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HomeMy WebLinkAboutResolution 2012-23 Vacate Frontage Road - PDH Partners Rosewood* Motion to continue the public hearing UNSUCCESSFUL on a 2-2- vote (Harnik, Spiegel AYE; Benson, Finerty NO, Kroonen ABS� TY OF PALM DE still requires adjudication; therefore, it will continue to the April 26, 2012, meeting for this purpose. PUBLIC WORKS DEPA STAFF REPORT REQUEST: ADOPT RESOLUTION 2012- 23 VACATING A PORTION OF THE FRONTAGE ROAD ALONG THE EAST SIDE HIGHWAY 74 AS PART OF THE APPROVED HOTEL AND CONDOMINIUM PROJECT KNOWN AS ROSEWOOD. SUBMITTED BY: Tony Bagato, Principal Planner APPLICANT: PDH Partners, LLC 3033 East First Ave Suite 408 Denver, CO 80206 DATE: April 12, 2012 CONTENTS: Resolution 2012- 23 Exhibit A, Legal Description Vacation Exhibit B, Frontage Road Approved Rosewood Site Plan Legal Notice Page 5 of Ordinance Number 1225A, Development Agreement Recommendation Waive further reading and adopt Resolution No. 2012- 23 vacating a portion of the frontage road along the east side Highway 74 as part of the approved hotel and condominium project known as Rosewood. Commission Recommendation Government Code Section 65402 requires, in part, that the Planning Commission report to the City Council that the subject street vacation conforms with the adopted General Plan. At their meeting of February 21, 2012, the Planning Commission, by a 4-1 vote and minute motion, determined that the subject vacation does conform to the General Plan. Executive Summary The applicant is requesting approval of the street vacation for a portion of the frontage road located on the east side of Highway 74 as part of the approved Rosewood project. The California Government Code requires a separate public hearing for vacation of any street. Approval of the street vacation will allow the applicant to seek capital for the construction loans. According to the development agreement, the street vacation will not be recorded and will not be delivered to the applicant until the issuance of the project's first permit. This condition was placed into the development agreement to protect the City from losing control of the frontage road. The City will maintain ownership of the frontage road if the project is never built. The Staff Report Rosewood Frontage Road Street Vacation Page 2 of 2 April 12, 2012 property will be sold to the developer at fair market value, with the value adjusted to market conditions at the time that the transfer occurs. Background On August 26, 2011, the City Council approved a new hotel and condominium project known as Rosewood. The project is located on a 4.97± acre site located on the east side of Highway 74, west of Ocotillo Drive, south of El Paseo and immediately south of Imago Art Gallery. The approved site plan included elimination of a portion of the existing frontage road along Highway 74 to provide a larger area of landscaping and decorative hardscape in front of the project (see approved site plan). Although the project was previously approved, the Government Code for street vacations requires a separate approval process and public hearing by the City Council. Although the applicant is requesting approval of the street vacation today, the approved development agreement states that the vacation of the frontage road will not be recorded and will not take effect until the issuance of the project's first permit. The City will maintain ownership of the frontage road if the project is never built. Staff analyzed three (3) elements for consideration in finding the street vacation is consistent with the General Plan: • Land Use Element • Circulation Element • Economic and Fiscal Element Land Use Element: The approved project is located on Highway 74 where there is a mix of commercial development adjacent to El Paseo, and residential condominiums and apartments to the south. The project does not physically divide an existing community, and does not conflict with any land use plan, policy, or regulation outline in the General Plan. The following goals and policy were used in approving the project: Goal 2 A diverse resort residential community of desirable residential neighborhoods and resorts, full commercial services, and institutional uses that complement the employment base and provide a variety of community services and facilities. Goal 3 An appropriate mix of commercial, resort and other revenue -generating land uses that will continue to fund a high level of community development activities, services and facilities in the City. Staff Report Rosewood Frontage Road Street Vacation Page 2 of 2 April 12, 2012 Policy 3 The City shall integrate land use analysis and planning with economic and fiscal analysis as an essential part of development of a master strategic plan for economic development. Circulation Element: The purpose of the Circulation Element is to assure the provision of a City street system that is correlated to, and is sufficient to, safely and efficiently convey traffic associated with the City's Land Use Map and pattern of development. The element is also meant to address and ensure the integrity of the community's physical, social and economic environment, and should assure that transportation issues are addressed in a manner that limits adverse and enhances positive impacts. When the request to vacate the frontage road was reviewed by both the Planning and Public Works Departments before the project was approved, staff determined that it would be possible because the frontage road closest to El Paseo does not directly connect to a public street or neighborhood. The frontage road extends approximately 480 feet north of the Rosewood Project before it ends into a private parking lot for a commercial strip center on El Paseo. The vacation of the frontage road will better serve the commercial properties immediately south of El Paseo. North of the Rosewood project, the frontage road will remain open as a local street and is provides access to the residential properties and streets south of El Paseo. The vacation of the frontage road meets the overall purpose of the Circulation Element by providing a better correlation between the mixes of land uses as Highway 74 transitions between a commercial uses on El Paseo and residential uses in south Palm Desert. Economic and Fiscal Element: One of the purposes of the Economic and Fiscal Element is to explore the relationship between economic policies, urban development, and land use patterns, and their impact on the finical well-being of the City. The element describes the three major components that comprise the City's economic base; retail commercial, resorts and tourism. The frontage road vacation will have net positive impacts on the City's finances due to the elimination of City costs related to on -going future maintenance and liability for operating the frontage road as a public right of way. In addition, the approved project will generate new revenue to the City through approximately $1.2 million in project construction fees, $1 million annually from Transient Occupancy Tax (TOT), and the creation of hundreds of jobs. In addition, the increased travelers coming to the El Paseo with high discretionary income will increase sales taxes from other businesses by creating an economic anchor for retail shopping. The project helps to fulfill the following goal and policies: Staff Report Rosewood Frontage Road Street Vacation Page 2 of 2 April 12, 2012 Goal 2 A diverse economy that provides a wide range of employment opportunities and public services and facilities, while maintaining high standards of development, environmental protection and an enhanced quality of life. Policy 2 Where appropriate, the City shall consider the job creation aspects of development proposals and may require the preparation of socio-economic and fiscal impact analyses to determine whether and to what extent such development may complement or adversely impact the local economy. Policy 4 Encourage the development of revenue -enhancing commercial businesses that complement the City's resort/tourism base and also consistent with the general service needs of the community. Fiscal Analysis When the project was approved, the applicant stated that the City would get approximately $1.2 million from the cost of construction. In addition, the rental of the hotel units are anticipated to generate $1 million annually to the City's General Fund from hotel guests paying 9% Transient Occupancy Tax (TOT) on each room rented. In addition to the hotel providing new revenue from TOT, the increase in travelers with high discretionary income to El Paseo will increase sales tax from other businesses by creating an economic anchor for pedestrian retail shopping. As for the street vacation, the City will have a savings in street maintenance costs by approving the vacation of the frontage road along Highway 74. The property will be sold to the developer at fair market value, as determined by an independent real estate appraiser. Submitted by: Tony Bagato, Principal Planner Sri Wohlmuth, City Manager Department Head: L y aian, Director of Community Deve op ent RESOLUTION 2012- 23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, VACATING A PORTION OF THE FRONTAGE ROAD ALONG THE EAST SIDE HIGHWAY 74 AS PART OF THE APPROVED HOTEL AND CONDOMINIUM PROJECT KNOWN AS ROSEWOOD, UNDER PROVISIONS OF DIVISION 9, PART 3, CHAPTER 4 OF THE STREETS & HIGHWAYS CODE OF THE STATE OF CALIFORNIA RECITALS WHEREAS, the City Council initiated proceedings to vacate the public rights -of - way and excess sidewalk and landscape easements more particularly described and depicted in Exhibits "A" and "B" attached hereto, and the City Council finds that said notices of such vacation were published and posted, as required by law; and WHEREAS, the City Council on the 26t" day of January, 2012, held a public hearing as required by law, at which hearing all persons interested in or objecting to the proposed vacation were heard, and said public hearing was duly and regularly closed; and WHEREAS, the Planning Commission on the 21 st day of February, 2012, made the determination that the said street vacation is consistent with the City's General Plan. WHEREAS, the City Council of the City of Palm Desert considered such matter and finds from the evidence submitted that the rights -of -way described and depicted in Exhibits "A" and "B" attached hereto and made a part hereof, are unnecessary for present or prospective public purposes. WHEREAS, in accordance with Ordinance No. 1225A, Development Agreement 09-507, General Provisions Section 1.4.6, Subsequent Approvals states that both the City and the applicant "acknowledge and agree that while the vacation hearing is anticipated to occur well in advance of the issuance of building permits for the Project, the resolution of vacation shall include a condition that the vacation shall not become effective until the issuance of building permits for the Project." NOW, THEREFORE, BE IT RESOLVED BY the City Council of the City of Palm Desert, California, as follows: 1. That the rights -of -way known as a portion of the frontage road on the east side of Highway 74, be vacated as described and as set forth in Exhibits "A" and "B" attached hereto subject to and retaining all public utility easements and other easements of record existing within said public rights -of -way. RESOLUTION 2012- 23 2. That the street vacation shall not become effective until the issuance of building permits for the Project. 3. That the City Clerk of the City of Palm Desert, California, shall cause a certified copy of this resolution and order to be recorded in the Office of the County Recorder of Riverside County, California. PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this day of , by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 2 ROBERT A SPIEGEL, MAYOR RESOLUTION NO. 2012-23 EXHIBIT "A" STREET VACATION LEGAL DESCRIPTION BEING PORTIONS OF LOTS "A" AND "X" OF BLOCK NO. A-3 OF PALM DESERT UNIT NO. 3, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 21, PAGES 81 THROUGH 84, INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF LOT 14 OF BLOCK NO. A-3 OF PALM DESERT UNIT NO. 3 ALSO BEING A POINT ON THE SOUTHEASTERLY LINE OF SAID LOT "A"; THENCE ALONG SAID SOUTHEASTERLY LINE SOUTH 18009'39" WEST 680.28 FEET; THENCE DEPARTING SAID SOUTHEASTERLY LINE NORTH 71050'21" WEST 5.51 FEET TO THE BEGINNING OF A NON -TANGENT CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 49.24 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 72°24'17" WEST; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 60036'28", AN ARC LENGTH OF 52.09 FEET; THENCE NORTH 18009'39" EAST 637.63 FEET TO THE INTERSECTION WITH THE NORTHWESTERLY PROLONGATION OF THE NORTHERLY LINE OF SAID LOT 14; THENCE ALONG SAID NORTHWESTERLY PROLONGATION OF THE NORTHERLY LINE OF LOT 14 SOUTH 71 °50'21" EAST 31.00 FEET TO THE POINT OF BEGINNING. THE ABOVE DESCRIBED PARCEL OF LAND CONTAINS 0.47 ACRES, MORE OR LESS. SHOWN ON EXHIBIT "B" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. '�uwos� PETER EDWARD HER PETER E. WEILBACHER, PLS Exp. 06 30/1 * Exp.06/30/12 DATE: I- — 1 NO. e = ° Az �� z Wbi � m �` Pwm o,gzr� mri 0 t��2 oC) z N D r m .� a a q t*�im 0 u N O :�►17 �rn N �q O � to v Ci�Az — `, ��++ MNI,Z,0`J•1LN Iw�z0 1(0Vb) M.Ll,tULN — I 1 1 Z co cs 40 r*i N '3r-4 AVM)nVM NVk:UBBC cl _ .1 . 101 a � N W > I G' 00 O CIL I OZVZ C, -p Fn cnz � 0 D r- --Zimnr" m Z ;o Opm20 r T C z .nONZO mho �m mzr i .vtnOO I n iC)> cmNrn Z =r)mC) C��^Tj 0 0 ;0cz D>p c� oo R°,g��� o, i o o `" 'I- m M„IZ,09ALN ccn m > yZxw n, C oom o * gyp? ,OS m �! � 7 •� �J � 13 i � 3. 1 � i !.Y L J L 73-510 Piu-D WARIN(; DKIVI. P.vts1 Disistci, CA IFt)RNIA )2260 2578 rEL:76o 346—o6ii IAX: 760 341-7098 info"Pah -desert.—, CITY OF PALM DESERT LEGAL NOTICE STREET VACATION NOTICE IS HEREBY GIVEN: that a public hearing will be held before the Palm Desert City Council on Thursday, April 12, 2012, to vacate a portion of the frontage road along the east side Highway 74 as part of the approved hotel and condominium project known as Rosewood. Division 9, Part 3, Chapter 4 of the Streets & Highways Code of the State of California, holding a public hearing for all persons interested in favor or objection to the proposed vacation. N7150'21'W Cio g �jsa�y _ I Noy a I 11 i -w#ALL Q o M-2 2jo43 L R = n g d I �R 2`ll LL, N a i a 2' 1 �• 11� � I 50, Q_'ei J�'� 7217'W (R—AO52W0'2' ;i2 iI N7V 5.51? y PUBLIC HEARING: Said public hearing will be held before the City of Palm Desert City Council on Thursday, April 12, 2012, 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 April 1", 2012 City of Palm Desert, California ORDINANCE NO. 1225A City Council, by Ordinance No. 1225A, approved this Development Agreement and authorized its execution. This Development Agreement also authorizes exceptions to Special Setbacks under City Municipal Code Section 25.30.290 and Off -Street Parking under City Municipal Code Section 25.58, as set forth and depicted more fully in the Project Approvals. 1.4.4. Precise Plan. On August 25, 2011, the City Council approved Precise Plan 09-507. 1.4.5. Conditional Use Permit. On August 25, 2011, the City Council approved Conditional Use Permit 09-507. 1.4.6. Subsequent Approvals. In order to develop the Project as contemplated in this Development Agreement, the Project may require land use approvals, entitlements, development permits, and use and/or construction approvals other than those listed in Sections 1.4.1 through 1.4.5, above, which may include, without limitation: development plans, amendments to applicable redevelopment plans, conditional use permits, variances, subdivision approvals, street abandonments, design review approvals, demolition permits, improvement agreements, infrastructure agreements, grading permits, building permits, right-of-way permits, lot line adjustments, site plans, certificates of occupancy, parcel maps, lot splits, landscaping plans, master sign programs, transportation demand management programs, encroachment permits, and amendments thereto and to the Project Approvals (collectively, "Subsequent Approvals"). At such time as any Subsequent Approval applicable to the Property is approved by the City, then such Subsequent Approval shall become subject to all the terms and conditions of this Development Agreement applicable to Project Approvals and shall be treated as a "Project Approval" under this Development Agreement. The Project includes as a Subsequent Approval the vacation of the frontage road adjacent to the Property; the Parties acknowledge and agree that while the vacation hearing is anticipated to occur well in advance of the issuance of building permits for the Project, the resolution of vacation shall include a condition that the vacation shall not become effective until the issuance of buildina permits for the Project. ARTICLE 2. DEVELOPMENT OF THE PROPERTY 2.1. Project Development. Developer shall have a vested right to develop the Project on the Property, in accordance with the Vested Elements (defined in Section 2.2). 2.2. Vested Elements. The permitted uses of the Property, the maximum density and/or number of residential units, the intensity of use, the maximum height and size of the proposed buildings, provisions for reservation or dedication of land for public purposes, the conditions, terms, restrictions, and requirements for subsequent discretionary actions, the provisions for public improvements and financing of public 5 I VIN80-AIIV'3 ' l8aSTJ VV Wd LU > C4 11Z AVMHc)IH OV9-Str t < S33N3alS3M V 1310H im3s3a W'lVd I L.Z Z, I I I Zu z < 77 RECEIVE© CITY CLERK'S OFFICE PALM DESERT, CA BIGHORN 2012 APR 12 PH 12: 30 April 12, 2012 Honorable Mayor and Council Members City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 BIGHORN Golf Club and BIGHORN Development congratulate you on your approval of the planned Rosewood hotel and condominium complex which will be located at the old La Paon site to the south of Imago Gallery between Highway 74 and Ocotillo. The decision by you was a significant action toward satisfying an identified need of the City and meeting one of the elements of the City's long term development planning. The proposed project, when completed, will be an integral component of the City and of the El Paseo business corridor; it will function as an anchor facility with appealing amenities for residents and visitors alike who will also patronize nearby shops and eateries. The completion of this project will be another example of Palm Desert's forward thinking in anticipating diversified needs and public preferences as well as being another example of Palm Desert's leadership role for the Coachella Valley. At the request and on behalf of BIGHORN I urge you to vote to sell to the developers of the project the frontage road to the west side of the property along Highway 74. This land, for which the City will receive market value, serves little purpose as is and will add to the value and potential success of the Rosewood project. Your consent to the sale of the frontage road property once again will demonstrate the City's commitment to the realization and success of its long range planning goals. Sincerely, Carl T. Cardinalli President BIGHORN GOLF CLUB 255 PALOWET DRIVE, PALM DESERT, CALIFORNIA, 9226o U S A -a 760 341-4653 • FAX 760 776-7125 richard danskin ED 'FALLERIES-c1- REC�' SO F1S PALM DESERT, CA 2812 APR 12 PM 3: 05 April 12, 2012 Palm Desert City Council Topic: Supporter of Rosewood Hotel Re: Approval of Sale of Adjacent Service Road Dear Council: I am unable to attend the City Council meeting today, but I wish to provide our support to the recommendation to approve the sale of adjacent service road to allow the Rosewood Hotel project to move forward. This project will add construction jobs, ongoing employment and increase the revenues to local Palm Desert businesses with visitors and owners staying in the hotel. As a business on El Pasco we welcome this influx for our business. We support the Rosewood Hotel project. las Gallery Owner dan�lvn��,illciI� ,t richardc!an,kin.c�nn r� �� .�.�lainl<in�Ttillrri�s.cnm