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HomeMy WebLinkAboutRes 2014-15 - PP 14-010 GID Monterey LLC CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: CONSIDERATION OF A RECOMMENDATION TO THE CITY COUNCIL TO REMOVE CONDITION OF APPROVAL NO. 9, WHICH REQUIRED . THE DEVELOPER TO ENTER INTO A HOUSING AGREEMENT WITH THE CITY OF PALM DESERT FOR PP/CUP 05-22 AND TT 34179, AND AUTHORIZATION OF THE CITY MANAGER TO TERMINATE THE EXISTING HOUSING AGREEMENT BETWEEN THE CITY AND THE DEVELOPER SUBMITTED BY: Eric Ceja, Associate Planner APPLICANT: GID Monterey, LLC 3470 Wilshire Boulevard, Suite 1020 Los Angeles, CA 90010 CASE NO: PP 14-010 DATE: March 13, 2014 CONTENTS: Resolution No. 2014- 15 Planning Commission Resolution No. 2618 Planning Commission Meeting Minutes— February 18, 2014 Applicant's Support Letter Desert Sun Legal Notice Recommendation Waive further reading and pass Resolution No. 2014-15 , approving Precise Plan 14-10 which removes Condition of Approval No. 9, requiring the developer to enter into a Housing Agreement with the City, from PP/CUP 05-22 and TT 34179, and authorizes the City Manager to terminate the existing Housing Agreement between the City and the developer. Executive Summary GID Monterey, LLC is requesting removal from Precise Plan 05-22 of Condition of Approval No. 9, requiring the developer to enter into a Housing Agreement with the City. A Housing Agreement has already been executed between the City and the original developer; therefore, the City Council will also need to authorize the City Manager to terminate the existing agreement. In exchange for removal of the condition, the developer has agreed to install solar panels at the existing community building and to install solar panels on 45 residential units to be built in the future. Price corrections in the housing market favor removal of the existing Housing Agreement condition, while the installation of solar panels on communal property and future residential units advances the City's goal of increasing renewable energy resources throughout the community. Staff Report Monterey Ridge PP 14-010 Page 2 of 3 March 13, 2014 Planninq Commission Action On February 18, 2014, the proposed project was presented to the City's Planning Commission. Staff presented the request and answered several questions from Commissioners about the existing Housing Agreement. After the discussion, the Planning Commission voted 4-0-1 to recommend approval of the proposal to the City Council. Backqround Monterey Ridge, formerly known as Falling Waters, was approved by the City Council in February 2006 for a 247-unit residential condominium development on 20 acres, located at the northeast corner of Gateway Drive and Dick Kelly Drive. At the time of original entitlement, the City Council granted exceptions to the maximum building height due to the enhanced architecture of the project and grade variations at the property. In addition, consistent with provisions contained in the General Plan and the High Density Overlay zone, the developer was conditioned to enter into a Housing Agreement with the City to reserve 20 percent of the units for affordable housing. The project has changed hands since its original approval, and a new developer has purchased the project with the intent of completing the remaining units. The developer, in acknowledgement of the existing Housing Agreement provisions, has requested that the Housing Agreement be terminated since the sales price of existing units is well below the sales prices listed in the Housing Agreement. The Housing Agreement, which was recorded on April 20, 2007, between the developer and the City, set aside 49 units for affordable housing, with a sales price between $305,990 and $329,990. With the adjustments made in the housing market, current sales prices are approximately $100,000 less than those prices listed in the Housing Agreement. In addition, the Housing Agreement contained unusual provisions not typical in most Housing Agreements, such as limiting affordable units to people earning 200% of the Area Median Income (AMI) and maintaining the affordable units for only for a period of five (5) years. More typical Housing Agreements set a range between 80%-120% AMI for a period of 45 years. In exchange for terminating the Housing Agreement, the applicant is proposing to install a solar energy system to serve the community's pool and clubhouse facilities and to install solar energy systems on 20 percent of the remaining units (45 units). The nearly $150,000 solar energy system on the community buildings is anticipated to reduce annual energy consumption at these facilities and save homeowners approximately 20 percent on communal energy needs. In addition, the developer will install solar energy systems on 45 future units to further offset nonrenewable energy sources. The installation of solar energy system on communal facilities and future condominium units advance the City's goals of reducing energy consumption and increasing the amount of renewable energy sources throughout the community. Staff is supportive of the applicant's proposal to provide additional community benefits through the installation of solar energy systems. Staff is also supportive of removing the existing Housing Agreement as the sales prices of current units are well below the prices set in the agreement. Environmental Review A Negative Declaration of Environmental Impact was prepared and approved at the time of original entitlement of the project. Staff has determined that the removal of Condition of Approval No. 9, requiring a Housing Agreement, does not require additional environmental G:\Planning\Eric Ceja\Case Files\PP\PP 14-010 Monterey Ridge\PP 14-010-CC Staff Report.docx Staff Report Monterey Ridge PP 14-010 Page3of3 March 13, 2014 review since removal of the agreement does not affect the physical environment. The installation of roof-top solar panels and their associated equipment is statutorily exempt from CEQA review under Public Resources Code 21080.35. Fiscal Impact There is no fiscal impact to the City associated with adoption of the proposed Precise Plan. Submitted By: Eric Ceja, A so iate Planner Department Head: _._-_ _...�..-�--��,..,,...- _:.::�-----_ � �.---�..-�.___-_��-� _ �,._- Lauri Aylaian, Director of Community Dev A oval: ��� �_ �-,--�.J n M. Wohlmuth, City Manager G:\Planning\Eric Ceja\Case Files\PP\PP 14-010 Monterey Ridge\PP 14-010-CC Staff Report.docx CITY COUNCIL RESOLUTION NO. 2014-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO REMOVE CONDITION OF APPROVAL NO. 9, WHICH REQUIRED THE DEVELOPER TO ENTER INTO A HOUSING AGREEMENT WITH THE CITY OF PALM DESERT FOR PP/CUP 05-22 AND TT 34179, AND AUTHORIZE THE MAYOR TO EXECUTE THE RELEASE OF THE EXISTING HOUSING AGREEMENT BETWEEN THE CITY AND THE DEVELOPER CASE NO: PP 14-010 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 18t" day of February, 2014, hold a duly noticed public hearing to consider the request by GID Monterey, LLC, and recommended approval of the above noted request to the City Council; 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. 2013-16, and the Director of Community Development has determined that the removal of Condition No. 9, requiring a housing agreement, will not have an impact on the physical environment, and that the installation of rooftop solar and its associated equipment is statutorily exempt from CEQA review; and WHEREAS, the removal of Condition of Approval No. 9 for PP/CUP 05-22 and TT 34179 will not substantially depreciate property values in the vicinity and would not unreasonably interfere with the use or enjoyment of property in the vicinity by occupants, and that the removal of said condition will not have a negative impact on the public peace, health, safety, or general welfare; and WHEREAS, housing market conditions have changed such that the elimination of the housing agreement requirement will not result in a loss of affordable housing units in this portion of the community; and WHEREAS, the installation of solar energy systems on communal property and 45 future units within the Monterey Ridge residential condominium development will off-set electrical usage of communal facilities and private residences, will result in a community benefit to Monterey Ridge residents, and supports City goals and policies for reducing energy consumption; and WHEREAS, the existing housing agreement between the City and the developer authorizes the Mayor to execute the release and termination of the agreement; 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 did find the following facts and reasons to exist to justify the approval of said request: CITY COUNCIL RESOLUTION NO. 2014- 15 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER 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 approve Precise Plan 14-010 as proposed, and authorizes the Mayor to execute the release of the existing Housing Agreement. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 13th day of March 2014, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: VAN G. TANNER, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK G:\Planning\Enc Ceja\Case Files\PP\PP 14-010 Monterey Ridge\PP 14-010-City Council Resolution.docx 2 CITY COUNCIL RESOLUTION NO. 2014-�5 CONDITIONS OF APPROVAL CASE NO. PP 14-010 Department of Communitv Development: 1. The applicant shall install photovoltaic panels on the clubhouse and common area buildings for the Monterey Ridge project. The photovoltaic system shall generally conform to the exhibits on file as part of this application. 2. The applicant shall install photovoltaic panels on 45 of the remaining units to be built. 3. All Conditions of Approval related to PP/CUP 05-22 and TT 34179 still apply to the project with the exception to Condition No. 9. which is removed as part of the approval of PP 14-010. G:\Planning\Eric Ceja\Case Files\PP\PP 14-010 Monterey Ridge\PP 14-010-City Council Resolution.docx 3 PLANNING COMMISSION RESOLUTION NO. 2618 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING TO THE CITY COUNCIL TO REMOVE CONDITION OF APPROVAL NO. 9, WHICH REQUIRED THE DEVELOPER TO ENTER INTO A HOUSING AGREEMENT WITH THE CITY OF PALM DESERT FOR PP/CUP 05-22 AND TT 34179 CASE NO: PP 14-010 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 18�' day of February, 2014, hold a duly noticed public hearing to consider the request by GID Monterey, LLC, 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. 2013-16, the Director of Community Development has determined that the removal of Condition No. 9, requiring a housing agreement, will not have an impact on the physical environment, and that the installation of rooftop solar and its associated equipment is statutorily exempt from CEQA review. WHEREAS, the removal of Condition of Approval No. 9 for PP/CUP 05-22 and TT 34179 will not substantially depreciate property values in the vicinity and would not unreasonably interfere with the use or enjoyment of property in the vicinity by occupants, and that the removal of said condition will not have a negative impact on the public peace, health, safety, or general welfare. WHEREAS, housing market conditions have changed such that the elimination of the housing agreement requirement will not result in a loss of affordable housing units in this portion of the community. WHEREAS, the installation of solar energy systems on communal property within the Monterey Ridge residential condominium development will off-set electrical usage of communal facilities, resulting in a community benefit to Monterey Ridge residents and support City goals and policies for reducing energy consumption. WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said Planning Commission did find the following facts and reasons to exist to justify the recommendation to the City Council of said request: PLANNING COMMISSION RESOLUTION NO. 2618 NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval of Precise Plan application 14-010 as proposed. PASSED, APPROVED, AND ADOPTED by the Plannin�Commission of the City of Palm Desert, California, at its regular meeting held on the 18 day of February 2014, by the following vote, to wit: AYES: CAMPBELL, DASH, GREENWOOD, and STENDELL NOES: NONE ABSENT: DE LUNA ABSTAIN: NONE � RO R DASH, CHAIRPERSON ATTEST: _ /� LAURI AYLAIAN, SECRETARY PALM DESERT PLANNING COMMISSION G:\Planning\Manica OReilly\Planning Commission�2014\Resolutions\Res.No.2618 GID Monterey•Condition No.9.CZOCX 2 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION FEBRUARY 18, 2014 MR. DE LA TORRE replied that about 10 units will be behind the Sonata Development. MR. PLOTT asked how far the units will be from Sonata's back walls. MR. DE LA TORRE replied that the units will be a minimum 20 feet away from the wall, and many units stagger between 20 to 24 feet. Chair Dash interjected that the three minutes for remarks has expired. Ms. Aylaian communicated that the purpose of the Planning Commission accepting public testimony is for the Commission tt� hear from parties who either support or oppose the project. She suggested that Mr. Plott meet with Mr. De La Torre to get answers to general questions. MS. PEGGY MARSHALL, 403 Piazza San Michele, Palm t�esert, California 92260, stated that the homeowners at Villa Portofino have been pEeased working with Comstock. Comstock Homes ha5 been receptive to their comments and concerns. She hopes that the City allows Comstock to move forward. With no further testimony offered, Chair Dash declared the public hearing closed. Commissioner Campbell moved, by Minute Motion, approving the construction of 211 units, plus modifications to an approved grading plan regarding pad height elevations for 12 pads on �ot i of Trac� l�lap 36404 within Villa Portofino. Motion was seconded by Vice Chair Stendell and carried by a 5-0 vote (AYES: Campbell, Dash, DeLuna, Greenwaod, and Stendell; NOES:"None). Commissioner CampbeU moved, by Minute Motion, to waive further reading and adopt Resolution No. 2617, subject to conditions. Motion was seconded by Vice Chair Stendell and carried by a 5-O vote (AYES: Campbell, Dash, DeLuna, Greenwood, and Stendell; NOES: None). B.' REQUEST FOR RECOMMENDATION to the City Council for consideration to remove Condition No. 9, which required the developer to enter into a housing agreement with`the City of Palm Desert for PP/CUP 05-22 and TT 34179. Case No. PP t4=010 (GID Monterey, LLC, 3470 Wilshire Boulevard, Suite 1020, Los Angefes, CA 90010, Applicant). Commissioner DeLuna recused herself to avoid any possible appearance of impropriety because she works for an affordable housing developer. Mr. Eric Ceja, Associate Planner, reported that the existing approved project is for 247-units at Monterey Ridge located on the northeast corner of Gateway Drive and Dick Kelly Drive. He stated that when the project was originally entitled in 2006, there was a condition (No. 9) that required the developer to enter into an agreement with the City of Palm Desert to reserve 20 percent of the units for moderate-income housing. He said the developer is requesting that the housing 5 G:\Planning\Monica OReilly\Planning Commission�2014\Minutes�2-78-14 min.docx PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION FEBRUARY 18, 2014 agreement be terminated. In exchange for the removal of the condition, the developer is proposing to install a solar energy system serving the community pool and clubhouse, and solar energy systems on 20 percent of the remaining units. Mr. Ceja stated that staff supports removing Condition No. 9 as the sale prices of current units are lower than the prices set in the agreement, and recommended moving it forward to the City Council. He offered to answer any questions. Vice Chair Stendell asked if affordability is a dollar amount or a percentage of a person's income. Mr. Ceja responded that it is a percentage of a person's income. Ms. Aylaian added that typically affordability is determined;as a percentage on one's income relative to the average median income for Riverside County. She mentioned that Condition No. 9 is unusual since it calls out for a dollar amount and not just percentages. Vice Chair Stendell asked how many units are to be built. Mr. Ceja responded that 247 units were approved; and 20 have been built. Chair Dash declared the public hearing open and asked for any public testimony IN FAVOR or OPPOSITION. MR. ROB BERNHEIMER; representative for GID Monterey, LLC, 45-025 Manitou Drive, Suite� 3; Indian Wells, California 92210, stated that GID purchased the project from a bank after the bank took it over from the developer that entered into the agreernents with' the City. He said that they are in full agreement with staff's recammendation, and they would like to move the project forward. He mentioned that the agreement only focused on median income housing. It did not foeus on low and very Iqw housing. Mr. Bernheimer said he met with City staff, and the City's study shows that it is not going to have a problem meeting its requirements for median housing. He stated that the Monterey Ridge project will not help the City with affordable housing and is of no benefit. Therefore, the applicant came up with the idea of proposing to install a solar energy system that would benefit the Monterey Ridge community. He offered to answer any questions. Vice Chair Stendell asked if Monterey Ridge will offer an option to retrofit units for a solar system. MR. BERNHEIMER responded that every unit will be pre-wired with a conduit for the installation of solar panels. He noted that not 100 percent of the units are able to have solar panels due to the common roof and not enough space. Commissioner Campbell asked how many units will be built. 6 G:\Planning\Monica OReilly\Planning Commission�2014\Minutes�2-18-14 min.docx PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION FEBRUARY 18, 2014 MR. BERNHEIMER replied 227. He mentioned that 20 units have been built, and noted that four of the units built have solar panels. Vice Chair Stendell asked if there is a trend in outfitting all the units and make it a standard package as an option. MR. BERNHEIMER responded that it is possibte; however, it will be the builder's decision on how to package and market it. With no further testimony offered, Chair Dash declared the publi�l�earing closed. Vice Chair Stendell commented that as far as the sQlar aspect to help create less dependency on the grid system will benefit the ov�rall �ommunity and is in favor. Vice Chair Stendell moved, by Minute Motiorrr recommendir�c�,tq the City Council approval of Precise Plan 14-010 to remove Candi�ion No. 9 for PP/CUP 05-22 and TT 34179. Motion was seconded by Commissioner Greenwood and carried by a 4-0-1 vote (AYES: Campbell, Dash, Greenwood, and St�rtdell; NOES: None; ABSENT: DeLuna). Vice Chair Stendell moved, by Minute Motian, tc�'waive further reading and adopt Resolution No. 2618, subject to conditions. Motion was seconded by Commissioner Greenwood and carried by a 4-0-1 vote �AYES: Carn�bell, Dash, Greenwood, and Stendell; NOES: None; ABSENT: DeLuna). X. MISCELLANEOUS None XL COMMITTEE MEETING UPDATES A. ART`IN PUBLIC PLACES Vice Chair Stendell reported that the Art in Public Places Commission (AIPP) selected three sculptures for a community vote to purchase one sculpture to be permanently placed in the City. He said that the City Council denied the painting of a traffic signal box sponsored by Renova located on Highway 74 and EI Paseo. AIPP approved a traffic signal cabinet to be painted located at College of the Desert and Fred Waring Drive. He said AIPP also approved the consideration to add an artisf'to the registry. In addition, AIPP denied accepting the sculpture from the YMCA due to the cost to repair exceeding the value of the art. He reported that the gallery opening was a success, applications are being accepted for docents, and the Public Art Documentary Film series are being shown at University of California Riverside (February 20, March 20, and April 17). He commented that a rock sculpture at Desert Gateway that was hit by a car is being repaired. Last, he said that the Coachella Valley Water District is in the process of painting a mural on their outside wall, and recommended that the Planning Commission drive by to take a look at it. He noted that it is not complete. 7 G:\Planning\Monica OReilly\Planning Commission�2014\Minutes�2-18-14 min.docz � � MONTEREY RIDGE Consistent with Palm Desert's Genera,l Plan, Housing Element Policy 11 and the overriding goals of the City as expressed in its Energy and Mineral Resources Element,the project proposes the following solar plan. Solar Plan Recreationa/Center Solar Builder shall construct a 36.SKW (DC) system to be arrayed on the existing roof structure of the main recreation center building for the project. The cost of this system is currently estimated at approximateCy$145,000. This investment by the builder shal) be installed prior to occupancy of the next 150`h unit. This benchmark is when the recreation center might be near maximum electrical usage, thus providing the most efficient use of the solar panels with respect to the life of the system. According to the analysis provided by Re-Source Energy(see attached), the solar system will off-set the electrical usage of the recreation center by over 40%. Excluding rebates and tax incentives,the monthly electrical costs experienced by the HOA will be reduced by over 20%to be a direct savings to all of the residents of the project through their monthly HOA dues. Residential Solar Builder shall "pre-wire" all future residential units for the installation of solar panels. The pre-wiring will consist of conduit from the roof to the electrical panel. Each buyer will be offered the option of installing a solar panel array. Buyers will also have the opportunity to install a solar system any time following occupancy with no impact to the building. NOTE: a small number of building and/or roof orientations restrict the effective use of solar panels; no solar options will be provided for those units. Based on an analysis by Re-Source Energy, the average size solar system could be a 2.3 KW(DC) and provide a nearly 50%off-set of the electrical usage for the typical homeowner. Excluding rebates and tax incentives,the homeowner's electrical savings alone will be 66%. In addition,the homeowners will experience an increase in home value of over$16,000. � CI � Y 0 � � � 1 ��� � � � E � �� 73-5�0 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 ' TEL: 76o 346-06►� Ffvc: 76o 34i-7oq8 � in�oC�palm-desert.org CITY OF PALM DESERT LEGAL NOTICE CASE NO. PP 14-010 MONTEREY RIDGE NOTICE OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA TO REMOVE CONDITION OF APPROVAL No. 9 FROM PP/CUP 05-22 AND TT 34179, WHICH REQUIRED THE DEVELOPER TO ENTER INTO A HOUSING AGREEMENT WITH THE CITY OF PALM DESERT, AND TO AUTHORIZE THE Il,IIAYOR TO EXECUTE THE RELEASE OF THE EXISTING HOUSING AGREEMENT BETWEEN THE CITY AND THE DEVELOPER PROJECT DESCRIPTION: Monterey Ridge, located at the northeast corner of Gateway Drive and Dick Kelly Drive, was approved in 2006 as a 247-residential condominium project. The project consists of 57 two-story buildings, common areas, and a pool and clubhouse. The project has built 20 units, the pool and clubhouse, and perimeter improvements. The remaining portion of the project site has been graded and remains vacant. PROJECT LOCATION: Monterey Ridge - northeast corner of Gateway Drive and Dick Kelley Drive. PRECISE PLAN: The applicant is proposing to remove Condition of Approval No.9, from Precise Plan/Conditional Use Permit application 05-22 and Tentative Tract Map 34719, which required the applicant to enter into a housing agreement with the City. In addition, since the housing agreement is already in place, the City Council would have to authorize the Mayor to execute the release of the existing housing agreement. SAID public hearing will be held on Thursday, March 13, 2014 at 4:00 p.m. in the Council UKC COMMUNITIES March 11, 2014 Ms. Lauri Aylaian City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92660-2578 Re: Conditional Support for PP 14-010 Monterey Ridge Dear Lauri; UHC 00357 Palm Desert, L.P., is in support of the proposed elimination of the requirement that the project formally known as Falling Waters and now known as Monterey Ridge shall enter into a housing agreement with the city of Palm Desert as well as to release the project from the existing housing agreement; as long as any housing agreement or affordability requirements are eliminated from any entitlements related to our property due south and directly across Dick Kelly Drive from Monterey Ridge, APN # 694-130-002, 694-130-009. Thank you, ohn Bigley' General Partner UHC 00357 Palm Desert uhclic.net ry C) O v1� > ; i rrl C.f rn CO