HomeMy WebLinkAbout00242C - MCWETHY PACIFIC HOSPITALITY GROUP DESERT INN HOTEL 155 BELARDO William McWethy
• Pacific Hospitality Group
Ltr Intent re Desert Inn Hotel
AGREEMENT #242
R702, 6/20/90
LETTER OF INTENT
THIS LETTER OF INTENT is executed on this ;�,!/"—��day of -
1990, by and among the Community Redevelopment Agency of-the City of Palm
Springs, California ("Agency") , the City of Palm Springs, California ("City") ,
and William H. McWethy ("Participant") , sole proprietor of Pacific Hospitality
Group, who hereby agree to execute this subject Letter of Intent, which
they intend to be legally binding, and shall be legally binding upon the
parties hereto with respect to the subject matter thereof.
I. Intention of Parties.
This Letter of Intent is executed with respect to the following facts:
a. Participant is in escrow to acquire 155 South Belardo Road (Desert
Inn Hotel ) in the Oasis Redevelopment Project Area.
b. Participant wishes to renovate the existing 80 rooms, amenities,
and grounds of the subject property, and to expand via the
construction of an additional structure which will house 40 new
hotel rooms.
c. Participant plans to promote subject property through Southern
California vacation package travel affilliates owned by Participant.
d. Participant will underground utility power poles bordering property
on Cahauilla Road.
e. Participant will repair, during construction, City sidewalks adjacent
to the project in addition to landscaping City right-of-way.
f. Participant plans to maintain ownership and management involvement
in the subject property.
g. Participant to be responsible for the development of parking area
to City standards.
h. Participant has the right to transfer this agreement to any future
entity purchasing participant' s said property.
i . The Agency and City agree to work with the Participant to make this
project financially feasible, and provide staff support as appropriate
and necessary.
j. Agency and City will provide for a maximum rebate of TOT and
property tax increment up to $210,000 annually for a period of seven
years, as follows:
1. Rebate 7% of 9% of TOT increment in excess of $70,000 annual
base.
2. Rebate of property tax increment beyond the $2,914,000
base valuations after housing set-aside.
3. Tax income in excess of $210,000 annually will be shared
on a 50/50% basis with the Agency/City and Participant
for the 7 year period.
k. This letter of Intent is non-transferable.
1 . This Letter of Intent has been executed with the understanding that
developer will invest all inclusive development costs totalling
7.7 million dollars, including inter affiliate and interest savings.
Agency financial asssistance is contingent upon the receipt of a
certified copy from developer of total development costs at time
of issuance of Certificate of Occupancy based on the completion
of the project in compliance with approved plans.
m. Developer has provided evidence of his financial ability to complete
the project.
n. Starting date of the financial assistance is upon the completion
of the additional units.
o. All standards herein are to be the date of Redevelopment Agency
approval , June 20, 1990.
IN WITNESS THEREOF, the parties hereto have executed the Letter of Intent
agreement as of the date and year first above written.
PARTICIPANT
PACIFIC HOSPITALITY GROUP
WILLIAM H. MCW�EITTHYYf, Sole Proprietor
ATTEST:-_- CITY OF PALM SPRINGS, CALIFORNIA
BY
...-City Clerk f�= City Manager
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
,- CITY OF PALM SPRINGS-,-C-ALIFORNIA
BYL
�If
—Assistant Secretary CfaIrrman
REVIEWED AND APPROVED: _
GENERAL ACNOWLEDGMENT
K- NO 201
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the understgnep Notary Public, ersonall a t'f? p y appeared (1>
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❑ personally known to me tjI,{
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obethe erson(sj-whose name II
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+� within instrument,and acknowledged that t`I
uz nro90 - executed it.
Y(;) WITNEEp m hand and official seal.
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otary's Signature
1 ATTENTION NOTARY:Although the vrformation requested below is OPTIONAL,it could prevent fraudulent attachment of this certificate to another document
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"(THIS CERTIFlCATE Title or Type of Document p,)
MUST BE ATTACHED
TO THE DOCUMENT Number of Pages
Date of Document I'!;
DESCRIBED AT f RIGHT Signer(s)Other Than Named Above
120019-v
NATIONAL NOTARY ASSOCIA----_ '" -- - - _ TION S236 Remmet Ave PO sox]i64• - )
Cana9a Park CA 913947184
9IIJWNCE COMPANY OF THE WEST• SAN ISO, CALIFORN�A
Policy No. CSD 1142629 Cancellation Date 07J10/91 Reinstatement Date 07/10/q I
Named • PA114 k30UL7TAIH7 MSoj2.9?
Insured kICTIETHY DEVELOPMENT C-OrP. YOU Pi'g !s,-_[)V
1-18 1,39 ;OjUE-j.j1LO VALLEY pozA-D
S2U7 DIEGO, CA 92121 Ss[,ed o v_, by the
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U-11CHAE'L EHRENIVELD INSURZOICE
3333 C4M1U.N0 DEIL RIO SO. l,'160
SAN ID I EG 0, CA 92108 oliCy For 1 SST,'S, CI I j C,
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-Mortgage4? CITY OF PAU.4 SPPIDIGS
or Loss 3400 TANOU* ITZ TTAY
Payable PAIJ11 SPRINGS, CA 92262
Countersigned
at SALT T)Trzan,CA
Mortgagee this 29th day of JULY 19 91
or Loss
Payable
by
UND�918(11/75) AUTHORIZED REPRESENTATIVE