55575.18270\44344445.2
TRIADA PALM SPRINGS, AUTOGRAPH COLLECTION,
FINAL ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083
FOR AN OPERATING COVENANT AGREEMENT
BY AND BETWEEN
CITY OF PALM SPRINGS
AND
PACIFICA COMPANIES, LLC
The following Five-Year Report has been prepared pursuant to California Government Code Section 53083. Section 53083 requires that for economic development subsidy agreements approved on or after January 1, 2014, the City must hold a public hearing within five years to provide an update on the project. Although the statutory five-year reporting period has passed, this report has been prepared to ensure compliance with the intent of the statute and to provide transparency regarding the performance of the subsidy. As required, this report reiterates details of the Operations Covenant and Declaration of Covenants and Restrictions (Agreement) between the City of Palm Springs (“City”) and Pacifica L 39, LLC (“Pacifica”) and provides information on subsidy payments to date.
1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.
Pacifica L 39, LLC
1775 Hancock Street, Suite 200
San Diego, CA 92110
Deepak Israni, President
Note: The Agreement was initially entered into between the City and Pacifica Companies LLC, a California limited liability company. Pacifica is Pacifica Companies, LLC’s successor in interest to the Agreement.
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
The Agreement started on November 1, 2014 and ended October 31, 2019. The "start date" of the Agreement was the date at which the renovation project was deemed fully completed and the calculation of the Transient Occupancy Tax (TOT) increment commences.
55575.18270\44344445.2
3. A description of the economic development subsidy, including the estimated total amount of the expenditures of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.
The subsidy was the rebate of 50% share of Transient Occupancy Tax (TOT) increment collected annually calculated as follows: after the start date November 1, 2014, the subsidy was based on TOT collections for the year, subtracted from the established base; 50% of any increment is payable to Pacifica. In accordance with the Agreement, the City rebated $779,142.29 to Pacifica.
4. A statement of the public purposes for the economic development subsidy.
The City has confirmed that Pacifica's operation and maintenance of the hotel facilities improvements enhances the tourist and travel experience for visitors by providing attractive and desirable facilities and assists the City in achieving its tourism goals.
5.The net tax revenue accruing to the local agency as a result of the economic development subsidy.
The net tax revenue retained by the City totaled $779,142.33.
6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
This information was not provided.