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CZ/PP/CUP 16-280 Palm Desert Country Club - PD Holdings LP -02/13/2020
To: CITY OF PA DATE CONTINUED TO lip 2ND READING COMMUNITY DEVELOPMENT DEPARTMENT CITY COUNCIL PUBLIC HEARING MEMORANDUM Honorable Mayor and Members of the City Council Lauri Aylaian, City Manager Robert Hargreaves, City Attorney From: Eric Ceja, Principal Planner Date: February 13, 2020 Subject: Consideration for approval of a Resolution amending Condition No. 14 of Resolution 2018-16 requiring an in -lieu affordable housing fee on a development proposal at Palm Desert Country Club and an amendment to the Operation and Maintenance Agreement between the owners of Palm Desert Country Club (PD Holdings, LLC) and the City of Palm Desert. Recommendation: By Minute Motion: Continue the public hearing to the meeting of February 27, 2020. Klassen, Rachelle From: Kevin Fahey <faheykevin@comcast.net> Sent: Wednesday, February 12, 2020 2:16 PM To: Klassen, Rachelle Cc: Kathleen Kelly; Harnik, Jan; Weber, Susan Marie; Gina Nestande; Jonathan, Sabby; Stendell, Ryan; Ceja, Eric; 'Christine Fahey'; BARBARA POWERS Subject: Follow up on Expansion of Joe Mann Park & Public Hearing of 1/9 continued to 2/13 Attachments: We sent you safe versions of your files; PDCC Attorney Letter.pdf Mimecast Attachment Protection has deemed this file to be safe, but always exercise caution when opening files. Hi Rachelle, Since we have not received a response from Attorney Stendell on the questions we raised in our January 30th email to Eric Ceja below regarding the declaration attached to our tract 2137 remaining a golf course, we can only assume that it is still being researched. We trust that the city council would honor the deed declaration prior to any further consideration of approving the land transfer for park expansion and not repeat the error it made approving the executive course development before resolving the required zoning change. Please make this email along with our email of January 30th to Eric Ceja and the attached letter from the PDCC attorney as part of the public record for the public hearing of February 13th or any rescheduled date. Thank you in advance, Kevin and Christine Fahey � .. -o;, -n — rn 0 NY From: Kevin Fahey [mailto:faheykevin@comcast.net] r-M. Sent: Wednesday, February 05, 2020 12:35 PM N To: BARBARA POWERS (barbarapdcc@gmail.com) ",: Subject: FW: Record Request: Expansion of Joe Mann Park & Public Hearing of 1/9 :X Hi Barbara, 3 I sent this email last week and have not received a reply to my questions and likely will not get one. Do you have any updates on where things stand and can you provide me the contact information of the attorney you were using before. Thanks, Kevin From: Kevin Fahey [mailto:faheykevin@comcast.net] Sent: Thursday, January 30, 2020 5:33 PM To: 'eceja@cityofpalmdesert.org'; 'rklassen@cityofpalmdesert.org' Cc: 'c.f.fa hey@comcast. net'; 'rstendell@cityofpalmdesert.org' Subject: RE: Record Request: Expansion of Joe Mann Park & Public Hearing of 1/9 Thanks Eric, We are certainly glad to hear there is high sensitivity to the concerns of homes that would back into the park and that community feedback will be actively solicited. We are already hearing questions about whether or not a dog park expansion is under consideration, active vs passive activities, fencing, lighting, noise etc. For the many of of us living on tract 2137 which includes Declaration 2137 that the property be maintained as a golf course (attached is PDCC Attorney Patterson letter to City detailing this issue), we have two questions which may be more appropriate for Attorney Stendell to address: 1 How is the proposal to for a park expansion possible given the2.5 acres of land under consideration is part of the tract 2137 and the declaration? 2 Is the city altering or eliminating the declaration in this transaction. If the city is in fact altering or eliminating the declaration that the tract remain a golf course, are they proposing it for only the 2.5 acres for the park or for the entire tract? I am not sure if you are aware of this but just in case for notification purposes, there is a separate HOA from the PDCCA HOA, called Garden Apartments HOA, which has units along Michigan Drive including units that would back up to the park. We appreciate all the information and answers you are providing, Kevin and Christine From: eceja@cityofpalmdesert.org [mailto:eceja@cityofpalmdesert.org] Sent: Thursday, January 30, 2020 2:19 PM To: rklassen@cityofpalmdesert.org; faheykevin@comcast.net Cc: c.f.fahey@comcast.net; rstendell@cityofpalmdesert.org Subject: RE: Record Request: Expansion of Joe Mann Park & Public Hearing of 1/9 Hello Mr. Fahey, Thank you for expressing interest in the potential park expansion. I have attached a map showing the area for park expansion that is currently being considered. Prior to designing the park the City Council 1st needs to approve the proposal. We anticipate that could happen on February 13th. If approved, the City's Park Commission and City staff will solicit feedback from neighbors and park users about the expansion plans. The design of the park will include community feedback. Although not finalized, myself and other staff members are sensitive to the homes that back into the park area and we are supportive of more passive uses (walking paths and seating area) and new landscaping rather than active uses (basketball courts and playground equipment). If approved, we will reach out to all adjacent properties for your input. Please let me know if you have any questions. Thanks, Eric: C@Jq Principal Planner Ph:760.346.0611 Direct:760.776.6384 eceja@cityofpalmdesert.org From: Klassen, Rachelle Sent: Thursday, January 30, 2020 11:00 AM To: 'Kevin Fahey' <faheykevin@comcast.net> Cc: c.f.fahey@comcast.net; Stendell, Ryan <rstendell@cityofpalmdesert.org>; Ceja, Eric <eceja@cityofpalmdesert.org> Subject: RE: Record Request: Expansion of Joe Mann Park & Public Hearing of 1/9 Yes — I believe so. Although, I have not seen any formal renderings yet. I believe it would depend upon whether or not the transaction was approved before the City developed such plans. Rachelle Klassen City Clerk Ph:760.346.0611 Direct:760.776.6304 rklassen@cityofpalmdesert,org From: Kevin Fahey fmailto:fahevkevin@comcast.netj Sent: Thursday, January 30, 2020 10:43 AM To: Klassen, Rachelle <rklassen(c@citvofpalmdesert.ore> Cc: c.f.fahev@comcast.net; Stendell, Ryan <rstendell@cityofpalmdesert.orQ>; Ceja, Eric <eceia@citvofpalmdesert.orR> Subject: Re: Record Request: Expansion of Joe Mann Park & Public Hearing of 1/9 Thank you Rachelle, Appreciate your quick response. We assume that with the continuance of the public hearing matter, the proposed park expansion plans are still available to be viewed at the city planner's office. Kind Regards, Kevin & Chris Sent from my iPhone On Jan 29, 2020, at 4:39 PM, <rklassen@citvofoalmdesert.org> <rklassen@citvofoalmdesert.org> wrote: Dear Mr. and Mrs. Fahey: Thank you for your e-mail request. In response, the following are attached here: 1) Staff Report for the January 9, 2020, City Council Meeting — Public Hearing A — and supplemental information received after the agenda was posted. 2) Minutes of the regular January 9, 2020, Palm Desert City Council Meeting; Public Hearing A begins on page 8 of this document. Note: This Public Hearing matter was continued to the Palm Desert City Council Meeting of Thursday, February 13, 2020, at 4:00 p.m., or as soon as practicable thereafter. This completes our response to your request. If you need any further assistance, please let us know. Rachelle Klassen City Clerk Ph:760.346.0611 Direct:760.776.6304 rklassen@cityofpalmdesert.org From: Kevin Fahey jmailto:fahevkevinCcDcomcast.netj Sent: Wednesday, January 29, 2020 8:14 AM To: Klassen, Rachelle <rklassenPcitvofpalmdesert.ore> Cc: 'Christine Fahey' <c.f.fahev@comcast.net> Subject: Record Request: Expansion of Joe Mann Park & Public Hearing of 1/9 Rachelle, My wife and I were unable to attend the public hearing on January 9t" as her mom has been transitioning into a LTC facility. We have heard some varied & somewhat confusing reports from our neighbors here on Michigan Drive regarding the proposed expansion of Joe Mann Park and amendments to the Operating & Maintenance Agreement between the City and PDCC. Would you be so kind to email us the electronic records of the park expansion plans along with the minutes of the public hearing so we can separate fact from fiction? Thank you in advance, Kevin & Christine Fahey 77625 Michigan Drive Palm Desert, CA <CZ -PP -CUP 16-280 Palm Desert Country Club - PD Holdings LP (96940).pdf> <Supplmnt Info - CZ -PP -CUP 16-280 PDCC (96970).pdf> <2020 JAN 09.pdf> S m =lE ULT� P A T T O R N E Y S ROBERT L. PATTERSON patterson@sbemp.com ADMITTED IN CA April 19, 2018 VIA EMAIL AND MAIL Robert W. Hargreaves, City Attorney City of Palm Desert c/o Best Best & Krieger 74760 Highway 111, Suite 200 Indian Wells, CA 92210 Re: Palm Desert Country Club Dear Mr. Hargreaves: REPLY To: Palm Springs, California This letter is provided to the City of Palm Desert on behalf of our client PD Holdings, LP which owns a nine -hole golf course and an eighteen -hole golf course commonly known as the Palm Desert Country Club. PD Holdings, LP has applied for certain entitlements including Tract Maps 37240, 37241 and 37242 ("Entitlements") allowing a portion of the nine hole executive golf course to be developed as single family residential housing. You have asked for our opinion about whether there are any covenants or restrictions that would prohibit the construction of the single-family residential housing project ("Project") contemplated by the Entitlements. It is our unequivocal opinion that there are no covenants or restrictions that restrict or prohibit the entitlement and construction of the Project. Therefore, the City Council must consider the recommendation of the Planning Commission to approve the Entitlements without any reference to this potential issue. In fact the issue has been raised by members of the public who are opposed to the development strictly for political reasons. In short, the covenants are a red herring that must be disregarded. PRIVATE CC&Rs There are two sets of CC&Rs that potentially could affect the Project. However, neither one of these CC&Rs contains a restriction applicable to the area of the Project. The overall project known as Palm Desert Country Club is covered by Tract Map 33195. Tract 33195 is a remapping of two previous smaller tracts, Tract 2137 and Tract 2283. The Project is located on Lots 12, 26 and 29 of Tract 33195 (APNs 637-19-27, 637-19- SLOVAK BARON EMPEY MURPHY & PINKNEY LLP 1800 E. Tahquitz Canyon Way 650 Town Center Drive, Suite 1400 2240 Fifth Avenue 103 Carnegie Center Blvd., Suite 101 Chrysler Building Palm Springs, California 92262 Costa Mesa, California 92626 San Diego, California 92101 Princeton, New Jersey 08540 405 Lexington Avenue, 26" floor T (760) 322-2275 - F (760) 322-2107 T (714) 435-9592 - F (714) 850-9011 T (619) 301-4540 T (609) 955-3393 • F (609) 520-9731 New York, Now York 10174 T (212) 829-4399 www.sbamp.com RobertW. Hargreaves, Esq. April 19, 2018 Page 2 21 and 637-19-24). On April 12, 1961, a Declaration of Restrictions containing a golf course requirement was recorded as Instrument Number 31032, affecting certain Lots within Tract 2137, as amended on November 19, 2004 by Instrument Number 2004-0929679 (collectively the "2137 Declaration"). Paragraph 1 of Declaration 2137 states that it covers only lots within Tract 2137. Section 1 says that a golf course must be maintained on the property. Attached to this letter is a diagram showing the coverage of the 2137 Declaration. The 2137 Declaration covers the area commonly known as the front 9 holes of the Championship Golf Course. ("Front 9 Holes"). However, more notably. the 2137 Declaration does not cover any part of the Proiect. On March 12, 1963, a Declaration of Restrictions was recorded as Instrument Number 24645 affecting certain lots within Tract 2283 as amended on November 19, 2004 as Instrument Number 2004-0929681 (the "2283 Declaration"). The 2283 Declaration covers the area commonly known as the "Back 9 Holes" and requires that a golf course be maintained on the subject property. While the 2283 Declaration requires maintenance of golf course it has expired and is no longer of any force or effect.(See Section 2) In any event the 2283 Declaration covers only a small part of the Project as shown on the attached diagram. The 2137 Declaration does not cover the Project and the 2283 Declaration has expired. No private covenants affect, restrict or prohibit the Project. CITY OPERATION AND MAINTENANCE AGREEMENT The only other covenant that could affect the Project is the Operation and Maintenance Agreement between the City and Dahoon Investment Company, Inc. dated August 31, 2005 and recorded as Document Number 2005-0780948. This document states that so long as a golf course is maintained it will be maintained according to the standards set forth in the agreement. However, the City Covenant is clear that the owner is not mandated to operate a golf course. The standards provide that so long as a golf course is operated on the property it must be maintained in a manner consistent with the operations of an average golf course facility allowing members of the public and private members to play_ As mentioned above, there were initially two golf courses on the overall project known as Palm Desert Country Club —the Executive Course and the Championship Course. PD Holdings, however, shut down the Executive Course —the area at issue —several years ago. The Championship Course remains in operation and PD Holdings intends to continue to operate and maintain that course. The development project applies only to the former Executive Course. Therefore, PD Holdings will continue to maintain the eighteen -hole course in full compliance with the City Covenant. The language in the City Covenant states that "for so long as Owner operates a golf course on the Property, Owner agrees to operate and maintain the Property according to the standards set forth in this Agreement, as required under the Development Agreement". Nowhere does the City Covenant state that the owner must operate a golf course or golf courses on the entirety of the project. The City Covenant does not state that the owner cannot take one of the golf courses out of play because that Robert W. Hargreaves, Esq, April 19, 2018 Page 3 was never the intention of the agreement. The City Covenant was entered into at a time when a concern existed because the turf and landscaping was dying and unsightly. The purpose of the City Covenant was to assure that the grass did not dry up and create an eyesore. The purpose of the City Covenant was definitely not to mandate that the property not be developed for another use such as single family residential. Had that been the intent, the City could have stated that as it its intent. Our client strongly opposes any interpretation of the City Covenant as prohibiting development of single family residential housing as this is not supported in any way by the City Covenant. In conclusion, the covenants affecting the property do not in any way restrict or prohibit our client's development. In fact the Palm Desert Country Club Association has provided its prior written support to the project as it is not inconsistent with the CC&Rs. We request that you present this letter to the City Council members so that they can make an adequately informed decision. In making their decision, the issue of the City Covenant or a private covenant prohibiting or restricting the Entitlements would not be within the reasonable discretion of the City Council. We thank you for giving us the opportunity to present this opinion and information for your review. Please feel free to contact me with any questions or if you need any further information or documents referred to in this letter. Sincerely, SBEMP LLP Robert L. Patterson enclosure m NO i s V Rs R;!1 all q ,, , 1'401 �-11( kill 11 ;1 li 'i lilt 1,; k r roWo, ♦,att on TOM NtIRiR# a toon v Rlf�r .�• � M tRoff s yy,qqy » n N Us btRRRRRa S 11 b O © s � a a N 8a �.� �C AR ■R �R �R OR� �Rp � � y �l 0� PP a r g FE M Ile, A a j 9 A 0 �u i ji� a5a aSt a � aka a5a aka . aj �� a 1*11 1 oil I@ I " ya� Rig s