HomeMy WebLinkAboutRes 2025-014RESOLUTION NO. 2025-014
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ACCEPTING THE ECONOMIC DEVELOPMENT
SUBSIDY REPORT PREPARED PURSUANT TO GOVERNMENT CODE
SECTION 53083 REGARDING AN AGREEMENT FOR DISBURSEMENT
AND USE OF FUNDS BY AND BETWEEN THE CITY OF PALM DESERT
AND FINE QUALITY FOODS, INC. DBA PAPA DAN’S PIZZA AND PASTA
AND FIND THAT THE ACTIVITY DOES NOT CONSTITUTE A PROJECT
UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
AND ALTERNATIVELY IS CATEGORICALLY EXEMPT FROM REVIEW
UNDER SECTION 15301.
WHEREAS, the City of Palm Desert ("City") and Fine Quality Foods, Inc., a Nevada
corporation, d/b/a Papa Dan’s Pizza and Pasta (“Papa Dan’s”) have negotiated an
Agreement for Disbursement and Use of Funds ("Agreement") to disburse funds from the
City’s Invest Palm Desert Program to assist with rebuilding Papa Dan’s restaurant at
73011 Country Club Drive F-1 in the City, which has operated within the City for over 40
years and recently burned down in a fire; and
WHEREAS, present facts and historical information as to why the City Council will
make the findings; and
WHEREAS, pursuant to that Agreement, Papa Dan’s is committed to opening and
to continue operating an Italian restaurant in the City for a five (5) year period; and
WHEREAS, based on information provided by City staff, and other such written
and oral evidence, as presented to the City, the City finds and determines that the
allocation of funds to Papa Dan’s pursuant to the Agreement is reasonably related to a
legitimate governmental purpose in that the retention of the restaurant will provide
numerous public benefits including:
• Generating substantial revenue for the City through additional Local Sales
Tax Revenue which may be used by the City for the funding of necessary
public services and facilities, including but not limited to, public safety
services and facilities, public improvements and recreational opportunities
that otherwise may not be available to the community for many years; and
• Papa Dan’s is a highly successful restaurant who will be committed to
maintaining the restaurant in the City of Palm Desert which will ensure the
retention and creation of jobs and provide opportunity for additional job
growth throughout the term of this Agreement; and
• Entering into this Agreement and retaining the restaurant may attract
additional businesses and investment in the community due to increased
services and economic activity in the area; and
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Resolution No. 2025-014 Page 2
• Retaining this business within the City will create jobs, maintain economic
diversity in the community and stimulate the economic recovery of the City
by generating new opportunities for economic growth within the region; and
• Retaining Papa Dan’s' operations within the City will generate substantial
revenue for the City, allow for the retention of jobs, and result in community
and public improvements that might not otherwise be available to the
community for many years; and
WHEREAS, in accordance with Government Code Section 53083, the City
provided certain information in written form to the public and on its website, a copy of
which is attached hereto as Exhibit A and incorporated herein by this reference, and held
a noticed public hearing on February 27, 2025 to consider all written and oral comments
on the Economic Development Subsidy Report; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert, California, as follows:
SECTION 1. Incorporation of Recitals. The foregoing recitals are true and correct
and are incorporated herein and made an operative part of this Resolution.
SECTION 2. Findings. The City Council additionally finds and determines that
(a) there are identifiable public purposes fulfilled by the Agreement, as set forth in the
Recitals, that outweigh the benefit to private persons; and (b) the findings set forth in this
Resolution are based upon substantial written and oral evidence presented to the City
Council.
SECTION 3. The City Council hereby finds that pursuant to the California
Environmental Quality Act ("CEQA") (Pub. Res. Code, § 21000 et seq.) and the State
CEQA Guidelines (Cal. Code Regs, tit. 14 § 15000 et seq.), acceptance of the Economic
Development Subsidy (EDS) Report is not a "project" for purposes of CEQA and therefore
is not subject to CEQA review.
State CEQA Guidelines section 15378 defines a “project” as an activity that “has a
potential for resulting in either a direct physical change in the environment, or a
reasonably foreseeable indirect physical change in the environment.” (State CEQA
Guidelines, § 15378(a).) Here, the acceptance of the EDS Report to provide funding to a
restaurant for interior improvements will not result in any physical changes to the
environment. Accordingly, it does not meet the definition of a “project” subject to CEQA.
(State CEQA Guidelines, § 15060(c).) In addition, section 15378(b) explicitly excludes
certain activities from the definition of a ‘project.’ Specifically, section 15378(b)(5) states
that “organizational or administrative activities of governments that will not result in direct
or indirect physical changes in the environment” are not considered projects. The
acceptance of the EDS Report is an administrative activity that does not result in physical
changes to the environment and is therefore not subject to CEQA.
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Resolution No. 2025-014 Page 3
Even if the action were considered a “project” subject to CEQA, it would qualify for
a categorically exemption pursuant to State CEQA Guidelines Section 15301, Class 1,
(Existing Facilities). Class 1 consists of the “operation, repair, maintenance or minor
alteration of existing private structures … involving negligible or no expansion of existing
or former use.” Section 15301 provides some, but does not limit project scope to,
examples of such projects, including “interior or exterior alterations”. The acceptance of
the EDS Report involves modifications to the interior of a private structure, which are
confined to the existing space and do not introduce new uses or intensify current
operations. Therefore, the project meets the criteria for the Class 1 categorical exemption.
Further, none of the exceptions outlined in CEQA Guidelines section 15300.2
apply. There is no potential for significant cumulative impacts, as staff does not anticipate
other similar projects at the project site or in the surrounding area. The property does not
present any unusual circumstances, such as unique environmental resources, an unusual
location, or physical characteristics that could result in significant impacts. The project
area is fully developed and does not contain environmentally sensitive areas. The project
would not damage any scenic resources, including trees, historic buildings, rock
outcroppings, or similar features, within a highway officially designated as a state scenic
highway. The project site is not located on a hazardous waste site or any other site
included on a list compiled pursuant to Government Code section 65962.5. Lastly, the
proposed project will not cause a substantial adverse change in the significance of a
historical resource, as no such resources are present near the project site that could be
impacted.
Staff is directed to prepare, execute, and file a Notice of Exemption with the County
Clerk and the State Clearinghouse within five (5) working days of the project’s approval
and adoption of this resolution.
SECTION 4. Acceptance of Economic Development Subsidy Report. The City
Council finds and determines that this Economic Development Subsidy Report is in
compliance with applicable law and specifically Government Code Section 53083.
SECTION 5. Custodian of Records. The documents and materials associated with
this Resolution that constitute the record of proceedings on which these findings are
based are located at Palm Desert City Hall 73510 Fred Waring Drive Palm Desert, CA
92260. The City Clerk is the custodian of records for the record of proceedings.
SECTION 6. Severability. If any provision of this Resolution is held invalid, the
remainder of this Resolution shall not be affected by such invalidity, and the provisions of this
Resolution are severable.
SECTION 7. Effective Date. This Resolution shall become effective immediately upon
its adoption. The City Clerk of the City of Palm Desert shall certify as to the adoption of this
Resolution.
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Resolution No. 2025-014 Page 4
ADOPTED ON FEBRUARY 27, 2025.
JAN C. HARNIK
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2025-014 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 February 27, 2025, by
the following vote:
AYES:
NOES:
NESTANDE, PRADETTO, QUINTANILLA, AND TRUBEE
NONE
ABSENT: NONE
ABSTAIN: NONE
RECUSED: HARNIK
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Desert, California, on ___________________.
ANTHONY J. MEJIA
CITY CLERK
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Resolution No. 2025-014 Page 5
EXHIBIT A
ECONOMIC DEVELOPMENT SUBSIDY REPORT
[Attached following this page]
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A-1
ECONOMIC DEVELOPMENT SUBSIDY REPORT
(GOVERNMENT CODE SECTION 53083)
REGARDING AN AGREEMENT FOR DISBURSEMENT AND USE OF FUNDS
BETWEEN THE CITY OF PALM DESERT
AND
FINE QUALITY FOODS, INC. DBA PAPA DAN’S PIZZA AND PASTA
IN CONNECTION WITH THE RE-ESTABLISHMENT OF PAPA DAN’S PIZZA AND PASTA AT 73011
COUNTRY CLUB DRIVE F-1, PALM DESERT, CA 92270
Pursuant to Government Code Section 53083, the City Council of the City of Palm Desert must
hold a noticed public hearing and, prior to the public hearing, provide all of the following
information in written form available to the public including through the City’s website, regarding
a proposed economic development subsidy to be provided by the City of Palm Desert (“City”)
pursuant to an Agreement for Disbursement and Use of Funds (“Agreement”) by and between
the City and Fine Quality Foods, Inc. dba Papa Dan’s Pizza and Pasta (“Business”).
This Economic Development Subsidy Report (“Report”) is being published on the City’s website
in advance of the public meeting to be held on February 27, 2025. The purpose of this Report is
to provide the information to inform the public about the subsidy provided under the Agreement,
as required pursuant to Government Code Section 53083. This Report shall remain available to
the public and posted on the City’s website until the end of the economic development subsidy,
as further described in Section 2 below.
1. The name and address of all corporations or any other business entities, except for sole
proprietorships, that are the beneficiary of the economic development subsidy.
This Agreement is between the City and Fine Quality Foods, Inc. dba Papa Dan’s Pizza and Pasta,
who will own and operate the business benefitting from the economic development subsidy.
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
The Agreement will go before the City Council on February 27, 2025. The Agreement will
commence upon execution by both parties, following approval by City Council. The Business is
required to operate for a period of five (5) years. The operational requirements of the Agreement
will end five (5) years from the commencement of operation of the Business (the deadline for
which is July 1, 2025, at the latest), unless earlier terminated pursuant to the terms of the
Agreement. The Agreement itself does not have an explicit end-date. The subsidy is provided in
a lump-sum up front upon the Business meeting certain conditions of funding.
3. A description of the economic development subsidy, including the estimated total amount of
the expenditure of public funds by, or of revenue lost to, the local agency as a result of the
economic development subsidy.
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A-2
The economic development subsidy to be provided by the City consists of a payment to be made
by the City to the Business, from the Invest Palm Desert Program for capital improvements. The
amount of Two Hundred Thousand ($200,000) will be disbursed once approved by the City
Council and once the City staff administering the Agreement have determined the funding
conditions are satisfied.
4. A statement of the public purposes for the economic development subsidy.
The public purposes for the economic development subsidy include: (i) restoring a long-lasting
community fixture; (ii) the contribution to the economic vitality of the City; (iii) generation of
increased transient occupancy, sales and use taxes and other revenue to the City; (iv) creation
and provision of additional jobs in the City; and (v) otherwise improve economic and physical
conditions in the City. Taken together, these benefits would enhance the quality of facilities,
goods and services available to the City and its residents, such as police, fire, street maintenance,
and parks and recreation programs.
5. The projected tax revenue to the local agency as a result of the economic development
subsidy.
Based on historical sales tax revenues, staff projects that Papa Dan’s will generate
approximately $100,000 in sales tax revenue to the City in the next 5 years. The City is
anticipated to net over $87,000 in sales tax revenue over the next 5 years. The total amount of
$200,000 will be replenished within a 10-year period.
6. Estimated number of jobs created by the economic development subsidy, broken down by full-
time, part-time, and temporary positions.
It is anticipated that a total of 40-45 full-time positions will be created as a result of the City’s
economic development subsidy of the capital improvement project for the Papa Dan’s Pizza and
Pasta Restaurant. All jobs created are anticipated to be full-time, no part-time or temporary
positions are estimated at this time.
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