Dream Hotel project placed in default after missing key deadline

PALM SPRINGS, Calif. — The long-delayed Dream Hotel project is facing another setback after developers missed a key deadline set by the Palm Springs City Council.

The project returned to the council Wednesday after the developer failed to submit a Guaranteed Maximum Price (GMP) for construction by the July 30 deadline. The GMP is a key step in determining the project's construction cost and readiness to move forward.

The developer was placed in default under the terms of a March agreement. However, city leaders said developers still plan to begin construction by October 1.

The proposed hotel is planned for the northwest corner of Avenida Caballeros and East Amado Road. The project has been in the works in some form since 2007.

Council members also raised concerns about ongoing complaints regarding the site's fencing and landscaping. The March agreement requires the developer to maintain the property during pre-construction. City officials said they may have to make repairs themselves and fine the developer if the issues continue.

A community meeting is scheduled for October 8, when the developer is expected to provide an update on the project's latest plans and timeline.