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Ordinance 1287 - Resolution 2015-59 - Development Agreement - Percise Plan - Conditional Use Permit 15-87 - El Paseo Hotel LLC
Ordinance No.1287 Resolution No. 2015-59 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: CONSIDERATION OF AN ADDENDUM TO A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AND AMENDMENTS TO THE APPROVED PRECISE PLAN, CONDITIONAL USE PERMIT, AND DEVELOPMENT AGREEMENT FOR A THREE-STORY, 152-ROOM BOUTIQUE HOTEL DEVELOPMENT LOCATED AT THE NORTHEAST CORNER OF LARKSPUR LANE AND SHADOW MOUNTAIN DRIVE SUBMITTED BY: Eric Ceja, Associate Planner APPLICANTS: El Paseo Hotel, LLC 3941 Park Drive El Dorado Hills, CA 95702 CASE NOS: DA/PP/CUP 15-87 DATE: June 18, 2015 ATTACHMENTS: 1. Draft Ordinance No. 1287 2. Draft Resolution No. 2015-59 3. Legal Notice 4. Development Agreement 5. Hotel Plans and Exhibits 6. Applicant's Statement Addressing Hotel Changes 7. Architectural Review Commission (ARC) Notice of Action 8. Addendum to the approved Mitigated Negative Declaration Recommendation 1. Waive further reading and pass to second reading City Council Ordinance No. 1287 approving Development Agreement 15-87, for amendments to Development Agreement 07-02. 2. Waive further reading and adopt City Council Resolution No. 2015-59 approving Precise Plan 15-87, Conditional Use Permit 15-87, and an Addendum to the Mitigated Negative Declaration, for amendments to Precise Plan 07-11 and Conditional Use Permit 07-14, for a four -star, 152-room, three-story hotel development. Staff Report Case No. DA/PP/CUP 15-087 Page 2 of 12 June 18, 2015 Architectural Review Commission The City's Architectural Review Commission reviewed the proposed modifications to the hotel's architecture and site layout at their meeting on April 14, 2015. At that meeting the applicant presented plans for a four-story hotel, arranged in an "L" shape, with a maximum height of 46 feet with architectural projections at 54 feet. The Commission discussed the proposed hotel changes at four stories and residents living close to the site provided feedback to the Commission. The Commission continued the hotel after directing the applicant to provide additional relief to the south and north building elevations, and to review the terrace and columns on the south elevation. After hearing public input at the meeting, the Applicant voluntarily removed the four-story hotel portion, rearranged the hotel in to a "U" shape and brought the hotel height back in line with the originally approved maximum height limit approved in the Development Agreement. On May 25, 2015, the Commission reviewed the revised hotel plans, which included additional architectural details on the north and south building elevations, and maintained the distinctive angled roofline at the building's main entry and the porte cochere. The Commission voted 7-0-0-1, with one (1) commissioner absent, in recommending approval of the hotel's architecture and landscape. Planning Commission The City's Planning Commission held a public hearing to consider the proposed amendments to the Precise Plan, Conditional Use Permit and Development Agreement applications and the Addendum to the Mitigated Negative Declaration at their meeting on June 16, 2015. At the time of printing of this report the Planning Commission has not taken action on the proposal and staff will provide an update of the Planning Commission decision at the City Council public hearing. Executive Summary In 2008, the City Council approved a Precise Plan and Conditional Use Permit for a three- story, 154-room condo -hotel development at the northeast corner of Larkspur Lane and Shadow Mountain Drive. A Development Agreement was also approved for additional project requirements including that: the hotel be built to U.S. Green Building Council (USGBC) LEED Silver standards; the hotel operate as a four -star boutique hotel; and the 48-room condominium portion of the hotel be required to participate in payment of Transient Occupancy Tax (TOT) to the City. The applicant is proposing amendments to the previously approved hotel development with the following modifications: • Eliminate all condominium rooms and replace them with hotel rooms • Eliminate the rooftop bar and pool area and place them at ground level • Reduce the total hotel room count from 154 rooms to 152 rooms • Reduce the total number of parking stalls from 203 to 158 • Reduce the building massing and footprint by nearly 40 percent GAPlanning\Enc Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Council\CC - Paseo Hotel Staff Report.doc Staff Report Case No. DA/PP/CUP 15-087 Page 3 of 12 June 18, 2015 • Reduce the building from 114,000 square feet to 98,000 square feet • Increase perimeter building setbacks along all property lines • Create a new landscape buffer on the north, south, and east property lines • Redesign the vehicle circulation pattern to reduce vehicle use and dependence on surrounding public streets • Change the architectural style from Moroccan village to desert contemporary with mid-century elements. The overall development of the hotel conforms to the previously approved development standards for the site including all perimeter building setbacks and maximum building height limitations. The modifications to the hotel plan create greater building setbacks along Shadow Mountain Drive and Larkspur Lane for additional landscape. Vehicle circulation at the site has also been modified to reduce vehicle trips along Larkspur Lane and Shadow Mountain Drive. Background A. Property Description: The property site, located at the northeast corner of Larkspur Lane and Shadow Mountain Drive, consists of two (2) vacant parcels totaling 2.1 acres. The smaller triangular shaped parcel (APN 627-262-008) along the northern portion of the site totals 3,848 square feet and is zoned General Commercial (C-1). The larger parcel (APN 627- 262-011) is rectangular shaped and totals 87,991 square feet and is zoned Residential — Multiple Family (R-3). Combined both parcels total 91,473 square feet and both parcels are undeveloped. The site also slopes 11 feet from its high point on Shadow Mountain Drive to the northern property line. B. General Plan and Zoning: Zoning Designations: • APN 627-262-008: General Commercial (C-1) • APN 627-262-011: Residential Multiple Family (R-3) General Plan Land Use Designations: • APN 627-262-008: Community Commercial (C-C) • APN 627-262-011: Medium Density Residential 4-10 du/acre (R-M) C. Adjacent Zoning and Land Use: North: General Commercial (C-1) — Commercial center and parking lot South: Residential Multi -Family (R-3) — Two- and one-story apartments GAPlanning\Eric Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Council= - Paseo Hotel Staff Report.doc Staff Report Case No. DA/PP/CUP 15-087 Page 4 of 12 June 18, 2015 East: Residential Multi -Family (R-3) — Single -story condominiums West: General Commercial (C-1) — The Gardens on El Paseo D. Palm Desert Commercial Core Area Specific Plan: On July 23, 1987, the City Council and Redevelopment Agency (RDA) adopted the Palm Desert Commercial Core Area Specific Plan. The overall goal of the specific plan's policies is to promote high quality compatible economic growth. The specific plan also states that the City will take an active role in the promotion of a project when it will result in substantial economic benefits for the City, general business community or will otherwise implement community goals. The proposed hotel site is within the Specific Plan boundaries and compatibility with the plan as discussed in this report. Project Description The applicant is requesting approval of amendments to the approved Precise Plan (PP 07- 11), Conditional Use Permit (CUP 07-14), and Development Agreement (DA 07-02) for modifications to the approved El Paseo/Larkspur hotel design and site plan. The proposed hotel consists of 152 rooms, one level of underground parking with 150 parking stalls, eight (8) surface level parking stalls, conference and meeting rooms, kitchen, fitness center, day spa, a 3,200-square-foot restaurant, a small market, outdoor swimming pool and pool cabanas. A. Site Plan The project is located on the northeast corner of Larkspur Lane and Shadow Mountain Drive with frontage along both public streets. The proposed hotel is configured in a "U" shape with the majority of the building fronting Larkspur Lane with building extensions along the north and south property lines. The proposed modifications to the hotel reduce the building footprint by approximately 50 percent, allowing for greater perimeter landscape areas and greater building separation from adjoining land uses. The building setbacks are described below: Building Setbacks from Property Line (F.T.) Approved Setback Proposed Setback Larkspur Lane 15' 54'4" Larkspur Lane to Porte Cochere - 25' Shadow Mountain Drive 10, 22'9" East Property Line 10, 10, North Property Line 10, 25' New landscape, a 10-foot wide sidewalk, and perimeterwalls nearthe southwest corner of the site are provided along Larkspur Lane, and three (3) driveways provide access to GAPlanning\Eric Ceja\Case Files\PP\PP 15-0887 Larkspur Hotel\City Council\CC - Paseo Hotel Staff Report.doc Staff Report Case No. DA/PP/CUP 15-087 Page 4 of 12 June 18, 2015 East: Residential Multi -Family (R-3) — Single -story condominiums West: General Commercial (C-1) — The Gardens on El Paseo D. Palm Desert Commercial Core Area Specific Plan: On July 23, 1987, the City Council and Redevelopment Agency (RDA) adopted the Palm Desert Commercial Core Area Specific Plan. The overall goal of the specific plan's policies is to promote high quality compatible economic growth. The specific plan also states that the City will take an active role in the promotion of a project when it will result in substantial economic benefits for the City, general business community or will otherwise implement community goals. The proposed hotel site is within the Specific Plan boundaries and compatibility with the plan as discussed in this report. Proiect Description The applicant is requesting approval of amendments to the approved Precise Plan (PP 07- 11), Conditional Use Permit (CUP 07-14), and Development Agreement (DA 07-02) for modifications to the approved El Paseo/Larkspur hotel design and site plan. The proposed hotel consists of 152 rooms, one level of underground parking with 150 parking stalls, eight (8) surface level parking stalls, conference and meeting rooms, kitchen, fitness center, day spa, a 3,200-square-foot restaurant, a small market, outdoor swimming pool and pool cabanas. A. Site Plan The project is located on the northeast corner of Larkspur Lane and Shadow Mountain Drive with frontage along both public streets. The proposed hotel is configured in a "U" shape with the majority of the building fronting Larkspur Lane with building extensions along the north and south property lines. The proposed modifications to the hotel reduce the building footprint by approximately 50 percent, allowing for greater perimeter landscape areas and greater building separation from adjoining land uses. The building setbacks are described below: Building Setbacks from Property Line F.T. Approved Setback Proposed Setback Larks iWMnHe Larkspur Lane to Porte Cochere - 25' Sti"aM"'infain �ri"e" East Prope2 Line 10, 10, NOnMeropertymun New landscape, a 10-foot wide sidewalk, and perimeterwalls nearthe southwest comer of the site are provided along Larkspur Lane, and three (3) driveways provide access to G \Pianrnng\Enc Ceta\Case Fdes\PP\PP 150887 LanasDur Hotel\Gty CouncACC Paseo Hotel Staff ReDort.00c Staff Report Case No. DA/PP/CUP 15-087 Page 5 of 12 June 18, 2015 the hotel along Larkspur Lane. One (1) driveway, located near the northern property line, provides full access directly to the underground parking garage. The two (2) other driveways, located at the center of the site, provide limited access directly to the hotel's main entry and lobby. Complimentary valet service is provided by the hotel for all guests. Eight (8) surface parking stalls are also provided at the southwest corner of the site for guest parking. The frontage along Shadow Mountain Drive will consist of new landscape, an 8-foot wide sidewalk, and perimeter walls. No driveways for vehicle access are proposed along Shadow Mountain Drive. An eight- (8) foot high block wall will be constructed along the eastern property line and a six- (6) foot high block wall will be constructed along the northern property line. Site amenities are located within the eastern portion of the property and include an outdoor swimming pool and spa, pool deck, pool cabanas, and outdoor seating areas. Recreation and outdoor gathering space is predominately located in this portion of the site. B. Building Description The boutique hotel is three stories in height and is "U" shaped around an outdoor courtyard and swimming area. The first floor of the hotel consists of 24 hotel rooms, a lobby and business center, restaurant, conference and meeting rooms, a day spa, and fitness room. The second and third story of the hotel consists solely of hotel rooms; with 64 rooms located on each floor. Hotel rooms consist of a mix of rooms with double queen sized beds, single king size beds, and 10 suites that include a kitchenette. C. Architecture The project is designed as a three-story hotel with a main building height of 37 feet and a maximum building height of 42 feet for architectural projections. The building's architecture can be described as modern contemporary with strong geometric forms and patterns that continue along all building elevations. The design includes building offsets for horizontal movement, vertical limestone columns and other limestone elements along the ground floor of the building, and a dramatic angled porte cochere that mimics the angle and design of the entry structure. Windows or a sliding glass door and balcony are provided for the hotel rooms. D. Landscape Landscape will be installed along the project perimeter, outdoor pool area, and planters along the building entry. The landscape palette includes plant species native to the desert, including: Agaves, Yuccas, Deer Grass, Desert Spoons, Mexican Honeysuckles, Lantanas, Yellow Bells, and Texas Rangers. Other plant species G 1PianningtEnc CelatCase Rles\PP\PP 15-0887 Larkspur Hoteh0ty CouncACC - Paseo Hotel Staff Report doc Staff Report Case No. DA/PP/CUP 15-087 Page 6 of 12 June 18, 2015 include: Bougainvilleas, Dwarf Myrtles, Citrus trees, Date Palms and Mexican Fan Palms. The southern and western landscape areas along Larkspur Lane and Shadow Mountain Drive contain a combination of plant materials arranged in a formal design pattern intermixed with Date Palm trees that line the project perimeter. The design also includes cobble stones and decomposed granite for ground cover. Eucalyptus trees are used to screen views from hotel rooms facing north from the service and utility area of the hotel, and views from rooms facing south from residential properties across Shadow Mountain Drive. Texas Ebony trees are planted along the eastern property line adjacent to the pool area to screen hotel room views rooms from looking into residential properties to the east. The pool area landscaping will consist of a mix of shrubs and citrus trees around guest seating areas and artificial grass for active use areas. E. Development Agreement A Development Agreement (DA) was approved as part of the originally approved hotel development. Due to changes in the hotel operations, specifically the removal of the condominium units, an amendment to the Development Agreement is required. The proposed amendment removes all language related to condominium units as part of the development and that the term of the agreement be extended another two (2) years from the originally approved ten (10) year term. Other provisions contained in the DA remain the same, including that the hotel maintain a four -star rating, that certain development standards related to the maximum building height and total number of rooms at the hotel may exceed the standards in the Zoning Ordinance, that the project be built to U.S. Green Building Council LEED Silver standards, and that the hotel operate as a "Cooling Center" in the event of a City-wide power outage. Analysis A. Site Plan Changes Development Standards In 2008, the City Council approved a Development Agreement to allow exceptions to the maximum building height for the hotel development. The proposed modifications to the hotel design maintain the originally approved maximum building height of thirty-seven (37) feet with architectural projections allowed to a maximum building height of forty-two (42) feet. Since the proposed modifications maintain the previously approved exception to the maximum height limit, no new exceptions to this standard are proposed. In addition, the reduction in the building's massing and footprint, and increases in perimeter building setbacks, will have less of an impact on surrounding views and allow for better views around the building. G\Planning\Enc Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Council= - Paseo Hotel Staff Report.doc Staff Report Case No. DA/PP/CUP 15-087 Page 7 of 12 June 18, 2015 The property slopes down 11 feet from Shadow Mountain Drive to the north property line adjacent to the commercial parking lot. Building heights are measured from the average finished grade of the property, which for this site is 247 feet above mean sea level (msl). The slope at the property provides an opportunity for a taller building closer to El Paseo without negatively impacting the residential properties to the south. This approach was applied to the approval of The Gardens at El Paseo, which measured between 31 feet and 38 feet from Shadow Mountain Drive, with an overall building height between 38 feet and 44 feet above the average finished grade. As measured from Shadow Mountain Drive, the hotel is 33 feet in height with a maximum building height of 37 feet. The hotel's proposed building height will be less than The Gardens on El Paseo's overall building height and will not adversely impact surrounding properties. Room and Parking Changes The reduction in room count from 106 hotel rooms and 48 condominium units (154 total rooms) to 152 hotel rooms results in beneficial changes to the operations of the site. The changes allow the site to function solely as a hotel, without the added complications and restrictions that the condominium units entailed. The room changes also allow for a reduction in the total parking required to support the two uses. The previously approved condo -hotel project required a combined parking ratio of 1.3 parking stalls per hotel or condominium room; for a total of 203 parking stalls. Since the original approval the City has reduced parking ratios for a number of uses, including hotels. Today's parking requirement for hotels is one (1) parking stall per hotel room. For this hotel a total of 152 parking stalls is required. The applicant is proposing 158 parking stalls, which exceeds the parking requirements by six (6) stalls. Staff supports the additional parking stalls for the additional uses at the hotel as the proposed number of stalls is not excessive. In addition, all hotel guests are subject to valet parking, which increases parking efficiency and utilization of the parking stalls provided at the hotel site. The reduction in the total number of provided parking stalls from 203 parking stalls to 158 parking stalls results in eliminating an entire story of the previously approved two-story parking garage, and requires less building material, and lessens the impact and intensity of the previously approved parking garage configuration. Amenities The previously approved hotel contained a rooftop bar and pool area. The modifications to the hotel remove all rooftop amenities and access, and place the pool at ground level near the southeast corner of the site. The bar is relocated to the interior of the hotel lobby. Previously identified impacts related to rooftop noise have been greatly reduced to surrounding properties. The hotel operator will also be responsible for unruly guest as it is in their best interest to regulate and control any potential problems to other guests. With relocation of the pool to ground level, staff is recommending a condition that the applicant install tree plantings and an eight- (8) foot high block wall to screen views and limit noise G \Planning\Enc Ceta\Case ResTRPP 150887 Larkspur Hotel\City Council\CC - Paseo Hotel Staff Report.doc Staff Report Case No. DA/PP/CUP 15-087 Page 8 of 12 June 18, 2015 impacts on properties to the east. B. Land Use Compatibility Surrounding properties are developed with a mix of residential and commercial uses. Existing single- and two-story apartment units exist south of the property along Shadow Mountain Drive. These properties are located at a higher grade than the grade of the hotel site. Although the hotel site is at a lower grade than properties to the south, development of the site will impact views to the north. However, the proposed hotel modifications reduced this impact by increasing the perimeter building setback from 20 feet to 32 feet, and reducing the hotel floor area by 14 percent along Shadow Mountain Drive. The reduction in floor area allows views around the building and lessens visual intrusion of the building on surrounding properties. To the east, fronting onto San Luis Rey Avenue and Shadow Mountain Drive, a single -story condominium development exists. The condominium development contains 90+ feet of open space between the hotel site and the nearest condominium unit. The previously approved hotel contained a 10-foot setback along this eastern property line that stepped back so that the third floor of the hotel was 140 feet from the closest condominium unit. The proposed modifications to the hotel maintain the 10-foot setback from the eastern property line. Existing landscaping at the condominium site and new landscape at the hotel site will help screen views and impacts to the surrounding condominium development, and unlike the approved hotel, the modified hotel portions closest to the eastern property line have no room windows or balconies facing east. In addition, the modifications to the hotel have reduced the hotel floor area fronting the eastern property line by over 50 percent. With the proposed "U" shape of the hotel development, the majority of the building is set back 70+ feet from the eastern property line and over 160+ feet to the nearest condominium unit. Development of the site will impact views to the west; however, the proposed modifications to the hotel, including the reduced building footprint and building massing along the eastern property line, have greatly reduced potentially negative impacts related to views and visual intrusion on properties to the east. The proposed hotel is compatible with commercial properties to the north and west. Similar building height and massing have been approved for The Gardens at El Paseo and the hotel is in scale with commercial buildings to the north. New landscape along the north and west property lines will also soften the visual impact of the hotel from these properties. As proposed, a series of vertical plantings, consisting of Eucalyptus and Date Palm Trees will provide vertical integration between the landscape and hotel height. Smaller tree and shrub plantings will add interest and create a better connection between the hotel and pedestrian activity along Larkspur Lane. GAPlanning\Enc Ceja\Case Files\PP\PP 15-0887 Larkspur Hotel\City Council\CC - Paseo Hotel Staff Report.doc Staff Report Case No. DA/PP/CUP 15-087 Page 9 of 12 June 18, 2015 C. Circulation The previously approved hotel plan contained four (4) driveways along Larkspur Lane and one (1) driveway along Shadow Mountain Drive. The four (4) driveways along Larkspur Lane required hotel guests and valet services to exit the site onto Larkspur Lane to access other driveways at the hotel. This design generated additional trips and traffic along Larkspur Lane. The driveway access along Shadow Mountain Drive also created additional vehicle trips into the residential area surrounding the hotel site. The modifications to the hotel design and site plan eliminate the driveway along Shadow Mountain Drive thereby reducing traffic and trip generation along Shadow Mountain Drive. The modifications to the driveway configuration along Larkspur Lane allow guests and valet services to retain vehicle trips on the hotel site rather than Larkspur Lane. The new configuration includes drive -aisles connecting the porte cochere to the underground parking garage, which reduces the need to access Larkspur Lane for drop-off and pick-up of hotel guests. The previously prepared traffic study indicated that the approved driveway configuration and traffic impacts complied with the City's General Plan policy for an acceptable Level of Service (LOS) "C" on surrounding streets. Staff believes that the new configuration will generate less traffic on Larkspur Lane and Shadow Mountain Drive and that there are no negative traffic impacts from the proposed modifications to the hotel. Staff also believes that the modifications to the driveway configuration will reduce traffic impacts and trip generation onto surrounding streets from the previously approved hotel design. D. Commercial Core Area Specific Plan El Paseo is listed as a project area in the Commercial Core Area Specific Plan and is identified as "unique throughout the Coachella Valley as an outdoor urban specialty retail/restaurant boulevard designed on a scale appropriate for pedestrians." The plan also states that El Paseo's ability to successfully compete with new planned commercial developments will depend on its continued uniqueness. Four key points are identified in the specific plan, which are essential to a successful pedestrian environment. Two points are directly related to new construction. One point states that "dead zones" created by vacant lots should be eliminated because they do not attract pedestrian traffic. The second point states that strategic location of "anchor attractions" to draw and sustain pedestrian interest along the entire length of the street is essential to El Paseo's success. The proposed hotel complies with the goals and policies of the Specific Plan in that: the hotel eliminates a "dead zone" as it will develop a larger vacant parcel within the shopping district; that the hotel's architecture and scale maintains and adds to the uniqueness of the El Paseo shopping district; that the hotel will contribute to the City's General Fund through payment of Transient Oriented Tax (TOT); and that the hotel will function as an anchor attraction that adds to pedestrian interest and generates positive spill over impacts to surrounding businesses. GAPlanningTric Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Council\CC - Paseo Hotel Staff Report.doc Staff Report Case No. DA/PP/CUP 15-087 Page 10 of 12 June 18, 2015 Environmental Review For the purposes of CEQA, the Director of Community Development has determined that the proposed modifications to the project will not result in any new significant negative impacts not previously evaluated in the approved Mitigated Negative Declaration and an Addendum to the Mitigated Negative Declaration has been prepared and can be adopted. Conclusion Staff supports the proposed modifications to the El Paseo/Larkspur Hotel development. The modifications allow for a much better hotel design and architectural style that contributes positively to the uniqueness of the El Paseo shopping district and to the City as a whole. The modifications reduce impacts to surrounding streets by eliminating driveways along Shadow Mountain Drive and maintaining vehicle circulation within the site rather than on Larkspur Lane. The building massing and building footprint have been significantly reduced, allowing for better integration of the hotel with surrounding commercial and residential properties. Greater building setbacks and new landscape areas also reduce the visual impacts of the hotel on surrounding streets and properties. Overall, the modifications to the hotel comply with the approved development standards established in the Development Agreement and the hotel development complies with the City's General Plan and Commercial Core Area Specific Plan. Findings of Approval 1. That the proposed location of the conditional use is in accordance with the objectives of this title and the purpose of the district in which the site is located. The project is located on two vacant parcels that are zoned General Commercial (C-1) and Residential Multi -Family (R-3). Both zoning districts allow hotel development subject to approval of a conditional use permit. The purpose of the C-1 zone is to provide the City with a principal core area of specialty and general commercial shopping facilities to serve the needs of a resort community and city residents. The hotels proximity to the El Paseo Shopping District and Highway 111 corridor will enhance the viability of nearby commercial uses and will support the community at large. The hotel design and operations, with approval of a Conditional Use Permit, is in accordance with the objectives of the C-1 zone. The purpose of the R-3 zoning district is to provide suitable areas for residents to live in a variety of housing types at high population densities consistent with sound standards of public health and safety. Historically, the R-3 properties south of El Paseo, between Highway 74 and Deep Canyon Drive, have been a transitional land use area between the City's commercial core (Highway 111 and El Paseo) and south Palm Desert's single-family neighborhood. These properties consist of hotels, apartments, condominiums, medical and general office, and retail uses. The zone allows hotel development with a Conditional Use Permit as a transitional land use between the City's commercial core and single-family neighborhoods; therefore, the proposed project is in accordance with the objectives of the R- GAPlanning\Enc Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Council= - Paseo Hotel Staff Report.doc Staff Report Case No. DA/PP/CUP 15-087 Page 11 of 12 June 18, 2015 3 zoning district. 2. That the proposed location of the conditional use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety, or welfare, or be materially injurious to properties or improvements in the vicinity. The proposed hotel use is consistent with the intent of the City's Zoning Ordinance as described above. The project has been conditioned to address public health and safety and will require additional permits from the County Health Department and other public agencies. In addition, the hotel's design and improvements have been reviewed by the City's Planning Department, Building and Safety Department, Fire Department, and Public Works Department for consistency with the General Plan and emergency services. The project has also been conditioned to limit noise and traffic impacts on surrounding properties, therefore, the project will not be detrimental to the public interest, health, safety, welfare and will not be materially injurious to properties or improvements in the vicinity. An Initial Study and Mitigated Negative Declaration were prepared and adopted by the City Council in 2008 for the original design of the hotel development. An Addendum to the Mitigated Negative Declaration was prepared to analyze the project modifications. The Addendum demonstrates that the environmental analysis, impacts, and mitigation required by the original hotel design remain substantively unchanged by the hotel modifications. The Addendum supports findings that the project modifications do not result in any new impacts and do not exceed the level of impacts identified in the approved Mitigated Negative Declaration. The Addendum also concludes that none of the conditions that would require preparation of a new environmental analysis are present at the site. 3. That the proposed conditional use will comply with each of the applicable provisions of this title, except for approved variance or adjustments. The proposed hotel use is consistent with the intent of the Zoning Ordinance and will comply with the General Commercial (C-1) and Residential Multi -Family (R-3) zones. Conditions have been added to the project to ensure that all the minimum requirements of the Palm Desert Municipal Code are met. The City Council has approved exceptions to the City's maximum hotel room density, maximum building height, and setbacks standards, for this property and the modifications are consistent with the approved exceptions. 4. That the proposed conditional use complies with the goals, objectives, and policies of the city's general plan. The project is consistent with the goals and objectives of the City's General Plan, Commercial Core Area Specific Plan, and the City's Sustainability Plan. The hotel development will provide a mix of land uses meeting the general social and economic needs of the community, develops a vacant in -fill lot surrounding by existing development, and provides a revenue -generating land use that supports existing commercial services and supports the City's employment base. The hotel development is compatible with surrounding development and enhances the character and viability of El Paseo and Highway 111. The GAPlanning\Enc Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Council= - Paseo Hotel Staff Report.doc Staff Report Case No. DA/PP/CUP 15-087 Page 12 of 12 June 18, 2015 hotel promotes economic benefits to the City and nearby shopping districts, while also maintaining El Paseo's uniqueness and pedestrian -oriented high -end retail shopping district. Submitted By: h Enc Ceja, As late Planner Department Head: auri Aylaian, Director of Community Development Approval: ohn M. Wohlmuth, City Manager i G:\Planning\Enc Ceja\Case Files\PP\PP 1 ti0887 Larkspur Hotel\City Council\CC - Paseo Hotel Staff Report.doc ORDINANCE NO. 1287 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT FOR A THREE-STORY 152-ROOM BOUTIQUE HOTEL DEVELOPMENT LOCATED ON THE NORTHEAST CORNER OF LARKSPUR LANE AND SHADOW MOUNTAIN DRIVE CASE NOS: DA 15-087 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 161h day of June 2015, hold a duly noticed public hearing to consider the request by El Paseo Hotel, LLC, for approval of the above noted, and adopted Planning Commission Resolution 2651 recommending approval of El Paseo Hotel and supporting applications, to the City Council; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 181h day of June, 2015, hold a duly noticed public hearing to consider the request by El Paseo Hotel, LLC, for approval of amendments to the Development Agreement, Precise Plan, and Conditional Use Permit applications for the El Paseo Hotel, and adopted an Addendum to the Mitigated Negative Declaration for the above noted project; and WHEREAS, said applications have complied with the requirements of the "City of Palm Desert Procedure for Implementation of the California Environmental Quality Act," Resolution No. 2014-41, in that the Director of Community Development has prepared an Addendum to the approved Mitigated Negative Declaration and has determined that the no new significant environmental impacts will result from the proposed changes to the hotel design and that an Addendum to the Mitigated Negative Declaration can be adopted; and WHEREAS, at said public hearing, upon hearing the City Council heard and considered all testimony and arguments, if any, of all interested persons desiring to be heard. WHEREAS, the City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings of the City Council in this case. 2. That Development Agreement 15-87, amending by Development Agreement 07-02, is hereby approve, as proposed, by Ordinance No. ORDINANCE NO. 1287 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 18t' day of June, 2015, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA Susan Marie Weber, Mayor G\Planning\Enc Ceja\Case Fles\PP\PP 15-D887 Larkspur Hotel\City Counal\CC Ordinance.docx 2 RESOLUTION NO. 2015-59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AN ADDENDUM TO A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AND AMENDMENTS TO THE APPROVED PRECISE PLAN AND CONDITIONAL USE PERMIT FOR A THREE-STORY 152-ROOM BOUTIQUE HOTEL DEVELOPMENT LOCATED ON THE NORTHEAST CORNER OF LARKSPUR LANE AND SHADOW MOUNTAIN DRIVE CASE NOS: PP/CUP 15-087 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 16th day of June 2015, hold a duly noticed public hearing to consider the request by El Paseo Hotel, LLC, for approval of the above noted, and adopted Planning Commission Resolution 2651 recommending approval of El Paseo Hotel and supporting applications, to the City Council; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 181h day of June, 2015, hold a duly noticed public hearing to consider the request by El Paseo Hotel, LLC, for approval of amendments to the Development Agreement, Precise Plan, and Conditional Use Permit applications for the El Paseo Hotel, and adopted an Addendum to the Mitigated Negative Declaration for the above noted project; and WHEREAS, said applications have complied with the requirements of the "City of Palm Desert Procedure for Implementation of the California Environmental Quality Act," Resolution No. 2014-41, in that the Director of Community Development has prepared an Addendum to the approved Mitigated Negative Declaration and has determined that the no new significant environmental impacts will result from the proposed changes to the hotel design and that an Addendum to the Mitigated Negative Declaration can be adopted; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the City Council did find the following facts and reasons to east to justify the approval of said request: 1. That the proposed location of the conditional use is in accord with the objectives of this title and the purpose of the district in which the site is located. The project is located on two vacant parcels that are zoned General Commercial (C-1) and Residential Multiple Family (R-3). Both zoning districts allow hotel development subject to approval of a conditional use permit. The purpose of the C-1 zone is to provide the City with a principal core area of specialty and general commercial shopping facilities to serve the needs of a resort community and city residents. The hotels proximity to the El Paseo Shopping District and Highway 111 corridor will enhance the viability of nearby commercial uses and will support the community at large. The hotel design and operations, with approval of a Conditional Use Permit, is in accordance with the objectives of the G1 zone. RESOLUTION NO. 2015-59 The purpose of the R-3 zoning district is to provide suitable areas for residents to live in a variety of housing types at high population densities consistent with sound standards of public health and safety. Historically, the R-3 properties south of El Paseo, between Highway 74 and Deep Canyon Drive, have been a transitional land use area between the City's commercial core (Highway 111 and El Paseo) and south Palm Desert's single- family neighborhood. These properties consist of hotels, apartments, condominiums, medical and general office, and retail uses. The zone allows hotel development with a Conditional Use Permit as a transitional land use between the City's commercial core and single-family neighborhoods; therefore, the proposed project is in accordance with the objectives of the R 3 zoning district. 2. That the proposed location of the conditional use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety, or welfare, or be materially injurious to properties or improvements in the vicinity. The proposed hotel use is consistent with the intent of the City's Zoning Ordinance as described above. The project has been conditioned to address public health and safety and will require additional permits from the County Health Department and other public agencies. In addition, the hotel's design and improvements have been reviewed by the City's Planning Department, Building and Safety Department, Fire Department, and Public Works Department for consistency with the General Plan and emergency services. The project has also been conditioned to limit noise and traffic impacts on surrounding properties and to comply with all requirements of the California Building Code which is written to protect public safety, therefore, the project will not be detrimental to the public interest, health, safety, welfare and will not be materially injurious to properties or improvements in the vicinity. An Initial Study and Mitigated Negative Declaration were prepared and adopted by the City Council in 2008 for the original design of the hotel development. An Addendum to the Mitigated Negative Declaration was prepared to analyze the project modifications. The Addendum demonstrates that the environmental analysis, impacts, and mitigation required by the original hotel design remain substantively unchanged by the hotel modifications. The Addendum supports findings that the project modifications do not result in any new impacts and do not exceed the level of impacts identified in the approved Mitigated Negative Declaration. The Addendum also concludes that none of the conditions that would require preparation of a new environmental analysis are present at the site. 3. That the proposed conditional use will comply with each of the applicable provisions of this title, except for approved variance or adjustments. The proposed hotel use is consistent with the intent of the Zoning Ordinance and will comply with the General Commercial (C-1) and Residential Multiple Family (R-3) zones. Conditions have been added to the project to ensure that all the minimum requirements of the Palm Desert Municipal Code are met. The City Council has previously approved exceptions to the City's maximum hotel room density, maximum building height, and setbacks standards for this property, and the modifications are consistent with the approved exceptions. G:\Planning\Enc Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Council= Resolution.docx 4 RESOLUTION NO. 2015-59 4. That the proposed conditional use complies with the goals, objectives, and policies of the City's general plan. The project is consistent with the goals and objectives of the City's General Plan, Commercial Core Area Specific Plan, and the City's Sustainability Plan. The hotel development will provide a mix of land uses meeting the general social and economic needs of the community, develops a vacant in -fill lot surrounding by existing development, and provides a revenue -generating land use that supports existing commercial services and supports the City's employment base. The hotel development is compatible with surrounding development and enhances the character and viability of El Paseo and Highway 111. The hotel promotes economic benefits to the City and nearby shopping districts, while also maintaining El Paseo's uniqueness and pedestrian - oriented high -end retail shopping district. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings of the City Council in this case. 2. That the City Council does hereby approve the amendments to the Precise Plan and Conditional Use Permit, and adopts the Addendum to the Mitigated Negative Declaration, as proposed. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 18t' day of June, 2015, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Susan Marie Weber, Mayor FAIIIIII111*111 RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA GAPlanniny\Edc Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Coundl\CC Resdutlon.dou 3 RESOLUTION NO. 2015-59 CONDITIONS OF APPROVAL CASE NOS. PP/CUP 15-087 DEPARTMENT OF COMMUNITY DEVELOPMENT: The development of the property shall conform substantially with exhibits on file with the Department of Community Development, as modified by the following conditions. 2. The development of the property described herein shall be subject to the restrictions and limitations set forth herein which are in addition to the approved Development Agreement, all Palm Desert Municipal ordinances, and state and federal statutes now in force, or which hereafter may be in force. 3. Prior to issuance of a building permit for construction of any use or structure contemplated by this approval, the applicant shall first obtain permits and/or clearance from the following agencies: Coachella Valley Water District (CVWD) Public Works Department Fire Department Evidence of said permit or clearance from the above agencies shall be presented to the Department of Building & Safety at the time of issuance of a building permit for the use contemplated herewith. 4. Access to trash/service areas shall be placed so as not to conflict with parking areas. Said placement shall be approved by applicable waster company and Department of Community Development and shall include a recycling program. 5. The applicant shall install an eight- (8) foot high block wall along the eastern property line to provide screen and noise attenuation from surrounding properties. Design of the wall shall include a decorate block material or shall be finished or stucco in a manner consistent with the hotel's design and architecture. Final wall plans shall be submitted to the City's Community Development Department for approval prior to issuance of a building permit to construct the wall. 6. The applicant shall work with Community Development staff on the final wall design along the southern property line. Final wall design may include a mix of materials, include block or wrought iron. Final wall plans shall be submitted to the City's Community Development Department for approval prior to issuance of a building permit to construct the wall. 7. All sidewalk plans shall be reviewed and approved by the Department of Public Works. 8. The project is subject to the Art in Public Places program. The applicant is encourages to utilize the fee for installation of an on -site art piece. Please contact Ms. Deborah Schwartz -Glickman at (760) 346-0611 to discuss the Art in Public Place process. GAPlanning\Enc Ceja\Case Files\PP\PP 150887 Larkspur HotekCity Counol\CC Resolution.docx 4 RESOLUTION NO. 2015-59 9. In the event that Native American cultural resources are discovered during project development/construction, all work in the immediate vicinity of the find shall cease and a qualified archeologist meeting Secretary of Interior standards shall be hired to assess the find. Work on the overall project may continue during this assessment period. If significant Native American cultural resources are discovered that require a Treatment Plan, the developer or his archeologist shall contact the Morongo Band of Mission Indians. If requested by the Tribes, the developer or archeologist shall, in good faith, consult on the discovery and its disposition. 10. Outdoor entertainment, including the use of amplified music, shall conform to the City's Noise Ordinance and shall generally be limited to the hours of 9:00 a.m. to 10:00 p.m. The applicant shall apply for an Entertainment Site Plan should the use of amplified music continue beyond the hours prescribed in this condition. 11. The applicant shall provide an emergency backup generator on -site. The hotel will be used as a "cooling station" in the event of a power outage in the City of Palm Desert. 12. The applicant shall continue to operate the site as a four (4) star luxury/upscale boutique hotel as defined by J.D. Power and Associates. 13. Lighting plans shall be submitted in accordance with P.D.M.C. Section 24.16 for any landscape, architectural, street, or other lighting types within the project area. 14. All mitigation measures identified in the CEQA Environmental Assessment and Initial Study shall be incorporated into the planning, design, development, and operation of the project. 15. The applicant shall enter into a Development Agreement that allows for a 154-room boutique hotel development as described in the site plan. The Final Development Agreement shall be recorded within ten (10) days of final approval of the project by the City Council. DEPARTMENT OF PUBLIC WORKS: 16. The applicant shall submit a grading plan to the Department of Public Works for review and approval. Any changes to the approved civil or landscape plans must be reviewed for approval prior to work commencing. 16. The grading plan shall identify all proposed and existing utilities. 17. The applicant shall construct or enter into an agreement and post security, in a form and amount acceptable to the City Engineer, guaranteeing the construction of off -site improvements. Improvements shall be in accordance with the Development Agreement. 18. The applicant shall install a 10' ADA compliant sidewalk on Larkspur Lane and an 8' ADA compliant sidewalk on Shadow Mountain Drive. 19. An encroachment permit shall be obtained from the Public Works Department prior to beginning off -site improvements. G\Planning\Enc Ceja\Case Files\PF1PP 150887 Larkspur Hotel\City Coundl\CC Resolution.docx 5 RESOLUTION NO. 2015-59 20. A parcel map waiver for lot line adjustment shall be submitted for review and approval to create a single parcel prior to grading permit issuance. 21. The applicant shall submit a PM10 application for approval. The applicant shall comply with all provisions of Palm Desert Municipal Code Section 24.12 regarding Fugitive Dust Control. 22. The applicant shall abide by all provisions of City of Palm Desert Ordinance 843, Section 24.20 Stormwater Management and Discharge Ordinance. 23. The applicant shall retain to the 100-year storm within the parcel boundary. 24. The applicant shall submit a final Water Quality Management Plan (WQMP) for approval. The WQMP shall identify the Best Management Practices (BMPs) that will be used on the site to control predictable pollutant runoff. Prior to the issuance of grading permit, the Operation and Maintenance Section of the approved final WQMP shall be recorded with County's Recorder Office and a conformed copy shall be provided to the Public Works Department. 25. The applicant shall provide the City Engineer with evidence that a Notice of Intent (NOI) has been filed with the State Water Resources Control Board. Such evidence shall consist of a copy of the NOI stamped by the State Water Resources Control Board or the Regional Water Quality Control Board, or a letter from either agency stating that the NOI has been filed. 26. The applicant shall pay the appropriate signalization fee in accordance with City of Palm Desert Resolution Nos. 79-17 and 79-55 and drainage fee in accordance with Section 26.49 of Palm Desert Municipal Code and Palm Desert Ordinance Number 653. 27. The applicant shall submit a landscape plan concurrently with the precise grading plan for review and approval. The applicant is advised to use the City of Palm Desert Design Guide when designing plans. Landscape plans must meet the following criteria: a. Must be water efficient in design and meet the City of Palm Desert's Water Efficient Landscape Ordinance. b. Planting plans must show location of proposed and existing utilities. c. Must match approved civil plans. d. All specs and details must be site specific. e. Applicants must have Coachella Valley Water District (CVWD) approval of their irrigation plans prior to City approval. f. Applicants must have a stamp or signature from the County Agricultural Commissioner before City approval. BUILDING AND SAFETY DEPARTMENT 28. This project shall comply with the latest adopted edition of the following codes: a. 2013 California Building Code and its appendices and standards. b. 2013 California Plumbing Code and its appendices and standards. GAPlanning\Enc Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Counal\CC Resclufion.docx u RESOLUTION NO. 2015-59 c. 2013 California Mechanical Code and its appendices and standards. d. 2013 California Electrical Code. e. 2013 California Energy Code. f. 2013 California Green Building Standards Code. g. Title 24, California Code of Regulations. h. 2013 California Fire Code and its appendices and standards. 29. An approved automatic fire sprinkler system shall be installed as required per the City of Palm Desert Code Adoption Ordinance 1265. 30. A disabled access overlay of the precise grading plan is required to be submitted to the Department of Building and Safety for plan review of the site accessibility requirements as per 2013 CBC Chapters 11A & B (as applicable) and Chapter 10. 31. All exits must provide an accessible path of travel to the public way. (CBC 1027.5 & 11 B-206) 32. Detectable warnings shall be provided where required per CBC 11 B-705.1.2.5 and 11 B-705.1.2.2. The designer is also required to meet all ADA requirements. Where an ADA requirement is more restrictive than the State of California, the ADA requirement shall supersede the State requirement. 33. Provide an accessible path of travel to the trash enclosure. The trash enclosure is required to be accessible. Please obtain a detail from the Department of Building and Safety. 34. Public pools and spas must be first approved by the Riverside County Department of Environmental Health and then submitted to Department of Building and Safety. Pools and Spas for public use are required to be accessible. 35. All contractors and subcontractors shall have a current City of Palm Desert Business License prior to permit issuance per Palm desert Municipal Code, Title 5. 36. All contractors and/or owner -builders must submit a valid Certificate of Workers' Compensation Insurance coverage prior to the issuance of a building permit per California Labor Code, Section 3700. 37. Address numerals shall comply with Palm Desert Ordinance No. 1265 (Palm Desert Municipal Code 15.28. Compliance with Ordinance 1265 regarding street address location, dimension, stroke of line, distance from street, height from grade, height from street, etc. shall be shown on all architectural building elevations in detail. Any possible obstructions, shadows, lighting, landscaping, backgrounds or other reasons that may render the building address unreadable shall be addressed during the plan review process. You may request a copy of Ordinance 1265 or Municipal Code Section 15.28 from the Department of Building and Safety counter staff. 38. Please contact Cherie Williams, Building and Safety Technician, at the Department of Building and Safety (760-776-6420) regarding the addressing of all buildings and/or suites. GAPlanning\Enc Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Counol\CC Resolubon.docx rl RESOLUTION NO. 2015-59 FIRE DEPARTMENT: 39. Final fire and life safety conditions will be addressed when building plans are reviewed by the Fire Prevention Bureau. These conditions will be based on occupancy, use, the California Building Code (CBC), California Fire Code (CFC), and related codes which are in force at the time of building plan submittal. 40. The Fire Prevention Bureau is required to set a minimum fire flow for the construction of all residential buildings per CFC Appendix B. The developer shall provide for this project, a water system capable of delivering 4,000 GPM at 20-PSI residual operating pressure for a 4-hour duration for multi -family projects. 41. As required by the California Fire Code, when any portion of the facility of building hereafter constructed or moved into or within the jurisdiction is more than 400 feet from a hydrant on a fire apparatus road, as measured by an approved route around the exterior of the facility or building, on -site fire hydrants and mains shall be provided where required by the fire code official. (CFC Chapter 5). 42. This development shall have two points of access, via all-weather surface roads, as approved by the Fire Prevention Bureau (CFC Chapter 5). 43. Fire Department vehicle access roads shall have an unobstructed width of not less than 24 feet for commercial roads with an unobstructed vertical clearance of not less than 13 feet 6 inches. 44. The developer shall furnish three copies of the water system plans to the Fire Prevention Bureau for approval prior to installation for all private water systems pertaining to the fire service loop. Plans shall be signed by a registered civil engineer, contain a Fire Prevention Bureau approval signature block, and conform to hydrant type, location, spacing and minimum fire flows standards. Hydraulic calculation will be required with the underground submittal to ensure fire flow requirements are being met for the on -site hydrants. The plans must be submitted and approved prior to building permit being issued. 45. Fire sprinkler plans shall be submitted to the Fire Prevention Bureau for approval. Three sets of sprinkler plans must be submitted by the installing contractor to the Fire Prevention Bureau. The fire alarm system is required to have a dedicated circuit from the house panel. These plans must be submitted prior to the issuance of building permits. 46. Fire alarm plans shall be submitted to the Fire Prevention Bureau for approval. Three sets of alarm plans must be submitted by the installing contractor to the Fire Prevention Bureau prior to issuance of building permits. G:\Planntng\Enc Ceta\Case Files\PRPP 150887 Larkspur Hotel\City Council= Resolution.docx RESOLUTION NO. 2015-59 47. New and existing buildings shall have approved address numbers, building numbers or approved building identification placed in a position that is plainly legible and visible from the street or road fronting the property. 48. A "Knox -Box" shall be provided. The Knox -Box shall be installed a minimum of six feet in height and be located to the right side of fire riser sprinkler rooms. 49. All manual and electronic gates on required Fire Department access road or gates obstructing Fire Department access shall be provided with the Knox Rapid entry system for emergency access by firefighting personnel. 50. Prior to final inspection of any building, the applicant shall prepare and submit to the Fire Department for approval, a site plan designating fire lanes with appropriate lane painting and/or signs. GAPlanningTdc Ceja\Case Files\PP\PP 150887 Larkspur Hotel\City Counal\CC Resolulion.docx r y r r. TT 73-510 FRro WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL- 76o 346—o6ii FAX:76o 341-7098 mfo6�pal m-d cscn.org CITY OF PALM DESERT LEGAL NOTICE CASE NOS. DA/PP/CUP 15-087 NOTICE OF INTENT TO ADOPT AN ADDENDUM TO THE APPROVED MITIGATED The City of Palm Desert (City), in its capacity as the Lead Agency for this project under the California Environmental Quality Act (CEQA), has reviewed and considered the modifications to the approved Larkspur Hotel site and has determined that no new significant impacts are created by the changes to the hotel operations, site, and architecture and ail existing mitigation measures are sufficient to mitigate potential impacts associated with development of the site. Project Location/ Description: Project Location: The project is located on the northeast corner of Larkspur Lane and Shadow Mountain Drive- Proiect Description: The project consists of a 152-room, three-story, boutique hotel development to be located on a vacant two (2) acre parcel at the northeast comer of Larkspur Lane and Shadow Mountain Drive. In 2008, a 154-room, three-story, condo -hotel was approved at the site and the applicant is requesting modifications to the approved hotel's architecture, operations, and site design. Modifications to the hotel operations include eliminating all 48 condominium units and replacing them with standard hotel rooms, and elimination of the roof -top bar and pool area. The hotels architecture will be modified to reduce the overall building massing by more than 40% while maintaining the originally approved maximum building height of 37 feet. The site will be modified to: reduce the overall building footprint by 40%, reduce the number of underground parking stalls from 203 stalls to 150 stalls, increase perimeter landscape setbacks along the north, south, and west property lines, and create a new pool area at grade along the east property line. Recommendation: Staff is recommending approval of the Addendum to the Mitigated Negative Declaration and approval of the amendments to the Precise Plan, Conditional Use Permit, and Development Agreement applications for the modifications to the project. Public Hearing: The public hearing will be held before the Planning Commission on June 16, 2015, at 6:00 p.m. The City Council will hold a public hearing on the proposed amendments to the applications on June 18, 2015, at 4:00 pm. Public Review: The applications and plans for the proposed hotel modifications are available for public review daily at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, 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 public hearing. All comments and any questions should be directed to: Eric Ceja, Associate Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 eceja@cityofpalmdesert.org PUBLISH: DESERT SUN RACHELLE D. KLASSEN, CITY CLERK June 6, 2015 CITY OF PALM DESERT, CALIFORNIA DRAFT: RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Desert 73-626 Highway 111 Palm Desert CA 92260 Attn: City Clerk Exempt from recording fees pursuant to Govt. Code Section 27383 (Space above for recorder's use) AMENDED AND RESTATED DEVELOPMENT AGREEMENT THIS AMENDED AND RESTATED DEVELOPMENT AGREEMENT (this "Amended Agreement') is made and entered into as of this 9th day of July, 2015, by and between the City of Palm Desert, California, a municipal corporation organized and existing under the laws of the State of California (the "City), and El Paseo Hotel, LLC ("Developer"), with reference to the following facts, understandings and intentions of the parties: 72500.00758 \9804535.1 DRAFT 5/26/15 DRAFT: RECITALS: A. These Recitals refer to and utilize certain capitalized terms which are defined in this Amended Agreement. The parties intend to refer to those definitions in conjunction with the use thereof in these Recitals. B. Government Code Sections 65684 through 65869.5 inclusive (the "Development Agreement Legislation") authorize the City to enter into development agreements in connection with the development of real property within its jurisdiction. On August 11, 1983, the City enacted by Ordinance No. 341, as amended on December 7, 1989 by Ordinance No. 589 (collectively, the "Development Agreement Ordinance"), procedures and requirements for the consideration of development agreements thereunder pursuant to the Development Agreement Legislation. C. On July 10, 2008, City and Larkspur Associates, LLC, entered into a Development Agreement ("Original Agreement") for the Project described below, which included a certain number of condominium units. Developer is the current owner of a legal or equitable interest in the Property and is entitled to have filed the application for and to enter into this Amended Agreement to remove the condominium units from the Project. The Project consists of the future development of the Property. The Property is located at an important location in the City and the coordinated development of the Project pursuant to this Amended Agreement represents an important and mutually beneficial economic development and land usage planning opportunity for the City and Developer. 72500.00758 \9804535.1 DRAFT 5/26115 -\v DRAFT: D. The City has determined that the development of the Project as contemplated by this Amended Agreement is consistent with and in furtherance of the development goals, policies, general land uses and development programs of the City as set forth in the City's General Plan, Commercial Core Area Specific Plan and is consistent with the existing zoning affecting the Properties. E. City has further determined that entry into this Amended Agreement will further the goals and objectives of the City's land use planning policies by, among other things, encouraging investment, providing precise and supplemental criteria for the uses, design, circulation and development of the Property, including flexibility in land use options which may be altered in order to respond to future changes in the surrounding areas, eliminating uncertainty in planning for, and securing orderly processing and development of the Project. The benefits conferred on the City by Developer herein will (i) insure consistent, comprehensive planning which will result in aesthetically pleasing, environmentally harmonious, and economically viable development within the City; (ii) provide for the creation of a high quality, aesthetically pleasing entry statement for the City; (iii) provide for the construction of storm water system improvements vital to the City; and (iv) further the development objectives of the City in an orderly manner, all of which will significantly promote the health, safety and welfare of the residents of the City. In exchange for these benefits to the City, Developer desires to receive the assurance that it may proceed with the Project in accordance with the Development Plan attached to this Amended Agreement as Exhibit "A", and at a rate of development of its choosing, subject to the terms and conditions contained in this Amended Agreement. 72500.00758 \9804535.1 DRAFT 5/26/15 `,v DRAFT: F. Pursuant to Section 65867.5 of the Development Agreement Legislation, the City Council has found and determined that: (i) this Amended Agreement implements the goals and policies of the City's General Plan, provides balanced and diversified land uses, and imposes appropriate standards and requirements with respect to land development and usage in order to maintain the overall quality of life and the environment within the City; (ii) this Amended Agreement is in the best interests of and not detrimental to the public health, safety and general welfare of the City and its residents; (iii) adopting this Amended Agreement is consistent with the City's General Plan, and each element thereof and the Commercial Core Area Specific Plan, and constitutes a present exercise of the City's police power; and (iv) this Amended Agreement is being entered into pursuant to and in compliance with the requirements of Government Code Section 65867 of the Development Agreement Legislation. G. By adopting this Amended Agreement, the City Council has elected to exercise certain governmental powers at the present time rather than deferring such actions until an undetermined future date and has done so intending to bind the City and the City Council and intending to limit the City's future exercise of certain governmental powers, to the extent permitted by law. H. This Amended Agreement has undergone extensive review by the City's staff, the Planning Commission and the City Council. In order to effectuate the foregoing, the parties desire to enter into this Amended Agreement. 72500.00758 \9804535.1 DRAFT 5/26/15 -\v DRAFT: AGREEMENT NOW, THEREFORE, pursuant to the authority contained in the Development Agreement Legislation, and in consideration of the mutual covenants and promises of the parties herein contained, the parties agree as follows: 1. DEFINITIONS. 1.1 Defined Terms. Each reference in this Amended Agreement to any of the following terms shall have the meaning set forth below for each such term. Agreement. 1.2 Amended Agreement. This Amended and Restated Development 1.3 Building Ordinances. Those building standards, of general and uniform application throughout the City and not imposed solely with respect to the Property, in effect from time to time that govern building and construction standards within the City, including, without limitation, the City's building, plumbing, electrical, mechanical, grading, sign, and fire codes. 1.4 City Council. The legislative body of the City of Palm Desert. 1.5 Development Plan. Development Plan means the development and associated amenities, and on -site and off -site improvements, as permitted under and described in the Development Plan (Exhibit "A"), to be constructed on the Property, as the same may hereafter be further refined, enhanced or modified pursuant to the provisions of this Amended Agreement. 72500.00758 \9804535.1 DRAFT 5126115 _,y DRAFT: 1.6 Original Effective Date. The date on which the Original Enacting Ordinance became effective. 1.7 Original Enacting Ordinance. Ordinance 1158, enacted by the City Council on July 10, 2008, approving the Original Agreement. 1.8 Existing Land Use Ordinances. The Land Use Ordinances in effect as of the Original Effective Date. 1.9 Four -Star Hotel and Four -Star Hotel Standards. Four -Star Hotel shall mean a hotel where either of the following shall apply: (1) the hotel has or will meet the requirements of a brand included within the "Luxury' or "Upscale" segments as defined by J.D. Power and Associates; or (2) the hotel satisfies or will satisfy the published requirements sufficient for a ranking of no less than four (4) stars in the most recent annual awards list published by AAA or Mobil Travel Guides. The City Council may, by resolution, adopt alternative standards as may be necessary. Four -Star Hotel Standards shall mean the standards of a Four -Star Hotel. 1.10 Hotel Manager. Hotel Manager means a reputable and experienced hotel management company or operator who shall have at least five (5) consecutive years of experience in the hotel management business in hotels that meet the Four Star Hotel Standards and have no fewer than ten (10) other properties (each in separate cities, or distinct and separate projects in any given city, nationally or internationally) under current management. 72500.00758 \9804535.1 DRAFT 5126115 -\v DRAFT: 1.11 Land Use Ordinances. The ordinances, resolutions, codes, rules, regulations and official policies of the City duly adopted and on file in the Office of the City Clerk, governing the development of the Property, including but not limited to, the permitted uses of land, the density and intensity of use of land, and the timing of development, all as applicable to the development of the Property. Specifically, but without limiting the generality of the foregoing, Land Use Ordinances shall include the City's General Plan, the City's zoning ordinance and the City's subdivision code, but shall exclude the Building ordinances. 1.12 Mortgage. A mortgage, deed of trust, sale and leaseback arrangement in which all or a part of the Property, or an interest in it, is sold and leased back concurrently, or other transactions in which all or a part of the Property, or an interest in it, is pledged as security, contracted in good faith and for fair value. 1.13 Municipal Code means the Palm Desert Municipal Code. 1.14 Protect. The development and associated amenities, and on -site and off -site improvements, as permitted under and described in the Development Plan (Exhibit "A"), to be constructed on the Property, as the same may hereafter be further refined, enhanced or modified pursuant to the provisions of this Amended Agreement. 1.15 Property. The real property and any improvements thereon which is described in Exhibit "B" to this Amended Agreement. 72500.00758 \9804535.1 DRAFT 5/26/15 -\v DRAFT: 1.16 Transient Occupancy Tax means the tax described and subject to the provisions of Chapter 3.28 of the Municipal Code, as may be amended from time to time. 2. Term; Amendment. 2.1 Term. The term of this Amended Agreement (the "Term") shall commence on effective date of the ordinance that approves this Amended Agreement and shall terminate on the twelve (12) year anniversary date of the Original Effective Date, unless sooner terminated or extended as hereinafter provided. 2.2 Amendment. The parties to this Amended Agreement at their sole discretion and by their mutual written consent may from time to time amend the provisions and terms of this Amended Agreement and the Exhibits hereto. Any amendment to this Amended Agreement or the Exhibits hereto as provided herein shall be effected only upon compliance with the procedures for amendment, if any, required by the Development Agreement Legislation and the Development Agreement Ordinance. The City shall, after any such amendment takes effect, cause an appropriate notice of such amendment to be recorded in the official records of the County of Riverside. 3. General Development of the Protect 3.1 Protect. (a) The Project is defined and described in the Development Plan attached to this Amended Agreement as Exhibit "A". 72500.00758 \9804535.1 DRAFT 5/26/15 -\v DRAFT: (b) Developer shall have the vested right to develop the Project in accordance with, and development of the Project during the Term shall be governed by, the Development Plan and, to the extent not inconsistent with or modified by the Development Plan, the Existing Land Use Ordinances. Developer's right to develop the Property in accordance with this Section 3.1 shall be without regard to future ordinances, resolutions, rules, regulations and policies of the City or referenda of the voters of the City, including, without limitation, those with respect to moratoriums for utility service, other than ordinances, resolutions, rules, regulations and policies of the City which limit or condition the rate, timing or sequencing of development of the Property and which are required solely as a result of then existing shortages of utility service capacity or facilities. 3.2 Building Permits and Other Approvals and Permits. Subject to (a) Developer's compliance with this Amended Agreement, the Development Plan, the Existing Land Use Ordinances and the Building Ordinances, and (b) payment of the usual and customary fees and charges of general application charged for the processing of such applications, permits and certificates and for any utility connection, or similar impact fees and charges of general application then in effect, the City shall process and issue to Developer upon application therefore all necessary use permits, building permits, occupancy certificates, and other required permits for the construction, use and occupancy of the Project, or any portion thereof, as applied for, including connection to all utility systems under the City's jurisdiction and control (to the extent that such connections are physically feasible and that such utility systems are capable of adequately servicing the Project). 72500.00758\9804535.1 DRAFT 5/26/15 -iv DRAFT: 3.3 Procedures and Standards. The standards for granting or withholding permits or approvals required hereunder in connection with the development of the Project shall be governed as provided herein by the standards, terms and conditions of this Amended Agreement and the Development Plan, and to the extent not inconsistent therewith, the Existing Land Use Ordinances, but the procedures for processing applications for such permits pre -approvals (including the usual and customary fees of general application charged for such processing) shall be governed by such ordinances and regulations as may then be applicable and which are consistent with the Development Plan. 3.4 Effect of Amended Agreement. This Amended Agreement shall constitute a part of its Enacting Ordinance, as if incorporated by reference therein in full. The parties acknowledge that this Amended Agreement is intended to supersede the Original Agreement and grant Developer the right to develop the Project pursuant to specified and known criteria and rules as set forth in the Development Plan and the Existing Land Use Ordinances, and to grant the City and the residents of the City certain benefits which they otherwise would not receive. This Amended Agreement shall be binding upon the City and its successors in accordance with and subject to its terms and conditions notwithstanding any subsequent action of the city, whether taken by ordinance or resolution of the City Council, by referenda, initiative, or otherwise. The parties acknowledge and agree that by entering into this Amended Agreement and relying thereupon, the Developer has obtained, subject to the terms and conditions of this Amended Agreement, a vested 72500.00758 \9804535.1 DRAFT 5/26/15 V DRAFT: right to proceed with its development of the Project in accordance with the proposed uses of the Property, the density and intensity of development of the Property and the requirements and guidelines for the construction or provision of on -site and off -site improvements as set forth in the Development Plan and the Existing Land Use Ordinances, and the City has entered into this Amended Agreement in order to secure the public benefits conferred upon it hereunder which are essential to alleviate current and potential problems in the City and to protect the public health, safety and welfare of the City and its residents, and this Amended Agreement is an essential element in the achievement of those goals. 3.5 Operating Memoranda. The parties acknowledge that refinements and further development of the Project may demonstrate that changes are appropriate with respect to the details and performance of the parties under this Amended Agreement. The parties desire to retain a certain degree of flexibility with respect to those items covered in general terms under this Amended Agreement. If and when the parties mutually find that changes, adjustments, or clarifications are appropriate to further the intended purposes of this Amended Agreement, they may, unless otherwise required by law, effectuate such changes, adjustments, or clarifications without amendment to this Amended Agreement through one or more operating memoranda mutually approved by the parties, which, after execution, shall be attached hereto as addenda and become a part hereof and may be further changed and amended from time to time as necessary. The City Manager is authorized to approve such an operating memorandum on behalf of the City without further approval of the City Council. Unless otherwise required by law or by this Amended Agreement, no such 72500.00758 \9804535.1 DRAFT 5/26/15 -\v DRAFT: changes, adjustments, or clarifications shall require prior notice or hearing, public or otherwise. 4. Specific Criteria Applicable to Development of the Project. 4.1 Applicable Ordinances. Except as set forth in the Development Plan and subject to the provisions of Section 4.2 below, the Existing Land Use ordinances shall govern the development of the Property hereunder and the granting or withholding of all permits or approvals required to develop the Property; provided, however, that (a) Developer shall be subject to all changes in processing, inspection and plan -check, impact fees and charges imposed by City in connection with the processing of applications for development and construction upon the Property so long as such fees and charges are of general application and are not imposed solely with respect to the Property, (b) Developer shall abide by the Building ordinances in effect at the time of such applications, and (c) Developer and/or Operator of the project shall comply with all ordinances relating to operation including but not limited to Transient Occupancy Tax. 4.2 Amendment to Applicable Ordinances. In the event that the Palm Desert zoning ordinance is amended by the City in a manner which provides more favorable site development standards for the Property or any part thereof than those in effect as of the Effective Date, Developer shall have the right to notify the City in writing of its desire to be subject to all or any such new standards for the remaining term of this Amended Agreement. If City agrees, by resolution of the City Council or by action of a City official whom the City Council may designate, such new standards shall become 72500.00758 \9804535.1 DRAFT 5/26/15 -\v DRAFT: applicable to the Property or portions thereof. Should City thereafter amend such new standards, upon the effective date of such amendment, the original new standards shall continue to apply to the Property as provided above, but Developer may notify City in writing of its desire to be subject to all or any such amended new standards and City may agree in the manner above provided to apply such amended new standards to the Property. 4.3 Easements; Abandonments. City shall cooperate with Developer in connection with any arrangements for abandoning existing utility or other easements and the relocation thereof or creation of any new easements within the Property necessary or appropriate in connection with the development of the Project; and if any such easement is owned by City, City shall, at the request of Developer and in the manner and to the extent permitted by law, take such action and execute such documents as may be necessary to abandon existing easements and relocate them, as necessary or appropriate in connection with the development of the Project, all at the cost and expense of the Developer. In addition, to the extent that temporary or permanent easements on property adjacent or in close proximity to the Property will be required in order for Developer to develop all or portions of the Project, the City shall cooperate with Developer in efforts to obtain or secure any such required easements. 4.4 Height Requirements. Buildings constructed on the Property as part of the Project shall not exceed a height of thirty-seven feet (37') at the parapets or forty-two feet (42') at the tower in accordance with the Development Plan. The height 72500.00758 \9804535.1 DRAFT 5/26/15 =,v DRAFT: limits shall be measured in the manner of other height limits under Title 25 of the Municipal Code. 4.5 Parking Requirements. The Project shall provide a minimum of one hundred and fifty (150) underground parking spaces and eight (8) surface level parking spaces in accordance with the Development Plan. 4.6 Density Requirements. The Project shall not exceed a density of one hundred fifty four (154) hotel rooms/keys that may be allocated within the components of the Project as provided in the Development Plan. 4.7 LEED Requirements. Developer shall design, develop and construct the Project as required to secure the "Silver" or higher designation, as selected by the Developer in the exercise of its reasonable discretion, as established by the U.S. Green Building Council under the Leadership in Energy and Environmental Design ("LEED") program. 4.8 Cooling Station Capacity. An emergency backup power generator onsite capable of cooling the Project shall be installed and maintained as part of the Project. The Project shall be used as a "cooling station" for the City in the event of power outage. 4.9 Hotel Requirements (a) The requirements of this Section 4.9 are necessary to ensure that the Project retains its character as a four -star boutique commercial hotel. 72500.00758\9804535.1 DRAFT 5/26/15 -\v DRAFT: (b) The Developer shall enter into a contract for operation of the Project with a reputable and experienced hotel manager or operator who shall have at least five (5) consecutive years of experience in the hotel management business in hotels that meet the Four Star Hotel Standards and have no fewer than ten (10) other properties (each in separate cities, or distinct and separate projects in any given City, nationally or internationally) under current management ("Hotel Manager"). The applicant shall provide the Director of Community Development with appropriate documentation to demonstrate that the Hotel Manager meets the requirements of this subsection. Any future changes in the Hotel Manager shall require review and approval by the Director of Community Development. The Director of Community Development may modified the standards for the Hotel Manager upon finding that the Hotel Manager has comparable experience meeting the interests served by the standards. The Hotel Manager shall ensure that all portions of the hotel are maintained and operated in accordance with the Four Star Hotel Standards, including but not limited to the lobby and hallways, front desk, concierge services, landscape and open space areas, parking, banquet/ballroom facilities, conference, restaurant, retail, recreational, and spa facilities, and other amenities and improvements. 5. Art in Public Places. The City and Developer desire to cooperate with each other to secure the introduction and integration of public art into the Project for the purpose of enhancing the image of the City and the Project. Developer shall, at the request of the City, provide such easements upon the Property as may be reasonably required for the installation and maintenance of such public art. The location of such easements shall be mutually approved by the City and Developer. In addition to 72500.00758 \9804535.1 DRAFT 5/26/15 `V DRAFT: providing such easements as may be reasonably required for the installation and maintenance of such public art, Developer shall pay to the City in lieu art fees at the time of and in connection with the development of the Property, or portions thereof, in accordance with the fee levels and other payment and procedural requirements of Chapter 4.10 of the Municipal Code of the City lawfully imposed at the time of development of the Property, or portions thereof. 6. Periodic Review of Compliance. In accordance with Govt. Code Section 65865.1, the Department of Community Development/Planning Staff shall review this Amended Agreement at least each calendar year during the term of this Amended Agreement. At such periodic reviews, Developer must demonstrate its good faith compliance with the terms of this Amended Agreement. Developer agrees to furnish such evidence of good faith compliance as the City, and after reasonable exercise of its discretion and after reasonable notice to Developer, may require. 7. Permitted Delays: Supersede by Subsequent Laws. 7.1 Permitted Delays. In addition to any other provisions of this Amended Agreement with respect to delay, Developer and City shall be excused from performance of their obligations hereunder during any period of delay caused by acts of mother nature, civil commotion, riots, strikes, picketing, or other labor disputes, shortage of materials or supplies, or damage to or prevention of work in process by reason of fire, floods, earthquake, or other casualties, litigation, acts or neglect of the other party, any referendum elections held on the Enacting Ordinance, or the Land Use Ordinances, or any other ordinance effecting the Project or the approvals, permits or other entitlements 72500.00758 \9804535.1 DRAFT 5/26/15 `1, DRAFT: related thereto, or restrictions imposed or mandated by governmental or quasi - governmental entities, enactment of conflicting provisions of the Constitution or laws of the United States of America or the State of California or any codes, statutes, regulations or executive mandates promulgated thereunder (collectively, "Laws") , orders of courts of competent jurisdiction, or any other cause similar or dissimilar to the foregoing beyond the reasonable control of City or Developer, as applicable. Each party shall promptly notify the other party of any delay hereunder as soon as possible after the same has been ascertained. The time of performance of such obligations shall be extended by the period of any delay hereunder. 7.2 Supersedure of Subsequent Laws or Judicial Action. The provisions of this Amended Agreement shall, to the extent feasible, be modified or suspended as may be necessary to comply with any new Law or decision issued by a court of competent jurisdiction (a "Decision"), enacted or made after the Effective Date which prevents or precludes compliance with one or more provisions of this Amended Agreement. Promptly after enactment of any such new Law, or issuance of such Decision, the parties shall meet and confer in good faith to determine the feasibility of any such modification or suspension based on the effect such modification or suspension would have on the purposes and intent of this Amended Agreement. In addition, Developer and City shall have the right to challenge the new Law or the Decision preventing compliance with the terms of this Amended Agreement. In the event that such challenge is successful, this Amended Agreement shall remain unmodified and in full force and effect, except that the Term shall be extended, in 72500.00758 \9804535.1 DRAFT 5/26/15 -\V DRAFT: accordance with Section 7.1 above, for a period of time equal to the length of time the challenge was pursued. 8. Events of Default; Remedies; Termination. 8.1 Events of Default. Subject to any extensions of time by mutual consent in writing, and subject to the provisions of Section 7.1 above regarding permitted delays, the failure of either party to perform any material term or provision of this Amended Agreement shall constitute an event of default hereunder ("Event of Default') if such defaulting party does not cure such failure within ninety (90) days following receipt of written notice of default from the other party; provided, however, that if the nature of the default is such that it cannot be cured within such ninety (90) day period, the commencement of the cure within such ninety (90) day period and the diligent prosecution to completion of the cure shall be deemed to be a cure within such period. Any notice of, default given hereunder shall specify in detail the nature of the alleged Event of Default and the manner, if any, in which such Event of Default may be satisfactorily cured in accordance with the terms and conditions of this Amended Agreement. During the time periods herein specified for cure of a failure of performance, the party charged therewith shall not be considered to be in default for purposes of termination of this Amended Agreement, institution of legal proceedings with respect thereto, or issuance of any permit, map, certificate of occupancy, approval or entitlement with respect to the Project. 8.2 Remedies. Upon the occurrence of an Event of Default, the nondefaulting party shall have such rights and remedies against the defaulting party as 72500.00758 \9804535.1 DRAFT 5/26/15 `,v DRAFT: it may have at law or in equity, including, but not limited to, the right to terminate this Amended Agreement or seek mandamus, specific performance, injunctive or declaratory relief but not the right to damages. Notwithstanding the foregoing and except as otherwise provided in Section 8.4 hereof, if either Developer or City elects to terminate this Amended Agreement as a result of the occurrence of an Event of Default, such proceeding of termination shall constitute such party's exclusive and sole remedy, and with respect to such election City and Developer hereby waive, release and relinquish any other right or remedy otherwise available under this Amended Agreement or at law or equity. 8.3 Waiver; Remedies Cumulative. Failure by a party to insist upon the strict performance of any of the provisions of this Amended Agreement by the other party shall not constitute waiver of such party's right to demand strict compliance by such other party in the future. All waivers must be in writing to be effective or binding upon the waiving party, and no waiver shall be implied from any omission by a party to take any action with respect to such Event of Default. No express written waiver of any Event of Default shall affect any other Event of Default, or cover any other period of time specified in such express waiver. 8.4 Effect of Termination. Termination of this Amended Agreement by one party due to the other party's default, or as a result of the exercise of the right of termination provided to the Developer under Section 8.2 hereof, shall not affect any right or duty emanating, from any approvals, permits, certificates or other entitlements with respect to the Property or the Project which were issued, approved or provided by 72500.00758\9804535.1 DRAFT 5/26/15 -\v DRAFT: the City prior to the date of termination of this Amended Agreement. If City terminates this Amended Agreement because of Developer's default, then City shall retain any and all benefits, including money, land or improvements conveyed to or received by the City prior to the date of termination of this Amended Agreement, subject to any reimbursement obligations of the City. If Developer terminates this Amended Agreement because of City's default, or as a result of the exercise of the right of termination provided to the Developer under Section 8.2 hereof, then Developer shall be entitled to all of the benefits arising out of, or approvals, permits, certificates or other entitlements, on account of, any Exactions paid, given or dedicated to, or received by, City prior to the date of termination of this Amended Agreement. Except as otherwise provided in this Section 8.4, all of the rights, duties and obligations of the parties hereunder shall otherwise cease as of the date of the termination of this Amended Agreement. If this Amended Agreement is terminated pursuant to any provision hereof, then the City shall, after such action takes effect, cause an appropriate notice of such action to be recorded in the official records of the County of Riverside. The cost of such recordation shall be borne by the party causing such action. 8.5 Third Party Actions. Any court action or proceeding brought by any third party to challenge this Amended Agreement or any permit or approval required from City or any other governmental entity for development or construction of all or any portion of the Project, whether or not Developer is a party defendant to or real party 72500.00758 \9804535.1 DRAFT 5/26/15 `\v DRAFT: defendant in interest in such action or proceeding, shall constitute a permitted delay under Section 7.1. 9. Encumbrances on Property. 9.1 Discretion to Encumber. The parties hereto agree that this Amended Agreement shall not prevent or limit Developer, in any manner, at Developer's sole discretion, from encumbering the Property or any portion thereof or any improvements thereon with any mortgage, deed of trust or other security device ("Mortgage") securing financing with respect to the Property. The City acknowledges that the lenders providing such financing may require certain modifications to this Amended Agreement, and the City agrees upon request, from time -to -time, to meet with Developer and/or representatives of such lenders to negotiate in good faith any such request for modification. City further agrees that it will not unreasonably withhold its consent to any such requested modification. 9.2 Mortgage Protection. This Amended Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Amended Agreement shall defeat, render invalid, diminish or impair the lien of any Mortgage made in good faith and for value, and any acquisition or acceptance of title or any right or interest in or with respect to the Site or any portion thereof by a Mortgagee (whether pursuant to a Mortgage, foreclosure, trustee's sale, deed in lieu of foreclosure or otherwise) shall be subject to all of the terms and conditions of this Amended Agreement. 72500.00758\9804535.1 DRAFT 5/26/15 -\v DRAFT: 9.3 Mortgagee Not Obligated. Notwithstanding the provisions of Section 9.2, no Mortgagee will have any obligation or duty under this Amended Agreement to perform the obligations of Developer or other affirmative covenants of Developer hereunder, or to guarantee such performance, except that to the extent that any covenant to be performed by Developer is a condition to the performance of a covenant by City, the performance thereof shall continue to be a condition precedent to City's performance hereunder. 9.4 Estoppel Certificates. Either party may, at any time, and from time to time, deliver written notice to the other party requesting such party to certify in writing that, to the knowledge of the certifying party, (i) this Amended Agreement is in full force and effect and a binding obligation of the parties, (ii) this Amended Agreement has not been amended or modified, or if so amended or modified, identifying such amendments or modifications, and (iii) the requesting party is not in default in the performance of its obligations under this Amended Agreement, or if in default, describing therein the nature and amount of any such defaults. A party receiving a request hereunder shall execute and return such certificate within thirty (30) days following the receipt thereof city acknowledges that a certificate hereunder may be relied upon by transferees, assignees and lessees of the Developer and the holders of any Mortgage. 10. Transfers and Assignments; Effect of Amended Agreement on Title. 10.1 Rights and Interests Appurtenant. The rights and interests conveyed as provided herein to Developer benefit and are appurtenant to the Property. Developer has the right to sell, assign and transfer any and all of its rights and interests 72500.00758 \9804535.1 DRAFT 5/26/15 -\v DRAFT: hereunder and to delegate and assign any and all of its duties and obligations hereunder. Such rights and interests hereunder may not be sold, transferred or assigned and such duties and obligations may not be delegated or assigned except in compliance with the following conditions: (i) Said rights and interests may be sold, transferred or assigned only together with and as an incident of the sale, lease, transfer or assignment of the portions of the Property to which they relate, including any transfer or assignment pursuant to any foreclosure of a Mortgage or a deed in lieu of such foreclosure. Following any such sale, transfer or assignment of any of the rights and interests of Developer under this Amended Agreement, the exercise, use and enjoyment thereof shall continue to be subject to the terms of this Amended Agreement to the same extent as if the purchaser, transferee or assignee, were Developer hereunder. 10.2 Covenants Run with Land. (i) All of the provisions, agreements, rights, powers, standards, terms, covenants and obligations contained in this Amended Agreement shall be binding upon the parties and their respective heirs, successors (by merger, consolidation, or otherwise) and assigns, devisees, lessees, and all other persons acquiring any rights or interests in the Property, or any portion thereof, whether by operation of laws or in any manner whatsoever, and shall inure to the benefit of the parties and their respective heirs, successors (by merger, consolidation or otherwise) and assigns; 72500.00758 \9804535.1 DRAFT 5/26/15 -\v DRAFT: (ii) All of the provisions of this Amended Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land pursuant to applicable law; (iii) Each covenant to do or refrain from doing some act on the Property hereunder (A) is for the benefit of and is a burden upon every portion of the Property, (B) runs with such lands, and (C) is binding upon each party and each successive owner during its ownership of the Property or any portions thereof, and shall benefit each party and its lands hereunder, and each such other person or entity succeeding to an interest in such lands. 11. Notices. Any notice to either party shall be in writing and given by delivering the same to such party in person or by sending the same by registered or certified mail, return receipt requested, with postage prepaid, to the following addresses: If to City: City Clerk of the City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 If to Developer: El Paseo Hotel, LLC 3941 Park Drive S-20 El Dorado Hills, CA 95762 72500.00758 \9804535.1 DRAFT 5/26/15 V DRAFT: Either party may change its mailing address at any time by giving written notice of such change to the other party in the manner provided herein. All notices under this Amended Agreement shall be deemed given, received, made or communicated on the date personal delivery is affected or, if mailed, on the delivery date or attempted delivery date shown on the return receipt. 12. Indemnification. 12.1 Developer's Obligation. Developer will defend, indemnify and hold the City and its elected officials, officers and employee free and harmless from any loss, cost or liability (including, without limitation, liability arising from injury or damage to persons or property, including wrongful death and worker's compensation claims) which results from (i) any obligation which arises from the development of the Property including, without limitation, obligations for the payment of money for material and labor; (ii) any failure on the part of Developer to take any action which he is required to take as provided in this Amended Agreement; (iii) any action taken by Developer which he prohibited from taking as provided in this Amended Agreement and (iv) any claim which results from any willful or negligent act or omission of Developer. 12.2 Environmental Assurances. Developer shall indemnify and hold the city, its officers, agents and employees free and harmless from any liability deriving from the City's execution or performance of this Amended Agreement, based or asserted, upon any act or omission of Developer, its officers, agents, employees, contractors, subcontractors and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to hazardous or toxic materials, industrial 72500.00758\9804535.1 DRAFT 5/26/15 `Iv DRAFT: hygiene, or environmental conditions created by Developer or its officers, agents or employees, contractors, subcontractors and independent contractors after the Effective Date on, under which the Property, including, but not limited to soil and groundwater conditions, and Developer shall defend, at its expense, including attorneys fees, the City its officers, agents and employees in any action based or asserted upon any such alleged act or omission. The City may in its discretion participate in the defense of any such action. The provisions of this Section shall survive the termination or expiration of this Amended Agreement. 13. Miscellaneous 13.1 Relationship of Parties. It is understood that the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contractor. It is further understood that none of the terms or provisions of this Amended Agreement are intended to or shall be deemed to create a partnership, joint venture or joint enterprise between the parties hereto. 13.2 Consents. Unless otherwise herein provided, whenever approval, consent, acceptance or satisfaction (collectively, a "consent") is required of a party pursuant to this Amended Agreement, it shall not be unreasonably withheld or delayed. Unless provision is otherwise specified in this Amended Agreement or otherwise required by law for a specific time period, consent shall be deemed given within thirty (30) days after receipt of the written request for consent, and if a party shall neither approve nor disapprove within such thirty (30) day period, or other time period as may 72500.00758 \9804535.1 DRAFT 5/26/15 -\v IQZT-3a5 be specified in this Amended Agreement or otherwise required by law for consent, that party shall then be deemed to have given its consent. If a party shall disapprove, the reasons therefor shall be stated in reasonable detail in writing. This Section does not apply to development approvals by the City. 13.3 Not a Public Dedication. Except as otherwise expressly provided herein, nothing herein contained shall be deemed to be a gift or dedication of the Property, or of the Project or any portion thereof, to the general public, for the general public, or for any public use or purpose whatsoever, it being the intention and understanding of the parties that this Amended Agreement be strictly limited to and for the purposes herein expressed for the development of the Project as private property. 13.4 Severability. If any term, provision covenant or condition of this Amended Agreement shall be determined invalid, void or unenforceable by judgment or court order, the remainder of this Amended Agreement shall remain in full force and effect, unless enforcement of this Amended Agreement as so invalidated would be unreasonable or grossly inequitable under all the relevant circumstances or would frustrate the purposes of this Amended Agreement. 13.5 Exhibits. The following Exhibits, to which reference is made herein, are deemed incorporated into this Amended Agreement in their entirety by reference thereto: Exhibit A Description of Project Exhibit B Legal Description of the Property 72500.00758 \9804535.1 DRAFT 5/26/15 =w DRAFT: 13.6 Entire Agreement. This written Amended Agreement and the Exhibits hereto contain all the representations and the entire agreement between the parties with respect to the subject matter hereof. Except as otherwise specified in this Amended Agreement and the Exhibits hereto, any prior correspondence, memoranda, agreements, warranties or representations are superseded in total by this Amended Agreement and Exhibits hereto. 13.7 Governing Law; Construction of Agreement. This Amended Agreement, and the rights and obligations of the parties, shall be governed by and interpreted in accordance with the laws of the state of California. The provisions of this Amended Agreement and the Exhibits hereto shall be construed as a whole according to their common meaning and not strictly for or against any party and consistent with the provisions hereof, in order to achieve the objectives and purposes of the parties hereunder. The captions preceding the text of each Section, subsection and the Table of Contents hereof are included only for convenience of reference and shall be disregarded in the construction and interpretation of this Amended Agreement. Wherever required by the context, the singular shall include the plural and vice versa, and the masculine gender shall include the feminine or neuter genders, or vice versa. 13.8 Signature Pages. For convenience, the signatures of the parties of this Amended Agreement may be executed and acknowledged on separate pages which, when attached to this Amended Agreement, shall constitute this as one complete Amended Agreement. 72500.00758\9804535.1 DRAFT 5/26/15 -\v I17:7_\a5 13.9 Time. Time is of the essence of this Amended Agreement and of each and every term and condition hereof. 13.10 Prevailing Party's Attorney's Fees and Costs. If any party to this Amended Agreement shall fail to perform any of its obligations hereunder, or if a dispute arises with respect to the meaning or interpretation of any provision hereof or the performance of the obligations of any party hereto, the defaulting party or the party not prevailing in such dispute, as the case may be, shall promptly pay any and all costs and expenses (including without limitation, all court costs and reasonable attorneys' fees and expenses) incurred by the other party with respect to such to such dispute or in enforcing or establishing its rights hereunder. Notwithstanding the foregoing, City shall not be required to pay any costs or expenses (including without limitation, reasonable attorneys' fees and expenses) which Developer may incur in respect of any hearing held pursuant to Section 7 hereof. IN WITNESS WHEREOF, the parties have executed this Amended Agreement as of the date and year first above written. DEVELOPER: EL PASEO HOTEL, LLC, a California limited liability company By: _ Name: Title: 72500.00758\9804535.1 DRAFT 5/26/15 -\ v DRAFT: By: _ Name: Title: 72500.00758 \9804535.1 DRAFT 5/26/15 -w DRAFT: CITY: CITY OF PALM DESERT, CALIFORNIA, a municipal corporation organized and existing under the laws of the State of California 2 Attest: Rachelle Klausen, City Clerk 72500.00758 \9804535.1 DRAFT 5/26/15 -\v Mayor DRAFT: State of California County of Riverside On basis of before me, a notary public, personally appeared who proved to me on the satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) 72500.00758 \9804535.1 DRAFT 5/26/15 -` V I01X-1a6 State of California } County of Riverside On , before me, a notary public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) 72500.00758 \9804535.1 DRAFT 5/26/15 -\v DRAFT: EXHIBIT "A" DEVELOPMENT PLAN/PROJECT DESCRIPTION The Development Plan and Project Description shall consist of the following: 1. The Developer shall develop, build and operate a Four -Star boutique hotel with a maximum of 154 units/keys as specifically described in the City's approvals of DA 15-087, PP 15-087 and CUP 15-087, and the site plans and operating memorandum approved therein. 2. The maximum number of keys for the Project shall not exceed one hundred fifty four (154). The Project also includes one hundred and fifty (150) underground parking spaces, eight (8) surface level parking spaces, a restaurant area, gift shop, conference and meeting rooms, spa, and amenities including an outdoor pool and bar. 3. Subsequent land use approvals in accordance with the terms of this Development Amended Agreement. 4. The Project is located at 45-400 Larkspur Lane, Palm Desert, California, APNs 627-262-008 and 627-262-011. 72500.00758\9804535.1 DRAFT 5/26/15 =w DRAFT: EXHIBIT B LEGAL DESCRIPTION OF PROPERTY ALL OF LOTS 6 AND 7, A PORTION OF LOT 1 AND A PORTION OF LOT 5 IN BLOCK Q OF PALM DESERT UNIT NO. 1, AS PER MAP RECORDED IN BOOK 21, PAGES 50 TO 54 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 7; THENCE ON THE EASTERLY LINE OF SAID LOT 7 AND ITS SOUTHERLY PROLONGATION, SOUTH 0°08'35" EAST, 400.00 FEET TO THE NORTHERLY LINE OF SHADOW MOUNTAIN DRIVE, 60.00 FEET WIDE; THENCE ON SAID NORTHERLY LINE, 500 SOUTH 89044'35" WEST, 199.96 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 20.00 FEET; THENCE NORTHWESTERLY ON SAID CURVE THROUGH A CENTRAL ANGLE OF 90006'50", A DISTANCE OF 31.46 FEET TO THE EASTERLY LINE OF LARKSPUR LANE, 60 FEET WIDE; THENCE TANGENT TO SAID CURVE AND ON THE EASTERLY LINE, NORTH 00008'35" WEST, 379.96 FEET TO THE NORTHWEST CORNER OF SAID LOT 7; THENCE ON THE NORTHERLY LINE OF SAID LOT 7, NORTH 8944'35" EASTER, 62.11 FEET; THENCE LEAVING SAID NORTHERLY LINE, NORTH 66004'55" EAST, 96.85 FEET; THENCE NORTH 73015'25" EAST, 36.83 FEET; THENCE SOUTH 13049'41" EAST, 19.88 FEET; THENCE SOUTH 12031'53" WEST, 30.76 FEET TO THE AFOREMENTIONED NORTHERLY LINE OF LOT 7; THENCE ON SAID NORTHERLY LINE, NORTH 89044'35" EAST, 36.01 FEE TO THE POINT OF BEGINNING. 72500.00758\9804535.1 DRAFT 5/26/15 -\v " CejA, Eric From: Robert Leach [leachhotels@gmail.com] Sent: Saturday, April 18, 2015 12:02 PM To: Alvarez, Martin; Bagato, Tony; Ceja, Eric; Moore, Ruth Ann; DAVE WORLOW Subject: [SPAM] - El Paseo Hotel - Modifications & Compliance Attachments: El Paseo Hotel - Schedule 4-18-15.pdf; Revised Site Plan & Floor Plans 4-18-15.pdf; Original Approved Site Plan.jpg; EPH Project Overlays.pdf; EPH Renderings 3-24-15.pdf Eric, Pursuant to my conference call on Thursday I have attached the following documents to assist the City Attorney in his review of our compliance to the approved Development Agreement. The documents are as follows: 1. EPH Project Schedule 2. Revised Floor Plan - Post ARC Meeting 3. Original Approved Site Plan 4. EPH Project Overlays 5. EPH Renderings 2015 (to be changed to 3-stories) We are requesting that the Planning Administrator and City Attorney approve our request to move forward with the revised project under the original Development Agreement based on substantial compliance, lessening of impacts, and benefit to the public. After our review of the Development Agreement and the initial meeting with the Architectural Review Committee we made the following changes: The density is reduced with the overall number of units reduced from 154 to 150. 2. The development of condominiums has been eliminated (I6-condosw/ 3 lockout bedrooms each) thereby reducing the traffic impacts and need for parking stalls from 203 to 150 per current City code. 3. The overall massing on the site has been reduced by approximately 50% creating more open space and less visual obstruction. 4. The height of the building will be at the approved level for the hotel 37' to the parapet and 42' to the towers (architectural elements). The height is measured per Title 25 of the Municipal Code and as presented in the original entitlement to the public. 5. The Four -star hotel is maintained. 6. The cooling station for the public maintained. 7. The hotel will be designed to LEED Silver standards or better. 8. Rooftop pools and bars are eliminated reducing potential noise impacts. 9. A screen wall is being added around the east and south side of the hotel per the request of residents. 10. The restaurant & bar has been relocated to the northwest corner of the building away from residential neighbors. The number one request by residents at the ARC meeting was that we lower the building height from our initial proposal of 46'6". We have complied. By converting thz project to all hotel rooms the City will benefit from the year round transient occupancy taxes. The El Paseo Shopping District will benefit from an increase in tourism and potential shoppers. The removal of the condominiums creates better public use of a unique piece of City property originally purchased with the specific intent for a hotel. Financing for ground up hotel projects is still very difficult particularly in a seasonal desert market. Neighboring cities have gone to great lengths to provide heavy financial incentives to offset the costs. The El Paseo Hotel has a solid financial base but would be negatively impacted if delayed and forced to open at the end of the desert "high season". Both the City and the Developer were already delayed waiting for State Finance Department approval for the sale of the property. The current schedule (attached) is based on an Architectural Review Commission approval, City Council review of the architecture and then directly to building permits allowing the hotel to open in December 2016. There should be no need to go to the Planning Commission since we are not asking for a variance from the original DA. The design changes have lessened impacts on the surrounding neighbors and created a much better hotel. The revisions to the floor plans, circulation and operational features have allowed the hotel to secure a luxury brand (Autograph Collection) from Marriott Corporation providing the hotel with the strongest reservation system in the world. We appreciate your review. Sincerely, Robert A. Leach President West River Inc. Cell# 916 798-3649 robert(cbwestriverinc.net www. WestRiver. info This electronic message and any accompanying attachments are intended only for the use of the individual or entity named above as the recipient and may contain privileged, confidential and personal information protected by attorney -client privilege, attorney work product privilege, obligations of confidentiality or applicable law. Any use, disclosure, distribution or reproduction of this message or its contents (including any attachments) (a) by any person other than the named recipient, (b) for any purpose other than its intended purpose, or (c) without the consent of the sender, is unauthorized and strictly prohibited. May 27, 2015 I I Y Of Pfl[M 7 3 - 5 1 0 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346-o6zz info@cityofpalmdesert.org ARCHITECTURAL REVIEW COMMISSION ACTION CASE NO: DA/PP/CUP 15-87 / Amendment to DA/PP/CUP 07-11 APPLICANT AND ADDRESS: EL PASEO HOTEL, LLC, Attn: Robert Leach, 3941 Park Drive, Suite 20-308, El Dorado Hills, CA 95762 NATURE OF PROJECT/APPROVAL SOUGHT: Consideration to preliminarily approve a new design for a previously approved hotel; Ell Paseo Hotel LOCATION: 45-400 Larkspur Lane ZONE: C-1 & R-3 Upon reviewing the plans and presentations submitted by staff and by the applicant, the Architectural Review Commission granted preliminary approval. Date of Action: May 25, 2015 Vote: Motion carried 7-0-1, with Commissioner Vuksic absent (An appeal of the above action may be made in writing to the City Clerk of the City of Palm Desert within fifteen (15) days of the date of the decision. Any amendments to this approved plan would need to be re -submitted to the Commission for approval.) STAFF COMMENTS: by the Architectural and Safety. It is your responsibility to submit the plans approved Review Commission to the Department of Building ; I► � IlllltlO OM If!!(1f0111f1 CITY DE P I DESERT 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346-o6 i i info@citvofpalmdesert.org ADDENDUM TO THE MITIGATED NEGATIVE DECLARATION FOR AMENDMENTS AND MODIFICATIONS TO PRECISE PLAN 07-11 AND CONDITIONAL USE PERMIT 07-14 FOR A THREE (3) STORY CONDO -HOTEL DEVELOPMENT ON A VACANT TWO (2) ACRE PARCEL AT THE NORTHEAST CORNER OF LARKSPUR LANE AND SHADOW MOUNTAIN DRIVE INTRODUCTION: On July 10, 2008, the City Council of the City of Palm Desert approved Ordinance 1158 and Resolution 08-60 for Development Agreement 07-02, Precise Plan 07-11, Conditional Use Permit 07-14, and a Mitigated Negative Declaration (MND) for the development of a three (3) story, four star, condo -hotel at the northeast corner of Larkspur Lane and Shadow Mountain Drive. The project is being modified by the applicant and no new significant impacts are expected from the modifications. This Addendum addresses the proposed modifications to the project design. STATUTORY REQUIREMENTS: The California Environmental Quality Act (CEQA) allows for the preparations of Addendums to a certified Environmental Impact Report (EIR) or Negative Declaration if changes or modifications to the project occur (CEQA Guidelines Section 15164). Pursuant to these guidelines, an Addendum to a MND is appropriate if physical circumstance on the property have not changed, or new information of substantial importance becomes available that results in new significant impacts or a substantial increase in the severity of previously identified significant impacts. The addendum need not be circulated for public review; however, an addendum is to be considered by the decision making body prior to making a decision on the project. This Addendum to the MND demonstrates that the environmental analysis, impacts, and mitigation requirements remain substantively unchanged by the proposed modifications to the plan. This Addendum supports the findings that the proposed project does not result in any new impacts and does not n t. J* PRINT DON RFcrnm ruts exceed the level of impacts identified in the previous MND due to the project modifications, physical changes on the property or new information. PROJECT DESCRIPTION: The project is located on a vacant two (2) acre parcel at the northeast corner of Larkspur Lane and Shadow Mountain Drive. The applicant is proposing the following modifications to the originally approved condo -hotel development: • Eliminate all condominium rooms and replace them with hotel rooms • Eliminate the roof -top bar and pool area and place them at ground level • Reduce the total hotel room count from 154 rooms to 152 rooms • Reduce the total number of parking stalls from 203 to 150 • Reduce the building massing and footprint by nearly 40% • Reduce the building square footage from 114,000 square feet to 98,000 square feet • Increase perimeter building setbacks on the north, south, and west property lines • Create a new landscape buffer on the north and south property lines • Redesign the vehicle circulation pattern to reduce vehicle use and dependence on surrounding public streets The proposed use of the site for a four -star hotel remains unchanged. The proposed modifications to the hotel design conform to the previously approved development standards for the site including the maximum building height limitation. The new design will also increase building setbacks along the north, south, and west property lines, and redesign the vehicle circulation pattern to reduce traffic impacts on surrounding streets. These modifications lessen traffic impacts, lessen the imposing impacts of the previously approved building massing, and better integrate the hotel design into the surrounding properties. PROJECT LOCATION: Northeast corner of Larkspur Lane and Shadow Mountain Drive. EVALUATION OF MODIFICATIONS: The proposed changes to the project conform to the originally approved Development Agreement and development standards contained in that document. The Initial Study and MND approved on July 10, 2008, evaluated the impacts of a 114,000 square foot, three-story, condo -hotel development with 106 hotel rooms and 48 condominium units. The Initial Study identified potential significant impacts related to aesthetics, noise, and soils and recommended mitigation to reduce those impacts below a level of significance. CITY OF PALM DESERT Aesthetics — The MND identified, that since the site is currently vacant, that any new construction at the site will alter views to the surrounding properties. Mitigation was also required to reduce lighting impacts to surrounding properties. The proposed modifications to the hotel development will not increase the severity of the identified significant impacts since conditions on the development will ensure project lighting conforms to the City's Outdoor Lighting Ordinance. In addition, construction of a hotel at the site will still impact existing views from surrounding properties; however, the reduction in the building massing and building footprint will lessen this impact when compared to the originally approved building design. Noise — Noise impacts resulting from the construction of a hotel at the site were identified in the MND. Mitigation was approved to limit construction activity to hours prescribed in the City's Building Code. Modifications to the project design will not result in a change to the prescribed construction hours and no new noise impacts are expected from the modifications to the hotel design. Mitigation was also approved to address noise impacts created from the roof -top pool and bar. These amenities have been relocated from the roof -top to the interior of the hotel and ground level at the site. A condition is placed on the Conditional Use Permit to limit pool hours to those recommended in the MND to further reduce noise impacts generated from activity at the pool. The level of impact has therefore been reduced since noise impacts generated from the pool will be screened by an eight -foot high block wall and landscaping, and pool hours will be limited. The bar is relocated to the hotel interior and no new significant impacts are generated by these modifications to the hotel design. Geology and Soils — The MND identified mitigation for the disruption of soils at the vacant site during the construction of the hotel. Modifications to the hotel design do not result in changes to the soil condition during construction activity at the site. Approved mitigation, including dust control measures during hotel construction, construction of the hotel to UBC standards, and connecting the development to the surrounding sewer system, are unchanged by the modifications to the hotel design. It can be reasonably concluded that no new significant impacts related to geology and soils are generated by the modifications to the hotel design. SUMMARY OF FINDINGS: Pursuant to the State CEQA Guidelines contained in the California Code of Regulations Title 14, Chapter 3, Section 15163, the City of Palm Desert Community Development Department (City) has reviewed the proposed modifications to the project and finds that CITY OF PALM DESERT these documents reflect the independent judgment of the City. The City, as lead agency, confirms that the proposed changes to the project do not create any new significant impacts and that the originally adopted MND is sufficient to reduce any potentially significant environmental impacts without the need to prepare any subsequent documents. All of the potential impacts identified on the CEQA "Environmental Checklist Form" were considered. For all impact areas, staffs review indicates that the proposed project modifications are consistent with the original intent of the project, and no physical changes have occurred on the property that would change the environmental analysis. Traffic, aesthetics, noise, soils, and other environmental conditions have not changed since the adoption of the MND approved by Council in 2008. Many of the modifications to the project design will reduce impacts regarding traffic circulation on surrounding streets, massing and aesthetic impacts to surrounding properties, and reduced noise impacts by elimination of the roof -top pool and bar. Therefore, the project will have no new significant impacts or increase the severity of previously identified significant impacts. The analysis concludes that none of the conditions described in Section 15162 of the CEQA Guidelines calling for preparation of a subsequent EIR or Negative Declaration have occurred and an Addendum to the Larkspur Hotel MND is appropriate to satisfy the CEQA requirements of the proposed project modifications. This addendum is written as an addition to the El Paseo / Larkspur Hotel Mitigated Negative Declaration, adopted on July 10, 2008. A copy of this document is available for review at the City of Palm Desert Community Development Department at 73-510 Fred Waring Drive, Palm Desert, CA 92260. ERIC CEJA Associate P nner Date CITY OF PALM DESERT C I INITIAL STUDY CASE NOS. CASE NOS. DA 07-02, PP 07-11, AND CUP 07-14 ENVIRONMENTAL EVALUATION CHECKLIST COMMENTS AND POSSIBLE MITIGATION MEASURES (CATEGORIES PERTAIN TO ATTACHED CHECKLIST) AESTHETICS a. The site is currently vacant; therefore any new construction will alter the views to the surrounding property owners. d. New light will be produced but the project will be required to prevent lighting spill over. In addition, the requirement for an engineered lighting plan per Ordinance No. 826 will assure that this condition is fulfilled. II. AGRICULTURAL RESOURCES a, b, c. The site is vacant desert with minor amounts of native desert vegetation. The site has never been used for agricultural purposes nor shown on maps as agricultural. III. AIR QUALITY a&b. During construction, particularly grading, a potential dust problem is a short-term impact. Requiring that the ground be watered during days in which grading occurs will mitigate this problem. City of Palm Desert Grading Ordinance requires this. Because the site is already an urbanized setting its development will not result in an overall deterioration of ambient air quality. Completed development of the site will result in less dust leaving the site then currently occurs with the site's vacant condition. C. Development of this site will not result in any climatic changes. This is due to its size and identified uses. d. The proposed development does not call for uses that would create substantial pollutant concentrations. e. The proposed development does not call for any odorous land uses. INITIAL STUDY DA 07-02, PP 07-11, AND CUP 07-14 IV. BIOLOGICAL RESOURCES a. The project is located within the City's commercial core and will not impact any habitat or biological resources. b. No riparian habitat present on site. C. No wetlands habitat present on site. d. No migratory fish or wildlife present on site. e. No local policy or ordinance protecting biological reserves other than that delineated in item (a) above. f. N/A V. CULTURAL RESOURCES a-d. A field study found no evidence of any cultural, archeological or historical significance on this site. In addition, state law requires that should any evidence be found during construction, construction must cease and the site cleared. VI. GEOLOGY AND SOILS a (1-iv). The area is subject to earthquakes and seismic shaking. Various studies have concluded that with proper building design, which is required by the Uniform Building Code, people will not be exposed to substantial adverse effects. MITIGATION MEASURES The City of Palm Desert grading and building permits procedures required detailed geotechnical reports addressing grading specifications and the settlement and expansive characteristics of on site soils. All structures must be designed to UBC requirements to insure that buildings are constructed within the acceptable level of risk set forth herein for the type of building and occupancies being developed. b. Development will reduce blow sand erosion, which is common in this area. There is no topsoil present. C. See mitigation measure above. d. See mitigation measure above. 2 INITIAL STUDY DA 07-02, PP 07-11, AND CUP 07-14 e. Sandy soil is capable of supporting septic tanks but they will not be used, as sewers are available. VII. HAZARDS AND HAZARDOUS MATERIALS a. Site and immediate area are not subject to routine transport, use or disposal of hazardous materials. b. Project will not create health hazards or potential health hazards. C. There is no school within 1/4 mile of the site. d. The site has not been identified on the list of hazardous materials sites. e. Site is not within two miles of a public airport. f. No private airstrip in area. g. Project will not interfere with city's emergency response or evacuation plan. h. Project will not increase the fire hazard in area with flammable brush, grass or trees. Vill. HYDROLOGY AND WATER QUALITY While any development results in the use of water and therefore reduces the amount otherwise available for public water supplies, the Coachella Valley Water District assures that there is a sufficient water supply to accommodate this growth. In addition, the Coachella Valley Water District plans to construct additional water facilities in the Palm Desert area to accommodate current and future development. a. Project will be required to comply with Palm Desert Master Plan of Drainage and the grading ordinance. b. Project will use water provided by CVWD and will not interfere with groundwater recharge. c, d, e. Water will be redirected to drainage facilities designed and constructed to accept the water from the site. f. Project will not substantially degrade water quality. g. Site is not within a 100-year flood hazard. t1 INITIAL STUDY DA 07-02, PP 07-11, AND CUP 07-14 h. See (g). Area is not subject to flooding. j. Area is flat desert land not subject to seiche, tsunami or mudflow. IX. LAND USE AND PLANNING a. The site is zoned for the proposed use. b. Project is consistent with the General Plan and zoning. C. Property is not subject to habitat conservation plan or natural community conservation plan, other than that discussed in Section IV (a1). X. MINERAL RESOURCES a. No known mineral resources. b. No locally important mineral resource recovery site delineated on local general plan. XI. NOISE a, b, c, d. ■ Construction of the project will increase ambient noise level. The increase is not expected to create an annoyance to adjacent residential properties. All uses on the site will be required to comply with the city noise ordinance. ■ A hotel project adjacent to residential development may have negative noise impacts. The developer is concerned about noise just as much as staff is because noise from hotel guests will negatively impact the operations of the hotel as much as it will impact the surrounding neighborhood. Noise complaints from hotel guests will result in complaints, refunds and a negative image. It is in the hotel's best interest to regulate and control any potential noise problems. MITIGATION MEASURES •I INITIAL STUDY DA 07-02, PP 07-11, AND CUP 07-14 o Strict adherence to construction hours and days will be required. Additional measures to mitigate traffic and operational noise will be required. Noise levels will be mitigated so that the General Plan Noise Element limits are not exceeded. o Eleven of the 16 condominium suites are designed with roof decks that include a spa. The suites along the east property line were specifically designed without the roof decks because they are adjacent to residential condominium owners. For the 11 suites with a roof deck, a condition of approval has been added to the project prohibiting hotel guests from using the roof decks after 10:00 pm Sundays through Thursdays and after 12:00 am on Fridays and Saturdays. This condition will implement a quiet time to reduce noise impacts to the adjacent property owners. e & f. Project is not within two miles of a public airport or in vicinity of a private airstrip. XII. POPULATION AND HOUSING a-c. The proposed project is for a new boutique hotel with 16 condominium units. The condominium map will be processed as part of a separate approval and is for financing purposes only. The project is not intended to house permanent residences. XIII. PUBLIC SERVICES The property is presently vacant and serves no productive use. A commitment to urban uses was made as the area surrounding the study area has been developed, and the general plan and zoning maps designated for a planned community development. Infrastructure improvements (i.e., streets, utilities) will be installed by the developer. The proposed land use would increase the economic productivity of the land in terms of land efficiency and greater economic return generated from these uses, versus the current state of the land. Fire and Police Protection Police and Fire service has indicated that they can service the proposed project. Schools The project will be required to pay school mitigation fees per state law at time of building permit issuance. Parks 9 INITIAL STUDY 'DA 07-02, PP 07-11, AND CUP 07-14 The project will not impact parks. Other Public Facilities Libraries and other public facilities are adequate to serve the project. XIV. RECREATION The hotel project will bring new tourism and visitors to the valley. They project is providing on -site amenities and will not increase the use of current parks or recreational facilities within the area. XV. TRANSPORTATION/TRAFFIC a-b. As part of the project, the applicant provided a traffic analysis report to determine and evaluate any potential negative traffic impacts to the surrounding neighborhood and local intersections. The first report was submitted on April 7, 2008 and a revised report was submitted on May 5, 2008. The revised report is included as an attachment to the staff report. The City's General Plan established a Level of Services (LOS) "C" as the minimum acceptable condition for traffic flow during peak hours. Currently, the surrounding intersections and roadways operate at LOS C during peak hours. The proposed project is anticipated to generate approximately 1,258 trips per weekday with 94 trips during the midday peak hour and 91 during the PM peak hour. On a Saturday, the anticipated trip generation is 1,261 trips with 111 trips during the midday peak hour. Based on this report, the anticipated trips per day from the project will result in an increase of no more than 1.5 additional vehicles per 60 seconds during midday and PM peak hours and no more than 2 vehicles per 60 seconds during the Saturday peak hour. The report indicates that the LOS for the roadways and intersections will continue to operate at a LOS C, which is consistent with the City's General Plan. There are no negative traffic impacts from the proposed hotel. C. Project will not change air traffic patterns. d. Street design and intersections will be designed to meet all city standards and the project will not include incompatible uses. e. Emergency access will be acceptable. 0 INITIAL STUDY DA 07-02, PP 07-11, AND CUP 07-14 f. There will be a demand for additional parking facilities, which will be supplied by the project on site in compliance with city code. g. Off street sidewalks will be provided for pedestrians and bicyclists and the project is within walking distance to the City's commercial core. XVI. UTILITIES AND SERVICE SYSTEMS a. Project will not exceed limits. b. CVWD has indicated ability to serve this project. C. Construction of said facilities is currently under review. They will occur with or without this project. d. See (b) above. e. See (b) above. f. Landfill space is available in the immediate area and long term will be available at Eagle Mountain. g. City will enforce these statutes through Environmental Conservation Department. XVII. MANDATORY FINDINGS OF SIGNIFICANCE a. See IV (a). b. None. C. None. 7 m 3r oD m go r O 0 z a � m r- D D D D D D D D D (n m m D r r m O A D— mm O n Z vNi«��n�mz p z�� 0= D z m, m 056z om m mz x zCf) OOpv� O 00 O D n �1 �1 �7 ;Z Z Z Z C x Z mr O � Z D m rCf) -4 -I C C O m D c EL PASEO I 1 a � I, I C. I� i .:e r ni m ji c Z m I I c 1 I I I I \I ..-. ___ �• _.. 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