ATTACHMENT D
Letter – Notice of Default
55575.10036\45263597.1
Seth Merewitz
Partner
(213) 787-2567
[email protected]
Best Best & Krieger LLP | 300 South Grand Avenue, 25th Floor, Los Angeles, California 90071 Phone: (213) 617-8100 | Fax: (213) 617-7480 | bbklaw.com August 3, 2026
BY CERTIFIED MAIL
RETURN RECEIPT REQUESTED
VIA E-MAIL: [email protected]
Rabinder Pal Singh
Selene Palm Springs, LLC
200 West 55th Street
New York, NY 10019
Stephen Z. Boren
Boren, Osher & Luftman, LLP
222 N. Pacific Coast Highway, Ste. 2222
El Segundo, CA 90245
Re: Notice of Default, Palm Springs Settlement and Development Agreement Dear Mr. Singh and Mr. Boren:
NOTICE OF DEFAULT AND 30-DAY CURE PERIOD
The City of Palm Springs (“City”) is furnishing this letter to you as the Developer of the Dream Hotel Project (“Project”). The City remains excited about this important project and appreciates your investment. The City has also adopted a new and more robust Hotel Operations Incentive Program to assist projects like yours. However, the timing is not meeting the mutual agreement of the parties.
This letter serves as a formal Notice of Default (“Notice”) by the City to Selene Palm Springs, LLC (“Developer”), pursuant to Section 3.8 of the Settlement and Development Agreement between the City and Developer, dated May 1, 2023 (“Agreement”). This letter also serves as a formal demand that you cure such default within thirty (30) calendar days following receipt of this Notice.
On or around March 2, 2026, the City and the Developer entered into the First Amendment to the Settlement and Development Agreement (“First Amendment”). The First Amendment, in part, amended the Schedule of Performance included in the Agreement. The Schedule of Performance, as amended by the First Amendment, set forth a deadline of July 30, 2026 to set the Guaranteed Maximum Price for the Project. Developer has failed to set a Guaranteed Maximum Price for the Project by close of business on July 30, 2026, constituting a default pursuant to Section 3.8.1 of the Agreement.
Therefore, pursuant to Section 3.8.2 of the Agreement, the City hereby provides you with written notice of the above default and provides you with thirty (30) days to cure said default or the City will move to repurchase the Property from the Developer pursuant to Section 3.10.
In order to cure the specified default, you are required to present an updated Schedule of Performance to the City with new dates for each necessary step to complete the Project. As a BBK
BEST BEST & KRIEGER LLP
ATTORNEYS AT LAW
55575.10036\45263597.1
Rabinder Pal Singh
Stephen Z. Boren
August 3, 2026
Best Best & Krieger LLP
reminder, any modification to the Schedule of Performance that will result in an aggregate change of more than ninety (90) days is subject to City Council approval, per Section 3.3.4 D. of the Agreement.
Please note that the City has not agreed, and nothing herein nor in any prior communication with the City should be taken to have created, any obligation by the City to discuss, negotiate or agree, to any restructuring, modification, amendment, waiver or forbearance with respect to the terms and obligations within the Agreement. The City continues to reserve and preserve all of its rights and remedies against you under the Agreement and applicable law.
This letter shall not constitute a waiver or modification of any of the City’s rights or remedies, and it shall not preclude the exercise of any right or remedy available to the City at law or in equity, including any procedure necessary or appropriate to enforce any of the terms and conditions set forth in the Agreement. Any delay in or failure to exercise any of the City’s rights, remedies, claims, powers, benefits or privileges shall not subject it to any liability to any person or entity, and no other person or entity may rely upon or in any way seek to assert as a defense to any obligation owing to the City such delay or failure. Such delay or failure, if any, shall not be deemed to constitute a waiver of any such right, remedy, claim, power, benefit or privilege of the City. All of the City’s rights with respect to all of the matters referred to in the Agreement and this letter are expressly reserved.
We appreciate your prompt attention to this matter.
Sincerely,
Seth Merewitz
of BEST BEST & KRIEGER LLP
SM:ed
cc: Honorable Mayor and City Councilmembers
Scott Stiles, City Manager
Lauri Kibby ([email protected])
Eran Nornberg ([email protected])