4 Stalled Hotel Projects In Palm Springs Prompt City Legal Action

PALM SPRINGS, CA — The Palm Springs City Council has authorized the city attorney’s office to proceed with legal action in order to force the owners of four hotels — the Andaz Hotel on Palm Canyon Drive, the Dream Hotel on Amado Road, the Orchid Tree on Belardo Road and the TOVA on North Palm Canyon — to complete their projects, the city announced Friday.

All four hotel projects have stalled, resulting in incompleted projects.

"These properties constitute a nuisance to their neighborhoods and to the community at large. In light of the waning COVID-19 numbers and the return of the tourism industry, the City of Palm Springs expects these owners and developers to see these hotel projects to completion," the city said in a released statement.

The city attorney’s office will be seeking the appointment of a court-ordered receiver. The receiver will be charged by the court with completing the hotels, or demolishing them — whichever is determined to be appropriate, the city said.

The ownership of the properties won't change, but the costs of the receivers and the costs of the completion or demolition will be borne by the property owners themselves, according to the city.

“The City of Palm Springs is always willing to work with our property owners," said Palm Springs Mayor Christy Holstege. "But, at some point, if those property owners do not do what is right for their neighbors and the rest of the City, we are forced to use whatever legal tools are available to us, in order to protect our residents, businesses and visitors.”