HomeMy WebLinkAboutRes 2010-68 PP 90-13 Aemndment 1 KKE Architects-B.Arial 08-26-2010 CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
STAFF REPORT
REQUEST: AMENDMENT TO RESOLUTION NO. 91-5 REMOVING
DEPARTMENT OF COMMUNITY DEVELOPMENT/PLANNING
CONDITION NUMBER 10 THAT THE WARING PLAZA
COMMERCIAL CENTER LOCATED AT 72-280 HIGHWAY 111
SHALL NOT INCLUDE A SUPERMARKET, AND CONSIDERATION
TO AUTHORIZE STAFF TO DRAFT AN AMENDMENT TO
CHAPTER 25.30 OF THE ZONING ORDIANCE TO ALLOW
SUPERMARKETS NOT EXCEEDING 70,000 GROSS SQUARE
FEET AS CONDITIONAL USES IN THE REGIONAL COMMERCIAL
PC (3) ZONE.
SUBMITTED BY: Kevin Swartz
Assistant Planner
APPLICANT: KKE Architects
Brian Arial
8 Mills Place
Pasadena, CA 91101
CASE NOS: PP 90-13 Amendment #1
DATE: August 26, 2010
CONTENTS: Draft Resolution
Legal Notice
Resolution 91-5 Condition #10 and #21
City Council Minutes dated December 13, 1990,January 10, 1991, and
February 14, 1991
Letter submitted by Robert Weigel dated August 11, 2010
Recommendation:
Waive further reading and adopt Resolution No. 1216 amending Resolution
No. 91-5 by removing Department of Community Development/Planning
Condition of Approval Number 10, that Waring Plaza shall not include a
supermarket; and,
By minute motion, authorize staff to draft an amendment to Chapter 25.30 of
the Zoning Ordinance to allow supermarkets not exceeding 70,000 gross
square feet as conditional uses in the Regional Commercial PC (3) zone.
PP 90-13 Amendment #1
August 26, 2010
Page2of4
Executive Summary:
The applicant is requesting an amendment to Resolution No. 91-5 removing Department of
Community Development Condition of Approval No. 10 that the Waring Plaza Commercial
Center shall not include a supermarket. Approval of staff's recommendation would allow a
supermarket in the former Mervyns building at the Waring Plaza Commercial Center.
In addition, staff is requesting that the City Council authorize staff to draft an amendment to
Chapter 25.30 of the Palm Desert Municipal Code to allow supermarkets smaller than
70,000 gross square feet in the Regional Commercial PC (3) Zone. Zoning restrictions
currently prohibit supermarkets larger than 50,000 square feet in the PC (3)zone. Approval
of staff's recommendation would allow supermarkets in the PC (3) zone not to exceed
70,000 square feet.
Backqround
A. Amendment to Condition of Approval Number 10
The project site is located at the northeast corner of Highway 111 and Fred Waring
Drive known as Waring Plaza. In 1990, Precise Plan 90-13 was filed by DSL
Service Company.
On February 14, 1991, the City Council approved Resolution No. 91-5 on a 5-0 vote
to construct a 190,394 square foot retail and commercial center known as Waring
Plaza. DSL proposed the project to the City Council with Downey Savings and
Albertson's contingently signed. Residents of Joshua Road had submitted petitions
in opposition of the project due to traffic concerns and the potential Albertson's
supermarket. Other residents were encouraged by Albertson's, because of its
location and sales tax generation. The City Council did not find a grocery store
appropriate at this location, and a condition of approval was added requiring that the
center not include a supermarket. Mervyns became the anchor tenant of the center,
and occupied the building until 2008 when the company went bankrupt. The 78,638
square foot building has been vacant since Mervyns left.
B. Prohibition of supermarkets over 50,000 qross square feet.
On February 28, 1991, the City Council passed Ordinance 636 allowing
supermarkets in the PC (3) zone not exceeding 20,000 gross square feet, which
accommodated Trader Joe's, but eliminated traditional supermarkets.
On January 12, 2006, the City Council amended the Zoning Ordinance Chapter
25.30 to allow supermarkets not exceeding 50,000 gross square feet as conditional
uses in the Regional Commercial PC (3) zone. The amendment allowed specialty
food stores (such as Bristol Farms and Whole Foods), which have grown into the
PP 90-13 Amendment #1
August 26, 2010
Page 3 of 4
40,000 to 50,000 square foot range.
C. General Plan Desiqnation and Zoninq
The property is currently designated Regional Commercial (C-R) in the General
Plan and is zoned Planned Commercial (PC 3).
D. Adiacent Zoninq and Land Use
North: Planned Commercial (PC3) / Commercial
South: Planned Commercial (PC3) Toys R Us
East: Residential Single Family (R-1) / Single Family Home
West: Planned Commercial (PC3) Commercial
Discussion•
Precise Plan 90-16 was approved and constructed with Mervyns as the primary anchor
tenant for approximately 15 years. Mervyns is no longer in business and the 78,638 square
foot building is vacant, along with other buildings within Waring Plaza Center.
Vons is currently located at 72-675 Highway 111, and the chain recently shut down a store
in Rancho Mirage off of Bob Hope Drive, across from the River. Vons has been looking for
a larger space to accommodate the two stores, and has expanded their products including
an organic section to compete with specialty markets. Vons recently purchased the
property with the intent of remodeling the building to accommodate a new 57,000 square
foot supermarket, with the additional square footage divided between three future tenants.
Vons was unaware of the condition of approval prohibiting supermarkets within the center.
Over the past two years the City has tried to address several large vacant buildings, mainly
in the PC (3) zone. Representatives of several food stores have approached the City about
locating in these prospective vacant spaces. The zoning restrictions prohibit supermarkets
larger than 50,000 square feet in the PC (3) zone. Traditional supermarkets have
expanded and have grown to 70,000 plus square feet. The 50,000 square foot restriction
only accommodates smaller markets such as Trader Joe's, Henry's, Whole Foods, and
Bristol Farms.
Analvsis:
In 1990 some residents on Joshua Road were in favor of a supermarket based on location
and sales tax to the City, while others opposed the Albertson's market based on traffic,
delivery hours, and noise. Traffic concerns have been mitigated, since the applicant cul-de-
sacced Joshua Road at Fred Waring Drive and provided an access gate. Hours of
operation and delivery hours can be addressed through the CUP process. Delivery hours
could be established similar to Bristol Farms and Albertson's, both of which back-up to
PP 90-13 Amendment #1
August 26, 2010
Page 4 of 4
residential developments.
Vons will provide residents of the affordable housing communities and single family homes
in the area the ability to walk to a supermarket. The proposed new Vons store is not a net
increase to business in the city. However, accommodating their request reflects changes
in the way grocers position themselves in the market today. Larger stores are able to offer
a larger selection of products and the ability to incorporate drugstores, which used to be in
separate but adjacent stores.
The subject condition of approval conflicts with Condition of Approval No. 21, which allows
commercial uses to be approved at an administrative level. Removing the subject condition
will eliminate the discrepancy. Additionally, staff believes that removing Condition of
Approval No. 10 and allowing a supermarket in the Waring Plaza Center will help revitalize
the center, and would attract more shoppers and other businesses as well.
Traditional supermarkets need more space to expand their products and compete with
specialty markets. If authorized, staff would draft an amendment to the Zoning Ordinance
to allow supermarkets smaller than 70,000 square feet as conditional uses in the Regional
Commercial PC (3) zone to the Planning Commission. The proposed Zoning Ordinance
Amendment would be presented to the Planning Commission for consideration before
returning to the City Council.
Submitted by: Departme .
�� �
Kevin Swartz Lauri Aylaian
Assistant Planner Director, Community Development
CITY COUNCILACTION
APPROVED DEN�FD �,�,,,,��,,,
Approval: . RECEIVED OTHER .�
�
MEET G DA '�
J n . Wohlmuth AYES � � � � �
ity nager NOEs:
ABSENTs
ABSTAINt
VERIFIED BYs
Original on File ivit6 Clty C� k's Office
* By Minute Motion, refer the case back to staff
for full development processing through the Planning
Commission and ultimately City Council. 4-0
RESOLUTION NO. 2010-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, AMENDING RESOLUTION NO. 91-5
REMOVING DEPARTMENT OF COMMUNITY DEVELOPMENT /
PLANNING CONDITION NUMBER 10, THAT THE WARING PLAZA
COMMERCIAL CENTER SHALL NOT INCLUDE A SUPERMARKET
LOCATED AT 72-280 HIGHWAY 111.
WHEREAS, the City Council of the City of Palm Desert, California, did on the 26tn
day of August 2010, hold a duly noticed public hearing to consider a request by VONS for
approval of the above noted; and
WHEREAS, said application has complied with the requirements of the "City of
Palm Desert Procedure for Implementation of the California Environmental Quality Act",
Resolution No. 06-78, in that the Director of Community Development has determined
that the request is not a project under CEQA; and
WHEREAS, at said public hearing, upon hearing and considering all testimony
and arguments, if any, of all interested persons desiring to be heard, the City Council
finds the following facts and reasons to exist to approve said request:
1 . Vons will provide residents of the affordable housing communities and
single family homes in the area the ability to walk to a supermarket.
2. Allowing a supermarket in the Waring Plaza Center will help revitalize the
center, and will attract more shoppers and other businesses as well.
3. Hours of operation and delivery hours can be addressed and their impacts,
if any, mitigated through the CUP process.
4. Traffic concerns expressed when the original condition of approval was
adopted in 1991 have been mitigated, since the original applicant cul-de-
sacced Joshua Road at Fred Waring Drive and provided an access gate.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert, California, as follows:
1. That the above recitations are true and correct and constitute the findings of
the City Council in this case.
2. That the City Council does hereby amend Resolution No. 91-5 removing
Department of Community Development Condition Number 10 requiring
that the Waring Plaza Commercial Center shall not include a
supermarket.
RESOLUTION N0.2010_6s
PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert
City Council, held on 26th day of August, 2010, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Cindy Finerty, Mayor
ATTEST:
Rachelle Klassen, City Clerk
City of Palm Desert, California
2
RESOLUTION NO. 2oio-6s
CONDITIONS OF APPROVAL
CASE NOS. PP 90-13 AMENDMENT #1
Department of Communitv Development:
1. All other conditions of approval from City Council Resolution No. 91-5 shall
remain in effect.
3
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CITY OF PALM DESERT
LEGAL NOTICE
PERMIT NO. PP 90-13 Amendment#1
NOTICE IS HEREBY GIVEN that a public hearing will be held before the Palm Desert
City Council for consideration of an amendment to Resolution No. 91-5 removing
Department of Community DevelopmenUPlanning Condition Number 10 that the Waring
Plaza Commercial Center shall not include a supermarket located at 72-280 Highway
111. Staff is also requesting authorization to draft an amendment to Chapter 25.30 of
the Zoning Ordinance to allow supermarkets not exceeding 70,000 gross square feet as
Conditional Uses in the Regional Commercial PC (3)zone.
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SAID public hearing will be held on Thursday, August 26, 2010 at 4:00 p.m. in the Council
Chamber at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert,
California, at which time and place all interested persons are invited to attend and be
heard. Written comments concerning all items covered by this public hearing notice shall
be accepted up to the date of the hearing. Information concerning the proposed project is
available for review in the Department of Community Development at the above address
between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. If you challenge
the proposed actions in court, you may be limited to raising only those issues you or
someone else raised at the public hearing described in this notice, or in written
correspondence delivered to the City Council at, or prior to,the public hearing.
PUBLISH: Desert Sun RACHELLE KLASSEN, City Clerk
August 14, 2010 Palm Desert City Council
�
RESOLUTION N0. 91-5
8. That pursuant to Resolutfon No. 90-13Q this development sha11 pay
the appropriate comncercial development low 3ncome housing
mitigation fee ($1 .00 per square foot) .
9. That the landscaping in the parking lot comply with the provisions
of the Master Parking Lot Tree Plan.
I0. That the center shall not include a supermarket.
11 . That direct access from Highway 1ZZ shall be limited to right turn
in and =ight turn out. No median break or left turn movements
shall be permitted.
12. That security and parking lot lighting shall be mounted on the east
perimeter wali and directed downward and toward the DSL site. In
addition a light plan shall be required confirming compliance w�.th
the city' s parking lot lighting restrictions.
�13� Delivery hours to the center shall be ltmited to 6:00 a.m. to 10:00
p.m.
14. Store hours for the center shal� be iimited to 6:00 a.m. to 12:00
p.m. (midnight) 7 days a week.
15. That the perimeter driveway behind the buaLldings shall have speed
bumps iastalled at 100-150 foot intervals.
15 That the south end of Joshua Road be cul-de-sacced to prevent
access to or from Fred Waring Drive and that for the convenience
of residents of the Joshua Road area ( i.e. residents on Joshua
Road, Manzanita Drive, Hrushwood Drive, Cactus Drive and Cho11a
Drive) DSL shali install an automatic gate in the wall at the west
end of Manzanita Drive and issue to resident$ of the area remote
controi devices to operate said gate. '
17. That pursuant to the noise study prepared by Gordon Bricken and
Associates, the following conditions shall be imposed:
a. Enclose loading docka at the ma�ora and market.
b. Post siqns requiring all loading and entrance doors to remain
closed at a21 times except dur�.ng loading and unloading.
c. Require aIl engines to be shut off if a truck is parked more
than five ( 5) minutes. Post accordingly.
d. Install ' bumpers on docks to cushion impacts of trucks when
backing.�p.
5
RESOLUTION NO. 91-5
' 2�. That deviation from the t
ype of use and/or specific tenant
deiineated in Exhibit "C" shall be permitted sub�ect to approval
of the Director of Economic Development.
Department of Publ3c Works:
1 . Drainage fees in accordance with Palm Desert Municipal Code Section
26.49 sha12 be paid pr3or to issuance of ar�y permits associated
with this pro�ect.
2. Any drainage facilitfes construction required for this project
shali be contingent upon a drainage study prepared by a registered
civil engineer that is reviewed and approved by the department of
public works prior to start of construction.
3. Full publ,ic improvements, as required by Sections 26.4Q and 26.44
of the Palm Deaert MuniCipal Code, shall be installed in accordance
with applicable city and Caltrana standards. Improvements shall
f.nciude, but not be limited to the foliowing:
, * Construction of a decelerat�ion/acceleration lane for the
Highway 111 pro�ect entry.
* Construction of a deceleration/acceleration lane for the
Fred Waring Drive entries.
* Provisions for the instaliation of a raised, landscaped
median island in Fred Waring Drive and Fred Waring Drive
entry.
* Construction of perimeter sidewalk in an appropriate size
and configuration along all property frontages.
* Construction of bus bays in accordance with Sunline
Transit Agency specifioations.
* Dedication of any right-of-way required to accommodate
these improvements ahall be provided prior to the
issuance of s�ny permits associated with this pro,�ect.
In addition to the above noted items, those traffic mitiga�ion
measures identified in the pro�ect Traff�.c Impact Study prepared
by ASL Consulting Engineers shall be provided. The sub�ect report
and proposed mitigation measures shall be approved by the public
works department.
4. Signalizatian Eees, in accordance with City of Palm Desert
Resolution Nos. 79-17 and 79-55, shail be paid prior to issuance
of any permit� associated with this pro�ect.
5. As sequired under Palm Desert Municipal Code Section 26. 28, and in
accordance with Sections 26.40 and 26.44, compiete improvement
plans and sp�clficatione shail be submitted to the director of
public works for checking and approval before construction of any
7
MINUTES
REGULAR MEE'I'II�tG OF TT� PALM DESERT CTTY COUNQL DECEIMIBER 13� 1990
: . : � * • s s : s s s s * s v s : s s s s # * s s s s s s s * s s s s s
ndvantaEeous not just to the business but also to the consumer in terms of explaining
what the business has to offer. At the same time, the Cammittee felt Palm Desert is as
beautiful as it is ba;ause of the concern everyone shares in trying to avoid clutter, and
having too much information on signs could be dangerous and distract people who are
driving.
MRS. JUNE PEEVER, 74-123 Aster Drive, said she would like to see an ordinance
requiring ihe posting of visible stre�t numbers on businesses.
Councilman Kelly stated that the Council agreed there was a problem and that the Police
Advisory Committee had been working with staff on this particular issue.
With no further testimony offered, Mayor Snyder declazed the pubtic hearing �Iosed.
Councilmember Benson moved to waive further reading and pass Ordinance No. ¢�l_ to second
reading. Motion was seconded by Kelly and cazried by unanimous vote of the Council.
Councilman Kelly said Council had recently denied requests from several applicants to
include goods and services on their signs. He asked if they would be notified of this sign
ordinance amendment.
Mr. Diaz respvnded that staff would notify these applicants.
Mayor Snyder called a r+acess at 10:05 p.m, and re�o�nvened the meeting at 10:15 p.m.
F. REOUEST FQR APPROVAL OF A GENERAL PLAN AMENDMENT, CHANGE
OF ZONE, PRECISE PLAN OF DFSIGN, AND NEGATIVE DECLARATION OF .
ENVIRONMENTAL IMPACT TO ALLOW CONSTRUCTION OF
APPROXIMATELY 19Q,394SQ.Ff. OF RETAIL AND COMMERCIAL BUILDINGS
ON THE EAST SIDE OF HIGHWAY 111 BETWEEN FRED WARING DRIVE AND
PARKVIEW DRIVE. DSL SERVICE COMPANY. APPLICANT.
Mr. Smith reviewed the staff report, noting that residents of Joshua Road had submitted
petitions at the August 21, 1990, Planning Commission meeting in opposition to this
project. Since that time, the applicant had met and worked with those residents and
made many changes to the plan, including reduction of the retail and commercial
buildings to 190,0900 square feet from 220,000 square feet, cul-de-saccing Joshua Road
at Fred Waring, and providing an access gate with remote control. He addeti that all
buildings would be single story and that landscaping had been increased from 20% to
2396 on the site. He noted a letter had been received from Planning Commission Bob
Downs who was absent from the November 6, 1990, Planning Cammission meeting
stadng that he would have voted in favor of the project. He said two conditions had been
added since the Planning Commission meeting; 1) agreement to participate in an
assessment district for the People Mover should such a district be formed; 2) requirement
for a six foot masonry wall across the end of the cul-de-sae.
Mayor Snyder declared the public hearing o�n and invited testimony from the applicant.
�- ^
32
r�fNl)'TFS
REGULAR IVf�TTNG OF c PALM DESERT CTTY C�iJN( DECIIbiBER I3, 1990
* * * s s s * s s s s s s s s s s * s s s * s s * . s * * s s s s s * s *
MR.. MORRIS McALLISTER, 99t8 Hailden Avenue, Downey, Chairman and President
of Downey Savings & Loan, said DSL was a wholly-owned subsidiary of Downey Savings.
He noted they had three offices in the Coachella Valley, with approximately 2,000
customers in Palm Desert. Cusiomers doing their banking in La Quinta and Palm
Springs had besn asking for years to have a bcanch affice in Patm Desert, which they
would have if this project is approved by the Council.
MR. WENDELL HINDLEY, Vice President of Real Estate for DSL Service Company,
residing at 2781 Spur Lane in Rossmore, stated DSL had worked very diligently in the
last five months with ad}acent residents to make this a project they would be proud of
and able to live with. He said he had a petidon signed by residents of 20 of the 30
homes in favor of this project. He noted one of the main concerns was inclusion of the
<< ._- Albertson's market as part of the development but said it would add 60 to 65 new jobs
C°�"`�' � in the City as well as transferring an additional 20 individuals into the area who reside
outside the community. With regard to parking and landscaping, he said they would be
providing more spaces than reqaired, close to four and a half acres of landscaping, and
one tree for every three puking stalls. He concluded his report and said objections
relative to noise, lighting, trash, etc., had been mitigated.
MR. RON GREGORY, project landscape architect, 73-550 Pinyon Sue�t, said he would
be using state-of-the-art water-efficient landscaping design. The tawn area had been
reduced to SOWO and would be watered with drip irrigation. He added that the
landscaping would screen the supermazket so it would not look like a mazket was in the
project.
Mayor Snyder invited tesdmony in FAVOR. The following individuals were in favor of the
pmject because of reduced traffic, thc addition of a supermarket and Downey Savings branch
in the City, and keeping sales tax in Palm Desert:
- Beverly Vorwailer, 72-445 Cholla Drive
- Chazles Whitney, 1fie Lakes Country Club
- Leonazd Penzino, 39-123 Warner Springs, Palm Desert Greens
- Jim Gangwer, 74-45? Pairway Drive
- Ray and Olga Contrusi, 41-370 Woodhaven Drive West
- I�ioward and June Peever, 74-123 Aster Drive
- Marilyn Estenson, 74-043 El Cortez
Mayor Snyder invited testimony in OPPOSTTION to this request.
MRS. DONNA EVERS, 72-450 Manzanita, said she was very intimidated by the
idea of having a cul-de-sac adjacent to her property and was concerned with the
traffic. She agreed DSL had been very easy to work with,but she did not like the
feeling of being trapped in a high commercial area. She suggested having a gace
instead of a wall at Joshua and Fred Waring and leaving the other end open.
With no fiirther tesdmony offered, Mayor Snyder declared the public hearing closed,
33
M1NiJTF.S
REGULAR MEEZ'Il�IG OF TI� PALM DESERT GTTY COUNCII, DECEMBER 13, 1990
: s * s r� s �s s s s s s s * s * . s s : s s a� * * � s : s s . s s s * s �
Council_ C�m,gg�Qg�gons:
•tes: Felt this was the product of a lot of work, compromise, and understanding
between people and goes a long way to solving problems in this area. Impressed by the
r�cycling issue ant! landscaping. Would welcome DSL as a member of the community.
Objected to parking spaces behind the buildings because people would not drive around
to the back and had a difficult time including those spaces as part of the parking
requirement for the project. Felt tiie site was enormousty important to the future of
Palm Desert and needs to tie in with the Palm Desert Town Center, Ahmanson project,
and People Mover project. Did not think any additional markets were needed along
Highway 111.
���� Agrced with Crites. Felt Albertson's mi�ht be a good addition to the City in
sQme other location but not here. Commended DSL for what they have done at that
corner, w�'iicTi �s t e entrance o the City. However, felt it was too valuable a piece of
property to have a sea of cars out in front. Said the Council had decided in 1974 that
the City should not have supermarkets or used car lots on Highway 111,and she did not
feel it was an appropriate use at this corner.
Wilson: Said the project had a lot of piuses; felt it looked good and that the landscaping
looked good. Agre�d with most of the people who testified and would like to see a
Dowr�ey Savings branch in Palm Desert. However, was concerned that this property and
the Ahmanson property across the Highway from Toys R Us shoutd be an integral part
of the shopping experience and should be tied in with the Palm Desert Town Center and
Highway 111 shopping centers. Said Council had talked about a grocery store at this
location and had denied it over and over again but had compromised a bit with a
Farmer's Market that would be different from a typical grocery store. Felt tiie site needs
to blend in and provide a shopping experience that will not have conflicting traffic but
will have people who will go to one loca.tion, park, and use the People Mover to take
care of different shopping. Had trouble with the grocery store part of the project.
Kell,� Impressed both with this being the first project to really talk about recycling and
with the landscaping design. Said he lived near the Raiph's grocery store in Indian Wells,
felt it was one of the nicest looking shopping centers. However, agreeti that this was not
a good place for a grocery store.
�nyder: Felt this was a beautiful project; however, was a ainst the roce store because
of i�location. Agreed the Ralph's center at the entrance to Indian Wells was a beautifu
place and this coutd be the same.
Mr. Hindley stated that if the supermazket was the only problem and a retail
development would be satisfactory as presented without the Albertson's, DSI, would
request that Council approve the General Plan Amendment, Zone Change, and Precise
Plan, excluding a supermarket as a use. Upon question by Kelly, he responded that they
had Me�'s as a tenant and had also talked to TJ Mack and Ross.
Mr. Erwin stated that with regard to the General Plan Amendment and Change of Zone,
he did not believe the specific use of the land for a market had any application.
„ �-
� � 34
MII�iIJT�S
REGULAR ME��'TING OF T: PALM DESERT C1TY COUNCL DECEMBER 13, 1990
* * * * s • * s s s s : : s * * • s * s s # s s s # -* s . # s s . s s s *
Mr. Diaz suggested amending the regionai commercial zone ordinance to delete
supermazkets because there was only one other piece of property zoned regionat
commercial along Highway 111, which was the Ahmanson piece across the street. He
asked the City Attorney whether Ordinance No. 532 could be introduced at this meedng,
with second reading to be held subject to the amendment to the zaning ordinance
deleting supermazkets from the regional commercial zone.
Mr. Erwin responded that such deletion would require going through the Planning
Commission hearing process.
Councilman Crites said he agreed with Councilman Wilson and felt the property anchors
the western end of the core commercial area, and whatever is put there needs to provide
a "shopping experience", something that draws people to the area. He added that he was
still concerned with whether some 150 parldng spaces were really useable pazking spaces.
Mr. Hindley said those spaces had been set up as employee parking.
Councilman Crites moved to continue this matter to the meeting of January 10, 1991. Motion
died for lack of a second.
Councilmember Benson asked whether the applicant had indicated this would not be a
viable project without the supermarket.
Mr. Hindley responded that it would just not be as good economically.
Benson said althaugh she was against the supermarket, she did not see the urgency in
approving the project without first knowing exactly what stores would be included.
Councilman Kelly said he felt it was a good project without the supermarket.
Mayor Snyder agreed and said he did not see where approving the zone change would
cause any difficulty since the applicant must come back with a precise plan which wi11
indicate what the other building will be.
Councilman Witson said he would like to move ahead but would hate to sign a blank
check. He said he had yet to see any imaginative effort put into this site, which is the
key location and entrance to the commnniry. He asked if there was a way to move ahead
with first reading of the ordinance, providing that not only do we move ahead with the
amendment to exclude grocery stores but also move ahead with a creative effort to come
up with some uses before second reading.
Mr. Erwin responded that Council could pass the ordinance to second reading and hold
second reading, the Precise Plan, and the General Plan Amendment undl after the
amendrrzent to exclude grocery stores as a use for regional commercial.
35
MINUTES
REGULAR 1►�TIIVG OF THE PALM DESIItT C1TY COUNCII.. DECIIViBIIt 13, 1990
. , s s s s * * s s * s � s s s s s s s * .� * s s s * * � s s s s * • s *
Councilman Wii�ore moved to: 1) Waive further reading and pass Ordinance No. �to second
reading; 2) Instruct staff,including the Planning Department, Economic Development division,and City
Manager's office, to sit down with thc developer in a brainstorming session to try and come up with
something imaginative and creative that would convince the Council to put the final adoption on this
project. Motion was saconded by Crites and carricd by unanimous vote.
G. BEQUEST FOR APPROVAL 4F FINAL MAP FOR TRACT 24289-R REVERSION
TO ACREAGE (PALM DESERT REDEVELOPMENT AGENCY, APPLICAN'1�.
Mr. Joe Gaugush reviewed the staff report, noting that this was for the Civic Center site.
He said he would aiso be asking the Redevelopment Agency Board to authorize the
Chairman to exocute the map on behatf of the Agency.
Mayor Snyder declared the public hearing oven and invited testimony in FAVOR of or
OPP�SED to this request. None was offered, and he declared the public hearing clo •
Councilman Crites moved to waive further reading and adopt Resolution No. 90_142,approving
Tract No. 24289-R. Motion was seconded by Kelly and cazried by unanimous vote of the Council.
XIX. ORAL COMMLTrTICATIONS - D
None
XX. ADJOURNl1�lEN'T
Upon motion by Crites, second by Kelly,and unanimous vote of the City Council, Mayor Snyder
adjourned the meeting at 11:43 p.m.
� .,
��' � ,�
WALTER H. SNYDER, MAY9
ATTEST:
_ , . � � '
;: �
�i������ ��
' SHEILA R. GI LIGAN, C,I Y CLERK
CITY OF PALM DESE , CALIFORNTA
� �
. � � 36
MIl�ITTI'FS
REGU[.AR PALM DESIItT "TY COUNCII.. 14�'TII�iG JANUARY 10, 1991
*� s • s � • s s s r • s �e s s * . s s � s s r > s r . : s s . s . . :
S. Waive further reading and adopt Agency Ra4olution No. �, approving
proposed Amendment No. 7 to the Rodevelopmtnt Plan, As Amended, for
Project Area No. 1, As Amende�, and the Negative Declaration prepared in
connection therewith.
6. Waive further reading and adopt City Council Resoludon No. 91-�,approving
psoposed Amendment No. 7 to the Redevelopment Plan, As Amended, for
Pmject Area No. 1, As Amende�, and the Negative De�laradon prepared in
connection thercwith.
7. Waive further reading and pass City Council Ordinance No. ¢�Q to second
reading, appmving and adopting Amendment No. 7 to the Redevetopment
Plan, As Amended, for Project Area No. 1, As Amended.
Councilman Wilson sa;anded the motion, and it carriod by unanimous vote of the Cauncil and
Agency Board.
Chairman Snyder recessed the Redevelopment Agency mceting at 7:25 p.m.until adjournment
of the Ciry Council me�ting.
B. REOUFST FOR APPROVAI, OF A GFx�RAI. pLAN AMENDMENT, CHANGE
OF ZONE, PRECISE PLAN OF DESIGN� AND NEGATIVE DF,CLARATION OF
ENVIRONMENTAL IMPACT TO ALLOW CONSTRUCTION OF
APPROXIMATELY 194,394SQ.FT.�F RETAII. AND COMMERCIAL BUII.DINGS
ON T'HE EAST SIDE (JF HIGHWAY 111 BETWEEN FRED WARING DRIVE AND
PARKYIEW DRIVE. DSL SERVICE COMPANY. APPLICANT. (Continued from
� the Me�ting of Deeember 13, 1990.)
Mr. Diaz reviewed the staff r�epoR, noting that this matter was continual to allow staff
and the applicant to work out rcvisions to the plan that would provide something
different and imaginative in terms of this pazticulaz development. He stated that the
su ennazket use had been droop�and that there were changes in the esign o the
bu ings and tcnant improvements. He said there had been some feedback in terms of
the plot plan and architscturai design of the buildings, wttich the applicant would address.
He said staff continued to recommend approval as indicated in the staff report.
Councilman Crites askod if there was anything that tied the zoning of this property to
the plan and whether a development agreement would ensRu+e that what is approved is
what gocs in.
Mr. Diaz responded that there was nathing to prevent someone else from coming in with
a different dtsign.
Councilman Wilson said the project was being sold on the idea that there are some very
attractive tenants pmposed to go inW it,and he asked what guaranta there was that che
plan would go through with these tenants. Mr. Diaz responded that there was nothing
to guarantee it.
19
MII�iiJT'FS
REGULAR PA111s DESIItT 'CY COUNCII. MEEI'II�1C,, IANUARY 10, 1991
* i �r * t ! t • i ♦ i ♦ ♦ r i i • i * * * • f * • i i • i � t � • • *
Councilman Kelly asked if there was anything that could be writttn into a development
agreernent w assun that the tenants being considered are the ones that will in fact be
there.
Mr. Erwin responded that it could bc done by the development agreement but that it
must be done very specifically so that it is not an invalid condition.
Mayor Snyder noted this public hearing was still�.and invited testimony from the applicanc.
MR. WE2vDEI.L HIIJDLEY, representing the applicant, said he ha� met with staff
ngarding uses, layout, parking, etc., and had come up with a plan satisfactory to staff.
Ho said the Architoctural Review Commission had appmve� the azchitecture; however,
if it was not what the Council wanted, the applicamt was willing to work with staff to
provide whatever woutd be satisfactory to the Council. He noted that the applicant had
tried W provide a differtnt tenant mix with Mervyn's,Silo, Bookstar, etc.
Upon question by Councilman Kelly relative to whether a lease had been signed by
Mervyn's,Mr. Hindiey respcmded that the applicant had a sale with Mervyn's and was
negotiating a davelopment a�reement with them. He added that they had leases with
Silo and Bookstaz. �
Councilman Crites stated that one of the Council's concerns was that this proposal dces
not have any excitement. He said he had visitod a new mall just east of Scottsdale,
Arizona, which had included a lot of different and unique things to bring pcople in and
make them want to stay, and he suggested that the applicant look at this project. He
added that the architecture needs to consider innovative uses for space.
Councilman Wilson said he had met with the applicant to review the renderings and
expressod concem that this was another cookie cutter example of the 111 Town Center
pmject. He asked if the applicant had any aew ideas with him at this time.
Mr. Hindley rresspanded that the applicant was willing to work with the Architectural
Review Commission oa the facade and azchitecturat treatment to provide whatever che
Council wished.
Councilmember Benson said she thought the applicant would be returning to this meecing
with ideas for nnique features that could be included in the project; however, all that had
boen done was to remove the supermazket, and she did not see anything different that
what was shown previously,
Mr. Hindley responded that the architecture was not.brought up at the last meeting, only
issues dealing with parking and with unique uses that would bring people to Palm Desert.
MR. RON GREGORY, landscape azchitect for the project, reviewe� the proposed
landscaping, nodng that the intent was not �to handle a maximum number of people in
the three public space areas but was for smaller groups of people who do not want to
� 20 `
M1I�IT.7TES
REGUI.AR PALM DESIItT "TY COIJNCII. MEETING JANUARY t0, 1991
'* # * �M * * • * i i � * * i i �t i # • • • * • a , • s �Ir r • t * i # s i
mbe around a lot of other people. He addcd that each of the areas wouid accommodate
appm�cimately 20 people comfortably.
Mayor Snyder invited ttstimony in FAVOR of this projoct. None was offered. He invited
tesdmony in OPPOSITION ta the project.
David Evers, 72-451 Manzanita, asked whether appmvai of the project would
automatically cul-dasac Parkview. He also expressed contxrn with the air condidoning
and trash compactors, noting that they had inside locations in the previous plans.
Mr. Hindley responded that all canditions placed on the project would still be in effect.
Mr. Holtz addod that with regard to the cul-de-sac, it would be done at the southerly end
of Joshua Road.
With no further tesdmony offereti, Mayor Snyder dxlared the public hearing closed•
Council Discussion:
� Felt it would be appropriate for City staff and tht City Attorney to work with
the developer to include a condition relative to reqviring specific tenants by name or
comparable worth value. He sugg� that two Councilmembers visit the Scottsdale,
Arizona, project previausly mentioned and then sit dovm with the applicant and his staff
to brainstorm ways to make this project exciting.
K,� Felt naming particular companies as tenants was probably not appropriate but felt
some kind of wording needed to be includod requiring that a new tenant be comparable;
if a tenant is changed, Council would have the oppofitnity W approve or disapprove said
change. This would keep it at the level the citizens of Palm Desert want. Felt the
developer had addressai concerns expressed at the last me�ting and that this was an
opportunity to provide something the ci�s of Palm Des�rt have asked for. If
conditions could be placed as discussed at this meeting, the projoct should move ahead.
Wilson: Said he was still looldng for the "wow"and had not found it in this project. Said
the Council was being asked to make a major decision to amend the General Plan and
change the zone, and a good reas�on was nceded to do so. Said if Council could see some
pictures or if there was some way to continue this matt�er to be sure Palm Desert gets
a "wow"projxt, he would like to se� the projcci move forwazd.
�»vder: Said he was tire� of looldng at this blank piece of property. Liked che
landscaping, the treatment to the two corners, the plaza in the middle, the number of
trees, and the effort the applicant had made to provide a beautiful project. Felt che
project was a long time coming and said he was ready to go ahead with it.
�Nilson: Said he was unhappy with che architecture and having the same mold of
mediterranean look from corner to corner. Asked if this was something the Architectural
21
MIlVZ]'I'FS
REGI7LAR PAI.M DESIItT TY CULJNCII. 1V�'TII�IG iANLIARY 10, 1991
i • i • * ♦ • • * i • � i * t �t t ilt i � t i w i • i • • i ♦ * • * i • t
Review Commission is comfortable with or it if was inherent in the development of Palm
Desert.
Mr. Diaz responded that he felt the Commission had become comfortable with the
particulaz look. Also, the charge to the Architectural Review Commission was not to
come up with something unique but rather to have something be compatible. If Cauncil
wishes to change that, the Commission aeods to be advised not w be afraid to be a little
mon imaginative. Felt Counciiman Crites' suggestion to appoint a subcommitta,
including some memben of the Architectural Review Commission, to look at the
architectural design and also the Iease issue was a good one. This could be placed as
a condition of the Precise Plan.
j�� Felt now was a good time to appoint a subcommittee of two representatives from
the Architatural Review Commission and twa Councilmembtrs to work with staff on
this pmje�t and work towards something different from what we have. He added that
he liked the indian pueblo type of architecture.
Councilman Kelly moved to, by Minute Motion, move ahead with the pmjoct with added
conditions relative to appointment of a subcommittee to include representatives fram tht Architectural
Review Commission and City Council to work with staff to come up with somtthing different and also —
look at other ways W attract high level custamers to tt�e project. Motion was seconded by Snyder.
Upon question by Crites, Mr. Diaz confirmed that approval of the Precise Plan would
appmve the location of the buildings and take away the abiliry to mave anything around.
Councilmember Henson agrad that this projxt did not have any exciting features and
was not in favor of approving it until seeing what the architectvre will look like and
where the buildings will be located. She said she sdll liked the lot and that it was okay
with her to keep it the way it is now.
Mr. Diaz stated there had been a great deal of discussion between the applicanc and
homeownen and that if the main concxrn was the bad location of the buildings, he felt
something could be warkod out.
Upon question by Councilman Wilson, Mr. Erwin responded that it was his suggestion,
because of concerns expressed with regard to tenant usage, etc., that the Council hold
second rrading of the ordinanee for the zone change and the plot plan undl conditions
can be rewritten. He suggested a modon to continue the matter.
Mr. Diaz said that if this matter was going to be continued, he would suggest continuing
it for one month and appointing the subcommittet to work with staff and the applicant
on spxific details and cancerns while he and the City Attflrney work on the wording of
the conditions of approval.
Mayor Snyder called for the votc on Kelly's modon. Modon was defeated by a 2-3 vote, with
Councilmembers Benson, Crites, and Wilson voting NO.
^ 22 '
' MII�i[I'I'F�S
REGUi.AR PALM DESF.RT 1'Y Cf3iTNCII. 11�ETiNG JANUARY 10, 1991
# • � * * i i * i� # * r � i +� # • � i # �R • • * !� • * �t i # • * * • t
Mayor Snyder r� the public hearing.
Councilman Wilson moved to continue the item for one month, appoint a subcommittee of two
members of the Ciry Council, two members of the Architxtural Review Commission, and staff to meet
with the applicant and work vigorously in attempting to identify some of ldnd of architectural space
and creative environment that will make the project worthy of a change of zone and general plan
amendment. Counciltnan Crites seconded the motion, and it carried by a 3-2 vote with Councilmen
Kelly and Snyder voting NO.
Subsequent action included the appointment of Councilmen Wilson and Kelly as the City
Council representatives W the subcommittce. Mr. Diaz said he would ask the Chairman
and Vice Chairman of the Architectural Review Commission to participate.
C. $E,QUFST FOR APPROVAL OF A PRECISE PLAN OF DESIGN TO ALLOW
CONSTRUCTION OF AN 80,300 SQUARE FOOT COMMERCIAL RETAIL
CENTER ON AN 8.5 ACRE STfE AT THE SOUTHEAST CORNE,R OF FRED
WARINC3 DRNE AND TOWN C� WAY.
Mr.Drell reviewed the staff report, noting that this was Site �4 of th� original Ahmanson
proposal approved by Council last ycaz. Iic said thc property had been sold by
Ahmanson to a company called Enjoy Davelopment. He said Enjoy was asking to be
releaud from the condition reserving a depth of 100 fat along Fred Waring Drive for
professional afhce use only and wantcd the entire project to be retail. He said one
resident from Fairhaven had attende� the Planning Commission hraring and requested
that the landscaping and palm troes be no higher tt�an the walls. He noted that Mr. Ben
Pickell had requested that a pedestrian a�cess be included because he uses the lot as a
shortcut to the Palm Desert town Center and that the applicant had agreod to have such
a condition added. He said the projxt wauld inciude commerciat recycling; included in
every lease would bt a program of implementation and collection from the tenants to
facilitate recyeling on the site. He reviewed the proposed access to the project.
Councilman Kelly said that what makes a recycling program succ�ssful is good publicity
and education. He suggeste� combining Pub}ic Works canditions #5 and #12 into one.
Upon question by Councilman Crites relative to right turn access on Town Center Way
and how far down the stroet the curb would have to be painted red, Mr. Drell responded
that it was the opinion of the Fire Marshal that in order for the snorkel truck to turn into
the pro,ject, ai1 parking on the street would have to be eliminatod, with re� curbs 50 to
100 feet. That was the main reasan for a new left turn cut on Fred Waring Drive.
23
M��IUZ'F_S
REGULAR PAIIVI DESERT CTTY COUNCII. MEETING FEBRUARY 14, 1991
s . * s s s * s s s s * . * s * s : * s s s * � s s s s s * s • : # s s .
XVIII.PUBLIC HEARINGS
A. REOUEST ��R_ APPROVAL OF A GENERAL PLAN AMENDMENT, CHANGE
OF ZONE, PRECISE PLAN OF DESIGN, AND NEGATIVE DECLARATION OF
ENVIRONMENTAL IMPACT TO ALLOW CONSTRUCTION OF
APPROXIMATELY 190,394SQ. FT. OF RETAIL AND COMMERCIAL BUII.DINGS
ON THE EAST SIDE OF HIGHWAY 111 BETWEEN FRED WARING DRIVE AND
PARKVIEW DRIVE. DSL SERVICE COMPANY. APPLICANT, (Continued from
the Meetings of December 13, 1990, and January 10, 1991.)
Associate Planner Steve Smith reviewed the staff report, noting that there were several
issues from the January 10, 1991, meeting that neecied to be addressed, such as site
layout, building architecture, and firming up of the actual tenants to occupy the buildings.
He said there was still one stand alone building, which was the DSL branch, and that the
applicant would explain the reasons for keeping it as such. He said Conditions �l20 and
�/21 had been added to the Precise Plan ta assure a certain type of tenant. He said
concerns raised by Council were signs,parking lats being screened from street view,and
the bus pullout (which would be provided on Highway 11I).
With regard to the Art-in-Public-Piaces fee, he said there were two generous open space
areas: Fred Waring/Highway 111 and Parkview/Highway 111. The intent was to get
somc unique facility or art at both corners, with perhaps the applicant providing art at
Fred Waring/Highway 111 and the City providing the art at the Parkview/Highway 111
site.
In closing, Mr. Smith stated that he had met with Mr. and Mrs. Henry Hoyle, property
owners to the north, and they were pleased with the project. �-Ie recommended adoption
of the resolution and ordinance, such to conditions.
Mayor Snyder noted the public hearing was still onen and invited testimony from the applicant.
MR. WENDELL HINDLEY, Downey Savings & Loan, commended Mr. Smith on his
presentation and for covering aspects of concern to the Council as well as measures and
steps taken to mitigate those concerns. He said because several members of the Council
had expressed concern with perimeter sidewalks, they had trieti to give them special
treatment and would have 36 to 42 inches of mounding. With regard to the pazking lot,
he said he had considered to including 15% for car ports because one of the
Councilmembers had brought up the subject; however, the committee formed by Council
at the last meeting had discounted the idea, With regard to the sign program, he said
an exhibit to the leases would be added which would require that letters be specific sizes
and individually lit.
— 18 —
hIINUTF.S
REGULAR PALM DFS C CITY COUNCIL MEETING FEBRUARY 14, 1991
� 1� i� * * i i * �r s # # • * * # �k �k �k # * * * i~f * * * �k f f� y� • * y� f i
With regard to the lone, free-standing building, he said there were several reasons to
keep it as proposed. He said Downy Savings & Loan had been in business for over 35
years, and almost all of the branches were stand-alone buildings, which they felt was
necessary for identity. He showed proposed elevations of the project, including the two
corners and the Ross and Mervyn's areas.
Councitman Crites said signage was important to the Council as well as to the developer,
and he asked if there would be any objection to holding the sign issue until the Council
has an opportunity to review and discuss it. He also asked if the applicant would object
to continuing the stamped concrete effect in from Fred Waring around to the front of
Mervyn's and along the frontages of the other stores.
Mr. Hindley agreed to both.
Upon question by Councilmember Benson relative ta light standards for the project, Mr.
Hindtey responded that this had not been specifically addressed. He said there would
be pazking lot lighting as weti as lighting in front of the buildings; the parking lot lighcs
would not be the typical box lighting but would be more ornate.
MR. HENRY HOYLE, property owner at the northwest corner of Pazkview and Highway
111, said he endorsed the project 100% and felt it would bring a lot more retail business
into the City.
MR. SCOTT NEL50N, Real Estate Manager of Mervyn's, said he felt this was an
excellent project. He said Mervyn's had over 100 stores in the State and cvntributes 5%
of pre-tax profits back into the communities it serves. He added that like the City,
Mervyn's was also concemed with the environment and recycling.
MS. ERATO J. LEYN, 42-570 Christian Street, said she felt it was very important to
have shade for the cars in the pazking lots during the summer.
MR. LEIVNIE ROLAN, 366 Red River Road, said he felt the landscaping would enhance
the beauty of the project.
Mayot Snyder invited testimony in OPPOSITION to this request, and none was offered. He
daclared the pubIic hearing closed•
Council Comments/Questions:
Crites: Said the City of Palm Desert had the strongest commercial shade tree parking
lot ordinance in the State of California and had hired staff to enforce it. Suggested the
following conditions (get from action minutes)
E9
MINL)'I'ES
REGULAR PALM DFSERT CITY COUNCIL MEEI'ING FEBRUARY 14, 1941
* � � s s s « s s * + s * * s s * * s * * * * s s • s : * s * s * s s * *
Benson: With the City and its Art-In-Public-Places Committee doing one of the corners,
hoped that the other corner did not end up with another treatment like the ARCO
station on the corner of Highway 111/Portola Avenue. Said did not want to see any signs
on the fountain.
Wilson: Appreciated the patience of the developer, architect, and everyone working on
this project for the past several months. Felt this may have been a frustrating time but
also felt everyone will come out with a better project, and he commended the developer.
�ellv: Said he had enjoyed working on the subcommittee formed by Council and felt
this was a good project.
Councilmember Benson asked whether the trellises for the parking Iot should be sent
back to Architectural Review Commission (ARC) to see if it could be done. Mr. Smith
respanded that this would be taken through the ARC as part of the normal processing.
With regard to the DSL building itself, Councilmember Benson said she had not seen
any pictures of what it would iook like but would wait until the ARC reviews it, and
Council could bring it up if it did not like it.
Councilman Crites suggested the following additional conditions be imposed on the
project, if approved: t) That the sign program come back to the City Council for review
as well as parking lot requirements; 2) That the City have the ability to use the corner
of Highway 111 and Parkview Avenue for a public art entry statement that is acceptable
both to the City and to the property owner; 3) Reaffirm that the fountain in the courtyard
near Highway 111 and Parkview Avenue be designed to be interactive with people in the
courtyard; 4) That the stamped concrete be brought in from Fred Waring Drive to
Mervyn's and continued along the store fronts over to Parkview Drive; 5) That the
developer and/or the landscape firm hold discussions with the Living Deserc Reserve or
the Coachella ValEey Water District in terms of asking for a living garden to see if they
would pick up the maintenance and maybe the planting. He noted that the C.V.W.D.
was loaking for such a project and perhaps so was the Living Desert Reserve.
Councilman Wilson moved to: Waive further reading and adopt Resolution No. 91-4 approving
a General Plan Amendment, Case No. GPA 90-2; waive further reading and adopt Ordinance No. ¢'i2,
approving Change of Zone 90-'l; waive further reading and adopt Resolution No. 91-�, approving
Precise Plan of Design No. 90-13, subject to the five conditions outlined by Councilman Crites.
Councilman Crites seconded the motion, and it carried by unanimous vote of the Council.
B. R, E�UEST FOR APPROVAL OF A PRECISE PLAN OF DESIGN TO ALLOW
CONSTRUCTION OF AN 80,300 SQUARE FOOT COMMERCIAL RETAIL
CENTER ON AN 8.5 ACRE SITE AT THE SOUTHEAST CORNER OF FRED
WARING DRIVE AND TOWN CENTER WAY. (Continued from the Meeting of
January 10, 1991.) ENJOY DEVELQPMENT, APPLICANT.
Mr. Drell reviewed the staff report, noting that one item left from the last meeting dealt
with a vehicular link between this development and the Palm Desert Town Center. He
. � 20 —
-----------------------------------------
Submitter DB ID : 1185
Submitter's language : Default language
IP address : 24.9.100.132
Time to take the survey : 23 min. , 50 sec.
Submission recorded on : 8/11/2010 3:12:45 PM
Survey answers
-----------------------------------------
Your Contact Information
First name: * ROBERT
Last name: * WEIGEL
E-mail Address: * REALTYTRUSGROUP�AOL.COM
Address line 1 355 CRESTLAKE
Address line 2 Not answered
City PALM DESERT
State CA
Zip code: * 92211
Phone number Not answered
I Am a:
Palm Desert Business Owner [x]
Palm Desert Resident [x]
Comments:
CITY COUNCIL OF PALM DESERT
WE ARE PLEASED THAT YOU HAVE SUPPORTED VONS MOVE INTO THE FORMER MERVYNS BUILDING AT WARING
PLAZA.
WITH THE CLOSING OF VONS AT BOB HOPE AND HY 111, THIS WILL INDEED BE A GREAT SERVICE,
CONVIENCE, AND ASSET TO THE NEIGHBORHOOD WITH SIGNIFACANT BENEFITS TO THE CITY.
WE PERSONALY SHOPPED AT THE VONS AT BOB HOPE AND NOW WILL HAVE CONSIDERABLE LESS DRIVING AS
WILL ALL THE RESIDENTS ,RESULTING IN LESS TRAFFIC ON MA70R STREETS.
VONS PRESENCE WILL ALSO BE BENEFICIAL TO CROSS SHOPPING IN THE CENTER, AND OTHER CENTERS IN
THE AREA . IT IS LONG OVERDUE FOR SUCH A FINE FOOD STORE IN THIS AREA, AND WE DO THANK YOU.
BOB AND JODY WEIGEL
2
����
Attgust 1$t", 2010
Cindy Pinerty, Mayar
City af Palm Desert
73-510 Fred�titaring Drive
Palm Desert, CA 92260
Re: Vons Gracery SCore, Palm Desert
Dear Ms. F�inei-ty,
As you know, our comp�ny has purchased the abandoned building previousty
occ�apiec� i�y Mervyns in Palm Desei-t witll the intent of opening a Vons grocery store
to serve the s��rrounding ccarnrnunity. We ar� a sophisticated operator of
approximateiy 1,700 �;roeery stores in �Vorth Ainerica. As yoLz can imagine, we
thoroughly vet lacatians far newv stores basec! on a myriacl of factors to include local
demand, suitability of a �aroperry for aperatians, available workft�rce and applicable
zoning and perrnitting requirements. VVe rauti�tely buy oui- stores and have been a
property owner and devetoper for over 90 ye�rs.
We were alarmed to recently learn of Resolution 91-5, passed by the City Council on
Februai-y 14�h, 1�91. In the canclitions of approval of this nearly 20-year-otd
docutnent, Item #10 states that a sup�rmarket is prechided from aperating at this
location. The clocument was recently discovered by I{evin Swartz (Assist��nt
Planner) in an archiv�ci case file. As yQex can imagine, we are shocked to just now l�e
learning of this ctocurnent aftcr two years of intense due dilig�nce an this pr•aj�ct to
include a close working relatianshi�with th�staff�f City of Palm Desert prior to our
acquisition af the property.
Vons tiz�st becarne aware af the apportunity to purchase the Mervyns building in
October of Zt?a8 when it appcarcc� on a possible dispasitic��i list resulting from
Nlervyn's bankruptcy and ultimake elc�sure. In December af that y�ar, after the store
closecl follov�rir�g the That�ksgivin�; holiday, �ve be�an warking with the awnership
graup towards the purchase. As we commenced negotiations, we also began
exter�sive due ctiligence or� the property.
Dpor�t review at tl�e ti�depencl���t Appraisal, th� prof�ssional a�-��raiser did naC
cliscouer any City conditions tt�at�vc�ulei �areclude � brocea-y stc�r-e onsite. This wc�ulci
have been res���rched as it would t�ave a�fected val�zati��1. On Decen�ber 8, 200$ ouz'
attorney rt�it���c1 the Reci�rocal Dc�t:�<,rtaticrtl c�F Covec�ants }�c��trt�citrirs antl
`.a .J<;y If7C.
1�i1F tsSllill
...,.a�,1 [� ..,.i.a...
' ,���.:�,�i..,.,h�" G.."'w).'.'��
;�i I �^.T?'?,�;;.
i;::�,�a.l'i�:Jt��Yti Q.�::.
t�fi.}i�'??..;11r,
_ - -
Cindy Finerty, Mayor
City of Palm Desert
August 18, 2010
Page 2
Easetnents A�reer�ient (the REA). This is a document that is recorded and is forever
tied ta the property title. It is intended to detail any anc� all rt�les, covenants and
restrictions that are associated with the development and aperation oFthe shopping
center, to include Ciry res�rictians of any kind. T}iis c�ocument was recorded against
title on i�ovember 22, �991, nine months after the Resolution No 91-5 was executed.
Izi the REA t��ere is not a single mentian of such resolution or the supermarket
r�striction. Despite the fact that the REA was agreec� tcr by DSL (Downey Savings and
Loan) Ctie same company that is n�med in the ReSalution as the then owne�� /
devetopez�of thc shopping center, there is no recorcl of this document an title.
In Oct�ber of that year, after protractecl negotiations, we put the locatian under
contract to purchase. As part af our due diligence we abtained an up-to-date title
report on the property from Old Republic Title Compan�. The title report shovved
that neither Resolutian No. 91-5 nor the superni�trket restriction referred to in the
Resolutic�i�were af reeorci.
At this time, our du� diligence went into high ge�r and we approached the City of
Palrn Desert ta invesCigate the need to pursl�e any necessary entitiements. In the
fii�st week of November, our architect canfirtnec� fihat the current site and zoning
allows for the intende� use and alcahal sales. No CQ��ditiot�al Use Perrnit (CUP) was
required. Over the course of th� next several mc�nths,we cQntinued the cfialogue and
were assured via nutneraus emails we have on file, tt�at there were no conditions
that would limit our ce�mpany from the intendeci tise,
From t}�at point, we proceeded to closixlg with �rE��t reliance c�n the significat�t due
ciiligence we had cor��pleted ovei� the preceding y�ar. At great expense, �bove ancl
beyai�d the �urcliase af the praperty, plans were cieveloped and reviewed with the
city in �repar�tion for the first Architectural Review Board (ARB) review. The pl�ns
were reviewed by � Christina C�n�les, �n en,gineer with the City Fublic Works
Department, wha wrate on July 1�, �f�10 th�t the l�ndscaping neec�ed to be
signiFicantly augn�ented to ac�hcre to n�w regu�atic�r�s imposed by the ARB, Kevin in
the interim decicted to search city archive files tc� see if he cc�ulc� locate the origit�al
landsca�e ��I�n uncier which tt�e ��r�ject was ���provecl. in doiz�b s�, he carne �ipon
the Reso►tztion in c�t.aesti�n. On tll�gi.tst 3rc�, 201(�, nearl}T� manths after th�� City st�ifF
can�irmed our at�ility to operate � grocery stc�re �t this Icrcation, a ca�y of the
Resolutic�r� �1-5 was clelivered k�y �:tt�ail tc� c�t�r arctiitect. Ora August 1Q, 2010 the
ARR a����r•ovecf c�iir �anc��c�ping��1ans.
_
Cindy Finerty, Maye�r
City of Palm Desert
August 1$, 2010
Page 3
We would never have made a $12 rnillion puc-cl�ase of a buitding�hat was restricted
from grocery operatians by the City of Palm Desert. There was absolutely no
evidence fram any source that suct� a re$tricti�n existed. The document was not
known to exist by any member of city staff, verifiable by written comments in
�rocessing our applicatian. The Resolution 91-5 was found entirely by accident
after being hidden ft�r nearly 20 years.
It is our contention that the Resolution 91-5, as adopteti }�y the City of}'alm Desert
ne�3rly 20 years ago, was intended as rules, restrictioi�s and guid�lines ur�der which
the stioppin� center was to be developed. It was a gizide for the develflper that set
fortli the conclitioc3s of approval as they built the shopping eenter pricsr to receiving
the Certificate aE Gompletion. Ninety three percent of the 56 conditions are
developmental in nature and clo not address in any way t��e operatians of the
builclings ar allawable uses. We believe that once the cotiditions were satisfied, the
e�ocument became superfl�.ious �nd was intended to b� filecl as cnm�leCed ancl we
are tnaking this application i�nder protest r-eserving �ll rights to claim that
additianal apprc�v�t is unnecessary.. The resolution w�s never leg�lly recorded.
Hypothetically, if there was intent for conditiot7s �f t�pprov�! tt�stirvive the shopping
center's coinpletirsn and run w"tth the land, theti th� conditions woulel have been
recardec� against title or mentioneci in any survivin�; docun�ents of record. 'I'hey
�vere z1ot.
Witl� the c�xception of this very seric�us ar�ci trot�blit�g n�w c�Evelopment, aut-
experience with the City c�f Palm Desert to date has been secand to none. We are
eager to conti��ue working closely with you, the City staff at�d Gity Council as we
continue tc� work taward opening a st�te of the art gr�ceiy store th�t is clesper�tely
ncec3ecl in cl�is a�•ea. We will generate approximately $250,000 in annual local sales
tax reveni�e for the City as well as provide an anchor store for what has become a
bli�}�ted property in yat�r City. This will in turn encourage c�th�r rretail stares to co-
locate with us anct generate even i�aore revez�ue for t�Ye Cizy. Ac�ded ta that, we will
create 80 new interim canstruction }obs �nd 200 }�eri��anent }obs at our stc�rc,
accountin; for ne�rly $3,540,000 il� }�erri�anerjt annu�l ��ayroll wages in c�ui-
community. In th��ca deva�tatic�n ece�n�mic timcs, t�c�ithcr crur c�mp�ny nor yaur• city
can afforc� ta miss si�ct� a wo��c�ert��l op�ortunity in E'��1►n [)esert.
. _ _ _ __ _ -_. __ _ __ _
Cinc�y Finer•ty, Mayor
City of Palm Desert
August 18,2Q10
Page 4
As such, we respectfully r�quest that you and the City Council eliminate the
Condition af Approval #10 from Resalution 91-5, so that we may proceed with
confidenc�taward opening a new Vons stor�at this lacation.
Thank you for your consideration t�f this matter. If yc�u have any t�uestions please do
not hesitate to cont�ct me at brian.br�atenC�safeway.cc�m (�rnail) and 626-821�
7047 (phone).
Sincerely,__—:;%" --'''- �f
��
�,-�.�-..
Brian K. en
Vice President Real Lst�te
Vat�s (a divisian ��Safeway, Inc.)
cc:
Jim Ferguson, Mayor Pro Tem
Robert Spiegel, Cot�ncilmember
Jean Benson, Councilmetnber
Richard Kelly, Councilmetnber
J�hn Wolmuth, City Manager
��
August 18, 2010
Cindy Finerty, Mayor
City af Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Re: Vons #3242 Palm �esert, CA
Dear Mrs. Finerty:
Please find enclosed Vons' Owner's Policy of Title (nsurance for the above-referenced prop�rty.
You will see that neither Resolution No. 91-5 nor any of the restrictions referred ta in the
Resolution are of record. Conditions such as those coniained in Resolution hJo. 91-5 are
usually recorded against the property to which ihey relate and form part of the title to the
praperty.
Very truly yours,
THE VONS COM_,QANIES, INC.
��__.------���.�-. .i
.
` f
>.m
Brian K. raaten
Vice President Real Estate
Enc.
- <;,
��� ��„r�f�,
_� �. ,,_, ;..
-� �{.
� ,
i.M. ��::_�.,::,__ .
�3iu � tfe,
Owner's Policy of Title Insurance ����'� �� -�
Amerlcan Land Titfe Assodddon�wner`s Poficy 6-17-06 j�v�tl �� ��i�
� * � Po��cy Number A04232-OX-130248 ��E'�'�����"��'
* �
* � '�' Issued hy 01d itepublit Natfonal Tlt1e Insurance Campany
� �. Any notice of claim and any other notice or statement in writing required to be given to tha Cvmpany
* * under this Poliry must be given to the Gompany at the address shown in Sectfon 18 of the Condit�ons.
i� *
COVERED RISKS
SUBJECT TO THE IXCLUSIONS FROM COVERAGE,THE EXCEP'1"IONS FROM COVERAGE COPlTAINEQ IN SCHEDULE B,AND THE C�NDIi70NS,
OLD REPUBLTC NA7IQNAL TITLE INSURANCE COMPANY,a Mfnnesota corporation(the"Company"}Insures,as of Date of Policy and,to the extent
stated 1n Covered Risks 9 and S0,after Date of Pollcy,agains#loss or damage,not exceeding the Amount of Insurance,sustained or Incurred by the
Insured by reasan of:
1, Title being vested other than as stat�ed In Schedu[e A.
2, Arry defect in or Ilen or encumbrance on the Tltle. This Covered Risk intlpde5 but ls not Ilmited to insurance agalnst loss from:
(a) A defect in the Title pused by
(i) forgery,fraud,undue influence,duress,incompetency,incapacity,or impersonatfon;
(ii) failure of any person ar Entity to have authorfzed a transfer ar conveyance;
(III) a daument affecting Title not properly created,executed,witnessed,sealed,a[knowledged,notarized,or delivered;
(iv) faifure ta perform thosa acts netessary to create a dacument by electronic means authorized by law;
(v) a document exearted under a falsified,explred,or otherwise Envalid power of attomey; .
(vi) a document not properly filed,recorded,or Indexed in the Puhlic Records induding faflure to perform those acts by electronEc means
authorized by law;or
(Mi) a defetClve�ud[daf or administrative proeaeding.
(b) The lien of real estate taxes or assessments€mposed an the Title hy a governmental authority due or payahle,but unpaid.
(c) Any encroachmenC,encumbrance,violaGore,variation,or adverse circumstance affec�rtig the Tltle that would be disdosed hy an accurate
� and complete land survey af the Land, The term"encroachmenY'fncludes encroachmenLs of ex3sting Improvemer�ts located on the La�d
onto adjoin{ng land,and encroachments onto the Land of exfsting impravemen#s lopted on adjoining land.
3. Unmarketable iltle.
4. No right of actess to and from the Land.
5. The vlolation or enforcement of any law,ordinance,permlt,or govemmentaf regulation(tncluding those relating to building and zoning)
restricting,reguladng,prohibiting,or relatlng to �
(a) the ocapancy,use,or en]oyment of the Land;
(b) the diaracter,dimeruions,or IocaE3on of any improvement erected on the Land;
(c) the subdivision of land;or
{d) environmental protecqon
if a notice,describing any part of the Land,is recarded]n the Public Records setting forth tF�e violation or Intendon to enforce,but only to the
exter►t of the violat[on or enforcement referred to ln that nobce.
6. An enForcement ac#lor�based on the exerdse of a govemmental police power not covered by Covered Rfsk 5 if a r#ice of the enforcement
action,desaibing any part of Yhe Land,ls recorded In the Public Records,but only to the exbent of the enforcement referred to in that notice.
7. The exercise af the rights of eminent domain If a notice o€the exercise,describing any part of the Land,is recorded in the Public Records,
e. Airy laking 6y a governmental bady that has occurred and is binding on the rights of a purchaser for value without Knowiedge.
9, Tttle being vested other than ds stated In Schedule A or being defe�tiv2
(a) as a result of the avoldance ln whoie or In part,or from a court order providing an alternadve remedy,oF a transPer of all or any part of the
title to or any�terest In the Land occurring prior to the transaction vesting'T'�le as shown In Schedule A because that prior transfer
constituted a fraudulent or preferentlal transfer under federal bankruptxy,si}te_Insolvency,or 5imilar creditors'rights laws;or
(b) because the instrument of trensfer vesting T7He as shown In Schedule A constitutes a preFerentlal transfer under federal bankruptcy,s�te
InsoivenCy,or stmllar aeditors'righis laws by reason of the failure of!ts recording in the Public Records
(1) to be timeiy,or
(II) to Impart no�ce of its exlstence to a purchaser for value or to a judgment or lien tredimr.
16. Any defect In or Ilen or encumbrance on the Tltle or other matter inciuded in Cavered REsks 1 through 9 that has been created or attached or has
been filed nr recorded in frhe Pu61it Re[ords subsequent to Date nf Policy and prior to the retording of the deed or othar insbument of transfer in
the Pubqc Retords that vests Title as shown in 6chedule A.
The Comparry wilf also pay the costs,altorneys'fees,and expenses incurred in defense of any matter Insured agalnst by this Policy,but only to the
extent provided In the Condltlons.
Issued through the Dfflce of.•
Old Republic Tide Company Old Republic National Title Fnsurence Company
101 North Brand BEvd.,14th Floor 400 Second Avenue South
Glendale,CA 91263 , Minneapolis, Minnesota 55401
��.,,,
_.1p' ZFIy'4
gy � �cs4�= Presrdenf
�=
- � ��`
�~ Attest /A' ,r�� * *d �, Secrsfary
Authorhed Slgnatory E��••,'�• '' �
EXCWSIONS FROM COVERAGE
The following matters are expressly exduded from the coverage o�this palicy,and the Company will not pay loss or damage,costs,attorneys'Fees,or
expenses that arlse by reason of:
1. (a) Any law,ordinance,permlt,or governmental regulation(including those relating to building and zoning)res�rfcY[ng,regulatlng,prohfblEEng,or
relating to
(I) the occupanty,use,or enioyment of the Land;
(ii) the character,dimensfons,or locatlon of any improvement erecYed on the Land;
(lil) the subdivision of land;or
(iv) environmer�Eal protectton;
ar the ePfect of any vfofadon of these laws,ordtnances,or go+rernmental regulatian5. Thfs Exclusion 1(a)does not mod(iy or 1(m[t the rnverage
provided under Covered Risk 5.
(b) Any governmenta!pofice power, This 6ccluslon 1(b)does not modEfy or limit the taverage provlded under Covered Rlsk fi,
2. Rights of eminent domain. This Exclusion does nat mod]fy or Iimit the co�erage provlded under Covered Rislc 7 or 8.
3. Defects,liens,encumbrances,adverse clalms,or other malters
(a) created,suffered,assumed,or agreed to by the Insured Clalmant;
(b) not Known to the Company,not recorded in the Public Records at Oate of Policy,but Known to the Insured Claimant and not disclased!n wridng
to the Company by the Insured Qaimant prlor to the date the Inwred CJaimant became an Insured under this policy;
(c) resulting in no lass or damage to the Insured Clafmant;
(d) attaching or created subsequent to Date of Polfcy(however,this does not modify or Ilmlt the coverage provided under Covered Rlsk 9 and 10);
or
(e} resulting in loss or damage thaE would not have been sustained if the Insured Claimant had pald value for the Trtie.
4. My daim,by reason of the operation of federal bankruptty,state insolvency,or slmilar creditors'rights laws,tttat the transactlon vesting the 71de as
shown in 5chedule A,(s
{a) a frdudulent conveyance or fraudulent Yransfer;or
(b) a preferential transfer for any reason not stated In Covered Rfsk 9 of this policy.
5. Any Ifen on the Title for real estate taxes nr assesstnents Imposed hy govemmental authority and created or attaching between Date of Policy and
the date oP recording of the deed or other insErument of transfer in Puhlic Records that vestz 7itle as Shown In Schedule A.
, ALTA Owner's Polity(6-17-06)
pId Republic National Title Insurance Company
4Q0 Seoond Avenue Sauth Minneapolis,MinnesoYa 55401
SCHPDULE A
Poticy No: Afl4232-OX-130208 Amountof Insuran�: � 12,Q00,000.00
Order No: 2476Q07491-33 Premlum: $ 9,840.00
Date of poffcy: Jul1e lst, 2010 at 8:00:00 AM Address Reference: 72280 Highway 111
Palm Desert, CA
1. Name of Insured:
THE VOI�S COMPANIES, INC.
2. The estate or interest in the Land that is insured by this poEicy is:
Fee as to Parcel(s) A and an Easement as to Parcel(s) B
3. TiUe is vested in;
The Vons Companies, Inc,
4. The Land referred to in this policy is described as foflows:
Parcel A:
Parcel 2 of Parcel Map 27065, in the City of Palm Desert, County of Riverside, State of California, as shown by
map recorded in Book 172 Pages S1 to 86 inclusive of Parcel Maps, Records of said County.
Parcei B:
Non-exclusive easements for parking, ingress and egress, util9ties, pedestrian traffic, comfort and convenience
facilities over mmmon area of Parce[s 1 and 3 to ii inclusive of Parcel Map 27065, as shown by map recorded
in Book 172 Pages 8i to 86 inclusive of Parcel Maps, Records of said County, as disclased by that f�eciprocal
Easement Agreement recorded November 22, 199�.as Instrument No. 408127 Official Records.
Page�.of 5 Pages
OLD REPUBLIC NATIOPlALT1TLE INSUWINCE COMPANY
Poiicy No A04Z32-0X-130208
ALTA Owner's Policy(6-17-U6)
SCHEDUE.E B
EXCEPTIONS FROM GOVEE2AGE
This policy does not insure against loss or damage,and the Company will noC pay costs,attorneys'fees,or expe�ses that ar(se by
�eason of:
1. Taxes and assessments, general and special,for the fiscal year 2010 - 2011, a lien, but not
yet due or p�yable.
Code f�o. : 018-006
Assessor's Parcel No : 640-020-025-3
2. The lien of supplemental taxes, if any, assessed pursuant to the provisions oP Section 75, et
seq., of the Revenue and Taxation Code af the State of California.
3. An easement affecting that portion of said land and for the purposes stated herein and
incidental purposes as provided in the following
Granted To . Califomia Electric Pawer Company
For . public utilities
Recorded . October 16, 1959 in Official Records as Instrument Number 88941
qffects . the Easterly 5 foot af Parcel A
4. Release and relinquishment of abutter's ar access rights to or from Highway i11 and Fred
INaring Drive, over the adjacent boundary line of premises, as set forth on the filed Map of
said fand.
5. An easement affecting that por�ion of said land and for the purpases stated herein and
inddental purposes as shown on the filed map.
For . storm drain
Affects . Parcels A& B
6. Matters as contained ar referred to in an instrument,
�ntitled . "Grant Of Reciprocal Easement, Declaration of Co�enants, Running
With The Land and Development Agreement"
Recorded , November 22, i991 in Official Records as Instrument Number 408127
Which Among
Other Things . As therein provided
Provides
Page�of�Page
OLD REPUBLIC NATIONAtTITLE INSURANCE CAMPANY
Policy No A04232-OX-13D208
� AL7A Owner's Policy(6-17•Ob}
7. Matters as contained or referred to in an instrument,
Entitled . Tndemnifcation Agreement
Executed By . Mervyn's and DSL Service Company
Recorded . November 26, 1991 in Official Records as Instrument Number 411617
Which Amang
Other Things . As therein provided
Prov�des
8, An ease�rient affecting that portion of said land and for the purposes stated herein and
inddental purposes as provided in the following
Granted To . Caachella VallEy Water District
For . sewer pipelines
Recorded . April 14, 1992 in �fficial Records as Instrument I�umber i31383
Affects . said land
9. An easement affecting that portion of said land and for the purposes stated herein and
incidentat purposes as provided in the following
Granted To . Coachella Valley Water Distric,t
Far . water pipeline
� Recorded . April 14, 1992 in OfFcial Records as Instrument Number 131387
Affects : said land
� 10. An easement afFecting that portion af said land and for the purposes stated herein and
incidental purpases as provided in the following
. Granted To . Coachella Vafley Water District
For . water pipefine
Recorded . May I1, 1992 in Official Records as Instrument Number 167283
� Affecfis . said land
fi. An easement affecting that portion of said land and for the purposes stated herein and
incidental purposes as provided in the follawing
Granted To . GTE California, Inc.
For . telephone plant facilitis
Recorded . May 14, 1993 in O�cia! Records as Instrument Number 179772 and
179773
Affects . said land
Page�of�.Page
OLD ftEPUB!_.IC NATIONAL T1TLE INSURANCE COMPANY
Polic.y No A04232-OX-130208
ALTA Owner's Pollcy{6-17-06}
f 2. An easement affecting that portion of said land and for the purposes stated herein and
incidental purposes as provided in the fol�awing
Granted To . GTE California, Inc.
For . telephone pEant facilities
Recorded . June 30, 1993 in Official Re�ords as Instrument Number 25Z579
q{{�ts , said land
13. An easemen�affecting that portion of said land and for the purposes stated herein and
incidental purposes as provided in the following
Granted To . Coachella Valley Water District
For . pipeiine
Recorded . May 3, 2005 in Official Re�ords as Instrument Number 05-351371
Affects . said land
14. Any unrecorded and subsisting leases.
Page 4 of�Page
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
� ENDORSEMENT Polfc.yNoCAO 23z-OX-130208
Order No:2476007491-33
�� * �* 4LD REPUBLIC NATI4NAL
� � � TITLE INSURANCE COMPANY
'� .� a Corporation,af Minneapolts,MinnasoW
* �c �F
The Company hereby assures the Insured that the Company wlll not deny fiability under the policy or any endorsements issued
therewith salely on the grounds that the policy and/or endorsement(s)were issued electronically and/or lack of signatures in
accordance with Paragreph 15(c)of the Conditions.
This endorsement is issued as part af the policy. Except as it expressEy states, it dces not (f) modify any oP the terms and
provisions�of the policy, (ii) modify any prior endorsements, (iii) e.�ctend the Date of Policy, or (iv) increase the Amount of
Insurance. To the extent a provision of the policy or a previous endorsement Is InconsistenF with an express provision of tfiis
endorsement, this endorsement coniro[s. Otherwise, this endorsement is subject to all of the terms and provislons of the
policy and of any prior endorsements.
OLD REPUBLIC NATIONAL TITIE II+ISURANCE COMPANY
A Stuck Company
400 Second Avenue SouCh,Minneapoll5, Minnesota 55401
{612}371-I111
��,,,,�A
P tr�F •
*�Ys��•'
Countersigned: 8y - - �c �'- Presldent
�� * *ze
x�fl� I�i �m'
F' � ,'43 1 *d :
BY �f": b
alidating Officer art� �*,�,°••� sscrets�y
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, CONDITIONS 2. COf�TINUA7ION OF INSURANC�
The coverege of this policy shall contfnue in force as oP Date of Polfcy
1. DEFINITIdN OF TERMS in favor of an Insured,6ut only so long as the Insured reWins an
The following terms when used in this pollcy mean; estate or Interest in the Land,or hofds an ohligatlon secured by a
(a) "Amount of Insurance":The amount stated in Schedule A,as pur�hase money Mortgage given by a purchaser from Ehe Insured,or
may 6e increased or deaeased by endorsement to this pollcy, only so Ipng as the Insured st�all hava Ilabillty by reason of warrandes
increased by Section 8(b),or decreased by Section5 10 and 11 in any transfer or conveyance of the Title.This policy sha[I not
of these Conditions. continue In force in favor oP any purchaser from the Insured of elti►er
(b) "Dete of Polic.y";7he date designated as"bate of Policy"in (�)an esbte or Interest in the Land,or(lf)an obligation secured by a
Schedule A. purchase money Mortgage glven to the lnsured,
(c} "Entity":A corporation,partnership,trust,limited Eiahility 3. NOTICE OP CLAIM TD BE GNEN BY INSUREb CLAIMA{�T
. company,or other similar legal entity. The Insured shall notify the Company promptJy In writing(I)in case of
(d) "Insured":The Insured named in Schedule A, any litigatlon as set forth in Seclion 5(a)af these Condltlons,(ii)in case
(i� 'I'he term"Insured"also Indudes Knowledge shall come to an Insured hereunder of any daim of tltle ar
(A) suaessors to the T7t[e of the Insured by aperatlon of Interest that is adverse to the 7itle,as insured,and that might cause
law as dtsUnguished from purchase,including helrs, loss or damage for whtch the Company may be Ifable by virtue of this
devisees,survlvors,personal representatives, or next policy,or(III}If the Title,as insured,IS re�ected as Unmarketable Title.
of kin; If the Company Is preiudiced by the fallure of the Insured Clalmant to
(B) successors to a�Insured by dtssoluEEon,merger, provide prompt notite,the Company's IIablElty to the Insured Clalmant
consdidation,distr]bution,or reorganization; under the pollcy shall be reduced to the extent of the prejudice.
(C} successors to an Insured by Its conversion to another
kEnd of Entlty; . 4. PROOF OF LOSS
(D) a grantee of an Tnsured under a deed delivered In the e�ent the Company is unahle to determine the amount of loss
wlthout payment of actual valuable consideration or damage,the Campany may,at its option,requlre as a conditlon of
conveyfng the Titfe payment that Ehe Irisured Claimant fumish a signed proof of loss. The
(1) if the stock,shares,membershlps,or other proof of loss must describe the defect,lien,encumbrance,or otlter
equlty interests of the grantee are wholEy-owned matter Insured against by this polit,y that constttubes the basis of loss
by the named Insured, or 6amaga and shal[state,to the extent possihle,t�e ba�s of
(2) if the grantee whoEly�wns the named Insured, calculating the amount of the loss or damage,
(3) ff the grantee is wholly-owned by an afRliated
Entlty of the named Insured,provided tlie 5. �EFENSE AND PROSECUTIOIV UF ACTTONS
affiliated EntRy and the named Insured are both (a) Upon wrltten reques#hy tlie Insured,and subject to the options
wholly-owned by the same person or Entlry,or contained ln Sectlon 7 of these Conditions,the Company,at its
(4) If tiie grantee is a trustee or beneflciary of a own cost and without unreasonable deEay,shall provide for the
trust ueated by a wrltten instrument estahlished defense of an Insured in litigadon in whlch any third party asserts
6y the Insured named In Schedu[e A for estate a claim covered by this policy adverse to the Insured. This
planning purpases. obUgadon Is Iimlted to only those stated causes of actfon alleging
(if) With regard to(A),(B},(C),and(D)reserving,however, matters lnsured against by thls policy. The Company shall have
all rights and defenses as to any suaessor that the Yhe right to se[ed counsd of its d�oice(sub�ect to the right of the
Company would have had against any predecessor Insured to ohject for reasonable tause)to represent the Insured
Insured. as to those stated causes of action. It shall not be Ilable far and
(e) "Insured Clalmant":An Insured clalming loss or damage, will not pay fhe fees of any other counsel. The Company wlll not
(fy "Knowledge"or"Known":ACtual knowledge,not constructive pay any fees,costs,or expenses in�urred by the insured!n the
knowledge or notice that may be imputed to an Insured by defense of those quses of action that allege matters not insured
reason of the Publlc Records or any other records that impart against hy thls pollCy.
constructive notice of matters afFecting the 71t1e. (b) The Company shall have the right,in addition m the optlons
contained in Sectlon 7 of these candltlons,at its own cast,to
{g) "Land":The land described in Schedule A,and affixed institute and prosecute any adion or proceeding or to do any
impro�ements that Uy faw constltute real property.The term other act that in its opinion may be necessa.ry or desirable to
"Land"does not indude any property beyond the ilnes of the establish the Tt1e,as insured,or to prevent or reduce loss or
area described in Schedule A,nor any right,tlYle,interest, damage to the Insured. The Company may take any appropriate
estate,or easement fn abutdng streeis,roads,avenues,alleys, adJon under the terms of thls policy,whether or not it shall be
lanes,ways,or waterways,but this does not modify or Iimit the liable to the Insured. The exercise of these rights shall not be an
extent that a right af access to and from the Land ls lnsured 6y admission of Eiability or wa[ver of any proviston of tlils paliry. If
this polky. the Company exercises tts rights under tftis subsettion,It must do
(h) "Mortgage"; Mortgage,deed of trust,trust deed,or other so diligently.
Security Instrument,induding one evidenced by electronlc (c} Whenever the Company brings an action or asserts a defense as
means auEhorized by law. required or permitted by this pollcy,the Company may pursue the
(i) "Publfc Records":Records established under state statutes at Iltigation to a flnal determinabon by a court of competent
Date of Policy for the purpose of imparting consCructive nntice jurisdiction,and lt expre5sly reserves the right,in its sole
of matters relating to reat property to purchasers for value and discretion,to appeal any adverse judgment or order.
without Knowledge.wim respect to Cavered Risk 5{d),"Pub�fc
Records"sha[I also Indude environmental protectlon Ilens filed 6. DUTY OF IHSUREO CLAIMANT'CO COUPERATE
ln the recoreis of the cierk of the United States Dlst�id Court far (a) In all cases where this policy permlts or requires the Company to
the district wF►ere the Land is IoCated. prosecute or provide tnr the defense of any action or proceeding
(j) "Tide":The es�ate or interest descri6ed in Schedule A. and any appeals,the Insured shail secure to the Company the
(k) "Unmarketable Title":7itle afFected by an alleged or apparent right to so prosecute or provide defense in the action or
matter that would permit a prospective purchaser or lessee oP proceeding,incfuding the rfght tn use,at its opUon,the name of
the 7itle or lender on the Title to he released from the obfigatlon the Insured for this purpose.Whene�er requested by the
to purcha9e,lease,ar lend if there Is a contractual conditlon Company,the Insured,at the Campany's expense,shall give the
requirirg the delivery of marketable tltle. Campany all reasonable aid(i)in securing evidence,obtaEning
witnesses,prose�uting o�defending the action or proceeding,or
etfecting settlement,and(il)in any other lawful actthat in the 8. D�TERMINA7ION AND EXTENT Of LIA9ILITY
opinion of the Campany may be necessary w desirable to Th�s policy is a rnntratt oF Indemnlry aqaEnst acEual monetary loss or
establish the Title or any other matter as insured.If the damage sustained or incurted by the Insured Cfaimant who has
Company fs pre]udlced by the failure af the Insured to furnish suffered loss or damage by reason ef matters insured against by thfs
the requlred cooperation,dte Company's obligatlons to the policy.
Insured under the policy shall termfnate,incfud(ng any Efability (a) The extent of IlahilEty of the Company for loss or damage under
or obligatlon to deFend,prose�ute,or contirtue any Iitlgation, thls policy shall not exceed the lesser of
witfi regard to the matter or matters requiring such {i} tfie Amount of Insurance;or
cooperation, (ii} tfie difference between the value of the TrtJe as Insured�d
the value of the Title subjett Eo the rlsk lnsured against by
(b) The Company may reasonably require the Insured Clafmant to this policy.
submit M examinatian under oath by any authorized (b) If the Comparry pursues it5 righEs under Sectton 5 aF these
representative of the Company and to produce far examination, Gonditions and Is unsuccessful in establishing the Title,as
inspectlon,and topytng,at such reasonable times and places as insured,
may be designated by the author)zed representative of the (I) the Amount of Insurance shall be[ncreased by 10°Yo,and
Compeny,all reoords,in whatever medlum maintalned, (li) the Insured Claimant shalf have the right to have the loss or
Including books,IedgeJs,checks,memoranda,correspondence, damage determtned either as of the date tl�e claim was made
reports,e-malis,disks,tapes,and videos whether bearing a by the Insured Claimant ar as of Yhe date It is settled and
date before or aRer Date of Po[ity,that reasonabty pertain to pa�d,
the loss or damage. Furtlier,if requested hy any authorized (�) in additlon to the extent of liab€]Ity under(a}and(h},the
representative of the Com}iany,the Insured Cfaimant shall grent Company wil!also pay those costs,attorneys'fees,and expenses
its permission,[n writing,for any authorized representative of lncurred in accordance with 5ectlons 5 and 7 of these Condltlons.
the Company to examine,Inspect and copy all of these reco.rds
in the custody or control of a third party thaC reasonahly pertain g, LIMYTATION OF LIABII.ITY
to the loss or damage, All informatlon designated as (a) If the Company establishes the l3tle,or removes tlie alleged
wnfder�ial by the Insured ClaEmant pro�ided to the Company defect,Ilen,or encumbrance,or cures Ehe lack af a rtght of access
pursua�t to this Section shall not be disclosed to others unless, to or from the Land,or cures the cfaim of Unmarketa6le Tde,all
in the reasonable judgmenE of t}ie Company,it is necessary in as insured,in a reasonably diligent manner by ariy method,
the administration of the dalm. Failure of the Insured Claimant including Ilt[gation and the completlon of any appeals,It shall
to submit for examinadon under oath,produce any reasonably have fulfy performed itr obligatlons with respect to that matter
requested inFormatlon,or qant permission to secUre reasonably and shall not be 1ia61e for any loss or damage caused to the
necessary informatian from t�lyd parties as required fn this Insured.
subsectbn,unless prohlblted by 1aw or governmental regulatlon, (b) fn the event of any Iltigatlon,Including lltlgation hy the Company
shaEl terminate any liability of the Company under this policy as or wiih the Campany's consent,the Company shall have no
to that daim. � Iia6ility for foss or damage untll there has been a Rnal
dekermination by a court af competent jurisdictlon,and
7. OPTIONS TO PAY OR 07HERWISE SE7TLE CLAIMS; disposltlon of all appeals,adverse to the Title,as Insured.
TERMINATION OF LIABILITY {c) The Company shall not be liabfe for loss or damage to the Insured
In case nf a dalm under thfs policy,the Company shall have the for Itabillty vofuntarily assumed by the Insured in settiing any
following additional aptions: . claim or suit without the prlor written consent oP the Camparry.
(a) To Pay or Tender Payment of the Amount of Insurance.
30. REDUC7'ION OF INSURANCE;REDUCTIQN OR TERMTNATiON
To pay or tender payment af the Amount of Insuran�e under OF LIASILITY
t}ws policy Yngether with any costs,attorneys'fees,and All payments under thfs popcy,except payments made for costs,
expenses incurred by the Insured Claimant that were authorized attorneys'fees,and expenses,shall reduce the Amount of Insurance
by the Company up to the time of payment or tender of by the amount of the paymerrt,
payment and that the Comparry is obligated tn pay.
Upon the exercise by tf�e Company of this option,all liability and 11. LFABILITY NOHCl1MULATIVE
obligadons of the Comr►any tn the Insured under this policy, The Amount of Insurance shall be reduced by any amount the
other than to make the payment requlred in this subsection, Gompany pays under any policy insuring a Mortgage to which
shall temtinate,tncludfng any liab�lity or obligation to defend, exception is taken in 5chedule B or to which the Insured has agreed,
prasecute,or continue any Iltlgation, aswmed,or taken subject,or whl�h is executed by an Insured after
(b) To Pay ar Otherwise SetNe With Pardes other than the Insured Date of Policy and whi[h is a charge or llen on the lltle,and the
ar With the Inwred Glaimant. amount so paid sha11 be deemed a payment to the Insured under tl�is
poltcy.
(I) To pay or atherwise setFJe w�th ather pardes for or in the
name of an Insured Gaimant any daim Insured against 12. PAYMENT OF LOSS
under this po�cy. Yn additlon,Ehe Company will pay any when Nabllity and the extent of loss or damage have been definitely
msts,attomeys'fees,and eupenses incurred by the flxed In accordance with these Condit�ons,the payment shall be made
Insured Claimant that were authorized hy the Company up wlthin 30 days.
to the time of payment and that the Company is ob[igated
to pay;or 13. RIGHTS OF RECOVERY UPON PAYMEN7 OR SEl'TLEMEN7
(il) To pay or otherwise setUe with the Insured Claimant the (a) Whenever the Company shall ha�e settled 8nd pald a claim under
]oss or damage provided fnr under this policy,together this pot[cy,It shall be subrogated and entided to the rights of the
with any msts,attomeys'fees,and expenses incurred by Insured Clalmant ln the Trtle and all other rights and remedies In
the In�red Claimant that were authorized by the Company respect to the daim that the Insured Clalmant has against any
up to the t{me of payment and that the Company Is person or property,to the extent of the amount of any loss,costs,
obligated to pay. attorneys'fees,and expenses paid by the Company. If requested
Upon the exercise by the Company of either of the optlons provlded by the Company,the Insured Claimant shalt execute documents
for tn subsetdons(bxl)or(e),the Company's obllgatlons to the to eviden[e the transfer Lo ti►e Company of these rights and
Insured under this palicy for the daimed loss ar damage,other than remedies. The Insured Clalmant shall permiC the Company to
sue,compromise,or setde In the name of the Insured daimant
the payments required bo be made,shall terminate,including any and to use the name of the insured qaimant In any trensaction or
liabil'ity or obligation tn defend,prasecute,or wntinue any Iidgation, I'figation Involving these rights and remedies.
If a payment on account af a claim does nat fully cover the loss of 16. NOTICES,WHERE SENT
the Insured Claimant,the Company shall defer the exercise of its Any notite of dalm and arry other nodce or statement En wridng
right to recover until after the Insured Glaimant shall have recovered required to be glven to the Company under thls policy must be given to
its loss. the Company at 400 Se{ond Avenue South,Minneapolls,M3nnesota
(b) The Campany's right of subrogatlon includes the righCs of the 55a01-2499.
Insured to Indemn[ties,guarar�tles,other polfdes of insurance,
or bonds,notwithstandiny any terms or conditlons contaEned in
those instnxnents that address s�brogadon rlghts.
14. ARBiTRATION
Efther the Company or the Insured may demand that the daim or
controver5y shall be submitted to arhfhatlon pursuant to the TiHe
Insurance Arbitration Rufes of Yhe American Land Tide Associatlon
("Rule�. Except as provfded In the Rules,there shall be no Joinder
or consotidation with daims or controversies of other persons.
Arbitrable matters may IncEude,but are not limited to,any
wntroversy or tlaim between the Company and the Insured arising
out of or relatlnq to this pol(q,any service in Cannection wlth its
issuance or the breach of a polity provision,or to any other
controversy or clalm arising wt of the transactfon giving rise to thfs
policy. AIE arbitrable matters when the Amount of Insurance Is
$2,000,400 or less shall be arbitrated at the opfiion of either t�e
Company or the Insured. All arbttreble matters when tlte Amount of
Insurance Is in excess of$2,000,000 shall he arbitrated only when
agreed ta by 6oth the CAmpany and the Insured. Arbitration
pursuant to this poltcy and under the Rules shall be bfnd(ng upon the
parties. ]udgment upon the award rendefed by the Arbitretor(s)may
be entered In any court of competent jurisdictlon,
15. LIABILITY LIMITED TO THIS POI.IGY;POLTCY ENTIRE
CONTRAGT .
(a) This polky together with a0 endorsements,If any,attached to it
by tlie Company is the entire policy and mntract be[ween the
Insured and the Company, In interpreting any provtsian of this
policy,this potfcy shaA be construed as a whole.
{b) Any daim of loss or damage that arises out of the status of the
Title or by any actlon asserting such clalm shall be restricted Yo
this poli%y.
(c) Any amendment of or eodorsement ta this policy must be in
writlng and authenticated by an authorized person,or expressly
incorporated by Schedule A of thls poticy.
(d) Each endorsement to this pollcy issued at any time Is made a
part of ttus polic.y and is subject to all oP its terms and
provisions. Except as the endorsement expressly states,it daes
not(i)modify any of the terms and provislons of the policy,(ii)
modify any prior endorsement,(Iil)extend the Date of Po[Icy,or
(Iv)increase the Amount of Insurance-
i6. SEVERABILITY
In the event any provision of this policy,in whole or In part,is held
f�valid or un�force�le under apppcable law,the policy shall be
deemed not tn indude that provislon or such part held to be invalid,
but atl other provisions shall remaln 1n full force and effect.
17. CFiOICE OF LAWj FORUM
(a) Cholce ot Law:7he Iruured acknowledges the Company has
underwritten the risks covered by th�s policy and determined the
premium d�arged thereEor in reliance upon the law affectlng
interesis in real property and applicable to the Interpretadon,
rights,remedies,or enforcement of policies of title insurance of
the jurisd3ction where the Land is bcated,
Therefore,the court or an arbitrator shal[apply the law of the
jurisdiction where the Land is located to determine the vaiidity
of dalms against the Tide that are adverse tn the Insured and
to Interpret and enforce the terms of this policy. In nelther case
shall the court ar arbitrator apply its conflicts of laws principles
to debermine the applicable iaw.
(b) Choice of Forum:Any Iftlgadon or other proceeding hrought hy
the tnsured agafnst the Company must be filed onfy in a state or
federal court within the Urdted States af Amerira or its
terrkorles having approprlate iurlsdiction.