October 1 arrives with the Dream Hotel restart in doubt
The amended city agreement set today as the date construction would resume on the long-stalled downtown project. Two prior milestones are already missed, and a financing deadline has arrived unresolved.
PALM SPRINGS: October 1 was supposed to be the day construction restarted on the long-delayed Dream Hotel in downtown Palm Springs. The date arrives with the project developer already in default after missing two earlier deadlines and with the financing deadline from its city agreement now upon it.
Under an amended agreement approved by the Palm Springs City Council in March, the developer agreed to hit nine milestones: completing a guaranteed maximum price on construction by July 30, wrapping financing by Sept. 30, restarting construction on Oct. 1 and finishing the 150 to 160-room boutique hotel by Dec. 30, 2028.
The developer, Selene, missed both the April 30 model-room deadline and the July 30 deadline for the guaranteed maximum price, prompting the council on Sept. 9 to direct staff to draft a new agreement with penalties. A new set of construction drawings is expected Oct. 15.
This isn't just one milestone. This is 20 years of missed updates and missed opportunities.
Developer still says it can build
Despite the default, the developer continues to say construction can begin Oct. 1, with completion still projected for Dec. 30, 2028. Assistant City Manager Flinn Fagg told the council at the Sept. 9 meeting that the project remained on schedule to restart construction Oct. 1 and that the developer had completed construction drawings and submitted them to the city.
This isn't just one milestone. This is 20 years of missed updates and missed opportunities.Councilmember Ron deHarte, at the Sept. 9 council meeting, via the Desert Sun
What went wrong
City staff said the July 30 guaranteed maximum price deadline slipped after the project changed from residential condominiums to hotel condominiums, which prompted the city and the fire marshal to reject the original stairway plans and require a redesign. The guaranteed maximum price is now expected in March 2027.
The partially built foundation sits behind chain-link fencing, and neighbors near the convention center have told the council they are angry at the slow pace of development. The project has been in the works since 2007, and the current developer bought the site in 2016.
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