HomeMy WebLinkAboutContract 1567-2 56. r
4"
Cathedral City
Transient Occupancy Tax Sharing Agreement (Doubletree)
Amendment No. 2
This Amendment No. 2 to the Transient Occupancy Tax (TOT) Sharing Agreement ("Agreement")
effective April 10, 2013, between the City of Cathedral City ("City") and T Alliance One Palm
Springs, LLC, a California limited liability company(Owner), modifies the terms of that
Agreement and of Amendment No. 1 to that Agreement effective June 3, 2014. The Owner
requested that the terms be modified to accommodate ongoing negotiations between T2
Management, LLC,the landowners and the master lessor of the property upon which the subject
hotel is located. This Amendment reflects the City's determination pursuant to that request.
On February 11, 2015,the City Council of Cathedral City approved the following:
1. An amendment to the extension of time deadline by one (1) year in accordance with Section
8q (Miscellaneous Provisions) of the Agreement whereby Section 3c (Prerequisites for
Receipt by Owner of Tax Sharing) of the Agreement is amended as follows:
On or prior to December 1, 2015, Owner (or Owner Related Party or their designee, as
applicable) shall have caused the Hotel Opening (as defined [in the Agreement]) to have
occurred; provided, however, that failure to meet said date shall not be a breach of the
terms of this Agreement by Owner but shall delay the commencement of the Transient
Occupancy Tax Sharing period pursuant to Section 4(a). Notwithstanding the foregoing,
the City's obligation hereunder to share Transient Occupancy Tax may, at the City's
election, terminate if the Hotel Opening does not occur on or before April 1, 2016. As
used here, "Hotel Opening" shall mean: (i) Owner (or the applicable Owner Related
Party) shall have completed (or caused to be completed) those improvements expressly
required by Hilton as a condition to opening the Hotel as a DoubleTree by Hilton (the
"Hotel Improvements"), and (ii) the occurrence of the "grand" opening of the Hotel as a
DoubleTree by Hilton, which shall occur no more than 60 days after the Hotel first begins
operating as a DoubleTree.
2. An amendment to the period by which the City Manager may extend the time deadline
by one (1) year such that Section 8q (Miscellaneous Provisions) is amended as follows:
The City Manager of the City is authorized to sign on his own authority amendments to
this Agreement which are of routine or technical nature, including extensions of time
deadlines. In the case of deadlines, the cumulative time of extensions granted by the
City Manager shall not exceed eighteen (18) months. Thereafter, City Council approval
of extension shall be required. The City's, including, without limitation, the City
Manager's, consent to any request for the extension of a time deadline shall not be
unreasonably withheld, conditioned, or delayed.
1 of 2
3. An amendment to Exhibit "B" confirming that the Base Amount is set at$352,705 for the
term of the TOT Sharing period per the Hotel acquisition in 2013 and consistent with
Section 4b (Terms Related to Calculation of Tax Sharing):
The above calculation assumes acquisition of Hotel during calendar 2013. Should
acquisition of Hotel occur in a subsequent calendar year, these calculations would
change. The Hotel was acquired in August 2013, thus, the Base Amount is set at
$352,705 for the term of the TOT Sharing period.
The Parties hereby agree to the above.
CITY: OWNER:
CITY OF CATHEDRAL CITY, T ALLIANCE ONE PALM SPRINGS, LLC,
a amu ' ipal corporation a California limited liability corporation
" ate: , 2015 By: T2 Management, LLC
Charles P. McClendon a California limited liability company,
City Manager
By: Date: , 2015
Mike Patel, Manager
2 of 2