Rancho Mirage Ritz-Carlton Hotel Gets More Time
The Rancho Mirage City Council has given the Ritz-Carlton Hotel in Rancho Mirage another extension of time on their loan agreement. The council voted 5-0 last week to extend the $20 million loan agreement with the hotel's owners, Rancho California Investments, by one month. Rancho California insists that the city's loan agreement is needed in order to secure a $50 million construction loan that is needed to complete the work on the Ritz-Carlton.
The luxury resort on 39 acres overlooking the valley floor first opened as a Ritz-Carlton in 1989. It was then sold and called The Lodge at Rancho Mirage in 2001. GenCom bought The Lodge and closed it in 2006 with plans to renovate the hotel and convert it back to a Ritz-Carlton. The project was backed by Lehmann Brothers until they collapsed in September of 2008, which resulted in all construction on the hotel coming to a brunt stop. GenCom then brought in an Argentine group to form Rancho California Investments. The group has been working on securing the financing to compete the construction project. The proposed completion date has been pushed back several times at which time there is no definite date.
Everyone would like to see the hotel open as it would bring an additional 300 - 350 jobs for the Coachella Valley in addition to bed taxes the hotel would generate. The Ritz-Carlton will bring more than just tourist to the Coachella Valley, it will bring in tax dollars and create jobs, which is extremely important in this frail economy.
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