55575.18270\44344450.2
KIMPTON ROWAN PALM SPRINGS HOTEL
EIGHT-YEAR ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083
FOR AN OPERATING COVENANT AGREEMENT
BY AND BETWEEN
CITY OF PALM SPRINGS
AND
PALM SPRINGS PROMENADE, LLC
The following Eight 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. 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 Palm Springs Promenade, LLC (“Palm Springs Promenade”) 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.
Palm Springs Promenade, LLC
555 South Sunrise Way, Suite 200
Palm Springs, CA 92264
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
The subsidy starts on November 1, 2017 and ends October 31, 2047. The "start date" of the subsidy is the date at which the construction project is deemed fully completed and the collection of the Transient Occupancy Tax (TOT) commences.
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 is the rebate of 75% share of TOT collected annually calculated as follows:
after the start date estimated November 1, 2017, the subsidy is based on TOT collections for the year, excluding TOT on resort fees; 75% of the TOT is payable to Palm Springs Promenade. In accordance with the Agreement, the City rebated $8,681,262.66 to Palm Springs Promenade over the 95 Month Period. 55575.18270\44344450.2
4. A statement of the public purposes for the economic development subsidy.
The City has confirmed that Palm Springs Promenade’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 $5,532,532.58.
6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
The development of the hotel will create no fewer than 100 positions, and a number of construction jobs during the construction period.