HomeMy WebLinkAbout2022-02-01 PC Regular Meeting Agenda Packet
SUPPLEMENTAL
INFORMATION
ttt
January 27, 2022
Eric Ceja
Deputy Director Development Services
City of Palm Desert
73 -5 10 Fred Waring Drive
Palm Desert, CA 92260
Subject: APN 694-510-013 and Housing Element Inventory
Dear Mr. Ceja:
I am writing to you on behalf of my client Freeway Lanes, LLC and the Subject property location
in the City of Palm Desert.
My office is in receipt of the city's letter addressed to my client dated October 29, 2021,
addressing the Regional Housing Needs Assessment for the State of California (RHNA).
I have reviewed the city's Housing Element Plan covering the period 2006 through 2014 and I
have attached hereto a copy of page 35 from the plan. The Subject APN is not listed on page 35.
I would like to bring to your attention the fact that it appears none of the Housing Element Plans
that have been made available and/or are found on the city's website have a date on them nor is
there any type of reference showing the iteration for the plans. No date or iteration on the plans
makes it complicated when trying to review and understand what took place and when.
During the last Planning Commission meeting and again in our subsequent telephone call January
25th, 2022, I mentioned that the Housing Element Plan downloaded from the city website covering
the period 2014 through 2021 does not list the Subject APN. Attached hereto is a copy of Page
III-49 from the Housing Element Plan where Table III-38 shows APN's subject to the Housing
Element and the Subject APN is not on the list.
During the planning commission meeting I was directed to the Draft Plan for 202(1)2-2029 where
the Subject Parcel now appears. The Subject APN is referenced as site "F", however, when
looking at page 78 of the same plan (copy attached and highlighted) the document states that "F"
is 66 units at Millennium, this is not our site. During the planning commission presentation of the
Draft Plan, the page entitled "Policy Direction" again listed site "F" as the 66-unit Millennium
site. I was told that this is a mistake.
44835 Portola Avenue, Palm Desert, CA 922601 Tel: 760.341.5100 1 www.CPMCRealty.com l DRE #0124582
Mr. Eric Ceja
January 27, 2022
Page 2.
The Subject APN was not listed and now it is, albeit, not listed correctly. How are we supposed
to determine whether the allocation is intended to be our site or not? Based on the preceding the
only conclusion I can come to is that the Subject APN was not to be on the list as evidenced by
the two (2) prior Housing Element Plans.
Please remember, over a year ago we had a meeting at the City's office where Mr. Whipple, Mr.
Busby, and I were informed at that time by you that there is requirement to build a minimum of
302 units on the site and no requirement for any low- or moderate -income units.
In a subsequent meeting several months later, again at the City's office, Liliana Figueroa from
my office and I met with Mr. Martin Alvarez and Ms. Jessica Gonzales to discuss the Housing
Element. During this meeting we were told that the Subject APN was on this list and that we had
to build affordable units. I said that we had not seen the Subject Parcel on the list and how did
this come to be between the time of our first meeting and the second meeting. I asked for how
the requirement came about, and I was not provided with anything that says there is a requirement
for the Subject APN to provide any affordable housing. Further, during this meeting I requested
to know how many units were expected to be affordable and Ms. Gonzales told me she would
need an estimated break down of the quantity of units, approximate square footages, and how
many one, two, and three -bedroom units etc.
Ms. Gonzales was supplied the requested information and as of our last inquiry as to when we
would get the information, I was informed the city wants us to provide our proforma financials
for the project. After making several inquiries it is my understanding that the only time a
Developer may have to provide a financial proforma to the City would be in an event where the
City was contributing funds to the project. If the City were contributing funds, then things like
financial proformas would be covered in a Development and Disposition Agreement "DDA".
There is currently no DDA for the Subject location.
January 25th, 2022 I received an email from you where you provided me with a copy of a memo
from the City's Attorney to you citing the City's constitutional rights and their rights related to
Police Powers etc. (copy attached) and this was forwarded to me in response to my questions
about how the affordable housing allocation came to be on the Subject APN. The memo says how
it may be done, but not that it was done, further suggesting that the Subject APN has not been
identified as being requested to provide affordable housing.
While I believe I understand the City's rights as explained by the City Attorney's memo, I still
have not heard, read, nor seen any evidence of how the Subject APN was added to the most recent
Draft Housing Element list. On the contrary based on what I have seen and read to date, it appears
to me, while the city has the right to add the site to the list I cannot find where it was decided that
the Subject APN became listed nor any explanation as to the reported mistake mentioned herein
above.
Mr. Eric Ceja
January 27, 2022
Page 2.
As I was finishing this letter and continuing to review the Draft Plan there are a couple of other
points which are important to note in the attached Draft Housing Element Plan.
1. Page III-78 shows the 66 units at Millennium, noted on the Plan as Map Key "F",
(which you have stated "F" is actually meant to be our site) and according to the report
it falls under Program IA in the report. When looking at Program IA neither our site
nor the Millennium sites are mentioned. Program 1A page III-4 shows 200 units at
Portola and Dinah Shore. Page III-5 states that the city is currently negotiating an
agreement for at least 200 units on 10 acres. This is not the Subject Site.
2. Page III-6 Program LC shows "Approximately 302 units at Dinah Shore and 35t'
Avenue (Southeast Corner, I believe this to be Dick Kelly)" and while this is the same
amount of units I was originally told that we needed to build without any requirement
for affordable housing, the Subject APN is located on the North side of the street.
Again, not the Subject APN.
Notwithstanding all of the above, it is my client's intention to submit a proposed Land Use Plan
for the Subject APN to you and City planning to further discuss this project. While my client
cannot find any specific requirements related to affordable housing, my client may be willing to
consider a reasonable percentage of the proposed moderate income units. If there is a requirement
to build affordable units at the low or very low rates, my client has said they will not likely
proceed with the project.
In conclusion, what I surmise from all of this is that the Subject Site as it stands today has no
specific "requirement" to build any number of affordable units, however, when we submit our
plans for the project the city may have a right to require some reasonable percentage of the units
to be affordable housing. In other words, it seems to all be discretionary.
I hope to have a Conceptual Land Use Plan and Summary available for the site before the end of
this week for informal review and input. I will ask, when I submit the plan, you to meet my team
and I either in person or via video conference as soon as possible. I will also ask that you include
any other staff you believe relevant to the process to attend the meeting.
If you have any questions, please contact me. I can be reached at (760) 341-5100.
Respectfully,
Mark Stein.
Mark Stein
TN/City of Palm Desert
General Plan/Housing Element
been identified to accommodate all housing types. The City will continue to evaluate any
amendment to the General Plan, including updating of the Housing Element, as required by State
law, to assure that internal consistency is maintained.
Evaluation of Existing Housing Element Policies and Programs
The City's 2014-2021 Housing Element included policies and action items to address housing
needs for the 2014-2021 planning period. Their effectiveness is reviewed below.
Goal 1
A variety of housing types that meet all of the housing needs for all income groups within the City.
Goal 2
The preservation and maintenance of the high quality of the City's affordable housing supply.
Policy 1
New affordable housing projects shall be encouraged in all areas of the City. Special attention will
be made to distributing the units so that large concentrations of affordable housing in any one area
are avoided.
Program LA
The City shall work with affordable housing developers, non-profit agencies and other
stakeholders to implement the following affordable housing projects for extremely low, very low,
low and moderate income households during the planning period. For Carlos Ortega Villas and
Sagecrest Apartments, the Housing Authority shall market these projects to the development
community through direct mail, announcements on the City's web site and Requests for Proposals,
once funding sources have been identified.
0 31 units at Canterra Phase Il
• 21 units at Palm Desert 103
• 200 units at Dinah Shore and Portola
• 72 units at Carlos Ortega Villas
• 16 units at Sagecrest Apartments
Responsible Agency: Community Development Department and Housing Authority
Schedule: 2014-2021
Evaluation: The City has made progress in moving projects forward during the 2014-2021
planning period, as follows:
Canterra Phase II: Now known as The Sands, was entitled for 388 units, including 78
reserved for very low income households. The project entitlements remain active, but the
project has failed to secure funding. The project is shown as site DD on the City's
inventory, and will be carried forward into the 2022-2029 planning period, in anticipation
of its construction.
Housing Element
1I1-4
TN/City of Palm Desert
General Plan/Housing Element
• Palm Desert 103: This project would result in 103 apartments, 20% (21 units) of which
would be restricted to moderate income households. This project was inactive during the
planning period, but the requirement for affordable units remains. It will be included in
the City's inventosy.for the 2022-2029 planning period.
• Dinah Shore and Portola: The City is currently negotiating an agreement for the
development of at least 200 units on 10 acres. This site will remain on the City's inventory
as site C.
• Carlos Ortega Villas: This site was developed in the 2014-2021 planning period, and
contains 36 units affordable to very low income households, 36 units affordable to low
income households, and one manager's unit. The project was successfully completed and
will be removed from the City's inventory and added to its list of existing affordable
communities.
• Sagecrest Apartments: I'he Housing Authority will market the project to the development
community during the 2022-2021 planning period. Progress on the implementation of this
project is expected in the forthcoming planning period.
This program has been successful and will be modified to address current projects.
Program LB
The City shall pursue the planning and implementation of the following projects for extremely
low, very low, low and moderate income households during the planning period. The City will
utilize public -private partnerships, grants and third party funding for these projects, and affordable
housing funds if restored by the State Legislature.
• 520 units that will include single family for -sale and multi -family for rent units at Gerald
Ford Drive and Portola
• an additional 52 units at the Vineyards
Responsible Agency: City
Schedule: 2014-2021
Evaluation: This program is still being implemented, as follows:
• Gerald Ford and Portola: This project site is currently proposed for 269 apartments
affordable to very low and low income households, and 3 managers ' units. Application for
entitlement is pending. The project is proposed on 12f acres of'a larger City holding owned
by the Successor Agency (SARDA). The balance of the acreage continues to be marketed
for affordable housing projects. The site will be maintained in the City's inventory, and is
shown as site B.
• The Vineyard: This site consists of 260 existing apartments, 52 of which are currently
restricted to moderate income households. An additional 52 may be offered as affordable
to low or moderate income households, but were not during the 2014-2021 planning
period. The agreement between the developer and the City remains effective, and the units
could be subsidized in the future.
This program continues to be implemented, and will be modified and maintained in the 2022-2029
planning period.
Housing Elcmcnt
111-5
TN/City of Palm Desert
General Plan/Housing Element
Program 1.0
The City shall encourage and facilitate the development by private parties of the following projects
for extremely low, very low, low and moderate income units:
432 units at Key Largo
194 units at Frank Sinatra and Cook Street
Approximately 302 units at Dinah Shore and 35" Avenue (southeast corner)
The City shall annually contact the owners/developers of these lands and review with them the
incentives and financing options available through State and federal loan and grant programs, and
local non-profit agencies to assure that all potential financial mechanisms are being considered for
the project(s).
Responsible Agency: City
Schedule: 2014-2021
Evaluation: The City continues to work with the land owners associated with these ,sites as.follows:
Key Largo: The land owners are currently preparing a Specific Plan for the site, which
would include apartments. Up to 200 units could be restricted to low and moderate income
households. This project is still active, and will remain on the City's inventory as site A.
Frank Sinatra and Cook Street: This project was inactive during the planning period, and
is not considered viable for the fixture. It will be removed from the City :s inventory.
Dinah Shore and 35' Avenue: This project remains under consideration, and the City
believes that it could move forward. The City will continue to work with the landowner and
encourage the development of affordable housing units into the next planning period.
In addition, the City approved Tentative Tract Map 37506, for land located on the south side of
Gerald Ford Drive, between Portola and Technology Drive in the University Park area. This site
includes a mix of'.single. family homes, townhome and apartment .sites, totaling 1, 069 units. The
City will continue to work with the developer to encourage the inclusion of affordable housing
units in the project. This program remains active, and will be modified for the 2022-2029 planning
period.
Program 1.D
The City shall continue to implement the Self Help Housing program when funds are available.
The City will work with agencies such as Habitat for Humanity and Coachella Valley Housing
Coalition to identify funding and the location of these units.
Responsible Agency: City
Schedule: 2016-201 S, as funding is identified
Evaluation: During the 2014-2021 planning period, Habitat.for Humanity developed 2 homes for
very low income households, which were all completed and are now occupied. In May of 2020,
the City awarded the Coachella Valley Housing Coalition a contract to construct 14 .self-help
housing units on Merle, near Cook Street. These homes are expected to be built during the next
planning period. The program will be modified and maintained to assure construction, and the
project will be included in the City's inventory as ,site PP.
Housing Element
1I1-6
TN/City of Palm Desert
General Plan/Housing Element
Table III-33
Inventory of Available Vacant Lands
Assessor's Parcel No.
General
Plan/Zone
Size (Acres)
Potential
Units
694-130-017 D
R-M, R-HO/PC*
10.21
176
694-130-021 (G)
R-M, R-HO/PC*
24.16
200
694-130-018 D
R-M, R-HO/PC*
3.48
72
694-190-008 H
MU/PC*
15 of29.36
160
694-200-014 (.1)
R-M, R-HO,
MU/PC*
11.46
194
694-130-012 E
R-M, R-HO/PR-5
33.71
235
694-130-003 (F)
R-M, R-HO/PC*
18.92
302
685-010-005 A
C-R/PC*
30
432
694-310-001 & 005
C-R/PR-5
35
520
694-120-012 (C)
I-BP/PC*
10
200
627-273-018
R-M/R-3
0.3
7
627-273-005
R-M/R-3
0.3
7
625-171-001
R-M/R-3
0.3
7
627-121-044
R-H/R-3
0.25
6
627-121-045
R-H/R-3
0.25
6
627-301-022
R-H/R-3
0.31
7
627-153-007
R-H/R-3
0.22
5
627-101-033, -038, -039, -002, -017
R-M/OP*
1.64
22
627-041-010 through 013, -29, 031 - 033
R-M/OP* and R-2
1.20
19
627-051-002
R-M/R-2
0.16
2
627-031-030
RM/R-2
0.17
2
627-052-006
R-M/R-2
0.17
2
627-052-031
R-M/R-2
0.16
2
627-052-033
R-M/R-2
0.16
2
627-084-001
R-M/R-2
0.22
2
627-084-003
R-M/R-2
0.19
2
627-182-004
R-M/R-1
0.20
1
627-182-005
R-H/R-1
0.20
1
627-182-006
R-H/R-1
0.17
1
627-351-042
R-M/R-2
0.20
2
627-351-019
R-M/R-1
0.17
1
625-224-001
R-M/R-1
0.19
1
625-126-009
R-H/R-3
0.14
2
625-061-018
R-M/R-1
0.15
1
625-021-008
R-M/R-1
0.19
1
625-031-011
R-M/R-1
2.20
1
625-032-011
R-M/R-1
0.21
1
624-241-008
R-M/R-1
0.12
1
Total Units
2,605
*Requires re -zoning. Property designated Office Professional or Medium Density Residential / High
Density Overlay in General Plan
As shown in the inventory, approximately 2,605 units could be constructed on lands which are
currently available for multiple family residential development. In addition to the vacant lands
included above, the Redevelopment Agency currently has commitments for an additional 103
Housing Element
111-35
TN/City of Palm Desert
General Plan/Housing Element
the higher densities do not allow them to create communities that they can lease, because they
cannot provide the services and amenities that create a healthy living environment.
Table III-38
Inventory of Available Vacant Lands
Assessor's Parcel No.
General
Plan/Zone
Size (Acres)
Potential
Units
694-130-017 D
R-M, R-HO/PCD
10.21
176
694-130-021 (G)
R-M, R-HO/PR-20
24.16
200
694-130-018 D
R-M, R-HO/PR-20
3.48
72
694-190-008 H
MU/PR-20
15 of29.36
160
694-200-014 (H
R-M, R-HO,
MU/PR-20
11.46
194
694-130-012 E
R-M, R-HO/PR-5
33.71
235
694-130-003 F
R-M, R-HO/PR-20
18.92
302
685-010-005 A
C-R/PR-20
30
432
694-310-001 & 005 B
C-R/PR-22
10
200
694-120-012 C
I-BP/PR-20
10
200
627-273-018
R-M/R-3
0.3
7
627-273-005
R-M/R-3
0.3
7
625-171-001
R-M/R-3
0.3
7
627-121-044
R-H/R-3
0.25
6
627-121-045
R-H/R-3
0.25
6
627-301-022
R-H/R-3
0.31
7
627-153-007
R-H/R-3
0.22
5
627-101-033,-038,-039,-002,-017
R-M/R-3
1.64
22
627-041-010 through 013, -29, 031 - 033
R-M/OP- and R-2
1.20
19
627-051-002
R-M/R-2
0.16
2
627-031-030
RM/R-2
0.17
2
627-052-006
R-M/R-2
0.17
2
627-052-031
R-M/R-2
0.16
2
627-052-033
R-M/R-2
0.16
2
627-084-001
R-M/R-2
0.22
2
627-084-003
R-M/R-2
0.19
2
627-182-004
R-M/R-1
0.20
1
627-182-005
R-H/R-1
0.20
1
627-182-006
R-H/R-1
0.17
1
627-351-042
R-M/R-2
0.20
2
627-351-019
R-M/R-1
0.17
1
625-224-001
R-M/R-1
0.19
1
625-126-009
R-H/R-3
0.14
2
625-061-018
R-M/R-1
0.15
1
625-021-008
R-M/R-1
0.19
1
625-031-011
R-M/R-1
2.20
1
625-032-011
R-M/R-1
0.21
1
624-241-008
R-M/R-1
0.12
1
Total Units
2,294
Housing Element
III-49
TN/City of Palm Desert
General Plan/Housing Element
Table 111-47
Vacant Land inventory of Sites for Extremely Low, Very Low, Low and Moderate
Income Units
Map
Assessor's
Zoning
Allowable
Realistic
Potential
Parcel No.
CP
all HOD)**
Acreage
Density
Density
Units
-Key
Vacant Entitled Sites
Town Center
DD
624-040-037
Neighborhood
P.R.-17.5
17.66
17.5
17.5
78
Town Center
DD*
624-040-037
Neighborhood
P.R.-17.5
17.66
17.5
17.5
310
Small Town
694-520-013, -
Neighborhood;
014, -015, -017,
Employment
E*
-019 and -020
Center
P.R.-19
8.05
19
18
21
Subtotal Entitled Sites
409
Vacant Sites in the Entitlement Process
627-122-013
Small Town
LL
and -003
Neigh orhood
R-2 HOD
1.43
3 to 10
20
28
694-310-002, -
Town Center
12 of
B
006, & -007
Neighborhood
P.R.-20
68.2
4 to 20
22.5
269
Town Center
H
694-190-087
Neighborhood
P.R.22
14.97
22
22
44
Town Center
H*
694-190-087
Neighborhood
P.R.22
14.97
22
22
286
Town Center
Neighborhood;
Suburban
P.C.-(3),
10 of
C
694-120-028
Retail Center
FCOZ
20.18
7 to 40
24
240
Public
Facility/Institu
KK
622-370-014
tional
P
1.84
N/A
N/A
36
Subtotal Sites in Entitlement Process
903
Vacant Sites
Regional
P.C.-(3),
15 of
A
685-010-005
Retail
P.C.D.
64.26
10 to 15
14
200
694-130-017 &-
Town Center
D
018
Neighborhood
P.R.-22
10.95
22
20
219
Town Center
F
694-510-013
Neighborhood
P.R.-22
16.32
22
20
326
624-441-014
Small Town
PP
through -022
Neighborhood
P.R.-6
1.31
3 to 10
8
10
624-440-032
Small Town
QQ
through -036
Neighborhood
P.R.-6
0.72
3 to 10
8
6
Small Town
627-041-010
Neighborhood/
through 013, -
Neighborhood
T
29,031 - 033
Center
R-3
1.36
7 to 40
15
20
Subtotal Vacant Sites
781
Total All Vacant Sites
2,093
* Moderate Income Site
** All sites in this Table have been assigned the Housing Overlay District.
Housing Element
111-72
TN/City of Palm Desert
General Plan/Housing Element
GOALS, POLICIES AND PROGRAMS
Goal 1
A variety of housing types that meet all of the housing needs for all income groups within the City.
Goal 2
The preservation and maintenance of the high quality of the City's affordable housing supply.
Policy 1
New affordable housing projects shall be encouraged in all areas of the City. Special attention will
be made to distributing the units so that large concentrations of affordable housing in any one area
are avoided.
Program LA
The City shall work with affordable housing developers, non-profit agencies and other
stakeholders to implement the following affordable housing projects for extremely low, very low,
low and moderate income households during the planning period.
0 21 units at Palm Desert 103 (Site E): annually contact the landowner and provide them
with current City programs and incentives for the construction of the remaining units within
the project.
• 36 units at Arc Village (Site KK): continue to work with Desert ARC and affordable
housing developers to secure funding for these units for developmentally disabled persons.
The City will participate in the preparation of applications for State funding and reinstate
funding assistance when an application is prepared.
0 66 units at Millennium (Site F): the City will continue to work with the developer to process
the pending entitlements and finalize the affordable housing covenants consistent with the
existing Development Agreement.
Responsible Agency: Community Development Department and Housing Authority
Schedule: Continuous as these projects move forward
Program l.B
The City shall pursue the planning and implementation of the following projects for extremely
low, very low, low and moderate income households during the planning period. The City will
utilize public -private partnerships, grants and third party funding for these projects, and density
bonus incentives.
• 240 units at Millennium City Site (Site C): the City shall enforce the terms of its existing
agreement with the developer of this project, including maintaining project schedules and
expediting processing of applications. A minimum of 15% of the units will be reserved for
extremely low income residents.
• 28 units at Sagecrest Apartments (Site LL): the City will complete the RFP process in 2022,
and establish an agreement with the successful developer for construction of the units by
2025. A minimum of 15% of the units shall be reserved for extremely low income residents.
Housing Element
II1-78
ttt
January 27, 2022
Eric Ceja
Deputy Director Development Services
City of Palm Desert
73 -5 10 Fred Waring Drive
Palm Desert, CA 92260
Subject: APN 694-510-013 and Housing Element Inventory
Dear Mr. Ceja:
I am writing to you on behalf of my client Freeway Lanes, LLC and the Subject property location
in the City of Palm Desert.
My office is in receipt of the city's letter addressed to my client dated October 29, 2021,
addressing the Regional Housing Needs Assessment for the State of California (RHNA).
I have reviewed the city's Housing Element Plan covering the period 2006 through 2014 and I
have attached hereto a copy of page 35 from the plan. The Subject APN is not listed on page 35.
I would like to bring to your attention the fact that it appears none of the Housing Element Plans
that have been made available and/or are found on the city's website have a date on them nor is
there any type of reference showing the iteration for the plans. No date or iteration on the plans
makes it complicated when trying to review and understand what took place and when.
During the last Planning Commission meeting and again in our subsequent telephone call January
25th, 2022, I mentioned that the Housing Element Plan downloaded from the city website covering
the period 2014 through 2021 does not list the Subject APN. Attached hereto is a copy of Page
III-49 from the Housing Element Plan where Table III-38 shows APN's subject to the Housing
Element and the Subject APN is not on the list.
During the planning commission meeting I was directed to the Draft Plan for 202(1)2-2029 where
the Subject Parcel now appears. The Subject APN is referenced as site "F", however, when
looking at page 78 of the same plan (copy attached and highlighted) the document states that "F"
is 66 units at Millennium, this is not our site. During the planning commission presentation of the
Draft Plan, the page entitled "Policy Direction" again listed site "F" as the 66-unit Millennium
site. I was told that this is a mistake.
44835 Portola Avenue, Palm Desert, CA 922601 Tel: 760.341.5100 1 www.CPMCRealty.com l DRE #0124582
Mr. Eric Ceja
January 27, 2022
Page 2.
The Subject APN was not listed and now it is, albeit, not listed correctly. How are we supposed
to determine whether the allocation is intended to be our site or not? Based on the preceding the
only conclusion I can come to is that the Subject APN was not to be on the list as evidenced by
the two (2) prior Housing Element Plans.
Please remember, over a year ago we had a meeting at the City's office where Mr. Whipple, Mr.
Busby, and I were informed at that time by you that there is requirement to build a minimum of
302 units on the site and no requirement for any low- or moderate -income units.
In a subsequent meeting several months later, again at the City's office, Liliana Figueroa from
my office and I met with Mr. Martin Alvarez and Ms. Jessica Gonzales to discuss the Housing
Element. During this meeting we were told that the Subject APN was on this list and that we had
to build affordable units. I said that we had not seen the Subject Parcel on the list and how did
this come to be between the time of our first meeting and the second meeting. I asked for how
the requirement came about, and I was not provided with anything that says there is a requirement
for the Subject APN to provide any affordable housing. Further, during this meeting I requested
to know how many units were expected to be affordable and Ms. Gonzales told me she would
need an estimated break down of the quantity of units, approximate square footages, and how
many one, two, and three -bedroom units etc.
Ms. Gonzales was supplied the requested information and as of our last inquiry as to when we
would get the information, I was informed the city wants us to provide our proforma financials
for the project. After making several inquiries it is my understanding that the only time a
Developer may have to provide a financial proforma to the City would be in an event where the
City was contributing funds to the project. If the City were contributing funds, then things like
financial proformas would be covered in a Development and Disposition Agreement "DDA".
There is currently no DDA for the Subject location.
January 25th, 2022 I received an email from you where you provided me with a copy of a memo
from the City's Attorney to you citing the City's constitutional rights and their rights related to
Police Powers etc. (copy attached) and this was forwarded to me in response to my questions
about how the affordable housing allocation came to be on the Subject APN. The memo says how
it may be done, but not that it was done, further suggesting that the Subject APN has not been
identified as being requested to provide affordable housing.
While I believe I understand the City's rights as explained by the City Attorney's memo, I still
have not heard, read, nor seen any evidence of how the Subject APN was added to the most recent
Draft Housing Element list. On the contrary based on what I have seen and read to date, it appears
to me, while the city has the right to add the site to the list I cannot find where it was decided that
the Subject APN became listed nor any explanation as to the reported mistake mentioned herein
above.
Mr. Eric Ceja
January 27, 2022
Page 2.
As I was finishing this letter and continuing to review the Draft Plan there are a couple of other
points which are important to note in the attached Draft Housing Element Plan.
1. Page III-78 shows the 66 units at Millennium, noted on the Plan as Map Key "F",
(which you have stated "F" is actually meant to be our site) and according to the report
it falls under Program IA in the report. When looking at Program IA neither our site
nor the Millennium sites are mentioned. Program 1A page III-4 shows 200 units at
Portola and Dinah Shore. Page III-5 states that the city is currently negotiating an
agreement for at least 200 units on 10 acres. This is not the Subject Site.
2. Page III-6 Program LC shows "Approximately 302 units at Dinah Shore and 35t'
Avenue (Southeast Corner, I believe this to be Dick Kelly)" and while this is the same
amount of units I was originally told that we needed to build without any requirement
for affordable housing, the Subject APN is located on the North side of the street.
Again, not the Subject APN.
Notwithstanding all of the above, it is my client's intention to submit a proposed Land Use Plan
for the Subject APN to you and City planning to further discuss this project. While my client
cannot find any specific requirements related to affordable housing, my client may be willing to
consider a reasonable percentage of the proposed moderate income units. If there is a requirement
to build affordable units at the low or very low rates, my client has said they will not likely
proceed with the project.
In conclusion, what I surmise from all of this is that the Subject Site as it stands today has no
specific "requirement" to build any number of affordable units, however, when we submit our
plans for the project the city may have a right to require some reasonable percentage of the units
to be affordable housing. In other words, it seems to all be discretionary.
I hope to have a Conceptual Land Use Plan and Summary available for the site before the end of
this week for informal review and input. I will ask, when I submit the plan, you to meet my team
and I either in person or via video conference as soon as possible. I will also ask that you include
any other staff you believe relevant to the process to attend the meeting.
If you have any questions, please contact me. I can be reached at (760) 341-5100.
Respectfully,
Mark Stein.
Mark Stein
TN/City of Palm Desert
General Plan/Housing Element
been identified to accommodate all housing types. The City will continue to evaluate any
amendment to the General Plan, including updating of the Housing Element, as required by State
law, to assure that internal consistency is maintained.
Evaluation of Existing Housing Element Policies and Programs
The City's 2014-2021 Housing Element included policies and action items to address housing
needs for the 2014-2021 planning period. Their effectiveness is reviewed below.
Goal 1
A variety of housing types that meet all of the housing needs for all income groups within the City.
Goal 2
The preservation and maintenance of the high quality of the City's affordable housing supply.
Policy 1
New affordable housing projects shall be encouraged in all areas of the City. Special attention will
be made to distributing the units so that large concentrations of affordable housing in any one area
are avoided.
Program LA
The City shall work with affordable housing developers, non-profit agencies and other
stakeholders to implement the following affordable housing projects for extremely low, very low,
low and moderate income households during the planning period. For Carlos Ortega Villas and
Sagecrest Apartments, the Housing Authority shall market these projects to the development
community through direct mail, announcements on the City's web site and Requests for Proposals,
once funding sources have been identified.
0 31 units at Canterra Phase Il
• 21 units at Palm Desert 103
• 200 units at Dinah Shore and Portola
• 72 units at Carlos Ortega Villas
• 16 units at Sagecrest Apartments
Responsible Agency: Community Development Department and Housing Authority
Schedule: 2014-2021
Evaluation: The City has made progress in moving projects forward during the 2014-2021
planning period, as follows:
Canterra Phase II: Now known as The Sands, was entitled for 388 units, including 78
reserved for very low income households. The project entitlements remain active, but the
project has failed to secure funding. The project is shown as site DD on the City's
inventory, and will be carried forward into the 2022-2029 planning period, in anticipation
of its construction.
Housing Element
1I1-4
TN/City of Palm Desert
General Plan/Housing Element
• Palm Desert 103: This project would result in 103 apartments, 20% (21 units) of which
would be restricted to moderate income households. This project was inactive during the
planning period, but the requirement for affordable units remains. It will be included in
the City's inventosy.for the 2022-2029 planning period.
• Dinah Shore and Portola: The City is currently negotiating an agreement for the
development of at least 200 units on 10 acres. This site will remain on the City's inventory
as site C.
• Carlos Ortega Villas: This site was developed in the 2014-2021 planning period, and
contains 36 units affordable to very low income households, 36 units affordable to low
income households, and one manager's unit. The project was successfully completed and
will be removed from the City's inventory and added to its list of existing affordable
communities.
• Sagecrest Apartments: I'he Housing Authority will market the project to the development
community during the 2022-2021 planning period. Progress on the implementation of this
project is expected in the forthcoming planning period.
This program has been successful and will be modified to address current projects.
Program LB
The City shall pursue the planning and implementation of the following projects for extremely
low, very low, low and moderate income households during the planning period. The City will
utilize public -private partnerships, grants and third party funding for these projects, and affordable
housing funds if restored by the State Legislature.
• 520 units that will include single family for -sale and multi -family for rent units at Gerald
Ford Drive and Portola
• an additional 52 units at the Vineyards
Responsible Agency: City
Schedule: 2014-2021
Evaluation: This program is still being implemented, as follows:
• Gerald Ford and Portola: This project site is currently proposed for 269 apartments
affordable to very low and low income households, and 3 managers ' units. Application for
entitlement is pending. The project is proposed on 12f acres of'a larger City holding owned
by the Successor Agency (SARDA). The balance of the acreage continues to be marketed
for affordable housing projects. The site will be maintained in the City's inventory, and is
shown as site B.
• The Vineyard: This site consists of 260 existing apartments, 52 of which are currently
restricted to moderate income households. An additional 52 may be offered as affordable
to low or moderate income households, but were not during the 2014-2021 planning
period. The agreement between the developer and the City remains effective, and the units
could be subsidized in the future.
This program continues to be implemented, and will be modified and maintained in the 2022-2029
planning period.
Housing Elcmcnt
111-5
TN/City of Palm Desert
General Plan/Housing Element
Program 1.0
The City shall encourage and facilitate the development by private parties of the following projects
for extremely low, very low, low and moderate income units:
432 units at Key Largo
194 units at Frank Sinatra and Cook Street
Approximately 302 units at Dinah Shore and 35" Avenue (southeast corner)
The City shall annually contact the owners/developers of these lands and review with them the
incentives and financing options available through State and federal loan and grant programs, and
local non-profit agencies to assure that all potential financial mechanisms are being considered for
the project(s).
Responsible Agency: City
Schedule: 2014-2021
Evaluation: The City continues to work with the land owners associated with these ,sites as.follows:
Key Largo: The land owners are currently preparing a Specific Plan for the site, which
would include apartments. Up to 200 units could be restricted to low and moderate income
households. This project is still active, and will remain on the City's inventory as site A.
Frank Sinatra and Cook Street: This project was inactive during the planning period, and
is not considered viable for the fixture. It will be removed from the City :s inventory.
Dinah Shore and 35' Avenue: This project remains under consideration, and the City
believes that it could move forward. The City will continue to work with the landowner and
encourage the development of affordable housing units into the next planning period.
In addition, the City approved Tentative Tract Map 37506, for land located on the south side of
Gerald Ford Drive, between Portola and Technology Drive in the University Park area. This site
includes a mix of'.single. family homes, townhome and apartment .sites, totaling 1, 069 units. The
City will continue to work with the developer to encourage the inclusion of affordable housing
units in the project. This program remains active, and will be modified for the 2022-2029 planning
period.
Program 1.D
The City shall continue to implement the Self Help Housing program when funds are available.
The City will work with agencies such as Habitat for Humanity and Coachella Valley Housing
Coalition to identify funding and the location of these units.
Responsible Agency: City
Schedule: 2016-201 S, as funding is identified
Evaluation: During the 2014-2021 planning period, Habitat.for Humanity developed 2 homes for
very low income households, which were all completed and are now occupied. In May of 2020,
the City awarded the Coachella Valley Housing Coalition a contract to construct 14 .self-help
housing units on Merle, near Cook Street. These homes are expected to be built during the next
planning period. The program will be modified and maintained to assure construction, and the
project will be included in the City's inventory as ,site PP.
Housing Element
1I1-6
TN/City of Palm Desert
General Plan/Housing Element
Table III-33
Inventory of Available Vacant Lands
Assessor's Parcel No.
General
Plan/Zone
Size (Acres)
Potential
Units
694-130-017 D
R-M, R-HO/PC*
10.21
176
694-130-021 (G)
R-M, R-HO/PC*
24.16
200
694-130-018 D
R-M, R-HO/PC*
3.48
72
694-190-008 H
MU/PC*
15 of29.36
160
694-200-014 (.1)
R-M, R-HO,
MU/PC*
11.46
194
694-130-012 E
R-M, R-HO/PR-5
33.71
235
694-130-003 (F)
R-M, R-HO/PC*
18.92
302
685-010-005 A
C-R/PC*
30
432
694-310-001 & 005
C-R/PR-5
35
520
694-120-012 (C)
I-BP/PC*
10
200
627-273-018
R-M/R-3
0.3
7
627-273-005
R-M/R-3
0.3
7
625-171-001
R-M/R-3
0.3
7
627-121-044
R-H/R-3
0.25
6
627-121-045
R-H/R-3
0.25
6
627-301-022
R-H/R-3
0.31
7
627-153-007
R-H/R-3
0.22
5
627-101-033, -038, -039, -002, -017
R-M/OP*
1.64
22
627-041-010 through 013, -29, 031 - 033
R-M/OP* and R-2
1.20
19
627-051-002
R-M/R-2
0.16
2
627-031-030
RM/R-2
0.17
2
627-052-006
R-M/R-2
0.17
2
627-052-031
R-M/R-2
0.16
2
627-052-033
R-M/R-2
0.16
2
627-084-001
R-M/R-2
0.22
2
627-084-003
R-M/R-2
0.19
2
627-182-004
R-M/R-1
0.20
1
627-182-005
R-H/R-1
0.20
1
627-182-006
R-H/R-1
0.17
1
627-351-042
R-M/R-2
0.20
2
627-351-019
R-M/R-1
0.17
1
625-224-001
R-M/R-1
0.19
1
625-126-009
R-H/R-3
0.14
2
625-061-018
R-M/R-1
0.15
1
625-021-008
R-M/R-1
0.19
1
625-031-011
R-M/R-1
2.20
1
625-032-011
R-M/R-1
0.21
1
624-241-008
R-M/R-1
0.12
1
Total Units
2,605
*Requires re -zoning. Property designated Office Professional or Medium Density Residential / High
Density Overlay in General Plan
As shown in the inventory, approximately 2,605 units could be constructed on lands which are
currently available for multiple family residential development. In addition to the vacant lands
included above, the Redevelopment Agency currently has commitments for an additional 103
Housing Element
111-35
TN/City of Palm Desert
General Plan/Housing Element
the higher densities do not allow them to create communities that they can lease, because they
cannot provide the services and amenities that create a healthy living environment.
Table III-38
Inventory of Available Vacant Lands
Assessor's Parcel No.
General
Plan/Zone
Size (Acres)
Potential
Units
694-130-017 D
R-M, R-HO/PCD
10.21
176
694-130-021 (G)
R-M, R-HO/PR-20
24.16
200
694-130-018 D
R-M, R-HO/PR-20
3.48
72
694-190-008 H
MU/PR-20
15 of29.36
160
694-200-014 (H
R-M, R-HO,
MU/PR-20
11.46
194
694-130-012 E
R-M, R-HO/PR-5
33.71
235
694-130-003 F
R-M, R-HO/PR-20
18.92
302
685-010-005 A
C-R/PR-20
30
432
694-310-001 & 005 B
C-R/PR-22
10
200
694-120-012 C
I-BP/PR-20
10
200
627-273-018
R-M/R-3
0.3
7
627-273-005
R-M/R-3
0.3
7
625-171-001
R-M/R-3
0.3
7
627-121-044
R-H/R-3
0.25
6
627-121-045
R-H/R-3
0.25
6
627-301-022
R-H/R-3
0.31
7
627-153-007
R-H/R-3
0.22
5
627-101-033,-038,-039,-002,-017
R-M/R-3
1.64
22
627-041-010 through 013, -29, 031 - 033
R-M/OP- and R-2
1.20
19
627-051-002
R-M/R-2
0.16
2
627-031-030
RM/R-2
0.17
2
627-052-006
R-M/R-2
0.17
2
627-052-031
R-M/R-2
0.16
2
627-052-033
R-M/R-2
0.16
2
627-084-001
R-M/R-2
0.22
2
627-084-003
R-M/R-2
0.19
2
627-182-004
R-M/R-1
0.20
1
627-182-005
R-H/R-1
0.20
1
627-182-006
R-H/R-1
0.17
1
627-351-042
R-M/R-2
0.20
2
627-351-019
R-M/R-1
0.17
1
625-224-001
R-M/R-1
0.19
1
625-126-009
R-H/R-3
0.14
2
625-061-018
R-M/R-1
0.15
1
625-021-008
R-M/R-1
0.19
1
625-031-011
R-M/R-1
2.20
1
625-032-011
R-M/R-1
0.21
1
624-241-008
R-M/R-1
0.12
1
Total Units
2,294
Housing Element
III-49
TN/City of Palm Desert
General Plan/Housing Element
Table 111-47
Vacant Land inventory of Sites for Extremely Low, Very Low, Low and Moderate
Income Units
Map
Assessor's
Zoning
Allowable
Realistic
Potential
Parcel No.
CP
all HOD)**
Acreage
Density
Density
Units
-Key
Vacant Entitled Sites
Town Center
DD
624-040-037
Neighborhood
P.R.-17.5
17.66
17.5
17.5
78
Town Center
DD*
624-040-037
Neighborhood
P.R.-17.5
17.66
17.5
17.5
310
Small Town
694-520-013, -
Neighborhood;
014, -015, -017,
Employment
E*
-019 and -020
Center
P.R.-19
8.05
19
18
21
Subtotal Entitled Sites
409
Vacant Sites in the Entitlement Process
627-122-013
Small Town
LL
and -003
Neigh orhood
R-2 HOD
1.43
3 to 10
20
28
694-310-002, -
Town Center
12 of
B
006, & -007
Neighborhood
P.R.-20
68.2
4 to 20
22.5
269
Town Center
H
694-190-087
Neighborhood
P.R.22
14.97
22
22
44
Town Center
H*
694-190-087
Neighborhood
P.R.22
14.97
22
22
286
Town Center
Neighborhood;
Suburban
P.C.-(3),
10 of
C
694-120-028
Retail Center
FCOZ
20.18
7 to 40
24
240
Public
Facility/Institu
KK
622-370-014
tional
P
1.84
N/A
N/A
36
Subtotal Sites in Entitlement Process
903
Vacant Sites
Regional
P.C.-(3),
15 of
A
685-010-005
Retail
P.C.D.
64.26
10 to 15
14
200
694-130-017 &-
Town Center
D
018
Neighborhood
P.R.-22
10.95
22
20
219
Town Center
F
694-510-013
Neighborhood
P.R.-22
16.32
22
20
326
624-441-014
Small Town
PP
through -022
Neighborhood
P.R.-6
1.31
3 to 10
8
10
624-440-032
Small Town
QQ
through -036
Neighborhood
P.R.-6
0.72
3 to 10
8
6
Small Town
627-041-010
Neighborhood/
through 013, -
Neighborhood
T
29,031 - 033
Center
R-3
1.36
7 to 40
15
20
Subtotal Vacant Sites
781
Total All Vacant Sites
2,093
* Moderate Income Site
** All sites in this Table have been assigned the Housing Overlay District.
Housing Element
111-72
TN/City of Palm Desert
General Plan/Housing Element
GOALS, POLICIES AND PROGRAMS
Goal 1
A variety of housing types that meet all of the housing needs for all income groups within the City.
Goal 2
The preservation and maintenance of the high quality of the City's affordable housing supply.
Policy 1
New affordable housing projects shall be encouraged in all areas of the City. Special attention will
be made to distributing the units so that large concentrations of affordable housing in any one area
are avoided.
Program LA
The City shall work with affordable housing developers, non-profit agencies and other
stakeholders to implement the following affordable housing projects for extremely low, very low,
low and moderate income households during the planning period.
0 21 units at Palm Desert 103 (Site E): annually contact the landowner and provide them
with current City programs and incentives for the construction of the remaining units within
the project.
• 36 units at Arc Village (Site KK): continue to work with Desert ARC and affordable
housing developers to secure funding for these units for developmentally disabled persons.
The City will participate in the preparation of applications for State funding and reinstate
funding assistance when an application is prepared.
0 66 units at Millennium (Site F): the City will continue to work with the developer to process
the pending entitlements and finalize the affordable housing covenants consistent with the
existing Development Agreement.
Responsible Agency: Community Development Department and Housing Authority
Schedule: Continuous as these projects move forward
Program l.B
The City shall pursue the planning and implementation of the following projects for extremely
low, very low, low and moderate income households during the planning period. The City will
utilize public -private partnerships, grants and third party funding for these projects, and density
bonus incentives.
• 240 units at Millennium City Site (Site C): the City shall enforce the terms of its existing
agreement with the developer of this project, including maintaining project schedules and
expediting processing of applications. A minimum of 15% of the units will be reserved for
extremely low income residents.
• 28 units at Sagecrest Apartments (Site LL): the City will complete the RFP process in 2022,
and establish an agreement with the successful developer for construction of the units by
2025. A minimum of 15% of the units shall be reserved for extremely low income residents.
Housing Element
II1-78