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HomeMy WebLinkAboutInfo Rprt - Temp Sales of Automobiles in the CitySTAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT DATE: August 23, 2018 PREPARED BY: Eric Ceja, Principal Planner REQUEST: Receive and file an informational report related to temporary sales of automobiles in the City. Recommendation By Minute Motion, receive and file an informational report related to temporary automotive sales events in the City. Background Analysis At the City Council meeting of May 24, 2018, Mayor Jonathan requested that staff review the policy related to the temporary sales of automobiles at the Westfield Palm Desert, and to report findings to the City Council. A report was prepared and submitted to the City Council at their meeting of June 28, 2018. At that meeting, the City Council continued the discussion of temporary automotive sales at Westfield to their August 23, 2018, meeting and directed staff to meet with Westfield Management. Community Development Department staff met with Westfield management on August 3, 2018, to discuss the City Council dialogue of temporary automotive sales at the Westfield site. Westfield management explained that they have historically had automotive sales at the site as a means of generating additional income for the property. In the past, automotive sales have mostly been located in the "back 40" parking areas along Town Center Way; however, this past event was located along Monterey Avenue for increased visibility. Westfield thought the event was a success and that the automotive dealer had better sales since the event was more visible. City staff and Westfield management also discussed aesthetic considerations for the sales events. Westfield and the City are aligned in this concern, as Westfield wants to present the best image possible for shoppers and residents. The Planning Division will scrutinize aesthetics in more detail prior to issuing temporary use permits for events. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A Robert W. Hargreaves Ryan Stendell City Attorney Director of Community Development N/A Janet Moore Director of Finance Lauri Aylaian . City Manager M 1ICE Oc9 Zl'-2olt ;.s�i' �,QQ : Ct,¢pM STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT DATE: June 28, 2018 PREPARED BY: Eric Ceja, Principal Planner REQUEST: Receive and file an informational report related to temporary sales of automobiles in the City. Recommendation By Minute Motion, receive and file an informational report related to temporary automotive sales events in the City. Background Analysis At the City Council meeting of May 24, 2018, Mayor Jonathan requested that staff review the policy related to the temporary sales of automobiles at the Westfield Palm Desert, and to report findings to the City Council. Staff has researched the issue and has found that, in 2003, the City Council approved permitting auto sales in the north "Back 40" parking lot at Westfield Palm Desert between Easter and Thanksgiving. In 2009, the City Council upheld the Director of Community Development's denial of a Temporary Use Permit (TUP) for used car sales at the Westfield Palm Desert along Highway 111; directing staff to ensure the aesthetics of the event were up to Palm Desert standards. Since that time, the Community Development Department has approved temporary events, including automotive sales, at Westfield Palm Desert along Monterey Avenue and Highway 111. Palm Desert Municipal Code (PDMC) Chapter 25.34.080 "Temporary Uses" provides guidance for the allowance of various temporary uses and events, including: • Special Public/Private Events. • Seasonal Sales: Christmas trees, pumpkin patches, etc. • Real Estate Sales Office. • Cultural Promotion Events: educational, civic, etc. • Commercial Promotional Event: outdoor sales and display • Heliports/Helistops. Community Development staff, through the City's TUP process, has permitted temporary sales events for automotive businesses by categorizing the sales event as a "Commercial Promotional Event." This allows automotive dealers from outside the City to apply for a TUP for an outdoor sale for a period of up to 10 days. Several existing businesses, mostly golf cart businesses, also apply for TUPs to display their product outdoors for sales events. Staff reviews each request for safety, display, location, and to maintain adequate vehicular access. June 28, 2018 — Staff Report Temporary Use Permits for Automotive Sales Page 2 of 2 In 2016, the Community Development Department issued eight (8) permits for automotive sales, including permits for recreational vehicle sales. In 2017, staff issued five (5) permits for temporary automotive sales, and, so far, in 2018, five (5) permits have been issued. Location(s) Because of the space requirements needed to display vehicles and maintain vehicle access to surrounding businesses, locations for temporary automotive sale events are limited. In the past, TUPs have been issued for two (2) specific locations: • Westfield Mall: in the parking lot located at the southwest corner of Monterey Avenue and San Gorgonio Way. • Desert Gateway Shopping Center: in the Sam's Club parking lot. TUPs are also issued to existing businesses located in the City; however, their sales event areas are typically limited to areas directly near or in front of their tenant space. Fiscal Analysis Community Development staff has consulted with the Finance Department and based on the sale tax information reported by the permittees, the City received $41,500 in 2016 and $48,155 in 2017 in sales tax. LEGAL REVIEW N/A DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER Robert W. Hargreaves Ryan Stendell City Attorney Director of Community Development 4 Lauri Aylaian et Moore City Manager Director of Finance ATTACHMENTS: 1. PDMC Chapter 25.34.080 Temporary Uses 2. City Council Minutes: April 10, 2003, May 7, 2009 G:\Planning\Eric Ceia\Case Fdes\CC Staff Report (Automotive Sales 2018).00c 6/18/2018 25.34.080 Temporary Uses Palm Desert Municipal Code Up Previous Next Main Search Print No Frames Title 25 ZONING Chapter 25.34 SPECIAL USE PROVISIONS 25.34.080 Temporary Uses A. Purpose. The purpose of this chapter is to permit and regulate uses which by their nature are for temporary periods and are not detrimental to the health, safety, and public welfare of the community. B. Temporary use permit required. Temporary uses listed herein require approval of a temporary use permit by the Director. C. Allowed temporary uses. The temporary uses listed below are permitted with approval of a temporary use permit in compliance with the provisions and limitations listed herein. 1. Carnivals, Circuses, Special Private or Public Events. Any such activity may be permitted for up to seven consecutive days at any one time for a period of ten days in any calendar year. Certification of the safety of rides and all pertinent equipment for the carnivals, circuses, or similar events shall be made by a professional engineer registered in the State of California, with such certification being given to the building department prior to the commencement of use of the equipment. 2. Seasonal Sales. Seasonal sales (e.g., Christmas tree sales, pumpkin sales) may be permitted in any nonresidential zoning district with approval of a temporary use permit for a maximum period of 60 days per seasonal sales location per calendar year. The seasonal merchandise shall not utilize required parking spaces dedicated to other uses. 3. Buildings and Storage Facilities for Construction Projects. Temporary structures or facilities for the housing of tools and equipment or containing supervisory offices in connection with major construction on major construction projects may be established and maintained during the progress of such construction on such projects, provided that such temporary facilities may not be maintained for a period to exceed one year, unless a new permit has been obtained from the zoning administrator. 4. Real Estate Sales Office. One temporary real estate office may be located on any new subdivision in any zone, provided that such office shall be removed at the end of one year, unless a new permit has been obtained from the ZA. Said real estate office to be erected only for use in sale of the subdivision in which it is located. 5. Promotional Event —Cultural. Promotional events of any educational, civic, or cultural nature may be permitted without time restrictions except as fixed in the conditions of approval. 6. Promotional Event —Commercial. Outdoor sales and display of goods, including promotional sales, may be conducted as part of an otherwise lawfully permitted or allowed permanent commercial use, provided that all activities are conducted within the buildable portion of the lot. For new businesses with a valid business license, such outdoor sales and displays of goods, shall be limited to a maximum 30-day period within the first 180 days after that business is established. Existing businesses shall be limited to a maximum of three periods totaling a maximum of 30 days within a given calendar year. Sales and displays may not occupy more than 10 percent of the parking area for that business and shall not substantially alter the existing circulation pattern of the site. Temporary sales and displays shall not obstruct any existing disabled accessible parking space. 7. Heliport and Helistop. Heliports, helicopter fields, and helistops are only permitted as temporary uses with the issuance of a temporary use permit and only in commercial, industrial, and public/institutional zones within the City. D. Similar uses. When a temporary use is not specifically listed in this chapter, the Director shall determine whether the proposed temporary use is similar in nature to permitted uses herein, and, if approved, shall establish the term and make necessary findings and conditions for the particular proposed temporary use. (Ord. 1259 § 1, 2013) View the mobile version. http://qcode.us/codes/palmdesert/ 1/1 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 10, 2003 Councilman Kelly moved to waive further reading and adopt Resolution No. 03-35. Motion was seconded by Spiegel. Councilman Ferguson noted there was a blank on the Resolution itself where a dollar amount was supposed to be included for the Fixed Management Fee. Mr. Gibson noted that at the time the staff report was copied, discussions were still ongoing with Kemper. As of last Friday, they had agreed to the following fees: Management fee of $25,0001month; key positions fee $40,507/month, for a total of $65,507/month or $786,084 annually. Mayor Pro Tem Spiegel moved to waive further reading and adopt Resolution No. 03-35. Motion was seconded by Ferguson and carried by a 5-0 vote. XIII. ORDINANCES For Introduction: A. ORDINANCE NO.1040 -AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AN AMENDMENT TO CHAPTER 19 OF THE PALM DESERT MUNICIPAL CODE, ADDING SECTION 19.01.055 REGARDING DRAINING OF SWIMMING POOLS. Mayor Pro Tem Spiegel moved to waive further reading and pass Ordinance No. 1040 to second reading. Motion was seconded by Kelly and carried by a 5-0 vote. For Adoption: None XIV. NEW BUSINESS A. CONSIDERATION OF TEMPORARY USE PERMITS ALLOWING USED CAR SALES OR OTHER LARGE-SCALE PARKING LOT SPECIAL EVENTS AT WESTFIELD SHOPPINGTOWN PALM DESERT. Mr_ Ortega noted the staff report and recommendation in the packets. Mayor Pro Tern Spiegel said there was nothing in the staff report indicating how this would be promoted, and he wanted to make sure there would not be twinkle lights, balloons, signs up and down E! Paseo, etc. — anything that would be detrimental to the look of the City. Mr. Drell responded that there would only be one sign at the driveway at Plaza Way and another at the driveway on Monterey Avenue. He said it had 12 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 10, 2003 been made clear that this was a trial to see if they can do this, follow the rules, and be a responsible Palm Desert merchant. Upon question by Mayor Benson, he said he did not yet know what the times would be, although he would provide that information to the Council once the application is actually received. MS. NICOLE BOGGS, Westfield Shoppingtown Palm Desert, said the next show planned would be done with Paradise Volkswagen. There would be no Klieg lights, and they had been informed that they needed to end at 9:00 p.m. any bothersome activity such as music, lights, etc. in consideration of neighbors. She said it would basically be held during Mal! hours and perhaps a little beyond that on Friday and Saturday nights. It would also be held in the "north 40" portion of the parking lot rather than on the Highway 111 side. MR. DEE COLEMAN, Corporate Marketing Director for Sky Valley Resorts, 79-480 Calle Sunrisa, La Quinta, reviewed his proposal for a special event parking lot show which he hoped to hold at Westfield Shoppingtown Palm Desert several times per year for approximately ten days each show. Councilman Kelly moved to, by Minute Motion, on a trial, case -by -case basis, approve staff's recommendation for vehicle sales only in the "back 40" parking lot between Ea.,«I ail() i nanksgiving for Westfield Shoppingtown Palm Desert. Motion was seco ded by Crites and carried by a 5-0 vote. B. REQUEST FOR AWARD OF CONTRACT FOR A FEE STUDY OF ALL DEVELOPMENT SERVICES DEPARTMENTS, INCLUDING THE FIRE DEPARTMENT (CONTRACT NO. C21060). Mr. Ortega noted the staff report and recommendation in the packets. Mr. Croy reviewed the staff report and the two options. Councilman Ferguson said he agreed that the City was probably charging way below, but he had a concern with paying for a study that might indicate the City should quadruple its fees and did not like where it was headed and the associated costs. He agreed the City should make sure it is not overcharging people for various permits/fees, although he did not feel that was the case. Mr. Croy stated that staff would return to Council with the options once the study has been completed. Staff was currently working with the Building Industry Association (BIA) and would also be working with the Desert Contractors Group. If the fees should come back significantly higher, he said it was obvious that impact could not be thrown to the industry, and options would be presented to Council such as stepping processes over years. He 13 MINUTES SPECIAL PALM DESERT CITY COUNCIL MEETING MAY 7, 2009 XIV. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR CITY ATTORNEY AND REDEVELOPMENT AGENCY COUNSEL SERVICES (CONTRACT NO. C28880). Councilman Ferguson moved to, by Minute Motion: 1) Approve the RFP for City Attorney and Redevelopment Agency Counsel Services; 2) establish a Legal Services Selection Committee to review, interview, and recommend the successful firm(s) or candidate(s) to the City Council/Redevelopment Agency Board, pursuant to the established schedule; 3) designate one Councilmember and two Citizen/Committee Members to serve on the Legal Services Selection Committee, along with the Mayor and City Manager. Motion was seconded by Finerty and carried by a 5-0 vote. Mayor Pro Tem Finerty suggested Councilman Ferguson be designated to serve on the Committee. Councilman Ferguson respectfully declined and requested that the City Manager return with a proposed way of moving forward on this RFP. Councilman Kelly stated it was a serious Committee, and if someone couldn't attend for whatever reason, the Committee should have a Councilmember for an alternate. Mayor Spiegel stated at the next City Council meeting, the City Manager should return with his recommendations for the members of the Committee. With City Council concurrence, City Manager directed to return at the next meeting with a proposal for composition of the Selection Committee and remainder of the RFP process. B. CONSIDERATION OF UPHOLDING THE DIRECTOR OF COMMUNITY DEVELOPMENT'S DENIAL OF A TEMPORARY USE PERMIT FOR TOYOTA OF THE DESERT AUTO SALE IN THE HIGHWAY 111 PARKING LOT AT WESTFIELD SHOPPING CENTER LOCATED AT 72-840 HIGHWAY 111 Case No. TUP 09-179 (Toyota of the Desert, Applicant). Assistant Planner Kevin Swartz stated that an April 10, 2003, the City Council approved permitting auto sales at Westfield Mall in the north "back 40" parking lot between Easter and Thanksgiving. Today the Applicant was requesting an auto sale located at the south parking lot facing Highway 111 on May 14 through May 17. Staff was not recommending denial of this auto sale at Westfield, but that it should take place in the north "back 40" parking lot. Past auto sales had taken place in the "back 40" parking lot by the Red Carpet Car Wash and Good Year Tire. The Applicant was appealing the 16 MINUTES SPECIAL PALM DESERT CITY COUNCIL MEETING MAY 7, 2009 decision and staff was recommending that the City Council uphold the decision of the Planning Director to relocate the auto sale to the north "back 40" parking lot. He offered to answer questions. Mayor Spiegel stated that this past weekend used cars were being sold at Walmart, and he didn't know who gave approval, but assumed someone did. It seemed as if the City had a double standard, stating that almost anything could be done in the north sphere, but not in the middle of the City. He questioned if that was the right standard to have. Ms. Aylaian stated auto sales were handled with a Temporary Use Permit (TUP) that gave staff an opportunity to review the proposed use and determine if that particular area was right for the neighborhood, setting, and consistent with the goals of the City and Zoning Ordinance. In the past, Westfield Shopping Mall was considered sacred for any type of use that could potentially take it down market or detract from the appearance. At the City Council's direction, staff prohibited auto sales between Thanksgiving and Easter because the parking lot received more parking usage than Sam's Club or Walmart. When people apply for a TUP, staff considers the location where the Application is made, reviews and determines what reasonable restrictions should be placed. The auto sale approved at Sam's Club and Walmart complied with the restrictions that were appropriate for that zone. If the City Council wished to establish a policy and redirect staff to allow auto sales at Westfield on Highway 111, staff could accommodate that request. Further responding, she clarified there were no auto sales allowed at Westfield at the direction of City Council between Thanksgiving and Easter, and they weren't permitted in the north "back a 40" parking lot the rest of the year. Councilman Ferguson couldn't recall it being a City Council direction. He asked if there were past parking lot accounts that showed that this event would be a problem or cause any health and safety concern other than an unnamed policy from some time ago. Ms. Alyaian replied that there wasn't MR. BRENT WISE, Manager of Westfield Mall, stated location would be key to this event, and they anticipated 75 to 100 vehicles to be sold. He believed he had proven he could manage a car sale with the Recreational Vehicle (RV) sale, which was done nicely. He would manage this auto sale personally and monitor it for four days. He said the volume of sales would be much more dramatic than what it was with the RV's, and all the sales tax would return to the City. He recommended approval of this request. Responding to question, he said past auto sales generated more than 100 vehicles being sold, but again, location would be key. 17 MINUTES SPECIAL PALM DESERT CITY COUNCIL MEETING MAY 7, 2009 Mayor Pro Tem Finerty asked if the vehicles would only be Toyota's. MR. JAKE MONNIER, Customer Public Relations Manager with Toyota of the Desert, stated the event was a used car sale that included other brands like Honda, Acura, Chevy, Cadillac, and others. He said the vehicles will be tasteful, in good condition, and will meet Department of Transportation (DOT) standards, and they wouldn't be selling $500 cars. Responding to question about the year of the vehicles, he said because of today's financing requirements, most vehicles will be 2003 and newer models, with a few under $5,000 in the1999 to 2000 year range. Further responding, he said they anticipated selling 75 vehicles, and the average sale price would be $15,000; sales tax for one vehicle averaged about $1,500. Councilmember Benson stated that when auto sales were first allowed at Westfield, they were put in the "back 40" parking lot and everyone was happy with that arrangement. She said to have the event on Highway 111 would deteriorate the appearance of Highway 111. However, she had no objections to the event taking place in the rear of the mall and believed people will find it because of all the hype; she was confident the event would still be successful. Mayor Pro Tem Finerty asked what was the average sales tax from previous events at Westfield Mall. MR. MONNIER replied two different types of sales were being compared, because RV's ranged from $50,000 to $100,000. MR. WISE stated the last auto sale was before his time, and the last sale at Westfield was for RV's, which was totally different. He said that based on his history and experience, location was key to the success of the event. Councilman Ferguson asked if Council allowed the Applicant to hold the event off Highway 111, what type of signage would be provided. MR. MONNIER responded their signage was a standard 10-foot banner that said "Toyota of the Desert," which was their license -plate bracket. He said they were conservative and wouldn't put up anything radical. MR. WISE stated that when the City approved the RV show on Highway 111, they had an RV out by Highway 111 with a banner, which was tasteful and appropriately done. He will include in the contract that he will have full control over the signage to ensure it is tasteful, without balloons, and private property was not encroached upon. Further responding, he agreed to not have sign twirlers. He will be available 24/7 on the property, and if the City saw something they didn't like, they could call him, and he will have it removed immediately. 18 MINUTES SPECIAL PALM DESERT CITY COUNCIL MEETING MAY 7, 2009 Councilman Kelly stated this event would take place during the shoulder season and when Council last prohibited events on Highway 111, it was a different time. He said Council was trying to balance the budget, and this was a good opportunity to see how it ran. Councilman Kelly moved to, by Minute Motion, approved the subject TUP for an auto sale in the Highway 111 Parking Lot of Westfield Shopping Center May 14-17, 2009, subject to strict control of all aesthetics. Motion was seconded by Ferguson. NO. Councilman Ferguson stated he didn't like doing anything just because it was done before; he liked some rhyme or reason, but in this case, there was an absence of it. He said because it was shoulder season, he would like to give the event a chance as long as the City had control of the aesthetics. In addition, the City would receive sales tax from the auto sale and perhaps pull people into the mall to help some of those struggling tenants. Responding to question, MR. MONNIER said the sale will run from 8:00 a.m. to 8:00 p.m. Mayor Spiegel called for the vote, and it carried on a 4-1 vote, with Benson voting Mayor Spiegel asked that staff review whether or not Council should be advised prior to any major sale/car event for the north sphere, Highway 111, Highway 74, or anywhere in the City; he also wanted to know what type of sale it will be because motor home sales had been approved in the past. C. REQUEST FOR APPROVAL OF CONTRACT WITH DIEHL, EVANS & COMPANY, LLP, TO PERFORM AUDITING SERVICES FOR THE CITY OF PALM DESERT, REDEVELOPMENT AGENCY, AND THE PALM DESERT RECREATIONAL FACILITIES CORPORATION FOR THE FISCAL YEAR ENDING JUNE 30, 2009, AND THE TRANSIENT OCCUPANCY TAX AUDIT OF THREE HOTELS FOR CALENDAR YEAR 2008. Councilman Kelly moved to, by Minute Motion: 1) Approve the subject contract with Diehl, Evans & Company, LLP, to perform auditing services for the City of Palm Desert, Redevelopment Agency, and the Palm Desert Recreational Facilities Corporation for the Fiscal Year Ending June 30, 2009 (Contract No. C27541); 2) authorize performing the Transient Occupancy Tax Audit on three hotels for calendar year 2008 (Contract No. C27541A). Motion was seconded by Finerty and carried by a 5-0 vote. 19 To: CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT CITY COUNCIL CONSENT CALENDAR Honorable Mayor and Members of the City Council Lauri Aylaian, City Manager Robert Hargreaves, City Attorney From: Eric Ceja, Principal Planner Date: June 28, 2018 Subject: Consent Calendar Item 0 - Temporary Sales of Automobiles Community Development staff prepared a report related to Temporary Use Permits for automobile sales events in the City. In the first paragraph of the report, staff states that: "In 2009, the City Council upheld the Director of Community Development's denial of a Temporary Use Permit (TUP) for used car sales at the Westfield Palm Desert along Highway 111; directing staff to ensure the aesthetics of the event were up to Palm Desert standards." After reviewing the minutes of that meeting, staff found that the City Council overturned the denial of the TUP and approved the TUP for automobile sales event, subject to strict control of the aesthetics. The City Council specifically noted the economic conditions of 2009 as a reason to approve the TUP at that time. ERIC CEJ /ec INCIPAL PLANNER