HomeMy WebLinkAboutCC Reso 2016-14 RESOLUTION NO. 2016-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CATHEDRAL CITY, CALIFORNIA, DESIGNATING
APPLICANT AS AN APPROVED HOTEL AND
AUTHORIZING A TRANSIENT OCCUPANCY TAX
SHARING AGREEMENT WITH MIRAGE BOB HOPE
VARNER, LLC, FOR BEST WESTERN PLUS OR
EQUIVALENT HOTEL BRAND UNDER TITLE 3,
CHAPTER 3.25 OF THE CATHEDRAL CITY MUNICIPAL
CODE
WHEREAS, at the public hearing, duly noticed and held at the City Council
meeting of Cathedral City on April 13, 2016, the City Council received testimony and
other evidence concerning a proposed Transient Occupancy Tax Sharing Agreement
with MIRAGE BOB HOPE VARNER, LLC, ("Applicant") for a Best Western Plus Hotel,
or equivalent brand, located at the southwest corner of Bob Hope Drive and Varner
Road (TPM 36619, Parcel 8); and
WHEREAS, Title 3, Chapter 3.25 of the Municipal Code (the "Program")
authorizes the City Council to enter into a Transient Occupancy Tax Sharing _
Agreement to provide an incentive program for the opening, operation,
maintenance, renovation and expansion of hotel facilities within the City; and
WHEREAS, the City Council finds that based on the record and evidence
before it there are valid reasons for making the findings contained herein and
designating Applicant as an Approved Hotel within the meaning of Title 3, Chapter
3.25 of the Municipal Code; and
WHEREAS, at the public hearing on April 13, 2016, the City Council opened
the hearing for public testimony and presentation of additional evidence regarding the
designation of the Applicant as an Approved Hotel under the Program, and the terms
of the Transient Occupancy Tax Sharing Agreement; and
WHEREAS, on April 13, 2016, the City Council duly deliberated and
considered all matters coming before it.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY
THE CITY COUNCIL FOR THE CITY OF CATHEDRAL CITY, AS FOLLOWS:
SECTION 1. FINDINGS
The City Council finds as follows:
A. That approval of the Tax Sharing Agreement will meet the purposes
set forth in Section 3.25.010 of the Municipal Code in that the construction and
operation of the new Best Western Plus, or equivalent, hotel will create a desirable
visitor-serving facility that will contribute to the growth and expansion of tourism and
travel opportunities within the City, provide employment opportunities for residents
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of the City and provide additional transient occupancy tax revenues for the City and
promote and enhance the economy of the City.
B. That the Applicant meets all requirements of the Program to be
designated as an Approved Hotel in accordance with Sections 3.25.020 and 3.25.030 of
the Municipal Code.
C. That the Tax Sharing Report accurately depicts the anticipated
benefits to the City and its residents of the proposed construction of the Best Western
Plus, or equivalent, hotel by the Applicant,, and the anticipated increase in transient
occupancy tax receipts by the City derived from the project.
D. That the staff report, Tax Sharing Report, testimony and other
evidence presented to the Council during the public hearing on this matter support
the findings and satisfy the requirements of Title 3, Chapter 3.25 and expressly that
there is a necessity to provide for the intended public assistance.
E. That the Tax Sharing Report, staff report and other evidence
received support providing assistance to MIRAGE BOB HOPE VARNER, LLC in an
amount equal to fifty percent (50%) of the Transient Tax Increment (as defined in
Section 3.25.020 of the Municipal Code) over a period of ten (10) years, but not to
exceed $1,438,800.00 paid as provided in the Tax Sharing Agreement.
F. That the Transient Occupancy Tax Base and Transient Occupancy
Tax Increment (both as defined in Section 3.25.020 of the Municipal Code) fairly
determined and form the basis for the amount of assistance provided under the
Program.
G. That MIRAGE BOB HOPE VARNER, LLC, has agreed to enter into a
Tax Sharing Agreement, Operating Covenant (which will be recorded against the site)
and Indemnity Agreement (included within the Tax Sharing Agreement) in accordance
with Section 3.25.030 of the Municipal Code.
H. That the assistance provided under the Program by the City to
MIRAGE BOB HOPE VARNER, LLC., is necessary to achieve the construction of the
Best Western Plus, or equivalent hotel and will increase the transient occupancy tax
receipts to the City, thus provide benefits to the City and its residents.
SECTION 2. APPROVAL OF APPLICANT AS APPROVED HOTEL
MIRAGE BOB HOPE VARNER, LLC., for Best Western Plus or equivalent hotel
is hereby approved as an Approved Hotel in accordance with Sections 3.25.020 and
3.25.030 of the Municipal Code.
SECTION 3. AUTHORIZING SALES TAX SHARING AGREEMENT
The City Council approves and authorizes execution of a Tax Sharing
Agreement with the MIRAGE BOB HOPE VARNER, LLC., to receive an amount
equal to fifty percent (50%) of the Transient Occupancy Tax Increment over a period of
ten (10) years, but not to exceed $1,438,800.00 paid as provided in the Tax Sharing
Agreement, and approves and authorizes execution of a ten (10) year Operating
Covenant to be recorded against the site.
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SECTION 4. AUTHORIZATION TO SIGN RESOLUTION AND DOCUMENTS
The City Council authorizes the Mayor to sign this Resolution, and the City
Manager to sign the Tax Sharing Agreement as the City's representative.
SECTION 5. EFFECTIVE DATE
This Resolution shall become effective immediately.
SECTION 6. CERTIFICATION
The City Clerk shall certify to the passage and adoption of this Resolution; shall
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enter the same in the book of original Resolutions of the City; and shall make a minute
of passage and adoption thereof in the records of the proceedings of the City Council
of the City, in the minutes of the meeting at which this Resolution is passed and
adopted.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council for the
City of Cathedral City held on this 13th day of April, 2016
Stanley E. Henry, M. or
City of Cathedral City, California
ATTEST: 9
Gary F. Howell, City erk
City of Cathedral City, California
APPROVED AS TO O
Eric S. Vail, City Attorney
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I, GARY F. HOWELL, CITY CLERK of the City of Cathedral City, do hereby
certify that the foregoing Resolution was introduced and adopted at a regular meeting of
the City Council of the City of Cathedral City held on the 16th day of April, 2016 by the
following vote:
AYES: Council Members Aguilar, Carnevale and Kaplan; Mayor Henry
NOES: None
ABSENT: Mayor Pro Tem Pettis
ABSTAIN: None
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-G---a ,T:101N1.11, City Cle k �.
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