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Home My WebLink AboutRes No. 2912 DA96-1 Amend No. 3PLANNING COMMISSION RESOLUTION NO. 2912 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING THAT CITY COUNCIL APPROVE A THIRD AMENDMENT TO DEVELOPMENT AGREEMENT NO. 96-1 BETWEEN THE CITY OF PALM DESERT AND WVC RANCHO MIRAGE, INC. (FORMERLY STARWOOD) FOR THE DESERT WILLOW WESTIN, EXTENDING THE TERM OF THE DEVELOPMENT AGREEMENT, AND FINDING THE ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) CASE NO. DA25-0001 (DA 96-1 AMENDMENT 3) WHEREAS, WVC Rancho Mirage, Inc. (formerly Starwood), represented by William Vanos (“Applicant”), submitted an application requesting approval of a Third Amendment to Development Agreement No. 96-1, which governs the Desert Willow Westin area, a resort time-share project located at 39-500 Portola Avenue (“Project”), for the purposes of extending the term of the existing Development Agreement for a period of six (6) months to August 27, 2026 and does not modify any other terms; and WHEREAS, the Project Site is located within the Planned Residential District (PR-5) zoning district and is designated Golf Course & Resort Neighborhood by the Palm Desert General Plan; and WHEREAS, Development Agreement No. 96-1 was entered into between the City of Palm Desert and WVC Rancho Mirage, Inc. (formerly Starwood) on February 27, 1997, which was adopted by the City Council through Ordinance No. 824 for an initial term of fifteen (15) years; and WHEREAS, the Development Agreement was subsequently amended by a First Amendment in 2007 through Ordinance No. 1135 which extended the term by four (4) years, and by a Second Amendment in 2015 through Ordinance No. 1289, which extended the term by and additional ten (10) years to February 27, 2026; and WHEREAS, the Third Amendment to the Development Agreement would extend the term of Development Agreement No. 96-1 for an additional period of six (6) months to August 27, 2026 and does not authorize or result in any other modification of terms or physical changes to the environment; and WHEREAS, this Third Amendment does not constitute a project under the California Environmental Quality Act (CEQA) and is exempt from CEQA, pursuant to the common sense exemption set forth in CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty that there is no possibility the amendment may have a significant effect on the environment; and WHEREAS, the Development Services Department did publish a public hearing notice in The Desert Sun newspaper on January 21, 2026, as prescribed by the Palm Desert Municipal Code. Public hearing notices were also mailed to all property owners within 1,000 feet of the Project Site; and PLANNING COMMISSION RESOLUTION NO. 2912 2 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on February 3, 2026, hold a duly noticed public hearing to consider the request by Applicant for approval of the above-noted request; 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 Planning Commission did find the following facts and reasons, which are outlined in the staff report, exist to justify approval of said request; and NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows: SECTION 1. Recitals. The Planning Commission finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. SECTION 2. Findings on Development Agreement. The Planning Commission further finds that the Development Agreement, including any amendments thereto, continues to be consistent with the City’s General Plan. These findings are made in accordance with Government Code Sections 65868 and 65867.5 and constitute the basis for the Planning Commission’s approval of this Development Agreement. SECTION 3. CEQA. The Planning Commission finds that the Project has complied with the requirements of the “2024 Local Guidelines for Implementing the California Environmental Quality Act for the City of Palm Desert,” Resolution No. 2024-035, and is exempt from CEQA pursuant to the common sense exemption set forth in CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty that there is no possibility the amendment may have a significant effect on the environment. SECTION 4. Project Approval. The Planning Commission hereby recommends approval of DA25-0001. SECTION 5. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City’s office at 73510 Fred Waring Drive, Palm Desert, CA 92260. Rosie Lua, the Secretary to the Palm Desert Planning Commission, is the custodian of the record of proceedings. SECTION 6. Execution of Resolution. The Chairperson of the Planning Commission signs this Resolution, and the Secretary to the Commission shall attest and certify to the passage and adoption thereof. ADOPTED ON February 3, 2026. LINDSAY HOLT CHAIRPERSON PLANNING COMMISSION RESOLUTION NO. 2912 3 ATTEST: ROSIE LUA SECRETARY I, Rosie Lua, Secretary of the City of Palm Desert Planning Commission, hereby certify that Resolution No. 2912 is a full, true, and correct copy, and was duly adopted at a regular meeting of the Planning Commission of the City of Palm Desert on February 3, 2026, by the following vote: AYES: COLLUM, HOLT, MEYERHOFF, NICKERSON NOES: NONE ABSENT: GREENWOOD ABSTAIN: NONE RECUSED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on March _30_, 2026. ROSIE LUA SECRETARY PLANNING COMMISSION RESOLUTION NO. 2912 4 EXHIBIT A DEVELOPMENT AGREEMENT Third Amendment THIRD AMENDMENT TO DEVELOPMENT AGREEMENT THIS THIRD AMENDMENT TO DEVELOPMENT AGREEMENT (the “Third Amendment”), dated as of _________, ___, 20__ (“Effective Date”) is entered into by and between the CITY OF PALM DESERT, a municipal corporation (the “City”) and WVC RANCHO MIRAGE, INC., a Delaware corporation (“Starwood”). RECITALS This Third Amendment is entered into with reference to the following facts: A. City and lntrawest Resort Ownership Corporation, a corporation organized and existing under the laws of the Province of British Columbia, Canada (“IROC''), entered into a Development Agreement dated February 27, 1997, which Development Agreement was (i) recorded on August 29, 1997 as instrument number 315819 in the official records of the County Recorder for the County of Riverside, California, (ii) amended by that certain Amendment to Development Agreement (Development Agreement 06-03) (the “First Amendment”) dated as of May 10, 2007, and (iii) further amended by that certain Second Amendment to Development Agreement (the “Second Amendment”) dated as of September 10, 2015 (as so amended, and as assigned from time to time, the “DA”). All capitalized terms used herein without definition when first used shall have the meanings set forth in the DA. B. The DA provided IROC with a vested right to develop certain real property in the City of Palm Desert (“IROC Property”) as a resort club and time shares (the “lntrawest Project”). C. On or about October 12, 1998, IROC assigned and conveyed to Resort Ventures, L.P., a California limited partnership (“RV”) all of IROC's rights, title, interest and obligations under and to the DA and all related project documents. D. On or about June 26, 2006, RV sold to Starwood all of its rights, title and interest in and to that portion of IROC Property described on Exhibit “A” attached hereto and incorporated herein by this reference (the “Starwood Property”). The City gave its consent to the transfer from RV to Starwood of any and all rights and obligations under the terms of the DA to the extent that such rights and/or obligations arise from ownership of the Starwood Property. E. On or about June 26, 2006, Starwood applied for and the City approved a conceptual master plan (hereinafter the “Starwood Master Plan”) which provides for the development of 300 two-bedroom lockoff time share units in 18 two- story, three- story, and four-story buildings and a one-story sales/clubhouse facility of approximately 40,000 square feet, along with recreational amenities (hereinafter collectively referred to as the “Starwood Project”). F. City and Starwood now desire to amend the DA to extend the term of the DA to temporarily extend the term of the DA for a period of six (6) months, to allow the parties additional time to discuss terms for a longer-term extension. G. City has given notice of its intention to adopt this proposed Third Amendment, has conducted public hearings thereon pursuant to Government Code Section 65867 and Palm Desert Municipal Code Ordinances Nos. 341 and 589, has taken action in accordance with the California Environmental Quality Act, and has found that the provisions of this Third Amendment and its purposes are consistent with the objectives, policies, general land uses and programs specified in the City's General Plan and any applicable specific plan. H. The City, by electing to enter into this Third Amendment, acknowledges that the obligations of the City hereunder shall survive beyond the terms of the present City Council members of the City, and that such action will serve to bind City and future Councils to the obligations thereby undertaken. 2 935702-2 I. This Third Amendment and the consent of Starwood to each of its terms and conditions will eliminate uncertainty in planning and provide for the orderly development of the Starwood Property, eliminate uncertainty about the validity of exactions imposed by the City, and generally serve the public interest. [Remainder of page intentionally left blank] AGREEMENT NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. The original DA specified a term of fifteen (15) years. That original term was extended for an additional four (4) years by the First Amendment and by an additional ten (10) years by the Second Amendment. The parties now acknowledge that, through no fault of either party, the economic conditions in recent years have resulted in a much slower rate of development than was originally anticipated. Therefore, to allow the parties additional time to discuss terms for a longer-term extension of the DA, the parties agree that the term of the DA shall hereby be extended for an additional six (6) months beyond the term specified in the Second Amendment, making the new expiration date for the DA August 27, 2026. Nothing herein shall be construed as obligating the City to grant any further extension of the DA beyond August 27, 2026. 2. Except as specifically amended by the First Amendment, Second Amendment and this Third Amendment, the DA shall remain in full force and effect in accordance with its original terms and conditions, which are hereby restated and incorporated herein by reference. 3. Miscellaneous. 3.1 Binding Effect. This Third Amendment shall bind and benefit the heirs, successors, and assigns of Starwood and the City, respectively. 3.2 No Waiver. None of the terms or provisions of this Third Amendment may be waived, altered, modified, limited, or amended except by an agreement expressly referring hereto and to which the parties to be bound consent in writing. 3.3 Governing Law. This Third Amendment shall be governed by the laws of the State of California. 3.4 Reliance on Counsel/Entire Agreement. In executing this Third Amendment, no Party has relied on any inducements, promises, or representations by any other Party or its attorney, other than those set out in this Third Amendment. This instrument constitutes the entire, integrated understanding of the Parties with respect to the subject matter contained herein, and there are no other prior or contemporaneous oral or written agreements or understandings except as expressly set forth herein. 3.5 Severability. Each and every provision of this Third Amendment is and shall be construed as a separate and independent covenant and agreement. If any term or provision of this Third Amendment or the application thereof shall to any extent be held to be invalid or unenforceable, the remainder of this Third Amendment, or the application of such term or provision to circumstances other than those to which it is invalid or unenforceable, shall not be affected hereby, and each term and provision of this Third Amendment shall be valid and shall be enforced to the extent permitted by law. 3.6 Execution in Counterparts. This Third Amendment may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. 4 935702-2 IN WITNESS WHEREOF, the parties hereto have entered into this Third Amendment as of the day and year first written above. ATTEST: State of Florida ) County of Orange ) On ______________, ___, 2025 before me, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: Signature of Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Description of Attached Document 5 935702-2 Title or Type of Document: Document Date: Number of Pages: _____ Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer’s Name: Signer’s Name: Corporate Officer – Title(s): Corporate Officer – Title(s): Partner - Limited General Partner - Limited General Individual ☒ Attorney inf Fact Individual Attorney inf Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other: Other: Signer is Representing: Signer is Representing: 6 935702-2 IN WITNESS WHEREOF, the parties hereto have entered into this Third Amendment as of the day and year first written above. Signature Signature ATTEST: State of California ) County of Riverside ) On ______________, ___, 2025 before me, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: Signature of Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: 7 935702-2 Description of Attached Document Title or Type of Document: Document Date: Number of Pages: _____ Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer’s Name: Signer’s Name: Corporate Officer – Title(s): Corporate Officer – Title(s): Partner - Limited General Partner - Limited General Individual ☒ Attorney inf Fact Individual Attorney inf Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other: Other: Signer is Representing: Signer is Representing: