HomeMy WebLinkAboutRes 2024-078RESOLUTION NO. 2024-078
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ADOPTING AN ANNUAL LEASE RATE FOR
DINING DECKS AND LICENSING REQUIREMENTS FOR USE OF
PUBLIC RIGHT-OF-WAY FOR OUTDOOR DINING DECKS
WHEREAS, in 2020 the City of Palm Desert (“City”) created an Outdoor Dining
Deck Program (“Program”) allowing restaurants to obtain Temporary Use Permits
(TUPs) for outdoor dining; and
WHEREAS, several TUPs have been issued to businesses using the public right-
of-way for outdoor dining (El Paseo and Highway 111 Frontage Road); and
WHEREAS, on November 16, 2023, the City Council of the City of Palm Desert
(“City Council”) took action to extend the City's Dining Deck program through June 30,
2026, adopting updates to the Outdoor Dining Deck Design Guidelines and permitting
requirements; and
WHEREAS, the City Council directed staff to explore the development of a
licensing agreement for the use of the public right-of-way; and
WHEREAS, City staff proposed three separate options for po ssible lease
methodologies for the use of the public right-of-way based on market lease rates, and
the City Council discussed a possible right-of-way use rates; and
WHEREAS, City Council recommends an annual lease rate of 25% of the market
rate, based on a blended rate presented at the May 23, 2024 City Council Meeting, for
the remaining duration of the Program; and
WHEREAS, if the selected dining deck lease rate exceeds the rate a restaurant
operator pays to lease their building space, the City Council m ay consider reducing the
rate upon the operator providing proof of a lease agreement entered into on or before
January 1, 2024; and
WHEREAS, the administration of the Program and the use of public right -of-way
for dining decks require the City to expend resources, including staff time, and incur
costs associated with the management, oversight, and maintenance of public property
being utilized for private commercial purposes; and
WHEREAS, the adoption of a lease rate is necessary to offset the costs incurred
by the City in administering the Program and to ensure that appropriate compensation is
received for the use of public property.
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WHEREAS, the City Council of the City of Palm Desert, California, did on August
22nd, 2024, hold a duly noticed public hearing to consider the proposal and continued
the item to a date uncertain; and
WHEREAS, the City Council of the City of Palm Desert, California, did on
October 24th, 2024, hold a duly noticed public hearing to consider the proposal; and
WHEREAS, at the 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, which are outlined in the staff report,
exist to justify approval of said request:
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. Recitals. The City Council hereby finds that the foregoing recitals
are true and correct and are incorporated herein as substantive findings of this
Resolution.
SECTION 2. Adoption of Annual Lease Rate. The City Council hereby adopts an
annual lease rate of $7.08 per square foot for outdoor dining decks located within the
public right-of-way (“Lease Rate”). Restaurant operators are required to enter into a
licensing agreement for the use of the public right-of-way (“Licensees”), which will
include the annual Lease Rate of $7.08 per square foot.
SECTION 3. Rate Adjustment Relief. If the adopted Lease Rate exceeds the
square foot rate paid by a restaurant operator for their building space, the City may
reduce the Lease Rate upon the restaurant operator providing proof of such lease
agreement dated on or before January 1, 2024.
SECTION 4. Effective Date. This Resolution shall be effective immediately upon
adoption.
SECTION 5. Certification. The City Clerk shall certify to the passage and
adoption of this resolution and enter it into the book of original Resolutions.
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ADOPTED ON OCTOBER 24, 2024.
KARINA QUINTANILLA
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2024-078 is a full, true, and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Desert on October 24, 2024, by
the following vote:
AYES: HARNIK, KELLY, NESTANDE, TRUBEE, AND QUINTANILLA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
RECUSED: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed th e official seal of
the City of Palm Desert, California, on _______________.
_______________
ANTHONY J. MEJIA
CITY CLERK
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