HomeMy WebLinkAboutContract 1567-1 AA
Cathedral City
May 28, 2014
RE: Amendment No. 1 to Transient Occupancy Tax Sharing Agreement(Doubletree)
Dear Mr. Patel:
This letter serves as Amendment No. 1 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). The Owner
requested that the terms of the Agreement be modified to accommodate ongoing negotiations
between T2 Management, LLC and the landowners and master lessor of the property upon
which the subject hotel is located. This Amendment reflects the City's determination pursuant
to that request.
The City Manager hereby authorizes a deadline extension of six (6) months 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, 2014, 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, 2015. 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.
Note that, in accordance with Section 8q of the Agreement, City Council approval shall be
required for extensions exceeding a cumulative total of more than 6 months or that are neither
routine nor technical in nature.
The Parties hereby agree to the above.
CITY: OWNER:
CITY OF CATHEDRAL CITY, T ALLIANCE ONE PALM SPRINGS, LLC,
a municipal corporation a Calirornia limited liability corporation
By fir,._ ,A, i e! - :(a-s, 2014 By: T2 Management, LLC
Charlie McClendon a California limited liability company,
City Manager It's Manager
By: , Date:Maki 392014
Mik atel, Manager
ORIGINAL
68-700 Avenida Lalo Guerrero,Cathedral City,CA 92234