The La Quinta City Council approved the long awaited development agreement for the SilverRock public golf course property on Tuesday.
“The City is looking forward to working closely with the developer toward a successful venture for all.”
The City, through its now-defunct Redevelopment Agency, bought the 525 acres in 2002 with the intention of improving the land via development to grow the City’s tax base and address public facility and infrastructure deficiencies.
Over the last 18 months, the City has negotiated with the developer to ensure this development creates long-term revenue for the City, maintains the level of golf play for residents, and provides for new recreational opportunities for the community.
The development agreement requires City investment of an estimated $20.1 million in transient occupancy tax revenue rebate to SilverRock Development Company, LLC. The rebate is limited to TOT generated from the luxury and lifestyle hotels and only during the first 15 years of the respective hotel operation.
TOT revenue sharing will end and the City will receive the full amount.
Over the same 15-year period, it is projected that the City will receive $52.9 million in fee and tax revenue: $5,200,000 in development impact fee revenue, $38,700,000 of TOT revenue, $6,000,000 of sales tax revenue, and $3,000,000 of property tax revenue.
Source: KMIR News