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Council adopts revised hotel operations incentive ordinance to streamline awards and tighten delinquencies

Palm Springs City Council · February 12, 2026
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Summary

Council voted to adopt a restructured hotel operations incentive ordinance (new chapter 5.27), requiring projects to start construction within 12 months and finish within 30 months of agreement, adding graduated remedies for TOT delinquencies and a revised revenue split intended to benefit convention‑oriented hotels.

The City Council reintroduced and adopted an ordinance on Feb. 11 adding Chapter 5.27 to the Palm Springs Municipal Code to restructure the city's hotel operations incentive program. The revised ordinance requires a participating project to begin construction within 12 months of the agreement and obtain a certificate of occupancy within 30 months.

City Attorney Ballenger explained the ordinance…

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