DocuSign Envelope ID: 17F41696-32AE-4127-B681-09D4627BCA9D
FIRST AMENDMENT TO TRANSIENT OCCUPANCY TAX SHARING
AGREEMENT BETWEEN THE CITY OF MURRIETA AND OLYMPUS REAL
ESTATE HOLDINGS, LTD
This First Amendment to the Agreement ("Amendment"), made this 21st day of March 2023, 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
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.
C. Operator, which specializes in operating health and wellness resort facilities in locations with natural hot springs, purchased the 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").
City now desires to amend the Agreement to define the term "Effective Date," and the Operator is willing to amend the Agreement pursuant to the terms and conditions of this Amendment.
AMENDMENT
NOW, THEREFORE, it is agreed by and between the parties as follows:
1. Section 1 of the Agreement is hereby amended to read as follows:
"1.2 "Effective Date" means the date of opening of the Resort at the Property for operation."
2. Section 2.3 of the Agreement is hereby amended to read as follows:
"2.3 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." DocuSign Envelope ID: 17F41696-32AE-4127-B681-09D4627BCA9D
3. Section 2.7 of the Agreement is hereby amended to read as follows:
"2.7 Operator's Representations and Warranties. The Operator makes the following representations and warranties as of the Effective Date of this Agreement:"
4. All other terms of the Agreement remain unchanged.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed the day and year first above written.
CITY OF MURRIETA OLYMPUS REAL ESTATE
HOLDINGS, LTD
Kim Summers, City Manager David Dronet Managing Member
Name, Title
David Dronet
Signature
Attest:
Chine 17 Name, Title
Cristal McDonald, CMC, City Clerk
Signature
Approved as to Form:
Tiffany Israel
Tiffany J. Israel, City Attorney