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HomeMy WebLinkAbout2097ORDINANCE NO. 2097 ' AN ORDINANCE OF THE CITY COUNCIL OF CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 94.08.09 OF THE PALM SPRINGS ZONING CODE AND APPROVING A DEVELOPMENT AGREEMENT AMENDMENT WITH PS COUNTRY CLUB, LLC, AND SERENA 386, LLC RELATED TO THE SERENA PARK PROJECT PERFORMANCE SCHEDULE, THE DEVELOPMENT AGREEMENT FEE PAYMENT AMOUNT AND TIMEFRAME, THE PROPERTY MAINTENANCE AND SECURITY OBLIGATIONS AND FINANCING OF PUBLIC IMPROVEMENTS AND IMPACT FEES RELATED TO THE CONVERSION OF THE FORMER PALM SPRINGS COUNTRY CLUB GOLF COURSE INTO 386 RESIDENTIAL UNITS LOCATED NORTH OF VERONA ROAD, EAST OF SUNRISE WAY AND SOUTHWEST OF THE WHITEWATER RIVER WASH (CASE 5.1427 DA AMENDMENT). City Attorney's Summary This Ordinance amends Section 94.08.09 of the City's Zoning Code relating to an amendment to the Development Agreement with PS Country Club, LLC, to revise the performance schedule, modify the ' amounts and payment dates of the Development Agreement Fee, memorialize maintenance and security obligations, provide for community facility district financing and other minor revisions related to the Serena Park Project, which is 386 unit residential project proposed on 126-acres of land. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS AND DETERMINES AS FOLLOWS: A. PNG1, LLC and PS Country Club, LLC ("Applicant") have filed an application (Case DA-2024-0002) with the City, pursuant to the Section 94.08.00 of the Zoning Code, for an Amendment to an approved Development Agreement (Case 5.15327 DA AMEND) for the Serena Park Project located on 126 acres of land formerly operated as the Palm Springs Golf Course within Sections 1 and 36, currently identified as APNs: 501-190-002, 501-190-011, 669-480-027, 669-590-066 (the "Project" also known as Serena Park). Among other terms, the proposed Amendment (Case DA-2024-0002) provides an increased Development Agreement Fee (from balance owed of $2.5-million to $3.2- million), a memorialized property maintenance obligation, a revised Performance Schedule and the City's cooperation in forming a community facilities district (or similar) to assist with financing of infrastructure and development impact fees. Ordinance No. 2097 Page 2 B. On September 7, 2016, the City Council held a public hearing on the Project and ' approved the following actions: 1. Adopted Resolution No. 24082, certifying an Environmental Impact Report for the Project 2. Adopted Resolution No. 24083, approving a General Plan Amendment to modify land use designation from "Open Space - Parks/Recreation" to "Very Low Density Residential" 3. Adopted Resolution No. 24084, approving a Major Architectural Application (Case 5.1327, PDD-366/MAJ) 4. Adopted Resolution No. 24085 approving Tentative Tract Map 36691, and 5. Adopted Ordinance No. 1898 approving Planned Development District (PD- 366) in lieu of a change of zone The approvals included Administrative Condition #13, which states: Development Agreement. Approval of these land use entitlement applications is contingent upon the approval of a development agreement. The development agreement shall address the conversion of open space for development purposes, through in -kind replacement of open space, payment of in -lieu fees for the acquisition of open space, or replacement of open space through a density transfer, pursuant to Policy LU2.2 of the City of Palm Springs General Plan. C. On July 19, 2017, the Council held a public hearing and approved a Development Agreement by Ordinance No. 1931 for the Project. D. On October 17, 2018, in response to a request from the Applicant for a proposed revision to the Development Agreement related to the manner in which the Development Agreement Fee is required and paid, the Council held a public hearing and approved a proposed amendment to the Development Agreement. E. The Development Agreement was recorded on March 14, 2019 with the County of Riverside Clerk. F. On October 14, 2021, the City Council conditionally approved a Development Agreement Amendment for the Serena Park project by adopting Ordinance No. 2051. This amendment revised the Performance Schedule for construction, modified the payment dates of the Development Agreement Fee, memorialized phasing of utility undergrounding and approved other minor revisions. Related to this Development Agreement Amendment (identified as the First Amended and Restated Development Agreement), the following occurred: 1. On November 1, 2021, PS Country Club, LLC remitted $500,000 of the Development Agreement Fee to the City. 2. On December 9, 2021, a Maintenance and Security Plan was accepted by the City Council. 3. On September 21, 2022, due to a failure to comply with the agreed upon the Performance Schedule and Maintenance and Security Plan, the City notified , the owner of default of the terms of the First Amended and Restated Development Ordinance No. 2097 Page 3 Agreement. In response, the owner improved efforts to maintain the property, but ' has yet to commence construction and pay the remaining balance due ($2.5- million) of the Development Agreement Fee. G. A notice of a public hearing of the Planning Commission of the City of Palm Springs, California to consider the proposed amendment, Case DA-2024-0002, was given in accordance with applicable law, and on May 22, 2024, the Planning Commission carefully reviewed and considered all of the evidence presented in connection with the hearing on the proposed amendment, including but not limited to the staff report, and all written and oral testimony presented, and voted 6 to 0 to recommend approval to the City Council, subject to the following: 1. Modify proposed Development Agreement Amendment to include revisions to Maintenance/Security and Performance Schedule sections as follows: a. Maintenance and Security (Section 4.04) 1. Specify that an initial clean-up of dead trees and tree limbs, trash and debris to be removed within one month of the new owner acquiring the property, to the satisfaction of staff. 2. Specify that an evaluation by qualified arborist of all on -site trees shall be conducted within one month of new owner acquiring the property, and removal of certain trees (i.e. invasive trees, such as Tamarisk) to occur within four months of new owner acquiring the property. 3. State dust control sealant may occur more frequently than annually, if deemed necessary by City after inspection. 4. State Developer is responsible for fixing any broken camera in a timely manner, but no longer than 7 days after notification from City. b. Performance Schedule (Exhibit 2) 1. Modify milestones from "Ready to record ... lots" to "Record... lots" or other appropriate language. 2. Include milestone for improvement of Golden Sands Rd with sidewalk to mobile home park and to phase one of the project (which may be temporary) during Phase 1. 3. Include improvement of Park in Phase 1. 2. Recommend third access point for the project be provided. H. A notice of a public hearing of the City Council of the City of Palm Springs, California to consider the proposed Amendment, Case DA-2024-0002, was given in accordance with applicable law and on June 13, 2024, the City Council carefully reviewed and considered all of the evidence presented in connection with the hearing on the Amendment application, including but not limited to the staff report, all written and oral testimony presented. I. The City Council determined that the Amendment associated with the Project is considered a "project' pursuant to the terms of the California Environmental Quality Act ' ("CEQA"). Ordinance No. 2097 Page 4 J. The City Council also found that no further environmental documentation, beyond the documentation prepared in conjunction with the EIR for the Project, is required because: 1. There are no substantial changes in the project that will require major revisions to the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2. There are no substantial changes with respect to the circumstances under which the project is being undertaken which will require major revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and 3. There is no new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified showing that: a. The project will have one or more significant effects not discussed in the EIR; b. Significant effects previously severe than shown in the EIR; examined will be substantially more C. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but those mitigation measures or alternatives have not been adopted; or d. Mitigation measures or alternatives considerably different from those analyzed in the EIR would substantially reduce one or more significant effects on the environment, but the mitigation measures or alternatives have not been adopted. (Public Resources Code section 21166; CEQA Guidelines section 15162.) K. The City Council also found that the Amendment complies with the provisions of Palm Springs Zoning Code Section 94.08.00, as follows: 1. The development agreement is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan. The Land Use Element of the General Plan identifies the project site as "Very Low Density Residential," which permits a density of 2.1 to 4.0 dwelling units permit acre. The Serena Park project entitlements remain consistent with this designation and provide for 386 residential dwellings over a 126-acres of land (or roughly 3 dwelling units per acre), and the requested revisions to the Amended Development Agreement will provide revised terms for performance and financing timelines of project. It will not alter previously approved land uses or density. The modifications will not result in inconsistencies to any objectives, policies, general plan land uses or programs. 11 Ordinance No. 2097 Page 5 The development agreement is consistent with Policy LU2.2 of the City of Palm Springs General Plana because the development agreement fee can be used by the City of Palm Springs for the acquisition and/or preservation of open space. 2. The development agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located. The uses will not be affected by the proposed amendment. The Development Agreement remains the same for the subject property and permits 386 residential units, streets, and park space. 3. The development agreement is in conformity with public convenience, general welfare and good land use practice. The Development Agreement remains consistent with the previously approved entitlements, which will allow attached and detached residential units that are compatible with adjacent and surrounding residential developments in the vicinity. The proposed amendment will memorialize maintenance and security measures to improve the general welfare of adjacent residents. 4. The development agreement will not be detrimental to the health, safety and general welfare. The proposed amendment to the Development Agreement will establish new terms for the Performance Schedule, payment of the Development Agreement Fee and memorialize obligations for site maintenance and security. The project benefits will still occur, including removal of blight and improvement of park space. Therefore, the development agreement is not anticipated to be detrimental to the health, safety and general welfare. 5. The development agreement will not adversely affect the orderly development of property or the preservation of property values. The agreement will permit orderly development of single -story homes in a density that is compatible with surrounding development patterns. The proposed amendment will only affect the time in which said development occurs, which is not anticipated to adversely affect the preservation of property values. LU2.2 provides, "Projects that propose to convert open space areas that are designated "Open Space - Parks/Recreation to developable areas (for residential, commercial, etc.) must either offer in -kind replacement of such open space elsewhere in the City. make payment of in -lieu fees, or replace the converted open space through the use of density transfer." Ordinance No. 2097 Page 6 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, I CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The findings and determinations reflected above are all true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by and through this Ordinance. Section 2. The Final EIR for the Project is the controlling environmental document for the Council's consideration of the Amendment to the Development Agreement. Section 3. In accordance with Section 94.08.00 of the Palm Springs Zoning Code, the City Council hereby approves the Amendment to the Development Agreement, including the requested revisions to the Performance Schedule; the proposed increase to and revised payment schedule of the Development Agreement Fee; a memorialized property maintenance and security obligation; and the City's cooperation in forming a community facilities district (or similar) to assist with financing of infrastructure and development impact fees. Section 4. The City Council authorizes the City Manager to execute the Amendment to the Development Agreement between the City of Palm Springs, PS Country Club, LLC and PNG 1, LLC (or its subsidiary, including Serena 386, LLC) in a form substantially similar to that attached to this Ordinance, and incorporated by this reference herein as EXHIBIT 'A" and to take all steps necessary to complete its recordation. Section 5. Palm Springs Zoning Code Section 94.08.09 is hereby amended by adding a new subdivision (A)(5) to read as follows: "5. Amendment to Development Agreement. In 2024, the City Council approved a First Amendment to the First Amended and Restated Development Agreement, which included modifying the Performance Schedule; increasing the amount due and revising the payment schedule of the Development Agreement Fee; memorializing property maintenance and security obligations; and the City's cooperation in forming a community facilities district (or similar) to assist with financing of infrastructure and development impact fees, as set forth more specifically in the executed First Amendment to the First Amended and Restated Development Agreement on file with the City Clerk." Section 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. Ordinance No. 2097 Page 7 PASSED, APPROVED, AND ADOPTED BY THE PALM SPPINGS CITY COUNCIL THIS ' 9TH DAY OF JULY, 2024. J BERNSTEIN PtAYOR ATTEST: r BRENDA PFlEfE CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS) ' I, Brenda Pree, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. 2097 is a full, true and correct copy, and was duly introduced at a regular meeting of the City Council of the City of Palm Springs on June 13, 2024, and adopted at a regular meeting of the City Council of the City of Palm Springs on July 9, 2024, by the following vote: AYES: Councilmembers Garner, Holstege, Middleton, Mayor Pro Tern deHarte, and Mayor Bernstein NOES: None ABSENT: None ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this gih day of July 2024. A 1?� B ENDA P EE, MMC, CERA CITY CLERK