RANCHO MIRAGE, Calif. - Construction will soon resume on the long stalled Ritz Carlton Hotel in Rancho Mirage. The city has reached terms on a final agreement with the developer.
The hang up had been about $60 million needed to complete the project, money that will now be available with new investor Kam Sang Company of Arcadia entering the picture.
Four years ago renovation work on the hotel came to a halt, when the original developer, the Gencom Group, lost its backing when Lehman Brothers went bankrupt.
The city extended a revenue sharing agreement with the developer six times since July of 2011 while the company tried to find funding. Now, the city's patience has paid off.
"It will be the first five star hotel in Rancho Mirage and the first one in the valley and it will be a big deal from a monetary standpoint," said Rancho Mirage City Council Member, Richard Kite. "Rancho Mirage pretty much depends on bed tax and sales tax to operate the city. This will be a major plus for our bed tax."
Since the Ritz Carlton went dormant six years ago when construction began, the city estimates it has lost more than $1 million a year in bed taxes.
According to the agreement, the resort will open no later than Oct. 31 of next year.