SECOND AMENDMENT TO TRANSIENT
OCCUPANCY TAX SHARING AGREEMENT
BETWEEN THE CITY OF MURRIETA
AND OLYMPUS REAL ESTATE HOLDINGS, LTD
This Second Amendment to the Agreement (“Second Amendment”), made this 20th day of August, 2024, by and between the City of Murrieta, a California municipal corporation (“City”), and Olympus Real Estate Holdings, LTD, a Texas limited partnership, dba The Murrieta Hot Springs Resort & Spa (“Operator”) with reference to the following facts which are acknowledged by each party as true and correct:
RECITALS
City is a general law city, formed and existing pursuant to the provisions of the California Government Code.
City is authorized under California law to provide economic incentives to businesses for economic development purposes.
Operator, which specializes in operating health and wellness resort facilities in locations with natural hot springs, purchased property in the City for the purpose of operating a hot springs resort (“Resort”).
On June 15, 2021, City and Operator entered into a Transient Occupancy Tax Sharing Agreement (“Agreement”) wherein an amount attributable to the taxable room stay generated by the Resort was to be remitted to the City pursuant to Transient Occupancy Tax Law (“TOT Law”).
On February 28, 2023 City and Operator entered into the First Amendment to the Agreement to make minor modifications to the Agreement.
The parties now desires to further amend the Agreement to eliminate the obligation for the Operator to seek a Specific Plan Amendment as described in this Second Amendment.
AMENDMENT
NOW, THEREFORE, it is agreed by and between the parties as follows:
1. Section 2.3 of the Agreement is hereby amended to be eliminated to read as follows (additions in bold italics; deletions in strikethroughs):
“2.3 [Intentionally omitted,]” Specific Plan. The Operator shall submit a Specific Plan application for the Property to the City no later than one (1) year from the Effective Date of this Agreement. If the Operating Period begins before the Specific Plan is submitted to the City, the City will hold any TOT remitted to the City as required hereunder in trust for a period of one (1) year, or until the Specific Plan is submitted, whichever occurs first, and at which time the City will begin making the Economic Development Subsidy payments to the Operator in accordance with this Agreement.”
2. All other terms of the Agreement remain unchanged.
IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed the day and year first above written.
City: Operator:
CITY OF MURRIETA OLYMPUS REAL ESTATE HOLDINGS, LTD
_____________________________
Kim Summers, City Manager _____________________________ Name:
Title:
Attest:
_____________________________
Name:
Title:
_____________________________
Cristal McDonald, CMC, City Clerk
Approved as to Form:
_____________________________
Tiffany J. Israel, City Attorney
01375.0021/991271.1