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HomeMy WebLinkAboutZOA 19-0002 - El Paseo Overlay-Downtown DistSTAFF REPORT CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT MEETING DATE: June 27, 2019 PREPARED BY: Kevin Swartz, Associate Planner REQUEST: Consideration to approve a Zoning Ordinance Amendment amending the El Paseo Overlay District and the Downtown District to allow professional office uses on the ground floor fronting El Paseo east of San Luis Rey Avenue; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act Recommendation Waive further reading and pass Ordinance No. 1350 to second reading, approving a Zoning Ordinance Amendment (ZOA) to Section 25.28.040 El Paseo Overlay District (EPOD) and Section 25.18.040 Downtown District (DD), allowing professional office uses on the ground floor fronting El Paseo east of San Luis Rey Avenue, and based on the criteria identified within the Analysis section and; 2. By Minute Motion, adopt a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Strategic Plan Obiectives Allowing professional office uses on the ground floor along the east end of El Paseo will add additional users to the street and help fill the vacant storefronts. It will also add additional year- round employees to the street to dine and shop as identified in the City's Strategic Plan including: • Land Use - Priority 4: "Create a mixed -use city core integrating shopping, dining, lodging, and housing. " • Tourism and Marketing — Priority 1: "Improve access to Palm Desert and its attractions to enhance the ease of lifestyle." • Transportation — Priority 1: "Create walkable neighborhoods and areas within Palm Desert that would include residential, retail, services and employment centers, and parks, recreation and open space to reduce the use of low occupancy vehicles." • Transportation — Priority 3: "De-emphasize single/low-occupancy vehicles and optimize modes of travel (bus, carpool, golf -cart, bicycle and pedestrian)." June 27, 2019 — CC Staff Report El Paseo ZOA Office Uses Page 2 of 4 Executive Summary Approval of staffs' recommendation will approve a ZOA to allow office professional uses on the ground floor fronting El Paseo east of San Luis Rey Avenue. The ZOA provides criteria to where office uses will be permitted, the type of office uses, the maximum percentage (15 percent) of building frontage, and requirement for Conditional Use Permit (CUP) approval. The requirements are identified in the Analysis section of this staff report. Backaround On March 28, 2019, staff recommended approval of a ZOA to allow office professional uses on the ground floor fronting El Paseo throughout the one -mile (Highway 74 to Portola Avenue) corridor based on the below recommendations. • Allow office uses throughout the one -mile corridor (Highway 74 to Portola Avenue). • Prohibit office uses located on corner lots. • No office uses allowed to abut/neighbor one another. • Require a CUP. • Allow professional offices that will engage the street (no banks or medical). • Prohibit office uses that occupy more than 15% of total linear building frontage within each block (north and south sides). The 15% recommendation came from Mr. Gibbs as well as the EPMA. At the March 28, 2019, City Council meeting, the Council discussed this topic but was not able to come to an agreement and after several different motions, the ZOA failed. At its regular meeting of April 25, 2019, Councilmember Jonathan stated that one of the elements that was not presented to the City Council at the March 28, 2019 meeting was the option of allowing office uses east of San Luis Rey Avenue. He requested under Councilmember Requests for Action that staff propose that option to the City Council. Discussion The City's overall goal is to focus on El Paseo as a whole and to create a city center/downtown that provides high intensity mixed -use developments anchored by civic, cultural, entertainment, retail, and dining activity along walkable streetscapes. The one -mile corridor of El Paseo between Highway 74 and Portola Avenue consists of seven blocks. Staff conducted a field survey and identified 11 existing office uses fronting El Paseo throughout the one -mile corridor. Block 7 (San Luis Rey Avenue to Portola Avenue) includes three of the 11 existing office uses. Below is a breakdown showing the type of office uses within Block 7 (north and south sides). • Block 7 — San Luis Rey Avenue to Portola Avenue o North — 2 office uses (Real estate and bank) o South — 1 office uses (Wealth advisor) G:\Planning\Kevin Swartz\Word\EI PasWJune 27, 2019 CC staff report El Paseo office uses.docx June 27, 2019 — CC Staff Report El Paseo ZOA Office Uses Page 3 of 4 Analvsis Staff is mindful of the City's overall goal for El Paseo to remain a high -end, luxury pedestrian - friendly street and understands the need to allow a small amount of storefront office uses without saturating the street. Staff believes that the recommendations made at the March 28, 2019 Council meeting are still appropriate, with only two new recommendations: 1. limit office uses east of San Luis Rey Avenue; and 2. allow medical offices. The draft ordinance recommends limiting office uses to occupy not more than 15 percent of total linear frontage (north and south sides). The total linear building frontage on the north side totals 875 feet (multiple 15 percent), allowing 131 total linear frontage of office uses. Currently, the bank occupies 120 linear feet and the real-estate business occupies 23 linear feet, both totaling 143 linear feet. Based on today's environment, no new office use would be able to operate under this recommendation. In addition, the bank is currently located on a corner lot, which is another recommendation not to allow office uses on corner lots. If the bank were to close or relocate, extra space would be available along the north side. The total linear building frontage on the south side is 1,020 feet (multiple 15 percent), allowing 153 total linear frontage of office uses. Currently, the wealth advisor business occupies 34 linear feet. The south side would be able to accommodate an additional 119 linear feet of office use. Staff is recommending the following: • No office uses allowed on corner lots. This will preserve the two intersections within Block 7, and allow vibrant businesses that engage and interact with the street, such as restaurants and mixed -use developments. • No new office uses allowed to abut/neighbor one another. This will help preserve breaks between retail/restaurant businesses and office uses along Block 7. City staff does not want to create the entire block into office frontages. • Allow professional offices that will engage the street. o Professional offices (e.g. accounting, investment firms (i.e. Charles Schwab), medical offices, and attorneys). o Offices engaged in the production of intellectual uses (e.g. advertising, architectural, photography, and travel agency). o Prohibited uses include, and are not limited to, financial institutions (banks), utility companies, or quasi -government uses. • Require a CUP. This would allow staff and the Planning Commission to review the type of office uses, locations, land use compatibility, and parking. Staff believes that the CUP process provides for an excellent tool. • Prohibit office uses that occupy more than 15% of total linear building frontage within Block 7 (north and south sides). Capping the percentages will help preserve Block 7 from saturation of office uses. GAPlanning\Kevin Swartz\Word\EI PasecMune 27, 2019 CC staff report El Paseo office uses.dou June 27, 2019 — CC Staff Report El Paseo ZOA Office Uses Page 4 of 4 In order to achieve and implement the recommendations, Palm Desert Sections 25.28.040 El Paseo Overlay District and 25.18.040 Downtown modified. The amended language is within Exhibit "A" and Exhibit "B" Ordinance. Fiscal Analvsis: There is no fiscal impact related to staff's recommendation. Environmental Review Municipal Code District must be of the draft ZOA For the purposes of CEQA, the Director of Community Development has determined that the proposed project will not have a significant negative impact on the environment and staff has prepared a Notice of Exemption, which is attached as part of this report and filing is in accordance with CEQA Guidelines. LEGAL REVIEW Robert W. Hargreaves City Attorney DEPT. REVIEW Ryan Stendell Director of Community Development FINANCIAL REVIEW CITY MANAGER N/A Janet Moore Lauri Aylaian Director of Finance City Manager ATTACHMENTS: 1. Draft ZOA Ordinance No. 1350 . Exhibit "A" and Exhibit "B" 2. Notice of Exemption 3. Legal Notice 4. Draft Amendments to Sections 25.28.040 and 25.18.040 GAPlanning\Kevin Swartz\Word\EI PaseoVune 27, 2019 CC staff report El Paseo office uses.docx ORDINANCE NO. 1350 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT TO PALM DESERT MUNICIPAL CODE SECTION 25.28.040 EL PASEO OVERLAY DISTRICT (EPOD) AND SECTION 25.18.040 DOWNTOWN DISTRICT (DD), ALLOWING PROFESSIONAL OFFICE USES ON THE GROUND FLOOR FRONTING EL PASEO EAST OF SAN LUIS REY AVENUE; AND ADOPTING A NOTICE OF EXEMPTION IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT CASE NO: ZOA 19-0002 WHEREAS, the City Council of the City of Palm Desert, California, did on the 2711, day of June 2019, hold a duly noticed public hearing to consider the request by the City of Palm Desert and approved the above noted; and WHEREAS, establishing an Ordinance to allow office professional uses on the ground floor fronting El Paseo east of San Luis Rey Avenue. The Zoning Ordinance Amendment (ZOA) provides criteria on where office uses will be permitted, the type of office uses, and requires the approval of a Conditional Use Permit (CUP); and WHEREAS, the City Council of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in approval of the Zoning Ordinance Amendment - SECTION 1. Findings. The City Council of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the `City"), California, is a municipal corporation, duly organized under the constitution and laws of the State of California. B. The Planning and Zoning Law authorizes cities to establish zoning ordinances to address land use designations and property regulations for development.. C. The Planning and Zoning Laws require cities to make General Plan and Zoning standards consistent in order to remove ambiguity and conflicting policies and that the proposed amendments to the Zoning Ordinance bring the documents into conformity with the adopted General Plan. SECTION 2. Zoning Ordinance Amendment. The City Council of the City of Palm Desert approves and adopts the amendments shown in Exhibit "A" and Exhibit "B" which is attached hereto and incorporated herewith. That the City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in the Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. SECTION 3. Severability. if any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this resolution or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof, The City Council hereby declares that it would have passed each section, L61:401►F_101C0jai el subsection, subdivision, paragraph, sentence, clause, or phrase, thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The City Council of the City of Palm Desert finds the changes to the Zoning Ordinance have been reviewed and considered and it has determined that any environmental impacts associated with the changes have been sufficiently reviewed by the Environmental Impact Report prepared as part of the General Plan Update, and the expansion of allowing office uses will not have a direct physical impact to the environment and that all future ,development within the Downtown District will be reviewed in accordance with CEQA, PASSED, APPROVED, AND ADOPTED by the City; Council of the City of Palm Desert, California, at its regular meeting held on the 27th day -`of ` —Une 2019, by the following vote, to wit: G.%P!annmq)Kervin SwartzlWordlEI PemkCC ZOA Ord Office Uses June 27.doc ORDINANCE NO. Exhibit "A" 25.28.040 El Paseo Overlay District A. Intent and purpose. This section includes properties east of San Luis Rey Avenue, El Paseo is designed as a pedestrian specialty retail/personal services district. The success of a pedestrian commercial district is dependent upon the creation and maintenance of a continuous succession of diverse, but compatible businesses, which attract and sustain pedestrian interest. To encourage this continuous pattern of pedestrian -oriented use, this chapter shall regulate the type of uses, which may occupy El Paseo ground floor commercial frontage. B. Permitted uses. The following retail/personal setvi6e::. uses shall be liberally construed to be permitted uses within the El Paseo pedestrian commercial overlay: 1. Art galleries. 2. Book and card shops. 3- Clothing and apparel shops. 4. Furniture stores and home furnishings. 5. Gift and accessories boutiques (including small antiques). & Jewelry shops. 7. Liquor, beverage, and food item shops. 8. Luggage shops. 9. Personal care/products shops and services (including barbering and cosmetology). 10. Restaurants. 11. Sundries sho :.(gEneral merchandise). C. Conditional uses. The P.I. nning Ccsmmission may, by CUP, approve office professional uses located .ph'the ground floor fronting El Paseo east of San Luis Rey Avenue if they are detecrrihed;;to be cairpatible with the intent and purpose of this chapter. (Ord. 1324: 7` 017;' Di`d: f 277 § 5, 2014; Ord. 1259 § 1, 2013-) 1. The type of office professional uses that may be allowed. A. Professional 6f pes (e.g. accounting, attorneys, medical offices, and investment firms; B. Offices engaged in the production of intellectual uses (e.g. advertising, architectural, photography, and travel agency). C. Prohibited: uses include, but are not limited to, financial institutions, utility companies, or quasi -government uses. 2. Outdoor storage of materials is prohibited. 3. Office uses shall not be located on corner lots. 4. Office uses shall not abut/neighbor one another. 5. Office uses shall not occupy more than 15% of total linear building frontage within Block 7 (north and south sides), per the exhibit on file with the Department of Community Development/Planning Division. GAPWnning%Kevin SwartzMerdlEI PaseolCC ZOA Ord Office Uses June 27.doe 101N. -01rk"T. z W: rk ra Exhibit "B" 25.18.040 Downtown District Under Land Use and Permit Requirements within the matrix table for Office Professional under the Downtown (D) and Downtown Core Overlay (❑-O) change Footnote 1 that states, "Uses prohibited along El Paseo facing ground floor frontage" to, "Office professional uses may be allowed subject to Section 25.28,040 El Paseo Overlay District." G %PlanningWevin Swartz%WordlEI Paseo= ZOA Ord Office Uses June 27.doc NOTICE OF EXEMPTION TO: ❑ Office of Planning and Research P. O. Box 3044, Room 113 Sacramento, CA 95812-3044 ® Clerk of the Board of Supervisors or County Clerk County of: Riverside FROM: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 2724 Gateway Dr, Riverside, CA 92507 1. Project Title: ZOA to allow office professional type uses on the ground floor fronting El Paseo east of San Luis Rey Avenue 2. Project Applicant: City of Palm Desert 3. Project Location — Identify street address and Citywide Zoning Ordinance Amendment applied to: cross streets or attach a map showing project El Paseo (east of San Luis Rey Avenue) site (preferably a USGS 15' or 7 1/2' topographical map identified by quadrangle name): 4. (a) Project Location — City: Palm Desert (b) Project Location — County: Riverside 5. Description of nature, purpose, and Approval of staff's recommendation will approve a beneficiaries of Project: ZOA to allow office professional type uses on the ground floor fronting El Paseo east of San Luis Rey Avenue. The ZOA provides criteria on where office uses will be permitted, the type of office uses, and approval of a CUP. In order to approve the ZOA, Sections 25.28.040 EPOD and Section 25.18.040 DID must be modified. 6. Name of Public Agency approving project: City of Palm Desert 7 Name of Person or Agency undertaking the City of Palm Desert project, including any person undertaking an activity that receives financial assistance from the Public Agency as part of the activity or the person receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the activity: 8. Exempt status: (check one) (a) ❑ Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA Guidelines § 15268) (b) ❑ Not a project. (c) ❑ Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c)) (d) ® Categorical Exemption. CEQA Guidelines Section 15061(b)(3) that CEQA State type and section only applies to projects that have the potential for number: causing a significant effect on the environment. (e) ❑ Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a)) Notice of Exemption FORM "B" (0 ❑ Statutory Exemption. State Code section number: (g) ❑ Other. Explanation: 9. Reason why project was exempt: Project is consistent with the City's general plan and the overlay district will not have an immediate or negative effect on the environment. Individual development proposals that utilize the overlay district will be evaluated separately in accordance with CEQA guidelines. 10. Lead Agency Contact Person: Kevin Swartz, Associate Planner Telephone: (760) 346-0611 11. If filed by applicant: Attach Preliminary Exemption Assessment (Form "A") before filing. 12. Has a Notice of Exemption been filed by the public agency approving the project? Yes ® No ❑ 13. Was a public hearing held by the lead agency to consider the exemption? Yes ® No ❑ If yes, the date of the public hearing was: March 28, 2019 Signatur Date: Title: f154_,c,'k ® Signed by Lead Agency ❑ Signed by Applicant Date Received for Filing: (Clerk Stamp Here) Authority cited: Sections 21083 and 21100, Public Resources Code. Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. Notice of Exemption FORM "B" CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 19-0002 NOTICE OF A PUBLIC HEARING BEFORE THE PALM DESERT CITY COUNCIL TO CONSIDER APPROVING A ZONING ORDINANCE AMENDMENT AMENDING THE EL PASEO OVERLAY DISTRICT AND THE DOWNTOWN DISTRICT TO ALLOW PROFESSIONAL OFFICE USES ON THE GROUND FLOOR FRONTING EL PASEO EAST OF SAN LUIS REY AVENUE; AND ADOPTION OF A NOTICE OF EXEMPTION IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 and Section 15061(b)3 in that the ZOA to allow office uses on the ground floor will not result in a direct impact to the built environment. Therefore, the Director of Community Development is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Proiect Location: El Paseo between San Luis Rey Avenue and Portola Avenue Proiect Description: The ZOA will allow office professional uses on the ground floor fronting El Paseo east of San Luis Rey Avenue. Recommendation: Staff is recommending approval supporting the changes to the Zoning Ordinance. Public Hearing: The public hearing will be held before the City Council on June 27, 2019, at 4:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period for this project is from June 15, 2019, to June 27, 2019. Public Review: The ZOA is available for public review daily at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to, the City Council hearing. All comments and any questions should be directed to: Kevin Swartz, Associate Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 kswartz@cityofpalmdesert.org PUBLISH: DESERT SUN RACHELLE KLASSEN, City Clerk June 15, 2019 Palm Desert City Council Draft Changes Shown in Bold 25.28.040 El Paseo Overlay District A. Intent and purpose. This section includes properties east of San Luis Rey Avenue. El Paseo is designed as a pedestrian specialty retail/personal services district. The success of a pedestrian commercial district is dependent upon the creation and maintenance of a continuous succession of diverse, but compatible businesses, which attract and sustain pedestrian interest. To encourage this continuous pattern of pedestrian -oriented use, this chapter shall regulate the type of uses, which may occupy El Paseo ground floor commercial frontage. B. Permitted uses. The following retail/personal service uses shall be liberally construed to be permitted uses within the El Paseo pedestrian commercial overlay: 1. Art galleries. 2. Book and card shops. 3. Clothing and apparel shops. 4. Furniture stores and home furnishings. 5. Gift and accessories boutiques (including small antiques). 6. Jewelry shops. 7. Liquor, beverage, and food item shops. 8. Luggage shops. 9. Personal care/products shops and services (including barbering and cosmetology). 10. Restaurants. 11. Sundries shops (general merchandise). C. Conditional uses. The Planning Commission may, by CUP, approve office professional uses located on the ground floor fronting El Paseo east of San Luis Rey Avenue if they are determined to be compatible with the intent and purpose of this chapter. (Ord. 1324 § 7, 2017; Ord. 1277 § 5, 2014; Ord. 1259 § 1, 2013.) 1. The type of office professional uses that may be allowed. a. Professional offices (e.g. accounting, attorneys, medical offices, and investment firms). b. Offices engaged in the production of intellectual uses (e.g. advertising, architectural, photography, and travel agency). c. Prohibited uses include, but are not limited to, financial institutions, utility companies, or quasi -government uses. 2. Outdoor storage of materials is prohibited. 3. Office uses shall not be located on corner lots. 4. Office uses shall not abut/neighbor one another. 5. Office uses shall not occupy more than 15% of total linear building frontage within Block 7 (north and south sides), per the exhibit on file with the Department of Community Development/Planning Division. 25.18.040 Downtown District Under Land Use and Permit Requirements within the matrix table for Office Professional under the Downtown (D) and Downtown Core Overlay (D-O) change Footnote 1 that states, "Uses prohibited along El Paseo facing ground floor frontage" to, "Office professional uses may be allowed subject to Section 25.28.040 El Paseo Overlay District." Klassen, Rachelle From: Sent: To: Cc: Subject: Hi Eric, Hermann, David Tuesday, June 25, 2019 5:58 PM Ceja, Eric Stendell, Ryan; Klassen, Rachelle FW: Retail Spaces on El Paseo (CUP) We received the message below today from a business owner on El Paseo regarding non retail businesses on street level. I am forwarding so that this can be included with other public comments regarding this issue. David David Hermann Public Information Officer Ph:760.776.6411 Direct:760.776.6380 dhermannCacityofpalmdesert.org From: Stephanie Greene [mailto:stephanie@fgcreative.com] Sent: Tuesday, June 25, 2019 5:16 PM To: Information Mail <info@cityofpalmdesert.org> Subject: Fwd: Retail Spaces on El Paseo (CUP) Begin forwarded message: From: <kellywilmafrieda.com> Date: June 25, 2019 at 4:47:06 PM PDT To: elnaseo wfs,creative.com Cc: kreew—wilmatrieda.com Subject: Retail Spaces on El Paseo (CUP) To Whom It May Concern: x 2 =rr-rr rn rnXvm (r,�— rr - •c Z n •• : T o Cn T While I appreciate that they are trying to fill the occupancy on the street, I am not a fan of non retail businesses going in on street level, I also realize that they are proposing it be with office space that "engages" the street. With that said, I still feel that this is not an appropriate change for our street. Eventually it will evolve into a mixed business street rather than the "Rodeo Drive" shopping district of the desert. Currently we have a real estate agent, Fidelity, & an attorneys office on our upper level. We receive far more traffic from Sak's Fifth Avenue customers than we do from these "engaging offices" Fortunately, since all restaurants are placed on the upper level of The Gardens, people do seek us out to dine. But overall all my feeling is to keep this zoned for retail and entertainment type of business to maintain that Grove/Rodeo Dr. shopping destination. We all saw what happened to DT Palm Springs when the mall and other retail went out, and was replaced with an ATT store and some less than desireable tourist gift shops. Spending more time attracting customers through entertainment/retail, such as the Santana Row location in San Jose. (Similar to what we are proposing for San Pablo) - Park areas, places to play chess. In the meantime, Kelly Gray from Grayse has a great idea to support vacant spaces with an annual art installation. With a Desert X type feel - that would generate interest on the street and more foot traffic. I'm sure she would be happy to share this if she has not already done so. Thank you for your consideration. Best regards, Kelly Kelly McFall I Owner Wilma & Frieda's Cafe 73-575 El Paseo I Suite C2310 Palm Desert CA 92260 e: keiMcilwilmafrieda.com c: 949 510 5669 o: 760 773 2807 100 www.wilmafrieda.com Wilma & Frieda's PS 155 S. Palm Canyon Dnve Suite A21 Palm Springs, CA 92262 e: kellvCalwilmafrieda.com c: 949 510 5669 o: 760 992 5080 OLI "7liiil,ll�� Wassen, Rachelle From: Dave L. Baron <baron@sbemp.com> Sent: Wednesday, June 26, 2019 11:48 AM To: weber; cityhall@cityofplamdesert.org Cc: tweiner@leedsandson.com; rstein@leedsandson.com; cstein@leedsandson.com; Joyce@kobaltconsulting.biz Subject: EL PASEO ZONE CHANGE Hello Mayor Weber, and Councilmembers Nestande, Harnik, Jonathan, and Kelly: I, along with Terry Weiner and Riki Stein are the owners of The LEEDS AND SON building located at 73-670 through 73- 680 El Paseo in Palm Desert. I am currently out of town and cannot make the council meeting this week but wanted to give you our thoughts on the zoning change being considered. As a caveat to my comments, I want to thank the city for their efforts regarding the proposed changes to El Paseo. I think they are imaginative and if done correctly can infuse new energy and a pedestrian dynamic to the street that is needed. We also fully support the effort to improve the parking areas behind the stores as well as the establishment of an improvement district to pay for the upkeep and maintenance of those parking lots. I have been advised that there has been ongoing discussions about changing the zoning on El Paseo to allow for certain percentage of commercial and professional office uses to be integrated along with the retail element. In broad terms this is a good solution to the ever changing retail environment that all cities are facing. Clearly, many city downtown areas are being impacted by on line shopping and other fundamental changes that are occurring to the retail landscape. Having professional offices interspersed throughout El Paseo will both reduce vacancies and fill El Paseo with local buyers for the goods and services represented on El Paseo. We think that allowing the market forces to dictate the percentages and mix of El Paseo is the way to go rather than imposing some arbitrary percentage like 20%, although some ceiling on professional office or commercial is probably warranted but at a higher level. But we are more than concerned about the proposal to make one section of El Paseo "commercial" while making another section primarily "retail". I have been advised that there is a proposal to make the "west end" exclusively retail while allowing or "pushing" professional and other non retail to the "east end" of El Paseo. We think this is a horrible idea which picks "winners and losers" on El Paseo. Aside from the obvious legal concerns about increasing property values to the detriment of other property owners similarly situated, this idea is antithetical to the notion of a mixed use and vibrant El Paseo. As our city grows in population and popularity why would the city want to restrict our exclusive shopping area to certain zones? From a retail operator, this makes no sense other than to benefit a few landowners. We want to expand the shopping experience not diminish it. We want a mixed use environment where you can live, work, and shop. Expanding this zone should be the goal, not reducing or restricting it. Imagination the outrage if the proposal was to eliminate retail from the west end in favor of the central retail area surrounding The Gardens, ( which would make a lot more sense from a strictly retail standpoint). But that type of thinking is fallacious and will injure the retail environment on El Paseo forever. El Paseo can transform itself into the vision we all have for the street if allowed to grow and recreate itself from end to end. We are all in this together and should not be attempting to divide and conquer with some owners getting preferential zoning while others are downzoned or otherwise hampered in terms of what they can do with their property. Again, let the market dictate the highest and best use for these properties. We strongly urge council to reject any such effort to create selective retail zones. We have seen the success of other downtowns where market forces (with help from the city) are allowed to create a dynamic and thriving mixed use environment. Palm Springs comes to mind as such an example as does Bend, Oregon and certain districts of Denver. Brand new and dynamic areas are being created in Palm Springs. New shopping and dining areas, and all parts of the downtown are benefiting from that. The same metamorphosis can occur on El Paseo. Market forces throughout the country are dictating changes to downtowns and central shopping areas. The City of Palm Desert is recognizing this dynamic and is moving forward in a positive way to not only meet those challenges but to take advantage of them. Please don't allow small minded thinking to get in the way of a good overall long term plan that can elevate El Paseo into the undisputed exclusive shopping and entertainment destination in the desert. Thank you for your time and consideration. Please forward this email to all members of the council. Dave Baron Sent from my Wad