Palm Springs issues default notice to Orchid Tree Hotel developer over missed milestones

The City of Palm Springs has issued a notice of default to the developer of the long-stalled Orchid Tree Hotel project, citing failure to meet milestones required under an operations covenant agreement approved in April.

City Attorney Jeff Ballinger sent the notice on Friday to Richard Weintraub, general manager of the three LLCs formed to complete the project, informing him of a “Missed Milestone Default” under the latest agreement between Weintraub and the city.

According to the notice, none of three key milestones were satisfied by the Aug. 23 deadline: A planning application was received prior to the deadline, but it was incomplete as outlined in a letter from the city’s principal planner dated Sept. 18; Application fees have not been paid despite an invoice dated Sept. 4; and there is also no evidence of any stabilization of structures on the site.

“Planning staff will be reaching out to Mr. Weintraub to discuss his application,” a city spokesperson said Tuesday afternoon. He has 30 days from the date of the notice to fully satisfy the three conditions.

The 3.6-acre property at West Baristo and South Belardo roads has sat vacant for 17 years. In April, the City Council approved the latest agreement aimed at moving the project forward, with stricter beautification requirements and a revised timeline.

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

The agreement includes a tax incentive offering 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 for the incentive, the developer must meet a series of deadlines. The project must be fully completed by the end of 2027.​​​​​​​​​​​​​​​​

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