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Old May 17th, 2008, 12:37 PM
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diegodawn diegodawn is offline
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Join Date: May 2008
Location: California
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Default Development

Mayor Steve Pougnet: Hotel projects are advancing
Developer behind Hard Rock working on three other projects in city, Pougnet says
Stefanie Frith The Desert Sun May 7, 2008
Up to three more hotels are planned by the developers of the Hard Rock Hotel, Palm Springs Mayor Steve Pougnet said Tuesday.

Nexus Development Co., which is developing the Hard Rock, is working on plans for the additional hotels, Pougnet told The Desert Sun after speaking to Main Street Palm Springs, the downtown and uptown merchants association.
A 10-acre parcel at Tahquitz Canyon Way and Hermosa Drive, near the Courtyard by Marriott hotel could be home to two of them, Pougnet said. Nexus submitted plans at City Hall last summer for a 500-room, nine-story hotel there, but Pougnet said they are now working on plans for two hotels that would share a parking lot and stand three to four stories high.
"We are working on a hotel project there," said Rich Meaney of Nexus. "We haven't submitted anything to the city."
Pougnet said Nexus also is thinking of dumping approved plans for 84 condos called Delano near the Palm Springs Convention Center and developing a one-to two-story hotel instead.
Meaney said the idea is "premature" and low on the list of hotels the company is developing in Palm Springs.
In related economic news, Pougnet told the group of about 40 at the Hyatt Regency Suites that the chic Mondrian hotel now has its term sheet.
A term sheet is a funding offer from investors. The document shows how financing could come together. It is similar to a letter of intent and is non-binding.
"A (term sheet) is not an easy feat in today's market," Pougnet said.
He said those behind the 400-room Mondrian might throw a party soon to "show the public they have some momentum."
Pougnet also said that major hotel and retail projects are still on track, despite concerns from some that they are struggling in the sluggish economy.
And a lawsuit against the 500-room Hard Rock Hotel has been settled. That hotel is also no longer a condo-hotel and would be almost 100 percent hotel rooms, Pougnet said.
Across California, the number of hotel rooms under construction jumped 24 percent in 2007 from 2006, the California New Hotel Development Survey shows.
To help these two hotels, as well as future new hotels and hotel renovations, the city is offering tax rebates, Pougnet said.
For example, the Hard Rock Hotel will get back 50 percent of its transient occupancy taxes for the first 20 years.
Bob Bogard, with the Palm Springs Art Museum, asked the mayor after his presentation how the city might keep downtown organized when the Mondrian, Hard Rock Hotel, Spa Resort Hotel and Casino and the Desert Fashion Plaza are under construction.
"How will you help tourists?" Bogard asked.
Pougnet said the city has been waiting so long for these projects to revitalize downtown, he would welcome the construction.
"I want to have some disruption in downtown," Pougnet said.

outinthecountry wrote:
Tourists are NOT going to come to PS if downtown is a major construction zone for several years!!! The
Mayor is a fool or an idiot or BOTH. I just read in the DS last week that hotel occupancy is down..and it will get worse with the recession and rising gas prices. Wake up and smell the coffee Steve.
5/7/2008 7:46:36 AM

echidna wrote:
Boy, Rich Meaney sure sounds like a dynamic guy! What a confidence maker he is.
Term Sheet - Shmerm Sheet.
5/7/2008 6:20:43 AM

girlyman wrote:
The greatest disruption we can have is recalling Steve "Mr. Foat" Pougnet, Ginny Foat and little Ricky Foat. As for the hotels, dream on! We're in a depression and most of the hotels in town are discounted and empty. Pougnet is a joke!
5/7/2008 6:00:05 AM
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