Marriott Seeks $1 Million From City For Water Park

The in Palm Desert is asking for $1 million from the city of Palm Desert toward a new water park in the hopes of attracting more financing for the proposed $9 million project.

The Palm Desert City Council will consider the request at its 4 p.m. Thursday meeting in the Council Chamber.

"We believe this project is vital to the future success of Desert Springs as it will allow us to become the predominant player in the leisure market," said Ken Schwartz, general manager of the Desert Springs resort, in a letter dated Dec. 12, 2011.

Schwartz wrote that he believes the city's contribution of $1 million would help attract other financing for the project.

The water park is expected to generate up to $11.5 million in additional revenue over five years, according to the letter.

City Manager John Wohlmuth wrote in a staff report that the Marriott has never asked the city for a loan before, and the resort's transient occupany tax (TOT) is the largest revenue generator for the city's general fund.

The first proposal calls for a TOT rebate after the water park opens. The second option calls for a ballot proposal that would increase the city's TOT rate from 9 percent to 11 percent.

The 2 percent hike would generate about $1.6 million in extra revenue, enough to cover the Marriott's request. The ballot measure would cost the city $60,000 and would be put on the ballot for the March, June or November 2013 election.

The third proposal calls on the city to take $1 million from the city's general fund, but that contribution would not be made until the water park was up and running, according to the staff report.