Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Palm Springs council approves Orchid Tree hotel covenant with new neighborhood safeguards
Summary
After a lengthy public hearing, the Palm Springs City Council approved a hotel operations covenant for the Orchid Tree project that rebates 75% of transient-occupancy tax to the developer under strict milestones and new neighborhood protections including continuous overnight security, monthly pest control, and perimeter beautification.
The Palm Springs City Council on April 23 approved a hotel operations covenant for the Orchid Tree property that sets a schedule of development milestones and rebates 75% of the hotel's transient-occupancy tax (TOT) to the owner until $50 million is rebated or 30 years pass.
The covenant covers a newly constructed 72-room luxury hotel, restoration of historic bungalows and a two-story church on the site, and up to 16 condominium units that will not be part of the hotel's room pool. City staff estimated the project could generate about $26,500,000 in sales tax over the agreement term and roughly 70 on-site jobs with an estimated $1,500,000 in annual payroll.
City economic development director Wayne Olsen summarized the deal as a framework of incentives and obligations intended to ensure the project’s completion, including a performance bond posted by the developer equal to full construction cost and…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
