Public hearing on operating covenant for Alcazar Palm Springs scheduled for May 12, 2026.

NOTICE IS HEREBY GIVEN that on May 12, 2026, at 5:30 p.m. or as soon thereafter as the matter may be heard, the City Council of the City of Palm Springs (“City”) will meet and hold a public hearing to consider the City’s entry into an Operating Covenant (“Covenant”) with Alcazar Palm Springs , LLC, a California limited liability company (“Owner”). The Covenant to be considered is an agreement to be recorded in the County’s official records, entered pursuant to the City’s Hotel Operations Incentive Program (“Program”), codified in Chapter 5.26 of the Palm Springs Municipal Code, and Section 300 of the Charter of the City of Palm Springs for the Alcazar Palm Springs located at 622 North Palm Canyon Drive, Palm Springs, CA 92262.
There will be in-person public access to the meeting location. View the City Council meeting live at the City’s website at www.palmspringsca.gov/psctv, YouTube, or Channel 17 (Spectrum).
The following information about the proposed Covenant is provided pursuant to Section 53083(a) of the California Government Code.
For Alcazar Palm Springs the information is as follows:
The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.
Operator is a single purpose entity domiciled in the State of California doing business from 622 North Palm Canyon Drive, Palm Springs, CA 92262. The Agent for service of process to Operator is Alcazar Palm Springs, LLC, doing business at 622 North Palm Canyon Drive, Palm Springs, CA 92262.
The start and end dates and schedule, if applicable, for the economic development subsidy.
If approved, first TOT reimbursements are anticipated by early 2027, and continue for ten (10) years until 2037, or until the totality of payments totaling $219,601 have been completed, which occurs first.
A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.
The Program provides operating assistance to hotels in the form of a rebate of adjusted transient occupancy tax (“Adjusted TOT”) at a fixed level for existing hotels that meet Program criteria. The City Council has adopted the Phase II Renovation Project Program for improvement projects constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room, including this project.
Per the Program, the existing hotel project planned by Operator is rebated 50% of Adjusted TOT for ten (10) years or until the rebate totals $219,601, whichever comes first. For purposes of the Covenant, an existing Hotel is defined as a property improvement project constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room. The renovation project must commence no more than twelve months after the City’s execution of the Operation Covenant Agreement and be completed no later than December 31, 2025.
The public funds to be spent if the City approves this Covenant will be the staff costs of administration, and statutorily mandated reporting through the term of the Program rebate/subsidy
A statement of the public purposes for the economic development subsidy.
The City Council established the incentive program for the operation and maintenance of quality and first-class hotel facilities which enhance the tourist and travel experience for visitors to the City of Palm Springs, maximize the use of the City’s convention center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. In the implementation of this program, the City Council determined: (1) The general welfare and material wellbeing of the residents of the City of Palm Springs depend in large measure upon the growth and expansion of the tourism and travel industries in the City; (2) The operation, maintenance, and expansion of the inventory of quality hotels and first class hotels in the City of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the City, ensure utilization of the City’s convention center, provide employment opportunities for the residents of the City, and promote and enhance the economy of the City; (3) It is in the best interest of the City of Palm Springs to induce and encourage the operation and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the City’s general fund which supports the public services that the City provides its residents; and (4) The authority granted and the purposes to be accomplished are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of quality and first class hotels is of paramount importance to the City of Palm Springs, its residents, and businesses. (Ord. 1730 § 2, 2008)
No less than five thousand dollars ($5,000) per room, or if the project includes any common area or amenity, or any other area for guest use at the hotel, the amount of the investment shall not be less than the amount, if any, invested in rooms, added to the total number of rooms at the hotel that will exist at the end of the project multiplied by five thousand dollars ($5,000).
The Project would help beautify the neighborhood through and implement energy saving and sustainable components.
Projected tax revenue to the local agency as a result of the economic development subsidy.
Per the Program, the City will receive 50% of Adjusted TOT for ten (10) years or until the rebate to the Operator totals $219,601 whichever comes first. After ten (10) years the City will receive 100% of the TOT revenue (Adjusted TOT plus Unadjusted TOT).
Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
The Operator anticipates increasing employment by zero (0) full-time positions and zero (0) part-time positions, for a total of 0 FTEs. The estimated annual payroll for employees and contracted maintenance services is estimated to be $524,213.51.
All interested persons are invited to attend this public hearing and express opinions upon the items listed above. The full text of the Covenant will be available for review at Palm Springs City Hall. You may provide oral comments at the in-person hearing. Alternatively, you may provide oral comments by teleconference (remotely) by following instructions on the posted agenda. Agendas are available at least 72 hours in advance of the meeting by visiting www.palmspringsca.gov/agendas
Written comments may be submitted to the City Council by the Online Public Comment Form at www.palmspringsca.gov or letter to the address below. Transmittal prior to the start of the meeting is required. Any correspondence received during or after the meeting will be distributed to the City Council as soon as practicable and retained for the official record.
Further information on these items may be obtained at the City of Palm Springs, Attn: Wayne Olson, Chief Economic Development Officer, (760) 322-8358.
TO BE PUBLISHED: Desert Sun, May 1, 2026
POSTED AT CITY HALL AND ON CITY WEB SITE: May 1, 2026
/s/ Brenda Pree
Brenda Pree
Palm Springs City Clerk
5/1/2026