HomeMy WebLinkAbout1742 - ORDINANCES - 6/18/2008 ORDINANCE NO. 1742
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING SECTIONS 5.26.020 AND
5.26.040 AND SUBSECTION (a) OF SECTION 524.030
OF THE PALM SPRINGS MUNICIPAL CODE, RELATING
TO AMENDMENTS TO THE CITY'S HOTEL OPERATIONS
INCENTIVE PROGRAM.
CitV Attorne 's summarV
This Ordinance amends the existing hotel incentive program by
revising certain tax rate calculations to reflect actual application in
the City and to add `Deluxe Hotels"as a hotel type that would be
eligible for the incentive program.
The City Council of the City of Palm Springs ordains:
Section 1. Section 5.26.020 is amended by amending the definition for "Adjusted Tax
Rate", adding a new definition for the term "Deluxe Hotel," and amending the definition
for the term "New Quality Hotel" as follows:
Adjusted Tax Rate" shall mean 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 (124) rooms or less, the Adjusted Tax
Rate shall be 10.9% of the rent charged by the Operator of the Hotel for transient
occupancies. For Hotels of one hundred twenty-five (125) rooms or more, the Adjusted
Tax Rate shall be 12.1% 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.
"Deluxe Hotel" means a Hotel which provides standards of physical features and
operational services which include operation of the Hotel on a twenty-four (24) hour per
day/seven (7) days per week basis, housekeeping services, meeting room services,
bellman services, and parking services.
"New Hotel" and "First Class New Hotel," and "Deluxe New Hotel" means a Hotel or
First Class Hotel or Deluxe Hotel that is or was Under Construction as a Hotel after
January 1, 2008, but before December 31, 2012. The term "New Hotel" does not
include all, or any portion of, or addition to, an Existing Hotel.
"New Quality Hotel" means a Hotel that is not a First Class Hotel or a Deluxe Hotel and
is a Hotel that is, or was, Under Construction as a Hotel after January 1, 2008, but
before December 31, 2010.
Ordinance 1742
Page 2
Section 2. Subsection (a) of Section 5.26.030 of the Palm Springs Municipal Code is
amended to read:
(a) To qualify for the Hotel Operations Incentive Program for New First Class Hotels
and New Deluxe 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 or Deluxe 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 or Deluxe 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.
Section 3. Section 6.26.040 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 fifty percent (50%) of the Adjusted Tax Rate. Such payments
shall be made for twenty (20) years or until the Operator has been paid Fifty Million
Dollars ($50,000,000.00), whichever event occurs first. 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) Deluxe New Hotels. The City shall pay to an Operator of a Deluxe Hotel an
amount equal to fifty percent (50%) of the Adjusted Tax Rate. Such payments shall be
made for twenty (20) years or until the Operator has received Twenty-Five Million
Dollars ($25,000,000.00), 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 Deluxe Hotel.
(c) New Quality Hotels. The City shall pay to an Operator of a Quality New Hotel an
amount equal to fifty percent (50%) of the Adjusted Tax Rate. Such payments shall be
made for ten (10) years or until the Operator has received Twenty-Five Million Dollars
Ordinance 1742
Page 3
($25,000,000.00), whichever event occurs first. Without regard to any preceding
conditions of this Section, the Program shall terminate at any point the New Quality
Hotel is not operated as a New Quality Hotel.
(d) Existing Hotels- The City shall pay to an Operator of an Existing Hotel an
amount equal to fifty percent (50%) of the Transient Occupancy Tax Increment collected
and remitted to the City pursuant to Chapter 3-24 of this Code. Such payments shall be
made for ten (10) years, or until the Operator has been received Twenty-Five Million
Dollars ($25,000,000.00), whichever event occurs first. Without regard to any preceding
conditions of this Section, the Program shall terminate at any point the Existing Hotel is
not operated as a Hotel.
Section 3- 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 thirty (30) days after passage-
PASSED, APPROVED, AND ADOPTED THIS 18TH DAY OF JUNE 2008.
�TEPPEN P. POUGNET, AYOR
ATTEST:
MES THOMPSON, CITY CLERK
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. 1742 is a full, true, and correct copx, and was introduced at a
regular meeting of the Palm Springs City Council on the 4 day of June, 2008, and
adopted at a regular meeting of the City Council held on the 18�h day of June, 2008 by
the following vote:
AYES: Councilmember Hutcheson, Councilmember Mills, Councilmember
Weigel, Mayor Pro Tem Foat and Mayor Pougnet.
NOES: None.
ABSENT: None.
ABSTAIN: None.
a es Thompson, City Clerk
7fl��f�rZODB
ity of Palm Springs, California