Key Updates and Actions for Stakeholders

February 12, 2026

1. Introductions

The meeting commenced with introductions of all attendees. Notably, Robert Mallia, Regional Vice President of Architecture & Construction for The Lifestyle Group at Hyatt, was present as well as Lauri Kibby, the local partner in Selene Palm Springs, and Eran Nornberg, the representative of the New York majority partner of Selene Palm Springs, the owner/developer of the Dream Project. Robert’s role brings critical oversight and expertise to the project, ensuring alignment with Hyatt standards and strategic goals. Eran and Lauri and responsible for the daily activities of the development including oversite of all the consultants and contractors for the project.

2. Project History and Updates

The Dream Hotel project has undergone several phases:

Pre-Covid Construction: Initial groundwork and construction activities began prior to the Covid-19 pandemic, setting the foundation for future progress. Work includes the completion of the foundation work for the hotel structure.
The effect of Covid-19 on the project: All work at the site was stopped due to Force-majeure and financing turmoil.
Post Covid-19 adjustments: Project and program had to be adjusted to correspond to market change and making the project more attractive for financing.
Team Adjustments: Changes in team composition were implemented to address evolving project needs and optimize performance.
General Contractor Selection: Interviews were conducted and Suffolk Construction was chosen as the General Contractor to build the project.
50% Construction Documents (“CD”) were completed and cost review: Following the completion of 50% CD the project cost was evaluated. Due to changes in the economy (including new tariff imposed on construction supply), a rigorous Value Engineering (VE) process was undertaken to reduce construction cost.
Implementing VE changes into CD and create an Interim Gross Maximum Price of construction (“IGMP”): Once completing the VE process the team moved to incorporating all of the changes into the construction documents with a target of March 30th to have fully incorporated the changes so that an IGMP (Interim Guaranteed Maximum Price) can be established and financing discussions can continue

3. Community Concerns and Actions

The project team remains empathetic to community concerns and is committed to ongoing engagement:

Monthly Meetings: Regular meetings are held with community representatives to foster open dialogue and address feedback every 2nd Thursday of the month in the Palm Grove room at the Convention Center.
Attendance: We asked that community members submit questions at info@selenepalmsprings.com and we will endeavor to answer at the monthly meetings.
Email Updates: Timely email communications keep stakeholders informed of progress and actions once construction begins. Major announcements will be posted on the website.
Site Maintenance: The team maintains the project site by ensuring the fence is secure, removing trees and soil as necessary, and performing consistent perimeter cleaning to preserve neighborhood appearance.

4. Ownership Commitment

Ownership is fully committed to the project’s success:

Equity Investment: We have made and continue to make a substantial equity contribution (hundreds of thousands) on a monthly basis to support the project, its consultant and contractors.
Design/Engineering Work: Design and engineering work continues, ensures our project is meets compliance to state and local code.
City Communication: We have ongoing communication with city officials to ensure they are aware of our progress and that we meet the city’s requirements for the project.
Model Room: Ownership is starting the construction of the Model Room and the site investigation which are required in order to start construction.
We are scheduled to submit drawings for permit March 31st and are on target for that submittal date

3. Next Meeting Details

The next meeting is scheduled for March 12th and every month until start of construction on the 2nd Thursday of every month. We will endeavor to bring a different member of our team at each meeting. with the agenda to include updates on construction progress, community engagement, and any outstanding action items. Details regarding time and location will be shared via email to all stakeholders.

Community Meeting Summary

March 12, 2026
Attendees: Lauri Kibby, Eran Nornberg, Bruce Greenfield

The meeting focused on recent project progress and upcoming milestones for the development.

Participants reviewed the work completed over the past several months, including:
(i) the completion of the value engineering (VE) exercise (all VE-related changes have now been incorporated into the project drawings, and the plans will be ready for submission to the City by March 30 to begin the permitting process),
(ii) finalizing the amendment to the agreements with the City, which was successfully negotiated and approved at the City Council meeting on March 11, 2026,
(iii) meetings with the City’s Planning, Building & Safety, and Engineering departments, and
(iv) the replacement of the fence cover that was damaged by recent high winds

Ongoing efforts include further advancement and refinement of the construction and interior drawings, and maintaining the perimeter fencing and exterior condition of the project site (the fencing has been updated and has withstood the most recent wind conditions well). In addition, the team is also currently working on the CC&Rs for the condominium portion of the project, preparations are underway to build out a model room, which will support completion of final construction drawings and future marketing and financing efforts.

Future work includes pursuing the Pink Report in order to establish an interest list for condominium reservations. The project team is also planning to establish a sales office, with the goal of beginning condominium sales in January 2027.

Meeting Summary

April 9, 2026

Overview

The meeting was held on April 9, 2026. Ownership was represented by Eran Nornberg and Lauri Kibby; The City was represented Wayne Olsen. The representatives provided a detailed update and held a Q&A discussion.

Review of Structural Engineering & Existing Conditions

The original structural engineer has completed an evaluation of the existing structure, confirming that it meets requirements and can support full build-out of the project. A formal letter documenting this has been issued and is being uploaded by the architect to the city’s system.
Some minor remedial work is required, including cleaning/sanding corroded rebar, but testing showed that the installed rebar is higher grade and larger than originally specified, giving additional comfort on capacity.
The city is actively reviewing these structural submissions, asking questions, and the project consultants are responding as part of ongoing coordination.

Construction Documents, Contractor & GMP Process

Construction documents were released to the City on March 31, enabling the team to send drawings to the general contractor (Suffolk).
Suffolk is now bidding out the project to subcontractors in order to establish an Interim GMP (IGMP), expected around mid-May.
Once the IGMP is received, the team will prepare and release a financing package (“financing book”) to potential lenders/investors.
A final Guaranteed Maximum Price (GMP) is targeted for August, which will then allow finalization of the overall project budget and execution of finance documents.

Financing Status & Timeline

The full financing commitment has not been secured as of yet, but the consultant has identified financing partners who are interested in participating. Our financing consultant is assembling the capital stack, and various group remains engaged.
There is strong interest from Middle Eastern financing groups (two groups specifically) has been noted for either equity or loan financing.
After the IGMP in mid-May, the project goes to market; lenders begin due diligence, reviewing documents and legal structure while knowing the budget is roughly ±10% of the IGMP estimate.
Once LOIs are issued and signed, the developer must fund a six‑figure due diligence and legal budget, enabling lenders to complete 2–3 months of due diligence, documentation drafting, and legal review.
The GMP is targeted for late August and becomes an exhibit to final loan documents, and execution of loan documents is intended by end of September, so that construction can commence in October.

Schedule & Key Milestones

Target construction starts (mobilization): September/October of this year, assuming financing is secured by July–September milestones.
Hotel opening target: December 2028.
It was noted that the start of construction does not mean that heavy construction will commence but rather early activities will start which include site mobilization as well as the following activities:
- Filling the excavation,
- Setting up site offices and power,
- Remedial work prior to vertical construction.[1]

Project Phasing, Permits & Construction Strategy

The project consists of multiple buildings on approximately eight acres, including:
- Hotel + condo-hotel tower on one shared garage/foundation
- North condominiums (12 units)
- South condominiums along Amado and Caballeros (28 units)
The City has structured the project under three separate permits:
- Hotel + condo-hotel tower (single permit)
- North condominiums (second permit)
- South condominiums (third permit)
All three areas are intended to start construction concurrently, primarily to:
- Optimize concrete crews and trades across buildings in sequence,
- Avoid remobilization costs
- Improve economies of scale

Program: Hotel, Condos, Condo-Hotel & Operations

The project includes:
- A traditional hotel component.
- A condo-hotel
- High-end residential condominiums (north and south buildings) with large units aimed at luxury buyers.
Simultaneous opening: The hotel and all condo components are planned to open together, not in phases, to maintain the pricing power and positioning of the condos and present a fully completed, non-construction-site environment to buyers.

Target Buyer Profile & Market Positioning

The development is positioned as an “oasis in the middle of the city” with extraordinary landscaping, extensive food & beverage (F&B) offerings, multiple bars, workspaces (indoor/outdoor), and a strong art program.

Site Conditions, Fencing & Maintenance

There was discussion of the site fence, including blue Suffolk-branded fencing and concerns about aesthetics, wear, and security (people entering/exiting the site).
Ownership discussed the city’s request for less branding and more decorative treatments, leading to the current solution.
The developer confirmed there is regular site maintenance (fence upkeep and general cleaning), acknowledging wind and sun degrade fence materials over time.
Once the GC fully mobilizes, ongoing site appearance and fence maintenance will be part of the contractor’s daily obligations.

Traffic, Access & Convention Center Coordination

Primary hotel entrance: Alvarado; this is also intended as the construction entrance, with exit on Caballeros, creating a traffic flow across the site from Alvarado → Caballeros.
The Convention Center is planning building renovations and a broader urban planning/streetscape effort between the center and downtown, including more shade and walkability.
It was noted that having hotel construction overlap with some public realm improvements might ultimately be positive if both are completed around the same time.

Land Tenure & Ownership

The land is confirmed to be fee simple, not leasehold

Developer Commitment & Risk/Return Context

The developer highlights that approximately +$50 million has already been invested in the project, noting that delays are costly making every day of delay financially significant so the team is focused on moving the project forward as quickly as possible.
They emphasized a strong personal and team commitment and focus on pushing the project forward.
They acknowledge global uncertainties (COVID, Middle East conflict, climate issues, political changes) but report continuing positive signals from financiers, while noting the Middle East situation has had some effect on financing sentiment.

Political & Macro Commentary (Context, Not Decisions)

There is informal conversation about political uncertainty and global instability impacting financing, with references to war in the Middle East and U.S. politics potentially influencing markets.
These comments are contextual to risk perception rather than specific project actions.

Selene Palm Springs