to preserve the goals and intent of this chapter.
(c) To qualify for the hotel operations incentive program for existing hotels, the
operator of each existing hotel shall:
(1) Complete and submit to the City Manager, the City's application for
participation in the hotel operations incentive program, including documentation
satisfactory to the City certifying the renovation project for an existing hotel as a
qualified renovation program;
(2) If requested by the City, subscribe to the Palm Springs Convention
Center's committable rooms program;
(3) Execute the operating covenants which shall include provisions regarding
continuing use, maintenance, non-discrimination, and such other provisions as
the City Council in its sole discretion, may reasonably determine are necessary
or appropriate to preserve the goals and intent of this Chapter.
Section 2. Section 5.26.040 of the Palm Springs Municipal Code is amended to read:
5.26.040 Incentive Program.
(a) First Class New Hotels. The City shall pay to an operator of a first class new
hotel an amount equal to seventy-five percent (75%) of the adjusted tax rate. Such
payments shall be made for thirty years or until the operator has been paid fifty million
dollars, whichever event occurs first.
The City and a qualified participant under this Section may enter into an
agreement, at the sole discretion of the City, to receive an increase in the percent of the
adjusted tax rate, for no longer than the first two years of the qualified participant's
Incentive program.
Without regard to any preceding conditions of this Section, the program shall
terminate at any point the first class new hotel is not operated as a first class hotel.
(b) Comfort New Hotels. The City shall pay to an operator of a comfort hotel with 125
or more rooms an amount equal to fifty percent of the adjusted tax rate and such
payments shall be made for twenty years or until the operator has received twenty-five
million dollars, whichever event occurs first. The City shall pay to an operator of a
comfort hotel with 51 to 124 rooms an amount equal to fifty percent of the adjusted tax
rate and such payments shall be made for ten years or until the Operator has received
twenty million dollars, whichever event occurs first. The City shall pay to an operator of
a comfort hotel with 49 or fewer rooms an amount equal to fifty percent of the adjusted
tax rate and such payments shall be made for ten years or until the Operator has
received fifteen million dollars, whichever event occurs first. Without regard to any
preceding conditions of this Section, the program shall terminate at any point the deluxe
hotel is not operated as a comfort hotel.
(c) Existing Hotels. The City shall pay to an operator of an existing hotel with 125 or
more rooms an amount equal to fifty percent of the transient occupancy tax increment
collected and remitted to the City pursuant to Chapter 3.24 of this Code and such
payments shall be made for ten years, or until the operator has received twenty-five
million dollars, whichever event occurs first.
PASSED AND ADOPTED THIS 15" DAY OF MAY, 2013.
STEVE POUGNET, MAYOR
ATTEST:
City Clerk
CERTIFICATION:
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby
certify that Ordinance No. 1821 is a full, true, and correct copy, and was introduced at a
regular meeting of the Palm Springs City Council on May 1, 2013, and adopted at a
regular meeting of the City Council held on May 15, 2013. by the following vote:
AYES: Councilmembers Foat, Hutcheson, Lewin, Mayor Pro Tern Mills, and
Mayor Pougnet.
NOES: None.
ABSENT: None.
ABSTAIN: None.
James Thompson, City Clerk
City of Palm Springs, California