HomeMy WebLinkAboutZOA 14-81 TIMESHARES 1983 ERWIN & ANDERHOLT
A PROFESSIONAL LAW CORPORATION
DAVID J.ERWIN
J.JOHN ANDERHOLT 74-090 EL PASEO TELEPHONE
JEFFERY S.R.PATTERSON POST OFFICE BOX 789 AREA CODE 619
MICHAEL J.ANDELSON 566-28II
DOUGLAS S.PHILLIPS PALM DESERT,CALIFORNIA 92261
E A.SINDO NI G F
REGO GOR RY A.SWNIAN February 3, 1983
N EOMA R.KNITTER
CHARLES M.ELLIS
LANTSON E.ELDRED
JONATHAN S.LANOAU ` L/
Mr. Frank Allen
City of Palm Desert
P. O. Box 1977
Palm Desert, California 92261
RE: TIME SHARE UNITS
Dear Frank:
Enclosed you will find the ordinance which amends
Section 25. 100.060 of the Code of the City of Palm Desert
relating to time share units, which will bring us into
conformity with Section 11004.5 of the Business and
Professions Code.
Please deliver the ordinance to Sheila to be
placed on the agenda.
Your v r truly,
f I
AVID ERWIN
DJE: st
I
f
ORDINANCE NO. 329
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF PALM DESERT, CALIFORNIA, AMENDING
SECTION 25. 100.060 OF THE CODE OF THE
CITY OF PALM DESERT RELATING TO TIME SHARE
UNITS.
The City Council of the City of Palm Desert,
California, DOES HEREBY ORDAIN as follows:
SECTION 1: That Section 25. 100. 060 of the Code of
the City of Palm Desert, be and the same is hereby amended
to read as follows:
"25. 100. 060. Minimum Number of Units in a
Time Share Development.
The minimum number of units in a "time share
project" shall be twelve (12) . "
SECTION 2 : The City Clerk shall certify to the
passage and adoption of this ordinance and shall cause the
' same to be published once in The Palm Desert Post, a
newspaper of general circulation, printed, published and
circulated within the City of Palm Desert and the same shall
be in full force and effect thirty (30) days after its
adoption.
PASSED, APPROVED and :ADOPTED this day of
1983, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROMEO PULUQI , Mayor
City of Palm Desert, California
ATTEST:
SHEILA R. GILLIGAN, City Clerk
City of Palm Desert, California
c
_. � aim
ORDINANCE NO. 280
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA, AMENDING SECTIONS
OF CHAPTER 3.28 (TRANSIENT OCCUPANCY TAX) AND
ADDING CHAPTER 25.100 (TIME-SHARING) TO THE
MUNICIPAL CODE.
CASE NO ZOA 14-81
WHEREAS, the City Council of the City of Palm Desert, California, did on the 3rd
day of December, 1981, hold a duly noticed Public Hearing, to consider amending
sections of Chapter 3.28 (Transient Occupancy Tax) and adding Chapter 25.100 (Time-
Sharing) to the Municipal Code; and
WHEREAS, THE Planning Commission, by Resolution No. 758 has recommended
approval; and,
WHEREAS, said application has complied with the requirements of the "City of
Palm Desert Procedures to Implement the California Environmental Quality Act,
Resolution No. 80-89", in that the Director of Environmental Services has determined the
project is a Class 5 Categorical Exemption; and,
WHEREAS, at said Public Hearing, upon hearing and considering all testimony and
arguments, if any, of all persons desiring to be heard, said City Council did find the
following facts and reasons to exist to approve the addition of Chapter 25.100 (Time-
Sharing) to the Zoning Ordinance Text:
1. That the addition to the Zoning Ordinance Text is consistent
with the objectives of the Zoning Ordinance.
2. That the addition to the Zoning Ordinance Text is consistent
with the adopted General Plan.
3. That the addition to the Zoning Ordinance Text would better
serve the public health, safety, and general welfare, than the
current regulations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert, as follows:
1. That the above recitations are true and correct and constitute
the considerations of the Council in this case.
2. That it does hereby approve the Municipal Code Amendments, as
provided in the attached exhibit, labeled Exhibit "A", to amend
Municipal Code Section 3.28, and add Section 25.100.
3. The City Clerk is directed to publish this Ordinance once in the
Palm Desert Post, a newspaper of general circulation, published
and circulated in the City of Palm Desert, and shall certify to
the passage of adoption of this Ordinance, and the same shall be
in full force and effect thirty (30) days after its adoption.
PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert City
Council, held on this I7th day of December , 1921 by the following vote to wit:
AYES: McPherson, Newbrander, Puluqi , Snyder & Nilson
NOES: None
a
ABSENT: None
ABSTAIN: None . /
S W, SON, Mayor
TEST:
SHEILA R. GILLI , City Cie
City of Palm Desert, Californi
/pa
ORDINANCE NO. 280 Page Two
EXHIBIT "A"
SECTION 1: Amendment. That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
s
"3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel" means any structure, or any portion of any structure, which is
occupied or intended or designed for use or occupancy by transients, including, but not
limited to dwelling, lodging or sleeping purposes, and includes any hotel, lodging, house,
roominghouse, apartment house, time-share project or facility, dormitory, public or
private club, mobile home or house trailer at a fixed location, as permitted by Section
7281 of the Revenue and Taxation Code of the State, or other similar structure or portion
thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement to the
use or possession, of any hotel rooms, rooms or any portion thereof offered for rent for
dwelling, lodging or sleeping purposes regardless of the purpose for which such rooms are
rented or provided.
C. "Operator" means the person who is proprietor of the hotel whether in the
capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-share project
or facility manager or operator, or any other capacity. Where the operator performs his or
its functions through a managing agent of any type or character, the managing agent shall
also be deemed an operator for the purpose of this chapter, and shall have jointly and
severally the same duties and liabilities as his principal. Compliance with the provisions of
this chapter by either the principal or the managing agent shall, however, be considered to
be compliance by both.
a D. "Rent" means the consideration charged or chargeable to the tenant or
person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods, labor or otherwise, including tfie full value of receipts, cash,
credits, property, or service of any nature whatsoever. "Rent may have been or may be,
payable prior to or following (in whole or in part) the occupancy to which it is
attributable, and may have been paid in whole or in part in advance on a long term basis,
such as in a time-share project or similar arrangement. It is not the intent of this section
to make the operator liable for the tax on uncollected rent. However, uncollected rent
must be reported.
E. "Tax Administrator" means the director of finance, or such other individual
as may be designated by the City Council.
F. "Time-share Occupancy" means occupancy related to the situation wherein
a purchaser receives the right or entitlement in perpetuity, for life, or for a term of years
or other extended term to the recurrent exclusive use or occupancy of a lotparcel, unit,
rooms , hotel or portion thereof, or segment of real property, annually or on some other
seasonal or periodic basis, for a period of time that has been or will be allotted from the
use or occupancy periods into which the time-share project which is involved has been
divided. The said right or entitlement to occu anc ma attach in advance to a specific
lot, parcel, unit, rooms , or portion of a hotel, or segment of real property, or may
involve designation or selection of the same at a future time or times.
G. "Transient" means any person who exercises occupancy or is entitled to
ocupancy by reason of concession, permit, right of access, license, time-share
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days. Any
such person so occupying space in a hotel shall be deemed to be a transient until the
period of thirty days has expired. Unless days of ocupancy or entitlement to occupancy by
one person are consecutive without any break, then prior or subsequent periods of such
occupancy or entitlement to occupancy shall not be counted when determining whether a
period exceeds the stated thirty consecutive days. In determining whether a person is a
transient, uninterrupted periods of time extending both prior and subsequent to November
26, 1973, may be considered. (Ord. 134 SS1, 2, 1976; Ord. 6 S2, 1973).
SECTION 2: Amendment. That Section 3.28.030 of. the_Code of theCity of
Palm Desert, California, is hereby amended to read as follows:
113.28.030 Tax Imposed. For the privilege of occupancy in any hotel, each
transient is subject to and shall pay a tax in the amount of six percent of the rent charged
by the operator or otherwise payable by the transient. The tax constitutes a debt owed by
the transient to the City which is extinguished only by payment to the operator or to the
City.
ORDINANCE NO. 280 Page Three
"3.28.030 Tax Imposed. (Continued) For purposes of this section, the rent
deemed payable on account of time-share occupancy by a transient shall be the rental
value of the unit or rooms which accommodated such occupancy, which rental value shall
be com uted by determinin the rorata share of the total purchase rice of the time-
share ri ht or entitlement whether or not involvingan estate or an ownershipin real
property which share is allocable to the period of transient occupancy currently involved,
and adding thereto the total amount of any and all fees, assessments, charges and
expenses charged by the operator as attributable to the time-share occupancy of the
transient by whatever name such fees, assessments, charges or expenses may be
denominated, whether "occupying fee", "maintenance or operations charge", "Per diem
fee", "management fee" or like name or otherwise. In making the computation referred to
above of the prorata share of the total puchase price, in any case wherein the time-share
right or entitlement is in perpetuity or for life or otherwise not for a definite or
ascertainable term, such proration shall be made upon an assumed term of forty years.
The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If
the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due when the transient ceases to occupy space in the
hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax
administrator may require that such tax shall be paid directly to the tax administrator.
Tax on occupancies in exchange for services of any kind is due and payable to the City by
the operator, the amount of tax being determined on the basis of six percent of the
current rental value of the accommodations furnished. (Ord. 6 S3, 1973):'
SECTION 3: Addition. That Chapter 25.100 is hereby added to the Code of the
City of Palm Desert, to read as follows:
"CHAPTER 25.100
TIME-SHARE PROJECTS
25.100.010 Defined. As used in this Chapter, time-share project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of years,
to the recurrent, exclusive use or occupancy of a lot, parcel, unit, room(s), or segment of
real property, annually or on some other seasonal or periodic basis, for a period of time
that has been or will be allotted from the use or occupancy periods into which the project
has been divided and shall include, but not limited to time-share estate, interval
ownership, vacation license, vacation lease, club membership, time-share use, and
hotel/condominium.
25.100.020 Permitted Zones. A time-share project shall be permitted only in
the Planned Commercial Resort (PC-4 zone, when developed in conjunction with a Hotel
or General Commercial (C-1) zone, and then only if and when a Conditional Use Permit
has been obtained therefor from the Planning Commission in accordance with Chapter
25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition to
the information required by Section 25.72.020, an applicant for a Conditional Use Permit
approval involving a time-share project shall submit in the application at least the
following information:
1. Copies of documents and information required pursuant to Article 12.2
of the California Administrative Code, Section 2810 wherein the
requirements for a "substantially complete" application for a final
subdivision public report are enumerated.
2. A description of the means proposed to be employed to properly and
effectively collect and remit to the City the transient occupancy taxes _ J
which will become due and payable from time to time in the future.
3. In the event an existing condominium project is proposed to be converted
to a whole or partial time-share project, a verified description or
statement of the number and percentage of the current condominium
owners desiring or consenting to the proposed conversion of some or all
of the units to a time-share basis. Also in such instance there shall be
submitted a verified statement of the number and percentage of owners
who have received notification, either personally or by receipted
ORDINANCE NO. 280 Page Four
certified W.S. Mail that aplication to so convert the project would be
submitted to the Commission together with when the City staff and the
Commission would consider such application.
4. In the case of a new mixed project (ie: Time-sharing-
condominium/rental) a description of the means proposed to be employed
to disclose the number and location of all time-share units within the
project.
{ 5. Description of time periods, types of units, and which units are in the
time-share program (if less than all), and the length of time each of the
units are committed to the time-share program.
25.100.040 Conditions of Approval. The Planning Commission may grant a
Conditional Use Permit for "Time-share" subject to conditions as set forth in Section
25.72.060.
25.100.050 Findings. Prior to the granting of a Conditional Use Permit for
"Time-share" the Planning Commission shall determine that the findings delineated in
Section 25.72.070 are met.
25.100.060 Minimum number of Units in a Time-share Development. The
minimum number of units in a "time-share" project shall be twenty 20 .
25.100.070 Development Standards For Time-Share Development. "Time-
Share" Developments shall be designed to conform to the standards for hotel
developments in the zone in which the property is located.
25.100.080 Transient Occupancy Tax Applicable. All time-share projects shall
be subject to the provisions of the City's Transient Occupancy Tax Ordinance.
a 25.100.010 Exceptions. This Chapter is not applicable to those projects which
applications for approval from the State Department of Real Estate have been filed prior
to December 4, 1980, or projects which the City has approved prior to December 4, 1980.
_ N
2IOTICE AIM r..TF0MIATI\M DIGEST
OF PROPOSED CIMMS 21 THE REGMATI!Y.iS
OF TIC: RCAL ESTATE OOMISSIOIIFR .
Deretrber 23, 1980
Pursuant to the authority vested in him by Sections 10080, 10131.6,
10170.4, 10249.2 and 11001 of the Business and Professions Code, to iranle-
rrnt, interpret or rake specific Sections 10131.6, 10170.4, 10249.11, 11000,
11010, 11010.2, 11012, 11013.2, 11013.4, .11018, 11018.5 of the Business
and Professions Coc+e, DAVID II. MX, Real Estate Cmmissioner of the State
of California, proposes to adopt, amend or repeal n gulations in Chapter 6,
Title 10, California Administrative Code, as described lx lao:
Please note that items 1 through 30 propose the adoption of titter-share subdivision
regulations to cmplemnt the time-share lecislation effective January 1,
1981. These regulations and item 31 and 34 are to becrx*e effective as pro-
s� vided under Section 11346.2 of the Government Code on or. about April. 28, 1981.
The remaining changes, items 32 and 33, are to become effective on July 1, 1981.
1. lmiend Section 2790.7 - Chapter 601, Statutes of 1980, arend-s=-
Section 10249.3 and adds Section 10249.11 of the Business and
Professions Code to include time share uses as out-of-state
subdivision offerings. This arendment tmuld conform this
section to the provisions of the new law.
2. Adopt Section 2810 - Defines "substantially complete" subdivision
public report application for purposes of Chapter 1152, Statutes
of 1980.
3. Adopt Section 2810.1 - Specifies the regulatio s in Article 12
applica151e to tires-share projects. F ,
4. Adopt Section 2810.2 - Requires applicant for tier:-share pi:blic
report to present evidence of habitability of or financial abilitl?
to oum?lete the project, sufficient property interest in project
to allow its omg)letion, and pen_issibilitli of - -oject tinder
local ordinance, if any.
5. Adopt Section 2810.3 - Prescribes nurchase rnnev handling r&mirc.-
ments in connection with tine-share offerings.
6. Adopt Section 2810.4 - Specifies conditions for the addition of
a duelling unit to a tire-share project.
7. Adopt Section 2810.5 - Prescribes when tiro-share offerings with
dt%Ellina units both in the state and out of the state will he
treated as an out-of-state sul-division.
8. Adopt Section 2810.6 - Roquires subdivider to notify Department
of natural changes to time-;hare project for which a public
report has already been issued..
9. Adopt Section 2810.7 - Provides that Real Estate Commissioner
can approve alternative rights and remedies affording corparahle
benefits to tim-share amers.
10. Ado rt Section 2811 - RecTiLres the sponsor of a tire-sham. project
to record a declaration dedicating any dwelling units to the
time-share project and requires certain provisions therein.
11. Adopt Section 2812 - Specifies standards for "reasonable arrangements"
in time-share projects,
12. Adopt Section 2812. 1 - Requires transfer of control in time--share
project to a-mers association p 3 or to trustee prior to con.u*matinq
.first sale of time-share interest in project.
13. Adopt Section 2812.2 - Raruires conveyance of tine-share project
(lvelling units to trustee prior to closing of sale of first time-
- share interest and prescribes elements of trust instrurent.
14. Adopt Section 2812.3 - Requires time-share project sponsor to provide
security for payrrnt of assessments and specifies recnurprents for
security.
15. Adopt Section 2812.4 - Prescribes conditions pertaining to the
sponsor's subsidization of a tire-share project operation.
16. Adort Section 2812.5 - Requires a)venant h tirr_-share project
s msor not to encunher clvellinq units after execution of the
declaration without written consent of majority of other amens.
.17. Adopt Section 2812.6 - Peruire.> the declaration in Section 2811
to prohibit partition of the project by cnmers.
18. Adopt_ Section 2812.7 - Prescribes condit.iorn for joint tirm-share
and anrmercial use of common facilities.
19. Adopt Section 2812.8 - Prescribes that a munacemjit anent shall
be erynloyed by a tirL-share project.
20. Adopt Section 2812.9 - Allow rental of t-L --sha is tern_:;t, to
public under certain circumstances.
21. Adopt Section 2812.10 -' Requires timt—share p,,Ojr,c+ to he i 1sured
against property damage and personal injure r_l.dins.
22. Adopt Section 2313 - Requires regular reetinns of time-share project
amers and prescribes recmirerents for such reetinas.
23. Adopt Section 2813.1 - Specifies rembers' voting r..irthts in tire-
share project amer association,.
24. Adont Section 2813.2 - Prescr_ihe5 cmuosition and election procodw_es
for. governing bodies of tins-share project amer association.
25. Adopt Section 2813.3 - Specifies rerniirere nts for rieetings of governing
bodies of. tine-share project ammer associations.
-2-
26. Adopt Section 2813.4 - Specifies requiretmnts for assessnents to
c-fray costs of operating tine-share projects.
27. Adopt Section 2813.5 - It-nuires dissemination of certain pertinent
information to all tire-share owners in a project.
28. Adopt Section 2813.6 - Requires that records of tine-share project
awriers association he available for inspection and copying by
association nr_mhers.
29. Adopt Section 2813.7 - Specifies procedures and lints for a tire-
share project owners association to discipline its rnerbers.
30. Adopt Section 2813.8 - Specifies procedures for amending governing
instrurents of time-share projects.
31. Repeal Section 2785(h) (10) - Conforms this section to the recent
decision in Council of Anthon Real estate Schools v. Ebx, San
))iego Superior Court, No. y 8 9 0 , invalidating this sLb-
division. The srbdivision had defined the organized disclosure
of real estate exam questions as "unethical conduct".
32. & 33. Anend Sections 2861 and 2862 - Conforms .these sections to Chapter
1149, Statutes of 1980 (AR 2915) which transfers jurisdiction over
mchilehorre registrations fron Depar'-1*nnt of Motor Vehicles to
Department of housing and Cocmunity Ieveloprent.
NCTP: These sections are to becom= effective July 1, 1981.
34. An-end Section 3012 - Corrects "exeyption" from licensees' .continuing
education recprire ent to "extension" of time for corwletina remiire-
ment.
f
S1312 CONFERENCE COMMITTEE REPORT NO. f®
Honolulu, Hawaii4.
April , 1980
• ,r
Honorable Richard S . H. Wong
President of the Senate
Tenth State Legislature
Regular Session of 1980 .
State of Hawaii
Sir:
RE S .B. NO. 1516 , S D 1, H.6. -. 1 °
Your Committee on Conference on the disagreeing vote of the
" Senate to the amendments proposed by- the House of Representatives:. .
in S .B.. No. 1516 ,: S.D.- I, H.D ;. l; .entitled:.
c -
"A. BILL'.FOR .AN ACT' RELATING TO TIME SHARING",
having met,` and after full and free`discussion, has agreed to
recommend -and does recommend to the respective Houses the final
passage of this bill in an amended form •
�5
The purpose of this bi11 is to regulate time in
the State of Hawaii a Y,
In its resolution of the several issues involved in
this bill, your Conference Committee has taken note of the
growth of time sharing over the past several. years, both in o
the State of Hawaii and in other tourist destination areas . .. =•
Your Committee is aware that time sharing has generated
controversy among the various interested parties , including
the governments of the State and of the several counties,
persons in the time share industry, and residents most
directly affected by the growth of time sharing and its 3
potential for expansion
• I
Simply stated, those who favor time sharing see it as a
continuing stimulus to the economy of the State through the
creation of additional. jobs for residents of Hawaii and
expenditures by time share participants .. Opponents challenge
the conclusion that time sharing constitutes an economic ,'
advantage to the State, and consider it to be disruptive,
particularly within areas where permanent residents live.
The opponents would prefer the strict limitation or prohibi-
tion of time sharing, while its proponents favor enabling
legislation to establish definite guidelines and procedures
for its statutory regulation.
SMA 783 49
6
CONFERENCE COMMITT14REPORT NO. "a
Page 2
Your Committee concludes that it is necessary and
ng to be placed under strict governmental
timely for time shari �.
regulation if the interests of the State , the time sharing
industry, the purchasers of time share units and above all,
the people of Hawaii, are to be served. Accordingly, it is
the intention of your Committee that careful regulatory
oversight of time sharing in the State of Hawaii be provided. .
The following are some of the more significant areas of
regulation addressed in this measure:. _
Sec. '. -3 Taxation . Provides for reliable and efficient
administration of real property and excise taxes
Sec. -4 . County authority. This mandate will be f <
particularly helpful in efforts. t0 .clarify hotel, resort and z
'` transient vacation rental areas.'- The counties do not presently '
:.
zone for the "less traditional forms of. transient visitor
accommodations, and should address this in the near future
: t "
s h ,
Sec -5 Geographic limitations 'Provides a general rF ,
prohibitioTr„ except as specifically allowed in the enumerated
:'subsections :'' The first exemption is. -a "grandfather" provision '
to avoid any retroactive effect of this section r
t r..
The second exemption subsection provides for two exemptions
from the prohibitory`;-language.' `-First., time sharing and transient
�.
vacation rentals are allowed in hotels Second; time sharing and
transient vacation rentals are. allowed where designated for hotel
use, resort use,. or;transient vacation rentals use, pursuant to f
county authority: under. Section' 4b-4; ' Hawaii. Revised Statutes,`
or where the county`>. by-.-its legislative process, designates
hotel; transient. vacation. rental or resort use 4 ` .
`- It is the clear ntention`of your conferees thatLtime
J
sharing and transientVacation' rental use are. identical uses of
Tarid,without regard,to-owner's�iipyari3that botYi^uses oYf land
§hoiildbe addressed_in_a_coequal..-manner_by_the counties. Your
conferees further note that county- land use decisions are not
...based on ownership, but on the use of the lajn. � n question.. As
` suchl t m`shaar ng a_nd sient vacation..rentals. shnuld be `
either permfittd or—prohibited on an equal basis within an area
ed
d7e--effiTJ appropriate_ by the county
t
Your Committee further notes several areas of non-enforce-
- merit of their own zoning ordinances by some- of the counties. In . ;
this regard, it is not the_p resent character of the nei.ghbo.zhpod_4
but its intended use _by the county that is also important. The
e'slature ntends-by this Act that the counties will be guided
by the notion that time sharing- and transient vacation rentals
should not be ermine _w ere_the,;life styles;of_the permanent >�
resid will be disrupted in an unreasonable manner. Any
zoning code is only as good as its enforcement by a county.
SMA 784 851
CONFERENCE COMMITTEE REPORT NO.
Page 3
In its review of time sharing and transient vacation
rentals , your conferees concluded that-, several of the counties .
have nu'C used their zoning authority on these less formal and
trs.ditional types of transient visitor accommodations.. The , ;:
problems caused by this shortcoming in the county zoning
ordinances are clearly demonstrated in the case of County of _
Maui vs. Puamana Management Corooration (Civil No. 3474-78) ,
presently on appeal to the Supreme Court of the State of Hawaii.
Your conferees elected not to pre-judge where in an appro-
priate area time sharing and transient vacation rentals should
be allowed or prohibited,- but. to leave that decision to each
county- as a logical part of .its zoning or designation functions. '
Your Committee expects' that the counties will act expeditiously : .x .
. ' 'to clarify the .propriety of. .these.,uses under the zoning
ordinances . _
Sec: 6 Time sharing in arojects . Provides _ that
time. sharing must be explicitly and _prom gently authorized
in project instruments before -such -a use can commence in- a
project.. _ Such �authorizatiori shaL be by a unanimous vote o
;- the unit. owners .: _In. projects. which: "presently contain time
sharing use, the project_instruments: will determine the r,
restrictions , if any, to be imposed
-` 3
. ...-.'- Sec.. 7 Maintenance charges::' In recognition that
time sharing may result .in more intensive use of buildings
or projects and their common elements; your Committee has
.provided that higher maintenance fees ; up -to a maximum of an
additional fifty peYuenf —may be assessed' against time share .. r
units and transient vacation rental units located in- the
same building as private residential units.. . This proviso
will more equitably distribute maintenance costs, and should :
have the collateral effect of discouraging the mixed use of
buildings.
Sec... -8 Mutual right to catice L Provides a cooling-
off-period of five calendar days after the execution of the
contract or the receipt of the mandatory disclosure statement,
whichever is the latter. It .is hoped that this. will remove
some of the incentive to use high pressure sales techniques.-
Sec. -9 Disclosure statement. Provides for the dis-
closure of pertinent information to prospective purchasers . i
Sec -10 Filing required;- developer, sales agent,
acquisition agent and Dian manager. Provides for filing of
the disclosure statement with the director. It also requires
the filing of certain information by the acquisition agent,
sales agent and plan manager and requires those persons to be
bonded.
SbLA 784 850
CONFERENCE COMMITTEE REPORT NO.
.. Page 4
-k Sec. =11 Prohibited oractices.' Your Committee has
defined and prohibited undesirable marketing practices such
as beach and street solicitation on a Statewide basis .'
Your Committee believes that these provisions will help
to reduce the actual and perceived problems of time sharing.
without unduly retarding the industry.
Your Committee on Conference is in accord with the intent
and purpose of S .B . No . 1516 , S.D. 1, H.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S .B.. No_ 1516, S .D.• 1,:..H..D_.:1,. -C.D I
Respectfully submitted, ;:
MANAGERS ON THE PART OE `THEf ' :MANAGERS ON THE PART OF THE:•
• z'
HOUSE f SENATE
s _
RUSSELL BLAIR, Chairman. . STE COBB , , Chairman.
_ t
r >
,Ir 1ESOKI , Member DANTE CARPE TER, ember
t { z
JA LARSEi , Memb l WADSWORTH YEE, Me ] er. { f'/
ri
f
ff S [
Y ] .
O ALD T. MASUTANI , Member
r �.R
ITSUO SHITO, Member
. r
DONNA R. IKEDA, Member
f
SMA 784 824
CITY OF PALM DESERT
STAFF REPORT
TO: Planning Commission
FROM: Department of Environmental Services
SUBJECT: Zoning Ordinance Amendment to Permit
Time-Sharing in Certain Zones
CASE: ZOA 14-81
DATE: November 3, 1981
BACKGROUND: Earlier this year the City established a moratorium and began
investigating time-sharing.
The City Council established a Time-share Committee. A meeting of the Time-share
Committee was held in September and the attached report prepared by Staff, dated
August 4, 1981, was discussed. The Committee endorsed the regulations proposed in that
report. City Council reviewed the Time-share Committee decision and referred the
matter to Planning Commission for hearing.
ENVIRONMENTAL ASSESSMENT: The addition of "Time-Sharing" as a permitted use in
certain zones has been reviewed in accordance with the California Environmental Quality
Act and determined to be a Class 5 Categorical Exemption.
DISCUSSION: The August 4, 1981 report on Time-sharing (copy attached), provides a
history of Time-sharing, a breakdown of California and Hawaii Time-sharing regulations.
Additionally, a response to some of the major issues which had been raised concerning
time-share, a discussion concerning: land use compatibility (ie:where it should be
permitted), and a memo from the City Attorney dated April 7, 1981, stating that in his
opinion, the City does not have the constitutional authority to blanketly prohibit time-
sharing.
With this opinion from the City Attorney, Staff elected to propose an Ordinance
Amendment which would permit "Time-sharing" in certain zones subject to the issuance of
some type of use permit.
A draft of the proposed Ordinance has been prepared and is attached hereto.
The first and second sections of the Draft Ordinance would amend Chapter 3.28 of the
Municipal Code to include "Time-sharing" as hotel type of land use for the purposes of the
collection by the City of Transient Occupancy Tax.
The third Section of the draft Ordinance would add a new Chapter to the Municipal Code.
Section 25.100.010 defines "Time-Share".
Section 25.100.020 delineates the zones in which "Time-share" will be permitted. In all
zones the use is subject to the issuance of a Conditional Use Permit. The Draft Ordinance
proposes to permit "Time-share" in all zones where the present code permits hotel uses. It
is felt that this is reasonable because for all intents and purposes, a "Time-Share" land use
is no different than a hotel. Only the ownership of the "Time-Share" is different in that
the owners of time-share have an exclusive right to use of the facilities whereas the
shareholders of hotels are paid dividends instead of having the right to use the hotel. This
is discussed in more detail in the August 4, 1981 report.
Section 25.100.030 delineates additional information which is to be submitted when a
Conditional Use Permit application is submitted for a "Time-Share" project.
Section 25.100.040, confers upon the Planning Commission the right to impose the same
conditions on a Time-Share as may be imposed on any other Conditional Use Permit
application.
Section 25.100.050 requires that the Planning Commission must make necessary findings
as required for a regular Conditional Use Permit, before the Conditional Use Permit may
be granted.
r
Section 25.100.060 specifies that the minimum number of units in a "Time-Share" project
shall be twenty (20). This minimum number of units was recommended by a recognized
expert in the field as being necessary to suport adequate on-site management, site
maintenance and allow for proper marketing.
Section 25.100.070 provides that "Time-Share" developments shall be designed to conform
to the standards required for a hotel in the zone in which the property is located.
Section 25.100.080 states that all "Time-Share" projects will be subject to the provisions
of the City's Transient Occupancy Tax Ordinance.
Section 25.100.090 exempts from the provisions of this Chapter time-share projects for
which applications for approval from the State Department of Real Estate have been filed
prior to December 4, 1980, or projects which the City has approved prior to December 4,
1980.
This Draft Amendment has been revised since it was issued by the Time-Share
Committee. A Draft Ordinance based on a proposed Ordinance for Palm Springs, was
included in the August 4, 1981 report. Certain sub-sections of Section 25.100.030 of that
Draft Ordinance (ie: Information to be submitted with Conditional Use Permit
application) have been deleted as it was felt they were unnecessary. Section 25.100.040
(Conditions of Approval) of that Draft Ordinance has been deleted and replaced by the
existing Municipal Code Section relating to conditions which may be imposed on a
Conditional Use Permit application.
Section 25.100.050 of that Draft Ordinance (minimum Time-Share Structure Size) has
been deleted because it was felt that other sections of the Code already limit the size of
units through maximum number of units per acre, required open space and maximum
height limits.
PREPARED BY:
y
REVIEWED AND APPROVED BY:
/pa
,y-r �'eNiJiX
return coupled with the sizeable representation of the overall popula-
tion were more than enough to conclude that the survey results were very V:i
reliable.
Consumer Characteristics and Motivations
_ <s
It appears that when aggregating the variables of age, education,
n income, and family type, the timeshare market is composed of a very
stable population. Due to their high income and educational attainment, rkt.
their middle-age and marital status, it would seem they are relatively
=z'
.,. r
protected from extreme problems with any economic recession in the -
country. This is especially evident in a market for relatively low
cost recreational real property such as resort timesharing where most
.ir
r
units can be r+
Purchased for less than $5,000 a week.
Over one-half (56.3 percent) had household incomes in 1979 of m_At
r$30,000 or more, and 17.1 percent had incomes of $50,000 or more. The
approximate median annual income of timeshare households was about f .
'e
S33,500. By way of comparison, it was estimated that the median income
of all households in the United States is 1979 was onlyi
$16,500.
x�
The average age of the head of household for timeshare buyers was
g 45.4. Over one-half (52.7 per were between the ages of 35 to 54.
The vast majority of timeshare buyers were married couples (89.4 per-
_
cent) . By contrast, only about 62 percent of all households in the
United States are now composed of married couples. °`�
One of the most outstanding findings from the survey is the extremely
high level of education attained by the respondents. Over three-quarters
1
(75.8 percent) had attended college, with over one-half (54.9 percent)
r_!
being college graduates, and 31.4 percent havingdone graduate work. `mac
In regard to why people buy timeshares, the most frequently checked Y'
14
.7
answer was the exchange opportunity (71.4 percent), followed by the
opportunity to save money on future vacation costs (59.4 percent) and
_ investment or resale potential (38.8 percent) . Thus, respondents
appear primarily concerned with flexible vacation plans while at the
same time being interested in holding down future vacation costs.
Timeshare Characteristics
The majority of timeshare units owned by respondents had two-
r bedrooms (60.2 percent) , while only 10.4 percent were studios. The
number of weeks purchased was fairly evenly distributed amongst the
four seasons, ranging from 23.9 percent for Fall to 26.3 percent for
t Summer. This finding indicates that timeshares
Y g are marketable through-
out the year and not just during peak vacation periods.
n,
Even though a recently offered commodity, over one-half (52.5 per-
cent) of the respondents already had purchased two or more weeks of
timeshare. About 10 percent had purchased their units in more than one
resort location. It appears, therefore, that some timeshare buyers are
> already beginning, to collect not only multiple weeks, but also multiple
locations, even though being offered the exchange privilege with other '
locations.
Even though relatively inexpensive compared to other types of
( recreational real property, the majority of timeshare buyers still
finance their purchase rather than paying cash for it — 67.6 percent
compared to 32.4 percent. Only 37.4 percent of the respondents stated
they would have purchased their timeshare without the availability of
financing.
Consumer Satisfaction
Respondents in the survey were asked, "In general, how satisfied
15
tx
are you with your timeshare purchase?" Answers were overwhelmingly
r
favorable with a very high 86.3 percent stating they were either "very
satisfied" ++(44.6 percent) or satisfied" (41.7 percent) . Some 72.5 2
percent said they would. again purchase their timeshare in hindsight. t ""
High satisfaction was most apparent amongst respondents who:
1. had owned their timeshare longer; •"`�`
2. had purchased multiple weeks;
3. had purchased higher priced units;
�rr>
1q 4. had purchased larger units; s-
`s!1
5. had purchased for use or because they liked the unit; k'x -
6. intended to buy more timeshares; €;
rf:
7. had used their timeshare,
8. had requested an exchange; f
9. had an exchange confirmed, + r
10. received their own first trade choice;
11. were very satisfied with their trade, HI
12. felt the exchange privilege was fairly represented by their tc
salesperson, - 1-
13. were middle age and above;
14. had attained higher educational levels;
' f 15. had higher incomes;
16. had purchased fee-type units; and
17, had purchased units in projects originally built for timeshare.
An extremely high 61.5 percent intended to buy additional time-
shares, either at their present resort location (24.6 percent) and/or
at another location (36.9 percent). Such findings not only indicate
a high degree of satisfaction amongst present owners of timeshares,
16 .e-.
-ia�'�
but 'also a vast potential demand increase in the overall market. In
other words, a potential market not only exists with untapped buyers
but also with almost two-thirds of the existing buyers.
j Only 18..6 percent of the respondents said they will attempt to
sell their present timeshare and not buy another, i.e. , no longer be
participants in the market. Some 40.2 percent ,stated they did not
plan to buy additional timeshare but rather just keep what they presently
own. _
Use of Timeshares
" - A frequent argument made in the past against traditional types of
recreational real properties (recreational lots, detached vacation homes,
and wholly owned resort condominium units) was that they rarely were used
by their owners. Such does not seem to be the case with resort time-
shares.. Some 62.0 percent of the respondents already had vacationed in
�]] their own timeshare unit. When combined with the respondents who have
not yet used their own unit but have taken advantage of the exchange
privilege, it appears that about three-quarters of the respondents
already have used a timeshare unit of some kind. This is true even
though 38.7 percent had made their purchase only within the past six
months.
Some 58.1 percent said they planned to use their interval every
year in the future. Another 28.3 percent planned to use the exchange
privilege every year, for a total planned timeshare annual use of 86.4 per-
cent. If these figures are generalized to all projects for all seasons
of the year, it appears that the issue of this type of property sitting
idle for long periods of time is much less relevant than it has been
for traditional types of recreational property.
17
AEI -
:r
About one-half (55.7 percent) of the respondents had vacationed in
their timeshare for a seven-day period, with the average stay being 8.2
days. The average number of visitors per party for the overall stay
was 4.0, including 3.0 adults and 1.0 children.
Consumer Expenditures
Respondents were asked. to estimate [heir party's average daily
expenditures in the local area during their most recent vacation in a
timeshare unit. Results are summarized below:
Average '
Item Daily Expenditure
Groceries and liquor bought in a store $17.02
Eating out and nightclubs 25.47 sue-
C
_ Other overnight lodging besides timeshare unit 2.67
Recreation (movies, green fees, tours, lift 14.00
tickets, etc )
Local transportation (public bus, taxi, etc ) .76j'
Rental car 5.10
'y
Local shopping (souvenirs, gifts, apparel,. etc ) 13.90 °
Other 6.42 .
Total s`
$85.34
IF
If averages for the eight items are accumulated, the overall aver- :
age daily expenditure was $85.43. Respondents also spent an average of
rt
another $285 on travel expenditures, including $205 for air travel, $75 Y=
for car travel, and $5 for other travel. About 30 percent used air
lie
travel to arrive at their destination and about 20 percent used a travel
agent for booking air or lodging accommodations.
•a",
If average daily e i 't'
g y expenditures were multiplied by the average daily
4V. h
stay by the estimated use rate by the total number of timeshare owners,
it was found that well in excess of $100 million annually is spent
locally by timeshare vacationers. This estimate does not include travel
expenditures. More importantly, it does not include contributions made
by the timeshare projects themselves in terms of construction costs,
taxes, fees, management, sales expenditures, etc. Such estimates are
3:
lmeasured in the following case studies.
'+ Summary .
After surveying almost 10,000 timeshare owners, it was found that
the typical consumer was in his mid-forties, had an annual income in
excess of $33,000, married, and well educated. They owned a two-bedroom
timeshare unit and bought it both for immediate us
savings on vacations, e and for future
The purchase was financed. Most owners already
had purchased more than one week and most intended to buy additional
weeks. Satisfaction with present purchase was very prevalent.
About three quarters had vacationed in a timeshare unit for an
average stay of over eight days. The typical consumer spent $85 per
day in the local area while on his timeshare vacation and another $285.
for travel expenditures.
- f
i
t
ftltt
1
I�
19
e.
CITY OF PALM DESERT
TO: City Council and City Manager
FROM: Department of Environmental Services
SUBJECT: Timesharing
DATE: January 22, 1981
I. INTRODUCTION:
This report is the result of a council directive to study timesharing.
The study will address the various land use, revenue, and sales tactics
issues involved with the concept of timesharing.
The City Council has declared a three month moratorium on timeshare projects
in response to growing interest of converting existing units to timeshare.
II. BACKGROUND: e
A. Timeshare Defined: Unlike other forms of real estate property, timesharing
involves the sa a of time segments of occupancy of dwelling units.
Although a variety of forms exist, there are two principle types of time-
sharing. The first type is called right-to-use. With this type, a
purchaser pays a sum that entitles him to occupy a unit for a specific
length of time each year for a specific number of years. Other forms of
timesharing in this category include vacation license, vacation lease,
club membership and timeshare use. The second type of timesharing is
commonly known as fee simple ownership. With this type, a buyer purchases
a resort condominium unit for occupation for a specific length of time/
each year. This type of timesharing is also known as- interval ownership
and timeshare estate.
The difference between the two types "is that under the latter form the
purchaser owns a piece of real property. The owner builds up equity and
pays property tax. The owner can sell , bequeath, or rent his slice of
the property.
According to the Department of Real Estates' proposed regulations, a
timeshared unit is one that consists of 12 or more timeshare owners.
The Department's proposed regulations do not distinguish between timeshare
and other forms of developments that sell units for time periods such as
hotel/condos or stock cooperatives. Hotel/condos are similar to timeshare
units, but with fewer owners per units. When units are not occupied by
owners they are available to the general public for transient use. Stock
cooperative are units owned by a corporative entity with shareholders
holding the right to occupy the units. Stock cooperative units usually
serve as "permanent residences, although__they can be times,har-gd_____T'
sharing.;_as efined in the Time.s.hareMora:tor1um_ . O�rdinance, encompasses
these-forms of developments as well'.—
B. 'Timesharin in 'Coachella Valle : Timeshare projects ventured into the
Coachella Valley in the late 1970's. Most of the existing projects are
located in Palm Springs. Currently, only one timeshare project--the
Shadow Mountain Resort and Racquet Club--exists in Palm Desert. In res-
ponse to the increasing number of timeshare projects occuring in the
Valley, many of the desert cities have placed moratoriums on such develop-
ments until appropriate studies have been completed.
Since the passage of the moratoriums, Rancho Mirage has banned timeshare
projects from the City and Palm Springs is holding public hearings on
ordinances reaulating timesharing and collecting of a transient occupancy
tax. Palms Springs' proposed ordinance permits timeshare projects in
those zones which permits hotels/motels. The Palm Desert City Council has
already seen the Rancho Mirage Ordinance; Palm Springs' proposed ordinances
are attached for your information.
i
Timesharing
January 22, 1981 Page Two
III. LAND USE ISSUES:
A. Use Defined: Timesharing is generally considered a resort or vacation
land use. Surveys completed by the industry indicate that vacation
concerns (such as the opportunity to exchange a unit in one area for a
unit in another area, the certainty of having accomodations, and the
savings on future vacation costs) are the major reasons people acquire
timeshare units. Articles written by industry personnel indicate that
timesharing is a resort/vacation use of land.
Current zoning practice in the City permits resort uses in the PC (4)
.(Planned Commercial , Resort Center) zone. Uses permitted in this zone
include hotels and related ancillary commercial uses, entertainment
facilities, and restaurants. Resort hotels are also permitted in the
PR Planned Residential R- _( ) , 3 (Multifamily) and C 1. (General Commercial )
zones with either development plan or conditional use permit approval .
w Besides being a resort use, timesharing is a transient type of activity.
Purchasers of timeshare units are transient residents, here only for a
short time period. Units, therefore, take on the characteristic as being
temporary lodging, such as hotel rooms, although there may be an interest
in real property.
B. Compatibility with Surrounding Uses: A major concern of the City is the
compatibility of timeshare projects with surrounding land uses, parti-
cularly residential uses. Generally, the situation consists of mixing a
transient residential use with permanent residential uses. Resort/vacation
Use is inappropriate in residential areas due to the increased traffic
generation and multiple occupancies which may disturb the peace and quiet
of residential neighborhoods. In addition, lifestyles between those who
are permanent residents and those who are transient residents can be
different; conflicts between the two should be minimized through separation
of the two uses. Therefore, timeshare projects should not be permitted in
residential zones.
Staff has received numerous inquiries regarding the conversion of an
individual condominium unit to timesharing. This should not be allowed
for the reasons stated above. Also, once an individual unit timeshares,
it will be difficult to reconvert that unit for residential use since
conversion would require all owners to agree to sell to the same party.
C. Removal of Land for Residential Use: Construction of timeshare projects
remove land available for the construction of residential units for
permanent residents. This is extremely important in Palm Desert since the
City's economic base is expanding and the City, therefore, needs an ade-
quate amount of land for vaeous residential uses to meet the housing needs
of incoming residents. . The current and proposed General Plans recognize
this need and set the goal of providing a "variety of housing types and
densities for varying income levels and lifestyles throughout the City".
.The top priority of the City should be to ensure that adequate land is
available for the needs of residents.
Timesharing also eliminates land for other types of resort and transient
�Q- uses, such as hotels with convention facilities. The City Council and
Planning Commission have expressed an interest in expanding the City's
convention facilities, as exemplified during the discussions regarding
DP 03-80 (Stein-Brief/Vista's proposed project to construct a condo/hotel
resort with convention facilities at the southwest corner of Highway 111
and 44th Avenue). If permitted in resort commercial zones, timesharing
projects could preclude the development of other resort projects with
facilities the City desires.
Timesharing
January 22, 1981 Page Three
IV. REVENUE ISSUE:
A. Transient Occupancy Tax: The primary concern of the City in this area
pertains to the transient occupancy tax. Section 3.28.030 of the Palm
Desert Municipal Code imposes a 6% tax on the rent charged by the
operator of transient accomodations.
Although ownership of real property could be' involved with timesharing
the units are still occupied by transients, or short termed occupants.
As defined by Section 3.28.02OF of the Municipal Code, a transient is
a person who "exercises occupancy or is entitled to occupancy by reason
of concession, permit, right of access, license or other agreement for a
period of thirty consecutive calendar days or less." Most, if not all ,
timeshare owners fit this definition.
Since timesharing is a transient use, it appears that the City could
charge a transient tax on said units. What needs to be determined is
the "rental value" of timeshare occupancies upon which the tax is levied.
In a normal hotel/motel rental , the "rental value" is the room rental rate
charged to the occupant. In timeshare, there is no specific rental rate
per day usage. Timeshare owners pay two costs which comprise the "rental
value" of the unit: 1) the purchase price of the unit for the term of
its use, which could be construed to be a form of prepaid rent; and 2)
the annual maintenance fee paid or payable, which includes maintenance
. charges, taxes, management fees, furniture, replacement reserves, and
other assessments. In those cases where a term is not specified, a 40
year term should be assumed, since the IRS allows 40 years as a useful
life of a hotel or apartment building for depreciation purposes. Com-
bining the two costs results in a rental value in following examples:
1
Example 1: Timeshare unit sold for $5000 for an annual weekly stay for
a term of 20 years, with an annual maintenance fee of $250
(for the one week) payable monthly. The rental value per
week of occupancy would be calculated as follows:
Maintenance Fee $250.00 7
Purchase Cost per year (20 yrs) 250.00
Rental Value per week 500.00
Rental Value per day 71.43
Transient Occupancy Tax per day
(71.43 x 6%) 4:29
Yixample 2: Timeshare unit sold for $5000 for an annual weekly stay (no
term mentioned), with an annual maintenance fee of $250 (for
the one week) payable monthly. The rental value per week
of occupancy would be calculated as follows:
Maintenance Fee $250.00
Purchase Cost per year (40 yrs) 125.00
Rental Value per week 375.00
Rental Value per day 53.57
Transient Occupancy-Tax per day
.(53.57 x 6%) 3:211
The above method to compute transient occupancy tax as it relates to
timesharing has been adopted by many California cities and is presently
under consideration in Palm Springs.
V. SALES TACTICS
Members of the City Council have received complaints from citizens regarding
sales tactics used by some developers of timeshare projects. Many people are
lured to projects by such gimmicks as free give aways. Once arriving at the
project the consumer is subjected to a strong sales pitch and, in some
instances, the promised gift is not available. In response to numerous com-
plaints the Department of Real Estate is requiring all timeshare promotional
Timesharing :
January 22, 1981 Page Four
material to be submitted to the Department for review. Also, all advertised
gifts must be available and given away. The Palm Springs City Attorney,
during a meetingof that City's Timesharing Task Force felt that outside the
9
activities of the Department of Real Estate and various law enforcement agencies
. there was little else a city can do, although this issue could be investigated
further should alleged abuses continue.
VI. RECOMMENDATIONS:
Three options are available to the Council for action:
a) Take no action;
I) Ban timeshare projects from the City; or
c) Releg9ate timeshare projects to the Resort Commercial Zone, or other
zones) deemed appropriate, with a conditiona•1 use permit, establish
development standards, and amend Transient Occupancy Tax (Title 3 of
the Municipal Code) to collect said tax.
Staff's recommendation is to adopt option (b), banning timesharing from the
City for the reasons stated in this report and in the proposed ordinance.
Staff further recommends that, should the ban be ruled invalid by a Court of
Law, Council direct Staff to proceed with option (c). Proposed draft
ordinance amending various sections of Title 3 (Transient Occupancy Tax)
and Title 25 (Zoning Ordinance) of the Municipal Code is attached for your
consideration.
- o
,o
- . ; r
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, ADDING SECTIONS TO CHAPTER 25.56 (GENERAL PRO-
VISIONS, ZONING ORDINANCE) OF THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY
ORDAIN as follows:
WHEREAS, there is a shortage of affordable housing in the City of Palm
r Desert;
WHEREAS, the conversion of residential property within the City to vacation/
resort timesharing projects eliminates residential property, otherwise available for
rental or ownership in the City;
WHEREAS, vacation/resort timesharing project use is inappropriate in resi-
dential areas due to the increased traffic generation and multiple occupancies disturb-
ing the peace and quiet of residential neighborhoods; and
WHEREAS, vacation/resort timesharing project use precludes the development
of other resort uses desirable to the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert, as follows:
SECTION 1: Addition. That Section 25. 56.480 is hereby added to the Code
of the City of Palm Desert, to read as follows:
"Section 25.56.480 - Timesharing - Defined. Timeshare project shall
mean one wherein a purchaser receives the right in perpetuity, for
life, or for a term of years, to the recurrent, exclusive use or
occupancy of a lot, parcel ; unit room(s) , or segment of real property,
annually or on some other seasonal or periodic basis, for a period of
time that has been or will be allotted from the use or occupancy
period into which the project has been divided and shall include, but
not limited to timeshare estate, interval ownership, vacation license,
vacation lease, club membership, timeshare use, and hotel/condominium. "
SECTION 2: Addition. That Sectio.n 25.56.490 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"Section 25.56.490 - Timesharing - Prohibiting. The conversion of an
existing single family residential unit, an existing condominium
unit, an existing apartment or multifamily residential unit, or an
existing hotel or motel room or unit to a timeshare unit or project
is prohibited in all zones in the City. The construction, selling
or development of any timeshare project is prohibited in all zones
in the City- "
SECTION 3: Addition. That Section 25.56.500 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"Section 25.56.500 -Timesharing - Exception. Section 25.56.480 is not
applicable to those projects for which applications for,approval from
the State Department of Real Estate have been filed prior to December
4, 1980, or projects in which the City has approved prior to December
4, 1980. "
SECTION 4: Certification. The City Clerk of the 'City of Palm Desert,
California, is hereby directed to cause this ordinance to be published once within
fifteen (15) days of adoption in the Palm Desert Post, a newspaper published and
circulated within the City of Palm Desert, California, and the same shall be in full
force and effect thirty (30) days after adoption.
PASSED, APPROVED and ADOPTED this day of 1981,
by the City Council of the City of Palm Desert, California, by the following vote,
to wit:
ORDINANCE NO. Page Two
AYES:
NOES:
ABSENT:
ABSTAIN:
S. ROY WILSON, Mayor
ATTEST:
SHEILA R. GILLIGAN, City Clerk
City of Palm Desert, California
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, AMENDING SECTIONS OF CHAPTER 3.28 (TRANSIENT
OCCUPANCY TAX) AND ADDING CHAPTER 25. 100 (TIMESHARING) TO
THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN
as follows:
SECTION 1: Amendment. That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel" means any structure, or any portion of any structure, which is
occupied or intended or designed for use or occupancy by transients, including, but
not limited to dwelling, lodging or sleeping purposes, and includes any hotel , lodging-
house, toominghouse, apartment house, timeshare project or facility, dormitory, public
" - or private club, mobile home or house trailer at a fixed location, as permitted by
Section 7281 of the Revenue and Taxation Code of the state, or other similar structure
or portion thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement to
the use or possession, of any hotel room, rooms or any portion thereof offered for rent
for dwelling, lodging or sleeping purposes regardless of the purpose for which such
rooms are rented or provided.
C. "Operator" means the person who is proprietor of the hotel whether in
the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, timeshare
project or facility manager or operator, or any other capacity. Where the operator
performs his or its functions through a managing agent of any type or character, the
managing agent shall also be deemed an operator for the purpose of this chapter, and
shall have jointly and severally the same duties and liabilities as his principal .
Compliance with the provisions of this chapter by either the principal or the managing
agent shall , however..', be considered to be compliance by both.
D. "Rent" means the Consideration charged or chargeable to the tenant or
rperson entitled to occupancy, for the occupancy of space valued in money whether
Il received in money, goods, labor or otherwise, including the full value of receipts,
cash, credits, property, or service of any nature whatsoever. "Rent" may have been
or may be, payable prior to or following (in whole or in part) the occupancy to which
it is attributable, and may have been paid in whole or in part in advance on a long-
term basis.. Such a5 in a tomes?,are r•roiect or similar arrance;nent. It is not the - - --
intent of this section to make the operator liable for the tax on uncollected rent.
However, uncollected rent must be reported.
E. "Tax administrator" means the director of finance, or such other
individual as may be designated by the City Council .
•F. - "Timeshare Occupancy" means occupancy related to the situa'ion wherein
a purchaser receives the right or entitlement in perpetuity, for life, or for a term
of years or other extended term, to the recurrent, exclusive use or occupancy of a lot,
parcel , unit, room(s) , hotel or portion thereof, or segment of real property, annually
or on some other seasonal or periodic basis, for a period of time that has been or
will be allotted from the use or occupancy periods into which the timeshare project
which is involved has been divided- The said right or entitlement to occupancy may
attach in advance to a specific lot, parcel , unit, room(s) , or portion of a hotel , or
segment of real property, or may involve designation or selection of the same at a
future time or times.
G. "Transient" means. any person who exercises occupancy or it entitled
to occupancy by reason of concession, permit, right of access, license, timeshare
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days.
( Any such person so occupying space in a hotel shall be deemed to be a transient until
L the period of thirty days has expired. Unless days of occupancy or entitlement to
occupancy by one person are consecutive without any break, then prior or subsequent
periods of suc occupancy or entitlement to occupancy shall not be counted when deter-
mining whether a period exceeds the stated thirty consecutive days. In determining
whether a person is a transient, uninterrupted periods of time extending both prior
and subsequent to November 26, 1973,• may be considered. (Ord. 134 -551, 2, 1976.; Ord.
6 §2, 1973). "
ORDINANCE NO. Page Two
SECTION 2: Amendment. That Section 3.28.030 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.030 Tax Imposed. For the privilege of occupancy in any hotel , each
transient is subject to and shall pay a tax in the amount of six percent of the rent
charged by the operator or otherwise payable by the transient. The tax constitutes
a debt owed by the transient to the City which is extinguished only by payment to the
operator or to the City. For purposes of this section, the rent deemed payable on
account of timeshare occupancy y a transient shall e the rents va ue o t e un t or
rooms which acc_omodated such occupancy, which rental value sha 1 be computed by
'ife—termining the pr2ratashare of the total purchase rice of the timeshare ri ht
or entitlement whether or not involving an estate or any ownership in real property)
which share is allocable to the period of transient occupancy currently involved,
and adding thereto the total amount of any and all fees assessments charges and
expenses charged by the operator as attributable to the timeshare occupancy of the
transient by whatever name such fees assessments,. charges or expenses may be deno-
minated, whether "occuoving fee" "maintenance or operations charge" "per diem fee",
"management fee" or like name or otherwise In making the- computation referred to
above of the ororata share of the total purchase price in any case wherein the
timeshare right or entitlement is in perpetuity or for life or otherwise not for a
definite or ascertainable term such Proration shall be made upon an assumed term of
forty years. The transient shall pay the tax to the operator of the hotel at the
time the rent is paid. If the rent is paid in installments, a proportionate share of
the tax shall be paid with each installment. The unpaid tax shall be due when the
transient ceases to occupy space in the hotel . If for any-reason the tax due is not
paid to the operator of the hotel , the tax administrator may require that such tax
shall be paid directly to the tax administrator. Tax on occupancies in exchange for
services of any kind is due and payable to the City by the operator, the amount of
tax being determined on the basis of six percent of the current rental value of the
accomodations furnished. (Ord. 6 53, 1973). "
SECTION 3: Addition. That Chapter 25.100 is hereby added to the Code
the City of Palm Desert, to. read as follows:
"CHAPTER 25.100
TIMESHARE PROJECTS
25.100.010 Defined. As used in this Chapter, timeshare project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of
years, to the recurrent, exclusive use or occupancy of a lot, parcel , unit, room(s) ,
or segment of real property, annually or on some other seasonal or periodic basis, for
a period of time that has been or will be allotted from the use or occupancy periods
into which the project has been divided and shall include, but not limited to time-
share estate, interval ownership, vacation license, vacation lease, club membership,
timeshare use, and hotel/condominium.
25.100.020 Permitted Zones. 'A timeshare project shall be permitted only in
the Planned Commercial-Resort PC 4) zone and then only if and when a Conditional Use
Permit has been obtained therefor from the Planning Commission in accordance with
Chapter 25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition
to the information required by Section 25.72.020, an applicant for a Conditional Use
Permit approval involving a timeshare project shall submit in the application at least
the following information:
1. Legal description, street address or other location description
sufficient to identify the property.
2. Description of the timeshare periods into which the project is
proposed to be divided.
3. Description of the nature of timeshare rights, entitlements,
estates , or the like into which the project is proposed to
be divided, and the methods by which additional such interest
may be created or existing interests may be transferred or
conveyed.
ORDINANCE NO. Page Three
4. The formula, fraction or percentage of the common expenses and
any voting rights assigned to each timeshare participant and,
where applicable, to each unit in a project that is not subject
to the timeshare program or arrangement.
5. A description of the means proposed to be employed to properly
and effectively collect and remit to the City the transient
occupancy taxes which will become due and payable from time to
time in the future.
6. Description of any proposed restrictions on the use, occupancy,
alteration or alienation of timeshare intervals and rights.
7. Copies of all existing California Department of Real Estate
reports or permits required by law or regulation.
8. Description of time periods, types of units, and which units
are in the timeshare program (if less than all ) , and the
length of time each of the units are committed to the time-
share program.
9. In the event an existing condominium project is proposed to be
converted to a whole or partial timeshare project, a verified
description or statement of the number and percentage of the
current.condominium owners desiring or consenting to the pro-
posed conversion of some or all of the units to a timeshare
basis. Also in such instance there shall be submitted a veri-
fied statement of the number and percentage of owners who have
received notification, either personally or by receipted certi-
fied U.S. Mail that application to so' convert the project would
be submitted to the Commission together with when the City Staff
and the Commission would consider such application.
10. A description of the methods proposed to be employed to guarantee
the future adequacy, stability and continuity of a satisfactory
level of management and maintenance of .the timeshare project.
11. Any other information which the Commission or the applicant
considers necessary or desirable to an appropriate and proper
consideration of the application.
25.100.040 Conditions for Approval . In addition to the findings. the
Commission shall make in conjunction with Section 25.72.070, the Commission shall
consider the following:
1. The impact of the timesharing project on transient rental
stock;
2. The impact of timesharing conversion on existing commercial
businesses;
3. The impact of timesharing on present and future City services;
4. The impact of timesharing on permanent residential stock.
5. Any other factors deemed relevant by the Commission.
25.100.050 Minimum Timeshare Structure Size.
A. Every timeshare dwelling unit hereafter erected or converted shall have
a minimum living floor area of at least 1000 square feet, exclusive of unroofed por-
tions and. garages.
B. The standards may be increased by the design review process or the
Planning Commission based upon
1. Usability of the dwelling unit by the ultimate occupant;
2. Compatibility of the dwelling to the neighborhoods.
ORDINANCE NO. Page Four
25. 100.060 Exceotions. This Chapter is not applicable to those projects
which applications far approval from the State Department of Real Estate have been
filed prior to December 4, 1980, or projects which the City has approved prior to
December 4, 1980. "
SECTION 4: Certification. The City Clerk of the City of Palm Desert,
California, is hereby directed to cause this Ordinance to be published once within
fifteen (15) days of adoption in the Palm Desert Post, a newspaper published and
circulated within the City of Palm Desert, California,. and the same shall be in
full force and effect thirty (30) days after adoption.
PASSED, APPROVED,' and ADOPTED this day of-.-.. 1981
by the City Council of the City of Palm Desert, California, by the following vote,
to wit:
_ AYES:
NOES:
ABSENT:
ABSTAIN:. -.
S. ROY WILSON, Mayor
ATTEST:
SHEILA R. GILLIGAN, City Clerk C
City of Palm Desert, California
/lr
Time-share Committee
August 4, 1981 Page Two
Appendix B provides a more detailed description of the regulations. This appendix
is a copy of regulations proposed to implement SB 1736 which established criteria
to regulate time-share in California by the Department of Real Estate.
Hawaiian time-share regulations were established in November, 1980. Time-share
projects are permitted in hotels and areas designated for hotel use, resort use, or ;
transient vacation rentals use as determined by local authority. Existing time-share
projects were exempted.
Appendix C more fully describes the provisions of Hawaii 's regulations.
PALM DESERT TIME-SHARE CONCERNS
The major issues raised in Palm Desert concerning time-share are:
a) Sales techniques J
b) Advertising
c) Maintenance
d) Impact on transient occupancy tax
There have been instances of sales techniqu where gifts are promised but not delivered
and high pressure tactics used. These g rally involve your lower quality develop-
ments such as converted motels. The five day cooling-off period provided by California
�� regulation is one answer. Under this provision a purchaser may elect to cancel any
¢ �j agreement. State regulations also require all advertising techniques to be reviewed
>K- by the Department of Real Estate. In addition, a provision providing for a Purchaser's
r?� Awareness Package could be provided in city regulations.
001 The major concern of maintenance has been addressed by the requirement that the CC&R's
of a development must provide for regular assessments to defray maintenance costs and
provide several means of collecting from delinquent owners.
y! • f
In terms of the City's transient occupancy tax, the proposed time-share provisisions
provide a vehicle enabling the City to collect those revenues from time-share develop-
ments.
WHO BUYS TIME-SHARES AND WHY?
A study organized and funded by the Resort Time-Sharing Council of some 28,000 owners,
at 185 locations, with a response of nearly 9700, was conducted. in 1980. The result of
that survey is attached to this report as Appendix D.
The typical time-share purchaser was in his mid-forties, with an annual income in
excess of $$33,000, married and had an above average level of education.
The reasons for time-share investment in order of importance:
a) Exchange opportunity
b) Future vacation savings
c) Investment and resale potential
Of those responding, 86.3% were either "very satisfied" or "satisfied" with their
time-share purchase. 61.5% indicated they intended to acquire additional time-shares.
Only 4.5% of the respondents were either "dissatisfied" or "very dissatisfied".
continued. . .
`s
INTEROFFICE MEMORANDUM
City of Palm Desert
TO: TIME-SHARE COMMITTEE
FROM: DEPARTMENT OF ENVIRONMENTAL SERVICES
SUBJECT: TIME-SHARE ANALYSIS DATE: AUGUST 4, 1981
INTRODUCTION
The Time-share Committee requested a comparative analysis of California and Hawaii
time-share regulations. The study was generated by the Committee's concern of
Council 's statements relating to Hawaii 's time-share problems.
This report will analyze those regulations and address the concerns raised relative
�- to permitting time-sharing in Palm Desert.
HISTORY OF TIME-SHARING
In 1968 time-sharing was introduced in the United States, however, it was not readily
accepted by developers. A strong resort condominium market reflective of the overall
strength in the 1970 economy contributed to the lack of time-share developments. The
downturn of the real estate industry in 1974 resulted in many unsold resort units.
Time-sharing became one method for developers to salvage projects. Unfortunately,
for these developments, time-share was an afterthought and not part of their original
concept. Problems including poor financing, lack of concept understanding, and lack
of exchange programs were commonplace. Despite these problems some high quality time-
share developments succeeded.
As time-share became more widespread better financing, consumer understanding and
expanded exchange programs developed; builders also became more responsive to market
demands. All of these improvements resulted in an incredible growth of time-share
resorts; from 73 held by 40,000 owners in 1976 to 250 held by 200,000 owners two
years later with a doubling in sales each year since 1976.
CALIFORNIA-HAWAII REGULATIONS
A table delineating the provisions of each state's requirements is provided in
Appendix A. Both regulations were designed to reduce the problems that had developed
in the time-sharing industry.
California's regulations require the creation of a Homeowner's Association and the
declaration of the CC&R's. In addition, the developer must present evidence of
habit ability or financial ability to complete the project, sufficient property
interest in the project to assure its completion, and permissibility of the project
by local ordinance.
continued. . .
Time-share Committee
August 4, 1981 Page Three
The survey showed that owners used their units an average of 8 days per year and
spent $85 per day in the local community.
LAND USE C014PATIBILITY
California regulations presently require an indication from the local jurisdiction
that a proposed time-share project is not prohibited. The regulations basically
permit time-sharing unless expressly prohibited by ordinance or requires a use permit.
When one speaks of prohibition it is doubtful that a blanket prohibition could be
established and defended--see attached City Attorney memo April 7, 1981. That memo
states: "The prohibition of the time-share project as a form of development is not
currently within the constitutional means of the City. "
The problem in establishing a blanket prohibition relates to the difficulty in
distinguishing the degrees and varieties of ownership and the affects these uses
�.- may have on the public health, safety, and general welfare.
As was discussed previously and in the Hawaii Conference Committee Report, time-sharing
and transient vacation rental use are identical uses' of land, without regard to owner-
ship. Land use decisions should be based on the use of the land and not on ownership.
For this reason time-sharing and transient vacation rentals should either be permitted
or prohibited on an equal basis within certain zones. The proposed ordinance makes
such provision.
As was discussed in the January 22, 1981, report on time-sharing to City Council
(attached as Appendix E) , resort hotels are permitted in the PC (4) zone, PR zone,
R-3 zone and C-1 zone subject to obtaining development plan or conditional use permit
approval . If time-sharing were not to be prohibited outright, then the use should be
limited to the above noted zones subject to obtaining both a development plan and
conditional use permit or some type of special permit, process.
As discussed in the January 22, 1981, report the "Transient Occupancy Tax" can be
collected in "time-share" developments so the potential loss of hotel-zoned land
to time-share developments should not present problems. In examining the amount of
vacant PC (4) land in the City and the possible difficulties in obtaining financing
for hotel developments, time-sharing may provide an alternate method of financing such
developments.
Permitting time-sharing in planned residential and R-3 zones where hotels are presently
permitted, may result in conflicts between full-time owners and time-share occupants.
However, present short-term rentals operating in the major country club developments
within Palm Desert have not resulted in conflicts. Furthermore, case studies cited
in The Resort Time Sharing Industry Report Vol . II showed no conflicts on mixed
time-share permanent residential projects.
It is felt that in the case of existing condominium developments, which may wish to
change some of the units to time-share, ,that a majority of the owners be required to
vote in favor of the proposed change.
continued. . .
1
Time-share Committee
August 4, 1981 Page Four
In the case of a new mixed condominium time-share development, a provision requiring
full disclosure of this fact and the location of the time-share units should be an
adequate means of protecting anyone who does not wish to locate in a time-share
development.
SUMMARY
In light of the City Attorney' s opinion of April 7, 1981, that the City does not
have the constitutional authority to blanketly prohibit "time-sharing'' throughout
the City, that the best means of controlling time-share developments as to permit it
in specified zones subject to the issuance of some type of use permit. A draft
ordinance is attached to this report.
The Time-share Committee should review this report and provide comment at the
next committee meeting. It is proposed that the report with applicable comments of
the committee incorporated then be forwarded to the City Council with an appropriate
recommendation.
all
MON A. DIAZ
RAD/lr
Attachments
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, AMENDING SECTIONS OF CHAPTER 3.28 (TRANSIENT
OCCUPANCY TAX) AND ADDING CHAPTER 25.100 (TIME-SHARING) TO
THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN
as follows:
SECTION 1: Amendment. That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel " means any structure, or any portion of any structure, which
is occupied or intended or designed for use or occupancy by transients, including, but
not limited to dwelling, lodging or sleeping purposes, and includes any hotel , lodging,
house, roominghouse, apartment house, time-share project or facility, dormitory, public
or private club, mobile home or house trailer at a fixed location, as permitted by
Section 7231 of the Revenue and Taxation Code of the state, or other similar structure
or portion thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement
to the use or possession, of any hotel rooms,rooms or any portion thereof offered for
rent for dwelling, lodging or sleeping purposes regardless of the purpose for which
such rooms are rented or provided.
C. "Operator means the person who is proprietor of the hotel whether in
the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-
share project or facility manager or operator, or any other capacity. Where the
operator performs his or its functions through a managing agent of any type or charac-
ter, the managing agent shall also be deemed an operator for the purpose of this
chapter, and shall have jointly and severally the same duties and liabilities as his
principal . Compliance with the provisions of this chapter by either the principal
or the managing agent shall , howeyer, be considered- to be compliance by both.
D. "Rent" means the consideration charged or chargeable to the tenant or
person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods, labor or otherwise, including the full value of receipts,
cash, credits, property, or service of any nature whatsoever. "Rent" may have been
or may be, payable prior to or following (in whole or in part) the occupancy to which
it is attributable, and may have been paid in whole or in part in advance on a long-
term basis, such as in a time-share project or similar arrangement. It is not the
intent of this section to make the operator liable for the tax on uncollected rent.
However, uncollected rent must be reported.
E. "Tax Administrator" means the director of finance, or such other
individual as may be designated by the City Council .
F. "Time-share Occupancy" means occupancy related to the situation wherein
a purchaser receives the right or entitlement in perpetuity, for life, or for a term
of years or other extended term, to the recurrent, exclusive use or occupancy of a lot,
parcel , unit, room s , hotel or portion thereof, or segment of real property, annually
or on some other seasonal or periodic basis, for a period of time that has been or
will be allotted from the use or occupancy periods into which the time-share project
which is involved has been divided. The said right or entitlement to occupancy may
attach in advance to a specific lot, parcel , unit, room s , or portion of a hotel , or
segment of real property, or may involve designation or selection of the same at a
future time or times.
G. "Transient" means any person who exercises occupancy or is entitled
to occupancy by reason of concession,' permit', right of access, license, time-share
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days.
Any such person so occupying space in a hotel shall be deemed to be a transient
until the period of thirty days has expired. Unless days of occupancy or entitlement
to occupancy by one person are consecutive without any break, then prior or subsequent
periods of such occupancy or entitlement to occupancy shall not be counted when deter-
mining whether a period exceeds the stated thirty consecutive days. In determining
whether a person is a transient, uninterrupted periods of time extending both prior
and subsequent to November 26, 1973, may be considered. (Ord. 134 SS1, 2, 1976;
Ord. 6 82, 1973) .
- i
ORDINANCE NO. Page Two
SECTION 2: Amendment. That Section 3.28.030 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.030 Tax Imposed. For the privilege of occupancy in any hotel , each
transient is subject to and shall pay a tax in the amount of six percent of the rent
charged by the operator or otherwise payable by the transient. The tax constitutes
a debt awed by the transient to the City which is extinguished only by payment to
the operator or to the City. For purposes of this section, the rent deemed payable
on account of time-share occupancy by a transient shall be the rental value of the
unit or rooms which accommodated such occupancy, which rental value shall be
computed by determinin the rorata share of the total purchase rice of the time-
share ri ht or entitlement whether or not involvingan estate or an ownership
in real property which share is allocable to the period of transient occupancy
currently involved, and adding thereto the total amount of any and all fees, assess-
ments, charges and expenses charged by the operator as attributable to the time-share
occupancy of the transient by whatever name such fees assessments charges or expenses
may be denominated, whether "occupying fee", "maintenance or operations charge"
'Per diem fee", "management fee" or like name or otherwise. In making the computation
referred to above of the prorata share of the total purchase price in any case wherein
the time-share right or entitlement is in perpetuity or for life or otherwise not for
a definite or ascertainable term, such proration shall be made upon an assumed term of
forty years. The transient shall pay the tax to the operator of the hotel at the time
the rent is paid. If the rent is paid in installments, a -proportionate share of the
tax shall be paid with each installment. The unpaid tax shall be due when the tran-
sient ceases to occupy space in the hotel . If for any reason the tax due is not paid
to the operator of the hotel, the tax administrator may require that such tax shall
be paid directly to the tax administrator. Tax on occupancies in exchange for services
of any kind is due and payable to the City by the operator, the amount of tax being
determined on the basis of six percent of the current rental value of the accommoda-
tions furnished. (Ord. 6 §3, 1973) . "
SECTION 3: - Addition. That Chapter 25. 100 is hereby added to the Code of
the City of Palm Desert, to read as follows: a
"CHAPTER 25. 100
TIME-SHARE PROJECTS
25.100.010 Defined. As used in this Chapter, time-share project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of
years, to the recurrent, exclusive use or occupancy of a lot, parcel , unit, room(s) ,
or segment of real property, annually or on some other seasonal or periodic basis,
for a period of time that has been or will be allotted from the use or occupancy per-
iods into which the project has been divided and shall include, but not limited to
time-share estate, interval ownership, vacation license, vacation lease, club member-
ship, time-share use, and hotel/condominium.
25.100.020 Permitted Zones. A time-share project shall be permitted only
in the Planned Commercial Resort (PC-4) zone, Planned Residential (PR) zone, Multi-
family (R-3) zone or General Commercial (C-1) zone, and then only if and when a
Conditional Use Permit has been obtained therefor from the Planning Commission in
accordance with Chapter 25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition
to the information required by Section 25.72.020, an applicant for a Conditional Use
Permit approval involving a time-share project shall submit in the application at
least the following information:
1. Legal description, street address or other location description
sufficient to identify the property. ( r__ ZS•�7,-*&a
2. Description of the time-share periods into which the project is
proposed to be divided.
3. Description of the nature of time-share rights, entitlements,
estates, or the like into which the project is proposed to be
divided, and the methods by which additional such interest may
be created or existing interests may be transferred or conveyed.
ORDINANCE NO. Page Three
4. The formula, fraction or percentage of the common expenses and
any voting rights assigned to each time-share participant and,
where applicable, to each unit in a project that is not subject
to the time-share program or arrangement.
5. A description of the means proposed to be employed to properly
and effectively collect and remit to the City the transient
occupancy taxes which will become due and payable from time to
j time in the future.
6. Description of any proposed restrictions on the use, occupancy,
alteration or alienation of time-share intervals and rights. •
7. Copies of all existing California Department of Real Estate
reports or permits required by law or regulation.
y - 8. Description of time periods, types of units , and which units
are in the time-share program (if less than all ) , and the length
of time each of the units are committed to the time-share program.
9. In the event an existing condominium project is proposed to be
converted to a whole or partial time-share project, a verified
description or statement of the number and percentage of the current
condominium owners desiring or consenting to the proposed conversion
of some or all of the units to a time-share basis. Also in such
instance there shall be submitted a verified statement of the number
and percentage of owners who have received notification, either
personally or by receipted certified U.S. Mail that application to
so convert the project would be submitted to the Commission to-
gether with when the City staff and the Commission would consider
such application.
10. In the case of a new mixed project (ie: Time-sharing-condominium/
rental ) a description of the means proposed to be employed to
disclose the number and location of all time-share units within the
project.
11. A description of the methods proposed to be employed to guarantee
the future adequacy, stability and continuity of a satisfactory
level of management and maintenance of the time-share project.
12. Any other information which the Commission or the applicant
considers necessary or desirable to an appropriate and proper
consideration of the application.
[sider
100.040 Conditions for Approval . In addition to the findings, the
Call make in conjunction with Section 25.72.070, the Commission shall
cfollowing:
The impact of the time-sharing project on transient rental stock;
The impact of time-sharing conversion on existing commercial bus-
inesses;
The impact of time-sharing on present and future City services;
The impact of time-sharing on permanent residential stock;
Any other factors deemed relevant by the Commission.
1D0.050 Minimum Time-share Structure Size.
. Every time-share. dwelling unit hereafter erected or converted shall
have a minimum living floor area of at least 1000 square feet, exclusive of unroofed
portions and garages.
B. The standards may be increased by the design review process or the
Planning Commission based upon:
1. Usability of the dwelling unit by the ultimate occupant;
2. Compatibility of the dwelling to the neighborhoods.
ORDINANCE NO. Page Four
25.100.060 Exceptions. This Chapter is not applicable to those projects
which applications for approval from the State Department of Real Estate have been
filed prior to December 4, 1980, or projects which the City has approved prior to
December 4, 1980.
SECTION 4: Certification. The City Clerk of the City of Palm Desert,
California, is hereby directed to cause this Ordinance to be published once within
fifteen (15) days of adoption in the Palm Desert Post, a newspaper published and I
circulated within the City of Palm Desert, California, and the same shall be in
full force and effect thirty (30) days after adoption.
PASSED, APPROVED, and ADOPTED this day of 1981,
by the City Council of the City of Palm Desert, California, by the following vote,
to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
S. ROY WILSON, Mayor
ATTEST: -
SHEILA R. GILLIGAN, City Clerk
City of Palm Desert, California
/lr
Q
z
p x x x x x
w
J
Q
U
ti
X X X X X X X X X X X
3
Q
S
N
Z
O
N
W
C
(:J
Z_
F-
U
Q
K
F-
f O F-
_ U Q
Q C C
O F-
X Z
C7 O
0 Z U
Z H
W W J 2
a U W F-
C Q
Q Z N
Q C V-
E Q W O
w m
z r z
Q J O
CL
_1 J
(N
O
O O W Z
Z to 2 X O
w 2 L 3 w •-•
vw N K Q
Q W
to S O - U3
W O U F w W
J W C' U Q
N z Fes- Y S
W W Z Q F-
Z O 0tj
3
W F- F LO
C-13
W W Z Q Z J
C W J C
OCD ui
Of W W H
3 .~.� Q (D w Q 3 F-
4J N Q O
F- W W Q
m
W U U Z o2f r-y F- N
Z Q w G N ~ O r.
p w J w W C'1 U Z
I Z O a F-
CWj ¢ W Z C' w F- O N W W
F- ¢Z a' W O O O N d = Z
W R' a K F- w
i O K C7 ¢ K O ? w = V W
W F- N O Q L
F N i C O
Q O O Q Q O O _ F-
C \ CDti .Z-� Z J F-
N
N W
W O O N N in L CD CD
I Z
K J C W Z: W W Q W
S 4 W N Z O O Z F- K F-
O U J Q Z C7 N O U' W J
J Z W uiZ C Q X
F-
W C' J F- C F- 1-- W
Q
z
x x x x X x x x X
J
Q
U
� HI
3 X X X x JG
Q
Z
O
O F
W N Y Q
Z + U Y
O N Q - N F-
LU W
N C C CL
0
W O Q
Q J C
Z } Z l
� h O
x_ C E LL
p W d p O
Z h O U V1
d d LL N
a E p O O
Q C W a
W
G
Q W rr a
h W cr h
O c] cr W K
Z W J O
C a LL
N h E
M W LL O fn
w
N h O W
C ¢ U N C7 Ln
O Z Q
= C J CL J
N W o] F- W J W W
W h U p W o] h
�--� Z moma '7 p O J S
h 2f O Z f J
O .J O C Q W
C7 U Q d C 3 z
Z U Z
Q O C LL N C N
h H w w O Z O h w
N 3 h U N O_
H
X C C Q 2 Z h O W S S
W U O H U W Q " J N
N C J C E h> oc h W
(7 W a d J W C Q Q Z
Z :E d W C U W
O <C Q N O H f h
Z Q Z U W Z W Z J L1.
_ O LL
FQ- w F— Q h a: Q W O
Z 2 Z U U C O C W
O N W O W O W O W W N
V J 0-
p W N N
N W Z N LL O F— I— N 3 X
h N Q O
W F—
Z_ LL Z
C O O W U C O Lo O O
d U Q O H U C7 p Z F— Z Z
W p U J U Q Q Z O O_
N_ h ¢ O W ON p O w Cm:: h F—
Z Q C7 h h to (A W Q CO 2
p co H Z _O O O J J J C C
d d n. a W U O
X N W J Co Z O O 2: Z 7 N W
C C O H W W Z
E Cl N LL N U a d U LL O p H
1
' r
Q
Z
C
O X X X X X X X X
J
4
U
_ Q
.. .. ¢ X X X X _
S
0
W
Z N
W
Z F
O
U J
U U
w C~J Z Inc:
X 7 W O d
M C)O C O C7
W d U
d 2 LLJ
W W Q
O w
F
W w d
F O = O
J U-
n. N J O
O C7 ¢ N
U Z U F-
O S F- W O
C
} } O O }
F- Z S U 4
,- U-
J Q � 0 W
W Q Z W
m O Q
LLI F— CD J Z �•+ C V) Z OF-
� W
U F- OLLI
_ N W W F-
Q ct Z E Z s
O fN
Q F F W
w } w Z I N
O r-, O a O W
C F- N O J J
. Z ¢ w O Q N WO
Z K L� W N 2 N
J ¢ W N w H F
w O F+ W
Q d Ow 3 F- ~ C7 W
F- .-, W Z C
m Q O w m O
2 F m O J O Cr
W S O n U Q
O ~ Z N W W w N
W N O LLJ _ Z m C W w
Z Of F- Of N 3cm) ZD �-
LLJ C.
.-, O' al J w OJ W W
W C C n Q S N
1 .
r CITY OF PALM DESERT
TRANSMITTAL LETTER
I. TO: Honorable Mayor and City Council
II. REQUEST: Consideration of an amendment to the Municipal Code by
amending Chapter 3.28 (Transient Occupancy Tax) and adding
Chapter 25.100 (Time-Sharing).
III. APPLICANT: City of Palm Desert
IV. CASE NO: ZOA 14-81
V. DATE: December 3, 1981
VI. CONTENTS:
A. Staff Recommendation.
B. Discussion.
C. Draft Ordinance No.
D. Planning Commission Minutes involving Case No. ZOA 14-81.
E. Planning Commission Resolution No. 758.
F. Planning Commission Staff Report dated November 3, 1981.
G. Related maps and/or exhibits.
---------------------------------------------------------------------------------------------
A. STAFF RECOMMENDATION:
Waive further reading and pass to second reading.
B. DISCUSSION:
This amendment was reviewed and recommended for approval (4-1 with Richards
dissenting) by the Planning Commission at its meeting of November 3, 1981.
Both Commissioner Richards and a person speaking at the Public Hearing,
expressed concern with respect to the method employed to determine the amount
of Transient Occupancy Tax to be collected.
The City Attorney's memo of April 7, 1981, stated that the City does not have the
constitutional authority to blanketly prohibit time-sharing.
A staff report dated August 4, 1981 (copy attached), was reviewed in September by
the Time-share Committee established by City Council. This Committee endorsed
the concept of Time-share.
The proposed amendment, if approved, will permit time-sharing in zones where
hotel use is permitted subject to the issuance of a Conditional Use Permit by the
Planning Commission.
The proposed Amendment requires any time-share project to be comprised of a
minimum of 20 units. This number of units was determined to be the amount
necessary to support adequate on-site management, site maintenance and allow for
proper marketing.
/pa
CITY OF PALM DESERT
LEGAL NOTICE
INITIATION BY THE PALM DESERT PLANNING
COMMISSION, OF A ZONING ORDINANCE AMENDMENT
RELATIVE TO TIMESHARING.
CASE NO. ZOA 14-81
NOTICE IS HEREBY GIVEN that a Public Hearing will be held before the Palm Desert
City Council to consider an amendment to the Municipal Code Chapter 3.28 relating to
Transient Occupancy Tax and adding Chapter 25.100 (Timesharing) to the Municipal Code.
SAID Public Hearing will be held on December 3, 1981 at 7:00 p.m. in the Council
Chambers in the Palm Desert City Hall, 45-275 Prickly Pear Lane, Palm Desert,
CAlifornia, at which time and place all interested persons are invited to attend and be
heard.
SHEILA R. GILLIGAN
CITY CLERK
PUBLISH: Palm Desert Post
November 19, 1981
MINUTES
NOVEMBER 3, 1981
built on an R-1 zone. Commissioner Miller concurred with his concern stating that they
would be setting a precedent.
Commissioner Crites asked staff if the Church and KMIR station across from this
proposed development were zoned R-1 prior to developing. Mr. Diaz replied that they
were zoned Planned Residential.
Moved by Commissioner Wood, seconded by Commissioner Richards, to adopt
findings as recommended by staff. Carried 4-1 (NAY: KRYDER).
Moved by Commissioner Wood, seconded by Commissioner Richards, to adopt
Planning Commission Resolution No. 755, approving Conditional Use Permit 09-81, as
amended, subject to conditions. Carried 4-1 (NAY: KRYDER).
THERE WAS A 10 MINUTE RECESS - MEETING RECONVENED AT 9:15 P.M.
C. Case No. ZOA 12-81 - CITY OF PALM DESERT, Applicant
Consideration of an Amendment to the Palm Desert Zoning
Ordinance establishing a Planned Community Development
and Planned Residential Development Overlay Zones.
Mr. Diaz reviewed the proposed amendment and recommended approval.
Chairman Kryder opened the public testimony and asked if anyone present wished
to speak in Favor or Opposition to this case. There being none, the public testimony was
closed.
Moved by Commissioner Richards, seconded by Commissioner Crites, to adopt
Planning Commission Resolution No. 756, recommending approval to the City Council.
Carried unanimously.
D. Case No. ZOA 13-81 - CITY OF PALM DESERT, Applicant
Consideration of an Amendment to Section 25.58.035 of
the Municipal Code to allow buildings fronting .upon
President's Plaza East and West to expand one story to the
sidewalk.
Mr. Drell reviewed the proposed amendment and recommended approval.
Chairman Kryder opened the public testimony and asked if anyone wished to speak
in Favor or Opposition to this case. There being none, the public testimony was closed.
Moved by Commissioner Woods, seconded by Commissioner Crites, to adopt .
Planning Commission Resolution No. 757, recommending approval to the City Council.
Carried unanimously.
t. J Case No. ZOA 14-81 - CITY OF PALM DESERT, Applicant
Consideration of an Amendment to Palm Desert Municipal
Code, Chapter 3.28 (Transient Occupancy Tax) and adding
Chapter 25.100 (Time-Sharing).
Mr. Smith reviewed the staff report noting that this matter (time-share) had been
subject to a moratorium and would expire November 5, 1981. He stated that according to
the City Attorney this type of use cannot be prohibited. Mr. Smith pointed out that time-
sharing would only be permitted in zones in which hotels are permitted. Staff
recommended approval.
Commissioner Richards stated that because there were no options, he was in favor.
Commissioner Wood stated that he was a member of the City Time-Share
Committee and that Committee has reviewed the matter and recommended approval.
-4-
-s-
;o TTaunoO Al!:) all of Tenoidde Surpuawwoaaj '69L 'ON uoTinTosag uOTssrwwo0 SuruueTd
ldope of 'spJRgDTH iauorssTwwoO Aq papuooas 'pooh aauOTssiww00 , q paAOW
'AuowTlsal oTTgnd all pasola JapAJ)l uewJTeyO
•;ooi Ing a uT aSe>jsaT ;o )JsTJ
aaieajS a aq pinom ajayl leyi 2UTSSaJ1S '100.1 algeS a of pa mdwoo ;ooi leT; a UT aouaia;;Tp
ay1 pauTeTdxa aH •;ooa pJESUew a ueyl aayleI loafoid ayi ITns aauaq pinom ;ooi aig0 e
'TalawoH aleAO-d epeuea0 'lz)afoTd pasodoid sil ;o aouelsuT ay1 UTpue 'laa; b£ 01 SuTPTTnq
e ;o lySTay ayi sasTe1 100i aTgeS a ieyl pauTeldxa 'NOWO'IOS Q2IVN2T3fl '2IW
'ase:) sTyi 01 uoTI!soddO .10 Jone3 ut
>Ieads of palsTM auOAue ;T pa>jse pue AuowTlsal aTTgnd all pauado japA*J)l uewaTe40
•lou pip IT aims aMew pin0m ple0g AmaTAa-1 uSTsaQ leyi paTTdaj ZeT(]
'IVY •saTlayisae ao MaTA s,auoAue IoedwT pTnom sTll ;T. pa>Ise poom jauorssTwwoO
•TRAOJdde papuawwoz)aj pue luawpuawe pasodoid ayi pamaTAaJ Aor -JW
•auOZ (h) Od ayl UT lySTay SuTPTTnq
wnwTxew SUTU]aJUOJ ',3 uoTioasgnS 'OhZ'0£'SZ la1de40
'apoO TedTaTunW of luawpuawe ue ;o uorlejaplsuo0
IuEaTTddV `12I3S9Q WlVd d0 AIM - T8-9T VOZ 'ON ase0 •d
'(S42IVH012T :AVN)
T-t paTJ.TeO •pajaptsuoa aq uOTssTwwOO Suluueld Aq passaidxa sujaauoo jell TTounoO
Al!:) 01 uoTlepuawwoaal llyA 'pa;lrwgns se '8SL *ON uoTlniosad uoTssrwwOO SUTUUeid
ldope of 'salTJO aauorssTww00 Aq papuooas 'pooh aauorssTwwoO , q panOW
•Ja11ew sTl; u0 suJaOuoo uoTssTwwoO SuTuueid
'TTaunoO ALTO of liodai of ;;els lanIlsuT of paajSe sem IT uorssnasTp jay1Tn; aal;V
•apew aq uvD saSuey:) IEyi alou pinols ;T pue aDueuTpJO ayi UT
paT;Taads aq pinols poTiad awTl a Ino paluTod pue paiinauoa spJRg0Td lauOTssTwwOO
'paTpnls
aq pinoys IT 'loafojd aJeys-awT11sJT; ayl aa1;e uayi 'pasodoid se eTnwjo; ayi daa>l of apew
aq uOTlepuaww00a.l a jell palsaSSns pue papaau sera einwao; a Ieyl Ila; ZeiQ -jw
•poTiad
awTi uTElaao a aa1;e pamaTAal pue pasodoid se lda>l aq pinoys sTyi 'ssaaojd Mau a sem sTyi
aaurs ley; Ila; spleyoT-d aauoTssTwwoO vowoloS •Jpy Aq palsaSSns se saa; ayl aleinoTeo ao
einwjo; auo asn of jallaym uo elnwao; xel pa9 all uo uoTssnasTp awns sem ajayl
•Iuawdoianap Taloy e
Mom IT se aaeys-awTl Suileajl ;o AoTTOd s,AITO ayi gITm Surdaa)i UT sT sTyi •sluawanoadwT
asayi jo; alesuadwoo of paseaTouT aq pinom aiej wool ayl 'laloy a srll ajam
'asneoaq anTeA TeluaJ SuruTWJalap UT suorsnlz)uT prleA aJe swaiT aaylo pue luawaDtTdaa
ajn;Tuln; SuTpni3UT slso:) aDueualurew Te101 •pTTEA aq of ITa; sl anTeA TeivaJ lsTTgeisa
of pasn aq of saeaA ;o popad aaSuOT ayl 'a.To;aJall •az)Tjd SuTiTas aaySTy a anel 'saz)ue;suT
lsow ur 'pinom luawdolanap aidwrs aa; ay1 `siseq aidw aa; 0 q asn of
1ySTI a uO pros ajam auo ;T 'sluawdoTanap aJeys-awTl Tenba oml uaATS asneoaq sem saaumo
aa3 pue ril-d ao; pasn aaam seinwjo; luaja;;Tp unseal ayi ley; pauTeTdxa yliwS 'jW
•AuowTlsal OTTgnd ayl pasola JapAJ)l uewJTe40
.TalOy
ayl ySnojll paipuey aq pinols AITO ay1 of iT SuTllTwsuea; pue xei Aauedn000 1UaTSue]1
all SUT;OaTTO:) ;o poylaw all •panoidwT aq you pTnoys 'luawaoeidai ainlivan; se yons
sls0D aayi0 •papnTDuT aq pinoys sisoD a:)ueualuTew ayl pue aZ)Tjd aseyz)and ayi ATuO 'anTeA
Teluaj SuruTwaalap uT •drysJaumO a.Jeys-awTl aidwTs aa; Jo; sT 11 se 'saae w ys-aTl (n.Ld)
asn 01 142TZT Io; awes ayl aq pinoys xe1 Aauedn000 1uaTsuejl ;o sasodind ayl io; anTeA
le;uai 2uTleinDTe3 ;o poylaw ayi Iey1 Ino paluTod osIv aH •luawaSeuew jallaq jo; uT
pare Ta101 a SuTAey ;o aaueliodwi ayl passails Inq 'crone; UT a>lods pue Aljadoid aJeys-aWTl
;o jaumo ue ATluasaid sem ay paiels 'aaaluoal 68T-£L 'NOW010S G'dVNil39 -8W
•aseZ) sTyi o1 uoTlrsodd0 JO IOAe3 UT
,>jeads of palsTM auOAue 3T pa>lse pue AuowTlsal aTTgnd ayl pauado aapAiN uewJTelO
T86T `£ 2I99W9A0N
S3inNIW
CITY OF PALM DESERT
STAFF REPORT
TO: Planning Commission
FROM: Department of Environmental Services
SUBJECT: Zoning Ordinance Amendment to Permit
Time-Sharing in Certain Zones
CASE: ZOA 14-81
DATE: November 3, 1981
BACKGROUND: Earlier this year the City established a moratorium and began
investigating time-sharing.
i
The City Council established a Time-share Committee. A meeting of the Time-share
Committee was held in September and the attached report prepared by Staff, dated'
August 4, 1981, was discussed. The Committee endorsed the regulations proposed in that
report. City Council reviewed the Time-share Committee decision and referred the
matter to Planning Commission for hearing.
ENVIRONMENTAL ASSESSMENT: The addition of "Time-Sharing" as a permitted use in
certain zones has been reviewed in accordance with the California Environmental Quality
Act and determined to be a Class 5 Categorical Exemption.
DISCUSSION: The August 4, 1981 report on Time-sharing (copy attached), provides a
history of Time-sharing, a breakdown of California and Hawaii Time-sharing regulations.
Additionally, a response to some of the major issues which had been raised concerning
time-share, a discussion concerning land use compatibility (ie:where it should be
permitted), and a memo from the City Attorney dated April 7, 1981, stating that in his
opinion, the City does not have the constitutional authority to blanketly prohibit time-
sharing.
With this opinion from the City Attorney, Staff elected to propose an Ordinance
Amendment which would permit "Time-sharing" in certain zones subject to the issuance of
some type of use permit.
A draft of the proposed Ordinance has been prepared and is attached hereto.
The first and second sections of the Draft Ordinance would amend Chapter 3.28 of the
Municipal Code to include "Time-sharing" as hotel type of land use for the purposes of the
collection by the City of Transient Occupancy Tax.
The third Section of the draft Ordinance would add a new Chapter to the Municipal Code.
Section 25.100.010 defines "Time-Share".
Section 25.100.020 delineates the zones in which "Time-share" will be permitted. In all
zones the use is subject to the issuance of a Conditional Use Permit. The Draft Ordinance
proposes to permit "Time-share" in all zones where the present code permits hotel uses. It
is felt that this is reasonable because for all intents and purposes, a "Time-Share" land use
is no different than a hotel. Only the ownership of the "Time-Share" is different in that
the owners of time-share have an exclusive right to use of the facilities whereas the
shareholders of hotels are paid dividends instead of having the right to use the hotel. This
is discussed in more detail in the August 4, 1981 report.
Section 25.100.030 delineates additional information which is to be submitted when a
Conditional Use Permit application is submitted for a 'Time-Share" project.
Section 25.100.040, confers upon the Planning Commission the right to impose the same
conditions on a Time-Share as may be imposed on any other Conditional Use Permit
application.
Section 25.100.050 requires that the Planning Commission must make necessary findings
as required for a regular Conditional Use Permit, before the Conditional Use Permit may
be granted.
I
Section 25.100.060 specifies that the minimum number of units in a "Time-Share" project
shall be twenty (20). This minimum number of units was recommended by a recognized
expert in the field as being necessary to suport adequate on-site management, site
maintenance and allow for proper marketing.
Section 25.100.070 provides that "Time-Share" developments shall be designed to conform
to the standards required for a hotel in the zone in which the property is located.
Section 25.100.080 states that all "Time-Share" projects will be subject to the provisions
of the City's Transient Occupancy Tax Ordinance.
Section 25.100.090 exempts from the provisions of this Chapter time-share projects for
which applications for approval from the State Department of Real Estate have been filed
prior to December 4, 1980, or projects which the City has approved prior to December 4,
1980.
This Draft Amendment has been revised since it was issued by the Time-Share
Committee. A Draft Ordinance based on a proposed Ordinance for Palm Springs, was
included in the August 4, 1981 report. Certain sub-sections of Section 25.100.030 of that
Draft Ordinance (ie: Information to be submitted with Conditional Use Permit
application) have been deleted as it was felt they were unnecessary. Section 25.100.040
(Conditions of Approval) of that Draft Ordinance has been deleted and replaced by the
existing Municipal Code Section relating to conditions which may be imposed on a
Conditional Use Permit application.
Section 25.100.050 of that Draft Ordinance (minimum Time-Share Structure Size) has
been deleted because it was felt that other sections of the Code already limit the size of
units through maximum number of units per acre, required open space and maximum
height limits.
PREPARED BY: A_� =
REVIEWED AND APPROVED BY:
/pa
PLANNING COMMISSION RESOLUTION NO. 758
A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF PALM DESERT, CALIFORNIA,
RECOMMENDING APPROVAL TO THE CITY COUNCIL
OF AN AMENDMENT TO THE ZONING ORDINANCE
TEXT, BY AMENDING AND ADDING CHAPTER 25.100
(TIME-SHARING)
CASE NO. ZOA 14-81
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on
the 3rd day of November, 1981, hold a duly noticed Public Hearing to consider the
proposed amendment of Municipal Code to amend Section.3.28 to include 'Time-Sharing"
as a use which is required to remit to the City the Transient Occupancy Tax and to insert
a new section permitting "Time-Sharing"' in certain zones and subject to certain
requirements.
WHEREAS, the proposed amendment is a minor alteration to land use limitations
and therefore is a Class 5 Categorical Exemption for the purposes of CEQA.
WHEREAS, at said Public Hearing, upon hearing and considering all testimony and
arguments, if any, of all persons desiring to be heard, said Planning Commission did find
the following facts and reasons to exist to recommend approval of a Zoning Ordinance
Text Amendment.
1. That the Zoning Ordinance Amendment is consistent with
the objectives of the Zoning Ordinance.
2. That the Zoning Ordinance Amendment would better serve the
adopted General Plan.
3. That the Zoning Ordinance Amendment would better serve the
public health, safety and general welfare, than the current
regulations.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Palm Desert, as follows:
1. That the above recitations are true and correct and constitute
the considerations of the Commission in this case;
2. That it does hereby recommend a Zoning Ordinance Text Amendment,
as provided in the attached exhibit, labeled Exhibit "A", to
amend Municipal Code Chapter 3.28 and add Chapter 25.100.
PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert
Planning Commission, held on this 3rd day of November, 1981, by the following vote, to
wit:
AYES: CRITES, KRYDER, MILLER, WOOD
NOES: RICHARDS
ABSENT: NONE
ABSTAIN: NONE
GEORGE D. KRYDER, Chairman
ATTEST:
RAMON A. DIAZ, Secretary
/pa
l
PLANNING COMMISSION RESOLUTION NO. 758
EXHIBIT "A"
SECTION 1: Amendment. That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
" "3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel' means any structure, or any portion of any structure, which is
occupied or intended or designed for use or occupancy by transients, including, but not
limited to dwelling, lodging or sleeping purposes, and includes any hotel, lodging, house,
roominghouse, apartment house, time-share project or facility, dormitory, public or
private club, mobile home or house trailer at a fixed location, as permitted by Section
7281 of the Revenue and Taxation Code of the State, or other similar structure or portion
thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement to the
use or possession, of any hotel rooms, rooms or any portion thereof offered for rent for
dwelling, lodging or sleeping purposes regardless of the purpose for which such rooms are
rented or provided.
C. "Operator" means the person who is proprietor of the hotel whether in the
capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-share project
or facility manager or operator, or any other capacity. Where the operator performs his or
its functions through a managing agent of any type or character, the managing agent shall
also be deemed an operator for the purpose of this chapter, and shall have jointly and
severally the same duties and liabilities as his principal. Compliance with the provisions of
this chapter by either the principal or the managing agent shall, however, be considered to
be compliance by both.
D. "Rent" means the consideration charged or chargeable to the tenant or
person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods, labor or otherwise, including the full value of receipts, cash,
credits, property, or service of any nature whatsoever. Rent may have been or may be,
payable prior to or following (in whole or in part) the occupancy to which it is
attributable, and may have been paid in whole or in part in advance on a long term basis,
such as in a time-share project or similar arrangement. It is not the intent of this section
to make the operator liable for the tax on uncollected rent. However, uncollected rent
must be reported.
E. "Tax Administrator" means the director of finance, or such other individual
as may be designated by the City Council.
F. 'Time-share Occupancy" means occupancy related to the situation wherein
a purchaser receives the right or entitlement in perpetuity, for life, or for a term of years
or other extended term to the recurrent exclusive use or occupancy of a lotparcel, unit
rooms , hotel or portion thereof, or segment of real property, annually or on some other
seasonal or periodic basis, for a period of time that has been or will be allotted from the
use or occupancy periods into which the time-share project which is involved has been
divided. The said right or entitlement to occupancy may attach in advance to a specific
lot, parcel, unit, rooms , or portion of a hotel, or segment of real property, or may
involve designation or selection of the same at a future time or times.
G. 'Transient" means any person who exercises occupancy or is entitled to
ocupancy by reason of concession, permit, right of access, license, time-share
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days. Any
such person so occupying space in a hotel shall be deemed to be a transient until the
period of thirty days has expired. Unless days of ocupancy or entitlement to occupancy by
one person are consecutive without any break, then prior or subsequent periods of such
occupancy or entitlement to occupancy shall not be counted when determining whether a
period exceeds the stated thirty consecutive days. In determining whether a person is a
transient, uninterrupted periods of time extending both prior and subsequent to November
26, 1973, may be considered. (Ord. 134 SSI, 2, 1976; Ord. 6 S2, 1973).
SECTION 2: Amendment. That Section 3.28.030 of the Code of theCity of
Palm Desert, California, is hereby amended to read as follows:
9.28.030 Tax Imposed. For the privilege of occupancy in any hotel, each
transient is subject to and shall pay a tax in the amount of six percent of the rent charged
by the operator or otherwise payable by the transient. The tax constitutes a debt owed by
the transient to the City which is extinguished only by payment to the operator or to the
City.
PLANNING COMMISSION RESOLUTION NO 758
"3.28.030 Tax Imposed. (Continued) For purposes of this section, the rent
deemed payable on account of time-share occupancy by a transient shall be the rental
value of the unit or rooms which accommodated such occupancy, which rental value shall
be computed by determinin the rorata share of the total purchase rice of the time-
share ri ht or entitlement whether or not involvingan estate or an ownershipin real
property which share is allocable to the period of transient occupancy currently involved
and adding thereto the total amount of any and all fees, assessments, charges and
expenses charged by the operator as attributable to the time-share occupancy of the
transient by whatever name such fees, assessments, charges or expenses may be
denominated, whether 'occupying fee", "maintenance or operations charge", "Per diem
fee", "management fee" or like name or otherwise. In making the computation referred to
above of the prorata share of the total puchase price, in any case wherein the time-share
right or entitlement is in perpetuity or for life or otherwise not for a definite or
ascertainable term, such proration shall be made upon an assumed term of forty years.
The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If
the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due when the transient ceases to occupy space in the
hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax
administrator may require that such tax shall be paid directly to the tax administrator.
Tax on occupancies in exchange for services of any kind is due and payable to the City by
the operator, the amount of tax being determined on the basis of six percent of the
current rental value of the accommodations furnished. (Ord. 6 S3, 1973)."
SECTION 3: Addition. That Chapter 25.100 is hereby added to the Code of the
City of Palm Desert, to read as follows:
"CHAPTER 25.100
TIME-SHARE PROJECTS
25.100.010 Defined. As used in this Chapter, time-share project shall mean `
one wherein a purchaser receives the right in perpetuity, for life, or for a term of years, l
to the recurrent, exclusive use or occupancy of a lot, parcel, unit, room(s), or segment of
real property, annually or on some other seasonal or periodic basis, for a period of time
that has been or will be allotted from the use or occupancy periods into which the project
has been divided and shall include, but not limited to time-share estate, interval
ownership, vacation license, vacation lease, club membership, time-share use, and
hotel/condominium.
25.100.020 Permitted Zones. A time-share project shall be permitted only in
the Planned Commercial Resort (PC-T) zone, Planned Residential (PR) zone, Multifamily
(R-3) zone or General Commercial (C-1) zone, and then only if and when a Conditional
Use Permit has been obtained therefor from the Planning Commission in accordance with
Chapter 25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition to
the information required by Section 25.72.020, an applicant for a Conditional Use Permit
approval involving a time-share project shall submit in the application at least the
following information:
1. Copies of documents and information required pursuant to Article 12.2
of the California Administrative Code, Section 2810 wherein the
requirements for a "substantially complete" application for a final
subdivision public report are enumerated.
2. A description of the means proposed to be employed to properly and
effectively collect and remit to the City the transient occupancy taxes
which will become due and payable from time to time in the future.
3. In the event an existing condominium project is proposed to be converted
to a whole or partial time-share project, a verified description or
statement of the number and percentage of the current condominium
owners desiring or consenting to the proposed conversion of some or all
of the units to a time-share basis. Also in such instance there shall be
submitted a verified statement of the number and percentage of owners
who have received notification, either personally or by receipted
PLANNING COMMISSION RESOLUTION NO. 758
certified U.S. Mail that aplication to so convert the project would be
submitted to the Commission together with when the City staff and the
Commission would consider such application.
4. In the case of a new mixed project (ie: Time-sharing-
condominium/rental) a description of the means proposed to be employed
to disclose the number and location of all time-share units within the
project.
5. Description of time periods, types of units, and which units are in the
time-share program (if less than all), and the length of time each of the
units are committed to the time-share program.
25.100.040 Conditions of Approval. The Planning Commission may grant a
Conditional Use Permit for "Time-share" subject to conditions as set forth in Section
25.72.060.
25.100.050 Findings. Prior to the granting of a Conditional Use Permit for
"Time-share" the Planning Commission shall determine that the findings delineated in
Section 25.72.070 are met.
25.100.060 Minimum number of Units in a Time-share Development. The
minimum number of units in a "time-share" project shall be twenty 20).
25.100.070 Development Standards For Time-Share Development. "Time-
Share" Developments shall be designed to conform to the standards for hotel
developments in the zone in which the property is located.
25.100.080 Transient Occupancy Tax Applicable. All time-share projects shall
be subject to the provisions of the City's Transient Occupancy Tax Ordinance.
25.100.010 Exceptions. This Chapter is not applicable to those projects which
applications for approval from the State Department of Real Estate have been filed prior
to December 4, 1980, or projects which the City has approved prior to December 4, 1980.
PLANNING COMMISSION RESOLUTION NO.
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM
DESERT, CALIFORNIA, RECOMMENDING APPROVAL TO THE CITY COUNCIL
OF AN AMENDMENT TO THE ZONING ORDINANCE TEXT, BY AMENDING
CHAPTER 3.28 (TRANSIENT OCCUPANCY TAX) AND ADDING CHAPTER
25.100 (TIME-SHARING)
CASE NO. ZOA 14-81
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on
the 3rd day of November, 1981, hold a duly noticed Public Hearing to consider the
proposed amendment of Municipal Code to amend Section 3.28 to include 'Time-Sharing"
as a use which is required to remit to the City the Transient Occupancy Tax and to insert
a new section permitting 'Time-Sharing"" in certain zones and subject to certain
requirements.
WHEREAS, the proposed amendment is a minor alteration to land use limitations
and therefore is a Class 5 Categorical Exemption for the purposes of CEQA.
WHEREAS, at said Public Hearing, upon hearing and considering all testimony and
arguments, if any, of all persons desiring to be heard, said Planning Commission did find
the following facts and reasons to exist to recommend approval of a Zoning Ordinance
Text Amendment.
1. That the Zoning Ordinance Amendment is consistent with
the objectives of the Zoning Ordinance.
2. That the Zoning Ordinance Amendment would better serve the
adopted General Plan.
3. That the Zoning Ordinance Amendment would better serve the
public health, safety and general welfare, than the current
regulations.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Palm Desert, as follows:
1. That the above recitations are true and correct and constitute
the considerations of the Commission in this case;
2. That it does hereby recommend a Zoning Ordinance Text Amendment,
as provided in the attached exhibit, labeled Exhibit "A", to
amend Municipal Code Chapter 3.28 and add Chapter 25.100.
PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert
Planning Commission, held on this 3rd day of November, 1981, by the following vote, to
wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
GEORGE KRYDER, Chairman
ATTEST:
RAMON A. DIAZ, Secretary
/pa
PLANNING COMMISSION RESOLUTION NO.
EXHIBIT "A"
SECTION 1: Amendment. That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel" means any structure, or any portion of any structure, which is
occupied or intended or designed for use or occupancy by transients, including, but not
limited to dwelling, lodging or sleeping purposes, and includes any hotel, lodging, house,
roominghouse, apartment house, time-share project or facility, dormitory, public or
private club, mobile home or house trailer at a fixed location, as permitted by Section
7281 of the Revenue and Taxation Code of the State, or other similar structure or portion
thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement to the
use or possession, of any hotel rooms, rooms or any portion thereof offered for rent for
dwelling, lodging or sleeping purposes regardless of the purpose for which such rooms are
rented or provided.
C. "Operator" means the person who is proprietor of the hotel whether in the
capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-share project
or facility manager or operator, or any other capacity. Where the operator performs his or
its functions through a managing agent of any type or character, the managing agent shall
also be deemed an operator for the purpose of this chapter, and shall have jointly and
severally the same duties and liabilities as his principal. Compliance with the provisions of
this chapter by either the principal or the managing agent shall, however, be considered to
be'compliance by both.
D. "Rent" means the consideration charged or chargeable to the tenant or
person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods, labor or otherwise, including the full value of receipts, cash,
credits, property, or service of any nature whatsoever. "Rent may have been or may be,
payable prior to or following (in whole or in part) the occupancy to which it is
attributable, and may have been paid in whole or in part in advance on a long term basis,
such as in a time-share project or similar arrangement. It is not the intent of this section
To make the operator liable for the tax m uncollected rent. However, uncollected rent
must be reported.
E. "Tax Administrator" means the director of finance, or such other individual
as may be designated by the City Council.
F. "Time-share Occupancy" means occupancy related to the situation wherein
a purchaser receives the right or entitlement in perpetuity, for life, or for a term of years
or other extended term to the recurrent, exclusive use or occupancy of a lot, parcel, unit,
rooms , hotel or portion thereof, or segment of real property, annually or on some other
seasonal or periodic basis, for a period of time that has been or will be allotted from the
use or occupancy periods into which the time-share prolect which is involved has been
divided. The said ri ht or ntitlement to occupancy may attach in advance to a s ecific
lot, parcel, unit, room s ,e or portion of a hotel, or segment of real property, or may
involve designation or selection of the same at a future time or times.
G. "Transient" means any person who exercises occupancy or is entitled to
ocupancy by reason of concession, permit, right of access, license, time-share
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days. Any
such person so occupying space in a hotel shall be deemed to be a transient until the
period of thirty days has expired. Unless days of ocupancy or entitlement to occupancy by
one person are consecutive without any break, then prior or subsequent periods of such
occupancy or entitlement to occupancy shall not be counted when determining whether a
period exceeds the stated thirty consecutive days. In determining whether a person is a
transient, uninterrupted periods of time extending both prior and subsequent to November
26, 1973, may be considered. (Ord. 134 SS1, 2, 1976; Ord. 6 S2, 1973).
SECTION 2: Amendment. That Section 3.28.030 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
113.28.030 Tax Imposed. For the privilege of occupancy in any hotel, each
transient is subject to and shall pay a tax in the amount of six percent of the rent charged
by the operator or otherwise payable by the transient. The tax constitutes a debt owed by
the transient to the City which is extinguished only by payment to the operator or to the
City.
PLANNING COMMISSION RESOLUTION NO.
113.28.030 Tax Imposed. (Continued) For purposes of this section, the rent
deemed payable on account of time-share occupancy by a transient shall be the rental
value of the unit or rooms which accommodated such occupancy, which rental value shall
be computed by determinin the rorata share of the total purchase rice of the time-
share right or entitlement whether or not involving an estate or any ownership in real
property which share is allocable to the period of transient occupancy currently involved,
and adding thereto the total amount of any and all fees, assessments, charges and
expenses charged by the operator as attributable to the time-share occupancy of the
transient by whatever name such fees, assessments, charges or expenses may be
denominated, whether 'occupying fee", "maintenance or operations charge", "Per diem
fee", "management fee" or like name or otherwise. In making the computation referred to
above of the prorata share of the total puchase price, in any case wherein the time-share
right or entitlement is in perpetuity or for life or otherwise not for a definite or
ascertainable term, such proration shall be made upon an assumed term of forty years.
The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If
the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due when the transient ceases to occupy space in the
hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax
administrator may require that such tax shall be paid directly to the tax administrator.
Tax on occupancies in exchange for services of any kind is due and payable to the City by
the operator, the amount of tax being determined on the basis of six percent of the
current rental value of the accommodations furnished. (Ord. 6 S3, 1973)."
SECTION 3: Addition. That Chapter 25.100 is hereby added to the Code of the
City of Palm Desert, to read as follows:
"CHAPTER 25.100
TIME-SHARE PROJECTS
25.100.010 Defined. As used in this Chapter, time-share project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of years,
to the recurrent, exclusive use or occupancy of a lot, parcel, unit, room(s), or segment of
real property, annually or on some other seasonal or periodic basis, for a period of time
that has been or will be allotted from the use or occupancy periods into which the project
has been divided and shall include, but not limited to time-share estate, interval
ownership, vacation license, vacation lease, club membership, time-share use, and
hotel/condominium.
25.100.020 Permitted Zones. A time-share project shall be permitted only in
the Planned Commercial Resort PC-4 zone, Planned Residential (PR) zone, Multifamily
(R-3) zone or General Commercial (C-1) zone, and then only if and when a Conditional
Use Permit has been obtained therefor from the Planning Commission in accordance with
Chapter 25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition to
the information required by Section 25.72.020, an applicant for a Conditional Use Permit
approval involving a time-share project shall submit in the application at least the
following information:
1. Copies of documents and information required pursuant to Article 12.2
of the California Administrative .Code, Section 2810 wherein the
requirements for a "substantially complete" application for a final
subdivision public report are enumerated.
2. A description of the means proposed to be employed to properly and
effectively collect and remit to the City the transient occupancy taxes
which will become due and payable from time to time in the future.
3. In the event an existing condominium project is proposed to be converted
to a whole or partial time-share project, a verified description or
statement of the number and percentage of the current condominium
owners desiring or consenting to the proposed conversion of some or all
of the units to a time-share basis. Also in such instance there shall be
submitted a verified statement of the number and percentage of owners
who have received notification, either personally or by receipted
PLANNING COMMISSION RESOLUTION NO.
certified U.S. Mail that aplication to so convert the project would be
submitted to the Commission together with when the City staff and the
Commission would consider such application.
4. In the case of a new mixed project (ie: Time-sharing-
condominium/rental) a description of the means proposed to be employed
to disclose the number and location of all time-share units within the
project.
5. Description of time periods, types of units, and which units are in the
time-share program (if less than all), and the length of time each of the
units are committed to the time-share program.
25.100.040 Conditions of Approval. The Planning Commission may grant a
Conditional Use Permit for "Time-share" subject to conditions as set forth in Section
25.72.060.
25.100.050 Findings. Prior to the granting of a Conditional Use Permit for
"Time-share" the Planning Commission shall determine that the findings delineated in
Section 25.72.070 are met.
25.100.060 Minimum number of Units in a Time-share Development. The
minimum number of units in a "time-share" project shall be twenty (20).
25.100.070 Development Standards For Time-Share Development. "Time-
Share" Developments shall be designed to conform to the standards for hotel
developments in the zone in which the property is located.
25.100.080 Transient Occupancy Tax Applicable. All time-share projects shall
be subject to the provisions of the City's Transient Occupancy Tax Ordinance.
25.100.010 Exceptions. This Chapter is not applicable to those projects which
applications for approval from the State Department of Real Estate have been filed prior
to December 4, 1980, or projects which the City has approved prior to December 4, 1980.
eF
INTEROFFICE MEMORANDUM
City of Palm Desert
TO: Sheila R. Gilligan, City Clerk
FROM: Ramon A. Diaz, Director of Environmental Services
SUBJECT: Revised Time-Share Ordinance No. 280 DATE: December 7, 1981
Attached please find pages three and four of the Time-Share Ordinance for second
reading, with revised page three as instructed by Council .
/pa
f
ORDINANCE NO. 280 Page Three
113.28.030 Tax Imposed. (Continued) For purposes of this section, the rent
deemed payable on account of time-share occupancy by a transient shall be the rental
value of the unit or room(s) which accommodated such occupancy, which rental value shall
be computed by determinin the rorata share of the total purchase rice of the time-
share ri ht or entitlement whether or not involvingan estate or an ownershipin real
property which share is allocable to the period of transient occupancy currently involved,
and adding thereto the total amount of any and all fees, assessments, charges and
expenses charged by the operator as attributable to the time-share occupancy of the
transient by whatever name such fees assessments charges or expenses may be
denominated, whether "occupying fee", "maintenance or operations charge", "Per diem
fee", "management fee" or like name or otherwise. In making the computation referred to
above of the prorata share of the total puchase price, in any case wherein the time-share
right or entitlement is in perpetuity or for life or otherwise not for a definite or
ascertainable term, such proration shall be made upon an assumed term of forty years.
The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If
the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due when the transient ceases to occupy space in the
hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax
administrator may require that such tax shall be paid directly to the tax administrator.
Tax on occupancies in exchange for services of any kind is due and payable to the City by
the operator, the amount of tax being determined on the basis of six percent of the
current rental value of the accommodations furnished. (Ord. 6 S3, 1973)."
SECTION 3: Addition. That Chapter 25.100 is hereby added to the Code of the
City of Palm Desert, to read as follows:
"CHAPTER 25.100
TIME-SHARE PROJECTS
25.100.010 Defined. As used in this Chapter, time-share project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of years,
to the recurrent, exclusive use'or occupancy of a lot, parcel, unit, room(s), or segment of
real property, annually or on some other seasonal or periodic basis, for a period of time
that has been or will be allotted`fro'm the u'e or occupancy periods into which the project
has been divided and shall include, but not limited to time-share estate, interval
ownership, vacation license, vacation lease, club membership, time-share use, and
hotel/condominium.
25.100.020 Permitted Zones. A time-share project shall be permitted only in
the Planned Commercial Resort (PC-4) zone, when developed in conjunction with a Hotel
or General Commercial (C-1) zone, and then only if and when a Conditional Use Permit
has been obtained therefor from the Planning Commission in accordance with Chapter
25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition to
the information required by Section 25.72.020, an applicant for a Conditional Use Permit
approval involving a time-share project shall submit in the application at least the
following information:
1. Copies of documents and information required pursuant to Article 12.2
of the California Administrative Code, Section 2810 wherein the
requirements for a "substantially complete" application for a final
subdivision public report are enumerated.
2. A description of the means proposed to be employed to properly and
effectively collect and remit to the City the transient occupancy taxes
which will become due and payable from time to time in the future.
3. In the event an existing condominium project is proposed to be converted
to a whole or partial time-share project, a verified description or
statement of the number and percentage of the current condominium
owners desiring or consenting to the proposed conversion of some or all
of the units to a time-share basis. Also in such instance there shall be
submitted a verified statement of the number and percentage of owners
who have received notification, either personally or by receipted
s
y
ORDINANCE NO. ?g0 Page Four
certified U.S. Mail that aplication to so convert the project would be
submitted to the Commission together with when the City staff and the
Commission would consider such application.
4. In the case of a new mixed project (ie: Time-sharing-
condominium/rental) a description of the means proposed to be employed
to disclose the number and location of all time-share units within the
project.
5. Description of time periods, types of units, and which units are iri the
time-share program (if less than all), and the length of time each of the
units are committed to the time-share program.
25.100.040 Conditions of Approval. The Planning Commission may grant a
Conditional Use Permit for "Time-share" subject to conditions as set forth in Section
25.72.060.
25.100.050 Findings. Prior to the granting of a Conditional Use Permit for
"Time-share" the Planning Commission shall determine that the findings delineated in
Section 25.72.070 are met.
25.100.060 Minimum number of Units in a Time-share Development. The
minimum number of units in a "time-share" project shall be twenty 20 .
25.100.070 Development Standards For Time-Share Development. "Time-
Share" Developments shall be designed to conform to the standards for hotel
developments in the zone in which the property is located.
25.100.080 Transient Occupancy Tax Applicable. All time-share projects shall
be subject to the provisions of the City's Transient Occupancy Tax Ordinance.
25.100.010 Exceptions. This Chapter is not applicable to those projects which
applications for approval from the State Department of Real Estate have been filed prior
to December 4, 1980, or projects which the City has approved prior to December 4, 1980.
i
i �
ORDINANCE NO. 280
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA, AMENDING SECTIONS
OF CHAPTER 3.28 (TRANSIENT OCCUPANCY TAX) AND
ADDING CHAPTER 25.100 (TIME-SHARING) TO THE
MUNICIPAL CODE.
CASE NO ZOA 14-81
WHEREAS, the City Council of the City of Palm Desert, California, did on the 3rd
day of December, 1981, hold a duly noticed Public Hearing, to consider amending
sections of Chapter 3.28 (Transient Occupancy Tax) and adding Chapter 25.100 (Time-
Sharing) to the Municipal Code; and
WHEREAS, THE Planning Commission, by Resolution No. 758 has recommended
approval; and,
WHEREAS, said application has complied with the requirements of the "City of
Palm Desert Procedures to Implement the California Environmental Quality Act,
Resolution No. 80-89", in that the Director of Environmental Services has determined the
project is a Class 5 Categorical Exemption; and,
WHEREAS, at said Public Hearing, upon hearing and considering all testimony and
arguments, if any, of all persons desiring to be heard, said City Council did find the
following facts and reasons to exist to approve the addition of Chapter 25.100 (Time-
Sharing) to the Zoning Ordinance Text:
1. That the addition to the Zoning Ordinance Text is consistent
with the objectives of the Zoning Ordinance.
2. That the addition to the Zoning Ordinance Text is consistent
with the adopted General Plan.
3. That the addition to the Zoning Ordinance Text would better
serve the public health, safety, and general welfare, than the
current regulations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert, as follows:
1. That the above recitations are true and correct and constitute
the considerations of the Council in this case.
2. That it does hereby approve the Municipal Code Amendments, as
provided in the attached exhibit, labeled Exhibit "A", to amend
Municipal Code Section 3.28, and add Section 25.100.
3. The City Clerk is directed to publish this Ordinance once in the
Palm Desert Post, a newspaper of general circulation, published
and circulated in the City of Palm Desert, and shall certify to
the passage of adoption of this Ordinance, and the same shall be
in full force and effect thirty (30) days after its adoption.
PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert City
Council, held on this day of , , by the following vote to wit:
AYES:
?r-� NOES:
c . J ABSENT:
ABSTAIN:
S. ROY WILSON, Mayor
ATTEST:
SHEILA R. GILLIGAN, City Clerk
City of Palm Desert, California
/pa
ORDINANCE NO. 7Rn Page Two
EXHIBIT "A"
SECTION 1: Amendment. That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel" means any structure, or any portion of any structure, which is
occupied or intended or designed for use or occupancy by transients, including, but not
limited to dwelling, lodging or sleeping purposes, and includes any hotel, lodging, house,
roominghouse, apartment house, time-share project or facility, dormitory, public or
private club, mobile home or house trailer at a fixed location, as permitted by Section
7281 of the Revenue and Taxation Code of the State, or other similar structure or portion
thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement to the
use or possession, of any hotel rooms, rooms or any portion thereof offered for rent for
dwelling, lodging or sleeping purposes regardless of the purpose for which such rooms are
rented or provided.
C. "Operator" means the person who is proprietor of the hotel whether in the
capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-share project
or facility manager or operator, or any other capacity. Where the operator performs his or
its functions through a managing agent of any type or 'character, the managing agent shall
also be deemed an operator for the purpose of this chapter, and shall have jointly and
severally the same duties and liabilities as his principal. Compliance with the provisions of
this chapter by either the principal or the managing agent shall, however, be considered to
be compliance by both.
D. "Rent" means the consideration charged or chargeable to the tenant or
person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods, labor or otherwise, including the full value of receipts, cash,
credits, property, or service of any nature whatsoever. "Rent may have been or may be,
payable prior to or following (in whole or in part) the occupancy to which it is
attributable and may have been paid in whole or in part in advance on a long term basis,
such as in a time-share project or similar arrangement. It is not the intent of this section
to make the operator liable for the tax on uncollected rent. However, uncollected rent
must be reported.
E. "Tax Administrator" means the director of finance, or such other individual
as may be designated by the City Council.
F. "Time-share Occupancy" means occupancy related to the situation wherein
a purchaser receives the right or entitlement in perpetuity, for life or for a term of years
or other extended term to the recurrent, exclusive use or occupancy of a lot, parcel, unit,
rooms , hotel or portion thereof, or segment of real property, annually or on some other
seasonal or periodic basis, for a period of time that has been or will be allotted from the
use or occupancy periods into which the time-share project which is involved has been
divided. The said ri ht or entitlement to occupancy mav attach in advance to a specific
lot, parcel, unit, rooms , or portion of a hotel or segment of real property, or may
involve designation or selection of the same at a future time or times.
G. "Transient" means any person who exercises occupancy or is entitled to
ocupancy by reason of concession, permit, right of access, license, time-share
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days. Any
such person so occupying space in a hotel shall be deemed to be a transient until the
period of thirty days has expired. Unless days of ocupancy or entitlement to occupancy by
one person are consecutive without any break then prior or subsequent periods of such
occupancy or entitlement to occupancy shall not be counted when determining whether a
period exceeds the stated thirty consecutive days. In determining whether a person is a
transient, uninterrupted periods of time extending both prior and subsequent to November
26, 1973, may be considered. (Ord. 134 SSl, 2, 1976; Ord. 6 S2, 1973).
SECTION 2: Amendment. That Section 3.28.030 of the Code of theCity of
Palm Desert, California, is hereby amended to read as follows:
"3.28.030 Tax Imposed. For the privilege of occupancy in any hotel, each
transient is subject to and shall pay a tax in the amount of six percent of the rent charged
by the operator or otherwise payable by the transient. The tax constitutes a debt owed by
the transient to the City which is extinguished only by payment to the operator or to the
City.
t
ORDINANCE NO. 2go Page Three
"3.28.030 Tax Imposed. (Continued) For purposes of this section, the rent
deemed payable on account of time-share occupancy by a transient shall be the rental
value of the unit or room(s) which accommodated such occupancy, which rental value shall
be computed by determinin the rorata share of the total purchase rice of the time-
share right or entitlement whether or not involving an estate or any ownership in real
property) which share is allocable to the period of transient occupancy currently involved,
and adding thereto the total amount of any and all fees, assessments charges and
expenses charged by the operator as attributable to the time-share occupancy of the
transient by whatever name such fees assessments, charges or expenses may be
denominated, whether "occupying fee", "maintenance or operations charge", "Per diem
fee", "management fee" or like name or otherwise. In making the computation referred to
above of the prorata share of the total puchase price, in any case wherein the time-share
right or entitlement is in perpetuity or for life or otherwise not for a definite or
ascertainable term, such proration shall be made upon an assumed term of forty years.
The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If
the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due when the transient ceases to occupy space in the
hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax
administrator may require that such tax shall be paid directly to the tax administrator.
Tax on occupancies in exchange for services of any kind is due and payable to the City by
the operator, the amount of tax being determined on the basis of six percent of the
current rental value of the accommodations furnished. (Ord. 6 S3, 1973)."
SECTION 3: Addition. That Chapter 25.100 is hereby added to the Code of the
City of Palm Desert, to read as follows:
"CHAPTER 25.100
TIME-SHARE PROJECTS
25.100.010 Defined. As used in this Chapter, time-share project shall mean 1
one wherein a purchaser receives the right in perpetuity, for life, or for a term of years, 1
to the recurrent, exclusive use or occupancy of a lot, parcel, unit, room(s), or segment of
real property, annually or on some other seasonal or periodic basis, for a period of time
that has been or will be allotted from the use or occupancy periods into which the project
has been divided and shall include, but not limited to time-share estate, interval
ownership, vacation license, vacation lease, club membership, time-share use, and
hotel/condominium.
25.100.020 Permitted Zones. A time-share project shall be per 4ondition
nly in
the Planned Commercial Resort PC-4 zone, F6aned Reside^3 ^! ���-) gon
4*E@00L or General Commercial (C-1) zone, and then only if and when l
Use Permit has been obtained therefor from the Planning Commission in accordance with
Chapter 25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition to
the information required by Section 25.72.020, an applicant for a Conditional Use Permit
approval involving a time-share project shall submit in the application at least the
following information:
I. Copies of documents and information required pursuant to Article 12.2
of the California Administrative Code, Section 2810 wherein the
requirements for a "substantially complete" application for a final
subdivision public report are enumerated.
2. A description of the means proposed to be employed to properly and
effectively collect and remit to the City the transient occupancy taxes
which will become due and payable from time to time in the future. -
3. In the event an existing condominium project is proposed to be converted
to a whole or partial time-share project, a verified description or
statement of the number and percentage of the current condominium
owners desiring or consenting to the proposed conversion of some or all
of the units to a time-share basis. Also in such instance there shall be
submitted a verified statement of the number and percentage of owners
who have received notification, either personally or by receipted
ORDINANCE NO. 7,rp Page Four
certified U.S. Mail that aplication to so convert the project would be
submitted to the Commission together with when the City staff and the
Commission would consider such application.
4. In the case of a new mixed project (ie: Time-sharing-
condominium/rental) a description of the means proposed to be employed
to disclose the number and location of all time-share units within the
project.
5. Description of time periods, types of units, and which units are in the
time-share program (if less than all), and the length of time each of the
units are committed to the time-share program.
25.100.040 Conditions of Approval. The Planning Commission may grant a
Conditional Use Permit for "Time-share" subject to conditions as set forth in Section
25.72.060.
25.100.050 Findings. Prior to the granting of a Conditional Use Permit for
"Time-share" the Planning Commission shall determine that the findings delineated in
Section 25.72.070 are met.
25.100.060 Minimum number of Units in a Time-share Development. The
minimum number of units in a "time-share" project shall be twenty (20).
25.100.070 Development Standards For Time-Share Development. "Time-
Share" Developments shall be designed to conform to the standards for hotel
developments in the zone in which the property is located.
25.100.080 Transient Occupancy Tax Applicable. All time-share projects shall
be subject to the provisions of the City's Transient Occupancy Tax Ordinance.
25.100.010 Exceptions. This Chapter is not applicable to those projects which
applications for approval from the State Department of Real Estate have been filed prior
to December 4, 1980, or projects which the City has approved prior to December 4, 1980.
/pa
I
1
MINUTES
NOVEMBER 3, 1981
built on an R-1 Ake. Commissioner Miller conc ed with his concer stating that they
would be setting a p cedent.
Commissioner Crit asked staff if the Church an MIR station acros from this
roposed development were ned R-1 prior to developing. r. Diaz replied t t they
re zoned Planned Residentia .
oved by Commissioner Wo , seconded by Commissioner ichards, to adopt
findings a recommended by staff. Carr' d 4-1 (NAY: KRYDER).
Moved Commissioner Wood, seco ed by Commissioner Richar to adopt
Planning Commis 'on Resolution No. 755, appr ving Conditional Use Permit -81, as
amended, subject to nditions. Carried 4-1 (NAY: RYDER).
THERZ WAS A 10 MINUTE CESS - MEETING RECONVE D AT 9:15 P.M.
C. Case No. ZOA 12-81 CITY OF PALM DESERT, Ap icant
Consideration of an Amen ent to the Palm Desert Zoni
Ordinance establishing a Pla ed Community Development
a d Planned Residential Develo ent Overlay Zones.
Mr. Diaz rev wed the proposed amendment d recommended approval.
Chairman Kryder ened the public testimony an asked if anyone present wished
to speak in Favor or Oppos on to this case. There being one, public testimony was
closed.
Moved by Commissioner R hards, seconded by Commissioner Crites, to adopt
Plan 'ng Commission Resolution No. 56, recommending approval ta.the City Council.
Carrie unanimouslyr;
D. se No. ZOA 13-81 - CITY OF P M DESERT, Applicant
Consi ration of an Amendment to Se tion 25.58.035 of
the Mu ' ipal Code 'to allow building fronting upon
President's laza East and West to expand on story to the
sidewalk.
Mr. Drell reviewed the pr osed amendment and recommen d approval.
Ch 'rman Kryder opened the public timony and asked if anyone wi ed to speak
in Favor or position to this case. There bein one, the public testimony was osed.
Moved by Commissioner Woods, seconded Commissioner Crites, to dcpt
Planning Commissio Resolution No. 757, recommen 1qg approval to the City Counhh,\
Carried unanimously.
E. Case No. ZOA 14-81 - CITY OF PALM DESERT, Applicant
Consideration of an Amendment to Palm Desert Municipal
Code, Chapter 3.28 (Transient Occupancy Tax) and adding
Chapter 25.100 (Time-Sharing).
Mr. Smith reviewed the staff report noting that this matter (time-share) had been
subject to a moratorium and would expire November 5, 1981. He stated that according to
the City Attorney this type of use cannot be prohibited. Mr. Smith pointed out that time-
sharing would only be permitted in zones in which hotels are permitted. Staff
recommended approval.
Commissioner Richards stated that because there were no options, he was in favor.
Commissioner Wood stated that he was a member of the City Time-Share
Committee and that Committee has reviewed the matter and recommended approval.
-4-
I
MINUTES
NOVEMBER 3, 1981
Chairman Kryder opened the public testimony and asked if anyone wished to speak
in Favor or Opposition to this case.
MR. BERNARD SOLOMON, 73-135 Irontree, stated he was presently an owner of
time-share property and spoke in favor, but stressed the importance of having a hotel tied
in for better management. He also pointed out that the method of calculating rental
value for the purposes of transient occupancy tax should be the same for Right to Use
(RTU) time-shares, as it is for fee simple time-share ownership. In determining rental
value, only the purchase price and the maintenance costs should be included. Other costs
such as furniture replacement, should not be improved. The method of collecting the
transient occupancy tax and transmitting it to the City should be handled through the
hotel.
Chairman Kryder closed the public testimony.
Mr. Smith explained that the reason different formulas were used for RTU and Fee
owners was because given two equal time-share developments, if one were sold on a right
to use basis and the other on fee simple basis, the fee simple development would, in most
instances, have a higher selling price. Therefore, the longer period of years to be used to
establish rental value is felt to be valid. Total maintenance costs including furniture
replacement and other items are valid inclusions in determining rental value because,
were this a hotel, the room rate would be increased to compensate for these
improvements. This is in keeping with the City's policy of treating time-share as it would
a hotel development.
There was some discussion on the Bed Tax formula on whether to use one formula
or calculate the fees as suggested by Mr. Solomon. Commissioner Richards felt that since
this was a new process, this should be kept as proposed and reviewed after a certain time
period.
Mr. Diaz felt that a formula was needed and suggested that a recommendation be
made to keep the formula as proposed, then after the first time-share project, it should be
studied.
Commissioner Richards concurred and pointed out a time period should be specified
in the Ordinance and it should note that changes can be made.
After further discussion it was agreed to instruct staff to report to City Council,
Planning Commission concerns on this matter.
Moved by Commissioner Wood, seconded by Commissioner Crites, to adopt
Planning Commission Resolution No. 758, as submitted, with recommendation to City
Council that concerns expressed by Planning Commission be considered. Carried 4-1
(NAY: RICHARDS).
F. Case No. ZOA 15- - CITY OF PALM DESE , Applicant
Consideration of an endment to Municipa Code,
Chapter 25.30.240, Subse 'on F, concerning max um
building height in the PC (4) Zo
Mr. Joy viewed the proposed amendment a recommended approva
Commissioner ood asked if this would impact a one's view or aesthete Mr.
Diaz replied that Design eview Board would make sure it not.
Chairman Kryder opene the public testimony and asked i yone wished to speak
Favor or Opposition to this cas .
R. BERNARD SOLOMON, exp ined that a gable roof raises t height of a
building 34 feet, and in the instance of ' proposed project, Granada Roya Hometel,
a gable roo would better suit the project ra r than a mansard roof. He explai ed the
difference in a lat roof compared to a gable roo , tressing that there would be a gr ter
risk of leakage in flat roof.
Chairman Kryde closed the public testimony.
Moved by Commissi er Wood, seconded by Commissi er Richards, to adopt
Planning Commission Resoluti No. 759, recommending approval the City Council of
-5-
o
PLANNING COMMISSION RESOLUTION NO. 7S�F
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM
DESERT, CALIFORNIA, RECOMMENDING APPROVAL TO THE CITY COUNCIL
OF AN AMENDMENT TO THE ZONING ORDINANCE TEXT, BY AMENDING
CHAPTER 3.28 (TRANSIENT OCCUPANCY TAX) AND ADDING CHAPTER
25.100 (TIME-SHARING)
CASE NO. ZOA 14-81
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on
the 3rd day of November; 1981, hold a duly noticed Public Hearing to consider the
proposed amendment of Municipal Code to amend Section 3.28 to include "Time-Sharing"
as a use which is required to remit to the City the Transient Occupancy Tax and to insert
a new section permitting "Time-Sharing"" in certain zones and subject to certain
requirements.
WHEREAS, the proposed amendment is a minor alteration to land use limitations
and therefore is a Class 5 Categorical Exemption for the purposes of CEQA.
WHEREAS, at said Public Hearing, upon hearing and considering all testimony and
arguments, if any, of all persons desiring to be heard, said Planning Commission did find
the following facts and reasons to exist to recommend approval of a Zoning Ordinance
Text Amendment.
1. That the Zoning Ordinance Amendment is consistent with
the objectives of the Zoning Ordinance.
2. That the Zoning Ordinance Amendment would better serve the
adopted General Plan.
3. That the Zoning Ordinance Amendment would better serve the
public health, safety and general welfare, than the current
regulations.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Palm Desert, as follows:
1. That the above recitations are true and correct and constitute
the considerations of the Commission in this case;
2. That it does hereby recommend a Zoning Ordinance Text Amendment,
as provided in the attached exhibit, labeled Exhibit "A", to
amend Municipal Code Chapter 3.28 and add Chapter 25.100.
PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert
Planning Commission, held on this 3rd day of November,_1981, by the following vote, to
wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
GEORGE KRYDER, Chairman
ATTEST:
RAMON A. DIAZ, Secretary
/pa
PLANNING COMMISSION RESOLUTION NO.
EXHIBIT "A"
SECTION 1: Amendment. That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
113.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel" means any structure, or any portion of any structure, which is
occupied or intended or designed for use or occupancy by transients, including, but not
limited to dwelling, lodging or sleeping purposes, and includes any hotel, lodging, house,
roominghouse, apartment house, time-share project or facility, dormitory, public or
private club, mobile home or house trailer at a fixed location, as permitted by Section
7281 of the Revenue and Taxation Code of the State, or other similar structure or portion
thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement to the
use or possession, of any hotel rooms, rooms or any portion thereof offered for rent for
dwelling, lodging or sleeping purposes regardless of the purpose for which such rooms are
rented or provided.
C. "Operator" means the person who is proprietor of the hotel whether in the
capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-share project
or facility manager or operator, or any other capacity. Where the operator performs his or
its functions through a managing agent of any type or character, the managing agent shall
also be deemed an operator for the purpose of this chapter, and shall have jointly and
severally the same duties and liabilities as his principal. Compliance with the provisions of
this chapter by either the principal or the managing agent shall, however, be considered to
be compliance by both.
D. "Rent" means the consideration charged or chargeable to the tenant or
person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods, labor or otherwise, including the full value of receipts, cash,
credits, property, or service of any nature whatsoever. "Rent may have been or may be,
payable prior to or following (in whole or in part) the occupancy to which it is
attributable, and may have been paid in whole or in part in advance on a long term basis,
such as in a time-share project or similar arrangement. It is not the intent of this section
to make the operator liable for the tax on uncollected rent. However, uncollected rent
must be reported.
E. "Tax Administrator" means the director of finance, or such other individual
as may be designated by the City Council.
F. "Time-share Occupancy" means occupancy related to the situation wherein
a purchaser receives the right or entitlement in perpetuity, for life or for a term of years
or other extended term to the recurrent, exclusive use or occupancy of a lot, parcel, unit,
rooms , hotel or portion thereof, or segment of real property, annually or on some other
seasonal or periodic basis, for a period of time that has been or will be allotted from the
use or occupancy periods into which the time-share project which is involved has been
divided. The said right or entitlement to occupancy may attach in advance to a specific
lot, parcel, unit rooms , or portion of a hotel, or segment of real property, or may
involve designation or selection of the same at a future time or times.
G. 'Transient" means any person who exercises occupancy or is entitled to
ocupancy by reason of concession, permit, right of access, license, time-share
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days. Any
such person so occupying space in a hotel shall be deemed to be a transient until the
period of thirty days has expired. Unless days of ocupancy or entitlement to occupancy by
one person are consecutive without any break, then prior or subsequent periods of such
occupancy or entitlement to occupancy shall not be counted when determining whether a
period exceeds the stated thirty consecutive days. In determining whether a person is a
transient, uninterrupted periods of time extending both prior and subsequent to November
26, 1973, may be considered. (Ord. 134 SSI, 2, 1976; Ord. 6 S2, 1973).
SECTION 2: Amendment. That Section 3.28.030 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.030 Tax Imposed. For the privilege of occupancy in any hotel, each
transient is subject to and shall pay a tax in the amount of six percent of the rent charged
by the operator or otherwise payable by the transient. The tax constitutes a debt owed by
the transient to the City which is extinguished only by payment to the operator or to the
City.
- - 1
PLANNING COMMISSION RESOLUTION NO.
"3.28.030 Tax Imposed. (Continued) For purposes of this section, the rent
deemed payable on account of time-share occupancy by a transient shall be the rental
value of the unit or rooms which accommodated such occupancy, which rental value shall
be computed by determinin the rorata share of the total purchase rice of the time-
share ri ht or entitlement whether or not involvingan estate or an ownershipin real
property which share is allocable to the period of transient occupancy currently involved,
and adding thereto the total amount of any and all fees, assessments, charges and
expenses charged by the operator as attributable to the time-share occupancy of the
transient by whatever name such fees, assessments, charges or expenses may be
denominated, whether "occupying fee", "maintenance or operations charge", "Per diem
fee", "management fee" or like name or otherwise. In making the computation referred to
above of the prorata share of the total puchase price, in any case wherein the time-share
right or entitlement is in perpetuity or for life or otherwise not for a definite or
ascertainable term, such proration shall be made upon an assumed term of forty years.
The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If
the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due when the transient ceases to occupy space in the
hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax
administrator may require that such tax shall be paid directly to the tax administrator.
Tax on occupancies in exchange for services of any kind is due and payable to the City by
the operator, the amount of tax being determined on the basis of six percent of the
current rental value of the accommodations furnished. (Ord. 6 S3, 1973)."
SECTION 3: Addition. That Chapter 25.100 is hereby added to the Code of the
City of Palm Desert, to read as follows:
"CHAPTER 25.100
TIME-SHARE PROJECTS
25.100.010 Defined. As used in this Chapter, time-share project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of years,
to the recurrent exclusive use or occupancy of lot, parcel, unit, room(s), or segment of
P Y a
real property, annually or on some other seasonal or periodic basis, for a period of time
that has been or will be allotted from the use or occupancy periods into which the project
has been divided and shall include, but not limited to time-share estate, interval
ownership, vacation license, vacation lease, club membership, time-share use, and
hotel/condominium.
25.100.020 Permitted Zones. A time-share project shall be permitted only in
the Planned Commercial Resort PC-4 zone, Planned Residential (PR) zone, Multifamily
(R-3) zone or General Commercial (C-1) zone, and then only if and when a Conditional
Use Permit has been obtained therefor from the Planning Commission in accordance with
Chapter 25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition to
the information required by Section 25.72.020, an applicant for a Conditional Use Permit
approval involving a time-share project shall submit in the application at least the
following information:
1. Copies of documents and information required pursuant to Article 12.2
of the California Administrative Code, Section 2810 wherein the
requirements for a "substantially complete" application for a final
subdivision public report are enumerated.
2. A description of the means proposed to be employed to properly and
effectively collect and remit to the City the transient occupancy taxes
which will become due and payable from time to time in the future.
3. In the event an existing condominium project is proposed to be converted
to a whole or partial time-share project, a verified description or
statement of the number and percentage of the current condominium
owners desiring or consenting to the proposed conversion of some or all
of the units to a time-share basis. Also in such instance there shall be
submitted a verified statement of the number and percentage of owners
who have received notification, either personally or by receipted
PLANNING COMMISSION RESOLUTION NO.
certified U.S. Mail that aplication to so convert the project would be
submitted to the Commission together with when the City staff and the
Commission would consider such application.
4. In the case of a new mixed project (ie: Time-sharing-
condominium/rental) a description of the means proposed to be employed
to disclose the number and location of all time-share units within the
project.
5. Description of time periods, types of units, and which units are in the
time-share program (if less than all), and the length of time each of the
units are committed to the time-share program.
25.100.040 Conditions of Approval. The Planning Commission may grant a
Conditional Use Permit for "Time-share" subject to conditions as set forth in Section
25.72.060.
25.100.050 Findings. Prior to the granting of a Conditional Use Permit for
"Time-share" the Planning Commission shall determine that the findings delineated in
Section 25.72.070 are met.
25.100.060 Minimum number of Units in a Time-share Development. The
minimum number of units in a "time-share" project shall be twenty (20).
25.100.070 Development Standards For Time-Share Development. "Time-
Share" Developments shall be designed to conform to the standards for hotel
developments in the zone in which the property is located.
25.100.080 Transient Occupancy Tax Applicable. All time-share projects shall
be subject to the provisions of the City's Transient Occupancy Tax Ordinance.
25.100.010 Exceptions. This Chapter is not applicable to those projects which
applications for approval from the State Department of Real Estate have been filed prior
to December 4, 1980, or projects which the City has approved prior to December 4, 1980.
` II
i
CITY OF PALM DESERT
STAFF REPORT
TO: Planning Commission
FROM: Department of Environmental Services
SUBJECT: Zoning Ordinance Amendment to Permit
Time-Sharing in Certain Zones
CASE: ZOA 14-81
DATE: November 3, 1981
BACKGROUND: Earlier this year the City established a moratorium and began
investigating time-sharing.
The City Council established a Time-share Committee. A meeting of the Time-share
Committee was held in September and the attached report prepared by Staff, dated
August 4, 1981, was discussed. The Committee endorsed the regulations proposed in that
report. City Council reviewed the Time-share Committee decision and referred the
matter to Planning Commission for hearing.
ENVIRONMENTAL ASSESSMENT: The addition of "Time-Sharing" as a permitted use in
certain zones has been reviewed in accordance with the California Environmental Quality
Act and determined to be a Class 5 Categorical Exemption.
DISCUSSION: The August 4, 1981 report on Time-sharing (copy attached), provides a
history of Time-sharing, a breakdown of California and Hawaii Time-sharing regulations.
Additionally, a response to some of the major issues which had been raised concerning
time-share, a fdiscussion concerning. land use compatibility (ie:where it should .be
permitted), and:a memo from the City Attorney dated April 7, 1981, stating that in his
. opinion, the City does not have the constitutional authority to blanketly prohibit time-
sharing.
With this opinion from the City Attorney, Staff elected to propose an Ordinance
Amendment which would permit "Time-sharing" in certain zones subject to the issuance of
some type of use permit.
A draft of the proposed Ordinance has been prepared and is attached hereto.
The first and second sections of the Draft Ordinance would amend Chapter 3.28 of the
Municipal Code to include "Time-sharing" as hotel type of land use for the purposes of the
collection by the City of Transient Occupancy Tax.
The third Section of the draft Ordinance would add a new Chapter to the Municipal Code.
Section 25.100.010 defines "Time-Share".
Section 25.100.020 delineates the zones in which 'Time-share" will be permitted. In all
zones the use is subject to the issuance of a Conditional Use Permit. The Draft Ordinance
proposes to permit 'Time-share" in all zones where the present code permits hotel uses. It
is felt that this is reasonable because for all intents and purposes, a 'Time-Share" land use
is no different than a hotel. Only the ownership of the "Time-Share" is different in that
the owners of time-share have an exclusive right to use of the facilities whereas the
shareholders of hotels are paid dividends instead of having the right to use the hotel. This
is discussed in more detail in the August 4, 1981 report.
Section 25.100.030 delineates additional information which is to be submitted when a
Conditional Use Permit application is submitted for a 'Time-Share" project.
Section 25.100.040, confers upon the Planning Commission the right to impose the same
conditions on a Time-Share as may be imposed on any other Conditional Use Permit
application.
V
Section 25.100.050 requires that the Planning Commission must make necessary findings
as required for a regular Conditional Use Permit, before the Conditional Use Permit may
be granted.
Section 25.100.060 specifies that the minimum number of units in a "Time-Share" project
shall be twenty (20). This minimum number of units was recommended by a recognized
expert in the field as being necessary to suport adequate on-site management, site
maintenance and allow for proper marketing.
Section 25.100.070 provides that "Time-Share" developments shall be designed to conform
to the standards required for a hotel in the zone in which the property is located.
Section 25.100.080 states that all "Time-Share" projects will be subject to the provisions
of the City's Transient Occupancy Tax Ordinance.
Section 25.100.090 exempts from the provisions of this Chapter time-share projects for
which applications for approval from the State Department of Real Estate have been filed
prior to December 4, 1980, or projects which the City has approved prior to December 4,
1980.
This Draft Amendment has been revised since it was issued by the Time-Share
Committee. A Draft Ordinance based on a proposed Ordinance for Palm Springs, was
included in the August 4, 1981 report. Certain sub-sections of Section 25.100.030 of that
Draft Ordinance (ie: Information to be submitted with Conditional Use Permit
application) have been deleted as it was felt they were unnecessary. Section 25.100.040
(Conditions of Approval) of that Draft Ordinance has been deleted and replaced by the
existing Municipal Code Section relating to conditions which may be imposed on a
Conditional Use Permit application.
Section 25.100.050 of that Draft Ordinance (minimum Time-Share Structure Size) has
been deleted because it was felt that other sections of the Code already limit the size of
units through maximum number of units per acre, required open space and maximum
height limits.
_ t
PREPARED BY:
y
REVIEWED AND APPROVED BY:
/pa
INTEROFFICE MEMORANDUM
City of Palm Desert
TO: TIME-SHARE COMMITTEE
FROM: DEPARTMENT OF ENVIRONMENTAL SERVICES
SUBJECT: TIME-SHARE ANALYSIS DATE: AUGUST 4, 1981
INTRODUCTION
The Time-share Committee requested a comparative analysis of California and Hawaii
time-share regulations. 'The study was generated by the Committee's concern of
'Council 's statements relating to Hawaii ' s time-share problems. _
This report will analyze those regulations and address the concerns raised relative
to permitting time-sharing in Palm Desert.
HISTORY OF TIME-SHARING
In 1968 time-sharing was introduced in the United States, however, it was not readily
accepted by developers. A strong resort condominium market reflective of the overall
strength in the 1970 economy contributed to the lack of time-share developments. The
downturn of the real estate industry in 1974 resulted in many unsold resort units.
Time-sharing became one method for developers to salvage projects. Unfortunately,
for these developments, time-share was an afterthought and not part of their original
concept. Problems including poor financing, lack of concept understanding, and lack
of exchange programs were commonplace. Despite these problems some high quality time-
share developments succeeded.
As time-share became more widespread better financing, consumer understanding and
expanded exchange programs developed; builders also became more responsive to market
demands. All of these improvements resulted in an ;incredible growth of time-share
resorts; from 73 held by 40,000 owners in 1976 to 250 held by 200,000 owners two
years later with a doubling in sales each year since 1976.
CALIFORNIA-HAWAII REGULATIONS
A table delineating the provisions of each state's requirements is provided in
".Appendix A. Both regulations were designed to reduce the problems that had developed,
, in the time-sharing industry. ,
California's regulations require the creation of a Homeowner's Association and the
declaration of the CC&R' s. In addition, the developer must present evidence of
habit ability or financial ability to complete the project, sufficient property
interest in the project to assure its completion, and permissibility of the project
by local ordinance.
continued. . .
Time-share Committee
August 4, 1981 Page Two
Appendix B provides a more detailed description of the regulations. This appendix
is a copy of regulations proposed to implement SB 1736 which established criteria
to regulate time-share in California by the Department of Real Estate.
Hawaiian time-share regulations were established in November, 1980. Time-share
projects are permitted in hotels and areas designated for hotel use, resort use, or
transient vacation rentals use as determined by local authority. Existing time-share
projects were exempted.
Appendix C more fully describes the provisions of Hawaii ' s regulations.
PALM DESERT TIME-SHARE CONCERNS
The major issues' raised in Palm Desert concerning time-share are:
a) Sales techniques
b) Advertising
c) Maintenance
d) Impact on transient occupancy tax
There have been instances of sales techniqu where gifts are promised but not delivered
and high pressure tactics used. These g rally involve your lower quality develop-
ments such as converted motels. :The five day cooling-off period provided by California
7 '. 9� regulation is one answer. Under this provision a purchaser may elect to -cancel any
sj 'agreement. :State regulations also require all advertising techniques to be reviewed
y¢ -by the Department of Real Estate. In addition, a provision providing for a Purchaser's
t� Awareness Package could be provided in city regulations.
4�
$001 The major concern of maintenance has been addressed by the requirement that the CC&R's
of a development must provide for regular assessments to defray maintenance costs and
provide several means of collecting from delinquent owners.
'In terms of the City's transient occupancy tax, the proposed time-share provisisions
provide a vehicle enabling the City to collect those revenues from time-share develop-
ments.
WHO BUYS TIME-SHARES AND WHY?
A study organized and funded by the Resort Time-Sharing Council of some 28,000 owners,
at 185 locations, with a response of nearly 9700, was conducted_ in 1980. The result of
that survey is attached to this report as Appendix D.
The typical time-share purchaser was in his mid-forties, with an annual income in
excess of $33,000, married and had an above average level of education.
The reasons for-time-share investment in order of importance:
a) Exchange opportunity
b) Future vacation savings
c) Investment and resale potential
Of those responding, 86.3% were either "very satisfied" or "satisfied" with their
time-share purchase. 61. 5% indicated they intended to acquire additional time-shares.
Only 4.5% of the respondents were either "dissatisfied" or "very dissatisfied".
continued. . .
Time-share Committee
August 4, 1981 Page Three
The survey showed that owners used their units an average of 8 days per year and
spent $85 per day in the local community.
LAND USE COMPATIBILITY
California regulations presently require an indication from the local jurisdiction
that a proposed time-share project is not prohibited. 'The regulations basically
permit time-sharing unless expressly prohibited by ordinance or requires a use permit.
When one speaks of prohibition it is doubtful that a blanket prohibition could be
• established and defended--see attached City Attorney memo April 7, 1981. That memo
states: "The prohibition of the time-share project as a form of development is not
currently within the constitutional means of the City. "
The problem in establishing a blanket prohibition relates to the difficulty in
distinguishing the degrees and varieties of ownership and the affects these uses
may have on the public health, safety, and general welfare.
As was discussed previously and in the Hawaii Conference Committee Report, time-sharing
and transient vacation rental use are identical uses'of land, without regard to owner-
ship. ;Land use decisions should be based on the use of the land and not on ownership.
For this reason time-sharing and transient vacation rentals should either be permitted
or prohibited on an equal basis within certain zones. The proposed ordinance makes
such provision.
As was discussed in the January 22, 1981, report on time-sharing to City Council
(attached as Appendix E), resort hotels are permitted in the PC (4) zone, PR zone,
R-3 zone and C-1 zone subject to obtaining development plan or conditional use permit
approval . If time-sharing were not to be prohibited outright, then the use should be
limited to the above noted zones subject to obtaining both a development plan and
conditional use permit or some type of special permit process.
As discussed in the January 22, 1981, report the "Transient Occupancy Tax" can be ,
collected in "time-share" developments so the potential loss of hotel-zoned land
to time-share developments should not present problems. . In examining the amount of
vacant PC (4) land in the City and the possible difficulties in obtaining financing
for hotel developments, time-sharing may provide an alternate method of financing such
4i \' developments.
Permitting time-sharing in planned residential and R-3 zones where hotels are presently
permitted, may result in conflicts between full-time owners and time-share occupants.
However, present short-term rentals operating in the major country club developments
within Palm Desert have not resulted in conflicts. Furthermore, case studies cited
in The Resort Time Sharing Industry Report Vol . II showed no conflicts on mixed
time-share permanent residential projects.
It is felt that in the case of existing condominium developments, which may wish to
change some of the units to time-share, that a majority of the owners be required to
vote in favor of the proposed change.
continued. . .
Time-share Committee
August 4, 1981 Page Four
In the case of a new mixed condominium time-share development, a provision requiring
full disclosure of this fact and the location of the time-share units should be an
adequate means of protecting anyone who does not wish to locate in a time-share
development.
SUMMARY
In light of the City Attorney' s opinion of April 7, 1981, that the City does not
have the constitutional authority to blanketly prohibit "time-sharing" throughout
the City, that the best means of controlling time-share developments as to permit it
in specified zones subject to the issuance of some type of use permit. A draft
ordinance is attached to this report.
The Time-share Committee should review this report and provide comment at the
next committee meeting. S It is _proposed that the report with applicable comments of
I_ the committee incorporated then be forwarded to the City Council with an appropriate .
recommendation.
ON A. I Z
RAD/lr
Attachments
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, AMENDING SECTIONS OF CHAPTER 3.28 (TRANSIENT
OCCUPANCY TAX) AND ADDING CHAPTER 25.100 (TIME-SHARING) TO
THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN
as follows:
SECTION 1: Amendment, That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel "means any structure, or any portion of any structure, which
is occupied or intended or designed for use or occupancy by transients, including, but
not limited to dwelling, lodging or sleeping purposes, and includes any hotel , lodging,
house, roominghouse, apartment house,-time-share project or facility, dormitory, public
or private club, mobile home or house trailer at a fixed location, as permitted by
Section 7281 of the Revenue and Taxation Code of the state, or other similar structure
or portion thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement
to the use or possession, of any hotel .rooms,rooms or any portion thereof offered for
rent for dwelling, lodging or sleeping purposes regardless of the purpose for which
such rooms are rented or provided.
C. Operator means the person who is proprietor of the hotel whether in
the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-
share project or facility manager or operator, or any other capacity. Where the
operator performs his or its functions through a managing agent of any type or charac-
ter, the managing agent shall also be deemed an operator for the purpose of this
chapter, and shall have jointly and severally the same duties and liabilities as his
principal . Compliance with the provisions of this chapter by either the principal
or the managing agent shall , however, be considered to be compliance by both.
D. "Rent" means the consideration charged or chargeable to the tenant or
person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods, labor or otherwise, including the full value of receipts,
cash, credits, property, or service of any nature whatsoever. "Rent" may have been
or may be payable prior to or following (in whole or in part) the occupancy to which
it is attributable, and may have been paid in whole or in part in advance on a long-
term basis, such as in a time-share project or similar arrangement. It is not the
intent of this section to make the operator liable for the tax on uncollected rent.
However, uncollected rent must be reported.
E. "Tax Administrator" means the director of finance, or such other
individual as may be designated by the City Council .
F. "Time-share Occupancy" means occupancy related to the situation wherein
a purchaser receives the right or entitlement in perpetuity, for life, or for a term
of years or other extended term, to the recurrent, exclusive use or occupancy of a lot,
parcel unit room s hotel or portion thereof, or segment of real property, annually
or on some other seasonal or periodic basis fora period of time that has been or
will be allotted from the use or occupancy periods into which the time-share project
which is involved has been divided. The said right or entitlement to occu anc ma
attach in advance to a specific lot parcel , unit, room s or portion of a hotel , or
segment of real property, or may involve designation or selection of the same at a
future time or times.
G. Transient" means any person who exercises occupancy or is entitled
to occupancy by reason of concession,' permit', right of access, license, time-share
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days.
Any such person so occupying space in a hotel shall be deemed to be a transient
until the period of thirty days has expired. Unless days of occupancy or entitlement
to occupancy by one person are consecutive without any break, then prior or subsequent
periods of such occupancy or entitlement to occupancy shall not be counted when deter-
mining whether a period exceeds the stated thirty consecutive days. In determining
whether a person is a transient, uninterrupted periods of time extending both prior
and subsequent to November 26, 1973, may be considered. (Ord. 134 SS1, 2, 1976;
Ord. 6 S2, 1973) . "
r
ORDINANCE NO. Page Two
SECTION 2: Amendment. That Section 3.28.030 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.030 Tax Imposed. For the privilege of occupancy in any hotel , each
transient is subject to and shall pay a tax in the amount of six percent of the rent
charged by the operator or otherwise payable by the transient. The tax constitutes
a debt owed by the transient to the City which is extinguished only by payment to
the operator or to the City. For purposes of this section, the rent deemed payable
on account of time-share occupancy by a transient shall be the rental value of the
unit or rooms which accommodated such occupancy, which rental value shall be
computed by determining the prorata share of the total purchase price of the time-
share right or entitlement whether or not involvingan estate or an own ershi I
in real property which share is allocable to the period of transient occupancy
currently involved, and adding thereto the total amount of any and all fees assess-
ments, charges and expenses charged by the operator as attributable to the time-share
occupancy of the transient by whatever name such fees, assessments charges or expenses
may be denominated, whether "occupying fee", "maintenance or operations charge",
Per diem fee", "mana,emg the computation
referred to above of the prorata share of the total purchase price, in any case wherein
the time-share right or entitlement is in perpetuity or for life or otherwise not for
a definite or ascertainable term, such proration shall be made upon an assumed term of
forty years. The transient shall pay the tax to the operator of the hotel at the time
the rent is paid. If the rent is paid in installments, a 'proportionate share of the
tax shall be paid with each installment. The unpaid tax shall be due when the tran-
sient ceases to occupy space in the hotel . If for any reason the tax due is not paid
to the operator of the hotel , the tax administrator may require that such tax shall
be paid directly to the tax administrator. Tax on occupancies in exchange for services
of any kind is due and payable to the City by the operator, the amount of tax being
determined on the basis of six percent of the current rental value of the accommoda-
tions furnished. (Ord. 6 53, 1973) . "
SECTION 3: Addition. That Chapter 25. 100 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"CHAPTER 25. 100
TIME-SHARE PROJECTS `l
25.100.010 Defined. As used in this Chapter, time-share project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of
years, to the recurrent, exclusive use or occupancy of a lot, parcel , unit, room(s),
or segment of real property, annually or on some other seasonal or periodic basis,
for a period of time that has been or will be allotted from the use or occupancy per-
iods into which the project has been divided and shall include, but not limited to
time-share estate, interval ownership, vacation license, vacation lease, club member-
ship, time-share use, and hotel/condominium.
25.100.020 Permitted Zones. A time-share project shall be permitted only
in the Planned Commercial Resort PC-4) zone, Planned Residential (PR) zone, Multi-
family (R-3) zone or General Commercial (C-1) zone, and then only if and when a
Conditional Use Permit has been obtained therefor from the Planning Commission in
accordance with Chapter 25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition
to the information required by Section 25.72.020, an applicant for a Conditional Use
Permit approval involving a time-share project shall submit in the application at
least the following information:
1. Legal description, street address or other location description
sufficient to identify the property. ( L_ ZS �z'O°°
2. Description of the time-share periods into which the project is
proposed to be divided.
3. Description of the nature of time-share rights, entitlements,
estates, or the like into which the project is proposed to be
divided, and the methods by which additional such interest may
be created or existing interests may be transferred or conveyed.
L ,
" r
aL/
PLUa0JLL23 'laasa0 wLPd 10 44L0
WL3 k4Q `NV9IllI9 *2 VlI3HS
_J
:1S311V
,AO4?W `NOSIIM AOS 'S
:NIVISOV
1N3SGV
:S30N
:S3AV
:ILM 04
°aloA 6ULM0L10J a44 A'q °PLuaoJLL23 °laasa0 wLed do S1L3 a4l }o LLouno3 S413 a4l fiq
`I86i jo A'pp SL44 031d00V Pup `03AMddV `03SSVd
I 'UoL4dop2 aal}P skep (OE) 44UL44 loajja pup aoao} LLni
UL aq LL24S awes a4 L3 l PUP `2LUao�LLP3 `laasa0 wLpd 10 R1 a44 UL441M PalpLnoap
PUP pa4SLLgnd Aadpdsmau P 'lsod 4aasa0 wLPd a4l UL UoLldop2 jo skpp (91) ua@41'Lj
UL44LM aouo pa4sLLgnd aq of @DUPULPaO SL44 asnpo of paloaaLP A'gaaa4 sL `PLUa OJLLP3
laasaO wLed 10 4M a47 do 3aaL3 4113 aql 'U0LIP0L}L4aa3 :b NOI133S
'086i It aagwaoa0
of JOLad panoadd2 sp4 k1L3 a4l 4o14M sloaCoad ao `086j Itaagwaoa0 04 aoLad paLL4
Uaaq aAP4 ajP4S3 Lpaa jo luaw4apda0 a424S a44 w0a4 L2Aoadd2 ao3 SUOL4PoLLddp 4oL4M
sloaCoad aso4l 04 aLgPoLLddP lou sL aa4dP43 sL41 'SUOLI aox3 090'001'SZ
anoj a6pd 'ON 30NVNIR0
•spooyao946Lau a44 04 6uLLLaMp a44 So R4LLLgL4Pdwo0 z
`.4uedn000 a4PWL4Ln ay4 fq 4Lun 6uLllaMp a44 10 k4LLLgpsn 'i
:uodn paseq uOLSSLWWOJ 6ULuuPLd
a44 ao ss000ad MaLnaa U6LSap a44 Fq paSPDJOUL aq Rpw spaepue4s a41 '8
•sa6paP6 PUP SUOL4aod
pajooaun 10 anLsnLOxa `4aa4 aaenbs 0001 4seaL 4e 40 Pa-AP aOoLJ 6ULnLL wnWLULW a aney
LLPgs pa4aanuoo ao pa4oaaa aa4}eaaa4 4Lun 6uLllaMp aapgS-awL4 Faan3 •y _
•azLS aan4ona4S aaPgs-aWLl wnWLULW OSO'OOT'SZ
•UOLSSLWWOO a44 L'q 4UPnaLaa Pawaap SaO40PJ JE)440 L'uy •s
`�004s LeL4UapLSaa 4uaupwaad UO 6ULaeys-awL4 40 40PdwL ayl t
!SaOLn,Aas L'4L0 aan4n4 PUP 4Uasaad UO 6ULapgs-aWL4 So 40pdwL ayl E
'SassaUL
-snq LPLOaawwo0 6uL4SLxa UO UOLSaanu00 bULaegs-aWL4 So 40edWL aql 'Z
`.1304s LP4uaa 4UaLSUPa4 uo 4oaCoad 6ULaPyS-aWL4 a44 So 4oedwL ayl I
:bULMOLLOI a44 aapLs 00
LL124S uOLSSLWWOO a44 `OLO•ZL'sZ UOL4OaS 44LM UOL4ounCuoo UL anew L Ms uOLSSLW 00
a44 's6uLpuLJ a44 04 UOL4LPPP UI ' LpAoAddV Aoj su0L4Lpuo0 Ob0.00i 'sZ
'UOL4POLLddp ay4 3o UOL4PJapLSUOa
aadoad PUP a4PLadoadde up 04 aLgpaLsap aO fiaPSSaOaU saapLSUOD
4ueOLLdde ay4 ao UOLSSLWWOO a44 gO14M UOL4PWAOIUL aag40 �UV 'ZI
40aC0ad aaPgS-aWL4 a44 So 03UPua4ULPw PUP 4Uawa6PUPw 10 LanaL
4a040PJSL4PS P So L'4LnUL4U00 PUP 44LLLgp4s 'L'Oenbapp aan4n} a44
aa4ueaenb o4 paRoLdwa aq o4 pasodoad Sp044aW ay4 10 UOL4dLJDS@p V 'II
•4oaCOad
a44 UL441M s4Lun aae4S-aWL4 Lle 10 UOL4e00L pup aagwnu ay4 asoLDSLp
04 PaROLdwa aq o4 pasodoad supaw a44 4o uoL4dLa3sap P ( Le4uaa
/wnLULWOpuOO-6UL.AP4S-aWLJ :0L) 4OaCoad pax LW Mau P 10 aseo ay4 uI •OI
•U0L4P0LLddP qons
aaPLSuOD pLnOm uOLSSLWWO3 a44 PUP 44P4S 4410 a44 U04M 441M aa44a6
-04 UOLSSLWWOO a44 o4 p944Lwgns aq pLnoM 4oaCoad aq; 4aanu00 Os
04 uOL423LLddp 4P44 LLPW 'S'g PaL}L4,4a0 pa4dLa0aa Rq a0 L'LLPuosaad
aa441a `UOL4POLJL40U panLaOaa anP4 oqM saauMo So a6e4uaoaad pup
aagwnu ay4 So 4uawa4p4s paL4Laan P pa44Lwgns aq LLe4s aaa44 a0Ue4SUL
Bons uL OSLV •SLspq aaegs-awL4 p o4 s4Lun ay4 10 LLP aO aw0s 10
UOLsaanuOO pasodoad ay4 04 6UL4uasuo0 ao 6uLaLsap saauMo wnLULWopu00
4uaaano ay4 So a6p4uaoaad pup aagwnu a44 So 4uawa4e4s ao UOL4dLaOsap
paLjLaan P °4oaCoad aaPyS-9wL4 LPL4apd aO OLOV P 04 Pa4aanuo0
aq o4 pasodoad sL 40acoad wnLULw0pu00 6uL4SLxa UP 4uana a44 UI '6
•wpaboad aaP4s-8wL4 ay4 04 pa44LLuwoo aap s4Lun aq; So 40Pa aWL4 40
446uaL a44 PUP ` ( LLe u244 ssaL J0 wea60ad 3aPgS-0WL4 a44 UL aaP
s4Lun g014M PUP `s4Lun So sadL'4 `SpOLaad 9wL4 So U0L4dLa0SaO •g
•UOL4PLnbaa ao Mel L'q PaaLnbaL s4Lwaad ao s4aodaa
a4e4s3 LPaa So 4uaw4apdaO PLuaOJLLPO 6UL4SLxa LLP So saLdoO L
- •S4g6La PUP SLPnaaJUL aaP4s-awL4 10 UOL4PuaLLP AO UOL4Pa941P
`koupdnno `asn aq4 UO SU0L40La4saa pasodoad fin So U0L4dLa0SaO •s
•aan4n3 a44 UL awL4
04 aw14 woa4 aLgp4pd pup anp awooaq LLLM 40LyM SaXP4 kondn000
4uaLSuea4 a44 44LO ay4 04 4Lwaa PUP 40aLLo0 FLan140aj;a PUP
L'Laadoad o4 paL'oLdwa aq o4 pasodoad SUPaW a44 40 UOL4dLa0SaP y s
' •4uawa6ueaae ao wea6oad aaPgS-awL4 a44 04
40aCgns 4ou SL 4Pg4 43aCoad P UL 4Lun goea o4 °aLgPOLLdde aaagm
°pup 4updLOL4aed aapgS-awL4 yOPa 04 paU6LSSP S446La 6UL40n RUP
pup sasuadxa uowwoo aq4 So abp4uaoaad a0 UOL402a4 `PLnWJ04 aql v
aaa41 abed *ON 30NVNIao
1
z ,
X
O X X X X
LL
H
Q
U
3I X X X x X X X X X X X X
Q
2
N
Z
O
Ln
Ldce
W
a
C7
_Z
F-
L-)
Q
a'
F
O F
U U
= O F
X Z
C7 O
� ti L.)
Z W W J W
a O W F
a Q N
Z
W O
W m
Z y Z
Q ..J O
J 3k J a. :m F
F-
p 3 U to
p
O O W Z
Z N 2 X O
W 2 � 3 W ••
O U N N a' Q
w Q C W J
2 O F
W p U F LL W
J W ? U Q a
N w a N
W W Z < F-
F ti 3
w F F Lr)
w W Z Q Z J
a- W J + a
Z W N p a 2 E
W O Z F O
N a K a W W
3 c.7 W a uj r 3 F
p 2 F to
"J rN-i 3 Z OF
Q W Q t/) F O
Z
O F. LL J W W G3 U Z
.-I Z O a F-
uj W Z
y (n J
U ¢ ui Z CD fQ- O N W W
a' W O CDC)O N a = Z Q
w d K F w Z W g U Q 2
O C:: (7 Q C O = W = L.) W
W F N O Q a' J F to LL a O M
F � rZ-i Z 3 O Q Q O O F
Q O F
r+ O LL M U N
N W F LL V rZ-i LL (A
N E p c.7 Z
a
a' J a O W F L� W O Q W
O 4 W N Z O p Z F C F
N LLO
OJ Z W u U F Z W Z a' Q X
Ln W a' J F a > j Ld
a W O CD
p W F Q N a LL 0 U LL a
d
H
z
p X X x x x X X X x
LL
J
_ Q
U
3I >< X x x X
Q
2
Z
O
.-�
F-
W N r X
H H Q
Z H U N
O N LL w W
W O Q
a Z } z d
p p
Q W p
O W d O N
W - d W
a O O O
Q . W 1
W 2 F Z d
a- U fN O =D
W O F-
p o] Cr W 4'
Z W J O
C LL
N W U- U �W
~ W
N
N N
N F O w
W J N
Q ti U O Z Q
2 K J d H J
W FQ- = U m W m F-
Z `� d "7 O O J
~ O J O K Q W �Ji O
C4 CJ Q a a' 3 Z
«Zr Q O a' LL fN C' V)
O Z O H w
O H d'
H Z Z Q
X CDE ¢ U Q J N
W W N CC J 2' E > F- co F- w
C7 W d O,. O W
Z E 2 C7 W > U W
J M O Q N O H f F-
Z Q Z U W Z W Z J d
H H Q 17-1 (Z O O
W
Z d Z U U [Y O d' > w
O N W O W O U-
V)
F-(N Q O CC:
U O d W w Z F- _ .-
W F- 2' W co: E E W '
'D o' Z W U F- W J M: Z LL Z
K L O O WC.) CD of UO CCD LLJ 2 O cm)
- O U Q J U Q O Q Z O O
LLI w Q LL > p 0 C w H H
N_F- O W N O O W fY H F-
Z Q (D F- h- (N N W d 0
p C7 H Z H O O O J J J C' K
W H U 0- d 11 Q W U O
X N W J 07 Z O O E Z > N LL
H W d H ¢ O_' C' O W W Z
f C3 N W to U 11 C U LLD O H
4
Z
O X X X X X X X X
IL
n-i
J
Q
U
3I x x X x
Q
2
O
w
N
Z W
F F�-
z
0
u
U U
W
W O
Q W U Z d'
d
O rJ C) t C.9
Z d O Z
W a
d w W
d 2 W
Q F O W
W W d
F O N O
W H O W
pJ N J O
� W (N
Q U F-
W O
F U cl+ E U
K
Y Y O O Y
w
W Q Z W
co
m O in
d O N
~ Zr � N Z O
J Z
O_ N W W �-
Q Q Z H CD (M .Z. E t
w Z F- \ Z N
LL O H d N O) W
l.� Y H K Z r~-i H N
O LL U W
O a O 7
K H N O '� W W K
<
O O W d' 0. \ CDy Z ] O Q V7 la.
H Z K p LL N 2 N
J Q W V) w 0 Z
m
co Of w
�--� 3 W O F �
IQ- d OW 3 F- U` w
M: H r+ U-
p7 d O W O O
2 m Z I
2 ¢ W a N ui
LL 2 O
O F•..• = N Z N
Z to W W d' N
W N O Z m K w w
U W `-r O
wQ F- U 3 O �--�
CY K J w OW 2: w
W K d Of d = N
T_ICYlICE APID I1:UnMuaTIVE DIGEST
OF PROPOSED CS%NCTS 311 TF1F REMLATIONS
OF THE REAL FSTA:T ODMISSIONER ,
December 23, 1980
Pursuant to the authority vested in him by Sections 10080, 10131.6,
10170.4, 10249.2 and 11001 of the Business and Professions Code, to imnle-
rrnt, interpret or rake specific Sections 10131.6, 10170.4, 10249.11, 11000,
11010, 11010.2, 11012, 11013.2, 11013.4, .11018, 11018.5 of the Fkminess
and Professions Code, DAVID 11. FOX, Real Estate Ca[missioner of the State
of California, proposes to adopt, amend or repeal regulations in Chapter 6,
Title 10, California Administrative Code, as described below:
Please note that items 1 through 30 propose the adoption of time-share subdivision
regulations to caplerient the time-share le?islation effective January 1,
1981. 'These regulations and ii-ems 31 and 34 are to become effective as pro-
vided under Section 11346.2 of the Government code on or about April. 28, 1981.
The remaining changes, items 32 and 33, are to become effective on July 1, 1981.
1. Arend Section 2790.7 - Chapter 601, Statutes of 1980, amends
section 10249.3 and adds Section 10249.11 of the Business and
Professions Code to include time-share uses as out-of-state
subdivision offerings. --'his arendrent would conform this
section to the provisions of the new law.
2. Adopt Section 2810 - Defines "substantially corgplete" subdivision
public report application for purposes of Chapter 1152, Statutes
of 1980.
3. Adopt Section 2810.1 - Specifies the regulations in Article 12
applicable to tiro-share projects.
4. Adopt Section 2810.2 - Requires applicant for time-share public
rel-ort to present evidence of habitability of or financial ahility
to mnnlete the project, sufficient property interest in Project
to allow its ccs13letion, and pen-tissibili.ty of project under
local ordinance, if any.
5. Adopt Section 2810.3 - Prescribes purchase mnev handling rcxniire-
ments in connection with tine-share offerings.
ecifies conditions for the addition of
6. Adopt Section 2810.4 -
a dwelling unit to a tine-share project.
7. Adnpt section 2810.5 - Prescribes when time-share offerings witli
dcellin(T units both in the state and out: of the state will he
treated as an out-of-state subdivision.
8. Adopt Section 2810.6 - Requires subdivider to notify Department
of natural changes to tire-share project for whirh a public
report has already been issued..
9. Adopt Section 2810.7 - Provides that Real estate Comnissioner
can approve alternative rights and remedies affording ccrparable
benefits to tire-share amers.
10. Ado mt Section 2811 - RerpAres the sponsor of a tie.--share project
to record a declaration dedicating any dwelling units to the
tine-share project and requires certain provisions therein.
11. Adopt Section 2812 - Specifies standards for "reasonable arrangements"
in tine-share projects.
12. Adopt Section 2812. 1 - Requires transfer of control in tim-- share
project to owners association or to trustee prior to consu*matina
first sale of time-share interest in project.
13. Adopt Section 2812.2 - Requires conveyance of tire--share project
dwelling units to trustee prior to closing of sale of first tirt-
share interest and prescribes elenents of trust instrurent.
14. Adopt Section 2812.3 - Requires tip-share project sponsor to provide
security for paym, t of assessments and .mecifies remiirprents for
security.
15. Adopt Section 2812.4 - Prescribes conditions pertaininq to the
sponsor's subsidization of a time-share project operation.
16. Adopt Section 2812.5 - Requires covenant by tirr_-share project
sx)nsor not to encurber otwellinq units after execution of the
declaration without written consent of majorit%i of other. cmers.
17. Adopt Section 2812.6 - Requires the declaration in Section 2811
to prohibit partition of the project by comers.
1P,. adopt Section 2812.7 - Prescribes condition., for joint tim-share
and comercial use of ccrrm facilities.
19. Adopt Section 2812.8 - Prescribes that a mnarTer-ymt anent shall
be employed by a tiresshare project.
20. ,'adopt Section 2812.9 - Alla:!s rental of tire.-shard interests to
public under certain circcrostano.s.
21. Adopt Section 2812.10 - Requires tire--share piujr,ct to he i,sured
against property damage and personal injure cl.ims.
22. Adopt Section 2313 - Recruir_es regular reetinns of time-share project
masers and prescribes requirer-ents for such meetings.
23. Mont Section 2813.1 - Specifies rr3-bers' voting r..irdits i1 tire-
share project amer associations.
24. Adopt Section 2813.2 - Prescribes catuosition and election proondiires
for governing bodies of time-share project a-mer. association.
25. Adont Section 2813.3 - Specifies recmairesmnts for meetings of governing
holies of tine-share project aver associations.
-2-
f
26. Adopt Section 2813.4 - Specifies requirements for assessnents to
defray costs of operating tire-share projects.
27. Adopt Section 2813.5 - Requires dissemination of certain pertinent
infornation to all tine-share owners in a project.
28. Adopt Section 2813.6 - Requires that records of tine-share project
owners association be available for inspection and copying by
association renters.
29. Adopt Section 2813.7 - Specifies procedures and limits for a time-
share project owners association to discipline its ner ers.
30. Adopt Section 2813.8 - Specifies procedures for amending governinq
instnments of tine-share projects.
31. Repeal Section 2785(h) (10) - Conforms this section to the recent
decision in Council of Anthony Real Rstate Schools v, Fox, San
Diego Superior Court, ido. 8 , invalidatincT tTiis su')-
division. The subdivision had defined the organized disclosure
of real estate exam questions as "unethical conduct".
32. & 33. Arend Sections 2861 and 2862 - Conforms .these sections to Chapter
1149, Statutes of 1980 (AR 2915) which transfers jurisdiction over
nobilehore reqistrations from Department of Nbtor. Vehicles to
Department of Housing and Cam. mity Development.
?:OTP: These sections are to become effective July 1, 1981.
34. Aucend Section 3012 - Corrects "exemption" from licensees' .continuing
education rerniirement to "extension" of time for conpletinq recpnre-
rent.
-3-
x 'G
51312. CONFERENCE COMMITTEE REPORT NO.�•�O
Honolulu, Hawaii
April �� 1980
Honorable Richard S . H. - Wong
President of the Senate -
. Tenth State Legislature T
Regular Session of 1980
State of Hawaii
Sir: 5:
RE S.B. NO 1516 , S D. 1, H. 1
Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by, the House of Representatives
in S .B. No. 1516 , : 5 D. 1, H.D 1, entitled
"A BILL FOR AN ACT RELATING TO TIME SHARING" , ', 4
having met, and after full and free discussion, has agreed to µ
recommend and does recommend to the respective Houses the final _s
passage of this bill in an- amended form..
t The purpose of this bill is to^ regulate time sharing in -
the State of Hawaii .
In its resolution of the several issues involved in
this bill, your Conference Committee has taken note of the
growth of time sharing over the past several years, both in
: t
the State of Hawaii and in other tourist destination areas .
Your Committee is aware that time sharing has generated
controversy among the various interested parties , including
the governments of the State and of the several counties,
persons in the time share industry, and residents most _
directly affected by the growth of time sharing and its
potential for expansion. -
Simply stated; . those who favor time see it as. a
continuing stimulus to the economy of the State through the
creation of additional. jobs for residents of Hawaii and
-expenditures by time share participants . Opponents challenge
the conclusion that time sharing constitutes an economic .'
advantage to the State, and consider it to be disruptive ,
particularly within areas where permanent residents live.
The opponents would prefer the strict limitation or prohibi-
tion of time sharing, while its proponents favor enabling
legislation to establish definite guidelines and procedures
for its statutory regulation.
C
SMA 783 496
CONFERENCE COD*TTEE REPORT NO. + •
Page 2
'. .-. , ,
Your Committee concludes that it is necessar Y and
aced under strict governmental
to be 1
timely for time sharing P
regulation if the interests of the State , the time sharing
industry, the purchasers of time share units and above all,
the people of Hawaii, are to be served. Accordingly, it is
the intention of. your Committee that careful regulatory
oversight of time sharing in the State. of Hawaii be provided
The following are some of the more significant areas of ' '1
regulation addressed in this measure--
Sec. -3 Taxation. Provides for reliable and efficient
administration of real property and excise taxes.
Sec -4 County authority.' This mandate will be
particularly helpful in effor
to ts clarify hotel, resort and i a
transient vacation rental areas.` tThe counties do not presently
zone for the less traditional forms of transient visitor
°yaccommodations-, and should address this in the near future
�.
Sec -5 ," Geographic limitations Provides general , ,
prohibitiorr,_.except as specifically allowed in the enumerated. _
' subsections- '- :The first exemption`is"'a ,"grandfather" provision
r to avoid any retroactive effect of this section !. r ',r z ', ; •-s;!�-r r
t ) N 't"=." -a. }_ v.--• : tiy- _„- .: �4 s ,Y- `,• z
The second Rexemption subsection` provides for two exemptions "
1
from the prohibitory,-language. ' .First, time sharing and transient N�
vacation rentals are allowed in hotels . `-Second, time.. sharing and
;,: transient vacation rentals are. allowed where designated for hotel
use, resort use,.; br:transient vacation rentals use, pursuant to
county authority under. Section 46-4, Hawaii. Revised Statutes,
or where the county,, by its legislative process ,.' designates
hotel, transient vacation rental or resort use y+
It is the clear intention-' of your conferees that time ,
sharing and transient_vacation- rental use are. identicaZ uses of
-
g _ _. __ e.
Laud', without_regard, to owneshyp�and�that both' uses of land
§hould`be addressed`in:_a.-coequal._manner_by__the counties. .Your
conferees further note that county land use decisions are not
based on ownership, but on the use of the _ an in question. As
such, time sharing andtransien t vacation..rentals.. should . be .
either peYmitted or prohibited on an equal basis within an area
t
deemed appropriate. by the county
Your Committee further notes several areas of non-enforce-
40
ment of their own zoning ordinances by some- of the counties . In
this regard, it is not the present character of the nei.ghborhoodl
but its intended use by the county that is_ also important. The
egislature inten nties will be guided
ds by this Act: that the cou
by the notion that time sharing and transient vacation rentals
should not be ermitte w ere ttie life styles of the permanent
res' d � will• be disrupted in an unreasonable manner. Any
zoning code is only as good as its enforcement by a county.
SMA 784 851
VZI
CONFERENCE COMMITTEE REPORT NO.
Page 3
In its review of time sharing and transient vacation
rentals , your conferees concluded that several of the counties
have nut used their zoning authority on these less formal and
traditional types of transient visitor accommodations . The ; ;.
problems caused by this shortcoming in the county zoning
ordinances are clearly demonstrated. in the case of County of
Maui vs . Puamana Management Corporation (Civil No. 3474-78) ,
presently on appeal to the Supreme .Court of the State of Hawaii.
Your conferees elected not to pre-judge where in an appro-
priate area time sharing and. transient vacation rentals should
be allowed or prohibited, but. to leave that decision to each
county. as a logical -part of . its zoning or designation functions. '
Your Committee expects' that. the counties will act expeditiously e _ <
to clarify the .propriety of. these. uses under the zoning
ordinances
Sec. 6 Time sharing in projects .' Provides that
time sharing must be explicitly and prominently authorized .
in project instruments before such a use can commence in a ie Yr
project_ _ Such authorization shall be by a unanimous- vote o
;• - the unit owners ."' In. projects .which. presently contain time
sharing use,: the project_ instruments. will determine the , r,;
restrictions, if: any, to be imposed
Sec.- 7 Maintenance charges . In recognition that 4
time sharing may result_in more intensive use of buildings
or projects and their common elements , your Committee has
provided that higher maintenance fees; up to a maximum of a]n :.,
additional fifty pegEenf-may be a ss essed against time shar ;
units and transient vacation rental units located in-"the
same. building- as private residential units.' This proviso
will more equitably distribute maintenance costs, and should = :
have the collateral effect of discouraging the mixed use of
buildings. a
Sec 8 Mutual right to cancel . '' Provides a cooling-
off-period of five calendar days after the execution of the
contract or the receipt of the mandatory disclosure statement,
whichever is the latter.. It .is hoped that this will remove
some of the incentive to use high- pressure sales techniques.
Sec. -9 Disclosure statement. Provides for the dis-
closure of pertinent information to prospective purchasers.
Sec -10 Filing required; developer, sales agent,
acquisition agent and plan manager. Provides for filing of
the disclosure statement with the director. It also requires
` the filing of certain information by the acquisition agent,
sales agent and plan manager and requires those persons to be
bonded.
SMA 784 850
I __
kv
4
CONFERENCE COMMITTEE REPORT NO.
Page 4
Sec. =11 Prohibited practices. Your Committee has
defined and prohibited undesirable marketing practices such
as beach and street solicitation on a Statewide basis .
Your Committee believes that these provisions will help <`
to reduce the actual and perceived problems of time sharing. "
without unduly retarding the industry
Your Committee on Conference is in accord with the intent
and purpose of S .B. No . 1516 , S .D. 1, H.D. 1, as amended herein, ='
and recommends that it pass Final Reading in the form attached
hereto as S .B.. No_ 1516, S .D.. 1,. H..D_. 1,: 'C.D 1.. :
_ t sj:
_ r Respectfully submitted, may :
MANAGERS ON THE PART OF THEMANAGERS ON THE PART OF THE f �Eti s
HOUSE
J� v
T
RUSSELL BLAIR, Chairman '. ` s STE COBB, Chairman : u
-3 : r K.e. - .l P ✓ o .51 - i - 5 4 , "41.- I_'-
S AKI, Member DANTE CA
RPE TER, ember >
JA LARSE Me „ WADSWORTH YEE, MenTl�er Y� Q
t ( f
O ALD T. MASUTANI , Member 4
_ Y
i -
X. i
ITSUO SHITO, Member
c
DONNA R. IKEDA, Member
SMA 784 824
eNi�iX
jA
c?f
return coupled with the sizeable representation of the overall popula-
tion were more than enough to conclude that the survey results were very
. F
reliable.
Consumer Characteristics and Motivations N
It appears that when aggregating the variables of age, education,
income, and family type, the timeshare market is composed of a very
stable population. Due to their high income and educational attainment,
their middle-age and marital status, it would seem they are relatively
protected from extreme problems with any economic recession in the
country. This is especially r
evident in a market for relatively low �
cost recreational real property such as resort timesharing where most ,fir
units can be purchased for less than $5,000 a week.
Over one-half (56.3 percent) had household incomes in 1979 of
$30,000 or more, and 17.1 percent had incomes of $50,000 or more. The
-
approximate median annual income of timeshare households was about
$33,500. By way of.., comparison, it was estimated that the median income
of all households in the United States in 1979 was only i Y SI6,500. _
The average age of the head of household for timeshare buyers was
45.4. Over one-half (52.7 percent) were between the ages of 35 to 54.
The vast majority of timeshare buyers were married couples (89.4 per- " x
s "r
cent) . By contrast, only about 62 percent of all households in the s :
United States are now composed of married couples. i�
One of the most outstanding findings from the survey is the extremely
high level of education attained by the respondents. Over three-quarters
(75.8 percent) had attended college, with over one-half (54.9 percent)
Y.H.
being a colle g graduates, and 31.4 percent havingdone graduate work.
In regard to why people buy timeshares, the most frequently checked :
14 '�
• •
i -
answer was the exchange opportunity (71.4 percent) , followed by the
opportunity to save money on future vacation costs (59.4 percent) and
f investment or resale potential (38.8 percent) . Thus, respondents
' appear primarily concerned with flexible vacation plans while at the
same time being interested in holding down future vacation costs.
Timeshare Characteristics
The majority of timeshare units owned by respondents had two-
bedrooms (60.2 percent) , while only 10.4 percent were studios. The
number of weeks purchased was fairly evenly distributed amongst the
f four seasons, ranging from 23.9 percent for Fall to 26.3 percent for
Summer. This finding indicates that timeshares are marketable through-
out the year and not just during peak vacation periods.
Even though a recently offered commodity, over one-half (52.5 per-
cent) of the respondents already had purchased two or more weeks of
timeshare. About 10 percent had purchased their units in more than one
resort location. It` appears, therefore, that some timeshare buyers are
already beginning to collect not only multiple weeks, but also multiple
locations, even though being offered the exchange privilege with other
locations.
Even though relatively inexpensive compared to other types of
recreational real property, the majority of timeshare buyers still
finance their purchase rather than paying cash for it -- 67.6 percent
compared to 32.4 percent. Only 37.4 percent of the respondents stated
they would have purchased their timeshare without the availability of
financing.
Consumer Satisfaction
Respondents in the survey were asked, "In general, how satisfied
15
q 1 I!
are you with your timeshare purchase?" Answers were overwhelmingly
favorable with a very high 86.3 percent stating they were either "very -'
satisfied" (44.6 percent) or "satisfied" (41.7 percent) . Some 72.5 r2
percent said they would again purchase their timeshare in hindsight,
High satisfaction was most apparent amongst respondents who: .,U;', I,
1. had owned their timeshare longer;
2. had purchased multiple weeks; ; *
3, had purchased higher priced units;
Z:a
4. had purchased larger units;
5, had purchased for use or because they liked the unit;
6. intended to buy more timeshares;
7. had used their timeshare; 6'�
ram.
8, had requested an exchange; '
awl;
9. had an exchange confirmed;
10. received their own first trade choice;
11. were very �zx •satisfied with their trade; aT:.
12. felt the exchange privilege was fairly represented by their
salesperson,
13. were middle age and above;
14. had attained higher educational levels;
15. had higher incomes; a-;s
16. had purchased fee-type units; and
J17. had purchased units in projects originally built for timeshare. j -
An extremelyhigh 61.5 TM=g percent intended to buy additional time-
shares, either at their present resort location (24.6 percent) and/or 3 _
1 r
Jat another location (36.9 percent). Such findings not only indicate h�.�
a high degree of satisfaction amongst 1>
1 g present owners of timeshares, `�r•-
16
but -also a vast potential demand increase in the overall market. In
other words, a potential market not only exists with untapped buyers
but also with almost two-thirds of the existing buyers.
Only 18..6 percent of the respondents said they will attempt to
sell their present timeshare and not buy another, i.e. , no longer be
participants in the market. Some 40.2 percent stated they did not
plan to buy additional timeshare but rather just keep what they presently
own.
Use of Timeshares
A frequent argument made in the past against traditional types of
recreational real properties (recreational lots, detached vacation homes,
and wholly owned resort condominium units) was that they rarely were used
by their owners. Such does not seem to be the case with resort time-
shares.. Some 62.0 percent of the respondents already had vacationed in
their own timeshare unit. When combined with the respondents who have
not yet used their own unit but have taken advantage of the exchange
privilege, it appears that about three-quarters of the respondents
already have used a timeshare unit of some kind. This is true even
though 38.7 percent had made their purchase only within the past six
months.
Some 58.1 percent said they planned to use their interval every
year in the future. Another 28.3 percent planned to use the exchange
privilege every year, for a total planned timeshare annual use of 86.4 per-
cent. If these figures are generalized to all projects for all seasons
of the year, it appears that the issue of this type of property sitting
idle for long periods of time is much less relevant than it has been
for traditional types of recreational property.
17
About one-half (55.7 percent) of the respondents had vacationed in
c
their timeshare for a seven-day period, with the average stay being 8.2
days. The average number of visitors per party for the overall stay
was 4.0, including 3.0 adults and 1.0 children.
Consumer Expenditures x
Respondents were asked. to estimate their party's average daily
expenditures in the local area during their most recent vacation in a
timeshare unit. Results are summarized below: - ,
Average .
Item Daily Expenditure
Groceries and liquor bought in a store $17.02 -r
Eating out and nightclubs 25.47 +•
Other overnight lodging besides timeshare unit 2.67
Recreation (movies, green fees, tours, lift 14.00
tickets, etc )
Local transportation, (public bus, taxi, etc.) .76
Rental car 5.10 y :
Local shopping (souvenirs, gifts, apparel, etc.) 13.90
Other 6.42
Total ;
$85.34
;Q.
If averages for the eight items are accumulated, the overall aver- .1
age daily expenditure was $85.43. Respondents also spent an average of
another $285 on travel expenditures, including $205 for air travel, $75 F
for car travel, and $5 for other travel. About 30 percent used air
Saf
_ .
travel to arrive at -their destination, and about 20 percent used atravel
u_
agent for booking air or lodging accommodations.
Iq r£i
If average daily expenditures were multiplied by the average daily a�
18 r .h
stay by the estimated use rate by the total number of timeshare owners,
it was found that well in excess of
$100 mil
lion annually
is spent
loc
ally by timeshare vacationers. This estimate does not include travel
expenditures. More importantly, it does not include contributions made
by the timeshare projects themselves in terms of construction costs,
taxes
, fees, management,
8 sales expenditures, etc. Such estimates are
measured in the following case studies.
Summary
II �`
After surveying Y 8 almost 10,000 timeshare owners, it was found that
the typical consumer was in his mid forties, had an annual income in
* excess of $33,000, married, and well educated. They owned a two--bedroom
timeshare unit and bought it both for immediate use and for future
e
savings on vacations.
The purchase was financed. Most owners already
=` had purchased more than one week and most intend
ed to buy additional
weeks. Satisfaction with present purchase was ver
y prevalent.
- About three—qua'
rters had vacationed in a timeshare unit for an
average stay
_ 8 y of over eight days. The typical con
s
spent
85
i
S per
day in the local area w" hile on his timesha
re
e vac
ation and another $285
for travel expenditures.
j
i
i�
i
19
epjL)I X
CITY OF PALM DESERT
TO: City Council and City Manager
FROM: Department of Environmental Services
SUBJECT: Timesharing
DATE: January 22, 1981
I. INTRODUCTION:
This report is the result of a council directive to study timesharing.
The study will address the various land use, revenue, and sales tactics
issues involved with the concept of timesharing.
The City Council has declared a three month moratorium on timeshare projects
in response to growing interest of converting existing units to timeshare.
II. BACKGROUND:
A. Timeshare Defined: Unlike other forms of real estate property, timesharing
involves the sa a of time segments of occupancy of dwelling units.
Although a variety of forms exist, there are two principle types of time-
sharing. The first type is called right-to-use. With this type, a
purchaser pays a sum that entitles him to occupy a unit for a specific
length of time each year for a specific number of years. Other forms of
timesharing in this category include vacation license, vacation lease,
club membership and timeshare use. The second type of timesharing is
commonly known as fee simple ownership. With this type, a buyer purchases
a resort condominium unit for occupation for a specific length of time/
each year. This type of timesharing is also known as- interval ownership
and timeshare estate.
The difference between the two types is that under the latter form the
purchaser owns a piece of real property. The owner builds up equity and
pays property tax. The owner can sell , bequeath, or rent his slice of
the property.
According to the Department of Real Estates' proposed regulations, a
timeshared unit is one that consists of 12 or more timeshare owners.
The Department's proposed regulations do not distinguish between timeshare
and other forms o rm f developments that sell units for time periods such as
hotel/condos or stock cooperatives. Hotel/condos are similar to timeshare
units, but with fewer owners per units. When units are not occupied by
owners they are available to the general public for transient use. Stock
cooperative are units owned by a corporative entity with shareholders
holding the right to occupy the units. St"k. cooR=tive�units usually
serve es,..permaner1t 'deuces. although,,they can ,be timeshargd. Time-
sfiaring.;�as ef'Tin—ed in the Timeshare�Mora_ oriLm. Ordinance, encompasses
t�iese-forms of developments-as well . "--"
B. Timesharinq in Coachella Valley: Timeshare projects ventured into the
Coachella Valley in the late 1970's. Most of the existing projects are
located in Palm Springs. Currently, only one timeshare project--the
Shadow Mountain Resort and Racquet Club--exists in Palm Desert. In res-
ponse to the increasing number of timeshare projects occuring in the
Valley, many of the desert cities have placed moratoriums on such develop-
ments until appropriate studies have been completed.
Since the passage of the moratoriums, Rancho Mirage has banned timeshare
projects from the City and Palm Springs is holding public hearings on
ordinances regulating timesharing and collecting of a transient occupancy
tax. Palms Springs ' proposed ordinance permits timeshare projects in
those zones which permits hotels/motels. The Palm Desert City Council has
already seen the Rancho Mirage Ordinance; Palm Springs' proposed ordinances
are attached for your information.
l_
Timesharing • •
January 22, 1981 Page Two
III. LAND USE ISSUES:
A. Use Defined: Timesharing is generally considered a resort or vacation
and'u
se. completed by the industry indicate that vacation
concerns (such as the opportunity to exchange a unit in one area for a
unit in another area, the certainty of having accomodations, and the
savings on future vacation costs) are the major reasons people acquire
timeshare units. Articles written by industry personnel indicate that
timesharing is a resort/vacation use of land.
Current zoning practice in the City permits resort uses in the PC (4)
.(Planned Commercial , Resort Center) zone. Uses permitted in this zone
include hotels and related ancillary commercial uses, entertainment
facilities, and restaurants. Resort hotels are also permitted in the
PR (Planned Residential ), R-3 (Multifamily) and C-1. (General Commercial )
zones with either development plan or conditional use permit approval .
Besides being a resort use, timesharing is a transient type of activity.
Purchasers of timeshare units are transient residents, here only for a
short time period. Units, therefore, take on the characteristic as being
temporary lodging, such as hotel rooms, although there may be an interest
in real property.
B. Compatibility with Surrounding Uses: A major concern of the City is the
compatibility of timeshare projects with surrounding land uses, parti-
cularly residential uses. Generally, the situation consists of mixing a
transient residential use with permanent residential uses. Resort/vacation
use is inappropriate in residential areas due to the increased traffic
generation and multiple occupancies which may disturb the peace and quiet
of residential neighborhoods. In addition, lifestyles between those who
are permanent residents and those who are transient residents can be
different; conflicts between the two should be minimized through separation
of the two uses. Therefore, timeshare projects should not be permitted in
residential zones.
Staff has received numerous inquiries regarding the conversion of an
individual condominium unit to timesharing. This should not be allowed
for the reasons stated above. Also, once an individual unit timeshares,
it will be difficult to reconvert that unit for residential use since
conversion would require all owners to agree to sell to the same party.
C. Removal of Land for Residential Use: Construction of timeshare projects
remove land available for the construction of residential units for
b permanent residents. This is extremely important in Palm Desert since the
City s economic base is expanding and the City, therefore, needs an ade-
quate amount of land for vaeous residential uses to meet the housing needs
Of incoming residents. The current and proposed General Plans recognize
this need and set the goal of providing a "variety of housing types and
densities for varying income levels and lifestyles throughout the City".
.The top priority of the City should be to ensure that adequate land is
available for the needs of residents.
� 21P Timesharing also eliminates land for other types of resort and transient
U . uses, such as hotels with convention facilities. The City Council and
Planning Commission have expressed an interest in expanding the City's
convention facilities, as exemplified during the discussions regarding
DP 03-80 (Stein-Brief/Vista's proposed project to construct a condo/hotel
resort with convention facilities at the southwest corner of Highway 111
and 44th Avenue) . If permitted in resort commercial zones, timesharing
projects could preclude the development of other resort projects with
facilities the City desires.
Timesharing
January 22, 1981 Page Three
IV. REVENUE ISSUE:
A. Transient Occupancy Tax: The primary concern of the City in this area
pertains to the transient occupancy tax. Section 3.28.030 of the Palm
Desert Municipal Code imposes a 6% tax on the rent charged by the
operator of transient accomodations.
Although ownership of real property could be involved with timesharing
the units are still occupied by transients, or short termed occupants.
As defined by Section 3.28.02OF of the Municipal Code, a transient is
a person who "exercises occupancy or is entitled to occupancy by,.-reason
of concession, permit, right of access, license or other agreement for a
period of thirty consecutive calendar days or less." Most, if not all ,
timeshare owners fit this definition.
f.
Since timesharing is a transient use, it appears that the City could
charge a transient tax on said units. What needs to be determined is
the "rental value" of timeshare occupancies upon which the tax is levied.
In a normal hotel/motel rental , the "rental value" is the room rental rate
charged to the occupant. In timeshare, there is no specific rental rate
per day usage. Timeshare owners pay two costs which comprise the "rental
value" of the unit: 1) the purchase price of the unit for the term of
its use, which could be construed to be a form of prepaid rent; and 2)
the annual maintenance fee paid or payable, which includes maintenance
. charges, taxes, management fees, furniture, replacement reserves, and
other assessments. In those cases where a term is not specified, a 40
year term should be assumed, since the IRS allows 40 years as a useful
life of a hotel or apartment building for depreciation purposes. Com-
bining the two costs results in a rental value in following examples:"
Example 1: Timeshare unit sold for $5000 for an annual weekly stay(.for
a term of 20 years, with an annual maintenance fee of $250
(for the one week) payable monthly. The rental value per
."week of occupancy would be calculated as follows:
Maintenance Fee $250.00 f
Purchase Cost per year (20 yrs) 250.00
Rental Value per week 500.00
Rental Value per day 71.43
Transient Occupancy Tax per day
(71.43 x 6%) 4:29
Jfxample 2: Timeshare unit sold for $5000 for an annual weekly stay (no
term mentioned) , with an annual maintenance fee of $250 (for
the one week) payable monthly. The rental value per week
of occupancy would be calculated as follows:
Maintenance Fee $250.00
Purchase Cost per year (40 yrs) 125.00
Rental Value per week 375.00
Rental Value per day 53.57
Transient Occupancy.Tax per day
(53.57 x 6%) 3:211/
The above method to compute transient occupancy tax as it relates to
timesharing has been adopted by many California cities and is presently
under consideration in Palm Springs.
V. SALES TACTICS
Members of the City Council have received complaints from citizens regarding
sales tactics used by some developers of timeshare projects. Many people are
lured to projects by such gimmicks as free give aways. Once arriving at the
project the consumer, is subjected to a strong sales pitch and, in some
instances, the promised gift is not available. In response to numerous com-
plaints the Department of Real Estate is requiring all timeshare promotional
Timesharing
January 22, 1931 Page Four
material to be submitted to the Department for review. Also, all advertised
gifts must be available and given away. The Palm Springs City Attorney,
during a meeting of that City's Timesharing Task Force, felt that outside the
activities of the Department of Real Estate and various law enforcement agencies
. there was little else a city can do, although this issue could be investigated
further should alleged abuses continue.
VI. RECOMMENDATIONS:
Three options are available to the Council for action:
a) Take no action;
b) Ban timeshare projects from the City; or
c) Relegate timeshare projects to the Resort Commercial Zone, or other
zone(s) deemed appropriate, with a conditional use permit, establish
development standards, and amend Transient Occupancy Tax (Title 3 of
the Municipal Code) to collect said tax.
Staff's recommendation is to adopt option (b) , banning timesharing from the
City for the reasons stated in this report and in the proposed ordinance.
Staff further recommends that, should the ban be ruled invalid by a Court of
Law, Council direct Staff to proceed with option (c). Proposed draft
ordinance amending various sections of Title 3 (Transient Occupancy Tax)
and Title 25 (Zoning Ordinance) of the Municipal Code is attached for your
consideration.
,o
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, ADDING SECTIONS TO CHAPTER 25. 56 (GENERAL PRO-
VISIONS, ZONING ORDINANCE) OF THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY
ORDAIN as follows:
WHEREAS, there is a shortage of affordable housing in the City of Palm
Desert;
WHEREAS, the conversion of residential property within the City to vacation/
resort timesharing projects eliminates residential property, otherwise available for
rental or ownership in the City;
WHEREAS, vacation/resort timesharing project use is inappropriate in resi-
dential areas due to the increased traffic generation and multiple occupancies disturb-
ing the peace and quiet of residential neighborhoods; and
WHEREAS, vacation/resort timesharing project use precludes the development
of other resort uses desirable to the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert, as follows:
SECTION 1: Addition. That Section 25.56.480 is hereby added to the Code
of the City of Palm Desert, to read as follows:
"Section 25.56.480 - Timesharing - Defined. Timeshare project shall
mean one wherein a purchaser receives the right in perpetuity, for
life, or for a term of years, to the recurrent, exclusive use or
occupancy of a lot, parcel , unit room(s) , or segment of real property,
annually or on some other seasonal or periodic basis, for a period of
time that has been or will be allotted from the use or occupancy
period into which the project has been divided and shall include, but
not limited to timeshare estate, interval ownership, vacation license,
vacation lease, club membership, timeshare use, and hotel/condominium. "
SECTION 2: Addition. That Section 25.56.490 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"Section 25.56.490 - Timesharing - Prohibiting. The conversion of an
existing single family residential unit, an existing condominium
unit, an existing apartment or multifamily residential unit, or an
existing hotel or motel room or unit to a timeshare unit or project
is prohibited in all zones in the City. The construction, selling
or development of any timeshare project is prohibited in all zones
in the City. "
SECTION 3: Addition. That Section 25.56.500 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"Section 25.56.500 -Timesharing Exception. Section 25.56.480 is not
applicable to those projects for which applications for,approval from
the State Department of Real Estate have been filed prior to December
4, 1980, or projects in which the City has approved prior to December
4, 1980. "
SECTION 4: Certification. The City Clerk of the City of Palm Desert,
California, is hereby directed to cause this ordinance to be published once within
fifteen (15) days of adoption in the Palm Desert Post, a newspaper published and
circulated within the City of Palm Desert, California, and the same shall be in full
force and effect thirty (30) days after adoption.
PASSED, APPROVED and ADOPTED this day of 1981,
by the City Council of the City of Palm Desert, California , by the following vote,
to wit:
ORDINANCE NO. Page Two
AYES:
NOES:
ABSENT:
ABSTAIN:
f
S. ROY WILSON, Mayor
ATTEST:
SHEILA R. GILLIGAN, City Clerk
City of Palm Desert, California
/lr
l
. . l
.I'�'• n. '.
- ORDINAPJLE N0.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, AMENDING SECTIONS OF CHAPTER 3.28 (TRANSIENT
OCCUPANCY TAX) AND ADDING CHAPTER 25. 100 (TIMESHARING) TO
THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN
as follows:
SECTION 1: Amendment. That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel" means any structure, or any portion of any structure, which is
occupied or intended or designed for use or occupancy by transients, including, but
not limited to dwelling, lodging or sleeping purposes, and includes any hotel , lodging-
house, roominghouse, apartment house, timeshare project or facility, dormitory, public
or private club, mobile home or house trailer at a fixed location, as permitted by
Section 7281 of the Revenue and Taxation Code of the state, or other similar structure
or portion thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement to
the use or possession, of any hotel room, rooms or any portion thereof offered for rent
for dwelling, lodging or sleeping purposes regardless of the purpose for which such
rooms are rented or provided.
C. "Operator" means the person who is proprietor of the hotel whether in
the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, timeshare
Project or facility manager or operator, or any other capacity. Where the operator
performs his or its functions through a managing agent of any type or character, the
managing agent shall also be deemed an operator for the purpose of this chapter, and
shall h3v e jointly and severally the same duties and liabilities as his principal .
Compliance with the provisions of this chapter by either the principal or the managing
agent shall , however, be considered to be compliance by both.
D. "Rent" means the consideration charged or chargeable to the tenant or
person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods , labor or otherwise, including the full value of receipts,
cash, credits, property, or service of any nature whatsoever. "Rent" may have been
or may be payable prior to or following (in whole or in part) the occupancy to which
it is attributable and may have been paid in whole or in part in advance on a long-
term •'basis- Such as in a timeshare rroject or similar arranaem:ent. It is not the
intent of this section to make the operator liable for the tax on uncollected rent.
However, uncollected rent must be reported.
E. "Tax administrator" means the director of finance, or such other
individual as may be designated by the City Council .
F - "Timeshare Occupancy" means occupancy related to the situation wherein
a purchaser receives the right or entitlement in perpetuity, for life or for a term
of years or other extended term to the recurrent, exclusive use or occupancy of a lot,
parcel unit room(s) hotel or portion thereof, or segment of real property, annually
or on some other seasonal or periodic basis for a period of time that has been or
will be allotted from the use or occupancy periods into which the timeshare project
which is involved has been divided Thesaid right or entitlement to occupancy may
attach in advance to a specific lot, parcel , unit, room(s) , or portion of a hotel , or
segment of real property, or may involve designation or selection of the same at a
future time or times.
G. "Transient" means. any person who exercises occupancy or is entitled
to occupancy by reason of concession, permit, right of access, license, timeshare
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days.
Any such person so occupying space in a hotel shall be deemed to be a transient until
the period of thirty days has expired. Unless days of occupancy or entitlement to
occupancy by one person are consecutive without any break, then prior or subsequent
eriods of suc occu ancy or entitlement to occu anc shall not be counted when deter-
mining whether a perio exceeds the stated t jrty consecutive days. In determining
whether a person is a transient, uninterrupted periods of time extending both prior
and subsequent to November 26, 1973,• may be considered. (Ord. 134 551, 2, 1976; Ord.
6 32, 1973). "
ORDINANCE NO. Page Two ,
SECTION 2: Amendment. That Section 3.28.030 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.030 Tax Imposed. For the privilege of occupancy in any hotel , each
transient is subject to and shall pay a tax in the amount of six percent of the rent
charged by the operator or otherwise payable by the transient. The tax constitutes
a debt owed by the transient to the City which is extinguished only by payment to the
operator or to the City. For purposes of this section, the rent deemed payable on
account of timeshare occupancy y a transient shall e the rentalva ue o t e unit or
rooms which accomodated such occupancy, which rental value shall be computed bit
determining the prorata share of the total urchase rice of the timeshare ri ht
or entitlement whether or not involving an estate or any ownership in real property)
which share is allocable to the period of transient occupancy currently involved
and adding thereto the total amount of any and all fees assessments charges and
expenses charged by the operator as attributable to the timeshare occupancy of the
transient by whatever name such fees, assessments charges or expenses may be deno-
minated, whether "occupying fee", "maintenance or operations charge" "per diem fee",
"management fee" or like name or otherwise In making the- computation referred to
above of the prorata share of the total purchase price in any case wherein the
timeshare right or entitlement is in peroetuity or for life or otherwise not for a
definite or ascertainable term such proration shall be made upon an assumed term of
forty Years. The transient shall pay the tax to the operator of the hotel at the
time the rent is paid. If the rent is paid in installments, a proportionate share of
the tax shall be paid with each installment. The unpaid tax shall be due when the
transient ceases to occupy space in the hotel . If for any-reason the tax due is not
paid to the operator of the hotel , the tax administrator may require that such tax
shall be paid directly to the tax administrator. Tax on occupancies in exchange for
services of any kind is due and payable to the City by the operator, the amount of
tax being determined on the basis of six percent of the current rental value of the
accomodations furnished. (Ord. 6 53, 1973). "
SECTION 3: Addition. That Chapter 25.100 is hereby added to the Code ci'
the City of Palm Desert, to. read as follows: -
"CHAPTER 25.100 I
TIMESHARE PROJECTS
25.100.010 Defined. As used in this Chapter, timeshare project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of
years, to the recurrent, exclusive use or occupancy of a lot, parcel , unit, room(s) ,
or segment of real property, annually or on some other seasonal or periodic basis, for
a period of time that has been or will be allotted from the use or occupancy periods
into which the project has been divided and shall include, but not limited to time-
share estate, interval ownership, vacation license, vacation lease, club membership,
timeshare use, and hotel/condominium.
25.100.020 Permitted Zones. A timeshare project shall be permitted only in
the Planned Commercial-Resort PC 4) zone and then only if and when a Conditional Use
Permit has been obtained therefor from the Planning Commission in accordance with
Chapter 25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition
to the information required by Section 25.72.020, an applicant for a Conditional Use
Permit approval involving a timeshare project shall submit in the application at least
the following information:
1. _ Legal description, street address or other location description
sufficient to identify the property.
2. Description of the timeshare periods into which the project is
proposed to be divided.
3. Description of the nature of timeshare rights, entitlements,
estates, or the like into which the project is proposed to
be divided, and the methods by which additional such interest
may be created or existing interests may be transferred or
conveyed.
1
ORDINANCE NO. Page Three
4. The formula, fraction or percentage of the common expenses and
any voting rights assigned to each timeshare participant and,
where applicable, to each unit in a project that is not subject
to the timeshare program or arrangement.
5. A description of the means proposed to be employed to properly
and effectively collect and remit to the City the transient
occupancy taxes which will become due and payable from time to
time in the future.
6. Description of any proposed restrictions on the use, .occupancy,
alteration or alienation of timeshare intervals and rights.
7. Copies of all existing California Department of Real Estate
reports or permits required by law or regulation.
8. , Description of time periods, types of units, and which units
are in the timeshare program (if less than all ) , and the
length of time each of the units are committed to the time-
share program.
9. In the event an existing condominium project is proposed to be
converted to a whole or partial timeshare project, a verified
description or statement of the number and percentage of the
current -condominium owners desiring or consenting to the pro-
posed conversion of some or all of the units to a timeshare
basis. Also in such instance there shall be submitted a veri-
fied statement of the number and percentage of owners who have
received notification, either personally or by receipted certi-
fied U.S. Mail that application to so convert the project would
be submitted to the Commission together with when the City Staff
and the Commission would consider such application.
10. A description of the methods proposed to be employed to guarantee
the future adequacy, stability and continuity of a satisfactory
level of management and maintenance of .the timeshare project.
11. Any other information which the Commission or the applicant
considers necessary or desirable to an appropriate and proper
consideration of the application.
25.100.040 Conditions for Approval . In addition to the findings, the
Commission shall make in conjunction with Section 25.72.070, the Commission shall
consider the following:
1. The impact of the timesharing project on transient rental
stock;
2. The impact of timesharing conversion on existing commercial
businesses;
3. The impact of timesharing on present and future City services;
4. The impact of timesharing on permanent residential stock.
5. Any other factors deemed relevant by the Commission.
L 25.100.050 Minimum Timeshare Structure Size.
A. Every timeshare dwelling unit hereafter erected or converted shall have
a minimum living floor area of at least 1000 square feet, exclusive of unroofed por-
tions and. garages.
B. The standards may be increased by the design review process or the
Planning Commission based upon
1. Usability of the dwelling unit by the ultimate occupant;
2. Compatibility of the dwelling to the neighborhoods.
ORDINANCE NO. Page Four .
25- 100.060 Exceptions. This Chapter is not applicable to those projects
which applications for approval from the State Department of Real Estate have been
filed prior to December 4, 1980, or projects which the City has approved prior to
December 4, 1980. "
SECTION 4: Certification. The City Clerk of the City of Palm Desert,
California, is hereby directed to cause this Ordinance to be published once within
fifteen (15) days of adoption in the Palm Desert Post, a newspaper published and
circulated within the City of Palm Desert, California, and the same shall be in
full force and effect thirty (30) days after adoption.
PASSED, APPROVED, and ADOPTED this day of.- 1981,
by the City Council of the City of Palm Desert, California, by the following vote,
to wit:
c ,
AYES:
NOES: :. ,..
ABSENT:
ABSTAIN:. . ,. .. .. .
S. ROY WILSON, Mayor
ATTEST:
SHEILA R. GILLIGAN, City Clerk C
City of Palm Desert, California
i
Memo to James McPherson
Re: Constitutionality of Time Sharing Prohibition
April 7, 1981
Dear Mr. McPherson:
At your request, I have researched what I consider
to be the constitutionality of a prohibition of time share
projects within the City of Palm Desert as the same are
defined by Section 11003.5 of the Business and Professions
Code of the State of California. It is my conclusion that
a time sharing project cannot constitutionally be prohibited
within cities, unless there is a specific finding that
such a prohibition is necessary to preserve the public health,
safety, morals or general welfare of the community. I find
it difficult to distinguish the degrees and varieties of
ownerships and to prohibit a form of ownership which may
include a number of people, as opposed to, or as distinguished
from a regulation of some lesser number. In any event, I
think the prohibition of the time share project as a form
of development is not currently within the constitutional
means of the City. If further research is desired, please
let me know.
]A;e:
ou v y truly,
D J. ERWIN
DJE:pb
r .
.�
ti
� ��''''
� � ��
� � �-
��� � � �
,� � � �
� �
s�u� �� c�cc Q
y- ��
� �
�� � �
�- � - - - - -
PROOF OF P. 1§}LIiA7?Urd
(2010 . 2015.5 .CCP)
PROOF OF PUBLICATION OF
LEGAL NOTICE.
ZOA- 14-81
I am a citizen of the United
States and a resident of the
County aforesaid: I am over the
age of eighteen years and not
a party to or interested in the
above entitled matter. I am the
principal clerk of the printer
of THE DESERT POSTE IlrEOF'PALM OE
a newspaper of general circula' LEGASB'I C
INITIATIONIBY/TN A
ESERT PLANNING OM
tion9 : printed and published weekly MISSION 0 A ZONING
in 'the cityof Riversides County OROINANCFE��AM ND
MENTAREL'AT V 1
of'Riversi.de, and which newspaver ESHARINGCAs o.nZOA
has been adjudged a newspaper of oLlc IlsstHER ev
Nithat ubliollHeorll I
general Circulation b the held refore1.me>iPolm
_ 9 y - _ lommno{Commbsi
Superior Court of the County of Munlcinl
rHoti�o IIrans"imt'
ip
Riversides State of Cal.iforniaf ccvv TaxfaMj$ Ina c
4500�I.TIm Ina
under date of October 5 , 19649 Munlapal�
_
Case number 63658 ; that the Itl ID NovIGM �198
- - 7Cao oon'rn�r •me '
notice• of which the annexed is wrlPal te000dl:en
a printed copys has been published Hou, s.n� P cR'I
in each regular and entire issue nll•Int Died Ime d II
of said newspaper . and not in any rred.m en
AMON A DIAZ
supplement thereof on the following alm a
dates to-Nit:
10122 91981
I Certify (or declare) under
penalty of Perjury that the
foregoing is 'true .:and correct.
Dated October 22s 1981
at Riversides California
' CITY .OF PALM DESERT G
INTEROFFICE MEMORANDUM
City of Palm Desert
TO: TIME-SHARE COMMITTEE
FROM: DEPARTMENT OF ENVIRONMENTAL SERVICES
SUBJECT: TIME-SHARE ANALYSIS DATE: AUGUST 4, 1981
INTRODUCTION
The Time-share Committee requested a comparative analysis of California and Hawaii
time-share regulations. The study was generated by the Committee's concern of
Council 's statements relating to Hawaii 's time-share problems.
This report will analyze those regulations and address the concerns raised relative
to permitting time-sharing in Palm Desert.
HISTORY OF TIME-SHARING
In 1968 time-sharing was introduced in the United States, however, it was not readily
accepted by developers. A strong resort condominium market reflective of the overall
strength in the 1970 economy contributed to the lack of time-share developments. The
downturn of the real estate industry in 1974 resulted in many unsold resort units.
Time-sharing became one method for developers to salvage projects. Unfortunately,
for these developments, time-share was an afterthought and not part of their original
concept. Problems including poor financing, lack of concept understanding, and lack
of exchange programs were commonplace. Despite these problems some high quality time-
share developments succeeded.
As time-share became more widespread better financing, consumer understanding and
expanded exchange programs developed; builders also became more responsive to market
demands. All of these improvements resulted in an incredible growth of time-share
'resorts; from 73 held by 40,000 owners in 1976 to 250 held by 200,000 owners two
years later with a doubling in sales each year since 1976.
CALIFORNIA-HAWAII REGULATIONS
A table delineating the provisions of each state's requirements is provided in
Appendix A. Both regulations were designed to reduce the problems that had developed
in the time-sharing industry.
California's regulations require the creation of a Homeowner's Association and the
declaration of the CC&R's. In addition, the developer must present evidence of
habit ability or financial ability to complete the project, sufficient property
interest in the project to assure its completion, and permissibility of the project
by local ordinance.
continued. . .
i
Time-share Committee
August 4, 1981 Page Two
Appendix B provides a more detailed description of the regulations. This appendix
is a copy of regulations proposed to implement SB 1736 which established criteria
to regulate time-share in California by the Department of Real Estate.
Hawaiian time-share regulations were established in November, 1980. Time-share
projects are permitted in hotels and areas designated for hotel use, resort use, or
transient vacation rentals use as determined by local authority. Existing time-share
projects were exempted.
Appendix C more fully describes the provisions of Hawaii 's regulations.
PALM DESERT TIME-SHARE CONCERNS
The major issues raised in Palm Desert concerning time-share are:
a) Sales techniques
b) Advertising
c) Maintenance
d) Impact on transient occupancy tax
There have been instances of sales techniques where gifts are promised but not delivered
and high pressure tactics used. These generally involve your lower quality develop-
ments such as converted motels. The five day cooling-off period provided by California
regulation is one answer. Under this provision a purchaser may elect to cancel any
agreement. State regulations also require all advertising techniques to be reviewed
by the Department of Real Estate. In addition, a provision providing for a Purchaser's
Awareness Package could be provided in city regulations.
The major concern of maintenance has been addressed by the requirement that the CC&R's
of a development must provide for regular assessments to defray maintenance costs and
provide several means of collecting from delinquent owners.
In terms of the City's transient occupancy tax, the proposed time-share provisisions
provide a vehicle enabling the City to collect those revenues from time-share develop-
ments.
WHO BUYS TIME-SHARES AND WHY?
A study organized and funded by the Resort Time-Sharing Council of some 28,000 owners,
at 185 locations, with a response of nearly 9700, was conducted in 1980. The result of
that survey is attached to this report as Appendix D.
The typical time-share purchaser was in his mid-forties, with an annual income in
excess of $33,000, married and had an above average level of education.
The reasons for time-share investment in order of importance:
a) Exchange opportunity
b) Future vacation savings
c) Investment and resale potential
Of those responding, 86.3% were either "very satisfied" or "satisfied" with their
time-share purchase. 61.5% indicated they intended to acquire additional time-shares.
Only 4.5% of the respondents were either "dissatisfied" or "very dissatisfied".
continued. . .
I
r '
Time-share Committee
August 4, 1981 Page Three
The survey showed that owners used their units an .average of 8 days per year and
spent $85 per day in the local community.
LAND USE COMPATIBILITY
California regulations presently require. an indication from the local jurisdiction
that a proposed time-share project is not prohibited. The regulations basically
permit time-sharing unless expressly prohibited by ordinance or requires a use permit.
When one speaks of prohibition it is doubtful that a blanket prohibition could be
established and defended--see attached City Attorney memo April 7, 1981. That memo
states: "The prohibition of the time-share project as a form of development is not
currently within the constitutional means of the City. "
The problem in establishing a blanket prohibition relates to the difficulty in
distinguishing the degrees and varieties of ownership and the affects these uses
may have on the public health, safety, and general welfare.
As was discussed previously and in the Hawaii Conference Committee Report, time-sharing
and transient vacation rental use are identical uses of land, without regard to owner-
ship. Land use decisions should be based on the use of the land and not on ownership.
For this reason time-sharing and transient vacation rentals should either be permitted
or prohibited on an equal basis within certain zones. The proposed ordinance makes
such provision.
As was discussed in the January 22, 1981, report on time-sharing to City Council
(attached as Appendix E) , resort hotels are permitted in the PC (4) zone, PR zone,
R-3 zone and C-1 zone subject to obtaining development plan or conditional use permit
approval . If time-sharing were not to be prohibited outright, then the use should be
limited to the above noted zones subject to obtaining both a development plan and
conditional use permit or some type of special permit process.
As discussed in the January 22, 1981, report the "Transient Occupancy Tax" can be
collected in "time-share" developments so the potential loss of hotel-zoned land
to time-share developments should not present problems. In examining the amount of
vacant PC (4) land in the City and the possible difficulties in obtaining financing
for hotel developments, time-sharing may provide an alternate method of financing such
developments.
Permitting time-sharing in planned residential and R-3 zones where hotels are presently
permitted, may result in conflicts between full-time owners and time-share occupants.
However, present short-term rentals operating in the major country club developments
within Palm Desert have not resulted in conflicts. Furthermore, case studies cited
in The Resort Time Sharing Industry Report Vol . II showed no conflicts on mixed
time-share permanent residential projects.
It is felt that in the case of existing condominium developments, which may wish to
change some of the units to time-share, that a majority of the owners be required to
vote in favor of the proposed change.
continued. . .
1
Time-share Committee
August 4, 1981 Page Four
In the case of a new mixed condominium time-share development, a provision requiring
full disclosure of this fact and the location of the time-share units should be an
adequate means of protecting anyone who does not wish to locate in a time-share
development.
SUMMARY
In light of the City Attorney' s opinion of April 7, 1981, that the City does not
have the constitutional authority to blanketly prohibit "time-sharing"- throughout
the City, that the best means of controlling time-share developments as to permit it
in specified zones subject to the issuance of some type of use permit. A draft
ordinance is attached to this report.
The Time-share Committee should review this report and provide comment at the
next committee meeting. It is proposed that the report with applicable comments of
the committee incorporated then be forwarded to the City Council with an appropriate
recommendation.
MON A. I Z
RAD/lr
Attachments
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, AMENDING SECTIO 'S OF CHAPTER 3.28 (TRANSIENT
OCCUPANCY TAX) AND ADDING CHAPTER 25.100. (TIME-SHARING) TO
THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN
as follows:
SECTION 1: Amendment. That Section 3,28.010 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel " means any structure, or any portion of any structure, which
is occupied or intended or designed for use or occupancy by transients, including, but
not limited to dwelling, lodging or sleeping purposes, and includes any hotel , lodging,
house, roominghouse, apartment house, time-share project or facility, dormitory, public
or private club, mobile home or house trailer at a fixed location, as permitted by
Section 7281 of the Revenue and Taxation Code of the state, or other similar structure
or portion thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement
to the use or possession, of any hotel .rooms,rooms or any portion thereof offered for
rent for dwelling, lodging or sleeping purposes regardless of the purpose for which
such rooms are rented or rovided.
C. "Operator means the person who is proprietor of the hotel whether in
the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-
share project or facility manager or operator, or any other capacity. Where the
operator performs his or its functions through a managing agent of any type or charac-
ter, the managing agent shall also be deemed an operator for the purpose of this
chapter, and shall have jointly and severally the same duties and liabilities as his
principal . Compliance with the provisions of this chapter by either the principal
or the managing agent shall , however, be considered to be compliance by both.
r D. "Rent" means the consideration charged or chargeable to the tenant or
!l person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods, labor or otherwise, including the full value of receipts,
cash, credits, property, or service of any nature whatsoever. "Rent" may have been
or may be payable prior to or following (in whole or in part) the occupancy to which
it is attributable, and may have been paid in whole or in part in advance on a long-
term basis, such as in a time-share project or similar arran ement. It is not the
intent of this section to make the operator liable for the tax on uncollected rent.
However, uncollected rent must be reported.
E. "Tax Administrator" means the director of finance, or such other
individual as may be designated by the City Council .
F. "Time-share Occupancy" means occupancy related to the situation wherein
a urchaser receives the ri ht or entitlement inperpetuity, for life, or for a term
of ears or other exten ed term, to the recurrent, exclusive use or occupancy of a lot,
parcel unit rocm s hotel or portion thereof, or segment of real property, annually
or on some other seasonal or periodic basis for a period of time that has been or
will be allotted from the use or occupancy periods into which the time-share project
which is involved has been divided. The said right or entitlement to occupancy may
attach in advance to a specific lot parcel unit room s , or portion of a hotel , or
segment of real property, or may involve designation or selection of the same at a
future time or times.
G. ' Transient" means any person who exercises occupancy or is entitled
to occupancy by reason of concession,' permit', right of access, license, time-share
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days.
Any such person so occupying space in a hotel shall be deemed to be a transient
until the period of thirty days has expired. Unless days of occupancy or entitlement
to occupancy by one person are consecutive without any break, then prior or subsequent
periods of such occupancy or entitlement to occupancy shall not be counted when deter-
mining whether a period exceeds the stated thirty consecutive days. In determining
whether a person is a transient, uninterrupted periods of time extending both prior
and subsequent to November 26, 1973, may be considered. (Ord. 134 SS1, 2, 1976;
Ord. 6 $2, 1973) ."
•
ORDINANCE NO. Page Two
SECTION 2: Amendment. That Section 3.28.030 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.030 Tax Imposed. For the privilege of occupancy in any hotel , each
transient is subject to and shall pay a tax in the amount of six percent of the rent
charged by the operator or otherwise payable by the transient. The tax constitutes
a debt owed by the transient to the City which is extinguished only by payment to
the operator or to the City. For purposes of this section, the rent deemed payable
on account of time-share occupancy by a transient shall be the rental value of the
unit or rooms which accommodated such occupancy, which rental value shall be ...
computed by determI in the rorata share of the total purchase rice of the time-
share ri ht or entitlement whether or not involvingan estate or an ownership '
in real property which share is allocable to the period of transient occupancy
currently involved, and adding thereto the total amount of any and all fees, assess-
ments, charges and expenses charged by the operator as attributable to the time-share
occupancy of the transient by whatever name such fees, assessments, charges or expenses
may be denominated, whether "occupying fee" , "maintenance or operations charge" ,
Tr er diem fee", management fee" or like name or otherwise. In making the computation
referred to above of the prorata share of the total purchase price, in any case wherein
the time-share right or entitlement is in perpetuity or for life or otherwise not for
a definite or ascertainable term, such proration shall be made upon an assumed term of
forty years. The transient shall pay the tax to the operator of the hotel at the time
the rent is paid. If the rent is paid in installments, a :'proportionate share of the
tax shall be paid with each installment. The unpaid tax shall be due when the tran-
sient ceases to occupy space in the hotel . If for any reason the tax due is not paid
to the operator of the hotel , the tax administrator may require that such tax shall
be paid directly to the tax administrator. Tax on occupancies in exchange for services
of any kind is due and payable to the City by the operator, the amount of tax being
determined on the basis of six percent of the current rental value of the accommoda-
tions furnished. (Ord. 6 §3, 1973). "
SECTION 3: Addition. That Chapter 25. 100 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"CHAPTER 25. 100
TIME-SHARE PROJECTS
25.100.010 Defined. As used in this Chapter, time-share project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of
years, to the recurrent, exclusive use or occupancy of a lot, parcel , unit, room(s),
or segment of real property, annually or on some other seasonal or periodic basis,
for a period of time that has been or will be allotted from the use or occupancy per-
iods into which the project has been divided and shall include, but not limited to
time-share estate, interval ownership, vacation license, vacation lease, club member-
ship, time-share use, and hotel/condominium.
25.100.020 Permitted Zones. A time-share project shall be permitted only
in the Planned Commercial Resort (PC-4) zone, Planned Residential (PR) zone, Multi-
family (R-3) zone or General Commercial (C-1) zone, and then only if and when a
Conditional Use Permit has been obtained therefor from the Planning Commission in
accordance with Chapter 25.72 of the Code.
25.100.030 Information to be Submitted with C.U.P. Application. In addition
to the information required by Section 25.72.020, an applicant for a Conditional Use
Permit approval involving a time-share project shall submit in the application at
least the following information:
1. Legal description, street address or other location description
sufficient to identify the property.
2. Description of the time-share periods into which the project is
proposed to be divided.
3. Description of the nature of time-share rights, entitlements,
estates, or the like into which the project is proposed to be
divided, and the methods by which additional such interest may
be created or existing interests may be transferred or conveyed.
ORDINANCE NO. Page Three
4. The formula, fraction or percentage of the common expenses and
any voting rights assigned to each time-share participant and,
where applicable, to each unit in a project that is not subject
to the time-share program or arrangement.
5. A description of the means proposed to be employed to properly
and effectively collect and remit to the City the transient
occupancy taxes which will become due and payable from time to
time in the future.
i
6. Description of any proposed restrictions on the use, occupancy,
alteration or alienation of time-share intervals and rights. .
7. Copies of all existing California Department of Real Estate
reports or permits required by law or regulation.
8. Description of time periods, types of units, and which units
are in the time-share program (if less than all ) , and the length
of time each of the units are committed to the time-share program.
9. In the event an existing condominium project is proposed to be
converted to a whole or partial time-share project, a verified
description or statement of the number and percentage of the current
condominium owners desiring or consenting to the proposed conversion
of some or all of the units to a time-share basis. Also in such
instance there shall be submitted a verified statement of the number
and percentage of owners who have received notification, either
personally or by receipted certified U.S. Mail that application to
so convert the project would be submitted to the Commission to-
gether with when the City staff and the Commission would consider
such application.
10. In the case of a new mixed project (ie: Time-sharing-condominium/
rental ) a description of the means proposed to be employed to
disclose the number and location of all time-share units within the
project.
11. A description of the methods proposed to be employed to guarantee
the future adequacy, stability and continuity of a satisfactory
level of management and maintenance of the time-share project.
12.. Any other information which the Commission or the applicant
considers necessary or desirable to an appropriate and proper
consideration of the application.
25.100.040 Conditions for Approval . In addition to the findings, the
Commission shall make in conjunction with Section 25.72.070, the Commission shall
consider the following:
1. The impact of the time-sharing project on transient rental stock;
2. The impact of time-sharing conversion on existing commercial bus-
inesses;
3. The impact of time-sharing on present and future City services;
4. The impact of. time-sharing on permanent residential stock;
5. Any other factors deemed relevant by the Commission.
_ 25. 100.050 Minimum Time-share Structure Size.
A. Every time-share dwelling unit hereafter erected or converted shall
have a minimum living floor area of at least 1000 square feet, exclusive of unroofed
portions and garages.
B. The standards may be increased by the design review process or the
Planning Commission based upon:
1. Usability of the dwelling unit by the ultimate occupant;
2. Compatibility of the dwelling to the neighborhoods.
I __
ORDINANCE NO. Page Four
25.100.060 Exceptions. This Chapter is not applicable to those projects
which applications for approval from the State Department of Real Estate have been
filed prior to December 4, 1980, or projects which the City has approved prior to
December 4, 1980.
SECTION 4: Certification. The City Clerk of the City of Palm Desert,
California, is hereby directed to cause this Ordinance to be published once within
fifteen (15) days of adoption in the Palm Desert Post, a newspaper published and
circulated within the City of Palm Desert, California, and the same shall be in
full force and effect thirty (30) days after adoption.
PASSED, APPROVED, and ADOPTED this day of 1981 ,
by the City Council of the City of Palm Desert, California, by the following vote,
to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
S. ROY WILSON, Mayor
ATTEST:
SHEILA R. GILLIGAN, City Clerk
City of Palm Desert, California
/lr
1
Q
Z
K
O X X X X X
LL
J
Q
U
3I x >G x X X X x x X X >G X
Q
2
tN
Z
O
N
K
W
[1
C7
Z_
F-
U
K
F-
O F-
_ U U
d
O F
X CD CD
O ti U
Z J W
W W J =
d 4 W F
[1 Z N
Q Q W O
W m
Z } Z
Q J O
J J F-�
d H M
O �' U (N
O
F O N X O
w S W 3 W F~
d w 2 O FEW
-
w m U ~ LL W
J W = U d
N W W Z 4 F-
H. 'd' M OU O 3
W F- F- N
C-DW W Z Q Z J
^z, o. W J H d
Z W N O CL 2 E
O W O Z F O
d' W W H U
3 F- Q w w d 3 F-
2 F- N
J �Ni 3 Z F- Z W
m Cr F- N
d W Q E IN ~ O
Z
Z O [l W Z U
} J
U ~ c Z K LL Q O N W W
z W O O O N LL S Z Q
2¢ W n
W d 2' F- W Z W U Q 2
O CD Q K O a' W d' U N
LLJ N O Q J F
N d LL O
a: 3 O Q Q O O _ F- �--'
a \ O V- rZ.. Z U N F- F-
N LLJ of
C W U �Zi W fU-+ N W 2 CJ
N rr � O LD .Z.W O CDW W W 0 Q W
Q W N Z O O LL Z w N
O U J Q Ln Z W O Z K d x
J Z W �--� _ } r-� W O W
U Q J W K J F-
N rZi H [1 W ry O O rJi C
O LL F- Q N f1 LL U
Q
z
O X X X X X X X X X
W
J
Q
U
H
3 X X X X X
Q
x
Z
0
o �
W N y Q
z
Of I--
Z U O }
O N Q N
U LL Q
N W W
on w d' O.
NJ Q _J O ¢ CD
w
Z } Z d
X O
O W O CC)w O
W H U W
Q d W O d
LNI
O- U N O
W rr O
O m Cl W K
Z W .J O
C. W
N g
F- W W O in
C) W
Z CL N
N K GV) N
W J N H O W
on
Q U N O N
Q ""' i-r O Z Q
N W m Ld 1 - J
£ F- ~ O_ W Wp m F-
Z _ O
V O O Z _I
c9 OU Q O d Q LLJK 3 Z
Z U Z N Q
Q O W w LL on K (N
N 3 F- U N O Z O F- W
�-r
O r <
ZD
W U O �--� U W ~ O W
N p_' J O_' Q F- J N
U' W 0- O. O W � < < F- W
Z_ ¢ Z U W Z W Z J O. ~
Q U Q J K W a O u-
F- W F- Q F- w Q w O
Z O_ Z U U R' O K >. W
O N NJ O w 6. O l.� OW u- NU V)
N W 2Z Go CDF- F NO ol N- GO 3 X
U M Q F- CDO_ W W Z F- 2
W F- W W Q.' £ £ W rr
' K Z W U H W f Z W Z
00 > > Z .+ op W U W O O
m NJ
d W O Q O U C7 O Z F- Z Z
W W Q LL O U Q O W O CD
N F- O W N O O W £
O U) Q z �~..� W N NO W
U O D_ d Cl- J OJ
X on W J co Z O CD j tU OW
W D. I Q K O' O W W Z
E O N W N U 2 O_ U W O m r-w
Q
z
O x x x x x x x x
H
J
Q
V
H
Q
X X X X
2
O
W
to
W
H F
Z H
O
V H F
U V
Q W
LL O
4 U Z of
u d
C) WCp
O C) cR
L
z d H
W d
d W d LL K
2 w
O W
LL W d
O N O
J O
W rQ VI
O = w O
C "
} } = O }
H Q ? Q
r W Q Z W
o] O Q
QU3 N
CD~ H K N Z OF-
Q W +
J
s 2 K F 1N
U F- O_ N W W
F-
Q Q Z E Z E W
H \ Z
Z W Z F \ Z N
O N
CD
LL r �Qi Q' Z H H N
o a o w kn
d F N O 7 J
W W d
Cl Z Q W w K N LLO
} O Q
W N W z
�Ji Q Z
Q W ~ W
J O
r~i 1 M: I--' r~r LL Z
co Q O • H
W O
C
CD
Q O LLI
LL 2 O
O S N Z N
Z N W W n' N
W N O Z a]
(-> w H O K
O d E ¢ W J W
W CD cm) d
W
Fag; f3
rIOTICE MID BTFOl44ATTVr DIGEST
OF PROPOSED CHANGES 121 M. REGMATI(IT S
OF THE, MAL ESTATE OOMISSION'TM
December 23, 1980
Pursuant to the authority vested in loan by Sections 10080, 10131.6,
10170.4, 10249.2 and 11001 of the Business and Professions Code, to ec irmle-
rrant, interpret or rake specific Sections 10131.E 10170.4, 10249.11, 11000,
11010, 11010.2, 11012, 11013.2, 11013.4, .11018, 11018.5 of the Business
and Professions Code, DAVID H. F`OX, Real estate Commissioner of the State
of California, proposes to adopt, amend or repeal remilations in Chapter 6,
'title 10, California Administrative Code, as described below:
Please note that items 1 through 30 propose the adoption of time-share subdivision
regulations to carplerent the ti.r-e-share legislation effective January 1,
1981. These regulations and it ers 31 and 34 are to becnre effective as pro-
vided under Section 11346.2 0£ the Government Code on or about April. 28, 1981.
The renaming changes, items 32 and 33, are to become effective on July 1, 1981-
1. Amend Section 2790.7 - Chapter 601, Statutes of 1980, arends
Section 10249.3 and adds Section 10249.11 of the Business and
Professions Code to include time-share uses as out-of-state
subdivision offerings. This amendment rmuld conform this
section to the provisions of the new law.
2. Adopt Section 2810 - Defines "substantially complete" subdivision
public report application for purposes of Chapter 1152, Statutes
of 1980.
3. Adopt Section 2810.1 - Specifies the regulations in Article 12
applicable to time-share projects.
4. Adopt Section 2810.2 - Requires applicant for tine-share public
report to present evidence of habitability of or financial abilit'!
to eorplete the project, sufficient property interest in project
to allow its as>pnletion, and permissibility of project under
local ordinance, if any.
5. Adopt Section 2810.3 - PrescrilDes purchase r-r�nev handling rexnri-rc
:rents in connection with tine-share offerings.
6. Adopt Section 2810.4 - .specifies arnditions for the addition of
a dc•melling unit to a tiro-share project.
7. Arrnpt Section 2810.5 - Prescribes when tine-share offerings with
dcelling units both in the state and out. of the state :will he
treated as an out--of-statf: sub-division.
8. Adopt Section 2810.6 - Requires subdivider to notify Department
of natural granges to tine-rhare project for which a public
report has already been issued.
I
I i
9. Adopt Section 2810.7 - Provides that Real Estate Comnissioner
can approve alternative rights and reredies affordinq corparable
benefits to tirr-share amers.
10. Adgnt Section 2811 - RecPiires the sponsor of a tires-share project
to record a declaration dedicating any dwelling waits to the
tine-share project and requires certain provision, therein.
11. Adopt Section 2812 - Specifies standards for "reasonable arrangerents"
in tine-share projects.
12. Adopt Section 2812. 1 - Requires transfer of control in time-share
project to owners association or to trustee prior to oon,umating
first sale of time-share interest in project.
13. Adopt Section 2812.2 - Requires conveyance of tine--share project
8-selling units to trustee prior to closing of sale of first tire-
share interest and prescribes elerents of trust instrument.
14. Adopt Section 2812.3 - Requires time-share project .sponsor to provide
security for parent of assessrients and specifies requirprents for
security.
15. Adopt Section 2812.4 - Prescribes conditions pertaining to the
sponsor's subsidization of a time-share project operation.
16. Adopt Section 2812.5 - Rcmnaires covenant bw tire share project
sponsor not to encu t)er. c3aellincT units after execution of the
declaration without written consent of majority of other amers.
17. Adopt Section 2812.6 - Requires the declaration in Section 2811
to prohibit partition of the project by amers.
18. Adopt Section 2812.7 - Prescribes conditions for joint tine-share
and corarercial use of ca*rxn facilities.
19. Mont Section 2812.8 - Prescribes that a n-anarer_iit agent shall
be erployed by a tine-share project.
20. .'adopt Section 2812.9 - Alla•-s rental of tarn-share hiterests to
public under certain circumstances.
21. Adopt Section 2812.10 Requires time-share pioir:ct to h- iisured
against property chancre and Personal injuri cl,iuts.
22. Adopt Section 2813 - Requires remilar reetincis of timeshare project
cx-mers and prescribes rec?uirerrnts for such metings.
23. Adont Section 2813.1 - Specifies Viers' voting ridits ii tire-
share project miner association,.
24. Adont Section 2813.2 - P-+escri'.>es cmxmsition and election procedures
for governing bodies of tire-share project a�mer. association.
25. Adopt Section 2813.3 - Specifies mcnArerents for reetings of governing
bodies of tine-share project aver associations.
-2-
I
26. Adopt Section 2813.4 - Specifies requiretrents for assessnents to
defray costs of operating tirie-share projects.
27. Adopt Section 2813.5 - reauires dissenination of certain pertinent
information to all tine-share owners in a project.
28. Adopt Section 2813.6 - Requires that records of tine-share project
ckmers association be available for inspection and copying by
association nrnhers.
29. Adopt Section 2813.7 - Specifies procedures and limits for a time-
share project owners association to discipline its trnrbers.
30. Adopt Section 2813.8 - Specifies procedures for amending governing
instnsents of tirieshare projects.
3.1. Repeal Section 2785 (h) (10) - Conforms this section to the recent
decision in Council of Anthony Real Pstate Schools v. Fbx, San
Dieqo Superior Court, Nc. 8 0 , invalidatim this sub-
division. The sLbdivision had defined the organized disclosure
of real estate exam cuestions as "unethical conduct".
32. & 33. Amend Sections 2861 and 2862 - Conforms .these section.-, to Chapter
1149, Statutes of 1980 (AB 2915) which transfers jurisdiction over
imhilehome registrations frnm Departrent of i5otor Vehicles to
Departnent of Rousing and Cc munity Developrent.
These sections are to becarre effective July 1, 1981.
34. Amend Section 3012 - Corrects "exerpt-ion" from lioansees' .continuina
education recnArenent to "extension" of time for ccsmletina recnrire-
rent.
-3-
i- S131Z CONFERENCE COMMITTEE REPORT NO.
Honolulu, Hawaii
April �� 1980
Honorable Richard S . H. Wong
President of the Senate
Tenth State Legislature
Regular Session of 1980 .
State of Hawaii
Sir:
RE S .B. NO.: 1516 , S.D. 1, H.D 1
Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by .the House of Representatives
in S.B. No. 1516 ,: S.D.. T, H D,: 1; ,entitlede,
k.
"A, BILL .FOR AN ACT* RELATING TO TIME SHARING" , "
T
having"met,. and after full and. free discussion, has agreed
recommend and does recommend to the respective Houses the final
passage of this. bill in an- amended form.. = �
l The purpose of this bill is to regulate time sharing in
the. State of Hawaii ;:7 Y
In. its resolution of the several issues involved in
this bill, your Conference Committee has taken note of the
growth of time sharing over the past several years, both in
the State of Hawaii and in other tourist destination areas .
Your Committee is aware that time sharing has generated
controversy among the various interested parties , including .: k
the governments of the State and of the several counties, ==�
persons in the time share industry, and residents most
directly affected by the growth of time sharing and its
potential for, expansion..
Simply stated, . those who favor time sharing see it as a
continuing stimulus to the economy of the State through the . "
creation of additional. jobs for residents of Hawaii and
expenditures by time share participants . Opponents challenge
the conclusion that time sharing constitutes an economic . :
advantage to the State, and consider it to be disruptive,
particularly within areas where permanent residents live.
The opponents would prefer the strict limitation or prohibi-
tion of time sharing, while its proponents favor enabling
legislation to establish definite guidelines and procedures
Cfor its statutory regulation.
SMA 783 496
• ' CONFERENCE COMMITTEE WORT NO. '�O
Page 2
Your Committee concludes that it is necessary and -
timely for time sharing to be placed under strict governmental
regulation if the interests of the State, the time sharing
industry, the purchasers of time share units and above a11,
the people of Hawaii, are to be served. Accordingly, it is
the intention of your Committee that careful regulatory
oversight of time sharing in the State of Hawaii be provided
The following are some of the more significant areas of
regulation addressed in this measure_
Sec. -3 Taxation.. Provides for reliable and efficient
administration of real property and excise taxes
Sec -4 County authority. This mandate will be ri
particularly helpful in eftorts to clarify hotel, resort and t
transient vacation rental areas: - The counties do not presently'
u. `zone for the less traditional forms of. transient visitor
accommodations- and should address this in the near future
r
Sec 5 Geocrraphic limitations Providesna general
prohibitioir, except as specifically allowed in the enumerated .X
'subsections--' .The first exemption is. a ,"grandfather" provision
a` to avoid anyretroactive effect of this section
The second exemption subse=onyprovides for two exemptions
;.
from the prohibitory' .Ianguage.' `::First,, time sharing and transient x ,
a
T1Y
:vacation rentals are°'allowed in hotels ' Second. time sharing
rtransient vacation rentals are. allowed where designated for hotel `Fs
use, resort use;; or transient vacation rentals. use, pursuant to `
county authority: under. Section 4.6-4 , Hawaii Revised Statutes,
: or where the county, by -its legislative process ,, designates
x =
hotel, transient vacation. rental or resort use
It is the clear intention' of your conferees that time r " 'y
_ sharing and transient vacation' rental use are. identica=uses of
Tarid;witYiout_regard..to�ownecs�ilp nd that botki- uses of land "_
Should be addressed..in a coequaL-manner:..bythe counties. Your
conferees further note that county land use decisions are not ,t
based on ownership, but on the use of the an in question.. As '
such, ls d benatieh-agin ncgacatio,. .- shout .
either pe`1'mitted or prohibited on an equal basis within an area
.._ - -
deemed—ap�pro_ priate. by the county
Your Committee further notes several areas of non-enforce-
ment of their own zoning ordinancesby some- of the counties. In _
this regard, it is not the present character of the nei.ghborhoodL
but its intended use by the oounty,that s_ also� important. The
e g lature intends by this Act� that the counties will be guided
by the notion that time sharing and transient vacation rentals
should not bt_perm to .w ese:the`lif(e styles 1.of_ the permanelt
resizl will be disrupted in an unreasonable manner. Any
zoning code is only as good as its enforcement by a county.
SNiA 784 851 it
CONFERENCE COMMITTEE REPORT NO. �� 6
? Page 3
In its review of time sharing and transient vacation
rentals , your conferees concluded that. several of the counties
have nut used their zoning authority on these less formal and
traditional types of transient visitor accommodations . The . > .
problems caused by this shortcoming in the county zoning _
ordinances are clearly demonstrated. in the case of County of
Maui vs . Puamana Management Corporation (Civil No. 3474-78) ,
presently on appeal to the Supreme Court of the State of Hawaii_
Your conferees elected. not to pre-judge where in an appro-
priate area time sharing and transient vacation rentals should
he allowed or prohibited, but. to leave that decision to each _
county as a logical part of . its zoning or designation functions.
Your Committee expects' that the counties will act expeditiously
to clarify the propriety'of .these. uses. under the zoning is
ordinances .
Sec. -6 -Time sharing in projects. Provides that-
time sharing must be explicitly and prominently authorized
in project instruments before ' such a use can commence ;in a
project.. _ Such authorization shall be by a unanimous vote o
;•• the unit. owners . ' In projects which- presently contain tune '
sharing use,:`the project_ instruments .will determine the .;
restrictions , if any, to be imposed.
Sec 7 Maintenance charges: In, recognition that
time sharing may result .in- more intensive use of buildings
or projects and their common elements; your Committee has
provided that higher maintenance fees up to a maximum of an
additional fifty peY�n —rff y be assessed against time share r
units and transient vacation rental units located in- the
same building as. private residential units.' This proviso
. . will more equitably distribute maintenance costs , and should
have the collateral effect of discouraging the mixed use of r.
buildings.
Sec. 8 Mutual` r i h to cancel. ` Provides a- ' g t , cooling-
off-period of five calendar days after the execution of the
contract or the receipt of the mandatory disclosure statement,
whichever is the latter. . It .is hoped that this will remove
some of the incentive to use- high pressure sales techniques.
Sec. -9 Disclosure statement Provides for the dis-
closure of pertinent information to prospective purchasers.
Sec. -10 Filing required; developer, sales agent,
acquisition agent and Dlan manager. Provides for filing of y
the disclosure statement with the director. It also requires
the filing of certain information by the acquisition agent,
sales agent and plan manager and requires those persons to be
bonded.
SMA 784 850
.W Fv:
• •
/.
CONFERENCE COMMITTEE REPORT NO. 0
.. Page 4
Sea. =11 Prohibited practices. Your Committee has
defined and prohibited undesirable marketing practices such
as beach and street solicitation on a Statewide basis : `
Your Committee believes that-these provisions will help
to reduce the actual and perceived problems of time sharing.
without unduly retarding the industry
;.,
Your Committee on Conference is in accord with the intent
and purpose of S .B. No . 1516 , S.D. 1, H.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S .B.. No_ 1516, S .D.- 1,. H-D_ _l,. .C'.D 1 <- s :
Respectfully submitted, ;
MANAGERS ON THE PART OF THE MANAGERS ON THE PART OF THE z +I' is
HOUSE SENATE r� y
ram':
RUSSELL. BLAIR, Chairman STE COBB, Chairman .
S AK2 , Member - DANTE CA RPE TER, ember
- JA LARSEi , Mem WADSWO-R�-TH Y-EE—,
f
L0 =ALLDD T. M�(A�SUTANIII,. Member
ITSUO SHITO, Member ` ,r
,e r
DONNA R. IKEDA, Member
SMA 784 824
C Imo)
19 return coupled with the sizeable representation of the overall popula—
tion were more than enough to conclude that the survey results were very
reliable. -;
Consumer Characteristics and Motivations
It appears that when aggregating the variables of age, education, L,.z
income, and family type, the timeshare market is composed of a very
stable population. Due to their high income and educational attainment, `
their middle-age and marital status, it would seem they are relatively
protected from extreme problems with any economic recession in the "
country. This is especially evident in a market for relatively low1-0
cost recreational real property such as resort timesharing where most
units can be purchased for less than $5,000 a week. y=s
3:
Over one-half (56.3 percent) had household incomes in 1979 of
$30,000 or more, and 17.1 percent had incomes of $50,000 or more. The uK :
approximate median annual income of timeshare households was about
k•
$33,500. By way of comparison, it was estimated that the median income
of all households in the United States in 1979 was only $16,500.
The average age of the head of household for timeshare buyers was
45.4. Over one-half (52.7 percent) were between the ages of 35 to 54.
rti
The vast majority of timeshare buyers were married couples (89.4 per-
cent). By contrast, only about 62 percent of all households in the
United States are now composed of married couples.
One of the most outstanding findings from the survey is the extremely
high level of education attained by the respondents. Over three-quarters
(75.8 percent) had attended college, with over one-half (54.9 percent)
being college graduates, and 31.4 percent havingdone graduate work. �
In regard to why people buy timeshares, the most frequently checked `
14 3 '
C�
answer was the exchange opportunity (71.4 percent) , followed by. the
opportunity to save money on future vacation costs (59.4 percent) and
investment or resale potential (38.8 percent) . Thus, respondents
appear primarily concerned with flexible vacation plans while at the
same time being interested in holding down future vacation costs.
„�'-- Timeshare Characteristics
The majority of timeshare units owned by respondents had two-
bedrooms (60.2 percent) , while only 10.4 percent were studios. The
number of weeks purchased was fairly evenly distributed amongst the
four seasons, ranging from 23.9 percent for Fall to 26.3 percent for
Summer. This finding indicates that timeshares are marketable through-
out the year and not just during peak vacation periods.
Even though a recently offered commodity, over one-half (52.5 per-
cent) of the respondents already had purchased two or more weeks of
timeshare. About 10 percent had purchased their units in more than one
resort location. It appears, therefore, that some timeshare buyers are
Y. already beginning to collect not only multiple weeks, but also multiple
locations, even though being offered the exchange privilege with other t?
locations.
Even though relatively inexpensive compared to other types of
recreational real property, the majority of timeshare buyers still
finance their purchase rather than paying cash for it -- 67.6 percent
compared to 32.4 percent. Only 37.4 percent of the respondents stated
they would have purchased their timeshare without the availability of
financing.
Consumer Satisfaction
Respondents in the survey were asked, "In general, how satisfied
15
-Y
iq-
.d:
4
are you with your timeshare purchase?" Answers were overwhelmingly
r
i favorable with a very high 86.3 percent stating they were either "very '^
satisfied" (44.6 percent) or "satisfied" (41.7 percent) , Some 72.5
percent said they would again purchase their timeshare in hindsight.94
y_ v
Nigh satisfaction was most apparent amongst respondents who:
1 1. had owned their timeshare longer;
2. had purchased multiple weeks;
3. had purchased higher priced units;
1�w
_.�
4. had purchased larger units;
5. had purchased for use or because they liked the unit;
6. intended to buy more timeshares;
7. had used their timeshare;
8. had requested an exchange; {
9, had an exchange confirmed; y�
10. received their own firsttrade choice p
,a
11. were very satisfied with their trade; L K.
12. felt the exchange privilege was fairly represented by their
�,.
}...
salesperson, a�
13. were middle age and above;
14. had attained higher educational levels;
'j 15. had higher incomes;
J
16, had purchased fee type units; and
17. had purchased units in projects originally built for timeshare.
An extremely high 61.5 percent intended to buy additional time—
shares, either at their present resort location (24.6 percent) and/or
Jat another location (36.9 percent) . Such findings not only indicate
a high degree of satisfaction amongst present owners of timeshares,
is r.
,;
but 'also a vast potential demand increase in the overall market. In ,
other words, a potential market not only exists with untapped buyers
but also with almost two-thirds of the existing buyers.
Only 18.6 percent of the respondents said they will attempt to
sell their present timeshare and not buy another, i.e. , no longer be
participants in the market. Some 40.2 percent stated they did not
plan to buy additional timeshare but rather just keep what they presently
own.
Use of Timeshares
A frequent argument made in the past against traditional types of
recreational real properties (recreational lots, detached vacation homes,
and wholly owned resort condominium units) was that they rarely were used
by their owners. Such does not seem to be the case with resort time-
shares. Some 62.0 percent of the respondents already had vacationed in
their own timeshare unit. When combined with the respondents who have
not yet used their own unit but have taken advantage of the exchange
r - .
Lprivilege, it appears that about three-quarters of the respondents
already have used a timeshare unit of some kind. This +is true even
though 38.7 percent had made `their purchase only within the past six
months.
Some 58.1 percent said they planned to use their interval every
year in the future. Another 28.3 percent planned to use the exchange
- privilege every year, for a total planned timeshare annual use of 86.4 per-
cent. If these figures are generalized to all projects for all seasons
of the year, it appears that the issue of this type of property sitting
idle for long periods of time is much less relevant than it has been
for traditional types of recreational property.
17
About one-half (55.7 percent) of the respondents had vacationed in
their timeshare for a seven-day period, with the average stay being 8.2
days. The average number of visitors
Y S per party for the overall stay
was 4.0, including 3.0 adults and 1.0 children.
Consumer Expenditures
S
4
Respondents were asked to estimate their party's average daily
expenditures 'in the local area during their most recent vacation in a 5t
timeshare unit. Results are summarized below: f'
4r
'.
Average
y
Item Daily Expenditure
- is S1
Groceries and liquor bought in a store $17.02
Eating out and nightclubs 25:47 "z
Other overnight lodging besides timeshare unit 2.67
Recreation (movies, green fees, tours, lift 14.00
tickets, etc.)
Local transportation (public bus, taxi, etc ) .76
Rental car 5.10 y :
Local shopping (souvenirs, gifts, apparel, etc.) 13.90
h�>
Other 6.42 "
Total '
$85.34 _
�y.
If averages for the eight items are accumulated, the overall aver- �W
l age daily
y expenditure was $85.43. Respondents also spent an average of
,1,e
another $285 on travel expenditures, including $205 for air travel, $75 c1
J �T.
for car travel, and $5 for other [ravel. About 30 percent used air SKr
travel to arrive at their destination, and about 20 percent used a travel
s
agent for booking air or lodging accommodations, �M,t
`.0
If average daily expenditures were multiplied b the average daily s;�'
P Y g Y �,
°Y'g
:•h
a
stay by the estimated use rate by the total number of timeshare owners,
.t
it was found that well in excess of $100 million annually is spent
' locally by timeshare vacationers. This estimate does not include travel
i9. expenditures. More importantly, it does not include contributions made
by the timeshare projects themselves in terms of construction costs,
K taxes, fees, management, sales expenditures, etc. Such estimates are
t: measured in the following case studies.
r" Summary
E
After surveying al
most 10,000 tills imeshare owners, it was found that
the typical consumer was in his mid-forties, had an annual income in
C excess of $33,000, married, and well educated. They owned a two-bedroom
timeshare unit and bought it both for immediate use and for future
savings on vacations. The purchase was financed. Most owners already
had purchased more than one week and most intended to buy additional
weeks. Satisfaction with present purchase was very prevalent.
About three-quarters had vacationed in a timeshare unit for an
average stay of over eight days. The typical consumer spent $85 per
day in the local area while on his timeshare vacation and another $285
for travel expenditures.
f
t
- t
1
19 !
, 6
CITY OF PALM DESERT
TO: City Council and City Manager
FROM: Department of Environmental Services
SUBJECT: Timesharing
DATE: January 22, 1981
I. INTRODUCTION:
This report is the result of a council directive to study timesharing.
The study will address the various land use, revenue, and sales tactics
issues involved with the concept of timesharing.
The City Council has declared a three month moratorium on timeshare projects
in response to growing interest of converting existing units to timeshare.
II. BACKGROUND:
A. Timeshare Defined: Unlike other forms of real estate property, timesharing
involves the sa a of time segments of occupancy of dwelling units.
Although a variety of forms exist, there are two principle types of time-
sharing. The first type is called right-to-use. With this type, a
purchaser pays a sum that entitles him to occupy a unit for a specific
length of time each year for a specific number of years. Other forms of
timesharing in this category include vacation license, vacation lease,
club membership and timeshare use. The second type of timesharing is
commonly known as fee simple ownership. With this type, a buyer purchases
a resort condominium unit for occupation for a specific length of time/
each year. This type of timesharing is also known as- interval ownership
and timeshare estate.
The difference between the two types is that under the latter form the
purchaser owns a piece of real property. The owner builds up equity and
pays property tax. The owner can sell , bequeath, or rent his slice of
the property.
According to the Department of Real Estates' proposed regulations, a
timeshared unit is one that consists of 12 or more timeshare owners.
The Department's proposed regulations do not distinguish between timeshare
and other forms of developments that sell units for time periods such as
hotel/condos or stock cooperatives. Hotel/condos are similar to timeshare
units, but with fewer owners per units. When units are not occupied by
owners they are available to the general public for transient use. Stock
cooperative are units owned by a corporative entity with shareholders
holding the right to occupy the units. Stq_ck coo ep�r tive units usually
serve ais_.permaner residences, although„they can be times.hpred._Time
-
sharing.; as`cTefil7ed in the Timeshare.Morat_gdum_ . O�rdinance, encompasses
tfiese—forms of developments as well. --�
B. 'Timesharing in Coachella Valley: Timeshare projects ventured into the
Coachella Valley in the late 1970's. Most of the existing projects are
located in Palm Springs. Currently, only one timeshare project--the
Shadow Mountain Resort and Racquet Club--exists in Palm Desert. In res-
ponse to the increasing number of timeshare projects occuring in the
Valley, many of the desert cities have placed moratoriums on such develop-
ments until appropriate studies have been completed.
Since the passage of the moratoriums, Rancho Mirage has banned timeshare
projects from the City and Palm Springs is holding public hearings on
ordinances regulating timesharing and collecting of a transient occupancy
tax. Palms Springs ' proposed ordinance permits timeshare projects in
those zones which permits hotels/motels. The Palm Desert City Council has
already seen the Rancho Mirage Ordinance; Palm Springs' proposed ordinances
are attached for your information.
Timesharing
January 22, 1981 Page Two
III. LAND USE ISSUES:
A. Use Defined: Timesharing is generally considered a resort or vacation
land use. Surveys completed by the industry indicate that vacation
concerns (such as the opportunity to exchange a unit in one area for a
unit in another area, the certainty of having accomodations, and the
savings on future vacation costs) are the major reasons people acquire
timeshare units. Articles written by industry personnel indicate that
timesharing is a resort/vacation use of land.
Current zoning practice in the City permits resort uses in the PC (4)
.(Planned Commercial , Resort Center) zone. Uses permitted in this zone
include hotels and related ancillary commercial uses, entertainment
facilities, and restaurants. Resort hotels are also permitted in the
PR (Planned Residential ) , R-3 (Multifamily) and C-1. (General Commercial )
zones with either development plan or conditional use permit approval .
Besides being a resort use, timesharing is a transient type of activity.
Purchasers of timeshare units are transient residents, here only for a
short time period. Units, therefore, take on the characteristic as being
temporary lodging, such as hotel rooms, although there may be an interest
in real property.
B. Compatibility with Surrounding Uses: A major concern of the City is the
compatibility of timeshare projects with surrounding land uses, parti-
cularly residential uses. Generally, the situation consists of mixing a
transient residential use with permanent residential uses. Resort/vacation
use is inappropriate in residential areas due to the increased traffic
generation and multiple occupancies which may disturb the peace and quiet
of residential neighborhoods. In addition, lifestyles between those who
are permanent residents and those who are transient residents can be
different; conflicts between the two should be minimized through separation
of the two uses. Therefore, timeshare projects should not be permitted in
residential zones.
Staff has received numerous inquiries regarding the conversion of an
individual condominium unit to timesharing. This should not be allowed
for the reasons stated above. Also, once an individual unit timeshares,
it will be difficult to reconvert that unit for residential use since
conversion would require all owners to agree to sell to the same party.
C. Removal of Land for Residential Use: Construction of timeshare projects
remove land available for the construction of residential units for
permanent residents. This is extremely important in Palm Desert since the
City's economic base is expanding and the City, therefore, needs an ade-
quate amount of land for varous residential uses to meet the housing needs
Of incoming residents. The current and proposed General Plans recognize
this need and set the goal of providing a "variety of housing types and
densities for varying income levels and lifestyles throughout the City".
.The top priority of the City should be to ensure that adequate land is
available for the needs of residents.
Timesharing also eliminates land for other types of resort and transient
uses, such as hotels with convention facilities. The City Council and
Planning Commission have expressed an interest in expanding the City's
convention facilities, as exemplified during the discussions regarding
DP 03-80 (Stein-Brief/Vista's proposed project to construct a condo/hotel
resort with convention facilities at the southwest corner of Highway 111
and 44th Avenue). If permitted in resort commercial zones, timesharing
projects could preclude the development of other resort projects with
facilities the City desires.
Timesharing
January 22, 1981 Page Three
IV. REVENUE ISSUE:
A. Transient Occupancy Tax: The primary concern of the City in this area
pertains to the transient occupancy tax. Section 3.28.030 of the Palm
Desert Municipal Code imposes a 6% tax on the rent charged by the
operator of transient accomodations.
Although ownership of real property could be involved with timesharing
the units are still occupied by transients, or short termed occupants.
As defined by Section 3.28.02OF of the Municipal Code, a transient is
a person who "exercises occupancy or is entitled to occupancy by reason
of concession, permit, right of access, license or other agreement for a
period of thirty consecutive calendar days or less." Most, if not all ,
timeshare owners fit this definition.
Since timesharing is a transient use, it appears that the City could
charge a transient tax on said units. What needs to be determined is
the "rental value" of timeshare occupancies upon which the tax is levied.
In a normal hotel/motel rental , the "rental value" is the room rental rate
charged to the occupant. ' In timeshare, there is no specific rental rate
per day usage. Timeshare owners pay two costs which comprise the "rental
value" of the unit: 1) the purchase price of the unit for the term of
its use, which could be construed to be a form of prepaid rent; and 2)
the annual maintenance fee paid or payable, which includes maintenance
. charges, taxes, management fees, furniture, replacement reserves, and
other assessments. In those cases where a term is not specified, a 40
year term should be assumed, since the IRS allows 40 years as a useful
life of a hotel or apartment building for depreciation purposes. Com-
bining the two costs results in a rental value in following examples:
Example 1: Timeshare unit sold for $5000 for an annual weekly stay for
a term of 20 years, with an annual maintenance fee of $250
(for the one week) payable monthly. The rental value per
week of occupancy would be calculated as follows:
Maintenance Fee $250.00
Purchase Cost per year (20 yrs) 250.00 '
Rental Value per week 500.00
Rental Value per day 71.43
Transient Occupancy Tax per day
(71.43 x 6%) -4:29
i6ample 2: Timeshare unit sold for $5000 for an annual weekly stay (no
term mentioned) , with an annual maintenance fee of $250 (for
the one week) payable monthly. The rental value per week
of occupancy would be calculated as follows:
Maintenance Fee $250.00
Purchase Cost per year (40 yrs) 125.00
Rental Value per week 375.00
Rental Value per day 53.57
Transient Occupancy.Tax per day
.(53.57 x 6%) 3.211/
The above method to compute transient occupancy tax as it relates to
timesharing has been adopted by many California cities and is presently
under consideration in Palm Springs.
V. SALES TACTICS
Members of the City Council have received complaints from citizens regarding
sales tactics used by some developers of timeshare projects. Many people are
lured to projects by such gimmicks as free give aways. Once arriving at the
project the consumer is subjected to a strong sales pitch and, in some
instances, the promised gift is not available. In response to numerous com-
plaints the Department of Real Estate is requiring all timeshare promotional
Timesharing
January 22, 1981 Page Four
material to be submitted to the Department for review. Also, all advertised
gifts must be available and given away. The Palm Springs City Attorney,
during a meeting of that City's Timesharing Task Force, felt that outside the
activities of the Department of Real Estate and various law enforcement agencies
. there was little else a city can do, although this issue could be investigated
further should alleged abuses continue.
VI. RECOMMENDATIONS:
Three options are available to the Council for action:
a) Take no action;
b) Ban timeshare projects from the City; or
C) Relegate timeshare projects to the Resort 'Commercial Zane, or other
zone(s) deemed appropriate, with a conditional use permit, establish
development standards, and amend Transient Occupancy Tax (Title 3 of
the Municipal Code) to collect said tax.
Staff's recommendation is to adopt option (b) , banning timesharing from the
City for the reasons stated in this report and in the proposed ordinance.
Staff further recommends that, should the ban be ruled invalid by a Court of
Law, Council direct Staff to proceed with option (c) . Proposed draft
ordinance amending various sections of Title 3 (Transient Occupancy Tax)
and Title 25 (Zoning Ordinance) of the Municipal Code is attached for your
consideration.
c
�- : r
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, ADDING SECTIONS TO CHAPTER 25. 56 (GENERAL PRO-
VISIONS, ZONING ORDINANCE) OF THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY
ORDAIN as follows:
WHEREAS, there is a shortage of affordable housing in the City of Palm
Desert;
WHEREAS, the conversion of residential property within the City to vacation/
resort timesharing projects eliminates residential property, otherwise available for
rental or ownership in the City;
WHEREAS, vacation/resort timesharing project use is inappropriate in resi-
dential areas due to the increased traffic generation and multiple occupancies disturb-
ing the peace and quiet of residential neighborhoods; and
WHEREAS, vacation/resort timesharing project use precludes the development
of other resort uses desirable to the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert, as follows:
SECTION 1: Addition. That Section 25.56.480 is hereby added to the Code
of the City of Palm Desert, to read as follows:
"Section 25.56.480 - Timesharing - Defined. Timeshare project shall
mean one wherein a purchaser receives the right in perpetuity, for
life, or for a term of years, to the recurrent, exclusive use or
occupancy of a lot, parcel , unit room(s) , or segment of real property,
annually or on some other seasonal or periodic basis, for a period of
time that has been or will be allotted from the use or occupancy
( period into which the project has been divided and shall include, but
fl not limited to timeshare estate, interval ownership, vacation license,
vacation lease, club membership, timeshare use, and hotel/condominium. "
SECTION 2: Addition. That Section 25.56.490 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"Section 25.56.490 - Timesharing - Prohibiting. The conversion of an
existing single family residential unit, an existing condominium
unit, an existing apartment or multifamily residential unit, or an
existing hotel or motel room or unit to a timeshare unit or project
is prohibited in all zones in the City. The construction, selling
or development of any timeshare project is prohibited in all zones
in the City. "
SECTION 3: Addition. That Section 25.56.500 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"Section 25.56.500 -Timesharing - Exception. Section 25.56.480 is not
applicable to those projects for which applications for,approval from
the State Department of Real Estate have been filed prior to December
4, 1980, or projects in which the City has approved prior to December
4, 1980. "
SECTION 4: Certification. The City Clerk of the City of Palm Desert,
California, is hereby directed to cause this ordinance to be published once within
fifteen (15) days of adoption in the Palm Desert Post, a newspaper published and
circulated within the City of Palm Desert, California, and the same shall be in full
force and effect thirty (30) days after adoption.
PASSED, APPROVED and ADOPTED this day of 1981,
by the City Council of the City of Palm Desert, California, by the following vote,
to wit:
ORDINANCE NO. Page Two
AYES:
NOES:
ABSENT:
ABSTAIN:
S. ROY WILSON, Mayor
ATTEST:
SHEILA R. GILLIGAN, City Clerk
City of Palm Desert, California
/lr
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, AMENDING SECTIONS OF CHAPTER 3.28 (TRANSIENT
OCCUPANCY TAX) AND ADDING CHAPTER 25. 100 (TIMESHARING) TO
THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY OR
DAIN
as follows:
SECTION 1: Amendment. That Section 3.28.020 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.020 Definitions. Except where the context otherwise requires, the
definitions given in this section shall govern the construction of this chapter:
A. "Hotel" means any structure, or any portion of any structure, which is
occupied or intended or designed for use or occupancy by transients, including, but
not limited to dwelling, lodging or sleeping purposes, and includes any hotel , lodging-
house, roominghouse, apartment house, timeshare project or facility, dormitory, public
or private club, mobile home or house trailer at a fixed location, as permitted by
Section 7281 of the Revenue and Taxation Code of the state, or other similar structure
or portion thereof subject to the business license provided by this code.
B. "Occupancy" means the use or possession, or the right or entitlement to
the use or possession, of any hotel room, rooms or any portion thereof offered for rent
for dwelling, lodging or sleeping purposes regardless of the purpose for which such
rooms are rented or provided.
C. "Operator" means the person who is proprietor of the hotel whether in
the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, timeshare
project or facility manager or operator, or any other capacity. Where the operator
performs his or its functions through a managing agent of any type or character, the
managing agent shall also be deemed an operator for the purpose of this chapter, and
shall have jointly and severally the same duties and liabilities as his principal .
Compliance with the provisions of this chapter by either the principal or the managing
agent shall , however, be considered to be compliance by both.
D. "Rent" means the consideration charged or chargeable to the tenant or
person entitled to occupancy, for the occupancy of space valued in money whether
received in money, goods, labor or otherwise, including the full value of receipts,
cash, credits, property, or service of any nature whatsoever. "Rent" may have been
or may be payable prior to or following (in whole or in part) the occupancy to which
it is attributable and may have been paid in whole or in part in advance on a long-
term basis. such as in a ti:9es:^a'.re rrp,',ect or Simil'ar arranGemn:ent. It is not the
intent of this section to make the operator liable for the tax on uncollected rent.
However, uncollected rent must be reported.
E. "Tax administrator" means the director of finance, or such other
individual as may be designated by the City Council .
•F. • "Timeshare Occupancy" means occupancy related to the situation wherein
a purchaser receives the right or entitlement in perpetuity, for life, or for a term
of years or other extended term, to the recurrent, exclusive use or occupancy of a lot,
parcel unit room(s) hotel or Portion thereof, or segment of real property, annually
or on some other seasonal or periodic basis for a period of time that has been or
will be allotted from the use or occupancy periods into which the timeshare project
which is involved has been divided The said right or entitlement to occupancy may
attach in advance to a specific lot, parcel , unit, room(s), or portion of a hotel , or
segment of real property, or may involve designation or selection of the same at a
future time or times.
G. "Transient" means any person who exercises occupancy or is entitled
to occupancy by reason of .concession, permit, right of access, license, timeshare
arrangement or ownership or agreement, or other agreement for a period of thirty
consecutive calendar days or less, counting portions of calendar days as full days.
fAny such person so occupying space in a hotel shall be deemed to be a transient until
L the period of thirty days has expired. Unless days of occupancy or entitlement to
occupancy by one person are consecutive without any break, then prior or subsequent
eriods of suc occupancy or entitlement to occupancy shall not be counted when deter-
mining whether a period exceeds the stated thirty consecutive days. In determining
whether a person is a transient, uninterrupted periods of time extending both prior
and subsequent to November 26, 1973, may be considered. (Ord. 134 -551, 2, 1976; Ord.
6 §2, 1973). "
ORDINANCE NO. Page Two
SECTION 2: Amendment. That Section 3.28.030 of the Code of the City of
Palm Desert, California, is hereby amended to read as follows:
"3.28.030 Tax Imposed. For the privilege of occupancy in any hotel , each
transient is subject to and shall pay a tax in the amount of six percent of the rent
charged by the operator or otherwise payable by the transient. The tax constitutes
a debt owed by the transient to the City which is extinguished only by payment to the
operator or to the City. For purposes of this section, the rent deemed payable on
account of timeshare occupancy y a transient shall e t e rental value of tiTe unit or
rooms which accomodated such occupancy, which rental value shall be computed bill.
determininq the prorata share of the total purchase price of the timeshare right
or entitlement whether or not involving an estate or any ownership in real property)
which share is allocable to the period of transient occupancy currently involved
and adding thereto the total amount of any and all fees, assessments charges and
expenses charged by the operator as attributable to the timeshare occupancy of the
transient by whatever name such fees assessments charges or expenses may be deno-
minated, whether "occunyinq fee" "maintenance or operations charge" "per diem fee"
"management fee" or like name or otherwise In making the- computation referred to
above of the prorata share of the total purchase price in any case wherein the
timeshare right or entitlement is in perpetuity or for life or otherwise not for a
definite or ascertainable term, such proration shall be made upon an assumed term of
forty years. The transient shall pay the tax to the operator of the hotel at the
time the rent is paid. If the rent is paid in installments, a proportionate share of
the tax shall be paid with each installment. The unpaid tax shall be due when the
transient ceases to occupy space in the hotel . If for any-reason the tax due is not
paid to the operator of the hotel , the tax administrator may require that such tax
shall be paid directly to the tax administrator. Tax on occupancies in exchange for
services of any kind is due and payable to `.he City by the operator, the amount of
tax being determined on the basis of six percent of the current rental value of the
accomodations furnished. (Ord. 6 53, 1973). "
SECTION 3: Addition. That Chapter 25.100 is hereby added to the Code of
the City of Palm Desert, to. read as follows:
"CHAPTER 25.100
TIMESHARE PROJECTS /
25.100.010 Defined. As used in this Chapter, timeshare project shall mean
one wherein a purchaser receives the right in perpetuity, for life, or for a term of
years, to the recurrent, exclusive use or occupancy of a lot, parcel , unit, room(s),
or segment of real property, annually or on some other seasonal or periodic basis, for
a period of time that has been or will be allotted from the use or occupancy periods
into which the project has been divided and shall include, but not limited to time-
share estate, interval ownership, vacation license, vacation lease, club membership,
timeshare use, and hotel/condominium.
25.100.020 Permitted Zones. A timeshare project shall be permitted only in
the Planned Commercial-Resort PC 4'T zone and then only if and when a Conditional Use
Permit has been obtained therefor from the Planning Commission in accordance with
Chapter 25.72. of the Code. _.
25.100.030 Information to be Submitted with C.U.P. Application. In addition
to the information required by Section 25.72.020, an applicant for a Conditional Use
Permit approval involving a timeshare project shall submit in the application at least
the following information:
1. Legal description, street address or other location description
sufficient to identify the property. L
2. Description of the timeshare periods into which the project is
proposed to be divided.
3. Description of the nature of timeshare rights, entitlements,
estates, or the like into which the project is proposed to
be divided, and the methods by which additional such interest
may be created or existing interests may be transferred or
conveyed.
- ....fin. ..: ..
t♦�wr..
ORDINANCE NO. Page Three
4. The formula , fraction or percentage of the common expenses and
any voting rights assigned to each timeshare participant and,
where applicable, to each unit in a project that is not subject
to the timeshare program or arrangement.
5. A description of the means proposed to be employed to properly
and effectively collect and remit to the City the transient
occupancy taxes which will become due and payable from time to
time in the future.
6. Description of any proposed restrictions on the use, occupancy,
alteration or alienation of timeshare intervals and rights.
7. Copies of all existing California Department of Real Estate
reports or permits required by law or regulation.
8. Description of time periods, types of units, and which units
are in the timeshare program (if less than all ) , and the
length of time each of the units are committed to the time-
share program.
9. In the event an existing condominium project is proposed to be
converted to a whole or partial timeshare project, a verified
description or statement of the number and percentage of the
current .condominium owners desiring or consenting to the pro-
posed conversion of some or all of the units to a timeshare
basis. Also in such instance there shall be submitted a veri-
fied statement of the number and percentage of owners who have
received notification, either personally or by receipted certi-
fied U.S. Mail that application to so convert the project would
be submitted to the Commission together with when the City Staff
and the Commission would consider such application.
10. A description of the methods proposed to be employed to guarantee
tl the future adequacy, stability and continuity of a satisfactory
level of management and maintenance of .the timeshare project.
11. Any other information which the Commission or the applicant
considers necessary or desirable to an appropriate and. proper
consideration of the application.
25.100.040 Conditions for Approval . In addition to the findings, the
Commission shall make in conjunction with Section 25.72.070, the Commission shall
consider the following:
I. The impact of the timesharing project on transient rental
stock;
2. The impact of timesharing conversion on existing commercial
businesses;
3. The impact of timesharing on present and future City services;
4. The impact of timesharing on permanent residential stock.
5. Any other factors deemed relevant by the Commission.
L 25. 100.050 Minimum Timeshare Structure Size.
A. Every timeshare dwelling unit hereafter erected or converted shall have
a minimum living floor area of at least 1000 square feet, exclusive of unroofed por-
tions and. garages.
B. The standards may be increased by the design review process or the
Planning Commission based upon
1. Usability of the dwelling unit by the ultimate occupant;
2. Compatibility of the dwelling to the neighborhoods.
ORDINANCE NO. Page Four
25. 100.060 ExceDti0nS. This Chapter is not applicable to those projects
which applications for approval from the State Department of Real Estate have been
filed prior to December 4, 1980, or projects which the City has approved prior to
December 4, 1980. "
SECTION 4: Certification. The City Clerk of the City of Palm Desert,
California, is hereby directed to cause this Ordinance to be published once within
fifteen (15) days of adoption in the Palm Desert Post, a newspaper published and
circulated within the City of Palm Desert, California,. and the same shall be in
full force and effect thirty (30) days after adoption.
.PASSED, APPROVED, and ADOPTED this day of,•.. 1981,
by the City Council of the City of Palm Desert, California, by the following vote,
to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:-
S. ROY WILSON, Mayor
ATTEST:
SHEILA R. GILLIGAN, City Clerk [
City of Palm Desert, California
/Y Fnl D br r /
Memo to James McPherson
Re: Constitutionality of Time. Sharing Prohibition
April 7, 1981
Dear Mr. McPherson:
At your request, I have researched what I consider
to be the constitutionality of a prohibition of time share
projects within the City of Palm Desert as the same are
defined by Section 11003. 5 of the Business and Professions
Code of the State of California. It is my conclusion that
a time sharing project cannot constitutionally be prohibited
within cities, unless there is a specific finding that
such a prohibition is necessary to preserve the public health,
safety, morals or general welfare of the community. I find
it difficult to distinguish the degrees and varieties of
ownerships and to prohibit a form of ownership which may
include a number of people, as opposed to, or as distinguished
from a regulation of some lesser number. In any event, I
think the prohibition of the time share project as a form
of development is not currently within the constitutional
means of the City. If further research is desired, please
let me know.
IYou v y truly,
AG J. ERWIN
DJE:pb
45-275 PRICKLY PEAR LANE, PALM DESERT,CALIFORNIA 92260
TELEPHONE (714) 546-0611
CITY OF PALM DESERT
LEGAL NOTICE
INITIATION BY THE PALM DESERT PLANNING
COMMISSION, OF A ZONING ORDINANCE
AMENDMENT RELATIVE TO TIMESHARING.
CASE NO. ZOA 13L81
NOTICE IS HEREBY GIVEN that a Public Hearing will be held before the Palm Desert
Planning Commission to consider an amendment to the Municipal Code Chapter 3.28
relating to Transient Occupancy Tax and adding Chapter 25.100 (Timesharing) to
the Municipal Code.
SAID Public Hearing will be held on November 3, 1981 at 7:00 p.m. in the Council
Chambers in the Palm Desert City Hall , 45-275 Prickly Pear Lane, Palm Desert,
California, at which time and place all interested persons are invited to attend
and be heard.
RAMON A. DIAZ, Secretary
Palm Desert Planning Commission
PUBLISH: Palm Desert Post
October 22, 1981
.I
Memo to James McPherson
Re: Constitutionality of Time Sharing Prohibition
April 7, 1981
Dear Mr. McPherson:
At your request, I have researched what I consider
to be the constitutionality of a prohibition of time share
projects within the City of Palm Desert as the same are
defined by Section 11003.5 of the Business and Professions
Code of the State of California. It is my conclusion that
a time sharing project cannot constitutionally be prohibited
within cities, unless there is a specific finding that
such a prohibition is necessary to preserve the public health,
safety, morals or general welfare of the community. I find
it difficult to distinguish the degrees and varieties of
ownerships and to prohibit a form of ownership which may
include a number of people, as opposed to, or as distinguished
from a regulation of some lesser number. In any event, I
think the prohibition of the time share project as a form
of development is not currently within the constitutional
means of the City. If further research is desired, please
let me know.
You v y truly,
A�ul J • ERWIN
DJE:pb
a
� y—
r,
CITY OF PALM DESERT
TO: City Council and City Manager
FROM: Department of Environmental Services
SUBJECT: Timesharing
DATE: January 22, 1981
I. INTRODUCTION:
This report is the result of a council directive to study timesharing.
The study wil-1 address the various land use, revenue, and sales tactics
issues involved with the concept of timesharing.
The City Council has declared a three month moratorium on timeshare projects
in response to growing interest of converting existing units to timeshare.
II. BACKGROUND:
A. Timeshare Defined: Unlike other forms of real estate property, timesharing
involves the sa a of time segments of occupancy of dwelling units.
Although a variety of forms exist, there are two principle types of time-
sharing. The first type is called right-to-use. With this type, a
purchaser pays a sum that entitles him to occupy a unit for a specific
length of time each year for a specific number of years. Other forms of
timesharing in this category include vacation license, vacation lease,
club membership and timeshare use. The second type of timesharing is
commonly known as fee simple ownership. With this type, a buyer purchas s
a resort condominium unit for occupation for a specific length of time
each year. This type of timesharing is also known as- interval ownership
and timeshare estate.
The difference between the two types is that under the latter form the -
purchaser owns a piece of real property. The owner builds up equity and
pays property tax. The owner can sell , bequeath, or rent his slice of
the property.
According to the Department of Real Estates' proposed regulations, a
timeshared unit is one that consists of 12 or more timeshare owners.
The Department's proposed regulations do not distinguish between timeshare
and other forms of developments that sell units for time periods such as
hotel/condos or stock cooperatives. Hotel/condos are similar to timeshare
units, but with fewer owners per units. When units are not occupied by
owners they are available to the general public for transient use. Stock
cooperative are units owned by a corporative entity with shareholders
holding the right to occupy the units. Stgjck. cooper tjve�units ally
serve as__pgrma.nent idences. although,they can ,be timeshared Time-
sharing.; as.:_. efT fined in the Timeshare_Moratorim. Ordinance�encompasses
these forms of developments as well .
B. Timesharing in Coachella Valley: Timeshare projects ventured into the
Coachella Valley in the late 1970's. Most of the existing projects are
located in Palm Springs. Currently, only one timeshare project--the
Shadow Mountain Resort and Racquet Club--exists in Palm Desert. In res-
ponse to the increasing number of timeshare projects occuring in the
Valley, many of the desert cities have placed moratoriums on such develop-
ments until appropriate studies have been completed.
Since the passage of the moratoriums, Rancho Mirage has banned timeshare
projects from the City and Palm Springs is holding public hearings on
ordinances regulating timesharing and collecting of a transient occupancy
tax. Palms Springs' proposed ordinance permits timeshare projects in
those zones which permits hotels/motels. The Palm Desert City Council has
already seen the Rancho Mirage Ordinance; Palm Springs' proposed ordinances
are attached for your information.
Timesharing
January 22, 1981 Page Two
III. LAND USE ISSUES:
A. Use Defined: Timesharing is generally considered a resort or vacation
land use. Surveys completed by the industry indicate that vacation
concerns (such as the opportunity to exchange a unit in one area for a
unit in another area, the certainty of having accomodations, and the
savings on future vacation costs) are the major reasons people acquire
timeshare units. Articles written by industry personnel indicate that
timesharing is a resort/vacation use of land.
Current zoning practice in the City permits resort uses in the PC (4)
.(Planned Commercial , Resort Center) zone. Uses permitted in this zone
include hotels and related ancillary commercial uses, entertainment
facilities, and restaurants. Resort hotels are also permitted in the
PR (Planned Residential ), R-3 (Multifamily) and C-1. (General Commercial )
zones with either development plan or conditional use permit approval .
Besides being a resort use, timesharing is a transient type of activity.
Purchasers of timeshare units are transient residents, here only for a
short time period. Units, therefore, take on the characteristic as being
temporary lodging, such as hotel rooms, although there may be an interest
in real property.
B. Compatibility with Surrounding Uses: A major concern of the City is the
compatibility of timeshare projects with surrounding land uses, parti-
cularly residential uses. Generally, the situation consists of mixing a
transient residential use with permanent residential uses. Resort/vacation
Use is inappropriate in residential areas due to the increased traffic
generation and multiple occupancies which may disturb the peace and quiet
of residential neighborhoods. In addition, lifestyles between those who
are permanent residents and those who are transient residents can be
different; conflicts between the two should be minimized through separation
of the two uses. Therefore, timeshare projects should not be permitted in
residential zones.
Staff has received numerous inquiries regarding the conversion of an
individual condominium unit to timesharing. This should not be allowed
for the reasons stated above. Also, once an individual unit timeshares,
it will be difficult to reconvert that unit for residential use since
conversion would require all owners to agree to sell to the same party.
C. Removal of Land for Residential Use: Construction of timeshare projects
remove land available for the construction of residential units for
permanent residents. This is extremely important in Palm Desert since the
City's economic base is expanding and the City, therefore, needs an ade-
quate amount of land for varous residential uses to meet the housing needs
of incoming residents. The current and proposed General Plans recognize
this need and set the goal of providing a "variety of housing types and
densities for varying income levels and lifestyles throughout the City".
The top priority of the City should be to ensure that adequate land is
available for the needs of residents.
Timesharing also eliminates land for other types of resort and transient
uses, such as hotels with convention facilities. The City Council and
Planning Commission have expressed an interest in expanding the City's
convention facilities, as exemplified during the discussions regarding
DP 03-80 (Stein-Brief/Vista's proposed project to construct a condo/hotel
resort with convention facilities at the southwest corner of Highway Ill
and 44th Avenue) . If permitted in resort commercial zones, timesharing
projects could preclude the development of other resort projects with
facilities the City desires.
Timesharing
January 22, 1981 Page Three
IV. REVENUE ISSUE:
A. Transient Occupancy Tax: The primary concern of the City in this area
pertains to the transient occupancy tax. Section 3.28.030 of the Palm
Desert Municipal Code imposes a 6% tax on the rent charged by the
operator of transient accomodations.
Although ownership of real property could be, involved with timesharing
the units are still occupied by transients, or short termed occupants.
As defined by Section 3.28.02OF of the Municipal Code, a transient is
a person who "exercises occupancy or is entitled to occupancy by reason
of concession, permit, right of access, license or other agreement for a
period of thirty consecutive calendar days or less." Most, if not all ,
timeshare owners fit this definition.
Since timesharing is a transient use, it appears that the City could
charge a transient tax on said units. What needs to be determined is
the "rental value" of timeshare occupancies upon which the tax is levied.
In a normal hotel/motel rental , the "rental value" is the room rental rate
charged to the occupant. In timeshare, there is no specific rental rate
per day usage. Timeshare owners pay two costs which comprise the "rental
value" of the unit: 1) the purchase price of the unit for the term of
its use, which could be construed to be a form of prepaid rent; and 2)
the annual maintenance fee paid or payable, which includes maintenance
. charges, taxes, management fees, furniture, replacement reserves, and
other assessments. In those cases where a term is not specified, a 40
year term should be assumed, since the IRS allows 40 years as a useful
life of a hotel or apartment building for depreciation purposes. Com-
bining the two costs results in a rental value in following examples:
Example 1: Timeshare unit sold for $5000 for an annual weekly stay for
a term of 20 years, with an annual maintenance fee of $250
(for the one week) payable monthly. The rental value per
week of occupancy would be calculated as follows:
Maintenance Fee $250.00
Purchase Cost per year (20 yrs) 250.00
Rental Value per week 500.00
Rental Value per day 71.43
Transient Occupancy Tax per day
(71.43 x 6%) "4:29
Example 2: Timeshare unit sold for $5000 for an annual weekly stay (no
term mentioned), with an annual maintenance fee of $250 (for
the one week) payable monthly. The rental value per week
of occupancy would be calculated as follows:
Maintenance Fee $250.00
Purchase Cost per year (40 yrs) 125.00
Rental Value per week 375.00
Rental Value per day 53.57
Transient Occupancy-Tax per day
(53.57 x 6%) 3,21ve
The above method to compute transient occupancy tax as it relates to
timesharing has been adopted by many California cities and is presently
under consideration in Palm Springs.
V. SALES TACTICS
Members of the City Council have received complaints from citizens regarding
sales tactics used by some developers of timeshare projects. Many people are
lured to projects by such gimmicks as free give aways. Once arriving at the
project the consumer is subjected to a strong sales pitch and, in some
instances, the promised gift is not available. In response to numerous com-
plaints the Department of Real Estate is requiring all timeshare promotional
Timesharing
January 22, 1981 Page Four
material to be submitted to the Department for review. Also, all advertised
gifts must be available and given away. The Palm Springs City Attorney,
during a meeting of that City's Timesharing Task Force, felt that outside the
activities of the Department of Real Estate and various law enforcement agencies
. there was little else a city can do, although this issue could be investigated
further should alleged abuses continue.
VI. RECOMMENDATIONS:
Three options are available to the Council for action:
a) Take no action;
b) Ban timeshare projects from the City; or
c) Relegate timeshare projects to the Resort Commercial Zone, or other
zone(s) deemed appropriate, with a conditional use permit, establish
development standards, and amend Transient Occupancy Tax (Title 3 of
the Municipal Code) to collect said tax.
Staff's recommendation is to adopt option (b), banning timesharing from the
City for the reasons stated in this report and in the proposed ordinance.
Staff further recommends that, should the ban be ruled invalid by a Court of
Law, Council direct Staff to proceed with option (c.). Proposed draft
ordinance amending various sections of Title 3 (Transient Occupancy Tax)
and Title 25 (Zoning Ordinance) of the Municipal Code is attached for your
consideration.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, ADDING SECTIONS TO CHAPTER 25.56 (GENERAL PRO-
VISIONS, ZONING ORDINANCE) OF THE MUNICIPAL CODE.
The City Council of the City of Palm Desert, California, DOES HEREBY
ORDAIN as follows:
WHEREAS, there is a shortage of affordable housing in the City of Palm
Desert;
WHEREAS, the conversion of residential property within the City to vacation/
resort timesharing projects eliminates residential property, otherwise available for
rental or ownership in the City;
WHEREAS, vacation/resort timesharing project use is inappropriate in resi-
dential areas due to the increased traffic generation and multiple occupancies disturb-
ing the peace and quiet of residential neighborhoods; and
WHEREAS, vacation/resort timesharing project use precludes the development
of other resort uses desirable to the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert, as follows:
SECTION 1: Addition. That Section 25.56.480 is hereby added to the Code
of the City of Palm Desert, to read as follows:
"Section 25.56.480 - Timesharing - Defined. Timeshare project shall
mean one wherein a purchaser receives the right in perpetuity, for
life, or for a term of years, to the recurrent, exclusive use or
occupancy of a lot, parcel , unit room(s) , or segment of real property,
annually or on some other seasonal or periodic basis, for a period of
time that has been or will be allotted from the use or occupancy
period into which the project has been divided and shall include, but
not limited to timeshare estate, interval ownership, vacation license,
vacation lease, club membership, timeshare use, and hotel/condominium. "
SECTION 2: Addition. That Section 25.56.490 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"Section 25.56.490 - Timesharing- Prohibiting. The conversion of an
existing single family residential—unit, an existing condominium
unit, an existing apartment or multifamily residential unit, or an
existing hotel or motel room or unit to a timeshare unit or project
is prohibited in all zones in the City. The construction, selling
or development of any timeshare project is prohibited in all zones
in the City. "
SECTION 3: Addition. That Section 25.56.500 is hereby added to the Code of
the City of Palm Desert, to read as follows:
"Section 25.56.500 - Timesharing - Exception. Section 25.56.480 is not
app icable to those projects for which applications for,approval from
the State Department of Real Estate have been filed prior to December
4, 1980, or projects in which the City has approved prior to December
4, 1980. "
SECTION 4: Certification. The City Clerk of the City of Palm Desert,
California, is hereby directed to cause this ordinance to be published once within
fifteen (15) days of adoption in the Palm Desert Post, a newspaper published and
circulated within the City of Palm Desert, California, and the same shall be in full
force and effect thirty (30) days after adoption.
PASSED, APPROVED and ADOPTED this day of 1981,
by the City Council of the City of Palm Desert, California, by the following vote,
to wit:
J
ORDINANCE NO. Page Two
AYES:
NOES:
ABSENT:
ABSTAIN:
I(
S. ROY WILSON, Mayor
ATTEST:
SHEILA R. GILLIGAN, City Clerk
City of Palm Desert, California
/lr
• f
` INTEROFFICE MEMORANDUM
RECEIVED
City of Palm Desert im 20 FM Z 29
TO: MARTIN J. BOUMAN, City Manager
CITY CLERKS (iFr1CL•
FROM: DAVID J. ERWIN, City Attorney
SUBJECT: Time Share Moratorium DATE: January 19, 1981
Dear Marty:
Enclosed, for your information, are copies of
three ordinances relating to time share programs, which
apparently are under consideration in Indian Wells. I
thought you might like to be aware of these.
Also, I would like to know what the status of the
City Council ' s study is with regard to time sharing, because
the moratorium is only good for four months. If it is our
intent to continue with that mortorium for a period of time,
we will need to notice a hearing at least 30 days prior to
the expiration of that time.
Yours ver truly,
J. ERWIN
DJE:st
encls.
G"
4A-
ORDINANCE NO.
-AN ORDINANCE OF THE CITY OF INDIAN WELLS , CALIFORNIA
AMENDING ITS ZONING ORDINANCE TO PROVIDE FOR TIME SHARE PROGRAMS .
THE CITY COUNCIL OF THE CITY OF INDIAN WELLS , CALIFORNIA
DOES HEREBY ORDAIN AS FOLLOWS :
i Section 1 . Section 21 . 08. 461 is hereby added to the
City Code to read as follows :
Section 21. 08. 461 Time Share Program. "Time Share
Program" means a situation wherein an occupant receives the
right or entitlement in perpetuity, for life or for a term of
years or other extended term of the recurrent, exclusive use ,
right to use or occupancy .of a lot, parcel , unit, room(s) ,
hotel or portion thereof, or segment of real property annually
or on some other seasonal or periodic basis , for a period of
time that has been or -will be allotted from the use or
occupancy periods in to which the time share program which is.
involved has been divided. The right ,or entitlement to
occupancy may attach in advance to a specific lot , parcel , unit,
room(s) , or portion of a hotel or segment .of real property, or
may involve designation or selection of the same at a future
time or times . The interest obtained or owned by the occupant
may be pursuant to a fee, lease, contractural right of exclusive
occupancy, vacation license , prepaid hotel reservation, club
membership , limited partnership , vacation bond or otherwise.
Section 2 . Section 21 . 28. 020 is hereby repealed.
Section 3 . Section 21 . 26 . 020 (r) is hereby added to
the City Coto read as follows :
(r) Time Share Programs operated as a part of and
wholly within any hotel or resort hotel in conformance with the
following standards :
(1) No more than Fifty Pcrcent (50%) rf the
hotel or resort hotel rooms shall be involvLd in the time share
program.
(2) External signs shall not refer to the
time share program.
(3) . No participant in any. time share program
shall be allowed or permitted to purchase or otherwise obtain
any right to use the hotel or any portion thereof for more than
four (4) weeks during any one (1) year.
(4) Prior to the commencement of any sale the
owner or developer shall deliver to the Planning Department a
copy of the Final Public Report issued by The Department of Real
Estate of the State of California.
Section 4. The City Clerk shall certify to the passage
hereof and cause the same to be posted or published as required
by law. This Ordinance shall become effective thirty (30) days
after the date of its adoption.
PASSED AND ADOPTED THIS day of ,
1981 .
FRANK CHILSON, MAYOR
ATTEST:
CITY CLERK
1
: f
-2-
,
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF INDIAN WELLS , CALIFORNIA
AMENDING THE TRANSIENT OCCUPANCY TAX ORDINANCE TO CLARIFY
THAT ORDINANCE ' S APPLICABILITY TO TRANSIENT OCCUPANCY OF UNITS
ON A "TIME SHARE" BASIS OR ARRANGEMENT,
THE CITY COUNCIL OF. THE CITY OF INDIAN WELLS , CALIFORNIA
DOES HEREBY ORDAIN AS FOLLOWS :
Section 1 . Section 3. 12. 020 (1) is hereby amended to
read as old lows :
(1) "Hotel" means any structure or structures or
any portion of any structure or structures which is occupied
or intended or designed foi use or occupancy by transients , or
any cottage , condominium, house, hotel , inn, tourist home or
house, motel, studio hotel , bachelor hotel, lodging house,
rooming house, apartment house, dormitory, public or private
club or any similar structure or portion thereof, including,
but not limited to any structure involving any time share program.
The burden of establishing that housing or other facility is not
a hotel as herein defined shall be upon the operator or owner
'E thereof, who shall file with the Tax Collector such information
as the Tax Collector may require to establish and maintain such
status .
Section 2 . Section 3. 12 . 020 (2) is hereby amended to
read as . oll ows :
(2) "Occupancy" means the use or possession , or
s the right or entitlement to the use or possession of any hotel ;
room, rooms or any portion thereof offered for rent: or use for
dwelling, lodging or sleeping purposes regardless of the purpose
for which such rooms are rented or provided .
Section 3 . Section 3. 12 . 020 (5) is hereby amended to
read as Willows :
(3) "Rent" means. the consideration charged or
chargeable for the occupancy of space valued in money whether
received in money, goods , labor or otherwise, including the .
full value of receipts , cash, credits , property or service of
any nature whatsoever. "Rent" may have been , or may be payable
or paid prior to or following (in whole or in, part) the occupancy
to which it is attributable, and may have been paid in whole or
in part in advance on a long term basis , such as in a time share
program or similar arrangement, and shall include any amount
paid by the occupant whether it is paid to the operator or any
person previously entitled to the exclusive occupancy and whether
in the form of purchase price, advance registration , assessment,
service charge or• otherwise. It is not the intent of this
subsection to make the operator liable for the tax on uncollected
rent . However, uncollected rent must be reported.
Section 4. Section 3. 12. 020 (7) is hereby amended to
read as fo oTr ws:
(7) "Time Share Program" means a situation wherein
an occupant receives the right or entitlement in perpetuity ,
for life or for a term of years or other extended term to the
recurrent , exclusive use , right to use or occupancy of a lot,
� i
parcel , unit, room(s) , hotel or portion thereof, or segment of
real property annually or on some other seasonal or periodic
basis , for a period of time that has been or will be allotted
from the use or occupancy periods in to which the time share
program which is involved has been divided. The right or en-
titlement to occupancy may attach in advance to a specific
lot , parcel , unit , room(s) , or portion of a hotel or segment
of real property, or may involve .designation or selection of the
same at a future time or times . The interest obtained or owned
by the occupant may be pursuant to a fee, lease , contractural
right of exclusive occupancy, vacation license , prepaid hotel
reservation , club membership, limited partnership, vacation bond
or otherwise .
Section 5. Section 3. 12 . 020 (8) is hereby added to read
as follows :
I
(8) "Transient" means any person who exercises
occupancy or is entitled to .occupancy by; reason of concession,
permit, right of access , license, time share program, or other
agreement of whatsoever kind and nature for a period of thirty
(30) consecutive calendar days or less , counting portions of
calendar days as full days . Any person so occupying space in
a hotel shall be deemed to be a transient until the period of
thirty (30) days has expired.
Section 6. Section 3 . 12 : 030 is hereby amended to read
as follows :
3. 12. 030 Imposition. For the privilege of occupancy
in any hotel , each transient is subject to and shall pay a tax
in the amount of seven percent (7%) of the rent or other payment
made to the operator or otherwise payable by the transient in
consideration of his occupancy. This tax constitutes a debt
owed by the transient to the City which is extinguished only by
payment to the operator or to the City . The transient shall pay
the tax to the operator at the time the rent or other consideration
is paid. If the rent is paid in installments , a proportionate .
share of the tag; shall be paid with each installment. The unpaid
tax shall be due when the transient ceases to occupy space in
the hotel . If for any reason the 'tax due is not paid Lo the
operator of the hotel, the Tax Administrator may require that
such tax shall be paid directly to the Tax Administrator. Tax
on occupancies furnished transients which is chargeable but
not charged, in exchange for services of any kind, is due and
payable to the City ..by the operator, the amount of tax being
determined on the basis of six percent (6%) of the current rental
values of the accommodations furnished. The tax payable upon the
sale or .transfer of any interest in a time share program shall
be payable to the Tax Administrator. The operator shall notify
the Tax Administrator of the name and address of all participants
in any time share program and shall , within thirty (30) days
of any change in the participants of any time share program
notify the Tax Administrator of the name and address of any new
participant .
Section 7. This Ordinance relates to taxes for the
usual and current expenses of the City and shall therefore take
effect immediately upon its passage. The City Clerk shall
certify to the passage hereof and cause the same to be published
or posted in accordance with the law.
-2-
I
1981 . PASSED AND ADOPTED THIS day of ,
FRANK CHILSON , MAYOR
ATTEST:
CITY CLERK
1 .
-3-
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF INDIAN WELLS , CALIFORNIA
AMENDING THE ZONING ORDINANCE TO PROHIBIT TIME SHARE PROGRAMS .
THE CITY COUNCIL OF THE CITY OF INDIAN WELLS , CALIFORNIA
DOES HEREBY ORDAIN AS FOLLOWS :
Section 1. Section 21. 04. 090 is hereby added to the
City Code to read as follows :
21. 04. 090 Time Share Programs . Time Share Programs
are prohibited in all zones within the City.
Section 2. Section 21. 08. 461 is hereby added to the
City Code to read as follows :
21 . 08. 461 Time Share Programs . "Time Share Program"
means a situation wherein an occupant receives the right or
entitlement in perpetuity, for life or for a term of years
or other extended term of the recurrent, exclusive use, _
right to use or occupancy of a lot , parcel, unit, room(s) ,
hotel or portion thereof, or segment of real property annually
or on some other seasonal or periodic basis , for a period of
time that has been or will be allotted from the use or
occupancy periods in to which the time share program which is
involved has been divided. The right or entitlement to
occupancy may attach in advance to a .specific lot, parcel , unit ,
room(s) , or portion of a hotel or segment of real property , or
may involve designation or selection of the same at a future
1 time or times . The interest obtained or owned by the occupant
may be pursuant to a fee , lease , contractural ri ht of exclusive
occupancy, vacation license , prepaid hotel reservation , club
membership , limited partnership , vacation bond or otherwise.
Section 3 . The City Clerk shall certify to the passage
hereof and cause the same to be, published or posted as required
by law.
PASSED AND ADOPTED THIS day of ,
1981 .
FRANK CHILSON, MAYOR
ATTEST:
CITY CLERK
I _.
M
ORDINANCE NO. 246
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, DECLARING AN EMERGENCY AND PROHIBITING AND
EXTENDING A MORATORIUM ON TIME-SHARE PROJECTS IN ANY ZONE
WITHIN THE CITY OF PALM DESERT.
The City Council of the City of Palm Desert, California, DOES HEREBY
ORDAIN, as follows:
SECTION 1. URGENCY.
' This Ordinance is adopted as an urgency measure, pursuant to the authority
i of Section 65858 of the Government Code of the State of California, to extend a
moratorium upon establishment within the City of Palm Desert of any "time-share" or
"Interval ownership" project. The nature of the emergency justifying the adoption of
this Ordinance as an urgency measure is that a number of time-share or interval owner-
ship projects as being developed or proposed for development within the City at a
time when the extent of needed control , the effect of existing zoning controls, the
effect upon transient occupancy tax revenues, and the nature of sales and promotional
techniques to be used, all remain uncertain. Each of such matters is or may be
contrary to the public health, safety and welfare.
SECTION 2. DEFINITIONS.
Time-share Project shall mean one wherein a purchaser receives the right in
perpetuity, for life, or for a term of years, to the recurrent, exclusive use or
occupancy of a lot, parcel , unit, room(s) , or segment of real property, annually or
on some other seasonal or periodic basis, for a period of time that has been or will
be allotted from the use or occupancy periods into which the project has been divided
and shall include, but not be limited to time-share estate, interval ownership, vaca-
tion license, vacation lease, club membership time-share, and time-share use, as
hereinafter defined.
Time-shareEstate shall mean an ownership or leasehold estate in property
devoted to a time-share fee (tenants in common, time span ownership, interval owner-
ship) or a time-share lease.
Interval Ownership shall mean the buyer owns a unit during a stipulated
period of time for a specified number of years, or in perpetuity, generally including
a provision that at the end of the useful life of the building, or at the end of the
time span, ownership becomes tenancy in common with all other owners of the real
property of which the unit is part.
Vacation License shall mean a right granted to a buyer to use a unit for
a specified time period for a term of years, or useful life of the building. The
buyer may or may not be permitted to sell his license.
Vacation Lease shall mean a lease on a particular unit, which entitles the
lessee to a ix�ed annul period of occupancy.
Club Membership Time-share shall mean a concept where a buyer purchases a
club members ip which allows a right to occupy a unit for a specified period of time
each year. The club is a nonprofit association, purchasing or leasing structure(s)
for the benefit of club members. Time periods may be fixed or selected annually.
Time-share Use shall mean any contractual right of recurrent periodic
exclusive occupancy which does not fall within the definition of a "Time-share
Estate" including, but not limited to, a vacation lease, vacation license, club
membership, limited partnership or vacation bond.
.rv..f SECTION 3. MORATORIUM.
An eight (8) month extension of the moratorium created by Ordinance No. 236
is hereby established to complete a study to ascertain the magnitude of the potential
problems in the concept of "time-share" projects within the City of Palm Desert and
to develop controls in compliance with State Law for the following purposes
v
)
ORDINANCE NO. 246 Page Two
a. The "time-share" concept is a transient type of activity and has
no apparent local control under the City's current ordinances. A study is needed
to determine the compatability of this concept with the City's existing residential
zoning classifications to insure protection of the public's health, safety and welfare.
b. The relationship between the "time-share" tourist type use and the
City's existing Transient Occupancy Tax needs to be studied and resolved.
C. The communications involved in the promotion of the "time-share"
concept and sales of time-share units within the City may require restrictive
legislation to prevent high pressure sales tactics and other possible impositions
upon the public. Additional time is necessary to study and propose means and methods
of control for the promotion and sale of "time-share projects" and/or vacation
licenses.
d. The relationship between the "time-share" concept and the maintenance
of the project needs to be studied and resolved.
SECTION 4. ZONES PROHIBITING TIME-SHARE PROJECTS.
During the period of the above stated moratorium, time-share projects
shall not be a permitted use in any zone in the City of Palm Desert.
SECTION 5. EXCEPTIONS.
This Ordinance shall not affect time-share projects for which approved
permits from the State Department of Real Estate have been issued or projects in
which units have been lawfully sold or offered for sale to the public, at the date of
adoption of this Ordinance.
r
SECTION 6. EFFECTIVE PERIOD OF ORDINANCE.
This- Ordinance shall remain in effect for a period of eight (8) months
from the date Ordinance No. 236 expires unless sooner repealed or otherwise
modified, and subject to any extension of the time period, pursuant to and in
accordance with Section 65858 of the Government Code of the State of California.
SECTION 7. This Ordinance shall be in full force and effect immediately
upon adoption by at least a four-fifths vote of the City Council .
SECTION 8. The City Clerk shall certify to the passage of this ordinance
and shall cause the same to be posted as required by law.
PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert,
California, on the 12 day of February 1981, by the following vote, to
wit:
AYES: McPherson, Newbrander, Pulugi, Snyder & Wilson
NOES: None
ABSENT: None
ABSTAIN: None
S Y WILDS N,' Mayor
ATTEST:- ,
SHEILA R. GILU A CITY K
City of Palm Desert, Calif nia
/lr
J
INTEROFFICE MEMORANDUIv,
City of Palm Desert 000253
TO: SHEILA GILLIGAN, City Clerk
FROM: DAVE ERWIN, City Attorney
SUBJECT: Time-Sharing RECEIVED .
DATE:Dec. 29, 1980
'
&6 DEC 31 PP1 ! ! 50
Dear Sheila: CITY CLERK'S OFFICE
Enclosed you will find a copy of Rancho Mirage' s
ordinance prohibiting the development of time-share projects
and uses. Please make copies of the ordinance and provide
them to Marty and whoever is doing a study on time-share for
the City Council. I believe one copy ought to go to each of
the Council members.
This is in response to the request from Mr. Snyder
at the last meeting about what is being considered in Rancho
Mirage.
Yours--"very truly,
l 4 .
DAVID J. ERWIN
DJE:st
encl.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO
MIRAGE ADDING CHAPTER 17.14 TO TITLE 17 OF THE RANCHO MIRAGE
MUNICIPAL CODE PROHIBITING THE DEVELOPMENT OF TIME-SHARE PROJECTS
AND USES 14ITHIN THE CITY OF RANCHO MIRAGE.
The City Council of the City of Rancho Mirage does ordain
as follows:
2 Section 1. This ordinance is adopted to protect the public
3 health, safety and welfare by prohibiting the development of time-
share and interval ownership projects in the City of Rancho Mirage.
Section 2. Chapter 17.14 is hereby added to Title 17 of
the Rancho Mirage Municipal Code to read:
CHAPTER 17.14
TIME-SHARING PROJECTS AND USES
17.14.010. Definitions. As used in this Chapter:
a) A "Time-share Project" is one in which
a purchaser receives a right in perpetuity, for life, or for a term
of years to the recurrent exclusive use or occupancy of a lot, parcel,
unit or segment of real property annually or on some other periodic
basis, for a period of time that has been, or will be, allotted from
the use or occupancy periods into which the project has been divided.
b) A "Time-share Estate" is a right of occupancy
in a time-share project which is coupled with an estate in real pro-
perty.
c) A "Time-share Use' is a license or contractual
or membership right of occupancy in a time-share project which is not
coupled with an estate in real property.
17.14.020. Prohibitions. It shall be unlawful to convert
to a time-share project, a time-share estate, or a time-share use, all
or any part of: .
a) An existing single family residential unit;
or
b) An existing residential unit in a condominium
project; or
c) An existing apartment or multi-family resi-
dential unit; or
d) An existing hotel or motel room or unit.
1 17.14.030. Additional Prohibitions:
a) It shall be unlawful to either construct, sell
or develop any time-share project or time-share estate in the City
of Rancho Mirage.
b) I't shall be unlawful to sell any right of
occupancy in a tine-share-estate.
c) It shall be unlawful to sell, rent or
give by contract or otherwise any license or membership right of
occupancy in a timeshare project which is not coupled with an estate
In real property.
w
Section 3. The City Clerk shall certify to the adoption
of this ordinance and shall cause the same to be posted as required
by law.It shall become operative on the 28th day of February, 1981,
which is the date upon which Ordinance No. 207 will cease to be
effective. `
PASSED AND ADOPTED .this day of
19 ,
CITY OF RANCHO MIRAGE
Michael S. Wolfson
Mayor
ATTEST:
Barbara E. Dohn
City Clerk
APPROVED AS TO FORK:
C rge J. Wakefield
C ty Attorney