HomeMy WebLinkAbout6/1/2011 - STAFF REPORTS - 00 Jay Thompson
From: Roxann Ploss [riploss@gmail.com]
Sent: Wednesday, June 01, 2011 12:49 PM
To: Steve Pougnet; Lee Weigel; Chris Mills; ginny foat; Rick Hutcheson; Tom Wilson; Craig Ewing;
doug.holland@paimspringsca.gov; Jay Thompson
Subject: Lulu and the Spanish Inn
Dear Mr. Mayor, Members of Council
Given some of the apparent similarities of two renovation projects,
LuLu and The Spanish Inn, it is distressing to hear that a promise of
an assured loan in the case of the latter has been withdrawn due to
a missed deadline.
Mr. Kohan has spent millions of dollars on the Spanish Inn. He
was forced to commit ($500k) to a "traffic calming" project which
seems(ed) ill-advised at best (it is a quagmire even for old-time
locals!) which caused several delays. Faulty ADA inspection reports
caused further delays, incurring more costs for corrections. And so
forth.
Now, with the end in sight, with what could be a very real boon to
TOT, North Indian, the Movie Colony and Palm Springs in general, it
may all be lost to foreclosure. This, if ANY of my information is
correct, is unconscionable.
Mr. Keller was not being offered a LOAN. . . .but a grant of $100,000
in public funds. He missed his deadline. Yet TD5 today reports
that he plans to ask you for a reconsideration on that re-
imbursement deal.
My question is about priorities. After ten years of trying and being
met with blocks at every turn, the Spanish Inn, a historic part of
our town, is beautiful and move-in ready. Much, much money has
been spent IN this town, employing a lot of builders, architects,
paying permits.
It is VERY difficult to understand how LULU'S was ever considered
at all.. . .but to withdraw support from something so LONG awaited
6i2i20 r r /74464-lc
would seem to be the definition of counter-productivity.
Thank you for your time,
Roxann Ploss
930 Chia Road
Palm Springs, Ca.
6/2/2011
VVi L VI 6VI I
TO CITY COUNCIL - REQUEST FOR RECONSIDERATION OF MAY 18"' DECISION
Mayor, City Council, City Manager, City Atb*mey and Sty, Good Evening,
I am Nejat Kohan, co-owner of Spanish inn hotel.
We all have bocn waiting more than'!0 years for Spanish Inn to reach to this point. the
project is now 98% complete. That is why your dpcision on May I e was, not only
shocking, but a cause of great difficulty.
I warm to briefly review a bit of histo,y. In 2004, Jerry Ogborn, the Uptown City Engineer
created a Wftic calming plan around Spanish Inn in which all hotels and neighbors were
to contribute to the cost of the plan, that did not happened.
In August 2005, City Engincars unfairly imposed the plan on Spanish Inn as a pre-
condition to obtain the building permit. City also dumptA the financial burden of the plan
solely on Spanish inn without our consent.
After years of complaining about the obvious unfairness of the situation, City agreed last
year to a $500,000 assistance package. Even though we should have been rew nbu#*.mod
unconditionally. We agreed to the City proposal because the lender required our
agraoment to back up their extra funds.
Things have obviously changed. City demanded a new financial condition to that
package and lender immediately reacted and froze the loan, informing us to obtain the
Certificate of Occupancy with personal funds, to negotiate pennaanent financing. We
therefore, ncxd the$250,000 now so that we can obtain the C.O.
The small portion of funds recently received from colony palms, wont directly to the
lender for extension of time. 1 am here to ask you to reconsider your decision of May 18
to release the funds to complete the project
At present time no one is working on project. Without the funds that are due us, we
frankly, have no alternative but to seek legal remedy. That is definitively not our
prefere,xce. But, after 10 years of a concerted efrort on $11 million dollars project of
which devolopers cuotbirbuted 4 million, it would be impossible for us to sisivly walk
away. We would much rather cooperate with you. But, if you hold to your previous
decision we will have no choice.
Fairness requires, we should have boon provided will, the money years ago. The short
of fund has boian always a big cause of delay in this project. Thank you.
1. 9
4
Venomoto
Wit
�
to
s
r ' r a►
RECEPiEu
�r P" LM S,
2011 JUN -- 1 PM 3: 38
jAhC'.a i HUI
June 1, 2011 CITY CLER
TO: Mayor and City Council
FROM: Frank Tysen
RE: Spanish Inn
I have closely been following the progress of the restoration of the Spanish Inn
and I must say it will be a wonderful addition to our small hotel stock.
It is essentially finished but it is in need of a little help for final completion. It is
my understanding that the improvement road work in back of the Inn was to be
reimbursed by the city. Unfortunately all hotel work has stopped.
1 w ould like to strongly urge you to do everything in your power to make this
hotel a reality. After over 20 years it sitting idle and empty, it would be good for Palm
Springs, not to speak of the additional bed tax to be garnered on 59 units. We cannot
afford another empty building.
1 have discussed this issue with my fellow board members of the Palm Springs
Small Hotel Association and there appears to be strong support for aiding the Spanish Inn
toward full operation.
r_