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Home My WebLink About23C DSRT SURF powerpointDSRT SURF City Council January 27, 2022 VICINITY Cook Street BACKGROUND Amended DSRT SURF Project (Specific Plan, Precise Plan, Tentative Tract Map, DDA, and addendum to the EIR): •Architectural Review Commission –Recommendation of approval with conditions on April 27, 2021 1 Public comment received expressing concerns mainly with water assessment & consumption •Planning Commission –Recommendation of approval to the City Council on December 21, 2021 1 Public comment received in support at the public hearing November 19, 2019, City Council approved the following: •DSRT SURF Specific Plan (SP 18-0002) •Precise Plan (PP 18-0009) –Planning Area 1 only •Tentative Tract Map No. 36379 •Disposition and Development Agreement (DDA) •Certified the Environmental Impact Report (EIR) & adopted Mitigation Measures DSRT Surf (Project Comparison) Scope of Development Current Entitlement Amended Application Delta Surf Lagoon 5.5 Acres, Wave Garden 5.5 Acres, Wave Garden No Change Surf Center 31,800 sq. ft. Surf Center and Amenities 8,757 sq. ft. Surf Center and Clubhouse (Amenities have been relocated to the Hotel and 15,674 sq. ft. Hotel deck) -7,369 sq. ft. Hotel 130 (min) Hotel Room Keys 92 (min) Hotel Room Keys -38 keys (Hotel) 70 (min) Villa Keys (units plus lock offs)33 (min) Villa/50 Stacked Condos (plus lock offs)+13 keys (villas) Hotel Quality STR Upper Upscale or Luxury Brand AAA Four Diamond Hotel Increase Must carry flag of major hotel brand (Marriott, Hilton, Hyatt) Independent boutique or major hotel brand (Marriott, Hilton, Hyatt)No Change $44,500 (min) FF&E and OS&E if Boutique/Independent Operator $46,050 (min) FF&E and OS&E if Boutique/Independent Operator +$1,550 Hotel Operator: 10 yrs (min) experience at appropriate quality Hotel Operator: 10 yrs (min) experience at appropriate quality if Boutique/Independent No Change Multiple restaurants, spa facilities, pool facilities, group meeting space Multiple restaurants, spa facilities, pool facilities, group meeting space No Change Villas 35 –88 units 83 total units: 33 Villas, 50 Stacked condos, private club house and amenities -5 units Parking 86 suspended deck surface stalls for Surf Center and DW overflow Parking Structure -Surf Center & DW Overflow: 151 stalls Hotel parking per code: 130 stalls Hotel: 30 on-site stalls / 62 off-site (92) 160 underground stalls for Surf Center and DW overflow Surface Parking -Surf Center and DW overflow: 96 on-site surface stalls 288 surface stalls off-site (mitigation requirement) 226 surface stalls off-site (mitigation requirement) Total Parking: 464 stalls Total Parking: 565 stalls (473 public)Totals: '+101 SPECIFIC PLAN AMENDMENT NO. 1 (Land Uses, Development Standards, and Design Guidelines) Land Uses Development Standards Design Guidelines •“Desert Mid-Century Modern”theme architecture, drought tolerant landscape, lighting, and signage remain unchanged. •No Major Land Use Changes Land Use Max/Min Allowed Surf Lagoon Max 6 acres Surf Center Max 35,000 SF Hotel(s) Max 350 rooms Villas 15 units per acre/88 villas max. Villa Clubhouse Max 3,125 SF Maintenance and Equipment Buildings Max 15,000 SF Landscaping/OS/Pool /Recreational Minimum 20% Planning Area •Proposed Changes: Development Standards 2019 2021/2022 Building Height 50 feet/ 4 Stories 50 feet + 10 feet additional for parapets, towers, & similar elements 50 feet + 15 feet additional for roof stairs & elevators Setbacks for Stacked Flats None New housing type introduced Indoor/Outdoor Music Events: Friday through Sunday 7 days a week No. of Surfers (maximum)75 occupants 70 occupants PRECISE PLAN Land Use Description 2021/2022 Development Intensity Surf Lagoon •5.5-acre surf lagoon •Control/Lifeguard Tower (429 square feet) •Beach area, boardwalk, and support facilities. Site Amenities •Surf Center (7,263 square feet) •Clubhouse (approximately 1,494 square feet) •Kids Play area •Pickle Ball Court/Crane Pad •Pump Track •Pools/Spas Hotel One (1) Hotel operator •92 rooms •2,217 SF Restaurant •955 SF Bar •885 SF Spa •920 SF Fitness Center •1,229 SF Flex Space •2nd Level Amenity Deck Residential 83 Residential units with two (2) housing types •50 stacked flats •33 villas 2019 Building Architecture-Hotel North Elevation Hotel –1st Floor Plan Building Architecture-Surf Center Height: 26 feet Building Architecture-Lagoon Tower Height: 26 feet & 7 inches Building Architecture-Maintenance Height: 24 feet Building Architecture-Stacked Flats Height: 37 feet & 9 inches Building Architecture-Villas Height: 26 feet & 6 inches to 33 feet & 6 inches Building Architecture-Club House Height: 24 feet & 6 inches Landscape Trees Shrubs TENTATIVE TRACT MAP Parcel Size Use Parcel 1 9.27 acres Surf Lagoon Parcel 2 2.54 acres Hotel/Surf Center Parcel 3 2.95 acres Stack Flats Parcel 4 0.74 acres Villas Parcel 5 2.19 acres Stack Flats Total 17.69 acres CEQA Addendum to EIR –reviewed changes to the Specific Plan and analyzed Proposed Plan.The addendum compared the currently proposed project and the impacts in the EIR was found to have less than significant impacts. •Water Supply Assessment (WSA): 2019 WSA,gross water demand of 165.21 acre-feet per year (AFY)and net water demand of 58.46 AFY with the turf removal and replacement with desert landscaping. 2021 WSA,gross water demand of 114 .35 acre-feet per year (AFY)and net water demand of 7.6 AFY after accounting for the turf removal and replacement with desert landscaping. In perspective, the “7.6 AFY is equivalent to the annual water demands of 58 residential units.” •Conversion of Desert Willow (Turf Reduction Program): Removal -One (1)million square feet of turf within the Desert Willow Golf Courses Replacement with drought-tolerant planting materials and low water usage irrigation systems Surf Lagoon Water Demand Evaporation Rate (annual) DSRT SURF (WSA)16.48M gallons CVWD (Standard Factor)8.28M gallons Disposition and Development Agreement (DDA) Approved in 2019 Revised and Restated in 2022 to address project changes Land Sale Disposition of 3-ac of City land (DW parking area) Disposition of 14.6-CA of SARDA land (Parcel B of LRPMP) Acquisition of Public Improvements (use of Bonds Funds) $20M for 473 public parking space of Desert Willow Golf Resort Transient Occupancy Tax (TOT) rebate $16.1M over 20-years Schedule of Performance Disposition and Development Agreement (DDA) Acquisition Agreement (Attachment No. 7 of DDA) $20M for 473 public parking space of Desert Willow Golf Resort 151 structure parking spaces 96 surface parking spaces 226 off-site public parking spaces Former RDA Bond Proceeds from Project Area 2 and 3 Payment is contingent on City Inspections and acceptance of improvements Project Milestones City “Look Back” at construction completion Disposition and Development Agreement (DDA) Payment of the $20M is provided in Exhibit BDrawPublic Parking Surf Lagoon and Center Hotel RESIDENTIAL UNITS 1st-$5M 30% construction cost of podium Parking Structure 100% rough grading complete Commence foundation upon fully approved and issued building permits for the entire Hotel 2nd-$5M 60% of construction cost of podium Parking Structure 100% Foundations Complete Completion of 60% of Hotel Parking 3rd-up to $5M 100% completion of all Public Parking and compliance with the Acquisition Agreement 100% of Surf Lagoon floor completed and surf equipment on site Completion of rough framing construction of the Hotel 4th-up to $3M 100% of all other public infrastructure and compliance with the Acquisition Agreement 100% complete certificate of occupancy for Surf Lagoon and Center approved 100% complete certificate of occupancy for Hotel approved 5th-up to $2M 4th Payment has been made, and City “look-back” approval of actual Project Costs in Section 4.5(d) and in compliance with the Acquisition Agreement 100% complete Certificate of Occupancy for Residential Units Disposition and Development Agreement (DDA) Transient Occupancy Tax (TOT) Reimbursement (Attachment No. 8 of DDA) $16.1M over 20-years 40% of TOT Reimbursement for Hotel 60% of TOT Reimbursement for Villas Requires AAA 4 Diamond If standard lapse reimbursement falls to 20% After 9-months reimbursement falls to 0.0% Amount was determined from review of project pro forma Shows a feasibility gap of $24.7M for hotel and villa development Over 20-years City expected to receive: $39M in TOT $2.2M in Sales Tax $1.3M in Property Tax 42.5M in City Revenues City expects $26.5M over 20-years after TOT Reimbursement Disposition and Development Agreement (DDA) Schedule of Performance Submit Construction Drawings –March 31, 2022 Rough Grading Plan Approval –April 30, 2022 Submit construction contracts –August 31, 2022 Close Escrow –October 31, 2022 Construction completion estimated in 24-months Recommendation Waive further reading and adopt the following City Council Resolution in support of the DSRT SURF Project: Adopt City Council Resolution No.approving Case Nos.Amendment No.1 to SP 18-0002,PP 18-0009,TTM 37639,and an addendum to the EIR for the DSRT SURF Project,subject to the conditions of approval. By Minute Motion: Approval of a Revised and Restated Disposition and Development Agreement (DDA)between the City of Palm Desert and Desert Wave Ventures,LLC. Approval of a Transient Occupancy Tax (TOT)Agreement as-to-form with Desert Wave Ventures,LLC,in an amount not to exceed $16.1 million for the operation of a 92-room AAA four-diamond hotel located on Parcel B within the Desert Willow Golf Resort. Authorize the Mayor to execute said Agreements. Authorize the City Manager to make non-substantive changes to the DDA and TOT Agreement as needed prior to execution by the Mayor. Authorize the City Manager to draft,negotiate,and execute other supporting agreements that may be required by the DDA,including an Acquisition Agreement as to form and the attached City Cost Reimbursement Agreement as to form. Authorize the City Manager to execute said agreements. Appropriate $20 million to Fund 451 for costs associated with the public improvements at identified sites of the Project.These funds are reimbursable from the associated residual bond proceeds and controlled by the attached Acquisition Agreement as-to-form. Disposition and Development Agreement (DDA)