City Council approves yet another Orchid Tree Hotel agreement amid resident frustration

It was another year and another agreement for the developer of the long-stalled Orchid Tree Hotel at Wednesday evening’s Palm Springs City Council meeting, and another chance for residents who live near the project site to share their frustrations.

In the end, the council approved a hotel operations covenant agreement aimed at finally moving the project forward — with stricter beautification requirements and a revised project timeline.

The 3.6-acre property at West Baristo and South Belardo roads has sat vacant for 17 years, marred by repeated financial setbacks and missed deadlines. Despite past agreements between the city and developer Richard Weintraub, residents say the site remains an eyesore — overrun with trash, graffiti, and red ant infestations.

The newly approved agreement seeks to change that. It includes a schedule of performance milestones and immediate site improvements, addressing what many residents at the meeting described as “demolition by neglect.”

“For 17 years we have looked at a burnt-out building, and it’s an eyesore in our city,” said Tempe Essell, treasurer of the nearby Historic Tennis Club Neighborhood organization.

As part of the agreement, the developer must submit a beautification plan within 10 days. Once approved, that plan must be implemented within 30 days. Improvements include planting 12 to 15 mature trees, enhancing the appearance around the property’s perimeter, upgrading fence screening, and instituting monthly pest control.

Mayor Ron deHarte noted that improving the site’s appearance during construction would help restore some dignity to the neighborhood. He also added provisions for overnight security from 7 p.m. to 7 a.m. and a 48-hour graffiti removal response requirement.

The current plan calls for the lot to be transformed into a 72-room luxury hotel, featuring restored historic bungalows, 16 residential condominiums, spa and gym facilities, a pool, and an outdoor cafe and bar.

While some neighbors welcomed the development, several expressed skepticism that the new agreement would yield results.

Mark Fichandler, a 20-year resident of the neighborhood, said that while he still supports the project, he believes the agreement “lacks teeth.” Other residents echoed that concern, pushing for a financial guarantee — such as a $1 million to $2 million deposit — if key milestones aren’t met.

Weintraub rejected the deposit proposal during the meeting, calling it “not financially palatable or possible.” However, he did agree to other city requirements, including the beautification measures and a performance bond equal to the full construction cost, which must be posted before building permits are issued.

Wayne Olson, the city’s chief economic development officer, said the bond serves as a safeguard, ensuring the city isn’t left with an unfinished project if the developer falls short.

The agreement also includes a tax incentive: a 75% rebate of transient occupancy taxes back to the hotel owner for 30 years or until $50 million is rebated — whichever comes first. To qualify, the developer must meet a series of deadlines, starting with a planning application due by Aug. 23 of this year.

The council approved the agreement with a revised timeline that incorporates all beautification measures, security requirements, and a new milestone: the developer must submit construction drawings that are at least 50% complete within five months of receiving entitlements. The project must be fully completed by the end of 2027.

---