HomeMy WebLinkAbout3/16/2011 - STAFF REPORTS - 3B e A L M sA4
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DATE: March 16, 2011 LEGISLATIVE
SUBJECT: INTRODUCTION OF AN ORDINANCE OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING SUBSECTION (a) OF SECTION
5.26.040 OF THE PALM SPRINGS MUNICIPAL CODE, WITH RESPECT
TO FIRST CLASS NEW HOTELS PARTICIPATING IN THE CITY'S
HOTEL OPERATIONS INCENTIVE PROGRAM.
FROM: David H. Ready, Esq., Ph.D., City Manager
BY: Community Development Department
SUMMARY
The proposed Amendment would apply only to the Incentive Program for First Class
New Hotels. This Ordinance amends the existing City's Hotel Operations Incentive
Program by changing the percent of the "adjusted tax rate"/Transient Occupancy Tax
shared with an operator of a First Class New Hotel from 50% to 75%. The Amendment
provides for the new incentive to be available if vertical construction of a new First Class
Hotel begins by December 31, 2013.
RECOMMENDATION:
Waive reading and introduce "AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING SUBSECTION (a) OF SECTION 5.26.040 OF THE PALM SPRINGS
MUNICIPAL CODE, WITH RESPECT TO FIRST CLASS NEW HOTELS PARTICIPATING IN
THE CITY'S HOTEL OPERATIONS INCENTIVE PROGRAM."
STAFF ANALYSIS:
The proposed Ordinance would amend the City's Hotel Operations Incentive Program
by changing the incentive available to be paid to an operator of a First Class New Hotel
from 50% to 75%' of a portion of the City's Transient Occupancy Tax, which in the
Ordinance is defined as the "adjusted tax rate", to 75%.
The Amendment to the Ordinance also provides that the new incentive would be
available only to new First Class Hotels which begin vertical construction of the new
hotel no later than December 31, 2013.
City Council Staff Report
March 16, 2011 -- Page 2
Finally, the Amendment provides that a qualified participant/operator of a new First
Class Hotel may request to increase the incentive percentage above 75% for the first
two years of the program. Any such increase in the incentive percentage above 75% is
reserved at the sole discretion of the City.
The proposed adjustments reflect an increase in the incentives potentially available for
First Class New Hotels. Staff believes that the increase in the incentives may provide a
basis to stimulate the construction of one or more First Class New Hotels in this difficult
development environment.
FISCAL IMPACT:
David H. Ready, Thomas J. Wil n
City Manager Assistant City tanager
Douglag C. Holland, Esq.
City Attorney
Attachments:
1. Ordinance Amending Subsection (a) of Section 5.26.040
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING SUBSECTION (a) OF SECTION
5.26.040 OF THE PALM SPRINGS MUNICIPAL CODE, WITH
RESPECT TO FIRST CLASS NEW HOTELS PARTICIPATING IN
THE CITY'S HOTEL OPERATIONS INCENTIVE PROGRAM.
City Attorney Summary
Currently a First Class New Hotel is eligible to receive an
incentive of 50% of the adjusted tax rate. This Ordinance amends
the existing hotel incentive program for a First Class New Hotel to
receive 75% of the adjusted tax rate.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS:
SECTION 1. Subsection (a) of Section 5.26.040 is amended to read as follows:
(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 twenty years or until the operator has been paid fifty million dollars,
whichever event occurs first. Without regard to any other provision of Chapter 5.26, a
First Class New Hotel must have begun vertical construction no later than December
31, 2013 to qualify to submit an application to participate in the Incentive Program.
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.
SECTION 2. The Mayor shall sign and the City Clerk shall certify to the passage
and adoption of this Ordinance and shall cause the same, or the summary thereof, to be
published and posted pursuant to the provisions of law and this Ordinance shall take
effect upon adoption.
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS DAY OF , 2011.
STEPHEN P. POUGNET, MAYOR
ATTEST:
JAMES THOMPSON, CITY CLERK
3
Ordinance_
Page 2
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 No. is a full, true, and correct copy, and was
introduced at a 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
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