JW Marriott Desert Springs Resort gets $1M deal

Read the Original Article: JW Marriott Desert Springs Resort gets $1M deal

Written by Blake Herzog, The Desert Sun

PALM DESERT — The Palm Desert City Council voted 3-2 Thursday to approve the city’s first tax rebate deal, which is worth $1 million to the J.W. Marriott Desert Springs Resort.

The rebate will help the hotel finance the construction of a water park.

Mayor Bob Spiegel and Mayor Pro Tem Bill Kroonen supported the proposal, as did Councilwoman Jan Harnik.

“I think it’s these kinds of measures that are going to be the salvation of our budget in the future,” Kroonen said, referring to the city’s impending loss of its redevelopment agency.

Councilwomen Cindy Finerty and Jean Benson dissented, saying such a plan would set a precedent and the city couldn’t afford to share hotel taxes with private developers.

“I think putting a water park out there is tremendous,” Benson said. “I’d be in favor of maybe reducing some of the fees to get that done, but I can’t see ever starting to give back our TOT (transient occupancy tax).”

How it would work is, after the water park opens the hotel would keep whatever transient occupancy tax it earns above what it would be expected to if the park had not been built, until that figure reaches $1 million.

Marriott General Manager Ken Schwartz said this should take about five years.

“I’m not looking at it as giving you any less than we ever gave you” in hotel tax, Schwartz said.

He predicts a 3-percent increase in overall annual occupancy rates with the water park, and that it would be of particular help during the valley’s off-season, drawing vacationing young families interested in trying out new amenities.

Schwartz said the park will include a “giant tower with two to three slides,” play areas for toddlers and older children, the desert’s first simulated surfing pool, and indoor game and arts and crafts areas.

It would be built around the Springs Pool, which is southeast of the hotel’s main lobby, and be open to hotel guests only.

The Rancho Las Palmas Resort in Rancho Mirage opened a family oriented water park, Splashtopia, in 2007, the same year the La Quinta Resort was approved for a similar “signature pool” concept. But after winning a court battle with neighbors over the plan, new owners dropped the idea.

Spiegel said the water park would help the Marriott compete with Rancho Las Palmas, and other cities that have entered into tax rebate agreements — such as Palm Springs — and are seeing experiencing faster growth as a result of the revitalization of their tourist sectors.

“We can’t sit back and lose money and that’s what’s happening in our hotel occupancy right now,” he said.

No members of the public spoke against the proposal during the meeting, though the city received four emails opposing it before the meeting.

“Why would we spend money to undercut our new Aquatic Center?” asked resident Joan Beasley, referring to the $7.7 million complex opened near City Hall last summer.

Schwartz said the city contribution would be a major selling point with the investment committee of the resort’s Washington D.C.- based owner, Host Hotels.

In an interview after the meeting, he said he would know next week when the project would be submitted to that committee for approval.

He added that he was “very excited” about the council vote.

Blake Herzog covers Palm Desert and Rancho Mirage for The Desert Sun, and can be reached at (760) 778-4757 or blake.herzog@thedesertsun.com .