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HomeMy WebLinkAboutFacade Enhancement Program Darden Restaurants, Inc. 72291 Highway 111 - Red LobsterMETING DATE �L22" �� l� CITY OF PALM DESERT a PASSER TO 20 RE P11'NUG STAFF REPORT REQUEST: APPROVAL OF $75,000 IN FACADE ENHANCEMENT PROGRAM CONSIDERATION FUNDS TO DARDEN RESTAURANTS, INC. FOR RED LOBSTER LOCATED AT 72-291 HIGHWAY 111 SUBMITTED BY: Bryce Lynn White, Project Administrator APPLICANT: Darden Restaurants, Inc. 72-291 Highway 111 Palm Desert, California 92260 DATE: September 29, 2011 CONTENTS: Aerial Location Map Elevations of Proposed Building Recommendation By Minute Motion: Approval of $75,000 in Facade Enhancement Program consideration funds to Darden Restaurants, Inc. for Red Lobster located at 72-291 Highway 111. Funds are available in Account No. 400-4800-454-3875. Executive Summary The subject property is west of the geographic boundaries of the Facade Enhancement Program (FEP). Approval of the request will be an exception to the FEP guidelines and will provide City assistance for the project. Denial of the request will not allow City assistance. Background Darden Restaurants, Inc. is the owner of 72-291 Highway 111. The site has been approved for a Red Lobster restaurant. During the plan check process the owners learned that they were subject to recently updated requirements for the Whitewater River Region to provide storm water retention not only for their site but for water flowing onto their site from adjoining properties. This request will require deconstruction of the majority of the parking improvements and reconstruction including required water Staff Report Fagade Enhancement Program Funds for Red Lobster Page 2 of 3 September 29, 2011 retention improvements. The estimated cost for these unanticipated improvements is over $100,000. The City of Palm Desert, along with the County of Riverside, the Riverside County Flood Control and Water Conservation District, Coachella Valley Water, the City of Banning and eight other Coachella Valley cities are all within the Whitewater River Region and co-permittees to the Municipal Separate Storm Sewer System (MS4 Permit), which the City of Palm Desert approved in 1991 in response to the requirements of the National Pollutant Discharge Elimination System (NPDES). The MS4 Permit is reissued every five years and requires the co-permittees to implement and follow a Stormwater Management Plan (SWMP). The MS4 and SWMP require a project specific Water Quality Management Plan (WQMP) for "Priority Development Projects." The Whitewater River Region WQMP as required by the Whitewater River Watershed SWMP has been developed to further address post -construction Urban Runoff from New Development and Redevelopment projects under the jurisdiction of the Permittees, which includes the City of Palm Desert. Both the SWMP and the WQMP are updated every five years in response to the requirements of the MS4 Permit and were recently updated. The proposed Red Lobster site is classified by the new requirements as a "Priority Development Project" subject to the requirements for a project specific WQMP due to it falling within the category of "restaurants disturbing greater than 5,000 square feet." The estimated cost of the new 5,800 square foot building, fixtures, equipment, and site improvements is $4,000,000. The property, when completed, will possibly receive a silver LEED certification. The following are the estimated economic benefits that the applicant provided when Red Lobster is constructed: • Temporary construction jobs • Four (4) permanent supervisory jobs • Approximately forty (40) service jobs • Approximately $53,300 in sales use tax paid initially for purchase of new equipment • Approximately $39,700 real and personal property tax paid annually • Approximately $54,000 in sales tax to the City from approximately $378,000 total collected and remitted The western boundary of the FEP is properties that border the west side of Highway 74 between Highway 111 and El Paseo. The subject property is west of this boundary and approval of funds for the subject property will be an exception to the FEP guidelines. Staff will consider a future recommendation to amend the FEP guidelines to expand the geographic boundaries of the FEP. The subject property is approximately 58,000 square feet (1.33 acres) on the northwest corner of Highway 111 and Fred Waring Drive. The building frontage is approximately 320 linear feet along the two streets. The size and corner location of this property make G VdaWgenda ltems120110-29-MFEP funding Red Lobster SR 9-29-11.doc Staff Report Fagade Enhancement Program Funds for Red Lobster Page 3 of 3 September 29, 2011 it eligible for the maximum FEP consideration funds of $75,000 subject to City Council approval. On March 22, 2011, the Architectural Review Commission approved the subject project. On September 9, 2011, the Retail Committee met and recommended making an exception to the geographic boundaries of the FEP guidelines to include the subject property and provide $75,000 in FEP funds for the project, which staff concurs with. Therefore staff recommends inclusion of the Red Lobster site within the geographic boundaries of the Fagade Enhancement Program and funding in the amount of $75,000 from the FEP for 72-291 Highway 111. Fiscal Analysis Funds are available for this project in Account No. 400-4800-454-3875. Submitted By: Brellynn V7, Project Admi istrator artin Alvarez, Redevelopment Manager Department Head: rthy, K#0 Paul S. 6itdson,1bkecWr of Finance Approval: J n M. Wohlmuth, Ci anager 71 CITY COUNCILAQ'Y'ION APPROVED_TYPINIF,D RECEIV�D OTHER 9115Y,NlAF10-IUlftff.' i.•r�� .. �Z • t I/ifi. � Original on File with Cit3`tlerk's Office C:IDocuments and SettingslbwhitelLocal Settingslremporary Internet Fi7eslContent.OuttooklMP38J1R81FEP funding for Red Lobster SR 9-29-11.doc