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ALCAZAR 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
ALCAZAR PALM SPRINGS, 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 Alcazar Palm Springs, LLC (“Alcazar Palm”) 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.
Alcazar Palm Springs, LLC
622 North Palm Canyon Drive
Palm Springs, CA 92262
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
The Agreement started on January 1, 2016, and ends December 31, 2025. The "start date" of the Agreement is the date at which the renovation 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.
Commencing January 1, 2016, and through the termination on December 31, 2025, the subsidy shall be based on annual TOT collections, subtracted from the established TOT Base; 50% of any TOT increment above the TOT Base shall be payable directly to Alcazar Palm. Under the terms of the Agreement, the City rebated $428,821.35 to the Alcazar Palm.
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4. A statement of the public purposes for the economic development subsidy.
The City has confirmed that Alcazar Palm’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 was $428,821.35.
6. The number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
Alcazar Palm, has reported that the renovations to the Alcazar Hotel increased employment by 1 full-time position and generated 157 construction positions.