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HomeMy WebLinkAbout6/18/2008 - STAFF REPORTS - 2.T. ' p LLM S'D4 iy fa N City Council Staff Report A c4<r�oaN�P. DATE: June 18, 2008 CONSENT CALENDAR SUBJECT: SECOND READING AND ADOPTION OF PROPOSED ORDINANCE NO. 1742, AMENDMENTS TO THE CITY'S 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. 1742. RECOMMENDATION: Waive further reading and adopt Proposed Ordinance No. 1742, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.26.020 AND 526.040 AND SUBSECTION (a) OF SECTION 5.24.030 OF THE PALM SPRINGS MUNICIPAL CODE, RELATING TO AMENDMENTS TO THE CITY'S HOTEL OPERATIONS INCENTIVE PROGRAM." STAFF ANALYSIS: At its June 4, 2008, meeting Proposed Ordinance No. 1742 was introduced by the following vote: AYES: Councilmember Hutcheson, Councilmember Mills, Councilmember Weigel, and Mayor Pougnet. NOES: None. ABSENT: Mayor Pro Tern Foat. This report provides for the City Council to waive further reading and adopt the ordinance The ordinance shall be effective 30-days from adoption. 2 mes Thompson David H. Ready, Esq.,' City Clerk City Manager Attachments: Ordinance No. 1742 ITEM NO. Z 'r PROOF OF PUBLICATION This Is space for County Cle les Filing Stamp (2015.5.C.C.P) STATE OF CALIFORNIA County of Riverside I am a citizen of the United States and A resident of Proof of Publication of the County aforesaid;I am over the age of eigbl'een No-325a - ------- - years,and not a party to or interested in the cqp of palm sppringgs above-entitled matter.I am the principal clerk of a SUMMARY OF ORpINANCE RO.7742 printer of the,DESERT SUN PUBLISHING AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA,AMENDING SECTIONS 5.20 020 AND COMPANY a newspaper of general circulation, 5 2e.040 AND SUBSECTION (a) OF SECTION i 824030 OF THE PALM SPRINNGS MUNICIPAL printed and published in the city of Palm Springs, CODE RELATING TO AMENDMENTS TO THE County of Riverside,and which newspaper has been CITY HOTEL OPERATIONS INCENTIVE PRO- adjudged a newspaper of general circulation by the clarAnonpg1i Superior Court of the County of Riverside,Slate of This Ordinance amenys the existing hotel incentive California under the date of March 24,1988.Case ec pproprem o�revising Certain tax rate calculations To re• actua Il applicalion In 1I10 Ciry antl Number 191236;that the notice,of which the Hazels"as a hotOJ type that would he ul to add Deluxe lglble for the In- annexed is a printed copy(set in type not smaller curftive program. than non pariel,has been published in each regular I James Thompson City Cleric of th Clry oI Palm .§prings,-Celdcmia,hereby catty In ft-the forgaing.pr— and entire issue of said newspaper and not in any umance way duly introduced al u regular meetingp of the City Council on the 41h tl,y of June a008 and r7uly supplement thereof on the following dales,to wit: atlopl0d at a reAtllar meeting of the Clty Council d the 181h day of June 2008,by the following vote: June 28",2008 AYES: CObncilmeni Hutcheson, Councilmomber Mills COIIncilmember --- ---.--------------- Welgol, Mayor Pro Tem Font and Mayor Pougnet NOES. None. ABSENT. None. -----------------------`"""' ABSTAIN None. All in the year 2008 James Thompson Cityy Clerk City of Palm Springs,Caldomia I certify(or declare)under penalty of perjury tbat the Punliahed:6/,tltroE foregoing is true and correct. Dated at Palm Springs,California this—8r",---day of------- July ---------- 2008 r ----------�_ s1c -M rnr �a�.c_�a � J T m •¢ o � 0 CV 4r CITY OF PALM SPRINGS PUBLIC HEARING NOTIFICATION (a OFFICE OF THE CITY CLERK James Thompson, City Clerk City Council Meeting Date: June 18, 2008 Subject: Ordinance No. 1742 AFFIDAVIT OF PUBLICATION I, Kathie Hart, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that summary Ordinance No. 1742, adopted by the City Council on June 18, 2008, was published in the Desert Sun on June 28, 2008. 1 declare under penalty of perjury that the foregoing is true and correct- Kathie Hart, CMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Dolores Strickstein, Secretary, of the City of Palm Springs, California, do hereby certify that the summary and a copy of Ordinance No. 1742 was posted at Office of the City Clerk, City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board and in the Office of the City Clerk on or before June 24, 2008. 1 declare under penalty of perjury that the foregoing is true and correct. Dolores Strickstein, Secretary City of Palm Springs SUMMARY OF 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 5.24.030 OF THE PALM SPRINGS MUNICIPAL CODE, RELATING TO AMENDMENTS TO THE CITY'S HOTEL OPERATIONS INCENTIVE PROGRAM City Attorney's Summary 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. I, James Thompson, City Clerk of the City of Palm Springs, California, hereby certify that the forgoing ordinance was duly introduced at a regular meeting of the City Council on the 4th day of June, 2008, and duly adopted at a regular meeting of the City Council on the 18th day of June, 2008, by the following vote. AYES: Councilmember Hutcheson, Councilmember Mills, Councilmember Weigel, Mayor Pro Tern Foat and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. mes Thompson, City Clerk - ity of Palm Springs, California H\USERS\C-CLK\KathieH\Ord Summary\Ord 1742 - Summary doc 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 5.24.030 OF THE PALM SPRINGS MUNICIPAL CODE, RELATING TO AMENDMENTS TO THE CITY'S HOTEL OPERATIONS INCENTIVE PROGRAM. City Attorney's Summary 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. Section 2. Subsection (a) of Section 5.26.030 of the Palm Springs Municipal Cade is amended to read: Ordinance_ Page 2 (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 5.26.040 of the Palm Springs Municipal Cade 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 ($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. Ordinance Page 3 (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. APPROVED, PASSED, AND ADOPTED THIS 18t" DAY OF June, 2008. /s/ STEPHEN P. POUGNET, MAYOR ATTEST- /s/ JAMES THOMPSON, CITY CLERK PROPOSED 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 5.24.030 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. Section 2. Subsection (a) of Section 5.26.030 of the Palm Springs Municipal Code is amended to read: acao922 Ordinance_ Page 2 (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 526.040 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 ($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. Ordinance_ Page 3 (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. APPROVED, PASSED, AND ADOPTED THIS DAY OF June, 2008. STEPHEN P. POUGNET, MAYOR ATTEST: JAMES 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. 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 00a0S,,