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ARRIVE PALM SPRINGS
NINE-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 GROVE GROUP, LLC
The following Nine 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 Grove Group, LLC (“Palm Grove Group”) 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 Grove Group LLC
P.O. Box 93217
Pasadena, CA 91109
Attn: Matt Steinberg
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
The Agreement started on March 1, 2016 and ends February 28, 2026. The "start date" of the Agreement was the date at which the project was deemed fully completed and the calculation of the Transient Occupancy Tax (TOT) increment 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 50% of the TOT collected annually and calculated as follows:
after the start date March 1, 2026, the subsidy is based on TOT collections for each calendar year. 50% of the TOT is payable to Palm Grove Group. Pursuant to the Agreement, the City rebated $1,166,783.87 to Palm Grove Group.
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4. A statement of the public purposes for the economic development subsidy.
The City has confirmed that Palm Grove Group’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 $1,295,237.19.
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 created thirty four (34) full time positions, seventeen (17) part time positions, and three hundred fourteen (314) jobs during the construction period.